Investar Holding Corporation (the “Company”) (NASDAQ:ISTR), the holding company of Investar Bank, National Association (the “Bank”), today announced that it has received the necessary shareholder and regulatory approvals for its previously announced, pending acquisition of Cheaha Financial Group, Inc. (“Cheaha”), the holding company for Cheaha Bank in Oxford, Alabama. The Company also provided an update regarding expected timing for completion of the acquisition.
On January 25, 2021, the Company announced that it had entered into an Agreement and Plan of Reorganization (the “Merger Agreement”) with Cheaha, dated January 21, 2021. At December 31, 2020, Cheaha Bank had approximately $236 million in assets, $126 million in net loans, and $202 million in deposits. Cheaha Bank offers a full range of banking products and services to the individuals and small businesses from four branch locations in Calhoun County, Alabama.
The Company is now pleased to announce that the shareholders of Cheaha approved the Merger Agreement and the related acquisition at a meeting held on March 16, 2021. No vote of the shareholders of the Company is required for completion of the transaction. The Company has also received the necessary approvals for the acquisition from its federal banking regulators. Completion of the acquisition remains subject to the satisfaction of customary closing conditions under the terms of the Merger Agreement, including the expiration of any statutory waiting periods. Upon satisfaction of all closing conditions, the Company anticipates it will close the Cheaha acquisition on or about April 1, 2021.
Under the terms of the Merger Agreement, consideration will be paid to the shareholders of Cheaha in the form of cash. Shareholders of Cheaha will be entitled to receive a per-share amount of cash consideration equal to $80.
John D’Angelo, President and Chief Executive Officer, commented, “We are excited to have received the approvals of our federal bank regulators and are enthusiastic to add Cheaha Bank’s customers and branches into the Investar family. We look forward to closing the acquisition early in the second quarter.”