Interest Rates and Economic Impact - The Federal Reserve raised target interest rates by a cumulative 525 basis points from March 2022 to July 2023, impacting credit costs and capital availability [111]. - The cost of interest-bearing deposits increased to 3.38% in 2024 from 2.49% in 2023 and 0.42% in 2022, putting pressure on net interest margin [117]. - Inflation has remained elevated compared to the Federal Reserve's target rate of 2%, affecting borrowers' repayment abilities and increasing operating costs [125]. - Economic uncertainty and geopolitical tensions may lead to higher loan delinquencies and a decline in demand for products and services [113]. Credit Losses and Provisions - The allowance for credit losses may prove insufficient, necessitating further increases in provisions for credit losses due to the adoption of the CECL standard [127]. - An increase in nonperforming assets could adversely impact net interest income and necessitate further increases to the allowance for credit losses [120]. - The allowance for credit losses (ACL) was $26,721,000 as of December 31, 2024, reflecting management's best estimate of expected credit losses in the loan portfolio [468]. - The ACL consists of loss allocations on pools of loans with similar risk characteristics and individual loans that do not share similar risk characteristics [468]. - The Company maintains the ACL at an amount believed to be a current estimate of expected credit losses for the full life of relevant loan pools [513]. Financial Performance - Net income for 2024 was $20,252 thousand, up from $16,678 thousand in 2023, representing a growth of 21.0% [477]. - Total interest income increased to $143,865 thousand in 2024, compared to $133,201 thousand in 2023, reflecting an increase of 8.0% [477]. - Net interest income after provision for credit losses was $73,233 thousand in 2024, down from $76,520 thousand in 2023, a decrease of 4.8% [477]. - Noninterest income grew significantly to $14,205 thousand in 2024, compared to $6,538 thousand in 2023, an increase of 117.9% [477]. - Total stockholders' equity increased to $241,296 thousand in 2024 from $226,768 thousand in 2023, a growth of 6.4% [474]. Deposits and Loans - Total deposits rose to $2,345,944 thousand in 2024, up from $2,255,727 thousand in 2023, an increase of 4.0% [474]. - Approximately 75% of the total loan portfolio is secured by real estate, which poses risks if the real estate market declines [144]. - Commercial and industrial loans represented 24.8% of total loans as of December 31, 2024, reflecting an increase from 20.7% in 2022 [149]. - The company experienced a net increase in loans of $83,283,000 in 2024, compared to an increase of $41,999,000 in 2023 [488]. Regulatory and Compliance Risks - The company is subject to extensive federal and state banking regulations, which may increase operational costs and limit growth opportunities, potentially impacting profitability [174]. - The company faces risks related to compliance with anti-money laundering regulations, which could result in significant penalties and affect business operations [177]. - Regulatory scrutiny of third-party vendor relationships is increasing, which may lead to higher costs and potential enforcement actions if oversight is deemed inadequate [182]. Strategic Initiatives and Market Position - The company has shifted its near-term strategy from primarily growth to focusing on consistent, quality earnings through balance sheet optimization, which may not successfully increase profitability [133]. - The company has completed seven whole-bank acquisitions since 2011 and continues to pursue acquisition opportunities while managing growth effectively [135]. - The company faces intense competition from larger financial institutions, which may adversely affect its profitability and long-term growth [164]. - The company may face challenges from fintech innovations that could disrupt traditional banking practices, necessitating adaptation to maintain customer retention and acquisition [180]. Asset Management and Valuation - Gross unrealized losses in the AFS investment securities portfolio totaled $61.7 million at December 31, 2024, compared to $57.7 million at December 31, 2023 [118]. - The company’s investment securities portfolio may incur losses due to market conditions, including fluctuations in interest rates and credit deterioration, which could negatively impact future results of operations [167]. - The Company has not recognized any impairment charges on goodwill and other intangible assets through December 31, 2024 [529]. Operational Challenges - The company is exposed to significant fraud risks, including identity theft and account takeover, which have increased in sophistication and frequency in recent years [168]. - The company’s reliance on third-party vendors for information technology and telecommunications systems poses risks if these vendors fail to deliver services effectively [157]. - The company’s operations are concentrated in regions susceptible to natural disasters, which can disrupt business and adversely affect financial performance [154]. Internal Controls and Audit - Management's assessment of internal control over financial reporting concluded that the system is effective as of December 31, 2024 [452]. - The independent auditor expressed an unqualified opinion on the effectiveness of the Company's internal control over financial reporting as of December 31, 2024 [455]. - The audit identified the ACL as a critical audit matter due to the significant judgment required in estimating credit losses [470].

Financial Performance - Investar reported net income of $6.1 million, or $0.61 per diluted common share, for Q4 2024, an increase from $5.4 million, or $0.54 per share, in Q3 2024, and $3.5 million, or $0.36 per share, in Q4 2023[2]. - Core earnings per diluted common share for Q4 2024 were $0.65, up from $0.45 in Q3 2024 and $0.39 in Q4 2023, benefiting from $3.1 million in nontaxable noninterest income from BOLI[3]. - Net income for Q4 2024 was $6.107 million, reflecting a 13.5% increase from $5.381 million in Q3 2024 and a 72.6% increase from $3.538 million in Q4 2023[46]. - Basic earnings per common share increased to $0.62 from $0.36 year-over-year, reflecting a 72.2% growth[55]. - Core basic earnings per common share for Q4 2024 were $0.66, up 46.7% from $0.45 in Q3 2024 and up 69.2% from $0.39 in Q4 2023[46]. Asset and Liability Management - Total loans decreased by $30.8 million, or 1.4%, to $2.13 billion at December 31, 2024, compared to $2.16 billion at September 30, 2024[8]. - Total assets as of December 31, 2024, were $2,763 million, a decrease of 1.2% from $2,797 million in Q3 2024 and a decrease of 1.9% from $2,817 million in Q4 2023[46]. - Total interest-earning assets decreased to $2,626,533 thousand with a net interest income of $35,505 thousand, yielding 5.38% for the three months ended December 31, 2024[58]. - Total interest-bearing liabilities amounted to $2,054,561 thousand with a net interest margin of 2.65%[58]. Deposits and Equity - Total deposits increased by $58.5 million, or 2.6%, to $2.35 billion at December 31, 2024, compared to $2.29 billion at September 30, 2024[16]. - Stockholders' equity was $241.3 million at December 31, 2024, a decrease of $4.2 million or 1.7% from September 30, 2024, but an increase of $14.5 million or 6.4% from December 31, 2023[20]. - Total deposits increased to $2,345.9 million at December 31, 2024, up $58.5 million or 2.6% from September 30, 2024, and up $90.2 million or 4.0% from December 31, 2023[18]. Income and Expenses - Net interest income for Q4 2024 totaled $17.5 million, a decrease of $0.4 million or 2.1% from Q3 2024, and a decrease of $1.0 million or 5.5% from Q4 2023[22]. - Noninterest income for Q4 2024 was $5.2 million, an increase of $1.6 million or 45.7% from Q3 2024, and an increase of $3.4 million or 194.2% from Q4 2023[29]. - Noninterest expense for Q4 2024 totaled $16.1 million, a decrease of $0.1 million or 0.6% from Q3 2024, and an increase of $0.6 million or 4.1% from Q4 2023[32]. Efficiency and Ratios - The efficiency ratio improved to 71.00% for Q4 2024, compared to 75.61% for Q3 2024, with a core efficiency ratio of 69.41%[7]. - The return on average assets increased to 0.88% in Q4 2024, up from 0.77% in Q3 2024 and 0.50% in Q4 2023[46]. - The tangible common equity ratio improved to 7.44% as of December 31, 2024, compared to 6.65% a year earlier[63]. Credit Quality - Nonperforming loans represented 0.42% of total loans at December 31, 2024, an increase from 0.19% at September 30, 2024[5]. - The allowance for credit losses was $26.7 million, or 302.8% of nonperforming loans, at December 31, 2024, down from $28.1 million at September 30, 2024[14]. - Nonperforming assets to total assets increased to 0.52% from 0.32% quarter-over-quarter, representing a 62.5% increase year-over-year[49]. Strategic Direction - The company plans to pivot from a growth strategy to a focus on consistent, quality earnings through balance sheet optimization[41].

Core Viewpoint - Investar (ISTR) reported quarterly earnings of $0.65 per share, significantly exceeding the Zacks Consensus Estimate of $0.40 per share, marking a 62.50% earnings surprise [1][2] Financial Performance - The company achieved revenues of $22.65 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 11.61% and showing an increase from $20.25 million year-over-year [2] - Over the last four quarters, Investar has consistently surpassed consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - Investar shares have declined approximately 8.6% since the beginning of the year, contrasting with the S&P 500's gain of 3.5% [3] - The company's current consensus EPS estimate for the upcoming quarter is $0.39, with expected revenues of $20.45 million, and for the current fiscal year, the estimate is $1.83 on revenues of $87.37 million [7] Industry Context - The Banks - Southeast industry, to which Investar belongs, is currently ranked in the top 20% of over 250 Zacks industries, indicating a favorable outlook compared to lower-ranked industries [8]

Financial Performance - For the nine months ended September 30, 2024, net income was $14.1 million, or $1.43 per diluted common share, compared to $13.1 million, or $1.33 per diluted common share for the same period in 2023, reflecting a $4.3 million increase in noninterest income[208]. - Net interest income for the nine months ended September 30, 2024 was $52.3 million, a decrease of $3.8 million, or 6.7%, compared to $56.0 million for the same period in 2023[211]. - Noninterest income for the nine months ended September 30, 2024, rose by $4.3 million, or 89.0%, to $9.0 million, driven by a $1.7 million increase in gains on the sale of fixed assets and $1.1 million from a legal settlement[266]. - Total noninterest expense for the nine months ended September 30, 2024, was $47.0 million, a decrease of $0.2 million, or 0.5%, compared to the same period in 2023[269]. - The effective tax rate for the nine months ended September 30, 2024, was 17.5%, compared to 18.4% for the same period in 2023[271]. Loan and Deposit Activity - Total deposits increased by $31.7 million, or 1.4%, to $2.29 billion at September 30, 2024, compared to $2.26 billion at December 31, 2023[210]. - Total loans decreased by $54.8 million, or 2.5%, to $2.16 billion at September 30, 2024, compared to $2.21 billion at December 31, 2023[211]. - Loans classified as substandard increased to $28.8 million at September 30, 2024, from $12.0 million at December 31, 2023, primarily due to one loan relationship[281]. - Loan commitments increased to $439.0 million as of September 30, 2024, compared to $413.0 million at December 31, 2023[341]. - The company exited the consumer mortgage origination business in Q3 2023 due to decreased volumes and higher credit loss allowances[192]. Interest Income and Expense - Interest income was $108.4 million for the nine months ended September 30, 2024, an increase of $11.9 million from $96.5 million for the same period in 2023[257]. - Interest expense increased by $15.6 million to $56.1 million for the nine months ended September 30, 2024, compared to $40.5 million for the same period in 2023[258]. - The cost of deposits increased 114 basis points to 3.38% for the nine months ended September 30, 2024, compared to 2.24% for the same period in 2023[258]. - The yield on the loan portfolio increased to 5.96% for the nine months ended September 30, 2024, from 5.42% for the same period in 2023[257]. - The overall yield on interest-earning assets increased to 5.45% for the nine months ended September 30, 2024, from 4.94% for the same period in 2023[257]. Credit Quality - Nonperforming loans were 0.19% of total loans at September 30, 2024, compared to 0.26% at December 31, 2023, indicating improved credit quality[209]. - The allowance for credit losses was $28.1 million at September 30, 2024, down from $30.5 million at December 31, 2023[284]. - The total allowance for credit losses as a percentage of total loans was 1.30% as of September 30, 2024, down from 1.38% as of December 31, 2023[290]. - The company recorded a negative provision for credit losses of $0.4 million for the three months ended September 30, 2024, primarily due to net recoveries[285]. - Nonaccrual loans were $4.1 million, or 0.19% of total loans, at September 30, 2024, a decrease of $1.1 million from $5.3 million, or 0.25% of total loans, at September 30, 2023[293]. Capital and Liquidity - Stockholders' equity increased to $245.5 million at September 30, 2024, up by $18.8 million compared to December 31, 2023[242]. - The Bank maintained a Tier 1 leverage capital ratio of 8.95% and a total capital ratio of 13.48% as of September 30, 2024, both exceeding the well-capitalized requirements[334]. - Core deposits funded 64% of total assets at both September 30, 2024, and December 31, 2023, indicating stable liquidity sources[318]. - At September 30, 2024, the bank held $86.3 million in cash and cash equivalents, representing 111% of uninsured deposits of $746.6 million[326]. - The company repurchased $8.0 million in principal amount of subordinated debt during the nine months ended September 30, 2024[212]. Strategic Initiatives - The company pivoted its near-term strategy from primarily growth to focusing on consistent, quality earnings through balance sheet optimization[189]. - The company completed the sale of assets, deposits, and liabilities associated with its Alice and Victoria, Texas branch locations, totaling approximately $13.9 million in loans and $14.5 million in deposits[201]. - The company closed five branches in the last three fiscal years, including one in Alabama in Q1 2024, to improve network efficiency[191]. - The company has completed seven whole-bank acquisitions since 2011, with the most recent in April 2021[189]. - The company recorded a $0.2 million write-down of other real estate owned primarily related to a former branch location during the nine months ended September 30, 2024[301].

Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in stock prices for short-term investing, highlighting that sound fundamentals and positive earnings estimates are crucial for maintaining momentum in stock prices [1]. Group 1: Stock Performance - Investar (ISTR) has shown a solid price increase of 12.5% over the past 12 weeks, indicating investor confidence in its potential upside [2]. - The stock has also increased by 9.8% over the last four weeks, suggesting that the upward trend is still intact [2]. - ISTR is currently trading at 98.2% of its 52-week high-low range, indicating a potential breakout [2]. Group 2: Fundamental Strength - ISTR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [3]. - The Zacks Rank system has a strong historical performance, with Rank 1 stocks averaging a +25% annual return since 1988 [3]. - The Average Broker Recommendation for ISTR is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [3]. Group 3: Investment Strategy - The article suggests that ISTR is not the only stock that meets the criteria of the "Recent Price Strength" screen, encouraging investors to explore other stocks that may also present profitable opportunities [4]. - It highlights the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can help identify winning stock picks [4]. - The Zacks Research Wizard tool allows investors to backtest stock-picking strategies, enhancing the likelihood of achieving profitable results [4].

分组1 - Investar reported quarterly earnings of $0.45 per share, exceeding the Zacks Consensus Estimate of $0.35 per share, and up from $0.33 per share a year ago, representing an earnings surprise of 28.57% [1] - The company achieved revenues of $21.4 million for the quarter ended September 2024, surpassing the Zacks Consensus Estimate by 6.63%, compared to $19.11 million in the same quarter last year [1] - Over the last four quarters, Investar has consistently surpassed consensus EPS estimates four times and revenue estimates three times [1] 分组2 - Investar shares have increased approximately 37% since the beginning of the year, outperforming the S&P 500's gain of 23% [2] - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $20.52 million, and for the current fiscal year, it is $1.52 on revenues of $88.41 million [4] - The Zacks Industry Rank for Banks - Southeast is currently in the bottom 36% of over 250 Zacks industries, indicating potential challenges for stock performance [5]

Financial Performance - Investar reported net income of $5.4 million, or $0.54 per diluted common share, for Q3 2024, an increase from $4.1 million, or $0.41 per diluted common share, in Q2 2024, and $2.8 million, or $0.28 per diluted common share, in Q3 2023[1]. - Core earnings per diluted common share for Q3 2024 were $0.45, up from $0.36 in Q2 2024 and $0.33 in Q3 2023[2]. - Net income for Q3 2024 reached $5,381,000, reflecting a 32.6% increase from Q2 2024 and a 93.5% increase year-over-year[38]. - Basic earnings per common share for Q3 2024 was $0.55, up 34.1% from Q2 2024 and 96.4% year-over-year[38]. - Core earnings for Q3 2024 were $4,444,000, representing a 24.5% increase from $3,567,000 in Q2 2024 and a 36.3% increase from $3,259,000 in Q3 2023[45]. Asset and Liability Management - Total assets as of September 30, 2024, were $2,796,969,000, a 0.8% increase from Q2 2024 and 2.2% year-over-year[38]. - Total loans decreased by $10.9 million, or 0.5%, to $2.16 billion at September 30, 2024, compared to $2.17 billion at June 30, 2024[5]. - Total deposits increased by $77.2 million, or 3.5%, to $2.29 billion at September 30, 2024, compared to $2.21 billion at June 30, 2024[13]. - Total liabilities remained stable at $2,557,031 thousand in September 2024, slightly down from $2,580,816 thousand in September 2023[40]. Income and Expense Analysis - Net interest income for Q3 2024 was $17.9 million, an increase of $0.7 million or 3.8% from Q2 2024, and an increase of $0.4 million or 2.2% from Q3 2023[17]. - Noninterest income for Q3 2024 totaled $3.5 million, an increase of $0.8 million or 28.9% from Q2 2024, and an increase of $1.9 million or 116.5% from Q3 2023[24]. - Noninterest expense for Q3 2024 totaled $16.2 million, an increase of $0.7 million or 4.5% from Q2 2024, and an increase of $0.4 million or 2.6% from Q3 2023[27]. - The efficiency ratio decreased to 75.61% from 77.59% in Q2 2024, indicating improved operational efficiency[38]. Credit Quality - Nonperforming loans decreased to $4.1 million, or 0.19% of total loans, at September 30, 2024, down from $5.0 million, or 0.23%, at June 30, 2024[11]. - The allowance for credit losses was $28.1 million, or 682.0% of nonperforming loans, at September 30, 2024[11]. - Provision for credit losses was $(945,000), a significant increase of 127.7% from Q2 2024 and 2,679.4% year-over-year[38]. Capital and Equity - Stockholders' equity increased to $245.5 million at September 30, 2024, up $15.3 million from June 30, 2024, and up $36.8 million from September 30, 2023[16]. - Common equity tier 1 capital ratio increased to 10.33% from 10.02% in Q2 2024, reflecting a 3.1% improvement[39]. - Tangible common equity increased to $203,698 thousand, reflecting a tangible equity to tangible assets ratio of 7.38%[44]. Market and Operational Strategy - The company emphasizes the importance of non-GAAP financial measures to provide a clearer understanding of its financial results, including core earnings and efficiency ratios[33]. - Forward-looking statements indicate that Investar is focused on consistent, quality earnings and optimizing its balance sheet, while also navigating various risks and uncertainties[35]. - The company is actively pursuing organic loan and deposit growth, alongside potential acquisitions to enhance its market position[36]. - Investar's management is focused on executing a long-term growth strategy while managing regulatory compliance and operational risks[36]. Risks and Challenges - Risks include changes in interest rates, economic conditions, and the ability to attract and retain qualified personnel, which could impact future performance[37]. - The company acknowledges the potential impact of geopolitical tensions and public health challenges on its operations and market conditions[37]. - Investar's digital transformation process includes addressing increased risks of cyberattacks and fraud, which are critical to its operational integrity[37]. - The company is committed to maintaining high levels of personalized service, which is a key element of its banking approach[37].

Core Viewpoint - The article emphasizes the importance of identifying and sustaining stock price trends for successful short-term investing, highlighting the need for strong fundamentals and positive earnings revisions to maintain momentum [1][2]. Group 1: Stock Performance - Investar (ISTR) has shown a solid price increase of 17.9% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has also increased by 8.3% over the last four weeks, suggesting that the upward trend is still intact [5]. - ISTR is currently trading at 86.3% of its 52-week high-low range, indicating a potential breakout opportunity [5]. Group 2: Fundamental Strength - ISTR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests that investors can utilize the "Recent Price Strength" screen to identify stocks like ISTR that are on an upward trend supported by strong fundamentals [3][8]. - It also mentions the availability of over 45 Zacks Premium Screens tailored to different investing styles, which can help in finding winning stock picks [8].

Core Insights - The article emphasizes the importance of confirming the sustainability of a trend for successful short-term investing, highlighting that timing entries into the trend is crucial [1][2]. Group 1: Trend Analysis - A trend can reverse before exiting a trade, leading to potential short-term capital losses for investors, thus confirming sound fundamentals and positive earnings estimates is essential for maintaining stock momentum [2]. - The "Recent Price Strength" screen is a unique short-term trading strategy that helps identify stocks with sufficient fundamental strength to sustain their recent uptrend, focusing on stocks trading in the upper portion of their 52-week high-low range [3]. Group 2: Company Spotlight - Investar (ISTR) - Investar (ISTR) has shown a solid price increase of 19.2% over the past 12 weeks, indicating investor confidence in its potential upside [4]. - The stock has maintained a price increase of 1.5% over the past four weeks, suggesting that the upward trend is still intact, and it is currently trading at 98.6% of its 52-week high-low range, indicating a potential breakout [5]. - ISTR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, which are critical for near-term price movements [6]. Group 3: Market Sentiment - The Zacks Rank stock-rating system has a strong track record, with Zacks Rank 1 stocks averaging a +25% annual return since 1988, indicating the effectiveness of this ranking system [7]. - The Average Broker Recommendation for ISTR is 1 (Strong Buy), reflecting high optimism from the brokerage community regarding the stock's near-term performance [7]. - The article suggests that the price trend for ISTR is unlikely to reverse soon, and there are other stocks that also meet the criteria of the "Recent Price Strength" screen, providing additional investment opportunities [8].

Strategy and Operations - The company pivoted its near-term strategy from primarily growth to focusing on consistent, quality earnings through balance sheet optimization [164]. - As of June 30, 2024, the company operated 28 full-service branches across Louisiana, Texas, and Alabama [163]. - The company completed the sale of approximately $13.9 million in loans and $14.5 million in deposits associated with its Alice and Victoria, Texas locations [174]. - The company closed five branches in the last three fiscal years, including one in Alabama during Q1 2024 [165]. - The company exited the consumer mortgage origination business in Q3 2023 due to decreased volumes and higher credit loss allowances [166]. - The company has completed seven whole-bank acquisitions since 2011, with the most recent one in April 2021 [164]. Financial Performance - For the six months ended June 30, 2024, net income was $8.8 million, or $0.89 per share, down from $10.4 million, or $1.05 per share for the same period in 2023, primarily due to a $4.1 million decrease in net interest income [178]. - Net interest income for the six months ended June 30, 2024 was $34.4 million, a decrease of $4.1 million, or 10.8%, compared to $38.6 million for the same period in 2023 [180]. - Total deposits decreased by $45.5 million, or 2.0%, to $2.21 billion at June 30, 2024, compared to $2.26 billion at December 31, 2023 [179]. - Total loans decreased by $43.9 million, or 2.0%, to $2.17 billion at June 30, 2024, compared to $2.21 billion at December 31, 2023 [179]. - The company's return on average assets decreased to 0.63% for the six months ended June 30, 2024, down from 0.76% for the same period in 2023 [179]. - Investment securities totaled $355.1 million at June 30, 2024, a decrease of $27.3 million, or 7.1%, from $382.4 million at December 31, 2023 [191]. Credit Quality - The allowance for credit losses was $28.6 million as of June 30, 2024, down from $30.5 million at December 31, 2023 [242]. - As of June 30, 2024, there were $23.2 million of loans classified as substandard, an increase from $12.0 million at December 31, 2023 [239]. - Nonperforming loans were 0.23% of total loans at June 30, 2024, compared to 0.26% at December 31, 2023, indicating improved credit quality metrics [179]. - The allowance for credit losses to total loans decreased to 1.32% at June 30, 2024, compared to 1.44% at June 30, 2023 [253]. - Nonaccrual loans were $4.9 million, or 0.23% of total loans, at June 30, 2024, a decrease of $2.1 million from $7.0 million, or 0.34% of total loans, at June 30, 2023 [253]. Interest Income and Expense - Interest income rose to $35.8 million for the three months ended June 30, 2024, up from $32.4 million for the same period in 2023, driven by a $2.6 million increase in yield on interest-earning assets [210]. - Interest expense increased by $4.6 million to $18.6 million for the three months ended June 30, 2024, compared to $14.0 million for the same period in 2023 [211]. - The cost of deposits increased by 107 basis points to 3.38% for the three months ended June 30, 2024, compared to 2.31% for the same period in 2023 [211]. - Net interest margin decreased by 20 basis points to 2.62% for the three months ended June 30, 2024, from 2.82% for the same period in 2023 [212]. - Average interest-bearing liabilities increased by $76.8 million for the three months ended June 30, 2024, compared to the same period in 2023 [211]. Deposits and Borrowings - Estimated uninsured deposits represented approximately 33% of total deposits as of June 30, 2024 [171]. - Time deposits increased to $751.3 million, representing 34.0% of total deposits at June 30, 2024, up from 32.4% at December 31, 2023 [199]. - Total borrowings under the BTFP were $229.0 million at June 30, 2024, with a weighted average rate of 4.76%, compared to $212.5 million at December 31, 2023, at a rate of 4.83% [202]. - The average cost of short-term borrowings was 4.68% for the six months ended June 30, 2024, compared to 4.94% for the same period in 2023 [204]. Noninterest Income and Expense - Total noninterest income increased by $0.7 million, or 32.9%, to $2.8 million for the three months ended June 30, 2024, compared to $2.1 million for the same period in 2023 [228]. - For the six months ended June 30, 2024, total noninterest income rose by $2.4 million, or 74.8%, to $5.5 million compared to $3.1 million for the same period in 2023 [229]. - Total noninterest expense for the three months ended June 30, 2024, was $15.5 million, an increase of $0.2 million, or 1.5%, compared to the same period in 2023 [230]. - Total noninterest expense for the six months ended June 30, 2024, was $30.8 million, a decrease of $0.6 million, or 2.0%, compared to the same period in 2023 [231]. Capital and Regulatory Compliance - The Bank maintained a Tier 1 leverage capital ratio of 8.81% and a total capital ratio of 13.16% as of June 30, 2024, both exceeding the well-capitalized thresholds [287]. - The Company is in compliance with all regulatory capital requirements as of June 30, 2024, and is considered "well-capitalized" under OCC regulations [287]. - Dividends paid during the six months ended June 30, 2024, were $2.0 million, an increase from $1.9 million in the same period of 2023, with a declared dividend of $0.20 per share compared to $0.195 per share in 2023 [284]. Market Risk and Liquidity - The bank's liquidity strategy targets growth of noninterest-bearing deposits, which have declined due to rising market interest rates [282]. - The company will continue to monitor market risk for the six months ended June 30, 2024, as discussed in the report [296]. - There have been no material changes in the company's market risk since December 31, 2023, as noted in the Annual Report [296].