Investar (US:ISTR)2025-11-05 21:43Financial Performance - Net interest income for the three months ended September 30, 2025, was $21,153 thousand, an increase of 18.14% compared to $17,856 thousand for the same period in 2024 [13]. - Net income for the three months ended September 30, 2025, was $6,179 thousand, a 14.81% increase from $5,381 thousand in the same period of 2024 [13]. - Basic earnings per common share increased to $0.57 for the three months ended September 30, 2025, compared to $0.55 for the same period in 2024, reflecting a growth of 3.64% [13]. - Net income for the nine months ended September 30, 2025, was $16,966,000, an increase from $14,145,000 in the same period of 2024, representing a growth of 19.9% [19]. - The company reported a total comprehensive income of $10,439 thousand for the three months ended September 30, 2025, compared to $15,903 thousand for the same period in 2024 [15]. Assets and Equity - Total assets increased to $2,800,628 thousand as of September 30, 2025, up from $2,722,812 thousand at December 31, 2024, representing a growth of 2.86% [11]. - Total stockholders' equity increased to $295,295 thousand as of September 30, 2025, from $241,296 thousand at December 31, 2024, representing a growth of 22.39% [11]. - Total stockholders' equity at the end of the period on September 30, 2025, was $295,295,000, up from $245,542,000 at the end of September 30, 2024, indicating an increase of 20.2% [17]. Deposits and Loans - Total deposits rose to $2,372,678 thousand as of September 30, 2025, compared to $2,345,944 thousand at December 31, 2024, marking an increase of 1.14% [11]. - As of September 30, 2025, the total loans amounted to $2,150.5 million, an increase from $2,125.1 million at December 31, 2024, reflecting a growth of approximately 1.2% [66]. - The net increase in customer deposits for the nine months ended September 30, 2025, was $26,741,000, down from $31,750,000 in 2024, representing a decrease of 15.9% [21]. - The company experienced a net decrease in loans of $24,040,000 during the nine months ended September 30, 2025, contrasting with an increase of $53,356,000 in the same period of 2024 [19]. Credit Losses and Provisions - The provision for credit losses was $139 thousand for the three months ended September 30, 2025, compared to a reversal of $945 thousand in the same period of 2024 [13]. - The allowance for credit losses (ACL) at the end of the period was $26.5 million, compared to $28.1 million at the end of 2024, reflecting a decrease in provisions for credit losses [108]. - The company reported a provision for credit losses of $(0.1) million for the three months ended September 30, 2025, indicating a negative provision for loan losses [108]. - The negative provision for credit losses for the nine months ended September 30, 2025, included a recovery of $3.3 million from loans previously charged off due to a property insurance settlement related to Hurricane Ida [109]. Investment Securities - The total amortized cost of investment securities classified as available-for-sale (AFS) was $417,729,000 as of September 30, 2025, with a fair value of $370,251,000, indicating unrealized losses of $48,468,000 [45]. - The fair value of available-for-sale (AFS) debt securities was $370.3 million, down from an amortized cost of $417.7 million, indicating a decline in value of approximately 11.3% [59]. - The amortized cost of investment securities classified as held-to-maturity (HTM) was $47,834,000 as of September 30, 2025, with a fair value of $50,576,000, showing unrealized gains of $2,922,000 [48]. Shareholder Activities - The company declared cash dividends of $0.11 per common share for the three months ended September 30, 2025, compared to $0.105 in the same period of 2024 [13]. - Cash dividends paid on common stock for the nine months ended September 30, 2025, totaled $3,146,000, compared to $2,940,000 in 2024, reflecting an increase of 7% [21]. - The company completed a private placement of 32,500 shares of Series A Preferred Stock at a price of $1,000 per share, raising gross proceeds of $32.5 million [117]. Risk Management - The company manages risks associated with construction and development loans by limiting loan-to-value ratios and employing specific underwriting policies [77]. - The company continues to evaluate borrowers' repayment abilities through credit scores and debt-to-income ratios, ensuring prudent lending practices [84]. - The company has seen a consistent increase in pass loans across various categories, demonstrating effective risk management strategies [92]. Market Conditions and Future Outlook - The Company expects to adopt ASU 2023-09 regarding income tax disclosures, effective January 1, 2025, with no material impact anticipated on its consolidated financial statements [37]. - There have been no material changes in the Company's market risk since December 31, 2024, as detailed in the MD&A section of the Annual Report [373].