Investar Holding Corporation announced net income of $5.4 million, or $0.54 per diluted common share, for the third quarter of 2024. This represents a substantial increase from $4.1 million, or $0.41 per diluted common share, in the second quarter of 2024, and $2.8 million, or $0.28 per diluted common share, in the third quarter of 2023. Core earnings per diluted common share also improved to $0.45 for the quarter.
The company's net interest margin expanded to 2.67% for the third quarter of 2024, up from 2.62% in the prior quarter, driven by a six basis point increase in the yield on interest-earning assets. This margin improvement reflects Investar's strategic focus on originating higher-yielding loans, with 77% of new and renewed loans being variable-rate at an 8.5% blended interest rate. Total loans stood at $2.16 billion, a slight decrease of 0.5% from the previous quarter, consistent with balance sheet optimization efforts.
Asset quality showed improvement, with nonperforming loans decreasing to $4.1 million, representing 0.19% of total loans, down from $5.0 million in the prior quarter. Investar recorded a negative provision for credit losses of $0.9 million, primarily due to net recoveries and an improved economic forecast. The company also increased its quarterly dividend per share by 5% compared to the second quarter, and repurchased 2,000 shares of common stock at an average price of $18.50 per share, demonstrating a commitment to shareholder value.
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