Investar Holding to acquire Citizens Bancshares for $45.8m
According to the terms of the Agreement, Investar will pay a total amount of cash merger consideration to shareholders of Citizens equal to $45.8 million.
At December 31, 2016, Citizens had approximately $245.5 million in assets, $126.8 million in net loans, and $208.7 million in deposits and $35.6 million in stockholder’s equity.
Citizens offers a full range of banking products and services to the residents of Evangeline Parish through its three branch locations.
Investar’s acquisition of Citizens would expand Investar’s branch footprint in the Louisiana market—further bolstering its core deposit base and positioning Investar to continue to build on its existing record of growth and client service under the leadership of its current management team.
For Citizens, the transactions would offer the benefits of additional financial strength and the expanded resources of a larger banking enterprise.
Although Citizens’ three existing locations will transition to the Investar name, the experienced Citizens branch staff is expected to remain intact, continuing to provide exemplary and personal service to Citizens’ growing customer base.
Investar estimates annual pre-tax expense reductions associated with the transaction will exceed 30% of Citizen Bank’s annual non-interest expenses.
The expense savings are estimated to be fully achieved beginning in 2018.
The transaction is expected to be over 20% accretive to 2018 EPS, the first full year of combined operations. ■