Investar Holding Corporation Reports $20.3 Million Net Income for 2024, 21.4% Increase Year-Over-Year

Investar Holding Corporation (Investar), a Louisiana-based financial holding company, reported total assets of $2.7 billion, net loans of $2.1 billion, total deposits of $2.3 billion, and stockholders’ equity of $241.3 million as of December 31, 2024. Net income for the year ended December 31, 2024, was $20.3 million, or $2.04 per diluted share, a 21.4% increase compared to $16.7 million in 2023. This increase was primarily driven by a $7.7 million rise in noninterest income, partially offset by a $4.8 million decrease in net interest income and a $0.4 million increase in noninterest expense. The increase in noninterest income resulted from a $3.5 million increase in income from Bank Owned Life Insurance (BOLI) due to death benefit proceeds and gains on asset sales.

Significant changes compared to the previous fiscal year include a 6.4% decrease in net interest income to $69.8 million, primarily due to increased interest expense on deposits and borrowings. Total loans decreased by 3.9% to $2.13 billion, reflecting a shift in near-term strategy from growth to consistent earnings through balance sheet optimization. This optimization also led to the exit from the consumer mortgage origination business in the third quarter of 2023. The company also closed four branches and sold three tracts of land held for future branch locations over the past three fiscal years to improve efficiencies and leverage digital initiatives. In the fourth quarter of 2024, Investar converted a loan and deposit production office in Texas to a full-service branch.

Strategic developments during the year included the sale of two branches in Texas to First Community Bank in January 2023, generating approximately $13.9 million in loan sales and $14.5 million in deposit sales. Investar also repurchased 18,621 shares of its common stock at an average price of $16.13 per share during 2024. The company increased its dividend by 4% to $0.41 per share. In 2023, Investar purchased commercial and industrial revolving lines of credit with an unpaid principal balance of $162.7 million in two tranches. The company also converted an existing loan and deposit production office in Alabama to a cashless branch in the third quarter of 2023.

Key operational developments included a 4% increase in total deposits to $2.35 billion as of December 31, 2024, and a decrease in noninterest-bearing deposits. Nonperforming loans were 0.42% of total loans at year-end 2024, up from 0.26% in 2023. Investar employed 327 full-time and eight part-time employees as of December 31, 2024. The company's return on average assets increased to 0.73% in 2024 from 0.60% in 2023, while return on average equity increased to 8.60% from 7.63%. The company's efficiency ratio was 75.08% in 2024, compared to 77.26% in 2023.

Investar's outlook remains subject to various risks, including economic conditions, interest rate fluctuations, credit risk, and competition. The company acknowledges the impact of the failures of several large banks in early 2023 on depositor confidence and liquidity concerns within the industry. The company also notes the ongoing evolution of the regulatory environment and its potential impact on future operations and profitability. The company intends to continue its long-term strategy of organic growth and strategic acquisitions.