Investar Q3 profit rises on wider interest margin, lower acquisition costs
ISTR•Investar's adjusted third-quarter EPS was $0.77, above the $0.76 analyst consensus. Net interest margin improved to 3.73%, and the company repurchased 25,113 shares during the quarter.
1. Earnings and margin
Investar reported third-quarter net income of $11.66 million, EPS of $0.74 and net interest income of $33.77 million. Adjusted EPS of $0.77 beat the $0.76 consensus estimate from three analysts, while net interest margin rose to 3.73%.
2. Portfolio changes
Higher earning-asset yields and acquisition-related accretion lifted the net interest margin from the prior quarter. Commercial and industrial loan production drove business lending growth as acquired consumer mortgages continued to run off; Investar said it plans to keep shifting its loan mix toward higher-yielding C&I loans. The company also recorded a reversal of credit losses due to changes in its economic forecast and loan mix.
