Investar Holding Corporation (NASDAQ:ISTR) Files An 8-K Termination of a Material Definitive Agreement

As previously disclosed, on December 19, 2019, Investar Holding Corporation, a Louisiana corporation (“Investar”), the holding company for Investar Bank, National Association (“Investar Bank”), entered into an Agreement and Plan of Reorganization (the “Reorganization Agreement”) with Cheaha Financial Group, Inc. (“Cheaha”), the holding company for Cheaha Bank, an Alabama state-chartered bank, and High Point Acquisition, Inc., a Louisiana corporation and wholly-owned subsidiary of Investar. The Reorganization Agreement provided for the acquisition of Cheaha Bank by Investar by virtue of a series of merger transactions described therein.

After the close of business on June 30, 2020, Investar provided notice of termination of the Reorganization Agreement to Cheaha because the transactions contemplated by the Reorganization Agreement were not consummated by the close of business on June 30, 2020. Concurrently with the notice of termination, the related ancillary agreements, including without limitation the Agreement and Plan of Bank Merger, dated as of December 19, 2019, by and between Investar Bank and Cheaha Bank, were also terminated in accordance with their terms.

The termination of the Reorganization Agreement came in response to the unpredictable economic conditions resulting from the global health crisis caused by the COVID-19 pandemic, which made it impractical for Investar to complete the strategic transaction contemplated by the Reorganization Agreement. Neither Investar nor Cheaha will be required to pay the other party any termination fee under the terms of the Reorganization Agreement as a result of its termination.

About Investar Holding Corporation (NASDAQ:ISTR)

Investar Holding Corporation is financial holding company that conducts its operations through, Investar Bank (the Bank), which is a commercial bank. The Company offers a range of commercial and retail lending products throughout its market areas, including business loans to small to medium-sized businesses, as well as loans to individuals. It serves its primary markets of Baton Rouge, New Orleans, Hammond and Lafayette, Louisiana, and their surrounding metropolitan areas from its office located in Baton Rouge and from approximately 10 additional service branches. The Bank’s other banking services include cashiers’ checks, direct deposit of payroll and Social Security checks, night depository, bank-by-mail, automated teller machines with deposit automation and debit cards. The Company’s business lending products include owner-occupied commercial real estate loans, construction loans, and commercial and industrial loans, such as term loans, equipment financing and lines of credit.