Investar Holding Corporation Announces 2025 Second Quarter Results
Investar Holding Corporation (NASDAQ:ISTR) reported Q2 2025 net income of $4.5 million ($0.46 per diluted share), compared to $6.3 million in Q1 2025 and $4.1 million in Q2 2024. The company announced a transformative acquisition of Wichita Falls Bancshares for approximately $83.6 million, which will increase total assets to over $4 billion.
Key Q2 2025 metrics include: Net interest margin improved to 3.03% (up 16 basis points), loan portfolio yield increased to 5.94%, and cost of funds decreased to 3.13%. The bank maintained strong credit quality with nonperforming loans at 0.36% of total loans. Total deposits were $2.34 billion, with noninterest-bearing deposits growing by $11.7 million to $448.5 million.
To support the Wichita Falls acquisition, Investar completed a $32.5 million private placement of preferred stock and continued its shareholder-focused initiatives by repurchasing 36,065 shares at an average price of $17.36.
Investar Holding Corporation (NASDAQ:ISTR) ha riportato un utile netto di 4,5 milioni di dollari nel secondo trimestre del 2025 (0,46 dollari per azione diluita), rispetto ai 6,3 milioni del primo trimestre 2025 e ai 4,1 milioni del secondo trimestre 2024. L'azienda ha annunciato un'acquisizione importante di Wichita Falls Bancshares per circa 83,6 milioni di dollari, che porterà il totale degli attivi a oltre 4 miliardi di dollari.
I principali indicatori del secondo trimestre 2025 includono: margine di interesse netto migliorato al 3,03% (in crescita di 16 punti base), rendimento del portafoglio prestiti salito al 5,94% e costo dei fondi ridotto al 3,13%. La banca ha mantenuto una solida qualità del credito con prestiti non performanti pari allo 0,36% del totale prestiti. I depositi totali ammontavano a 2,34 miliardi di dollari, con un aumento di 11,7 milioni di dollari nei depositi senza interessi, che hanno raggiunto 448,5 milioni di dollari.
Per sostenere l'acquisizione di Wichita Falls, Investar ha completato un collocamento privato di azioni privilegiate da 32,5 milioni di dollari e ha proseguito le iniziative a favore degli azionisti riacquistando 36.065 azioni a un prezzo medio di 17,36 dollari.
Investar Holding Corporation (NASDAQ:ISTR) reportó un ingreso neto de 4,5 millones de dólares en el segundo trimestre de 2025 (0,46 dólares por acción diluida), en comparación con 6,3 millones en el primer trimestre de 2025 y 4,1 millones en el segundo trimestre de 2024. La compañía anunció una adquisición transformadora de Wichita Falls Bancshares por aproximadamente 83,6 millones de dólares, lo que aumentará los activos totales a más de 4 mil millones de dólares.
Las métricas clave del segundo trimestre de 2025 incluyen: margen de interés neto mejorado al 3,03% (subió 16 puntos básicos), rendimiento de la cartera de préstamos incrementado al 5,94%, y costo de fondos reducido al 3,13%. El banco mantuvo una fuerte calidad crediticia con préstamos morosos en 0,36% del total de préstamos. Los depósitos totales fueron de 2,34 mil millones de dólares, con depósitos sin intereses creciendo 11,7 millones hasta 448,5 millones.
Para apoyar la adquisición de Wichita Falls, Investar completó una colocación privada de acciones preferentes por 32,5 millones de dólares y continuó sus iniciativas centradas en los accionistas recomprando 36.065 acciones a un precio promedio de 17,36 dólares.
Investar Holding Corporation (NASDAQ:ISTR)은 2025년 2분기 순이익 450만 달러 (희석 주당 0.46달러)를 보고했으며, 이는 2025년 1분기 630만 달러와 2024년 2분기 410만 달러와 비교됩니다. 회사는 약 8,360만 달러 규모의 Wichita Falls Bancshares 인수를 발표했으며, 이를 통해 총 자산이 40억 달러를 초과하게 됩니다.
2025년 2분기 주요 지표는 다음과 같습니다: 순이자마진이 3.03%로 16 베이시스 포인트 상승, 대출 포트폴리오 수익률은 5.94%로 증가, 자금 조달 비용은 3.13%로 감소했습니다. 은행은 총 대출의 0.36%에 해당하는 부실 대출 비율을 유지하며 견고한 신용 품질을 유지했습니다. 총 예금은 23억 4천만 달러였으며, 무이자 예금은 1,170만 달러 증가하여 4억 4,850만 달러에 달했습니다.
Wichita Falls 인수를 지원하기 위해 Investar는 3,250만 달러 규모의 우선주 사모 발행을 완료했으며, 평균 주당 17.36달러에 36,065주를 재매입하는 등 주주 중심의 이니셔티브를 이어갔습니다.
Investar Holding Corporation (NASDAQ:ISTR) a annoncé un bénéfice net de 4,5 millions de dollars au deuxième trimestre 2025 (0,46 dollar par action diluée), comparé à 6,3 millions au premier trimestre 2025 et 4,1 millions au deuxième trimestre 2024. La société a annoncé une acquisition majeure de Wichita Falls Bancshares pour environ 83,6 millions de dollars, ce qui portera l'actif total à plus de 4 milliards de dollars.
Les indicateurs clés du deuxième trimestre 2025 incluent : une marge d'intérêt nette améliorée à 3,03% (en hausse de 16 points de base), un rendement du portefeuille de prêts augmenté à 5,94% et un coût des fonds réduit à 3,13%. La banque a maintenu une solide qualité de crédit avec des prêts non performants représentant 0,36% du total des prêts. Les dépôts totaux s'élevaient à 2,34 milliards de dollars, avec une croissance de 11,7 millions de dollars des dépôts sans intérêts, atteignant 448,5 millions de dollars.
Pour soutenir l'acquisition de Wichita Falls, Investar a réalisé un placement privé d'actions privilégiées de 32,5 millions de dollars et a poursuivi ses initiatives en faveur des actionnaires en rachetant 36 065 actions à un prix moyen de 17,36 dollars.
Investar Holding Corporation (NASDAQ:ISTR) meldete für das zweite Quartal 2025 einen Nettogewinn von 4,5 Millionen US-Dollar (0,46 US-Dollar je verwässerter Aktie), im Vergleich zu 6,3 Millionen im ersten Quartal 2025 und 4,1 Millionen im zweiten Quartal 2024. Das Unternehmen gab die transformative Übernahme von Wichita Falls Bancshares für etwa 83,6 Millionen US-Dollar bekannt, wodurch die Gesamtaktiva auf über 4 Milliarden US-Dollar steigen werden.
Wichtige Kennzahlen für das zweite Quartal 2025 umfassen: Die Nettozinsmarge verbesserte sich auf 3,03% (plus 16 Basispunkte), die Rendite des Kreditportfolios stieg auf 5,94% und die Kosten der Mittel sanken auf 3,13%. Die Bank hielt eine starke Kreditqualität mit notleidenden Krediten von 0,36% der Gesamtkredite aufrecht. Die Gesamteinlagen betrugen 2,34 Milliarden US-Dollar, wobei die nicht verzinslichen Einlagen um 11,7 Millionen auf 448,5 Millionen US-Dollar zunahmen.
Zur Unterstützung der Übernahme von Wichita Falls schloss Investar eine Private Platzierung von Vorzugsaktien im Wert von 32,5 Millionen US-Dollar ab und setzte seine aktionärsorientierten Initiativen fort, indem 36.065 Aktien zu einem Durchschnittspreis von 17,36 US-Dollar zurückgekauft wurden.
- Acquisition of Wichita Falls Bancshares will expand assets to over $4 billion, marking significant growth
- Net interest margin improved 16 basis points to 3.03%
- Business lending portfolio increased by $32.9 million (3.4%) to $993.6 million
- Cost of funds decreased 9 basis points to 3.13%
- Noninterest-bearing deposits grew by $11.7 million (2.7%)
- Strong capital position with CET1 ratio increasing to 11.28%
- Successfully raised $32.5 million through preferred stock private placement
- Net income decreased to $4.5 million from $6.3 million in previous quarter
- Nonperforming loans increased to 0.36% from 0.27% quarter-over-quarter
- Total loans decreased by $60.4 million (2.8%) year-over-year
- Construction and development loans declined 20.3% year-over-year
- Total deposits decreased by $9.2 million (0.4%) from previous quarter
Insights
Investar delivered improved Q2 margins but shows declining profitability compared to Q1, while announcing transformative acquisition that will nearly double its size.
Investar Holding Corporation's Q2 2025 results present a mixed financial picture with some operational improvements but overall declining profitability compared to Q1. The bank reported
The quarter's bright spot was net interest margin expansion to
Credit quality metrics show slight deterioration with nonperforming loans increasing to
The most significant development is Investar's announced acquisition of Wichita Falls Bancshares, representing a transformational transaction that will nearly double the bank's size to over
Management's shareholder-friendly capital allocation continues with a
BATON ROUGE, LA / ACCESS Newswire / July 21, 2025 / Investar Holding Corporation ("Investar") (NASDAQ:ISTR), the holding company for Investar Bank, National Association (the "Bank"), today announced financial results for the quarter ended June 30, 2025. Investar reported net income of
On a non-GAAP basis, core earnings per diluted common share for the second quarter of 2025 were
Investar's President and Chief Executive Officer John D'Angelo commented:
"I am excited about our second quarter results as we continued to execute on our strategy of consistent, quality earnings through the optimization of our balance sheet. As a result of this strategy, our net interest margin improved substantially to
On July 1, 2025, we announced a definitive agreement to acquire Wichita Falls Bancshares, Inc., the holding company for First National Bank, a bank in the north Dallas market that had approximately
As always, we remain focused on shareholder value and returning capital to shareholders. We repurchased 36,065 shares of our common stock during the second quarter well below tangible book value at an average price of
Second Quarter Highlights
Net interest margin improved 16 basis points to
3.03% for the quarter ended June 30, 2025 compared to2.87% for the quarter ended March 31, 2025.The yield on the loan portfolio increased to
5.94% for the quarter ended June 30, 2025 compared to5.88% for the quarter ended March 31, 2025.The overall cost of funds for the quarter ended June 30, 2025 decreased nine basis points to
3.13% compared to3.22% for the quarter ended March 31, 2025. The cost of deposits decreased nine basis points to3.06% for the quarter ended June 30, 2025 compared to3.15% for the quarter ended March 31, 2025.Efficiency ratio improved to
74.99% for the quarter ended June 30, 2025 compared to79.77% for the quarter ended March 31, 2025. Core efficiency ratio improved to73.55% for the quarter ended June 30, 2025 compared to78.71% for the quarter ended March 31, 2025.Credit quality remained solid with nonperforming loans comprising
0.36% of total loans at June 30, 2025 compared to0.27% at March 31, 2025.The business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, increased
$32.9 million , or3.4% , to$993.6 million compared to$960.7 million at March 31, 2025.Variable-rate loans as a percentage of total loans was
34% at June 30, 2025 compared to32% at March 31, 2025. During the second quarter, we originated and renewed loans,73% of which were variable-rate loans, at a7.7% blended interest rate.Book value per common share increased to
$26.01 at June 30, 2025, or1.5% , compared to$25.63 at March 31, 2025. Tangible book value per common share increased to$21.80 at June 30, 2025, or1.9% (7.6% annualized), compared to$21.40 at March 31, 2025.Noninterest-bearing deposits increased by
$11.7 million , or2.7% , to$448.5 million at June 30, 2025, compared to$436.7 million at March 31, 2025.Investar's regulatory common equity tier 1 capital ratio increased to
11.28% , or1.1% , at June 30, 2025 compared to11.16% at March 31, 2025.On July 1, 2025, Investar announced that it had entered into a definitive agreement (the "Agreement") to acquire Wichita Falls Bancshares, Inc. ("Wichita Falls"), headquartered in Wichita Falls, Texas, and its wholly-owned subsidiary, First National Bank. The Agreement provides that upon the closing of the transaction, Wichita Falls shareholders will be entitled to receive an aggregate of 3,955,334 shares of Investar common stock, and cash consideration of
$7.2 million , in exchange for their shares, subject to adjustment under certain circumstances. Based on the closing price of$19.32 for Investar common stock on June 30, 2025, the transaction would result in aggregate consideration of approximately$83.6 million , or$134.67 per share of Wichita Falls common stock. The Agreement has been unanimously approved by the boards of directors of Investar and Wichita Falls, and the closing of the transaction is subject to customary conditions, including shareholder and regulatory approvals. At March 31, 2025, First National Bank had approximately$1.5 billion in assets.In connection with the Wichita Falls transaction, 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 with selected institutional and other accredited investors at a price of$1,000 per share, for aggregate gross proceeds of$32.5 million . Investar intends to use the net proceeds from the offering to support the acquisition of Wichita Falls and for general corporate purposes, including organic growth and other potential acquisitions.Investar repurchased 36,065 shares of its common stock through its stock repurchase program at an average price of
$17.36 during the quarter ended June 30, 2025, leaving 424,588 shares authorized for repurchase under the program at June 30, 2025.
Loans
Total loans were
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 | |||||||||||||||||||||||||||
6/30/2025 | 3/31/2025 | 6/30/2024 | $ | % | $ | % | 6/30/2025 | 6/30/2024 | |||||||||||||||||||||
Mortgage loans on real estate | |||||||||||||||||||||||||||||
Construction and development | $ | 141,654 | $ | 149,275 | $ | 177,840 | $ | (7,621 | ) | (5.1 | )% | $ | (36,186 | ) | (20.3 | )% | 6.7 | % | 8.2 | % | |||||||||
1-4 Family | 387,796 | 394,735 | 414,756 | (6,939 | ) | (1.8 | ) | (26,960 | ) | (6.5 | ) | 18.4 | 19.1 | ||||||||||||||||
Multifamily | 102,569 | 103,248 | 104,269 | (679 | ) | (0.7 | ) | (1,700 | ) | (1.6 | ) | 4.9 | 4.8 | ||||||||||||||||
Farmland | 4,519 | 6,718 | 7,542 | (2,199 | ) | (32.7 | ) | (3,023 | ) | (40.1 | ) | 0.2 | 0.4 | ||||||||||||||||
Commercial real estate | |||||||||||||||||||||||||||||
Owner-occupied | 462,182 | 449,963 | 453,456 | 12,219 | 2.7 | 8,726 | 1.9 | 22.0 | 20.9 | ||||||||||||||||||||
Nonowner-occupied | 466,009 | 481,905 | 489,984 | (15,896 | ) | (3.3 | ) | (23,975 | ) | (4.9 | ) | 22.1 | 22.6 | ||||||||||||||||
Commercial and industrial | 531,460 | 510,765 | 507,822 | 20,695 | 4.1 | 23,638 | 4.7 | 25.2 | 23.5 | ||||||||||||||||||||
Consumer | 10,166 | 10,022 | 11,090 | 144 | 1.4 | (924 | ) | (8.3 | ) | 0.5 | 0.5 | ||||||||||||||||||
Total loans | $ | 2,106,355 | $ | 2,106,631 | $ | 2,166,759 | $ | (276 | ) | (0.0 | )% | $ | (60,404 | ) | (2.8 | )% | 100 | % | 100 | % | |||||||||
At June 30, 2025, the Bank's total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was
Nonowner-occupied loans totaled
Construction and development loans totaled
Credit Quality
Nonperforming loans were
The allowance for credit losses was
Investar recorded a provision for credit losses of
Deposits
Total deposits at June 30, 2025 were
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 | |||||||||||||||||||||||||||
6/30/2025 | 3/31/2025 | 6/30/2024 | $ | % | $ | % | 6/30/2025 | 6/30/2024 | |||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 448,459 | $ | 436,735 | $ | 436,571 | $ | 11,724 | 2.7 | % | $ | 11,888 | 2.7 | % | 19.2 | % | 19.8 | % | |||||||||||
Interest-bearing demand deposits | 576,473 | 569,903 | 467,184 | 6,570 | 1.2 | 109,289 | 23.4 | 24.6 | 21.1 | ||||||||||||||||||||
Money market deposits | 220,961 | 240,300 | 177,191 | (19,339 | ) | (8.0 | ) | 43,770 | 24.7 | 9.5 | 8.0 | ||||||||||||||||||
Savings deposits | 134,729 | 136,098 | 128,583 | (1,369 | ) | (1.0 | ) | 6,146 | 4.8 | 5.8 | 5.8 | ||||||||||||||||||
Brokered time deposits | 256,100 | 244,935 | 249,354 | 11,165 | 4.6 | 6,746 | 2.7 | 10.9 | 11.3 | ||||||||||||||||||||
Time deposits | 701,463 | 719,386 | 751,319 | (17,923 | ) | (2.5 | ) | (49,856 | ) | (6.6 | ) | 30.0 | 34.0 | ||||||||||||||||
Total deposits | $ | 2,338,185 | $ | 2,347,357 | $ | 2,210,202 | $ | (9,172 | ) | (0.4 | )% | $ | 127,983 | 5.8 | % | 100 | % | 100 | % | ||||||||||
The increase in noninterest-bearing demand deposits and interest-bearing demand deposits at June 30, 2025 compared to March 31, 2025 is primarily the result of organic growth. The decrease in money market deposits and savings deposits at June 30, 2025 compared to March 31, 2025 is primarily due to customers drawing down on their existing deposit accounts. Time deposits decreased at June 30, 2025 compared to March 31, 2025 primarily due to maturities of higher cost time deposits as a result of our strategy to keep duration short. Brokered time deposits were
Stockholders' Equity
Stockholders' equity was
Net Interest Income
Net interest income for the second quarter of 2025 totaled
Investar's net interest margin was
The yield on interest-earning assets was
Exclusive of the interest income accretion from the acquisition of loans and interest recoveries, adjusted net interest margin was
The cost of deposits decreased nine basis points to
The cost of short-term borrowings decreased 43 basis points to
The overall cost of funds for the quarter ended June 30, 2025 decreased nine basis points to
Noninterest Income
Noninterest income for the second quarter of 2025 totaled
The increase in noninterest income compared to the quarter ended March 31, 2025 is primarily driven by a
The decrease in noninterest income compared to the quarter ended June 30, 2024 is primarily attributable to a
Noninterest Expense
Noninterest expense for the second quarter of 2025 totaled
The increase in noninterest expense for the quarter ended June 30, 2025 compared to the quarter ended March 31, 2025 was primarily driven by a
The increase in noninterest expense for the quarter ended June 30, 2025 compared to the quarter ended June 30, 2024 was primarily driven by a
Taxes
Investar recorded income tax expense of
Basic and Diluted Earnings Per Common Share
Investar reported basic and diluted earnings per common share of
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 29 branch locations serving Louisiana, Texas, and Alabama. At June 30, 2025, the Bank had 337 full-time equivalent employees and total assets of
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 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 efficiency ratio," "core return on average assets," "core return on average equity," "core basic earnings per share" and "core diluted earnings per 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, provides a more complete understanding of factors and trends affecting Investar's business and allows 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
General 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, including the potential impacts of its strategies and the anticipated closing and impacts of the Wichita Falls transaction. 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;
changes in the quality or composition of our loan or investment portfolios, 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
6.5% Series A Non-Cumulative Perpetual Convertible 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.
Forward-Looking and Cautionary Statements Relating to the Pending Wichita Falls Transaction
With respect to the pending Wichita Falls transaction, forward-looking statements include, but are not limited to, statements about the potential benefits of the transaction, including future financial and operating results; statements about Investar's plans, objectives, expectations and intentions; statements about the expected timing of completion of the proposed merger; and other statements that are not historical facts. Important factors that could cause actual results to differ materially from those indicated by such forward-looking statements include risks and uncertainties relating to: (i) the ability to obtain the requisite shareholder approvals; (ii) the risk that Investar may be unable to obtain governmental and regulatory approvals required to consummate the proposed merger, or required governmental and regulatory approvals may delay the merger or result in the imposition of conditions that could cause the parties to abandon the merger; (iii) the risk that a condition to closing may not be satisfied; (iv) the timing to consummate the proposed merger; (v) the risk that the businesses will not be integrated successfully; (vi) the risk that the cost savings and any other synergies from the proposed merger may not be fully realized or may take longer to realize than expected; (vii) disruption from the proposed merger making it more difficult to maintain relationships with customers, employees or vendors; and (viii) the diversion of management time on merger-related issues.
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 ("SEC").
Additional Information about the Proposed Merger and Where to Find It
In connection with the proposed merger, Investar intends to file with the SEC a registration statement on Form S-4 (the "Form S-4") that will include a joint proxy statement of Investar and Wichita Falls and a prospectus of Investar with respect to the shares of Investar common stock to be issued in the proposed merger (the "proxy statement/prospectus"). Investar may also file other relevant documents with the SEC regarding the proposed merger. This press release is not a substitute for the Form S-4 or proxy statement/prospectus or any other document that Investar may file with the SEC. The definitive proxy statement/prospectus (if and when available) will be mailed to stockholders of each of Investar and Wichita Falls. Investors and security holders are urged to read the Form S-4, the proxy statement/prospectus and any other relevant documents that may be filed with the SEC, as well as any amendments or supplements to these documents, carefully and in their entirety if and when they become available because they contain or will contain important information about the proposed merger. Investors and security holders will be able to obtain free copies of the Form S-4 and the proxy statement/prospectus (if and when available) and other documents containing important information about Investar, Wichita Falls and the proposed merger, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with, or furnished to, the SEC by Investar will be available free of charge in the "Investors" section of Investar's website at www.investarbank.com. The information included on, or accessible through, Investar's website is not incorporated by reference into this communication.
Participants in the Solicitation
Investar and Wichita Falls and their respective directors and officers may be deemed to be participants in the solicitation of proxies from their respective shareholders in connection with the proposed merger. Information about Investar's directors and executive officers and their ownership of Investar's securities is set forth in Investar's filings with the SEC, including our most recent Annual Report on Form 10-K filed with the SEC. To the extent that holdings of Investar's securities have changed since the amounts printed in our most recent Annual Report on Form 10-K, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Additional information regarding the interests of those persons and other persons who may be deemed participants in the proposed merger may be obtained by reading the proxy statement/prospectus regarding the proposed merger. You may obtain free copies of these documents as described in the preceding paragraph.
No Offer or Solicitation
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. The Series A Non-Cumulative Perpetual Convertible Preferred Stock and the shares of Investar common stock issuable upon the conversion of the Series A Non-Cumulative Perpetual Convertible Preferred Stock have not been registered under the Securities Act of 1933, as amended (the "Securities Act") and may not be offered or sold in the United States absent registration under the Securities Act or an applicable exemption from the registration requirements of the Securities Act.
For further information contact:
Investar Holding Corporation
John Campbell
Executive Vice President and Chief Financial Officer
(225) 227-2215
John.Campbell@investarbank.com
INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)
As of and for the three months ended | ||||||||||||||||||||
6/30/2025 | 3/31/2025 | 6/30/2024 | Linked Quarter | Year/Year | ||||||||||||||||
EARNINGS DATA | ||||||||||||||||||||
Total interest income | $ | 35,359 | $ | 34,434 | $ | 35,790 | 2.7 | % | (1.2 | )% | ||||||||||
Total interest expense | 15,715 | 16,089 | 18,592 | (2.3 | ) | (15.5 | ) | |||||||||||||
Net interest income | 19,644 | 18,345 | 17,198 | 7.1 | 14.2 | |||||||||||||||
Provision for credit losses | 141 | (3,596 | ) | (415 | ) | 103.9 | 134.0 | |||||||||||||
Total noninterest income | 2,626 | 2,011 | 2,750 | 30.6 | (4.5 | ) | ||||||||||||||
Total noninterest expense | 16,700 | 16,238 | 15,477 | 2.8 | 7.9 | |||||||||||||||
Income before income tax expense | 5,429 | 7,714 | 4,886 | (29.6 | ) | 11.1 | ||||||||||||||
Income tax expense | 935 | 1,421 | 829 | (34.2 | ) | 12.8 | ||||||||||||||
Net income | $ | 4,494 | $ | 6,293 | $ | 4,057 | (28.6 | ) | 10.8 | |||||||||||
AVERAGE BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | $ | 2,740,388 | $ | 2,725,800 | $ | 2,773,792 | 0.5 | % | (1.2 | )% | ||||||||||
Total interest-earning assets | 2,604,295 | 2,590,740 | 2,643,232 | 0.5 | (1.5 | ) | ||||||||||||||
Total loans | 2,104,266 | 2,108,904 | 2,168,762 | (0.2 | ) | (3.0 | ) | |||||||||||||
Total interest-bearing deposits | 1,896,474 | 1,887,715 | 1,770,985 | 0.5 | 7.1 | |||||||||||||||
Total interest-bearing liabilities | 2,014,546 | 2,023,808 | 2,090,296 | (0.5 | ) | (3.6 | ) | |||||||||||||
Total deposits | 2,345,309 | 2,317,795 | 2,196,949 | 1.2 | 6.8 | |||||||||||||||
Total stockholders' equity | 254,906 | 247,565 | 227,537 | 3.0 | 12.0 | |||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Basic earnings per common share | $ | 0.46 | $ | 0.64 | $ | 0.41 | (28.1 | )% | 12.2 | % | ||||||||||
Diluted earnings per common share | 0.46 | 0.63 | 0.41 | (27.0 | ) | 12.2 | ||||||||||||||
Core Earnings(1): | ||||||||||||||||||||
Core basic earnings per common share(1) | 0.48 | 0.66 | 0.36 | (27.3 | ) | 33.3 | ||||||||||||||
Core diluted earnings per common share(1) | 0.47 | 0.65 | 0.36 | (27.7 | ) | 30.6 | ||||||||||||||
Book value per common share | 26.01 | 25.63 | 23.42 | 1.5 | 11.1 | |||||||||||||||
Tangible book value per common share(1) | 21.80 | 21.40 | 19.15 | 1.9 | 13.8 | |||||||||||||||
Common shares outstanding | 9,839,848 | 9,821,446 | 9,828,825 | 0.2 | 0.1 | |||||||||||||||
Weighted average common shares outstanding - basic | 9,844,351 | 9,832,625 | 9,827,903 | 0.1 | 0.2 | |||||||||||||||
Weighted average common shares outstanding - diluted | 9,958,394 | 9,960,940 | 9,902,170 | (0.0 | ) | 0.6 | ||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average assets | 0.66 | % | 0.94 | % | 0.59 | % | (29.8 | )% | 11.9 | % | ||||||||||
Core return on average assets(1) | 0.69 | 0.96 | 0.52 | (28.1 | ) | 32.7 | ||||||||||||||
Return on average equity | 7.07 | 10.31 | 7.17 | (31.4 | ) | (1.4 | ) | |||||||||||||
Core return on average equity(1) | 7.40 | 10.62 | 6.31 | (30.3 | ) | 17.3 | ||||||||||||||
Net interest margin | 3.03 | 2.87 | 2.62 | 5.6 | 15.6 | |||||||||||||||
Net interest income to average assets | 2.88 | 2.73 | 2.49 | 5.5 | 15.7 | |||||||||||||||
Noninterest expense to average assets | 2.44 | 2.42 | 2.24 | 0.8 | 8.9 | |||||||||||||||
Efficiency ratio(2) | 74.99 | 79.77 | 77.59 | (6.0 | ) | (3.3 | ) | |||||||||||||
Core efficiency ratio(1) | 73.55 | 78.71 | 80.24 | (6.6 | ) | (8.3 | ) | |||||||||||||
Dividend payout ratio | 23.91 | 16.41 | 24.39 | 45.7 | (2.0 | ) | ||||||||||||||
Net (recoveries) charge-offs to average loans | - | (0.16 | ) | 0.01 | 100.0 | (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 | ||||||||||||||||||||
6/30/2025 | 3/31/2025 | 6/30/2024 | Linked Quarter | Year/Year | ||||||||||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||||
Nonperforming assets to total assets | 0.48 | % | 0.43 | % | 0.30 | % | 11.6 | % | 60.0 | % | ||||||||||
Nonperforming loans to total loans | 0.36 | 0.27 | 0.23 | 33.3 | 56.5 | |||||||||||||||
Allowance for credit losses to total loans | 1.26 | 1.25 | 1.32 | 0.8 | (4.5 | ) | ||||||||||||||
Allowance for credit losses to nonperforming loans | 355.94 | 473.31 | 576.38 | (24.8 | ) | (38.2 | ) | |||||||||||||
CAPITAL RATIOS | ||||||||||||||||||||
Investar Holding Corporation: | ||||||||||||||||||||
Total equity to total assets | 9.31 | % | 9.22 | % | 8.26 | % | 1.0 | % | 12.7 | % | ||||||||||
Tangible equity to tangible assets(1) | 7.93 | 7.82 | 6.85 | 1.4 | 15.6 | |||||||||||||||
Tier 1 leverage capital | 9.64 | 9.56 | 8.81 | 0.8 | 9.4 | |||||||||||||||
Common equity tier 1 capital(2) | 11.28 | 11.16 | 10.02 | 1.1 | 12.6 | |||||||||||||||
Tier 1 capital(2) | 11.70 | 11.57 | 10.42 | 1.1 | 12.3 | |||||||||||||||
Total capital(2) | 13.59 | 13.46 | 13.16 | 1.0 | 3.3 | |||||||||||||||
Investar Bank: | ||||||||||||||||||||
Tier 1 leverage capital | 10.08 | 10.03 | 9.95 | 0.5 | 1.3 | |||||||||||||||
Common equity tier 1 capital(2) | 12.24 | 12.14 | 11.78 | 0.8 | 3.9 | |||||||||||||||
Tier 1 capital(2) | 12.24 | 12.14 | 11.78 | 0.8 | 3.9 | |||||||||||||||
Total capital(2) | 13.40 | 13.29 | 12.98 | 0.8 | 3.2 | |||||||||||||||
(1) Non-GAAP financial measure. See reconciliation. |
(2) Estimated for June 30, 2025. |
INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)
June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 28,311 | $ | 26,279 | $ | 27,130 | ||||||
Interest-bearing balances due from other banks | 26,913 | 17,243 | 42,542 | |||||||||
Cash and cash equivalents | 55,224 | 43,522 | 69,672 | |||||||||
Available for sale securities at fair value (amortized cost of | 355,708 | 345,728 | 336,616 | |||||||||
Held to maturity securities at amortized cost (fair value of | 41,528 | 42,268 | 18,457 | |||||||||
Loans | 2,106,355 | 2,106,631 | 2,166,759 | |||||||||
Less: allowance for credit losses | (26,620 | ) | (26,435 | ) | (28,620 | ) | ||||||
Loans, net | 2,079,735 | 2,080,196 | 2,138,139 | |||||||||
Equity securities at fair value | 2,570 | 2,517 | 2,260 | |||||||||
Nonmarketable equity securities | 15,082 | 14,297 | 13,901 | |||||||||
Bank premises and equipment, net of accumulated depreciation of | 39,894 | 40,350 | 42,383 | |||||||||
Other real estate owned, net | 5,629 | 6,169 | 3,372 | |||||||||
Accrued interest receivable | 14,028 | 15,264 | 14,186 | |||||||||
Deferred tax asset | 15,328 | 15,646 | 17,595 | |||||||||
Goodwill and other intangible assets, net | 41,427 | 41,558 | 41,996 | |||||||||
Bank owned life insurance | 60,627 | 60,151 | 61,208 | |||||||||
Other assets | 21,285 | 22,236 | 27,793 | |||||||||
Total assets | $ | 2,748,065 | $ | 2,729,902 | $ | 2,787,578 | ||||||
LIABILITIES | ||||||||||||
Deposits | ||||||||||||
Noninterest-bearing | $ | 448,459 | $ | 436,735 | $ | 436,571 | ||||||
Interest-bearing | 1,889,726 | 1,910,622 | 1,773,631 | |||||||||
Total deposits | 2,338,185 | 2,347,357 | 2,210,202 | |||||||||
Advances from Federal Home Loan Bank | 70,000 | 60,000 | 23,500 | |||||||||
Borrowings under Bank Term Funding Program | - | - | 229,000 | |||||||||
Repurchase agreements | 11,023 | 11,302 | 7,432 | |||||||||
Subordinated debt, net of unamortized issuance costs | 16,717 | 16,707 | 36,475 | |||||||||
Junior subordinated debt | 8,782 | 8,758 | 8,683 | |||||||||
Accrued taxes and other liabilities | 47,429 | 34,041 | 42,090 | |||||||||
Total liabilities | 2,492,136 | 2,478,165 | 2,557,382 | |||||||||
STOCKHOLDERS' EQUITY | ||||||||||||
Preferred stock, no par value per share; 5,000,000 shares authorized; none issued or outstanding | - | - | - | |||||||||
Common stock, | 9,840 | 9,821 | 9,829 | |||||||||
Surplus | 146,107 | 146,598 | 145,918 | |||||||||
Retained earnings | 141,608 | 138,197 | 123,510 | |||||||||
Accumulated other comprehensive loss | (41,626 | ) | (42,879 | ) | (49,061 | ) | ||||||
Total stockholders' equity | 255,929 | 251,737 | 230,196 | |||||||||
Total liabilities and stockholders' equity | $ | 2,748,065 | $ | 2,729,902 | $ | 2,787,578 | ||||||
INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except share data)
(Unaudited)
For the three months ended | ||||||||||||
June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||
INTEREST INCOME | ||||||||||||
Interest and fees on loans | $ | 31,140 | $ | 30,552 | $ | 32,161 | ||||||
Interest on investment securities | ||||||||||||
Taxable | 2,961 | 2,679 | 2,766 | |||||||||
Tax-exempt | 665 | 671 | 214 | |||||||||
Other interest income | 593 | 532 | 649 | |||||||||
Total interest income | 35,359 | 34,434 | 35,790 | |||||||||
INTEREST EXPENSE | ||||||||||||
Interest on deposits | 14,456 | 14,640 | 14,865 | |||||||||
Interest on borrowings | 1,259 | 1,449 | 3,727 | |||||||||
Total interest expense | 15,715 | 16,089 | 18,592 | |||||||||
Net interest income | 19,644 | 18,345 | 17,198 | |||||||||
Provision for credit losses | 141 | (3,596 | ) | (415 | ) | |||||||
Net interest income after provision for credit losses | 19,503 | 21,941 | 17,613 | |||||||||
NONINTEREST INCOME | ||||||||||||
Service charges on deposit accounts | 788 | 795 | 799 | |||||||||
Loss on call or sale of investment securities, net | - | - | (383 | ) | ||||||||
Loss on sale or disposition of fixed assets, net | - | (3 | ) | - | ||||||||
Gain on sale of other real estate owned, net | 29 | - | 712 | |||||||||
Interchange fees | 401 | 390 | 410 | |||||||||
Income from bank owned life insurance | 476 | 448 | 463 | |||||||||
Change in the fair value of equity securities | 53 | (76 | ) | - | ||||||||
Other operating income | 879 | 457 | 749 | |||||||||
Total noninterest income | 2,626 | 2,011 | 2,750 | |||||||||
Income before noninterest expense | 22,129 | 23,952 | 20,363 | |||||||||
NONINTEREST EXPENSE | ||||||||||||
Depreciation and amortization | 710 | 721 | 787 | |||||||||
Salaries and employee benefits | 10,257 | 9,603 | 9,593 | |||||||||
Occupancy | 675 | 641 | 696 | |||||||||
Data processing | 914 | 897 | 893 | |||||||||
Marketing | 112 | 111 | 72 | |||||||||
Professional fees | 468 | 591 | 471 | |||||||||
Gain on early extinguishment of subordinated debt | - | - | (287 | ) | ||||||||
Acquisition expenses | 182 | 159 | - | |||||||||
Other operating expenses | 3,382 | 3,515 | 3,252 | |||||||||
Total noninterest expense | 16,700 | 16,238 | 15,477 | |||||||||
Income before income tax expense | 5,429 | 7,714 | 4,886 | |||||||||
Income tax expense | 935 | 1,421 | 829 | |||||||||
Net income | $ | 4,494 | $ | 6,293 | $ | 4,057 | ||||||
EARNINGS PER SHARE | ||||||||||||
Basic earnings per share | $ | 0.46 | $ | 0.64 | $ | 0.41 | ||||||
Diluted earnings per share | 0.46 | 0.63 | 0.41 | |||||||||
Cash dividends declared per common share | 0.11 | 0.105 | 0.10 | |||||||||
INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
For the three months ended | |||||||||||||||||||||||||||||
June 30, 2025 | March 31, 2025 | June 30, 2024 | |||||||||||||||||||||||||||
Average | Interest Income/ | Yield/ Rate | Average | Interest Income/ | Yield/ Rate | Average | Interest Income/ | Yield/ Rate | |||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||
Loans | $ | 2,104,266 | $ | 31,140 | 5.94 | % | $ | 2,108,904 | $ | 30,552 | 5.88 | % | $ | 2,168,762 | $ | 32,161 | 5.96 | % | |||||||||||
Securities: | |||||||||||||||||||||||||||||
Taxable | 402,438 | 2,961 | 2.95 | 387,538 | 2,679 | 2.80 | 403,391 | 2,766 | 2.76 | ||||||||||||||||||||
Tax-exempt | 49,682 | 665 | 5.37 | 50,761 | 671 | 5.36 | 23,558 | 214 | 3.66 | ||||||||||||||||||||
Interest-bearing balances with banks | 47,909 | 593 | 4.97 | 43,537 | 532 | 4.95 | 47,521 | 649 | 5.50 | ||||||||||||||||||||
Total interest-earning assets | 2,604,295 | 35,359 | 5.45 | 2,590,740 | 34,434 | 5.39 | 2,643,232 | 35,790 | 5.45 | ||||||||||||||||||||
Cash and due from banks | 26,185 | 26,126 | 25,974 | ||||||||||||||||||||||||||
Intangible assets | 41,496 | 41,630 | 42,082 | ||||||||||||||||||||||||||
Other assets | 95,142 | 93,989 | 91,439 | ||||||||||||||||||||||||||
Allowance for credit losses | (26,730 | ) | (26,685 | ) | (28,935 | ) | |||||||||||||||||||||||
Total assets | $ | 2,740,388 | $ | 2,725,800 | $ | 2,773,792 | |||||||||||||||||||||||
Liabilities and stockholders' equity | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 794,603 | $ | 4,396 | 2.22 | % | $ | 771,623 | $ | 4,079 | 2.14 | % | $ | 658,594 | $ | 3,083 | 1.88 | % | |||||||||||
Brokered demand deposits | 980 | 11 | 4.50 | 8,512 | 94 | 4.46 | - | - | - | ||||||||||||||||||||
Savings deposits | 135,662 | 350 | 1.04 | 134,142 | 351 | 1.06 | 128,957 | 342 | 1.07 | ||||||||||||||||||||
Brokered time deposits | 255,374 | 2,999 | 4.71 | 252,276 | 3,033 | 4.88 | 241,777 | 3,126 | 5.20 | ||||||||||||||||||||
Time deposits | 709,855 | 6,700 | 3.79 | 721,162 | 7,083 | 3.98 | 741,657 | 8,314 | 4.51 | ||||||||||||||||||||
Total interest-bearing deposits | 1,896,474 | 14,456 | 3.06 | 1,887,715 | 14,640 | 3.15 | 1,770,985 | 14,865 | 3.38 | ||||||||||||||||||||
Short-term borrowings | 32,585 | 254 | 3.13 | 50,641 | 445 | 3.56 | 248,189 | 2,886 | 4.68 | ||||||||||||||||||||
Long-term debt | 85,487 | 1,005 | 4.71 | 85,452 | 1,004 | 4.77 | 71,122 | 841 | 4.76 | ||||||||||||||||||||
Total interest-bearing liabilities | 2,014,546 | 15,715 | 3.13 | 2,023,808 | 16,089 | 3.22 | 2,090,296 | 18,592 | 3.58 | ||||||||||||||||||||
Noninterest-bearing deposits | 448,835 | 430,080 | 425,964 | ||||||||||||||||||||||||||
Other liabilities | 22,101 | 24,347 | 29,995 | ||||||||||||||||||||||||||
Stockholders' equity | 254,906 | 247,565 | 227,537 | ||||||||||||||||||||||||||
Total liability and stockholders' equity | $ | 2,740,388 | $ | 2,725,800 | $ | 2,773,792 | |||||||||||||||||||||||
Net interest income/net interest margin | $ | 19,644 | 3.03 | % | $ | 18,345 | 2.87 | % | $ | 17,198 | 2.62 | % | |||||||||||||||||
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 | |||||||||||||||||||||||||||||
June 30, 2025 | March 31, 2025 | June 30, 2024 | |||||||||||||||||||||||||||
Average | Interest Income/ | Yield/ Rate | Average | Interest Income/ | Yield/ Rate | Average | Interest Income/ | Yield/ Rate | |||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||
Loans | $ | 2,104,266 | $ | 31,140 | 5.94 | % | $ | 2,108,904 | $ | 30,552 | 5.88 | % | $ | 2,168,762 | $ | 32,161 | 5.96 | % | |||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Interest recoveries | 19 | 50 | 44 | ||||||||||||||||||||||||||
Accretion | 6 | 9 | 18 | ||||||||||||||||||||||||||
Adjusted loans | 2,104,266 | 31,115 | 5.93 | 2,108,904 | 30,493 | 5.86 | 2,168,762 | 32,099 | 5.95 | ||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||
Taxable | 402,438 | 2,961 | 2.95 | 387,538 | 2,679 | 2.80 | 403,391 | 2,766 | 2.76 | ||||||||||||||||||||
Tax-exempt | 49,682 | 665 | 5.37 | 50,761 | 671 | 5.36 | 23,558 | 214 | 3.66 | ||||||||||||||||||||
Interest-bearing balances with banks | 47,909 | 593 | 4.97 | 43,537 | 532 | 4.95 | 47,521 | 649 | 5.50 | ||||||||||||||||||||
Adjusted interest-earning assets | 2,604,295 | 35,334 | 5.44 | 2,590,740 | 34,375 | 5.38 | 2,643,232 | 35,728 | 5.44 | ||||||||||||||||||||
Total interest-bearing liabilities | 2,014,546 | 15,715 | 3.13 | 2,023,808 | 16,089 | 3.22 | 2,090,296 | 18,592 | 3.58 | ||||||||||||||||||||
Adjusted net interest income/adjusted net interest margin | $ | 19,619 | 3.02 | % | $ | 18,286 | 2.86 | % | $ | 17,136 | 2.61 | % | |||||||||||||||||
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
June 30, 2025 | March 31, 2025 | June 30, 2024 | ||||||||||
Tangible common equity | ||||||||||||
Total stockholders' equity | $ | 255,929 | $ | 251,737 | $ | 230,196 | ||||||
Adjustments: | ||||||||||||
Goodwill | 40,088 | 40,088 | 40,088 | |||||||||
Core deposit intangible | 1,239 | 1,370 | 1,808 | |||||||||
Trademark intangible | 100 | 100 | 100 | |||||||||
Tangible common equity | $ | 214,502 | $ | 210,179 | $ | 188,200 | ||||||
Tangible assets | ||||||||||||
Total assets | $ | 2,748,065 | $ | 2,729,902 | $ | 2,787,578 | ||||||
Adjustments: | ||||||||||||
Goodwill | 40,088 | 40,088 | 40,088 | |||||||||
Core deposit intangible | 1,239 | 1,370 | 1,808 | |||||||||
Trademark intangible | 100 | 100 | 100 | |||||||||
Tangible assets | $ | 2,706,638 | $ | 2,688,344 | $ | 2,745,582 | ||||||
Common shares outstanding | 9,839,848 | 9,821,446 | 9,828,825 | |||||||||
Tangible equity to tangible assets | 7.93 | % | 7.82 | % | 6.85 | % | ||||||
Book value per common share | $ | 26.01 | $ | 25.63 | $ | 23.42 | ||||||
Tangible book value per common share | 21.80 | 21.40 | 19.15 | |||||||||
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
For the three months ended | |||||||||||||
6/30/2025 | 3/31/2025(1) | 6/30/2024 | |||||||||||
Net interest income | (a) | $ | 19,644 | $ | 18,345 | $ | 17,198 | ||||||
Provision for credit losses(2) | 141 | (3,596 | ) | (415 | ) | ||||||||
Net interest income after provision for credit losses(2) | 19,503 | 21,941 | 17,613 | ||||||||||
Noninterest income | (b) | 2,626 | 2,011 | 2,750 | |||||||||
Loss on call or sale of investment securities, net | - | - | 383 | ||||||||||
Loss on sale or disposition of fixed assets, net | - | 3 | - | ||||||||||
Gain on sale of other real estate owned, net | (29 | ) | - | (712 | ) | ||||||||
Change in the fair value of equity securities | (53 | ) | 76 | - | |||||||||
Income from insurance proceeds(3) | (304 | ) | - | - | |||||||||
Change in the net asset value of other investments(4) | 136 | (6 | ) | 27 | |||||||||
Core noninterest income | (d) | 2,376 | 2,084 | 2,448 | |||||||||
Core earnings before noninterest expense(2) | 21,879 | 24,025 | 20,061 | ||||||||||
Total noninterest expense | (c) | 16,700 | 16,238 | 15,477 | |||||||||
Write down of other real estate owned(5) | (296 | ) | - | - | |||||||||
Gain on early extinguishment of subordinated debt | - | - | 287 | ||||||||||
Severance(6) | (26 | ) | - | - | |||||||||
Acquisition expense(1) | (182 | ) | (159 | ) | - | ||||||||
Core noninterest expense(2) | (f) | 16,196 | 16,079 | 15,764 | |||||||||
Core earnings before income tax expense(2) | 5,683 | 7,946 | 4,297 | ||||||||||
Core income tax expense(7) | 977 | 1,462 | 730 | ||||||||||
Core earnings(2) | $ | 4,706 | $ | 6,484 | $ | 3,567 | |||||||
Core basic earnings per common share(2) | 0.48 | 0.66 | 0.36 | ||||||||||
Diluted earnings per common share (GAAP) | $ | 0.46 | $ | 0.63 | $ | 0.41 | |||||||
Loss on call or sale of investment securities, net | - | - | 0.03 | ||||||||||
Loss on sale or disposition of fixed assets, net | - | - | - | ||||||||||
Gain on sale of other real estate owned, net | - | - | (0.06 | ) | |||||||||
Change in the fair value of equity securities | - | 0.01 | - | ||||||||||
Income from insurance proceeds(3) | (0.03 | ) | - | - | |||||||||
Change in the net asset value of other investments(4) | 0.01 | - | - | ||||||||||
Write down of other real estate owned(5) | 0.02 | - | - | ||||||||||
Gain on early extinguishment of subordinated debt | - | - | (0.02 | ) | |||||||||
Severance(6) | - | - | - | ||||||||||
Acquisition expense(1) | 0.01 | 0.01 | - | ||||||||||
Core diluted earnings per common share(2) | $ | 0.47 | $ | 0.65 | $ | 0.36 | |||||||
Efficiency ratio | (c) / (a+b) | 74.99 | % | 79.77 | % | 77.59 | % | ||||||
Core efficiency ratio(2) | (f) / (a+d) | 73.55 | 78.71 | 80.24 | |||||||||
Core return on average assets(2)(8) | 0.69 | 0.96 | 0.52 | ||||||||||
Core return on average equity(2)(8) | 7.40 | 10.62 | 6.31 | ||||||||||
Total average assets | $ | 2,740,388 | $ | 2,725,800 | $ | 2,773,792 | |||||||
Total average stockholders' equity | 254,906 | 247,565 | 227,537 | ||||||||||
(1) | All core results and core metrics for the quarter ended March 31, 2025 exclude |
(2) | Provision for credit losses, net interest income after provision for credit losses, core earnings before noninterest expense, core noninterest expense, core earnings before income tax expense and core earnings include a |
(3) | Adjustment to noninterest income for insurance proceeds received for damages to a property recorded in other real estate owned, which is included in other operating income in the accompanying consolidated statements of income. |
(4) | Change in net asset value of other investments represents unrealized gains or losses on Investar's investments in Small Business Investment Companies and other investment funds included in other operating income in the accompanying consolidated statements of income. |
(5) | 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. |
(6) | Severance is included in salaries and employee benefits in the accompanying consolidated statements of income. |
(7) | Core income tax expense is calculated using the effective tax rates of |
(8) | Core earnings used in calculation. No adjustments were made to average assets or average equity. |
SOURCE: Investar Holding Corporation
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