Investar Holding Corporation Announces 2024 Third Quarter Results
Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, has released its financial results for the third quarter of 2024. The company, which operates Investar Bank, National Association, reported significant improvements in several key financial metrics.
Financial Highlights
Investar reported a net income of $5.4 million, or $0.54 per diluted common share, for the third quarter of 2024. This marks an increase from the $4.1 million, or $0.41 per diluted common share, reported in the second quarter of 2024, and a substantial rise from the $2.8 million, or $0.28 per diluted common share, reported in the third quarter of 2023.
On a non-GAAP basis, core earnings per diluted common share for the third quarter of 2024 were $0.45, compared to $0.36 for the second quarter of 2024, and $0.33 for the third quarter of 2023. The net interest margin improved to 2.67% for the quarter, up from 2.62% in the previous quarter and 2.66% in the same quarter last year.
Business and Operational Highlights
Investar's total loans decreased slightly by $10.9 million, or 0.5%, to $2.16 billion at the end of September 2024. However, this represents an increase of $52.8 million, or 2.5%, compared to the same period last year. The yield on the loan portfolio increased to 6.04% for the third quarter, up from 5.96% in the second quarter of 2024.
Total deposits grew by $77.2 million, or 3.5%, to $2.29 billion at the end of September 2024. This growth is attributed to organic growth and a deposit campaign. Nonperforming loans improved to 0.19% of total loans, down from 0.23% in the previous quarter.
Strategic Initiatives and Corporate Developments
Investar repurchased 2,000 shares of its common stock during the third quarter at an average price of $18.50 per share. The company also increased its quarterly dividend per share by 5% compared to the second quarter. Additionally, Investar recorded $1.1 million in noninterest income from a legal settlement related to a loan relationship impaired by Hurricane Ida in 2021.
Management's Perspective
John D’Angelo, President and CEO of Investar, expressed satisfaction with the company's performance, highlighting the improvement in net interest margin and credit quality. He emphasized the company's strategy of optimizing the balance sheet and focusing on high-quality credits to mitigate potential economic downturns. D’Angelo also noted the company's efforts to enhance shareholder value through stock repurchases and dividend increases.
Future Outlook
Investar's management remains optimistic about the future, citing the company's liability-sensitive balance sheet as well-positioned to benefit from potential rate cuts. The company is also evaluating opportunities to optimize its physical branch and ATM footprint to improve financial performance over time. Additionally, Investar projects approximately $3.1 million in nontaxable income from bank-owned life insurance in the fourth quarter of 2024.
SEC Filing: Investar Holding Corp [ ISTR ] - 8-K - Oct. 21, 2024