Investar Holding Corporation Announces 2026 First Quarter Results

Investar Holding Corporation Announces 2026 First Quarter Results 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

318,868

147,980

149,275

170,888

115.5

169,593

113.6

10.4

7.1

920,480

376,238

394,735

544,242

144.7

525,745

133.2

30.0

18.7

135,081

130,005

103,248

5,076

3.9

31,833

30.8

4.4

4.9

7,803

4,788

6,718

3,015

63.0

1,085

16.2

0.3

505,882

460,126

449,963

45,756

9.9

55,919

12.4

16.5

21.4

504,784

452,142

481,905

52,642

11.6

22,879

4.7

16.4

22.9

661,803

595,263

510,765

66,540

11.2

151,038

29.6

21.6

24.2

13,115

9,431

10,022

3,684

39.1

3,093

30.9

0.4

0.5

3,067,816

2,175,973

2,106,631

891,843

41.0

961,185

45.6

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

640,129

445,986

436,735

194,143

43.5

203,394

46.6

19.8

18.6

938,758

608,807

569,903

329,951

54.2

368,855

64.7

29.0

24.3

374,842

255,500

240,300

119,342

46.7

134,542

56.0

11.6

10.2

)

(100.0

)

164,815

136,124

136,098

28,691

21.1

28,717

21.1

5.1

5.8

101,217

204,069

244,935

(102,852

)

(50.4

)

(143,718

)

(58.7

)

3.1

10.4

1,013,052

699,761

719,386

313,291

44.8

293,666

40.8

31.4

30.7

3,232,813

2,350,249

2,347,357

882,564

37.6

885,456

37.7

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

[email protected]

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

53,204

37,128

34,434

43.3

54.5

20,544

15,497

16,089

32.6

27.7

32,660

21,631

18,345

51.0

78.0

(2,108

)

(75

)

(3,596

)

(2,710.7

)

41.4

2,980

1,842

2,011

61.8

48.2

22,839

16,277

16,238

40.3

40.7

14,909

7,271

7,714

105.0

93.3

2,885

1,333

1,421

116.4

103.0

12,024

5,938

6,293

102.5

91.1

528

11,496

5,410

6,293

112.5

82.7

3,910,392

2,836,916

2,725,800

37.8

43.5

3,684,527

2,683,658

2,590,740

37.3

42.2

3,095,915

2,150,980

2,108,904

43.9

46.8

2,662,652

1,917,020

1,887,715

38.9

41.1

2,836,647

2,060,430

2,023,808

37.7

40.2

3,296,288

2,370,480

2,317,795

39.1

42.2

384,774

271,241

247,565

41.9

55.4

0.84

0.55

0.64

52.7

31.3

0.77

0.51

0.63

51.0

22.2

0.95

0.63

0.66

50.8

43.9

0.87

0.58

0.65

50.0

33.8

27.97

27.63

25.63

1.2

9.1

22.72

23.42

21.40

(3.0

)

6.2

13,741,225

9,798,948

9,821,446

40.2

39.9

13,762,593

9,806,683

9,832,625

40.3

40.0

15,553,534

11,554,939

9,960,940

34.6

56.1

1.25

0.83

0.94

50.6

33.0

1.41

0.93

0.96

51.6

46.9

12.12

7.91

10.31

53.2

17.6

13.78

8.97

10.62

53.6

29.8

3.59

3.20

2.87

12.2

25.1

3.39

3.03

2.73

11.9

24.2

2.37

2.28

2.42

3.9

(2.1

)

64.08

69.34

79.77

(7.6

)

(19.7

)

58.46

66.13

78.71

(11.6

)

(25.7

)

13.10

20.00

16.41

(34.5

)

(20.2

)

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

0.61

0.45

0.43

35.6

41.9

0.66

0.43

0.27

53.5

144.4

1.17

1.21

1.25

(3.3

)

(6.4

)

177.00

284.50

473.31

(37.8

)

(62.6

)

9.92

9.56

9.22

3.8

7.6

8.21

8.22

7.82

(0.2

)

5.0

10.31

10.73

9.56

(3.9

)

7.8

11.46

11.18

11.16

2.5

2.7

13.04

12.85

11.57

1.5

12.7

14.75

14.66

13.46

0.6

9.6

10.47

10.85

10.03

(3.5

)

4.4

13.23

13.00

12.14

1.8

9.0

13.23

13.00

12.14

1.8

9.0

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

38,985

26,606

26,279

40,626

14,899

17,243

79,611

41,505

43,522

412,557

370,614

345,728

48,044

48,199

42,268

3,067,816

2,175,973

2,106,631

(35,985

)

(26,349

)

(26,435

)

3,031,831

2,149,624

2,080,196

3,484

3,354

2,517

21,373

17,021

14,297

60,238

39,534

40,350

3,390

3,374

6,169

19,757

14,289

15,264

15,850

14,050

15,646

72,138

41,184

41,558

83,603

69,188

60,151

23,239

21,112

22,236

3,875,115

2,833,048

2,729,902

640,129

445,986

436,735

2,592,684

1,904,263

1,910,622

3,232,813

2,350,249

2,347,357

136,032

116,000

60,000

18,363

11,183

11,302

16,749

16,738

16,707

23,019

8,830

8,758

33,505

28,975

34,041

3,460,481

2,531,975

2,478,165

30,353

13,741

9,799

9,821

247,156

146,133

146,598

160,494

150,510

138,197

(37,110

)

(35,722

)

(42,879

)

414,634

301,073

251,737

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

47,954

32,477

30,552

3,372

3,204

2,679

741

718

671

1,137

729

532

53,204

37,128

34,434

18,710

14,046

14,640

1,834

1,451

1,449

20,544

15,497

16,089

32,660

21,631

18,345

(2,108

)

(75

)

(3,596

)

34,768

21,706

21,941

956

841

795

)

(84

)

(94

)

559

389

390

664

576

448

130

(76

)

729

457

2,980

1,842

2,011

37,748

23,548

23,952

1,344

678

721

12,947

10,066

9,603

988

672

641

1,214

814

897

105

111

799

521

591

1,728

449

159

3,720

2,972

3,515

22,839

16,277

16,238

14,909

7,271

7,714

2,885

1,333

1,421

12,024

5,938

6,293

528

11,496

5,410

6,293

0.84

0.55

0.64

0.77

0.51

0.63

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

Average

Income/

Average

Income/

Average

Income/

Balance

Expense

Yield/ Rate

Balance

Expense

Yield/ Rate

Balance

Expense

Yield/ Rate

3,095,915

47,954

6.28

2,150,980

32,477

5.99

2,108,904

30,552

5.88

428,523

3,372

3.19

412,959

3,204

3.08

387,538

2,679

2.80

56,639

741

5.31

54,667

718

5.21

50,761

671

5.36

103,450

1,137

4.46

65,052

729

4.44

43,537

532

4.95

3,684,527

53,204

5.86

2,683,658

37,128

5.49

2,590,740

34,434

5.39

32,966

28,990

26,126

77,480

41,246

41,630

153,315

109,445

93,989

(37,896

)

(26,423

)

(26,685

3,910,392

2,836,916

2,725,800

1,289,503

7,671

2.41

873,065

4,912

2.23

771,623

4,079

2.14

369

3.68

8,512

4.46

165,576

361

0.88

136,712

366

1.06

134,142

351

1.06

152,288

1,507

4.01

199,823

2,109

4.19

252,276

3,033

4.88

1,055,285

9,171

3.52

707,051

6,656

3.73

721,162

7,083

3.98

2,662,652

18,710

2.85

1,917,020

14,046

2.91

1,887,715

14,640

3.15

49,501

367

3.01

48,941

372

3.01

50,641

445

3.56

124,494

1,467

4.78

94,469

1,079

4.53

85,452

1,004

4.77

2,836,647

20,544

2.94

2,060,430

15,497

2.98

2,023,808

16,089

3.22

633,636

453,460

430,080

24,982

21,432

24,347

415,127

301,594

247,565

3,910,392

2,836,916

2,725,800

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

Yield/ Rate

Average Balance

Yield/ Rate

3,095,915

47,954

6.28

2,150,980

32,477

5.99

2,108,904

30,552

5.88

2,848

3,095,915

45,099

5.91

2,150,980

32,470

5.99

2,108,904

30,493

5.86

428,523

3,372

3.19

412,959

3,204

3.08

387,538

2,679

2.80

56,639

741

5.31

54,667

718

5.21

50,761

671

5.36

103,450

1,137

4.46

65,052

729

4.44

43,537

532

4.95

3,684,527

50,349

5.54

2,683,658

37,121

5.49

2,590,740

34,375

5.38

2,836,647

20,544

2.94

2,060,430

15,497

2.98

2,023,808

16,089

3.22

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

414,634

301,073

251,737

30,353

384,281

270,720

251,737

58,090

40,088

13,948

996

1,370

100

312,143

229,536

210,179

3,875,115

2,833,048

2,729,902

58,090

40,088

13,948

996

1,370

100

3,802,977

2,791,864

2,688,344

13,741,225

9,798,948

9,821,446

8.21

8.22

7.82

27.97

27.63

25.63

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)

32,660

21,631

18,345

(2,108

)

(75

)

(3,596

)

34,768

21,706

21,941

2,980

1,842

2,011

(16

)

(26

)

(130

)

(84

)

(17

)

389

)

2,891

2,225

2,084

37,659

23,931

24,025

22,839

16,277

16,238

(327

)

(52

)

(1,728

)

(449

)

(159

)

20,784

15,776

16,079

16,875

8,155

7,946

3,274

1,492

1,462

13,601

6,663

6,484

528

13,073

6,135

6,484

0.95

0.63

0.66

0.77

0.51

0.63

0.01

(0.01

)

(0.01

)

0.01

0.03

0.02

0.01

0.09

0.03

0.01

0.87

0.58

0.65

64.08

69.34

79.77

58.46

66.13

78.71

1.41

0.93

0.96

13.78

8.97

10.62

3,910,392

2,836,916

2,725,800

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