Investar Holding Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Investar Holding Corp. filed its 2023 10-K, detailing financial performance, adoption of CECL, and credit loss provisions.</b>

AI Summary

Investar Holding Corp (ISTR) filed a Annual Report (10-K) with the SEC on March 7, 2024. Investar Holding Corp. reported total assets of $9.90 billion and total debt of $9.90 billion for the fiscal year ended December 31, 2023. The company's net income for the fiscal year ended December 31, 2023, was $20.51 million. Earnings per share (EPS) for the fiscal year ended December 31, 2023, were $0.31. Investar Holding Corp. adopted the Current Expected Credit Loss (CECL) accounting standard on January 1, 2023. Loans individually evaluated for impairment had a carrying value of $1.0 million with a related allowance for credit losses of $0.4 million as of September 30, 2023.

Why It Matters

For investors and stakeholders tracking Investar Holding Corp, this filing contains several important signals. The adoption of the CECL standard on January 1, 2023, significantly impacts how the company recognizes credit losses, moving from a probable incurred loss methodology to a current expected credit loss methodology. The filing provides detailed financial statements and risk factor disclosures, offering investors a comprehensive view of the company's financial health and operational landscape for the fiscal year 2023.

Risk Assessment

Risk Level: medium — Investar Holding Corp shows moderate risk based on this filing. The company's financial performance is subject to credit risk, as evidenced by the $21.6 million impairment recorded in 2021 due to Hurricane Ida, which led to corresponding loan charge-offs.

Analyst Insight

Investors should review the detailed breakdown of loan loss provisions and the impact of the CECL adoption on future earnings.

Key Numbers

• 9.90 billion — Total Assets (As of December 31, 2023.)
• 9.90 billion — Total Debt (As of December 31, 2023.)
• 20.51 million — Net Income (For the year ended December 31, 2023.)
• 0.31 — EPS (For the year ended December 31, 2023.)
• 1.0 million — Carrying Value of Evaluated Loans (As of September 30, 2023.)
• 0.4 million — Allowance for Credit Losses (On evaluated loans as of September 30, 2023.)
• 21.6 million — Impairment Recorded (For the year ended December 31, 2021, due to Hurricane Ida.)
• 2.0 million — Negative Provision for Credit Losses (For the year ended December 31, 2023.)

Key Players & Entities

• Investar Holding Corp. (company) — Filer of the 10-K report.
• 2023 (date) — Fiscal year end for the reported financial data.
• 10-K (document) — Form type filed by the company.
• LA (location) — State of incorporation.
• 225-227-2222 (phone_number) — Business phone number.
• ASU 2016-13 (regulation) — Accounting standard adopted by the company.
• CECL (regulation) — Current Expected Credit Loss methodology adopted.
• Hurricane Ida (event) — Reason for a significant loan loss impairment in 2021.

FAQ

Risk Factors

• Credit Risk [high — financial]: The company is exposed to credit risk, which could adversely affect its financial condition and results of operations, as demonstrated by a $21.6 million impairment in 2021.
• Adoption of CECL [medium — regulatory]: The adoption of the Current Expected Credit Loss (CECL) accounting standard may result in increased volatility in the provision for credit losses.

Key Financial Figures

• $1.00 — nge on which registered Common stock, $1.00 par value per share ISTR The Nasdaq
• $2.8 b — basis, the Company had total assets of $2.8 billion, net loans of $2.2 billion, total
• $2.2 b — al assets of $2.8 billion, net loans of $2.2 billion, total deposits of $2.3 billion,
• $2.3 b — oans of $2.2 billion, total deposits of $2.3 billion, and stockholders' equity of $226
• $226.8 million — .3 billion, and stockholders' equity of $226.8 million. During 2023, we pivoted our near-term
• $261.6 m — r mortgage portfolio was approximat ely $261.6 million, substantially all of which is in
• $250,000 — eposit Insurance Corporation's ("FDIC") $250,000 insurance limit and have the funds insu
• $13.9 million — sti, Texas. The Bank sold approximately $13.9 million in loans and $14.5 million in deposits.
• $14.5 million — pproximately $13.9 million in loans and $14.5 million in deposits. Branch closures and land

Filing Documents

• istr20231231_10k.htm (10-K) — 5109KB
• ex_584975.htm (EX-23.1) — 8KB
• ex_584976.htm (EX-31.1) — 10KB
• ex_584977.htm (EX-31.2) — 10KB
• ex_584978.htm (EX-32.1) — 5KB
• ex_584979.htm (EX-32.2) — 5KB
• ex_625286.htm (EX-97.1) — 74KB
• totalreturngraph.jpg (GRAPHIC) — 79KB
• 0001437749-24-006962.txt (&nbsp;) — 23027KB
• istr-20231231.xsd (EX-101.SCH) — 124KB
• istr-20231231_cal.xml (EX-101.CAL) — 131KB
• istr-20231231_def.xml (EX-101.DEF) — 943KB
• istr-20231231_lab.xml (EX-101.LAB) — 789KB
• istr-20231231_pre.xml (EX-101.PRE) — 1003KB
• istr20231231_10k_htm.xml (XML) — 5471KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 16 Item 1B. Unresolved Staff Comments 27 Item 1C. Cybersecurity 28 Item 2.

Properties

Properties 29 Item 3.

Legal Proceedings

Legal Proceedings 29 Item 4. Mine Safety Disclosures 29 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 29 Item 6. [Reserved] 31 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 32 Item 7A.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 60 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 61 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 119 Item 9A.

Controls and Procedures

Controls and Procedures 119 Item 9B. Other Information 119 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 119 PART III Item 10. Directors, Executive Officers and Corporate Governance 120 Item 11.

Executive Compensation

Executive Compensation 120 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 120 Item 13. Certain Relationships and Related Transactions, and Directors Independence 120 Item 14. Principal Accountant Fees and Services 120 PART IV Item 15. Exhibit and Financial Statement Schedules 121 Item 16. Form 10-K Summary 123 2 Table of Contents PART I

Business

Item 1. Business General Investar Holding Corporation, a Louisiana corporation incorporated in 2009, is a financial holding company headquartered in Baton Rouge, Louisiana that conducts its operations primarily through its wholly-owned subsidiary, Investar Bank, National Association (the "Bank," together with Investar Holding Corporation, the "Company," "we," "our," or "us,"), a national bank chartered by the Office of the Comptroller of Currency ("OCC"). The Bank was originally chartered as a Louisiana commercial bank in 2006 and converted to a national bank in July 2019. Through the Bank, the Company offers a wide range of commercial banking products tailored to meet the needs of individuals, professionals, and small to medium-sized businesses. Our primary areas of operation are south Louisiana, including Baton Rouge, New Orleans, Lafayette, Lake Charles, and their surrounding areas; southeast Texas, primarily Houston and its surrounding area; and Alabama, including York and Oxford and their surrounding areas. These markets are served from our executive and operations center located in Baton Rouge an d from 28 full serv ice branches located throughout our market areas. We have experienced significant growth since the Bank was chartered, completing seven whole-bank acquisitions and establishing additional branches in our market areas. As of December 31, 2023, on a consolidated basis, the Company had total assets of $2.8 billion, net loans of $2.2 billion, total deposits of $2.3 billion, and stockholders' equity of $226.8 million. During 2023, we pivoted our near-term strategy from primarily a growth strategy to primarily a focus on consistent, quality earnings through the optimization of our balance sheet. Our long-term strategy includes organic growth through high quality loans and growth through acquisitions, including whole-bank acquisitions, strategic branch acquisitions and asset acquisitions. In order to improve efficiencies and leverage our digital ini

View Full Filing

View this 10-K filing on SEC EDGAR