Company Overview - Investar (ISTR) is headquartered in Baton Rouge and operates as a holding company for Investar Bank, with a current stock price change of -1.18% this year [3] - The company is currently distributing a dividend of $0.11 per share, resulting in a dividend yield of 2.03%, which is lower than the Banks - Southeast industry's yield of 2.36% and the S&P 500's yield of 1.48% [3] Dividend Performance - Investar's annualized dividend of $0.44 has increased by 7.3% from the previous year, with a historical average annual increase of 11.29% over the last five years [4] - The current payout ratio for Investar is 20%, indicating that the company pays out 20% of its trailing 12-month earnings per share as dividends [4] Earnings Outlook - The Zacks Consensus Estimate for Investar's earnings in 2025 is projected at $1.93 per share, reflecting a year-over-year earnings growth rate of 2.12% [5] - The company is expected to experience earnings expansion this fiscal year, which will influence future dividend growth [5] Investment Considerations - Investar is positioned as a compelling investment opportunity due to its strong dividend profile, despite the general trend of high-yielding stocks facing challenges during rising interest rates [6] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a stable investment outlook [6]

Core Insights - Investar (ISTR) reported revenue of $22.27 million for the quarter ended June 2025, marking an 11.6% year-over-year increase and exceeding the Zacks Consensus Estimate of $20.96 million by 6.28% [1] - The company's EPS for the same period was $0.47, up from $0.36 a year ago, representing a surprise of 17.5% compared to the consensus estimate of $0.40 [1] Financial Performance Metrics - Net Interest Margin was reported at 3%, surpassing the average estimate of 2.9% from two analysts [4] - Efficiency Ratio stood at 75%, better than the estimated 76.3% by two analysts [4] - Total Noninterest Income reached $2.63 million, exceeding the estimated $2.12 million [4] - Net Interest Income was reported at $19.64 million, compared to the average estimate of $18.86 million [4] Stock Performance - Investar's shares have returned +19.9% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Investar (ISTR) reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.40 per share, and showing an increase from $0.36 per share a year ago, resulting in an earnings surprise of +17.50% [1] - The company achieved revenues of $22.27 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 6.28% and up from $19.95 million year-over-year [2] - Investar has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Investar's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's price movement based on recent earnings and future expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.45 on revenues of $21.8 million, and for the current fiscal year, it is $1.93 on revenues of $84.85 million [7] Industry Context - The Banks - Southeast industry, to which Investar belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Investar's stock performance [5]

Executive Summary [Second Quarter 2025 Financial Performance](index=1&type=section&id=1.1%20Second%20Quarter%202025%20Financial%20Performance) Investar Holding Corporation reported net income of $4.5 million, or $0.46 per diluted common share, for Q2 2025, representing a decrease from Q1 2025 but an increase compared to Q2 2024, with core earnings per diluted common share at $0.47 | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Net Income (GAAP) | $4.5 million | $6.3 million | $4.1 million | | Diluted EPS (GAAP) | $0.46 | $0.63 | $0.41 | | Core Diluted EPS (Non-GAAP) | $0.47 | $0.65 | $0.36 | [Strategic Initiatives and Outlook](index=1&type=section&id=1.2%20Strategic%20Initiatives%20and%20Outlook) The company's strategy focuses on consistent, quality earnings through balance sheet optimization, leading to improved net interest margin and reduced funding costs, alongside a definitive agreement to acquire Wichita Falls Bancshares, Inc. to expand into new markets - Net interest margin improved substantially to **3.03%**, a **16 basis point increase** from the previous quarter, driven by reduced funding costs and increased yield on interest-earning assets[4](index=4&type=chunk) - Investar announced a definitive agreement to acquire Wichita Falls Bancshares, Inc., which had approximately **$1.5 billion in assets** at March 31, 2025. Post-acquisition, the combined bank will have over **$4 billion in assets**[5](index=5&type=chunk) - The company repurchased **36,065 shares** of common stock and increased its quarterly dividend per share by **5%** compared to the first quarter, demonstrating a focus on shareholder value[6](index=6&type=chunk) [Second Quarter Highlights](index=1&type=section&id=1.3%20Second%20Quarter%20Highlights) Key highlights for Q2 2025 include significant improvements in net interest margin and efficiency ratio, alongside strategic growth in the business lending portfolio and variable-rate loans, strengthening capital and progressing on the Wichita Falls acquisition | Metric | Q2 2025 | Q1 2025 | Change (bps) | | :----- | :------ | :------ | :----------- | | Net Interest Margin | 3.03% | 2.87% | +16 | | Loan Portfolio Yield | 5.94% | 5.88% | +6 | | Overall Cost of Funds | 3.13% | 3.22% | -9 | | Cost of Deposits | 3.06% | 3.15% | -9 | | Efficiency Ratio | 74.99% | 79.77% | -478 | | Core Efficiency Ratio | 73.55% | 78.71% | -516 | - Business lending portfolio increased by **$32.9 million (3.4%)** to **$993.6 million** QoQ, driven by organic growth and higher utilization of credit lines[6](index=6&type=chunk)[10](index=10&type=chunk) - Variable-rate loans increased to **34%** of total loans (from **32%** in Q1 2025), with **73%** of new originations/renewals being variable-rate at a blended interest rate of **7.7%**[6](index=6&type=chunk)[7](index=7&type=chunk) | Metric | Q2 2025 | Q1 2025 | Change | | :----- | :------ | :------ | :----- | | Book Value per Common Share | $26.01 | $25.63 | +1.5% | | Tangible Book Value per Common Share | $21.80 | $21.40 | +1.9% | | Noninterest-Bearing Deposits | $448.5 million | $436.7 million | +2.7% | | Common Equity Tier 1 Capital Ratio | 11.28% | 11.16% | +1.1% | - Investar completed a private placement of **32,500 shares** of **6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock** for **$32.5 million** to support the Wichita Falls acquisition and for general corporate purposes[7](index=7&type=chunk) Balance Sheet Overview [Loans](index=3&type=section&id=2.1%20Loans) Total loans remained relatively stable QoQ at $2.11 billion but decreased by 2.8% YoY, with growth in the business lending portfolio offset by decreases in nonowner-occupied and construction and development loans due to strategic de-risking and conversions | Metric | Q2 2025 | Q1 2025 | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :----- | :------ | :------ | :------------- | :------------- | :------------- | :------------- | | Total Loans | $2.11 billion | $2.11 billion | $(0.3) million | (0.0)% | $(60.4) million | (2.8)% | | Business Lending Portfolio | $993.6 million | $960.7 million | $32.9 million | 3.4% | $32.4 million | 3.4% | | Nonowner-Occupied Loans | $466.0 million | $481.9 million | $(15.9) million | (3.3)% | $(24.0) million | (4.9)% | | Construction and Development Loans | $141.7 million | $149.3 million | $(7.6) million | (5.1)% | $(36.2) million | (20.3)% | Loan Portfolio Composition (Q2 2025) | Loan Type | Amount ($ thousands) | Percentage of Total Loans | | :----------------------- | :------------------- | :------------------------ | | Construction and development | $141,654 | 6.7% | | 1-4 Family | $387,796 | 18.4% | | Multifamily | $102,569 | 4.9% | | Farmland | $4,519 | 0.2% | | Commercial real estate (Owner occupied) | $462,182 | 22.0% | | Commercial real estate (Nonowner occupied) | $466,009 | 22.1% | | Commercial and industrial | $531,460 | 25.2% | | Consumer | $10,166 | 0.5% | | **Total loans** | **$2,106,355** | **100%** | [Credit Quality](index=3&type=section&id=2.2%20Credit%20Quality) Credit quality saw an increase in nonperforming loans QoQ and YoY, primarily due to specific commercial and family loan relationships, while the allowance for credit losses remained stable as a percentage of total loans but decreased relative to nonperforming loans, with a provision recorded in Q2 2025 | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Nonperforming Loans | $7.5 million | $5.6 million | $5.0 million | | Nonperforming Loans to Total Loans | 0.36% | 0.27% | 0.23% | | Allowance for Credit Losses | $26.6 million | $26.4 million | $28.6 million | | Allowance for Credit Losses to Nonperforming Loans | 355.9% | 473.3% | 576.4% | | Allowance for Credit Losses to Total Loans | 1.26% | 1.25% | 1.32% | | Provision for Credit Losses | $0.1 million | $(3.6) million | $(0.4) million | - The increase in nonperforming loans QoQ was primarily due to one owner-occupied commercial relationship (**$1.3 million**) and one 1-4 family loan relationship (**$0.8 million**)[13](index=13&type=chunk) - The Q2 2025 provision for credit losses was mainly due to changes in economic forecast and loan mix, while prior negative provisions were influenced by net recoveries (e.g., property insurance settlement in Q1 2025)[15](index=15&type=chunk) [Deposits](index=5&type=section&id=2.3%20Deposits) Total deposits slightly decreased QoQ but increased significantly YoY, with noninterest-bearing and interest-bearing demand deposits growing organically, while money market, savings, and time deposits declined, aligning with the strategy to optimize funding costs | Metric | Q2 2025 | Q1 2025 | QoQ Change ($) | QoQ Change (%) | YoY Change ($) | YoY Change (%) | | :----- | :------ | :------ | :------------- | :------------- | :------------- | :------------- | | Total Deposits | $2.34 billion | $2.35 billion | $(9.2) million | (0.4)% | $128.0 million | 5.8% | | Noninterest-Bearing Demand Deposits | $448.5 million | $436.7 million | $11.7 million | 2.7% | $11.9 million | 2.7% | | Interest-Bearing Demand Deposits | $576.5 million | $569.9 million | $6.6 million | 1.2% | $109.3 million | 23.4% | | Money Market Deposits | $221.0 million | $240.3 million | $(19.3) million | (8.0)% | $43.8 million | 24.7% | | Time Deposits | $701.5 million | $719.4 million | $(17.9) million | (2.5)% | $(49.9) million | (6.6)% | | Brokered Time Deposits | $256.1 million | $244.9 million | $11.2 million | 4.6% | $6.7 million | 2.7% | - The decrease in time deposits is primarily due to maturities of higher cost time deposits, reflecting the company's strategy to keep duration short and optimize funding costs[18](index=18&type=chunk) - Brokered time deposits, used for fixed-cost funding and reducing short-term borrowings, had a weighted average duration of approximately **four months** and a weighted average rate of **4.68%** at June 30, 2025[18](index=18&type=chunk) [Stockholders' Equity](index=5&type=section&id=2.4%20Stockholders'%20Equity) Stockholders' equity increased both QoQ and YoY, primarily driven by net income for the quarter and a decrease in accumulated other comprehensive loss due to an increase in the fair value of available-for-sale securities | Metric | Q2 2025 | Q1 2025 | QoQ Change ($) | YoY Change ($) | | :----- | :------ | :------ | :------------- | :------------- | | Stockholders' Equity | $255.9 million | $251.7 million | $4.2 million | $25.7 million | - The increase in stockholders' equity is primarily attributable to net income for the quarter and a decrease in accumulated other comprehensive loss due to an increase in the fair value of the Bank's available for sale securities portfolio[19](index=19&type=chunk) Income Statement Overview [Net Interest Income](index=6&type=section&id=3.1%20Net%20Interest%20Income) Net interest income increased significantly QoQ and YoY, primarily driven by a substantial improvement in net interest margin resulting from a decrease in the overall cost of funds and an increase in the yield on interest-earning assets | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Net Interest Income | $19.6 million | $18.3 million | $17.2 million | | QoQ Change | +$1.3 million (+7.1%) | - | - | | YoY Change | +$2.4 million (+14.2%) | - | - | | Net Interest Margin | 3.03% | 2.87% | 2.62% | | Yield on Interest-Earning Assets | 5.45% | 5.39% | 5.45% | | Overall Cost of Funds | 3.13% | 3.22% | 3.58% | | Cost of Deposits | 3.06% | 3.15% | 3.38% | | Cost of Short-Term Borrowings | 3.13% | 3.56% | 4.68% | - The **16 basis point increase** in net interest margin QoQ was driven by a **nine basis point decrease** in the overall cost of funds and a **six basis point increase** in the yield on interest-earning assets[21](index=21&type=chunk) - The decrease in the cost of deposits was primarily due to lower average balances and rates paid on time deposits and brokered time deposits[24](index=24&type=chunk) - The cost of short-term borrowings decreased significantly due to reduced utilization of short-term FHLB advances and the repayment of borrowings under the Bank Term Funding Program (BTFP)[25](index=25&type=chunk) [Noninterest Income](index=6&type=section&id=3.2%20Noninterest%20Income) Noninterest income increased QoQ but decreased YoY, with the QoQ increase mainly due to higher other operating income and an increase in the fair value of equity securities, while the YoY decrease was primarily attributable to a lower gain on sale of other real estate owned | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Total Noninterest Income | $2.6 million | $2.0 million | $2.8 million | | QoQ Change | +$0.6 million (+30.6%) | - | - | | YoY Change | $(0.1) million (-4.5%) | - | - | - QoQ increase in noninterest income was driven by a **$0.4 million increase** in other operating income (including **$0.3 million** from insurance proceeds) and a **$0.1 million increase** in the change in fair value of equity securities[29](index=29&type=chunk) - YoY decrease was primarily due to a **$0.7 million decrease** in gain on sale of other real estate owned, partially offset by a **$0.4 million decrease** in loss on call or sale of investment securities[30](index=30&type=chunk) [Noninterest Expense](index=8&type=section&id=3.3%20Noninterest%20Expense) Noninterest expense increased both QoQ and YoY, with the QoQ increase mainly due to higher salaries and employee benefits, and the YoY increase driven by higher salaries, a decrease in gain on early extinguishment of subordinated debt, and increased acquisition expenses | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Total Noninterest Expense | $16.7 million | $16.2 million | $15.5 million | | QoQ Change | +$0.5 million (+2.8%) | - | - | | YoY Change | +$1.2 million (+7.9%) | - | - | - QoQ increase in noninterest expense was primarily due to a **$0.7 million increase** in salaries and employee benefits (investment in people, incentive-based compensation, health insurance claims)[32](index=32&type=chunk) - YoY increase was driven by a **$0.7 million increase** in salaries and employee benefits, a **$0.3 million decrease** in gain on early extinguishment of subordinated debt, 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=3.4%20Taxes) Income tax expense for Q2 2025 was $0.9 million, resulting in an effective tax rate of 17.2%, which is slightly lower than Q1 2025 but comparable to Q2 2024 | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Income Tax Expense | $0.9 million | $1.4 million | $0.8 million | | Effective Tax Rate | 17.2% | 18.4% | 17.0% | [Earnings Per Share](index=8&type=section&id=3.5%20Earnings%20Per%20Share) Basic and diluted earnings per common share for Q2 2025 were $0.46, representing a decrease from Q1 2025 but an increase compared to Q2 2024 | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :----- | :------ | :------ | :------ | | Basic EPS | $0.46 | $0.64 | $0.41 | | Diluted EPS | $0.46 | $0.63 | $0.41 | Company Information & Non-GAAP Measures [About Investar Holding Corporation](index=8&type=section&id=4.1%20About%20Investar%20Holding%20Corporation) Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, provides full banking services through Investar Bank, National Association, operating 29 branch locations across Louisiana, Texas, and Alabama with 337 full-time equivalent employees and total assets of $2.7 billion as of June 30, 2025 - Investar Bank operates **29 branch locations** serving Louisiana, Texas, and Alabama[36](index=36&type=chunk) | Metric | Value (as of June 30, 2025) | | :----- | :-------------------------- | | Full-time Equivalent Employees | 337 | | Total Assets | $2.7 billion | [Non-GAAP Financial Measures Explanation](index=8&type=section&id=4.2%20Non-GAAP%20Financial%20Measures%20Explanation) This section clarifies the use of non-GAAP financial measures such as 'tangible common equity,' 'core earnings,' and 'core efficiency ratio,' which management believes provide useful information for investors to understand financial results and view performance similarly to industry peers, while emphasizing they should not replace GAAP measures - Non-GAAP measures are used to provide information useful to investors in understanding Investar's financial results and to allow comparison with the financial services sector[37](index=37&type=chunk) - Examples of non-GAAP measures include tangible common equity, core earnings, core efficiency ratio, and adjusted net interest margin[37](index=37&type=chunk) - Investors are encouraged to review consolidated financial statements in their entirety and not solely rely on non-GAAP measures, as they are not standardized and may not be comparable across companies[37](index=37&type=chunk) Forward-Looking Statements & Legal Disclosures [General Forward-Looking and Cautionary Statements](index=10&type=section&id=5.1%20General%20Forward-Looking%20and%20Cautionary%20Statements) This section outlines various risks and uncertainties that could cause actual results to differ materially from forward-looking statements, including general economic conditions, interest rate changes, execution of strategic plans, liquidity risks, credit quality, and regulatory compliance - Forward-looking statements are based on current plans, estimates, and expectations and are subject to various risks and uncertainties[39](index=39&type=chunk) - Key risk factors include business and economic conditions, changes in inflation and interest rates, ability to execute growth strategies, liquidity reduction, changes in loan/investment portfolios, and dependence on management team[39](index=39&type=chunk) - Other risks include increasing costs of regulatory compliance, geopolitical tensions, public health challenges, cyberattacks, and natural disasters[40](index=40&type=chunk)[42](index=42&type=chunk) [Forward-Looking and Cautionary Statements Relating to the Pending Wichita Falls Transaction](index=12&type=section&id=5.2%20Forward-Looking%20and%20Cautionary%20Statements%20Relating%20to%20the%20Pending%20Wichita%20Falls%20Transaction) Specific forward-looking statements regarding the Wichita Falls acquisition include potential benefits, future financial results, and timing, with associated risks including obtaining shareholder and regulatory approvals, integration challenges, realization of synergies, maintaining customer/employee relationships, and diversion of management time - Forward-looking statements for the Wichita Falls transaction cover potential benefits, future financial/operating results, and expected completion timing[41](index=41&type=chunk) - Risks include the ability to obtain requisite shareholder and governmental/regulatory approvals, potential delays or conditions, integration challenges, and the possibility that cost savings or synergies may not be fully realized[41](index=41&type=chunk) [Additional Information about the Proposed Merger and Where to Find It](index=13&type=section&id=5.3%20Additional%20Information%20about%20the%20Proposed%20Merger%20and%20Where%20to%20Find%20It) Investar will file a registration statement on Form S-4, including a joint proxy statement/prospectus, with the SEC regarding the proposed merger, and investors are urged to review these documents for important information, available free of charge on the SEC's website and Investar's investor relations section - Investar intends to file a **Form S-4**, including a joint proxy statement/prospectus, with the SEC for the proposed merger[44](index=44&type=chunk) - Investors can obtain free copies of these documents from the SEC website (http://www.sec.gov) or Investar's website (www.investarbank.com)[44](index=44&type=chunk) [Participants in the Solicitation](index=13&type=section&id=5.4%20Participants%20in%20the%20Solicitation) Investar and Wichita Falls, along with their respective directors and officers, may be considered participants in the proxy solicitation for the proposed merger, with information regarding their interests and security ownership available in SEC filings - Investar and Wichita Falls directors and officers may be deemed participants in the proxy solicitation for the merger[45](index=45&type=chunk) - Information on their ownership and interests is available in Investar's SEC filings (e.g., Form 10-K) and the merger proxy statement/prospectus[45](index=45&type=chunk) [No Offer or Solicitation](index=13&type=section&id=5.5%20No%20Offer%20or%20Solicitation) This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities of Investar, and the Series A Non-Cumulative Perpetual Convertible Preferred Stock and common stock issuable upon conversion have not been registered under the Securities Act of 1933 - The press release is not an offer to sell or a solicitation to buy Investar securities[46](index=46&type=chunk) - The Series A Preferred Stock and common stock issuable upon conversion are not registered under the Securities Act of 1933 and require registration or an exemption for offer/sale in the U.S.[46](index=46&type=chunk) Detailed Financial Data [Summary Financial Information](index=14&type=section&id=6.1%20Summary%20Financial%20Information) This section provides a consolidated summary of Investar's financial performance, including earnings data, average balance sheet figures, per share data, performance ratios, asset quality ratios, and capital ratios for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024 Key Earnings Data (QoQ & YoY Change) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | Linked Quarter Change (%) | Year/Year Change (%) | | :----------------------- | :-------- | :-------- | :-------- | :---------------------- | :------------------- | | Total interest income | $35,359 | $34,434 | $35,790 | 2.7% | (1.2)% | | Total interest expense | $15,715 | $16,089 | $18,592 | (2.3)% | (15.5)% | | Net interest income | $19,644 | $18,345 | $17,198 | 7.1% | 14.2% | | Provision for credit losses | $141 | $(3,596) | $(415) | 103.9% | 134.0% | | Total noninterest income | $2,626 | $2,011 | $2,750 | 30.6% | (4.5)% | | Total noninterest expense | $16,700 | $16,238 | $15,477 | 2.8% | 7.9% | | Net income | $4,494 | $6,293 | $4,057 | (28.6)% | 10.8% | Key Per Share Data (QoQ & YoY Change) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | Linked Quarter Change (%) | Year/Year Change (%) | | :-------------------------------- | :-------- | :-------- | :-------- | :---------------------- | :------------------- | | Basic earnings per common share | $0.46 | $0.64 | $0.41 | (28.1)% | 12.2% | | Diluted earnings per common share | $0.46 | $0.63 | $0.41 | (27.0)% | 12.2% | | Book value per common share | $26.01 | $25.63 | $23.42 | 1.5% | 11.1% | | Tangible book value per common share | $21.80 | $21.40 | $19.15 | 1.9% | 13.8% | Key Performance Ratios (QoQ & YoY Change) | Metric | 6/30/2025 | 3/31/2025 | 6/30/2024 | Linked Quarter Change (%) | Year/Year Change (%) | | :-------------------------- | :-------- | :-------- | :-------- | :---------------------- | :------------------- | | Return on average assets | 0.66% | 0.94% | 0.59% | (29.8)% | 11.9% | | Net interest margin | 3.03% | 2.87% | 2.62% | 5.6% | 15.6% | | Efficiency ratio | 74.99% | 79.77% | 77.59% | (6.0)% | (3.3)% | | Nonperforming loans to total loans | 0.36% | 0.27% | 0.23% | 33.3% | 56.5% | | Common equity tier 1 capital (Investar Holding Corp.) | 11.28% | 11.16% | 10.02% | 1.1% | 12.6% | [Consolidated Balance Sheets](index=16&type=section&id=6.2%20Consolidated%20Balance%20Sheets) The consolidated balance sheet provides a detailed breakdown of assets, liabilities, and stockholders' equity as of June 30, 2025, March 31, 2025, and June 30, 2024, highlighting an increase in cash and cash equivalents QoQ, stable net loans, and an increase in total stockholders' equity Consolidated Balance Sheet Highlights (Amounts in thousands) | Item | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :------------ | | Cash and cash equivalents | $55,224 | $43,522 | $69,672 | | Available for sale securities | $355,708 | $345,728 | $336,616 | | Loans, net | $2,079,735 | $2,080,196 | $2,138,139 | | Total assets | $2,748,065 | $2,729,902 | $2,787,578 | | Total deposits | $2,338,185 | $2,347,357 | $2,210,202 | | Advances from Federal Home Loan Bank | $70,000 | $60,000 | $23,500 | | Borrowings under Bank Term Funding Program | $0 | $0 | $229,000 | | Total liabilities | $2,492,136 | $2,478,165 | $2,557,382 | | Total stockholders' equity | $255,929 | $251,737 | $230,196 | [Consolidated Statements of Income](index=17&type=section&id=6.3%20Consolidated%20Statements%20of%20Income) This table presents the consolidated statements of income, detailing interest income, interest expense, net interest income, provision for credit losses, noninterest income, noninterest expense, and net income for the three months ended June 30, 2025, March 31, 2025, and June 30, 2024 Consolidated Statements of Income (Amounts in thousands) | Item | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :---------------------------------- | :------------ | :------------- | :------------ | | Interest and fees on loans | $31,140 | $30,552 | $32,161 | | Total interest income | $35,359 | $34,434 | $35,790 | | Interest on deposits | $14,456 | $14,640 | $14,865 | | Total interest expense | $15,715 | $16,089 | $18,592 | | Net interest income | $19,644 | $18,345 | $17,198 | | Provision for credit losses | $141 | $(3,596) | $(415) | | Total noninterest income | $2,626 | $2,011 | $2,750 | | Total noninterest expense | $16,700 | $16,238 | $15,477 | | Income before income tax expense | $5,429 | $7,714 | $4,886 | | Income tax expense | $935 | $1,421 | $829 | | Net income | $4,494 | $6,293 | $4,057 | | Diluted earnings per share | $0.46 | $0.63 | $0.41 | | Cash dividends declared per common share | $0.11 | $0.105 | $0.10 | [Consolidated Average Balance Sheet, Interest Earned and Yield Analysis](index=18&type=section&id=6.4%20Consolidated%20Average%20Balance%20Sheet,%20Interest%20Earned%20and%20Yield%20Analysis) This table provides a detailed analysis of average balance sheet items, interest earned/expensed, and corresponding yields/rates for interest-earning assets and interest-bearing liabilities, highlighting the components contributing to the net interest margin Average Balance Sheet, Interest Earned and Yield Analysis (Amounts in thousands) | Item | Average Balance (Q2 2025) | Interest Income/Expense (Q2 2025) | Yield/Rate (Q2 2025) | | :---------------------------------- | :------------------------ | :-------------------------------- | :------------------- | | Loans | $2,104,266 | $31,140 | 5.94% | | Total interest earning assets | $2,604,295 | $35,359 | 5.45% | | Interest-bearing demand deposits | $794,603 | $4,396 | 2.22% | | Time deposits | $709,855 | $6,700 | 3.79% | | Total interest bearing deposits | $1,896,474 | $14,456 | 3.06% | | Short-term borrowings | $32,585 | $254 | 3.13% | | Total interest bearing liabilities | $2,014,546 | $15,715 | 3.13% | | Net interest income/net interest margin | - | $19,644 | 3.03% | [Reconciliation of Non-GAAP Financial Measures](index=19&type=section&id=6.5%20Reconciliation%20of%20Non-GAAP%20Financial%20Measures) This section provides detailed reconciliations of GAAP to non-GAAP financial measures, including adjustments for interest recoveries and accretion in yield analysis, and calculations for tangible common equity, tangible assets, core earnings, and core efficiency ratios, clarifying the specific items excluded from GAAP metrics to arrive at core performance indicators Tangible Common Equity and Assets Reconciliation (Amounts in thousands) | Item | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------- | :------------ | :------------- | :------------ | | Total stockholders' equity | $255,929 | $251,737 | $230,196 | | Less: Goodwill | $40,088 | $40,088 | $40,088 | | Less: Core deposit intangible | $1,239 | $1,370 | $1,808 | | Less: Trademark intangible | $100 | $100 | $100 | | **Tangible common equity** | **$214,502** | **$210,179** | **$188,200** | | Total assets | $2,748,065 | $2,729,902 | $2,787,578 | | Less: Goodwill | $40,088 | $40,088 | $40,088 | | Less: Core deposit intangible | $1,239 | $1,370 | $1,808 | | Less: Trademark intangible | $100 | $100 | $100 | | **Tangible assets** | **$2,706,638** | **$2,688,344** | **$2,745,582** | | Tangible equity to tangible assets | 7.93% | 7.82% | 6.85% | | Tangible book value per common share | $21.80 | $21.40 | $19.15 | Core Earnings Reconciliation (Amounts in thousands) | Item | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :---------------------------------- | :-------- | :-------- | :-------- | | Net interest income (GAAP) | $19,644 | $18,345 | $17,198 | | Noninterest income (GAAP) | $2,626 | $2,011 | $2,750 | | Adjustments to noninterest income | $(240) | $73 | $(302) | | **Core noninterest income** | **$2,376** | **$2,084** | **$2,448** | | Total noninterest expense (GAAP) | $16,700 | $16,238 | $15,477 | | Adjustments to noninterest expense | $(504) | $(159) | $287 | | **Core noninterest expense** | **$16,196** | **$16,079** | **$15,764** | | **Core earnings** | **$4,706** | **$6,484** | **$3,567** | | Core diluted earnings per common share | $0.47 | $0.65 | $0.36 | | Core efficiency ratio | 73.55% | 78.71% | 80.24% | - Core earnings for Q1 2025 included a **$3.3 million recovery** from a property insurance settlement related to Hurricane Ida, which favorably impacted pre-tax net income. Excluding this, core diluted EPS for Q1 2025 would be **$0.40**[66](index=66&type=chunk)[67](index=67&type=chunk)

Acquisition and Capital - Investar entered into a definitive agreement to acquire Wichita Falls Bancshares, Inc for approximately $836 million, based on Investar's closing price of $1932 on June 30, 2025[20] - Investar completed a private placement of 32,500 shares of 65% Series A Non-Cumulative Perpetual Convertible Preferred Stock at $1,000 per share, raising $325 million in gross proceeds[20] Balance Sheet and Loan Portfolio - Total assets were $2748065 million[21,97] - Net loans totaled $2106355 million[21,62] - Total deposits reached $2338185 million[21,91] - Variable-rate loans accounted for 34% of total loans as of June 30, 2025[20,63] - The loan portfolio saw an increase in yield to 594% for the second quarter of 2025, compared to 588% in the first quarter of 2025[21,63] Financial Performance - Net interest margin improved by 16 basis points to 303% for the second quarter of 2025, up from 287% in the first quarter of 2025[21] - The efficiency ratio improved to 7499% for the second quarter of 2025, compared to 7977% for the first quarter of 2025[21] - Core efficiency ratio improved to 7355% for the second quarter of 2025, compared to 7871% for the first quarter of 2025[21] - Book value per common share increased by 15% to $2601 at June 30, 2025, compared to $2563 at March 31, 2025[21] - Tangible book value per common share increased by 19% to $2180 at June 30, 2025, compared to $2140 at March 31, 2025[21]

Core Viewpoint - Investar (ISTR) has received a Zacks Rank 2 (Buy) upgrade, indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in stock price movements [4]. Recent Performance and Outlook - For the fiscal year ending December 2025, Investar is expected to earn $1.99 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 21% over the past three months [8]. - The upgrade to Zacks Rank 2 positions Investar in the top 20% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [10]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with a proven track record of generating significant returns, particularly for Zacks Rank 1 stocks [7][9]. - The system maintains a balanced distribution of ratings, ensuring that only the top 20% of stocks receive favorable ratings based on their earnings estimate revisions [9][10].

Company Overview - Investar (ISTR) shares increased by 5.8% to $20.44 in the last trading session, with a higher-than-average trading volume, compared to a 3.5% gain over the past four weeks [1] - Investar is set to acquire Wichita Falls Bancshares for approximately $83.6 million, which includes 3,955,334 shares of Investar and $7.2 million in cash, valuing Wichita Falls at $134.67 per share [2] - This acquisition marks Investar's second in Texas, expanding its presence in North Texas, with the deal expected to close in Q4 2025, pending regulatory and shareholder approvals [2] Financial Performance - Investar is projected to report quarterly earnings of $0.40 per share, reflecting an 11.1% year-over-year increase, with expected revenues of $20.96 million, up 5% from the previous year [3] - The consensus EPS estimate for Investar has remained unchanged over the last 30 days, indicating stability in earnings expectations [4] Industry Context - Investar operates within the Zacks Banks - Southeast industry, where Amerant Bancorp Inc. (AMTB) also operates, having closed 3.7% higher at $18.9, with a 5.7% return over the past month [4] - Amerant Bancorp's consensus EPS estimate is $0.38, representing a 35.7% increase from the previous year, also maintaining a Zacks Rank of 3 (Hold) [5]

Financial Performance - Net interest margin improved to 267% for Q3 2024 compared to 262% for Q2 2024[14,19] - Return on average assets increased to 077% for Q3 2024 compared to 059% for Q2 2024[19] - Core return on average assets increased to 063% for Q3 2024 compared to 052% for Q2 2024[19] - Net income was $5381 thousand for Q3 2024[18,38] Balance Sheet Optimization and Capital Management - Outstanding borrowings under the BTFP decreased by $1200 million to $1090 million at September 30 2024 compared to $2290 million at June 30 2024[14] - Total loans decreased by $109 million or 05% to $216 billion at September 30 2024 compared to $217 billion at June 30 2024[19,64] - The company repurchased 2000 shares during Q3 at an average price of $1850 per share[14] - Total deposits increased $772 million or 35% to $229 billion at September 30 2024 compared to $221 billion at June 30 2024[91] Asset Quality - Nonperforming assets to total assets was 032% at September 30 2024 compared to 030% at June 30 2024[14] - The allowance for credit losses to nonperforming loans was 6820% at September 30 2024 compared to 5764% at June 30 2024[14] - Nonperforming loans improved to 019% of total loans at September 30 2024 compared to 023% at June 30 2024[19]

Financial Performance & Capital Management - Investar Holding Corporation's regulatory common equity tier 1 capital ratio increased to 1085% at December 31, 2024, compared to 951% at December 31, 2023[19] - Book value per common share increased to $2455, or 55%, at December 31, 2024, compared to $2326 at December 31, 2023[19] - Tangible book value per common share increased to $2031, or 73%, at December 31, 2024, compared to $1892 at December 31, 2023[19] - Return on average assets increased to 088% for the fourth quarter of 2024, compared to 077% for the third quarter of 2024[24] - Core return on average assets increased to 093% for the fourth quarter of 2024, compared to 063% for the third quarter of 2024[24] Balance Sheet Optimization & Loan Portfolio - Variable-rate loans as a percentage of total loans was 32% at December 31, 2024[20, 23] - The consumer mortgage portfolio decreased $47 million, or 19%, to $2425 million at December 31, 2024, compared to $2472 million at September 30, 2024[23] - Total loans decreased $308 million, or 14%, to $213 billion at December 31, 2024, compared to $216 billion at September 30, 2024[24, 68] Expense Control & Efficiency - GAAP noninterest expense increased by $04 million, or less than 1%, to $630 million for 2024 compared to $626 million for 2023[19] - Core noninterest expense increased by $10 million, or 17%, to $628 million for 2024 compared to $618 million for 2023[19] - Efficiency ratio improved to 7100% for the fourth quarter of 2024, compared to 7561% for the third quarter of 2024[24]

Company Overview - Investar (ISTR) is headquartered in Baton Rouge and has experienced a price change of -12.3% this year [3] - The company currently pays a dividend of $0.1 per share, resulting in a dividend yield of 2.18%, which is lower than the Banks - Southeast industry's yield of 2.4% and higher than the S&P 500's yield of 1.56% [3] Dividend Performance - Investar's current annualized dividend of $0.42 has increased by 2.4% from the previous year [4] - Over the past five years, Investar has raised its dividend five times, achieving an average annual increase of 12.44% [4] - The company's current payout ratio is 20%, indicating that it pays out 20% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year, Investar anticipates solid earnings growth, with the Zacks Consensus Estimate for 2025 projected at $1.95 per share, reflecting a year-over-year growth rate of 3.17% [5] Investment Considerations - Investar is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7]