Louisiana-based Investar Holding Corp. and its wholly-owned subsidiary, Investar Bank, announced Tuesday that it plans to purchase the Bank of York in York, Alabama in a $15 million deal.
Investar will pay $15 million in cash merger considerations to Bank of York shareholders. The Bank of York will be permitted to make regular and special pre-closing cash distributions to its shareholders in an aggregate amount of approximately $1 million.
Bank of York had approximately $99.5 million in assets, $46.0 million in net loans, $82.3 million in deposits with $19.6 million in noninterest-bearing accounts, $11.2 million in stockholders’ equity, and a loan-to-deposit ratio of 56.53 percent as of June 30.
It offers a full range of banking products and services to the residents and businesses of Sumter and Tuscaloosa Counties. Operations in Alabama include a main office in York, a branch in Livingston and loan production office in Tuscaloosa, expected to become a full service branch after the closing of the transaction.
Investar’s acquisition of Bank of York is part of a multi-state expansion strategy and would expand Investar’s branches along the I-20 corridor in Alabama.
Although Bank of York will transition to the Investar name, the Bank of York staff is expected to remain substantially intact.