Investar Holding Corp. Expands into Dallas-Fort Worth Market
Six years after making its initial foray into Texas, Investar Holding Corp. from Louisiana is expanding significantly with its $84 million acquisition of Wichita Falls Bancshares. This deal adds to its already substantial Texas presence, bringing their total assets to $1.6 billion.
The acquisition centers on the First National Bank, a 36-year-old holding company based in Wichita Falls, which has deposits totaling $1.2 billion, including $364 million located in the rapidly growing Dallas-Fort Worth area. With this acquisition, Investar’s Texas-based deposits are projected to increase from 6% to a striking 37%, marking a significant shift in the company’s funding structure.
In a press release, Investar’s CEO John D’Angelo referred to this merger as “a pivotal moment” for Investar Bank, emphasizing its importance in the company’s trajectory.
To facilitate the acquisition, Investar has successfully completed a private placement, raising $32.5 million in preferred stock. This funding will not only support the Wichita Falls deal but also fuel future growth initiatives and possible further acquisitions.
When asked about their ongoing interest in mergers and acquisitions, a spokesperson for Investar did not provide any immediate insights.
The deal involves Investar paying approximately $84 million in cash and shares to Wichita Falls, a financial institution based in North Texas.
Investor reaction seems positive, with Investar’s stock climbing to $21.56 per share, a nearly 6% increase observed on Wednesday.
Investar initially entered the Texas market in 2019 with the acquisition of Mainland Bank, which boasted $125 million in assets.
Following this latest transaction, Investar will boast $4 billion in total assets, $3.3 billion in loans, and $3.5 billion in deposits. The company anticipates earnings of $3.08 per share by 2026, reflecting a substantial growth rate of 35%, especially since they reported earnings of $2.06 per share in 2024 and $1.69 in 2023.
Wichita Falls President David Flack commented on the merger, stating, “We believe this will create long-term value for our customers and shareholders,” assuring clients that they will continue to receive reliable service at the same locations.
Stan Pinkham, the president and CEO of First National Bank, shared that the sale to Investar presents a strong opportunity for strategic synergy through pooled resources.
Founded by D’Angelo in 2006, Investar, with $2.7 billion in assets, has a history of utilizing mergers and acquisitions as a key growth tactic. For instance, in July 2017, it acquired Citizens Bank and Trust Company, valued at $249 million, for approximately $46 million.
Investar’s expansion strategy has been multifaceted; for example, it previously purchased Cheha Financial Group in Alabama for $41 million in April 2021.
While Investar primarily focuses on commercial and small business lending, Wichita Falls has a more mortgage-centric approach, operating seven branches alongside two mortgage offices. As of March 31, the mortgage sector comprises less than half of their $1.1 billion loan portfolio. To lessen this mortgage concentration, Investar plans to sell $200 million worth of mortgages to pay down corporate debt and reduce non-core deposits.
Investar anticipates finalizing the transaction within five months, aligning with an observed trend of expedited merger decisions by regulators. Recent research highlights that ten out of 21 banks that announced mergers in early 2025 have already finalized their agreements.
