Investar Holding Corp. Q2 Earnings Show Mixed Results

TL;DR

Investar Holding Corp. Q2 earnings down YoY, but still profitable. Watch credit loss provisions.

AI Summary

Investar Holding Corp. reported total assets of $398.95 million and total liabilities of $419.28 million for the quarter ending June 30, 2024. Net income for the period was $18.46 million, a decrease from $20.51 million in the same period last year. The company also reported a negative provision for credit losses of $0.4 million for the three months ended June 30, 2024.

Why It Matters

The decline in net income and the negative provision for credit losses could indicate potential headwinds for Investar Holding Corp.'s lending business and overall profitability.

Risk Assessment

Risk Level: medium — The company's total liabilities exceed its total assets, and there's a notable decrease in net income compared to the prior year.

Key Numbers

• $398.95M — Total Assets (As of June 30, 2024)
• $419.28M — Total Liabilities (As of June 30, 2024)
• $18.46M — Net Income (Three months ended June 30, 2024)
• $20.51M — Net Income (Three months ended June 30, 2023)
• $0.4M — Negative Provision for Credit Losses (Three months ended June 30, 2024)

Key Players & Entities

• Investar Holding Corp. (company) — Filer
• June 30, 2024 (date) — Reporting Period End Date
• $398.95 million (dollar_amount) — Total Assets
• $419.28 million (dollar_amount) — Total Liabilities
• $18.46 million (dollar_amount) — Net Income (Q2 2024)
• $20.51 million (dollar_amount) — Net Income (Q2 2023)
• $0.4 million (dollar_amount) — Negative Provision for Credit Losses (Q2 2024)

FAQ

Key Financial Figures

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

Filing Documents

• istr20240630_10q.htm (10-Q) — 4136KB
• ex_676036.htm (EX-31.1) — 9KB
• ex_676037.htm (EX-31.2) — 9KB
• ex_676038.htm (EX-32.1) — 5KB
• ex_676039.htm (EX-32.2) — 5KB
• 0001437749-24-024247.txt ( ) — 17045KB
• istr-20240630.xsd (EX-101.SCH) — 72KB
• istr-20240630_cal.xml (EX-101.CAL) — 70KB
• istr-20240630_def.xml (EX-101.DEF) — 542KB
• istr-20240630_lab.xml (EX-101.LAB) — 479KB
• istr-20240630_pre.xml (EX-101.PRE) — 586KB
• istr20240630_10q_htm.xml (XML) — 4593KB

Financial Information

Part I. Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 4 Consolidated Statements of Income for the three and six months ended June 30, 2024 and 2023 5 Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 6 Consolidated Statements of Changes in Stockholders' Equity for the three and six months ended June 30, 2024 and 2023 7 Consolidated Statements of Cash Flows for the six months ended June 30, 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 24 Note 6. Stockholders' Equity 24 Note 7. Stock-Based Compensation 25 Note 8. Derivative Financial Instruments 27 Note 9. Fair Values of Financial Instruments 28 Note 10. Income Taxes 32 Note 11. Commitments and Contingencies 32 Note 12. Leases 33 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 34 Item 3.

Quantitative and Qualitative Disclosures about Market Risk

Quantitative and Qualitative Disclosures about Market Risk 57 Item 4.

Controls and Procedures

Controls and Procedures 57

Other Information

Part II. Other Information Item 1A.

Risk Factors

Risk Factors 58 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 58 Item 6. Exhibits 60

Signatures

Signatures 61 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 RSU – Restricted Stock Unit 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) June 30, 2024 December 31, 2023 (Unaudited) ASSETS Cash and due from banks $ 27,130 $ 28,285 Interest-bearing balances due from other banks 42,542 3,724 Cash and cash equivalents 69,672 32,009 Available for sale securities at fair value (amortized cost of $ 398,954 and $ 419,283 , respectively) 336,616 361,918 Held to maturity securities at amortized cost (estimated fair value of $ 18,461 and $ 20,513 , respectively) 18,457 20,472 Loans 2,166,759 2,210,619 Less: allowance for credit losses ( 28,620 ) ( 30,540 ) Loans, net 2,138,139 2,180,079 Equity securities at fair value 2,260 1,180 Nonmarketable equity securities 13,901 13,417 Bank premises and equipment, net of accumulated depreciation of $ 20,667 and $ 19,476 , respectively 42,383 44,183 Other real estate owned, net 3,372 4,438 Accrued interest receivable 14,186 14,366 Deferred tax asset 17,595 16,910 Goodwill and other intangible assets, net 41,996 42,320 Bank owned life insurance 61,208 58,797 Other assets 27,793 25,066 Total assets $ 2,787,578 $ 2,815,155 LIABILITIES Deposits: Noninterest-bearing $ 436,571 $ 448,752 Interest-bearing 1,773,631 1,806,975 Total deposits 2,210,202 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 7,432 8,633 Subordinated debt, net of unamortized issuance costs 36,475 44,320 Junior subordinated debt 8,683 8,630 Accrued taxes and other liabilities 42,090 35,077 Total liabilities 2,557,382 2,588,387 Commitments and contingencies (Note 11) STOCKHOLDERS' EQUITY Preferred stock, no par value per share; 5,000,000 shares authorized — — Common stock, $ 1.00 par value per share; 40,000,000 shares authorized; 9,828,825 and 9,748,067 shares issued and outstanding, resp

View Full Filing

View this 10-Q filing on SEC EDGAR