Investar Exceeds Q2 Earnings Estimates, Analysts Predict 18% Upside

Investar Holding Corp (ISTR) exceeded Q2 earnings expectations with a Non-GAAP EPS of $0.47, surpassing consensus estimates by $0.09. Revenue increased 11.6% YoY to $22.27 million, exceeding expectations by $1.12 million. Analysts project an 18.02% upside with an average target price of $25.92. However, GuruFocus' GF Value estimate suggests a potential downside of 16.58% from the current price of $21.96.

Investar Holding Corp (ISTR) reported its second-quarter (Q2) 2025 results, surpassing analysts' expectations with a Non-GAAP EPS of $0.47, which was $0.09 higher than the consensus estimate of $0.38. The company's revenue increased by 11.6% year-over-year (YoY) to $22.27 million, exceeding expectations by $1.12 million. Analysts project an 18.02% upside with an average target price of $25.92, but GuruFocus' GF Value estimate suggests a potential downside of 16.58% from the current price of $21.96.

The company's net income for the quarter ended June 30, 2025, was $4.5 million, or $0.46 per diluted common share, compared to $6.3 million, or $0.63 per diluted common share, for the same period last year. Core earnings per diluted common share for the second quarter of 2025 were $0.47 compared to $0.65 for the first quarter of 2025, and $0.36 for the second quarter of 2024.

Investar's President and Chief Executive Officer, John D'Angelo, commented on the results: "I am excited about our second quarter results as we continued to execute on our strategy of consistent, quality earnings through the optimization of our balance sheet. As a result of this strategy, our net interest margin improved substantially to 3.03%, a 16 basis point increase from the previous quarter. For the second consecutive quarter, we significantly reduced our funding costs while simultaneously growing the yield on interest-earning assets."

The company's efficiency ratio improved to 74.99% for the quarter ended June 30, 2025, compared to 79.77% for the quarter ended March 31, 2025, indicating improved operational efficiency. Credit quality remained solid with nonperforming loans comprising 0.36% of total loans at June 30, 2025, compared to 0.27% at March 31, 2025.

Investar also announced a definitive agreement to acquire Wichita Falls Bancshares, Inc., the holding company for First National Bank, a bank in the north Dallas market. This acquisition aligns with Investar's long-term strategy of growth through acquisitions and expansion into new markets. The combined bank will have over $4 billion in assets after closing, which is more than a strategic move; it's a powerful alignment of values and purpose.

On July 1, 2025, Investar completed a private placement of 32,500 shares of its newly designated 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock with selected institutional and other accredited investors at a price of $1,000 per share, for aggregate gross proceeds of $32.5 million. The company intends to use the net proceeds from the offering to support the acquisition of Wichita Falls and for general corporate purposes, including organic growth and other potential acquisitions.

Investar repurchased 36,065 shares of its common stock through its stock repurchase program at an average price of $17.36 during the quarter ended June 30, 2025, leaving 424,588 shares authorized for repurchase under the program at June 30, 2025.

References:
[1] https://www.streetinsider.com/ACCESS+Newswire/Investar+Holding+Corporation+Announces+2025+Second+Quarter+Results/25072341.html