- Investar Holding (ISTR, Financial) posts $6.3 million net income in Q1 2025, marking a yearly increase of 33.7%.
- Net interest margin improved by 22 basis points to 2.87%.
- $3.3 million loan recovery from Hurricane Ida insurance boosted results.
Investar Holding Corporation (ISTR) reported robust financial results for the first quarter of 2025, with net income reaching $6.3 million, or $0.63 per diluted share. This marks an improvement from $6.1 million in the fourth quarter of 2024 and $4.7 million in the first quarter of 2024.
The bank achieved a net interest margin of 2.87%, a 22-basis point increase from the previous quarter, driven by effective balance sheet management. The cost of funds decreased by 27 basis points to 3.22%, supported by strategic actions such as redeeming $20 million in subordinated debt.
A significant contribution to the strong results came from a $3.3 million loan recovery due to a Hurricane Ida-related insurance settlement. Additionally, the credit quality improved, with nonperforming loans reducing to 0.27% of total loans, down from 0.42% at the end of the previous year.
Despite a slight decline of 0.9% in total loans to $2.11 billion, the bank successfully increased the book value per share by 4.4% to $25.63. The regulatory common equity tier 1 capital ratio increased to 11.16%, ensuring a strong capital position.
During the quarter, Investar repurchased 34,992 shares and maintained stable deposits at $2.35 billion. The strategic focus remains on optimizing the balance sheet and maintaining high credit standards amidst market volatility.
