Investar Holding Corporation (ISTR): Business Model Canvas [Dec-2025 Updated]

You're looking to understand the engine behind this regional bank's growth, and frankly, the Q3 2025 numbers tell a clear story: this is a relationship-focused player actively expanding, soon closing on Wichita Falls. With $2.15 billion in loans and a 3.16% Net Interest Margin, their model hinges on high-touch service across Louisiana, Texas, and Alabama, funded by recent capital raises like that $32.5 million preferred stock placement. If you want to see exactly how their local decision-making translates into approximately $37.1 million in quarterly revenue, dive into the full Business Model Canvas below.

Investar Holding Corporation (ISTR) - Canvas Business Model: Key Partnerships

You're mapping out the strategic alliances that fuel Investar Holding Corporation's growth as of late 2025. These relationships are critical for both balance sheet expansion and regulatory compliance, so let's look at the hard numbers behind them.

The most significant partnership driving Investar Holding Corporation's current strategy is the acquisition of Wichita Falls Bancshares, Inc. (FNB). This deal, announced on July 1, 2025, is designed to expand Investar's footprint into the north Texas market. As of September 30, 2025, FNB reported total assets of $1.3 billion, along with $1.1 billion in net loans and $1.1 billion in total deposits. The total consideration for Wichita Falls shareholders was pegged at approximately $83.6 million, based on Investar's June 30, 2025, closing price of $19.32 per share. This consideration involved a mix of cash, specifically $7.2 million, and 3,955,334 shares of Investar common stock. The merger is expected to create a combined entity with over $4 billion in assets, with closing anticipated around January 1, 2026, following shareholder approvals on October 23-24, 2025.

To help fund this strategic M&A and support organic growth, Investar Holding Corporation partnered with institutional investors in a private placement. This involved the completion of a $32.5 million offering of its newly designated 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock on July 1, 2025. The stated dividend rate on this preferred stock is 6.5% per annum. Investar estimated the net proceeds after deducting placement agent fees and other expenses to be approximately $30.4 million. This capital raise strengthened the balance sheet ahead of the acquisition, with the total capital ratio rising to 14.66% and tangible common equity/tangible assets reaching 8.10% as of Q3 2025.

The successful execution of both the merger and the capital raise relied heavily on approvals from federal banking regulators, including the Office of the Comptroller of the Currency (OCC) and the Federal Reserve. By October 30, 2025, Investar confirmed it had received the necessary approvals from these regulators, alongside shareholder approvals. The structure of the preferred stock offering was also designed to qualify as additional Tier 1 capital for regulatory purposes.

For the capital raise, specific financial intermediaries served as key partners to facilitate the private placement with institutional and accredited investors. The table below details the roles of the placement agents:

These placement agents were instrumental in structuring and selling the preferred stock, which raised $32.5 million in gross proceeds. The resale registration for the common stock issuable upon conversion of this preferred stock became effective on September 17, 2025.

You can see the key entities and their associated financial metrics in this summary:

• Wichita Falls Bancshares, Inc. (FNB) Total Assets (Sept 30, 2025): $1.3 billion.
• Total Consideration for FNB Acquisition: Approximately $83.6 million.
• Series A Preferred Stock Capital Raised: $32.5 million.
• Estimated Net Proceeds from Offering: $30.4 million.
• Investar Holding Corporation Total Assets (Sept 30, 2025): $2.8 billion.
• Investar Q3 2025 Net Interest Margin: 3.16%.

Finance: draft 13-week cash view by Friday.

Investar Holding Corporation (ISTR) - Canvas Business Model: Key Activities

You're looking at the core engine driving Investar Holding Corporation (ISTR) right now, focusing on the activities that translate strategy into balance sheet growth and profitability as of late 2025, based on the third quarter results.

Commercial and retail lending is a primary driver, clearly shown by the growth in the loan book. The total loans figure reached $2.15 billion as of September 30, 2025. A key part of this activity is shifting the portfolio mix; variable-rate loans now make up 36% of the total portfolio. New business origination during the quarter reflected this focus, with a blended interest rate of 7.5% on those new and renewed loans.

The activity of deposit gathering and funding cost optimization directly supports the lending engine. Total deposits stood at $2.37 billion at the end of Q3 2025. Management is actively working on the liability side, evidenced by the cost of deposits decreasing by 2 bps q/q. This optimization, combined with growing higher-yielding assets, is central to their current operational focus.

Strategic balance sheet management is where the asset and liability activities converge to boost profitability. The result of this management is a clear expansion in the Net Interest Margin (NIM), which rose to 3.16% for the third quarter of 2025. The loan yield contributed significantly, reaching 6.03%. This focus on margin expansion is a critical Key Activity right now.

Finally, integrating acquired banks to expand geographic footprint and assets is a major strategic activity underway. Investar Holding Corporation received necessary shareholder and regulatory approvals for the acquisition of Wichita Falls Bancshares, Inc. (Wichita Falls) in October 2025, with an expected closing around January 1, 2026. This move is designed to be transformational; the combined bank is projected to hold over $4 billion in assets post-closing. To help fund this, the company completed a $32.5 million private placement of Series A preferred stock in July 2025.

Here's a quick look at the key metrics supporting these activities as of the end of Q3 2025:

The integration activity involves adding the operations of Wichita Falls Bancshares, Inc., which itself held:

• Total Assets of $1.3 billion as of September 30, 2025.
• Net Loans of $1.1 billion as of September 30, 2025.
• Total Deposits of $1.1 billion as of September 30, 2025.

The current operational footprint of Investar Bank, National Association, before closing, includes 29 branch locations across Louisiana, Texas, and Alabama. Finance: draft the pro-forma asset projection including Wichita Falls by next Tuesday.

Investar Holding Corporation (ISTR) - Canvas Business Model: Key Resources

When we look at the Key Resources for Investar Holding Corporation (ISTR) as of late 2025, we are really looking at the foundation that supports their entire value proposition. This isn't just about what they own; it's about the regulatory standing, the quality of their assets, and the people running the operation. You need to see these as the core assets that generate revenue and absorb potential shocks.

Here is a snapshot of the most critical, quantifiable resources Investar Holding Corporation is leaning on as of the third quarter of 2025:

Let's talk about the people first. Your human capital is defined by the team size, which stood at 326 full-time equivalent employees (FTEs) as of September 30, 2025. This number reflects the operational scale of Investar Bank, National Association, supporting its lending and deposit-taking functions across its footprint. It's a concrete measure of the workforce supporting the business model.

The physical presence, which is key for a community bank, is anchored by a network of 29 branch locations. These branches serve customers across three states: Louisiana, Texas, and Alabama. This physical network supports the total asset base, which was reported at $2.8 billion at September 30, 2025, and the total loan portfolio, which reached $2.15 billion that same quarter.

The financial resources are perhaps the most telling about near-term stability and future capacity. The regulatory total capital ratio was strong at 14.66% as of Q3 2025, giving you a solid buffer. Furthermore, the loan portfolio shows active management in the current rate environment, with new variable-rate loans being originated at a blended interest rate of 7.5%. This focus on higher-yielding assets is directly reflected in the Net Interest Margin improving to 3.16% for the quarter.

To give you a fuller picture of the underlying operational strength supporting these key resources, consider these supporting metrics from the same period:

• Net Interest Margin (NIM) for Q3 2025: 3.16%
• Efficiency Ratio for Q3 2025: 68.47%
• Nonperforming Loans as a percentage of Total Loans: 0.36%
• Total Deposits as of Q3 2025: $2.37 billion
• Tangible Book Value per Common Share as of September 30, 2025: $22.76

Investar Holding Corporation (ISTR) - Canvas Business Model: Value Propositions

You're looking at the core reasons why customers choose Investar Holding Corporation over the big national players. It's all about being local and focused, which translates into specific financial muscle for your community.

Full-service community banking for individuals and businesses

Investar Holding Corporation, through its subsidiary Investar Bank, National Association, offers a wide range of commercial banking products for individuals, professionals, and small to medium-sized businesses. As of September 30, 2025, the Bank had total assets of $2.8 billion. The company reported net income of $5.7 million for the third quarter of 2025. You saw the net interest margin improve to 3.16% in the third quarter of 2025. The bank is focused on optimizing its balance sheet, which helped the core efficiency ratio improve to 73.55% for the quarter ended June 30, 2025.

Key performance indicators from the third quarter of 2025 show this focus in action:

• Total loans growth: 2.1%
• Total deposits growth: 1.5%
• Net income (Q3 2025): $5.7 million

Local decision-making and relationship-driven service

The value here is speed and personal knowledge, which is hard to quantify directly but shows up in operational metrics. The commitment to this model is reinforced by recent recognition; Investar was named a 2025 Best Banks to Work For and Best Places to Work in Louisiana as of November 17, 2025. This suggests the employee base is stable and engaged, which directly impacts relationship quality for you.

Commercial lending expertise for small to medium-sized businesses (SMBs)

This is where Investar Holding Corporation puts serious capital to work. The business lending portfolio, which includes loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, is a major focus. As of June 30, 2025, this portfolio stood at $993.6 million. That represented a 3.4% increase from March 31, 2025. When originating and renewing loans during the second quarter, 73% of those were variable-rate loans, coming in at a blended interest rate of 7.7%. This focus on business lending is set to expand significantly with the pending acquisition.

Here's a look at the loan portfolio composition as of December 31, 2024, which gives context to their lending base before the latest growth:

Regional expertise in Louisiana, Texas, and Alabama markets

Investar Holding Corporation is headquartered in Baton Rouge, Louisiana, and its subsidiary bank serves specific regional markets. As of September 30, 2025, the Bank operated 29 branch locations across these states. The strategic move to acquire Wichita Falls Bancshares, Inc., which is headquartered in Wichita Falls, Texas, and had $1.3 billion in total assets at September 30, 2025, clearly signals a deepening commitment to the Texas market. Once closed, the combined bank is projected to have over $4 billion in assets.

The branch distribution as of December 31, 2024, shows the established footprint:

• Louisiana: 20 branches
• Alabama: 6 branches
• Texas: 3 branches

Finance: draft 13-week cash view by Friday.

Investar Holding Corporation (ISTR) - Canvas Business Model: Customer Relationships

You're running a community bank, so your customer relationships aren't just a line item; they're the whole engine. For Investar Holding Corporation (ISTR), the commitment to a high-touch model is explicitly stated as a key element of their banking approach, reflecting the demand from their client base across Louisiana, Texas, and Alabama. This approach is what differentiates the service provided by Investar Bank, National Association, the commercial bank subsidiary.

The scale of the operation being managed under this relationship-focused model is significant as of late 2025. As of September 30, 2025, the total loan portfolio stood at $2.15 billion, supported by total deposits of $2.37 billion. This balance sheet size is managed while emphasizing personal connection over pure transaction volume.

The core of this relationship strategy rests on several pillars:

• Personal, non-transactional service where bankers know customers by name.
• Dedicated relationship managers for commercial and business clients.
• High-touch service model typical of a community bank.

The focus on dedicated personnel for higher-value clients is visible in recent operational updates. For instance, in September 2025, Investar Holding Corporation welcomed Two Commercial Relationship Managers to the West Alabama Region, showing active investment in the personnel required to maintain this dedicated service level in their expanding franchise.

To give you a snapshot of the financial scale underpinning these customer relationships as of the third quarter of 2025, look at these figures:

This high-touch service model is what Investar Bank, National Association, uses to serve its primary markets. The bank emphasizes local decision-making, which is a hallmark of the community bank structure, helping to ensure that relationship managers can act decisively for their clients. The commitment to this style of service is a strategic choice, even as the company pursues growth, such as the anticipated closing of the Wichita Falls Bancshares, Inc. acquisition around January 1, 2026.

The firm also supports its client base with ancillary services delivered through partnerships, which further deepens the relationship beyond core lending and deposit taking. These include:

• Access to financial planning services.
• Trust services availability.
• Brokerage products via independent advisors.
• Life, health, and property & casualty coverage through an affiliated insurance agency.

The success of this model is reflected in the solid credit quality, with nonperforming loans comprising only 0.36% of total loans at September 30, 2025. That low level suggests the relationship managers are effectively managing risk alongside client needs. Finance: draft the integration plan for relationship manager staffing post-Wichita Falls close by January 15, 2026.

Investar Holding Corporation (ISTR) - Canvas Business Model: Channels

You're looking at how Investar Holding Corporation gets its value proposition to the customer base across its markets in Louisiana, Texas, and Alabama. It's a mix of traditional brick-and-mortar presence and modern digital tools, so you need to see the scale of each.

Network of 29 physical branch locations for in-person service

Investar Bank, National Association, the wholly-owned banking subsidiary, maintains a physical footprint across its service areas. As of the second quarter end, June 30, 2025, the Bank operated exactly 29 branch locations serving Louisiana, Texas, and Alabama. This physical network supported a total asset base of $2.7 billion at that time. By the third quarter end, September 30, 2025, the branch count remained at 29, supporting total assets that grew to $2.8 billion. This physical presence is key for relationship banking in their specific geographic markets.

The physical channel is supported by the overall staff count, which gives you a sense of the human capital deployed across all functions, including branch service. At June 30, 2025, Investar Holding Corporation had 337 full-time equivalent employees. This number adjusted slightly to 326 full-time equivalent employees by September 30, 2025.

Online and mobile banking platforms for digital access

Digital delivery is a core component, offering convenience alongside the branches. Investar Bank provides customers with internet, mobile, and video banking services. To be defintely clear, this includes modern features like electronic statements and the ability to handle online account opening. Furthermore, the pending acquisition of Wichita Falls Bancshares, Inc., anticipated to close around January 1, 2026, is expected to add further digital channels via First National Bank's existing online and mobile platforms.

Affiliated insurance agency for cross-selling property and casualty coverage

While the search results confirm Investar Bank offers a range of commercial banking products, specific financial metrics or penetration rates for the affiliated insurance agency's cross-selling efforts for property and casualty coverage aren't explicitly detailed in the latest public filings reviewed. This channel relies on existing customer relationships built through the other access points.

Direct loan officers and business development teams

The direct sales force, comprising loan officers and business development personnel, drives loan portfolio growth. The total employee count serves as an aggregate measure of the personnel supporting these functions. The company's loan portfolio saw growth, with total loans increasing by 2.1% in the third quarter of 2025. The yield on the loan portfolio for Q2 2025 stood at 5.94%. The bank actively recruits for these roles, evidenced by a November 4, 2025 announcement noting the addition of Three Seasoned Associates to the Lafayette Region.

Here's a quick view of the scale of the primary access points and employee base as of late 2025:

The digital channel is further supported by dedicated contact lines:

• Online Banking: 855.306.8574
• E-Account Opening: 855.981.7827
• Consumer Loans: 855.567.2210

The efficiency ratio improvement to 74.99% in Q2 2025 suggests that the mix of these channels is being managed effectively to control operating costs.

Investar Holding Corporation (ISTR) - Canvas Business Model: Customer Segments

You're looking at the core groups Investar Holding Corporation (ISTR) serves through its subsidiary, Investar Bank, National Association. Their strategy clearly centers on a specific geographic footprint, which shapes who they target.

Geographically concentrated in south Louisiana, southeast Texas, and Alabama

Investar Bank currently runs 29 branch locations across these three states. As of July 2025, the bank's total assets stood at $2.7 billion, though this figure rose to $2.8 billion by September 30, 2025. Honestly, this tight geographic focus means any local economic hiccup in southern Louisiana, southeast Texas, or Alabama hits Investar harder than a more spread-out competitor. The pending acquisition of Wichita Falls Bancshares, Inc., expected to close around January 1, 2026, will add a north Dallas market presence, bolstering their Texas footprint.

Small to medium-sized businesses (SMBs) and commercial clients

This group forms a significant part of the lending activity. While the most detailed loan mix data is from December 31, 2024, it gives you a clear picture of where the credit risk and revenue generation lie. The bank actively pursues growth in the commercial lending markets within Louisiana and Texas.

Here's a look at the loan portfolio composition as of December 31, 2024, which informs the current commercial focus:

The total loan portfolio was $2.11 billion in Q1 2025, growing by 2.1 percent in Q3 2025 to reach a new level.

Individuals and professionals seeking retail banking services

Investar Bank offers a full suite of retail services to individuals and professionals. This includes standard deposit services like checking, savings, money market deposit accounts, and certificates of deposit. The bank is focused on maintaining a high-quality deposit base; noninterest-bearing deposits reached $448.5 million at June 30, 2025, up 4 percent from the first quarter of 2025. You can see the retail side reflected in the consumer loan category, which made up 10.4 percent of the loan book at the end of 2024.

The services offered to this segment include:

• Personal checking accounts
• Savings accounts
• Certificates of deposit
• Personal loans
• Mortgage solutions and services

Government and public entities (e.g., school, water, hospital districts)

While Investar Bank itself provides a variety of loan products across all its areas of operation, the planned acquisition of Wichita Falls Bancshares, Inc. (FNB) brings a defined focus on this segment. FNB, as of September 30, 2025, had $1.3 billion in total assets and explicitly served taxing authorities, cities, counties, school districts, water districts, hospital districts, and government entities. This suggests a clear strategic move by Investar Holding Corporation to integrate and grow its presence within the public sector client base, especially in Texas, following the expected closing around January 1, 2026.

Finance: draft 13-week cash view by Friday.

Investar Holding Corporation (ISTR) - Canvas Business Model: Cost Structure

When you look at the cost side of Investar Holding Corporation's business, you're essentially looking at the cost of running a regional bank network. The largest components are definitely interest paid out, personnel costs, and maintaining that physical footprint.

For interest expense, while the exact dollar figure for total interest expense isn't immediately available here, we can look at the cost of funding. For the quarter ended June 30, 2025, the overall cost of funds for Investar Holding Corporation decreased to 3.13%. This compares to 3.22% for the quarter ended March 31, 2025. So, you see some modest relief on the funding side, which is key since deposits and borrowings are the primary source of interest expense for a bank.

Personnel is another big bucket. You mentioned 326 FTE employees, but based on the latest figures from June 30, 2025, the Bank actually had 337 full-time equivalent employees. That number drives the salaries and benefits line item significantly.

The physical network is a fixed cost you have to carry. Investar Bank operates 29 branch locations across Louisiana, Texas, and Alabama. That network requires real estate costs, utilities, and maintenance, all feeding into the operating expenses.

Finally, there's the cost of capital, specifically the preferred stock. The 6.5% Series A Non-Cumulative Perpetual Convertible Preferred Stock carries a defined cost. For the quarter ending September 15, 2025, the declared quarterly cash dividend was $16.25 per share, which represents the full quarterly dividend based on the 6.5% per annum rate.

Here's a quick view of the key cost-related metrics we have for late 2025:

The operating structure also includes other necessary overhead. You can break down the fixed and semi-variable costs like this:

• Salaries and benefits tied to 337 FTE employees.
• Operating costs for maintaining the 29-branch physical network.
• Quarterly cash dividends on the 6.5% Series A preferred stock.
• Interest expense driven by the cost of deposits and borrowings, reflected in the 3.13% overall cost of funds for Q2 2025.

The efficiency ratio, which is total non-interest expense divided by revenue, was reported at 68.47% for the third quarter of 2025, showing how effectively Investar Holding Corporation is managing these operating costs relative to its income.

Investar Holding Corporation (ISTR) - Canvas Business Model: Revenue Streams

You're looking at how Investar Holding Corporation converts its asset base into actual dollars, which is the heart of their revenue model as of late 2025. For a bank holding company like Investar Holding Corporation, the story is all about the spread between what they earn on their assets and what they pay for their liabilities, plus the fees they charge for services.

The primary driver remains the core banking activity. The Net Interest Income (NII), which is the difference between interest earned on loans and investments and interest paid on deposits and borrowings, was reported at $21.2 million for the third quarter of 2025.

This NII is generated from a substantial lending operation. As of Q3 2025, the total loan portfolio stood at $2.15 billion. A key strategic move supporting this income stream was growing higher-yielding assets, with new business primarily in variable-rate loans carrying a blended interest rate of 7.5%. This focus helped the Net Interest Margin improve to 3.16% in the quarter.

Beyond the interest spread, Investar Holding Corporation pulls in Noninterest Income. This stream comes from service charges, fees, and income derived from ancillary products. Investar Bank's platform includes an affiliated insurance agency that delivers life, health, and property & casualty coverage, which contributes to this non-interest fee income.

When you put the main components together for the third quarter of 2025, the total revenue figure came in at approximately $37.1 million, which beat market expectations. Here's a quick look at those top-line numbers:

The revenue streams are supported by several fee-based services, which you can see listed here:

• Service charges on deposit accounts.
• Fees related to lending and other banking activities.
• Income from the affiliated insurance agency products.
• Revenue from treasury management and cash services.

The overall revenue performance in Q3 2025, hitting $37.1 million, shows the success of their strategy to grow higher-yielding assets while managing funding costs. Finance: draft the Q4 2025 revenue projection based on current loan growth trends by next Tuesday.