Investar Holding reports $11.66 million net income for Q3 2026

Cover page 2 changes

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For the quarterly period ended June September 30, 2026

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The number of shares outstanding of the issuer's class of common stock, as of the latest practicable date, is as follows: Common stock, $1.00 par value, 13,777,026 13,731,799 shares outstanding as of August 4, 2026. November 3, 2 026.

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Financial Statements (Unaudited) 5 changes

Consolidated Balance Sheets as of June September 30, 2026 and December 31, 2025

Consolidated Statements of Income for the three and six nine months ended June September 30, 2026 and 2025

Consolidated Statements of Comprehensive (Loss) Income for the three and six nine months ended June September 30, 2026 and 2025

Consolidated Statements of Changes in Stockholders' Equity for the three and six nine months ended June September 30, 2026 and 2025

Consolidated Statements of Cash Flows for the six nine months ended June September 30, 2026 and 2025

MD&A 1 change

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Secured Overnight Financing Rate

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Financial statements 64 changes

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Available for sale securities at fair value (amortized cost of $ 459,375 480,042 and $ 416,002 , respectively)

Held to maturity securities at amortized cost (fair value of $ 49,450 47,841 and $ 50,540 , respectively)

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Bank premises and equipment, net of accumulated depreciation of $ 25,268 25,925 and $ 23,836 , respectively

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Preferred stock, no par value per share; 5,000,000 shares authorized; 6.5 % Series A Non-Cumulative Perpetual Convertible Preferred Stock; 32,500 shares ($ 1,000 liquidation preference) issued and outstanding at June September 30, 2026 and December 31, 2025

Common stock, $ 1.00 par value per share; 40,000,000 shares authorized; 13,777,385 13,753,007 and 9,798,948 shares issued and outstanding at June September 30, 2026 and December 31, 2025, respectively

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Six months ended June 30,

Three months ended June September 30,

Nine months ended September 30,

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Provision for (Reversal of) provision for credit losses

Net interest income after provision for (reversal of) provision for credit losses

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Loss on sale or disposition of bank premises and equipment, net ( 3 5 )

Gain (Loss) gain on sale of other real estate owned, net

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

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Six months ended June 30,

Three months ended June September 30,

Nine months ended September 30,

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Unrealized (loss) gain, available for sale, net of tax (benefit) expense of ($188), $339, ($565) ($ 4,120 ), $ 1,153 , ($ 4,685 ) and $1,821, $ 2,974 , respectively ( 696 15,230 ) 2,084

Reclassification of realized gain, available for sale, net of tax expense of $3, $0, $3 $ 0 , $ 0 , $ 3 and $0, $ 0 , respectively ( 9 2 ) 9

Derivative financial instruments:

Change in fair value of interest rate swaps designated as cash flow hedges, net of tax benefit of $ 44 , $ 0 , $ 44 and $ 0 , respectively ( 162 )

Reclassification of realized gain, interest rate swaps, net of tax expense of $ 2 , $ 0 , $ 2 and $ 0 , respectively ( 7 )

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Total comprehensive income

Total comprehensive (loss) income

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Balance, March 31, 2026

Common stock issued in acquisition of Wichita Falls Bancshares, Inc., net of issuance costs

Three months ended June September 30, 2026:

Balance, June 30, 2026

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Balance, June 30, 2026

Balance, September 30, 2026

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Balance, March 31, 2025

Three months ended June September 30, 2025:

Balance, June 30, 2025

Preferred stock dividends declared, $ 16.25 per share

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Preferred stock issuance, net of issuance costs

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Balance, June 30, 2025

Balance, September 30, 2025

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Six months ended June 30, 2026:

Nine months ended September 30, 2026:

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Preferred stock dividends declared, $ 32.50 48.75 per share

Common stock dividends declared, $ 0.23 0.35 per share

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Balance, June 30, 2026

Balance, September 30, 2026

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Six months ended June 30, 2025:

Nine months ended September 30, 2025:

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Preferred stock dividends declared, $ 16.25 per share

Common stock dividends declared, $ 0.215 0.325 per share

Preferred stock issuance, net of issuance costs

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Balance, June 30, 2025

Balance, September 30, 2025

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Six months ended June 30,

Nine months ended September 30,

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Net (accretion) amortization of purchase accounting adjustments ( 5,889 8,900 ) 26

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Gain on proceeds under BOLI policies

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Purchases of securities HTM

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Net decrease (increase) in loans

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Proceeds received under BOLI policies

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Net cash provided by (used in) investing activities

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Six months ended June 30,

Nine months ended September 30,

1 unchanged paragraph

Net (decrease) increase in customer deposits

Net (decrease) increase in repurchase agreements

Net increase (decrease) in short-term FHLB advances

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Repayment of long-term debt

Advanced Proceeds from preferred stock offering, net of issuance costs ( 10,181 )

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Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 11 changes

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June 30, 2026 , the Company operated

20 full service branches located in Louisiana,

ten full service branches located in Texas and

six full service branches located in Alabama and had

421 full-time equivalent employees.

The Company is a financial holding company, headquartered in Baton Rouge, Louisiana that provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, National Association, a national bank, primarily to meet the needs of individuals, professionals and small to medium-sized businesses. The Company's primary markets are in south Louisiana, Texas and Alabama. At September 30, 2026 , the Company operated 20 full service branches located in Louisiana, ten full service branches located in Texas and six full service branches located in Alabama and had 415 full-time equivalent employees.

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The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with GAAP for interim financial information and the instructions to Form 10 -Q and Article 10 of Regulation S- X. Accordingly, they do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with GAAP. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair statement of the financial statements have been included. The results of operations for the three and six nine month periods ended June September 30, 2026 are not necessarily indicative of the results that may be expected for the entire fiscal year. These statements should be read in conjunction with the Company's audited consolidated financial statements for the year ended December 31, 2025 , including the notes thereto, which were included as part of the Company's Annual Report.

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The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material.

Material estimates that are particularly susceptible to significant change relate to the determination of the ACL. While management uses available information to recognize credit losses on loans, future additions to the allowance may be necessary based on changes in economic conditions, changes in conditions of borrowers' industries or changes in the condition of individual borrowers. Because of these factors, it is reasonably possible that the ACL may change materially in the near term. However, the amount of change that is reasonably possible cannot be estimated.

Other estimates that are susceptible to significant change in the near term relate to the allowance for off-balance sheet credit losses, the fair value of stock-based compensation awards, the determination of an ACL for investment securities, and the fair value of financial instruments and goodwill.

A changing interest rate environment, elevated levels of inflation and changing U.S. trade and tariff policies have made certain estimates more challenging, including those discussed above.

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Note 2: BUSINESS COMBINATIONS 9 changes

On January 1, 2026, the Company completed the acquisition of WFB and its wholly-owned subsidiary, FNB, headquartered in Wichita Falls, Texas, with seven branches (including the headquarters) serving the surrounding areas. All of the issued and outstanding shares of WFB common stock were converted into aggregate merger consideration consisting of $ 7.2 million in cash and 3,955,272 shares of Company common stock for an aggregate transaction value of $ 112.9 million. After fair value adjustments, including total adjustments of ($ 0.2 million) to The fair value of total assets, recorded in the three months ended June 30, 2026, the acquisition added $ 1.15 1.14 billion in total assets, including $ 950.2 million in net loans, and $ 1.02 billion in deposits. As consideration paid was in excess of the net fair value of acquired assets, the Company recorded $ 18.2 20.5 million of goodwill, none of which is anticipated to be deductible for tax purposes. Goodwill resulted from a combination of synergies and cost savings, and further expansion into Texas.

During the three months ended September 30, 2026 , goodwill related to the acquisition of WFB increased by $ 2.4 million. There were fair value adjustments consisting of a $ 0.2 million increase to the fair value of total assets and a $ 1.1 million increase to the fair value of total liabilities primarily related to a vendor contract assumed in the acquisition that was recorded as a measurement period adjustment. The Company may record additional liabilities related to the vendor contract. Additionally, there was an out-of-period adjustment related to bank premises and equipment, which resulted in a $ 1.4 million increase in goodwill, a $ 1.8 million decrease in bank premises and equipment and a $ 0.4 million increase in other assets.

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The Company adopted ASU 2025 - 08 for the annual reporting period beginning on January 1, 2026. Accordingly, the initial estimate of expected credit losses recognized in the ACL included both PCD and non-PCD loans which were deemed PSLs.

The following table includes principal balance and the fair value of the loans acquired from WFB (dollars in thousands).

Principal Balance Acquired

Non-Credit Premium/(Discount)

Fair Value of Net Loans

The Company has determined it was impracticable to disclose stand-alone revenues and net income for legacy WFB since January 1, 2026 due to the streamlining and integration of the operating activities during the first quarter of 2026. The Company has also determined it was impracticable to include pro forma information for the WFB acquisition due to the cost versus benefit of including such disclosures.

Acquisition related costs of $ 2.6 million and $ 4.3 million are included in "Acquisition expense" in the accompanying consolidated statements of income for the three and six months ended June 30, 2026 , respectively, and $ 0.2 million and $ 0.3 million for the three and six months ended June 30, 2025 , respectively. These costs include system conversion and integrating operations charges and legal and consulting expenses.

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Note 3: EARNINGS PER COMMON SHARE 7 changes

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Six months ended June 30,

The following is a summary of the information used in the computation of basic and diluted earnings per common share for the three and six nine months ended June September 30, 2026 and 2025 (in thousands, except share and per share data).

Three months ended June September 30,

Nine months ended September 30,

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Six months ended June 30,

Three months ended June September 30,

Nine months ended September 30,

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Note 4: INVESTMENT SECURITIES 13 changes

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Six months ended June 30,

The amortized cost and approximate fair value of investment securities classified as HTM are summarized below as of the dates presented (dollars in thousands).

Gross Unrealized Gains

Gross Unrealized Losses

Obligations of state and political subdivisions

Residential mortgage-backed securities

Gross Unrealized Gains

Gross Unrealized Losses

Obligations of state and political subdivisions

Residential mortgage-backed securities

Securities are classified in the consolidated balance sheets according to management's intent. The Company had no securities classified as trading as of June 30, 2026 or December 31, 2025 .

Three months ended June September 30,

Nine months ended September 30,

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Note 5: LOANS AND ALLOWANCE FOR CREDIT LOSSES 2 changes

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Interest on loans is calculated by using the simple interest method on daily balances of the principal amount outstanding. Loan origination fees, net of direct loan origination costs and commitment fees, are deferred and amortized as an adjustment to yield over the life of the loan, or over the commitment period, as applicable. Unamortized premiums and discounts on loans, included in the total loans loan balances above, were $ 17.0 14.0 million and $ 0.1 million at June September 30, 2026 and December 31, 2025 , respectively, and unearned income, or deferred fees, on loans was $ 1.5 million and $ 1.6 million at June September 30, 2026 and December 31, 2025 , respectively, and is also included in the total loans balance loan balances in the table above.

The tables below provide an analysis of the aging of loans as of June September 30, 2026 and December 31, 2025 (dollars in thousands).

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Notes to the financial statements 2 changes

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Com mercial and Industrial - Commercial and industrial loans receive similar underwriting treatment as commercial real estate loans in that the repayment source is analyzed to determine its ability to meet cash flow coverage requirements as set forth by Company policies. Repayment of these loans generally comes from the generation of cash flow as the result of the borrower's business operations. Commercial lending generally involves different risks from those associated with commercial real estate lending or construction lending. Although commercial loans may be collateralized by equipment or other business assets (including real estate, if available as collateral), the repayment of these types of loans depends primarily on the creditworthiness and projected cash flow of the borrower (and any guarantors). Thus, the general business conditions of the local economy and the borrower's ability to sell its products and services, thereby generating sufficient operating revenue to repay us under the agreed upon terms and conditions, are the chief considerations when assessing the risk of a commercial loan. The liquidation of collateral, if any, is considered a secondary source of repayment because equipment and other business assets may, among other things, be obsolete or of limited resale value. The Company actively monitors certain financial measures of the borrower, including advance rate, cash flow, collateral value and other appropriate credit factors. Commercial and industrial loans also include public finance loans made to governmental entities, which can be taxable or tax-exempt, and are generally repaid using pledged revenue sources including income tax, property tax, sales tax, and utility revenue, among other sources. Commercial and industrial loans are primarily secured by accounts receivable, inventory and equipment.

Consumer - Consumer loans are offered by the Company in order to provide a full range of retail financial services to its customers and include auto loans, credit cards, and other consumer installment loans. Typically, the Company evaluates the borrower's repayment ability through a review of credit scores and an evaluation of debt to income ratios. Repayment of consumer loans depends upon key consumer economic measures and upon the borrower's financial stability and is more likely to be adversely affected by divorce, job loss, illness and personal hardships than repayment of other loans. A shortfall in the value of any collateral also may pose a risk of loss to the Company for these types of loans. Consumer loans include loans primarily secured by vehicles and unsecured loans.

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Note 6: GOODWILL AND OTHER INTANGIBLE ASSETS 5 changes

The Company's intangible assets consist of goodwill, core deposit intangible assets arising from acquisitions, and a trademark intangible. At June September 30, 2026 and December 31, 2025 , "Goodwill and other intangible assets, net" in the accompanying consolidated balance sheets totaled $ 71.7 73.5 million and $ 41.2 million, respectively, and included no accumulated impairment losses.

The carrying amount of goodwill at June September 30, 2026 and December 31, 2025 was $ 58.3 60.6 million and $ 40.1 million, respectively. The Company recorded $ 18.2 20.5 million of goodwill during 2026, related to the acquisition of WFB. The Company reviews the carrying value of goodwill and indefinite-lived intangible assets at least annually, or more frequently if certain impairment indicators exist. No goodwill impairment was recorded during the periods presented.

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Amortization expense for the core deposit intangible assets recorded in "Depreciation and amortization" in the accompanying consolidated statements of income totaled approximately $ 0.6 million and $ 1.2 1.8 million for the three and six nine months ended June September 30, 2026 , respectively, and $0.1 million and $ 0.3 0.4 million for the three and six nine months ended June September 30, 2025 , respectively.

The estimated remaining amortization expense for the Company's core deposit intangible assets is displayed in the table below (dollars in thousands). The weighted average amortization period remaining for core deposit intangibles is 9.1 8.9 years.

The trademark intangible had a carrying value of $ 0.1 million at June September 30, 2026 and December 31, 2025 .

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Note 7: STOCKHOLDERS ' EQUITY 8 changes

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Three months ended June September 30, 2026

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Three months ended June September 30, 2025

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Reclassification of realized gain, net

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Six months ended June 30, 2026

Nine months ended September 30, 2026

4 unchanged paragraphs

Six months ended June 30, 2025

Nine months ended September 30, 2025

2 unchanged paragraphs

Reclassification of realized gain, net

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Note 8: STOCK-BASED COMPENSATION 5 changes

Equity Incentive Plan . The Company's Second Amended and Restated 2017 Long-Term Incentive Compensation Plan (the "Plan") authorizes the grant of various types of equity awards, such as restricted stock, RSUs, stock options and stock appreciation rights to eligible participants, which include all of the Company's employees, non-employee directors, and consultants. Under the Plan, a total of 1,800,000 shares of common stock are reserved, 600,000 of which were authorized in 2021 and 600,000 of which were authorized in 2026, for issuance to eligible participants pursuant to equity awards under the Plan. The Plan is administered by the Compensation Committee of the Board, which determines, within the provisions of the Plan, those eligible employees to whom, and the times at which, equity awards will be granted. The Compensation Committee, in its discretion, may delegate its authority and duties under the Plan to specified officers; however, only the Compensation Committee may approve the terms of equity awards to the Company's executive officers and directors. At June September 30, 2026 , approximately 718,429 717,933 shares remain available for grant under the Plan.

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The Company uses a Black-Scholes option pricing model to estimate the fair value of stock-based awards. The Black-Scholes option pricing model incorporates various subjective assumptions, including expected term and expected volatility. Expected volatility was determined based on the historical volatilities of the Company's common stock. The Company did not grant any stock options during the six nine months ended June September 30, 2026 and 2025 .

Stock option expense of $ 24,000 25,000 and $ 0.1 million is included in "Salaries and employee benefits" in the accompanying consolidated statements of income for the three and six nine months ended June September 30, 2026 , respectively, and $ 32,000 and $ 0.1 million for the three and six nine months ended June September 30, 2025 , respectively. At June September 30, 2026 , there was $ 0.2 million of unrecognized compensation cost related to stock options that is expected to be recognized over a weighted-average period of 2.2 2.0 years.

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Six months ended June 30,

Nine months ended September 30,

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Note 9: DERIVATIVE FINANCIAL INSTRUMENTS 22 changes

Customer Derivatives – Interest Rate Swaps

The Company enters into interest rate swaps that allow commercial loan customers to effectively convert a variable-rate commercial loan agreement to a fixed-rate commercial loan agreement. The Company then enters into a corresponding swap agreement with a third party in order to economically hedge its exposure through the customer agreement. The interest rate swaps with both the customers and third parties are not designated as hedges under FASB ASC Topic 815 "Derivatives and Hedging," and changes in fair value are recognized in other operating income. As the interest rate swaps are structured to offset each other, changes to the underlying benchmark interest rates considered in the valuation of these instruments do not result in an impact to earnings; however, there may be fair value adjustments related to credit quality variations between counterparties, which may impact earnings as required by FASB ASC Topic 820 "Fair Value Measurement" ("ASC 820" ). The Company did not recognize any gains or losses in other operating income resulting from fair value adjustments of these swap agreements during the three and six months ended June 30, 2026 and 2025 .

The table below presents the notional amounts and fair values of the Company's derivative financial instruments as well as their classification on the accompanying consolidated balance sheets at June 30, 2026 and December 31, 2025 (dollars in thousands).

Derivative Assets (2)

Derivative Liabilities (2)

( 1 ) At June 30, 2026 the Company had notional amounts of $ 158.3 million in interest rate swap contracts with customers and $ 158.3 million in offsetting interest rate swap contracts with other financial institutions. At December 31, 2025 the Company had notional amounts of $ 180.8 million in interest rate swap contracts with customers and $ 180.8 million in offsetting interest rate swap contracts with other financial institutions.

( 2 ) Derivative assets and liabilities are reported at fair value in "Other assets" and "Accrued taxes and other liabilities," respectively, in the accompanying consolidated balance sheets.

The table below presents the gross presentation, the effects of offsetting, and a net presentation of the Company's derivative financial instruments and securities sold under agreements to repurchase at June 30, 2026 and December 31, 2025 (dollars in thousands).

Gross Amounts Not Offset in the Consolidated Balance Sheets

Gross Amounts Recognized

Gross Amounts Offset in the Consolidated Balance Sheets

Net Amounts Presented in the Consolidated Balance Sheets

Financial Instruments

Financial liabilities:

Repurchase agreements

Financial liabilities:

Repurchase agreements

( 1 ) The Company had no collateral posted with counterparties at June 30, 2026 and December 31, 2025 . Collateral received from counterparties is included in "Interest-bearing deposits" in the accompanying consolidated balance sheets.

Derivatives Designated as Cash Flow Hedges

As part of its asset and liability management, the Company utilizes pay-variable interest rate swaps to manage exposure against the variability in the expected future cash flows (future interest payments) attributable to changes in the 1 -month SOFR associated with certain variable rate loans. At September 30, 2026 , the Company had an interest rate swap agreement with a total notional amount of $ 25.0 million, which was designated as a cash flow hedge. The derivative contract is between the Company and a single counterparty. The Company did not have any interest rate swap agreements at December 31, 2025 .

At inception, and at each reporting period thereafter, a statistical regression analysis is prepared to determine hedge effectiveness. The interest rate swap was determined to be highly effective during the periods presented. Therefore, no amount of ineffectiveness has been included in net income. The Company expects the hedges to remain highly effective during the remaining term of the swap contract. At September 30, 2026 , the maximum length of time over which the Company is currently hedging its exposure to the variability in future cash flows for forecasted transactions is approximately 2.9 years. To mitigate credit risk, cash collateral is pledged to the Company by the counterparty in an amount greater than or equal to the gain position of the derivative contract. Conversely, cash collateral is pledged to the counterparty by the Company in an amount greater than or equal to the loss position of the derivative contract, if applicable.

For the three and nine months ended September 30, 2026 , a loss of $ 0.2 million has been recognized in "Other comprehensive (loss) income" in the accompanying consolidated statements of comprehensive (loss) income for the change in fair value of the interest rate swaps compared to no gain or loss recognized for the three and nine months ended September 30, 2025. The swap contract had a negative fair value of $ 0.2 million and has been recorded in "Accrued taxes and other liabilities" in the accompanying consolidated balance sheet at September 30, 2026 . The accumulated loss of $ 0.2 million included in "Accumulated other comprehensive loss" in the accompanying consolidated balance sheet as of September 30, 2026 would be reclassified to current earnings if the hedge transactions become probable of not occurring. Based on current market conditions, the Company estimates that during the next 12 months, approximately $ 15,000 will be reclassified from "Accumulated other comprehensive loss" as a decrease to "Interest and fees on loans."

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Note 10: FAIR VALUES OF FINANCIAL INSTRUMENTS 16 changes

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If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions.

The Company holds SBIC qualified funds and other investment funds that do not have a readily determinable fair value. In accordance with ASC 820, these investments are measured at fair value using the net asset value practical expedient and are not required to be classified in the fair value hierarchy. At each of June 30, 2026 and December 31, 2025 , the fair values of these investments were $ 3.5 million and are included in "Other assets" in the accompanying consolidated balance sheets.

Fair Value Hierarchy

In accordance with ASC 820, the Company groups its financial assets and financial liabilities measured at fair value in three levels, based on the markets in which the assets and liabilities are traded, and the reliability of the assumptions used to determine fair value.

Level 1 – Valuation is based upon quoted prices for identical assets or liabilities traded in active markets.

Level 2 – Valuation is based upon observable inputs other than quoted prices included in level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.

Level 3 – Valuation is based upon unobservable inputs that are supported by little or no market activity. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs, as well as an entity's own assumptions that market participants would use in pricing the assets or liabilities.

A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Fair Value of Assets and Liabilities Measured on a Recurring Basis

The following methods and assumptions were used by the Company in estimating the fair value of assets and liabilities valued on a recurring basis:

AFS Investment Securities and Marketable Equity Securities – Where quoted prices are available in an active market, the Company classifies the securities within level 1 of the valuation hierarchy. Securities are defined as both long and short positions. Level 1 securities include marketable equity securities in corporate stocks and mutual funds.

If quoted market prices are

not available, the Company estimates fair values using pricing models and discounted cash flows that consider standard input factors such as observable market data, benchmark yields, interest rate volatilities, broker/dealer quotes, and credit spreads. Examples of such instruments, which would generally be classified within level

2 of the valuation hierarchy if observable inputs are available, include obligations of the U.S. Treasury and U.S. government agencies and corporations, obligations of state and political subdivisions, corporate bonds, residential mortgage-backed securities, and commercial mortgage-backed securities. In certain cases where there is limited activity or less transparency around inputs to the valuation, the Company classifies those securities in level

Management monitors the current placement of securities in the fair value hierarchy to determine whether transfers between levels may be warranted based on market reference data, which may include reported trades; bids, offers or broker/dealer quotes; benchmark yields and spreads; as well as other reference data. At June 30, 2026 and December 31, 2025 , all of the Company's level 3 investments were obligations of state and political subdivisions. The Company estimated the fair value of these level 3 investments using discounted cash flow models, the key inputs of which are the coupon rate, current spreads to the yield curves, and expected repayment dates, adjusted for illiquidity of the local municipal market and sinking funds, if applicable. Option-adjusted models may be used for structured or callable notes, as appropriate.

Derivative Financial Instruments – The fair value for interest rate swap agreements is based upon the expected future cash flows of the agreements discounted at market rates. These derivative instruments are classified in level 2 of the fair value hierarchy.

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Note 11: INCOME TAXES 5 changes

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Six months ended June 30,

Three months ended June September 30,

Nine months ended September 30,

For the three and six nine months ended June September 30, 2026 and 2025 , the effective tax rate differed from the statutory tax rate of 21 % primarily due to tax-exempt interest income earned on certain loans and investment securities and income from BOLI.

INVESTAR HOLDING CORPORATION

Note 12: COMMITMENTS AND CONTINGENCIES 5 changes

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Six months ended June 30,

Three months ended June September 30,

Nine months ended September 30,

2 unchanged paragraphs

(Reversal of) provision for credit losses on unfunded loan commitments ( 99 ) ( 31 ) ( 405 23 ) 68

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Additionally, at June September 30, 2026 , the Company had unfunded commitments of $ 1.4 2.3 million for its investments in SBIC qualified funds and other investment funds.

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Note 13: LEASES 7 changes

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Quantitative information regarding the Company's operating leases is presented below as of and for the six nine months ended June September 30, 2026 and 2025 (dollars in thousands).

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( 1 ) Short-term lease cost was immaterial for the periods presented.

At June September 30, 2026 and December 31, 2025 , the Company's operating lease ROU assets wer e $ 2.6 2.4 million and $ 1.8 million, respectively, and the Company's related operating lease liabilities were $ 2.7 2.5 million and $ 1.9 million, respectively. The Company's operating leases have remaining terms ranging from approximately one to five years, including extension options if the Company is reasonably certain they will be exercised.

Future obligations due under non-cancelable operating leases at June September 30, 2026 are presented below (dollars in thousands).

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At June September 30, 2026 , the Company had not entered into any material leases that have not yet commenced.

The Bank owns its corporate headquarters building, the first floor of which is occupied by multiple tenants. The Bank, as lessor, also leases a portion of one of its branch locations. All tenant leases are operating leases. The Bank, as lessor, recognized lease income of $ 0.1 million and $ 0.2 0.3 million for the three and six nine month periods ended June September 30, 2026 and 2025 , respectively.

INVESTAR HOLDING CORPORATION

Forward-looking statements 156 changes

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new or increasing geopolitical tensions, including resulting from conflicts and wars in the Middle East, Ukraine and Israel and surrounding areas or new areas;

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

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The Bank commenced operations in 2006, and we completed our initial public offering in July 2014. On July 1, 2019, the Bank changed from a Louisiana state bank charter to a national bank charter, and its name changed to Investar Bank, National Association. Through the Bank, we provide full banking services, excluding trust services, tailored primarily to meet the needs of individuals, professionals, and small to medium-sized businesses. Our primary areas of operation are south Louisiana, including Baton Rouge, New Orleans, Lafayette, Lake Charles, and their surrounding areas; Texas, including Houston and its surrounding area, and, as of January 1, 2026, north Dallas and Wichita Falls and their surrounding areas; and Alabama, including York and Oxford and their surrounding areas. At June September 30, 2026, we operated 36 full service branches comprised consisting of 20 full service branches in Louisiana, ten full service branches in Texas, and six full service branches in Alabama.

Our strategy focuses on consistent, quality earnings through the optimization of our balance sheet, Our strategy which includes originating and renewing high quality, primarily variable-rate, loans and allowing higher risk credit relationships to run off. We have kept duration short on our liabilities to provide flexibility to secure lower cost funding that was accretive to our net interest margin. Our strategy also includes growth through acquisitions, including whole-bank acquisitions, strategic branch acquisitions and asset acquisitions. We have completed eight whole-bank acquisitions since 2011 and regularly review acquisition opportunities. Our most recent whole bank acquisition was completed in January 2026. For additional information, see "Acquisition of WFB" below.

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On July 1, 2025, we announced that we had entered into the Agreement and Plan of Merger by and between the Company and WFB, headquartered in Wichita Falls, Texas, which provided for the merger of WFB with and into the Company, with the Company as the surviving corporation, followed by the merger of FNB, WFB's wholly-owned subsidiary, with and into the Bank, with the Bank as the surviving bank. We completed the acquisition of WFB and FNB on January 1, 2026. All of the issued and outstanding shares of WFB common stock were converted into aggregate merger consideration consisting of $7.2 million in cash and 3,955,272 shares of our common stock for an aggregate transaction value of $112.9 million. This value is based on the Company's closing stock price on December 31, 2025 of $26.72 per common share. On January 1, 2026, we acquired $1.15 $1.14 billion in total assets, $950.2 million in net loans and $1.02 billion in total deposits. For additional information, see Note 2. Business Combinations.

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Changing Inflation and Interest Rates . During 2025, beginning in September 2025, the Federal Reserve reduced the federal funds target rate three times by 75 basis points on a cumulative basis to 3.50% to 3.75% where it remained until September 2026. In September 2026, the Federal Reserve raised the federal funds target rate by 25 basis points to 3.75% to 4.00%. Accordingly, the prevailing federal funds target rate for the three and six nine months ended June September 30, 2026 was lower than for the three and six nine months ended June September 30, 2025.

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Total assets increased $1.03 billion, or 36.3% , to $3.86 billion at June 30, 2026 , compared to $2.83 billion at December 31, 2025 . The acquisition of WFB increased total assets by $1.15 billion on January 1, 2026. For the three months ended June 30, 2026 , net income available to common shareholders was $8.9 million, or $0.61 per diluted common share, compared to net income available to common shareholders of $4.5 million, or $0.46 per diluted common share, for the three months ended June 30, 2025 . For the six months ended June 30, 2026 , net income available to common shareholders was $20.4 million, or $1.38 per diluted common share, compared to net income available to common shareholders of $10.8 million, or $1.09 per diluted common share, for the six months ended June 30, 2025 . At June 30, 2026, the Company and Bank each were in compliance with all regulatory capital requirements, and the Bank was considered "well-capitalized" under the FDIC's prompt corrective action regulations.

Noninterest expense increased $8.0 million, or 47.7%, to $24.7 million for the three months ended June 30, 2026, compared to $16.7 million for the three months ended June 30, 2025. Noninterest expense increased $14.6 million, or 44.2%, to $47.5 million for the six months ended June 30, 2026, compared to $32.9 million for the six months ended June 30, 2025.

Total assets increased $1.03 billion, or 36.5% , to $3.87 billion at September 30, 2026 , compared to $2.83 billion at December 31, 2025 . The acquisition of WFB increased total assets by $1.14 billion on January 1, 2026.

For the three months ended September 30, 2026 , net income available to common shareholders was $11.1 million, or $0.74 per diluted common share, compared to net income available to common shareholders of $5.7 million, or $0.54 per diluted common share, for the three months ended September 30, 2025 .

For the nine months ended September 30, 2026 , net income available to common shareholders was $31.6 million, or $2.11 per diluted common share, compared to net income available to common shareholders of $16.4 million, or $1.62 per diluted common share, for the nine months ended September 30, 2025 .

At September 30, 2026, the Company and Bank were each in compliance with all regulatory capital requirements, and the Bank was considered "well-capitalized" under the FDIC's prompt corrective action regulations.

Key components of our performance for the three and six nine months ended June September 30, 2026 are summarized below.

Total loans increased $883.9 $890.8 million, or 40.6% 40.9% , to $3.06 $3.07 billion at June September 30, 2026 , compared to $2.18 billion at December 31, 2025 .

Total deposits increased $863.6 $830.5 million, or 36.7% 35.3% , to $3.21 $3.18 billion at June September 30, 2026 , compared to $2.35 billion at December 31, 2025 . No ninterest-bearing deposits increased $175.9 $193.2 million, or 39.4% 43.3% , to $621.9 $639.2 million at June September 30, 2026 , compared to $446.0 million at December 31, 2025 . As of June September 30, 2026 , estimated uninsured deposits represented approximately 34% 36% of our total deposits.

Net interest income for the three months ended June September 30, 2026 was $33.4 $33.8 million, an increase of $13.8 $12.6 million, or 70.3% 59.6% , compared to $19.6 $21.2 million for the three months ended June September 30, 2025 , which was the result of a $17.8 $16.2 million increase in interest income partially offset by a $4.0 $3.6 million increase in interest expense. Net interest income for the six nine months ended June September 30, 2026 was $66.1 $99.9 million, an increase of $28.1 $40.7 million, or 74.0%, 68.9% , compared to $38.0 $59.1 million for the six nine months ended June September 30, 2025 , which was the result of a $36.6 $52.8 million increase in interest income partially offset by an $8.5 a $12.1 million increase in interest expense.

During the three months ended June September 30, 2026 , our net interest margin was 3.67%, 3.73% , compared to 3.03% 3.16% for the three months ended June September 30, 2025 . During the six nine months ended June September 30, 2026 , our net interest margin was 3.63% 3.66% , compared to 2.95% 3.02% for the six nine months ended June September 30, 2025 . We experienced margin expansion as our yield on interest-earning assets increased and our overall cost of funds decreased for the respective periods.

For the three months ended June September 30, 2026 , we recorded a provision for reversal of credit losses of $0.3 $0.1 million compared to a provision for credit losses of $0.1 million f or for the three months ended June September 30, 2025 . For the six nine months ended June September 30, 2026 , we recorded a reversal of credit losses of $1.8 $2.0 million compared to a reversal of credit losses of $3.5 $3.3 million for the six nine months ended June September 30, 2025 .

Noninterest income increased $0.5 $0.1 million, or 18.0% 2.1% , to $3.1 $3.0 million for the three months ended June September 30, 2026 , compared to $2.6 $3.0 million for the three months ended June September 30, 2025 . Noninterest income increased $1.4 $1.5 million, or 31.1% 19.7% , to $6.1 $9.1 million for the six nine months ended June September 30, 2026 , compared to $4.6 $7.6 million for the six nine months ended June September 30, 2025 .

Noninterest expense increased $6.2 million, or 37.6%, to $22.7 million for the three months ended September 30, 2026, compared to $16.5 million for the three months ended September 30, 2025. Noninterest expense increased $20.8 million, or 42.0%, to $70.2 million for the nine months ended September 30, 2026, compared to $49.5 million for the nine months ended September 30, 2025.

Nonperforming loans were 0.63% 0.70% of total loans at June September 30, 2026 , compared to 0.43% at December 31, 2025 .

Return on average assets increased to 0.98% 1.21% for the three months ended June September 30, 2026 , compared to 0.66% 0.88% for the three months ended June September 30, 2025 . Return on average assets increased to 1.11% 1.15% for the six nine months ended June September 30, 2026 , compared to 0.80% 0.82% for the six nine months ended June September 30, 2025 .

Return on average common equity was 9.19% 11.16% for the three months ended June September 30, 2026 , compared to 7.07% 8.60% for the three months ended June September 30, 2025 . Return on average common equity was 10.64% 10.82% for the six nine months ended June September 30, 2026 , compared to 8.66% 8.64% for the six nine months ended June September 30, 2025 .

Book value per common share reached a record high of $28.29 was $27.89 at June September 30, 2026, compared to $27.63 at December 31, 2025 .

During the three months ended June September 30, 2026 , we paid $0.8 $0.7 million to repur chase 27,235 25,113 shares of common stock compared to $0.6 $0.3 million to repurchase 36,065 14,722 shares of common stock during the t hree three months ended June September 30, 2025 . During the six nine months ended June September 30, 2026 , we paid $2.3 $3.1 million to repur chase 80,655 105,768 shares of common stock compared to $1.3 $1.6 million to repurchase 71,057 85,779 shares of common stock during the six nine months ended June September 30, 2025 .

Stockholders' equity increased $119.1 $112.9 million, or 39.5%, 37.5%, to $420.1 $414.0 million at June September 30, 2026 compared to $301.1 million at December 31, 2025.

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General . Loans constitute our most significant asset, comprising 79.2% 79.3% and 76.8% of our total assets at June September 30, 2026 and December 31, 2025, respectively. Total loans increased $883.9 $890.8 million, or 40.6%, 40.9%, to $3.06 $3.07 billion at June September 30, 2026, compared to $2.18 billion at December 31, 2025. The increase in loans was primarily the result of the acquisition of WFB, which increased total loans by $961.9 million on January 1, 2026. We are emphasizing the origination of high margin loans that promote long-term profitability and proactively exiting credit relationships that do not fit this strategy. Our variable-rate loans as a percentage of total loans increased to 50% 51% at June September 30, 2026 compared to 38% at December 31, 2025. Included in variable-rate loans as of June September 30, 2026 are adjustable-rate mortgage loans we acquired in connection with our acquisition of WFB.

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At June September 30, 2026, the Company's business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $1.21 $1.25 billion, an increase of $156.1 $194.1 million, or 14.8%, 18.4%, compared to $1.06 billion at December 31, 2025. The increase in the business lending portfolio was primarily driven by the acquisition of WFB and increased commercial and industrial loan production, partially offset by loan amortization.

Construction and development loans totaled $261.8 $228.5 million at June September 30, 2026, an increase of $113.8 $80.5 million, or 76.9%, 54.4%, compared to $148.0 million at December 31, 2025. The increase in construction and development loans was primarily due to the acquisition of WFB, partially offset by planned run off of loans acquired from WFB, consisting primarily of consumer mortgage and nonowner-occupied construction loans, and conversions to permanent loans upon completion of construction.

1-4 Family loans totaled $907.4 $924.4 million at June September 30, 2026, an increase of $531.1 $548.1 million, or 141.2%, 145.7%, compared to $376.2 million at December 31, 2025. The increase in 1-4 family loans was primarily due to the acquisition of WFB. Substantially all of the 1-4 family loans acquired from WFB were consumer mortgage loans with an adjustable rate.

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The consumer mortgage portfolio was approximately $849.0 $814.0 million a nd $224.5 million at June September 30, 2026 and December 31, 2025, respectively. The increase was due to the acquisition of WFB. Our consumer mortgage portfolio is included in the 1-4 family and construction and development categories. At June September 30, 2026 , the remaining loans in the construction and development category consisted primarily of commercial properties, and t he remaining loans in the 1-4 family category consisted primarily of second mortgages, home equity loans, home equity lines of credit, and business purpose loans secured by 1-4 family residential real estate.

Nonowner-occupied loans totaled $512.5 $497.1 million at June September 30, 2026, an increase of $60.3 $45.0 million, or 13.3%, 9.9%, compared to $452.1 million at December 31, 2025. The increase in nonowner-occupied loans was primarily due to the acquisition of WFB, organic growth and conversions of construction and development loans to nonowner-occupied loans upon completion of construction, partially offset by loan amortization.

Loan Concentrations . Loan concentrations are considered to exist when there are amounts loaned to multiple borrowers engaged in similar activities that would cause them to be similarly impacted by economic or other conditions. At June September 30, 2026 and December 31, 2025, we had no concentrations of loans exceeding 10% of total loans other than loans in the categories listed in the table above.

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Accommodation and food services

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Accommodation and food services

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The following table reflects contractual loan maturities of loans in our loan portfolio and the amount of such loans with fixed and variable interest rates in each maturity range at June September 30, 2026 (dollars in thousands). Adjustable-rate mortgage loans that we acquired in connection with our acquisition of WFB are reflected in the "Loans with variable rates " portion of the table; however, the rate of these loans is generally fixed for an initial period depending on the loan terms.

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We purchase investment securities primarily to provide a source for meeting liquidity needs, with return on investment a secondary consideration. We also use investment securities as collateral for certain deposits and other types of borrowings. Investment securities represented 11.9% of our total assets and totaled $458.5 $459.7 million at June September 30, 2026, an increase of $39.7 $40.9 million, or 9.5% 9.8% , from $418.8 million at December 31, 2025 . The increase in investment securities at June September 30, 2026 compared to December 31, 2025 was driven primarily by a $16.7 an $18.8 million increase in commercial mortgage-backed securities, an $18.6 million increase in obligations of the U.S. Treasury and U.S. government agencies and corporations a $14.4 million increase in residential mortgage-backed securities and a $9.0 $6.3 million increase in commercial residential mortgage-backed securities. . Due in large part to higher interest rates and market volatility, net unrealized losses in our AFS investment securities portfolio totaled $48.0 $67.4 million at June September 30, 2026, compared to $45.4 million at December 31, 2025. For additional information, see Note 4. Investment Securities.

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The investment portfolio consists of AFS and HTM securities. We do not hold any investments classified as trading. We classify debt securities as HTM if management has the positive intent and ability to hold the securities to maturity. HTM debt securities are stated at amortized cost. Securities not classified as HTM are classified as AFS and are stated at fair value. The carrying values of our AFS securities are adjusted for unrealized gains or losses not attributable to credit losses as valuation allowances, and any gains or losses are reported on an after-tax basis as a component of other comprehensive (loss) income. As of June September 30, 2026, AFS securities comprised 90% of our total investment securities compared to 88% at December 31, 2025.

We perform a quarterly assessment to develop an estimate of expected credit losses on the investment portfolio, which considers the nature of the investments, credit ratings, current interest rate environment, the financial health of the issuer, ratings changes and outlook, explicit and implicit guarantees, and insurance programs, among other factors. The unrealized losses in obligations of state and political subdivisions were caused by interest rate changes. These securities generally benefit from stable, dedicated revenue sources and a legal framework that prioritizes bondholder payments, which significantly mitigates credit risk. The unrealized losses in mortgage-backed securities were caused by interest rate changes. These securities are either guaranteed by the U.S. government or by a government sponsored government-sponsored enterprise and are generally considered to be risk-free. We intend to hold these securities either until maturity or a forecasted recovery, and it is more likely than not that the Company will not have to sell the securities before the recovery of their amortized cost basis. We determined that the declines in the fair values of the AFS and HTM securities portfolio were not attributable to credit losses at June September 30, 2026 and December 31, 2025 . Accordingly, no ACL was recorded related to our investment securities.

The table below sets forth the stated maturities and weighted average yields of our investment debt securities based on the amortized cost of our investment portfolio at June September 30, 2026 (dollars in thousands).

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The maturity of mortgage-backed securities reflects scheduled repayments repaymen ts based upon the contractual maturities of the securities. Weighted average yields on tax-exempt securities are calculated based on amortized cost on a fully tax equivalent basis assuming a federal tax rate of 21%, when applicable.

The following table sets forth the composition of our deposits and the percentage of each deposit type to total deposits at June September 30, 2026 and December 31, 2025 (dollars in thousands).

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Total deposits were $3.21 $3.18 billion at June September 30, 2026 , an increase of $863.6 $830.5 million, or 36.7%, 35.3% , compared to $2.35 billion at December 31, 2025 . The increase in deposits was primarily the result of the acquisition of WFB, which increased total deposits by $1.02 billion on January 1, 2026, consisting of $187.9 million and $835.5 million of noninterest-bearing deposits and interest-bearing deposits, respectively.

The increase in noninterest-bearing demand deposits, interest-bearing demand deposits, and money market deposits at June September 30, 2026 compared to December 31, 2025 was primarily the result of the acquisition of WFB and organic growth. The increase in time deposits at June September 30, 2026 compared to December 31, 2025 was primarily the result of the acquisition of WFB, partially offset by the run-off of higher yielding time deposits. Brokered time deposits decreased to $62.9 $64.0 million at June September 30, 2026 from $204.1 million at December 31, 2025. We utilize brokered time deposits, entirely in denomi nations of less than $250,000, to secure fixed cost funding and reduce short-term borrowings. At June September 30, 2026 , the balance of brokered time deposits remained below 10% of total assets, and the remaining weighted average duration was approximately four five months with a weighted average rate of 3.78%. 3.93% . At December 31, 2025, the balance of brokered time deposits was below 10% of total assets, and the remaining weighted average duration was approximately five months with a weighted average rate of 4.03% .

At June September 30, 2026, our estimated uninsured deposits were $1.10 $1.13 billion , or approximately 34% 36% of total deposits, compared to $793.2 million, or approximately 34% of our total deposits at December 31, 2025. The estimates are based on the same methodologies and assumptions used for our regulatory reporting requirements. The insured deposit data does not reflect an evaluation of all of the account ownership category distinctions that would determine the availability of deposit insurance to individual accounts based on FDIC regulations.

The following table shows scheduled maturities of time deposits in excess of the FDIC insurance limit of $250,000 at June September 30, 2026 and December 31, 2025 (dollars in thousands).

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At June September 30, 2026, total borrowings included securities s old under agreements to repurchase, FHLB advances, subordinated debt issued in 2022, an d junior subordinated debentures assumed through acquisitions.

We had $18.6 $10.4 million of securities sold under agreements to repurchase at June September 30, 2026 and $11.2 million at December 31, 2025.

Our advances from the FHLB were $136.0 $184.5 million at June September 30, 2026, an increase of $20.0 $68.5 million compared to FHLB advances of $116.0 million at December 31, 2025. Based on original maturities, at June September 30, 2026, $36.0 $84.5 million were short-term and $100.0 million were long-term FHLB advances , compared to $36.0 million short-term and $80.0 million long-term FHLB advances at December 31, 2025 . FHLB advances are used to fund new loan and investment activity that is not funded by deposits or other borrowings.

The main source of our short-term borrowings are advances from the FHLB. The rate charged for advances from the FHLB is directly tied to the Federal Reserve's federal funds target rate. As of June September 30, 2026, the federal funds target rate was 3.50% to 3.75% to 4.00%.

The average balances and cost of short-term borrowings for the three and six nine months ended June September 30, 2026 and 2025 are summarized in the table below (dollars in thousands).

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Six months ended June 30,

Six months ended June 30,

Three months ended June September 30,

Nine months ended September 30,

Three months ended June September 30,

Nine months ended September 30,

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Six months ended June 30,

The following table sets forth certain information regarding securities sold under agreements to repurchase for the three and six nine months ended June September 30, 2026 and 2025 (dollars in thousands).

Three months ended June September 30,

Nine months ended September 30,

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The carrying value of the subordinated debt, which consists entirely of our 2032 Notes, was $16.8 million and $16.7 million at June September 30, 2026 and December 31, 2025, respectively. The $23.0 million and $8.8 million in junior subordinated debt at June September 30, 2026 and December 31, 2025 , respectively, represented the junior subordinated debentures that we assumed through acquisitions. The increase in junior subordinated debt was due to the acquisition of WFB and consisted of $9.2 million of unsecured debt obligations due to trusts and a $5.0 million loan, which matures in October 2029, related to our Southlake corporate office. On January 1, 2026, we assumed WFB's obligations on an unsecured basis with respect to a $10.0 million note to TIB, N.A. We repaid the note in full in January 2026.

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Stockholders' equity was $420.1 $414.0 million at June September 30, 2026, an increase of $119.1 $112.9 million compared to December 31, 2025. The increase was primarily attributable to the acquisition of WFB $21.5 and $33.2 million of net income for the six nine months ended June September 30, 2026, partially offset by $3.2 million in dividends declared on common stock, $2.3 million for share repurchases, a $2.1 $17.5 million increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank's AFS securities portfolio, $4.8 million in dividends declared on common stock, $3.1 million for share repurchases, and $1.1 $1.6 million in dividends declared on the Series A Preferred Stock.

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Six months ended June 30,

Three months ended June September 30,

Nine months ended September 30,

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The primary factors affecting net interest margin are changes in interest rates, competition, and the shape of the interest rate yield curve. The Federal Reserve Board sets various benchmark rates, including the federal funds target rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions. During 2025, beginning in September, the Federal Reserve reduced the federal funds target rate three times by 75 basis points on a cumulative basis to a range of 3.50% to 3.75%. In September 2026, the Federal reserve raised the federal funds target rate by 25 basis points to a range of 3.75% to 4.00%, where it remained as of August 6, November 5, 2026. Accordingly, the prevailing federal funds target rate during the three and six nine months ended June September 30, 2026 was lower than during the three and six nine months ended June September 30, 2025. For additional discussion, see Certain Events That Affect Period-over-Period Comparability – Changing Inflation and Interest Rates.

Three months ended June September 30, 2026 vs. three months ended June September 30, 2025 . Net interest income increased 70.3% 59.6% to $33.4 $33.8 million for the three months ended June September 30, 2026 compared to $19.6 $21.2 million for the same period in 2025. The increase was primarily due to a higher average balance of, and an increase in the yield on, the loan portfolio, and a decrease in the average balance of brokered time deposits, partially offset by an increase in the average balance of interest-bearing demand deposits and time deposits. Average loans increased by $945.4 $897.1 million for the three months ended June September 30, 2026 primarily due to the acquisition of WFB, which, in addition to higher loan yields, resulted in a $16.6 $15.7 million increase in interest income on loans compared to the same period in 2025. Average brokered time deposits were $73.5 $47.2 million for the three months ended June September 30, 2026 compared to $255.4 $242.2 million during the three months ended June September 30, 2025, which along with lower rates paid, resulted in a $2.3 $2.4 million decrease in interest expense for the three months ended June September 30, 2026 compared to the same period in 2025. Average interest-bearing demand deposits increased by $526.2 $507.5 million, which, combined with an increase in rates, resulted in a $3.3 $3.2 million increase in interest expense in the second third quarter of 2026 compared to the same period in 2025. A higher average balance of time deposits partially offset by a decrease in rates paid on time deposits resulted in a $2.0 $2.1 million increase in interest expense compared to the same period in 2025. Average noninterest-bearing deposits increased by $178.7 $172.9 million. Our yield on interest-earning assets increased primarily due to an increase in the average balance of, and the yield on, the loan portfolio. Rates paid on interest-bearing liabilities decreased primarily as a result of the overall decrease in prevailing interest rates.

Interest income was $53.2 $53.3 million for the three months ended June September 30, 2026, compared to $35.4 $37.1 million for the same period in 2025. Loan interest income made up substantially all of our interest income for the three months ended June September 30, 2026 and 2025, although interest on investment securities contributed 8.5% 8.6% of interest income during the second third quarter of 2026 compared to 10.3% 10.2% during the second third quarter of 2025. The overall yield on interest-earning assets was 5.83% 5.88% and 5.45% 5.53% for the three months ended June September 30, 2026 and 2025, respectively. The loan portfolio yielded 6.28% 6.30% and 5.94% 6.03% for the three months ended June September 30, 2026 and 2025, respectively, while the yield on the investment portfolio was 3.52% for the three months ended June September 30, 2026 compared to 3.22% 3.28% for the three months ended June September 30, 2025. The overall yield on interest-earning assets increased 38 35 basis points for the quarter ended June September 30, 2026 compared to the quarter ended June September 30, 2025 and was primarily driven by a 34 27 basis point increase in the yield on the loan portfolio and a 30 24 b asis point increase in the yield on the investment securities portfolio.

Interest expense was $19.8 $19.6 million for the three months ended June September 30, 2026, an increase of $4.0 $3.6 million compared to interest expense of $15.7 $15.9 million for the three months ended June September 30, 2025. An increase in interest expense of $4.9 $4.3 million resulted from an increase in the volume of interest-bearing liabilities, primarily interest-bearing demand deposits and time deposits, partially offset by a decrease in the volume of $0.8 brokered time deposits. A decrease of $0.7 million resulted from the decrease in the cost of interest-bearing liabilities, primarily time deposits and brokered time deposits. Average interest-bearing liabilities increased by $789.9 $705.2 million for the three months ended June September 30, 2026 compared to the same period in 2025, while average interest-bearing deposits increased by $682.3 $634.0 million, primarily due to an increase in average interest-bearing demand deposits and average time deposits, partially offset by a decrease in average brokered time deposits. We increased rates on our interest-bearing demand deposits during the second third quarter of 2026 compared to the second third quarter of 2025 to attract and retain lower cost deposits relative to higher cost short-term borrowings and brokered time deposits, and the interest-bearing demand deposits acquired from WFB had a higher rate than legacy interest-bearing demand deposits. Average time deposits increased due to the acquisition of WFB; however, we reduced rates on our time deposits during the second third quarter of 2026 compared to the second third quarter of 2025 due to lower prevailing market interest rates . The cost of interest-bearing deposits decreased 34 31 basis points to 2.72% 2.73% for the three months ended June September 30, 2026 compared to 3.06% 3.04% for the three months ended June September 30, 2025 primarily as a result of a lower average balance of, and a decrease in rates paid on, brokered time deposits and a decrease in rates paid on time deposits, partially offset by a higher average balance of time deposits and a higher average balance of, and an increase in the rates paid on, interest-bearing demand deposits. The cost of interest-bearing liabilities decreased 31 28 basis points to 2.82% 2.83% for the three months ended June September 30, 2026 compared to 3.13% 3.11% for the same period in 2025.

Net interest margin was 3.67% 3.73% for the three months ended June September 30, 2026, an increase of 64 57 basis points from 3.03% 3.16% for the three months ended June September 30, 2025. The increase in net interest margin was primarily driven by a 38 35 basis point increase in the yield on interest-earning assets and a 31 28 basis point decrease in the cost of interest-bearing liabilities .

Average Balances and Yields . The following table sets forth average balance sheet data, including all major categories of interest-earning assets and interest-bearing liabilities, together with the interest earned or paid and the average yield or rate paid on each such category for the three months ended June September 30, 2026 and 2025. Averages presented in the table below are daily averages (dollars in thousands).

Three months ended June September 30,

Interest Income/ Expense (1)

Interest Income/ Expense (1)

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Three months ended June September 30, 2026 vs.

Three months ended June September 30, 2025

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Six months ended June 30,

Six Nine months ended June September 30, 2026 vs. six nine months ended June September 30, 2025 . Net interest income increased 74.0% 68.9% to $66.1 $99.9 million for the six nine months ended June September 30, 2026 compared to $38.0 $59.1 million for the same period in 2025. The increase was primarily due to a higher average balance of, and an increase in the yield on, the loan portfolio, and a decrease in the average balance of brokered time deposits, partially offset by an increase in the average balance of interest-bearing demand deposits and time deposits. Average loans increased by $966.1 $942.9 million for the six nine months ended June September 30, 2026 primarily due to the acquisition of WFB, which, in addition to higher loan yields, resulted in a $34.0 $49.7 million increase in interest income on loans compared to the same period in 2025. Average brokered time deposits were $112.7 $90.6 million for the six nine months ended June September 30, 2026 compared to $253.8 $249.9 million during the six nine months ended June September 30, 2025, which along with lower rates paid, resulted in a $3.8 $6.2 million decrease in interest expense for the six nine months ended June September 30, 2026 compared to the same period in 2025. Average interest-bearing demand deposits increased by $522.1 $517.2 million, which, combined with an increase in rates, resulted in a $6.9 $10.1 million increase in interest expense in the six nine months ended June September 30, 2026 compared to the same period in 2025. A higher average balance of time deposits partially offset by a decrease in rates paid on time deposits resulted in a $4.1 $6.1 million increase in interest expense compared to the same period in 2025. Average noninterest-bearing deposits increased by $191.1 $185.0 million. Our yield on interest-earning assets increased primarily due to an increase in the average balance of, and the yield on, the loan portfolio. Rates paid on interest-bearing liabilities decreased primarily as a result of the overall decrease in prevailing interest rates.

Interest income was $106.4 $159.7 million for the six nine months ended June September 30, 2026, compared to $69.8 $106.9 million for the same period in 2025. Loan interest income made up substantially all of our interest income for the six nine months ended June September 30, 2026 and 2025, although interest on investment securities contributed 8.1% 8.3% of interest income during the six nine months ended June September 30, 2026 compared to 10.0% 10.1% during the six nine months ended June September 30, 2025. The overall yield on interest-earning assets was 5.85% 5.86% and 5.42% 5.46% for the six nine months ended June September 30, 2026 and 2025, respectively. The loan portfolio yielded 6.28% 6.29% and 5.91% 5.95% for the six nine months ended June September 30, 2026 and 2025, respectively, while the yield on the investment portfolio was 3.48% 3.49% for the six nine months ended June September 30, 2026 compared to 3.16% 3.20% for the six nine months ended June September 30, 2025. The overall yield on interest-earning assets increased 43 40 basis points for the six nine months ended June September 30, 2026 compared to the six nine months ended June September 30, 2025 and was primarily driven by a 37 34 basis point increase in the yield on the loan portfolio and a 32 29 b asis point increase in the yield on the investment securities portfolio.

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and 76 more changes in the filing

Market risk 1 change

Quantitative and qualitative disclosures about market risk as of December 31, 2025 are set forth in the Company's Annual Report in the section captioned "MD&A – Risk Management." Please refer to the information in Item 2. "MD&A – Risk Management" in this report for additional information about the Company's market risk for the six nine months ended June September 30, 2026; except as discussed therein, there have been no material changes in the Company's market risk since December 31, 2025.

Unregistered sales of stock 9 changes

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The table below provides information with respect to purchases made by the Company of shares of its common stock during each of the months during the three month period ended June September 30, 2026.

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April 1, 2026 - April 30, 2026

May 1, 2026 - May 31, 2026

June 1, 2026 - June 30, 2026

July 1, 2026 - July 31, 2026

August 1, 2026 - August 31, 2026

September 1, 2026 - September 30, 2026

Includes 30,255 s h ar 264 shar es of common stock surrendered to cover the payroll taxes due upon the vesting of RSUs. .

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The Company has had a share repurchase program, which has no expiration date, since 2015. On July 19, 2023 and September 21, 2022, the Board approved an additional 350,000 shares and 300,000 shares, respectively, of the Company's common stock for repurchase under the share repurchase program. As of June September 30, 2026 , the Company had 300,741 275,628 shares remaining avail able under the program.

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Other information 1 change

Pursuant to Item 408 (a) of Regulation S-K, none of our directors or executive officers adopted, terminated, or modified a Rule 10b5 - 1 trading arrangement or a non-Rule 10b5 - 1 trading arrangement during the quarter ended June September 30, 2026 .

Exhibits 11 changes

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Employment Agreement, dated as of July 17, 2026, by and between Investar Bank, National Association and Linda M. Crochet

Employment Agreement, dated as of July 17, 2026, by and between Investar Bank, National Association and Jeffrey W. Martin

Salary Continuation Agreement, dated as of July 17, 2026, by and between Investar Bank, National Association and Linda M. Crochet

Salary Continuation Agreement, dated as of July 17, 2026, by and between Investar Bank, National Association and Jeffrey W. Martin

Second Amended and Restated Investar Holding Corporation 2017 Long-Term Incentive Compensation Plan (8)

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Filed as exhibit 10.1 to the Current Report on Form 8-K filed with the SEC on May 22, 2026 and incorporated herein by reference.

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** Management contract or compensatory plan or arrangement.

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Date: August 6, 2026

Date: November 5, 2026

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Date: August 6, 2026

Date: November 5, 2026

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