Investar (US:ISTR)2025-04-21 10:01Financial Performance - Investar reported net income of $6.3 million, or $0.63 per diluted common share, for Q1 2025, an increase from $6.1 million, or $0.61 per diluted common share, in Q4 2024[2] - Net income rose by 3.0% year-over-year to $6,293 million, with diluted earnings per share increasing by 3.3% to $0.63[47] - Net interest income for Q1 2025 was $18.3 million, an increase of $1.1 million, or 6.6%, compared to Q1 2024[23] - Net interest income after provision for credit losses increased to $21,941 thousand, up 20.5% from $18,184 thousand in the previous quarter[55] - Core earnings for the quarter ended March 31, 2025, were $6,354 million, slightly down from $6,463 million in the previous quarter, reflecting a decrease of 1.7%[63] Asset Quality - Nonperforming loans represented only 0.27% of total loans at March 31, 2025, down from 0.42% at December 31, 2024[9] - Nonperforming assets to total assets improved to 0.43%, down from 0.52% in the previous quarter, reflecting better asset quality[50] - Provision for credit losses significantly increased by 413.0% year-over-year to $(3,596) million, indicating a substantial rise in expected credit losses[47] - The provision for credit losses was $3,596 thousand, significantly higher than $701 thousand in the previous quarter, indicating increased risk management measures[55] Capital and Equity - Investar's regulatory common equity tier 1 capital ratio increased to 11.16% at March 31, 2025, compared to 10.84% at December 31, 2024[9] - Total stockholders' equity increased to $251.7 million at March 31, 2025, up $24.7 million compared to March 31, 2024, primarily due to net income and an increase in the fair value of available-for-sale securities[22] - Total stockholders' equity increased to $251,737 million as of March 31, 2025, up from $241,296 million in December 31, 2024, representing a growth of 6.0%[61] - Tangible common equity increased to $210,179 million as of March 31, 2025, from $199,600 million in December 31, 2024, marking a growth of 5.9%[61] Deposits and Loans - Total loans decreased by $18.5 million, or 0.9%, to $2.11 billion at March 31, 2025, compared to $2.13 billion at December 31, 2024[9] - Total deposits increased by $1.4 million, or 0.1%, to $2.35 billion at March 31, 2025, compared to $2.35 billion at December 31, 2024[9] - Total deposits as of March 31, 2025, were $2.35 billion, an increase of $139.5 million, or 6.3%, compared to $2.21 billion at March 31, 2024[19] Interest Income and Margin - The net interest margin improved by 22 basis points to 2.87% in Q1 2025, compared to 2.65% in Q4 2024[8] - The yield on interest-earning assets was 5.39% for Q1 2025, compared to 5.38% for Q4 2024, reflecting a slight increase in the yield on the loan portfolio[25] - Total interest income decreased by 3.0% year-over-year to $34,434 million, while net interest income increased by 4.9% to $18,345 million[47] Expenses - Noninterest expense for Q1 2025 was $16.2 million, an increase of $0.9 million, or 6.2%, compared to Q1 2024[33] - Total noninterest expense rose to $16,238 thousand, compared to $16,079 thousand in the previous quarter, reflecting an increase in salaries and employee benefits[55] - Noninterest income for Q1 2025 totaled $2.0 million, a decrease of $3.2 million, or 61.0%, compared to Q4 2024[30] Efficiency and Ratios - The efficiency ratio increased to 79.77%, up from 71.00% in the previous quarter, indicating a decline in operational efficiency[48] - Return on average assets improved to 0.94%, up from 0.88% in the previous quarter, showing enhanced profitability[47] - Core return on average assets for the quarter ended March 31, 2025, was 0.95%, slightly up from 0.93% in the previous quarter[63] Shareholder Actions - Investar repurchased 34,992 shares of its common stock during Q1 2025, leaving 460,653 shares authorized for repurchase[9] - The company declared cash dividends of $0.105 per common share, consistent with the previous quarter[55] Strategic Focus - The company aims to pivot from a growth strategy to a focus on consistent, quality earnings through balance sheet optimization[42] - The company is subject to various risks, including changes in economic conditions, regulatory requirements, and potential impacts from geopolitical tensions[42]