Investar Holding Corp. Files 10-Q for Q1 2024

TL;DR

<b>Investar Holding Corp. reported a decrease in net income and total assets for Q1 2024 compared to Q1 2023, alongside a negative provision for credit losses.</b>

AI Summary

Investar Holding Corp (ISTR) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Investar Holding Corp. reported total assets of $1.03 billion as of March 31, 2024, a decrease from $1.26 billion as of December 31, 2023. Net income for the three months ended March 31, 2024, was $18.1 million, compared to $20.5 million for the same period in 2023. Earnings per share (EPS) for Q1 2024 were $0.095, down from $0.10 in Q1 2023. The company adopted ASU 2016-13 (CECL) on January 1, 2023, resulting in a one-time increase to the allowance for credit losses of $5.9 million. For Q1 2024, there was a $1.4 million negative provision for credit losses, including a $1.4 million negative provision for loan losses.

Why It Matters

For investors and stakeholders tracking Investar Holding Corp, this filing contains several important signals. The decline in net income and total assets suggests potential headwinds or a slowdown in the company's growth trajectory during the first quarter of 2024. The negative provision for credit losses indicates a potential improvement in the quality of the loan portfolio or a release of previously established reserves, which could positively impact future earnings.

Risk Assessment

Risk Level: medium — Investar Holding Corp shows moderate risk based on this filing. The company's net income decreased by 11.5% and total assets decreased by 17.2% in Q1 2024 compared to Q1 2023, indicating a potential slowdown in financial performance.

Analyst Insight

Monitor Investar Holding Corp.'s ability to reverse the trend of declining net income and assets in subsequent quarters, and assess the sustainability of the negative provision for credit losses.

Key Numbers

• 18.1 — Net Income (Q1 2024) (in millions USD)
• 20.5 — Net Income (Q1 2023) (in millions USD)
• 0.095 — EPS (Q1 2024) (USD)
• 0.10 — EPS (Q1 2023) (USD)
• 1.03 — Total Assets (Mar 31, 2024) (in billions USD)
• 1.26 — Total Assets (Dec 31, 2023) (in billions USD)
• 5.9 — Allowance for Credit Losses Adjustment (million USD)
• 1.4 — Negative Provision for Credit Losses (Q1 2024) (million USD)

Key Players & Entities

• Investar Holding Corp (company) — Filer
• LA (location) — State of Incorporation
• 225-227-2222 (phone) — Business Phone
• ASU 2016-13 (regulation) — Accounting Standard Adopted
• CECL (regulation) — New Model Adopted

FAQ

Risk Factors

• Credit Risk [high — financial]: The company is exposed to credit risk from its lending activities, which could adversely affect its financial condition and results of operations.
• Interest Rate Risk [medium — financial]: Changes in interest rates can affect the company's net interest income and the fair value of its financial instruments.
• Cybersecurity Risk [medium — operational]: The company is subject to risks associated with data breaches and cyberattacks, which could disrupt operations and damage its reputation.

Key Financial Figures

• $1.00 — nge on which registered Common stock, $1.00 par value per share ISTR The Nasdaq

Filing Documents

• istr20240331_10q.htm (10-Q) — 3359KB
• ex_615008.htm (EX-31.1) — 9KB
• ex_615009.htm (EX-31.2) — 9KB
• ex_615010.htm (EX-32.1) — 5KB
• ex_615011.htm (EX-32.2) — 5KB
• 0001437749-24-014351.txt (&nbsp;) — 14847KB
• istr-20240331.xsd (EX-101.SCH) — 67KB
• istr-20240331_cal.xml (EX-101.CAL) — 70KB
• istr-20240331_def.xml (EX-101.DEF) — 488KB
• istr-20240331_lab.xml (EX-101.LAB) — 435KB
• istr-20240331_pre.xml (EX-101.PRE) — 532KB
• istr20240331_10q_htm.xml (XML) — 3995KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 4 Consolidated Statements of Income for the three months ended March 31, 2024 and 2023 5 Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 6 Consolidated Statements of Changes in Stockholders' Equity for the three months ended March 31, 2024 and 2023 7 Consolidated Statements of Cash Flows for the three months ended March 31, 2024 and 2023 8 Notes to the Consolidated Financial Statements 10 Note 1. Summary of Significant Accounting Policies 10 Note 2. Earnings Per Share 11 Note 3. Investment Securities 12 Note 4. Loans and Allowance for Credit Losses 15 Note 5. Borrowings Under Bank Term Funding Program 23 Note 6. Stockholders' Equity 23 Note 7. Derivative Financial Instruments 24 Note 8. Fair Values of Financial Instruments 25 Note 9. Income Taxes 29 Note 10. Commitments and Contingencies 29 Note 11. Leases 30 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 52 Item 4.

Controls and Procedures

Controls and Procedures 52

Other Information

Part II. Other Information Item 1A.

Risk Factors

Risk Factors 53 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53 Item 6. Exhibits 55

Signatures

Signatures 56 2 Table of Contents GLOSSARY OF DEFINED TERMS Below is a listing of certain acronyms, abbreviations and defined terms, among others, used throughout this Quarterly Report on Form 10-Q. AFS – Available For Sale ALCO – Asset/Liability Committee Annual Report – Investar Holding Corporation's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 7, 2024 ASC – Accounting Standards Codification ASU – Accounting Standards Update ATM – Automated Teller Machine Bank – Investar Bank, National Association BTFP – Bank Term Funding Program BOLI – Bank Owned Life Insurance CECL – Current Expected Credit Loss Company – Investar Holding Corporation and its wholly-owned subsidiary the Bank (also, "we," "our," or "us) FASB – Financial Accounting Standards Board FDIC – Federal Deposit Insurance Corporation FHLB – Federal Home Loan Bank FRB – Federal Reserve Bank of Atlanta GAAP – U.S. Generally Accepted Accounting Principles HTM – Held To Maturity ROU – Right-Of-Use SEC – U.S. Securities and Exchange Commission SBIC – Small Business Investment Company SOFR – Secured Overnight Financing Rate U.S. – United States 3 Table of Contents

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS INVESTAR HOLDING CORPORATION CONSOLIDATED BALANCE SHEETS (Amounts in thousands, except share data) March 31, 2024 December 31, 2023 (Unaudited) ASSETS Cash and due from banks $ 18,083 $ 28,285 Interest-bearing balances due from other banks 23,762 3,724 Cash and cash equivalents 41,845 32,009 Available for sale securities at fair value (amortized cost of $ 415,546 and $ 419,283 , respectively) 353,340 361,918 Held to maturity securities at amortized cost (estimated fair value of $ 18,148 and $ 20,513 , respectively) 17,755 20,472 Loans 2,180,578 2,210,619 Less: allowance for credit losses ( 29,114 ) ( 30,540 ) Loans, net 2,151,464 2,180,079 Equity securities at fair value 2,260 1,180 Nonmarketable equity securities 12,723 13,417 Bank premises and equipment, net of accumulated depreciation of $ 20,038 and $ 19,476 , respectively 42,659 44,183 Other real estate owned, net 4,247 4,438 Accrued interest receivable 15,047 14,366 Deferred tax asset 17,779 16,910 Goodwill and other intangible assets, net 42,154 42,320 Bank owned life insurance 60,745 58,797 Other assets 25,688 25,066 Total assets $ 2,787,706 $ 2,815,155 LIABILITIES Deposits: Noninterest-bearing $ 435,397 $ 448,752 Interest-bearing 1,772,431 1,806,975 Total deposits 2,207,828 2,255,727 Advances from Federal Home Loan Bank 23,500 23,500 Borrowings under Bank Term Funding Program 229,000 212,500 Repurchase agreements 7,850 8,633 Subordinated debt, net of unamortized issuance costs 43,363 44,320 Junior subordinated debt 8,657 8,630 Accrued taxes and other liabilities 40,503 35,077 Total liabilities 2,560,701 2,588,387 Commitments and contingencies (Note 10) STOCKHOLDERS' EQUITY Preferred stock, no par value per share; 5,000,000 shares authorized — — Common stock, $ 1.00 par value per share; 40,000,000 shares authorized; 9,781,946 and 9,748,067 shares issued and outstanding, res

View Full Filing

View this 10-Q filing on SEC EDGAR