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BATON ROUGE - On Monday, Investar Holding Corporation (NASDAQ:ISTR), the parent company of Investar Bank, reported third-quarter earnings that exceeded analyst expectations, driven by improved net interest margin and loan growth.
The Louisiana-based bank posted adjusted earnings per share of $0.54 for the third quarter, surpassing the analyst consensus of $0.46. Revenue reached $24.14 million, above the consensus estimate of $22.5 million. Net income available to common shareholders was $5.7 million, up from $4.5 million in the second quarter and slightly higher than the $5.4 million reported in the same quarter last year.
The bank’s net interest margin improved significantly to 3.16%, a 13 basis point increase from the previous quarter and 49 basis points higher than the third quarter of 2024. This improvement came as the company continued to optimize its balance sheet by growing 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 increased 2.1% (8.4% annualized) to $2.15 billion, with new business primarily in variable-rate loans at a blended interest rate of 7.5%. The bank’s efficiency ratio improved to 68.47% from 74.99% in the previous quarter.
The bank maintained solid credit quality with nonperforming loans comprising just 0.36% of total loans. Tangible book value per common share increased to $22.76, up 4.4% from the previous quarter.
Investar also provided an update on its pending acquisition of Wichita Falls Bancshares, which is expected to close around January 1, 2026, pending regulatory and shareholder approvals. The company completed a private placement of preferred stock in July, raising $32.5 million to support the acquisition.
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