Investar Holding gains regulatory, holder approvals for Bank of York acquisition
Investar Holding announced that necessary shareholder and regulatory approvals have been obtained for its previously announced pending acquisition of Bank of York, York, Alabama. The company also provided an update regarding expected timeframes to complete the acquisition. On July 30, 2019, the company announced that it and Investar Bank had entered into an Agreement and Plan of Reorganization with Bank of York. At June 30, 2019, Bank of York had approximately $99.5 million in assets, $46.0 million in net loans, $82.3 million in deposits, and $11.2 million in stockholders' equity. Bank of York is an Alabama state bank, offering a full range of banking and financial services to individual and corporate customers. Its operations in Alabama include a main office in York, a branch in Livingston, and loan production office in Tuscaloosa, which is expected to be converted into a full-service branch at some point after the closing of the transaction, subject to Investar Bank's receipt of the necessary regulatory approvals for that branch. Under the terms of the Merger Agreement, the company will pay a total amount of cash merger consideration to shareholders of Bank of York equal to $15.0 million. Bank of York will also be permitted under the Merger Agreement to make regular and special pre-closing cash distributions to its shareholders in an aggregate amount of approximately $1.0 million. Bank of York shareholders approved the acquisition at a shareholder meeting held on October 16, 2019. No vote of the shareholders of the company is required to complete the transaction. Completion of the acquisition remains subject to the satisfaction or waiver of other customary closing conditions under the terms of the Merger Agreement. Upon satisfaction of all closing conditions, the Company anticipates it will close the Bank of York acquisition on or about November 1, 2019. Branch and operating system conversions are currently scheduled to be completed in the second quarter of 2020.