Investar Holding in Baton Rouge, La., has agreed to buy Mainland Bank in Texas City.
The $1.7 billion-asset Investar said in a press release Wednesday that it will pay $19.9 million in stock for the $131 million-asset Mainland. The deal is expected to close in the first quarter.
The deal allows Investar to enter the Houston market. Mainland has three branches, $88 million in loans and $113 million in deposits.
Investar said it expects to deal to be 3% accretive to its 2019 earnings. The acquisition is expected to be 1% dilutive to Investar’s tangible book value at closing.
“Expansion into Texas enhances our regional footprint and provides the opportunity for additional mergers and acquisitions in Texas markets,” John D’Angelo, Investar’s president and CEO, said in the release.
The acquisition “complements our strategy of increasing market share through partnerships with organizations having strong core deposit funding, solid commercial banking and credit practices, and exemplary customer service," D'Angelo added.
Sandler O’Neill and Fenimore, Kay, Harrison & Ford advised Investar. Performance Trust Capital Partners and Larry Temple advised Mainland.
