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Investar Holding Corporation Announces 2024 Fourth Quarter Results

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Investar Holding (NASDAQ:ISTR) announced its Q4 2024 financial results, reporting net income of $6.1 million ($0.61 per diluted share), up from $5.4 million ($0.54 per share) in Q3 2024 and $3.5 million ($0.36 per share) in Q4 2023.

Key highlights include:

  • Return on average assets increased to 0.88% from 0.77% in Q3 2024
  • Efficiency ratio improved to 71.00% from 75.61% in Q3 2024
  • Total loans decreased by $30.8 million to $2.13 billion
  • Total deposits increased by $58.5 million to $2.35 billion
  • Credit quality remained solid with nonperforming loans at 0.42% of total loans
  • Net interest margin was 2.65%, slightly down from 2.67% in Q3 2024

The company received $5.5 million in BOLI death benefit proceeds and redeemed $20 million in subordinated debt. The bank also repaid $109 million in borrowings under the Bank Term Funding Program, contributing to a decrease in overall cost of funds to 3.49%.

Investar Holding (NASDAQ:ISTR) ha annunciato i risultati finanziari per il quarto trimestre del 2024, riportando un reddito netto di 6,1 milioni di dollari (0,61 dollari per azione diluita), in aumento rispetto a 5,4 milioni di dollari (0,54 dollari per azione) del terzo trimestre del 2024 e 3,5 milioni di dollari (0,36 dollari per azione) del quarto trimestre del 2023.

I punti salienti includono:

  • Il rendimento medio degli attivi è aumentato allo 0,88% rispetto allo 0,77% del terzo trimestre del 2024
  • Il rapporto di efficienza è migliorato al 71,00% rispetto al 75,61% del terzo trimestre del 2024
  • I prestiti totali sono diminuiti di 30,8 milioni di dollari a 2,13 miliardi di dollari
  • I depositi totali sono aumentati di 58,5 milioni di dollari a 2,35 miliardi di dollari
  • La qualità del credito è rimasta solida, con prestiti non performanti pari allo 0,42% dei prestiti totali
  • Il margine di interesse netto era del 2,65%, leggermente in calo dal 2,67% del terzo trimestre del 2024

La società ha ricevuto 5,5 milioni di dollari in proventi da benefici in caso di morte BOLI e ha rimborsato 20 milioni di dollari di debito subordinato. La banca ha anche rimborsato 109 milioni di dollari di prestiti nell'ambito del Programma di finanziamento a termine per banche, contribuendo a una diminuzione del costo complessivo dei fondi al 3,49%.

Investar Holding (NASDAQ:ISTR) anunció sus resultados financieros del cuarto trimestre de 2024, reportando un ingreso neto de 6,1 millones de dólares (0,61 dólares por acción diluida), un aumento respecto a 5,4 millones de dólares (0,54 dólares por acción) en el tercer trimestre de 2024 y 3,5 millones de dólares (0,36 dólares por acción) en el cuarto trimestre de 2023.

Los aspectos destacados incluyen:

  • El retorno sobre activos promedio aumentó al 0,88% desde el 0,77% en el tercer trimestre de 2024
  • El ratio de eficiencia mejoró al 71,00% desde el 75,61% en el tercer trimestre de 2024
  • Los préstamos totales disminuyeron en 30,8 millones de dólares, situándose en 2,13 mil millones de dólares
  • Los depósitos totales aumentaron en 58,5 millones de dólares, alcanzando 2,35 mil millones de dólares
  • La calidad del crédito se mantuvo sólida, con préstamos no rentables en el 0,42% de los préstamos totales
  • El margen de interés neto fue del 2,65%, ligeramente por debajo del 2,67% en el tercer trimestre de 2024

La empresa recibió 5,5 millones de dólares en ingresos por beneficios de muerte BOLI y reembolsó 20 millones de dólares en deuda subordinada. El banco también reembolsó 109 millones de dólares en préstamos bajo el Programa de Financiamiento a Plazo para Bancos, contribuyendo a una disminución en el costo total de fondos al 3,49%.

Investar Holding (NASDAQ:ISTR)는 2024년 4분기 재무 결과를 발표하며 610만 달러(희석 주당 0.61달러)의 순이익을 보고하였고, 이는 2024년 3분기 540만 달러(주당 0.54달러) 및 2023년 4분기 350만 달러(주당 0.36달러)에서 증가한 수치입니다.

주요 하이라이트는 다음과 같습니다:

  • 평균 자산 수익률이 0.77%에서 0.88%로 증가했습니다.
  • 효율성 비율이 3분기 2024년의 75.61%에서 71.00%로 개선되었습니다.
  • 총 대출이 3,080만 달러 감소하여 21억 3천만 달러가 되었습니다.
  • 총 예금이 5,850만 달러 증가하여 23억 5천만 달러에 도달했습니다.
  • 신용 품질은 견고하게 유지되었으며, 부실 대출은 총 대출의 0.42%에 해당합니다.
  • 순이자 마진은 2.65%로 2024년 3분기의 2.67%에서 약간 하락하였습니다.

회사는 BOLI 사망 이익금으로 5.5 백만 달러를 수령하였고, 2천만 달러를 하위 채무에서 상환했습니다. 또한 은행 장기 자금 조달 프로그램에 따라 1억 9천만 달러를 상환하여, 전체 자금 조달 비용이 3.49%로 감소하는 데 기여했습니다.

Investar Holding (NASDAQ:ISTR) a annoncé ses résultats financiers pour le quatrième trimestre 2024, rapportant un revenu net de 6,1 millions de dollars (0,61 dollar par action diluée), en hausse par rapport à 5,4 millions de dollars (0,54 dollar par action) au troisième trimestre 2024 et 3,5 millions de dollars (0,36 dollar par action) au quatrième trimestre 2023.

Les points saillants comprennent :

  • Le retour sur actifs moyens a augmenté à 0,88 % contre 0,77 % au troisième trimestre 2024
  • Le ratio d'efficacité s'est amélioré à 71,00 % contre 75,61 % au troisième trimestre 2024
  • Les prêts totaux ont diminué de 30,8 millions de dollars à 2,13 milliards de dollars
  • Les dépôts totaux ont augmenté de 58,5 millions de dollars à 2,35 milliards de dollars
  • La qualité du crédit est restée solide avec des prêts non performants à 0,42 % des prêts totaux
  • La marge d'intérêt nette était de 2,65 %, légèrement en baisse par rapport à 2,67 % au troisième trimestre 2024

L'entreprise a reçu 5,5 millions de dollars au titre des prestations de décès BOLI et a racheté 20 millions de dollars de dettes subordonnées. La banque a également remboursé 109 millions de dollars d'emprunts dans le cadre du programme de financement à terme pour les banques, contribuant à une diminution du coût global des fonds à 3,49 %.

Investar Holding (NASDAQ:ISTR) hat die finanziellen Ergebnisse für das vierte Quartal 2024 bekannt gegeben und meldet einen Nettogewinn von 6,1 Millionen US-Dollar (0,61 US-Dollar pro verwässerter Aktie), ein Anstieg von 5,4 Millionen US-Dollar (0,54 US-Dollar pro Aktie) im dritten Quartal 2024 und 3,5 Millionen US-Dollar (0,36 US-Dollar pro Aktie) im vierten Quartal 2023.

Wichtige Highlights sind:

  • Die Rendite auf durchschnittliche Vermögenswerte erhöhte sich auf 0,88% von 0,77% im dritten Quartal 2024
  • Das Effizienzverhältnis verbesserte sich auf 71,00% von 75,61% im dritten Quartal 2024
  • Die gesamten Kredite verringerten sich um 30,8 Millionen US-Dollar auf 2,13 Milliarden US-Dollar
  • Die gesamten Einlagen stiegen um 58,5 Millionen US-Dollar auf 2,35 Milliarden US-Dollar
  • Die Kreditqualität blieb solide mit notleidenden Krediten von 0,42% der Gesamtkredite
  • Die Nettozinsmarge lag bei 2,65%, leicht gesunken von 2,67% im dritten Quartal 2024

Das Unternehmen erhielt 5,5 Millionen US-Dollar an BOLI-Sterbegeldleistungen und löste 20 Millionen US-Dollar an nachrangigen Schulden ein. Die Bank zahlte außerdem 109 Millionen US-Dollar im Rahmen des Bank-Term-Finanzierungsprogramms zurück, was zu einem Rückgang der Gesamtkosten der Mittel auf 3,49% beitrug.

Positive
  • Net income increased to $6.1M from $5.4M quarter-over-quarter
  • Return on average assets improved to 0.88% from 0.77%
  • Efficiency ratio improved to 71.00% from 75.61%
  • Total deposits increased by $58.5M (2.6%)
  • Cost of funds decreased by 12 basis points to 3.49%
Negative
  • Total loans decreased by $30.8M (1.4%)
  • Net interest margin declined to 2.65% from 2.67%
  • Nonperforming loans increased to 0.42% from 0.19% of total loans
  • Net interest income decreased by $0.4M (2.1%) quarter-over-quarter

Insights

A comprehensive analysis of Investar's Q4 2024 results reveals a well-executed strategic transformation focused on balance sheet optimization and profitability enhancement. The bank has demonstrated remarkable progress in several key areas:

Balance Sheet Management Excellence: The strategic reduction in loans by $30.8 million (1.4% QoQ) while growing deposits by $58.5 million (2.6% QoQ) showcases disciplined balance sheet management. The focus on variable-rate lending is particularly noteworthy, with 84% of new originations being variable-rate at an attractive 8.2% blended rate.

Funding Cost Optimization: The reduction in cost of funds by 12 basis points to 3.49% demonstrates effective liability management. The strategic decisions to repay BTFP borrowings and redeem higher-cost subordinated debt position the bank favorably for potential rate cuts, with their liability-sensitive balance sheet structure.

Credit Quality & Capital Strength: Despite a slight increase in NPLs to 0.42%, the robust allowance coverage ratio of 302.8% and improving CET1 ratio of 10.85% indicate strong risk management and capital position. The negative loan loss provision of $0.7 million reflects portfolio quality and improved economic outlook.

Strategic Implications: Investar's transformation from a growth-focused to an efficiency-focused strategy is yielding results, with improved core metrics and controlled expenses. The bank's emphasis on variable-rate commercial lending and deposit cost management positions it well for various rate environments while maintaining strong credit quality.

BATON ROUGE, LA / ACCESS Newswire / January 23, 2025 / 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, 2024. Investar reported net income of $6.1 million, or $0.61 per diluted common share, for the fourth quarter of 2024, compared to net income of $5.4 million, or $0.54 per diluted common share, for the quarter ended September 30, 2024, and net income of $3.5 million, or $0.36 per diluted common share, for the quarter ended December 31, 2023.

On a non-GAAP basis, core earnings per diluted common share for the fourth quarter of 2024 were $0.65 compared to $0.45 for the third quarter of 2024 and $0.39 for the fourth quarter of 2023. Core earnings exclude certain non-operating items including, but not limited to, loss (gain) on call or sale of investment securities, net, loss on sale or disposition of fixed assets, net, loss on sale of other real estate owned, net, change in the fair value of equity securities, income from a legal settlement, loss on early extinguishment of subordinated debt, and legal settlement expense. As previously indicated, Investar's fourth quarter of 2024 results include $3.1 million in nontaxable noninterest income from bank owned life insurance ("BOLI") death benefit proceeds, which had a favorable impact on our core metrics. Refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics, including the impact of BOLI death benefit proceeds on our core metrics.

Investar's President and Chief Executive Officer John D'Angelo commented:

"Over the past year, Investar has successfully implemented a strategy of consistent, quality earnings through the optimization of our balance sheet, and the fourth quarter results reflect our continued execution. Our net interest margin has begun to stabilize as our cost of funds has decreased. We remained focused on originating higher yielding loans and securing lower cost funding sources that are accretive to our margin. During the fourth quarter, in accordance with our strategy to remix the loan portfolio, we originated and renewed loans, 84% of which were variable-rate loans, at an 8.2% blended interest rate. We also repaid $109 million in borrowings under the Bank Term Funding Program and redeemed $20 million in principal amount of subordinated debt, which contributed to the decrease in our cost of funds. Additionally, despite inflationary pressures, noninterest expenses are closely monitored and remain well-controlled.

Credit quality remained very solid as nonperforming loans represented 0.42% of total loans at December 31, 2024, and we continued to allow higher risk commercial real estate relationships to run off.

We have closely managed our interest-earning assets and funding costs and are actively evaluating potential opportunities to further optimize our balance sheet mix to improve shareholder returns. Our liability sensitive balance sheet is well-positioned in the event of further rate cuts to benefit from the repricing of deposits and short-term borrowings.

As always, we remain focused on shareholder value and returning capital to shareholders. During the year, we paid quarterly dividends totaling $0.41 per share, which represented a 4% increase from the previous year."

Fourth Quarter Highlights

  • Return on average assets increased to 0.88% for the quarter ended December 31, 2024 compared to 0.77% for the quarter ended September 30, 2024. Core return on average assets, which includes the impact of BOLI death benefit proceeds, increased to 0.93% for the quarter ended December 31, 2024 compared to 0.63% for the quarter ended September 30, 2024.

  • Efficiency ratio improved to 71.00% for the quarter ended December 31, 2024 compared to 75.61% for the quarter ended September 30, 2024. Core efficiency ratio, which includes the impact of BOLI death benefit proceeds, improved to 69.41% for the quarter ended December 31, 2024 compared to 79.33% for the quarter ended September 30, 2024.

  • Investar received BOLI death benefit proceeds totaling $5.5 million, and recorded a related $3.1 million in nontaxable noninterest income from BOLI, during the quarter ended December 31, 2024.

  • Noninterest expense decreased $0.1 million to $16.1 million for the quarter ended December 31, 2024 compared to $16.2 million for the quarter ended September 30, 2024. Core noninterest expense remained flat at $15.9 million for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024.

  • The overall cost of funds for the quarter ended December 31, 2024 decreased 12 basis points to 3.49% compared to 3.61% for the quarter ended September 30, 2024. The cost of deposits decreased five basis points to 3.40% for the quarter ended December 31, 2024 compared to 3.45% for the quarter ended September 30, 2024.

  • Credit quality remained solid with nonperforming loans comprising 0.42% of total loans at December 31, 2024 compared to 0.19% at September 30, 2024.

  • Variable-rate loans as a percentage of total loans was 32% at December 31, 2024 compared to 30% at September 30, 2024. During the fourth quarter of 2024, we originated and renewed loans, 84% of which were variable-rate loans, at an 8.2% blended interest rate.

  • Consistent with our strategy of optimizing the balance sheet, total loans decreased $30.8 million, or 1.4%, to $2.13 billion at December 31, 2024, compared to $2.16 billion at September 30, 2024. As a result of our strategy, we recognized the benefit of a $0.7 million negative provision for credit losses.

  • Total deposits increased $58.5 million, or 2.6%, to $2.35 billion at December 31, 2024 compared to $2.29 billion at September 30, 2024.

  • Investar redeemed all of the remaining $20.0 million in principal amount of our 5.125% Fixed-to-Floating Rate Subordinated Notes due 2029 (the "2029 Notes"). The 2029 Notes were to bear interest at a floating rate higher than the fixed rate beginning on December 31, 2024.

  • During the fourth quarter of 2024, Investar repaid all of the remaining $109.0 million in borrowings under the Federal Reserve's Bank Term Funding Program ("BTFP"), which contributed to the decrease in our overall cost of funds. The weighted average rate was 4.76% for the quarter ended December 31, 2024.

  • Investar's regulatory common equity tier 1 capital ratio increased to 10.85%, or 5.0% at December 31, 2024 compared to 10.33% at September 30, 2024.

Loans

Total loans were $2.13 billion at December 31, 2024, a decrease of $30.8 million, or 1.4%, compared to September 30, 2024, and a decrease of $85.5 million, or 3.9%, compared to December 31, 2023.

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

12/31/2024

9/30/2024

12/31/2023

$

%

$

%

12/31/2024

12/31/2023

Mortgage loans on real estate

Construction and development

$

154,553

$

166,954

$

190,371

$

(12,401

)

(7.4)

%

$

(35,818

)

(18.8)

%

7.3

%

8.6

%

1-4 Family

396,815

403,097

413,786

(6,282

)

(1.6

)

(16,971

)

(4.1

)

18.7

18.7

Multifamily

84,576

85,283

105,946

(707

)

(0.8

)

(21,370

)

(20.2

)

4.0

4.8

Farmland

6,977

7,173

7,651

(196

)

(2.7

)

(674

)

(8.8

)

0.3

0.4

Commercial real estate

Owner-occupied

449,259

467,467

449,610

(18,208

)

(3.9

)

(351

)

(0.1

)

21.1

20.3

Nonowner-occupied

495,289

499,274

488,098

(3,985

)

(0.8

)

7,191

1.5

23.3

22.1

Commercial and industrial

526,928

515,273

543,421

11,655

2.3

(16,493

)

(3.0

)

24.8

24.6

Consumer

10,687

11,325

11,736

(638

)

(5.6

)

(1,049

)

(8.9

)

0.5

0.5

Total loans

$

2,125,084

$

2,155,846

$

2,210,619

$

(30,762

)

(1.4)

%

$

(85,535

)

(3.9)

%

100

%

100

%

At December 31, 2024, Investar's total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $976.2 million, a decrease of $6.6 million, or 0.7%, compared to the business lending portfolio of $982.7 million at September 30, 2024, and a decrease of $16.8 million, or 1.7%, compared to the business lending portfolio of $993.0 million at December 31, 2023. The decrease in the business lending portfolio compared to September 30, 2024 is primarily driven by loan amortization in owner-occupied commercial real estate, partially offset by increased loan production by our Commercial and Industrial Division. The decrease in the business lending portfolio compared to December 31, 2023 is primarily driven by loan amortization consistent with our strategy of optimizing the balance sheet, partially offset by conversions of construction and development loans to owner-occupied loans upon completion of construction.

Nonowner-occupied loans totaled $495.3 million at December 31, 2024, a decrease of $4.0 million, or 0.8%, compared to $499.3 million at September 30, 2024, and an increase of $7.2 million, or 1.5%, compared to $488.1 million at December 31, 2023. The decrease in nonowner-occupied loans compared to September 30, 2024 is due to loan amortization and aligns with our strategy to optimize the mix of the portfolio. The increase in nonowner-occupied loans compared to December 31, 2023 is primarily due to a reclassification of a $15.9 million multifamily loan to a nonowner-occupied loan and conversions of construction and development loans to nonowner-occupied loans upon completion of construction, partially offset by loan amortization.

Construction and development loans totaled $154.6 million at December 31, 2024, a decrease of $12.4 million, or 7.4%, compared to $167.0 million at September 30, 2024, and a decrease of $35.8 million, or 18.8%, compared to $190.4 million at December 31, 2023. The decrease in construction and development loans compared to September 30, 2024 and December 31, 2023 is primarily due to conversions to permanent loans upon completion of construction.

Credit Quality

Nonperforming loans were $8.8 million, or 0.42% of total loans, at December 31, 2024, an increase of $4.7 million compared to $4.1 million, or 0.19% of total loans, at September 30, 2024, and an increase of $3.0 million compared to $5.8 million, or 0.26% of total loans, at December 31, 2023. The increase in nonperforming loans compared to September 30, 2024 is mainly attributable to one nonowner-occupied commercial real estate relationship totaling $2.4 million, two owner-occupied commercial real estate relationships totaling $1.3 million, and ten 1-4 family loan relationships totaling $1.3 million, partially offset by paydowns.

The allowance for credit losses was $26.7 million, or 302.8% and 1.26% of nonperforming and total loans, respectively, at December 31, 2024, compared to $28.1 million, or 682.0% and 1.30% of nonperforming and total loans, respectively, at September 30, 2024, and $30.5 million, or 529.3% and 1.38% of nonperforming and total loans, respectively, at December 31, 2023.

Investar recorded a negative provision for credit losses of $0.7 million for the quarter ended December 31, 2024 compared to a negative provision for credit losses of $0.9 million and a provision for credit losses of $0.5 million for the quarters ended September 30, 2024 and December 31, 2023, respectively. The negative provision for credit losses in the quarter ended December 31, 2024 is primarily attributable to a decrease in total loans, aging of existing loans, and an improvement in the economic forecast. The negative provision for credit losses in the quarter ended September 30, 2024 was primarily due to net recoveries of $0.4 million, a decrease in total loans, aging of existing loans, and an improvement in the economic forecast. The provision for credit losses for the quarter ended December 31, 2023 was primarily attributable to loan growth resulting from the purchase of commercial and industrial revolving lines of credit, partially offset by an improvement in the economic forecast.

Deposits

Total deposits at December 31, 2024 were $2.35 billion, an increase of $58.5 million, or 2.6%, compared to $2.29 billion at September 30, 2024, and an increase of $90.2 million, or 4.0%, compared to $2.26 billion at December 31, 2023.

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

12/31/2024

9/30/2024

12/31/2023

$

%

$

%

12/31/2024

12/31/2023

Noninterest-bearing demand deposits

$

432,143

$

437,734

$

448,752

$

(5,591

)

(1.3

)%

$

(16,609

)

(3.7

)%

18.4

%

19.9

%

Interest-bearing demand deposits

554,777

500,345

489,604

54,432

10.9

65,173

13.3

23.7

21.7

Money market deposits

191,548

196,710

179,366

(5,162

)

(2.6

)

12,182

6.8

8.2

8.0

Brokered demand deposits

47,320

-

-

47,320

-

47,320

-

2.0

-

Savings deposits

134,879

128,241

137,606

6,638

5.2

(2,727

)

(2.0

)

5.7

6.1

Brokered time deposits

245,520

271,684

269,102

(26,164

)

(9.6

)

(23,582

)

(8.8

)

10.5

11.9

Time deposits

739,757

752,694

731,297

(12,937

)

(1.7

)

8,460

1.2

31.5

32.4

Total deposits

$

2,345,944

$

2,287,408

$

2,255,727

$

58,536

2.6

%

$

90,217

4.0

%

100

%

100

%

The increase in interest-bearing demand deposits and savings deposits at December 31, 2024 compared to September 30, 2024 is primarily the result of organic growth. The decrease in noninterest-bearing demand deposits and money market deposits at December 31, 2024 compared to September 30, 2024 is primarily due to customers drawing down on their existing deposit accounts. The decrease in time deposits at December 31, 2024 compared to September 30, 2024 is primarily due to a reduced emphasis on time deposits. Brokered time deposits decreased to $245.5 million at December 31, 2024 from $271.7 million at September 30, 2024. Investar utilizes brokered time deposits, entirely in denominations of less than $250,000, to secure fixed cost funding and reduce short-term borrowings. At December 31, 2024, the balance of brokered time deposits remained below 10% of total assets, and the remaining weighted average duration was approximately seven months with a weighted average rate of 4.99%. Investar utilizes brokered demand deposits when pricing is more favorable than other short-term borrowings. For the quarter ended December 31, 2024, brokered demand deposits had a weighted average rate of 4.43%.

The increase in interest-bearing demand deposits, money market deposits, and time deposits at December 31, 2024 compared to December 31, 2023 is primarily the result of organic growth. The decrease in noninterest-bearing demand deposits and savings deposits at December 31, 2024 compared to December 31, 2023 is primarily due to customers drawing down on their existing deposit accounts and shifts into interest-bearing deposit products with higher rates.

Stockholders' Equity

Stockholders' equity was $241.3 million at December 31, 2024, a decrease of $4.2 million, or 1.7%, compared to September 30, 2024, and an increase of $14.5 million, or 6.4%, compared to December 31, 2023. The decrease in stockholders' equity compared to September 30, 2024 is primarily attributable to an increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank's available for sale securities portfolio, partially offset by net income for the quarter. The increase in stockholders' equity compared to December 31, 2023 is primarily attributable to net income for the 12 months ended December 31, 2024, partially offset by an increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank's available for sale securities portfolio.

Net Interest Income

Net interest income for the fourth quarter of 2024 totaled $17.5 million, a decrease of $0.4 million, or 2.1%, compared to the third quarter of 2024, and a decrease of $1.0 million, or 5.5%, compared to the fourth quarter of 2023. Total interest income was $35.5 million, $36.8 million and $36.7 million for the quarters ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively. Total interest expense was $18.0 million, $19.0 million and $18.2 million for the corresponding periods. Included in net interest income for the quarters ended December 31, 2024, September 30, 2024 and December 31, 2023 is $11,000, $13,000, and $25,000, respectively, of interest income accretion from the acquisition of loans. Also included in net interest income for the quarters ended December 31, 2024, September 30, 2024 and December 31, 2023 are interest recoveries of $11,000, $79,000 and $1.1 million, respectively.

Investar's net interest margin was 2.65% for the quarter ended December 31, 2024, compared to 2.67% for the quarter ended September 30, 2024 and 2.72% for the quarter ended December 31, 2023. The decrease in net interest margin for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 was driven by a 13 basis point decrease in the yield on interest-earning assets, partially offset by a 12 basis point decrease in the overall cost of funds. The decrease in net interest margin for the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023 was driven by a nine basis point increase in the overall cost of funds and a two basis point decrease in the yield on interest-earning assets.

The yield on interest-earning assets was 5.38% for the quarter ended December 31, 2024, compared to 5.51% for the quarter ended September 30, 2024 and 5.40% for the quarter ended December 31, 2023. The decrease in the yield on interest-earning assets compared to the quarter ended September 30, 2024 was driven by a 17 basis point decrease in the yield on our loan portfolio. The decrease in the yield on interest-earning assets compared to the quarter ended December 31, 2023 was driven by a six basis point decrease in the yield on our loan portfolio.

Exclusive of the interest income accretion from the acquisition of loans and interest recoveries, discussed above, adjusted net interest margin decreased to 2.64% for the quarter ended December 31, 2024, compared to 2.66% for the quarter ended September 30, 2024 and increased from 2.56% for the quarter ended December 31, 2023. The adjusted yield on interest-earning assets was 5.37% for the quarter ended December 31, 2024 compared to 5.50% and 5.23% for the quarters ended September 30, 2024 and December 31, 2023, respectively. Refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics.

The cost of deposits decreased five basis points to 3.40% for the quarter ended December 31, 2024 compared to 3.45% for the quarter ended September 30, 2024 and increased 23 basis points compared to 3.17% for the quarter ended December 31, 2023. The decrease in the cost of deposits compared to the quarter ended September 30, 2024 resulted primarily from both a lower average balance of, and a decrease in rates paid on, brokered time deposits and a decrease in rates paid on time deposits, partially offset by both a higher average balance of, and an increase in rates paid on, interest-bearing demand deposits. The increase in the cost of deposits compared to the quarter ended December 31, 2023 resulted primarily from both a higher average balance of, and an increase in rates paid on, interest-bearing demand deposits and an increase in rates paid on time deposits, partially offset by both a lower average balance of, and a decrease in rates paid on, brokered time deposits.

The cost of short-term borrowings decreased 68 basis points to 3.91% for the quarter ended December 31, 2024 compared to 4.59% for the quarter ended September 30, 2024 and decreased 93 basis points compared to 4.84% for the quarter ended December 31, 2023. Beginning in the second quarter of 2023, the Bank began utilizing the BTFP to secure fixed rate funding for up to a one-year term and reduce short-term Federal Home Loan Bank ("FHLB") advances, which are priced daily. The Bank utilized this source of funding due to its lower rate as compared to FHLB advances, the ability to prepay the obligations without penalty, and as a means to lock in funding. During the fourth quarter of 2024, the Bank repaid all of the remaining $109.0 million in borrowings under the BTFP. The decrease in the cost of short-term borrowings compared to the quarter ended September 30, 2024 resulted primarily from a lower average balance of borrowings under the BTFP. The decrease in the cost of short-term borrowings compared to the quarter ended December 31, 2023 resulted primarily from both a lower average balance of, and a decrease in rates paid on, borrowings under the BTFP, which were driven by a decrease in the Federal Reserve's federal funds rate.

The overall cost of funds for the quarter ended December 31, 2024 decreased 12 basis points to 3.49% compared to 3.61% for the quarter ended September 30, 2024 and increased nine basis points compared to 3.40% for the quarter ended December 31, 2023. The decrease in the cost of funds for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 resulted from a decrease in the cost of deposits and both a decrease in the average balance of, and a decrease in the cost of short-term borrowings, partially offset by a higher average balance of deposits. The increase in the cost of funds for the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023 resulted from both a higher average balance of, and an increase in the cost of deposits, partially offset by both a lower average balance of, and a decrease in the cost of short-term borrowings.

Noninterest Income

Noninterest income for the fourth quarter of 2024 totaled $5.2 million, an increase of $1.6 million, or 45.7%, compared to the third quarter of 2024 and an increase of $3.4 million, or 194.2%, compared to the fourth quarter of 2023.

The increase in noninterest income compared to the quarter ended September 30, 2024 is driven by a $3.1 million increase in income from BOLI, partially offset by a $1.1 million decrease in income from legal settlement and a $0.4 million increase in loss on call or sale of investment securities. During the fourth quarter, the Bank received BOLI death benefit proceeds totaling $5.5 million and recorded $3.1 million in income from BOLI. During the third quarter, Investar recorded $1.1 million in income from a legal settlement related to one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida.

The increase in noninterest income compared to the quarter ended December 31, 2023 is driven by a $3.2 million increase in income from BOLI, a $0.1 million increase in change in the fair value of equity securities, and a $0.1 million increase in other operating income. The increase in other operating income is primarily attributable to a $0.1 million increase in distributions from investments.

Noninterest Expense

Noninterest expense for the fourth quarter of 2024 totaled $16.1 million, a decrease of $0.1 million, or 0.6%, compared to the third quarter of 2024, and an increase of $0.6 million, or 4.1%, compared to the fourth quarter of 2023.

The decrease in noninterest expense for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 was driven by a $0.2 million decrease in salaries and employee benefits and a $0.1 million decrease in other operating expenses, partially offset by a $0.2 million increase in loss on early extinguishment of subordinated debt. The decrease in salaries and employee benefits was primarily due to decreases in salaries expense and deferred compensation expense, partially offset by an increase in health insurance claims. During the fourth quarter of 2024, Investar redeemed $20.0 million in principal amount of our 2029 Notes and recognized a loss on early extinguishment of subordinated debt of $0.2 million primarily consisting of unamortized deferred financing costs. The decrease in other operating expenses is primarily due to a decrease in collection and repossession expenses and Federal Deposit Insurance Corporation ("FDIC") assessments, partially offset by an increase in charitable contributions.

The increase in noninterest expense for the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023 was driven by a $0.8 million increase in salaries and employee benefits and a $0.2 million increase in loss on early extinguishment of subordinated debt, partially offset by a $0.2 million decrease in depreciation and amortization and a $0.2 million decrease in other operating expenses. The increase in salaries and employee benefits is primarily due to investment in people with an emphasis on our Texas markets to remix and strengthen our balance sheet and an increase in incentive-based compensation. The decrease in depreciation and amortization is primarily due to the closure of one branch location in the first quarter of 2024. The decrease in other operating expenses is primarily due to a decrease in bank shares tax and a decrease in other real estate expense, partially offset by an increase in charitable contributions.

Taxes

Investar recorded income tax expense of $1.2 million for the quarter ended December 31, 2024, which equates to an effective tax rate of 16.0%, an increase from the effective tax rate of 12.7% for the quarter ended September 30, 2024 and a decrease from the effect tax rate of 18.1% for the quarter ended December 31, 2023. The third quarter 2024 effective tax rate reflected a revision to our estimated 2024 annual effective tax rate to account for the projected increase in nontaxable income from BOLI in the fourth quarter of $3.1 million upon receipt of death benefit proceeds.

Basic and Diluted Earnings Per Common Share

Investar reported basic and diluted earnings per common share of $0.62 and $0.61, respectively, for the quarter ended December 31, 2024, compared to basic and diluted earnings per common share of $0.55 and $0.54, respectively for the quarter ended September 30, 2024, and basic and diluted earnings per common share of $0.36 for the quarter ended December 31, 2023.

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 29 branch locations serving Louisiana, Texas, and Alabama. At December 31, 2024, the Bank had 331 full-time equivalent employees and total assets of $2.7 billion.

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;

  • 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;

  • 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;

  • 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;

  • our potential growth, including our entrance or expansion into new markets, and the need for sufficient capital to support that growth;

  • the impact of litigation and other legal proceedings to which we become subject;

  • competitive pressures in the commercial finance, retail banking, mortgage lending and consumer finance industries, as well as the financial resources of, and products offered by, competitors;

  • the impact of changes in laws and regulations applicable to us, including banking, securities and tax laws and regulations and accounting standards, as well as changes in the interpretation of such laws and regulations by our regulators;

  • changes in the scope and costs of FDIC insurance and other coverages;

  • governmental monetary and fiscal policies; 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, 2023 filed with the Securities and Exchange Commission.

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

12/31/2024

9/30/2024

12/31/2023

Linked Quarter

Year/Year

EARNINGS DATA

Total interest income

$

35,505

$

36,848

$

36,668

(3.6

)%

(3.2

)%

Total interest expense

18,022

18,992

18,177

(5.1

)

(0.9

)

Net interest income

17,483

17,856

18,491

(2.1

)

(5.5

)

Provision for credit losses

(701

)

(945

)

486

25.8

(244.2

)

Total noninterest income

5,163

3,544

1,755

45.7

194.2

Total noninterest expense

16,079

16,180

15,440

(0.6

)

4.1

Income before income tax expense

7,268

6,165

4,320

17.9

68.2

Income tax expense

1,161

784

782

48.1

48.5

Net income

$

6,107

$

5,381

$

3,538

13.5

72.6

AVERAGE BALANCE SHEET DATA

Total assets

$

2,763,734

$

2,796,969

$

2,817,388

(1.2

)%

(1.9

)%

Total interest-earning assets

2,626,533

2,660,011

2,694,474

(1.3

)

(2.5

)

Total loans

2,129,388

2,159,412

2,214,916

(1.4

)

(3.9

)

Total interest-bearing deposits

1,881,297

1,813,775

1,824,318

3.7

3.1

Total interest-bearing liabilities

2,054,561

2,093,260

2,119,724

(1.8

)

(3.1

)

Total deposits

2,315,730

2,246,901

2,279,211

3.1

1.6

Total stockholders' equity

247,230

238,778

212,454

3.5

16.4

PER SHARE DATA

Earnings:

Basic earnings per common share

$

0.62

$

0.55

$

0.36

12.7

%

72.2

%

Diluted earnings per common share

0.61

0.54

0.36

13.0

69.4

Core earnings(1):

Core basic earnings per common share(1)

0.66

0.45

0.39

46.7

69.2

Core diluted earnings per common share(1)

0.65

0.45

0.39

44.4

66.7

Book value per common share

24.55

24.98

23.26

(1.7

)

5.5

Tangible book value per common share(1)

20.31

20.73

18.92

(2.0

)

7.3

Common shares outstanding

9,828,413

9,827,622

9,748,067

0.0

0.8

Weighted average common shares outstanding - basic

9,828,146

9,828,776

9,754,617

0.0

0.8

Weighted average common shares outstanding - diluted

9,993,790

9,902,448

9,763,296

0.9

2.4

PERFORMANCE RATIOS

Return on average assets

0.88

%

0.77

%

0.50

%

14.3

%

76.0

%

Core return on average assets(1)

0.93

0.63

0.54

47.6

72.2

Return on average equity

9.83

8.97

6.61

9.6

48.7

Core return on average equity(1)

10.40

7.40

7.16

40.5

45.3

Net interest margin

2.65

2.67

2.72

(0.7

)

(2.6

)

Net interest income to average assets

2.52

2.54

2.60

(0.8

)

(3.1

)

Noninterest expense to average assets

2.31

2.30

2.17

0.4

6.5

Efficiency ratio(2)

71.00

75.61

76.26

(6.1

)

(6.9

)

Core efficiency ratio(1)

69.41

79.33

74.85

(12.5

)

(7.3

)

Dividend payout ratio

16.94

19.09

27.78

(11.3

)

(39.0

)

Net charge-offs (recoveries) to average loans

0.04

(0.02

)

-

300.0

-

(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

12/31/2024

9/30/2024

12/31/2023

Linked Quarter

Year/Year

ASSET QUALITY RATIOS

Nonperforming assets to total assets

0.52

%

0.32

%

0.36

%

62.5

%

44.4

%

Nonperforming loans to total loans

0.42

0.19

0.26

121.1

61.5

Allowance for credit losses to total loans

1.26

1.30

1.38

(3.1

)

(8.7

)

Allowance for credit losses to nonperforming loans

302.77

682.03

529.32

(55.6

)

(42.8

)

CAPITAL RATIOS

Investar Holding Corporation:

Total equity to total assets

8.86

%

8.76

%

8.06

%

1.1

%

9.9

%

Tangible equity to tangible assets(1)

7.44

7.38

6.65

0.9

11.9

Tier 1 leverage capital

9.27

8.95

8.35

3.6

11.0

Common equity tier 1 capital(2)

10.85

10.33

9.51

5.0

14.1

Tier 1 capital(2)

11.26

10.74

9.90

4.8

13.7

Total capital(2)

13.14

13.48

12.99

(2.5

)

1.2

Investar Bank:

Tier 1 leverage capital

9.70

10.06

9.81

(3.6

)

(1.1

)

Common equity tier 1 capital(2)

11.79

12.07

11.64

(2.3

)

1.3

Tier 1 capital(2)

11.79

12.07

11.64

(2.3

)

1.3

Total capital(2)

12.94

13.26

12.89

(2.4

)

0.4

(1) Non-GAAP financial measure. See reconciliation.
(2) Estimated for December 31, 2024.

INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)

December 31, 2024

September 30, 2024

December 31, 2023

ASSETS

Cash and due from banks

$

26,623

$

28,869

$

28,285

Interest-bearing balances due from other banks

1,299

57,471

3,724

Cash and cash equivalents

27,922

86,340

32,009

Available for sale securities at fair value (amortized cost of $392,564, $399,615, and $419,283, respectively)

331,121

350,646

361,918

Held to maturity securities at amortized cost (estimated fair value of $42,144, $18,018, and $20,513, respectively)

42,687

18,302

20,472

Loans

2,125,084

2,155,846

2,210,619

Less: allowance for credit losses

(26,721

)

(28,103

)

(30,540

)

Loans, net

2,098,363

2,127,743

2,180,079

Equity securities at fair value

2,593

2,434

1,180

Nonmarketable equity securities

16,502

13,951

13,417

Bank premises and equipment, net of accumulated depreciation of $21,853, $21,275, and $19,476, respectively

40,705

41,795

44,183

Other real estate owned, net

5,218

4,739

4,438

Accrued interest receivable

14,423

14,324

14,366

Deferred tax asset

17,120

14,719

16,910

Goodwill and other intangible assets, net

41,696

41,844

42,320

Bank-owned life insurance

59,703

61,667

58,797

Other assets

24,759

24,069

25,066

Total assets

$

2,722,812

$

2,802,573

$

2,815,155

LIABILITIES

Deposits

Noninterest-bearing

$

432,143

$

437,734

$

448,752

Interest-bearing

1,913,801

1,849,674

1,806,975

Total deposits

2,345,944

2,287,408

2,255,727

Advances from Federal Home Loan Bank

67,215

63,500

23,500

Borrowings under Bank Term Funding Program

-

109,000

212,500

Repurchase agreements

8,376

12,994

8,633

Subordinated debt, net of unamortized issuance costs

16,697

36,494

44,320

Junior subordinated debt

8,733

8,709

8,630

Accrued taxes and other liabilities

34,551

38,926

35,077

Total liabilities

2,481,516

2,557,031

2,588,387

STOCKHOLDERS' EQUITY

Preferred stock, no par value per share; 5,000,000 shares authorized

-

-

-

Common stock, $1.00 par value per share; 40,000,000 shares authorized; 9,828,413, 9,827,622, and 9,748,067 shares issued and outstanding, respectively

9,828

9,828

9,748

Surplus

146,890

146,393

145,456

Retained earnings

132,935

127,860

116,711

Accumulated other comprehensive loss

(48,357

)

(38,539

)

(45,147

)

Total stockholders' equity

241,296

245,542

226,768

Total liabilities and stockholders' equity

$

2,722,812

$

2,802,573

$

2,815,155

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, 2024

September 30, 2024

December 31, 2023

December 31, 2024

December 31, 2023

INTEREST INCOME

Interest and fees on loans

$

31,438

$

32,764

$

33,128

$

128,498

$

117,892

Interest on investment securities

Taxable

2,709

2,755

2,970

11,047

12,372

Tax-exempt

569

228

253

1,249

693

Other interest income

789

1,101

317

3,071

2,244

Total interest income

35,505

36,848

36,668

143,865

133,201

INTEREST EXPENSE

Interest on deposits

16,071

15,729

14,584

61,510

42,072

Interest on borrowings

1,951

3,263

3,593

12,602

16,609

Total interest expense

18,022

18,992

18,177

74,112

58,681

Net interest income

17,483

17,856

18,491

69,753

74,520

Provision for credit losses

(701

)

(945

)

486

(3,480

)

(2,000

)

Net interest income after provision for credit losses

18,184

18,801

18,005

73,233

76,520

NONINTEREST INCOME

Service charges on deposit accounts

804

828

798

3,241

3,090

(Loss) gain on call or sale of investment securities, net

(371

)

1

(322

)

(753

)

(323

)

(Loss) gain on sale or disposition of fixed assets, net

-

-

(39

)

427

(1,323

)

(Loss) gain on sale of other real estate owned, net

(25

)

(4

)

-

683

(114

)

Gain on sale of loans

-

-

-

-

75

Servicing fees and fee income on serviced loans

-

-

2

-

14

Interchange fees

407

403

417

1,615

1,697

Income from bank owned life insurance

3,576

459

371

4,886

1,417

Change in the fair value of equity securities

159

174

24

413

(65

)

Legal settlement

-

1,122

-

1,122

-

Other operating income

613

561

504

2,571

2,070

Total noninterest income

5,163

3,544

1,755

14,205

6,538

Income before noninterest expense

23,347

22,345

19,760

87,438

83,058

NONINTEREST EXPENSE

Depreciation and amortization

736

760

909

3,095

3,780

Salaries and employee benefits

9,792

9,982

9,003

38,615

37,143

Occupancy

647

652

706

2,576

2,994

Data processing

901

880

892

3,611

3,482

Marketing

136

121

68

370

302

Professional fees

434

473

461

1,797

1,933

Loss (gain) on early extinguishment of subordinated debt

210

-

-

(292

)

-

Other operating expenses

3,223

3,312

3,401

13,260

12,996

Total noninterest expense

16,079

16,180

15,440

63,032

62,630

Income before income tax expense

7,268

6,165

4,320

24,406

20,428

Income tax expense

1,161

784

782

4,154

3,750

Net income

$

6,107

$

5,381

$

3,538

$

20,252

$

16,678

EARNINGS PER SHARE

Basic earnings per common share

$

0.62

$

0.55

$

0.36

$

2.06

$

1.69

Diluted earnings per common share

0.61

0.54

0.36

2.04

1.69

Cash dividends declared per common share

0.105

0.105

0.10

0.41

0.395

INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)

For the three months ended

December
31, 2024

September
30, 2024

December
31, 2023

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

$

2,129,388

$

31,438

5.87

%

$

2,159,412

$

32,764

6.04

%

$

2,214,916

$

33,128

5.93

%

Securities:

Taxable

389,170

2,709

2.77

396,254

2,755

2.77

427,746

2,970

2.75

Tax-exempt

44,544

569

5.08

24,552

228

3.68

28,807

253

3.50

Interest-bearing balances with banks

63,431

789

4.95

79,793

1,101

5.49

23,005

317

5.46

Total interest-earning assets

2,626,533

35,505

5.38

2,660,011

36,848

5.51

2,694,474

36,668

5.40

Cash and due from banks

25,222

26,121

27,214

Intangible assets

41,775

41,927

42,414

Other assets

98,057

97,704

83,447

Allowance for credit losses

(27,853

)

(28,794

)

(30,161

)

Total assets

$

2,763,734

$

2,796,969

$

2,817,388

Liabilities and stockholders' equity

Interest-bearing liabilities:

Deposits:

Interest-bearing demand deposits

$

753,477

$

4,342

2.29

%

$

676,946

$

3,440

2.02

%

$

668,277

$

2,873

1.71

%

Brokered demand deposits

1,312

15

4.43

-

-

-

-

-

-

Savings deposits

130,896

371

1.13

127,536

366

1.14

136,045

318

0.93

Brokered time deposits

246,104

3,103

5.02

255,076

3,335

5.20

275,552

3,590

5.17

Time deposits

749,508

8,240

4.37

754,217

8,588

4.53

744,444

7,803

4.16

Total interest-bearing deposits

1,881,297

16,071

3.40

1,813,775

15,729

3.45

1,824,318

14,584

3.17

Short-term borrowings

68,237

671

3.91

207,539

2,396

4.59

218,977

2,672

4.84

Long-term debt

105,027

1,280

4.85

71,946

867

4.79

76,429

921

4.78

Total interest-bearing liabilities

2,054,561

18,022

3.49

2,093,260

18,992

3.61

2,119,724

18,177

3.40

Noninterest-bearing deposits

434,433

433,126

454,893

Other liabilities

27,510

31,805

30,317

Stockholders' equity

247,230

238,778

212,454

Total liability and stockholders' equity

$

2,763,734

$

2,796,969

$

2,817,388

Net interest income/net interest margin

$

17,483

2.65

%

$

17,856

2.67

%

$

18,491

2.72

%

INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)

For the twelve months ended

December
31, 2024

December
31, 2023

Average
Balance

Interest
Income/
Expense

Yield/ Rate

Average
Balance

Interest
Income/
Expense


Yield/ Rate

Assets

Interest-earning assets:

Loans

$

2,163,161

$

128,498

5.94

%

$

2,123,234

$

117,892

5.55

%

Securities:

Taxable

399,855

11,047

2.76

447,442

12,372

2.76

Tax-exempt

29,930

1,249

4.17

22,051

693

3.14

Interest-bearing balances with banks

56,851

3,071

5.40

38,561

2,244

5.82

Total interest-earning assets

2,649,797

143,865

5.43

2,631,288

133,201

5.06

Cash and due from banks

25,890

29,142

Intangible assets

42,006

42,695

Other assets

95,391

86,712

Allowance for credit losses

(28,933

)

(30,242

)

Total assets

$

2,784,151

$

2,759,595

Liabilities and stockholders' equity

Interest-bearing liabilities:

Deposits:

Interest-bearing demand deposits

$

692,390

$

14,024

2.03

%

$

688,786

$

8,941

1.30

%

Brokered demand deposits

455

22

4.76

-

-

-

Savings deposits

130,553

1,418

1.09

134,817

534

0.40

Brokered time deposits

249,668

12,878

5.16

163,873

8,224

5.02

Time deposits

745,002

33,168

4.45

699,648

24,373

3.48

Total interest-bearing deposits

1,818,068

61,510

3.38

1,687,124

42,072

2.49

Short-term borrowings

189,912

8,699

4.58

260,730

12,845

4.93

Long-term debt

81,152

3,903

4.81

82,844

3,764

4.54

Total interest-bearing liabilities

2,089,132

74,112

3.55

2,030,698

58,681

2.89

Noninterest-bearing deposits

430,433

489,175

Other liabilities

28,986

21,220

Stockholders' equity

235,600

218,502

Total liability and stockholders' equity

$

2,784,151

$

2,759,595

Net interest income/net interest margin

$

69,753

2.63

%

$

74,520

2.83

%

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, 2024

September
30, 2024

December
31, 2023

Average
Balance

Interest
Income/
Expense

Yield/ Rate

Average
Balance

Interest
Income/
Expense

Yield/ Rate

Average
Balance

Interest
Income/
Expense

Yield/ Rate

Interest-earning assets:

Loans

$

2,129,388

$

31,438

5.87

%

$

2,159,412

$

32,764

6.04

%

$

2,214,916

$

33,128

5.93

%

Adjustments:

Interest recoveries

11

79

1,105

Accretion

11

13

25

Adjusted loans

2,129,388

31,416

5.87

2,159,412

32,672

6.02

2,214,916

31,998

5.73

Securities:

Taxable

389,170

2,709

2.77

396,254

2,755

2.77

427,746

2,970

2.75

Tax-exempt

44,544

569

5.08

24,552

228

3.68

28,807

253

3.50

Interest-bearing balances with banks

63,431

789

4.95

79,793

1,101

5.49

23,005

317

5.46

Adjusted interest-earning assets

2,626,533

35,483

5.37

2,660,011

36,756

5.50

2,694,474

35,538

5.23

Total interest-bearing liabilities

2,054,561

18,022

3.49

2,093,260

18,992

3.61

2,119,724

18,177

3.40

Adjusted net interest income/adjusted net interest margin

$

17,461

2.64

%

$

17,764

2.66

%

$

17,361

2.56

%

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)

December 31, 2024

September 30, 2024

December 31, 2023

Tangible common equity

Total stockholders' equity

$

241,296

$

245,542

$

226,768

Adjustments:

Goodwill

40,088

40,088

40,088

Core deposit intangible

1,508

1,656

2,132

Trademark intangible

100

100

100

Tangible common equity

$

199,600

$

203,698

$

184,448

Tangible assets

Total assets

$

2,722,812

$

2,802,573

$

2,815,155

Adjustments:

Goodwill

40,088

40,088

40,088

Core deposit intangible

1,508

1,656

2,132

Trademark intangible

100

100

100

Tangible assets

$

2,681,116

$

2,760,729

$

2,772,835

Common shares outstanding

9,828,413

9,827,622

9,748,067

Tangible equity to tangible assets

7.44

%

7.38

%

6.65

%

Book value per common share

$

24.55

$

24.98

$

23.26

Tangible book value per common share

20.31

20.73

18.92

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)

For the three months ended

December 31, 2024

September 30, 2024

December 31, 2023

Net interest income
(a)

$

17,483

$

17,856

$

18,491

Provision for credit losses

(701

)

(945

)

486

Net interest income after provision for credit losses

18,184

18,801

18,005

Noninterest income
(b)

5,163

3,544

1,755

Loss (gain) on call or sale of investment securities, net

371

(1

)

322

Loss on sale or disposition of fixed assets, net

-

-

39

Loss on sale of other real estate owned, net

25

4

-

Change in the fair value of equity securities

(159

)

(174

)

(24

)

Legal settlement(1)

-

(1,122

)

-

Change in the net asset value of other investments(2)

(25

)

(48

)

(43

)

Core noninterest income(3)
(d)

5,375

2,203

2,049

Core earnings before noninterest expense(3)

23,559

21,004

20,054

Total noninterest expense
(c)

16,079

16,180

15,440

Loss on early extinguishment of subordinated debt

(210

)

-

-

Severance(4)

(4

)

-

-

Loan purchase expense(5)

-

-

(66

)

Legal settlement expense(6)

-

(267

)

-

Core noninterest expense
(f)

15,865

15,913

15,374

Core earnings before income tax expense(3)

7,694

5,091

4,680

Core income tax expense(7)

1,231

647

847

Core earnings(3)

$

6,463

$

4,444

$

3,833

Core basic earnings per common share(3)

0.66

0.45

0.39

Diluted earnings per common share (GAAP)

$

0.61

$

0.54

$

0.36

Loss (gain) on call or sale of investment securities, net

0.03

-

0.03

Loss on sale or disposition of fixed assets, net

-

-

-

Loss on sale of other real estate owned, net

-

-

-

Change in the fair value of equity securities

(0.01

)

(0.01

)

-

Legal settlement(1)

-

(0.10

)

-

Change in the net asset value of other investments(2)

-

-

-

Loss on early extinguishment of subordinated debt

0.02

-

-

Severance(4)

-

-

-

Loan purchase expense(5)

-

-

-

Legal settlement expense(6)

-

0.02

-

Core diluted earnings per common share(3)

$

0.65

$

0.45

$

0.39

Efficiency ratio
(c) / (a+b)

71.00

%

75.61

%

76.26

%

Core efficiency ratio(3)
(f) / (a+d)

69.41

79.33

74.85

Core return on average assets(3)(8)

0.93

0.63

0.54

Core return on average equity(3)(8)

10.40

7.40

7.16

Total average assets

$

2,763,734

$

2,796,969

$

2,817,388

Total average stockholders' equity

247,230

238,778

212,454

(1)Adjustment to noninterest income directly attributable to income from a legal settlement related to one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida.
(2)Change in the 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)Core noninterest income, core earnings before noninterest expense, core earnings before income tax expense and core earnings include $3.1 million in nontaxable noninterest income from BOLI death benefit proceeds recorded during the quarter ended December 31, 2024. Excluding this income, core basic earnings per share, core diluted earnings per share, core efficiency ratio, core return on average assets, and core return on average equity are $0.39, $0.39, 80.35%, 0.55%, and 6.19%, respectively, for the quarter ended December 31, 2024.
(4)Severance is included 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)Adjustments to noninterest expense directly attributable to the income from a legal settlement, consisting of professional fees for legal services and collection and repossession expenses included in other operating expenses in the accompanying consolidated statements of income.
(7)Core income tax expense is calculated using the effective tax rates of 16.0%, 12.7% and 18.1% for the quarters ended December 31, 2024, September 30, 2024 and December 31, 2023, respectively.
(8)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 ACCESS Newswire

FAQ

What was Investar's (ISTR) earnings per share in Q4 2024?

Investar reported earnings of $0.61 per diluted share in Q4 2024, compared to $0.54 in Q3 2024 and $0.36 in Q4 2023.

How much did ISTR's total deposits grow in Q4 2024?

Total deposits increased by $58.5 million (2.6%) to $2.35 billion in Q4 2024 compared to Q3 2024.

What was ISTR's net interest margin in Q4 2024?

ISTR's net interest margin was 2.65% in Q4 2024, slightly down from 2.67% in Q3 2024.

How did ISTR's loan portfolio perform in Q4 2024?

Total loans decreased by $30.8 million (1.4%) to $2.13 billion in Q4 2024 compared to Q3 2024.

What was ISTR's cost of funds in Q4 2024?

The overall cost of funds decreased 12 basis points to 3.49% in Q4 2024 compared to 3.61% in Q3 2024.

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Investar Holding Corporation

NASDAQ:ISTR

ISTR Rankings

#3921 Ranked by Market Cap
#1347 Ranked by Dividends

ISTR Latest News

Dec 18, 2024
Investar Holding Corporation Declares Quarterly Cash Dividend
Oct 21, 2024
Investar Holding Corporation Announces 2024 Third Quarter Results
Sep 18, 2024
Investar Holding Corporation Declares Quarterly Cash Dividend
Jul 22, 2024
Investar Holding Corporation Announces 2024 Second Quarter Results
Jul 1, 2024
Investar Holding Corporation Rejoins Russell 3000(R) Index

ISTR Stock Data

197.11M
9.09M
7.3%
63.83%
1.56%
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