Overview

* Investar ( ISTR ) Q2 adjusted EPS beats analyst expectations, per LSEG data

* Net income for Q2 declines compared to Q1 but rises yr/yr

* Co announces acquisition of Wichita Falls Bancshares, expanding asset base

Outlook

* Company sees Wichita Falls acquisition as transformational for growth

* Investar ( ISTR ) aims for interest rate neutral balance sheet with new loans

Result Drivers

* NET INTEREST MARGIN - Improved by 16 basis points to 3.03% due to reduced funding costs and increased yields on interest-earning assets

* DEPOSIT MIX - Optimization by replacing higher-cost time deposits with lower-cost interest-bearing deposits contributed to decreased cost of funds

* BUSINESS LENDING - Growth in business lending portfolio, particularly in variable-rate loans, supports interest rate neutral balance sheet strategy

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $0.47 $0.38 (3

Adjusted Analysts

EPS )

Q2 EPS $0.46

Q2 Net $4.49

Income mln

Q2 Net $19.64

Interest mln

Income

Q2 Beat $5.43 $4.87

Pretax mln mln (3

Profit Analysts

)

Q2 Net 3.0%

Interest

Margin

(%)

Q2 $141,000

Provisio

n for

Credit

Losses

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the banks peer group is "buy"

* Wall Street's median 12-month price target for Investar Holding Corp ( ISTR ) is $27.00, about 18.7% above its July 18 closing price of $21.96

* The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)