Posted February 02, 2021The parent company of Investar Bank signed a new deal to acquire Alabama-based Cheaha Financial Group for $41.1 million after a previous agreement fell through in late June.
At the time, Investar Bank cited unpredictable economic conditions caused by the coronavirus pandemic.
Since then, a new deal between Oxford, Alabama-based Cheaha Bank and Investar has been signed and is expected to close by second quarter 2021.
Shareholders of Cheaha Bank are expected to receive $80 in cash for each of their shares.
Cheaha Bank had $236 million in total assets, $202 million in deposits and $126 million in net loans as of Dec. 31 across four branches in Alabama. Investar has sought to acquire banks along the Interstate 20 corridor across the Southeast. The deal has already been approved by boards of directors at both Cheaha and Investar.
“The partnership that made sense then makes even more sense now,” said Shad A. Williams CEO of Cheaha Bank said in a news release.
John D’Angelo, Investar CEO, said the deal was a “strategic fit” for the bank.