Lender Investar's Q2 adjusted EPS beats expectations
Overview
Investar Q2 adjusted EPS beats analyst expectations, per LSEG data
Net income for Q2 declines compared to Q1 but rises yr/yr
Co announces acquisition of Wichita Falls Bancshares, expanding asset base
Outlook
Company sees Wichita Falls acquisition as transformational for growth
Investar aims for interest rate neutral balance sheet with new loans
Result Drivers
NET INTEREST MARGIN - Improved by 16 basis points to 3.03% due to reduced funding costs and increased yields on interest-earning assets
DEPOSIT MIX - Optimization by replacing higher-cost time deposits with lower-cost interest-bearing deposits contributed to decreased cost of funds
BUSINESS LENDING - Growth in business lending portfolio, particularly in variable-rate loans, supports interest rate neutral balance sheet strategy
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted EPS | Beat | $0.47 | $0.38 (3 Analysts) |
Q2 EPS |
| $0.46 |
|
Q2 Net Income |
| $4.49 mln |
|
Q2 Net Interest Income |
| $19.64 mln |
|
Q2 Pretax Profit | Beat | $5.43 mln | $4.87 mln (3 Analysts) |
Q2 Net Interest Margin (%) |
| 3.0% |
|
Q2 Provision for Credit Losses |
| $141,000 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Investar Holding Corp is $27.00, about 18.7% above its July 18 closing price of $21.96
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nACSMx8SRa
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