Investar Holding, the parent of Louisiana’s Investar Bank, has agreed to acquire Texas-based Mainland Bank in a deal worth around $19.9m.
Mainland Bank had around $131.3m in assets at the end of June 2018. The bank has its main office in Texas City and two branches in Houston and Dickinson.
Mainland Bank will adopt the Investar brand following the takeover, but will retain its employees.
The deal already secured the approval from the companies’ board. It is expected to be wrapped up in the first quarter of next year, subject to shareholder and regulatory nod.
Investar president and CEO John D’Angelo said, “Expansion into Texas enhances our regional footprint and provides the opportunity for additional mergers and acquisitions in Texas markets. The acquisition of Mainland Bank complements our strategy of increasing market share through partnerships with organisations having strong core deposit funding, solid commercial banking and credit practices, and exemplary customer service.
“Mainland Bank brings a committed management team, strong core deposit base and history of growth. We are enthusiastic about this partnership and look forward to welcoming Mainland Bank’s customers, shareholders and employees to the Investar family.”
Mainland Bank president and CEO Robert Harris added: “We believe our franchise will contribute to the success of the combined organisation and that Investar is the ideal partner for maximising the long-term value of our company for our employees, customers and shareholders.”