Investar (ISTR) Q2 2026 earnings summary

Executive summary

• Net interest margin rose to 3.67% in Q2 2026, up 8 basis points from Q1 2026, reflecting improved funding costs and balance sheet optimization.

• Diluted EPS was $0.61 for Q2 2026, down from $0.77 in Q1 2026; core diluted EPS was $0.75, down from $0.87, with Q1 including a $2.1M credit loss reversal.

• Net income available to common shareholders was $9.47M in Q2 2026, down from $11.5M in Q1 2026, but up from $4.5M in Q2 2025.

• Operational conversion of Wichita Falls Bancshares completed in May 2026, supporting strategic growth.

• Eight commercial bankers hired in H1 2026 to drive business lending growth in Texas and Louisiana.

Financial highlights

• Net interest income rose to $33.4M, up 2.4% sequentially and 70.3% year-over-year.

• Return on average assets was 0.98% (core: 1.21%) in Q2 2026, compared to 1.25% (core: 1.41%) in Q1 2026.

• Book value per common share increased to $28.29; tangible book value per share rose to $23.09 at June 30, 2026.

• Total loans were $3.06B at June 30, 2026; excluding WFB-acquired loans, loans grew 2.6% sequentially.

• Business lending portfolio grew 3.8% sequentially and 21.9% year-over-year to $1.21B.

Outlook and guidance

• Focus remains on organic and acquisition-driven growth, capital building, and disciplined share repurchases.

• Strategy includes reducing wholesale funding and optimizing the loan portfolio toward higher-yielding commercial loans.

• Continued digital transformation and branch/ATM footprint optimization.