Investar (ISTR) - 2025 Q3 - Quarterly Results

Executive Summary & Highlights 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 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][4] - Total loans increased 2.1% (8.4% annualized), primarily variable-rate loans, originated at a blended interest rate of 7.5%[4] - 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] Wichita Falls Bancshares, Inc. Transaction Update 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] - First National Bank, a subsidiary of Wichita Falls, had approximately $1.4 billion in assets at June 30, 2025[5] - The Office of the Comptroller of the Currency approved the merger on October 15, 2025[5] - The transaction is expected to close on or about January 1, 2026, subject to customary closing conditions, including shareholder and Federal Reserve approvals[5] Third Quarter 2025 Key Performance Indicators 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] - 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] - 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] - 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] - Regulatory total capital ratio increased to 14.66% (7.9% QoQ)[7] - 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] Balance Sheet Analysis This section analyzes Investar's balance sheet, focusing on trends in loans, credit quality, deposits, and stockholders' equity during the reporting period 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 $5.3 million (0.2%) compared to September 30, 2024[8] Loan Portfolio Composition (dollars in thousands) | Category | 9/30/2025 | 6/30/2025 | 9/30/2024 | Linked Quarter Change ($) | 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] - 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] - 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] Credit Quality 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] - 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] 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 $85.3 million (3.7%) YoY[16] Deposit Composition (dollars in thousands) | Category | 9/30/2025 | 6/30/2025 | 9/30/2024 | Linked Quarter Change ($) | 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] - 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] Stockholders' Equity 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] - 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][20] Income Statement Analysis 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 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] 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] - 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] Noninterest Income 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] - 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] Noninterest Expense 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] - 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] 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] Earnings Per Common Share 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 This section provides an overview of Investar Holding Corporation, including its operations, geographic presence, and key financial metrics About Investar Holding Corporation 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] - Provides full banking services (excluding trust services) through its wholly-owned subsidiary, Investar Bank, National Association[36] - Operates 29 branch locations serving Louisiana, Texas, and Alabama[36] - At September 30, 2025, the Bank had 326 full-time equivalent employees and total assets of $2.8 billion[36] Forward-Looking Statements & Disclosures 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 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] - Management believes these measures help investors understand factors and trends affecting the business and allow for performance comparison with the financial services sector[37] - 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] Forward-Looking and Cautionary Statements 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][39] - 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] - 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][42] - Investar does not undertake any obligation to publicly update or revise any forward-looking statement[39] Forward-Looking and Cautionary Statements Relating to the Pending Wichita Falls Transaction 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] - 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] Additional Information about the Proposed Merger and Where to Find It 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] - 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] - 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 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] - 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] No Offer or Solicitation 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] Contact Information 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] Financial Statements & Reconciliations This section presents Investar's summary financial information, asset quality, capital ratios, consolidated balance sheets, income statements, and non-GAAP reconciliations Summary Financial Information 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 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 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 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 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 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% |