Kroll Bond Rating Agency Comments on Investar Holding Corporation and BOJ Bancshares, Inc. Merger

NEW YORK--()--Kroll Bond Rating Agency (KBRA) has released a comment on Investar Holding Corporation and BOJ Bancshares, Inc.’s merger. The report makes the following key points:

  • Investar Holding Corporation (NASDAQ:ISTR) and BOJ Bancshares, Inc. (BOJ), both based in Baton Rouge, Louisiana, announced a Definitive Agreement and Plan of Merger with Investar Holding Corporation as the surviving entity.
  • In KBRA’s view, the transaction is viewed as neutral to the ratings of Investar Holding Corporation in the short term and potentially positive in the medium and long term as it further enhances its market presence within its existing operating footprint, while also bolstering its core deposit base. KBRA views this transaction as consistent with Investar’s long-term core deposit growth initiatives through both organic growth and strategic acquisitions of deposit-rich community banks within its operating footprint.
  • Given the relatively small size of the acquisition, coupled with Investar’s recent success in mergers and acquisitions, KBRA foresees limited acquisition and integration risk associated with the transaction. Further, KBRA does not anticipate any impact to the loan portfolio profile for Investar post-merger as the two institutions appear to be relatively similar in composition.
  • The deal, valued at approximately $22.1 million, or approximately 133% of BOJ’s tangible book value, is expected to close in the fourth quarter of 2017.

To view the full comment, please click here.

About Kroll Bond Rating Agency

KBRA is registered with the U.S. Securities and Exchange Commission as a Nationally Recognized Statistical Rating Organization (NRSRO). In addition, KBRA is recognized by the National Association of Insurance Commissioners (NAIC) as a Credit Rating Provider (CRP).

Contacts

Analytical:
Kroll Bond Rating Agency
M Scott Durant, Associate Director
sdurant@kbra.com, 301-969-3248
or
Jason Szelc, Associate Director
jszelc@kbra.com, 301-969-3174

Contacts

Analytical:
Kroll Bond Rating Agency
M Scott Durant, Associate Director
sdurant@kbra.com, 301-969-3248
or
Jason Szelc, Associate Director
jszelc@kbra.com, 301-969-3174