Investar Holding Corporation reported financial results for the quarter ended June 30, 2026, with adjusted earnings per share of $0.75 beating analyst estimates of $0.71. Sales for the period reached $36.547 million, surpassing the expected $36.350 million. Net income available to common shareholders was $8.9 million, or $0.61 per diluted common share, compared to $11.5 million, or $0.77 per diluted common share, for the quarter ended March 31, 2026. The prior quarter's results included a $2.1 million reversal of credit losses.

Key Financial Highlights

The following table summarizes key performance metrics for the reported periods:

Net Interest Income and Margin

Net interest income for the second quarter of 2026 totaled $33.4 million, an increase of $0.8 million, or 2.4%, compared to the first quarter of 2026, and an increase of $13.8 million, or 70.3%, compared to the second quarter of 2025. Net interest margin improved eight basis points to 3.67% for the quarter ended June 30, 2026, driven by a nine basis point decrease in the overall cost of funds to 2.31%. The overall cost of deposits decreased 11 basis points to 2.19%.

Loans and Deposits

Total loans were $3.06 billion at June 30, 2026, a decrease of $7.9 million, or 0.3%, compared to March 31, 2026, and an increase of $953.5 million, or 45.3%, compared to June 30, 2025. Excluding loans acquired from Wichita Falls Bancshares, Inc. ("WFB"), total loans increased by $56.0 million, or 2.6%, to $2.21 billion. Total deposits at June 30, 2026 were $3.21 billion, a decrease of $18.9 million, or 0.6%, compared to March 31, 2026.

Credit Quality

Nonperforming loans improved to $19.4 million, or 0.63% of total loans, at June 30, 2026, compared to $20.4 million, or 0.66% of total loans, at March 31, 2026. The allowance for credit losses was $36.3 million, or 1.18% of total loans. A provision for credit losses of $0.3 million was recorded for the quarter ended June 30, 2026, compared to a reversal of credit losses of $2.1 million in the prior quarter.

Capital and Dividends

Stockholders' equity was $420.1 million at June 30, 2026. The regulatory total capital ratio increased to 14.99%. Investar increased quarterly common stock dividends declared by 9% to $0.12 per common share. During the second quarter of 2026, the company repurchased 27,235 shares of its common stock at an average price of $27.68 per share.

Investar Holding Corporation has increased its quarterly cash dividend by 9% to $0.12 per share for holders of its common stock. The dividend is payable on July 31, 2026 to shareholders of record as of June 30, 2026. This marks the 51st quarterly dividend paid by the company, following 11 uninterrupted quarterly cash dividends paid by its subsidiary, Investar Bank, National Association.

Additionally, the company declared a quarterly cash dividend of $16.25 per share for holders of its 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock. This represents the full quarterly dividend of 1.625% based on the per annum rate of 6.5%. The preferred dividend is payable on July 1, 2026 to shareholders of record as of June 15, 2026.

Dividend Details

Investar Holding Corporation is the holding company for Investar Bank, National Association. Headquartered in Baton Rouge, Louisiana, the bank operates 36 branch locations across Louisiana, Texas, and Alabama. As of March 31, 2026, the bank reported total assets of $3.9 billion and 431 full-time equivalent employees.