Investar Holding Corporation Reports Strong Fourth Quarter Results

Investar Holding Corporation (ISTR) has announced its financial results for the fourth quarter of 2024, showcasing a robust performance across various metrics. The company's net interest income grew by 3.8% compared to the second quarter of 2024 and 2.2% compared to the third quarter of 2023. This growth can be attributed to an increase in interest income, interest income accretion from the acquisition of loans, and interest recoveries. Additionally, the company's net interest margin increased to 2.67% for the quarter ended September 30, 2024, driven by a six basis point increase in the yield on interest-earning assets, partially offset by a three basis point increase in the overall cost of funds.

Investar's stockholders' equity also saw a significant increase, rising by $15.3 million compared to June 30, 2024 and $36.8 million compared to September 30, 2023. This growth was primarily driven by a decrease in accumulated other comprehensive loss due to an increase in the fair value of the Bank's available for sale securities portfolio and net income for the quarter and the last twelve months.

The company's strategic acquisitions, such as the purchase of Cheaha Financial Group, have contributed to its overall financial performance and growth prospects. The acquisition of Cheaha Financial Group, valued at approximately $41.1 million, allowed Investar to further bolster its core deposit base and expand its presence along the I-20 corridor in Alabama. This transaction represented an earnings (LTM) multiple of 13.6x, indicating a strong return on investment for Investar shareholders.

In conclusion, Investar Holding Corporation's fourth quarter results demonstrate the company's strong financial performance and growth prospects. The company's strategic acquisitions, combined with its robust net interest income growth and increased stockholders' equity, position Investar for continued success in the future.