Investar (ISTR) Q3 2025 earnings summary

Executive summary

• Announced definitive agreement to acquire Wichita Falls Bancshares, Inc. (WFB), a Texas-based bank with $1.4B in assets, with closing expected around January 1, 2026, pending regulatory and shareholder approvals.

• Completed $32.5M private placement of Series A Preferred Stock to support the WFB acquisition and future growth initiatives.

• Net income available to common shareholders was $5.7M ($0.54 per diluted share) for Q3 2025, up from $4.5M ($0.46) in Q2 2025 and $5.4M ($0.54) in Q3 2024.

• Total assets grew 2.9% to $2.80B at September 30, 2025, driven by organic loan and deposit growth and increased investment securities.

• Regulatory capital ratios remained strong, with the bank considered "well-capitalized" under FDIC regulations.

Financial highlights

• Diluted EPS rose to $0.54 in Q3 2025 from $0.46 in Q2 2025; core diluted EPS also $0.54, up from $0.47.

• Net interest margin improved to 3.16% in Q3 2025 from 3.03% in Q2 2025 and 2.67% in Q3 2024.

• Net interest income for Q3 2025 was $21.2M, up 7.7% from Q2 2025 and 18.5% year-over-year.

• Book value per common share reached $26.96, and tangible book value per share was $22.76 at September 30, 2025.

• Return on average assets increased to 0.88% in Q3 2025 from 0.66% in Q2 2025.

Outlook and guidance

• Anticipates closing the Wichita Falls acquisition on or about January 1, 2026, subject to remaining approvals.

• Management continues to focus on balance sheet optimization, organic growth, and strategic acquisitions.

• Expects 84% of retail CD portfolio to reprice over the next two quarters, and 91% over the next three quarters.

• The Series A Preferred Stock issuance is intended to support the WFB acquisition and future growth initiatives.