false 0001602658 0001602658 2024-10-21 2024-10-21
 

 
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): October 21, 2024
 

 
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. ☐
 

 
 

 
Item 2.02
Results of Operations and Financial Condition.
 
On October 21, 2024, Investar Holding Corporation (the “Company”), the holding company of Investar Bank, National Association (the “Bank”), issued a press release reporting third quarter 2024 results and posted on its website its third 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 October 21, 2024
104
 
The cover page of Investar Holding Corporation’s Form 8-K is formatted in Inline XBRL
 
 

 
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: October 21, 2024
By:
/s/ John J. D’Angelo
   
John J. D’Angelo
   
President and Chief Executive Officer
 
 

Exhibit 99.1

 

For Immediate Release

 

Investar Holding Corporation Announces 2024 Third Quarter Results 

 

BATON ROUGE, LA / ACCESSWIRE / October 21, 2024 / Investar Holding Corporation (“Investar”) (NASDAQ:ISTR), the holding company for Investar Bank, National Association (the “Bank”), today announced financial results for the quarter ended September 30, 2024. Investar reported net income of $5.4 million, or $0.54 per diluted common share, for the third quarter of 2024, compared to net income of $4.1 million, or $0.41 per diluted common share, for the quarter ended June 30, 2024, and net income of $2.8 million, or $0.28 per diluted common share, for the quarter ended September 30, 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. Core earnings exclude certain items including, but not limited to, (gain) loss on call or sale of investment securities, net, loss on sale or disposition of fixed assets, net, loss (gain) on sale of other real estate owned, net, change in the fair value of equity securities, income from a legal settlement, gain on early extinguishment of subordinated debt, and legal settlement expense (refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics).

 

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

 

“Investar had a solid third quarter, and I am pleased with our results as we continued to execute our strategy of consistent, quality earnings through the optimization of our balance sheet. Our net interest margin improved to 2.67% as we remained focused on originating higher yielding loans and securing lower cost funding sources that are accretive to our margin. During the third quarter, we originated and renewed loans, 77% of which were variable-rate loans, at an 8.5% blended interest rate. Book value per common share and tangible book value per common share reached record highs of $24.98 and $20.73, respectively, at September 30, 2024. Our GAAP and core metrics for diluted earnings per share, return on average assets, and efficiency ratio also improved from the prior quarter

 

Our efforts to focus on underwriting high quality credits that are less susceptible to the effects of a potential economic downturn are producing results. Credit quality continued to strengthen as nonperforming loans were only $4.1 million, or 0.19% of total loans at September 30, 2024.

 

Finally, I could not be more confident about the future of Investar. We have worked hard to optimize our asset mix and funding sources, and, as a result, we believe our liability sensitive balance sheet positions us well to benefit from potential additional rate cuts. Additionally, we are continually evaluating opportunities to optimize our physical branch and ATM footprint to deliver products and services to our customers more efficiently to improve our financial performance over time.

 

As always, we remain focused on shareholder value and returning capital to shareholders. We repurchased 2,000 shares of our common stock during the third quarter at an average price of $18.50 per share and increased our quarterly dividend per share by 5% compared to the second quarter.”

 

Third Quarter Highlights

 

 

Return on average assets increased to 0.77% for the quarter ended September 30, 2024 compared to 0.59% for the quarter ended June 30, 2024. Core return on average assets improved to 0.63% for the quarter ended September 30, 2024 compared to 0.52% for the quarter ended June 30, 2024.

 

 

Net interest margin improved to 2.67% for the quarter ended September 30, 2024 compared to 2.62% for the quarter ended June 30, 2024.

 

 

Credit quality continued to strengthen with nonperforming loans improving to 0.19% of total loans at September 30, 2024 compared to 0.23% at June 30, 2024.

 

 

Consistent with our strategy of optimizing the balance sheet, total loans decreased $10.9 million, or 0.5%, to $2.16 billion at September 30, 2024, compared to $2.17 billion at June 30, 2024. As a result of our strategy and net recoveries of $0.4 million, we recognized the benefit of a $0.9 million negative provision for credit losses.

 

 

Variable-rate loans represented 30% of total loans at both September 30, 2024 and June 30, 2024. During the third quarter, we originated and renewed loans, 77% of which were variable-rate loans, at an 8.5% blended interest rate.

 

 

The yield on the loan portfolio increased to 6.04% for the quarter ended September 30, 2024 compared to 5.96% for the quarter ended June 30, 2024.

 

 

Book value per common share increased to $24.98 at September 30, 2024, or 6.7%, compared to $23.42 at June 30, 2024. Tangible book value per common share increased to $20.73 at September 30, 2024, or 8.3%, compared to $19.15 at June 30, 2024.

 

 

Total deposits increased $77.2 million, or 3.5%, to $2.29 billion at September 30, 2024, compared to $2.21 billion at June 30, 2024

 

 

During the quarter ended September 30, 2024, Investar recorded $1.1 million in noninterest 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.

 

 

Investar repurchased 2,000 shares of its common stock through its stock repurchase program at an average price of $18.50 per share during the quarter ended September 30, 2024, leaving 495,645 shares authorized for repurchase under the program at September 30, 2024.

 

 

 

Loans

 

Total loans were $2.16 billion at September 30, 2024a decrease of $10.9 million, or 0.5%, compared to June 30, 2024, and an increase of $52.8 million, or 2.5%, compared to September 30, 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

   

9/30/2024

 

6/30/2024

 

9/30/2023

 

$

 

%

 

$

 

%

 

9/30/2024

 

9/30/2023

Mortgage loans on real estate

                                                                       

Construction and development

  $ 166,954     $ 177,840     $ 211,390     $ (10,886 )     (6.1 )%   $ (44,436 )     (21.0 )%     7.7 %     10.0 %

1-4 Family

    403,097       414,756       415,162       (11,659 )     (2.8 )     (12,065 )     (2.9 )     18.7       19.7  

Multifamily

    85,283       104,269       102,974       (18,986 )     (18.2 )     (17,691 )     (17.2 )     4.0       4.9  

Farmland

    7,173       7,542       8,259       (369 )     (4.9 )     (1,086 )     (13.1 )     0.3       0.4  

Commercial real estate

                                                                       

Owner-occupied

    467,467       453,456       440,208       14,011       3.1       27,259       6.2       21.7       20.9  

Nonowner-occupied

    499,274       489,984       501,649       9,290       1.9       (2,375 )     (0.5 )     23.2       23.9  

Commercial and industrial

    515,273       507,822       411,290       7,451       1.5       103,983       25.3       23.9       19.6  

Consumer

    11,325       11,090       12,090       235       2.1       (765 )     (6.3 )     0.5       0.6  

Total loans

  $ 2,155,846     $ 2,166,759     $ 2,103,022     $ (10,913 )     (0.5 )%   $ 52,824       2.5 %     100 %     100 %

 

At September 30, 2024, the Bank’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $982.7 million, an increase of $21.5 million, or 2.2%, compared to $961.3 million at June 30, 2024, and an increase of $131.2 million, or 15.4%, compared to $851.5 million at September 30, 2023. The increase in the business lending portfolio compared to June 30, 2024 is primarily driven by conversions of construction and development loans to owner-occupied loans upon completion of construction and increased loan production by our Commercial and Industrial Division, partially offset by loan amortization. The increase in the business lending portfolio compared to September 30, 2023 is primarily driven by our purchase of commercial and industrial revolving lines of credit with an unpaid principal balance of $127.0 million during the fourth quarter of 2023.

 

Nonowner-occupied loans totaled $499.3 million at September 30, 2024an increase of $9.3 million, or 1.9%, compared to $490.0 million at June 30, 2024, and a decrease of $2.4 million, or 0.5%, compared to $501.6 million at September 30, 2023. The increase in nonowner-occupied loans compared to June 30, 2024 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. The decrease in nonowner-occupied loans compared to September 30, 2023 is primarily due to loan amortization, partially offset by the 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. 

 

Construction and development loans totaled $167.0 million at September 30, 2024a decrease of $10.9 million, or 6.1%, compared to $177.8 million at June 30, 2024, and a decrease of $44.4 million, or 21.0%, compared to $211.4 million at September 30, 2023. The decrease in construction and development loans compared to June 30, 2024 is primarily due to conversions to permanent loans upon completion of construction, partially offset by the utilization of credit lines. The decrease in construction and development loans compared to September 30, 2023 is primarily due to conversions to permanent loans upon completion of construction.

 

Credit Quality

 

Nonperforming loans were $4.1 million, or 0.19% of total loans, at September 30, 2024a decrease of $0.9 million compared to $5.0 million, or 0.23% of total loans, at June 30, 2024, and a decrease of $1.5 million compared to $5.6 million, or 0.27% of total loans, at September 30, 2023. The decrease in nonperforming loans compared to June 30, 2024 is mainly attributable to paydowns

 

The allowance for credit losses was $28.1 million, or 682.0% and 1.30% of nonperforming and total loans, respectively, at September 30, 2024, compared to $28.6 million, or 576.4% and 1.32% of nonperforming and total loans, respectively, at June 30, 2024, and $29.8 million, or 534.1% and 1.42% of nonperforming and total loans, respectively, at September 30, 2023

 

Investar recorded a negative provision for credit losses of $0.9 million for the quarter ended September 30, 2024 compared to negative provisions for credit losses of $0.4 million and $34,000 for the quarters ended June 30, 2024 and September 30, 2023, respectively. 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 negative provision for credit losses in the quarter ended June 30, 2024 was primarily due to a decrease in total loans and aging of existing loansThe negative provision for credit losses for the quarter ended September 30, 2023 was primarily due to net recoveries.

 

 

 

Deposits

 

Total deposits at September 30, 2024 were $2.29 billion, an increase of $77.2 million, or 3.5%, compared to $2.21 billion at June 30, 2024, and an increase of $78.0 million, or 3.5%, compared to $2.21 billion at September 30, 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

   

9/30/2024

 

6/30/2024

 

9/30/2023

 

$

 

%

 

$

 

%

 

9/30/2024

 

9/30/2023

Noninterest-bearing demand deposits

  $ 437,734     $ 436,571     $ 459,519     $ 1,163       0.3 %   $ (21,785 )     (4.7 )%     19.1 %     20.8 %

Interest-bearing demand deposits

    500,345       467,184       482,706       33,161       7.1       17,639       3.7       21.9       21.8  

Money market deposits

    196,710       177,191       186,478       19,519       11.0       10,232       5.5       8.6       8.4  

Savings deposits

    128,241       128,583       131,743       (342 )     (0.3 )     (3,502 )     (2.7 )     5.6       6.0  

Brokered time deposits

    271,684       249,354       197,747       22,330       9.0       73,937       37.4       11.9       9.0  

Time deposits

    752,694       751,319       751,240       1,375       0.2       1,454       0.2       32.9       34.0  

Total deposits

  $ 2,287,408     $ 2,210,202     $ 2,209,433     $ 77,206       3.5 %   $ 77,975       3.5 %     100 %     100 %

 

The increase in noninterest-bearing demand deposits, interest-bearing demand deposits, money market deposits and time deposits at September 30, 2024 compared to June 30, 2024 is primarily the result of organic growth. Brokered time deposits increased to $271.7 million at September 30, 2024 from $249.4 million at June 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 September 30, 2024, the balance of brokered time deposits remained below 10% of total assets, and the remaining weighted average duration was approximately nine months with a weighted average rate of 5.07%. 


The increase in interest-bearing demand deposits, money market deposits, and time deposits at September 30, 2024 compared to September 30, 2023 is primarily the result of organic growth resulting from a deposit campaign. The decrease in noninterest-bearing demand deposits and savings deposits at September 30, 2024 compared to September 30, 2023 is primarily due to customers drawing down on their existing deposit accounts and shifts into interest-bearing deposit products with higher rates. Brokered time deposits increased to $271.7 million at September 30, 2024 from $197.7 million at September 30, 2023We utilized shorter term brokered time deposits, which were laddered to provide flexibility, to fund a portion of the purchase of commercial and industrial revolving lines of credit with an unpaid principal balance of $127.0 million in the fourth quarter of 2023.

 

Stockholders Equity 

 

Stockholders’ equity was $245.5 million at September 30, 2024an increase of $15.3 million compared to June 30, 2024, and an increase of $36.8 million compared to September 30, 2023The increase in stockholders’ equity compared to June 30, 2024 is primarily attributable to a decrease in accumulated other comprehensive loss due to an increase in the fair value of the Bank’s available for sale securities portfolio and net income for the quarter. The increase in stockholders’ equity compared to September 30, 2023 is primarily attributable to a decrease in accumulated other comprehensive loss due to an increase in the fair value of the Bank’s available for sale securities portfolio and net income for the last twelve months.

 

 

 

Net Interest Income

 

Net interest income for the third quarter of 2024 totaled $17.9 million, an increase of $0.7 million, or 3.8%, compared to the second quarter of 2024, and an increase of $0.4 million, or 2.2%, compared to the third quarter of 2023. Total interest income was $36.8 million, $35.8 million and $33.2 million for the quarters ended September 30, 2024June 30, 2024 and September 30, 2023, respectively. Total interest expense was $19.0 million, $18.6 million and $15.7 million for the corresponding periods. Included in net interest income for the quarters ended September 30, 2024, June 30, 2024 and September 30, 2023 is $13,000$18,000, and $36,000, respectively, of interest income accretion from the acquisition of loans. Also included in net interest income for the quarters ended September 30, 2024, June 30, 2024 and September 30, 2023 are interest recoveries of $79,000$44,000 and $0.1 million, respectively.

 

Investar’s net interest margin was 2.67% for the quarter ended September 30, 2024, compared to 2.62% for the quarter ended June 30, 2024 and 2.66% for the quarter ended September 30, 2023. The increase in net interest margin for the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024 was driven by a six basis point increase in the yield on interest-earning assets, partially offset by a three basis point increase in the overall cost of funds. The increase in net interest margin for the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023 was driven by a 46 basis point increase in the yield on interest-earning assets, partially offset by a 54 basis point increase in the overall cost of funds.

 

The yield on interest-earning assets was 5.51% for the quarter ended September 30, 2024, compared to 5.45% for the quarter ended June 30, 2024 and 5.05% for the quarter ended September 30, 2023. The increase in the yield on interest-earning assets compared to the quarter ended June 30, 2024 was primarily attributable to an eight basis point increase in the yield on the loan portfolio. The increase in the yield on interest-earning assets compared to the quarter ended September 30, 2023 was primarily driven by a 51 basis point increase in the yield on the loan portfolio.

 

Exclusive of the interest income accretion from the acquisition of loans and interest recoveries, adjusted net interest margin was 2.66% for the quarter ended September 30, 2024, compared to 2.61% for the quarter ended June 30, 2024 and 2.64% for the quarter ended September 30, 2023. The adjusted yield on interest-earning assets was 5.50% for the quarter ended September 30, 2024 compared to 5.44% and 5.03% for the quarters ended June 30, 2024 and September 30, 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 increased seven basis points to 3.45% for the quarter ended September 30, 2024 compared to 3.38% for the quarter ended June 30, 2024 and increased 72 basis points compared to 2.73% for the quarter ended September 30, 2023. The increase in the cost of deposits compared to the quarter ended June 30, 2024 resulted primarily from both a higher average balance of, and an increase in rates paid on, time deposits and interest-bearing demand deposits and a higher average balance of brokered time deposits. The increase in the cost of deposits compared to the quarter ended September 30, 2023 resulted from both a higher average balance of, and an increase in rates paid on, interest-bearing demand deposits, brokered time deposits and time deposits and an increase in rates paid on savings deposits. 

 

The cost of short-term borrowings decreased nine basis points to 4.59% for the quarter ended September 30, 2024 compared to 4.68% for the quarter ended June 30, 2024 and decreased 38 basis points compared to 4.97% for the quarter ended September 30, 2023. Beginning in the second quarter of 2023, the Bank began utilizing the Federal Reserve’s Bank Term Funding Program (“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. The decrease in the cost of short-term borrowings compared to the quarter ended June 30, 2024 resulted primarily from utilization of FHLB advances during the quarter ended June 30, 2024. The decrease in the cost of short-term borrowings compared to the quarter ended September 30, 2023 resulted primarily from the refinancing of borrowings under the BTFP at lower rates during the first quarter of 2024.

 

The overall cost of funds for the quarter ended September 30, 2024 increased three basis points to 3.61% compared to 3.58% for the quarter ended June 30, 2024 and increased 54 basis points compared to 3.07% for the quarter ended September 30, 2023. The increase in the cost of funds for the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024 resulted from a higher average balance of, and an increase in the cost of deposits, partially offset by a lower average balance of, and a decrease in the cost of short-term borrowings. The increase in the cost of funds for the quarter ended September 30, 2024 compared to the quarter ended September 30, 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.

 

Noninterest Income

 

Noninterest income for the third quarter of 2024 totaled $3.5 million, an increase of $0.8 million, or 28.9%, compared to the second quarter of 2024 and an increase of $1.9 million, or 116.5%, compared to the third quarter of 2023.

 

The increase in noninterest income compared to the quarter ended June 30, 2024 is driven by $1.1 million in income from a legal settlement recorded in the third quarter of 2024 related to one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida, a $0.4 million decrease in loss on call or sale of investment securities, and a $0.2 million increase in the change in fair value of equity securities, partially offset by a $0.7 million decrease in gain on sale of other real estate owned and a $0.2 million decrease in other operating income. The decrease in the gain on sale of other real estate owned resulted primarily from the sale of a property during the second quarter of 2024 related to one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida. The decrease in other operating income is primarily attributable to a $0.2 million decrease in derivative fee income.

 

The increase in noninterest income compared to the quarter ended September 30, 2023 is primarily attributable to $1.1 million in income from a legal settlement recorded in the third quarter of 2024, discussed above, a $0.4 million decrease in the loss on sale or disposition of fixed assets, a $0.2 million increase in the change in fair value of equity securities, a $0.1 million increase in income from bank owned life insurance, and a $0.2 million increase in other operating income. The decrease in the loss on sale or disposition of fixed assets resulted primarily from the disposition of automated teller machines and a reclassification of bank premises and equipment to other real estate owned during the third quarter of 2023. The increase in other operating income is primarily attributable to a $0.2 million increase in the change in the net asset value of other investments. 

 

We project that our noninterest income in the fourth quarter of 2024 will include approximately $3.1 million in nontaxable income from bank owned life insurance upon receipt of death benefit proceeds.

 

 

 

Noninterest Expense

 

Noninterest expense for the third quarter of 2024 totaled $16.2 million, an increase of $0.7 million, or 4.5%, compared to the second quarter of 2024, and an increase of $0.4 million, or 2.6%, compared to the third quarter of 2023

 

The increase in noninterest expense for the quarter ended September 30, 2024 compared to the quarter ended June 30, 2024 was primarily driven by a $0.4 million increase in salaries and employee benefits, a $0.3 million decrease in gain on early extinguishment of subordinated debt, and a $0.1 million increase in other operating expense. 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 health insurance claims. During the second quarter of 2024, Investar repurchased $5.0 million in principal amount of our 5.125% Fixed-to-Floating Rate Subordinated Notes due 2029 and $2.0 million of our 5.125% Fixed-to-Floating Rate Subordinated Notes due 2032 and recognized a gain on early extinguishment of subordinated debt of $0.3 million. The increase in other operating expense resulted from $0.3 million in collection and repossession expenses related to the income from the legal settlement discussed above and a $0.1 million increase in Federal Deposit Insurance Corporation (“FDIC”) assessments, partially offset by a $0.2 million decrease in other real estate owned expense and a $0.1 million decrease in branch services expense.

 

The increase in noninterest expense for the quarter ended September 30, 2024 compared to the quarter ended September 30, 2023 was primarily driven by a $0.5 million increase in salaries and employee benefits, partially offset by a $0.1 million decrease in depreciation and amortization. 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 deferred compensation expense, partially offset by a decrease in health insurance claims and severance expense. The decrease in depreciation and amortization is primarily due to the closure of one branch location in the first quarter of 2024. The increase in other operating expense resulted primarily from $0.3 million in collection and repossession expenses related to the income from the legal settlement discussed above and a $0.1 million increase in FDIC assessments, partially offset by a $0.2 million decrease in other real estate owned expense, a $0.1 million decrease in branch services expense, and a $0.1 million decrease in bank shares tax.

 

Taxes

 

Investar recorded an income tax expense of $0.8 million for the quarter ended September 30, 2024, which equates to an effective tax rate of 12.7%, compared to effective tax rates of 17.0% and 17.4% for the quarters ended June 30, 2024 and September 30, 2023, respectively. The third quarter 2024 effective tax rate reflects a revision to our estimated 2024 annual effective tax rate to account for our projected increase in nontaxable income from bank owned life insurance in the fourth quarter of approximately $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 $0.55 and $0.54, respectively, for the quarter ended September 30, 2024, compared to basic and diluted earnings per common share of $0.41 for the quarter ended June 30, 2024, and basic and diluted earnings per common share of $0.28 for the quarter ended September 30, 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 28 branch locations serving Louisiana, Texas, and Alabama. At September 30, 2024, the Bank had 331 full-time equivalent employees and total assets of $2.8 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.

 

 

 

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 continue to successfully execute the pivot of our near-term strategy 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;

 

 

potential impairment of our goodwill and other intangible assets;

 

 

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.

 

 

 

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

 

 

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

   

As of and for the three months ended

   

9/30/2024

 

6/30/2024

 

9/30/2023

 

Linked Quarter

 

Year/Year

EARNINGS DATA

                                       

Total interest income

  $ 36,848     $ 35,790     $ 33,160       3.0 %     11.1 %

Total interest expense

    18,992       18,592       15,691       2.2       21.0  

Net interest income

    17,856       17,198       17,469       3.8       2.2  

Provision for credit losses

    (945 )     (415 )     (34 )     (127.7 )     (2,679.4 )

Total noninterest income

    3,544       2,750       1,637       28.9       116.5  

Total noninterest expense

    16,180       15,477       15,774       4.5       2.6  

Income before income tax expense

    6,165       4,886       3,366       26.2       83.2  

Income tax expense

    784       829       585       (5.4 )     34.0  

Net income

  $ 5,381     $ 4,057     $ 2,781       32.6       93.5  
                                         

AVERAGE BALANCE SHEET DATA

                                       

Total assets

  $ 2,796,969     $ 2,773,792     $ 2,736,358       0.8 %     2.2 %

Total interest-earning assets

    2,660,011       2,643,232       2,603,837       0.6       2.2  

Total loans

    2,159,412       2,168,762       2,072,617       (0.4 )     4.2  

Total interest-bearing deposits

    1,813,775       1,770,985       1,707,848       2.4       6.2  

Total interest-bearing liabilities

    2,093,260       2,090,296       2,026,587       0.1       3.3  

Total deposits

    2,246,901       2,196,949       2,170,373       2.3       3.5  

Total stockholders’ equity

    238,778       227,537       220,393       4.9       8.3  
                                         

PER SHARE DATA

                                       

Earnings:

                                       

Basic earnings per common share

  $ 0.55     $ 0.41     $ 0.28       34.1 %     96.4 %

Diluted earnings per common share

    0.54       0.41       0.28       31.7       92.9  

Core Earnings(1):

                                       

Core basic earnings per common share(1)

    0.45       0.36       0.33       25.0       36.4  

Core diluted earnings per common share(1)

    0.45       0.36       0.33       25.0       36.4  

Book value per common share

    24.98       23.42       21.34       6.7       17.1  

Tangible book value per common share(1)

    20.73       19.15       17.00       8.3       21.9  

Common shares outstanding

    9,827,622       9,828,825       9,779,688       (0.0 )     0.5  

Weighted average common shares outstanding - basic

    9,828,776       9,827,903       9,814,727       0.0       0.1  

Weighted average common shares outstanding - diluted

    9,902,448       9,902,170       9,817,607       0.0       0.9  
                                         

PERFORMANCE RATIOS

                                       

Return on average assets

    0.77 %     0.59 %     0.40 %     30.5 %     92.5 %

Core return on average assets(1)

    0.63       0.52       0.47       21.2       34.0  

Return on average equity

    8.97       7.17       5.01       25.1       79.0  

Core return on average equity(1)

    7.40       6.31       5.87       17.3       26.1  

Net interest margin

    2.67       2.62       2.66       1.9       0.4  

Net interest income to average assets

    2.54       2.49       2.53       2.0       0.4  

Noninterest expense to average assets

    2.30       2.24       2.29       2.7       0.4  

Efficiency ratio(2)

    75.61       77.59       82.56       (2.6 )     (8.4 )

Core efficiency ratio(1)

    79.33       80.24       79.98       (1.1 )     (0.8 )

Dividend payout ratio

    19.09       24.39       35.71       (21.7 )     (46.5 )

Net (recoveries) charge-offs to average loans

    (0.02 )     0.01       (0.01 )     (300.0 )     (100.0 )

 

(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.

 

 

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Unaudited)

 

   

As of and for the three months ended

   

9/30/2024

 

6/30/2024

 

9/30/2023

 

Linked Quarter

 

Year/Year

ASSET QUALITY RATIOS

                                       

Nonperforming assets to total assets

    0.32 %     0.30 %     0.36 %     6.7 %     (11.1 )%

Nonperforming loans to total loans

    0.19       0.23       0.27       (17.4 )     (29.6 )

Allowance for credit losses to total loans

    1.30       1.32       1.42       (1.5 )     (8.5 )

Allowance for credit losses to nonperforming loans

    682.03       576.38       534.08       18.3       27.7  
                                         

CAPITAL RATIOS

                                       

Investar Holding Corporation:

                                       

Total equity to total assets

    8.76 %     8.26 %     7.48 %     6.1 %     17.1 %

Tangible equity to tangible assets(1)

    7.38       6.85       6.05       7.6       21.9  

Tier 1 leverage capital

    8.95       8.81       8.53       1.6       4.9  

Common equity tier 1 capital(2)

    10.33       10.02       9.40       3.1       9.9  

Tier 1 capital(2)

    10.74       10.42       9.79       3.1       9.7  

Total capital(2)

    13.48       13.16       12.87       2.4       4.7  

Investar Bank:

                                       

Tier 1 leverage capital

    10.06       9.95       10.05       1.1       0.1  

Common equity tier 1 capital(2)

    12.07       11.78       11.53       2.5       4.7  

Tier 1 capital(2)

    12.07       11.78       11.53       2.5       4.7  

Total capital(2)

    13.26       12.98       12.78       2.2       3.8  

 

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

(2) Estimated for September 30, 2024.

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

(Unaudited)

 

   

September 30, 2024

 

June 30, 2024

 

September 30, 2023

ASSETS

                       

Cash and due from banks

  $ 28,869     $ 27,130     $ 27,084  

Interest-bearing balances due from other banks

    57,471       42,542       36,584  

Cash and cash equivalents

    86,340       69,672       63,668  
                         

Available for sale securities at fair value (amortized cost of $399,615, $398,954, and $481,296, respectively)

    350,646       336,616       404,485  

Held to maturity securities at amortized cost (estimated fair value of $18,018, $18,461, and $19,815, respectively)

    18,302       18,457       20,044  

Loans

    2,155,846       2,166,759       2,103,022  

Less: allowance for credit losses

    (28,103 )     (28,620 )     (29,778 )

Loans, net

    2,127,743       2,138,139       2,073,244  

Equity securities at fair value

    2,434       2,260       1,156  

Nonmarketable equity securities

    13,951       13,901       12,178  

Bank premises and equipment, net of accumulated depreciation of $21,275, $20,667, and $21,646, respectively

    41,795       42,383       44,764  

Other real estate owned, net

    4,739       3,372       4,438  

Accrued interest receivable

    14,324       14,186       13,633  

Deferred tax asset

    14,719       17,595       20,989  

Goodwill and other intangible assets, net

    41,844       41,996       42,496  

Bank owned life insurance

    61,667       61,208       58,425  

Other assets

    24,069       27,793       30,013  

Total assets

  $ 2,802,573     $ 2,787,578     $ 2,789,533  
                         

LIABILITIES

                       

Deposits

                       

Noninterest-bearing

  $ 437,734     $ 436,571     $ 459,519  

Interest-bearing

    1,849,674       1,773,631       1,749,914  

Total deposits

    2,287,408       2,210,202       2,209,433  

Advances from Federal Home Loan Bank

    63,500       23,500       23,500  

Borrowings under Bank Term Funding Program

    109,000       229,000       235,800  

Repurchase agreements

    12,994       7,432       13,930  

Subordinated debt, net of unamortized issuance costs

    36,494       36,475       44,296  

Junior subordinated debt

    8,709       8,683       8,602  

Accrued taxes and other liabilities

    38,926       42,090       45,255  

Total liabilities

    2,557,031       2,557,382       2,580,816  
                         

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, 9,828,825, and 9,779,688 shares issued and outstanding, respectively

    9,828       9,829       9,780  

Surplus

    146,393       145,918       145,241  

Retained earnings

    127,860       123,510       114,148  

Accumulated other comprehensive loss

    (38,539 )     (49,061 )     (60,452 )

Total stockholders’ equity

    245,542       230,196       208,717  

Total liabilities and stockholders’ equity

  $ 2,802,573     $ 2,787,578     $ 2,789,533  

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except share data)

(Unaudited)

 

   

For the three months ended

   

September 30, 2024

 

June 30, 2024

 

September 30, 2023

INTEREST INCOME

                       

Interest and fees on loans

  $ 32,764     $ 32,161     $ 28,892  

Interest on investment securities

                       

Taxable

    2,755       2,766       3,055  

Tax-exempt

    228       214       216  

Other interest income

    1,101       649       997  

Total interest income

    36,848       35,790       33,160  
                         

INTEREST EXPENSE

                       

Interest on deposits

    15,729       14,865       11,733  

Interest on borrowings

    3,263       3,727       3,958  

Total interest expense

    18,992       18,592       15,691  

Net interest income

    17,856       17,198       17,469  
                         

Provision for credit losses

    (945 )     (415 )     (34 )

Net interest income after provision for credit losses

    18,801       17,613       17,503  
                         

NONINTEREST INCOME

                       

Service charges on deposit accounts

    828       799       806  

Gain (loss) on call or sale of investment securities, net

    1       (383 )      

Loss on sale or disposition of fixed assets, net

                (367 )

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

    (4 )     712       23  

Servicing fees and fee income on serviced loans

                2  

Interchange fees

    403       410       399  

Income from bank owned life insurance

    459       463       357  

Change in the fair value of equity securities

    174             22  

Legal settlement

    1,122              

Other operating income

    561       749       395  

Total noninterest income

    3,544       2,750       1,637  

Income before noninterest expense

    22,345       20,363       19,140  
                         

NONINTEREST EXPENSE

                       

Depreciation and amortization

    760       787       900  

Salaries and employee benefits

    9,982       9,593       9,463  

Occupancy

    652       696       618  

Data processing

    880       893       888  

Marketing

    121       72       83  

Professional fees

    473       471       516  

Gain on early extinguishment of subordinated debt

          (287 )      

Other operating expenses

    3,312       3,252       3,306  

Total noninterest expense

    16,180       15,477       15,774  

Income before income tax expense

    6,165       4,886       3,366  

Income tax expense

    784       829       585  

Net income

  $ 5,381     $ 4,057     $ 2,781  
                         

EARNINGS PER SHARE

                       

Basic earnings per share

  $ 0.55     $ 0.41     $ 0.28  

Diluted earnings per share

    0.54       0.41       0.28  

Cash dividends declared per common share

    0.105       0.10       0.10  

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

   

For the three months ended

   

September 30, 2024

 

June 30, 2024

 

September 30, 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

  $ 2,159,412     $ 32,764       6.04 %   $ 2,168,762     $ 32,161       5.96 %   $ 2,072,617     $ 28,892       5.53 %

Securities:

                                                                       

Taxable

    396,254       2,755       2.77       403,391       2,766       2.76       442,556       3,055       2.74  

Tax-exempt

    24,552       228       3.68       23,558       214       3.66       25,493       216       3.35  

Interest-bearing balances with banks

    79,793       1,101       5.49       47,521       649       5.50       63,171       997       6.26  

Total interest-earning assets

    2,660,011       36,848       5.51       2,643,232       35,790       5.45       2,603,837       33,160       5.05  

Cash and due from banks

    26,121                       25,974                       27,734                  

Intangible assets

    41,927                       42,082                       42,595                  

Other assets

    97,704                       91,439                       92,108                  

Allowance for credit losses

    (28,794 )                     (28,935 )                     (29,916 )                

Total assets

  $ 2,796,969                     $ 2,773,792                     $ 2,736,358                  
                                                                         

Liabilities and stockholders’ equity

                                                                       

Interest-bearing liabilities:

                                                                       

Deposits:

                                                                       

Interest-bearing demand deposits

  $ 676,946     $ 3,440       2.02 %   $ 658,594     $ 3,083       1.88 %   $ 668,732     $ 2,462       1.46 %

Savings deposits

    127,536       366       1.14       128,957       342       1.07       130,262       179       0.54  

Brokered time deposits

    255,076       3,335       5.20       241,777       3,126       5.20       159,244       1,990       4.96  

Time deposits

    754,217       8,588       4.53       741,657       8,314       4.51       749,610       7,102       3.76  

Total interest-bearing deposits

    1,813,775       15,729       3.45       1,770,985       14,865       3.38       1,707,848       11,733       2.73  

Short-term borrowings

    207,539       2,396       4.59       248,189       2,886       4.68       242,363       3,039       4.97  

Long-term debt

    71,946       867       4.79       71,122       841       4.76       76,376       919       4.77  

Total interest-bearing liabilities

    2,093,260       18,992       3.61       2,090,296       18,592       3.58       2,026,587       15,691       3.07  

Noninterest-bearing deposits

    433,126                       425,964                       462,525                  

Other liabilities

    31,805                       29,995                       26,853                  

Stockholders’ equity

    238,778                       227,537                       220,393                  

Total liability and stockholders’ equity

  $ 2,796,969                     $ 2,773,792                     $ 2,736,358                  

Net interest income/net interest margin

          $ 17,856       2.67 %           $ 17,198       2.62 %           $ 17,469       2.66 %

 

 

 

INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INTEREST EARNED AND YIELD ANALYSIS ADJUSTED FOR INTEREST RECOVERIES AND ACCRETION
(Amounts in thousands)
(Unaudited)

 

   

For the three months ended

   

September 30, 2024

 

June 30, 2024

 

September 30, 2023

           

Interest

                 

Interest

                 

Interest

       
   

Average

 

Income/

         

Average

 

Income/

         

Average

 

Income/

       
   

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

Interest-earning assets:

                                                                       

Loans

  $ 2,159,412     $ 32,764       6.04 %   $ 2,168,762     $ 32,161       5.96 %   $ 2,072,617     $ 28,892       5.53 %

Adjustments:

                                                                       

Interest recoveries

            79                       44                       118          

Accretion

            13                       18                       36          

Adjusted loans

    2,159,412       32,672       6.02       2,168,762       32,099       5.95       2,072,617       28,738       5.50  

Securities:

                                                                       

Taxable

    396,254       2,755       2.77       403,391       2,766       2.76       442,556       3,055       2.74  

Tax-exempt

    24,552       228       3.68       23,558       214       3.66       25,493       216       3.35  

Interest-bearing balances with banks

    79,793       1,101       5.49       47,521       649       5.50       63,171       997       6.26  

Adjusted interest-earning assets

    2,660,011       36,756       5.50       2,643,232       35,728       5.44       2,603,837       33,006       5.03  
                                                                         

Total interest-bearing liabilities

    2,093,260       18,992       3.61       2,090,296       18,592       3.58       2,026,587       15,691       3.07  
                                                                         

Adjusted net interest income/adjusted net interest margin

          $ 17,764       2.66 %           $ 17,136       2.61 %           $ 17,315       2.64 %

 

 

 

INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

 

   

September 30, 2024

 

June 30, 2024

 

September 30, 2023

Tangible common equity

                       

Total stockholders’ equity

  $ 245,542     $ 230,196     $ 208,717  

Adjustments:

                       

Goodwill

    40,088       40,088       40,088  

Core deposit intangible

    1,656       1,808       2,308  

Trademark intangible

    100       100       100  

Tangible common equity

  $ 203,698     $ 188,200     $ 166,221  

Tangible assets

                       

Total assets

  $ 2,802,573     $ 2,787,578     $ 2,789,533  

Adjustments:

                       

Goodwill

    40,088       40,088       40,088  

Core deposit intangible

    1,656       1,808       2,308  

Trademark intangible

    100       100       100  

Tangible assets

  $ 2,760,729     $ 2,745,582     $ 2,747,037  
                         

Common shares outstanding

    9,827,622       9,828,825       9,779,688  

Tangible equity to tangible assets

    7.38 %     6.85 %