Investar Q2 adjusted EPS beats estimates, net interest margin improves

Overview

• U.S. regional bank's Q2 adjusted EPS beat analyst expectations

• Net interest margin improved to 3.67% from 3.59% in the previous quarter

• Company repurchased 27,235 shares during Q2 and raised quarterly dividend by 9%

Outlook

• Investar expects future growth both organically and through potential acquisitions

Result Drivers

• MARGIN IMPROVEMENT - Net interest margin rose due to lower cost of funds and a shift to lower-cost, non-maturing deposits

• LOAN PORTFOLIO SHIFT - Company continued strategy to let consumer mortgage loans run off and increase business lending, especially commercial and industrial loans

• HIGHER NONINTEREST EXPENSE - Noninterest expense rose due to acquisition costs, hiring of commercial bankers, and increased salaries and benefits

Company press release: ID:nPn3TCZja

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "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 $33.50, about 12.2% above its July 17 closing price of $29.87

• The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)