Kroll Bond Rating Agency views Investar Holding Corp.'s proposed purchase of BOJ Bancshares Inc. as "neutral" to the ratings of Investar in the short term, but "potentially positive in the medium and long term," noting that the transaction further enhances Investar's market presence within its footprint, and bolsters its core deposit base.
Kroll expects limited acquisition and integration risk associated with the transaction. Post-merger, the rating agency does not expect any impact to the loan portfolio profile for Investar.
The cash-and-stock deal is valued at approximately $22.1 million.
Baton Rouge, La.-based Investar is the parent company of Investar Bank. Jackson, La.-based BOJ Bancshares is the parent company of Highlands Bank.