Investar Holding Corporation (NASDAQ:ISTR), parent company of Investar Bank, reported stronger-than-expected third-quarter earnings on Monday, boosted by improved net interest margin and steady loan growth.
The Louisiana-based lender posted adjusted earnings of $0.54 per share, beating analyst forecasts of $0.46. Revenue came in at $24.14 million, ahead of the $22.5 million consensus estimate. Net income attributable to common shareholders rose to $5.7 million, compared with $4.5 million in the prior quarter and $5.4 million a year earlier.
Net interest margin climbed to 3.16%, up 13 basis points from the second quarter and 49 basis points higher than Q3 2024. This gain reflected the bank’s strategy of increasing higher-yielding assets while reducing funding costs.
“I am very pleased with our third quarter results as we continued to execute on our strategy of consistent, quality earnings through the optimization of our balance sheet,” said John D’Angelo, Investar’s President and Chief Executive Officer.
Total loans expanded by 2.1% quarter over quarter (8.4% annualized) to $2.15 billion, with new activity focused primarily on variable-rate loans carrying a 7.5% blended interest rate. The bank’s efficiency ratio improved to 68.47%, down from 74.99% in the previous quarter.
Credit quality remained strong, with nonperforming loans accounting for just 0.36% of total loans. Tangible book value per share rose 4.4% to $22.76.
Investar also offered an update on its planned acquisition of Wichita Falls Bancshares, which is on track to close around January 1, 2026, pending regulatory and shareholder approval. To support the deal, the bank raised $32.5 million through a preferred stock private placement completed in July.
Investar Holding Corporation stock price
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