US bank Investar gains after disclosing $3.4 million recovery

Investar Holding

21/03/2025 18:15

** Shares of Investar Holding ISTR.O rise 5.5% to $18.33

** Community bank has received $3.4 million as property insurance settlement tied to a late 2021 credit incident related to Hurricane Ida, it disclosed late Thursday

** Hovde Group reiterates "outperform" rating on ISTR and estimates a $2.6 million benefit to the bank's net income in Q1 2025 via the recovery

** Brokerage says it is encouraged by the management's ability to recoup losses related to the incident

** Adds its thesis on ISTR shares as a deeply discounted stock with solid profitability growth prospects remains intact

** Two of three brokerages rate the stock "buy" or higher and one "hold"; median PT is $23.50 - data compiled by LSEG

** ISTR shares down 18% YTD

 (Reporting by Arasu Kannagi Basil in Bengaluru)

 ((ArasuKannagi.Basil@thomsonreuters.com;))