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Investar Holding's Business Segments
Investar Holding's reported revenue by business segment and by geographic region, quarterly and annual, normalized against the consolidated income statement. Free below: the top 3 rows per table, this quarter and this fiscal year. Subscriber access adds the full segment history and operating income by segment.
Segment Data As of FY
Reportable Segments
2
Largest Segment
Deposit Account
Total Revenue
$ 36
Regions Reported
-
Revenue Share by Reportable Segment - FY
- Deposit Account5.2%
- Credit and Debit Card3%
Revenue by Reportable Segment - FY
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Deposit Account | $ 2 | 5.2% |
| Credit and Debit Card | $ 1 | 3% |
Annual Results
Revenue Share by Reportable Segment - FY
- Deposit Account5.2%
- Credit and Debit Card3%
Revenue by Reportable Segment - FY
| Segment | Revenue (Millions) | % of Total |
|---|---|---|
| Deposit Account | $ 2 | 5.2% |
| Credit and Debit Card | $ 1 | 3% |
Description of Investar Holding
Investar Holding Corporation, a Louisiana corporation incorporated in 2009, is
a financial holding company headquartered in Baton Rouge, Louisiana that conducts
its operations primarily through its wholly-owned subsidiary, Investar Bank (the
“Bank”), a Louisiana commercial bank, chartered in 2006. Through the
Bank, the Company offers a wide range of commercial banking products tailored
to meet the needs of individuals and small to medium-sized businesses. The primary
markets served are Baton Rouge, New Orleans, Hammond and Lafayette, Louisiana,
and their surrounding metropolitan areas. These markets are served from our main
office located in Baton Rouge and from ten additional full service branches located
throughout our market areas.
Investar Holding Corporation, through its subsidiary Investar Bank, offers a diverse portfolio of financial products and services primarily targeting commercial entities and individual consumers. Their offerings encompass various loan types, each designed to cater to specific customer needs, while also reflecting different risk profiles and terms. Here is an extensive description of the segments, products, and services offered by Investar Holding Corporation:
1. Commercial Real Estate Loans
Investars commercial real estate loans comprise approximately 43% of its total loan portfolio. This category includes:
- Multifamily Loans: Loans specifically designated for residential buildings with multiple units, supporting housing development and acquisition.
- Farmland Loans: Financing designed for the purchase and development of agricultural land.
- Commercial Property Loans: Loans aimed at financing the acquisition or development of commercial properties, such as office buildings, retail centers, and industrial facilities.
- Owner-Occupied Loans: Loans where the borrower occupies the property, representing about 43% of the commercial real estate portfolio.
Terms and Features:
- Loan terms generally range from 10 years or less, with amortization periods that may extend longer.
- Interest rates can be either fixed or adjustable, though fixed rates typically do not exceed a 120-month term.
- Origination fees are customary.
- Loans are generally secured by the property and typically require personal guarantees from the principal owners.
Risks:
Investar actively manages risks associated with the fluctuating value of real estate, market conditions, and tenant vacancy rates through ongoing analysis of borrower financials and collateral value.
Construction and Development Loans
This segment consists of financing for constructing various projects, including:
- Commercial Construction: Loans aimed at constructing office buildings, retail spaces, and industrial facilities.
- Residential Construction: Financing for single-family homes and multifamily units.
Terms and Features:
- Loans are typically offered for a term of 6 to 12 months.
- Interest payments accrue at either fixed or floating rates.
- Secured against the completed or developing project.
- Loan-to-value ratios for construction loans range from 75% to 80%, while development loans typically do not exceed 70% to 75%.
Risks:
The construction loan segment carries increased risk due to the uncertain value of projects under construction. Investar mitigates these risks through meticulous evaluation of projects, borrower relationships, and loan-to-value ratios.
Commercial and Industrial Loans
Investar provides loans primarily aimed at businesses, including:
- Working Capital Lines of Credit: Short-term financing to support daily operations.
- Equipment Loans: Financing for purchasing machinery and equipment, generally structured over five years or less at fixed or floating rates.
Terms and Features:
- Working capital loans typically have terms not exceeding one year and are secured by accounts receivable or inventory.
- Equipment financing is fully amortized over the loan’s term.
Risks:
Repayment primarily depends on borrower cash flow and business viability, not solely on collateral liquidation, which is identified as a secondary repayment source.
Consumer Loans
Investar offers a variety of loans for individual customers, representing about 16% of total loans. These products include:
- Auto Loans: Initially comprising most consumer loans; however, Investar ceased indirect lending in November 2015 and now focuses on managing its existing portfolio.
- Secured and Unsecured Personal Loans: Installment and term loans meant for various personal needs, including second mortgages and home equity products.
Terms and Features:
- Auto loans comprise 80% of consumer loans; amortization typically aligns with the valuable assets lifecycle.
- Secured loans are backed by depreciable assets, while home equity loans typically do not exceed an 80% loan-to-value ratio unless private mortgage insurance is available.
Risks:
Consumer loans are subject to risks that can stem from personal financial instability. The underwriting process involves extensive evaluation of a borrower’s credit history, income, and the value of collateral.
Residential Real Estate Loans
This segment includes loans for one-to-four family residential properties, accounting for about 21% of total loans.
- First Mortgages and Second Mortgages: Primarily aimed at home purchases, where second mortgages are limited to covering gaps between purchase prices and primary mortgage amounts.
Terms and Features:
- Long-term fixed-rate mortgages are often sold on the secondary market, while jumbo loans are retained in the portfolio.
- Use of independent appraisers ensures accurate collateral valuation.
In summary, Investar Holding Corporation’s comprehensive loan offerings span multiple segments, including commercial and industrial spheres, construction and development financing, as well as personal consumer loans. Each loan type includes various terms and features, alongside distinct risks that require diligent risk management and assessment practices. The companys commitment to maintaining stringent underwriting practices helps safeguard its portfolio against potential losses while catering to the diverse financial needs of its clientele.
1. Commercial Real Estate Loans
Investars commercial real estate loans comprise approximately 43% of its total loan portfolio. This category includes:
- Multifamily Loans: Loans specifically designated for residential buildings with multiple units, supporting housing development and acquisition.
- Farmland Loans: Financing designed for the purchase and development of agricultural land.
- Commercial Property Loans: Loans aimed at financing the acquisition or development of commercial properties, such as office buildings, retail centers, and industrial facilities.
- Owner-Occupied Loans: Loans where the borrower occupies the property, representing about 43% of the commercial real estate portfolio.
Terms and Features:
- Loan terms generally range from 10 years or less, with amortization periods that may extend longer.
- Interest rates can be either fixed or adjustable, though fixed rates typically do not exceed a 120-month term.
- Origination fees are customary.
- Loans are generally secured by the property and typically require personal guarantees from the principal owners.
Risks:
Investar actively manages risks associated with the fluctuating value of real estate, market conditions, and tenant vacancy rates through ongoing analysis of borrower financials and collateral value.
Construction and Development Loans
This segment consists of financing for constructing various projects, including:
- Commercial Construction: Loans aimed at constructing office buildings, retail spaces, and industrial facilities.
- Residential Construction: Financing for single-family homes and multifamily units.
Terms and Features:
- Loans are typically offered for a term of 6 to 12 months.
- Interest payments accrue at either fixed or floating rates.
- Secured against the completed or developing project.
- Loan-to-value ratios for construction loans range from 75% to 80%, while development loans typically do not exceed 70% to 75%.
Risks:
The construction loan segment carries increased risk due to the uncertain value of projects under construction. Investar mitigates these risks through meticulous evaluation of projects, borrower relationships, and loan-to-value ratios.
Commercial and Industrial Loans
Investar provides loans primarily aimed at businesses, including:
- Working Capital Lines of Credit: Short-term financing to support daily operations.
- Equipment Loans: Financing for purchasing machinery and equipment, generally structured over five years or less at fixed or floating rates.
Terms and Features:
- Working capital loans typically have terms not exceeding one year and are secured by accounts receivable or inventory.
- Equipment financing is fully amortized over the loan’s term.
Risks:
Repayment primarily depends on borrower cash flow and business viability, not solely on collateral liquidation, which is identified as a secondary repayment source.
Consumer Loans
Investar offers a variety of loans for individual customers, representing about 16% of total loans. These products include:
- Auto Loans: Initially comprising most consumer loans; however, Investar ceased indirect lending in November 2015 and now focuses on managing its existing portfolio.
- Secured and Unsecured Personal Loans: Installment and term loans meant for various personal needs, including second mortgages and home equity products.
Terms and Features:
- Auto loans comprise 80% of consumer loans; amortization typically aligns with the valuable assets lifecycle.
- Secured loans are backed by depreciable assets, while home equity loans typically do not exceed an 80% loan-to-value ratio unless private mortgage insurance is available.
Risks:
Consumer loans are subject to risks that can stem from personal financial instability. The underwriting process involves extensive evaluation of a borrower’s credit history, income, and the value of collateral.
Residential Real Estate Loans
This segment includes loans for one-to-four family residential properties, accounting for about 21% of total loans.
- First Mortgages and Second Mortgages: Primarily aimed at home purchases, where second mortgages are limited to covering gaps between purchase prices and primary mortgage amounts.
Terms and Features:
- Long-term fixed-rate mortgages are often sold on the secondary market, while jumbo loans are retained in the portfolio.
- Use of independent appraisers ensures accurate collateral valuation.
In summary, Investar Holding Corporation’s comprehensive loan offerings span multiple segments, including commercial and industrial spheres, construction and development financing, as well as personal consumer loans. Each loan type includes various terms and features, alongside distinct risks that require diligent risk management and assessment practices. The companys commitment to maintaining stringent underwriting practices helps safeguard its portfolio against potential losses while catering to the diverse financial needs of its clientele.