Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________

FORM 8-K
___________________
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): January 25, 2018




Investar Holding Corporation
(Exact name of registrant as specified in its charter)


 
Louisiana
001-36522
27-1560715
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
 
 
7244 Perkins Road
Baton Rouge, Louisiana 70808
 
 
(Address of principal executive offices) (Zip Code)
 
 
Registrant’s telephone number, including area code: (225) 227-2222


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company þ

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. þ





Item 2.02
Results of Operations and Financial Condition.
On January 25, 2018, Investar Holding Corporation issued a press release announcing its financial results for the quarter ended December 31, 2017. A copy of the press release is furnished as exhibit 99.1 to this Current Report on Form 8-K.
The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01
Financial Statements and Exhibits.
(d) Exhibits

Exhibit Number
 
Description of Exhibit
 
 
 
 









SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
 
 
INVESTAR HOLDING CORPORATION
 
 
 
 
Date: January 26, 2018
 
 
 
By:
 
/s/ John J. D’Angelo
 
 
 
 
 
 
John J. D’Angelo
 
 
 
 
 
 
President and Chief Executive Officer




Exhibit
Exhibit 99.1
For Immediate Release

Investar Holding Corporation Announces Record Revenues Following Second Acquisition in 2017

BATON ROUGE, LA (January 25, 2018) – Investar Holding Corporation (NASDAQ: ISTR) (the “Company”), the holding company for Investar Bank (the “Bank”), today announced financial results for the quarter ended December 31, 2017. The Company reported net income of $2.3 million, or $0.25 per diluted common share, for the fourth quarter of 2017, compared to $2.1 million, or $0.24 per diluted common share, for the quarter ended September 30, 2017, and $1.8 million, or $0.26 per diluted common share, for the quarter ended December 31, 2016.

On a non-GAAP basis, core earnings per share in the fourth quarter of 2017 were $0.35 and $0.34 per basic and diluted common share, respectively (refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics).

On December 22, 2017, President Trump signed “H.R.1,” referred to as the Tax Cuts and Jobs Act, which, among other items, reduces the federal corporate tax rate to 21% effective January 1, 2018. As a result, the Company was required to revalue its deferred tax assets and liabilities to account for the future impact of a lower corporate tax rate. The revaluation of the Company’s deferred tax assets and liabilities resulted in a one-time charge to income tax expense of approximately $0.3 million, which resulted in a reduction in diluted earnings per share for the fourth quarter of 2017 of approximately $0.03. The Company’s final analysis and write-down will be based on a number of factors, including completion of the Company’s 2017 consolidated tax return.

The Company’s balance sheet and statement of income as of and for the three and twelve months ended December 31, 2017 include the impact of the Company’s acquisition of BOJ Bancshares, Inc. and its wholly-owned subsidiary, The Highlands Bank (together “BOJ”), which was completed on December 1, 2017 and the acquisition of Citizens Bancshares, Inc. and its wholly-owned subsidiary, Citizens Bank (together “Citizens”), which was completed on July 1, 2017. As of the acquisition date, BOJ operated five branch locations and had approximately $152 million in total assets, including approximately $104 million in loans, and approximately $126 million in deposits. As of the acquisition date, Citizens operated three branch locations and had approximately $250 million in total assets, including approximately $130 million in loans, and approximately $212 million in deposits. The assets acquired and liabilities assumed have been recorded at fair value and are subject to refinement for up to one year after the closing date of the acquisition as additional information becomes available.
Investar Holding Corporation President and Chief Executive Officer John D’Angelo said:
“The fourth quarter was another exciting quarter for Investar. We completed the acquisition of BOJ Bancshares, Inc. and its wholly-owned subsidiary, The Highlands Bank, on December 1, 2017, which was our second acquisition in 2017. We expect to complete the integration of the branch and operating systems in the first quarter of 2018.
Despite the effects of the Tax Cuts and Jobs Act on the fourth quarter results, we believe the Company, as well as its shareholders, will benefit from lower corporate tax rates in 2018 and beyond. Additionally, with the completion of two acquisitions in 2017, our results are strong as we head into 2018, and we look forward to recognizing the benefits of the acquisitions in the coming year. We have built a great team of experienced members focused on growing relationships with our customers and look forward to 2018 as the opportunities to continue to grow revenues and expand our customer base remain strong.”
Fourth Quarter Highlights
Total revenues, or interest and noninterest income, for the quarter ended December 31, 2017 totaled $16.9 million, an increase of $1.3 million, or 8.5%, compared to September 30, 2017, and an increase of $5.0 million, or 41.6%, compared to December 31, 2016.
Total loans increased $148.3 million, or 13.4%, to $1.3 billion at December 31, 2017, compared to $1.1 billion at September 30, 2017, and increased $365.4 million, or 40.9%, compared to $893.4 million at December 31, 2016. Excluding loans acquired in the BOJ acquisition, or $100.0 million, total loans increased $48.2 million, or 4.3%, to $1.2 billion at December 31, 2017, compared to $1.1 billion at September 30, 2017. Excluding loans acquired in both the BOJ and Citizens acquisitions, or $217.5 million, total loans increased $147.9 million, or 16.6%, to $1.0 billion at December 31, 2017, compared to $893.4 million at December 31, 2016.
The business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $407.8 million at December 31, 2017, an increase of $65.2 million, or 19.0%, compared to the business lending portfolio of $342.6 million at September 30, 2017, and an increase of $142.0 million, or 53.4%, compared to the business lending portfolio of $265.8 million at December 31, 2016.



Noninterest-bearing deposits increased $41.5 million, or 23.7%, to $216.6 million at December 31, 2017, compared to $175.1 million at September 30, 2017, and increased $108.2 million, or 99.8%, compared to $108.4 million at December 31, 2016. Excluding noninterest-bearing deposits acquired in the BOJ acquisition, or $34.0 million, noninterest-bearing deposits increased $7.4 million, or 4.2%, to $182.6 million at December 31, 2017 compared to $175.1 million at September 30, 2017. Excluding noninterest-bearing deposits acquired in both the BOJ and Citizens acquisitions, or $77.5 million, noninterest-bearing deposits increased $30.7 million, or 28.3%, to $139.1 million at December 31, 2017, compared to $108.4 million at December 31, 2016.
Net interest margin increased fifteen basis points to 3.55% for the quarter ended December 31, 2017, compared to 3.40% for the quarter ended September 30, 2017, and increased thirty-five basis points from 3.20% for the quarter ended December 31, 2016. Exclusive of interest income accretion of $0.2 million in both the quarters ended December 31, 2017 and September 30, 2017, and a $40,000 interest recovery in the quarter ended December 31, 2017, net interest margin increased fourteen basis points to 3.48% for the quarter ended December 31, 2017 compared to 3.34% for the quarter ended September 30, 2017, and increased twenty-eight basis points from 3.20% for the quarter ended December 31, 2016.
Cost of deposits increased one basis point to 0.92% for the quarter ended December 31, 2017, compared to 0.91% for the quarter ended September 30, 2017, but decreased six basis points compared to 0.98% for the quarter ended December 31, 2016.
The Company completed the acquisition of BOJ on December 1, 2017. The conversion of branch and operating systems is expected to be completed during the first quarter of 2018.
The Company repurchased 10,463 shares of its common stock through its stock repurchase program at an average price of $23.08 during the quarter ended December 31, 2017.








Loans
Total loans were $1.3 billion at December 31, 2017, an increase of $148.3 million, or 13.4%, compared to September 30, 2017, and an increase of $365.4 million, or 40.9%, compared to December 31, 2016. Included in total loans at December 31, 2017 is $100.0 million, or 7.9% of the total loan portfolio, of loans acquired from BOJ. Exclusive of loans acquired from BOJ, total loans at December 31, 2017 increased $48.2 million, or 4.3%, compared to $1.1 billion at September 30, 2017. Exclusive of loans acquired from BOJ and Citizens, or $217.5 million, total loans increased $147.9 million, or 16.6%, compared to December 31, 2016.
The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated (dollars in thousands).

 
 
 
 
 
 
 
 
Linked Quarter Change
 
Year/Year Change
 
Percentage of Total Loans
 
 
12/31/2017
 
9/30/2017
 
12/31/2016
 
$
 
%
 
$
 
%
 
12/31/2017
 
12/31/2016
Mortgage loans on real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction and development
 
$
157,667

 
$
122,501

 
$
90,737

 
$
35,166

 
28.7
 %
 
$
66,930

 
73.8
 %
 
12.5
%
 
10.2
%
1-4 Family
 
276,922

 
252,003

 
177,205

 
24,919

 
9.9

 
99,717

 
56.3

 
22.0

 
19.8

Multifamily
 
51,283

 
50,770

 
42,759

 
513

 
1.0

 
8,524

 
19.9

 
4.1

 
4.8

Farmland
 
23,838

 
14,130

 
8,207

 
9,708

 
68.7

 
15,631

 
190.5

 
1.9

 
0.9

Commercial real estate
 

 

 

 

 

 

 

 

 

Owner-occupied
 
272,433

 
217,369

 
180,458

 
55,064

 
25.3

 
91,975

 
51.0

 
21.6

 
20.2

Nonowner-occupied
 
264,931

 
245,053

 
200,258

 
19,878

 
8.1

 
64,673

 
32.3

 
21.0

 
22.4

Commercial and industrial
 
135,392

 
125,230

 
85,377

 
10,162

 
8.1

 
50,015

 
58.6

 
10.8

 
9.6

Consumer
 
76,313

 
83,465

 
108,425

 
(7,152
)
 
(8.6
)
 
(32,112
)
 
(29.6
)
 
6.1

 
12.1

Total loans
 
1,258,779

 
1,110,521

 
893,426

 
148,258

 
13.4
 %
 
365,353

 
40.9
 %
 
100
%
 
100
%
Construction and development loans were $157.7 million at December 31, 2017, an increase of $35.2 million, or 28.7%, compared to $122.5 million at September 30, 2017, and an increase of $66.9 million, or 73.8%, compared to $90.7 million at December 31, 2016. The increase in the construction and development portfolio at December 31, 2017 compared to September 30, 2017 is partly attributable to the $21.5 million balance of these loans acquired from BOJ. The increase in this portfolio compared to December 31, 2016 is primarily a result of organic growth in the Company’s Baton Rouge market where our lenders have great experience and long-standing relationships with local developers.
One-to-four family loans were $276.9 million at December 31, 2017, an increase of $24.9 million, or 9.9%, compared to $252.0 million at September 30, 2017, and an increase of $99.7 million, or 56.3%, compared to $177.2 million at December 31, 2016. The increase in the 1-4 family portfolio is primarily a result of the approximately $79.4 million balance at December 31, 2017 of 1-4 family loans acquired from both BOJ and Citizens.
Owner-occupied commercial real estate loans were $272.4 million at December 31, 2017, an increase of $55.1 million, or 25.3%, compared to $217.4 million at September 30, 2017, and an increase of $92.0 million, or 51.0%, compared to $180.5 million at December 31, 2016. The increase in the owner-occupied portfolio is primarily a result of the approximately $37.7 million of these loans acquired from both BOJ and Citizens.
At December 31, 2017, the Company’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $407.8 million, an increase of $65.2 million, or 19.0%, compared to the business lending portfolio of $342.6 million at September 30, 2017, and an increase of $142.0 million, or 53.4%, compared to the business lending portfolio of $265.8 million at December 31, 2016. Included in the business lending portfolio at December 31, 2017 is $71.1 million of loans acquired from BOJ and Citizens. The Company continues to focus on relationship banking and growing its commercial loan portfolio.
Consumer loans, including indirect auto loans of $55.9 million, totaled $76.3 million at December 31, 2017, a decrease of $7.2 million, or 8.6%, compared to $83.5 million, including indirect auto loans of $64.1 million, at September 30, 2017, and a decrease of $32.1 million, or 29.6%, compared to $108.4 million, including indirect auto loans of $92.1 million, at December 31, 2016. Excluding consumer loans acquired from BOJ, or $1.9 million, consumer loans decreased $9.0 million, or 10.8%, compared to September 30, 2017. Excluding consumer loans acquired from BOJ and Citizens, or $9.3 million, consumer loans decreased $41.4 million, or 38.2%, compared to December 31, 2016. The decrease in consumer loans is attributable to the scheduled paydowns of this portfolio and is consistent with our business strategy.



Credit Quality
While the Company’s internal focus has been directed toward managing growth and the integration of its recent acquisitions, its commitment to credit quality remains strong. Nonperforming loans were $3.7 million, or 0.29% of total loans, at December 31, 2017, an increase of $1.5 million compared to $2.2 million, or 0.20% of total loans, at September 30, 2017, and an increase of $1.7 million compared to $2.0 million at December 31, 2016. The increase in nonperforming loans at December 31, 2017 compared to September 30, 2017 and December 31, 2016 is mainly attributable to the acquisition of $1.7 million and $0.7 million of nonperforming loans from BOJ and Citizens, respectively.
The allowance for loan losses was $7.9 million, or 214.43% and 0.63% of nonperforming and total loans, respectively, at December 31, 2017, compared to $7.6 million, or 349.64% and 0.68%, respectively, at September 30, 2017, and $7.1 million, or 356.16% and 0.79%, respectively, at December 31, 2016. As a result of the acquisitions of BOJ and Citizens, the Company is holding acquired loans that are carried net of a fair value adjustment for credit and interest rate marks and are only included in the allowance calculation to the extent that the reserve requirement exceeds the fair value adjustment.
The provision for loan losses was $0.4 million for the quarters ended December 31, 2017, September 30, 2017, and December 31, 2016.
Deposits
Total deposits at December 31, 2017 were $1.2 billion, an increase of $123.9 million, or 11.2%, compared to September 30, 2017, and an increase of $317.5 million, or 35.0%, compared to December 31, 2016. The Company acquired $126.1 million and $212.2 million in deposits from the BOJ and Citizens acquisitions, respectively. Exclusive of deposits acquired from BOJ, total deposits decreased $2.2 million, or 0.2%, compared to September 30, 2017. Exclusive of deposits acquired from BOJ and Citizens, total deposits decreased $11.2 million, or 1.2%, compared to December 31, 2016. The decrease in deposits, exclusive of acquired deposits, at December 31, 2017 compared to December 31, 2016 is primarily due to a decrease in time deposits of $62.3 million, or 13.8%, resulting from the Bank’s strategy to decrease its dependence on non-retail certificates of deposit.

The following table sets forth the composition of the Company’s deposits as of the dates indicated (dollars in thousands).
 
 
 
 
 
 
 
 
Linked Quarter Change
 
Year/Year Change
 
Percentage of
Total Deposits
 
 
12/31/2017
 
9/30/2017
 
12/31/2016
 
$
 
%
 
$
 
%
 
12/31/2017
 
12/31/2016
Noninterest-bearing demand deposits
 
$
216,599

 
$
175,130

 
$
108,404

 
$
41,469

 
23.7
 %
 
$
108,195

 
99.8
%
 
17.7
%
 
11.9
%
NOW accounts
 
208,683

 
192,503

 
171,556

 
16,180

 
8.4

 
37,127

 
21.6

 
17.0

 
18.9

Money market deposit accounts
 
146,140

 
147,096

 
123,079

 
(956
)
 
(0.6
)
 
23,061

 
18.7

 
11.9

 
13.6

Savings accounts
 
117,372

 
103,017

 
52,860

 
14,355

 
13.9

 
64,512

 
122.0

 
9.6

 
5.8

Time deposits
 
536,443

 
483,616

 
451,888

 
52,827

 
10.9

 
84,555

 
18.7

 
43.8

 
49.8

Total deposits
 
$
1,225,237

 
$
1,101,362

 
$
907,787

 
$
123,875

 
11.2
 %
 
$
317,450

 
35.0
%
 
100.0
%
 
100.0
%
Financial Results for the Quarter Ended December 31, 2017
The financial results for the quarter ended December 31, 2017 reflect the acquisition of BOJ beginning December 1, 2017. The acquisition of BOJ added five branch locations in East and West Feliciana Parishes with total assets of approximately $152 million, total loans of $104 million, and total deposits of $126 million. During the quarter ended December 31, 2017, the Company recognized $0.8 million in expenses related to the acquisition activity during the year.
On December 22, 2017, President Trump signed the Tax Cuts and Jobs Act, which, among other items, reduces the federal corporate tax rate to 21% effective January 1, 2018. As a result, the Company was required to revalue its deferred tax assets and liabilities to account for the future impact of a lower corporate tax rate. The revaluation of the Company’s deferred tax assets and liabilities resulted in a one-time charge to income tax expense of approximately $0.3 million, which caused a $0.03 reduction in diluted earnings per share for the quarter.



Net Interest Income
Net interest income for the fourth quarter of 2017 totaled $12.8 million, an increase of $1.3 million, or 11.1%, compared to the third quarter of 2017, and an increase of $4.0 million, or 46.0%, compared to the fourth quarter of 2016. Included in net interest income for the quarters ended December 31, 2017 and September 30, 2017 is $0.2 million of interest income accretion from the acquisition of loans during those quarters. The increase in net interest income was primarily driven by growth in loan and securities balances partially offset by an increase in interest expense as we funded the increase in earning assets with increased deposits and borrowings. Net interest income for the fourth quarter of 2017 increased $3.5 million and $1.4 million due to increases in the volume and yield, respectively, of interest-earning assets, offset slightly by decreases of $0.6 million and $0.3 million due to the increases in the volume and rate, respectively, of interest-bearing liabilities compared to the fourth quarter of 2016.
The Company’s net interest margin was 3.55% for the quarter ended December 31, 2017 compared to 3.40% for the quarter ended September 30, 2017 and 3.20% for the quarter ended December 31, 2016. The yield on interest-earning assets was 4.42% for the quarter ended December 31, 2017 compared to 4.26% for the quarter ended September 30, 2017 and 4.04% for the quarter ended December 31, 2016. The increase in net interest margin at December 31, 2017 compared to both September 30, 2017 and December 31, 2016 was driven by an increase in interest-earning assets and the yields earned on those assets, and an increase in the volume of lower cost deposits, partially resulting from the acquisitions of both BOJ and Citizens. Exclusive of the interest income accretion from the acquisition of loans, discussed in the preceding paragraph, as well as a $40,000 interest recovery in the quarter ended December 31, 2017, net interest margin was 3.48% for the quarter ended December 31, 2017 compared to 3.34% for the quarter ended September 30, 2017 and 3.20% for the quarter ended December 31, 2016. The yield on interest-earning assets was 4.35% at December 31, 2017 compared to 4.20% and 4.04% for the quarters ended September 30, 2017 and December 31, 2016, respectively.
The cost of deposits increased one basis point to 0.92% for the quarter ended December 31, 2017 compared to 0.91% for the quarter ended September 30, 2017 and decreased six basis points compared to 0.98% at December 31, 2016. The decrease in the cost of deposits when compared to the quarter ended December 31, 2016 is a result of a decrease in the cost of savings deposits and time deposits. The overall costs of funds for the quarter ended December 31, 2017 increased two basis points to 1.07% compared to 1.05% for the quarter ended September 30, 2017 and increased eight basis points compared to 0.99% for the quarter ended December 31, 2016. The increase in the cost of deposits and cost of funds at December 31, 2017 compared to September 30, 2017 is mainly a result of an increase in the cost of time deposits and short term borrowings. The increase in the cost of funds at December 31, 2017 compared to December 31, 2016 is mainly attributable to the increase in long term borrowings resulting from the Company’s issuance and sale, on March 24, 2017, of $18.6 million in aggregate principal amount of its 6.00% Fixed-to-Floating Rate Subordinated Notes due in 2027.
Noninterest Income
Noninterest income for the fourth quarter of 2017 totaled $1.0 million, a decrease of $0.2 million, or 17.6%, compared to the third quarter of 2017, and an increase of $0.1 million, or 7.4%, compared to the fourth quarter of 2016. The decrease in noninterest income when compared to the quarter ended September 30, 2017 is due to a $0.2 million decrease in gain on sale of fixed assets.
Noninterest Expense
Noninterest expense for the fourth quarter of 2017 totaled $9.6 million, an increase of $0.5 million, or 5.3%, compared to the third quarter of 2017, and an increase of $3.0 million, or 45.5%, compared to the fourth quarter of 2016. The increase in noninterest expense compared to the quarters ended September 30, 2017 and December 31, 2016 is mainly attributable to the increases in both salaries and employee benefits and acquisition expense. The increase in salaries and employee benefits is a result of the increase in employees following the BOJ and Citizens acquisitions, as well as the addition of four commercial lenders in the Baton Rouge, New Orleans and Lafayette markets, and a Community Development Officer and Treasury Management Sales Officer in the New Orleans market during the quarter ended September 30, 2017. The increase in acquisition expense was a result of the Citizens acquisition that was completed on July 1, 2017 and the BOJ acquisition that was completed on December 1, 2017.
Basic Earnings Per Share and Diluted Earnings Per Common Share
The Company reported both basic and diluted earnings per common share of $0.25 for the quarter ended December 31, 2017, a decrease of $0.01 compared to basic and diluted earnings per common share of $0.26 for the quarter ended December 31, 2016. The decrease in both basic and diluted earnings per share is attributable to the Company’s issuance of approximately 1.6 million common shares as part of a public offering on March 22, 2017, the issuance of approximately 0.8 million common shares as consideration in the acquisition of BOJ, the $0.8 million in acquisition expenses, and the $0.3 million charge to income tax expense as a result of the Tax Cuts and Jobs Act recognized during the quarter ended December 31, 2017.



Taxes
The Company recorded income tax expense of $1.5 million for the quarter ended December 31, 2017, which equates to an effective tax rate of 39.5%, an increase from the effective tax rates of 32.6% and 31.5% for the quarters ended September 30, 2017 and December 31, 2016, respectively. The income tax expense for the quarter ended December 31, 2017 includes a one-time charge of $0.3 million as a result of the revaluation of the Company’s deferred tax assets and liabilities required following the enactment of the Tax Cuts and Jobs Act. The Company’s final analysis and write-down will be based on a number of factors, including completion of the Company’s 2017 consolidated tax return. Management expects the Company’s effective tax rate to approximate 20% beginning in 2018, mainly as a result of the Tax Cuts and Jobs Act.
About Investar Holding Corporation
Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, a state chartered bank. The Company’s primary market is South Louisiana and it currently operates 20 full service banking offices located throughout its market. At December 31, 2017, the Company had 258 full-time equivalent employees.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures and ratios include “tangible common equity,” “tangible assets,” “tangible equity to tangible assets,” “tangible book value per common share,” “core noninterest income,” “core earnings before noninterest expense,” “core noninterest expense,” “core earnings before income tax expense,” “core income tax expense,” “core earnings,” “core efficiency ratio,” “core return on average assets,” “core return on average equity,” “core basic earnings per share,” and “core diluted earnings per share.” Management believes these non-GAAP financial measures provide information useful to investors in understanding the Company’s financial results, and the Company believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting the Company’s business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. These factors include, but are not limited to, the following, any one or more of which could materially affect the outcome of future events:

business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;
our ability to achieve organic loan and deposit growth, and the composition of that growth;
changes (or the lack of changes) in interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;
the extent of continuing client demand for the high level of personalized service that is a key element of our banking approach as well as our ability to execute our strategy generally;
our dependence on our management team, and our ability to attract and retain qualified personnel;



changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers;
inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates;
the concentration of our business within our geographic areas of operation in Louisiana;
concentration of credit exposure; and
the ability to effectively integrate employees, customers, operations and branches from our recent acquisitions of Citizens and BOJ.

In addition, forward-looking statement and estimates regarding the effects of the Tax Cuts and Jobs Act are based on our current interpretation of this legislation and may change as a result of additional implementation guidance, changes in assumptions, potential future refinements of or revisions to calculations and completion of the Company’s 2017 consolidated tax return.

These factors should not be construed as exhaustive. Additional information on these and other risk factors can be found in Item 1A. “Risk Factors” and in the “Special Note Regarding Forward-Looking Statements” in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the Securities and Exchange Commission.

For further information contact:
Investar Holding Corporation                
Chris Hufft
Chief Financial Officer
(225) 227-2215
Chris.Hufft@investarbank.com



INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)

 










 
As of and for the three months ended

 
12/31/2017
 
9/30/2017
 
12/31/2016
 
Linked Quarter
 
Year/Year
EARNINGS DATA
 
 
 
 
 
 
 
 
 
 
Total interest income
 
$
15,967

 
$
14,442

 
$
11,062

 
10.6
 %
 
44.3
 %
Total interest expense
 
3,150

 
2,904

 
2,281

 
8.5

 
38.1

Net interest income
 
12,817

 
11,538

 
8,781

 
11.1

 
46.0

Provision for loan losses
 
395

 
420

 
375

 
(6.0
)
 
5.3

Total noninterest income
 
962

 
1,167

 
896

 
(17.6
)
 
7.4

Total noninterest expense
 
9,608

 
9,122

 
6,603

 
5.3

 
45.5

Income before income taxes
 
3,776

 
3,163

 
2,699

 
19.4

 
39.9

Income tax expense
 
1,492

 
1,032

 
851

 
44.6

 
75.3

Net income
 
$
2,284

 
$
2,131

 
$
1,848

 
7.2

 
23.6

 
 
 
 
 
 
 
 
 
 
 
AVERAGE BALANCE SHEET DATA
 
 
 
 
 
 
 
 
 
 
Total assets
 
$
1,534,917

 
$
1,437,929

 
$
1,147,835

 
6.7
 %
 
33.7
 %
Total interest-earning assets
 
1,434,164

 
1,346,455

 
1,087,645

 
6.5

 
31.9

Total loans
 
1,169,686

 
1,073,800

 
889,814

 
8.9

 
31.5

Total interest-bearing deposits
 
957,847

 
927,014

 
798,250

 
3.3

 
20.0

Total interest-bearing liabilities
 
1,171,884

 
1,101,112

 
917,085

 
6.4

 
27.8

Total deposits
 
1,147,782

 
1,100,226

 
904,310

 
4.3

 
26.9

Total stockholders’ equity
 
160,485

 
152,186

 
113,917

 
5.5

 
40.9

 
 
 
 
 
 
 
 
 
 
 
PER SHARE DATA
 
 
 
 
 
 
 
 
 
 
Earnings:
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
$
0.25

 
$
0.24

 
$
0.26

 
4.2
 %
 
(3.8
)%
Diluted earnings per share
 
0.25

 
0.24

 
0.26

 
4.2

 
(3.8
)
Core Earnings(1):
 
 
 
 
 
 
 
 
 
 
Core basic earnings per share(1)
 
0.35

 
0.29

 
0.25

 
20.7

 
40.0

Core diluted earnings per share(1)
 
0.34

 
0.29

 
0.25

 
17.2

 
36.0

Book value per share
 
18.15

 
17.56

 
15.88

 
3.4

 
14.3

Tangible book value per share(1)
 
16.06

 
16.04

 
15.42

 
0.1

 
4.2

Common shares outstanding
 
9,514,926

 
8,704,562

 
7,101,851

 
9.3

 
34.0

Weighted average common shares outstanding - basic
 
8,981,014

 
8,702,559

 
7,017,213

 
3.2

 
28.0

Weighted average common shares outstanding - diluted
 
9,052,213

 
8,797,517

 
7,090,500

 
2.9

 
27.7

 
 
 
 
 
 
 
 
 
 
 
PERFORMANCE RATIOS
 
 
 
 
 
 
 
 
 
 
Return on average assets
 
0.59
%
 
0.59
%
 
0.65
%
 
 %
 
(9.2
)%
Core return on average assets(1)
 
0.81

 
0.70

 
0.61

 
15.7

 
32.8

Return on average equity
 
5.65

 
5.55

 
6.51

 
1.8

 
(13.2
)
Core return on average equity(1)
 
7.77

 
6.61

 
6.15

 
17.5

 
26.3

Net interest margin
 
3.55

 
3.40

 
3.20

 
4.4

 
10.9

Net interest income to average assets
 
3.31

 
3.18

 
3.04

 
4.1

 
8.9

Noninterest expense to average assets
 
2.48

 
2.52

 
2.28

 
(1.6
)
 
8.8

Efficiency ratio(2)
 
69.73

 
71.80

 
68.23

 
(2.9
)
 
2.2

Core efficiency ratio(1)
 
63.73

 
66.49

 
69.11

 
(4.2
)
 
(7.8
)
Dividend payout ratio
 
12.38

 
12.26

 
4.65

 
1.0

 
166.2

Net charge-offs to average loans
 
0.01

 
0.01

 
0.08

 

 
(87.5
)

 

 

 

 

 

(1) Non-GAAP financial measure. See reconciliation.
(2) Efficiency ratio represents noninterest expenses divided by the sum of net interest income (before provision for loan losses) and noninterest income.




INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
As of and for the three months ended
 
 
12/31/2017
 
9/30/2017
 
12/31/2016
 
Linked Quarter
 
Year/Year
ASSET QUALITY RATIOS
 
 
 
 
 
 
 
 
 
 
Nonperforming assets to total assets
 
0.46
%
 
0.41
%
 
0.52
%
 
12.2
 %
 
(11.5
)%
Nonperforming loans to total loans
 
0.29

 
0.20

 
0.22

 
45.0

 
31.8

Allowance for loan losses to total loans
 
0.63

 
0.68

 
0.79

 
(7.4
)
 
(20.3
)
Allowance for loan losses to nonperforming loans
 
214.43

 
349.64

 
356.16

 
(38.7
)
 
(39.8
)
 
 
 
 
 
 
 
 
 
 
 
CAPITAL RATIOS
 
 
 
 
 
 
 
 
 
 
Investar Holding Corporation:
 
 
 
 
 
 
 
 
 
 
Total equity to total assets
 
10.64
%
 
10.35
%
 
9.73
%
 
2.8
 %
 
9.4
 %
Tangible equity to tangible assets(1)
 
9.53

 
9.54

 
9.48

 
(0.1
)
 
0.5

Tier 1 leverage ratio
 
10.66

 
10.13

 
10.10

 
5.2

 
5.5

Common equity tier 1 capital ratio(2)
 
11.71

 
11.97

 
11.40

 
(2.2
)
 
2.7

Tier 1 capital ratio(2)
 
12.20

 
12.27

 
11.75

 
(0.6
)
 
3.8

Total capital ratio(2)
 
14.17

 
14.46

 
12.47

 
(2.0
)
 
13.6

Investar Bank:
 
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio
 
11.63

 
11.21

 
10.03

 
3.7

 
16.0

Common equity tier 1 capital ratio(2)
 
13.31

 
13.58

 
11.67

 
(2.0
)
 
14.1

Tier 1 capital ratio(2)
 
13.31

 
13.58

 
11.67

 
(2.0
)
 
14.1

Total capital ratio(2)
 
13.90

 
14.23

 
12.39

 
(2.3
)
 
12.2

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(1) Non-GAAP financial measure. See reconciliation.
(2) Estimated for December 31, 2017




INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)

 

 

 


 
December 31, 2017
 
September 30, 2017
 
December 31, 2016
ASSETS
 

 

 

Cash and due from banks
 
$
19,619

 
$
17,942

 
$
9,773

Interest-bearing balances due from other banks
 
10,802

 
30,566

 
19,569

Federal funds sold
 

 

 
106

Cash and cash equivalents
 
30,421

 
48,508

 
29,448


 

 

 

Available for sale securities at fair value (amortized cost of $220,077, $228,980, and $166,258, respectively)
 
217,564

 
227,562

 
163,051

Held to maturity securities at amortized cost (estimated fair value of $17,947, $19,311, and $19,612, respectively)
 
17,997

 
19,306

 
20,091

Loans, net of allowance for loan losses of $7,891, $7,605, and $7,051, respectively
 
1,250,888

 
1,102,916

 
886,375

Other equity securities
 
9,798

 
7,744

 
5,362

Bank premises and equipment, net of accumulated depreciation of $7,825, $7,362, and $6,751, respectively
 
37,540

 
33,705

 
31,722

Other real estate owned, net
 
3,837

 
3,830

 
4,065

Accrued interest receivable
 
4,688

 
4,147

 
3,218

Deferred tax asset
 
1,294

 
2,604

 
2,868

Goodwill and other intangible assets, net
 
19,926

 
13,271

 
3,234

Bank-owned life insurance
 
23,231

 
8,140

 
7,201

Other assets
 
5,550

 
4,690

 
2,325

Total assets
 
$
1,622,734

 
$
1,476,423

 
$
1,158,960


 

 

 

LIABILITIES
 

 

 

Deposits
 

 

 

Noninterest-bearing
 
$
216,599

 
$
175,130

 
$
108,404

Interest-bearing
 
1,008,638

 
926,232

 
799,383

Total deposits
 
1,225,237

 
1,101,362

 
907,787

Advances from Federal Home Loan Bank
 
166,658

 
162,700

 
82,803

Repurchase agreements
 
21,935

 
24,892

 
39,087

Subordinated debt
 
18,168

 
18,157

 

Junior subordinated debt
 
5,792

 
3,609

 
3,609

Other borrowings
 

 

 
1,000

Accrued taxes and other liabilities
 
12,215

 
12,827

 
11,917

Total liabilities
 
1,450,005

 
1,323,547

 
1,046,203


 

 

 

STOCKHOLDERS’ EQUITY
 

 

 

Preferred stock, no par value per share; 5,000,000 shares authorized
 

 

 

Common stock, $1.00 par value per share; 40,000,000 shares authorized; 9,514,926, 8,704,562, and 7,101,851 shares outstanding, respectively
 
9,515

 
8,705

 
7,102

Surplus
 
131,582

 
113,458

 
81,499

Retained earnings
 
33,203

 
31,508

 
26,227

Accumulated other comprehensive loss
 
(1,571
)
 
(795
)
 
(2,071
)
Total stockholders’ equity
 
172,729

 
152,876

 
112,757

   Total liabilities and stockholders’ equity
 
$
1,622,734

 
$
1,476,423

 
$
1,158,960





INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except share data)
(Unaudited)

 
 
 
 
 
 
 
 
 
 
 
 
For the three months ended
 
For the twelve months ended
 
 
December 31, 2017
 
September 30, 2017
 
December 31, 2016
 
December 31, 2017
 
December 31, 2016
INTEREST INCOME
 

 

 

 

 

Interest and fees on loans
 
$
14,407

 
$
12,893

 
$
10,103

 
$
47,863

 
$
39,380

Interest on investment securities
 
1,428

 
1,399

 
898

 
5,055

 
3,565

Other interest income
 
132

 
150

 
61

 
428

 
207

Total interest income
 
15,967

 
14,442

 
11,062

 
53,346

 
43,152

 
 

 

 

 

 

INTEREST EXPENSE
 

 

 

 

 

Interest on deposits
 
2,233

 
2,137

 
1,970

 
8,050

 
7,182

Interest on borrowings
 
917

 
767

 
311

 
2,779

 
1,231

Total interest expense
 
3,150

 
2,904

 
2,281

 
10,829

 
8,413

Net interest income
 
12,817

 
11,538

 
8,781

 
42,517

 
34,739

 
 

 

 

 

 

Provision for loan losses
 
395

 
420

 
375

 
1,540

 
2,079

Net interest income after provision for loan losses
 
12,422

 
11,118

 
8,406

 
40,977

 
32,660

 
 

 

 

 

 

NONINTEREST INCOME
 

 

 

 

 

Service charges on deposit accounts
 
293

 
281

 
79

 
767

 
343

Gain on sale of investment securities, net
 
50

 
27

 
15

 
292

 
443

(Loss) gain on sale of fixed assets, net
 
(57
)
 
160

 
14

 
127

 
1,266

(Loss) gain on sale of other real estate owned, net
 
(5
)
 
37

 
2

 
27

 
13

Gain on sale of loans, net
 

 

 
92

 

 
405

Servicing fees and fee income on serviced loans
 
329

 
352

 
449

 
1,482

 
2,087

Other operating income
 
352

 
310

 
245

 
1,120

 
911

Total noninterest income
 
962

 
1,167

 
896

 
3,815

 
5,468

Income before noninterest expense
 
13,384

 
12,285

 
9,302

 
44,792

 
38,128


 

 

 

 

 

NONINTEREST EXPENSE
 

 

 

 

 

Depreciation and amortization
 
556

 
542

 
383

 
1,865

 
1,493

Salaries and employee benefits
 
5,486

 
5,136

 
3,901

 
18,681

 
15,609

Occupancy
 
324

 
317

 
252

 
1,150

 
995

Data processing
 
521

 
446

 
373

 
1,690

 
1,488

Marketing
 
151

 
124

 
70

 
422

 
386

Professional fees
 
224

 
263

 
295

 
950

 
1,261

Customer reimbursements
 

 

 

 

 
584

Acquisition expenses
 
819

 
824

 

 
1,868

 

Other operating expenses
 
1,527

 
1,470

 
1,329

 
5,716

 
4,823

Total noninterest expense
 
9,608

 
9,122

 
6,603

 
32,342

 
26,639

Income before income tax expense
 
3,776

 
3,163

 
2,699

 
12,450

 
11,489

Income tax expense
 
1,492

 
1,032

 
851

 
4,248

 
3,609

Net income
 
$
2,284

 
$
2,131

 
$
1,848

 
$
8,202

 
$
7,880


 
 
 
 
 
 
 
 
 
 
EARNINGS PER SHARE
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
$
0.25

 
$
0.24

 
$
0.26

 
$
0.96

 
$
1.11

Diluted earnings per share
 
$
0.25

 
$
0.24

 
$
0.26

 
$
0.96

 
$
1.10

Cash dividends declared per common share
 
$
0.03

 
$
0.03

 
$
0.01

 
$
0.10

 
$
0.04






INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the three months ended
 
 
December 31, 2017
 
September 30, 2017
 
December 31, 2016
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/ Rate
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/ Rate
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/ Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
$
1,169,686

 
$
14,407

 
4.89
%
 
$
1,073,800

 
$
12,893

 
4.76
%
 
$
889,814

 
$
10,103

 
4.50
%
Securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
203,011

 
1,221

 
2.39

 
203,407

 
1,193

 
2.33

 
138,985

 
707

 
2.02

Tax-exempt
 
35,060

 
207

 
2.34

 
34,659

 
206

 
2.36

 
30,898

 
191

 
2.45

Interest-bearing balances with banks
 
26,407

 
132

 
1.98

 
34,589

 
150

 
1.72

 
27,948

 
61

 
0.87

Total interest-earning assets
 
1,434,164

 
15,967

 
4.42

 
1,346,455

 
14,442

 
4.26

 
1,087,645

 
11,062

 
4.04

Cash and due from banks
 
22,520

 
 
 
 
 
22,626

 
 
 
 
 
7,845

 
 
 
 
Intangible assets
 
15,655

 
 
 
 
 
13,283

 
 
 
 
 
3,237

 
 
 
 
Other assets
 
70,254

 
 
 
 
 
63,007

 
 
 
 
 
56,361

 
 
 
 
Allowance for loan losses
 
(7,676
)
 
 
 
 
 
(7,442
)
 
 
 
 
 
(7,253
)
 
 
 
 
Total assets
 
$
1,534,917

 
 
 
 
 
$
1,437,929

 
 
 
 
 
$
1,147,835

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand deposits
 
$
348,573

 
$
608

 
0.69

 
$
337,846

 
$
604

 
0.71

 
$
281,500

 
$
485

 
0.68

Savings deposits
 
105,896

 
138

 
0.52

 
102,331

 
139

 
0.54

 
53,219

 
87

 
0.65

Time deposits
 
503,378

 
1,487

 
1.17

 
486,837

 
1,394

 
1.14

 
463,531

 
1,398

 
1.20

Total interest-bearing deposits
 
957,847

 
2,233

 
0.92

 
927,014

 
2,137

 
0.91

 
798,250

 
1,970

 
0.98

Short-term borrowings
 
135,126

 
430

 
1.26

 
122,456

 
367

 
1.19

 
99,169

 
246

 
0.98

Long-term debt
 
78,911

 
487

 
2.45

 
51,642

 
400

 
3.07

 
19,666

 
65

 
1.31

Total interest-bearing liabilities
 
1,171,884

 
3,150

 
1.07

 
1,101,112

 
2,904

 
1.05

 
917,085

 
2,281

 
0.99

Noninterest-bearing deposits
 
189,935

 
 
 
 
 
173,212

 
 
 
 
 
106,060

 
 
 
 
Other liabilities
 
12,613

 
 
 
 
 
11,419

 
 
 
 
 
10,773

 
 
 
 
Stockholders’ equity
 
160,485

 
 
 
 
 
152,186

 
 
 
 
 
113,917

 
 
 
 
Total liability and stockholders’ equity
 
$
1,534,917

 
 
 
 
 
$
1,437,929

 
 
 
 
 
$
1,147,835

 
 
 
 
Net interest income/net interest margin
 
 
 
$
12,817

 
3.55
%
 
 
 
$
11,538

 
3.40
%
 
 
 
$
8,781

 
3.20
%







INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the twelve months ended
 
 
December 31, 2017
 
December 31, 2016
 
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/ Rate
 
Average
Balance
 
Interest
Income/
Expense
 
Yield/ Rate
Assets
 
 
 
 
 
 
 
 
 
 
 
 
Interest-earning assets:
 
 
 
 
 
 
 
 
 
 
 
 
Loans
 
$
1,013,502

 
$
47,863

 
4.72
%
 
$
862,340

 
$
39,380

 
4.55
%
Securities:
 
 
 
 
 
 
 
 
 
 
 
 
Taxable
 
180,769

 
4,265

 
2.36

 
129,251

 
2,878

 
2.22

Tax-exempt
 
32,427

 
790

 
2.44

 
27,171

 
687

 
2.52

Interest-bearing balances with banks
 
28,524

 
428

 
1.50

 
26,196

 
207

 
0.79

Total interest-earning assets
 
1,255,222

 
53,346

 
4.25

 
1,044,958

 
43,152

 
4.12

Cash and due from banks
 
15,534

 
 
 
 
 
7,463

 
 
 
 
Intangible assets
 
8,892

 
 
 
 
 
3,231

 
 
 
 
Other assets
 
61,387

 
 
 
 
 
54,951

 
 
 
 
Allowance for loan losses
 
(7,368
)
 
 
 
 
 
(6,891
)
 
 
 
 
Total assets
 
$
1,333,667

 
 
 
 
 
$
1,103,712

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and stockholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Interest-bearing demand
 
$
317,755

 
$
2,223

 
0.70

 
$
257,888

 
$
1,690

 
0.65

Savings deposits
 
78,444

 
446

 
0.57

 
52,753

 
353

 
0.67

Time deposits
 
456,690

 
5,381

 
1.18

 
439,423

 
5,139

 
1.17

Total interest-bearing deposits
 
852,889

 
8,050

 
0.94

 
750,064

 
7,182

 
0.95

Short-term borrowings
 
129,109

 
1,430

 
1.11

 
108,339

 
956

 
0.88

Long-term debt
 
47,922

 
1,349

 
2.81

 
23,092

 
275

 
1.19

Total interest-bearing liabilities
 
1,029,920

 
10,829

 
1.05

 
881,495

 
8,413

 
0.95

Noninterest-bearing deposits
 
147,856

 
 
 
 
 
97,948

 
 
 
 
Other liabilities
 
10,782

 
 
 
 
 
11,793

 
 
 
 
Stockholders’ equity
 
145,109

 
 
 
 
 
112,476

 
 
 
 
Total liability and stockholders’ equity
 
$
1,333,667

 
 
 
 
 
$
1,103,712

 
 
 
 
Net interest income/net interest margin
 
 
 
$
42,517

 
3.39
%
 
 
 
$
34,739

 
3.32
%




INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
September 30, 2017
 
December 31, 2016
Tangible common equity
 
 
 
 
 
 
Total stockholders’ equity
 
$
172,729

 
$
152,876