Investar Holding Corp's Net Income Jumps 16% YTD, Assets Top $2.8B

TL;DR

**Investar Holding Corp is a buy; strong net interest income growth and a bolstered capital base make it a solid regional bank play.**

AI Summary

Investar Holding Corp (ISTR) reported a robust financial performance for the three and nine months ended September 30, 2025. Net income available to common shareholders increased by 4.9% to $5.651 million for the three months ended September 30, 2025, up from $5.381 million in the prior year period. For the nine months, net income available to common shareholders rose by 16.2% to $16.438 million, compared to $14.145 million in the same period of 2024. Total assets grew to $2.800 billion as of September 30, 2025, from $2.722 billion at December 31, 2024. Net interest income saw a significant increase, reaching $21.153 million for the three months ended September 30, 2025, a 18.5% rise from $17.856 million in 2024, primarily driven by lower interest expense on deposits and borrowings. The company issued $30.353 million in preferred stock, net of issuance costs, during the nine months ended September 30, 2025, bolstering its capital base. Loans, net, increased to $2.124 billion from $2.098 billion, while the allowance for credit losses slightly decreased to $26.470 million from $26.721 million, indicating stable credit quality. Strategic outlook remains focused on core banking services in Louisiana, Texas, and Alabama, with 29 full-service branches.

Why It Matters

Investar Holding Corp's strong net income growth and expanding asset base signal a healthy regional bank poised for continued stability in a competitive market. For investors, the 16.2% year-to-date increase in net income available to common shareholders and the issuance of preferred stock to strengthen capital are positive indicators of financial resilience and potential for future returns. Employees benefit from a growing company with stable operations across 29 branches in Louisiana, Texas, and Alabama. Customers can expect continued reliable banking services from a well-capitalized institution. In the broader market, ISTR's performance reflects the ongoing strength of community banking in the South, despite broader economic uncertainties.

Risk Assessment

Risk Level: low — The risk level is low due to a decrease in the allowance for credit losses from $26.721 million at December 31, 2024, to $26.470 million at September 30, 2025, suggesting stable or improving credit quality. Additionally, the company's total stockholders' equity increased significantly to $295.295 million from $241.296 million, largely due to a $30.353 million preferred stock issuance, enhancing its capital buffer.

Analyst Insight

Investors should consider adding ISTR to their portfolios, given the strong net income growth and improved capital position. The increase in net interest income and stable credit quality suggest operational efficiency and resilience. Monitor future loan growth and interest rate sensitivity.

Financial Highlights

debt To Equity

N/A

revenue

$21.153M

operating Margin

N/A

total Assets

$2.800B

total Debt

$85.594M

net Income

$5.651M

eps

$0.57

gross Margin

N/A

cash Position

$35.373M

revenue Growth

+18.5%

Revenue Breakdown

Key Numbers

• $5.651M — Net income available to common shareholders (Q3 2025) (Increased 4.9% from $5.381 million in Q3 2024)
• $16.438M — Net income available to common shareholders (YTD Sep 2025) (Increased 16.2% from $14.145 million in YTD Sep 2024)
• $2.800B — Total assets (Sep 30, 2025) (Increased from $2.722 billion at Dec 31, 2024)
• $21.153M — Net interest income (Q3 2025) (Increased 18.5% from $17.856 million in Q3 2024)
• $30.353M — Preferred stock issuance (YTD Sep 2025) (Net proceeds from preferred stock offering)
• $2.124B — Loans, net (Sep 30, 2025) (Increased from $2.098 billion at Dec 31, 2024)
• $26.470M — Allowance for credit losses (Sep 30, 2025) (Decreased from $26.721 million at Dec 31, 2024)
• $295.295M — Total stockholders' equity (Sep 30, 2025) (Increased from $241.296 million at Dec 31, 2024)
• $0.57 — Basic earnings per common share (Q3 2025) (Increased from $0.55 in Q3 2024)
• $1.67 — Basic earnings per common share (YTD Sep 2025) (Increased from $1.44 in YTD Sep 2024)

Key Players & Entities

• Investar Holding Corporation (company) — registrant
• Investar Bank, National Association (company) — wholly-owned banking subsidiary
• SEC (regulator) — filing oversight
• Nasdaq Global Market (market) — stock exchange
• Baton Rouge, Louisiana (location) — company headquarters
• Louisiana (location) — primary market
• Texas (location) — primary market
• Alabama (location) — primary market
• Chief Executive Officer (person) — Chief Operating Decision Maker (CODM)
• Federal Home Loan Bank (company) — source of advances

FAQ

Risk Factors

• Credit Risk and Loan Portfolio Quality [medium — financial]: The company holds $2.124 billion in net loans. While the allowance for credit losses slightly decreased to $26.470 million from $26.721 million, any deterioration in borrower creditworthiness or economic downturn could lead to increased loan defaults and charge-offs, impacting profitability.
• Interest Rate Sensitivity [medium — market]: Net interest income is a primary driver of profitability. Fluctuations in interest rates, particularly the cost of deposits and borrowings versus loan yields, can significantly impact net interest margin and overall earnings. The company reported a 18.5% increase in net interest income for Q3 2025, driven by lower interest expense.
• Regulatory Compliance [high — regulatory]: As a financial institution, Investar Holding Corp is subject to extensive regulation by various government agencies (e.g., OCC, SEC). Changes in regulations, capital requirements, or compliance failures could result in increased operating costs, penalties, or restrictions on business activities.
• Cybersecurity and Data Breaches [medium — operational]: The company relies on technology for its operations and customer transactions. A cybersecurity incident or data breach could lead to financial losses, reputational damage, and regulatory scrutiny.
• Economic Conditions in Core Markets [medium — market]: The company's strategic focus on Louisiana, Texas, and Alabama means its performance is closely tied to the economic health of these specific regions. A regional economic downturn could negatively impact loan demand, credit quality, and overall financial performance.

Industry Context

Investar Holding Corp operates in the community banking sector, primarily serving individuals and small to medium-sized businesses in Louisiana, Texas, and Alabama. The industry is characterized by intense competition from larger national banks, regional players, and credit unions, as well as increasing digital disruption. Key trends include a focus on relationship banking, digital transformation, and navigating evolving interest rate environments and regulatory landscapes.

Regulatory Implications

As a regulated financial institution, Investar Holding Corp must adhere to stringent capital adequacy requirements, lending standards, and consumer protection laws set by bodies like the OCC and the Federal Reserve. Compliance with these regulations is critical to avoid penalties and maintain operational stability. Changes in monetary policy and banking regulations can significantly impact the company's profitability and strategic decisions.

What Investors Should Do

1. Monitor Net Interest Margin Trends
2. Assess Loan Portfolio Health
3. Evaluate Capital Strength
4. Analyze Geographic Concentration Risk

Key Dates

• 2025-09-30: Quarter End and Nine-Month Period End — Reporting period for the 10-Q, showing financial performance and position as of this date.
• 2025-09-30: Preferred Stock Issuance — Company issued $30.353 million in preferred stock, strengthening its capital base.
• 2025-09-30: Total Assets Reached $2.800 Billion — Indicates growth in the company's balance sheet compared to $2.722 billion at year-end 2024.
• 2025-09-30: Net Interest Income Growth — Reported $21.153 million for Q3 2025, an 18.5% increase, highlighting improved net interest margin.
• 2025-09-30: Net Income Available to Common Shareholders — Reported $5.651 million for Q3 2025, a 4.9% increase, demonstrating improved profitability.

Glossary

Net interest income

The difference between the interest income generated by a bank and the interest it pays out to its depositors and lenders. (A key indicator of a bank's profitability and its ability to manage interest rate differentials.)

Allowance for credit losses

An estimate of the amount of uncollectible loans in a bank's portfolio, set aside as a contra-asset account. (Reflects the bank's assessment of the risk within its loan portfolio and impacts reported loan values.)

Preferred stock

A class of ownership in a corporation that has a higher claim on the assets and earnings than common stock, often with fixed dividends. (Issuing preferred stock can be a way for companies to raise capital without diluting common shareholder ownership significantly, as seen with ISTR's $30.353 million issuance.)

Accumulated other comprehensive loss

A component of equity that includes unrealized gains and losses on certain investments and foreign currency translations that are not included in net income. (Provides a broader view of the company's financial performance beyond net income, reflecting unrealized changes in value.)

Loans, net

The total value of loans issued by the bank, minus the allowance for credit losses. (Represents the bank's primary earning asset and a significant portion of its balance sheet.)

Year-Over-Year Comparison

Compared to the prior year period, Investar Holding Corp (ISTR) demonstrates improved financial performance. Net income available to common shareholders saw a notable increase of 4.9% for Q3 2025 and a substantial 16.2% year-to-date. Total assets have grown to $2.800 billion from $2.722 billion at year-end 2024. A key highlight is the robust 18.5% growth in net interest income for Q3 2025, driven by effective management of interest expenses. While the loan portfolio has seen modest growth, the allowance for credit losses has slightly decreased, suggesting stable credit quality. The company has also strengthened its capital through a $30.353 million preferred stock issuance.

Key Financial Figures

• $1.00 — nge on which registered Common stock, $1.00 par value per share ISTR The Nasdaq

Filing Documents

• istr20250930_10q.htm (10-Q) — 4434KB
• ex_853082.htm (EX-31.1) — 9KB
• ex_853083.htm (EX-31.2) — 9KB
• ex_853084.htm (EX-32.1) — 5KB
• ex_853085.htm (EX-32.2) — 5KB
• 0001437749-25-033373.txt ( ) — 17566KB
• istr-20250930.xsd (EX-101.SCH) — 71KB
• istr-20250930_cal.xml (EX-101.CAL) — 75KB
• istr-20250930_def.xml (EX-101.DEF) — 572KB
• istr-20250930_lab.xml (EX-101.LAB) — 529KB
• istr-20250930_pre.xml (EX-101.PRE) — 615KB
• istr20250930_10q_htm.xml (XML) — 4616KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Consolidated Balance Sheets as of September 30, 2025 and December 31, 2024 4 Consolidated Statements of Income for the three and nine months ended September 30, 2025 and 2024 5 Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024 6 Consolidated Statements of Changes in Stockholders' Equity for the three and nine months ended September 30, 2025 and 2024 7 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 8 Notes to the Consolidated Financial Statements 10 Note 1. Summary of Significant Accounting Policies 10 Note 2. Earnings Per Common Share 11 Note 3. Investment Securities 12 Note 4. Loans and Allowance for Credit Losses 15 Note 5. Stockholders' Equity 24 Note 6. Stock-Based Compensation 25 Note 7. Derivative Financial Instruments 27 Note 8. Fair Values of Financial Instruments 28 Note 9. Income Taxes 33 Note 10. Commitments and Contingencies 33 Note 11. Leases 34 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 35 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 59 Item 4.

Controls and Procedures

Controls and Procedures 59

Other Information

Part II. Other Information Item 1A.

Risk Factors

Risk Factors 60 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 60 Item 5. Other Information 61 Item 6. Exhibits 62

Signatures

Signatures 63 2 Table of Contents GLOSSARY OF DEFINED TERMS Below is a listing of certain acronyms, abbreviations and defined terms, among others, used throughout this Quarterly Report on Form 10-Q. Series A Preferred Stock – 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock 2029 Notes – 5.125% Fixed-to-Floating Rate Subordinated Notes due 2029 2032 Notes – 5.125% Fixed-to-Floating Rate Subordinated Notes due 2032 ACL – Allowance for Credit Losses AFS – Available For Sale ALCO – Asset/Liability Committee Annual Report – Investar Holding Corporation's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 12, 2025 ASC – Accounting Standards Codification ASU – Accounting Standards Update Bank – Investar Bank, National Association Board – Board of Directors of Investar Holding Corporation BOLI – Bank Owned Life Insurance BTFP – Bank Term Funding Program CECL – Current Expected Credit Loss CODM – Chief Operating Decision Maker Company – Investar Holding Corporation and its wholly-owned subsidiary the Bank (also, "we," "our," or "us") FASB – Financial Accounting Standards Board FDIC – Federal Deposit Insurance Corporation FHLB – Federal Home Loan Bank FRB – Federal Reserve Bank of Atlanta GAAP – U.S. Generally Accepted Accounting Principles HTM – Held To Maturity MD&A –

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations NAICS – North American Industry Classification System OBBBA – One Big Beautiful Bill Act OCC – Office of the Comptroller of the Currency ROU – Right-Of-Use RSU – Restricted Stock Unit SEC – U.S. Securities and Exchange Commission Securities Act – Securities Act of 1933, as amended SBIC – Small Business Investment Company SOFR – Secured Overnight Financing Rate WFB – Wichita Falls Bancshares, Inc. U.S. – United States 3 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS INVESTAR HOLDING CORPORATION CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) September 30, 2025 December 31, 2024 (Unaudited) ASSETS Cash and due from banks $ 32,564 $ 26,623 Interest-bearing balances due from other banks 2,809 1,299 Cash and cash equivalents 35,373 27,922 Available for sale securities at fair value (amortized cost of $ 417,729 and $ 392,564 , respectively) 370,251 331,121 Held to maturity securities at amortized cost (fair value of $ 50,576 and $ 42,144 , respectively) 47,834 42,687 Loans 2,150,523 2,125,084 Less: allowance for credit losses ( 26,470 ) ( 26,721 ) Loans, net 2,124,053 2,098,363 Equity securities at fair value 3,270 2,593 Nonmarketable equity securities 15,255 16,502 Bank premises and equipment, net of accumulated depreciation of $ 23,297 and $ 21,853 , respectively 39,732 40,705 Other real estate owned, net 4,633 5,218 Accrued interest receivable 14,858 14,423 Deferred tax asset 14,362 17,120 Goodwill and other intangible assets, net 41,303 41,696 Bank owned life insurance 68,612 59,703 Other assets 21,092 24,759 Total assets $ 2,800,628 $ 2,722,812 LIABILITIES Deposits: Noninterest-bearing $ 446,361 $ 432,143 Interest-bearing 1,926,317 1,913,801 Total deposits 2,372,678 2,345,944 Advances from Federal Home Loan Bank 60,000 67,215 Repurchase agreements 15,066 8,376 Subordinated debt, net of unamortized issuance costs 16,728 16,697 Junior subordinated debt 8,806 8,733 Accrued taxes and other liabilities 32,055 34,551 Total liabilities 2,505,333 2,481,516 Commitments and contingencies (Note 10) 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 September 30, 2025 and none issued and outstanding at December

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View this 10-Q filing on SEC EDGAR