Investar Holding Corporation delivered a mixed Q3 2024 performance. Revenue for the quarter totaled $20.278 million, up 4.13% year-over-year but down 47.38% versus the prior quarter, reflecting seasonality and a shift in operating dynamics. Gross profit reached $16.966 million with a robust gross margin of approximately 83.7%, yet operating income remained modest at $0.561 million (operating margin ~2.77%). Net income was $5.381 million for the quarter, translating to a net margin of ~26.5% and earnings per diluted share of $0.54 (basic $0.55). The quarter benefited notably from total other income and expenses net of about $5.604 million, which more than offset a substantial interest expense of roughly $19.992 million and a minimal operating profit contribution. YoY net income grew ~93.5%, while QoQ net income rose ~32.6%, underscoring the impact of non-operating items on quarterly profitability.
From a liquidity and balance sheet perspective, Investar reported total assets of ~$2.802 billion, with a heavy tilt toward long-term investments (~$2.162 billion) and intangible assets (~$41.8 million). Cash and equivalents stood at $86.34 million, and net debt was approximately $35.36 million (total debt ~$121.7 million). The reflected liquidity position shows an implied current ratio around the low-0.3x range in the ratios, signaling liquidity headwinds given sizable current liabilities (~$2.30 billion). Despite the liquidity challenge, cash flow generation was healthy: operating cash flow of ~$5.56 million and free cash flow of ~$5.45 million, with net cash provided by financing activities of ~$1.76 million and a net cash increase of ~$16.67 million for the period.
Overall, the core banking operations exhibit modest profitability with a substantial reliance on non-operating income to elevate quarterly earnings. The stock remains attractively valued on a price-to-earnings basis versus peers (P/E ~8.9) and trades near book value (P/B ~0.78), but liquidity and balance sheet risk warrant careful scrutiny as management assesses loan growth, funding costs, and capital deployment.