Investar Bank

Investar Holding Corp., the Baton Rouge-based parent company of Investar Bank, reported net income of $4.7 million during the third quarter, or 46 cents per common share.

That's up from $4 million, or 41 cents per share, for the second quarter of 2018.

Baton Rouge-based Investar Holding Corp., the parent company of Investar Bank, plans to acquire a bank that will give it an entry into Alabama for $15 million cash.

"Expansion into Alabama enhances our regional footprint and provides the opportunity for additional mergers and acquisitions in the Gulf South markets," John D'Angelo Investar Bank CEO said in a news release.

Investar Bank converted to a national bank charter in July and has acquired other banks in Louisiana and Texas in recent years.

Bank of York was founded in 1911 and is headquartered in York, Alabama, which is located near the Mississippi state line about 150 miles north of Mobile. It has branches in York, Livingston and a loan production office in Tuscaloosa, which is planned to open as a branch after the deal is completed.

The deal is expected to close by fourth quarter this year, pending regulatory review and Bank of York shareholder approval. The Alabama bank shareholders may receive up to $1 million in special pre-closing cash distributions. It had $11.2 million in stockholder's equity, according to a news release. The board of directors of both Bank of York and Investar Bank have already approved the deal.

The Bank of York had $82 million in total deposits, $46 million in net loans and $99 million in total assets in addition to as of June 30. The bank generated $482,000 in net income during the second quarter, up from $384,000 for the same period last year. 

The Alabama bank had 24 employees as of June 30, which is not expected to change after the deal. 

Investar Bank has been increasingly profitable, it generated $4.9 million in net income during the second quarter, up from $3.8 million for second-quarter 2018. The bank had total assets of $1.9 billion as of June 30. 

In Baton Rouge, the bank has plans to hire 40 more employees to support growing operations and is expected to expand its main office. 

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Email Kristen Mosbrucker at kmosbrucker@theadvocate.com.