Investar Holding Corporation Announces 2026 First Quarter Results
Rhea-AI Summary
Investar (NASDAQ:ISTR) reported strong Q1 2026 results following its January 1 acquisition of Wichita Falls Bancshares. Net income available to common shareholders was $11.5 million, or $0.77 diluted EPS; net interest margin rose to 3.59% (up 39 bps). Loans and deposits each grew roughly 41% and 38% to $3.07B and $3.23B, respectively. The company repurchased 53,420 shares and issued 3,955,272 shares as part of the WFB merger; tangible book value declined slightly to $22.72 per share.
Positive
- Net income rose to $11.5M, or $0.77 diluted EPS
- Net interest margin improved 39 bps to 3.59%
- Total loans +41.0% to $3.07B
- Total deposits +37.6% to $3.23B
- Completed acquisition of WFB ($112.9M transaction value including 3,955,272 shares)
Negative
- Nonperforming loans increased to $20.3M (0.66% of loans)
- Tangible book value per share decreased 3.0% to $22.72
- Issued 3,955,272 shares as merger consideration (potential dilution)
News Market Reaction – ISTR
In the Apr 20 session, ISTR gained 3.80%, reflecting a moderate positive market reaction. Our momentum scanner triggered 8 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 19 | Dividend declaration | Positive | +0.9% | Declared $0.11 common and $16.25 preferred quarterly dividends; 50th dividend. |
| Jan 22 | Earnings release | Negative | -1.1% | Q4 2025 EPS declined vs Q4 2024 despite higher net interest margin. |
| Jan 02 | Acquisition closing | Positive | -1.9% | Closed Wichita Falls Bancshares deal valued at about $112.9M. |
| Dec 17 | Dividend declaration | Positive | +0.6% | Announced 49th quarterly common dividend of $0.11 per share. |
| Oct 30 | Acquisition approvals | Positive | -1.5% | Received shareholder and regulatory approvals for Wichita Falls acquisition. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent dividend and some earnings announcements saw modest positive alignment, while Wichita Falls acquisition headlines previously drew small negative reactions, suggesting market caution around M&A even when strategically important.
Over the past six months, Investar has focused on dividends, earnings and the Wichita Falls Bancshares acquisition. Dividend declarations on Dec 17, 2025 and Mar 19, 2026 produced small positive moves. Acquisition approval and completion updates in Oct 2025 and Jan 2026 were followed by mild declines despite strategic expansion. Q4 2025 results on Jan 22, 2026 showed improving margin but softer EPS versus the prior year. Today’s Q1 2026 report highlights materially higher EPS and net interest margin, showing the first full-quarter impact of the Wichita Falls transaction against this backdrop.
Key Terms
non-gaap financial
net interest margin financial
basis point financial
variable rate loans financial
nonperforming loans financial
allowance for credit losses financial
brokered time deposits financial
convertible preferred stock financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
BATON ROUGE, LA / ACCESS Newswire / April 20, 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 March 31, 2026. Investar reported net income available to common shareholders of
On a non-GAAP basis, core earnings per diluted common share for the first quarter of 2026 were
Investar's President and Chief Executive Officer John D'Angelo commented:
"I am extremely pleased with our first quarter results, which reflect both the significant impact of our transformational acquisition of Wichita Falls Bancshares, Inc. and our simultaneous continued execution of our strategy of consistent, quality earnings through the optimization of our balance sheet. Both of these are due to the hard work of our dedicated employees. Our net interest margin improved substantially to
We were able to grow the yield on interest-earning assets while simultaneously reducing our funding costs. 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 by allowing higher cost brokered time deposits to run off and replacing them with lower cost, non-maturing deposits. Additionally, variable rate loans comprised
As always, we remain focused on shareholder value and returning capital to shareholders. We repurchased 53,420 shares of our common stock during the first quarter at an average price of
First Quarter Highlights
On January 1, 2026, Investar closed its acquisition of Wichita Falls Bancshares, Inc. ("WFB"), headquartered in Wichita Falls, Texas, and its wholly-owned subsidiary, First National Bank. On the date of the acquisition, WFB had
$1.2 billion in total assets, including$1.0 billion in gross loans, and$1.0 billion in deposits. In the aggregate, WFB's shareholders received merger consideration consisting of$7.2 million in cash and 3,955,272 shares of Investar's common stock for an aggregate transaction value of$112.9 million .Net interest margin improved 39 basis points to
3.59% for the quarter ended March 31, 2026 compared to3.20% for the quarter ended December 31, 2025. Exclusive of the interest income accretion from the acquisition of loans and interest recoveries, adjusted net interest margin improved eight basis points to3.28% for the quarter ended March 31, 2026 compared to3.20% for the quarter ended December 31, 2025.Diluted earnings per common share were
$0.77 for the quarter ended March 31, 2026 compared to$0.51 for the quarter ended December 31, 2025. Core diluted earnings per common share were$0.87 for the quarter ended March 31, 2026 compared to$0.58 for the quarter ended December 31, 2025.Return on average assets increased to
1.25% for the quarter ended March 31, 2026 compared to0.83% for the quarter ended December 31, 2025. Core return on average assets improved to1.41% for the quarter ended March 31, 2026 compared to0.93% for the quarter ended December 31, 2025.Efficiency ratio improved to
64.08% for the quarter ended March 31, 2026 compared to69.34% for the quarter ended December 31, 2025. Core efficiency ratio improved to58.46% for the quarter ended March 31, 2026 compared to66.13% for the quarter ended December 31, 2025.The yield on the loan portfolio increased to
6.28% for the quarter ended March 31, 2026 compared to5.99% for the quarter ended December 31, 2025.The overall cost of funds for the quarter ended March 31, 2026 decreased four basis points to
2.94% compared to2.98% for the quarter ended December 31, 2025. The cost of deposits decreased six basis points to2.85% for the quarter ended March 31, 2026 compared to2.91% for the quarter ended December 31, 2025.Total loans increased by
$891.8 million , or41.0% , to$3.07 billion at March 31, 2026 compared to$2.18 billion at December 31, 2025.Variable-rate loans as a percentage of total loans was
49% at March 31, 2026 compared to38% at December 31, 2025.Book value per common share increased to
$27.97 at March 31, 2026, or1.2% , compared to$27.63 at December 31, 2025. Tangible book value per common share decreased to$22.72 at March 31, 2026, or3.0% , compared to$23.42 at December 31, 2025, which represents minimal dilution related to our acquisition of WFB.Total deposits increased by
$882.6 million , or37.6% , to$3.23 billion at March 31, 2026 compared to$2.35 billion at December 31, 2025.Investar repurchased 53,420 shares of its common stock through its stock repurchase program at an average price of
$28.63 per share during the quarter ended March 31, 2026, leaving 327,976 shares authorized for repurchase under the program at March 31, 2026.
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 | |||||||||||||||||||||||||||||||
3/31/2026 | 12/31/2025 | 3/31/2025 | $ | % | $ | % | 3/31/2026 | 3/31/2025 | ||||||||||||||||||||||||||||
Mortgage loans on real estate | ||||||||||||||||||||||||||||||||||||
Construction and development | $ | 318,868 | $ | 147,980 | $ | 149,275 | $ | 170,888 | 115.5 | % | $ | 169,593 | 113.6 | % | 10.4 | % | 7.1 | % | ||||||||||||||||||
1-4 Family | 920,480 | 376,238 | 394,735 | 544,242 | 144.7 | 525,745 | 133.2 | 30.0 | 18.7 | |||||||||||||||||||||||||||
Multifamily | 135,081 | 130,005 | 103,248 | 5,076 | 3.9 | 31,833 | 30.8 | 4.4 | 4.9 | |||||||||||||||||||||||||||
Farmland | 7,803 | 4,788 | 6,718 | 3,015 | 63.0 | 1,085 | 16.2 | 0.3 | 0.3 | |||||||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||
Owner-occupied | 505,882 | 460,126 | 449,963 | 45,756 | 9.9 | 55,919 | 12.4 | 16.5 | 21.4 | |||||||||||||||||||||||||||
Nonowner-occupied | 504,784 | 452,142 | 481,905 | 52,642 | 11.6 | 22,879 | 4.7 | 16.4 | 22.9 | |||||||||||||||||||||||||||
Commercial and industrial | 661,803 | 595,263 | 510,765 | 66,540 | 11.2 | 151,038 | 29.6 | 21.6 | 24.2 | |||||||||||||||||||||||||||
Consumer | 13,115 | 9,431 | 10,022 | 3,684 | 39.1 | 3,093 | 30.9 | 0.4 | 0.5 | |||||||||||||||||||||||||||
Total loans | $ | 3,067,816 | $ | 2,175,973 | $ | 2,106,631 | $ | 891,843 | 41.0 | % | $ | 961,185 | 45.6 | % | 100 | % | 100 | % | ||||||||||||||||||
At March 31, 2026, 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 reversal of credit losses of
Deposits
Total deposits at March 31, 2026 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 | |||||||||||||||||||||||||||||||
3/31/2026 | 12/31/2025 | 3/31/2025 | $ | % | $ | % | 3/31/2026 | 3/31/2025 | |||||||||||||||||||||||||
Noninterest-bearing demand deposits | $ | 640,129 | $ | 445,986 | $ | 436,735 | $ | 194,143 | 43.5 | % | $ | 203,394 | 46.6 | % | 19.8 | % | 18.6 | % | |||||||||||||||
Interest-bearing demand deposits | 938,758 | 608,807 | 569,903 | 329,951 | 54.2 | 368,855 | 64.7 | 29.0 | 24.3 | ||||||||||||||||||||||||
Money market deposits | 374,842 | 255,500 | 240,300 | 119,342 | 46.7 | 134,542 | 56.0 | 11.6 | 10.2 | ||||||||||||||||||||||||
Brokered demand deposits | - | 2 | - | (2 | ) | (100.0 | ) | - | - | - | - | ||||||||||||||||||||||
Savings deposits | 164,815 | 136,124 | 136,098 | 28,691 | 21.1 | 28,717 | 21.1 | 5.1 | 5.8 | ||||||||||||||||||||||||
Brokered time deposits | 101,217 | 204,069 | 244,935 | (102,852 | ) | (50.4 | ) | (143,718 | ) | (58.7 | ) | 3.1 | 10.4 | ||||||||||||||||||||
Time deposits | 1,013,052 | 699,761 | 719,386 | 313,291 | 44.8 | 293,666 | 40.8 | 31.4 | 30.7 | ||||||||||||||||||||||||
Total deposits | $ | 3,232,813 | $ | 2,350,249 | $ | 2,347,357 | $ | 882,564 | 37.6 | % | $ | 885,456 | 37.7 | % | 100 | % | 100 | % | |||||||||||||||
The increase in noninterest-bearing demand deposits, interest-bearing demand deposits and money market deposits at March 31, 2026 compared to December 31, 2025 and March 31, 2025 was primarily the result of the acquisition of WFB and organic growth. The increase in time deposits at March 31, 2026 compared to December 31, 2025 and March 31, 2025 was primarily the result of the acquisition of WFB, partially offset by the run-off of higher yielding time deposits. Brokered time deposits were
Stockholders' Equity
On July 1, 2025, Investar completed a private placement of 32,500 shares of its newly designated Series A Non-Cumulative Perpetual Convertible Preferred Stock ("Series A Preferred Stock") with selected institutional and other accredited investors at a price of
Stockholders' equity was
Net Interest Income
Net interest income for the first quarter of 2026 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 six basis points to
The cost of short-term borrowings was flat at
The overall cost of funds for the quarter ended March 31, 2026 decreased four basis points to
Noninterest Income
Noninterest income for the first quarter of 2026 totaled
The increase in noninterest income compared to the quarter ended December 31, 2025 was primarily driven by a
The increase in noninterest income compared to the quarter ended March 31, 2025 was primarily attributable to a
Noninterest Expense
Noninterest expense for the first quarter of 2026 totaled
The increase in noninterest expense for the quarter ended March 31, 2026 compared to the quarter ended December 31, 2025 was primarily driven by a
The increase in noninterest expense for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 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 36 branch locations serving Louisiana, Texas, and Alabama. At March 31, 2026, the Bank had 431 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 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, 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
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 WFB 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;
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 conflicts and wars in the Middle East, Ukraine and Israel and surrounding areas or new 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 Investar's Annual Report on Form 10-K for the year ended December 31, 2025 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 data)
(Unaudited)
As of and for the three months ended | ||||||||||||||||||||
3/31/2026 | 12/31/2025 | 3/31/2025 | Linked Quarter | Year/Year | ||||||||||||||||
EARNINGS DATA | ||||||||||||||||||||
Total interest income | $ | 53,204 | $ | 37,128 | $ | 34,434 | 43.3 | % | 54.5 | % | ||||||||||
Total interest expense | 20,544 | 15,497 | 16,089 | 32.6 | 27.7 | |||||||||||||||
Net interest income | 32,660 | 21,631 | 18,345 | 51.0 | 78.0 | |||||||||||||||
Reversal of credit losses | (2,108 | ) | (75 | ) | (3,596 | ) | (2,710.7 | ) | 41.4 | |||||||||||
Total noninterest income | 2,980 | 1,842 | 2,011 | 61.8 | 48.2 | |||||||||||||||
Total noninterest expense | 22,839 | 16,277 | 16,238 | 40.3 | 40.7 | |||||||||||||||
Income before income tax expense | 14,909 | 7,271 | 7,714 | 105.0 | 93.3 | |||||||||||||||
Income tax expense | 2,885 | 1,333 | 1,421 | 116.4 | 103.0 | |||||||||||||||
Net income | 12,024 | 5,938 | 6,293 | 102.5 | 91.1 | |||||||||||||||
Preferred stock dividends declared | 528 | 528 | - | - | - | |||||||||||||||
Net income available to common shareholders | $ | 11,496 | $ | 5,410 | $ | 6,293 | 112.5 | 82.7 | ||||||||||||
AVERAGE BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | $ | 3,910,392 | $ | 2,836,916 | $ | 2,725,800 | 37.8 | % | 43.5 | % | ||||||||||
Total interest-earning assets | 3,684,527 | 2,683,658 | 2,590,740 | 37.3 | 42.2 | |||||||||||||||
Total loans | 3,095,915 | 2,150,980 | 2,108,904 | 43.9 | 46.8 | |||||||||||||||
Total interest-bearing deposits | 2,662,652 | 1,917,020 | 1,887,715 | 38.9 | 41.1 | |||||||||||||||
Total interest-bearing liabilities | 2,836,647 | 2,060,430 | 2,023,808 | 37.7 | 40.2 | |||||||||||||||
Total deposits | 3,296,288 | 2,370,480 | 2,317,795 | 39.1 | 42.2 | |||||||||||||||
Total common stockholders' equity | 384,774 | 271,241 | 247,565 | 41.9 | 55.4 | |||||||||||||||
PER COMMON SHARE DATA | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Basic earnings per common share | $ | 0.84 | $ | 0.55 | $ | 0.64 | 52.7 | % | 31.3 | % | ||||||||||
Diluted earnings per common share | 0.77 | 0.51 | 0.63 | 51.0 | 22.2 | |||||||||||||||
Core earnings(1): | ||||||||||||||||||||
Core basic earnings per common share(1) | 0.95 | 0.63 | 0.66 | 50.8 | 43.9 | |||||||||||||||
Core diluted earnings per common share(1) | 0.87 | 0.58 | 0.65 | 50.0 | 33.8 | |||||||||||||||
Book value per common share | 27.97 | 27.63 | 25.63 | 1.2 | 9.1 | |||||||||||||||
Tangible book value per common share(1) | 22.72 | 23.42 | 21.40 | (3.0 | ) | 6.2 | ||||||||||||||
Common shares outstanding | 13,741,225 | 9,798,948 | 9,821,446 | 40.2 | 39.9 | |||||||||||||||
Weighted average common shares outstanding - basic | 13,762,593 | 9,806,683 | 9,832,625 | 40.3 | 40.0 | |||||||||||||||
Weighted average common shares outstanding - diluted | 15,553,534 | 11,554,939 | 9,960,940 | 34.6 | 56.1 | |||||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average assets | 1.25 | % | 0.83 | % | 0.94 | % | 50.6 | % | 33.0 | % | ||||||||||
Core return on average assets(1) | 1.41 | 0.93 | 0.96 | 51.6 | 46.9 | |||||||||||||||
Return on average common equity | 12.12 | 7.91 | 10.31 | 53.2 | 17.6 | |||||||||||||||
Core return on average common equity(1) | 13.78 | 8.97 | 10.62 | 53.6 | 29.8 | |||||||||||||||
Net interest margin | 3.59 | 3.20 | 2.87 | 12.2 | 25.1 | |||||||||||||||
Net interest income to average assets | 3.39 | 3.03 | 2.73 | 11.9 | 24.2 | |||||||||||||||
Noninterest expense to average assets | 2.37 | 2.28 | 2.42 | 3.9 | (2.1 | ) | ||||||||||||||
Efficiency ratio(2) | 64.08 | 69.34 | 79.77 | (7.6 | ) | (19.7 | ) | |||||||||||||
Core efficiency ratio(1) | 58.46 | 66.13 | 78.71 | (11.6 | ) | (25.7 | ) | |||||||||||||
Dividend payout ratio | 13.10 | 20.00 | 16.41 | (34.5 | ) | (20.2 | ) | |||||||||||||
Net charge-offs (recoveries) to average loans | 0.01 | - | (0.16 | ) | - | 106.3 | ||||||||||||||
(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 | ||||||||||||||||||||
3/31/2026 | 12/31/2025 | 3/31/2025 | Linked Quarter | Year/Year | ||||||||||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||||
Nonperforming assets to total assets | 0.61 | % | 0.45 | % | 0.43 | % | 35.6 | % | 41.9 | % | ||||||||||
Nonperforming loans to total loans | 0.66 | 0.43 | 0.27 | 53.5 | 144.4 | |||||||||||||||
Allowance for credit losses to total loans | 1.17 | 1.21 | 1.25 | (3.3 | ) | (6.4 | ) | |||||||||||||
Allowance for credit losses to nonperforming loans | 177.00 | 284.50 | 473.31 | (37.8 | ) | (62.6 | ) | |||||||||||||
CAPITAL RATIOS | ||||||||||||||||||||
Investar Holding Corporation: | ||||||||||||||||||||
Total common equity to total assets | 9.92 | % | 9.56 | % | 9.22 | % | 3.8 | % | 7.6 | % | ||||||||||
Tangible common equity to tangible assets(1) | 8.21 | 8.22 | 7.82 | (0.2 | ) | 5.0 | ||||||||||||||
Tier 1 leverage capital | 10.31 | 10.73 | 9.56 | (3.9 | ) | 7.8 | ||||||||||||||
Common equity tier 1 capital(2) | 11.46 | 11.18 | 11.16 | 2.5 | 2.7 | |||||||||||||||
Tier 1 capital(2) | 13.04 | 12.85 | 11.57 | 1.5 | 12.7 | |||||||||||||||
Total capital(2) | 14.75 | 14.66 | 13.46 | 0.6 | 9.6 | |||||||||||||||
Investar Bank: | ||||||||||||||||||||
Tier 1 leverage capital | 10.47 | 10.85 | 10.03 | (3.5 | ) | 4.4 | ||||||||||||||
Common equity tier 1 capital(2) | 13.23 | 13.00 | 12.14 | 1.8 | 9.0 | |||||||||||||||
Tier 1 capital(2) | 13.23 | 13.00 | 12.14 | 1.8 | 9.0 | |||||||||||||||
Total capital(2) | 14.39 | 14.11 | 13.29 | 2.0 | 8.3 | |||||||||||||||
(1) Non-GAAP financial measure. See reconciliation.
(2) Estimated for March 31, 2026.
INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||
ASSETS | ||||||||||||
Cash and due from banks | $ | 38,985 | $ | 26,606 | $ | 26,279 | ||||||
Interest-bearing balances due from other banks | 40,626 | 14,899 | 17,243 | |||||||||
Cash and cash equivalents | 79,611 | 41,505 | 43,522 | |||||||||
Available for sale securities at fair value (amortized cost of | 412,557 | 370,614 | 345,728 | |||||||||
Held to maturity securities at amortized cost (fair value of | 48,044 | 48,199 | 42,268 | |||||||||
Loans | 3,067,816 | 2,175,973 | 2,106,631 | |||||||||
Less: allowance for credit losses | (35,985 | ) | (26,349 | ) | (26,435 | ) | ||||||
Loans, net | 3,031,831 | 2,149,624 | 2,080,196 | |||||||||
Equity securities at fair value | 3,484 | 3,354 | 2,517 | |||||||||
Nonmarketable equity securities | 21,373 | 17,021 | 14,297 | |||||||||
Bank premises and equipment, net of accumulated depreciation of | 60,238 | 39,534 | 40,350 | |||||||||
Other real estate owned, net | 3,390 | 3,374 | 6,169 | |||||||||
Accrued interest receivable | 19,757 | 14,289 | 15,264 | |||||||||
Deferred tax asset | 15,850 | 14,050 | 15,646 | |||||||||
Goodwill and other intangible assets, net | 72,138 | 41,184 | 41,558 | |||||||||
Bank owned life insurance | 83,603 | 69,188 | 60,151 | |||||||||
Other assets | 23,239 | 21,112 | 22,236 | |||||||||
Total assets | $ | 3,875,115 | $ | 2,833,048 | $ | 2,729,902 | ||||||
LIABILITIES | ||||||||||||
Deposits | ||||||||||||
Noninterest-bearing | $ | 640,129 | $ | 445,986 | $ | 436,735 | ||||||
Interest-bearing | 2,592,684 | 1,904,263 | 1,910,622 | |||||||||
Total deposits | 3,232,813 | 2,350,249 | 2,347,357 | |||||||||
Advances from Federal Home Loan Bank | 136,032 | 116,000 | 60,000 | |||||||||
Repurchase agreements | 18,363 | 11,183 | 11,302 | |||||||||
Subordinated debt, net of unamortized issuance costs | 16,749 | 16,738 | 16,707 | |||||||||
Junior subordinated debt | 23,019 | 8,830 | 8,758 | |||||||||
Accrued taxes and other liabilities | 33,505 | 28,975 | 34,041 | |||||||||
Total liabilities | 3,460,481 | 2,531,975 | 2,478,165 | |||||||||
STOCKHOLDERS' EQUITY | ||||||||||||
Preferred stock, no par value per share; 5,000,000 shares authorized; | 30,353 | 30,353 | - | |||||||||
Common stock, | 13,741 | 9,799 | 9,821 | |||||||||
Surplus | 247,156 | 146,133 | 146,598 | |||||||||
Retained earnings | 160,494 | 150,510 | 138,197 | |||||||||
Accumulated other comprehensive loss | (37,110 | ) | (35,722 | ) | (42,879 | ) | ||||||
Total stockholders' equity | 414,634 | 301,073 | 251,737 | |||||||||
Total liabilities and stockholders' equity | $ | 3,875,115 | $ | 2,833,048 | $ | 2,729,902 | ||||||
INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except share data)
(Unaudited)
For the three months ended | ||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||
INTEREST INCOME | ||||||||||||
Interest and fees on loans | $ | 47,954 | $ | 32,477 | $ | 30,552 | ||||||
Interest on investment securities | ||||||||||||
Taxable | 3,372 | 3,204 | 2,679 | |||||||||
Tax-exempt | 741 | 718 | 671 | |||||||||
Other interest income | 1,137 | 729 | 532 | |||||||||
Total interest income | 53,204 | 37,128 | 34,434 | |||||||||
INTEREST EXPENSE | ||||||||||||
Interest on deposits | 18,710 | 14,046 | 14,640 | |||||||||
Interest on borrowings | 1,834 | 1,451 | 1,449 | |||||||||
Total interest expense | 20,544 | 15,497 | 16,089 | |||||||||
Net interest income | 32,660 | 21,631 | 18,345 | |||||||||
Reversal of credit losses | (2,108 | ) | (75 | ) | (3,596 | ) | ||||||
Net interest income after reversal of credit losses | 34,768 | 21,706 | 21,941 | |||||||||
NONINTEREST INCOME | ||||||||||||
Service charges on deposit accounts | 956 | 841 | 795 | |||||||||
Gain on call or sale of investment securities, net | - | 16 | - | |||||||||
Loss on sale or disposition of fixed assets, net | - | - | (3 | ) | ||||||||
Loss on sale of other real estate owned, net | (84 | ) | (94 | ) | - | |||||||
Gain on sale of loans | 26 | - | - | |||||||||
Interchange fees | 559 | 389 | 390 | |||||||||
Income from bank owned life insurance | 664 | 576 | 448 | |||||||||
Change in the fair value of equity securities | 130 | 84 | (76 | ) | ||||||||
Other operating income | 729 | 30 | 457 | |||||||||
Total noninterest income | 2,980 | 1,842 | 2,011 | |||||||||
Income before noninterest expense | 37,748 | 23,548 | 23,952 | |||||||||
NONINTEREST EXPENSE | ||||||||||||
Depreciation and amortization | 1,344 | 678 | 721 | |||||||||
Salaries and employee benefits | 12,947 | 10,066 | 9,603 | |||||||||
Occupancy | 988 | 672 | 641 | |||||||||
Data processing | 1,214 | 814 | 897 | |||||||||
Marketing | 99 | 105 | 111 | |||||||||
Professional fees | 799 | 521 | 591 | |||||||||
Acquisition expenses | 1,728 | 449 | 159 | |||||||||
Other operating expenses | 3,720 | 2,972 | 3,515 | |||||||||
Total noninterest expense | 22,839 | 16,277 | 16,238 | |||||||||
Income before income tax expense | 14,909 | 7,271 | 7,714 | |||||||||
Income tax expense | 2,885 | 1,333 | 1,421 | |||||||||
Net income | 12,024 | 5,938 | 6,293 | |||||||||
Preferred stock dividends declared | 528 | 528 | - | |||||||||
Net income available to common shareholders | $ | 11,496 | $ | 5,410 | $ | 6,293 | ||||||
EARNINGS PER COMMON SHARE | ||||||||||||
Basic earnings per common share | $ | 0.84 | $ | 0.55 | $ | 0.64 | ||||||
Diluted earnings per common share | 0.77 | 0.51 | 0.63 | |||||||||
Cash dividends declared per common share | 0.11 | 0.11 | 0.105 | |||||||||
INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
For the three months ended | ||||||||||||||||||||||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||||||||||||||||||||
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 | $ | 3,095,915 | $ | 47,954 | 6.28 | % | $ | 2,150,980 | $ | 32,477 | 5.99 | % | $ | 2,108,904 | $ | 30,552 | 5.88 | % | ||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||
Taxable | 428,523 | 3,372 | 3.19 | 412,959 | 3,204 | 3.08 | 387,538 | 2,679 | 2.80 | |||||||||||||||||||||||
Tax-exempt | 56,639 | 741 | 5.31 | 54,667 | 718 | 5.21 | 50,761 | 671 | 5.36 | |||||||||||||||||||||||
Interest-bearing balances with banks | 103,450 | 1,137 | 4.46 | 65,052 | 729 | 4.44 | 43,537 | 532 | 4.95 | |||||||||||||||||||||||
Total interest-earning assets | 3,684,527 | 53,204 | 5.86 | 2,683,658 | 37,128 | 5.49 | 2,590,740 | 34,434 | 5.39 | |||||||||||||||||||||||
Cash and due from banks | 32,966 | 28,990 | 26,126 | |||||||||||||||||||||||||||||
Intangible assets | 77,480 | 41,246 | 41,630 | |||||||||||||||||||||||||||||
Other assets | 153,315 | 109,445 | 93,989 | |||||||||||||||||||||||||||||
Allowance for credit losses | (37,896 | ) | (26,423 | ) | (26,685 | |||||||||||||||||||||||||||
Total assets | $ | 3,910,392 | $ | 2,836,916 | $ | 2,725,800 | ||||||||||||||||||||||||||
Liabilities and stockholders' equity | ||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | ||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||
Interest-bearing demand deposits | $ | 1,289,503 | $ | 7,671 | 2.41 | % | $ | 873,065 | $ | 4,912 | 2.23 | % | $ | 771,623 | $ | 4,079 | 2.14 | % | ||||||||||||||
Brokered demand deposits | - | - | - | 369 | 3 | 3.68 | 8,512 | 94 | 4.46 | |||||||||||||||||||||||
Savings deposits | 165,576 | 361 | 0.88 | 136,712 | 366 | 1.06 | 134,142 | 351 | 1.06 | |||||||||||||||||||||||
Brokered time deposits | 152,288 | 1,507 | 4.01 | 199,823 | 2,109 | 4.19 | 252,276 | 3,033 | 4.88 | |||||||||||||||||||||||
Time deposits | 1,055,285 | 9,171 | 3.52 | 707,051 | 6,656 | 3.73 | 721,162 | 7,083 | 3.98 | |||||||||||||||||||||||
Total interest-bearing deposits | 2,662,652 | 18,710 | 2.85 | 1,917,020 | 14,046 | 2.91 | 1,887,715 | 14,640 | 3.15 | |||||||||||||||||||||||
Short-term borrowings | 49,501 | 367 | 3.01 | 48,941 | 372 | 3.01 | 50,641 | 445 | 3.56 | |||||||||||||||||||||||
Long-term debt | 124,494 | 1,467 | 4.78 | 94,469 | 1,079 | 4.53 | 85,452 | 1,004 | 4.77 | |||||||||||||||||||||||
Total interest-bearing liabilities | 2,836,647 | 20,544 | 2.94 | 2,060,430 | 15,497 | 2.98 | 2,023,808 | 16,089 | 3.22 | |||||||||||||||||||||||
Noninterest-bearing deposits | 633,636 | 453,460 | 430,080 | |||||||||||||||||||||||||||||
Other liabilities | 24,982 | 21,432 | 24,347 | |||||||||||||||||||||||||||||
Stockholders' equity | 415,127 | 301,594 | 247,565 | |||||||||||||||||||||||||||||
Total liability and stockholders' equity | $ | 3,910,392 | $ | 2,836,916 | $ | 2,725,800 | ||||||||||||||||||||||||||
Net interest income/net interest margin | $ | 32,660 | 3.59 | % | $ | 21,631 | 3.20 | % | $ | 18,345 | 2.87 | % | ||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||||||||||||||||||||||||||
Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | ||||||||||||||||||||||||||||
Interest-earning assets: | ||||||||||||||||||||||||||||||||||||
Loans | $ | 3,095,915 | $ | 47,954 | 6.28 | % | $ | 2,150,980 | $ | 32,477 | 5.99 | % | $ | 2,108,904 | $ | 30,552 | 5.88 | % | ||||||||||||||||||
Adjustments: | ||||||||||||||||||||||||||||||||||||
Interest recoveries | 7 | 1 | 50 | |||||||||||||||||||||||||||||||||
Accretion | 2,848 | 6 | 9 | |||||||||||||||||||||||||||||||||
Adjusted loans | 3,095,915 | 45,099 | 5.91 | 2,150,980 | 32,470 | 5.99 | 2,108,904 | 30,493 | 5.86 | |||||||||||||||||||||||||||
Securities: | ||||||||||||||||||||||||||||||||||||
Taxable | 428,523 | 3,372 | 3.19 | 412,959 | 3,204 | 3.08 | 387,538 | 2,679 | 2.80 | |||||||||||||||||||||||||||
Tax-exempt | 56,639 | 741 | 5.31 | 54,667 | 718 | 5.21 | 50,761 | 671 | 5.36 | |||||||||||||||||||||||||||
Interest-bearing balances with banks | 103,450 | 1,137 | 4.46 | 65,052 | 729 | 4.44 | 43,537 | 532 | 4.95 | |||||||||||||||||||||||||||
Adjusted interest-earning assets | 3,684,527 | 50,349 | 5.54 | 2,683,658 | 37,121 | 5.49 | 2,590,740 | 34,375 | 5.38 | |||||||||||||||||||||||||||
Total interest-bearing liabilities | 2,836,647 | 20,544 | 2.94 | 2,060,430 | 15,497 | 2.98 | 2,023,808 | 16,089 | 3.22 | |||||||||||||||||||||||||||
Adjusted net interest income/adjusted net interest margin | $ | 29,805 | 3.28 | % | $ | 21,624 | 3.20 | % | $ | 18,286 | 2.86 | % | ||||||||||||||||||||||||
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
March 31, 2026 | December 31, 2025 | March 31, 2025 | ||||||||||
Tangible common equity | ||||||||||||
Total stockholders' equity | $ | 414,634 | $ | 301,073 | $ | 251,737 | ||||||
Less: preferred stock | 30,353 | 30,353 | - | |||||||||
Total common equity | 384,281 | 270,720 | 251,737 | |||||||||
Adjustments: | ||||||||||||
Goodwill | 58,090 | 40,088 | 40,088 | |||||||||
Core deposit intangible | 13,948 | 996 | 1,370 | |||||||||
Trademark intangible | 100 | 100 | 100 | |||||||||
Tangible common equity | $ | 312,143 | $ | 229,536 | $ | 210,179 | ||||||
Tangible assets | ||||||||||||
Total assets | $ | 3,875,115 | $ | 2,833,048 | $ | 2,729,902 | ||||||
Adjustments: | ||||||||||||
Goodwill | 58,090 | 40,088 | 40,088 | |||||||||
Core deposit intangible | 13,948 | 996 | 1,370 | |||||||||
Trademark intangible | 100 | 100 | 100 | |||||||||
Tangible assets | $ | 3,802,977 | $ | 2,791,864 | $ | 2,688,344 | ||||||
Common shares outstanding | 13,741,225 | 9,798,948 | 9,821,446 | |||||||||
Tangible common equity to tangible assets | 8.21 | % | 8.22 | % | 7.82 | % | ||||||
Book value per common share | $ | 27.97 | $ | 27.63 | $ | 25.63 | ||||||
Tangible book value per common share | 22.72 | 23.42 | 21.40 | |||||||||
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
For the three months ended | |||||||||||||
3/31/2026 | 12/31/2025 | 3/31/2025(1) | |||||||||||
Net interest income | (a) | $ | 32,660 | $ | 21,631 | $ | 18,345 | ||||||
Reversal of credit losses(2) | (2,108 | ) | (75 | ) | (3,596 | ) | |||||||
Net interest income after reversal of credit losses(2) | 34,768 | 21,706 | 21,941 | ||||||||||
Total noninterest income | (b) | 2,980 | 1,842 | 2,011 | |||||||||
Gain on call or sale of investment securities, net | - | (16 | ) | - | |||||||||
Loss on sale or disposition of fixed assets, net | - | - | 3 | ||||||||||
Loss on sale of other real estate owned, net | 84 | 94 | - | ||||||||||
Gain on sale of loans | (26 | ) | - | - | |||||||||
Change in the fair value of equity securities | (130 | ) | (84 | ) | 76 | ||||||||
Change in the net asset value of other investments(3) | (17 | ) | 389 | (6 | ) | ||||||||
Core noninterest income | (d) | 2,891 | 2,225 | 2,084 | |||||||||
Core earnings before noninterest expense(2) | 37,659 | 23,931 | 24,025 | ||||||||||
Total noninterest expense | (c) | 22,839 | 16,277 | 16,238 | |||||||||
Severance(4) | (327 | ) | (52 | ) | - | ||||||||
Acquisition expense | (1,728 | ) | (449 | ) | (159 | ) | |||||||
Core noninterest expense(2) | (f) | 20,784 | 15,776 | 16,079 | |||||||||
Core earnings before income tax expense(2) | 16,875 | 8,155 | 7,946 | ||||||||||
Core income tax expense(5) | 3,274 | 1,492 | 1,462 | ||||||||||
Core earnings(2) | 13,601 | 6,663 | 6,484 | ||||||||||
Preferred stock dividends declared | 528 | 528 | - | ||||||||||
Core earnings available to common shareholders(2) | $ | 13,073 | $ | 6,135 | $ | 6,484 | |||||||
Core basic earnings per common share(2) | $ | 0.95 | $ | 0.63 | $ | 0.66 | |||||||
Diluted earnings per common share (GAAP) | $ | 0.77 | $ | 0.51 | $ | 0.63 | |||||||
Gain on call or sale of investment securities, net | - | - | - | ||||||||||
Loss on sale or disposition of fixed assets, net | - | - | - | ||||||||||
Loss on sale of other real estate owned, net | - | 0.01 | - | ||||||||||
Gain on sale of loans | - | - | - | ||||||||||
Change in the fair value of equity securities | (0.01 | ) | (0.01 | ) | 0.01 | ||||||||
Change in the net asset value of other investments(3) | - | 0.03 | - | ||||||||||
Severance(4) | 0.02 | 0.01 | - | ||||||||||
Acquisition expense | 0.09 | 0.03 | 0.01 | ||||||||||
Core diluted earnings per common share(2) | $ | 0.87 | $ | 0.58 | $ | 0.65 | |||||||
Efficiency ratio | (c) / (a+b) | 64.08 | % | 69.34 | % | 79.77 | % | ||||||
Core efficiency ratio(2) | (f) / (a+d) | 58.46 | 66.13 | 78.71 | |||||||||
Core return on average assets(2)(6) | 1.41 | 0.93 | 0.96 | ||||||||||
Core return on average common equity(2)(7) | 13.78 | 8.97 | 10.62 | ||||||||||
Total average assets | $ | 3,910,392 | $ | 2,836,916 | $ | 2,725,800 | |||||||
Total average common stockholders' equity | 384,774 | 271,241 | 247,565 | ||||||||||
(1) All core results and core metrics for the quarter ended March 31, 2025 exclude
(2) Reversal of credit losses, net interest income after reversal of credit losses, core earnings before noninterest expense, core noninterest expense, core earnings before income tax expense, core earnings and core earnings available to common shareholders include a
(3) 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.
(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
(6) Core earnings used in calculation. No adjustments were made to total average assets.
(7) Core earnings available to common shareholders used in calculation. No adjustments were made to total average common stockholders' equity.
SOURCE: Investar Holding Corporation
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