News Summary
In early July, Baton Rouge banks Business First Bancshares and Investar Bank announced plans to expand via acquisitions valued at $83 million each. Business First will acquire Progressive Bancorp, enhancing its presence in northern Louisiana, while Investar Bank will acquire First National Bank in Texas, marking significant growth in the banking sector amidst ongoing consolidation trends. Both banks are committed to community-focused banking and expect to complete their transactions by 2026.
Baton Rouge – In early July, two banks from Baton Rouge announced their plans to expand through significant $83 million acquisitions. Business First Bancshares and Investar Bank are poised to grow their market presence within Louisiana and Texas, respectively, reflecting a broader trend in the banking sector.
Business First Bancshares will acquire Progressive Bancorp, based in Monroe, Louisiana, an acquisition that will considerably enhance its footprint in northern Louisiana. With this transaction, Business First will double its branch locations in the region, bringing its total number of branches there to 18. Progressive Bancorp operates nine branches across Shreveport, Monroe, Bossier City, and Winnsboro and captures about 5% of the deposits in its service area. In comparison, Business First currently holds around 2.3% of that market’s deposits.
Business First’s acquisition of Progressive marks the bank’s sixth acquisition following its purchase of Pedestal Bank in 2020 and is expected to close early in the first quarter of 2026. This expansion is projected to boost Business First’s total assets to approximately $8.5 billion. As part of the acquisition, Business First plans to issue over 3.05 million shares to Progressive shareholders, who will collectively own 9.3% of the combined entity post-transaction. Additionally, Progressive’s CEO and President will be integrated into Business First’s governance, indicating a commitment to local leadership following the merger.
The financial benefits of this acquisition are anticipated to be substantial, with Business First projecting savings equivalent to 45% of Progressive’s operating expenses. The deal is also projected to be 10% accretive to Business First’s earnings by 2026, with expectations of recovering its tangible book value within a timeframe of less than three years.
In a parallel move, Investar Bank has announced its acquisition of First National Bank in Wichita Falls, Texas, which is also valued at around $83 million. This acquisition will grant Investar ten branches in Texas and raise its assets to over $4 billion. The transaction includes seven branches and fits into Investar’s long-term strategy for multistate growth.
Investar’s planned acquisition is expected to close in the fourth quarter of 2026. The bank aims to foster its community banking model by retaining local staff from First National Bank while ensuring a smooth transition for clients. Wichita Falls shareholders will benefit from the deal, receiving approximately 3,955,334 shares of Investar common stock along with $7.2 million in cash.
Both banks assert their dedication to shared values and cultural integrity as they finalize these acquisitions, reinforcing their commitment to community-centered banking. The push for these mergers comes amid a significant increase in banking industry consolidation, with analysts noting that there have already been 71 merger and acquisition deals in the banking sector in 2025, up from 63 at the same point in the previous year.
The acquisitions undertaken by Business First Bancshares and Investar Bank highlight a dynamic trend in the banking industry, where increased mergers and acquisitions are reshaping market landscapes and providing opportunities for growth within the sector. Analysts expect this growth trend to continue as banks strive to enhance their operational efficiencies and serve their communities better through expanded resources and capabilities.
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