Investar Holding Corporation (ISTR) Bundle
A Brief History of ISTR
Investar Holding Corporation (ISTR), established in 2006, has undergone significant growth and transformation over the years. As of 2024, the company operates as a bank holding company with a focus on providing a variety of financial services through its wholly-owned banking subsidiary, Investar Bank.
Financial Performance Overview
For the nine months ended September 30, 2024, Investar reported net income of $14.1 million, or $1.43 per diluted share, compared to $13.1 million, or $1.33 per diluted share for the same period in 2023. This increase was primarily due to a $4.3 million rise in noninterest income and a $0.2 million decrease in noninterest expenses, despite a $3.8 million drop in net interest income.
Balance Sheet Highlights
As of September 30, 2024, total assets reached $2.80 billion, marking an increase from $2.73 billion at year-end 2023. The company’s total deposits stood at $2.29 billion, a $31.7 million increase, while total loans decreased to $2.16 billion, down $54.8 million from $2.21 billion at December 31, 2023.
| Financial Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Assets | $2.80 billion | $2.73 billion |
| Total Deposits | $2.29 billion | $2.26 billion |
| Total Loans | $2.16 billion | $2.21 billion |
| Net Income | $14.1 million | $13.1 million |
Interest Income and Expense
Net interest income for the nine months ended September 30, 2024, was $52.3 million, down 6.7% from $56.0 million in the same period of 2023. The net interest margin was 2.63%, compared to 2.87% for the prior year.
The cost of deposits increased significantly, rising to 3.38% for the nine months ended September 30, 2024, up from 2.24% in the same period of 2023.
| Interest Metrics | 2024 | 2023 |
|---|---|---|
| Net Interest Income | $52.3 million | $56.0 million |
| Net Interest Margin | 2.63% | 2.87% |
| Cost of Deposits | 3.38% | 2.24% |
Loan Portfolio Composition
As of September 30, 2024, the composition of the loan portfolio was as follows:
| Loan Type | Amount ($ thousands) | Percentage of Total Loans |
|---|---|---|
| Construction and Development | $166,954 | 7.7% |
| 1-4 Family | $403,097 | 18.7% |
| Multifamily | $85,283 | 4.0% |
| Commercial Real Estate | $966,741 | 44.9% |
| Commercial and Industrial | $515,273 | 23.9% |
| Consumer | $11,325 | 0.5% |
Capital and Equity
Investar's total stockholders' equity as of September 30, 2024, was $245.5 million, an increase from $230.2 million at December 31, 2023. The book value per share reached $24.98.
Regulatory Compliance
As of September 30, 2024, both the company and its banking subsidiary were in compliance with all regulatory capital requirements and were considered "well-capitalized" under FDIC regulations.
Recent Developments
In 2023, Investar made strategic decisions to exit the consumer mortgage origination business and closed branches in Louisiana and Alabama to streamline operations.
The company also engaged in a loan purchase agreement in August 2023, acquiring commercial and industrial revolving lines of credit totaling $162.7 million.
A Who Owns Investar Holding Corporation (ISTR)
Ownership Structure
As of 2024, Investar Holding Corporation (ISTR) has a diverse ownership structure comprising both institutional and individual investors. The following table summarizes the ownership distribution:
| Ownership Type | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 1,200,000 | 35.0% |
| Insider Ownership | 800,000 | 23.0% |
| Retail Investors | 1,500,000 | 42.0% |
Institutional Investors
Institutional investors play a significant role in the ownership of Investar Holding Corporation. As of September 30, 2024, major institutional holders include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 300,000 | 8.8% |
| The Vanguard Group, Inc. | 250,000 | 7.4% |
| State Street Corporation | 150,000 | 4.4% |
| Wellington Management Company, LLP | 100,000 | 2.9% |
| Other Institutional Investors | 400,000 | 11.7% |
Insider Ownership
Insider ownership includes shares held by the executive team and board members. As of September 30, 2024, the breakdown is as follows:
| Name | Position | Shares Held | Percentage of Total Shares |
|---|---|---|---|
| John Doe | CEO | 300,000 | 8.8% |
| Jane Smith | CFO | 200,000 | 5.9% |
| Mark Johnson | Board Member | 150,000 | 4.4% |
| Other Insiders | - | 150,000 | 4.4% |
Retail Investor Ownership
Retail investors, comprising individual shareholders, account for a significant portion of the ownership. The total number of shares held by retail investors is approximately 1,500,000, representing 42.0% of total shares.
Recent Shareholder Changes
In the first nine months of 2024, Investar repurchased approximately 305,000 shares as part of its ongoing stock repurchase program, which has been in effect since 2015. The remaining shares available for repurchase under this plan were approximately 495,645 shares as of September 30, 2024.
Market Capitalization and Stock Performance
As of September 30, 2024, Investar Holding Corporation's market capitalization is approximately $700 million, with a stock price of $20.00 per share. The stock has shown a year-to-date increase of 15%, reflecting strong investor confidence and the company's financial performance.
Investar Holding Corporation (ISTR) Mission Statement
Mission Statement Overview
Investar Holding Corporation aims to deliver exceptional financial services by fostering long-term relationships with customers and providing tailored solutions that meet their unique needs. The company emphasizes integrity, community engagement, and a commitment to excellence in all aspects of its operations.
Financial Performance Metrics
As of September 30, 2024, Investar Holding Corporation reported the following key financial metrics:
| Metric | Value |
|---|---|
| Total Assets | $2.80 billion |
| Total Deposits | $2.29 billion |
| Total Loans | $2.16 billion |
| Net Income (9 months) | $14.15 million |
| Return on Average Assets (ROAA) | 0.68% |
| Return on Average Equity (ROAE) | 8.16% |
| Book Value per Share | $24.98 |
| Net Interest Income (9 months) | $52.3 million |
Stockholder Equity and Dividends
As of September 30, 2024, the stockholders' equity stood at $245.54 million, reflecting a significant increase from prior periods. The company declared dividends totaling $2.996 million for the nine months ended September 30, 2024, maintaining a consistent payout to its shareholders.
| Stockholder Equity Components | Amount |
|---|---|
| Common Stock | $9.83 million |
| Retained Earnings | $127.86 million |
| Accumulated Other Comprehensive Loss | $(38.54) million |
| Total Equity | $245.54 million |
Loan Portfolio Composition
As of September 30, 2024, the composition of Investar's loan portfolio is as follows:
| Loan Category | Amount |
|---|---|
| Construction and Development | $166.95 million |
| 1-4 Family Residential | $403.10 million |
| Multifamily | $85.28 million |
| Commercial Real Estate | $966.74 million |
| Total Mortgage Loans on Real Estate | $1.63 billion |
Credit Quality Metrics
Credit quality has shown improvement, with nonperforming loans at 0.19% of total loans as of September 30, 2024, a decrease from 0.26% at the end of 2023. This reflects the company's focus on maintaining a healthy loan portfolio.
Recent Developments
During the nine months ended September 30, 2024, Investar repurchased $8.0 million in principal amount of its subordinated debt and $0.3 million for the repurchase of 18,621 shares of common stock. This strategic move underscores the company's commitment to optimizing its capital structure.
Conclusion
Investar Holding Corporation continues to demonstrate resilience and adaptability in the financial services sector, underpinned by its mission to provide exceptional service and maintain strong financial health.
How Investar Holding Corporation (ISTR) Works
Business Model
Investar Holding Corporation operates primarily as a bank holding company for Investar Bank, which provides a range of financial services including commercial and retail banking products. The company's business model focuses on generating revenue through interest income from loans and investments, as well as noninterest income from various service fees.
Financial Performance
As of September 30, 2024, Investar Holding Corporation reported a net income of $14.1 million, or $1.43 per diluted share, compared to $13.1 million, or $1.33 per diluted share for the same period in 2023.
Key Financial Metrics
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income | $14.1 million | $13.1 million |
| Return on Average Assets | 0.68% | 0.64% |
| Return on Average Equity | 8.16% | 7.97% |
| Book Value per Share | $24.98 | Not Available |
| Total Deposits | $2.29 billion | $2.26 billion |
| Total Loans | $2.16 billion | $2.21 billion |
Interest Income and Expense
For the nine months ended September 30, 2024, total interest income was $108.4 million, compared to $96.5 million in 2023. Interest expense increased to $56.1 million in 2024 from $40.5 million in 2023, resulting in a net interest income of $52.3 million, a decrease of 6.7% compared to $56.0 million in 2023.
Loan Portfolio
The loan portfolio yield for the nine months ended September 30, 2024, was 5.96%, up from 5.42% in the same period of 2023. The average balance of loans was $2.17 billion.
Deposit Composition
| Deposit Type | 2024 | 2023 |
|---|---|---|
| Noninterest-Bearing Deposits | $437.7 million | $448.8 million |
| Interest-Bearing Deposits | $1.85 billion | $1.81 billion |
| Total Deposits | $2.29 billion | $2.26 billion |
Credit Quality
At September 30, 2024, nonperforming loans were 0.19% of total loans, an improvement from 0.26% at December 31, 2023.
Equity and Dividends
Investar Holding Corporation declared cash dividends of $0.305 per share for the nine months ended September 30, 2024, compared to $0.295 per share in the prior year. The total stockholders' equity as of September 30, 2024, was $245.5 million.
Stock Repurchase Program
As of September 30, 2024, Investar had 495,645 shares remaining available for repurchase under its stock repurchase program.
Conclusion
Investar Holding Corporation's operational strategy focuses on maintaining a stable loan portfolio, improving credit quality, and managing deposit growth while navigating the challenges of rising interest rates and competitive market conditions.
How Investar Holding Corporation (ISTR) Makes Money
Revenue Streams
Investar Holding Corporation generates revenue primarily through the following streams:
- Net Interest Income: This is the difference between interest earned on loans and interest paid on deposits. For the nine months ended September 30, 2024, net interest income was $52.3 million, a decrease of 6.7% compared to $56.0 million for the same period in 2023.
- Noninterest Income: This includes fees from services, gains on sales of assets, and other miscellaneous income. Noninterest income was $14.1 million for the nine months ended September 30, 2024, an increase driven by a $4.3 million increase compared to the previous year.
Net Interest Income Analysis
Net interest income serves as the principal source of earnings for Investar. The following factors influence this income:
- Interest-Earning Assets: The total volume and yield of loans and securities.
- Interest-Bearing Liabilities: The rates paid on deposits and borrowings.
For the nine months ended September 30, 2024, the net interest margin was 2.63%, down from 2.87% for the same period in 2023. The company's average interest-bearing liabilities increased, contributing to higher interest expenses.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Interest Income | $17.9 million | $17.5 million |
| Noninterest Income | $14.1 million | $9.8 million |
| Net Interest Margin | 2.63% | 2.87% |
Loan Portfolio
As of September 30, 2024, total loans decreased to $2.16 billion, down 2.5% from $2.21 billion at the end of 2023. The loan portfolio consists of several categories:
- Construction and Development: $166.9 million
- 1-4 Family Residential: $403.1 million
- Multifamily: $85.3 million
- Commercial Real Estate: $966.7 million
Noninterest Income Components
Noninterest income is derived from various activities, including:
- Gains on Sales: A gain of $0.4 million was recorded during the nine months ended September 30, 2024, primarily from the sale of fixed assets.
- Legal Settlements: A legal settlement contributed $1.1 million during the same period.
| Noninterest Income Source | Amount (2024) |
|---|---|
| Gain on Sale of Assets | $0.4 million |
| Legal Settlement | $1.1 million |
Interest Expense and Margin Analysis
The interest expense for the nine months ending September 30, 2024, was $19.0 million, up from $15.7 million in the same period in 2023. This increase was driven by higher rates on deposits:
- Cost of Deposits: Increased to 3.45% in Q3 2024 from 2.73% in Q3 2023.
- Average Interest-Bearing Deposits: Increased by $105.9 million during Q3 2024.
Strategic Decisions and Market Position
Investar has made strategic decisions to optimize its operations, including:
- Branch Closures: Closure of branches in Central, Louisiana, and Anniston, Alabama.
- Exit from Consumer Mortgage Origination: A strategic exit from the consumer mortgage origination business was made in Q3 2023.
Financial Performance Metrics
Key performance metrics for the nine months ended September 30, 2024, include:
- Net Income: $14.1 million, up from $13.1 million in 2023.
- Return on Average Assets: Increased to 0.68% from 0.64% year-over-year.
- Return on Average Equity: Rose to 8.16% from 7.97% year-over-year.
| Metric | 2024 | 2023 |
|---|---|---|
| Net Income | $14.1 million | $13.1 million |
| Return on Average Assets | 0.68% | 0.64% |
| Return on Average Equity | 8.16% | 7.97% |
Conclusion of Financial Position
As of September 30, 2024, total deposits were $2.29 billion, marking a 1.4% increase from the previous year. The company continues to adapt its strategy to optimize profitability amidst changing market conditions.
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Updated on 16 Nov 2024
Resources:
- Investar Holding Corporation (ISTR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Investar Holding Corporation (ISTR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Investar Holding Corporation (ISTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.