While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...

Financial Performance - Net interest income for the three months ended September 30, 2025, was $21,153 thousand, an increase of 18.14% compared to $17,856 thousand for the same period in 2024 [13]. - Net income for the three months ended September 30, 2025, was $6,179 thousand, a 14.81% increase from $5,381 thousand in the same period of 2024 [13]. - Basic earnings per common share increased to $0.57 for the three months ended September 30, 2025, compared to $0.55 for the same period in 2024, reflecting a growth of 3.64% [13]. - Net income for the nine months ended September 30, 2025, was $16,966,000, an increase from $14,145,000 in the same period of 2024, representing a growth of 19.9% [19]. - The company reported a total comprehensive income of $10,439 thousand for the three months ended September 30, 2025, compared to $15,903 thousand for the same period in 2024 [15]. Assets and Equity - Total assets increased to $2,800,628 thousand as of September 30, 2025, up from $2,722,812 thousand at December 31, 2024, representing a growth of 2.86% [11]. - Total stockholders' equity increased to $295,295 thousand as of September 30, 2025, from $241,296 thousand at December 31, 2024, representing a growth of 22.39% [11]. - Total stockholders' equity at the end of the period on September 30, 2025, was $295,295,000, up from $245,542,000 at the end of September 30, 2024, indicating an increase of 20.2% [17]. Deposits and Loans - Total deposits rose to $2,372,678 thousand as of September 30, 2025, compared to $2,345,944 thousand at December 31, 2024, marking an increase of 1.14% [11]. - As of September 30, 2025, the total loans amounted to $2,150.5 million, an increase from $2,125.1 million at December 31, 2024, reflecting a growth of approximately 1.2% [66]. - The net increase in customer deposits for the nine months ended September 30, 2025, was $26,741,000, down from $31,750,000 in 2024, representing a decrease of 15.9% [21]. - The company experienced a net decrease in loans of $24,040,000 during the nine months ended September 30, 2025, contrasting with an increase of $53,356,000 in the same period of 2024 [19]. Credit Losses and Provisions - The provision for credit losses was $139 thousand for the three months ended September 30, 2025, compared to a reversal of $945 thousand in the same period of 2024 [13]. - The allowance for credit losses (ACL) at the end of the period was $26.5 million, compared to $28.1 million at the end of 2024, reflecting a decrease in provisions for credit losses [108]. - The company reported a provision for credit losses of $(0.1) million for the three months ended September 30, 2025, indicating a negative provision for loan losses [108]. - The negative provision for credit losses for the nine months ended September 30, 2025, included a recovery of $3.3 million from loans previously charged off due to a property insurance settlement related to Hurricane Ida [109]. Investment Securities - The total amortized cost of investment securities classified as available-for-sale (AFS) was $417,729,000 as of September 30, 2025, with a fair value of $370,251,000, indicating unrealized losses of $48,468,000 [45]. - The fair value of available-for-sale (AFS) debt securities was $370.3 million, down from an amortized cost of $417.7 million, indicating a decline in value of approximately 11.3% [59]. - The amortized cost of investment securities classified as held-to-maturity (HTM) was $47,834,000 as of September 30, 2025, with a fair value of $50,576,000, showing unrealized gains of $2,922,000 [48]. Shareholder Activities - The company declared cash dividends of $0.11 per common share for the three months ended September 30, 2025, compared to $0.105 in the same period of 2024 [13]. - Cash dividends paid on common stock for the nine months ended September 30, 2025, totaled $3,146,000, compared to $2,940,000 in 2024, reflecting an increase of 7% [21]. - The company completed a private placement of 32,500 shares of Series A Preferred Stock at a price of $1,000 per share, raising gross proceeds of $32.5 million [117]. Risk Management - The company manages risks associated with construction and development loans by limiting loan-to-value ratios and employing specific underwriting policies [77]. - The company continues to evaluate borrowers' repayment abilities through credit scores and debt-to-income ratios, ensuring prudent lending practices [84]. - The company has seen a consistent increase in pass loans across various categories, demonstrating effective risk management strategies [92]. Market Conditions and Future Outlook - The Company expects to adopt ASU 2023-09 regarding income tax disclosures, effective January 1, 2025, with no material impact anticipated on its consolidated financial statements [37]. - There have been no material changes in the Company's market risk since December 31, 2024, as detailed in the MD&A section of the Annual Report [373].

Core Viewpoint - Investar (ISTR) shows a significantly improving earnings outlook, making it a solid choice for investors as analysts continue to raise earnings estimates for the company [1][3]. Earnings Estimate Revisions - The trend in estimate revisions reflects growing analyst optimism regarding Investar Bank's earnings prospects, which is expected to positively influence the stock price [2]. - The current quarter's earnings estimate is projected at $0.54 per share, indicating a year-over-year decline of 16.9%, but the Zacks Consensus Estimate has increased by 13.83% over the last 30 days due to mixed revisions [6]. - For the full year, the earnings estimate stands at $2.06 per share, representing a 9.0% increase from the previous year, with a consensus estimate boost of 6.48% over the same period [7][8]. Zacks Rank and Performance - Investar currently holds a Zacks Rank 1 (Strong Buy), which is associated with a strong historical performance, as Zacks 1 Ranked stocks have averaged a 25% annual return since 2008 [3][9]. - The positive estimate revisions have led to a 5.8% increase in the stock price over the past four weeks, suggesting potential for further upside [10].

Core Insights - Investar Holding Corporation (NASDAQ: ISTR) reported strong earnings for the third quarter of 2025, with revenue of approximately $37.1 million, significantly exceeding the estimated $29.6 million [1][6] - The company's earnings per share (EPS) for the quarter was $0.54, surpassing the Zacks Consensus Estimate of $0.48 and showing improvement from $0.45 in the same quarter last year [2][6] - ISTR's net income for the third quarter was $5.7 million, an increase from $4.5 million in the previous quarter, indicating robust financial performance [2] Financial Ratios - The price-to-earnings (P/E) ratio stands at approximately 10.02, suggesting that investors are willing to pay $10.02 for every dollar of earnings [3][6] - The price-to-sales ratio is about 1.44, reflecting the amount investors are willing to pay per dollar of sales [3] - The enterprise value to sales ratio is around 1.78, and the enterprise value to operating cash flow ratio is approximately 21.21, providing insights into the company's valuation relative to its sales and cash flow generation [4] Debt and Liquidity - The debt-to-equity ratio is 0.42, indicating a moderate level of debt used to finance the company's assets relative to shareholders' equity [5][6] - A current ratio of 0.17 may suggest potential liquidity challenges in meeting short-term obligations, although the company has demonstrated strong earnings and revenue growth [5]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) This section provides a comprehensive overview of Investar Holding Corporation's strong Q3 2025 financial performance, strategic acquisition update, and key performance indicators [Third Quarter 2025 Financial Performance Overview](index=1&type=section&id=Third%20Quarter%202025%20Financial%20Performance%20Overview) Investar Holding Corporation reported strong Q3 2025 financial results, with net income rising to $5.7 million and diluted EPS at $0.54, driven by balance sheet optimization and improved net interest margin Net Income Available to Common Shareholders (in millions) | Period | Amount | | :----- | :----- | | Q3 2025 | $5.7 | | Q2 2025 | $4.5 | | Q3 2024 | $5.4 | Diluted Common Share Earnings | Period | GAAP EPS | Core EPS (Non-GAAP) | | :----- | :------- | :------------------ | | Q3 2025 | $0.54 | $0.54 | | Q2 2025 | $0.46 | $0.47 | | Q3 2024 | $0.54 | $0.45 | - Net interest margin improved substantially to **3.16%**, a **13 basis point increase** from the previous quarter, driven by growing yield on interest-earning assets and reducing funding costs[3](index=3&type=chunk)[4](index=4&type=chunk) - Total loans increased **2.1% (8.4% annualized)**, primarily variable-rate loans, originated at a blended interest rate of **7.5%**[4](index=4&type=chunk) - Repurchased **14,722 shares** of common stock during Q3 2025 at an average price of **$21.55**, which was below the tangible book value per common share of **$22.76**[5](index=5&type=chunk) [Wichita Falls Bancshares, Inc. Transaction Update](index=1&type=section&id=Wichita%20Falls%20Bancshares%2C%20Inc.%20Transaction%20Update) Investar provided an update on its definitive agreement to acquire Wichita Falls Bancshares, Inc., with OCC approval and an anticipated closing around January 1, 2026 - Investar entered into a definitive agreement to acquire Wichita Falls Bancshares, Inc. on **July 1, 2025**[5](index=5&type=chunk) - First National Bank, a subsidiary of Wichita Falls, had approximately **$1.4 billion in assets** at **June 30, 2025**[5](index=5&type=chunk) - The Office of the Comptroller of the Currency approved the merger on **October 15, 2025**[5](index=5&type=chunk) - The transaction is expected to close on or about **January 1, 2026**, subject to customary closing conditions, including shareholder and Federal Reserve approvals[5](index=5&type=chunk) [Third Quarter 2025 Key Performance Indicators](index=1&type=section&id=Third%20Quarter%202025%20Key%20Performance%20Indicators) Q3 2025 saw significant improvements in diluted EPS, return on average assets, net interest margin, and efficiency ratio, alongside solid loan and deposit growth Key Performance Indicators (QoQ Change) | Metric | Q3 2025 | Q2 2025 | Change | | :-------------------------------- | :------ | :------ | :----- | | Diluted EPS | $0.54 | $0.46 | +17.4% | | Core Diluted EPS | $0.54 | $0.47 | +14.9% | | Return on Average Assets | 0.88% | 0.66% | +33.3% | | Core Return on Average Assets | 0.89% | 0.69% | +29.0% | | Net Interest Margin | 3.16% | 3.03% | +13 bps | | Loan Portfolio Yield | 6.03% | 5.94% | +9 bps | | Overall Cost of Funds | 3.11% | 3.13% | -2 bps | | Cost of Deposits | 3.04% | 3.06% | -2 bps | | Efficiency Ratio | 68.47% | 74.99% | -8.7% | | Core Efficiency Ratio | 67.66% | 73.55% | -8.0% | - Credit quality remained solid with nonperforming loans at **0.36% of total loans** for both Q3 2025 and Q2 2025[7](index=7&type=chunk) - Total loans increased by **$44.2 million (2.1%)** to **$2.15 billion**, and total deposits increased by **$34.5 million (1.5%)** to **$2.37 billion**[7](index=7&type=chunk) - Variable-rate loans constituted **36% of total loans**, with **78% of new/renewed loans** being variable-rate at a **7.5% blended interest rate**[7](index=7&type=chunk) - Book value per common share increased to **$26.96 (3.7% QoQ)**, and tangible book value per common share increased to **$22.76 (4.4% QoQ)**[7](index=7&type=chunk) - Regulatory total capital ratio increased to **14.66% (7.9% QoQ)**[7](index=7&type=chunk) - Completed a private placement of **32,500 shares** of **6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock** for gross proceeds of **$32.5 million**, with net proceeds of **$30.4 million** intended to support the Wichita Falls acquisition and general corporate purposes[7](index=7&type=chunk) [Balance Sheet Analysis](index=3&type=section&id=Balance%20Sheet%20Analysis) This section analyzes Investar's balance sheet, focusing on trends in loans, credit quality, deposits, and stockholders' equity during the reporting period [Loans](index=3&type=section&id=Loans) Total loans increased QoQ but slightly decreased YoY, with business lending growth offset by declines in nonowner-occupied and construction loans due to portfolio optimization - Total loans were **$2.15 billion** at **September 30, 2025**, an increase of **$44.2 million (2.1%)** compared to June 30, 2025, and a decrease of **$5.3 million (0.2%)** compared to September 30, 2024[8](index=8&type=chunk) Loan Portfolio Composition (dollars in thousands) | Category | 9/30/2025 | 6/30/2025 | 9/30/2024 | Linked Quarter Change ($) | Linked Quarter Change (%) | Year/Year Change ($) | Year/Year Change (%) | % of Total (9/30/2025) | % of Total (9/30/2024) | | :----------------------- | :-------- | :-------- | :-------- | :---------------------- | :---------------------- | :------------------- | :------------------- | :---------------------- | :---------------------- | | Construction and development | $140,561 | $141,654 | $166,954 | $(1,093) | (0.8)% | $(26,393) | (15.8)% | 6.5% | 7.7% | | 1-4 Family | 382,445 | 387,796 | 403,097 | (5,351) | (1.4)% | (20,652) | (5.1)% | 17.8% | 18.7% | | Multifamily | 130,232 | 102,569 | 85,283 | 27,663 | 27.0% | 44,949 | 52.7% | 6.1% | 4.0% | | Farmland | 3,996 | 4,519 | 7,173 | (523) | (11.6)% | (3,177) | (44.3)% | 0.2% | 0.3% | | Owner occupied CRE | 462,830 | 462,182 | 467,467 | 648 | 0.1% | (4,637) | (1.0)% | 21.5% | 21.7% | | Nonowner occupied CRE | 459,711 | 466,009 | 499,274 | (6,298) | (1.4)% | (39,563) | (7.9)% | 21.4% | 23.2% | | Commercial and industrial | 560,763 | 531,460 | 515,273 | 29,303 | 5.5% | 45,490 | 8.8% | 26.1% | 23.9% | | Consumer | 9,985 | 10,166 | 11,325 | (181) | (1.8)% | (1,340) | (11.8)% | 0.4% | 0.5% | | **Total loans** | **$2,150,523** | **$2,106,355** | **$2,155,846** | **$44,168** | **2.1%** | **$(5,323)** | **(0.2)%** | **100%** | **100%** | - The total business lending portfolio increased by **$30.0 million (3.0%) QoQ** and **$40.9 million (4.2%) YoY**, primarily driven by increased loan production from the Commercial and Industrial Division[10](index=10&type=chunk) - Nonowner-occupied loans decreased by **$6.3 million (1.4%) QoQ** and **$39.6 million (7.9%) YoY**, primarily due to loan amortization and payoffs aligned with the strategy to optimize and de-risk the portfolio mix[11](index=11&type=chunk) - Construction and development loans decreased by **$1.1 million (0.8%) QoQ** and **$26.4 million (15.8%) YoY**, mainly due to payoffs and conversions to permanent loans upon completion of construction[12](index=12&type=chunk) [Credit Quality](index=3&type=section&id=Credit%20Quality) Credit quality remained solid, with nonperforming loans slightly up QoQ but significantly higher YoY, while ACL decreased and a provision for credit losses was recorded Nonperforming Loans and Allowance for Credit Losses | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | | Nonperforming loans (in millions) | $7.7 | $7.5 | $4.1 | | Nonperforming loans (% of total) | 0.36% | 0.36% | 0.19% | | Allowance for credit losses (in millions) | $26.5 | $26.6 | $28.1 | | ACL (% of nonperforming loans) | 344.7% | 355.9% | 682.0% | | ACL (% of total loans) | 1.23% | 1.26% | 1.30% | - The increase in nonperforming loans QoQ was primarily attributable to owner-occupied commercial real estate loans (**$0.9 million**) and 1-4 family loans (**$0.3 million**), partially offset by a transfer of a **$0.7 million** 1-4 family loan to other real estate owned[13](index=13&type=chunk) - A provision for credit losses of **$0.1 million** was recorded for Q3 2025, primarily due to loan growth partially offset by changes in the economic forecast and loan mix, compared to a negative provision of **$0.9 million** in Q3 2024[15](index=15&type=chunk) [Deposits](index=5&type=section&id=Deposits) Total deposits increased QoQ and YoY, driven by organic growth in interest-bearing demand, money market, and savings, while brokered time deposits decreased - Total deposits at **September 30, 2025**, were **$2.37 billion**, an increase of **$34.5 million (1.5%) QoQ** and **$85.3 million (3.7%) YoY**[16](index=16&type=chunk) Deposit Composition (dollars in thousands) | Category | 9/30/2025 | 6/30/2025 | 9/30/2024 | Linked Quarter Change ($) | Linked Quarter Change (%) | Year/Year Change ($) | Year/Year Change (%) | % of Total (9/30/2025) | % of Total (9/30/2024) | | :----------------------- | :-------- | :-------- | :-------- | :---------------------- | :---------------------- | :------------------- | :------------------- | :---------------------- | :---------------------- | | Noninterest bearing demand | $446,361 | $448,459 | $437,734 | $(2,098) | (0.5)% | $8,627 | 2.0% | 18.8% | 19.1% | | Interest-bearing demand | 633,766 | 576,473 | 500,345 | 57,293 | 9.9% | 133,421 | 26.7% | 26.7% | 21.9% | | Money market | 237,339 | 220,961 | 196,710 | 16,378 | 7.4% | 40,629 | 20.7% | 10.0% | 8.6% | | Savings deposits | 137,514 | 134,729 | 128,241 | 2,785 | 2.1% | 9,273 | 7.2% | 5.8% | 5.6% | | Brokered time deposits | 210,822 | 256,100 | 271,684 | (45,278) | (17.7)% | (60,862) | (22.4)% | 8.9% | 11.9% | | Time deposits | 706,876 | 701,463 | 752,694 | 5,413 | 0.8% | (45,818) | (6.1)% | 29.8% | 32.9% | | **Total deposits** | **$2,372,678** | **$2,338,185** | **$2,287,408** | **$34,493** | **1.5%** | **$85,270** | **3.7%** | **100%** | **100%** | - The increase in interest-bearing demand, money market, and savings deposits was primarily due to organic growth[18](index=18&type=chunk) - Brokered time deposits decreased significantly, reflecting Investar's strategy to secure fixed-cost funding and reduce short-term borrowings, with the balance remaining below **10% of total assets**[18](index=18&type=chunk) [Stockholders' Equity](index=5&type=section&id=Stockholders%27%20Equity) Stockholders' equity substantially increased QoQ and YoY, driven by Series A Preferred Stock issuance, net income, and improved fair value of available-for-sale securities - Stockholders' equity was **$295.3 million** at **September 30, 2025**, an increase of **$39.4 million QoQ** and **$49.8 million YoY**[20](index=20&type=chunk) - The increase was primarily attributable to the issuance of the **Series A Preferred Stock** (gross proceeds of **$32.5 million**), net income for the quarter/last twelve months, and a decrease in accumulated other comprehensive loss due to an increase in the fair value of available-for-sale securities[19](index=19&type=chunk)[20](index=20&type=chunk) [Income Statement Analysis](index=6&type=section&id=Income%20Statement%20Analysis) This section analyzes Investar's income statement, focusing on net interest income, noninterest income, noninterest expense, taxes, and earnings per common share [Net Interest Income](index=6&type=section&id=Net%20Interest%20Income) Net interest income significantly increased QoQ and YoY, driven by improved net interest margin from higher asset yields and lower funding costs, especially from brokered time deposits and short-term borrowings Net Interest Income (in millions) | Period | Amount | QoQ Change (%) | YoY Change (%) | | :----- | :----- | :------------- | :------------- | | Q3 2025 | $21.2 | +7.7% | +18.5% | | Q2 2025 | $19.6 | - | - | | Q3 2024 | $17.9 | - | - | Net Interest Margin (NIM) | Period | NIM | QoQ Change (bps) | YoY Change (bps) | | :----- | :-- | :--------------- | :--------------- | | Q3 2025 | 3.16% | +13 | +49 | | Q2 2025 | 3.03% | - | - | | Q3 2024 | 2.67% | - | - | - The increase in NIM QoQ was driven by an **8 basis point increase** in the yield on interest-earning assets and a **2 basis point decrease** in the overall cost of funds, while the YoY increase was primarily due to a **50 basis point decrease** in the overall cost of funds[22](index=22&type=chunk) Yield on Interest-Earning Assets & Cost of Funds | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------- | :------ | :------ | :------ | | Yield on interest-earning assets | 5.53% | 5.45% | 5.51% | | Overall cost of funds | 3.11% | 3.13% | 3.61% | | Cost of deposits | 3.04% | 3.06% | 3.45% | | Cost of short-term borrowings | 2.93% | 3.13% | 4.59% | - The decrease in the cost of deposits QoQ and YoY resulted primarily from lower average balances and rates paid on brokered time deposits and time deposits[25](index=25&type=chunk) - The decrease in the cost of short-term borrowings QoQ and YoY was mainly due to reduced utilization of short-term FHLB advances and the repayment of **$109.0 million** in borrowings under the Bank Term Funding Program (BTFP) in Q4 2024[26](index=26&type=chunk) [Noninterest Income](index=7&type=section&id=Noninterest%20Income) Noninterest income increased QoQ due to equity security gains and other operating income, but decreased YoY due to a prior year's legal settlement income Noninterest Income (in millions) | Period | Amount | QoQ Change (%) | YoY Change (%) | | :----- | :----- | :------------- | :------------- | | Q3 2025 | $3.0 | +13.6% | -15.8% | | Q2 2025 | $2.6 | - | - | | Q3 2024 | $3.5 | - | - | - The QoQ increase was primarily driven by a **$0.2 million increase** in the change in fair value of equity securities, a **$0.1 million increase** in gain on sale of other real estate owned, and a **$0.1 million increase** in other operating income (including **$0.4 million** from distributions from other investments)[29](index=29&type=chunk) - The YoY decrease was mainly attributable to **$1.1 million** in income from a legal settlement recorded in Q3 2024 related to a loan impaired by Hurricane Ida[30](index=30&type=chunk) [Noninterest Expense](index=8&type=section&id=Noninterest%20Expense) Noninterest expense slightly decreased QoQ due to lower operating and data processing costs, but increased YoY due to higher salaries and acquisition expenses Noninterest Expense (in millions) | Period | Amount | QoQ Change (%) | YoY Change (%) | | :----- | :----- | :------------- | :------------- | | Q3 2025 | $16.5 | -1.0% | +2.1% | | Q2 2025 | $16.7 | - | - | | Q3 2024 | $16.2 | - | - | - The QoQ decrease was primarily due to a **$0.2 million decrease** in other operating expenses (driven by lower write-down of other real estate owned) and a **$0.1 million decrease** in data processing costs due to more favorable contract terms[32](index=32&type=chunk) - The YoY increase was mainly driven by a **$0.3 million increase** in salaries and employee benefits (investment in Texas markets, health insurance claims) and a **$0.2 million increase** in acquisition expense related to the Wichita Falls transaction[33](index=33&type=chunk) [Taxes](index=8&type=section&id=Taxes) Income tax expense and effective tax rate increased QoQ and YoY, with Q3 2024's lower rate due to a revision for projected non-taxable income Income Tax Expense and Effective Tax Rate | Period | Income Tax Expense (in millions) | Effective Tax Rate | | :----- | :------------------------------- | :----------------- | | Q3 2025 | $1.3 | 17.3% | | Q2 2025 | $0.9 | 17.2% | | Q3 2024 | $0.8 | 12.7% | - The Q3 2024 effective tax rate reflected a revision to account for a projected increase in non-taxable income from bank-owned life insurance in Q4 2024[34](index=34&type=chunk) [Earnings Per Common Share](index=8&type=section&id=Earnings%20Per%20Common%20Share) Diluted earnings per common share increased QoQ and remained stable YoY Earnings Per Common Share | Period | Basic EPS | Diluted EPS | | :----- | :-------- | :---------- | | Q3 2025 | $0.57 | $0.54 | | Q2 2025 | $0.46 | $0.46 | | Q3 2024 | $0.55 | $0.54 | [Company Information](index=8&type=section&id=Company%20Information) This section provides an overview of Investar Holding Corporation, including its operations, geographic presence, and key financial metrics [About Investar Holding Corporation](index=8&type=section&id=About%20Investar%20Holding%20Corporation) Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, provides banking services through Investar Bank, N.A., operating 29 branches across three states with $2.8 billion in assets - Investar is headquartered in **Baton Rouge, Louisiana**[36](index=36&type=chunk) - Provides full banking services (excluding trust services) through its wholly-owned subsidiary, **Investar Bank, National Association**[36](index=36&type=chunk) - Operates **29 branch locations** serving Louisiana, Texas, and Alabama[36](index=36&type=chunk) - At **September 30, 2025**, the Bank had **326 full-time equivalent employees** and total assets of **$2.8 billion**[36](index=36&type=chunk) [Forward-Looking Statements & Disclosures](index=8&type=section&id=Forward-Looking%20Statements%20%26%20Disclosures) This section outlines Investar's forward-looking statements, non-GAAP financial measures, and associated risks, including those related to the pending Wichita Falls transaction [Non-GAAP Financial Measures](index=8&type=section&id=Non-GAAP%20Financial%20Measures) This section clarifies the use of non-GAAP financial measures like 'tangible common equity' and 'core earnings' for insights into performance, emphasizing they are not GAAP substitutes - The press release includes non-GAAP financial measures like 'tangible common equity,' 'core earnings,' and 'core efficiency ratio' to provide additional insights into Investar's financial results[37](index=37&type=chunk) - Management believes these measures help investors understand factors and trends affecting the business and allow for performance comparison with the financial services sector[37](index=37&type=chunk) - Non-GAAP measures should not be considered a substitute for GAAP measures and may not be comparable to similarly named measures from other companies[37](index=37&type=chunk) [Forward-Looking and Cautionary Statements](index=9&type=section&id=Forward-Looking%20and%20Cautionary%20Statements) This section outlines Investar's forward-looking statements, cautioning that actual results may differ due to risks including economic conditions, interest rates, strategic execution, and external factors - The press release contains forward-looking statements based on current plans, estimates, and expectations, which are subject to various risks and uncertainties[38](index=38&type=chunk)[39](index=39&type=chunk) - Key risk factors include business and economic conditions, changes in inflation and interest rates, ability to execute strategy, loan and deposit growth, acquisition success, liquidity, credit loss reserve accuracy, loan portfolio quality, investment portfolio changes, management team dependence, geographic concentration, and risks related to Series A Preferred Stock[39](index=39&type=chunk) - Additional factors include increasing regulatory costs, geopolitical tensions (e.g., wars in Ukraine and Israel), public health challenges, credit exposure concentration, asset quality deterioration, oil and natural gas price fluctuations, data processing failures, cyberattacks, fraud, goodwill impairment, litigation, competitive pressures, changes in laws and regulations, FDIC insurance costs, governmental policies, and adverse weather events[40](index=40&type=chunk)[42](index=42&type=chunk) - Investar does not undertake any obligation to publicly update or revise any forward-looking statement[39](index=39&type=chunk) [Forward-Looking and Cautionary Statements Relating to the Pending Wichita Falls Transaction](index=11&type=section&id=Forward-Looking%20and%20Cautionary%20Statements%20Relating%20to%20the%20Pending%20Wichita%20Falls%20Transaction) This section addresses forward-looking statements and risks for the Wichita Falls acquisition, including obtaining approvals, successful integration, synergy realization, and operational disruptions - Forward-looking statements related to the Wichita Falls transaction include potential benefits, future financial and operating results, Investar's plans, objectives, expectations, intentions, and the expected timing of completion[41](index=41&type=chunk) - Important factors that could cause actual results to differ include the ability to obtain shareholder and regulatory approvals, satisfaction of closing conditions, successful business integration, realization of cost savings and synergies, maintenance of customer/employee/vendor relationships, and diversion of management time[41](index=41&type=chunk) [Additional Information about the Proposed Merger and Where to Find It](index=12&type=section&id=Additional%20Information%20about%20the%20Proposed%20Merger%20and%20Where%20to%20Find%20It) This section guides interested parties to detailed information about the proposed merger, referencing SEC filings like the Form S-4 registration statement and joint proxy statement/prospectus - Investar filed a registration statement on **Form S-4**, including a joint proxy statement/prospectus, which was declared effective by the SEC on **September 23, 2025**[44](index=44&type=chunk) - Investors and security holders are urged to read the **Form S-4**, proxy statement/prospectus, and other relevant documents filed with the SEC for important information about the proposed merger[44](index=44&type=chunk) - Free copies of these documents are available through the SEC website (**https://www.sec.gov**) and in the 'Investors' section of Investar's website (**www.investarbank.com**)[44](index=44&type=chunk) [Participants in the Solicitation](index=12&type=section&id=Participants%20in%20the%20Solicitation) This section identifies directors and officers of Investar and Wichita Falls as potential proxy solicitation participants for the merger, directing readers to SEC filings for ownership details - Investar and Wichita Falls and their respective directors and officers may be deemed participants in the solicitation of proxies from their shareholders in connection with the proposed merger[45](index=45&type=chunk) - Information about Investar's directors and executive officers and their ownership of Investar's securities is available in Investar's SEC filings, including the definitive proxy statement/prospectus and the most recent Annual Report on Form 10-K[45](index=45&type=chunk) [No Offer or Solicitation](index=12&type=section&id=No%20Offer%20or%20Solicitation) This standard disclaimer clarifies that the press release does not constitute an offer to sell or solicit an offer to buy Investar securities - The information contained in this press release is not an offer to sell or the solicitation of an offer to buy any securities of Investar[46](index=46&type=chunk) [Contact Information](index=12&type=section&id=Contact%20Information) Contact details for Investar Holding Corporation for further information - For further information, contact **John Campbell, Executive Vice President and Chief Financial Officer**, at **(225) 227-2215** or **John.Campbell@investarbank.com**[47](index=47&type=chunk) [Financial Statements & Reconciliations](index=13&type=section&id=Financial%20Statements%20%26%20Reconciliations) This section presents Investar's summary financial information, asset quality, capital ratios, consolidated balance sheets, income statements, and non-GAAP reconciliations [Summary Financial Information](index=13&type=section&id=Summary%20Financial%20Information) This section provides a high-level overview of Investar's key financial data for Q3 2025, Q2 2025, and Q3 2024, including earnings, balance sheet, per share data, and performance ratios Earnings Data (Amounts in thousands) | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | Linked Quarter | Year/Year | | :-------------------------------- | :-------- | :-------- | :-------- | :------------- | :-------- | | Total interest income | $37,095 | $35,359 | $36,848 | 4.9% | 0.7% | | Total interest expense | 15,942 | 15,715 | 18,992 | 1.4% | (16.1)% | | Net interest income | 21,153 | 19,644 | 17,856 | 7.7% | 18.5% | | Provision for credit losses | 139 | 141 | (945) | (1.4)% | 114.7% | | Total noninterest income | 2,984 | 2,626 | 3,544 | 13.6% | (15.8)% | | Total noninterest expense | 16,526 | 16,700 | 16,180 | (1.0)% | 2.1% | | Income before income tax expense | 7,472 | 5,429 | 6,165 | 37.6% | 21.2% | | Income tax expense | 1,293 | 935 | 784 | 38.3% | 64.9% | | Net income | 6,179 | 4,494 | 5,381 | 37.5% | 14.8% | | Preferred stock dividends declared | 528 | — | — | — | — | | Net income available to common shareholders | $5,651 | $4,494 | $5,381 | 25.7% | 5.0% | Per Common Share Data | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | Linked Quarter | Year/Year | | :-------------------------------- | :-------- | :-------- | :-------- | :------------- | :-------- | | Basic earnings per common share | $0.57 | $0.46 | $0.55 | 23.9% | 3.6% | | Diluted earnings per common share | 0.54 | 0.46 | 0.54 | 17.4% | — | | Core basic earnings per common share | 0.58 | 0.48 | 0.45 | 20.8% | 28.9% | | Core diluted earnings per common share | 0.54 | 0.47 | 0.45 | 14.9% | 20.0% | | Book value per common share | 26.96 | 26.01 | 24.98 | 3.7% | 7.9% | | Tangible book value per common share | 22.76 | 21.80 | 20.73 | 4.4% | 9.8% | | Common shares outstanding | 9,825,883 | 9,839,848 | 9,827,622 | (0.1)% | (0.0)% | Performance Ratios | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | Linked Quarter | Year/Year | | :-------------------------------- | :-------- | :-------- | :-------- | :------------- | :-------- | | Return on average assets | 0.88% | 0.66% | 0.77% | 33.3% | 14.3% | | Core return on average assets | 0.89% | 0.69% | 0.63% | 29.0% | 41.3% | | Return on average common equity | 8.60% | 7.07% | 8.97% | 21.6% | (4.1)% | | Core return on average common equity | 8.73% | 7.40% | 7.40% | 18.0% | 18.0% | | Net interest margin | 3.16% | 3.03% | 2.67% | 4.3% | 18.4% | | Efficiency ratio | 68.47% | 74.99% | 75.61% | (8.7)% | (9.4)% | | Core efficiency ratio | 67.66% | 73.55% | 79.33% | (8.0)% | (14.7)% | [Asset Quality and Capital Ratios](index=14&type=section&id=Asset%20Quality%20and%20Capital%20Ratios) This section presents key asset quality and regulatory capital ratios for Investar Holding Corporation and Investar Bank, highlighting trends in nonperforming assets, ACL, and capital adequacy Asset Quality Ratios | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | Linked Quarter | Year/Year | | :-------------------------------- | :-------- | :-------- | :-------- | :------------- | :-------- | | Nonperforming assets to total assets | 0.44% | 0.48% | 0.32% | (8.3)% | 37.5% | | Nonperforming loans to total loans | 0.36% | 0.36% | 0.19% | — | 89.5% | | Allowance for credit losses to total loans | 1.23% | 1.26% | 1.30% | (2.4)% | (5.4)% | | Allowance for credit losses to nonperforming loans | 344.66% | 355.94% | 682.03% | (3.2)% | (49.5)% | Capital Ratios (Investar Holding Corporation) | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | Linked Quarter | Year/Year | | :-------------------------------- | :-------- | :-------- | :-------- | :------------- | :-------- | | Total common equity to total assets | 9.46% | 9.31% | 8.76% | 1.6% | 8.0% | | Tangible common equity to tangible assets | 8.10% | 7.93% | 7.38% | 2.3% | 9.8% | | Tier 1 leverage capital | 10.70% | 9.64% | 8.95% | 11.0% | 19.6% | | Common equity tier 1 capital | 11.13% | 11.28% | 10.33% | (1.3)% | 7.7% | | Tier 1 capital | 12.83% | 11.70% | 10.74% | 9.7% | 19.5% | | Total capital | 14.66% | 13.59% | 13.48% | 7.9% | 8.8% | Capital Ratios (Investar Bank) | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | Linked Quarter | Year/Year | | :-------------------------------- | :-------- | :-------- | :-------- | :------------- | :-------- | | Tier 1 leverage capital | 10.88% | 10.08% | 10.06% | 7.9% | 8.2% | | Common equity tier 1 capital | 13.05% | 12.24% | 12.07% | 6.6% | 8.1% | | Tier 1 capital | 13.05% | 12.24% | 12.07% | 6.6% | 8.1% | | Total capital | 14.17% | 13.40% | 13.26% | 5.7% | 6.9% | [Consolidated Balance Sheets](index=15&type=section&id=Consolidated%20Balance%20Sheets) This section presents Investar Holding Corporation's consolidated balance sheets, detailing assets, liabilities, and stockholders' equity for Q3 2025, Q2 2025, and Q3 2024 Consolidated Balance Sheets (Amounts in thousands) | Category | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | | **ASSETS** | | | | | Cash and cash equivalents | $35,373 | $55,224 | $86,340 | | Available for sale securities | 370,251 | 355,708 | 350,646 | | Held to maturity securities | 47,834 | 41,528 | 18,302 | | Loans, net | 2,124,053 | 2,079,735 | 2,127,743 | | Total assets | $2,800,628 | $2,748,065 | $2,802,573 | | **LIABILITIES** | | | | | Total deposits | $2,372,678 | $2,338,185 | $2,287,408 | | Advances from Federal Home Loan Bank | 60,000 | 70,000 | 63,500 | | Borrowings under Bank Term Funding Program | — | — | 109,000 | | Total liabilities | 2,505,333 | 2,492,136 | 2,557,031 | | **STOCKHOLDERS' EQUITY** | | | | | Preferred stock | 30,353 | — | — | | Common stock | 9,826 | 9,840 | 9,828 | | Retained earnings | 146,178 | 141,608 | 127,860 | | Total stockholders' equity | 295,295 | 255,929 | 245,542 | | Total liabilities and stockholders' equity | $2,800,628 | $2,748,065 | $2,802,573 | [Consolidated Statements of Income](index=16&type=section&id=Consolidated%20Statements%20of%20Income) This section provides Investar Holding Corporation's consolidated statements of income, detailing interest income/expense, net interest income, provision for credit losses, noninterest income/expense, and net income for Q3 2025, Q2 2025, and Q3 2024 Consolidated Statements of Income (Amounts in thousands) | Category | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | | **INTEREST INCOME** | | | | | Interest and fees on loans | $32,563 | $31,140 | $32,764 | | Total interest income | 37,095 | 35,359 | 36,848 | | **INTEREST EXPENSE** | | | | | Interest on deposits | 14,726 | 14,456 | 15,729 | | Interest on borrowings | 1,216 | 1,259 | 3,263 | | Total interest expense | 15,942 | 15,715 | 18,992 | | Net interest income | 21,153 | 19,644 | 17,856 | | Provision for credit losses | 139 | 141 | (945) | | Net interest income after provision for credit losses | 21,014 | 19,503 | 18,801 | | **NONINTEREST INCOME** | | | | | Service charges on deposit accounts | 832 | 788 | 828 | | Income from legal settlement | — | — | 1,122 | | Total noninterest income | 2,984 | 2,626 | 3,544 | | **NONINTEREST EXPENSE** | | | | | Salaries and employee benefits | 10,302 | 10,257 | 9,982 | | Acquisition expenses | 246 | 182 | — | | Total noninterest expense | 16,526 | 16,700 | 16,180 | | Income before income tax expense | 7,472 | 5,429 | 6,165 | | Income tax expense | 1,293 | 935 | 784 | | Net income | 6,179 | 4,494 | 5,381 | | Preferred stock dividends declared | 528 | — | — | | Net income available to common shareholders | $5,651 | $4,494 | $5,381 | | **EARNINGS PER COMMON SHARE** | | | | | Basic earnings per common share | $0.57 | $0.46 | $0.55 | | Diluted earnings per common share | 0.54 | 0.46 | 0.54 | | Cash dividends declared per common share | 0.11 | 0.11 | 0.105 | [Consolidated Average Balance Sheet, Interest Earned and Yield Analysis](index=17&type=section&id=Consolidated%20Average%20Balance%20Sheet%2C%20Interest%20Earned%20and%20Yield%20Analysis) This section details Investar's average balance sheet, interest earned, and yield analysis for interest-earning assets and interest-bearing liabilities for Q3 2025, Q2 2025, and Q3 2024 Average Balance Sheet, Interest Earned and Yield Analysis (Amounts in thousands) | Category | Average Balance (9/30/2025) | Interest Income/Expense (9/30/2025) | Yield/Rate (9/30/2025) | | :-------------------------------- | :-------------------------- | :---------------------------------- | :--------------------- | | **Assets** | | | | | Loans | $2,141,280 | $32,563 | 6.03% | | Total interest earning assets | 2,659,306 | 37,095 | 5.53% | | Total assets | $2,797,338 | | | | **Liabilities** | | | | | Interest-bearing demand deposits | $836,137 | $4,802 | 2.28% | | Brokered time deposits | 242,224 | 2,842 | 4.66% | | Time deposits | 704,593 | 6,701 | 3.77% | | Total interest bearing deposits | 1,919,377 | 14,726 | 3.04% | | Short-term borrowings | 28,452 | 210 | 2.93% | | Long-term debt | 85,521 | 1,006 | 4.66% | | Total interest bearing liabilities | 2,033,350 | 15,942 | 3.11% | | Noninterest-bearing deposits | 451,029 | | | | Stockholders' equity | 291,173 | | | | Total liability and stockholders' equity | $2,797,338 | | | | Net interest income/net interest margin | | $21,153 | 3.16% | [Reconciliation of Non-GAAP Financial Measures](index=18&type=section&id=Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of non-GAAP financial measures to GAAP, including adjustments for interest recoveries, tangible common equity, and core earnings ratios Interest Earned and Yield Analysis Adjusted for Interest Recoveries and Accretion (Amounts in thousands) | Category | Average Balance (9/30/2025) | Adjusted Interest Income (9/30/2025) | Adjusted Yield/Rate (9/30/2025) | | :-------------------------------- | :-------------------------- | :----------------------------------- | :------------------------ | | Loans | $2,141,280 | $32,563 | | | Adjustments: Interest recoveries | | 64 | | | Adjustments: Accretion | | 6 | | | Adjusted loans | 2,141,280 | 32,493 | 6.02% | | Adjusted interest earning assets | 2,659,306 | 37,025 | 5.52% | | Total interest-bearing liabilities | 2,033,350 | 15,942 | 3.11% | | Adjusted net interest income/adjusted net interest margin | | $21,083 | 3.15% | Tangible Common Equity and Tangible Assets (Amounts in thousands) | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | | Total stockholders' equity | $295,295 | $255,929 | $245,542 | | Less: preferred stock | 30,353 | — | — | | Total common equity | 264,942 | 255,929 | 245,542 | | Less: Goodwill | 40,088 | 40,088 | 40,088 | | Less: Core deposit intangible | 1,115 | 1,239 | 1,656 | | Less: Trademark intangible | 100 | 100 | 100 | | Tangible common equity | $223,639 | $214,502 | $203,698 | | Total assets | $2,800,628 | $2,748,065 | $2,802,573 | | Less: Goodwill | 40,088 | 40,088 | 40,088 | | Less: Core deposit intangible | 1,115 | 1,239 | 1,656 | | Less: Trademark intangible | 100 | 100 | 100 | | Tangible assets | $2,759,325 | $2,706,638 | $2,760,729 | | Tangible common equity to tangible assets | 8.10% | 7.93% | 7.38% | | Book value per common share | $26.96 | $26.01 | $24.98 | | Tangible book value per common share | 22.76 | 21.80 | 20.73 | Reconciliation of Core Earnings and Ratios (Amounts in thousands) | Metric | 9/30/2025 | 6/30/2025 | 9/30/2024 | | :-------------------------------- | :-------- | :-------- | :-------- | | Net interest income | $21,153 | $19,644 | $17,856 | | Total noninterest income | 2,984 | 2,626 | 3,544 | | Adjustments to noninterest income (e.g., legal settlement, insurance proceeds) | (281) | (140) | (1,345) | | Core noninterest income | 2,704 | 2,376 | 2,203 | | Total noninterest expense | 16,526 | 16,700 | 16,180 | | Adjustments to noninterest expense (e.g., OREO write-down, acquisition expense) | (384) | (504) | (267) | | Core noninterest expense | 16,142 | 16,196 | 15,913 | | Core earnings before income tax expense | 7,576 | 5,683 | 5,091 | | Core income tax expense | 1,311 | 977 | 647 | | Core earnings | 6,265 | 4,706 | 4,444 | | Preferred stock dividends declared | 528 | — | — | | Core earnings available to common shareholders | $5,737 | $4,706 | $4,444 | | Core diluted earnings per common share | $0.54 | $0.47 | $0.45 | | Core efficiency ratio | 67.66% | 73.55% | 79.33% | | Core return on average assets | 0.89% | 0.69% | 0.63% | | Core return on average common equity | 8.73% | 7.40% | 7.40% |

NASDAQ: ISTR Q3 2025 Investor Presentation 1 Cautionary Statements (continued) Cautionary Statements Non-GAAP Financial Measures This presentation contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures and ratios include "tangible common equity," "tangible assets," "tangible common equity to tangible assets," "tangible book value per common share," "core noninterest income," "core ea ...

Financial Performance - Investar Holding Corporation reported net income available to common shareholders of $5.7 million, or $0.54 per diluted common share, for Q3 2025, an increase from $4.5 million, or $0.46 per diluted common share, in Q2 2025, and consistent with $5.4 million, or $0.54 per diluted common share, in Q3 2024 [1][6][35] - Core earnings per diluted common share for Q3 2025 were $0.54, up from $0.47 in Q2 2025 and $0.45 in Q3 2024 [2][6] - Net interest margin improved to 3.16%, a 13 basis point increase from 3.03% in Q2 2025 [3][21] Loan and Deposit Growth - Total loans increased by $44.2 million, or 2.1% (8.4% annualized), to $2.15 billion at September 30, 2025, compared to $2.11 billion at June 30, 2025 [4][6][7] - Total deposits rose by $34.5 million, or 1.5%, to $2.37 billion at September 30, 2025, compared to $2.34 billion at June 30, 2025 [14][6] Credit Quality - Nonperforming loans were $7.7 million, or 0.36% of total loans, at September 30, 2025, slightly up from $7.5 million, or 0.36%, at June 30, 2025 [11][12] - The allowance for credit losses was $26.5 million, representing 344.7% of nonperforming loans at September 30, 2025 [12] Acquisition Update - Investar announced the acquisition of Wichita Falls Bancshares, Inc., with the transaction expected to close around January 1, 2026, pending regulatory approvals [5][6] Stockholder Actions - The company repurchased 14,722 shares of common stock at an average price of $21.55 during Q3 2025, below the tangible book value per common share of $22.76 [5][6] - Stockholders' equity increased to $295.3 million at September 30, 2025, up from $255.9 million at June 30, 2025, primarily due to the issuance of Series A Preferred Stock and net income [19][18]

Company Overview - Investar (ISTR) is headquartered in Baton Rouge and operates as a holding company for Investar Bank, currently experiencing a price change of -1.91% this year [3] - The company is paying a dividend of $0.11 per share, resulting in a dividend yield of 2.04%, which is lower than the Southeast banking industry's yield of 2.41% and the S&P 500's yield of 1.52% [3] Dividend Performance - Investar's current annualized dividend of $0.44 represents a 7.3% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 11.29% [4] - The current payout ratio is 20%, indicating that the company pays out 20% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Investar's earnings in 2025 is $1.93 per share, reflecting a year-over-year earnings growth rate of 2.12% [5] - Future dividend growth is expected to depend on earnings growth and the payout ratio [4] Investment Considerations - Investar is considered a compelling investment opportunity due to its strong dividend performance, despite the general trend of high-yielding stocks struggling during periods of rising interest rates [6] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [6]

Core Points - Investar Holding Corporation declared a quarterly cash dividend of $0.11 per share for its common stockholders [1] - The dividend is scheduled to be paid on October 31, 2025, to shareholders of record as of September 30, 2025 [1]

Core Insights - Chemung Financial Corporation is a regional bank holding company based in New York, offering various financial services including commercial and consumer banking, wealth management, and insurance services [1] - The company faces competition from peers like C&F Financial Corporation and Enterprise Bancorp, which exhibit different efficiencies in capital utilization [1] Financial Performance - Chemung Financial's Return on Invested Capital (ROIC) is -0.52%, while its Weighted Average Cost of Capital (WACC) is 15.17%, leading to a ROIC to WACC ratio of -0.034, indicating insufficient returns to cover capital costs [2] - In comparison, Central Valley Community Bancorp and American National Bankshares Inc. have negative ROIC to WACC ratios of -0.761 and -0.009, respectively, while Investar Holding Corporation shows a high ROIC of 203.48% against a WACC of 23.00%, resulting in a ROIC to WACC ratio of 8.846, demonstrating exceptional efficiency [3][4] Industry Comparison - The analysis indicates that Chemung Financial Corporation is underperforming in capital utilization, while Investar Holding Corporation exemplifies superior efficiency [5] - The comparative analysis highlights varying efficiencies in capital utilization across the banking sector, emphasizing the importance of evaluating ROIC and WACC to assess a company's ability to generate returns relative to its cost of capital [4][5]