Investar Holding Corporation Reports Increase in Total Assets and Net Income for First Half of 2025

Investar Holding Corporation reported a modest increase in total assets, rising to $2.75 billion as of June 30, 2025, compared to $2.72 billion at the end of 2024. The company achieved net income of $10.8 million, or $1.09 per diluted share, for the first half of 2025, marking an increase from $8.8 million, or $0.89 per diluted share, in the same period of the previous year. The growth in net income was primarily driven by a 10.4% increase in net interest income, which reached $38.0 million, attributed to a decrease in interest expenses despite a slight decline in interest income.

The company’s loan portfolio decreased by $18.7 million, or 0.9%, to $2.11 billion, reflecting a strategic focus on optimizing the balance sheet and exiting higher-risk credit relationships. Nonperforming loans improved slightly, accounting for 0.36% of total loans, down from 0.42% at the end of 2024. The allowance for credit losses remained stable at $26.6 million, with a negative provision for credit losses of $3.5 million recorded, largely due to recoveries from previously charged-off loans related to Hurricane Ida.

In terms of operational developments, Investar announced a definitive agreement to acquire Wichita Falls Bancshares, Inc. on July 1, 2025. This acquisition, valued at approximately $83.6 million, will expand Investar's footprint in Texas, adding seven branches and two mortgage offices. The company also completed a private placement of 32,500 shares of Series A Preferred Stock, raising $32.5 million to support the acquisition and general corporate purposes.

The company’s total deposits decreased by $7.8 million, or 0.3%, to $2.34 billion, although excluding brokered demand deposits, total deposits increased by 1.7%. Noninterest-bearing deposits rose by 3.8% to $448.5 million. The net interest margin improved to 2.95% for the first half of 2025, up from 2.61% in the same period last year, reflecting a favorable shift in the cost of funds and yield on interest-earning assets. Looking ahead, Investar remains focused on maintaining its capital ratios and optimizing its balance sheet while navigating the challenges posed by the current economic environment.