Investar Holding Corporation Announces 2025 Fourth Quarter Results

Q: What were Investar's (ISTR) Q4 2025 earnings and EPS?

Investar reported Q4 2025 net income of $5.4 million and $0.51 diluted EPS .

Q: How did Investar's net interest margin (NIM) change in Q4 2025?

Net interest margin improved to 3.20% for Q4 2025, a 4 basis point increase sequentially and 55 basis points year-over-year.

Q: What loan and deposit balances did Investar (ISTR) report at December 31, 2025?

Total loans were $2.176 billion (up 1.2% q/q) and total deposits were $2.35 billion (down 0.9% q/q).

Q: What was the value and timing of Investar's Wichita Falls acquisition (ISTR)?

Investar completed the acquisition effective January 1, 2026 with an aggregate transaction value of approximately $112.9 million .

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Rhea-AI Summary

Investar (NASDAQ:ISTR) reported Q4 2025 net income available to common shareholders of $5.4 million or $0.51 diluted EPS, down from $0.61 EPS in Q4 2024. Core EPS was $0.58 for Q4 2025. Net interest margin improved to 3.20% (up 4 bps q/q; +55 bps y/y). Total loans were $2.176 billion (up 1.2% q/q) and total deposits were $2.35 billion (down 0.9% q/q). Nonperforming loans were $9.3 million (0.43% of loans) and the allowance for credit losses was $26.3 million. Investar completed the acquisition of Wichita Falls (effective Jan 1, 2026) for an aggregate transaction value of approximately $112.9 million. The company repurchased shares in Q4 and completed a $32.5 million private placement of Series A preferred stock in July 2025.

Positive

Net interest margin improved to 3.20% (up 4 bps q/q, +55 bps y/y)
Total loans increased to $2.176 billion (+1.2% q/q)
Completed Wichita Falls acquisition for $112.9 million (effective Jan 1, 2026)
Raised $32.5 million from Series A preferred offering to support acquisition
Repurchased 114,249 shares during 2025 (28,470 shares in Q4)

Negative

GAAP diluted EPS declined to $0.51 in Q4 2025 from $0.61 in Q4 2024 (≈16% decrease)
Total deposits fell to $2.35 billion (down 0.9% q/q)
Nonperforming loans rose to $9.3 million (0.43% of loans) q/q increase of $1.6 million
Allowance for credit losses was $26.3 million, modestly below the prior quarter level of $26.5 million

News Market Reaction

-1.06%

1 alert

-1.06% News Effect

On the day this news was published, ISTR declined 1.06%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Net income (Q4 2025): $5.4 million Diluted EPS (Q4 2025): $0.51 Core diluted EPS (Q4 2025): $0.58 +5 more

8 metrics

Net income (Q4 2025) $5.4 million Net income available to common shareholders for quarter ended Dec 31, 2025

Diluted EPS (Q4 2025) $0.51 Per diluted common share for quarter ended Dec 31, 2025

Core diluted EPS (Q4 2025) $0.58 Non-GAAP core EPS for quarter ended Dec 31, 2025

Net interest margin 3.20% Q4 2025 net interest margin, up from 3.16% in Q3 2025

Total loans $2.18 billion Total loans at Dec 31, 2025

Nonperforming loans $9.3 million (0.43% of loans) Nonperforming loans and ratio at Dec 31, 2025

Share repurchases (Q4 2025) 28,470 shares at $23.94 Common shares repurchased during quarter ended Dec 31, 2025

2025 dividends $0.435 per share Total common dividends declared during 2025, 6.1% above prior year

Market Reality Check

Price: $29.54 Vol: Volume 56,834 is 1.13x th...

normal vol

$29.54 Last Close

Volume Volume 56,834 is 1.13x the 20-day average of 50,380, indicating modestly elevated trading interest into the earnings release. normal

Technical Shares at $28.25 are trading above the 200-day moving average of $22.27 and sit 0.14% below the 52-week high of $28.29.

Peers on Argus

ISTR gained 2.68% while close peers were mixed: PVBC +2.66%, LCNB +0.98%, ISBA +...

ISTR gained 2.68% while close peers were mixed: PVBC +2.66%, LCNB +0.98%, ISBA +0.76% versus VABK -0.98% and PWOD -2.76%, suggesting a stock-specific reaction rather than a broad regional-bank move.

Historical Context

5 past events · Latest: Jan 02 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 02	Acquisition completion	Positive	-1.9%	Closed Wichita Falls Bancshares acquisition with cash and stock consideration.
Dec 17	Dividend declaration	Positive	+0.6%	Declared common and preferred cash dividends, including 49th quarterly common payout.
Oct 30	Acquisition approvals	Positive	-1.5%	Shareholders and regulators approved Wichita Falls Bancshares acquisition.
Oct 20	Quarterly results	Positive	+5.1%	Reported Q3 2025 earnings with higher NIM, ROAA, loans, deposits and capital ratio.
Sep 17	Dividend declaration	Positive	+4.4%	Announced 48th consecutive common dividend and preferred dividend payment.

Pattern Detected

Recent positive corporate developments (acquisitions, dividends, strong Q3 results) have produced mixed price reactions, with both aligned gains and occasional selloffs on good news.

Recent Company History

Over the last several months, Investar has focused on growth and capital returns. It completed the Wichita Falls acquisition (news 952268) after securing shareholder and regulatory approvals (news 926846). The company reported stronger Q3 2025 metrics, including improved net interest margin and capital ratios (news 919757). Regular common and preferred dividends have continued (news 949297, 906956). Today’s Q4 2025 results extend this narrative of balance-sheet optimization and regional expansion while maintaining shareholder distributions.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-09-02

The company has an effective shelf registration on Form S-3 dated 2025-09-02 that remains active through 2028-09-02, with no recorded usage to date in the provided context.

Market Pulse Summary

This announcement details Q4 2025 performance, highlighted by a higher net interest margin of 3.20%,...

Analysis

This announcement details Q4 2025 performance, highlighted by a higher net interest margin of 3.20%, total loans of $2.18 billion, and continued expense discipline alongside active capital return via buybacks and dividends. Credit quality showed nonperforming loans of $9.3 million, and allowance coverage remained significant. Recent acquisitions and preferred stock issuance added scale and capital. Investors may watch loan growth, funding costs, credit trends, and integration of the Wichita Falls transaction in coming periods.

Key Terms

non-gaap, net interest margin, basis point, variable-rate loans, +4 more

8 terms

non-gaap financial

"On a non-GAAP basis, core earnings per diluted common share..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

net interest margin financial

"For the fourth quarter, our net interest margin improved to 3.20%..."

Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.

basis point financial

"a four basis point increase compared to the third quarter of 2025..."

A basis point is a unit equal to one one‑hundredth of a percent (0.01%), used to describe very small changes in interest rates, bond yields, fees or other percentage figures. Think of it like a single dollar change on $10,000: tiny by itself but meaningful when applied to large sums or repeated over time, so investors use basis points to track and compare small but financially significant moves precisely.

variable-rate loans financial

"primarily variable-rate loans, at a blended interest rate of 6.9%..."

Loans with interest rates that change over time because they are linked to a benchmark rate (like a central bank or market index), so the borrower's periodic payments can rise or fall. For investors, that means returns and credit risk shift with market interest-rate moves: income from such loans can increase when rates climb but borrowers may struggle with higher payments, while falling rates reduce yield but generally lower default risk.

brokered time deposits financial

"allowing higher cost brokered time deposits to run off and replacing them..."

Brokered time deposits are interest-bearing bank deposits sold through a broker instead of directly by a bank; they lock up your money for a set period and typically pay a known rate, similar to buying a fixed-term savings note through a middleman. Investors care because these products can offer higher rates and easier access to many banks at once, but they bring trade-offs in liquidity, potential resale-price risk if you sell early, and reliance on the broker and bank for safety and insurance limits.

noninterest expense financial

"Additionally, noninterest expenses are closely monitored and remain well-controlled."

Costs a company incurs that are not tied to borrowing or lending, such as employee pay, rent, technology, marketing, and office supplies. Think of a household: noninterest expense is everything you pay for living and running the home except mortgage or loan interest; for investors, it shows how efficiently a company runs its core operations and directly affects profit margins and the cash available for growth or dividends.

nonperforming loans financial

"Nonperforming loans were $9.3 million, or 0.43% of total loans..."

Nonperforming loans are loans on which borrowers have stopped making the scheduled interest or principal payments for an extended period (commonly 90 days or more) or are otherwise in serious danger of default. Think of them as IOUs that aren’t being repaid: they tie up a lender’s money, reduce future interest income, and force the lender to hold extra reserves or take losses. For investors, a rising share of nonperforming loans signals weakening credit quality, higher potential losses, and greater risk to a bank’s profitability and capital.

allowance for credit losses financial

"The allowance for credit losses was $26.3 million, or 284.5%..."

Allowance for credit losses is a reserve set aside by a financial institution to cover potential losses from borrowers who may not repay their loans. It acts like a safety net, helping the institution prepare for loans that might turn sour. For investors, it signals how cautious the institution is about the quality of its loans and potential risks to its financial health.

AI-generated analysis. Not financial advice.

01/22/2026 - 05:20 PM

BATON ROUGE, LA / ACCESS Newswire / January 22, 2026 / Investar Holding Corporation ("Investar") (NASDAQ:ISTR), the holding company for Investar Bank, National Association (the "Bank"), today announced financial results for the quarter ended December 31, 2025. Investar reported net income available to common shareholders of $5.4 million, or $0.51 per diluted common share, for the fourth quarter of 2025, compared to net income available to common shareholders of $5.7 million, or $0.54 per diluted common share, for the quarter ended September 30, 2025, and net income available to common shareholders of $6.1 million, or $0.61 per diluted common share, for the quarter ended December 31, 2024.

On a non-GAAP basis, core earnings per diluted common share for the fourth quarter of 2025 were $0.58 compared to $0.54 for the third quarter of 2025 and $0.65 for the fourth quarter of 2024. Core earnings available to common shareholders exclude certain items including, but not limited to, (gain) loss on call or sale of investment securities, net; loss on sale or disposition of fixed assets, net; loss (gain) on sale of other real estate owned, net; change in the fair value of equity securities; loss on early extinguishment of subordinated debt; acquisition expense; write down of other real estate owned and severance. Investar's fourth quarter of 2024 results include $3.1 million in nontaxable noninterest income from bank owned life insurance ("BOLI") death benefit proceeds, which had a favorable impact on our core metrics for that quarter. Refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics, including the impact of BOLI death benefit proceeds on our core metrics.

Investar's President and Chief Executive Officer John D'Angelo commented:

"Over the past year, Investar has continued to execute on our strategy of consistent, quality earnings through the optimization of our balance sheet. As a result of this strategy, we were able to grow our net interest margin in each successive quarter of 2025 and improve our core metrics. For the fourth quarter, our net interest margin improved to 3.20%, a four basis point increase compared to the third quarter of 2025 and a massive 55 basis point increase from the fourth quarter of 2024.

Total loans increased 1.2% during the fourth quarter of 2025 (4.8% annualized) as we brought on new business, primarily variable-rate loans, at a blended interest rate of 6.9%, which progressed us towards our goal of an interest rate neutral balance sheet. Our decision over the past year to keep duration short on our liabilities provided us with the flexibility to secure lower cost funding that was accretive to our net interest margin primarily by allowing higher cost brokered time deposits to run off and replacing them with lower cost, non-maturing deposits. We have closely managed our interest-earning assets to optimize yields in a declining rate environment.

Additionally, noninterest expenses are closely monitored and remain well-controlled. Excluding the impact of acquisition expenses, annual noninterest expense increased only 2.7% in 2025 compared to 2024.

As always, we remain focused on creating shareholder value and returning capital to shareholders. We repurchased 28,470 shares of our common stock during the fourth quarter of 2025 at an average price of $23.94 per share and 114,249 shares of our common stock during the year at an average price of $19.84 per share. Additionally, during the year, we declared quarterly dividends totaling $0.435 per share, which represented a 6.1% increase from the previous year.

Investar has been selected by American Banker and Best Companies Group as a 2025 Best Bank to Work For and a 2025 Best Place to Work in Louisiana. We are honored to be a recipient of these awards. I want to thank all of our employees for their tremendous efforts during 2025 and their commitment to excellence."

Wichita Falls Bancshares, Inc. Transaction Closing

On July 1, 2025, Investar entered into a definitive agreement to acquire Wichita Falls Bancshares, Inc. ("Wichita Falls"), headquartered in Wichita Falls, Texas, and its wholly-owned subsidiary, First National Bank ("FNB"). Investar completed the acquisition on January 1, 2026. All of the issued and outstanding shares of Wichita Falls common stock were converted into aggregate merger consideration consisting of $7.2 million in cash and 3,955,334 shares of Investar common stock for an aggregate transaction value of approximately $112.9 million. This value is based on Investar's closing stock price on December 31, 2025 of $26.72 per common share.

Mr. D'Angelo commented:

"Investar is excited to expand our footprint into the north Dallas and Wichita Falls markets through the acquisition of First National Bank. This transaction represents the continued execution of our multi-state expansion strategy through the combination of two community banks with a history of service, an alignment of culture and a common commitment to enhancing shareholder value. We are excited about this partnership and look forward to welcoming First National Bank's customers, shareholders and employees to the Investar family.

Fourth Quarter Highlights

Net interest margin improved four basis points to 3.20% for the quarter ended December 31, 2025 compared to 3.16% for the quarter ended September 30, 2025.
The overall cost of funds for the quarter ended December 31, 2025 decreased 13 basis points to 2.98% compared to 3.11% for the quarter ended September 30, 2025. The cost of deposits decreased 13 basis points to 2.91% for the quarter ended December 31, 2025 compared to 3.04% for the quarter ended September 30, 2025.
Book value per common share increased to $27.63 at December 31, 2025, or 2.5% (10.0% annualized), compared to $26.96 at September 30, 2025. Tangible book value per common share increased to $23.42 at December 31, 2025, or 2.9% (11.6% annualized), compared to $22.76 at September 30, 2025.
Noninterest expense decreased $0.2 million to $16.3 million for the quarter ended December 31, 2025 compared to $16.5 million for the quarter ended September 30, 2025. Core noninterest expense decreased $0.3 million to $15.8 million for the quarter ended December 31, 2025 compared to $16.1 million for the quarter ended September 30, 2025.
Total loans increased $25.5 million, or 1.2% (4.8% annualized) to $2.18 billion at December 31, 2025, compared to $2.15 billion at September 30, 2025.
The business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, increased $31.8 million, or 3.1%, to $1.06 billion, at December 31, 2025, compared to $1.02 billion at September 30, 2025.
Variable-rate loans as a percentage of total loans was 38% at December 31, 2025 compared to 36% at September 30, 2025. During the fourth quarter of 2025, we originated and renewed loans, 63% of which were variable-rate loans, at a 6.9% blended interest rate.
Investar repurchased 28,470 shares of its common stock through its stock repurchase program at an average price of $23.94 per share during the quarter ended December 31, 2025, leaving 381,396 shares authorized for repurchase under the program at December 31, 2025.

Loans

Total loans were $2.18 billion at December 31, 2025, an increase of $25.5 million, or 1.2%, compared to September 30, 2025, and an increase of $50.9 million, or 2.4%, compared to December 31, 2024.

The following table sets forth the composition of the total loan portfolio as of the dates indicated (dollars in thousands).

							Linked Quarter Change						Year/Year Change						Percentage of Total Loans
	12/31/2025		9/30/2025		12/31/2024		$			%			$			%			12/31/2025			12/31/2024
Mortgage loans on real estate
Construction and development	$	147,980	$	140,561	$	154,553	$	7,419			5.3	%	$	(6,573	)		(4.3	)%		6.8	%		7.3	%
1-4 Family		376,238		382,445		396,815		(6,207	)		(1.6	)		(20,577	)		(5.2	)		17.3			18.7
Multifamily		130,005		130,232		84,576		(227	)		(0.2	)		45,429			53.7			6.0			4.0
Farmland		4,788		3,996		6,977		792			19.8			(2,189	)		(31.4	)		0.2			0.3
Commercial real estate
Owner-occupied		460,126		462,830		449,259		(2,704	)		(0.6	)		10,867			2.4			21.1			21.1
Nonowner-occupied		452,142		459,711		495,289		(7,569	)		(1.6	)		(43,147	)		(8.7	)		20.8			23.3
Commercial and industrial		595,263		560,763		526,928		34,500			6.2			68,335			13.0			27.4			24.8
Consumer		9,431		9,985		10,687		(554	)		(5.5	)		(1,256	)		(11.8	)		0.4			0.5
Total loans	$	2,175,973	$	2,150,523	$	2,125,084	$	25,450			1.2	%	$	50,889			2.4	%		100	%		100	%

At December 31, 2025, Investar's total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $1.06 billion, an increase of $31.8 million, or 3.1%, compared to the business lending portfolio of $1.02 billion at September 30, 2025, and an increase of $79.2 million, or 8.1%, compared to the business lending portfolio of $976.2 million at December 31, 2024. The increase in the business lending portfolio compared to September 30, 2025 and December 31, 2024 was primarily driven by increased commercial and industrial loan production.

Nonowner-occupied loans totaled $452.1 million at December 31, 2025, a decrease of $7.6 million, or 1.6%, compared to $459.7 million at September 30, 2025, and a decrease of $43.1 million, or 8.7%, compared to $495.3 million at December 31, 2024. The decrease in nonowner-occupied loans compared to September 30, 2025 and December 31, 2024 was primarily due to loan amortization and payoffs that aligned with our continued strategy to optimize and de-risk the mix of the portfolio.

Construction and development loans totaled $148.0 million at December 31, 2025, an increase of $7.4 million, or 5.3%, compared to $140.6 million at September 30, 2025, and a decrease of $6.6 million, or 4.3%, compared to $154.6 million at December 31, 2024. The increase in construction and development loans compared to September 30, 2025 was primarily due to organic growth. The decrease in construction and development loans compared to December 31, 2024 was primarily due to conversions to permanent loans upon completion of construction.

Credit Quality

Nonperforming loans were $9.3 million, or 0.43% of total loans, at December 31, 2025, an increase of $1.6 million compared to $7.7 million, or 0.36% of total loans, at September 30, 2025, and an increase of $0.5 million compared to $8.8 million, or 0.42% of total loans, at December 31, 2024. The increase in nonperforming loans compared to September 30, 2025 was mainly attributable to 1-4 family loan relationships totaling $2.1 million partially offset by paydowns.

The allowance for credit losses was $26.3 million, or 284.5% and 1.21% of nonperforming and total loans, respectively, at December 31, 2025, compared to $26.5 million, or 344.7% and 1.23% of nonperforming and total loans, respectively, at September 30, 2025, and $26.7 million, or 302.8% and 1.26% of nonperforming and total loans, respectively, at December 31, 2024.

Investar recorded a negative provision for credit losses of $0.1 million for the quarter ended December 31, 2025 compared to a provision for credit losses of $0.1 million and a negative provision for credit losses of $0.7 million for the quarters ended September 30, 2025 and December 31, 2024, respectively. The negative provision for credit losses in the quarter ended December 31, 2025 was primarily attributable to changes in the economic forecast and loan mix. The provision for credit losses in the quarter ended September 30, 2025 was primarily due to loan growth partially offset by changes in the economic forecast and loan mix. The negative provision for credit losses for the quarter ended December 31, 2024 was primarily attributable to a decrease in total loans, aging of existing loans and an improvement in the economic forecast.

Deposits

Total deposits at December 31, 2025 were $2.35 billion, a decrease of $22.4 million, or 0.9%, compared to $2.37 billion at September 30, 2025, and an increase of $4.3 million, or 0.2%, compared to $2.35 billion at December 31, 2024.

The following table sets forth the composition of deposits as of the dates indicated (dollars in thousands).

							Linked Quarter Change						Year/Year Change						Percentage of Total Deposits
	12/31/2025		9/30/2025		12/31/2024		$			%			$			%			12/31/2025			12/31/2024
Noninterest-bearing demand deposits	$	445,986	$	446,361	$	432,143	$	(375	)		(0.1	)%	$	13,843			3.2	%		19.0	%		18.4	%
Interest-bearing demand deposits		608,807		633,766		554,777		(24,959	)		(3.9	)		54,030			9.7			25.9			23.7
Money market deposits		255,500		237,339		191,548		18,161			7.7			63,952			33.4			10.9			8.2
Brokered demand deposits		2		-		47,320		2			-			(47,318	)		(100.0	)		-			2.0
Savings deposits		136,124		137,514		134,879		(1,390	)		(1.0	)		1,245			0.9			5.8			5.7
Brokered time deposits		204,069		210,822		245,520		(6,753	)		(3.2	)		(41,451	)		(16.9	)		8.7			10.5
Time deposits		699,761		706,876		739,757		(7,115	)		(1.0	)		(39,996	)		(5.4	)		29.7			31.5
Total deposits	$	2,350,249	$	2,372,678	$	2,345,944	$	(22,429	)		(0.9	)%	$	4,305			0.2	%		100	%		100	%

The decrease in interest-bearing demand deposits at December 31, 2025 compared to September 30, 2025 was primarily due to customers drawing down on their existing deposit accounts. The increase in money market deposits at December 31, 2025 compared to September 30, 2025 was primarily the result of organic growth. Brokered time deposits decreased to $204.1 million at December 31, 2025 from $210.8 million at September 30, 2025. Investar utilizes brokered time deposits, entirely in denominations of less than $250,000, to secure fixed cost funding and reduce short-term borrowings. At December 31, 2025, the balance of brokered time deposits remained below 10% of total assets, and the remaining weighted average duration was approximately five months with a weighted average rate of 4.03%. Investar utilizes brokered demand deposits when pricing is more favorable than other short-term borrowings.

Stockholders' Equity

On July 1, 2025, Investar completed a private placement of 32,500 shares of its newly designated 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock ("Series A Preferred Stock") with selected institutional and other accredited investors at a price of $1,000 per share, for aggregate gross proceeds of $32.5 million. The net proceeds were $30.4 million, after deducting placement agent fees and other offering related expenses. Investar used a portion of the net proceeds from the offering to support the acquisition of Wichita Falls and will use the remainder for general corporate purposes, including organic growth and other potential acquisitions.

Stockholders' equity was $301.1 million at December 31, 2025, an increase of $5.8 million, or 2.0%, compared to September 30, 2025, and an increase of $59.8 million, or 24.8%, compared to December 31, 2024. The increase in stockholders' equity compared to September 30, 2025 was 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. The increase in stockholders' equity compared to December 31, 2024 was primarily attributable to the issuance of the Series A Preferred Stock, net income for the twelve months ended December 31, 2025, 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.

Net Interest Income

Net interest income for the fourth quarter of 2025 totaled $21.6 million, an increase of $0.5 million, or 2.3%, compared to the third quarter of 2025, and an increase of $4.1 million, or 23.7%, compared to the fourth quarter of 2024. Total interest income was $37.1 million, $37.1 million and $35.5 million for the quarters ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively. Total interest expense was $15.5 million, $15.9 million and $18.0 million for the corresponding periods. Included in net interest income for the quarters ended December 31, 2025, September 30, 2025 and December 31, 2024 is $6,000, $6,000, and $11,000, respectively, of interest income accretion from the acquisition of loans. Also included in net interest income for the quarters ended December 31, 2025, September 30, 2025 and December 31, 2024 are interest recoveries of $1,000, $64,000 and $11,000, respectively.

Investar's net interest margin was 3.20% for the quarter ended December 31, 2025, compared to 3.16% for the quarter ended September 30, 2025 and 2.65% for the quarter ended December 31, 2024. The increase in net interest margin for the quarter ended December 31, 2025 compared to the quarter ended September 30, 2025 was driven by a 13 basis point decrease in the overall cost of funds partially offset by a four basis point decrease in the yield on interest-earning assets. The increase in net interest margin for the quarter ended December 31, 2025 compared to the quarter ended December 31, 2024 was driven by a 51 basis point decrease in the overall cost of funds, primarily brokered time deposits, time deposits and short-term borrowings, and an 11 basis point increase in the yield on interest-earning assets.

The yield on interest-earning assets was 5.49% for the quarter ended December 31, 2025, compared to 5.53% for the quarter ended September 30, 2025 and 5.38% for the quarter ended December 31, 2024. The decrease in the yield on interest-earning assets compared to the quarter ended September 30, 2025 was driven by a four basis point decrease in the yield on our loan portfolio. The increase in the yield on interest-earning assets compared to the quarter ended December 31, 2024 was driven by a 12 basis point increase in the yield on our loan portfolio.

Exclusive of the interest income accretion from the acquisition of loans and interest recoveries, discussed above, adjusted net interest margin increased to 3.20% for the quarter ended December 31, 2025, compared to 3.15% for the quarter ended September 30, 2025 and 2.64% for the quarter ended December 31, 2024. The adjusted yield on interest-earning assets was 5.49% for the quarter ended December 31, 2025 compared to 5.52% and 5.37% for the quarters ended September 30, 2025 and December 31, 2024, respectively. Refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics.

The cost of deposits decreased 13 basis points to 2.91% for the quarter ended December 31, 2025 compared to 3.04% for the quarter ended September 30, 2025 and decreased 49 basis points compared to 3.40% for the quarter ended December 31, 2024. The decrease in the cost of deposits compared to the quarter ended September 30, 2025 resulted primarily from both a lower average balance of, and a decrease in rates paid on, brokered time deposits. The decrease in the cost of deposits compared to the quarter ended December 31, 2024 resulted primarily from both a lower average balance of, and a decrease in rates paid on, brokered time deposits and time deposits, partially offset by a higher average balance of interest-bearing demand deposits.

The cost of short-term borrowings increased eight basis points to 3.01% for the quarter ended December 31, 2025 compared to 2.93% for the quarter ended September 30, 2025 and decreased 90 basis points compared to 3.91% for the quarter ended December 31, 2024. The increase in the cost of short-term borrowings compared to the quarter ended September 30, 2025 resulted primarily from increased utilization of short-term Federal Home Loan Bank ("FHLB") advances during the fourth quarter of 2025. Beginning in the second quarter of 2023, the Bank began utilizing the Bank Term Funding Program ("BTFP") to secure fixed rate funding for up to a one-year term and reduce short-term FHLB advances, which are priced daily. The Bank utilized this source of funding due to its lower rate as compared to FHLB advances, the ability to prepay the obligations without penalty, and as a means to lock in funding. During the fourth quarter of 2024, the Bank repaid all of the remaining $109.0 million in borrowings under the BTFP, which had a weighted average rate of 4.76%. The decrease in the cost of short-term borrowings compared to the quarter ended December 31, 2024 resulted primarily from lower average borrowings due primarily to the paydown of borrowings under the BTFP and a lower current rate on short-term FHLB advances compared to borrowings under the BTFP.

The overall cost of funds for the quarter ended December 31, 2025 decreased 13 basis points to 2.98% compared to 3.11% for the quarter ended September 30, 2025 and decreased 51 basis points compared to 3.49% for the quarter ended December 31, 2024. The decrease in the cost of funds for the quarter ended December 31, 2025 compared to the quarter ended September 30, 2025 resulted from a decrease in the cost of deposits, partially offset by both an increase in the average balance of, and an increase in the cost of, short-term borrowings, as discussed above. The decrease in the cost of funds for the quarter ended December 31, 2025 compared to the quarter ended December 31, 2024 resulted primarily from a decrease in the cost of deposits and both a decrease in the average balance of, and a decrease in the cost of, short-term borrowings, partially offset by a higher average balance of deposits, as discussed above.

Noninterest Income

Noninterest income for the fourth quarter of 2025 totaled $1.8 million, a decrease of $1.1 million, or 38.3%, compared to the third quarter of 2025 and a decrease of $3.3 million, or 64.3%, compared to the fourth quarter of 2024.

The decrease in noninterest income compared to the quarter ended September 30, 2025 was driven by a $0.9 million decrease in other operating income, a $0.2 million increase in loss on sale of other real estate owned, and a $0.1 million decrease in the change in fair value of equity securities, partially offset by a $0.1 million increase in income from BOLI. The decrease in other operating income was primarily attributable to a $0.4 million decrease in distributions from other investments and a $0.4 million decrease in the change in net asset value of other investments.

The decrease in noninterest income compared to the quarter ended December 31, 2024 was driven by $3.6 million in income from BOLI recorded in the fourth quarter of 2024 compared to $0.6 million recorded in the fourth quarter of 2025, a $0.6 million decrease in other operating income, and a $0.1 million increase in loss on sale of other real estate owned, partially offset by a $0.4 million increase in gain on call or sale of investment securities. During the fourth quarter of 2024, the Bank received BOLI death benefit proceeds totaling $5.5 million and recorded $3.1 million in income from BOLI. The decrease in other operating income was primarily attributable to a $0.4 million decrease in the change in net asset value of other investments and a $0.2 million decrease in distributions from other investments.

Noninterest Expense

Noninterest expense for the fourth quarter of 2025 totaled $16.3 million, a decrease of $0.2 million, or 1.5%, compared to the third quarter of 2025, and an increase of $0.2 million, or 1.2%, compared to the fourth quarter of 2024.

The decrease in noninterest expense for the quarter ended December 31, 2025 compared to the quarter ended September 30, 2025 was driven by a $0.2 million decrease in salaries and employee benefits and a $0.2 million decrease in other operating expenses, partially offset by a $0.2 million increase in acquisition expense. The decrease in salaries and employee benefits was primarily due to a decrease in incentive-based compensation. The decrease in other operating expenses was primarily due to a $0.1 million decrease in Federal Deposit Insurance Corporation ("FDIC") assessments and a $0.1 million decrease in write down of other real estate owned. The increase in acquisition expense was related to the Wichita Falls transaction.

The increase in noninterest expense for the quarter ended December 31, 2025 compared to the quarter ended December 31, 2024 was driven by a $0.4 million increase in acquisition expense and a $0.3 million increase in salaries and employee benefits, partially offset by a $0.3 million decrease in other operating expenses and a $0.2 million decrease in loss on early extinguishment of subordinated debt. The increase in salaries and employee benefits was primarily due to investment in people with an emphasis on our Texas markets to remix and strengthen our balance sheet. The decrease in other operating expenses was primarily due to a $0.1 million decrease in FDIC assessments, a $0.1 million decrease in charitable contributions, and a $0.1 million decrease in branch services expense. During the fourth quarter of 2024, Investar redeemed $20.0 million in principal amount of our 2029 Notes and recognized a loss on early extinguishment of subordinated debt of $0.2 million primarily consisting of unamortized deferred financing costs.

Taxes

Investar recorded income tax expense of $1.3 million for the quarter ended December 31, 2025, which equates to an effective tax rate of 18.3%, an increase from the effective tax rate of 17.3% for the quarter ended September 30, 2025 and an increase from the effect tax rate of 16.0% for the quarter ended December 31, 2024.

Basic and Diluted Earnings Per Common Share

Investar reported basic and diluted earnings per common share of $0.55 and $0.51, respectively, for the quarter ended December 31, 2025, compared to basic and diluted earnings per common share of $0.57 and $0.54, respectively for the quarter ended September 30, 2025, and basic and diluted earnings per common share of $0.62 and $0.61, respectively, for the quarter ended December 31, 2024.

About Investar Holding Corporation

Investar, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, National Association. The Bank currently operates 36 branch locations serving Louisiana, Texas, and Alabama. At December 31, 2025, the Bank had 323 full-time equivalent employees and total assets of $2.8 billion.

Non-GAAP Financial Measures

This press release 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 earnings before noninterest expense," "core noninterest expense," "core earnings before income tax expense," "core income tax expense," "core earnings," "core earnings available to common shareholders," "core efficiency ratio," "core return on average assets," "core return on average common equity," "core basic earnings per common share" and "core diluted earnings per common share." We also present certain average loan, yield, net interest income and net interest margin data adjusted to show the effects of excluding interest recoveries and interest income accretion from the acquisition of loans. Management believes these non-GAAP financial measures provide information useful to investors in understanding Investar's financial results, and Investar believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting Investar's business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and Investar strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Investar's current views with respect to, among other things, future events and financial performance. Investar generally identifies forward-looking statements by terminology such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "could," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of those words or other comparable words.

Any forward-looking statements contained in this press release are based on the historical performance of Investar and its subsidiaries or on Investar's current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by Investar that the future plans, estimates or expectations by Investar will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to Investar's operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if Investar's underlying assumptions prove to be incorrect, Investar's actual results may vary materially from those indicated in these statements. Investar does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. These factors include, but are not limited to, the following, any one or more of which could materially affect the outcome of future events:

the significant risks and uncertainties for our business, results of operations and financial condition, as well as our regulatory capital and liquidity ratios and other regulatory requirements caused by business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate, including heightened uncertainties resulting from recent changing trade and tariff policies that could have an adverse impact on inflation and economic growth at least in the near term;
changes in inflation, interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;
our ability to successfully execute our strategy focused on consistent, quality earnings through the optimization of our balance sheet, and our ability to successfully execute a long-term growth strategy;
our ability to achieve organic loan and deposit growth, and the composition of that growth;
our ability to identify and enter into agreements to combine with attractive acquisition candidates, finance acquisitions, complete acquisitions after definitive agreements are entered into, and successfully integrate and grow acquired operations;
our potential growth, including our entrance or expansion into new markets, and the need for sufficient capital to support that growth;
a reduction in liquidity, including as a result of a reduction in the amount of deposits we hold or other sources of liquidity, which may be caused by, among other things, disruptions in the banking industry similar to those that occurred in early 2023 that caused bank depositors to move uninsured deposits to other banks or alternative investments outside the banking industry;
inaccuracy of the assumptions and estimates we make in establishing reserves for credit losses and other estimates;
changes in the quality or composition of our loan portfolio, including adverse developments in borrower industries or in the repayment ability of individual borrowers;
changes in the quality and composition of, and changes in unrealized losses in, our investment portfolio, including whether we may have to sell securities before their recovery of amortized cost basis and realize losses;
the extent of continuing client demand for the high level of personalized service that is a key element of our banking approach as well as our ability to execute our strategy generally;
our dependence on our management team, and our ability to attract and retain qualified personnel;
the concentration of our business within our geographic areas of operation in Louisiana, Texas and Alabama;
risks to holders of our common stock relating to our Series A Preferred Stock, including, but not limited to, dividend preferences to holders of the preferred stock, other conditions with respect to the payment of dividends on our common stock, potential dilution upon conversion of the preferred stock, and liquidation preferences to holders of the preferred stock;
increasing costs of complying with new and potential future regulations;
new or increasing geopolitical tensions, including resulting from wars in Ukraine and Israel and surrounding areas;
the emergence or worsening of widespread public health challenges or pandemics;
concentration of credit exposure;
any deterioration in asset quality and higher loan charge-offs, and the time and effort necessary to resolve problem assets;
fluctuations in the price of oil and natural gas;
data processing system failures and errors;
risks associated with our digital transformation process, including increased risks of cyberattacks and other security breaches and challenges associated with addressing the increased prevalence of artificial intelligence;
risks of losses resulting from increased fraud attacks against us and others in the financial services industry;
potential impairment of our goodwill and other intangible assets;
the impact of litigation and other legal proceedings to which we become subject;
competitive pressures in the commercial finance, retail banking, mortgage lending and consumer finance industries, as well as the financial resources of, and products offered by, competitors;
the impact of changes in laws and regulations applicable to us, including banking, securities and tax laws and regulations and accounting standards, as well as changes in the interpretation of such laws and regulations by our regulators;
changes in the scope and costs of FDIC insurance and other coverages;
governmental monetary and fiscal policies; and
hurricanes, tropical storms, tropical depressions, floods, winter storms, droughts and other adverse weather events, all of which have affected Investar's market areas from time to time; other natural disasters; oil spills and other man-made disasters; acts of terrorism; other international or domestic calamities; acts of God; and other matters beyond our control.

These factors should not be construed as exhaustive. Additional information on these and other risk factors can be found in Part I Item 1A. "Risk Factors" and in the "Cautionary Note Regarding Forward-Looking Statements" in Part II Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Investar's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission.

For further information contact:

Investar Holding Corporation
Corey Moore
Executive Vice President and Deputy Chief Financial Officer
(225) 227-2348
Corey.Moore@investarbank.com

INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share and per share data)
(Unaudited)

	As of and for the three months ended
	12/31/2025			9/30/2025			12/31/2024			Linked Quarter			Year/Year
EARNINGS DATA
Total interest income	$	37,128		$	37,095		$	35,505			0.1	%		4.6	%
Total interest expense		15,497			15,942			18,022			(2.8	)		(14.0	)
Net interest income		21,631			21,153			17,483			2.3			23.7
Provision for credit losses		(75	)		139			(701	)		(154.0	)		89.3
Total noninterest income		1,842			2,984			5,163			(38.3	)		(64.3	)
Total noninterest expense		16,277			16,526			16,079			(1.5	)		1.2
Income before income tax expense		7,271			7,472			7,268			(2.7	)		0.0
Income tax expense		1,333			1,293			1,161			3.1			14.8
Net income		5,938			6,179			6,107			(3.9	)		(2.8	)
Preferred stock dividends declared		528			528			-			-			-
Net income available to common shareholders	$	5,410		$	5,651		$	6,107			(4.3	)		(11.4	)

AVERAGE BALANCE SHEET DATA
Total assets	$	2,836,916		$	2,797,338		$	2,763,734			1.4	%		2.6	%
Total interest-earning assets		2,683,658			2,659,306			2,626,533			0.9			2.2
Total loans		2,150,980			2,141,280			2,129,388			0.5			1.0
Total interest-bearing deposits		1,917,020			1,919,377			1,881,297			(0.1	)		1.9
Total interest-bearing liabilities		2,060,430			2,033,350			2,054,561			1.3			0.3
Total deposits		2,370,480			2,370,406			2,315,730			0.0			2.4
Total common stockholders' equity		271,241			260,799			247,230			4.0			9.7

PER COMMON SHARE DATA
Earnings:
Basic earnings per common share	$	0.55		$	0.57		$	0.62			(3.5	)%		(11.3	)%
Diluted earnings per common share		0.51			0.54			0.61			(5.6	)		(16.4	)
Core earnings:⁽¹⁾
Core basic earnings per common share⁽¹⁾		0.63			0.58			0.66			8.6			(4.5	)
Core diluted earnings per common share⁽¹⁾		0.58			0.54			0.65			7.4			(10.8	)
Book value per common share		27.63			26.96			24.55			2.5			12.5
Tangible book value per common share⁽¹⁾		23.42			22.76			20.31			2.9			15.3
Common shares outstanding		9,798,948			9,825,883			9,828,413			(0.3	)		(0.3	)
Weighted average common shares outstanding - basic		9,806,683			9,830,387			9,828,146			(0.2	)		(0.2	)
Weighted average common shares outstanding - diluted		11,554,939			11,527,876			9,993,790			0.2			15.6

PERFORMANCE RATIOS
Return on average assets		0.83	%		0.88	%		0.88	%		(5.7	)%		(5.7	)%
Core return on average assets⁽¹⁾		0.93			0.89			0.93			4.5			-
Return on average common equity		7.91			8.60			9.83			(8.0	)		(19.5	)
Core return on average common equity⁽¹⁾		9.75			8.73			10.40			11.7			(6.3	)
Net interest margin		3.20			3.16			2.65			1.3			20.8
Net interest income to average assets		3.03			3.00			2.52			1.0			20.2
Noninterest expense to average assets		2.28			2.34			2.31			(2.6	)		(1.3	)
Efficiency ratio⁽²⁾		69.34			68.47			71.00			1.3			(2.3	)
Core efficiency ratio⁽¹⁾		66.13			67.66			69.41			(2.3	)		(4.7	)
Dividend payout ratio		20.00			19.30			16.94			3.6			18.1
Net charge-offs (recoveries) to average loans		-			-			0.04			-			(100.0	)

⁽¹⁾ Non-GAAP financial measure. See reconciliation.
⁽²⁾ Efficiency ratio represents noninterest expense divided by the sum of net interest income (before provision for credit losses) and noninterest income.

INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Unaudited)

	As of and for the three months ended
	12/31/2025			9/30/2025			12/31/2024			Linked Quarter			Year/Year
ASSET QUALITY RATIOS
Nonperforming assets to total assets		0.45	%		0.44	%		0.52	%		2.3	%		(13.5	)%
Nonperforming loans to total loans		0.43			0.36			0.42			19.4			2.4
Allowance for credit losses to total loans		1.21			1.23			1.26			(1.6	)		(4.0	)
Allowance for credit losses to nonperforming loans		284.50			344.66			302.77			(17.5	)		(6.0	)

CAPITAL RATIOS
Investar Holding Corporation:
Total common equity to total assets		9.56	%		9.46	%		8.86	%		1.1	%		7.9	%
Tangible common equity to tangible assets⁽¹⁾		8.22			8.10			7.44			1.4			10.4
Tier 1 leverage capital		10.73			10.70			9.27			0.3			15.7
Common equity tier 1 capital⁽²⁾		11.17			11.12			10.84			0.4			3.0
Tier 1 capital⁽²⁾		12.85			12.82			11.25			0.2			14.2
Total capital⁽²⁾		14.66			14.65			13.13			0.1			11.7
Investar Bank:
Tier 1 leverage capital		10.85			10.88			9.70			(0.3	)		11.9
Common equity tier 1 capital⁽²⁾		13.00			13.05			11.77			(0.4	)		10.5
Tier 1 capital⁽²⁾		13.00			13.05			11.77			(0.4	)		10.5
Total capital⁽²⁾		14.11			14.17			12.92			(0.4	)		9.2

⁽¹⁾ Non-GAAP financial measure. See reconciliation.
⁽²⁾ Estimated for December 31, 2025.

INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)

	December 31, 2025			September 30, 2025			December 31, 2024
ASSETS
Cash and due from banks	$	26,606		$	32,564		$	26,623
Interest-bearing balances due from other banks		14,899			2,809			1,299
Cash and cash equivalents		41,505			35,373			27,922

Available for sale securities at fair value (amortized cost of $416,002, $417,729, and $392,564, respectively)		370,614			370,251			331,121
Held to maturity securities at amortized cost (estimated fair value of $50,540, $50,576, and $42,144, respectively)		48,199			47,834			42,687
Loans		2,175,973			2,150,523			2,125,084
Less: allowance for credit losses		(26,349	)		(26,470	)		(26,721	)
Loans, net		2,149,624			2,124,053			2,098,363
Equity securities at fair value		3,354			3,270			2,593
Nonmarketable equity securities		17,021			15,255			16,502
Bank premises and equipment, net of accumulated depreciation of $23,836, $23,297, and $21,853, respectively		39,534			39,732			40,705
Other real estate owned, net		3,374			4,633			5,218
Accrued interest receivable		14,289			14,858			14,423
Deferred tax asset		14,050			14,362			17,120
Goodwill and other intangible assets, net		41,184			41,303			41,696
Bank-owned life insurance		69,188			68,612			59,703
Other assets		21,112			21,092			24,759
Total assets	$	2,833,048		$	2,800,628		$	2,722,812

LIABILITIES
Deposits
Noninterest-bearing	$	445,986		$	446,361		$	432,143
Interest-bearing		1,904,263			1,926,317			1,913,801
Total deposits		2,350,249			2,372,678			2,345,944
Advances from Federal Home Loan Bank		116,000			60,000			67,215
Repurchase agreements		11,183			15,066			8,376
Subordinated debt, net of unamortized issuance costs		16,738			16,728			16,697
Junior subordinated debt		8,830			8,806			8,733
Accrued taxes and other liabilities		28,975			32,055			34,551
Total liabilities		2,531,975			2,505,333			2,481,516

STOCKHOLDERS' EQUITY
Preferred stock, no par value per share; 5,000,000 shares authorized; 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock; 32,500 shares ($1,000 liquidation preference) issued and outstanding at December 31, 2025 and September 30, 2025 and none issued and outstanding at December 31, 2024		30,353			30,353			-
Common stock, $1.00 par value per share; 40,000,000 shares authorized; 9,798,948, 9,825,883, and 9,828,413 shares issued and outstanding, respectively		9,799			9,826			9,828
Surplus		146,133			146,304			146,890
Retained earnings		150,510			146,178			132,935
Accumulated other comprehensive loss		(35,722	)		(37,366	)		(48,357	)
Total stockholders' equity		301,073			295,295			241,296
Total liabilities and stockholders' equity	$	2,833,048		$	2,800,628		$	2,722,812

INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share data)
(Unaudited)

	For the three months ended									For the twelve months ended
	December 31, 2025			September 30, 2025			December 31, 2024			December 31, 2025			December 31, 2024
INTEREST INCOME
Interest and fees on loans	$	32,477		$	32,563		$	31,438		$	126,732		$	128,498
Interest on investment securities
Taxable		3,204			3,096			2,709			11,940			11,047
Tax-exempt		718			689			569			2,743			1,249
Other interest income		729			747			789			2,601			3,071
Total interest income		37,128			37,095			35,505			144,016			143,865

INTEREST EXPENSE
Interest on deposits		14,046			14,726			16,071			57,868			61,510
Interest on borrowings		1,451			1,216			1,951			5,375			12,602
Total interest expense		15,497			15,942			18,022			63,243			74,112
Net interest income		21,631			21,153			17,483			80,773			69,753

Provision for credit losses		(75	)		139			(701	)		(3,391	)		(3,480	)
Net interest income after provision for credit losses		21,706			21,014			18,184			84,164			73,233

NONINTEREST INCOME
Service charges on deposit accounts		841			832			804			3,256			3,241
Gain (loss) on call or sale of investment securities, net		16			2			(371	)		18			(753	)
(Loss) gain on sale or disposition of fixed assets, net		-			(5	)		-			(8	)		427
(Loss) gain on sale of other real estate owned, net		(94	)		94			(25	)		29			683
Interchange fees		389			394			407			1,574			1,615
Income from bank owned life insurance		576			485			3,576			1,985			4,886
Change in the fair value of equity securities		84			200			159			261			413
Income from legal settlement		-			-			-			-			1,122
Other operating income		30			982			613			2,348			2,571
Total noninterest income		1,842			2,984			5,163			9,463			14,205
Income before noninterest expense		23,548			23,998			23,347			93,627			87,438

NONINTEREST EXPENSE
Depreciation and amortization		678			683			736			2,792			3,095
Salaries and employee benefits		10,066			10,302			9,792			40,228			38,615
Occupancy		672			679			647			2,667			2,576
Data processing		814			831			901			3,456			3,611
Marketing		105			101			136			429			370
Professional fees		521			496			434			2,076			1,797
Loss (gain) on early extinguishment of subordinated debt		-			-			210			-			(292	)
Acquisition expense		449			246			-			1,036			-
Other operating expenses		2,972			3,188			3,223			13,057			13,260
Total noninterest expense		16,277			16,526			16,079			65,741			63,032
Income before income tax expense		7,271			7,472			7,268			27,886			24,406
Income tax expense		1,333			1,293			1,161			4,982			4,154
Net income		5,938			6,179			6,107			22,904			20,252
Preferred stock dividends declared		528			528			-			1,056			-
Net income available to common shareholders	$	5,410		$	5,651		$	6,107		$	21,848		$	20,252

EARNINGS PER COMMON SHARE
Basic earnings per common share	$	0.55		$	0.57		$	0.62		$	2.22		$	2.06
Diluted earnings per common share		0.51			0.54			0.61			2.13			2.04
Cash dividends declared per common share		0.11			0.11			0.105			0.435			0.41

INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)

	For the three months ended
	December 31, 2025								September 30, 2025								December 31, 2024
				Interest								Interest								Interest
	Average			Income/					Average			Income/					Average			Income/
	Balance			Expense		Yield/ Rate			Balance			Expense		Yield/ Rate			Balance			Expense		Yield/ Rate
Assets
Interest-earning assets:
Loans	$	2,150,980		$	32,477		5.99	%	$	2,141,280		$	32,563		6.03	%	$	2,129,388		$	31,438		5.87	%
Securities:
Taxable		412,959			3,204		3.08			406,153			3,096		3.02			389,170			2,709		2.77
Tax-exempt		54,667			718		5.21			51,442			689		5.31			44,544			569		5.08
Interest-bearing balances with banks		65,052			729		4.44			60,431			747		4.90			63,431			789		4.95
Total interest-earning assets		2,683,658			37,128		5.49			2,659,306			37,095		5.53			2,626,533			35,505		5.38
Cash and due from banks		28,990								27,102								25,222
Intangible assets		41,246								41,370								41,775
Other assets		109,445								96,704								98,057
Allowance for credit losses		(26,423	)							(27,144	)							(27,853	)
Total assets	$	2,836,916							$	2,797,338							$	2,763,734

Liabilities and stockholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand deposits	$	873,065		$	4,912		2.23	%	$	836,137		$	4,802		2.28	%	$	753,477		$	4,342		2.29	%
Brokered demand deposits		369			3		3.68			109			1		4.59			1,312			15		4.43
Savings deposits		136,712			366		1.06			136,314			380		1.11			130,896			371		1.13
Brokered time deposits		199,823			2,109		4.19			242,224			2,842		4.66			246,104			3,103		5.02
Time deposits		707,051			6,656		3.73			704,593			6,701		3.77			749,508			8,240		4.37
Total interest-bearing deposits		1,917,020			14,046		2.91			1,919,377			14,726		3.04			1,881,297			16,071		3.40
Short-term borrowings		48,941			372		3.01			28,452			210		2.93			68,237			671		3.91
Long-term debt		94,469			1,079		4.53			85,521			1,006		4.66			105,027			1,280		4.85
Total interest-bearing liabilities		2,060,430			15,497		2.98			2,033,350			15,942		3.11			2,054,561			18,022		3.49
Noninterest-bearing deposits		453,460								451,029								434,433
Other liabilities		21,432								21,786								27,510
Stockholders' equity		301,594								291,173								247,230
Total liability and stockholders' equity	$	2,836,916							$	2,797,338							$	2,763,734
Net interest income/net interest margin				$	21,631		3.20	%				$	21,153		3.16	%				$	17,483		2.65	%

INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)

	For the twelve months ended
	December 31, 2025								December 31, 2024
				Interest								Interest
	Average			Income/					Average			Income/
	Balance			Expense		Yield/ Rate			Balance			Expense		Yield/ Rate
Assets
Interest-earning assets:
Loans	$	2,126,514		$	126,732		5.96	%	$	2,163,161		$	128,498		5.94	%
Securities:
Taxable		402,353			11,940		2.97			399,855			11,047		2.76
Tax-exempt		51,648			2,743		5.31			29,930			1,249		4.17
Interest-bearing balances with banks		54,308			2,601		4.79			56,851			3,071		5.40
Total interest-earning assets		2,634,823			144,016		5.47			2,649,797			143,865		5.43
Cash and due from banks		27,109								25,890
Intangible assets		41,434								42,006
Other assets		98,856								95,391
Allowance for credit losses		(26,746	)							(28,933	)
Total assets	$	2,775,476							$	2,784,151

Liabilities and stockholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand deposits	$	819,182		$	18,188		2.22	%	$	692,390		$	14,024		2.03	%
Brokered demand deposits		2,464			109		4.44			455			22		4.76
Savings deposits		135,716			1,447		1.07			130,553			1,418		1.09
Brokered time deposits		237,294			10,983		4.63			249,668			12,878		5.16
Time deposits		710,610			27,141		3.82			745,002			33,168		4.45
Total interest-bearing deposits		1,905,266			57,868		3.04			1,818,068			61,510		3.38
Short-term borrowings		40,118			1,282		3.19			189,912			8,699		4.58
Long-term debt		87,751			4,093		4.66			81,152			3,903		4.81
Total interest-bearing liabilities		2,033,135			63,243		3.11			2,089,132			74,112		3.55
Noninterest-bearing deposits		445,929								430,433
Other liabilities		22,407								28,986
Stockholders' equity		274,005								235,600
Total liability and stockholders' equity	$	2,775,476							$	2,784,151
Net interest income/net interest margin				$	80,773		3.07	%				$	69,753		2.63	%

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
INTEREST EARNED AND YIELD ANALYSIS ADJUSTED FOR INTEREST RECOVERIES AND ACCRETION
(Amounts in thousands)
(Unaudited)

	For the three months ended
	December 31, 2025							September 30, 2025							December 31, 2024
			Interest							Interest							Interest
	Average		Income/					Average		Income/					Average		Income/
	Balance		Expense		Yield/ Rate			Balance		Expense		Yield/ Rate			Balance		Expense		Yield/ Rate
Interest-earning assets:
Loans	$	2,150,980	$	32,477		5.99	%	$	2,141,280	$	32,563		6.03	%	$	2,129,388	$	31,438		5.87	%
Adjustments:
Interest recoveries				1							64							11
Accretion				6							6							11
Adjusted loans		2,150,980		32,470		5.99			2,141,280		32,493		6.02			2,129,388		31,416		5.87
Securities:
Taxable		412,959		3,204		3.08			406,153		3,096		3.02			389,170		2,709		2.77
Tax-exempt		54,667		718		5.21			51,442		689		5.31			44,544		569		5.08
Interest-bearing balances with banks		65,052		729		4.44			60,431		747		4.90			63,431		789		4.95
Adjusted interest-earning assets		2,683,658		37,121		5.49			2,659,306		37,025		5.52			2,626,533		35,483		5.37

Total interest-bearing liabilities		2,060,430		15,497		2.98			2,033,350		15,942		3.11			2,054,561		18,022		3.49

Adjusted net interest income/adjusted net interest margin			$	21,624		3.20	%			$	21,083		3.15	%			$	17,461		2.64	%

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)

	December 31, 2025			September 30, 2025			December 31, 2024
Tangible common equity
Total stockholders' equity	$	301,073		$	295,295		$	241,296
Less: preferred stock		30,353			30,353			-
Total common equity		270,720			264,942			241,296
Adjustments:
Goodwill		40,088			40,088			40,088
Core deposit intangible		996			1,115			1,508
Trademark intangible		100			100			100
Tangible common equity	$	229,536		$	223,639		$	199,600

Tangible assets
Total assets	$	2,833,048		$	2,800,628		$	2,722,812
Adjustments:
Goodwill		40,088			40,088			40,088
Core deposit intangible		996			1,115			1,508
Trademark intangible		100			100			100
Tangible assets	$	2,791,864		$	2,759,325		$	2,681,116

Common shares outstanding		9,798,948			9,825,883			9,828,413
Tangible common equity to tangible assets		8.22	%		8.10	%		7.44	%
Book value per common share	$	27.63		$	26.96		$	24.55
Tangible book value per common share		23.42			22.76			20.31

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)

		For the three months ended
		December 31, 2025			September 30, 2025			December 31, 2024
Net interest income	(a)	$	21,631		$	21,153		$	17,483
Provision for credit losses			(75	)		139			(701	)
Net interest income after provision for credit losses			21,706			21,014			18,184

Noninterest income	(b)		1,842			2,984			5,163
(Gain) loss on call or sale of investment securities, net			(16	)		(2	)		371
Loss on sale or disposition of fixed assets, net			-			5			-
Loss (gain) on sale of other real estate owned, net			94			(94	)		25
Change in the fair value of equity securities			(84	)		(200	)		(159	)
Change in the net asset value of other investments⁽¹⁾			389			11			(25	)
Core noninterest income⁽²⁾	(d)		2,225			2,704			5,375

Core earnings before noninterest expense⁽²⁾			23,931			23,718			23,559

Total noninterest expense	(c)		16,277			16,526			16,079
Loss on early extinguishment of subordinated debt			-			-			(210	)
Acquisition expense			(449	)		(246	)		-
Write down of other real estate owned⁽³⁾			-			(138	)		-
Severance⁽⁴⁾			(52	)		-			(4	)
Core noninterest expense	(f)		15,776			16,142			15,865

Core earnings before income tax expense⁽²⁾			8,155			7,576			7,694
Core income tax expense⁽⁵⁾			1,492			1,311			1,231
Core earnings⁽²⁾			6,663			6,265			6,463
Preferred stock dividends declared			528			528			-
Core earnings available to common shareholders		$	6,135		$	5,737		$	6,463

Core basic earnings per common share⁽²⁾			0.63			0.58			0.66

Diluted earnings per common share (GAAP)		$	0.51		$	0.54		$	0.61
(Gain) loss on call or sale of investment securities, net			-			-			0.03
Loss on sale or disposition of fixed assets, net			-			-			-
Loss (gain) on sale of other real estate owned, net			0.01			(0.01	)		-
Change in the fair value of equity securities			(0.01	)		(0.02	)		(0.01	)
Change in the net asset value of other investments⁽¹⁾			0.03			-			-
Loss on early extinguishment of subordinated debt			-			-			0.02
Acquisition expense			0.03			0.02			-
Write down of other real estate owned⁽³⁾			-			0.01			-
Severance⁽⁴⁾			0.01			-			-
Core diluted earnings per common share⁽²⁾		$	0.58		$	0.54		$	0.65

Efficiency ratio	(c) / (a+b)		69.34	%		68.47	%		71.00	%
Core efficiency ratio⁽²⁾	(f) / (a+d)		66.13			67.66			69.41
Core return on average assets⁽²⁾⁽⁶⁾			0.93			0.89			0.93
Core return on average common equity⁽²⁾⁽⁶⁾			9.75			8.73			10.40
Total average assets		$	2,836,916		$	2,797,338		$	2,763,734
Total average common stockholders' equity			271,241			260,799			247,230

⁽¹⁾Change in the net asset value of other investments represents unrealized gains or losses on Investar's investments in Small Business Investment Companies and other investment funds and is included in other operating income in the accompanying consolidated statements of income.
⁽²⁾Core noninterest income, core earnings before noninterest expense, core earnings before income tax expense and core earnings include $3.1 million in nontaxable noninterest income from BOLI death benefit proceeds recorded during the quarter ended December 31, 2024. Excluding this income, core basic earnings per common share, core diluted earnings per common share, core efficiency ratio, core return on average assets and core return on average equity are $0.39, $0.39, 80.35%, 0.55%, and 6.19%, respectively, for the quarter ended December 31, 2024.
⁽³⁾Reflects an adjustment to noninterest expense for provision for estimated losses on other real estate owned when fair value is determined to be less than carrying values, which is included in other operating expenses in the accompanying consolidated statements of income.
⁽⁴⁾Severance is included in salaries and employee benefits in the accompanying consolidated statements of income.
⁽⁵⁾Core income tax expense is calculated using the effective tax rates of 18.3%, 17.3% and 16.0% for the quarters ended December 31, 2025, September 30, 2025 and December 31, 2024, respectively.
⁽⁶⁾Core earnings used in calculation. No adjustments were made to average assets or average equity.

SOURCE: Investar Holding Corporation

View the original press release on ACCESS Newswire

FAQ

What were Investar's (ISTR) Q4 2025 earnings and EPS?

Investar reported Q4 2025 net income of $5.4 million and $0.51 diluted EPS.

How did Investar's net interest margin (NIM) change in Q4 2025?

Net interest margin improved to 3.20% for Q4 2025, a 4 basis point increase sequentially and 55 basis points year-over-year.

What loan and deposit balances did Investar (ISTR) report at December 31, 2025?

Total loans were $2.176 billion (up 1.2% q/q) and total deposits were $2.35 billion (down 0.9% q/q).

What was the value and timing of Investar's Wichita Falls acquisition (ISTR)?

Investar completed the acquisition effective January 1, 2026 with an aggregate transaction value of approximately $112.9 million.

Did Investar return capital to shareholders in 2025 (ISTR)?

Yes. Investar repurchased shares (114,249 shares in 2025, 28,470 in Q4 at an average $23.94) and declared quarterly dividends totaling $0.435 per share for 2025.

Investar Holding Corporation Announces 2025 Fourth Quarter Results