false 0001602658 0001602658 2025-01-23 2025-01-23
 

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 

 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported): January 23, 2025
 

 
Investar Holding Corporation
(Exact name of registrant as specified in its charter)
 

 
Louisiana
001-36522
27-1560715
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
 
10500 Coursey Blvd.
Baton Rouge, Louisiana 70816
(Address of principal executive offices) (Zip Code)
 
Registrants telephone number, including area code: (225) 227-2222
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, $1.00 par value per share
ISTR
The Nasdaq Global Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 

 
1

 
Item 2.02
Results of Operations and Financial Condition
 
On January 23, 2025, Investar Holding Corporation (the “Company”), the holding company of Investar Bank, National Association (the “Bank”), issued a press release reporting fourth quarter 2024 results and posted on its website its fourth quarter 2024 earnings release and investor presentation. The materials contain forward-looking statements regarding the Company and include a cautionary note identifying important factors that could cause actual results to differ materially from those anticipated. Copies of the earnings release and investor presentation are furnished as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K.
 
The information contained in Item 2.02, including Exhibit 99.1 and Exhibit 99.2 of this Current Report, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01
Financial Statements and Exhibits
 
(d) Exhibits
 
Exhibit Number
 
Description of Exhibit
99.1
 
99.2   Investor presentation dated January 23, 2025
104
 
The cover page of Investar Holding Corporation’s Form 8-K is formatted in Inline XBRL
 
2

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
INVESTAR HOLDING CORPORATION
     
Date: January 24, 2025
By:
/s/ John J. D’Angelo
   
John J. D’Angelo
   
President and Chief Executive Officer
 
3

Exhibit 99.1

 

For Immediate Release

 

Investar Holding Corporation Announces 2024 Fourth Quarter Results

 

BATON ROUGE, LA / ACCESSWIRE / January 23, 2025 / Investar Holding Corporation (“Investar”) (NASDAQ:ISTR), the holding company for Investar Bank, National Association (the “Bank”), today announced financial results for the quarter ended December 31, 2024. Investar reported net income of $6.1 million, or $0.61 per diluted common share, for the fourth quarter of 2024, compared to net income of $5.4 million, or $0.54 per diluted common share, for the quarter ended September 30, 2024, and net income of $3.5 million, or $0.36 per diluted common share, for the quarter ended December 31, 2023

 

On a non-GAAP basis, core earnings per diluted common share for the fourth quarter of 2024 were $0.65 compared to $0.45 for the third quarter of 2024 and $0.39 for the fourth quarter of 2023. Core earnings exclude certain non-operating items including, but not limited to, loss (gain) on call or sale of investment securities, net, loss on sale or disposition of fixed assets, net, loss on sale of other real estate owned, net, change in the fair value of equity securities, income from a legal settlement, loss on early extinguishment of subordinated debt, and legal settlement expense. As previously indicated, Investar’s fourth quarter of 2024 results include $3.1 million in nontaxable noninterest income from bank owned life insurance (“BOLI”) death benefit proceeds, which had a favorable impact on our core metrics. Refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics, including the impact of BOLI death benefit proceeds on our core metrics.

 

Investar’s President and Chief Executive Officer John D’Angelo commented: 

 

“Over the past year, Investar has successfully implemented a strategy of consistent, quality earnings through the optimization of our balance sheet, and the fourth quarter results reflect our continued execution. Our net interest margin has begun to stabilize as our cost of funds has decreased. We remained focused on originating higher yielding loans and securing lower cost funding sources that are accretive to our margin. During the fourth quarter, in accordance with our strategy to remix the loan portfolio, we originated and renewed loans, 84% of which were variable-rate loans, at an 8.2% blended interest rate. We also repaid $109 million in borrowings under the Bank Term Funding Program and redeemed $20 million in principal amount of subordinated debt, which contributed to the decrease in our cost of funds. Additionally, despite inflationary pressures, noninterest expenses are closely monitored and remain well-controlled.

 

Credit quality remained very solid as nonperforming loans represented 0.42% of total loans at December 31, 2024, and we continued to allow higher risk commercial real estate relationships to run off.

 

We have closely managed our interest-earning assets and funding costs and are actively evaluating potential opportunities to further optimize our balance sheet mix to improve shareholder returns. Our liability sensitive balance sheet is well-positioned in the event of further rate cuts to benefit from the repricing of deposits and short-term borrowings.

 

As always, we remain focused on shareholder value and returning capital to shareholders. During the year, we paid quarterly dividends totaling $0.41 per share, which represented a 4% increase from the previous year.”

 

Fourth Quarter Highlights

 

 

Return on average assets increased to 0.88% for the quarter ended December 31, 2024 compared to 0.77% for the quarter ended September 30, 2024. Core return on average assets, which includes the impact of BOLI death benefit proceeds, increased to 0.93% for the quarter ended December 31, 2024 compared to 0.63% for the quarter ended September 30, 2024.

 

 

Efficiency ratio improved to 71.00% for the quarter ended December 31, 2024 compared to 75.61% for the quarter ended September 30, 2024. Core efficiency ratio, which includes the impact of BOLI death benefit proceeds, improved to 69.41% for the quarter ended December 31, 2024 compared to 79.33% for the quarter ended September 30, 2024.

 

 

Investar received BOLI death benefit proceeds totaling $5.5 million, and recorded a related $3.1 million in nontaxable noninterest income from BOLI, during the quarter ended December 31, 2024.

 

 

Noninterest expense decreased $0.1 million to $16.1 million for the quarter ended December 31, 2024 compared to $16.2 million for the quarter ended September 30, 2024. Core noninterest expense remained flat at $15.9 million for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024.

 

 

The overall cost of funds for the quarter ended December 31, 2024 decreased 12 basis points to 3.49% compared to 3.61% for the quarter ended September 30, 2024. The cost of deposits decreased five basis points to 3.40% for the quarter ended December 31, 2024 compared to 3.45% for the quarter ended September 30, 2024.

 

 

Credit quality remained solid with nonperforming loans comprising 0.42% of total loans at December 31, 2024 compared to 0.19% at September 30, 2024.

 

 

Variable-rate loans as a percentage of total loans was 32% at December 31, 2024 compared to 30% at September 30, 2024. During the fourth quarter of 2024, we originated and renewed loans, 84% of which were variable-rate loans, at an 8.2% blended interest rate.

 

 

Consistent with our strategy of optimizing the balance sheet, total loans decreased $30.8 million, or 1.4%, to $2.13 billion at December 31, 2024, compared to $2.16 billion at September 30, 2024. As a result of our strategy, we recognized the benefit of a $0.7 million negative provision for credit losses.

 

 

Total deposits increased $58.5 million, or 2.6%, to $2.35 billion at December 31, 2024 compared to $2.29 billion at September 30, 2024

 

 

Investar redeemed all of the remaining $20.0 million in principal amount of our 5.125% Fixed-to-Floating Rate Subordinated Notes due 2029 (the “2029 Notes”). The 2029 Notes were to bear interest at a floating rate higher than the fixed rate beginning on December 31, 2024.

 

 

During the fourth quarter of 2024, Investar repaid all of the remaining $109.0 million in borrowings under the Federal Reserve’s Bank Term Funding Program (“BTFP”), which contributed to the decrease in our overall cost of funds. The weighted average rate was 4.76% for the quarter ended December 31, 2024

 

 

Investar’s regulatory common equity tier 1 capital ratio increased to 10.85%, or 5.0% at December 31, 2024 compared to 10.33% at September 30, 2024.

 

1

 

Loans

 

Total loans were $2.13 billion at December 31, 2024a decrease of $30.8 million, or 1.4%, compared to September 30, 2024, and a decrease of $85.5 million, or 3.9%, compared to December 31, 2023.

 

The following table sets forth the composition of the total loan portfolio as of the dates indicated (dollars in thousands).

 

                           

Linked Quarter Change

 

Year/Year Change

 

Percentage of Total Loans

   

12/31/2024

 

9/30/2024

 

12/31/2023

 

$

 

%

 

$

 

%

 

12/31/2024

 

12/31/2023

Mortgage loans on real estate

                                                                       

Construction and development

  $ 154,553     $ 166,954     $ 190,371     $ (12,401 )     (7.4 )%   $ (35,818 )     (18.8 )%     7.3 %     8.6 %

1-4 Family

    396,815       403,097       413,786       (6,282 )     (1.6 )     (16,971 )     (4.1 )     18.7       18.7  

Multifamily

    84,576       85,283       105,946       (707 )     (0.8 )     (21,370 )     (20.2 )     4.0       4.8  

Farmland

    6,977       7,173       7,651       (196 )     (2.7 )     (674 )     (8.8 )     0.3       0.4  

Commercial real estate

                                                                       

Owner-occupied

    449,259       467,467       449,610       (18,208 )     (3.9 )     (351 )     (0.1 )     21.1       20.3  

Nonowner-occupied

    495,289       499,274       488,098       (3,985 )     (0.8 )     7,191       1.5       23.3       22.1  

Commercial and industrial

    526,928       515,273       543,421       11,655       2.3       (16,493 )     (3.0 )     24.8       24.6  

Consumer

    10,687       11,325       11,736       (638 )     (5.6 )     (1,049 )     (8.9 )     0.5       0.5  

Total loans

  $ 2,125,084     $ 2,155,846     $ 2,210,619     $ (30,762 )     (1.4 )%   $ (85,535 )     (3.9 )%     100 %     100 %
 

At December 31, 2024, Investar’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $976.2 million, a decrease of $6.6 million, or 0.7%, compared to the business lending portfolio of $982.7 million at September 30, 2024, and a decrease of $16.8 million, or 1.7%, compared to the business lending portfolio of $993.0 million at December 31, 2023. The decrease in the business lending portfolio compared to September 30, 2024 is primarily driven by loan amortization in owner-occupied commercial real estate, partially offset by increased loan production by our Commercial and Industrial Division. The decrease in the business lending portfolio compared to December 31, 2023 is primarily driven by loan amortization consistent with our strategy of optimizing the balance sheet, partially offset by conversions of construction and development loans to owner-occupied loans upon completion of construction. 

 

Nonowner-occupied loans totaled $495.3 million at December 31, 2024a decrease of $4.0 million, or 0.8%, compared to $499.3 million at September 30, 2024, and an increase of $7.2 million, or 1.5%, compared to $488.1 million at December 31, 2023. The decrease in nonowner-occupied loans compared to September 30, 2024 is due to loan amortization and aligns with our strategy to optimize the mix of the portfolio. The increase in nonowner-occupied loans compared to December 31, 2023 is primarily due to a reclassification of a $15.9 million multifamily loan to a nonowner-occupied loan and conversions of construction and development loans to nonowner-occupied loans upon completion of construction, partially offset by loan amortization.

 

Construction and development loans totaled $154.6 million at December 31, 2024a decrease of $12.4 million, or 7.4%, compared to $167.0 million at September 30, 2024, and a decrease of $35.8 million, or 18.8%, compared to $190.4 million at December 31, 2023. The decrease in construction and development loans compared to September 30, 2024 and December 31, 2023 is primarily due to conversions to permanent loans upon completion of construction.

 

Credit Quality

 

Nonperforming loans were $8.8 million, or 0.42% of total loans, at December 31, 2024an increase of $4.7 million compared to $4.1 million, or 0.19% of total loans, at September 30, 2024, and an increase of $3.0 million compared to $5.8 million, or 0.26% of total loans, at December 31, 2023. The increase in nonperforming loans compared to September 30, 2024 is mainly attributable to one nonowner-occupied commercial real estate relationship totaling $2.4 million, two owner-occupied commercial real estate relationships totaling $1.3 million, and ten 1-4 family loan relationships totaling $1.3 million, partially offset by paydowns.

 

The allowance for credit losses was $26.7 million, or 302.8% and 1.26% of nonperforming and total loans, respectively, at December 31, 2024, compared to $28.1 million, or 682.0% and 1.30% of nonperforming and total loans, respectively, at September 30, 2024, and $30.5 million, or 529.3% and 1.38% of nonperforming and total loans, respectively, at December 31, 2023.

 

Investar recorded a negative provision for credit losses of $0.7 million for the quarter ended December 31, 2024 compared to a negative provision for credit losses of $0.9 million and a provision for credit losses of $0.5 million for the quarters ended September 30, 2024 and December 31, 2023, respectively. The negative provision for credit losses in the quarter ended December 31, 2024 is primarily attributable to a decrease in total loans, aging of existing loans, and an improvement in the economic forecast. The negative provision for credit losses in the quarter ended September 30, 2024 was primarily due to net recoveries of $0.4 million, a decrease in total loans, aging of existing loans, and an improvement in the economic forecast. The provision for credit losses for the quarter ended December 31, 2023 was primarily attributable to loan growth resulting from the purchase of commercial and industrial revolving lines of credit, partially offset by an improvement in the economic forecast.

 

2

 

Deposits

 

Total deposits at December 31, 2024 were $2.35 billion, an increase of $58.5 million, or 2.6%, compared to $2.29 billion at September 30, 2024, and an increase of $90.2 million, or 4.0%, compared to $2.26 billion at December 31, 2023.

 

The following table sets forth the composition of deposits as of the dates indicated (dollars in thousands).

 

                           

Linked Quarter Change

 

Year/Year Change

 

Percentage of Total Deposits

   

12/31/2024

 

9/30/2024

 

12/31/2023

 

$

 

%

 

$

 

%

 

12/31/2024

 

12/31/2023

Noninterest-bearing demand deposits

  $ 432,143     $ 437,734     $ 448,752     $ (5,591 )     (1.3 )%   $ (16,609 )     (3.7 )%     18.4 %     19.9 %

Interest-bearing demand deposits

    554,777       500,345       489,604       54,432       10.9       65,173       13.3       23.7       21.7  

Money market deposits

    191,548       196,710       179,366       (5,162 )     (2.6 )     12,182       6.8       8.2       8.0  

Brokered demand deposits

    47,320                   47,320             47,320             2.0        

Savings deposits

    134,879       128,241       137,606       6,638       5.2       (2,727 )     (2.0 )     5.7       6.1  

Brokered time deposits

    245,520       271,684       269,102       (26,164 )     (9.6 )     (23,582 )     (8.8 )     10.5       11.9  

Time deposits

    739,757       752,694       731,297       (12,937 )     (1.7 )     8,460       1.2       31.5       32.4  

Total deposits

  $ 2,345,944     $ 2,287,408     $ 2,255,727     $ 58,536       2.6 %   $ 90,217       4.0 %     100 %     100 %

 

The increase in interest-bearing demand deposits and savings deposits at December 31, 2024 compared to September 30, 2024 is primarily the result of organic growth. The decrease in noninterest-bearing demand deposits and money market deposits at December 31, 2024 compared to September 30, 2024 is primarily due to customers drawing down on their existing deposit accounts. The decrease in time deposits at December 31, 2024 compared to September 30, 2024 is primarily due to a reduced emphasis on time deposits. Brokered time deposits decreased to $245.5 million at December 31, 2024 from $271.7 million at September 30, 2024. Investar utilizes brokered time deposits, entirely in denominations of less than $250,000, to secure fixed cost funding and reduce short-term borrowings. At December 31, 2024, the balance of brokered time deposits remained below 10% of total assets, and the remaining weighted average duration was approximately seven months with a weighted average rate of 4.99%. Investar utilizes brokered demand deposits when pricing is more favorable than other short-term borrowings. For the quarter ended December 31, 2024, brokered demand deposits had a weighted average rate of 4.43%.

 

The increase in interest-bearing demand deposits, money market deposits, and time deposits at December 31, 2024 compared to December 31, 2023 is primarily the result of organic growth. The decrease in noninterest-bearing demand deposits and savings deposits at December 31, 2024 compared to December 31, 2023 is primarily due to customers drawing down on their existing deposit accounts and shifts into interest-bearing deposit products with higher rates.

 

Stockholders’ Equity

 

Stockholders’ equity was $241.3 million at December 31, 2024a decrease of $4.2 million, or 1.7%, compared to September 30, 2024, and an increase of $14.5 million, or 6.4%, compared to December 31, 2023. The decrease in stockholders’ equity compared to September 30, 2024 is primarily attributable to an increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank’s available for sale securities portfolio, partially offset by net income for the quarter. The increase in stockholders’ equity compared to December 31, 2023 is primarily attributable to net income for the 12 months ended December 31, 2024, partially offset by an increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank’s available for sale securities portfolio.

 

3

 

Net Interest Income

 

Net interest income for the fourth quarter of 2024 totaled $17.5 million, a decrease of $0.4 million, or 2.1%, compared to the third quarter of 2024, and a decrease of $1.0 million, or 5.5%, compared to the fourth quarter of 2023. Total interest income was $35.5 million, $36.8 million and $36.7 million for the quarters ended December 31, 2024September 30, 2024 and December 31, 2023, respectively. Total interest expense was $18.0 million, $19.0 million and $18.2 million for the corresponding periods. Included in net interest income for the quarters ended December 31, 2024September 30, 2024 and December 31, 2023 is $11,000$13,000, and $25,000, respectively, of interest income accretion from the acquisition of loans. Also included in net interest income for the quarters ended December 31, 2024September 30, 2024 and December 31, 2023 are interest recoveries of $11,000$79,000 and $1.1 million, respectively.

 

Investar’s net interest margin was 2.65% for the quarter ended December 31, 2024, compared to 2.67% for the quarter ended September 30, 2024 and 2.72% for the quarter ended December 31, 2023. The decrease in net interest margin for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 was driven by a 13 basis point decrease in the yield on interest-earning assets, partially offset by a 12 basis point decrease in the overall cost of funds. The decrease in net interest margin for the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023 was driven by a nine basis point increase in the overall cost of funds and a two basis point decrease in the yield on interest-earning assets.

 

The yield on interest-earning assets was 5.38% for the quarter ended December 31, 2024, compared to 5.51% for the quarter ended September 30, 2024 and 5.40% for the quarter ended December 31, 2023. The decrease in the yield on interest-earning assets compared to the quarter ended September 30, 2024 was driven by a 17 basis point decrease in the yield on our loan portfolio. The decrease in the yield on interest-earning assets compared to the quarter ended December 31, 2023 was driven by a six basis point decrease in the yield on our loan portfolio.

 

Exclusive of the interest income accretion from the acquisition of loans and interest recoveries, discussed above, adjusted net interest margin decreased to 2.64% for the quarter ended December 31, 2024, compared to 2.66% for the quarter ended September 30, 2024 and increased from 2.56% for the quarter ended December 31, 2023. The adjusted yield on interest-earning assets was 5.37% for the quarter ended December 31, 2024 compared to 5.50% and 5.23% for the quarters ended September 30, 2024 and December 31, 2023, respectively. Refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics.

 

The cost of deposits decreased five basis points to 3.40% for the quarter ended December 31, 2024 compared to 3.45% for the quarter ended September 30, 2024 and increased 23 basis points compared to 3.17% for the quarter ended December 31, 2023. The decrease in the cost of deposits compared to the quarter ended September 30, 2024 resulted primarily from both a lower average balance of, and a decrease in rates paid on, brokered time deposits and a decrease in rates paid on time deposits, partially offset by both a higher average balance of, and an increase in rates paid on, interest-bearing demand deposits. The increase in the cost of deposits compared to the quarter ended December 31, 2023 resulted primarily from both a higher average balance of, and an increase in rates paid on, interest-bearing demand deposits and an increase in rates paid on time deposits, partially offset by both a lower average balance of, and a decrease in rates paid on, brokered time deposits.

 

The cost of short-term borrowings decreased 68 basis points to 3.91% for the quarter ended December 31, 2024 compared to 4.59% for the quarter ended September 30, 2024 and decreased 93 basis points compared to 4.84% for the quarter ended December 31, 2023. Beginning in the second quarter of 2023, the Bank began utilizing the BTFP to secure fixed rate funding for up to a one-year term and reduce short-term Federal Home Loan Bank (“FHLB”) advances, which are priced daily. The Bank utilized this source of funding due to its lower rate as compared to FHLB advances, the ability to prepay the obligations without penalty, and as a means to lock in funding. During the fourth quarter of 2024, the Bank repaid all of the remaining $109.0 million in borrowings under the BTFP. The decrease in the cost of short-term borrowings compared to the quarter ended September 30, 2024 resulted primarily from a lower average balance of borrowings under the BTFP. The decrease in the cost of short-term borrowings compared to the quarter ended December 31, 2023 resulted primarily from both a lower average balance of, and a decrease in rates paid on, borrowings under the BTFP, which were driven by a decrease in the Federal Reserve’s federal funds rate.

 

The overall cost of funds for the quarter ended December 31, 2024 decreased 12 basis points to 3.49% compared to 3.61% for the quarter ended September 30, 2024 and increased nine basis points compared to 3.40% for the quarter ended December 31, 2023. The decrease in the cost of funds for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 resulted from a decrease in the cost of deposits and both a decrease in the average balance of, and a decrease in the cost of short-term borrowings, partially offset by a higher average balance of deposits. The increase in the cost of funds for the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023 resulted from both a higher average balance of, and an increase in the cost of deposits, partially offset by both a lower average balance of, and a decrease in the cost of short-term borrowings.

 

4

 

Noninterest Income

 

Noninterest income for the fourth quarter of 2024 totaled $5.2 million, an increase of $1.6 million, or 45.7%, compared to the third quarter of 2024 and an increase of $3.4 million, or 194.2%, compared to the fourth quarter of 2023.

 

The increase in noninterest income compared to the quarter ended September 30, 2024 is driven by a $3.1 million increase in income from BOLI, partially offset by a $1.1 million decrease in income from legal settlement and a $0.4 million increase in loss on call or sale of investment securities. During the fourth quarter, the Bank received BOLI death benefit proceeds totaling $5.5 million and recorded $3.1 million in income from BOLI. During the third quarter, Investar recorded $1.1 million in income from a legal settlement related to one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida. 

 

The increase in noninterest income compared to the quarter ended December 31, 2023 is driven by a $3.2 million increase in income from BOLI, a $0.1 million increase in change in the fair value of equity securities, and a $0.1 million increase in other operating income. The increase in other operating income is primarily attributable to a $0.1 million increase in distributions from investments.

 

Noninterest Expense

 

Noninterest expense for the fourth quarter of 2024 totaled $16.1 million, a decrease of $0.1 million, or 0.6%, compared to the third quarter of 2024, and an increase of $0.6 million, or 4.1%compared to the fourth quarter of 2023

 

The decrease in noninterest expense for the quarter ended December 31, 2024 compared to the quarter ended September 30, 2024 was driven by a $0.2 million decrease in salaries and employee benefits and a $0.1 million decrease in other operating expenses, partially offset by a $0.2 million increase in loss on early extinguishment of subordinated debt. The decrease in salaries and employee benefits was primarily due to decreases in salaries expense and deferred compensation expense, partially offset by an increase in health insurance claims. During the fourth quarter of 2024, Investar redeemed $20.0 million in principal amount of our 2029 Notes and recognized a loss on early extinguishment of subordinated debt of $0.2 million primarily consisting of unamortized deferred financing costs. The decrease in other operating expenses is primarily due to a decrease in collection and repossession expenses and Federal Deposit Insurance Corporation (“FDIC”) assessments, partially offset by an increase in charitable contributions. 

 

The increase in noninterest expense for the quarter ended December 31, 2024 compared to the quarter ended December 31, 2023 was driven by a $0.8 million increase in salaries and employee benefits and a $0.2 million increase in loss on early extinguishment of subordinated debt, partially offset by a $0.2 million decrease in depreciation and amortization and a $0.2 million decrease in other operating expenses. The increase in salaries and employee benefits is primarily due to investment in people with an emphasis on our Texas markets to remix and strengthen our balance sheet and an increase in incentive-based compensation. The decrease in depreciation and amortization is primarily due to the closure of one branch location in the first quarter of 2024. The decrease in other operating expenses is primarily due to a decrease in bank shares tax and a decrease in other real estate expense, partially offset by an increase in charitable contributions.

 

5

 

Taxes

 

Investar recorded income tax expense of $1.2 million for the quarter ended December 31, 2024, which equates to an effective tax rate of 16.0%an increase from the effective tax rate of 12.7% for the quarter ended September 30, 2024 and a decrease from the effect tax rate of 18.1% for the quarter ended December 31, 2023. The third quarter 2024 effective tax rate reflected a revision to our estimated 2024 annual effective tax rate to account for the projected increase in nontaxable income from BOLI in the fourth quarter of $3.1 million upon receipt of death benefit proceeds.

 

Basic and Diluted Earnings Per Common Share

 

Investar reported basic and diluted earnings per common share of $0.62 and $0.61, respectively, for the quarter ended December 31, 2024, compared to basic and diluted earnings per common share of $0.55 and $0.54, respectively for the quarter ended September 30, 2024, and basic and diluted earnings per common share of $0.36 for the quarter ended December 31, 2023.

 

About Investar Holding Corporation

 

Investar, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, National Association. The Bank currently operates 29 branch locations serving Louisiana, Texas, and Alabama. At December 31, 2024, the Bank had 331 full-time equivalent employees and total assets of $2.7 billion.

 

Non-GAAP Financial Measures

 

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures and ratios include “tangible common equity,” “tangible assets,” “tangible equity to tangible assets,” “tangible book value per common share,” “core noninterest income,” “core earnings before noninterest expense,” “core noninterest expense,” “core earnings before income tax expense,” “core income tax expense,” “core earnings,” “core efficiency ratio,” “core return on average assets,” “core return on average equity,” “core basic earnings per share,” and “core diluted earnings per share.” We also present certain average loan, yield, net interest income and net interest margin data adjusted to show the effects of excluding interest recoveries and interest income accretion from the acquisition of loans. Management believes these non-GAAP financial measures provide information useful to investors in understanding Investar’s financial results, and Investar believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting Investar’s business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and Investar strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.

 

6

 

Forward-Looking and Cautionary Statements

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Investar’s current views with respect to, among other things, future events and financial performance. Investar generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words.

 

Any forward-looking statements contained in this press release are based on the historical performance of Investar and its subsidiaries or on Investar’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by Investar that the future plans, estimates or expectations by Investar will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to Investar’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if Investar’s underlying assumptions prove to be incorrect, Investar’s actual results may vary materially from those indicated in these statements. Investar does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. These factors include, but are not limited to, the following, any one or more of which could materially affect the outcome of future events:

 

 

the significant risks and uncertainties for our business, results of operations and financial condition, as well as our regulatory capital and liquidity ratios and other regulatory requirements caused by business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;

 

 

changes in inflation, interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;

 

 

our ability to successfully execute our near-term strategy to pivot from primarily a growth strategy to a strategy primarily focused on consistent, quality earnings through the optimization of our balance sheet, and our ability to successfully execute a long-term growth strategy;

 

 

our ability to achieve organic loan and deposit growth, and the composition of that growth;

 

 

a reduction in liquidity, including as a result of a reduction in the amount of deposits we hold or other sources of liquidity, which may be caused by, among other things, disruptions in the banking industry similar to those that occurred in early 2023 that caused bank depositors to move uninsured deposits to other banks or alternative investments outside the banking industry;

 

 

our ability to identify and enter into agreements to combine with attractive acquisition candidates, finance acquisitions, complete acquisitions after definitive agreements are entered into, and successfully integrate and grow acquired operations;

 

 

our adoption on January 1, 2023 of ASU 2016-13, and inaccuracy of the assumptions and estimates we make in establishing reserves for credit losses and other estimates;

 

 

changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers;

 

 

changes in the quality and composition of, and changes in unrealized losses in, our investment portfolio, including whether we may have to sell securities before their recovery of amortized cost basis and realize losses;

 

 

the extent of continuing client demand for the high level of personalized service that is a key element of our banking approach as well as our ability to execute our strategy generally;

 

 

our dependence on our management team, and our ability to attract and retain qualified personnel;

 

 

the concentration of our business within our geographic areas of operation in Louisiana, Texas and Alabama;

 

 

increasing costs of complying with new and potential future regulations;

 

 

new or increasing geopolitical tensions, including resulting from wars in Ukraine and Israel and surrounding areas;

 

 

the emergence or worsening of widespread public health challenges or pandemics including COVID-19;

 

 

concentration of credit exposure;

 

 

any deterioration in asset quality and higher loan charge-offs, and the time and effort necessary to resolve problem assets;

 

 

fluctuations in the price of oil and natural gas;

 

 

data processing system failures and errors;

 

 

risks associated with our digital transformation process, including increased risks of cyberattacks and other security breaches and challenges associated with addressing the increased prevalence of artificial intelligence;

 

 

risks of losses resulting from increased fraud attacks against us and others in the financial services industry;

 

 

our potential growth, including our entrance or expansion into new markets, and the need for sufficient capital to support that growth;

 

 

the impact of litigation and other legal proceedings to which we become subject;

 

 

competitive pressures in the commercial finance, retail banking, mortgage lending and consumer finance industries, as well as the financial resources of, and products offered by, competitors;

 

 

the impact of changes in laws and regulations applicable to us, including banking, securities and tax laws and regulations and accounting standards, as well as changes in the interpretation of such laws and regulations by our regulators;

 

 

changes in the scope and costs of FDIC insurance and other coverages;

 

 

governmental monetary and fiscal policies; and

 

 

hurricanes, tropical storms, tropical depressions, floods, winter storms, droughts and other adverse weather events, all of which have affected Investar’s market areas from time to time; other natural disasters; oil spills and other man-made disasters; acts of terrorism; other international or domestic calamities; acts of God; and other matters beyond our control.

 

7

 

These factors should not be construed as exhaustive. Additional information on these and other risk factors can be found in Part I Item 1A. “Risk Factors” and in the “Special Note Regarding Forward-Looking Statements” in Part II Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Investar’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission.

 

For further information contact:

 

Investar Holding Corporation

John Campbell

Executive Vice President and Chief Financial Officer

(225) 227-2215

John.Campbell@investarbank.com

 

8

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

   

As of and for the three months ended

   

12/31/2024

 

9/30/2024

 

12/31/2023

 

Linked Quarter

 

Year/Year

EARNINGS DATA

                                       

Total interest income

  $ 35,505     $ 36,848     $ 36,668       (3.6 )%     (3.2 )%

Total interest expense

    18,022       18,992       18,177       (5.1 )     (0.9 )

Net interest income

    17,483       17,856       18,491       (2.1 )     (5.5 )

Provision for credit losses

    (701 )     (945 )     486       25.8       (244.2 )

Total noninterest income

    5,163       3,544       1,755       45.7       194.2  

Total noninterest expense

    16,079       16,180       15,440       (0.6 )     4.1  

Income before income tax expense

    7,268       6,165       4,320       17.9       68.2  

Income tax expense

    1,161       784       782       48.1       48.5  

Net income

  $ 6,107     $ 5,381     $ 3,538       13.5       72.6  
                                         

AVERAGE BALANCE SHEET DATA

                                       

Total assets

  $ 2,763,734     $ 2,796,969     $ 2,817,388       (1.2 )%     (1.9 )%

Total interest-earning assets

    2,626,533       2,660,011       2,694,474       (1.3 )     (2.5 )

Total loans

    2,129,388       2,159,412       2,214,916       (1.4 )     (3.9 )

Total interest-bearing deposits

    1,881,297       1,813,775       1,824,318       3.7       3.1  

Total interest-bearing liabilities

    2,054,561       2,093,260       2,119,724       (1.8 )     (3.1 )

Total deposits

    2,315,730       2,246,901       2,279,211       3.1       1.6  

Total stockholders’ equity

    247,230       238,778       212,454       3.5       16.4  
                                         

PER SHARE DATA

                                       

Earnings:

                                       

Basic earnings per common share

  $ 0.62     $ 0.55     $ 0.36       12.7 %     72.2 %

Diluted earnings per common share

    0.61       0.54       0.36       13.0       69.4  

Core earnings(1):

                                       

Core basic earnings per common share(1)

    0.66       0.45       0.39       46.7       69.2  

Core diluted earnings per common share(1)

    0.65       0.45       0.39       44.4       66.7  

Book value per common share

    24.55       24.98       23.26       (1.7 )     5.5  

Tangible book value per common share(1)

    20.31       20.73       18.92       (2.0 )     7.3  

Common shares outstanding

    9,828,413       9,827,622       9,748,067       0.0       0.8  

Weighted average common shares outstanding - basic

    9,828,146       9,828,776       9,754,617       0.0       0.8  

Weighted average common shares outstanding - diluted

    9,993,790       9,902,448       9,763,296       0.9       2.4  
                                         

PERFORMANCE RATIOS

                                       

Return on average assets

    0.88 %     0.77 %     0.50 %     14.3 %     76.0 %

Core return on average assets(1)

    0.93       0.63       0.54       47.6       72.2  

Return on average equity

    9.83       8.97       6.61       9.6       48.7  

Core return on average equity(1)

    10.40       7.40       7.16       40.5       45.3  

Net interest margin

    2.65       2.67       2.72       (0.7 )     (2.6 )

Net interest income to average assets

    2.52       2.54       2.60       (0.8 )     (3.1 )

Noninterest expense to average assets

    2.31       2.30       2.17       0.4       6.5  

Efficiency ratio(2)

    71.00       75.61       76.26       (6.1 )     (6.9 )

Core efficiency ratio(1)

    69.41       79.33       74.85       (12.5 )     (7.3 )

Dividend payout ratio

    16.94       19.09       27.78       (11.3 )     (39.0 )

Net charge-offs (recoveries) to average loans

    0.04       (0.02 )           300.0        

 

(1) Non-GAAP financial measure. See reconciliation.

(2) Efficiency ratio represents noninterest expense divided by the sum of net interest income (before provision for credit losses) and noninterest income.

 

9

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Unaudited)

 

   

As of and for the three months ended

   

12/31/2024

 

9/30/2024

 

12/31/2023

 

Linked Quarter

 

Year/Year

ASSET QUALITY RATIOS

                                       

Nonperforming assets to total assets

    0.52 %     0.32 %     0.36 %     62.5 %     44.4 %

Nonperforming loans to total loans

    0.42       0.19       0.26       121.1       61.5  

Allowance for credit losses to total loans

    1.26       1.30       1.38       (3.1 )     (8.7 )

Allowance for credit losses to nonperforming loans

    302.77       682.03       529.32       (55.6 )     (42.8 )
                                         

CAPITAL RATIOS

                                       

Investar Holding Corporation:

                                       

Total equity to total assets

    8.86 %     8.76 %     8.06 %     1.1 %     9.9 %

Tangible equity to tangible assets(1)

    7.44       7.38       6.65       0.9       11.9  

Tier 1 leverage capital

    9.27       8.95       8.35       3.6       11.0  

Common equity tier 1 capital(2)

    10.85       10.33       9.51       5.0       14.1  

Tier 1 capital(2)

    11.26       10.74       9.90       4.8       13.7  

Total capital(2)

    13.14       13.48       12.99       (2.5 )     1.2  

Investar Bank:

                                       

Tier 1 leverage capital

    9.70       10.06       9.81       (3.6 )     (1.1 )

Common equity tier 1 capital(2)

    11.79       12.07       11.64       (2.3 )     1.3  

Tier 1 capital(2)

    11.79       12.07       11.64       (2.3 )     1.3  

Total capital(2)

    12.94       13.26       12.89       (2.4 )     0.4  

 

(1) Non-GAAP financial measure. See reconciliation.

(2) Estimated for December 31, 2024.

 

10

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

(Unaudited)

 

   

December 31, 2024

 

September 30, 2024

 

December 31, 2023

ASSETS

                       

Cash and due from banks

  $ 26,623     $ 28,869     $ 28,285  

Interest-bearing balances due from other banks

    1,299       57,471       3,724  

Cash and cash equivalents

    27,922       86,340       32,009  
                         

Available for sale securities at fair value (amortized cost of $392,564, $399,615, and $419,283, respectively)

    331,121       350,646       361,918  

Held to maturity securities at amortized cost (estimated fair value of $42,144, $18,018, and $20,513, respectively)

    42,687       18,302       20,472  

Loans

    2,125,084       2,155,846       2,210,619  

Less: allowance for credit losses

    (26,721 )     (28,103 )     (30,540 )

Loans, net

    2,098,363       2,127,743       2,180,079  

Equity securities at fair value

    2,593       2,434       1,180  

Nonmarketable equity securities

    16,502       13,951       13,417  

Bank premises and equipment, net of accumulated depreciation of $21,853, $21,275, and $19,476, respectively

    40,705       41,795       44,183  

Other real estate owned, net

    5,218       4,739       4,438  

Accrued interest receivable

    14,423       14,324       14,366  

Deferred tax asset

    17,120       14,719       16,910  

Goodwill and other intangible assets, net

    41,696       41,844       42,320  

Bank-owned life insurance

    59,703       61,667       58,797  

Other assets

    24,759       24,069       25,066  

Total assets

  $ 2,722,812     $ 2,802,573     $ 2,815,155  
                         

LIABILITIES

                       

Deposits

                       

Noninterest-bearing

  $ 432,143     $ 437,734     $ 448,752  

Interest-bearing

    1,913,801       1,849,674       1,806,975  

Total deposits

    2,345,944       2,287,408       2,255,727  

Advances from Federal Home Loan Bank

    67,215       63,500       23,500  

Borrowings under Bank Term Funding Program

          109,000       212,500  

Repurchase agreements

    8,376       12,994       8,633  

Subordinated debt, net of unamortized issuance costs

    16,697       36,494       44,320  

Junior subordinated debt

    8,733       8,709       8,630  

Accrued taxes and other liabilities

    34,551       38,926       35,077  

Total liabilities

    2,481,516       2,557,031       2,588,387  
                         

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; 9,828,413, 9,827,622, and 9,748,067 shares issued and outstanding, respectively

    9,828       9,828       9,748  

Surplus

    146,890       146,393       145,456  

Retained earnings

    132,935       127,860       116,711  

Accumulated other comprehensive loss

    (48,357 )     (38,539 )     (45,147 )

Total stockholders’ equity

    241,296       245,542       226,768  

Total liabilities and stockholders’ equity

  $ 2,722,812     $ 2,802,573     $ 2,815,155  

 

11

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except share data)

(Unaudited)

 

   

For the three months ended

 

For the twelve months ended

    December 31, 2024   September 30, 2024   December 31, 2023   December 31, 2024   December 31, 2023

INTEREST INCOME

                                       

Interest and fees on loans

  $ 31,438     $ 32,764     $ 33,128     $ 128,498     $ 117,892  

Interest on investment securities

                                       

Taxable

    2,709       2,755       2,970       11,047       12,372  

Tax-exempt

    569       228       253       1,249       693  

Other interest income

    789       1,101       317       3,071       2,244  

Total interest income

    35,505       36,848       36,668       143,865       133,201  
                                         

INTEREST EXPENSE

                                       

Interest on deposits

    16,071       15,729       14,584       61,510       42,072  

Interest on borrowings

    1,951       3,263       3,593       12,602       16,609  

Total interest expense

    18,022       18,992       18,177       74,112       58,681  

Net interest income

    17,483       17,856       18,491       69,753       74,520  
                                         

Provision for credit losses

    (701 )     (945 )     486       (3,480 )     (2,000 )

Net interest income after provision for credit losses

    18,184       18,801       18,005       73,233       76,520  
                                         

NONINTEREST INCOME

                                       

Service charges on deposit accounts

    804       828       798       3,241       3,090  

(Loss) gain on call or sale of investment securities, net

    (371 )     1       (322 )     (753 )     (323 )

(Loss) gain on sale or disposition of fixed assets, net

                (39 )     427       (1,323 )

(Loss) gain on sale of other real estate owned, net

    (25 )     (4 )           683       (114 )

Gain on sale of loans

                            75  

Servicing fees and fee income on serviced loans

                2             14  

Interchange fees

    407       403       417       1,615       1,697  

Income from bank owned life insurance

    3,576       459       371       4,886       1,417  

Change in the fair value of equity securities

    159       174       24       413       (65 )

Legal settlement

          1,122             1,122        

Other operating income

    613       561       504       2,571       2,070  

Total noninterest income

    5,163       3,544       1,755       14,205       6,538  

Income before noninterest expense

    23,347       22,345       19,760       87,438       83,058  
                                         

NONINTEREST EXPENSE

                                       

Depreciation and amortization

    736       760       909       3,095       3,780  

Salaries and employee benefits

    9,792       9,982       9,003       38,615       37,143  

Occupancy

    647       652       706       2,576       2,994  

Data processing

    901       880       892       3,611       3,482  

Marketing

    136       121       68       370       302  

Professional fees

    434       473       461       1,797       1,933  

Loss (gain) on early extinguishment of subordinated debt

    210                   (292 )      

Other operating expenses

    3,223       3,312       3,401       13,260       12,996  

Total noninterest expense

    16,079       16,180       15,440       63,032       62,630  

Income before income tax expense

    7,268       6,165       4,320       24,406       20,428  

Income tax expense

    1,161       784       782       4,154       3,750  

Net income

  $ 6,107     $ 5,381     $ 3,538     $ 20,252     $ 16,678  
                                         

EARNINGS PER SHARE

                                       

Basic earnings per common share

  $ 0.62     $ 0.55     $ 0.36     $ 2.06     $ 1.69  

Diluted earnings per common share

    0.61       0.54       0.36       2.04       1.69  

Cash dividends declared per common share

    0.105       0.105       0.10       0.41       0.395  

 

12

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

   

For the three months ended

   

December 31, 2024

 

September 30, 2024

 

December 31, 2023

           

Interest

                 

Interest

                 

Interest

       
   

Average

 

Income/

         

Average

 

Income/

         

Average

 

Income/

       
   

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

Assets

                                                                       

Interest-earning assets:

                                                                       

Loans

  $ 2,129,388     $ 31,438       5.87 %   $ 2,159,412     $ 32,764       6.04 %   $ 2,214,916     $ 33,128       5.93 %

Securities:

                                                                       

Taxable

    389,170       2,709       2.77       396,254       2,755       2.77       427,746       2,970       2.75  

Tax-exempt

    44,544       569       5.08       24,552       228       3.68       28,807       253       3.50  

Interest-bearing balances with banks

    63,431       789       4.95       79,793       1,101       5.49       23,005       317       5.46  

Total interest-earning assets

    2,626,533       35,505       5.38       2,660,011       36,848       5.51       2,694,474       36,668       5.40  

Cash and due from banks

    25,222                       26,121                       27,214                  

Intangible assets

    41,775                       41,927                       42,414                  

Other assets

    98,057                       97,704                       83,447                  

Allowance for credit losses

    (27,853 )                     (28,794 )                     (30,161 )                

Total assets

  $ 2,763,734                     $ 2,796,969                     $ 2,817,388                  
                                                                         

Liabilities and stockholders’ equity

                                                                       

Interest-bearing liabilities:

                                                                       

Deposits:

                                                                       

Interest-bearing demand deposits

  $ 753,477     $ 4,342       2.29 %   $ 676,946     $ 3,440       2.02 %   $ 668,277     $ 2,873       1.71 %

Brokered demand deposits

    1,312       15       4.43                                      

Savings deposits

    130,896       371       1.13       127,536       366       1.14       136,045       318       0.93  

Brokered time deposits

    246,104       3,103       5.02       255,076       3,335       5.20       275,552       3,590       5.17  

Time deposits

    749,508       8,240       4.37       754,217       8,588       4.53       744,444       7,803       4.16  

Total interest-bearing deposits

    1,881,297       16,071       3.40       1,813,775       15,729       3.45       1,824,318       14,584       3.17  

Short-term borrowings

    68,237       671       3.91       207,539       2,396       4.59       218,977       2,672       4.84  

Long-term debt

    105,027       1,280       4.85       71,946       867       4.79       76,429       921       4.78  

Total interest-bearing liabilities

    2,054,561       18,022       3.49       2,093,260       18,992       3.61       2,119,724       18,177       3.40  

Noninterest-bearing deposits

    434,433                       433,126                       454,893                  

Other liabilities

    27,510                       31,805                       30,317                  

Stockholders’ equity

    247,230                       238,778                       212,454                  

Total liability and stockholders’ equity

  $ 2,763,734                     $ 2,796,969                     $ 2,817,388                  

Net interest income/net interest margin

          $ 17,483       2.65 %           $ 17,856       2.67 %           $ 18,491       2.72 %

 

13

INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

   

For the twelve months ended

   

December 31, 2024

 

December 31, 2023

           

Interest

                 

Interest

       
   

Average

 

Income/

         

Average

 

Income/

       
   

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

Assets

                                               

Interest-earning assets:

                                               

Loans

  $ 2,163,161     $ 128,498       5.94 %   $ 2,123,234     $ 117,892       5.55 %

Securities:

                                               

Taxable

    399,855       11,047       2.76       447,442       12,372       2.76  

Tax-exempt

    29,930       1,249       4.17       22,051       693       3.14  

Interest-bearing balances with banks

    56,851       3,071       5.40       38,561       2,244       5.82  

Total interest-earning assets

    2,649,797       143,865       5.43       2,631,288       133,201       5.06  

Cash and due from banks

    25,890                       29,142                  

Intangible assets

    42,006                       42,695                  

Other assets

    95,391                       86,712                  

Allowance for credit losses

    (28,933 )                     (30,242 )                

Total assets

  $ 2,784,151                     $ 2,759,595                  
                                                 

Liabilities and stockholders’ equity

                                               

Interest-bearing liabilities:

                                               

Deposits:

                                               

Interest-bearing demand deposits

  $ 692,390     $ 14,024       2.03 %   $ 688,786     $ 8,941       1.30 %

Brokered demand deposits

    455       22       4.76