Investar Holding Corporation Reports $21.8 Million Net Income and $2.8 Billion in Total Assets for 2025

Investar Holding Corporation, a financial holding company headquartered in Baton Rouge, Louisiana, reported total assets of $2.8 billion, net loans of $2.1 billion, and total deposits of $2.4 billion as of December 31, 2025. The company's net income available to common shareholders for the year ended December 31, 2025, was $21.8 million, resulting in diluted earnings per common share of $2.13. This represents a $1.6 million, or 7.9%, increase in net income available to common shareholders compared to the previous year. The company's strategy focuses on consistent, quality earnings through the optimization of its balance sheet by originating and renewing high-quality, primarily variable-rate, loans and allowing higher-risk credit relationships to run off.

The company's financial performance in 2025 showed significant improvements in key areas. Net interest income increased by 15.8% to $80.8 million, and the net interest margin expanded by 44 basis points to 3.07%. The return on average assets also increased from 0.73% to 0.83%. However, the return on average common equity decreased slightly from 8.60% to 8.45%. The company's book value per common share increased by 12.5% to $27.63. The company also experienced a $3.4 million reversal of credit losses, compared to a $3.5 million reversal in the previous year.

Strategic developments for Investar included the acquisition of Wichita Falls Bancshares, Inc. (WFB) on January 1, 2026, for an aggregate transaction value of $112.9 million. In connection with the WFB transaction, the company completed a private placement of Series A Preferred Stock, generating net proceeds of $30.4 million. These funds were earmarked to support the acquisition and for general corporate purposes, including organic growth and other potential acquisitions. The company also continued to execute its strategy of optimizing its balance sheet, with variable-rate loans increasing to 38% of total loans.

Operationally, Investar saw a 2.4% increase in total loans, reaching $2.18 billion. Total deposits remained relatively stable at $2.35 billion, with a notable increase in noninterest-bearing deposits. The company continued to manage its capital resources, repurchasing shares of its common stock and increasing dividends. As of December 31, 2025, the company and the bank were in compliance with all applicable minimum regulatory capital requirements, including the capital conservation buffer. The bank was categorized as well-capitalized under the prompt corrective action framework. The company anticipates that its strategy of balance sheet optimization and strategic acquisitions will continue to drive growth and profitability in the future.