The parent company of Investar Bank signed a new deal to acquire Alabama-based Cheaha Financial Group for $41.1 million after a previous agreement fell through in late June.
At the time, Investar Bank cited unpredictable economic conditions caused by the coronavirus pandemic.
Since then, a new deal between Oxford, Alabama-based Cheaha Bank and Investar has been signed and is expected to close by second quarter 2021.
Shareholders of Cheaha Bank are expected to receive $80 in cash for each of their shares.
Cheaha Bank had $236 million in total assets, $202 million in deposits and $126 million in net loans as of Dec. 31 across four branches in Alabama. Investar has sought to acquire banks along the Interstate 20 corridor across the Southeast. The deal has already been approved by boards of directors at both Cheaha and Investar.
"The partnership that made sense then makes even more sense now," said Shad A. Williams CEO of Cheaha Bank said in a news release.
John D'Angelo, Investar CEO, said the deal was a "strategic fit" for the bank.
"We maintained a good relationship following the termination and are pleased that we were able to reach a new agreement once the environment made consummation of the transaction practical," he said.
Investar Holding Corp. had fourth-quarter profit of $4.5 million for 42 cents per share. Revenue was $26.7 million during fourth quarter.
The results topped Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of 32 cents per share.
For the year, the company reported profit of $13.9 million, or $1.27 per share. Revenue was reported as $85.6 million.
Investar shares have increased slightly more than 4% since the beginning of the year. Monday, shares hit $17.26, a fall of 27% in the last 12 months.
The bank said it plans to close one of its 12 Baton Rouge area branches in the first half of 2021 as a cost savings move.
The parent company of Investar Bank said it will not go ahead with the purchase of Alabama-based Cheaha Financial Group because of the unpredi…