Investar (ISTR) is a regional bank holding company. Here are a couple of analogies:

• A regional bank similar to **Regions Financial** or **Truist Financial**, but primarily concentrated in Louisiana, Texas, and Alabama.

• Think of it as a smaller, Gulf Coast-focused version of a traditional commercial bank like **Bank of America** or **Wells Fargo**.

• Deposit Accounts: Providing various checking, savings, money market, and certificate of deposit accounts for individuals and businesses.
• Commercial Lending: Offering commercial real estate, commercial and industrial, and construction and land development loans to businesses.
• Residential Mortgage Lending: Providing loans to individuals for the purchase, construction, or refinance of residential properties.
• Consumer Lending: Offering personal loans, auto loans, and other credit facilities to individual consumers.
• Treasury Management Services: Delivering cash management solutions such as online banking, ACH services, and remote deposit capture for businesses.

Investar Holding Corporation (NASDAQ: ISTR) operates as a bank holding company for Investar Bank, National Association. As a financial institution, Investar Bank primarily serves a broad and diverse customer base rather than relying on a few major corporate customers in the traditional sense.

The company primarily serves the following categories of customers:

• Individual Consumers: Individuals seeking personal banking services, including checking and savings accounts, mortgages, home equity loans, personal loans, and credit cards.
• Small and Medium-sized Businesses (SMBs): Businesses requiring commercial banking services such as business checking and savings accounts, commercial loans, lines of credit, treasury management, and merchant services.
• Commercial Real Estate (CRE) Investors and Developers: Businesses and individuals involved in commercial real estate projects, seeking financing for the acquisition, construction, and development of various property types.

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John J. D'Angelo, President and Chief Executive Officer

Mr. D'Angelo has served as the President and Chief Executive Officer of Investar Holding Corporation since its organization as a bank holding company in 2013 and has been the President and Chief Executive Officer of Investar Bank since its founding in 2006. Prior to founding Investar Bank, he was the president and director of Aegis Lending Corporation from 1996 to 2005, a company with lending operations in 46 states and the District of Columbia. He also managed the private banking, small business banking, construction lending, brokerage, and trust areas of Hibernia National Bank (predecessor to Capital One, N.A.) for over six years. Mr. D'Angelo holds a Bachelor of Science in Accounting from Louisiana State University and previously worked for KPMG in the audit area, specializing in banks and oil & gas companies.

John R. Campbell, Executive Vice President and Chief Financial Officer

Mr. Campbell joined Investar Bank in January 2023 as the Chief Financial Officer. Before his tenure at Investar, he was the Director of Accounting and Corporate Controller for Laitram LLC, a global manufacturing company. For more than ten years prior to 2005, Mr. Campbell held various roles in corporate treasury, accounting and financial reporting, portfolio management, and lending at Hibernia National Bank. He also spent four years as an auditor with Ernst & Young LLP, serving both public and privately-held clients. Mr. Campbell is a Certified Public Accountant and holds a Bachelor of Science in Finance from Louisiana State University.

Linda M. Crochet, Executive Vice President and Chief Operations Officer

Ms. Crochet has served as the Executive Vice President and Chief Operating Officer at Investar Holding Corporation since October 2021. Before this role, she was the Greater Baton Rouge Loan Portfolio President, a position she held starting in January 2019.

Jeffrey W. Martin, Executive Vice President and Chief Risk Officer and Chief Credit Officer

Mr. Martin joined Investar Bank in April 2020 as the Business Banking Director. He assumed the role of Chief Credit Officer in October 2021 and was appointed Chief Risk Officer in October 2025. Mr. Martin brings over 30 years of banking experience, including senior roles in credit risk management, special assets, business development strategy, and commercial banking, and previously served as a Commercial Banking Executive for Regions Bank.

Jeffery L. Blum, Executive Vice President and Chief Banking Officer

Mr. Blum, who was previously the Executive Vice President and Regional President of the Western Division, was promoted to Chief Banking Officer in October 2025. In this expanded role, he is responsible for the Western (including Texas), Central, and Eastern (including Alabama) markets, along with newly created divisions for retail/business banking and commercial and industrial. Mr. Blum has more than 30 years of banking experience with large financial institutions.

1. Financial Performance and Economic Volatility: Investar has experienced lackluster financial performance, including low revenue growth and a decrease in earnings per share. The company's performance is also susceptible to persistent volatility within regional bank stocks and broader uncertain economic conditions, which can quickly shift market sentiment and limit near-term upside.
2. Concentration Risk in Key Technology Supplier Relationships: Investar Holding Corporation exhibits a significant concentration risk due to its reliance on a limited number of core banking technology vendors. The top three technology vendors account for 89% of its total technology procurement, indicating a high dependency that could lead to operational vulnerabilities or increased costs if relationships with these suppliers are disrupted or terms change unfavorably.
3. Competition from Digital Banking and Fintech Alternatives: The banking sector is experiencing increasing competition from growing digital banking platforms and fintech alternatives. With digital banking platforms having a substantial market penetration and fintech companies acquiring millions of users, Investar faces the challenge of adapting to evolving digital banking customer expectations and maintaining its competitive edge in an increasingly digital financial landscape.

The clear emerging threat to Investar (ISTR) is the increasing competition from digital-only banks and financial technology (fintech) companies. These entities leverage advanced technology to offer banking services with lower overhead, often resulting in more competitive rates, reduced fees, and superior digital user experiences compared to traditional brick-and-mortar community banks. This trend directly challenges Investar's ability to attract and retain customers, particularly younger demographics and tech-savvy individuals who prioritize convenience and digital access over physical branch presence, mirroring the disruptive impact seen in other industries by companies like Netflix or Uber.

The addressable markets for Investar's main products and services are identified by the commercial banking industry market sizes and overall banking deposits and assets within its operating regions of Louisiana, Texas, and Alabama.

Louisiana

• The Commercial Banking industry in Louisiana is estimated to have a market size of approximately $10.2 billion in 2025.
• Total assets for banks in Louisiana were approximately $79.30 billion as of June 30, 2025.
• Major deposit markets in Louisiana, as of the 2025 Summary of Deposits, include:
  • New Orleans-Metairie: approximately $35.1 billion.
  • Baton Rouge: approximately $25.8 billion.
  • Lafayette: approximately $11.9 billion.

Texas

• The Commercial Banking industry in Texas is estimated to have a market size of approximately $108.7 billion in 2025.
• Deposits held by banks in the Dallas-Fort Worth region totaled approximately $714.7 billion as of June 30, 2023.
• Texas state-chartered banks collectively held approximately $452.3 billion in total assets as of December 31, 2024.
• Community banks in Texas account for approximately 47% of loans, 33% of assets, and 34% of deposits held by all banks in the state.

Alabama

• The Commercial Banking industry in Alabama is estimated to have a market size of approximately $21.7 billion in 2025.
• Total deposits for 95 banks in Alabama amounted to approximately $185.23 billion as of September 30, 2024.
• Total assets for Alabama state-chartered banks were approximately $214.94 billion at fiscal year-end 2022.

1. Acquisitions: Investar's pending acquisition of Wichita Falls Bancshares is a significant driver, with the transaction anticipated to close around January 1, 2026. This expansion into new markets through acquisition is expected to contribute to future revenue growth.
2. Loan Growth: The company has demonstrated consistent loan growth, with total loans increasing and new business primarily focused on higher-yielding variable-rate loans. This growth in its loan portfolio directly translates to increased interest income, a primary component of revenue for a bank.
3. Net Interest Margin (NIM) Improvement: Investar has successfully improved its net interest margin by optimizing its balance sheet. This involves strategically growing higher-yielding assets and efficiently managing funding costs, leading to a more profitable spread between interest earned and interest paid.
4. Balance Sheet Optimization and Strategic Initiatives: Management has emphasized a strategy of consistent, quality earnings through the optimization of its balance sheet. This includes a focus on originating higher-yielding loans and actively managing funding costs to enhance overall profitability and revenue.

Share Repurchases

• Investar repurchased 14,722 common shares at an average price of $21.55 per share during the third quarter of 2025.
• In the first two quarters of 2023, the company repurchased 138,275 shares at an average price of $14.39.
• Investar paid $10.5 million to repurchase shares in 2022, and as of December 31, 2022, 386,714 shares remained authorized for repurchase under the company's stock repurchase program.

Share Issuance

• On July 1, 2025, Investar completed a $32.5 million private placement of 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock, resulting in net proceeds of approximately $30.4 million.
• The Series A preferred stock is convertible into Investar common stock at a rate of 47.619 shares per preferred share.

Inbound Investments

• Investar received a $32.5 million investment through the private placement of its 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock on July 1, 2025, from institutional and accredited investors.
• The proceeds from this offering are intended to support the acquisition of Wichita Falls Bancshares, Inc. and for general corporate purposes, including organic growth and potential future acquisitions.

Outbound Investments

• Investar announced an agreement on July 1, 2025, to merge with Wichita Falls Bancshares, Inc. in an acquisition valued at approximately $83.6 million, comprising 3,955,334 shares of Investar common stock and $7.2 million in cash. This acquisition is expected to close around January 1, 2026.
• On April 1, 2021, Investar acquired Cheaha Financial Group, Inc. and its wholly-owned subsidiary Cheaha Bank.
• On February 21, 2020, Investar Bank acquired two branches from PlainsCapital Bank.

Capital Expenditures