Investar Holding Corporation announced net income of $6.3 million, or $0.63 per diluted common share, for the first quarter of 2025. This represents an increase from $6.1 million, or $0.61 per diluted common share, in the fourth quarter of 2024, and $4.7 million, or $0.48 per diluted common share, in the first quarter of 2024. The results demonstrate continued positive momentum in the company's earnings.
The company's net interest margin improved by 28 basis points, reaching 2.87% in Q1 2025 compared to 2.59% in Q1 2024. This expansion was primarily driven by a 29 basis point decrease in the cost of interest-bearing liabilities, reflecting successful efforts to manage funding costs. Net interest income increased by 6.6% to $18.3 million, a core driver of earnings.
Investar recorded a favorable negative provision for credit losses of $3.6 million in Q1 2025, which included a significant $3.3 million recovery of loans previously charged off due to a property insurance settlement related to Hurricane Ida. Asset quality improved, with nonaccrual loans decreasing to $5.6 million, or 0.27% of total loans, down from $8.8 million at December 31, 2024. The company maintained strong liquidity and capital ratios, with stockholders' equity reaching a record high of $251.7 million.
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