Investar (ISTR) Q4 2025 earnings summary

Executive summary

• Completed acquisition of Wichita Falls Bancshares, Inc. on January 1, 2026, expanding into north Dallas and Wichita Falls markets and adding $1.2 billion in assets.

• Executed a private placement of $32.5 million in Series A Preferred Stock to support the acquisition and future growth.

• Net income available to common shareholders was $5.4 million ($0.51 per diluted share) for Q4 2025, down from $5.7 million in Q3 2025 and $6.1 million in Q4 2024.

• Core diluted EPS was $0.58, up from $0.54 in Q3 2025 but down from $0.65 in Q4 2024.

• Continued focus on balance sheet optimization, digital transformation, and disciplined capital allocation.

Financial highlights

• Net interest margin improved to 3.20% in Q4 2025 from 3.16% in Q3 2025, up 55 bps year-over-year.

• Book value per common share rose to $27.63 at year-end 2025, up 12.5% year-over-year.

• Tangible book value per common share increased to $23.42, up 15.3% year-over-year.

• Total loans grew $25.5 million to $2.18 billion in Q4 2025; business lending portfolio up 3.1% sequentially and 8.1% year-over-year.

• Diluted EPS for Q4 2025 was $0.51, down from $0.54 in Q3; core diluted EPS rose to $0.58 from $0.54.

Outlook and guidance

• Liability-sensitive balance sheet positioned to benefit from further rate cuts.

• 76% of legacy retail CDs to reprice in the next two quarters, providing flexibility in funding costs.

• Continued focus on high-quality loan origination, digital initiatives, and cost control in a declining rate environment.

• Emphasis on organic growth and shareholder value creation.