Investar Holding in Baton Rouge, La., has agreed to buy Wichita Falls Bancshares in Wichita Falls, Texas.
The $2.7 billion-asset Investar said in a press release that it will pay $83.6 million in cash and stock for the $1.6 billion-asset Wichita Falls.
The deal, which is expected to close in the fourth quarter, priced Wichita Falls at 88.8% of its tangible book value. Investar also announced a private placement of $32.5 million of newly designated 6.5% Series A non-cumulative perpetual convertible preferred stock. The company also plans to sell about $200 million of mortgage loans, using proceeds to eliminate Wichita Falls’ borrowings and to push out high-cost, noncore deposits.
Wichita Falls has seven branches and two mortgage offices. Investar plans to cut about 36% of Wichita Falls’ annual noninterest expenses, though no branches are expected to close.
M&A News is reported by Paul Davis and reprinted with permission as an adaptation of the material from TheBankSlate.com.