Investar Holding Corporation Announces 2024 Third Quarter Results
Investar Holding (NASDAQ:ISTR) reported a net income of $5.4 million for Q3 2024, translating to $0.54 per diluted share, up from $4.1 million ($0.41 per share) in Q2 2024 and $2.8 million ($0.28 per share) in Q3 2023. Core earnings per share were $0.45, compared to $0.36 in Q2 2024 and $0.33 in Q3 2023.
Key metrics improved: net interest margin rose to 2.67%, book value per share increased to $24.98, and tangible book value per share reached $20.73. Nonperforming loans decreased to $4.1 million (0.19% of total loans). The company also repurchased 2,000 shares at an average price of $18.50 and raised its quarterly dividend by 5%.
Total loans decreased by $10.9 million to $2.16 billion, with a significant portion being variable-rate loans. Deposits grew by $77.2 million to $2.29 billion. Net interest income was $17.9 million, up 3.8% from Q2 2024. Noninterest income increased by $0.8 million to $3.5 million, driven by a $1.1 million legal settlement.
Investar Holding (NASDAQ:ISTR) ha riportato un utile netto di 5,4 milioni di dollari per il terzo trimestre del 2024, equivalente a 0,54 dollari per azione diluita, in aumento rispetto ai 4,1 milioni di dollari (0,41 dollari per azione) del secondo trimestre del 2024 e ai 2,8 milioni di dollari (0,28 dollari per azione) del terzo trimestre del 2023. Gli utili core per azione sono stati di 0,45 dollari, rispetto ai 0,36 dollari del secondo trimestre del 2024 e ai 0,33 dollari del terzo trimestre del 2023.
I principali indicatori sono migliorati: il margine di interesse netto è aumentato al 2,67%, il valore contabile per azione è cresciuto a 24,98 dollari e il valore contabile tangibile per azione ha raggiunto 20,73 dollari. I prestiti non performanti sono diminuiti a 4,1 milioni di dollari (0,19% del totale dei prestiti). L'azienda ha anche riacquistato 2.000 azioni a un prezzo medio di 18,50 dollari e ha aumentato il suo dividendo trimestrale del 5%.
I prestiti totali sono diminuiti di 10,9 milioni di dollari, attestandosi a 2,16 miliardi di dollari, con una parte significativa costituita da prestiti a tasso variabile. I depositi sono cresciuti di 77,2 milioni di dollari, raggiungendo 2,29 miliardi di dollari. Il reddito netto da interessi è stato di 17,9 milioni di dollari, in aumento del 3,8% rispetto al secondo trimestre del 2024. Il reddito non da interessi è aumentato di 0,8 milioni di dollari, raggiungendo 3,5 milioni di dollari, grazie a un risarcimento legale di 1,1 milioni di dollari.
Investar Holding (NASDAQ:ISTR) reportó un ingreso neto de 5.4 millones de dólares para el tercer trimestre de 2024, lo que se traduce en 0.54 dólares por acción diluida, un aumento respecto a los 4.1 millones de dólares (0.41 dólares por acción) en el segundo trimestre de 2024 y los 2.8 millones de dólares (0.28 dólares por acción) en el tercer trimestre de 2023. Las ganancias fundamentales por acción fueron de 0.45 dólares, en comparación con 0.36 dólares en el segundo trimestre de 2024 y 0.33 dólares en el tercer trimestre de 2023.
Los indicadores clave mejoraron: el margen de interés neto aumentó a 2.67%, el valor contable por acción incrementó a 24.98 dólares y el valor contable tangible por acción alcanzó 20.73 dólares. Los préstamos no productivos disminuyeron a 4.1 millones de dólares (0.19% del total de préstamos). La empresa también recompró 2,000 acciones a un precio promedio de 18.50 dólares y aumentó su dividendo trimestral en un 5%.
Los préstamos totales cayeron en 10.9 millones de dólares, alcanzando 2.16 mil millones de dólares, siendo una parte significativa préstamos a tasa variable. Los depósitos crecieron en 77.2 millones de dólares, alcanzando 2.29 mil millones de dólares. El ingreso neto por intereses fue de 17.9 millones de dólares, un incremento del 3.8% respecto al segundo trimestre de 2024. El ingreso no por intereses aumentó en 0.8 millones de dólares, alcanzando 3.5 millones de dólares, impulsado por un acuerdo legal de 1.1 millones de dólares.
Investar Holding (NASDAQ:ISTR)은 2024년 3분기에 540만 달러의 순이익을 보고하며, 이는 희석 주당 0.54달러에 해당합니다. 이는 2024년 2분기의 410만 달러(주당 0.41달러) 및 2023년 3분기의 280만 달러(주당 0.28달러)에서 증가한 수치입니다. 주당 핵심 수익은 0.45달러로, 2024년 2분기의 0.36달러 및 2023년 3분기의 0.33달러와 비교됩니다.
주요 지표가 개선되었습니다: 순이자 마진은 2.67%로 상승하였고, 주당 장부 가치는 24.98달러로 증가하였으며, 주당 유형 자산 가치는 20.73달러에 도달했습니다. 부실 대출은 410만 달러(총 대출의 0.19%)로 감소했습니다. 회사는 또한 평균 가격 18.50달러로 2,000주를 매입하였고, 분기 배당금을 5% 인상했습니다.
총 대출은 1억 0900만 달러 감소하여 21억 6000만 달러가 되었으며, 이 중 상당 부분이 변동 금리 대출이었습니다. 예금은 7720만 달러 증가하여 22억 9000만 달러에 달했습니다. 순이자 수익은 1790만 달러로 2024년 2분기 대비 3.8% 증가했습니다. 비이자 수익은 80만 달러 증가하여 350만 달러에 이르렀으며, 이는 110만 달러의 법적 분쟁 해결로 인해 발생했습니다.
Investar Holding (NASDAQ:ISTR) a signalé un revenu net de 5,4 millions de dollars pour le troisième trimestre 2024, ce qui représente 0,54 dollar par action diluée, en hausse par rapport à 4,1 millions de dollars (0,41 dollar par action) au deuxième trimestre 2024 et 2,8 millions de dollars (0,28 dollar par action) au troisième trimestre 2023. Les bénéfices récurrents par action étaient de 0,45 dollar, comparativement à 0,36 dollar au deuxième trimestre 2024 et 0,33 dollar au troisième trimestre 2023.
Les indicateurs clés se sont améliorés : la marge d'intérêt nette a augmenté à 2,67 %, la valeur comptable par action a augmenté à 24,98 dollars, et la valeur comptable tangible par action a atteint 20,73 dollars. Les prêts non performants ont diminué à 4,1 millions de dollars (0,19 % du total des prêts). L'entreprise a également racheté 2 000 actions à un prix moyen de 18,50 dollars et a augmenté son dividende trimestriel de 5 %.
Les prêts totaux ont diminué de 10,9 millions de dollars pour atteindre 2,16 milliards de dollars, une part significative étant des prêts à taux variable. Les dépôts ont augmenté de 77,2 millions de dollars pour atteindre 2,29 milliards de dollars. Les produits nets d'intérêts ont atteint 17,9 millions de dollars, en hausse de 3,8 % par rapport au deuxième trimestre 2024. Les revenus non liés aux intérêts ont augmenté de 0,8 million de dollars pour atteindre 3,5 millions de dollars, soutenus par un règlement légal de 1,1 million de dollars.
Investar Holding (NASDAQ:ISTR) meldete für das 3. Quartal 2024 einen Nettogewinn von 5,4 Millionen US-Dollar, was 0,54 US-Dollar pro verwässerter Aktie entspricht. Dies stellt einen Anstieg im Vergleich zu 4,1 Millionen US-Dollar (0,41 US-Dollar pro Aktie) im 2. Quartal 2024 und 2,8 Millionen US-Dollar (0,28 US-Dollar pro Aktie) im 3. Quartal 2023 dar. Die Kerngewinne pro Aktie betrugen 0,45 US-Dollar, im Vergleich zu 0,36 US-Dollar im 2. Quartal 2024 und 0,33 US-Dollar im 3. Quartal 2023.
Die wichtigsten Kennzahlen verbesserten sich: Die Nettozinsmarge stieg auf 2,67 %, der Buchwert pro Aktie erhöhte sich auf 24,98 US-Dollar, und der tangible Buchwert pro Aktie erreichte 20,73 US-Dollar. Die notleidenden Kredite verringerten sich auf 4,1 Millionen US-Dollar (0,19 % des Gesamtvolumens der Kredite). Das Unternehmen kaufte außerdem 2.000 Aktien zu einem durchschnittlichen Preis von 18,50 US-Dollar zurück und erhöhte seine vierteljährliche Dividende um 5 %.
Die gesamten Kredite gingen um 10,9 Millionen US-Dollar auf 2,16 Milliarden US-Dollar zurück, wobei ein erheblicher Teil variable Kredite waren. Die Einlagen stiegen um 77,2 Millionen US-Dollar auf 2,29 Milliarden US-Dollar. Das Nettozinsgehalt betrug 17,9 Millionen US-Dollar, was einem Anstieg von 3,8 % im Vergleich zum 2. Quartal 2024 entspricht. Die nichtzinsbezogenen Einkünfte stiegen um 0,8 Millionen US-Dollar auf 3,5 Millionen US-Dollar, unterstützt durch einen rechtlichen Vergleich in Höhe von 1,1 Millionen US-Dollar.
- Net income increased to $5.4 million from $4.1 million in the previous quarter and $2.8 million in the same quarter last year.
- Core earnings per share rose to $0.45 from $0.36 in Q2 2024.
- Net interest margin improved to 2.67%.
- Book value per share increased to $24.98, and tangible book value per share reached $20.73.
- Nonperforming loans decreased to $4.1 million, or 0.19% of total loans.
- Total deposits increased by $77.2 million to $2.29 billion.
- Net interest income rose by 3.8% to $17.9 million.
- Noninterest income grew by $0.8 million to $3.5 million, driven by a $1.1 million legal settlement.
- Total loans decreased by $10.9 million to $2.16 billion.
Insights
Investar Holding 's Q3 2024 results show solid performance and strategic execution. Key highlights include:
- Net income increased to
$5.4 million ($0.54 per diluted share), up from$4.1 million in Q2 2024 and$2.8 million in Q3 2023. - Return on average assets improved to
0.77% , up from0.59% in Q2 2024. - Net interest margin increased to
2.67% , compared to2.62% in Q2 2024. - Credit quality strengthened with nonperforming loans decreasing to
0.19% of total loans. - Book value per share reached a record high of
$24.98 .
The company's focus on higher-yielding loans and lower-cost funding sources is paying off, with
Overall, Investar's Q3 results demonstrate improved profitability and asset quality, positioning the company for continued growth in a changing interest rate environment.
Investar's Q3 performance highlights several positive trends in its banking operations:
- The increase in net interest margin to
2.67% is noteworthy, especially given the challenging interest rate environment many banks are facing. - The growth in deposits by
3.5% to$2.29 billion shows the bank's ability to attract and retain customer funds. - The reduction in nonperforming loans to
0.19% of total loans indicates strong credit quality management. - The bank's use of brokered deposits (
11.9% of total deposits) provides a stable funding source, though it's important to monitor the associated costs.
Investar's strategy of focusing on variable-rate loans (
However, the slight decrease in total loans and the increase in deposit costs warrant attention. The bank will need to carefully balance loan growth with credit quality and manage funding costs in the coming quarters to maintain its improved profitability metrics.
BATON ROUGE, LA / ACCESSWIRE / October 21, 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 September 30, 2024. Investar reported net income of
On a non-GAAP basis, core earnings per diluted common share for the third quarter of 2024 were
Investar's President and Chief Executive Officer John D'Angelo commented:
"Investar had a solid third quarter, and I am pleased with our results as we continued to execute our strategy of consistent, quality earnings through the optimization of our balance sheet. Our net interest margin improved to
Our efforts to focus on underwriting high quality credits that are less susceptible to the effects of a potential economic downturn are producing results. Credit quality continued to strengthen as nonperforming loans were only
Finally, I could not be more confident about the future of Investar. We have worked hard to optimize our asset mix and funding sources, and, as a result, we believe our liability sensitive balance sheet positions us well to benefit from potential additional rate cuts. Additionally, we are continually evaluating opportunities to optimize our physical branch and ATM footprint to deliver products and services to our customers more efficiently to improve our financial performance over time.
As always, we remain focused on shareholder value and returning capital to shareholders. We repurchased 2,000 shares of our common stock during the third quarter at an average price of
Third Quarter Highlights
Return on average assets increased to
0.77% for the quarter ended September 30, 2024 compared to0.59% for the quarter ended June 30, 2024. Core return on average assets improved to0.63% for the quarter ended September 30, 2024 compared to0.52% for the quarter ended June 30, 2024.Net interest margin improved to
2.67% for the quarter ended September 30, 2024 compared to2.62% for the quarter ended June 30, 2024.Credit quality continued to strengthen with nonperforming loans improving to
0.19% of total loans at September 30, 2024 compared to0.23% at June 30, 2024.Consistent with our strategy of optimizing the balance sheet, total loans decreased
$10.9 million , or0.5% , to$2.16 billion at September 30, 2024, compared to$2.17 billion at June 30, 2024. As a result of our strategy and net recoveries of$0.4 million , we recognized the benefit of a$0.9 million negative provision for credit losses.Variable-rate loans represented
30% of total loans at both September 30, 2024 and June 30, 2024. During the third quarter, we originated and renewed loans,77% of which were variable-rate loans, at an8.5% blended interest rate.The yield on the loan portfolio increased to
6.04% for the quarter ended September 30, 2024 compared to5.96% for the quarter ended June 30, 2024.Book value per common share increased to
$24.98 at September 30, 2024, or6.7% , compared to$23.42 at June 30, 2024. Tangible book value per common share increased to$20.73 at September 30, 2024, or8.3% , compared to$19.15 at June 30, 2024.Total deposits increased
$77.2 million , or3.5% , to$2.29 billion at September 30, 2024, compared to$2.21 billion at June 30, 2024.During the quarter ended September 30, 2024, Investar recorded
$1.1 million in noninterest 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.Investar repurchased 2,000 shares of its common stock through its stock repurchase program at an average price of
$18.50 per share during the quarter ended September 30, 2024, leaving 495,645 shares authorized for repurchase under the program at September 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 |
| |||||||||||||||||||
| 9/30/2024 |
|
| 6/30/2024 |
|
| 9/30/2023 |
|
| $ |
|
| % |
|
| $ |
|
| % |
|
| 9/30/2024 |
|
| 9/30/2023 |
| ||||||||||
Mortgage loans on real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Construction and development |
| $ | 166,954 |
|
| $ | 177,840 |
|
| $ | 211,390 |
|
| $ | (10,886 | ) |
|
| (6.1) | % |
| $ | (44,436 | ) |
|
| (21.0) | % |
|
| 7.7 | % |
|
| 10.0 | % |
1-4 Family |
|
| 403,097 |
|
|
| 414,756 |
|
|
| 415,162 |
|
|
| (11,659 | ) |
|
| (2.8 | ) |
|
| (12,065 | ) |
|
| (2.9 | ) |
|
| 18.7 |
|
|
| 19.7 |
|
Multifamily |
|
| 85,283 |
|
|
| 104,269 |
|
|
| 102,974 |
|
|
| (18,986 | ) |
|
| (18.2 | ) |
|
| (17,691 | ) |
|
| (17.2 | ) |
|
| 4.0 |
|
|
| 4.9 |
|
Farmland |
|
| 7,173 |
|
|
| 7,542 |
|
|
| 8,259 |
|
|
| (369 | ) |
|
| (4.9 | ) |
|
| (1,086 | ) |
|
| (13.1 | ) |
|
| 0.3 |
|
|
| 0.4 |
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
|
| 467,467 |
|
|
| 453,456 |
|
|
| 440,208 |
|
|
| 14,011 |
|
|
| 3.1 |
|
|
| 27,259 |
|
|
| 6.2 |
|
|
| 21.7 |
|
|
| 20.9 |
|
Nonowner-occupied |
|
| 499,274 |
|
|
| 489,984 |
|
|
| 501,649 |
|
|
| 9,290 |
|
|
| 1.9 |
|
|
| (2,375 | ) |
|
| (0.5 | ) |
|
| 23.2 |
|
|
| 23.9 |
|
Commercial and industrial |
|
| 515,273 |
|
|
| 507,822 |
|
|
| 411,290 |
|
|
| 7,451 |
|
|
| 1.5 |
|
|
| 103,983 |
|
|
| 25.3 |
|
|
| 23.9 |
|
|
| 19.6 |
|
Consumer |
|
| 11,325 |
|
|
| 11,090 |
|
|
| 12,090 |
|
|
| 235 |
|
|
| 2.1 |
|
|
| (765 | ) |
|
| (6.3 | ) |
|
| 0.5 |
|
|
| 0.6 |
|
Total loans |
| $ | 2,155,846 |
|
| $ | 2,166,759 |
|
| $ | 2,103,022 |
|
| $ | (10,913 | ) |
|
| (0.5) | % |
| $ | 52,824 |
|
|
| 2.5 | % |
|
| 100 | % |
|
| 100 | % |
At September 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 September 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 |
| ||||||||||||||||
9/30/2024 |
| 6/30/2024 |
| 9/30/2023 |
| $ |
| % |
|
| $ |
| % |
| 9/30/2024 |
| 9/30/2023 |
| ||||||||||
Noninterest-bearing demand deposits | $ | 437,734 |
| $ | 436,571 |
| $ | 459,519 |
| $ | 1,163 |
|
| 0.3 | % |
| $ | (21,785 | ) |
| (4.7) | % |
| 19.1 | % |
| 20.8 | % |
Interest-bearing demand deposits |
| 500,345 |
|
| 467,184 |
|
| 482,706 |
|
| 33,161 |
|
| 7.1 |
|
|
| 17,639 |
|
| 3.7 |
|
| 21.9 |
|
| 21.8 |
|
Money market deposits |
| 196,710 |
|
| 177,191 |
|
| 186,478 |
|
| 19,519 |
|
| 11.0 |
|
|
| 10,232 |
|
| 5.5 |
|
| 8.6 |
|
| 8.4 |
|
Savings deposits |
| 128,241 |
|
| 128,583 |
|
| 131,743 |
|
| (342 | ) |
| (0.3 | ) |
|
| (3,502 | ) |
| (2.7 | ) |
| 5.6 |
|
| 6.0 |
|
Brokered time deposits |
| 271,684 |
|
| 249,354 |
|
| 197,747 |
|
| 22,330 |
|
| 9.0 |
|
|
| 73,937 |
|
| 37.4 |
|
| 11.9 |
|
| 9.0 |
|
Time deposits |
| 752,694 |
|
| 751,319 |
|
| 751,240 |
|
| 1,375 |
|
| 0.2 |
|
|
| 1,454 |
|
| 0.2 |
|
| 32.9 |
|
| 34.0 |
|
Total deposits | $ | 2,287,408 |
| $ | 2,210,202 |
| $ | 2,209,433 |
| $ | 77,206 |
|
| 3.5 | % |
| $ | 77,975 |
|
| 3.5 | % |
| 100 | % |
| 100 | % |
The increase in noninterest-bearing demand deposits, interest-bearing demand deposits, money market deposits and time deposits at September 30, 2024 compared to June 30, 2024 is primarily the result of organic growth. Brokered time deposits increased to
The increase in interest-bearing demand deposits, money market deposits, and time deposits at September 30, 2024 compared to September 30, 2023 is primarily the result of organic growth resulting from a deposit campaign. The decrease in noninterest-bearing demand deposits and savings deposits at September 30, 2024 compared to September 30, 2023 is primarily due to customers drawing down on their existing deposit accounts and shifts into interest-bearing deposit products with higher rates.Brokered time deposits increased to
Stockholders' Equity
Stockholders' equity was
Net Interest Income
Net interest income for the third 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 decreased nine basis points to
The overall cost of funds for the quarter ended September 30, 2024 increased three basis points to
Noninterest Income
Noninterest income for the third quarter of 2024 totaled
The increase in noninterest income compared to the quarter ended June 30, 2024 is driven by
The increase in noninterest income compared to the quarter ended September 30, 2023 is primarily attributable to
We project that our noninterest income in the fourth quarter of 2024 will include approximately
Noninterest Expense
Noninterest expense for the third quarter of 2024 totaled
The increase in noninterest expense for the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024 was primarily driven by a
The increase in noninterest expense for the quarter ended September 30, 2024 compared to the quarter ended September 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 September 30, 2024, the Bank had 331 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 |
| |||||||||||||
9/30/2024 |
| 6/30/2024 |
| 9/30/2023 |
| Linked Quarter |
| Year/Year |
| ||||||
EARNINGS DATA |
|
|
|
|
|
|
|
|
|
| |||||
Total interest income | $ | 36,848 |
| $ | 35,790 |
| $ | 33,160 |
|
| 3.0 | % |
| 11.1 | % |
Total interest expense |
| 18,992 |
|
| 18,592 |
|
| 15,691 |
|
| 2.2 |
|
| 21.0 |
|
Net interest income |
| 17,856 |
|
| 17,198 |
|
| 17,469 |
|
| 3.8 |
|
| 2.2 |
|
Provision for credit losses |
| (945 | ) |
| (415 | ) |
| (34 | ) |
| (127.7 | ) |
| (2,679.4 | ) |
Total noninterest income |
| 3,544 |
|
| 2,750 |
|
| 1,637 |
|
| 28.9 |
|
| 116.5 |
|
Total noninterest expense |
| 16,180 |
|
| 15,477 |
|
| 15,774 |
|
| 4.5 |
|
| 2.6 |
|
Income before income tax expense |
| 6,165 |
|
| 4,886 |
|
| 3,366 |
|
| 26.2 |
|
| 83.2 |
|
Income tax expense |
| 784 |
|
| 829 |
|
| 585 |
|
| (5.4 | ) |
| 34.0 |
|
Net income | $ | 5,381 |
| $ | 4,057 |
| $ | 2,781 |
|
| 32.6 |
|
| 93.5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
AVERAGE BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets | $ | 2,796,969 |
| $ | 2,773,792 |
| $ | 2,736,358 |
|
| 0.8 | % |
| 2.2 | % |
Total interest-earning assets |
| 2,660,011 |
|
| 2,643,232 |
|
| 2,603,837 |
|
| 0.6 |
|
| 2.2 |
|
Total loans |
| 2,159,412 |
|
| 2,168,762 |
|
| 2,072,617 |
|
| (0.4 | ) |
| 4.2 |
|
Total interest-bearing deposits |
| 1,813,775 |
|
| 1,770,985 |
|
| 1,707,848 |
|
| 2.4 |
|
| 6.2 |
|
Total interest-bearing liabilities |
| 2,093,260 |
|
| 2,090,296 |
|
| 2,026,587 |
|
| 0.1 |
|
| 3.3 |
|
Total deposits |
| 2,246,901 |
|
| 2,196,949 |
|
| 2,170,373 |
|
| 2.3 |
|
| 3.5 |
|
Total stockholders' equity |
| 238,778 |
|
| 227,537 |
|
| 220,393 |
|
| 4.9 |
|
| 8.3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share | $ | 0.55 |
| $ | 0.41 |
| $ | 0.28 |
|
| 34.1 | % |
| 96.4 | % |
Diluted earnings per common share |
| 0.54 |
|
| 0.41 |
|
| 0.28 |
|
| 31.7 |
|
| 92.9 |
|
Core Earnings(1): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core basic earnings per common share(1) |
| 0.45 |
|
| 0.36 |
|
| 0.33 |
|
| 25.0 |
|
| 36.4 |
|
Core diluted earnings per common share(1) |
| 0.45 |
|
| 0.36 |
|
| 0.33 |
|
| 25.0 |
|
| 36.4 |
|
Book value per common share |
| 24.98 |
|
| 23.42 |
|
| 21.34 |
|
| 6.7 |
|
| 17.1 |
|
Tangible book value per common share(1) |
| 20.73 |
|
| 19.15 |
|
| 17.00 |
|
| 8.3 |
|
| 21.9 |
|
Common shares outstanding |
| 9,827,622 |
|
| 9,828,825 |
|
| 9,779,688 |
|
| (0.0 | ) |
| 0.5 |
|
Weighted average common shares outstanding - basic |
| 9,828,776 |
|
| 9,827,903 |
|
| 9,814,727 |
|
| 0.0 |
|
| 0.1 |
|
Weighted average common shares outstanding - diluted |
| 9,902,448 |
|
| 9,902,170 |
|
| 9,817,607 |
|
| 0.0 |
|
| 0.9 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
| 0.77 | % |
| 0.59 | % |
| 0.40 | % |
| 30.5 | % |
| 92.5 | % |
Core return on average assets(1) |
| 0.63 |
|
| 0.52 |
|
| 0.47 |
|
| 21.2 |
|
| 34.0 |
|
Return on average equity |
| 8.97 |
|
| 7.17 |
|
| 5.01 |
|
| 25.1 |
|
| 79.0 |
|
Core return on average equity(1) |
| 7.40 |
|
| 6.31 |
|
| 5.87 |
|
| 17.3 |
|
| 26.1 |
|
Net interest margin |
| 2.67 |
|
| 2.62 |
|
| 2.66 |
|
| 1.9 |
|
| 0.4 |
|
Net interest income to average assets |
| 2.54 |
|
| 2.49 |
|
| 2.53 |
|
| 2.0 |
|
| 0.4 |
|
Noninterest expense to average assets |
| 2.30 |
|
| 2.24 |
|
| 2.29 |
|
| 2.7 |
|
| 0.4 |
|
Efficiency ratio(2) |
| 75.61 |
|
| 77.59 |
|
| 82.56 |
|
| (2.6 | ) |
| (8.4 | ) |
Core efficiency ratio(1) |
| 79.33 |
|
| 80.24 |
|
| 79.98 |
|
| (1.1 | ) |
| (0.8 | ) |
Dividend payout ratio |
| 19.09 |
|
| 24.39 |
|
| 35.71 |
|
| (21.7 | ) |
| (46.5 | ) |
Net (recoveries) charge-offs to average loans |
| (0.02 | ) |
| 0.01 |
|
| (0.01 | ) |
| (300.0 | ) |
| (100.0 | ) |
(1) Non-GAAP financial measure. See reconciliation.
(2) Efficiency ratio represents noninterest expense divided by the sum of net interest income (before provision for credit losses) and noninterest income.
INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Unaudited)
As of and for the three months ended |
| ||||||||||||||
9/30/2024 |
| 6/30/2024 |
| 9/30/2023 |
| Linked Quarter |
| Year/Year |
| ||||||
ASSET QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
| |||||
Nonperforming assets to total assets |
| 0.32 | % |
| 0.30 | % |
| 0.36 | % |
| 6.7 | % |
| (11.1) | % |
Nonperforming loans to total loans |
| 0.19 |
|
| 0.23 |
|
| 0.27 |
|
| (17.4 | ) |
| (29.6 | ) |
Allowance for credit losses to total loans |
| 1.30 |
|
| 1.32 |
|
| 1.42 |
|
| (1.5 | ) |
| (8.5 | ) |
Allowance for credit losses to nonperforming loans |
| 682.03 |
|
| 576.38 |
|
| 534.08 |
|
| 18.3 |
|
| 27.7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investar Holding Corporation: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total equity to total assets |
| 8.76 | % |
| 8.26 | % |
| 7.48 | % |
| 6.1 | % |
| 17.1 | % |
Tangible equity to tangible assets(1) |
| 7.38 |
|
| 6.85 |
|
| 6.05 |
|
| 7.6 |
|
| 21.9 |
|
Tier 1 leverage capital |
| 8.95 |
|
| 8.81 |
|
| 8.53 |
|
| 1.6 |
|
| 4.9 |
|
Common equity tier 1 capital(2) |
| 10.33 |
|
| 10.02 |
|
| 9.40 |
|
| 3.1 |
|
| 9.9 |
|
Tier 1 capital(2) |
| 10.74 |
|
| 10.42 |
|
| 9.79 |
|
| 3.1 |
|
| 9.7 |
|
Total capital(2) |
| 13.48 |
|
| 13.16 |
|
| 12.87 |
|
| 2.4 |
|
| 4.7 |
|
Investar Bank: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage capital |
| 10.06 |
|
| 9.95 |
|
| 10.05 |
|
| 1.1 |
|
| 0.1 |
|
Common equity tier 1 capital(2) |
| 12.07 |
|
| 11.78 |
|
| 11.53 |
|
| 2.5 |
|
| 4.7 |
|
Tier 1 capital(2) |
| 12.07 |
|
| 11.78 |
|
| 11.53 |
|
| 2.5 |
|
| 4.7 |
|
Total capital(2) |
| 13.26 |
|
| 12.98 |
|
| 12.78 |
|
| 2.2 |
|
| 3.8 |
|
(1) Non-GAAP financial measure. See reconciliation.
(2) Estimated for September 30, 2024.
INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)
| September 30, 2024 |
|
| June 30, 2024 |
|
| September 30, 2023 |
| ||||
ASSETS |
|
|
|
|
|
|
|
|
| |||
Cash and due from banks |
| $ | 28,869 |
|
| $ | 27,130 |
|
| $ | 27,084 |
|
Interest-bearing balances due from other banks |
|
| 57,471 |
|
|
| 42,542 |
|
|
| 36,584 |
|
Cash and cash equivalents |
|
| 86,340 |
|
|
| 69,672 |
|
|
| 63,668 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Available for sale securities at fair value (amortized cost of |
|
| 350,646 |
|
|
| 336,616 |
|
|
| 404,485 |
|
Held to maturity securities at amortized cost (estimated fair value of |
|
| 18,302 |
|
|
| 18,457 |
|
|
| 20,044 |
|
Loans |
|
| 2,155,846 |
|
|
| 2,166,759 |
|
|
| 2,103,022 |
|
Less: allowance for credit losses |
|
| (28,103 | ) |
|
| (28,620 | ) |
|
| (29,778 | ) |
Loans, net |
|
| 2,127,743 |
|
|
| 2,138,139 |
|
|
| 2,073,244 |
|
Equity securities at fair value |
|
| 2,434 |
|
|
| 2,260 |
|
|
| 1,156 |
|
Nonmarketable equity securities |
|
| 13,951 |
|
|
| 13,901 |
|
|
| 12,178 |
|
Bank premises and equipment, net of accumulated depreciation of |
|
| 41,795 |
|
|
| 42,383 |
|
|
| 44,764 |
|
Other real estate owned, net |
|
| 4,739 |
|
|
| 3,372 |
|
|
| 4,438 |
|
Accrued interest receivable |
|
| 14,324 |
|
|
| 14,186 |
|
|
| 13,633 |
|
Deferred tax asset |
|
| 14,719 |
|
|
| 17,595 |
|
|
| 20,989 |
|
Goodwill and other intangible assets, net |
|
| 41,844 |
|
|
| 41,996 |
|
|
| 42,496 |
|
Bank owned life insurance |
|
| 61,667 |
|
|
| 61,208 |
|
|
| 58,425 |
|
Other assets |
|
| 24,069 |
|
|
| 27,793 |
|
|
| 30,013 |
|
Total assets |
| $ | 2,802,573 |
|
| $ | 2,787,578 |
|
| $ | 2,789,533 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing |
| $ | 437,734 |
|
| $ | 436,571 |
|
| $ | 459,519 |
|
Interest-bearing |
|
| 1,849,674 |
|
|
| 1,773,631 |
|
|
| 1,749,914 |
|
Total deposits |
|
| 2,287,408 |
|
|
| 2,210,202 |
|
|
| 2,209,433 |
|
Advances from Federal Home Loan Bank |
|
| 63,500 |
|
|
| 23,500 |
|
|
| 23,500 |
|
Borrowings under Bank Term Funding Program |
|
| 109,000 |
|
|
| 229,000 |
|
|
| 235,800 |
|
Repurchase agreements |
|
| 12,994 |
|
|
| 7,432 |
|
|
| 13,930 |
|
Subordinated debt, net of unamortized issuance costs |
|
| 36,494 |
|
|
| 36,475 |
|
|
| 44,296 |
|
Junior subordinated debt |
|
| 8,709 |
|
|
| 8,683 |
|
|
| 8,602 |
|
Accrued taxes and other liabilities |
|
| 38,926 |
|
|
| 42,090 |
|
|
| 45,255 |
|
Total liabilities |
|
| 2,557,031 |
|
|
| 2,557,382 |
|
|
| 2,580,816 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Preferred stock, no par value per share; 5,000,000 shares authorized |
|
| - |
|
|
| - |
|
|
| - |
|
Common stock, |
|
| 9,828 |
|
|
| 9,829 |
|
|
| 9,780 |
|
Surplus |
|
| 146,393 |
|
|
| 145,918 |
|
|
| 145,241 |
|
Retained earnings |
|
| 127,860 |
|
|
| 123,510 |
|
|
| 114,148 |
|
Accumulated other comprehensive loss |
|
| (38,539 | ) |
|
| (49,061 | ) |
|
| (60,452 | ) |
Total stockholders' equity |
|
| 245,542 |
|
|
| 230,196 |
|
|
| 208,717 |
|
Total liabilities and stockholders' equity |
| $ | 2,802,573 |
|
| $ | 2,787,578 |
|
| $ | 2,789,533 |
|
INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except share data)
(Unaudited)
| For the three months ended |
| ||||||||||
| September 30, 2024 |
|
| June 30, 2024 |
|
| September 30, 2023 |
| ||||
INTEREST INCOME |
|
|
|
|
|
|
|
|
| |||
Interest and fees on loans |
| $ | 32,764 |
|
| $ | 32,161 |
|
| $ | 28,892 |
|
Interest on investment securities |
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
| 2,755 |
|
|
| 2,766 |
|
|
| 3,055 |
|
Tax-exempt |
|
| 228 |
|
|
| 214 |
|
|
| 216 |
|
Other interest income |
|
| 1,101 |
|
|
| 649 |
|
|
| 997 |
|
Total interest income |
|
| 36,848 |
|
|
| 35,790 |
|
|
| 33,160 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Interest on deposits |
|
| 15,729 |
|
|
| 14,865 |
|
|
| 11,733 |
|
Interest on borrowings |
|
| 3,263 |
|
|
| 3,727 |
|
|
| 3,958 |
|
Total interest expense |
|
| 18,992 |
|
|
| 18,592 |
|
|
| 15,691 |
|
Net interest income |
|
| 17,856 |
|
|
| 17,198 |
|
|
| 17,469 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Provision for credit losses |
|
| (945 | ) |
|
| (415 | ) |
|
| (34 | ) |
Net interest income after provision for credit losses |
|
| 18,801 |
|
|
| 17,613 |
|
|
| 17,503 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
| 828 |
|
|
| 799 |
|
|
| 806 |
|
Gain (loss) on call or sale of investment securities, net |
|
| 1 |
|
|
| (383 | ) |
|
| - |
|
Loss on sale or disposition of fixed assets, net |
|
| - |
|
|
| - |
|
|
| (367 | ) |
(Loss) gain on sale of other real estate owned, net |
|
| (4 | ) |
|
| 712 |
|
|
| 23 |
|
Servicing fees and fee income on serviced loans |
|
| - |
|
|
| - |
|
|
| 2 |
|
Interchange fees |
|
| 403 |
|
|
| 410 |
|
|
| 399 |
|
Income from bank owned life insurance |
|
| 459 |
|
|
| 463 |
|
|
| 357 |
|
Change in the fair value of equity securities |
|
| 174 |
|
|
| - |
|
|
| 22 |
|
Legal settlement |
|
| 1,122 |
|
|
| - |
|
|
| - |
|
Other operating income |
|
| 561 |
|
|
| 749 |
|
|
| 395 |
|
Total noninterest income |
|
| 3,544 |
|
|
| 2,750 |
|
|
| 1,637 |
|
Income before noninterest expense |
|
| 22,345 |
|
|
| 20,363 |
|
|
| 19,140 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
| 760 |
|
|
| 787 |
|
|
| 900 |
|
Salaries and employee benefits |
|
| 9,982 |
|
|
| 9,593 |
|
|
| 9,463 |
|
Occupancy |
|
| 652 |
|
|
| 696 |
|
|
| 618 |
|
Data processing |
|
| 880 |
|
|
| 893 |
|
|
| 888 |
|
Marketing |
|
| 121 |
|
|
| 72 |
|
|
| 83 |
|
Professional fees |
|
| 473 |
|
|
| 471 |
|
|
| 516 |
|
Gain on early extinguishment of subordinated debt |
|
| - |
|
|
| (287 | ) |
|
| - |
|
Other operating expenses |
|
| 3,312 |
|
|
| 3,252 |
|
|
| 3,306 |
|
Total noninterest expense |
|
| 16,180 |
|
|
| 15,477 |
|
|
| 15,774 |
|
Income before income tax expense |
|
| 6,165 |
|
|
| 4,886 |
|
|
| 3,366 |
|
Income tax expense |
|
| 784 |
|
|
| 829 |
|
|
| 585 |
|
Net income |
| $ | 5,381 |
|
| $ | 4,057 |
|
| $ | 2,781 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share |
| $ | 0.55 |
|
| $ | 0.41 |
|
| $ | 0.28 |
|
Diluted earnings per share |
|
| 0.54 |
|
|
| 0.41 |
|
|
| 0.28 |
|
Cash dividends declared per common share |
|
| 0.105 |
|
|
| 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 |
| ||||||||||||||||||||||||||||
September 30, 2024 |
|
| June 30, 2024 |
|
| September 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 | $ | 2,159,412 |
| $ | 32,764 |
|
| 6.04 | % |
| $ | 2,168,762 |
| $ | 32,161 |
|
| 5.96 | % |
| $ | 2,072,617 |
| $ | 28,892 |
|
| 5.53 | % |
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
| 396,254 |
|
| 2,755 |
|
| 2.77 |
|
|
| 403,391 |
|
| 2,766 |
|
| 2.76 |
|
|
| 442,556 |
|
| 3,055 |
|
| 2.74 |
|
Tax-exempt |
| 24,552 |
|
| 228 |
|
| 3.68 |
|
|
| 23,558 |
|
| 214 |
|
| 3.66 |
|
|
| 25,493 |
|
| 216 |
|
| 3.35 |
|
Interest-bearing balances with banks |
| 79,793 |
|
| 1,101 |
|
| 5.49 |
|
|
| 47,521 |
|
| 649 |
|
| 5.50 |
|
|
| 63,171 |
|
| 997 |
|
| 6.26 |
|
Total interest-earning assets |
| 2,660,011 |
|
| 36,848 |
|
| 5.51 |
|
|
| 2,643,232 |
|
| 35,790 |
|
| 5.45 |
|
|
| 2,603,837 |
|
| 33,160 |
|
| 5.05 |
|
Cash and due from banks |
| 26,121 |
|
|
|
|
|
|
|
|
| 25,974 |
|
|
|
|
|
|
|
|
| 27,734 |
|
|
|
|
|
|
|
Intangible assets |
| 41,927 |
|
|
|
|
|
|
|
|
| 42,082 |
|
|
|
|
|
|
|
|
| 42,595 |
|
|
|
|
|
|
|
Other assets |
| 97,704 |
|
|
|
|
|
|
|
|
| 91,439 |
|
|
|
|
|
|
|
|
| 92,108 |
|
|
|
|
|
|
|
Allowance for credit losses |
| (28,794 | ) |
|
|
|
|
|
|
|
| (28,935 | ) |
|
|
|
|
|
|
|
| (29,916 | ) |
|
|
|
|
|
|
Total assets | $ | 2,796,969 |
|
|
|
|
|
|
|
| $ | 2,773,792 |
|
|
|
|
|
|
|
| $ | 2,736,358 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Liabilities and stockholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits | $ | 676,946 |
| $ | 3,440 |
|
| 2.02 | % |
| $ | 658,594 |
| $ | 3,083 |
|
| 1.88 | % |
| $ | 668,732 |
| $ | 2,462 |
|
| 1.46 | % |
Savings deposits |
| 127,536 |
|
| 366 |
|
| 1.14 |
|
|
| 128,957 |
|
| 342 |
|
| 1.07 |
|
|
| 130,262 |
|
| 179 |
|
| 0.54 |
|
Brokered time deposits |
| 255,076 |
|
| 3,335 |
|
| 5.20 |
|
|
| 241,777 |
|
| 3,126 |
|
| 5.20 |
|
|
| 159,244 |
|
| 1,990 |
|
| 4.96 |
|
Time deposits |
| 754,217 |
|
| 8,588 |
|
| 4.53 |
|
|
| 741,657 |
|
| 8,314 |
|
| 4.51 |
|
|
| 749,610 |
|
| 7,102 |
|
| 3.76 |
|
Total interest-bearing deposits |
| 1,813,775 |
|
| 15,729 |
|
| 3.45 |
|
|
| 1,770,985 |
|
| 14,865 |
|
| 3.38 |
|
|
| 1,707,848 |
|
| 11,733 |
|
| 2.73 |
|
Short-term borrowings |
| 207,539 |
|
| 2,396 |
|
| 4.59 |
|
|
| 248,189 |
|
| 2,886 |
|
| 4.68 |
|
|
| 242,363 |
|
| 3,039 |
|
| 4.97 |
|
Long-term debt |
| 71,946 |
|
| 867 |
|
| 4.79 |
|
|
| 71,122 |
|
| 841 |
|
| 4.76 |
|
|
| 76,376 |
|
| 919 |
|
| 4.77 |
|
Total interest-bearing liabilities |
| 2,093,260 |
|
| 18,992 |
|
| 3.61 |
|
|
| 2,090,296 |
|
| 18,592 |
|
| 3.58 |
|
|
| 2,026,587 |
|
| 15,691 |
|
| 3.07 |
|
Noninterest-bearing deposits |
| 433,126 |
|
|
|
|
|
|
|
|
| 425,964 |
|
|
|
|
|
|
|
|
| 462,525 |
|
|
|
|
|
|
|
Other liabilities |
| 31,805 |
|
|
|
|
|
|
|
|
| 29,995 |
|
|
|
|
|
|
|
|
| 26,853 |
|
|
|
|
|
|
|
Stockholders' equity |
| 238,778 |
|
|
|
|
|
|
|
|
| 227,537 |
|
|
|
|
|
|
|
|
| 220,393 |
|
|
|
|
|
|
|
Total liability and stockholders' equity | $ | 2,796,969 |
|
|
|
|
|
|
|
| $ | 2,773,792 |
|
|
|
|
|
|
|
| $ | 2,736,358 |
|
|
|
|
|
|
|
Net interest income/net interest margin |
|
|
| $ | 17,856 |
|
| 2.67 | % |
|
|
|
| $ | 17,198 |
|
| 2.62 | % |
|
|
|
| $ | 17,469 |
|
| 2.66 | % |
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 |
| ||||||||||||||||||||||||||||
September 30, 2024 |
|
| June 30, 2024 |
|
| September 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 | $ | 2,159,412 |
| $ | 32,764 |
|
| 6.04 | % |
| $ | 2,168,762 |
| $ | 32,161 |
|
| 5.96 | % |
| $ | 2,072,617 |
| $ | 28,892 |
|
| 5.53 | % |
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest recoveries |
|
|
|
| 79 |
|
|
|
|
|
|
|
|
| 44 |
|
|
|
|
|
|
|
|
| 118 |
|
|
|
|
Accretion |
|
|
|
| 13 |
|
|
|
|
|
|
|
|
| 18 |
|
|
|
|
|
|
|
|
| 36 |
|
|
|
|
Adjusted loans |
| 2,159,412 |
|
| 32,672 |
|
| 6.02 |
|
|
| 2,168,762 |
|
| 32,099 |
|
| 5.95 |
|
|
| 2,072,617 |
|
| 28,738 |
|
| 5.50 |
|
Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
| 396,254 |
|
| 2,755 |
|
| 2.77 |
|
|
| 403,391 |
|
| 2,766 |
|
| 2.76 |
|
|
| 442,556 |
|
| 3,055 |
|
| 2.74 |
|
Tax-exempt |
| 24,552 |
|
| 228 |
|
| 3.68 |
|
|
| 23,558 |
|
| 214 |
|
| 3.66 |
|
|
| 25,493 |
|
| 216 |
|
| 3.35 |
|
Interest-bearing balances with banks |
| 79,793 |
|
| 1,101 |
|
| 5.49 |
|
|
| 47,521 |
|
| 649 |
|
| 5.50 |
|
|
| 63,171 |
|
| 997 |
|
| 6.26 |
|
Adjusted interest-earning assets |
| 2,660,011 |
|
| 36,756 |
|
| 5.50 |
|
|
| 2,643,232 |
|
| 35,728 |
|
| 5.44 |
|
|
| 2,603,837 |
|
| 33,006 |
|
| 5.03 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Total interest-bearing liabilities |
| 2,093,260 |
|
| 18,992 |
|
| 3.61 |
|
|
| 2,090,296 |
|
| 18,592 |
|
| 3.58 |
|
|
| 2,026,587 |
|
| 15,691 |
|
| 3.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Adjusted net interest income/adjusted net interest margin |
|
|
| $ | 17,764 |
|
| 2.66 | % |
|
|
|
| $ | 17,136 |
|
| 2.61 | % |
|
|
|
| $ | 17,315 |
|
| 2.64 | % |
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
| September 30, 2024 |
|
| June 30, 2024 |
|
| September 30, 2023 |
| ||||
Tangible common equity |
|
|
|
|
|
|
|
|
| |||
Total stockholders' equity |
| $ | 245,542 |
|
| $ | 230,196 |
|
| $ | 208,717 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
| 40,088 |
|
|
| 40,088 |
|
|
| 40,088 |
|
Core deposit intangible |
|
| 1,656 |
|
|
| 1,808 |
|
|
| 2,308 |
|
Trademark intangible |
|
| 100 |
|
|
| 100 |
|
|
| 100 |
|
Tangible common equity |
| $ | 203,698 |
|
| $ | 188,200 |
|
| $ | 166,221 |
|
Tangible assets |
|
|
|
|
|
|
|
|
|
|
|
|
Total assets |
| $ | 2,802,573 |
|
| $ | 2,787,578 |
|
| $ | 2,789,533 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill |
|
| 40,088 |
|
|
| 40,088 |
|
|
| 40,088 |
|
Core deposit intangible |
|
| 1,656 |
|
|
| 1,808 |
|
|
| 2,308 |
|
Trademark intangible |
|
| 100 |
|
|
| 100 |
|
|
| 100 |
|
Tangible assets |
| $ | 2,760,729 |
|
| $ | 2,745,582 |
|
| $ | 2,747,037 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Common shares outstanding |
|
| 9,827,622 |
|
|
| 9,828,825 |
|
|
| 9,779,688 |
|
Tangible equity to tangible assets |
|
| 7.38 | % |
|
| 6.85 | % |
|
| 6.05 | % |
Book value per common share |
| $ | 24.98 |
|
| $ | 23.42 |
|
| $ | 21.34 |
|
Tangible book value per common share |
|
| 20.73 |
|
|
| 19.15 |
|
|
| 17.00 |
|
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
| Three months ended |
| |||||||||||
| 9/30/2024 |
|
| 6/30/2024 |
|
| 9/30/2023 |
| |||||
Net interest income | (a) |
| $ | 17,856 |
|
| $ | 17,198 |
|
| $ | 17,469 |
|
Provision for credit losses |
|
| (945 | ) |
|
| (415 | ) |
|
| (34 | ) | |
Net interest income after provision for credit losses |
|
| 18,801 |
|
|
| 17,613 |
|
|
| 17,503 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Noninterest income | (b) |
|
| 3,544 |
|
|
| 2,750 |
|
|
| 1,637 |
|
(Gain) loss on call or sale of investment securities, net |
|
| (1 | ) |
|
| 383 |
|
|
| - |
| |
Loss on sale or disposition of fixed assets, net |
|
| - |
|
|
| - |
|
|
| 367 |
| |
Loss (gain) on sale of other real estate owned, net |
|
| 4 |
|
|
| (712 | ) |
|
| (23 | ) | |
Change in the fair value of equity securities |
|
| (174 | ) |
|
| - |
|
|
| (22 | ) | |
Legal settlement(1) |
|
| (1,122 | ) |
|
| - |
|
|
| - |
| |
Change in the net asset value of other investments(2) |
|
| (48 | ) |
|
| 27 |
|
|
| 105 |
| |
Core noninterest income | (d) |
|
| 2,203 |
|
|
| 2,448 |
|
|
| 2,064 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Core earnings before noninterest expense |
|
| 21,004 |
|
|
| 20,061 |
|
|
| 19,567 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Total noninterest expense | (c) |
|
| 16,180 |
|
|
| 15,477 |
|
|
| 15,774 |
|
Gain on early extinguishment of subordinated debt |
|
| - |
|
|
| 287 |
|
|
| - |
| |
Severance(3) |
|
| - |
|
|
| - |
|
|
| (123 | ) | |
Loan purchase expense(4) |
|
| - |
|
|
| - |
|
|
| (29 | ) | |
Legal settlement expense(5) |
|
| (267 | ) |
|
| - |
|
|
| - |
| |
Core noninterest expense | (f) |
|
| 15,913 |
|
|
| 15,764 |
|
|
| 15,622 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
Core earnings before income tax expense |
|
| 5,091 |
|
|
| 4,297 |
|
|
| 3,945 |
| |
Core income tax expense(6) |
|
| 647 |
|
|
| 730 |
|
|
| 686 |
| |
Core earnings |
| $ | 4,444 |
|
| $ | 3,567 |
|
| $ | 3,259 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Core basic earnings per common share |
|
| 0.45 |
|
|
| 0.36 |
|
|
| 0.33 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Diluted earnings per common share (GAAP) |
| $ | 0.54 |
|
| $ | 0.41 |
|
| $ | 0.28 |
| |
(Gain) loss on call or sale of investment securities, net |
|
| - |
|
|
| 0.03 |
|
|
| - |
| |
Loss on sale or disposition of fixed assets, net |
|
| - |
|
|
| - |
|
|
| 0.03 |
| |
Loss (gain) on sale of other real estate owned, net |
|
| - |
|
|
| (0.06 | ) |
|
| - |
| |
Change in the fair value of equity securities |
|
| (0.01 | ) |
|
| - |
|
|
| - |
| |
Legal settlement(1) |
|
| (0.10 | ) |
|
| - |
|
|
| - |
| |
Change in the net asset value of other investments(2) |
|
| - |
|
|
| - |
|
|
| 0.01 |
| |
Gain on early extinguishment of subordinated debt |
|
| - |
|
|
| (0.02 | ) |
|
| - |
| |
Severance(3) |
|
| - |
|
|
| - |
|
|
| 0.01 |
| |
Loan purchase expense(4) |
|
| - |
|
|
| - |
|
|
| - |
| |
Legal settlement expense(5) |
|
| 0.02 |
|
|
| - |
|
|
| - |
| |
Core diluted earnings per common share |
| $ | 0.45 |
|
| $ | 0.36 |
|
| $ | 0.33 |
| |
|
|
|
|
|
|
|
|
|
|
|
| ||
Efficiency ratio | (c) / (a+b) |
|
| 75.61 | % |
|
| 77.59 | % |
|
| 82.56 | % |
Core efficiency ratio | (f) / (a+d) |
|
| 79.33 |
|
|
| 80.24 |
|
|
| 79.98 |
|
Core return on average assets(7) |
|
| 0.63 |
|
|
| 0.52 |
|
|
| 0.47 |
| |
Core return on average equity(7) |
|
| 7.40 |
|
|
| 6.31 |
|
|
| 5.87 |
| |
Total average assets |
| $ | 2,796,969 |
|
| $ | 2,773,792 |
|
| $ | 2,736,358 |
| |
Total average stockholders' equity |
|
| 238,778 |
|
|
| 227,537 |
|
|
| 220,393 |
| |
(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 net asset value of other investments represents unrealized gains or losses on Investar's investments in Small Business Investment Companies and other investment funds included in other operating income in the accompanying consolidated statements of income.
(3) Adjustments to noninterest expense directly attributable to Investar's exit from its consumer mortgage origination business, consisting of salaries and employee benefits.
(4) Adjustments to noninterest expense directly attributable to the purchase of loans, consisting of professional fees for legal and consulting services.
(5) 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.
(6) Core income tax expense is calculated using the effective tax rates of
(7) Core earnings used in calculation. No adjustments were made to average assets or average equity.
SOURCE: Investar Holding Corporation
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FAQ
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