Investar (ISTR) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $5.4M, up from $4.1M in Q2 and $2.8M in Q3 2023; YTD net income reached $14.1M, up from $13.1M in 2023.

• Book value per share reached a record $24.98; tangible book value per share $20.73.

• Net interest margin improved to 2.67% in Q3 2024; YTD NIM was 2.63%, down from 2.87% a year ago.

• The company focused on balance sheet optimization, high-quality variable-rate loans, and exited consumer mortgage origination.

• Credit quality improved, with nonperforming loans at 0.19% of total loans, down from 0.26% at year-end 2023.

Financial highlights

• Net interest income for Q3 2024 was $17.9M, up 3.8% sequentially; YTD net interest income was $52.3M, down 6.7% year-over-year.

• Noninterest income rose 89% year-over-year to $9.0M YTD, with $3.5M in Q3 2024, driven by a $1.1M legal settlement.

• Noninterest expense was $16.2M in Q3 2024, up 4.5% sequentially; YTD noninterest expense was $47.0M, down 0.5% year-over-year.

• Return on average assets increased to 0.77% in Q3 2024; YTD ROAA was 0.68%.

• Total deposits increased 3.5% sequentially to $2.29B; YTD deposit growth was 1.4%.

Outlook and guidance

• Management expects ~$3.1M in nontaxable income from BOLI in Q4 2024.

• Continued focus on organic growth, cost control, and digital/branch optimization.

• Liability sensitive balance sheet positions the company to benefit from potential rate cuts.