Investar Holding Corporation Announces 2023 Fourth Quarter Results
- Increase in net income from the previous quarter
- Record high total revenues for the fourth quarter
- Stockholders' equity increased by $18.1 million, or 8.6%
- Improvement in credit quality with nonperforming loans at 0.26% of total loans
- Investar repurchased shares of its common stock during the fourth quarter
- None.
Insights
The reported increase in net income for Investar Holding Corporation in the fourth quarter of 2023, compared to both the previous quarter and the same quarter in the previous year, indicates a positive trend in profitability. This is a significant metric for investors and analysts as it reflects the company's ability to generate earnings. The improvement in nonperforming loans to 0.26% of total loans is a strong indicator of credit quality, which is essential for the bank's risk management and financial stability.
Furthermore, the shift towards a higher percentage of variable-rate loans in the loan portfolio to 27% could be seen as a strategic adjustment to anticipate interest rate fluctuations. This diversification can provide a hedge against interest rate risk, making the bank's earnings more resilient in various rate environments. The interest recovery of $1.1 million, largely from a single commercial and industrial oil and gas loan, is notable as it significantly contributes to the core performance metrics and demonstrates the effectiveness of the bank's workout process.
Investar's active management of its stock repurchase program, with the repurchase of shares at prices below the previous year's average, reflects a strategy to enhance shareholder value and indicates management's confidence in the company's intrinsic value. The reported increase in stockholders' equity by 8.6% and improvement in book value per common share are positive signs for investors, as they point to a strengthening of the company's financial position.
The emphasis on digital transformation and optimization of the physical branch and ATM footprint, including the consolidation of a branch in Alabama, signifies Investar's commitment to operational efficiency and adaptation to changing consumer banking behaviors. This strategic move is likely to result in cost savings and could potentially attract customers who prefer digital banking services. The anticipation of a more favorable rate environment in 2024 and the positioning of the bank's liability-sensitive balance sheet could enable Investar to capitalize on the repricing of deposits and short-term borrowings, potentially enhancing net interest margins.
Investar's refinancing of borrowings under the Federal Reserve's Bank Term Funding Program (BTFP) at a lower rate demonstrates proactive liability management. This action could lead to reduced interest expenses and improved net interest income in future periods. The record high total revenues reported for the fourth quarter, coupled with controlled noninterest expenses, indicate a robust revenue generation capability and disciplined cost management, which are critical for sustained profitability and competitive positioning in the banking sector.
The increase in total deposits by 2.1% and the shift towards more interest-bearing deposit products reflect changing consumer behavior in response to rising interest rates. This trend may affect the bank's cost of funds and interest rate spread in the near term. The growth in brokered time deposits, particularly in smaller denominations, suggests a strategic approach to securing fixed cost funding while mitigating liquidity risks.
The bank's performance must be contextualized within the broader economic environment, where interest rates and economic forecasts play a crucial role in influencing credit conditions, consumer savings behavior and investment strategies. Investar's adjustment to the CECL standard for credit loss accounting is in line with regulatory requirements and provides a more forward-looking approach to estimating credit losses, which can impact provisioning and capital planning.
Overall, the bank's financial results and strategic maneuvers, such as optimizing the loan portfolio mix and asset mix, indicate a focus on sustainable growth and resilience against potential economic headwinds. The emphasis on shareholder returns and capital optimization strategies, including share repurchases and balance sheet management, are relevant for investors assessing the bank's long-term value creation potential.
BATON ROUGE, LA / ACCESSWIRE / January 25, 2024 / Investar Holding Corporation ("Investar") (NASDAQ:ISTR), the holding company for Investar Bank, National Association (the "Bank"), today announced financial results for the quarter ended December 31, 2023. Investar reported net income of
On a non-GAAP basis, core earnings per diluted common share for the fourth quarter of 2023 were
Investar's President and Chief Executive Officer John D'Angelo commented:
"During the fourth quarter, we made significant progress on our strategy of consistent, quality earnings through the optimization of our balance sheet.
We continued to originate high quality loans and allow higher risk credit relationships to run off. As a result, nonperforming loans improved to
We generated record high total revenues in the fourth quarter while continuing to closely monitor and control noninterest expense. Stockholders' equity increased by
We anticipate a more favorable rate environment in 2024. Our liability sensitive balance sheet is well-positioned if interest rates do come down to benefit from the repricing of deposits and short-term borrowings. During the fourth quarter, we refinanced all of our borrowings under the Bank Term Funding Program at a lower rate.
As always, we remain focused on shareholder value and returning capital to shareholders. We repurchased 31,766 shares of our common stock during the fourth quarter at an average price of
Fourth Quarter Highlights
• | Credit quality continues to strengthen with nonperforming loans improving to |
• | Variable-rate loans as a percentage of total loans was |
• | Total revenues, or interest and noninterest income, for the quarter ended December 31, 2023 totaled |
• | Noninterest expense decreased |
• | Book value per common share increased to |
• | Accumulated other comprehensive loss improved |
• | Investar recognized interest recoveries of approximately |
• | During the fourth quarter, Investar refinanced all of its borrowings under the Federal Reserve's Bank Term Funding Program ("BTFP"). The weighted average rate was |
• | Total deposits increased |
• | Investar repurchased 31,766 shares of its common stock through its stock repurchase program at an average price of |
Loans
Total loans were
The following table sets forth the composition of the total loan portfolio as of the dates indicated (dollars in thousands).
| Linked Quarter Change | Year/Year Change | Percentage of Total Loans | ||||||||||||||||||||||||||||||||||
| 12/31/2023 | 9/30/2023 | 12/31/2022 | $ | % | $ | % | 12/31/2023 | 12/31/2022 | ||||||||||||||||||||||||||||
| Mortgage loans on real estate | ||||||||||||||||||||||||||||||||||||
Construction and development | $ | 190,371 | $ | 211,390 | $ | 201,633 | $ | (21,019 | ) | (9.9 | )% | $ | (11,262 | ) | (5.6 | )% | 8.6 | % | 9.6 | % | ||||||||||||||||
1-4 Family | 413,786 | 415,162 | 401,377 | (1,376 | ) | (0.3 | ) | 12,409 | 3.1 | 18.7 | 19.1 | |||||||||||||||||||||||||
Multifamily | 105,946 | 102,974 | 81,812 | 2,972 | 2.9 | 24,134 | 29.5 | 4.8 | 3.9 | |||||||||||||||||||||||||||
Farmland | 7,651 | 8,259 | 12,877 | (608 | ) | (7.4 | ) | (5,226 | ) | (40.6 | ) | 0.4 | 0.6 | |||||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||||||||||||||||||
Owner-occupied | 449,610 | 440,208 | 445,148 | 9,402 | 2.1 | 4,462 | 1.0 | 20.3 | 21.1 | |||||||||||||||||||||||||||
Nonowner-occupied | 488,098 | 501,649 | 513,095 | (13,551 | ) | (2.7 | ) | (24,997 | ) | (4.9 | ) | 22.1 | 24.4 | |||||||||||||||||||||||
| Commercial and industrial | 543,421 | 411,290 | 435,093 | 132,131 | 32.1 | 108,328 | 24.9 | 24.6 | 20.7 | |||||||||||||||||||||||||||
| Consumer | 11,736 | 12,090 | 13,732 | (354 | ) | (2.9 | ) | (1,996 | ) | (14.5 | ) | 0.5 | 0.6 | |||||||||||||||||||||||
Total loans | $ | 2,210,619 | $ | 2,103,022 | $ | 2,104,767 | $ | 107,597 | 5.1 | % | $ | 105,852 | 5.0 | % | 100 | % | 100 | % | ||||||||||||||||||
At December 31, 2023, Investar's total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was
Nonowner-occupied loans totaled
Credit Quality
Nonperforming loans were
On January 1, 2023, Investar adopted FASB ASC Topic 326 " Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments " Update No. 2016-13 . The ASU, referred to as the Current Expected Credit Loss ("CECL") standard, requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Upon adoption, Investar recorded a one-time, cumulative effect adjustment to increase the allowance for credit losses by
The allowance for credit losses was
The provision for credit losses was
Deposits
Total deposits at December 31, 2023 were
The following table sets forth the composition of deposits as of the dates indicated (dollars in thousands).
| Linked Quarter Change | Year/Year Change | Percentage of Total Deposits | ||||||||||||||||||||||||||||||||||
| 12/31/2023 | 9/30/2023 | 12/31/2022 | $ | % | $ | % | 12/31/2023 | 12/31/2022 | ||||||||||||||||||||||||||||
| Noninterest-bearing demand deposits | $ | 448,752 | $ | 459,519 | $ | 580,741 | $ | (10,767 | ) | (2.3 | )% | $ | (131,989 | ) | (22.7 | )% | 19.9 | % | 27.9 | % | ||||||||||||||||
| Interest-bearing demand deposits | 489,604 | 482,706 | 565,598 | 6,898 | 1.4 | (75,994 | ) | (13.4 | ) | 21.7 | 27.1 | |||||||||||||||||||||||||
| Money market deposit accounts | 179,366 | 186,478 | 208,596 | (7,112 | ) | (3.8 | ) | (29,230 | ) | (14.0 | ) | 8.0 | 10.0 | |||||||||||||||||||||||
| Savings accounts | 137,606 | 131,743 | 155,176 | 5,863 | 4.5 | (17,570 | ) | (11.3 | ) | 6.1 | 7.5 | |||||||||||||||||||||||||
| Brokered time deposits | 269,102 | 197,747 | 9,990 | 71,355 | 36.1 | 259,112 | 2,593.7 | 11.9 | 0.5 | |||||||||||||||||||||||||||
| Time deposits | 731,297 | 751,240 | 562,264 | (19,943 | ) | (2.7 | ) | 169,033 | 30.1 | 32.4 | 27.0 | |||||||||||||||||||||||||
Total deposits | $ | 2,255,727 | $ | 2,209,433 | $ | 2,082,365 | $ | 46,294 | 2.1 | % | $ | 173,362 | 8.3 | % | 100 | % | 100 | % | ||||||||||||||||||
The decrease in noninterest-bearing demand deposits and money market deposit accounts at December 31, 2023 compared to September 30, 2023 is primarily due to customers drawing down on their existing deposit accounts. The increase in interest-bearing demand deposits and savings accounts at December 31, 2023 compared to September 30, 2023 is primarily due to organic growth resulting from a deposit campaign. The decrease in time deposits at December 31, 2023 compared to September 30, 2023 is primarily due to a reduced emphasis on time deposits. Time deposits and brokered time deposits increased, and other deposit categories decreased at December 31, 2023 compared to December 31, 2022 primarily due to shifts into interest-bearing deposit products as a result of rising interest rates. Brokered time deposits increased to
Stockholders' Equity
Stockholders' equity was
Net Interest Income
Net interest income for the fourth quarter of 2023 totaled
Investar's net interest margin was
The yield on interest-earning assets was
Exclusive of the interest income accretion from the acquisition of loans and interest recoveries, discussed above, adjusted net interest margin decreased to
The cost of deposits increased 44 basis points to
The cost of short-term borrowings decreased 13 basis points to
The overall costs of funds for the quarter ended December 31, 2023 increased 33 basis points to
Noninterest Income
Noninterest income for the fourth quarter of 2023 totaled
The increase in noninterest income compared to the quarter ended September 30, 2023 is driven by a
The decrease in noninterest income compared to the quarter ended December 31, 2022 is primarily due to the
Noninterest Expense
Noninterest expense for the fourth quarter of 2023 totaled
The decrease in noninterest expense for the quarter ended December 31, 2023 compared to the quarter ended September 30, 2023 was driven by a
The increase in noninterest expense for the quarter ended December 31, 2023 compared to the quarter ended December 31, 2022 was driven by a
Taxes
Investar recorded income tax expense of
Basic and Diluted Earnings Per Common Share
Investar reported basic and diluted earnings per common share of
About Investar Holding Corporation
Investar, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, National Association. The Bank currently operates 28 branch locations serving Louisiana, Texas, and Alabama. At December 31, 2023, the Bank had 326 full-time equivalent employees and total assets of
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures and ratios include "tangible common equity," "tangible assets," "tangible equity to tangible assets," "tangible book value per common share," "core noninterest income," "core earnings before noninterest expense," "core noninterest expense," "core earnings before income tax expense," "core income tax expense," "core earnings," "core efficiency ratio," "core return on average assets," "core return on average equity," "core basic earnings per share," and "core diluted earnings per share." We also present certain average loan, yield, net interest income and net interest margin data adjusted to show the effects of excluding interest recoveries and interest income accretion from the acquisition of loans. Management believes these non-GAAP financial measures provide information useful to investors in understanding Investar's financial results, and Investar believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting Investar's business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and Investar strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Investar's current views with respect to, among other things, future events and financial performance. Investar generally identifies forward-looking statements by terminology such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "could," "should," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," or the negative version of those words or other comparable words.
Any forward-looking statements contained in this press release are based on the historical performance of Investar and its subsidiaries or on Investar's current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by Investar that the future plans, estimates or expectations by Investar will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to Investar's operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if Investar's underlying assumptions prove to be incorrect, Investar's actual results may vary materially from those indicated in these statements. Investar does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. These factors include, but are not limited to, the following, any one or more of which could materially affect the outcome of future events:
• | the significant risks and uncertainties for our business, results of operations and financial condition, as well as our regulatory capital and liquidity ratios and other regulatory requirements caused by business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate; | |
| • | changes in inflation, interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing; | |
| • | our ability to successfully execute our near-term strategy to pivot from primarily a growth strategy to a strategy primarily focused on consistent, quality earnings through the optimization of our balance sheet, and our ability to successfully execute a long-term growth strategy; | |
| • | our ability to achieve organic loan and deposit growth, and the composition of that growth; | |
| • | our ability to identify and enter into agreements to combine with attractive acquisition candidates, finance acquisitions, complete acquisitions after definitive agreements are entered into, and successfully integrate and grow acquired operations; | |
| • | our adoption on January 1, 2023 of ASU 2016-13, and inaccuracy of the assumptions and estimates we make in establishing reserves for credit losses and other estimates; | |
| • | changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers; | |
| • | a reduction in liquidity, including as a result of a reduction in the amount of deposits we hold or other sources of liquidity, which may be caused by, among other things, disruptions in the banking industry similar to those that occurred in early 2023 that caused bank depositors to move uninsured deposits to other banks or alternative investments outside the banking industry; | |
| • | changes in the quality and composition of, and changes in unrealized losses in, our investment portfolio, including whether we may have to sell securities before their recovery of amortized cost basis and realize losses; | |
| • | the extent of continuing client demand for the high level of personalized service that is a key element of our banking approach as well as our ability to execute our strategy generally; | |
| • | our dependence on our management team, and our ability to attract and retain qualified personnel; | |
| • | the concentration of our business within our geographic areas of operation in Louisiana, Texas and Alabama; | |
| • | increasing costs of complying with new and potential future regulations; | |
| • | new or increasing geopolitical tensions, including resulting from wars in Ukraine and Israel and surrounding areas; | |
| • | the emergence or worsening of widespread public health challenges or pandemics including COVID-19; | |
| • | concentration of credit exposure; | |
| • | any deterioration in asset quality and higher loan charge-offs, and the time and effort necessary to resolve problem assets; | |
| • | fluctuations in the price of oil and natural gas; | |
| • | data processing system failures and errors; | |
| • | risks associated with our digital transformation process, including increased risks of cyberattacks and other security breaches and challenges associated with addressing the increased prevalence of artificial intelligence; | |
| • | risks of losses resulting from increased fraud attacks against us and others in the financial services industry; | |
| • | potential impairment of our goodwill and other intangible assets; and | |
| • | hurricanes, tropical storms, tropical depressions, floods, winter storms, droughts and other adverse weather events, all of which have affected Investar's market areas from time to time; other natural disasters; oil spills and other man-made disasters; acts of terrorism; other international or domestic calamities; acts of God; and other matters beyond our control. |
These factors should not be construed as exhaustive. Additional information on these and other risk factors can be found in Part I Item 1A. "Risk Factors" and in the "Special Note Regarding Forward-Looking Statements" in Part II Item 7. "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Investar's Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the "SEC") and in Part II Item 1A. "Risk Factors" in Investar's Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023 filed with the SEC.
For further information contact:
Investar Holding Corporation
John Campbell
Executive Vice President and Chief Financial Officer
(225) 227-2215
John.Campbell@investarbank.com
| INVESTAR HOLDING CORPORATION SUMMARY FINANCIAL INFORMATION (Amounts in thousands, except share data) (Unaudited) | ||||||||||||||||||||
| As of and for the three months ended | ||||||||||||||||||||
| 12/31/2023 | 9/30/2023 | 12/31/2022 | Linked Quarter | Year/Year | ||||||||||||||||
EARNINGS DATA | ||||||||||||||||||||
Total interest income | $ | 36,668 | $ | 33,160 | $ | 29,372 | 10.6 | % | 24.8 | % | ||||||||||
Total interest expense | 18,177 | 15,691 | 6,853 | 15.8 | 165.2 | |||||||||||||||
Net interest income | 18,491 | 17,469 | 22,519 | 5.9 | (17.9 | ) | ||||||||||||||
Provision for credit losses | 486 | (34 | ) | 1,268 | 1,529.4 | (61.7 | ) | |||||||||||||
Total noninterest income | 1,755 | 1,637 | 3,441 | 7.2 | (49.0 | ) | ||||||||||||||
Total noninterest expense | 15,440 | 15,774 | 13,913 | (2.1 | ) | 11.0 | ||||||||||||||
Income before income tax expense | 4,320 | 3,366 | 10,779 | 28.3 | (59.9 | ) | ||||||||||||||
Income tax expense | 782 | 585 | 1,881 | 33.7 | (58.4 | ) | ||||||||||||||
Net income | $ | 3,538 | $ | 2,781 | $ | 8,898 | 27.2 | (60.2 | ) | |||||||||||
AVERAGE BALANCE SHEET DATA | ||||||||||||||||||||
Total assets | $ | 2,817,388 | $ | 2,736,358 | $ | 2,677,604 | 3.0 | % | 5.2 | % | ||||||||||
Total interest-earning assets | 2,694,474 | 2,603,837 | 2,552,448 | 3.5 | 5.6 | |||||||||||||||
Total loans | 2,214,916 | 2,072,617 | 2,033,117 | 6.9 | 8.9 | |||||||||||||||
Total interest-bearing deposits | 1,824,318 | 1,707,848 | 1,482,268 | 6.8 | 23.1 | |||||||||||||||
Total interest-bearing liabilities | 2,119,724 | 2,026,587 | 1,872,870 | 4.6 | 13.2 | |||||||||||||||
Total deposits | 2,279,211 | 2,170,373 | 2,072,288 | 5.0 | 10.0 | |||||||||||||||
Total stockholders' equity | 212,454 | 220,393 | 211,585 | (3.6 | ) | 0.4 | ||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Earnings: | ||||||||||||||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.28 | $ | 0.90 | 28.6 | % | (60.0 | )% | ||||||||||
Diluted earnings per common share | 0.36 | 0.28 | 0.88 | 28.6 | (59.1 | ) | ||||||||||||||
Core earnings (1) : | ||||||||||||||||||||
Core basic earnings per common share (1) | 0.39 | 0.33 | 0.63 | 18.2 | (38.1 | ) | ||||||||||||||
Core diluted earnings per common share (1) | 0.39 | 0.33 | 0.62 | 18.2 | (37.1 | ) | ||||||||||||||
Book value per common share | 23.26 | 21.34 | 21.79 | 9.0 | 6.7 | |||||||||||||||
Tangible book value per common share (1) | 18.92 | 17.00 | 17.43 | 11.3 | 8.5 | |||||||||||||||
Common shares outstanding | 9,748,067 | 9,779,688 | 9,901,847 | (0.3 | ) | (1.6 | ) | |||||||||||||
Weighted average common shares outstanding - basic | 9,754,617 | 9,814,727 | 9,899,192 | (0.6 | ) | (1.5 | ) | |||||||||||||
Weighted average common shares outstanding - diluted | 9,763,296 | 9,817,607 | 10,032,446 | (0.6 | ) | (2.7 | ) | |||||||||||||
PERFORMANCE RATIOS | ||||||||||||||||||||
Return on average assets | 0.50 | % | 0.40 | % | 1.32 | % | 25.0 | % | (62.1 | )% | ||||||||||
Core return on average assets (1) | 0.54 | 0.47 | 0.92 | 14.9 | (41.3 | ) | ||||||||||||||
Return on average equity | 6.61 | 5.01 | 16.69 | 31.9 | (60.4 | ) | ||||||||||||||
Core return on average equity (1) | 7.16 | 5.87 | 11.66 | 22.0 | (38.6 | ) | ||||||||||||||
Net interest margin | 2.72 | 2.66 | 3.50 | 2.3 | (22.3 | ) | ||||||||||||||
Net interest income to average assets | 2.60 | 2.53 | 3.34 | 2.8 | (22.2 | ) | ||||||||||||||
Noninterest expense to average assets | 2.17 | 2.29 | 2.06 | (5.2 | ) | 5.3 | ||||||||||||||
Efficiency ratio (2) | 76.26 | 82.56 | 53.59 | (7.6 | ) | 42.3 | ||||||||||||||
Core efficiency ratio (1) | 74.85 | 79.98 | 63.35 | (6.4 | ) | 18.1 | ||||||||||||||
Dividend payout ratio | 27.78 | 35.71 | 10.56 | (22.2 | ) | 163.1 | ||||||||||||||
Net charge-offs to average loans | - | (0.01 | ) | - | 100.0 | - | ||||||||||||||
| (1) Non-GAAP financial measure. See reconciliation. |
| (2) Efficiency ratio represents noninterest expense divided by the sum of net interest income (before provision for credit losses) and noninterest income. |
| INVESTAR HOLDING CORPORATION SUMMARY FINANCIAL INFORMATION (Unaudited) | ||||||||||||||||||||
| As of and for the three months ended | ||||||||||||||||||||
| 12/31/2023 | 9/30/2023 | 12/31/2022 | Linked Quarter | Year/Year | ||||||||||||||||
ASSET QUALITY RATIOS | ||||||||||||||||||||
Nonperforming assets to total assets | 0.36 | % | 0.36 | % | 0.44 | % | - | % | (18.2 | )% | ||||||||||
Nonperforming loans to total loans | 0.26 | 0.27 | 0.54 | (3.7 | ) | (51.9 | ) | |||||||||||||
Allowance for credit losses to total loans | 1.38 | 1.42 | 1.16 | (2.8 | ) | 19.0 | ||||||||||||||
Allowance for credit losses to nonperforming loans | 529.32 | 534.08 | 214.92 | (0.9 | ) | 146.3 | ||||||||||||||
CAPITAL RATIOS | ||||||||||||||||||||
Investar Holding Corporation: | ||||||||||||||||||||
Total equity to total assets | 8.06 | % | 7.48 | % | 7.84 | % | 7.8 | % | 2.8 | % | ||||||||||
Tangible equity to tangible assets (1) | 6.65 | 6.05 | 6.37 | 9.9 | 4.4 | |||||||||||||||
Tier 1 leverage capital | 8.35 | 8.53 | 8.53 | (2.1 | ) | (2.1 | ) | |||||||||||||
Common equity tier 1 capital (2) | 9.51 | 9.40 | 9.79 | 1.2 | (2.9 | ) | ||||||||||||||
Tier 1 capital (2) | 9.90 | 9.79 | 10.21 | 1.1 | (3.0 | ) | ||||||||||||||
Total capital (2) | 12.99 | 12.87 | 13.25 | 0.9 | (2.0 | ) | ||||||||||||||
Investar Bank: | ||||||||||||||||||||
Tier 1 leverage capital | 9.81 | 10.05 | 9.89 | (2.4 | ) | (0.8 | ) | |||||||||||||
Common equity tier 1 capital (2) | 11.64 | 11.53 | 11.83 | 1.0 | (1.6 | ) | ||||||||||||||
Tier 1 capital (2) | 11.64 | 11.53 | 11.83 | 1.0 | (1.6 | ) | ||||||||||||||
Total capital (2) | 12.89 | 12.78 | 12.92 | 0.9 | (0.2 | ) | ||||||||||||||
| (1) Non-GAAP financial measure. See reconciliation. |
| (2) Estimated for December 31, 2023. |
| INVESTAR HOLDING CORPORATION CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) (Unaudited) | |||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 28,285 | $ | 27,084 | $ | 30,056 | |||||
Interest-bearing balances due from other banks | 3,724 | 36,584 | 10,010 | ||||||||
Federal funds sold | - | - | 193 | ||||||||
Cash and cash equivalents | 32,009 | 63,668 | 40,259 | ||||||||
Available for sale securities at fair value (amortized cost of | 361,918 | 404,485 | 405,167 | ||||||||
Held to maturity securities at amortized cost (estimated fair value of | 20,472 | 20,044 | 8,305 | ||||||||
Loans | 2,210,619 | 2,103,022 | 2,104,767 | ||||||||
Less: allowance for credit losses | (30,540 | ) | (29,778 | ) | (24,364 | ) | |||||
Loans, net | 2,180,079 | 2,073,244 | 2,080,403 | ||||||||
Equity securities | 14,597 | 13,334 | 27,254 | ||||||||
Bank premises and equipment, net of accumulated depreciation of | 44,183 | 44,764 | 49,587 | ||||||||
Other real estate owned, net | 4,438 | 4,438 | 682 | ||||||||
Accrued interest receivable | 14,366 | 13,633 | 12,749 | ||||||||
Deferred tax asset | 16,910 | 20,989 | 16,438 | ||||||||
Goodwill and other intangible assets, net | 42,320 | 42,496 | 43,147 | ||||||||
Bank-owned life insurance | 58,797 | 58,425 | 57,379 | ||||||||
Other assets | 25,066 | 30,013 | 12,437 | ||||||||
Total assets | $ | 2,815,155 | $ | 2,789,533 | $ | 2,753,807 | |||||
LIABILITIES | |||||||||||
Deposits | |||||||||||
Noninterest-bearing | $ | 448,752 | $ | 459,519 | $ | 580,741 | |||||
Interest-bearing | 1,806,975 | 1,749,914 | 1,501,624 | ||||||||
Total deposits | 2,255,727 | 2,209,433 | 2,082,365 | ||||||||
Advances from Federal Home Loan Bank | 23,500 | 23,500 | 387,000 | ||||||||
Borrowings under Bank Term Funding Program | 212,500 | 235,800 | - | ||||||||
Repurchase agreements | 8,633 | 13,930 | - | ||||||||
Subordinated debt, net of unamortized issuance costs | 44,320 | 44,296 | 44,225 | ||||||||
Junior subordinated debt | 8,630 | 8,602 | 8,515 | ||||||||
Accrued taxes and other liabilities | 35,077 | 45,255 | 15,920 | ||||||||
Total liabilities | 2,588,387 | 2,580,816 | 2,538,025 | ||||||||
STOCKHOLDERS' EQUITY | |||||||||||
Preferred stock, no par value per share; 5,000,000 shares authorized | - | - | - | ||||||||
Common stock, | 9,748 | 9,780 | 9,902 | ||||||||
Surplus | 145,456 | 145,241 | 146,587 | ||||||||
Retained earnings | 116,711 | 114,148 | 108,206 | ||||||||
Accumulated other comprehensive loss | (45,147 | ) | (60,452 | ) | (48,913 | ) | |||||
Total stockholders' equity | 226,768 | 208,717 | 215,782 | ||||||||
Total liabilities and stockholders' equity | $ | 2,815,155 | $ | 2,789,533 | $ | 2,753,807 | |||||
| INVESTAR HOLDING CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Amounts in thousands, except share data) (Unaudited) | |||||||||||||||||||
| For the three months ended | For the twelve months ended | ||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | |||||||||||||||
INTEREST INCOME | |||||||||||||||||||
Interest and fees on loans | $ | 33,128 | $ | 28,892 | $ | 25,958 | $ | 117,892 | $ | 93,373 | |||||||||
Interest on investment securities | |||||||||||||||||||
Taxable | 2,970 | 3,055 | 2,978 | 12,372 | 9,796 | ||||||||||||||
Tax-exempt | 253 | 216 | 108 | 693 | 482 | ||||||||||||||
Other interest income | 317 | 997 | 328 | 2,244 | 918 | ||||||||||||||
Total interest income | 36,668 | 33,160 | 29,372 | 133,201 | 104,569 | ||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Interest on deposits | 14,584 | 11,733 | 3,052 | 42,072 | 6,250 | ||||||||||||||
Interest on borrowings | 3,593 | 3,958 | 3,801 | 16,609 | 8,534 | ||||||||||||||
Total interest expense | 18,177 | 15,691 | 6,853 | 58,681 | 14,784 | ||||||||||||||
Net interest income | 18,491 | 17,469 | 22,519 | 74,520 | 89,785 | ||||||||||||||
Provision for credit losses | 486 | (34 | ) | 1,268 | (2,000 | ) | 2,922 | ||||||||||||
Net interest income after provision for credit losses | 18,005 | 17,503 | 21,251 | 76,520 | 86,863 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||
Service charges on deposit accounts | 798 | 806 | 799 | 3,090 | 3,090 | ||||||||||||||
(Loss) gain on call or sale of investment securities, net | (322 | ) | - | - | (323 | ) | 6 | ||||||||||||
Loss on sale or disposition of fixed assets, net | (39 | ) | (367 | ) | (67 | ) | (1,323 | ) | (258 | ) | |||||||||
Gain (loss) on sale of other real estate owned, net | - | 23 | 2 | (114 | ) | 9 | |||||||||||||
Swap termination fee income | - | - | - | - | 8,077 | ||||||||||||||
Gain on sale of loans | - | - | - | 75 | 37 | ||||||||||||||
Servicing fees and fee income on serviced loans | 2 | 2 | 13 | 14 | 74 | ||||||||||||||
Interchange fees | 417 | 399 | 492 | 1,697 | 2,036 | ||||||||||||||
Income from bank owned life insurance | 371 | 357 | 346 | 1,417 | 1,305 | ||||||||||||||
Change in the fair value of equity securities | 24 | 22 | 12 | (65 | ) | (90 | ) | ||||||||||||
Income from insurance proceeds | - | - | 1,384 | - | 1,384 | ||||||||||||||
Other operating income | 504 | 395 | 460 | 2,070 | 2,680 | ||||||||||||||
Total noninterest income | 1,755 | 1,637 | 3,441 | 6,538 | 18,350 | ||||||||||||||
Income before noninterest expense | 19,760 | 19,140 | 24,692 | 83,058 | 105,213 | ||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||
Depreciation and amortization | 909 | 900 | 1,071 | 3,780 | 4,435 | ||||||||||||||
Salaries and employee benefits | 9,003 | 9,463 | 7,545 | 37,143 | 34,974 | ||||||||||||||
Occupancy | 706 | 618 | 713 | 2,994 | 2,915 | ||||||||||||||
Data processing | 892 | 888 | 1,006 | 3,482 | 3,600 | ||||||||||||||
Marketing | 68 | 83 | 74 | 302 | 262 | ||||||||||||||
Professional fees | 461 | 516 | 436 | 1,933 | 1,774 | ||||||||||||||
Loss on early extinguishment of subordinated debt | - | - | - | - | 222 | ||||||||||||||
Other operating expenses | 3,401 | 3,306 | 3,068 | 12,996 | 12,683 | ||||||||||||||
Total noninterest expense | 15,440 | 15,774 | 13,913 | 62,630 | 60,865 | ||||||||||||||
Income before income tax expense | 4,320 | 3,366 | 10,779 | 20,428 | 44,348 | ||||||||||||||
Income tax expense | 782 | 585 | 1,881 | 3,750 | 8,639 | ||||||||||||||
Net income | $ | 3,538 | $ | 2,781 | $ | 8,898 | $ | 16,678 | $ | 35,709 | |||||||||
EARNINGS PER SHARE | |||||||||||||||||||
Basic earnings per common share | $ | 0.36 | $ | 0.28 | $ | 0.90 | $ | 1.69 | $ | 3.54 | |||||||||
Diluted earnings per common share | 0.36 | 0.28 | 0.88 | 1.69 | 3.50 | ||||||||||||||
Cash dividends declared per common share | 0.10 | 0.10 | 0.095 | 0.395 | 0.365 | ||||||||||||||
| INVESTAR HOLDING CORPORATION CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS (Amounts in thousands) (Unaudited) | |||||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||
| Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||||||||
Assets | |||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans | $ | 2,214,916 | $ | 33,128 | $ | 2,072,617 | $ | 28,892 | $ | 2,033,117 | $ | 25,958 | |||||||||||
Securities: | |||||||||||||||||||||||
Taxable | 427,746 | 2,970 | 2.75 | 442,556 | 3,055 | 2.74 | 466,881 | 2,978 | 2.53 | ||||||||||||||
Tax-exempt | 28,807 | 253 | 3.50 | 25,493 | 216 | 3.35 | 16,958 | 108 | 2.52 | ||||||||||||||
Interest-bearing balances with banks | 23,005 | 317 | 5.46 | 63,171 | 997 | 6.26 | 35,492 | 328 | 3.67 | ||||||||||||||
Total interest-earning assets | 2,694,474 | 36,668 | 5.40 | 2,603,837 | 33,160 | 5.05 | 2,552,448 | 29,372 | 4.57 | ||||||||||||||
Cash and due from banks | 27,214 | 27,734 | 33,363 | ||||||||||||||||||||
Intangible assets | 42,414 | 42,595 | 43,262 | ||||||||||||||||||||
Other assets | 83,447 | 92,108 | 71,972 | ||||||||||||||||||||
Allowance for credit losses | (30,161) | (29,916) | (23,441) | ||||||||||||||||||||
Total assets | $ | 2,817,388 | $ | 2,736,358 | $ | 2,677,604 | |||||||||||||||||
Liabilities and stockholders' equity | |||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||
Interest-bearing demand deposits | $ | 668,277 | $ | 2,873 | $ | 668,732 | $ | 2,462 | 1.46 | $ | 822,871 | $ | 1,084 | ||||||||||
Savings deposits | 136,045 | 318 | 0.93 | 130,262 | 179 | 0.54 | 160,046 | 18 | 0.04 | ||||||||||||||
Brokered time deposits | 275,552 | 3,590 | 5.17 | 159,244 | 1,990 | 4.96 | 326 | 4 | 4.80 | ||||||||||||||
Time deposits | 744,444 | 7,803 | 4.16 | 749,610 | 7,102 | 3.76 | 499,025 | 1,946 | 1.55 | ||||||||||||||
Total interest-bearing deposits | 1,824,318 | 14,584 | 3.17 | 1,707,848 | 11,733 | 2.73 | 1,482,268 | 3,052 | 0.82 | ||||||||||||||
Short-term borrowings | 218,977 | 2,672 | 4.84 | 242,363 | 3,039 | 4.97 | 284,384 | 2,785 | 3.89 | ||||||||||||||
Long-term debt | 76,429 | 921 | 4.78 | 76,376 | 919 | 4.77 | 106,218 | 1,016 | 3.79 | ||||||||||||||
Total interest-bearing liabilities | 2,119,724 | 18,177 | 3.40 | 2,026,587 | 15,691 | 3.07 | 1,872,870 | 6,853 | 1.45 | ||||||||||||||
Noninterest-bearing deposits | 454,893 | 462,525 | 590,020 | ||||||||||||||||||||
Other liabilities | 30,317 | 26,853 | 3,129 | ||||||||||||||||||||
Stockholders' equity | 212,454 | 220,393 | 211,585 | ||||||||||||||||||||
Total liability and stockholders' equity | $ | 2,817,388 | $ | 2,736,358 | $ | 2,677,604 | |||||||||||||||||
Net interest income/net interest margin | $ | 18,491 | $ | 17,469 | $ | 22,519 | |||||||||||||||||
INVESTAR HOLDING CORPORATION | |||||||||||||||
| For the twelve months ended | ||||||||||||||
| December 31, 2023 | December 31, 2022 | |||||||||||||
| Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | |||||||||
Assets | |||||||||||||||
Interest-earning assets: | |||||||||||||||
Loans | $ | 2,123,234 | $ | 117,892 | $ | 1,937,255 | $ | 93,373 | |||||||
Securities: | |||||||||||||||
Taxable | 447,442 | 12,372 | 2.76 | 442,767 | 9,796 | 2.21 | |||||||||
Tax-exempt | 22,051 | 693 | 3.14 | 18,746 | 482 | 2.57 | |||||||||
Interest-bearing balances with banks | 38,561 | 2,244 | 5.82 | 45,542 | 918 | 2.02 | |||||||||
Total interest-earning assets | 2,631,288 | 133,201 | 5.06 | 2,444,310 | 104,569 | 4.28 | |||||||||
Cash and due from banks | 29,142 | 34,327 | |||||||||||||
Intangible assets | 42,695 | 43,588 | |||||||||||||
Other assets | 86,712 | 103,711 | |||||||||||||
Allowance for credit losses | (30,242) | (22,093) | |||||||||||||
Total assets | $ | 2,759,595 | $ | 2,603,843 | |||||||||||
| |||||||||||||||
Liabilities and stockholders' equity | |||||||||||||||
Interest-bearing liabilities: | |||||||||||||||
Deposits: | |||||||||||||||
Interest-bearing demand deposits | $ | 688,786 | $ | 8,941 | $ | 900,405 | $ | 2,411 | |||||||
Brokered demand deposits | - | - | - | 1,773 | 7 | 0.42 | |||||||||
Savings deposits | 134,817 | 534 | 0.40 | 173,460 | 79 | 0.05 | |||||||||
Brokered time deposits | 163,873 | 8,224 | 5.02 | 82 | 4 | 4.80 | |||||||||
Time deposits | 699,648 | 24,373 | 3.48 | 427,416 | 3,749 | 0.88 | |||||||||
Total interest-bearing deposits | 1,687,124 | 42,072 | 2.49 | 1,503,136 | 6,250 | 0.42 | |||||||||
Short-term borrowings | 260,730 | 12,845 | 4.93 | 134,192 | 4,093 | 3.05 | |||||||||
Long-term debt | 82,844 | 3,764 | 4.54 | 127,288 | 4,441 | 3.49 | |||||||||
Total interest-bearing liabilities | 2,030,698 | 58,681 | 2.89 | 1,764,616 | 14,784 | 0.84 | |||||||||
Noninterest-bearing deposits | 489,175 | 600,286 | |||||||||||||
Other liabilities | 21,220 | 10,425 | |||||||||||||
Stockholders' equity | 218,502 | 228,516 | |||||||||||||
Total liability and stockholders' equity | $ | 2,759,595 | $ | 2,603,843 | |||||||||||
Net interest income/net interest margin | $ | 74,520 | $ | 89,785 | |||||||||||
| INVESTAR HOLDING CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES INTEREST EARNED AND YIELD ANALYSIS ADJUSTED FOR INTEREST RECOVERIES AND ACCRETION (Amounts in thousands) (Unaudited) | |||||||||||||||||||||||
| For the three months ended | |||||||||||||||||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||||||||||||||||
| Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Interest Income/ Expense | Yield/ Rate | Average Balance | Expense | Yield/ Rate | |||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||
Loans | $ | 2,214,916 | $ | 33,128 | $ | 2,072,617 | $ | 28,892 | $ | 2,033,117 | $ | 25,958 | |||||||||||
Adjustments: | |||||||||||||||||||||||
Interest recoveries | 1,105 | 118 | - | ||||||||||||||||||||
Accretion | 25 | 36 | 66 | ||||||||||||||||||||
Adjusted loans | 2,214,916 | 31,998 | 5.73 | 2,072,617 | 28,738 | 5.50 | 2,033,117 | 25,892 | 5.05 | ||||||||||||||
Securities: | |||||||||||||||||||||||
Taxable | 427,746 | 2,970 | 2.75 | 442,556 | 3,055 | 2.74 | 466,881 | 2,978 | 2.53 | ||||||||||||||
Tax-exempt | 28,807 | 253 | 3.50 | 25,493 | 216 | 3.35 | 16,958 | 108 | 2.52 | ||||||||||||||
Interest-bearing balances with banks | 23,005 | 317 | 5.46 | 63,171 | 997 | 6.26 | 35,492 | 328 | 3.67 | ||||||||||||||
Adjusted interest-earning assets | 2,694,474 | 35,538 | 5.23 | 2,603,837 | 33,006 | 5.03 | 2,552,448 | 29,306 | 4.56 | ||||||||||||||
Total interest-bearing liabilities | 2,119,724 | 18,177 | 3.40 | 2,026,587 | 15,691 | 3.07 | 1,872,870 | 6,853 | 1.45 | ||||||||||||||
Adjusted net interest income/adjusted net interest margin | $ | 17,361 | $ | 17,315 | $ | 22,453 | |||||||||||||||||
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
| December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||
Tangible common equity | ||||||||||||
Total stockholders' equity | $ | 226,768 | $ | 208,717 | $ | 215,782 | ||||||
Adjustments: | ||||||||||||
Goodwill | 40,088 | 40,088 | 40,088 | |||||||||
Core deposit intangible | 2,132 | 2,308 | 2,959 | |||||||||
Trademark intangible | 100 | 100 | 100 | |||||||||
Tangible common equity | $ | 184,448 | $ | 166,221 | $ | 172,635 | ||||||
Tangible assets | ||||||||||||
Total assets | $ | 2,815,155 | $ | 2,789,533 | $ | 2,753,807 | ||||||
Adjustments: | ||||||||||||
Goodwill | 40,088 | 40,088 | 40,088 | |||||||||
Core deposit intangible | 2,132 | 2,308 | 2,959 | |||||||||
Trademark intangible | 100 | 100 | 100 | |||||||||
Tangible assets | $ | 2,772,835 | $ | 2,747,037 | $ | 2,710,660 | ||||||
Common shares outstanding | 9,748,067 | 9,779,688 | 9,901,847 | |||||||||
Tangible equity to tangible assets | 6.65 | % | 6.05 | % | 6.37 | % | ||||||
Book value per common share | $ | 23.26 | $ | 21.34 | $ | 21.79 | ||||||
Tangible book value per common share | 18.92 | 17.00 | 17.43 | |||||||||
| INVESTAR HOLDING CORPORATION RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (Amounts in thousands, except share data) (Unaudited) | |||||||||
| For the three months ended | |||||||||
| December 31, 2023 | September 30, 2023 | December 31, 2022 | |||||||
| Net interest income | (a) | $ | 18,491 | $ | 17,469 | $ | 22,519 | ||
| Provision for credit losses | 486 | (34) | 1,268 | ||||||
| Net interest income after provision for credit losses | 18,005 | 17,503 | 21,251 | ||||||
| Noninterest income | (b) | 1,755 | 1,637 | 3,441 | |||||
| Loss on call or sale of investment securities, net | 322 | - | - | ||||||
| Loss on sale or disposition of fixed assets, net | 39 | 367 | 67 | ||||||
| Gain on sale of other real estate owned, net | - | (23) | (2) | ||||||
| Change in the fair value of equity securities | (24) | (22) | (12) | ||||||
| Income from insurance proceeds (1) | - | - | (1,384) | ||||||
| Change in the net asset value of other investments (2) | (43) | 105 | 44 | ||||||
| Core noninterest income | (d) | 2,049 | 2,064 | 2,154 | |||||
| Core earnings before noninterest expense | 20,054 | 19,567 | 23,405 | ||||||
| Total noninterest expense | (c) | 15,440 | 15,774 | 13,913 | |||||
| Severance (3) | - | (123) | (624) | ||||||
| Employee Retention Credit, net of consulting fees (4) | - | - | 2,342 | ||||||
| Loan purchase expense (5) | (66) | (29) | - | ||||||
| Core noninterest expense | (f) | 15,374 | 15,622 | 15,631 | |||||
| Core earnings before income tax expense | 4,680 | 3,945 | 7,774 | ||||||
| Core income tax expense (6) | 847 | 686 | 1,555 | ||||||
| Core earnings | $ | 3,833 | $ | 3,259 | $ | 6,219 | |||
| Core basic earnings per common share | 0.39 | 0.33 | 0.63 | ||||||
| Diluted earnings per common share (GAAP) | $ | 0.36 | $ | 0.28 | $ | 0.88 | |||
| Loss on call or sale of investment securities, net | 0.03 | - | - | ||||||
| Loss on sale or disposition of fixed assets, net | - | 0.03 | 0.01 | ||||||
| Gain on sale of other real estate owned, net | - | - | - | ||||||
| Change in the fair value of equity securities | - | - | - | ||||||
| Income from insurance proceeds (1) | - | - | (0.14) | ||||||
| Change in the net asset value of other investments (2) | - | 0.01 | - | ||||||
| Severance (3) | - | 0.01 | 0.05 | ||||||
| Employee Retention Credit, net of consulting fees (4) | - | - | (0.18) | ||||||
| Loan purchase expense (5) | - | - | - | ||||||
| Core diluted earnings per common share | $ | 0.39 | $ | 0.33 | $ | 0.62 | |||
| Efficiency ratio | (c) / (a+b) | ||||||||
| Core efficiency ratio | (f) / (a+d) | 74.85 | 79.98 | 63.35 | |||||
| Core return on average assets (7) | 0.54 | 0.47 | 0.92 | ||||||
| Core return on average equity (7) | 7.16 | 5.87 | 11.66 | ||||||
| Total average assets | $ | 2,817,388 | $ | 2,736,358 | $ | 2,677,604 | |||
| Total average stockholders' equity | 212,454 | 220,393 | 211,585 | ||||||
| (1) | Income from insurance proceeds represents nontaxable income related to an insurance policy for a former chief financial officer of the Company and the Bank. |
| (2) | Change in net asset value of other investments represents unrealized gains or losses on Investar's investments in Small Business Investment Companies and other investment funds and is included in other operating income in the accompanying consolidated statements of income. |
| (3) | Severance in the third quarter of 2023 is directly attributable to Investar's exit from its consumer mortgage origination business, consisting of salaries and employee benefits. Severance in the fourth quarter of 2022 represents a comprehensive severance package for a former chief financial officer of the Company and the Bank. |
| (4) | ERC represents a broad-based refundable payroll tax credit that incentivized businesses to retain employees on the payroll during the COVID-19 pandemic and is reflected as a credit in salaries and employee benefits in the accompanying consolidated statements of income. |
| (5) | Adjustments to noninterest expense directly attributable to the purchase of loans, consisting of professional fees for legal and consulting services. |
| (6) | Core income tax expense for the quarters ended December 31, 2023 and September 30, 2023 is calculated using effective tax rates of |
| (7) | Core earnings used in calculation. No adjustments were made to average assets or average equity. |
SOURCE: Investar Holding Corporation
View the original press release on accesswire.com
FAQ
What was the net income for the fourth quarter of 2023?
What were the total revenues for the fourth quarter of 2023?
What was the change in stockholders' equity compared to the previous quarter?
What was the percentage of nonperforming loans to total loans?
How many shares did Investar repurchase during the fourth quarter?
