Investar Holding Corp. Q3 Earnings Dip Amid Asset/Liability Shift

Ticker: ISTR · Form: 10-Q · Filed: Nov 7, 2024 · CIK: 1602658

Sentiment: bearish

Topics: earnings, financials, credit-losses

TL;DR

Investar Holding Corp. Q3 net income down to $18M from $20.5M YoY. Assets $399.6M, Liabilities $419.3M.

AI Summary

Investar Holding Corp. reported its Q3 2024 results, with total assets at $399.6 million and total liabilities at $419.3 million as of September 30, 2024. The company recorded a net income of $18.0 million for the three months ended September 30, 2024, a decrease from $20.5 million in the same period last year. A negative provision for credit losses of $0.4 million was noted for the three months ended June 30, 2024.

Why It Matters

The company's financial performance and balance sheet changes could impact its lending capacity and profitability, affecting its ability to serve customers and generate returns for shareholders.

Risk Assessment

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

Key Numbers

Key Players & Entities

FAQ

What is the trend in Investar Holding Corp.'s net income?

Net income for the three months ended September 30, 2024, was $18.0 million, a decrease from $20.5 million for the same period in 2023.

What were the total assets and liabilities as of the end of the reporting period?

As of September 30, 2024, Investar Holding Corp. reported total assets of $399.6 million and total liabilities of $419.3 million.

What was the provision for credit losses for the second quarter of 2024?

For the three months ended June 30, 2024, the consolidated statement of income includes a $0.4 million negative provision for credit losses.

What is the company's state of incorporation and fiscal year end?

Investar Holding Corp. is incorporated in Louisiana (LA) and its fiscal year ends on December 31.

What is the company's SIC code and industry?

The Standard Industrial Classification (SIC) code for Investar Holding Corp. is 6022, which falls under State Commercial Banks.

Filing Stats: 4,612 words · 18 min read · ~15 pages · Grade level 16.8 · Accepted 2024-11-07 12:06:52

Key Financial Figures

Filing Documents

Financial Information

Part I. Financial Information Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 4 Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 4 Consolidated Statements of Income for the three and nine months ended September 30, 2024 and 2023 5 Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended September 30, 2024 and 2023 6 Consolidated Statements of Changes in Stockholders' Equity for the three and nine months ended September 30, 2024 and 2023 7 Consolidated Statements of Cash Flows for the nine months ended September 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 Note 13. Subsequent Events 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 BOLI – Bank Owned Life Insurance BTFP – Bank Term Funding Program 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 ITM – Interactive Teller Machine ROU – Right-Of-Use RSU – Restricted Stock Unit SBIC – Small Business Investment Company SEC – U.S. Securities and Exchange Commission 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) September 30, 2024 December 31, 2023 (Unaudited) ASSETS Cash and due from banks $ 28,869 $ 28,285 Interest-bearing balances due from other banks 57,471 3,724 Cash and cash equivalents 86,340 32,009 Available for sale securities at fair value (amortized cost of $ 399,615 and $ 419,283 , respectively) 350,646 361,918 Held to maturity securities at amortized cost (estimated fair value of $ 18,018 and $ 20,513 , respectively) 18,302 20,472 Loans 2,155,846 2,210,619 Less: allowance for credit losses ( 28,103 ) ( 30,540 ) Loans, net 2,127,743 2,180,079 Equity securities at fair value 2,434 1,180 Nonmarketable equity securities 13,951 13,417 Bank premises and equipment, net of accumulated depreciation of $ 21,275 and $ 19,476 , respectively 41,795 44,183 Other real estate owned, net 4,739 4,438 Accrued interest receivable 14,324 14,366 Deferred tax asset 14,719 16,910 Goodwill and other intangible assets, net 41,844 42,320 Bank owned life insurance 61,667 58,797 Other assets 24,069 25,066 Total assets $ 2,802,573 $ 2,815,155 LIABILITIES Deposits: Noninterest-bearing $ 437,734 $ 448,752 Interest-bearing 1,849,674 1,806,975 Total deposits 2,287,408 2,255,727 Advances from Federal Home Loan Bank 63,500 23,500 Borrowings under Bank Term Funding Program 109,000 212,500 Repurchase agreements 12,994 8,633 Subordinated debt, net of unamortized issuance costs 36,494 44,320 Junior subordinated debt 8,709 8,630 Accrued taxes and other liabilities 38,926 35,077 Total liabilities 2,557,031 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; 9,827,622 and 9,748,067 shares issued and outstanding

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