Investar Holding Corporation Announces 2024 Second Quarter Results
Investar Holding (NASDAQ: ISTR) announced its Q2 2024 results, reporting a net income of $4.1 million or $0.41 per diluted share, down from $4.7 million or $0.48 per diluted share in Q1 2024, and $6.5 million or $0.67 per diluted share in Q2 2023. Core earnings were $0.36 per diluted share, compared to $0.43 in Q1 2024 and $0.67 in Q2 2023.
The net interest margin increased to 2.62% from 2.59% in Q1 2024. The company’s loan portfolio yield rose to 5.96% in Q2 2024 from 5.89% in Q1 2024. Investar repurchased $7 million in subordinated debt, gaining $0.3 million, and 6,096 shares of its own stock at an average price of $15.25 per share.
Total loans declined by $13.8 million or 0.6% sequentially but increased by $81.9 million or 3.9% annually. Deposits grew by $2.4 million sequentially and $29.3 million annually. Nonperforming loans improved to 0.23% of total loans from 0.26% in Q1 2024.
- Net interest margin increased to 2.62%
- Loan portfolio yield increased to 5.96%
- Repurchased $7 million in subordinated debt and gained $0.3 million
- Repurchased 6,096 shares at an average price of $15.25
- Nonperforming loans improved to 0.23% of total loans
- Net income decreased to $4.1 million from $4.7 million in Q1 2024
- Core earnings per diluted share decreased to $0.36 from $0.43 in Q1 2024
- Total loans decreased by $13.8 million or 0.6% sequentially
Insights
The financial results for Investar Holding Corporation’s second quarter of 2024 present a mixed picture for investors. The net income has decreased from
On a positive note, the net interest margin (NIM) has shown some improvement, rising to
For retail investors, the key takeaway is the downward trend in net income and core earnings per share, which might suggest a cautious approach unless there’s a clear strategy to reverse this trend. The slight improvement in NIM and strong credit quality are positives but may not be sufficient to outweigh the overall decline in profitability.
Investar’s second-quarter results highlight several market dynamics that are important for investors to understand. The bank's focus on originating and renewing variable-rate loans, which constituted
The decrease in total loans by
However, the mixed results in deposit growth and decline in noninterest-bearing and interest-bearing demand deposits indicate competitive pressures and possible liquidity challenges. The increase in brokered time deposits to fund specific strategic moves reveals attempts to manage cost of funds efficiently but also highlights dependency on potentially volatile funding sources.
Although the primary focus of Investar Holding Corporation’s quarterly results is on financial metrics, technological factors play an underlying role. The bank's ability to manage and analyze data on loan portfolios and interest rates efficiently can be attributed to robust tech infrastructure. The precise management of variable-rate loans and the strategic refinancing of borrowings under the Federal Reserve's Bank Term Funding Program indicate advanced financial modeling and data analytics capabilities.
Additionally, the bank’s investment in technology for operational efficiency, such as streamlined processes for loan origination and client relationship management, undoubtedly contributes to maintaining low nonperforming loan ratios and optimizing the balance sheet. Retail investors should consider the bank’s commitment to technological advancements as a positive aspect that supports long-term operational efficiency and risk management.
However, it's important for the bank to continue investing in cybersecurity and fintech innovations to stay competitive and protect customer data, which remains a critical risk factor in the financial sector.
BATON ROUGE, LA / ACCESSWIRE / July 22, 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 June 30, 2024. Investar reported net income of
On a non-GAAP basis, core earnings per diluted common share for the second quarter of 2024 were
Investar's President and Chief Executive Officer John D'Angelo commented:
"I am excited about our second quarter results as we continued to execute our strategy of consistent, quality earnings through the optimization of our balance sheet. Despite the higher for longer rate environment, our net interest margin expanded for the second consecutive quarter to
We remain inwardly focused on controlling the things that we can control. We are originating high quality loans and allowing higher risk credit relationships to run off. As a result, credit quality remained very solid as nonperforming loans represented only
Finally, I could not be more excited about the future of Investar. Our team has exhibited remarkable resilience as we have proactively managed through a difficult and uncertain economic environment. Our liability sensitive balance sheet and efforts to optimize our asset mix strategically position us to benefit from a more favorable interest rate environment. Additionally, we have begun to reinvest in geographic areas, particularly our Texas markets, with long-term growth potential, as part of our strategy to remix and strengthen our balance sheet and improve GAAP and core metrics in the coming years.
As always, we remain focused on shareholder value and returning capital to shareholders. We repurchased 6,096 shares of our common stock during the second quarter at an average price of
Second Quarter Highlights
Net interest margin improved to
2.62% for the quarter ended June 30, 2024 compared to2.59% for the quarter ended March 31, 2024.Credit quality continued to strengthen with nonperforming loans improving to
0.23% of total loans at June 30, 2024 compared to0.26% at March 31, 2024.Consistent with our strategy of optimizing the balance sheet, total loans decreased
$13.8 million , or0.6% , to$2.17 billion at June 30, 2024, compared to$2.18 billion at March 31, 2024.Variable-rate loans as a percentage of total loans improved to
30% at June 30, 2024 compared to28% at March 31, 2024. During the second quarter, we originated and renewed loans,80% of which were variable-rate loans, at an8.6% blended interest rate.The yield on the loan portfolio increased to
5.96% for the quarter ended June 30, 2024 compared to5.89% for the quarter ended March 31, 2024.Book value per common share increased to
$23.42 at June 30, 2024, or0.9% , compared to$23.21 at March 31, 2024. Tangible book value per common share increased to$19.15 at June 30, 2024, or1.3% , compared to$18.90 at March 31, 2024.Investar repurchased
$5.0 million in principal amount of our5.125% Fixed-to-Floating Rate Subordinated Notes due 2029 (the "2029 Notes") and$2.0 million of our5.125% Fixed-to-Floating Rate Subordinated Notes due 2032 (the "2032 Notes") and recognized a gain on early extinguishment of subordinated debt of$0.3 million .Investar sold other real estate owned with a cost basis of
$1.0 million related to one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida and recognized a gain of$0.7 million during the quarter ended June 30, 2024.Investar repurchased 6,096 shares of its common stock through its stock repurchase program at an average price of
$15.25 per share during the quarter ended June 30, 2024, leaving 497,645 shares authorized for repurchase under the program at June 30, 2024.
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 |
| |||||||||||||||||||
|
| 6/30/2024 |
| 3/31/2024 |
| 6/30/2023 |
|
| $ |
|
| % |
|
| $ |
|
| % |
|
| 6/30/2024 |
|
| 6/30/2023 |
| |||||||||
Mortgage loans on real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Construction and development |
| $ | 177,840 |
| $ | 173,511 |
| $ | 197,850 |
|
| $ | 4,329 |
|
|
| 2.5 | % |
| $ | (20,010 | ) |
|
| (10.1 | )% |
|
| 8.2 | % |
|
| 9.4 | % |
1-4 Family |
|
| 414,756 |
|
| 414,480 |
|
| 414,380 |
|
|
| 276 |
|
|
| 0.1 |
|
|
| 376 |
|
|
| 0.1 |
|
|
| 19.1 |
|
|
| 19.9 |
|
Multifamily |
|
| 104,269 |
|
| 105,124 |
|
| 80,424 |
|
|
| (855 | ) |
|
| (0.8 | ) |
|
| 23,845 |
|
|
| 29.6 |
|
|
| 4.8 |
|
|
| 3.9 |
|
Farmland |
|
| 7,542 |
|
| 7,539 |
|
| 8,434 |
|
|
| 3 |
|
|
| 0.0 |
|
|
| (892 | ) |
|
| (10.6 | ) |
|
| 0.4 |
|
|
| 0.4 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
|
| 453,456 |
|
| 453,414 |
|
| 441,393 |
|
|
| 42 |
|
|
| 0.0 |
|
|
| 12,063 |
|
|
| 2.7 |
|
|
| 20.9 |
|
|
| 21.2 |
|
Nonowner-occupied |
|
| 489,984 |
|
| 495,844 |
|
| 530,820 |
|
|
| (5,860 | ) |
|
| (1.2 | ) |
|
| (40,836 | ) |
|
| (7.7 | ) |
|
| 22.6 |
|
|
| 25.4 |
|
Commercial and industrial |
|
| 507,822 |
|
| 518,969 |
|
| 399,488 |
|
|
| (11,147 | ) |
|
| (2.1 | ) |
|
| 108,334 |
|
|
| 27.1 |
|
|
| 23.5 |
|
|
| 19.2 |
|
Consumer |
|
| 11,090 |
|
| 11,697 |
|
| 12,074 |
|
|
| (607 | ) |
|
| (5.2 | ) |
|
| (984 | ) |
|
| (8.1 | ) |
|
| 0.5 |
|
|
| 0.6 |
|
Total loans |
| $ | 2,166,759 |
| $ | 2,180,578 |
| $ | 2,084,863 |
|
| $ | (13,819 | ) |
|
| (0.6 | )% |
| $ | 81,896 |
|
|
| 3.9 | % |
|
| 100 | % |
|
| 100 | % |
At June 30, 2024, the Bank'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
Construction and development loans totaled
Credit Quality
Nonperforming loans were
The allowance for credit losses was
Investar recorded a negative provision for credit losses of
Deposits
Total deposits at June 30, 2024 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 |
| ||||||||||||||||||
|
| 6/30/2024 |
|
| 3/31/2024 |
|
| 6/30/2023 |
|
| $ |
|
| % |
|
| $ |
|
| % |
|
| 6/30/2024 |
|
| 6/30/2023 |
| |||||||||
Noninterest-bearing demand deposits |
| $ | 436,571 |
|
| $ | 435,397 |
|
| $ | 488,311 |
|
| $ | 1,174 |
|
|
| 0.3 | % |
| $ | (51,740 | ) |
|
| (10.6 | )% |
|
| 19.8 | % |
|
| 22.4 | % |
Interest-bearing demand deposits |
|
| 467,184 |
|
|
| 502,818 |
|
|
| 514,501 |
|
|
| (35,634 | ) |
|
| (7.1 | ) |
|
| (47,317 | ) |
|
| (9.2 | ) |
|
| 21.1 |
|
|
| 23.6 |
|
Money market deposits |
|
| 177,191 |
|
|
| 171,113 |
|
|
| 158,984 |
|
|
| 6,078 |
|
|
| 3.6 |
|
|
| 18,207 |
|
|
| 11.5 |
|
|
| 8.0 |
|
|
| 7.3 |
|
Savings deposits |
|
| 128,583 |
|
|
| 132,449 |
|
|
| 125,442 |
|
|
| (3,866 | ) |
|
| (2.9 | ) |
|
| 3,141 |
|
|
| 2.5 |
|
|
| 5.8 |
|
|
| 5.8 |
|
Brokered time deposits |
|
| 249,354 |
|
|
| 237,850 |
|
|
| 153,365 |
|
|
| 11,504 |
|
|
| 4.8 |
|
|
| 95,989 |
|
|
| 62.6 |
|
|
| 11.3 |
|
|
| 7.0 |
|
Time deposits |
|
| 751,319 |
|
|
| 728,201 |
|
|
| 740,250 |
|
|
| 23,118 |
|
|
| 3.2 |
|
|
| 11,069 |
|
|
| 1.5 |
|
|
| 34.0 |
|
|
| 33.9 |
|
Total deposits |
| $ | 2,210,202 |
|
| $ | 2,207,828 |
|
| $ | 2,180,853 |
|
| $ | 2,374 |
|
|
| 0.1 | % |
| $ | 29,349 |
|
|
| 1.3 | % |
|
| 100 | % |
|
| 100 | % |
The decrease in interest-bearing demand deposits and savings deposits at June 30, 2024 compared to March 31, 2024 is primarily due to customers drawing down on their existing deposit accounts. The increase in time deposits and money market deposits at June 30, 2024 compared to March 31, 2024 is primarily the result of organic growth resulting from a deposit campaign. Brokered time deposits increased to
The decrease in noninterest-bearing demand deposits and interest-bearing demand deposits at June 30, 2024 compared to June 30, 2023 is primarily due to customers drawing down on their existing deposit accounts and shifts into interest-bearing deposit products with higher rates. The increase in time deposits, money market deposits, and savings deposits at June 30, 2024 compared to June 30, 2023 is primarily the result of organic growth resulting from a deposit campaign. Brokered time deposits increased to
Stockholders' Equity
Stockholders' equity was
Net Interest Income
Net interest income for the second quarter of 2024 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, adjusted net interest margin was
The cost of deposits increased seven basis points to
The cost of short-term borrowings increased two basis points to
The overall cost of funds for the quarter ended June 30, 2024 increased seven basis points to
Noninterest Income
Noninterest income for the second quarter of 2024 totaled
The increase in noninterest income compared to the quarter ended March 31, 2024 is driven by a
The increase in noninterest income compared to the quarter ended June 30, 2023 is primarily attributable to a
Noninterest Expense
Noninterest expense for the second quarter of 2024 totaled
The increase in noninterest expense for the quarter ended June 30, 2024 compared to the quarter ended March 31, 2024 was primarily driven by a
The increase in noninterest expense for the quarter ended June 30, 2024 compared to the quarter ended June 30, 2023 was primarily driven by a
Taxes
Investar recorded an 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 June 30, 2024, the Bank had 335 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 continue to successfully execute the pivot of our near-term strategy 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;
potential impairment of our goodwill and other intangible assets;
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 |
| ||||||||||||||||||
| 6/30/2024 |
|
| 3/31/2024 |
|
| 6/30/2023 |
|
| Linked Quarter |
|
| Year/Year |
| ||||||
EARNINGS DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Total interest income |
| $ | 35,790 |
|
| $ | 35,722 |
|
| $ | 32,396 |
|
|
| 0.2 | % |
|
| 10.5 | % |
Total interest expense |
|
| 18,592 |
|
|
| 18,506 |
|
|
| 14,009 |
|
|
| 0.5 |
|
|
| 32.7 |
|
Net interest income |
|
| 17,198 |
|
|
| 17,216 |
|
|
| 18,387 |
|
|
| (0.1 | ) |
|
| (6.5 | ) |
Provision for credit losses |
|
| (415 | ) |
|
| (1,419 | ) |
|
| (2,840 | ) |
|
| 70.8 |
|
|
| 85.4 |
|
Total noninterest income |
|
| 2,750 |
|
|
| 2,748 |
|
|
| 2,070 |
|
|
| 0.1 |
|
|
| 32.9 |
|
Total noninterest expense |
|
| 15,477 |
|
|
| 15,296 |
|
|
| 15,241 |
|
|
| 1.2 |
|
|
| 1.5 |
|
Income before income tax expense |
|
| 4,886 |
|
|
| 6,087 |
|
|
| 8,056 |
|
|
| (19.7 | ) |
|
| (39.3 | ) |
Income tax expense |
|
| 829 |
|
|
| 1,380 |
|
|
| 1,509 |
|
|
| (39.9 | ) |
|
| (45.1 | ) |
Net income |
| $ | 4,057 |
|
| $ | 4,707 |
|
| $ | 6,547 |
|
|
| (13.8 | ) |
|
| (38.0 | ) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
AVERAGE BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
| $ | 2,773,792 |
|
| $ | 2,802,192 |
|
| $ | 2,748,171 |
|
|
| (1.0 | )% |
|
| 0.9 | % |
Total interest-earning assets |
|
| 2,643,232 |
|
|
| 2,669,553 |
|
|
| 2,611,172 |
|
|
| (1.0 | ) |
|
| 1.2 |
|
Total loans |
|
| 2,168,762 |
|
|
| 2,195,496 |
|
|
| 2,100,751 |
|
|
| (1.2 | ) |
|
| 3.2 |
|
Total interest-bearing deposits |
|
| 1,770,985 |
|
|
| 1,805,569 |
|
|
| 1,655,506 |
|
|
| (1.9 | ) |
|
| 7.0 |
|
Total interest-bearing liabilities |
|
| 2,090,296 |
|
|
| 2,118,746 |
|
|
| 2,013,482 |
|
|
| (1.3 | ) |
|
| 3.8 |
|
Total deposits |
|
| 2,196,949 |
|
|
| 2,233,704 |
|
|
| 2,145,629 |
|
|
| (1.6 | ) |
|
| 2.4 |
|
Total stockholders` equity |
|
| 227,537 |
|
|
| 228,690 |
|
|
| 221,528 |
|
|
| (0.5 | ) |
|
| 2.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
| $ | 0.41 |
|
| $ | 0.48 |
|
| $ | 0.67 |
|
|
| (14.6 | )% |
|
| (38.8 | )% |
Diluted earnings per common share |
|
| 0.41 |
|
|
| 0.48 |
|
|
| 0.67 |
|
|
| (14.6 | ) |
|
| (38.8 | ) |
Core Earnings (1) : |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core basic earnings per common share (1) |
|
| 0.36 |
|
|
| 0.44 |
|
|
| 0.67 |
|
|
| (18.2 | ) |
|
| (46.3 | ) |
Core diluted earnings per common share (1) |
|
| 0.36 |
|
|
| 0.43 |
|
|
| 0.67 |
|
|
| (16.3 | ) |
|
| (46.3 | ) |
Book value per common share |
|
| 23.42 |
|
|
| 23.21 |
|
|
| 22.21 |
|
|
| 0.9 |
|
|
| 5.4 |
|
Tangible book value per common share (1) |
|
| 19.15 |
|
|
| 18.90 |
|
|
| 17.87 |
|
|
| 1.3 |
|
|
| 7.2 |
|
Common shares outstanding |
|
| 9,828,825 |
|
|
| 9,781,946 |
|
|
| 9,831,145 |
|
|
| 0.5 |
|
|
| (0.0 | ) |
Weighted average common shares outstanding - basic |
|
| 9,827,903 |
|
|
| 9,769,626 |
|
|
| 9,880,721 |
|
|
| 0.6 |
|
|
| (0.5 | ) |
Weighted average common shares outstanding - diluted |
|
| 9,902,170 |
|
|
| 9,866,973 |
|
|
| 9,881,385 |
|
|
| 0.4 |
|
|
| 0.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
| 0.59 | % |
|
| 0.68 | % |
|
| 0.96 | % |
|
| (13.2 | )% |
|
| (38.5 | )% |
Core return on average assets (1) |
|
| 0.52 |
|
|
| 0.61 |
|
|
| 0.97 |
|
|
| (14.8 | ) |
|
| (46.4 | ) |
Return on average equity |
|
| 7.17 |
|
|
| 8.28 |
|
|
| 11.85 |
|
|
| (13.4 | ) |
|
| (39.5 | ) |
Core return on average equity (1) |
|
| 6.31 |
|
|
| 7.52 |
|
|
| 11.98 |
|
|
| (16.1 | ) |
|
| (47.3 | ) |
Net interest margin |
|
| 2.62 |
|
|
| 2.59 |
|
|
| 2.82 |
|
|
| 1.2 |
|
|
| (7.1 | ) |
Net interest income to average assets |
|
| 2.49 |
|
|
| 2.47 |
|
|
| 2.68 |
|
|
| 0.8 |
|
|
| (7.1 | ) |
Noninterest expense to average assets |
|
| 2.24 |
|
|
| 2.20 |
|
|
| 2.22 |
|
|
| 1.8 |
|
|
| 0.9 |
|
Efficiency ratio (2) |
|
| 77.59 |
|
|
| 76.62 |
|
|
| 74.50 |
|
|
| 1.3 |
|
|
| 4.1 |
|
Core efficiency ratio (1) |
|
| 80.24 |
|
|
| 78.81 |
|
|
| 74.21 |
|
|
| 1.8 |
|
|
| 8.1 |
|
Dividend payout ratio |
|
| 24.39 |
|
|
| 20.83 |
|
|
| 14.93 |
|
|
| 17.1 |
|
|
| 63.4 |
|
Net charge-offs (recoveries) to average loans |
|
| 0.01 |
|
|
| - |
|
|
| (0.11 | ) |
|
| - |
|
|
| 109.1 |
|
(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 |
| ||||||||||||||||||
| 6/30/2024 |
|
| 3/31/2024 |
|
| 6/30/2023 |
|
| Linked Quarter |
|
| Year/Year |
| ||||||
ASSET QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Nonperforming assets to total assets |
|
| 0.30 | % |
|
| 0.36 | % |
|
| 0.40 | % |
|
| (16.7 | )% |
|
| (25.0 | )% |
Nonperforming loans to total loans |
|
| 0.23 |
|
|
| 0.26 |
|
|
| 0.34 |
|
|
| (11.5 | ) |
|
| (32.4 | ) |
Allowance for credit losses to total loans |
|
| 1.32 |
|
|
| 1.34 |
|
|
| 1.44 |
|
|
| (1.5 | ) |
|
| (8.3 | ) |
Allowance for credit losses to nonperforming loans |
|
| 576.38 |
|
|
| 515.36 |
|
|
| 429.60 |
|
|
| 11.8 |
|
|
| 34.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investar Holding Corporation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity to total assets |
|
| 8.26 | % |
|
| 8.14 | % |
|
| 7.93 | % |
|
| 1.5 | % |
|
| 4.2 | % |
Tangible equity to tangible assets (1) |
|
| 6.85 |
|
|
| 6.73 |
|
|
| 6.48 |
|
|
| 1.8 |
|
|
| 5.8 |
|
Tier 1 leverage capital |
|
| 8.81 |
|
|
| 8.62 |
|
|
| 8.45 |
|
|
| 2.2 |
|
|
| 4.3 |
|
Common equity tier 1 capital (2) |
|
| 10.02 |
|
|
| 9.79 |
|
|
| 9.86 |
|
|
| 2.3 |
|
|
| 1.6 |
|
Tier 1 capital (2) |
|
| 10.42 |
|
|
| 10.18 |
|
|
| 10.28 |
|
|
| 2.4 |
|
|
| 1.4 |
|
Total capital (2) |
|
| 13.16 |
|
|
| 13.21 |
|
|
| 13.49 |
|
|
| (0.4 | ) |
|
| (2.4 | ) |
Investar Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital |
|
| 9.95 |
|
|
| 10.01 |
|
|
| 9.96 |
|
|
| (0.6 | ) |
|
| (0.1 | ) |
Common equity tier 1 capital (2) |
|
| 11.78 |
|
|
| 11.83 |
|
|
| 12.11 |
|
|
| (0.4 | ) |
|
| (2.7 | ) |
Tier 1 capital (2) |
|
| 11.78 |
|
|
| 11.83 |
|
|
| 12.11 |
|
|
| (0.4 | ) |
|
| (2.7 | ) |
Total capital (2) |
|
| 12.98 |
|
|
| 13.04 |
|
|
| 13.36 |
|
|
| (0.5 | ) |
|
| (2.8 | ) |
(1) Non-GAAP financial measure. See reconciliation.
(2) Estimated for June 30, 2024.
INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)
| June 30, 2024 |
|
| March 31, 2024 |
|
| June 30, 2023 |
| ||||
ASSETS |
|
|
|
|
|
|
|
|
| |||
Cash and due from banks |
| $ | 27,130 |
|
| $ | 18,083 |
|
| $ | 34,697 |
|
Interest-bearing balances due from other banks |
|
| 42,542 |
|
|
| 23,762 |
|
|
| 31,082 |
|
Federal funds sold |
|
| - |
|
|
| - |
|
|
| 128 |
|
Cash and cash equivalents |
|
| 69,672 |
|
|
| 41,845 |
|
|
| 65,907 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Available for sale securities at fair value (amortized cost of |
|
| 336,616 |
|
|
| 353,340 |
|
|
| 389,583 |
|
Held to maturity securities at amortized cost (estimated fair value of |
|
| 18,457 |
|
|
| 17,755 |
|
|
| 17,812 |
|
Loans |
|
| 2,166,759 |
|
|
| 2,180,578 |
|
|
| 2,084,863 |
|
Less: allowance for credit losses |
|
| (28,620 | ) |
|
| (29,114 | ) |
|
| (30,044 | ) |
Loans, net |
|
| 2,138,139 |
|
|
| 2,151,464 |
|
|
| 2,054,819 |
|
Equity securities at fair value |
|
| 2,260 |
|
|
| 2,260 |
|
|
| 1,134 |
|
Nonmarketable equity securities |
|
| 13,901 |
|
|
| 12,723 |
|
|
| 13,804 |
|
Bank premises and equipment, net of accumulated depreciation of |
|
| 42,383 |
|
|
| 42,659 |
|
|
| 45,925 |
|
Other real estate owned, net |
|
| 3,372 |
|
|
| 4,247 |
|
|
| 4,137 |
|
Accrued interest receivable |
|
| 14,186 |
|
|
| 15,047 |
|
|
| 12,661 |
|
Deferred tax asset |
|
| 17,595 |
|
|
| 17,779 |
|
|
| 17,658 |
|
Goodwill and other intangible assets, net |
|
| 41,996 |
|
|
| 42,154 |
|
|
| 42,677 |
|
Bank owned life insurance |
|
| 61,208 |
|
|
| 60,745 |
|
|
| 58,068 |
|
Other assets |
|
| 27,793 |
|
|
| 25,688 |
|
|
| 29,489 |
|
Total assets |
| $ | 2,787,578 |
|
| $ | 2,787,706 |
|
| $ | 2,753,674 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
| $ | 436,571 |
|
| $ | 435,397 |
|
| $ | 488,311 |
|
Interest-bearing |
|
| 1,773,631 |
|
|
| 1,772,431 |
|
|
| 1,692,542 |
|
Total deposits |
|
| 2,210,202 |
|
|
| 2,207,828 |
|
|
| 2,180,853 |
|
Advances from Federal Home Loan Bank |
|
| 23,500 |
|
|
| 23,500 |
|
|
| 23,500 |
|
Borrowings under Bank Term Funding Program |
|
| 229,000 |
|
|
| 229,000 |
|
|
| 235,800 |
|
Repurchase agreements |
|
| 7,432 |
|
|
| 7,850 |
|
|
| 5,183 |
|
Subordinated debt, net of unamortized issuance costs |
|
| 36,475 |
|
|
| 43,363 |
|
|
| 44,272 |
|
Junior subordinated debt |
|
| 8,683 |
|
|
| 8,657 |
|
|
| 8,574 |
|
Accrued taxes and other liabilities |
|
| 42,090 |
|
|
| 40,503 |
|
|
| 37,135 |
|
Total liabilities |
|
| 2,557,382 |
|
|
| 2,560,701 |
|
|
| 2,535,317 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, no par value per share; 5,000,000 shares authorized |
|
| - |
|
|
| - |
|
|
| - |
|
Common stock, |
|
| 9,829 |
|
|
| 9,782 |
|
|
| 9,831 |
|
Surplus |
|
| 145,918 |
|
|
| 145,739 |
|
|
| 145,347 |
|
Retained earnings |
|
| 123,510 |
|
|
| 120,441 |
|
|
| 112,344 |
|
Accumulated other comprehensive loss |
|
| (49,061 | ) |
|
| (48,957 | ) |
|
| (49,165 | ) |
Total stockholders' equity |
|
| 230,196 |
|
|
| 227,005 |
|
|
| 218,357 |
|
Total liabilities and stockholders' equity |
| $ | 2,787,578 |
|
| $ | 2,787,706 |
|
| $ | 2,753,674 |
|
INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except share data)
(Unaudited)
| For the three months ended |
| ||||||||||
| June 30, 2024 |
|
| March 31, 2024 |
|
| June 30, 2023 |
| ||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
| |||
Interest and fees on loans |
| $ | 32,161 |
|
| $ | 32,135 |
|
| $ | 28,513 |
|
Interest on investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
| 2,766 |
|
|
| 2,817 |
|
|
| 3,262 |
|
Tax-exempt |
|
| 214 |
|
|
| 238 |
|
|
| 119 |
|
Other interest income |
|
| 649 |
|
|
| 532 |
|
|
| 502 |
|
Total interest income |
|
| 35,790 |
|
|
| 35,722 |
|
|
| 32,396 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
| 14,865 |
|
|
| 14,845 |
|
|
| 9,534 |
|
Interest on borrowings |
|
| 3,727 |
|
|
| 3,661 |
|
|
| 4,475 |
|
Total interest expense |
|
| 18,592 |
|
|
| 18,506 |
|
|
| 14,009 |
|
Net interest income |
|
| 17,198 |
|
|
| 17,216 |
|
|
| 18,387 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Provision for credit losses |
|
| (415 | ) |
|
| (1,419 | ) |
|
| (2,840 | ) |
Net interest income after provision for credit losses |
|
| 17,613 |
|
|
| 18,635 |
|
|
| 21,227 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
| 799 |
|
|
| 810 |
|
|
| 746 |
|
Loss on call or sale of investment securities, net |
|
| (383 | ) |
|
| - |
|
|
| - |
|
Gain (loss) on sale or disposition of fixed assets, net |
|
| - |
|
|
| 427 |
|
|
| (58 | ) |
Gain on sale of other real estate owned, net |
|
| 712 |
|
|
| - |
|
|
| 5 |
|
Servicing fees and fee income on serviced loans |
|
| - |
|
|
| - |
|
|
| 4 |
|
Interchange fees |
|
| 410 |
|
|
| 395 |
|
|
| 443 |
|
Income from bank owned life insurance |
|
| 463 |
|
|
| 388 |
|
|
| 353 |
|
Change in the fair value of equity securities |
|
| - |
|
|
| 80 |
|
|
| (107 | ) |
Other operating income |
|
| 749 |
|
|
| 648 |
|
|
| 684 |
|
Total noninterest income |
|
| 2,750 |
|
|
| 2,748 |
|
|
| 2,070 |
|
Income before noninterest expense |
|
| 20,363 |
|
|
| 21,383 |
|
|
| 23,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 787 |
|
|
| 812 |
|
|
| 919 |
|
Salaries and employee benefits |
|
| 9,593 |
|
|
| 9,248 |
|
|
| 9,343 |
|
Occupancy |
|
| 696 |
|
|
| 581 |
|
|
| 646 |
|
Data processing |
|
| 893 |
|
|
| 937 |
|
|
| 827 |
|
Marketing |
|
| 72 |
|
|
| 41 |
|
|
| 82 |
|
Professional fees |
|
| 471 |
|
|
| 419 |
|
|
| 323 |
|
Gain on early extinguishment of subordinated debt |
|
| (287 | ) |
|
| (215 | ) |
|
| - |
|
Other operating expenses |
|
| 3,252 |
|
|
| 3,473 |
|
|
| 3,101 |
|
Total noninterest expense |
|
| 15,477 |
|
|
| 15,296 |
|
|
| 15,241 |
|
Income before income tax expense |
|
| 4,886 |
|
|
| 6,087 |
|
|
| 8,056 |
|
Income tax expense |
|
| 829 |
|
|
| 1,380 |
|
|
| 1,509 |
|
Net income |
| $ | 4,057 |
|
| $ | 4,707 |
|
| $ | 6,547 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
| $ | 0.41 |
|
| $ | 0.48 |
|
| $ | 0.67 |
|
Diluted earnings per share |
|
| 0.41 |
|
|
| 0.48 |
|
|
| 0.67 |
|
Cash dividends declared per common share |
|
| 0.10 |
|
|
| 0.10 |
|
|
| 0.10 |
|
INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
|
| For the three months ended |
| |||||||||||||||||||||||||||||||||
|
| June 30, 2024 |
|
| March 31, 2024 |
|
| June 30, 2023 |
| |||||||||||||||||||||||||||
|
|
|
|
| Interest |
|
|
|
|
|
|
|
| Interest |
|
|
|
|
|
|
|
| Interest |
|
|
|
| |||||||||
|
| Average |
|
| Income/ |
|
|
|
|
| Average |
|
| Income/ |
|
|
|
|
| Average |
|
| Income/ |
|
|
|
| |||||||||
|
| Balance |
|
| Expense |
|
| Yield/ Rate |
|
| Balance |
|
| Expense |
|
| Yield/ Rate |
|
| Balance |
|
| Expense |
|
| Yield/ Rate |
| |||||||||
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Loans |
| $ | 2,168,762 |
|
| $ | 32,161 |
|
|
| 5.96 | % |
| $ | 2,195,496 |
|
| $ | 32,135 |
|
|
| 5.89 | % |
| $ | 2,100,751 |
|
| $ | 28,513 |
|
|
| 5.44 | % |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
| 403,391 |
|
|
| 2,766 |
|
|
| 2.76 |
|
|
| 410,761 |
|
|
| 2,817 |
|
|
| 2.76 |
|
|
| 460,765 |
|
|
| 3,262 |
|
|
| 2.84 |
|
Tax-exempt |
|
| 23,558 |
|
|
| 214 |
|
|
| 3.66 |
|
|
| 26,963 |
|
|
| 238 |
|
|
| 3.55 |
|
|
| 17,235 |
|
|
| 119 |
|
|
| 2.77 |
|
Interest-bearing balances with banks |
|
| 47,521 |
|
|
| 649 |
|
|
| 5.50 |
|
|
| 36,333 |
|
|
| 532 |
|
|
| 5.89 |
|
|
| 32,421 |
|
|
| 502 |
|
|
| 6.22 |
|
Total interest-earning assets |
|
| 2,643,232 |
|
|
| 35,790 |
|
|
| 5.45 |
|
|
| 2,669,553 |
|
|
| 35,722 |
|
|
| 5.38 |
|
|
| 2,611,172 |
|
|
| 32,396 |
|
|
| 4.98 |
|
Cash and due from banks |
|
| 25,974 |
|
|
|
|
|
|
|
|
|
|
| 26,246 |
|
|
|
|
|
|
|
|
|
|
| 30,326 |
|
|
|
|
|
|
|
|
|
Intangible assets |
|
| 42,082 |
|
|
|
|
|
|
|
|
|
|
| 42,243 |
|
|
|
|
|
|
|
|
|
|
| 42,777 |
|
|
|
|
|
|
|
|
|
Other assets |
|
| 91,439 |
|
|
|
|
|
|
|
|
|
|
| 94,311 |
|
|
|
|
|
|
|
|
|
|
| 94,467 |
|
|
|
|
|
|
|
|
|
Allowance for credit losses |
|
| (28,935 | ) |
|
|
|
|
|
|
|
|
|
| (30,161 | ) |
|
|
|
|
|
|
|
|
|
| (30,571 | ) |
|
|
|
|
|
|
|
|
Total assets |
| $ | 2,773,792 |
|
|
|
|
|
|
|
|
|
| $ | 2,802,192 |
|
|
|
|
|
|
|
|
|
| $ | 2,748,171 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
| $ | 658,594 |
|
| $ | 3,083 |
|
|
| 1.88 | % |
| $ | 680,548 |
|
| $ | 3,166 |
|
|
| 1.87 | % |
| $ | 683,016 |
|
| $ | 2,013 |
|
|
| 1.18 | % |
Savings deposits |
|
| 128,957 |
|
|
| 342 |
|
|
| 1.07 |
|
|
| 134,853 |
|
|
| 339 |
|
|
| 1.01 |
|
|
| 127,028 |
|
|
| 22 |
|
|
| 0.07 |
|
Brokered time deposits |
|
| 241,777 |
|
|
| 3,126 |
|
|
| 5.20 |
|
|
| 255,694 |
|
|
| 3,314 |
|
|
| 5.21 |
|
|
| 151,370 |
|
|
| 1,870 |
|
|
| 4.95 |
|
Time deposits |
|
| 741,657 |
|
|
| 8,314 |
|
|
| 4.51 |
|
|
| 734,474 |
|
|
| 8,026 |
|
|
| 4.39 |
|
|
| 694,092 |
|
|
| 5,629 |
|
|
| 3.25 |
|
Total interest-bearing deposits |
|
| 1,770,985 |
|
|
| 14,865 |
|
|
| 3.38 |
|
|
| 1,805,569 |
|
|
| 14,845 |
|
|
| 3.31 |
|
|
| 1,655,506 |
|
|
| 9,534 |
|
|
| 2.31 |
|
Short-term borrowings |
|
| 248,189 |
|
|
| 2,886 |
|
|
| 4.68 |
|
|
| 236,826 |
|
|
| 2,745 |
|
|
| 4.66 |
|
|
| 281,651 |
|
|
| 3,572 |
|
|
| 5.09 |
|
Long-term debt |
|
| 71,122 |
|
|
| 841 |
|
|
| 4.76 |
|
|
| 76,351 |
|
|
| 916 |
|
|
| 4.83 |
|
|
| 76,325 |
|
|
| 903 |
|
|
| 4.74 |
|
Total interest-bearing liabilities |
|
| 2,090,296 |
|
|
| 18,592 |
|
|
| 3.58 |
|
|
| 2,118,746 |
|
|
| 18,506 |
|
|
| 3.51 |
|
|
| 2,013,482 |
|
|
| 14,009 |
|
|
| 2.79 |
|
Noninterest-bearing deposits |
|
| 425,964 |
|
|
|
|
|
|
|
|
|
|
| 428,135 |
|
|
|
|
|
|
|
|
|
|
| 490,123 |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
| 29,995 |
|
|
|
|
|
|
|
|
|
|
| 26,621 |
|
|
|
|
|
|
|
|
|
|
| 23,038 |
|
|
|
|
|
|
|
|
|
Stockholders' equity |
|
| 227,537 |
|
|
|
|
|
|
|
|
|
|
| 228,690 |
|
|
|
|
|
|
|
|
|
|
| 221,528 |
|
|
|
|
|
|
|
|
|
Total liability and stockholders' equity |
| $ | 2,773,792 |
|
|
|
|
|
|
|
|
|
| $ | 2,802,192 |
|
|
|
|
|
|
|
|
|
| $ | 2,748,171 |
|
|
|
|
|
|
|
|
|
Net interest income/net interest margin |
|
|
|
|
| $ | 17,198 |
|
|
| 2.62 | % |
|
|
|
|
| $ | 17,216 |
|
|
| 2.59 | % |
|
|
|
|
| $ | 18,387 |
|
|
| 2.82 | % |
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 |
| |||||||||||||||||||||||||||||||||
|
| June 30, 2024 |
|
| March 31, 2024 |
|
| June 30, 2023 |
| |||||||||||||||||||||||||||
|
|
|
|
| Interest |
|
|
|
|
|
|
|
| Interest |
|
|
|
|
|
|
|
| Interest |
|
|
|
| |||||||||
|
| Average |
|
| Income/ |
|
|
|
|
| Average |
|
| Income/ |
|
|
|
|
| Average |
|
| Income/ |
|
|
|
| |||||||||
|
| Balance |
|
| Expense |
|
| Yield/ Rate |
|
| Balance |
|
| Expense |
|
| Yield/ Rate |
|
| Balance |
|
| Expense |
|
| Yield/ Rate |
| |||||||||
Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Loans |
| $ | 2,168,762 |
|
| $ | 32,161 |
|
|
| 5.96 | % |
| $ | 2,195,496 |
|
| $ | 32,135 |
|
|
| 5.89 | % |
| $ | 2,100,751 |
|
| $ | 28,513 |
|
|
| 5.44 | % |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest recoveries |
|
|
|
|
|
| 44 |
|
|
|
|
|
|
|
|
|
|
| 21 |
|
|
|
|
|
|
|
|
|
|
| - |
|
|
|
|
|
Accretion |
|
|
|
|
|
| 18 |
|
|
|
|
|
|
|
|
|
|
| 19 |
|
|
|
|
|
|
|
|
|
|
| 47 |
|
|
|
|
|
Adjusted loans |
|
| 2,168,762 |
|
|
| 32,099 |
|
|
| 5.95 |
|
|
| 2,195,496 |
|
|
| 32,095 |
|
|
| 5.88 |
|
|
| 2,100,751 |
|
|
| 28,466 |
|
|
| 5.44 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
| 403,391 |
|
|
| 2,766 |
|
|
| 2.76 |
|
|
| 410,761 |
|
|
| 2,817 |
|
|
| 2.76 |
|
|
| 460,765 |
|
|
| 3,262 |
|
|
| 2.84 |
|
Tax-exempt |
|
| 23,558 |
|
|
| 214 |
|
|
| 3.66 |
|
|
| 26,963 |
|
|
| 238 |
|
|
| 3.55 |
|
|
| 17,235 |
|
|
| 119 |
|
|
| 2.77 |
|
Interest-bearing balances with banks |
|
| 47,521 |
|
|
| 649 |
|
|
| 5.50 |
|
|
| 36,333 |
|
|
| 532 |
|
|
| 5.89 |
|
|
| 32,421 |
|
|
| 502 |
|
|
| 6.22 |
|
Adjusted interest-earning assets |
|
| 2,643,232 |
|
|
| 35,728 |
|
|
| 5.44 |
|
|
| 2,669,553 |
|
|
| 35,682 |
|
|
| 5.38 |
|
|
| 2,611,172 |
|
|
| 32,349 |
|
|
| 4.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest-bearing liabilities |
|
| 2,090,296 |
|
|
| 18,592 |
|
|
| 3.58 |
|
|
| 2,118,746 |
|
|
| 18,506 |
|
|
| 3.51 |
|
|
| 2,013,482 |
|
|
| 14,009 |
|
|
| 2.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net interest income/adjusted net interest margin |
|
|
|
|
| $ | 17,136 |
|
|
| 2.61 | % |
|
|
|
|
| $ | 17,176 |
|
|
| 2.59 | % |
|
|
|
|
| $ | 18,340 |
|
|
| 2.82 | % |
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
| June 30, 2024 |
|
| March 31, 2024 |
|
| June 30, 2023 |
| ||||
Tangible common equity |
|
|
|
|
|
|
|
|
| |||
Total stockholders' equity |
| $ | 230,196 |
|
| $ | 227,005 |
|
| $ | 218,357 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
| 40,088 |
|
|
| 40,088 |
|
|
| 40,088 |
|
Core deposit intangible |
|
| 1,808 |
|
|
| 1,966 |
|
|
| 2,489 |
|
Trademark intangible |
|
| 100 |
|
|
| 100 |
|
|
| 100 |
|
Tangible common equity |
| $ | 188,200 |
|
| $ | 184,851 |
|
| $ | 175,680 |
|
Tangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
| $ | 2,787,578 |
|
| $ | 2,787,706 |
|
| $ | 2,753,674 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
| 40,088 |
|
|
| 40,088 |
|
|
| 40,088 |
|
Core deposit intangible |
|
| 1,808 |
|
|
| 1,966 |
|
|
| 2,489 |
|
Trademark intangible |
|
| 100 |
|
|
| 100 |
|
|
| 100 |
|
Tangible assets |
| $ | 2,745,582 |
|
| $ | 2,745,552 |
|
| $ | 2,710,997 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Common shares outstanding |
|
| 9,828,825 |
|
|
| 9,781,946 |
|
|
| 9,831,145 |
|
Tangible equity to tangible assets |
|
| 6.85 | % |
|
| 6.73 | % |
|
| 6.48 | % |
Book value per common share |
| $ | 23.42 |
|
| $ | 23.21 |
|
| $ | 22.21 |
|
Tangible book value per common share |
|
| 19.15 |
|
|
| 18.90 |
|
|
| 17.87 |
|
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
| Three months ended |
| |||||||||||
| 6/30/2024 |
|
| 3/31/2024 |
|
| 6/30/2023 |
| |||||
Net interest income | (a) |
| $ | 17,198 |
|
| $ | 17,216 |
|
| $ | 18,387 |
|
Provision for credit losses |
|
| (415 | ) |
|
| (1,419 | ) |
|
| (2,840 | ) | |
Net interest income after provision for credit losses |
|
| 17,613 |
|
|
| 18,635 |
|
|
| 21,227 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Noninterest income | (b) |
|
| 2,750 |
|
|
| 2,748 |
|
|
| 2,070 |
|
Loss on call or sale of investment securities, net |
|
| 383 |
|
|
| - |
|
|
| - |
| |
(Gain) loss on sale or disposition of fixed assets, net |
|
| - |
|
|
| (427 | ) |
|
| 58 |
| |
Gain on sale of other real estate owned, net |
|
| (712 | ) |
|
| - |
|
|
| (5 | ) | |
Change in the fair value of equity securities |
|
| - |
|
|
| (80 | ) |
|
| 107 |
| |
Change in the net asset value of other investments (1) |
|
| 27 |
|
|
| (70 | ) |
|
| (78 | ) | |
Core noninterest income | (d) |
|
| 2,448 |
|
|
| 2,171 |
|
|
| 2,152 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Core earnings before noninterest expense |
|
| 20,061 |
|
|
| 20,806 |
|
|
| 23,379 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total noninterest expense | (c) |
|
| 15,477 |
|
|
| 15,296 |
|
|
| 15,241 |
|
Write down of other real estate owned (2) |
|
| - |
|
|
| (233 | ) |
|
| - |
| |
Gain on early extinguishment of subordinated debt |
|
| 287 |
|
|
| 215 |
|
|
| - |
| |
Core noninterest expense | (f) |
|
| 15,764 |
|
|
| 15,278 |
|
|
| 15,241 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Core earnings before income tax expense |
|
| 4,297 |
|
|
| 5,528 |
|
|
| 8,138 |
| |
Core income tax expense (3) |
|
| 730 |
|
|
| 1,255 |
|
|
| 1,522 |
| |
Core earnings |
| $ | 3,567 |
|
| $ | 4,273 |
|
| $ | 6,616 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Core basic earnings per common share |
|
| 0.36 |
|
|
| 0.44 |
|
|
| 0.67 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Diluted earnings per common share (GAAP) |
| $ | 0.41 |
|
| $ | 0.48 |
|
| $ | 0.67 |
| |
Loss on call or sale of investment securities, net |
|
| 0.03 |
|
|
| - |
|
|
| - |
| |
(Gain) loss on sale or disposition of fixed assets, net |
|
| - |
|
|
| (0.03 | ) |
|
| - |
| |
Gain on sale of other real estate owned, net |
|
| (0.06 | ) |
|
| - |
|
|
| - |
| |
Change in the fair value of equity securities |
|
| - |
|
|
| (0.01 | ) |
|
| 0.01 |
| |
Change in the net asset value of other investments (1) |
|
| - |
|
|
| (0.01 | ) |
|
| (0.01 | ) | |
Write down of other real estate owned (2) |
|
| - |
|
|
| 0.02 |
|
|
| - |
| |
Gain on early extinguishment of subordinated debt |
|
| (0.02 | ) |
|
| (0.02 | ) |
|
| - |
| |
Core diluted earnings per common share |
| $ | 0.36 |
|
| $ | 0.43 |
|
| $ | 0.67 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Efficiency ratio | (c) / (a+b) |
|
| 77.59 | % |
|
| 76.62 | % |
|
| 74.50 | % |
Core efficiency ratio | (f) / (a+d) |
|
| 80.24 |
|
|
| 78.81 |
|
|
| 74.21 |
|
Core return on average assets (4) |
|
| 0.52 |
|
|
| 0.61 |
|
|
| 0.97 |
| |
Core return on average equity (4) |
|
| 6.31 |
|
|
| 7.52 |
|
|
| 11.98 |
| |
Total average assets |
| $ | 2,773,792 |
|
| $ | 2,802,192 |
|
| $ | 2,748,171 |
| |
Total average stockholders' equity |
|
| 227,537 |
|
|
| 228,690 |
|
|
| 221,528 |
| |
(1) 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.
(2) Adjustment to noninterest expense for provision for estimated losses on other real estate owned when fair value is determined to be less than carrying values, which is included in other operating expense in the accompanying consolidated statements of income.
(3) Core income tax expense is calculated using the effective tax rates of
(4) Core earnings used in calculation. No adjustments were made to average assets or average equity.
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FAQ
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