8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 22, 2024

Investar Holding Corporation

(Exact name of registrant as specified in its charter)

Louisiana	001-36522	27-1560715
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

10500 Coursey Blvd.

Baton Rouge, Louisiana 70816

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (225) 227-2222

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, $1.00 par value per share	ISTR	The Nasdaq Global Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On July 22, 2024, Investar Holding Corporation (the “Company”), the holding company of Investar Bank, National Association (the “Bank”), issued a press release reporting second quarter 2024 results and posted on its website its second quarter 2024 earnings release and investor presentation. The materials contain forward-looking statements regarding the Company and include a cautionary note identifying important factors that could cause actual results to differ materially from those anticipated. Copies of the earnings release and investor presentation are furnished as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K.

The information contained in Item 2.02, including Exhibit 99.1 and Exhibit 99.2 of this Current Report, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit Number	Description of Exhibit
99.1	Earnings release of Investar Holding Corporation dated July 22, 2024, announcing financial results for the quarter ended June 30, 2024
99.2	Investor presentation dated July 22, 2024
104	The cover page of Investar Holding Corporation’s Form 8-K is formatted in Inline XBRL

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	INVESTAR HOLDING CORPORATION
Date: July 22, 2024	By:	/s/ John J. D’Angelo
		John J. D’Angelo
		President and Chief Executive Officer

EX-99.1

Exhibit 99.1

For Immediate Release

Investar Holding Corporation Announces 2024 Second Quarter Results 

BATON ROUGE, LA / ACCESSWIRE / July 22, 2024 / Investar Holding Corporation (“Investar”) (NASDAQ:ISTR), the holding company for Investar Bank, National Association (the “Bank”), today announced financial results for the quarter ended June 30, 2024. Investar reported net income of $4.1 million, or $0.41 per diluted common share, for the second quarter of 2024, compared to net income of $4.7 million, or $0.48 per diluted common share, for the quarter ended March 31, 2024, and net income of $6.5 million, or $0.67 per diluted common share, for the quarter ended June 30, 2023.

On a non-GAAP basis, core earnings per diluted common share for the second quarter of 2024 were $0.36 compared to $0.43 for the first quarter of 2024, and $0.67 for the second quarter of 2023. Core earnings exclude certain items including, but not limited to, loss on call or sale of investment securities, net, (gain) loss on sale or disposition of fixed assets, net, gain on sale of other real estate owned, net, change in the fair value of equity securities, write down of other real estate owned, and gain on early extinguishment of subordinated debt (refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics).

Investar’s President and Chief Executive Officer John D’Angelo commented:

“I am excited about our second quarter results as we continued to execute our strategy of consistent, quality earnings through the optimization of our balance sheet. Despite the higher for longer rate environment, our net interest margin expanded for the second consecutive quarter to 2.62% as we remained focused on originating higher yielding loans and securing lower cost funding sources that are accretive to our margin. During the second quarter we originated and renewed loans, 80% of which were variable-rate loans, at an 8.6% blended interest rate. 

We remain inwardly focused on controlling the things that we can control. We are originating high quality loans and allowing higher risk credit relationships to run off. As a result, credit quality remained very solid as nonperforming loans represented only 0.23% of total loans. Additionally, we repurchased $7.0 million in principal amount of subordinated debt at a significant discount to par and recognized a gain of $0.3 million while maintaining a strong capital position. 

Finally, I could not be more excited about the future of Investar. Our team has exhibited remarkable resilience as we have proactively managed through a difficult and uncertain economic environment. Our liability sensitive balance sheet and efforts to optimize our asset mix strategically position us to benefit from a more favorable interest rate environment. Additionally, we have begun to reinvest in geographic areas, particularly our Texas markets, with long-term growth potential, as part of our strategy to remix and strengthen our balance sheet and improve GAAP and core metrics in the coming years.

As always, we remain focused on shareholder value and returning capital to shareholders. We repurchased 6,096 shares of our common stock during the second quarter at an average price of $15.25 per share.”

Second Quarter Highlights

• Net interest margin improved to 2.62% for the quarter ended June 30, 2024 compared to 2.59% for the quarter ended March 31, 2024.

• Credit quality continued to strengthen with nonperforming loans improving to 0.23% of total loans at June 30, 2024 compared to 0.26% at March 31, 2024.

• Consistent with our strategy of optimizing the balance sheet, total loans decreased $13.8 million, or 0.6%, to $2.17 billion at June 30, 2024, compared to $2.18 billion at March 31, 2024.

• Variable-rate loans as a percentage of total loans improved to 30% at June 30, 2024 compared to 28% at March 31, 2024. During the second quarter, we originated and renewed loans, 80% of which were variable-rate loans, at an 8.6% blended interest rate.

• The yield on the loan portfolio increased to 5.96% for the quarter ended June 30, 2024 compared to 5.89% for the quarter ended March 31, 2024.

• Book value per common share increased to $23.42 at June 30, 2024, or 0.9%, compared to $23.21 at March 31, 2024. Tangible book value per common share increased to $19.15 at June 30, 2024, or 1.3%, compared to $18.90 at March 31, 2024.

• Investar repurchased $5.0 million in principal amount of our 5.125% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “2029 Notes”) and $2.0 million of our 5.125% Fixed-to-Floating Rate Subordinated Notes due 2032 (the “2032 Notes”) and recognized a gain on early extinguishment of subordinated debt of $0.3 million.

• Investar sold other real estate owned with a cost basis of $1.0 million related to one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida and recognized a gain of $0.7 million during the quarter ended June 30, 2024.

• Investar repurchased 6,096 shares of its common stock through its stock repurchase program at an average price of $15.25 per share during the quarter ended June 30, 2024, leaving 497,645 shares authorized for repurchase under the program at June 30, 2024.

Loans

Total loans were $2.17 billion at June 30, 2024, a decrease of $13.8 million, or 0.6%, compared to March 31, 2024, and an increase of $81.9 million, or 3.9%, compared to June 30, 2023.

The following table sets forth the composition of the total loan portfolio as of the dates indicated (dollars in thousands).

							Linked Quarter Change						Year/Year Change						Percentage of Total Loans
	6/30/2024		3/31/2024		6/30/2023		$			%			$			%			6/30/2024			6/30/2023
Mortgage loans on real estate
Construction and development	$	177,840	$	173,511	$	197,850	$	4,329			2.5	%	$	(20,010	)		(10.1	)%		8.2	%		9.4	%
1-4 Family		414,756		414,480		414,380		276			0.1			376			0.1			19.1			19.9
Multifamily		104,269		105,124		80,424		(855	)		(0.8	)		23,845			29.6			4.8			3.9
Farmland		7,542		7,539		8,434		3			0.0			(892	)		(10.6	)		0.4			0.4
Commercial real estate
Owner-occupied		453,456		453,414		441,393		42			0.0			12,063			2.7			20.9			21.2
Nonowner-occupied		489,984		495,844		530,820		(5,860	)		(1.2	)		(40,836	)		(7.7	)		22.6			25.4
Commercial and industrial		507,822		518,969		399,488		(11,147	)		(2.1	)		108,334			27.1			23.5			19.2
Consumer		11,090		11,697		12,074		(607	)		(5.2	)		(984	)		(8.1	)		0.5			0.6
Total loans	$	2,166,759	$	2,180,578	$	2,084,863	$	(13,819	)		(0.6	)%	$	81,896			3.9	%		100	%		100	%

At June 30, 2024, the Bank’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $961.3 million, a decrease of $11.1 million, or 1.1%, compared to $972.4 million at March 31, 2024, and an increase of $120.4 million, or 14.3%, compared to $840.9 million at June 30, 2023. The decrease in the business lending portfolio compared to March 31, 2024 is primarily driven by loan amortization, partially offset by conversions of construction and development loans to owner-occupied loans upon completion of construction. The increase in the business lending portfolio compared to June 30, 2023 is primarily driven by our purchase of commercial and industrial revolving lines of credit with an unpaid principal balance of $162.7 million in the second half of 2023, partially offset by loan amortization.

Nonowner-occupied loans totaled $490.0 million at June 30, 2024, a decrease of $5.9 million, or 1.2%, compared to $495.8 million at March 31, 2024, and a decrease of $40.8 million, or 7.7%, compared to $530.8 million at June 30, 2023. The decrease in nonowner-occupied loans compared to March 31, 2024 is primarily due to loan amortization, partially offset by conversions of construction and development loans to nonowner-occupied loans upon completion of construction. The decrease in nonowner-occupied loans compared to June 30, 2023 is primarily due to a reclassification during the third quarter of 2023 of approximately $24.1 million nonowner-occupied loans to multifamily loans due to a change in the primary use of the property and loan amortization. 

Construction and development loans totaled $177.8 million at June 30, 2024, an increase of $4.3 million, or 2.5%, compared to $173.5 million at March 31, 2024, and a decrease of $20.0 million, or 10.1%, compared to $197.9 million at June 30, 2023. The increase in construction and development loans compared to March 31, 2024 is primarily due to utilization of credit lines, partially offset by conversions to permanent loans upon completion of construction. The decrease in construction and development loans compared to June 30, 2023 is primarily due to conversions to permanent loans upon completion of construction.

Credit Quality

Nonperforming loans were $5.0 million, or 0.23% of total loans, at June 30, 2024, a decrease of $0.6 million compared to $5.6 million, or 0.26% of total loans, at March 31, 2024, and a decrease of $2.0 million compared to $7.0 million, or 0.34% of total loans, at June 30, 2023. The decrease in nonperforming loans compared to March 31, 2024 is mainly attributable to paydowns. 

The allowance for credit losses was $28.6 million, or 576.4% and 1.32% of nonperforming and total loans, respectively, at June 30, 2024, compared to $29.1 million, or 515.4% and 1.34% of nonperforming and total loans, respectively, at March 31, 2024, and $30.0 million, or 429.6% and 1.44% of nonperforming and total loans, respectively, at June 30, 2023. 

Investar recorded a negative provision for credit losses of $0.4 million for the quarter ended June 30, 2024 compared to negative provisions for credit losses of $1.4 million and $2.8 million for the quarters ended March 31, 2024 and June 30, 2023, respectively. The negative provision for credit losses in the quarter ended June 30, 2024 was primarily due to a decrease in total loans and aging of existing loans. The negative provision for credit losses in the quarter ended March 31, 2024 was primarily due to a decrease in total loans, aging of existing loans, and, to a lesser extent, the completion of our annual current expected credit loss allowance model recalibration. The negative provision for credit losses for the quarter ended June 30, 2023 was driven by net recoveries of $2.4 million, primarily attributable to recoveries on one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida, and a decrease in total loans.

Deposits

Total deposits at June 30, 2024 were $2.21 billion, an increase of $2.4 million, or 0.1%, compared to $2.21 billion at March 31, 2024, and an increase of $29.3 million, or 1.3%, compared to $2.18 billion at June 30, 2023. 

The following table sets forth the composition of deposits as of the dates indicated (dollars in thousands).

							Linked Quarter Change						Year/Year Change						Percentage of Total Deposits
	6/30/2024		3/31/2024		6/30/2023		$			%			$			%			6/30/2024			6/30/2023
Noninterest-bearing demand deposits	$	436,571	$	435,397	$	488,311	$	1,174			0.3	%	$	(51,740	)		(10.6	)%		19.8	%		22.4	%
Interest-bearing demand deposits		467,184		502,818		514,501		(35,634	)		(7.1	)		(47,317	)		(9.2	)		21.1			23.6
Money market deposits		177,191		171,113		158,984		6,078			3.6			18,207			11.5			8.0			7.3
Savings deposits		128,583		132,449		125,442		(3,866	)		(2.9	)		3,141			2.5			5.8			5.8
Brokered time deposits		249,354		237,850		153,365		11,504			4.8			95,989			62.6			11.3			7.0
Time deposits		751,319		728,201		740,250		23,118			3.2			11,069			1.5			34.0			33.9
Total deposits	$	2,210,202	$	2,207,828	$	2,180,853	$	2,374			0.1	%	$	29,349			1.3	%		100	%		100	%

The decrease in interest-bearing demand deposits and savings deposits at June 30, 2024 compared to March 31, 2024 is primarily due to customers drawing down on their existing deposit accounts. The increase in time deposits and money market deposits at June 30, 2024 compared to March 31, 2024 is primarily the result of organic growth resulting from a deposit campaign. Brokered time deposits increased to $249.4 million at June 30, 2024 from $237.9 million at March 31, 2024. Investar utilizes brokered time deposits, entirely in denominations of less than $250,000, to secure fixed cost funding and reduce short-term borrowings. At June 30, 2024, the balance of brokered time deposits remained below 10% of total assets, and the remaining weighted average duration was approximately 11 months with a weighted average rate of 5.19%. 

The decrease in noninterest-bearing demand deposits and interest-bearing demand deposits at June 30, 2024 compared to June 30, 2023 is primarily due to customers drawing down on their existing deposit accounts and shifts into interest-bearing deposit products with higher rates. The increase in time deposits, money market deposits, and savings deposits at June 30, 2024 compared to June 30, 2023 is primarily the result of organic growth resulting from a deposit campaign. Brokered time deposits increased to $249.4 million at June 30, 2024 from $153.4 million at June 30, 2023. We utilized shorter term brokered time deposits, which were laddered to provide flexibility, to fund a portion of the purchase of commercial and industrial revolving lines of credit with an unpaid principal balance of $162.7 million in the second half of 2023.

Stockholders’ Equity

Stockholders’ equity was $230.2 million at June 30, 2024, an increase of $3.2 million compared to March 31, 2024, and an increase of $11.8 million compared to June 30, 2023. The increase in stockholders’ equity compared to March 31, 2024 is primarily attributable to net income for the quarter, partially offset by an increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank’s available for sale securities portfolio. The increase in stockholders’ equity compared to June 30, 2023 is primarily attributable to net income for the last twelve months.

Net Interest Income

Net interest income for the second quarter of 2024 totaled $17.2 million, a decrease of $18,000, or 0.1%, compared to the first quarter of 2024, and a decrease of $1.2 million, or 6.5%, compared to the second quarter of 2023. Total interest income was $35.8 million, $35.7 million and $32.4 million for the quarters ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively. Total interest expense was $18.6 million, $18.5 million and $14.0 million for the corresponding periods. Included in net interest income for the quarters ended June 30, 2024, March 31, 2024 and June 30, 2023 is $18,000, $19,000, and $47,000, respectively, of interest income accretion from the acquisition of loans. Also included in net interest income for the quarters ended June 30, 2024 and March 31, 2024 are interest recoveries of $44,000 and $21,000, respectively. There were no interest recoveries during the quarter ended June 30, 2023. 

Investar’s net interest margin was 2.62% for the quarter ended June 30, 2024, compared to 2.59% for the quarter ended March 31, 2024 and 2.82% for the quarter ended June 30, 2023. The increase in net interest margin for the quarter ended June 30, 2024 compared to the quarter ended March 31, 2024 was driven by a seven basis point increase in the yield on interest-earning assets, partially offset by a seven basis point increase in the overall cost of funds. The decrease in net interest margin for the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023 was driven by a 79 basis point increase in the overall cost of funds, partially offset by a 47 basis point increase in the yield on interest-earning assets.

The yield on interest-earning assets was 5.45% for the quarter ended June 30, 2024, compared to 5.38% for the quarter ended March 31, 2024 and 4.98% for the quarter ended June 30, 2023. The increase in the yield on interest-earning assets compared to the quarter ended March 31, 2024 was primarily attributable to a seven basis point increase in the yield on the loan portfolio. The increase in the yield on interest-earning assets compared to the quarter ended June 30, 2023 was primarily driven by a 52 basis point increase in the yield on the loan portfolio, partially offset by an eight basis point decrease in the yield on the taxable securities portfolio.

Exclusive of the interest income accretion from the acquisition of loans and interest recoveries, adjusted net interest margin was 2.61% for the quarter ended June 30, 2024, compared to 2.59% for the quarter ended March 31, 2024 and 2.82% for the quarter ended June 30, 2023. The adjusted yield on interest-earning assets was 5.44% for the quarter ended June 30, 2024 compared to 5.38% and 4.97% for the quarters ended March 31, 2024 and June 30, 2023, respectively. Refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics.

The cost of deposits increased seven basis points to 3.38% for the quarter ended June 30, 2024 compared to 3.31% for the quarter ended March 31, 2024 and increased 107 basis points compared to 2.31% for the quarter ended June 30, 2023. The increase in the cost of deposits compared to the quarter ended March 31, 2024 resulted primarily from both a higher average balance of, and an increase in rates paid on, time deposits, partially offset by lower average balances of interest-bearing demand deposits and brokered time deposits. The increase in the cost of deposits compared to the quarter ended June 30, 2023 resulted from both a higher average balance of, and an increase in rates paid on, time deposits and brokered time deposits and an increase in rates paid on interest-bearing demand deposits and savings deposits, partially offset by a lower average balance of interest-bearing demand deposits. 

The cost of short-term borrowings increased two basis points to 4.68% for the quarter ended June 30, 2024 compared to 4.66% for the quarter ended March 31, 2024 and decreased 41 basis points compared to 5.09% for the quarter ended June 30, 2023. Beginning in the second quarter of 2023, the Bank began utilizing the Federal Reserve’s Bank Term Funding Program (“BTFP”) to secure fixed rate funding for up to a one-year term and reduce short-term Federal Home Loan Bank (“FHLB”) advances, which are priced daily. The Bank utilized this source of funding due to its lower rate as compared to FHLB advances, the ability to prepay the obligations without penalty, and as a means to lock in funding. The increase in the cost of short-term borrowings compared to the quarter ended March 31, 2024 resulted primarily from utilization of FHLB advances during the quarter ended June 30, 2024, partially offset by the refinancing of borrowings under the BTFP at lower rates during the quarter ended March 31, 2024. The decrease in the cost of short-term borrowings compared to the quarter ended June 30, 2023 resulted primarily from the refinancing of borrowings under the BTFP at lower rates.

The overall cost of funds for the quarter ended June 30, 2024 increased seven basis points to 3.58% compared to 3.51% for the quarter ended March 31, 2024 and increased 79 basis points compared to 2.79% for the quarter ended June 30, 2023. The increase in the cost of funds for the quarter ended June 30, 2024 compared to the quarter ended March 31, 2024 resulted from an increase in the cost of deposits and both a higher average balance and an increase in the cost of short-term borrowings, partially offset by a lower average balance of deposits. The increase in the cost of funds for the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023 resulted from both a higher average balance and an increase in the cost of deposits, partially offset by both a lower average balance and a decrease in the cost of short-term borrowings.

Noninterest Income

Noninterest income for the second quarter of 2024 totaled $2.8 million, an increase of $2,000, or 0.1%, compared to the first quarter of 2024 and an increase of $0.7 million, or 32.9%, compared to the second quarter of 2023.

The increase in noninterest income compared to the quarter ended March 31, 2024 is driven by a $0.7 million increase in gain on sale of other real estate owned and a $0.1 million increase in other operating income, partially offset by $0.4 million decrease in gain on sale or disposition of fixed assets and a $0.4 million increase in loss on call or sale of investment securities. The increase in the gain on sale of other real estate owned resulted primarily from the sale of a property during the second quarter of 2024 related to one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida. The decrease in gain on sale or disposition of fixed assets resulted from the closure of one branch in the Alabama market during the first quarter of 2024. The increase in other operating income is primarily attributable to a $0.2 million increase in derivative fee income, partially offset by a $0.1 million decrease in the change in the net asset value of other investments.

The increase in noninterest income compared to the quarter ended June 30, 2023 is primarily attributable to a $0.7 million increase in gain on sale of other real estate owned, a $0.1 million increase in income from bank owned life insurance, a $0.1 million increase in the change in fair value of equity securities, a $0.1 million increase in the gain on sale or disposition of fixed assets, and a $0.1 million increase in other operating income, partially offset by a $0.4 million increase in loss on call or sale of investment securities. The increase in other operating income is primarily attributable to a $0.2 million increase in derivative fee income, partially offset by $0.1 million decrease in the change in the net asset value of other investments and a $0.1 million decrease in distributions from investments. 

Noninterest Expense

Noninterest expense for the second quarter of 2024 totaled $15.5 million, an increase of $0.2 million, or 1.2%, compared to the first quarter of 2024, and an increase of $0.2 million, or 1.5%, compared to the second quarter of 2023. 

The increase in noninterest expense for the quarter ended June 30, 2024 compared to the quarter ended March 31, 2024 was primarily driven by a $0.3 million increase in salaries and employee benefits, a $0.1 million increase in occupancy expense, and a $0.1 million increase in professional fees, partially offset by a $0.1 million increase in gain on early extinguishment of subordinated debt and a $0.2 million decrease in other operating expense. The increase in salaries and employee benefits is primarily due to investment in people including with an emphasis on our Texas markets to remix and strengthen our balance sheet. The increase in occupancy expense is primarily due to higher maintenance costs. The decrease in other operating expense resulted from a $0.2 million decrease in Federal Deposit Insurance Corporation (“FDIC”) assessments and a $0.2 million write down of other real estate owned related to a former branch location during the first quarter of 2024, partially offset by a $0.1 million increase in collection and repossession expenses and a $0.1 million increase in branch services expense.

The increase in noninterest expense for the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023 was primarily driven by a $0.2 million increase in salaries and employee benefits, a $0.1 million increase in data processing, a $0.1 million increase in professional fees, and a $0.2 million increase in other operating expense, partially offset by a $0.3 million increase in gain on early extinguishment of subordinated debt and a $0.1 million decrease in depreciation and amortization. The increase in salaries and employee benefits is primarily due to higher salaries expense and deferred compensation expense, partially offset by a decrease in health insurance claims. The gain on early extinguishment of subordinated debt is due to the repurchase of $5.0 million in principal amount of our 2029 Notes and $2.0 million in principal amount of our 2032 Notes during the second quarter of 2024. The decrease in depreciation and amortization is primarily due to the closure of one branch location in the first quarter of 2024. The increase in other operating expense resulted primarily from a $0.1 million increase in bank shares tax and a $0.1 million increase in collection and repossession expenses, partially offset by a $0.1 million decrease in FDIC assessments.

Taxes

Investar recorded an income tax expense of $0.8 million for the quarter ended June 30, 2024, which equates to an effective tax rate of 17.0%, compared to effective tax rates of 22.7% and 18.7% for the quarters ended March 31, 2024 and June 30, 2023, respectively. Investar surrendered approximately $8.4 million of bank owned life insurance and reinvested the proceeds in higher yielding policies during the quarter ended March 31, 2024. As a result of the restructuring, Investar incurred a $0.3 million income tax expense during the quarter ended March 31, 2024. The restructuring had an expected earn-back period of just over one year. Excluding the effect of the bank owned life insurance surrender, the effective tax rate for the quarter ended March 31, 2024 was approximately 18.0%.

Basic and Diluted Earnings Per Common Share

Investar reported basic and diluted earnings per common share of $0.41 for the quarter ended June 30, 2024, compared to basic and diluted earnings per common share of $0.48 for the quarter ended March 31, 2024, and basic and diluted earnings per common share of $0.67 for the quarter ended June 30, 2023.

About Investar Holding Corporation

Investar, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, National Association. The Bank currently operates 28 branch locations serving Louisiana, Texas, and Alabama. At June 30, 2024, the Bank had 335 full-time equivalent employees and total assets of $2.8 billion.

Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures and ratios include “tangible common equity,” “tangible assets,” “tangible equity to tangible assets,” “tangible book value per common share,” “core noninterest income,” “core earnings before noninterest expense,” “core noninterest expense,” “core earnings before income tax expense,” “core income tax expense,” “core earnings,” “core efficiency ratio,” “core return on average assets,” “core return on average equity,” “core basic earnings per share,” and “core diluted earnings per share.” We also present certain average loan, yield, net interest income and net interest margin data adjusted to show the effects of excluding interest recoveries and interest income accretion from the acquisition of loans. Management believes these non-GAAP financial measures provide information useful to investors in understanding Investar’s financial results, and Investar believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting Investar’s business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and Investar strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.

Forward-Looking and Cautionary Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Investar’s current views with respect to, among other things, future events and financial performance. Investar generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words.

Any forward-looking statements contained in this press release are based on the historical performance of Investar and its subsidiaries or on Investar’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by Investar that the future plans, estimates or expectations by Investar will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to Investar’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if Investar’s underlying assumptions prove to be incorrect, Investar’s actual results may vary materially from those indicated in these statements. Investar does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. These factors include, but are not limited to, the following, any one or more of which could materially affect the outcome of future events:

• the significant risks and uncertainties for our business, results of operations and financial condition, as well as our regulatory capital and liquidity ratios and other regulatory requirements caused by business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;

• changes in inflation, interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;

• our ability to continue to successfully execute the pivot of our near-term strategy from primarily a growth strategy to a strategy primarily focused on consistent, quality earnings through the optimization of our balance sheet, and our ability to successfully execute a long-term growth strategy;

• our ability to achieve organic loan and deposit growth, and the composition of that growth;

• a reduction in liquidity, including as a result of a reduction in the amount of deposits we hold or other sources of liquidity, which may be caused by, among other things, disruptions in the banking industry similar to those that occurred in early 2023 that caused bank depositors to move uninsured deposits to other banks or alternative investments outside the banking industry;

• our ability to identify and enter into agreements to combine with attractive acquisition candidates, finance acquisitions, complete acquisitions after definitive agreements are entered into, and successfully integrate and grow acquired operations;

• our adoption on January 1, 2023 of ASU 2016-13, and inaccuracy of the assumptions and estimates we make in establishing reserves for credit losses and other estimates;

• changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers;

• changes in the quality and composition of, and changes in unrealized losses in, our investment portfolio, including whether we may have to sell securities before their recovery of amortized cost basis and realize losses;

• the extent of continuing client demand for the high level of personalized service that is a key element of our banking approach as well as our ability to execute our strategy generally;

• our dependence on our management team, and our ability to attract and retain qualified personnel;

• the concentration of our business within our geographic areas of operation in Louisiana, Texas and Alabama;

• increasing costs of complying with new and potential future regulations;

• new or increasing geopolitical tensions, including resulting from wars in Ukraine and Israel and surrounding areas;

• the emergence or worsening of widespread public health challenges or pandemics including COVID-19;

• concentration of credit exposure;

• any deterioration in asset quality and higher loan charge-offs, and the time and effort necessary to resolve problem assets;

• fluctuations in the price of oil and natural gas;

• data processing system failures and errors;

• risks associated with our digital transformation process, including increased risks of cyberattacks and other security breaches and challenges associated with addressing the increased prevalence of artificial intelligence;

• risks of losses resulting from increased fraud attacks against us and others in the financial services industry;

• potential impairment of our goodwill and other intangible assets;

• our potential growth, including our entrance or expansion into new markets, and the need for sufficient capital to support that growth;

• the impact of litigation and other legal proceedings to which we become subject;

• competitive pressures in the commercial finance, retail banking, mortgage lending and consumer finance industries, as well as the financial resources of, and products offered by, competitors;

• the impact of changes in laws and regulations applicable to us, including banking, securities and tax laws and regulations and accounting standards, as well as changes in the interpretation of such laws and regulations by our regulators;

• changes in the scope and costs of FDIC insurance and other coverages;

• governmental monetary and fiscal policies; and

• hurricanes, tropical storms, tropical depressions, floods, winter storms, droughts and other adverse weather events, all of which have affected Investar’s market areas from time to time; other natural disasters; oil spills and other man-made disasters; acts of terrorism; other international or domestic calamities; acts of God; and other matters beyond our control.

These factors should not be construed as exhaustive. Additional information on these and other risk factors can be found in Part I Item 1A. “Risk Factors” and in the “Special Note Regarding Forward-Looking Statements” in Part II Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Investar’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission.

For further information contact:

Investar Holding Corporation

John Campbell

Executive Vice President and Chief Financial Officer

(225) 227-2215

John.Campbell@investarbank.com

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

	As of and for the three months ended
	6/30/2024			3/31/2024			6/30/2023			Linked Quarter			Year/Year
EARNINGS DATA
Total interest income	$	35,790		$	35,722		$	32,396			0.2	%		10.5	%
Total interest expense		18,592			18,506			14,009			0.5			32.7
Net interest income		17,198			17,216			18,387			(0.1	)		(6.5	)
Provision for credit losses		(415	)		(1,419	)		(2,840	)		70.8			85.4
Total noninterest income		2,750			2,748			2,070			0.1			32.9
Total noninterest expense		15,477			15,296			15,241			1.2			1.5
Income before income tax expense		4,886			6,087			8,056			(19.7	)		(39.3	)
Income tax expense		829			1,380			1,509			(39.9	)		(45.1	)
Net income	$	4,057		$	4,707		$	6,547			(13.8	)		(38.0	)
AVERAGE BALANCE SHEET DATA
Total assets	$	2,773,792		$	2,802,192		$	2,748,171			(1.0	)%		0.9	%
Total interest-earning assets		2,643,232			2,669,553			2,611,172			(1.0	)		1.2
Total loans		2,168,762			2,195,496			2,100,751			(1.2	)		3.2
Total interest-bearing deposits		1,770,985			1,805,569			1,655,506			(1.9	)		7.0
Total interest-bearing liabilities		2,090,296			2,118,746			2,013,482			(1.3	)		3.8
Total deposits		2,196,949			2,233,704			2,145,629			(1.6	)		2.4
Total stockholders’ equity		227,537			228,690			221,528			(0.5	)		2.7
PER SHARE DATA
Earnings:
Basic earnings per common share	$	0.41		$	0.48		$	0.67			(14.6	)%		(38.8	)%
Diluted earnings per common share		0.41			0.48			0.67			(14.6	)		(38.8	)
Core Earnings(1):
Core basic earnings per common share(1)		0.36			0.44			0.67			(18.2	)		(46.3	)
Core diluted earnings per common share(1)		0.36			0.43			0.67			(16.3	)		(46.3	)
Book value per common share		23.42			23.21			22.21			0.9			5.4
Tangible book value per common share(1)		19.15			18.90			17.87			1.3			7.2
Common shares outstanding		9,828,825			9,781,946			9,831,145			0.5			(0.0	)
Weighted average common shares outstanding - basic		9,827,903			9,769,626			9,880,721			0.6			(0.5	)
Weighted average common shares outstanding - diluted		9,902,170			9,866,973			9,881,385			0.4			0.2
PERFORMANCE RATIOS
Return on average assets		0.59	%		0.68	%		0.96	%		(13.2	)%		(38.5	)%
Core return on average assets(1)		0.52			0.61			0.97			(14.8	)		(46.4	)
Return on average equity		7.17			8.28			11.85			(13.4	)		(39.5	)
Core return on average equity(1)		6.31			7.52			11.98			(16.1	)		(47.3	)
Net interest margin		2.62			2.59			2.82			1.2			(7.1	)
Net interest income to average assets		2.49			2.47			2.68			0.8			(7.1	)
Noninterest expense to average assets		2.24			2.20			2.22			1.8			0.9
Efficiency ratio(2)		77.59			76.62			74.50			1.3			4.1
Core efficiency ratio(1)		80.24			78.81			74.21			1.8			8.1
Dividend payout ratio		24.39			20.83			14.93			17.1			63.4
Net charge-offs (recoveries) to average loans		0.01			—			(0.11	)		—			109.1

⁽¹⁾ Non-GAAP financial measure. See reconciliation.

⁽²⁾ Efficiency ratio represents noninterest expense divided by the sum of net interest income (before provision for credit losses) and noninterest income.

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Unaudited)

	As of and for the three months ended
	6/30/2024			3/31/2024			6/30/2023			Linked Quarter			Year/Year
ASSET QUALITY RATIOS
Nonperforming assets to total assets		0.30	%		0.36	%		0.40	%		(16.7	)%		(25.0	)%
Nonperforming loans to total loans		0.23			0.26			0.34			(11.5	)		(32.4	)
Allowance for credit losses to total loans		1.32			1.34			1.44			(1.5	)		(8.3	)
Allowance for credit losses to nonperforming loans		576.38			515.36			429.60			11.8			34.2
CAPITAL RATIOS
Investar Holding Corporation:
Total equity to total assets		8.26	%		8.14	%		7.93	%		1.5	%		4.2	%
Tangible equity to tangible assets(1)		6.85			6.73			6.48			1.8			5.8
Tier 1 leverage capital		8.81			8.62			8.45			2.2			4.3
Common equity tier 1 capital(2)		10.02			9.79			9.86			2.3			1.6
Tier 1 capital(2)		10.42			10.18			10.28			2.4			1.4
Total capital(2)		13.16			13.21			13.49			(0.4	)		(2.4	)
Investar Bank:
Tier 1 leverage capital		9.95			10.01			9.96			(0.6	)		(0.1	)
Common equity tier 1 capital(2)		11.78			11.83			12.11			(0.4	)		(2.7	)
Tier 1 capital(2)		11.78			11.83			12.11			(0.4	)		(2.7	)
Total capital(2)		12.98			13.04			13.36			(0.5	)		(2.8	)

⁽¹⁾ Non-GAAP financial measure. See reconciliation.

⁽²⁾ Estimated for June 30, 2024.

INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

(Unaudited)

	June 30, 2024			March 31, 2024			June 30, 2023
ASSETS
Cash and due from banks	$	27,130		$	18,083		$	34,697
Interest-bearing balances due from other banks		42,542			23,762			31,082
Federal funds sold		—			—			128
Cash and cash equivalents		69,672			41,845			65,907
Available for sale securities at fair value (amortized cost of $398,954, $415,546, and $452,053, respectively)		336,616			353,340			389,583
Held to maturity securities at amortized cost (estimated fair value of $18,461, $18,148, and $17,913, respectively)		18,457			17,755			17,812
Loans		2,166,759			2,180,578			2,084,863
Less: allowance for credit losses		(28,620	)		(29,114	)		(30,044	)
Loans, net		2,138,139			2,151,464			2,054,819
Equity securities at fair value		2,260			2,260			1,134
Nonmarketable equity securities		13,901			12,723			13,804
Bank premises and equipment, net of accumulated depreciation of $20,667, $20,038, and $21,886, respectively		42,383			42,659			45,925
Other real estate owned, net		3,372			4,247			4,137
Accrued interest receivable		14,186			15,047			12,661
Deferred tax asset		17,595			17,779			17,658
Goodwill and other intangible assets, net		41,996			42,154			42,677
Bank owned life insurance		61,208			60,745			58,068
Other assets		27,793			25,688			29,489
Total assets	$	2,787,578		$	2,787,706		$	2,753,674
LIABILITIES
Deposits
Noninterest-bearing	$	436,571		$	435,397		$	488,311
Interest-bearing		1,773,631			1,772,431			1,692,542
Total deposits		2,210,202			2,207,828			2,180,853
Advances from Federal Home Loan Bank		23,500			23,500			23,500
Borrowings under Bank Term Funding Program		229,000			229,000			235,800
Repurchase agreements		7,432			7,850			5,183
Subordinated debt, net of unamortized issuance costs		36,475			43,363			44,272
Junior subordinated debt		8,683			8,657			8,574
Accrued taxes and other liabilities		42,090			40,503			37,135
Total liabilities		2,557,382			2,560,701			2,535,317
STOCKHOLDERS’ EQUITY
Preferred stock, no par value per share; 5,000,000 shares authorized		—			—			—
Common stock, $1.00 par value per share; 40,000,000 shares authorized; 9,828,825, 9,781,946, and 9,831,145 shares issued and outstanding, respectively		9,829			9,782			9,831
Surplus		145,918			145,739			145,347
Retained earnings		123,510			120,441			112,344
Accumulated other comprehensive loss		(49,061	)		(48,957	)		(49,165	)
Total stockholders’ equity		230,196			227,005			218,357
Total liabilities and stockholders’ equity	$	2,787,578		$	2,787,706		$	2,753,674

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except share data)

(Unaudited)

	For the three months ended
	June 30, 2024			March 31, 2024			June 30, 2023
INTEREST INCOME
Interest and fees on loans	$	32,161		$	32,135		$	28,513
Interest on investment securities
Taxable		2,766			2,817			3,262
Tax-exempt		214			238			119
Other interest income		649			532			502
Total interest income		35,790			35,722			32,396
INTEREST EXPENSE
Interest on deposits		14,865			14,845			9,534
Interest on borrowings		3,727			3,661			4,475
Total interest expense		18,592			18,506			14,009
Net interest income		17,198			17,216			18,387
Provision for credit losses		(415	)		(1,419	)		(2,840	)
Net interest income after provision for credit losses		17,613			18,635			21,227
NONINTEREST INCOME
Service charges on deposit accounts		799			810			746
Loss on call or sale of investment securities, net		(383	)		—			—
Gain (loss) on sale or disposition of fixed assets, net		—			427			(58	)
Gain on sale of other real estate owned, net		712			—			5
Servicing fees and fee income on serviced loans		—			—			4
Interchange fees		410			395			443
Income from bank owned life insurance		463			388			353
Change in the fair value of equity securities		—			80			(107	)
Other operating income		749			648			684
Total noninterest income		2,750			2,748			2,070
Income before noninterest expense		20,363			21,383			23,297
NONINTEREST EXPENSE
Depreciation and amortization		787			812			919
Salaries and employee benefits		9,593			9,248			9,343
Occupancy		696			581			646
Data processing		893			937			827
Marketing		72			41			82
Professional fees		471			419			323
Gain on early extinguishment of subordinated debt		(287	)		(215	)		—
Other operating expenses		3,252			3,473			3,101
Total noninterest expense		15,477			15,296			15,241
Income before income tax expense		4,886			6,087			8,056
Income tax expense		829			1,380			1,509
Net income	$	4,057		$	4,707		$	6,547
EARNINGS PER SHARE
Basic earnings per share	$	0.41		$	0.48		$	0.67
Diluted earnings per share		0.41			0.48			0.67
Cash dividends declared per common share		0.10			0.10			0.10

INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

	For the three months ended
	June 30, 2024								March 31, 2024								June 30, 2023
				Interest								Interest								Interest
	Average			Income/					Average			Income/					Average			Income/
	Balance			Expense		Yield/ Rate			Balance			Expense		Yield/ Rate			Balance			Expense		Yield/ Rate
Assets
Interest-earning assets:
Loans	$	2,168,762		$	32,161		5.96	%	$	2,195,496		$	32,135		5.89	%	$	2,100,751		$	28,513		5.44	%
Securities:
Taxable		403,391			2,766		2.76			410,761			2,817		2.76			460,765			3,262		2.84
Tax-exempt		23,558			214		3.66			26,963			238		3.55			17,235			119		2.77
Interest-bearing balances with banks		47,521			649		5.50			36,333			532		5.89			32,421			502		6.22
Total interest-earning assets		2,643,232			35,790		5.45			2,669,553			35,722		5.38			2,611,172			32,396		4.98
Cash and due from banks		25,974								26,246								30,326
Intangible assets		42,082								42,243								42,777
Other assets		91,439								94,311								94,467
Allowance for credit losses		(28,935	)							(30,161	)							(30,571	)
Total assets	$	2,773,792							$	2,802,192							$	2,748,171
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand deposits	$	658,594		$	3,083		1.88	%	$	680,548		$	3,166		1.87	%	$	683,016		$	2,013		1.18	%
Savings deposits		128,957			342		1.07			134,853			339		1.01			127,028			22		0.07
Brokered time deposits		241,777			3,126		5.20			255,694			3,314		5.21			151,370			1,870		4.95
Time deposits		741,657			8,314		4.51			734,474			8,026		4.39			694,092			5,629		3.25
Total interest-bearing deposits		1,770,985			14,865		3.38			1,805,569			14,845		3.31			1,655,506			9,534		2.31
Short-term borrowings		248,189			2,886		4.68			236,826			2,745		4.66			281,651			3,572		5.09
Long-term debt		71,122			841		4.76			76,351			916		4.83			76,325			903		4.74
Total interest-bearing liabilities		2,090,296			18,592		3.58			2,118,746			18,506		3.51			2,013,482			14,009		2.79
Noninterest-bearing deposits		425,964								428,135								490,123
Other liabilities		29,995								26,621								23,038
Stockholders’ equity		227,537								228,690								221,528
Total liability and stockholders’ equity	$	2,773,792							$	2,802,192							$	2,748,171
Net interest income/net interest margin				$	17,198		2.62	%				$	17,216		2.59	%				$	18,387		2.82	%

INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INTEREST EARNED AND YIELD ANALYSIS ADJUSTED FOR INTEREST RECOVERIES AND ACCRETION

(Amounts in thousands)

(Unaudited)

	For the three months ended
	June 30, 2024							March 31, 2024							June 30, 2023
			Interest							Interest							Interest
	Average		Income/					Average		Income/					Average		Income/
	Balance		Expense		Yield/ Rate			Balance		Expense		Yield/ Rate			Balance		Expense		Yield/ Rate
Interest-earning assets:
Loans	$	2,168,762	$	32,161		5.96	%	$	2,195,496	$	32,135		5.89	%	$	2,100,751	$	28,513		5.44	%
Adjustments:
Interest recoveries				44							21							—
Accretion				18							19							47
Adjusted loans		2,168,762		32,099		5.95			2,195,496		32,095		5.88			2,100,751		28,466		5.44
Securities:
Taxable		403,391		2,766		2.76			410,761		2,817		2.76			460,765		3,262		2.84
Tax-exempt		23,558		214		3.66			26,963		238		3.55			17,235		119		2.77
Interest-bearing balances with banks		47,521		649		5.50			36,333		532		5.89			32,421		502		6.22
Adjusted interest-earning assets		2,643,232		35,728		5.44			2,669,553		35,682		5.38			2,611,172		32,349		4.97
Total interest-bearing liabilities		2,090,296		18,592		3.58			2,118,746		18,506		3.51			2,013,482		14,009		2.79
Adjusted net interest income/adjusted net interest margin			$	17,136		2.61	%			$	17,176		2.59	%			$	18,340		2.82	%

INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

	June 30, 2024			March 31, 2024			June 30, 2023
Tangible common equity
Total stockholders’ equity	$	230,196		$	227,005		$	218,357
Adjustments:
Goodwill		40,088			40,088			40,088
Core deposit intangible		1,808			1,966			2,489
Trademark intangible		100			100			100
Tangible common equity	$	188,200		$	184,851		$	175,680
Tangible assets
Total assets	$	2,787,578		$	2,787,706		$	2,753,674
Adjustments:
Goodwill		40,088			40,088			40,088
Core deposit intangible		1,808			1,966			2,489
Trademark intangible		100			100			100
Tangible assets	$	2,745,582		$	2,745,552		$	2,710,997
Common shares outstanding		9,828,825			9,781,946			9,831,145
Tangible equity to tangible assets		6.85	%		6.73	%		6.48	%
Book value per common share	$	23.42		$	23.21		$	22.21
Tangible book value per common share		19.15			18.90			17.87

INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

		Three months ended
		6/30/2024			3/31/2024			6/30/2023
Net interest income	(a)	$	17,198		$	17,216		$	18,387
Provision for credit losses			(415	)		(1,419	)		(2,840	)
Net interest income after provision for credit losses			17,613			18,635			21,227
Noninterest income	(b)		2,750			2,748			2,070
Loss on call or sale of investment securities, net			383			—			—
(Gain) loss on sale or disposition of fixed assets, net			—			(427	)		58
Gain on sale of other real estate owned, net			(712	)		—			(5	)
Change in the fair value of equity securities			—			(80	)		107
Change in the net asset value of other investments(1)			27			(70	)		(78	)
Core noninterest income	(d)		2,448			2,171			2,152
Core earnings before noninterest expense			20,061			20,806			23,379
Total noninterest expense	(c)		15,477			15,296			15,241
Write down of other real estate owned(2)			—			(233	)		—
Gain on early extinguishment of subordinated debt			287			215			—
Core noninterest expense	(f)		15,764			15,278			15,241
Core earnings before income tax expense			4,297			5,528			8,138
Core income tax expense(3)			730			1,255			1,522
Core earnings		$	3,567		$	4,273		$	6,616
Core basic earnings per common share			0.36			0.44			0.67
Diluted earnings per common share (GAAP)		$	0.41		$	0.48		$	0.67
Loss on call or sale of investment securities, net			0.03			—			—
(Gain) loss on sale or disposition of fixed assets, net			—			(0.03	)		—
Gain on sale of other real estate owned, net			(0.06	)		—			—
Change in the fair value of equity securities			—			(0.01	)		0.01
Change in the net asset value of other investments(1)			—			(0.01	)		(0.01	)
Write down of other real estate owned(2)			—			0.02			—
Gain on early extinguishment of subordinated debt			(0.02	)		(0.02	)		—
Core diluted earnings per common share		$	0.36		$	0.43		$	0.67
Efficiency ratio	(c) / (a+b)		77.59	%		76.62	%		74.50	%
Core efficiency ratio	(f) / (a+d)		80.24			78.81			74.21
Core return on average assets(4)			0.52			0.61			0.97
Core return on average equity(4)			6.31			7.52			11.98
Total average assets		$	2,773,792		$	2,802,192		$	2,748,171
Total average stockholders’ equity			227,537			228,690			221,528

⁽¹⁾ Change in net asset value of other investments represents unrealized gains or losses on Investar’s investments in Small Business Investment Companies and other investment funds and is included in other operating income in the accompanying consolidated statements of income.

⁽²⁾ Adjustment to noninterest expense for provision for estimated losses on other real estate owned when fair value is determined to be less than carrying values, which is included in other operating expense in the accompanying consolidated statements of income.

⁽³⁾ Core income tax expense is calculated using the effective tax rates of 17.0%, 22.7% and 18.7% for the quarters ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively.

⁽⁴⁾ Core earnings used in calculation. No adjustments were made to average assets or average equity.

EX-99.2

Exhibit 99.2

XML

Document And Entity Information	Jul. 22, 2024
Document Information [Line Items]
Entity, Registrant Name	Investar Holding Corporation
Document, Type	8-K
Document, Period End Date	Jul. 22, 2024
Entity, Incorporation, State or Country Code	LA
Entity, File Number	001-36522
Entity, Tax Identification Number	27-1560715
Entity, Address, Address Line One	10500 Coursey Blvd
Entity, Address, City or Town	Baton Rouge
Entity, Address, State or Province	LA
Entity, Address, Postal Zip Code	70816
City Area Code	225
Local Phone Number	227-2222
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common stock
Trading Symbol	ISTR
Security Exchange Name	NASDAQ
Entity, Emerging Growth Company	false
Amendment Flag	false
Entity, Central Index Key	0001602658