Investar (ISTR) Q2 2026 earnings summary

Executive summary

• Net interest margin rose to 3.67% in Q2 2026, up from 3.59% in Q1 2026 and 3.03% in Q2 2025, reflecting improved funding costs and balance sheet optimization.

• Net income available to common shareholders was $8.9M ($0.61 per diluted share) for Q2 2026, down from $11.5M ($0.77) in Q1 2026, but up from $4.5M ($0.46) in Q2 2025; core diluted EPS was $0.75, down from $0.87 in Q1 2026.

• Total assets rose 36.3% year-over-year to $3.86B at June 30, 2026, driven by the $1.15B WFB acquisition completed January 1, 2026.

• Return on average assets was 0.98% (core: 1.21%) in Q2 2026, compared to 1.25% (core: 1.41%) in Q1 2026 and 0.66% in Q2 2025.

• The company remains well-capitalized and in compliance with all regulatory capital requirements.

Financial highlights

• Net interest income for Q2 2026 was $33.4M, up 2.4% sequentially and 70.3% year-over-year.

• Book value per common share increased to $28.29, and tangible book value per share rose to $23.09 at June 30, 2026.

• Total loans were $3.06B at June 30, 2026; excluding WFB-acquired loans, loans grew 2.6% sequentially.

• Business lending portfolio grew 3.8% sequentially and 21.9% year-over-year to $1.21B.

• Total deposits decreased 0.6% sequentially to $3.21B, but rose 36.7% year-over-year; excluding brokered time deposits, core deposits increased 0.6%.

Outlook and guidance

• Focus remains on organic and acquisition-driven growth, capital building, and disciplined share repurchases.

• Strategy includes reducing wholesale funding, optimizing the loan portfolio toward higher-yielding commercial loans, and continued digital transformation.