Citizens Bank located at 841 West Main Street is seen from the street Friday afternoon. Citizens Bancshares, Inc. and its subsidiary (Citzens Bank) have been purchased by Investar Holding Corporation. (Gazette photo by Raymond Partsch III)
By: RAYMOND PARTSCH III
Managing Editor
Citizens Bank will soon be known as Investar.
Investar Holding Corporation, the holding company for Investar Bank, announced late Wednesday afternoon that it had entered into a definitive agreement to acquire Citizens Bancshares, Inc. and its wholly-owned subsidiary, Citizens Bank in Ville Platte, Louisiana.
According to the terms of the agreement, Investar, which is headquartered in Baton Rouge, will pay a total amount of cash merger consideration to shareholders of Citizens equal to $45.8 million.
According to an official from Investar, as of December 31, 2016, Citizens had approximately $245.5 million in assets, $126.8 million in net loans, $208.7 million in deposits and $35.6 million in stockholder’s equity.
All three of Citizens’ existing locations will transition to the Investar name, but the experienced Citizens branch staff is expected to remain intact.
Carl Fontenot, President and Chief Executive Officer of Citizens Bank stated in a release, “We have worked hard over many years to build and maintain a community bank we can all be proud of. Our commitment to quality has not changed as we join with Investar. We are excited to be part of a community bank that can offer our customers a wider range of products and that embraces our tireless commitment to the community. Citizens Bank’s customers should see a seamless transition and have the ability to work with the same local leadership following the proposed acquisition.”
The proposed Citizens acquisition transactions are expected to be completed in the third quarter of 2017. The respective boards of each of Citizens and Investar have unanimously approved the transactions. Consummation of the proposed transactions will remain subject to the parties’ receipt of all necessary regulatory approvals, as well as the requisite approval of Citizens’ shareholders.
“I am excited to add Citizens’ customers and branches into the Investar brand,” said John D’Angelo, President and Chief Executive Officer of Investar. “The acquisition fits well with our strategy of expanding Investar’s footprint in the Louisiana market. We see tremendous value in the acquisition of this 40-year-old franchise that includes a loyal customer base and which brings an attractive cost of funds. As a community bank, we are focused on customer service, and we look forward to providing enhanced products and services to the customers, employees and communities that we serve.”
Investar Bank is a state chartered bank which has 10 full service banking offices located throughout South Louisiana with multiple locations in Baton Rouge, New Orleans and other locations in Denham Springs, Mandeville, Hammond and Lafayette.