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 $11.5 million, or $0.77 per diluted common share, for the first quarter of 2026, compared to net income available to common shareholders of $5.4 million, or $0.51 per diluted common share, for the quarter ended December 31, 2025, and net income available to common shareholders of $6.3 million, or $0.63 per diluted common share, for the quarter ended March 31, 2025.

On a non-GAAP basis, core earnings per diluted common share for the first quarter of 2026 were $0.87 compared to $0.58 for the fourth quarter of 2025, and $0.65 for the first quarter of 2025. Core earnings available to common shareholders excludes certain items including, but not limited to, 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; change in the fair value of equity securities; change in the net asset value of other investments; severance; and acquisition expense (refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics).

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 3.59%, a 39 basis point increase from previous quarter, and we had significant improvements in our diluted earnings per share, return on average assets and efficiency ratio.

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 49% of our loan portfolio at quarter end.

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 $28.63."

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 to 3.20% 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 to 3.28% for the quarter ended March 31, 2026 compared to 3.20% 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 to 0.83% for the quarter ended December 31, 2025. Core return on average assets improved to 1.41% for the quarter ended March 31, 2026 compared to 0.93% for the quarter ended December 31, 2025.
Efficiency ratio improved to 64.08% for the quarter ended March 31, 2026 compared to 69.34% for the quarter ended December 31, 2025. Core efficiency ratio improved to 58.46% for the quarter ended March 31, 2026 compared to 66.13% 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 to 5.99% 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 to 2.98% for the quarter ended December 31, 2025. The cost of deposits decreased six basis points to 2.85% for the quarter ended March 31, 2026 compared to 2.91% for the quarter ended December 31, 2025.
Total loans increased by $891.8 million, or 41.0%, 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 to 38% at December 31, 2025.
Book value per common share increased to $27.97 at March 31, 2026, or 1.2%, compared to $27.63 at December 31, 2025. Tangible book value per common share decreased to $22.72 at March 31, 2026, or 3.0%, 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, or 37.6%, 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 $3.07 billion at March 31, 2026, an increase of $891.8 million, or 41.0%, compared to December 31, 2025, and an increase of $961.2 million, or 45.6%, compared to March 31, 2025. We experienced growth in each loan category primarily as a result of the acquisition of WFB.

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 $1.17 billion, an increase of $112.3 million, or 10.6%, compared to $1.06 billion at December 31, 2025, and an increase of $207.0 million, or 21.5%, compared to $960.7 million at March 31, 2025. The increase in the business lending portfolio compared to December 31, 2025 was primarily driven by the acquisition of WFB, partially offset by loan amortization. The increase in the business lending portfolio compared to March 31, 2025 was primarily driven by the acquisition of WFB and increased commercial and industrial loan production.

Nonowner-occupied loans totaled $504.8 million at March 31, 2026, an increase of $52.6 million, or 11.6%, compared to $452.1 million at December 31, 2025, and an increase of $22.9 million, or 4.7%, compared to $481.9 million at March 31, 2025. The increase in nonowner-occupied loans compared to December 31, 2025 and March 31, 2025 was primarily due to the acquisition of WFB, partially offset by loan amortization and payoffs that aligned with our continued strategy to optimize and de-risk the mix of the portfolio.

Construction and development loans totaled $318.9 million at March 31, 2026, an increase of $170.9 million, or 115.5%, compared to $148.0 million at December 31, 2025, and an increase of $169.6 million, or 113.6%, compared to $149.3 million at March 31, 2025. The increase in construction and development loans compared to December 31, 2025 and March 31, 2025 was primarily due to the acquisition of WFB.

Credit Quality

Nonperforming loans were $20.3 million, or 0.66% of total loans, at March 31, 2026, an increase of $11.0 million compared to $9.3 million, or 0.43% of total loans, at December 31, 2025, and an increase of $14.7 million compared to $5.6 million, or 0.27% of total loans, at March 31, 2025. The increase in nonperforming loans compared to December 31, 2025 was primarily attributable to one primarily owner-occupied commercial real estate relationship totaling $6.6 million and nonperforming loans acquired from WFB totaling $3.2 million.

The allowance for credit losses was $36.0 million, or 177.0% and 1.17% of nonperforming and total loans, respectively, at March 31, 2026, compared to $26.3 million, or 284.5% and 1.21% of nonperforming and total loans, respectively, at December 31, 2025, and $26.4 million, or 473.3% and 1.25% of nonperforming and total loans, respectively, at March 31, 2025. On January 1, 2026, Investar recorded an $11.7 million allowance for credit losses due to the acquisition of WFB.

Investar recorded a reversal of credit losses of $2.1 million, $0.1 million and $3.6 million, respectively, for each of the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025. The reversal of credit losses in the quarter ended March 31, 2026 was primarily due to a decrease in total loans during the quarter, changes in the economic forecast and the completion of our annual current expected credit loss allowance model recalibration. The reversal of credit losses in the quarter ended December 31, 2025 was primarily attributable to changes in the economic forecast and loan mix. The reversal of credit losses for the quarter ended March 31, 2025 was primarily due to net recoveries of $3.4 million, primarily due to a $3.3 million property insurance settlement related to a loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida.

Deposits

Total deposits at March 31, 2026 were $3.23 billion, an increase of $882.6 million, or 37.6%, compared to $2.35 billion at December 31, 2025, and an increase of $885.5 million, or 37.7%, compared to $2.35 billion at March 31, 2025.

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 $101.2 million at March 31, 2026 compared to $204.1 million at December 31, 2025 and $244.9 million at March 31, 2025. Investar utilizes brokered time deposits, entirely in denominations of less than $250,000, to secure fixed cost funding and reduce short-term borrowings. At March 31, 2026, the balance of brokered time deposits remained below 10% of total assets, and the remaining weighted-average duration was approximately five months with a weighted-average rate of 3.94%.

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 $1,000 per share, for aggregate gross proceeds of $32.5 million. The net proceeds were $30.4 million, after deducting placement agent fees and other offering related expenses.

Stockholders' equity was $414.6 million at March 31, 2026, an increase of $113.6 million compared to December 31, 2025, and an increase of $162.9 million compared to March 31, 2025. The increase in stockholders' equity compared to December 31, 2025 was primarily attributable to the acquisition of WFB, and net income for the quarter, partially offset by an increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank's available for sale securities portfolio. The increase in stockholders' equity compared to March 31, 2025 was primarily attributable to the acquisition of WFB, the issuance of the Series A Preferred Stock, net income for the last twelve months and a decrease in accumulated other comprehensive loss due to an increase in the fair value of the Bank's available for sale securities portfolio.

Net Interest Income

Net interest income for the first quarter of 2026 totaled $32.7 million, an increase of $11.0 million, or 51.0%, compared to the fourth quarter of 2025, and an increase of $14.3 million, or 78.0%, compared to the first quarter of 2025. Total interest income was $53.2 million, $37.1 million and $34.4 million for the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively. Total interest expense was $20.5 million, $15.5 million and $16.1 million for the corresponding periods. Included in net interest income for the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025 was $2.8 million, $6,000 and $9,000, respectively, of interest income accretion from the acquisition of loans. Also included in net interest income for the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025 were interest recoveries of $7,000, $1,000 and $50,000, respectively.

Investar's net interest margin was 3.59% for the quarter ended March 31, 2026, compared to 3.20% for the quarter ended December 31, 2025 and 2.87% for the quarter ended March 31, 2025. The increase in net interest margin for the quarter ended March 31, 2026 compared to the quarter ended December 31, 2025 was driven by a 37 basis point increase in the yield on interest-earning assets and a four basis point decrease in the overall cost of funds. The increase in net interest margin for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 was driven by a 47 basis point increase in the yield on interest-earning assets and a 28 basis point decrease in the overall cost of funds, primarily brokered time deposits, time deposits and short-term borrowings.

The yield on interest-earning assets was 5.86% for the quarter ended March 31, 2026, compared to 5.49% for the quarter ended December 31, 2025 and 5.39% for the quarter ended March 31, 2025. The increase in the yield on interest-earning assets compared to the quarter ended December 31, 2025 was primarily attributable to a 29 basis point increase in the yield on the loan portfolio. The increase in the yield on interest-earning assets compared to the quarter ended March 31, 2025 was primarily attributable to a 40 basis point increase in the yield on the loan portfolio.

Exclusive of the interest income accretion from the acquisition of loans and interest recoveries, adjusted net interest margin was 3.28% for the quarter ended March 31, 2026, compared to 3.20% for the quarter ended December 31, 2025 and 2.86% for the quarter ended March 31, 2025. The adjusted yield on interest-earning assets was 5.54% for the quarter ended March 31, 2026 compared to 5.49% and 5.38% for the quarters ended December 31, 2025 and March 31, 2025, respectively. Refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics.

The cost of deposits decreased six basis points to 2.85% for the quarter ended March 31, 2026 compared to 2.91% for the quarter ended December 31, 2025 and decreased 30 basis points compared to 3.15% for the quarter ended March 31, 2025. The decrease in the cost of deposits compared to the quarters ended December 31, 2025 and March 31, 2025 resulted primarily from both a lower average balance of, and a decrease in rates paid on, brokered time deposits and a decrease in rates paid on time deposits, partially offset by both a higher average balance of, and an increase in rates paid on, interest-bearing demand deposits, and a higher average balance of time deposits.

The cost of short-term borrowings was flat at 3.01% for the quarter ended March 31, 2026 compared to the quarter ended December 31, 2025 and decreased 55 basis points compared to 3.56% for the quarter ended March 31, 2025. The decrease in the cost of short-term borrowings for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 resulted primarily from a lower current rate on short-term Federal Home Loan Bank ("FHLB") advances. Average long-term debt increased $30.0 million and $39.0 million compared to the quarters ended December 31, 2025 and March 31, 2025, respectively, to $124.5 million at March 31, 2026 primarily due to the long-term debt acquired from WFB and increased utilization of long-term FHLB advances.

The overall cost of funds for the quarter ended March 31, 2026 decreased four basis points to 2.94% compared to 2.98% for the quarter ended December 31, 2025 and decreased 28 basis points compared to 3.22% for the quarter ended March 31, 2025. The decrease in the cost of funds for the quarter ended March 31, 2026 compared to the quarter ended December 31, 2025 resulted primarily from a decrease in the cost of deposits, discussed above, partially offset by a higher average balance of deposits and increases in the average balance and cost of long-term debt. The decrease in the cost of funds for the quarter ended March 31, 2026 compared to the quarter ended March 31, 2025 resulted primarily from a decrease in the cost of deposits partially offset by higher average balances of deposits and long-term debt, discussed above.

Noninterest Income

Noninterest income for the first quarter of 2026 totaled $3.0 million, an increase of $1.1 million, or 61.8%, compared to the fourth quarter of 2025 and an increase of $1.0 million, or 48.2%, compared to the first quarter of 2025.

The increase in noninterest income compared to the quarter ended December 31, 2025 was primarily driven by a $0.2 million increase in interchange fees, a $0.1 million increase in service charges on deposit accounts, and a $0.7 million increase in other operating income. The increase in other operating income was primarily attributable to a $0.4 million increase in change in net asset value of other investments, a $0.1 million increase in distributions from other investments and a $0.1 million increase in wealth management income.

The increase in noninterest income compared to the quarter ended March 31, 2025 was primarily attributable to a $0.2 million increase in interchange fees, a $0.2 million increase in service charges on deposit accounts, a $0.2 million increase in change in fair value of equity securities, and a $0.3 million increase in other operating income. The increase in other operating income was primarily attributable to a $0.1 million increase in distributions from other investments and a $0.1 million increase in wealth management income.

Noninterest Expense

Noninterest expense for the first quarter of 2026 totaled $22.8 million, an increase of $6.6 million, or 40.3%, compared to the fourth quarter of 2025, and an increase of $6.6 million, or 40.7%, compared to the first quarter of 2025.

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 $2.9 million increase in salaries and employee benefits, a $1.3 million increase in acquisition expense, a $0.7 million increase in depreciation and amortization, a $0.4 million increase in data processing, a $0.3 million increase in occupancy, and a $0.7 million increase in other operating expense. The increases were primarily related to the acquisition of WFB on January 1, 2026. The increase in salaries and employee benefits was primarily driven by an increase in employees and $0.3 million of severance recorded during the first quarter of 2026. The increase in other operating expense was primarily attributable to a $0.4 million increase in Federal Deposit Insurance Corporation ("FDIC") assessments, a $0.1 million increase in telecommunications expense and a $0.1 million increase in software expense.

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 $3.3 million increase in salaries and employee benefits, a $1.6 million increase in acquisition expense, a $0.6 million increase in depreciation and amortization, a $0.3 million increase in occupancy, a $0.3 million increase in data processing and a $0.2 million increase in other operating expense. The increases were primarily related to the acquisition of WFB on January 1, 2026. The increase in other operating expense was primarily attributable to a $0.2 million increase in FDIC assessments.

Taxes

Investar recorded income tax expense of $2.9 million for the quarter ended March 31, 2026, which equates to an effective tax rate of 19.4%, compared to effective tax rates of 18.3% and 18.4% for the quarters ended December 31, 2025 and March 31, 2025, respectively.

Basic and Diluted Earnings Per Common Share

Investar reported basic and diluted earnings per common share of $0.84 and $0.77, respectively, for the quarter ended March 31, 2026, compared to basic and diluted earnings per common share of $0.55 and $0.51, respectively, for the quarter ended December 31, 2025, and basic and diluted earnings per common share of $0.64 and $0.63, respectively, for the quarter ended March 31, 2025.

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 $3.9 billion.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures and ratios include "tangible common equity," "tangible assets," "tangible common equity to tangible assets," "tangible book value per common share," "core noninterest income," "core earnings before noninterest expense," "core noninterest expense," "core earnings before income tax expense," "core income tax expense," "core earnings," "core earnings available to common shareholders," "core efficiency ratio," "core return on average assets," "core return on average common equity," "core basic earnings per common share" and "core diluted earnings per common share." We also present certain average loan, yield, net interest income and net interest margin data adjusted to show the effects of excluding interest recoveries and interest income accretion from the acquisition of loans. Management believes these non-GAAP financial measures provide information useful to investors in understanding Investar's financial results, and Investar believes that its presentation, together with the accompanying reconciliations, 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 $459,710, $416,002 and $400,211, respectively)		412,557			370,614			345,728
Held to maturity securities at amortized cost (fair value of $50,789, $50,540 and $42,720, respectively)		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 $24,551, $23,836 and $22,259, respectively		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; 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock; 32,500 shares ($1,000 liquidation preference) issued and outstanding at March 31, 2026 and December 31, 2025 and none issued and outstanding at March 31, 2025		30,353			30,353			-
Common stock, $1.00 par value per share; 40,000,000 shares authorized; 13,741,225, 9,798,948 and 9,821,446 shares issued and outstanding, respectively		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 $0.2 million of acquisition expense incurred during that quarter related to the WFB transaction. Those expenses were included in other operating expenses in the first quarter 2025 disclosures.
⁽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 $3.3 million recovery of loans previously charged off due to a property insurance settlement related to a loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida and $0.2 million in related noninterest expense recorded during the quarter ended March 31, 2025. Excluding the $3.1 million favorable impact on pre-tax net income, core basic earnings per share, core diluted earnings per share, core efficiency ratio, core return on average assets, and core return on average equity were $0.40, $0.40, 77.75%, 0.59%, and 6.46%, respectively, for the quarter ended March 31, 2025.
⁽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 19.4%, 18.3% and 18.4% for the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.
⁽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

View the original press release on ACCESS Newswire

Investar Holding Corporation Announces 2026 First Quarter Results