Investar Q2 EPS Drops 47% as Loan Mix Shifts, NIM Improves
ISTR sits 42% above its 52-week low of $20.99.
Summary
Investar's Q2 net income fell to $8.9M ($0.61 diluted) from $11.5M in Q1, a 23% decline, as the loan book shifted toward commercial and industrial lending while mortgages ran off. Non-GAAP core EPS was $0.75, and net interest margin expanded 8 bps to 3.67% on lower funding costs and a shift to non-maturing deposits. The earnings drop follows a strong Q1 boosted by the WFB acquisition, and the dividend was raised 9% in June. The margin improvement is a positive offset, but the headline EPS decline and loan mix change will likely pressure the stock.
At the time of this announcement, ISTR was trading at $29.87 on NASDAQ in the Finance sector, with a market capitalization of approximately $412M. The 52-week trading range was $20.99 to $31.77. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Wiseek News.