UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington D.C. 20549

 

FORM 10-Q

 

(Mark One)

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2015

or

¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                  to                  

Commission File Number: 001-36522

 

Investar Holding Corporation

(Exact name of registrant as specified in its charter)

 

 

Louisiana

27-1560715

(State or other jurisdiction of

incorporation or organization)

(I.R.S. Employer

Identification No.)

7244 Perkins Road, Baton Rouge, Louisiana 70808

(Address of principal executive offices, including zip code)

(225) 227-2222

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x   No  ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer

¨

Accelerated filer

¨

 

 

 

 

Non-accelerated filer

x  (Do not check if a smaller reporting company)

Smaller reporting company

¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

The number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date, is as follows: Common stock, $1.00 par value, 7,293,612 shares outstanding as of May 8, 2015.

 

 

 

 

 

 


 

TABLE OF CONTENTS

 

Special Note Regarding Forward-Looking Statements

3

 

 

 

 

Part I. Financial Information

 

 

 

 

 

Item 1.

 

Financial Statements (Unaudited)

4

 

 

Consolidated Balance Sheets as of March 31, 2015 and December 31, 2014

4

 

 

Consolidated Statements of Operations for the three months ended March 31, 2015 and 2014

5

 

 

Consolidated Statements of Comprehensive Income for the three months ended March 31, 2015 and 2014

6

 

 

Consolidated Statements of Changes in Stockholders’ Equity

7

 

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2015 and 2014

8

 

 

Notes to the Consolidated Financial Statements

9

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations

30

Item 3.

 

Quantitative and Qualitative Disclosures about Market Risk

45

Item 4.

 

Controls and Procedures

45

 

 

 

 

Part II. Other Information

46

 

 

 

 

Item 1A.

 

Risk Factors

46

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

46

Item 6.

 

Exhibits

47

Signatures

48

Exhibit Index

49

 

 

 

2


 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

When included in this Quarterly Report on Form 10-Q, or in other documents that Investar Holding Corporation (the “Company”) files with the Securities and Exchange Commission (“SEC”) or in statements made by or on behalf of the Company, words like “may,” “should,” “could,” “predict,” “potential,” “believe,” “think,” “will likely result,” “expect,” “continue,” “will,” “anticipate,” “seek,” “estimate,” “intend,” “plan,” “projection,” “would,” “outlook” and similar expressions or the negative version of those words are intended to identify forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a variety of risks and uncertainties that could cause actual results to differ materially from those described therein. The Company’s forward-looking statements are based on assumptions and estimates that management believes to be reasonable in light of the information available at the time such statements are made. However, many of the matters addressed by these statements are inherently uncertain and could be affected by many factors beyond management’s control. Factors that could have a material effect on the Company’s business, financial condition, results of operations and future growth prospects can be found in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 that the Company filed with the SEC on March 31, 2015 and Part II, Item 1A. – Risk Factors, of this Quarterly Report on Form 10-Q. Additional risk factors may also be described in reports that the Company files from time to time with the SEC.

Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, you should not rely on any forward-looking statement as a prediction of future events. We expressly disclaim any obligation or undertaking to update our forward-looking statements, and we do not intend to release publicly any updates or changes in our expectations concerning the forward-looking statements or any changes in events, conditions or circumstances upon which any forward-looking statement may be based, except as required by law.

 

 

 

3


 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 

 

March 31, 2015

 

 

December 31, 2014

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

Cash and due from banks

$

6,879

 

 

$

5,519

 

Interest-bearing balances due from other banks

 

13,617

 

 

 

13,493

 

Federal funds sold

 

170

 

 

 

500

 

Cash and cash equivalents

 

20,666

 

 

 

19,512

 

 

 

 

 

 

 

 

 

Available for sale securities at fair value (amortized cost

   of $75,736 and $69,838, respectively)

 

76,617

 

 

 

70,299

 

Held to maturity securities at amortized cost (estimated

   fair value of $22,321 and $22,301, respectively)

 

22,369

 

 

 

22,519

 

Loans held for sale

 

64,313

 

 

 

103,396

 

Loans, net of allowance for loan losses of $5,379 and

   $4,630, respectively

 

641,060

 

 

 

618,160

 

Other equity securities

 

1,839

 

 

 

5,566

 

Bank premises and equipment, net of accumulated

   depreciation of $4,310 and $3,964, respectively

 

29,136

 

 

 

28,538

 

Other real estate owned, net

 

2,568

 

 

 

2,735

 

Accrued interest receivable

 

2,316

 

 

 

2,435

 

Deferred tax asset

 

2,260

 

 

 

2,906

 

Goodwill and other intangibles

 

3,206

 

 

 

3,216

 

Other assets

 

1,730

 

 

 

1,882

 

Total assets

$

868,080

 

 

$

881,164

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Noninterest-bearing

$

84,402

 

 

$

70,217

 

Interest-bearing

 

614,490

 

 

 

557,901

 

Total deposits

 

698,892

 

 

 

628,118

 

Advances from Federal Home Loan Bank

 

34,865

 

 

 

125,785

 

Repurchase agreements

 

12,878

 

 

 

12,293

 

Note payable

 

3,609

 

 

 

3,609

 

Accrued taxes and other liabilities

 

12,449

 

 

 

7,975

 

Total liabilities

 

762,693

 

 

 

777,780

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

Preferred stock, $1.00 par value per share; 5,000,000

   shares authorized

 

-

 

 

 

-

 

Common stock, $1.00 par value per share; 40,000,000

   shares authorized; 7,268,488 and 7,262,085 shares

   issued and outstanding, respectively

 

7,271

 

 

 

7,264

 

Treasury stock

 

(25

)

 

 

(23

)

Surplus

 

84,283

 

 

 

84,213

 

Retained earnings

 

13,705

 

 

 

11,809

 

Accumulated other comprehensive income

 

153

 

 

 

121

 

Total stockholders' equity

 

105,387

 

 

 

103,384

 

Total liabilities and stockholders' equity

$

868,080

 

 

$

881,164

 

 

 

 

 

 

 

 

 

See accompanying notes to the consolidated financial statements.

 

 

 

 

4


 

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share data)

(Unaudited)

 

 

Three months ended

 

 

March 31,

 

 

2015

 

 

2014

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

Interest and fees on loans

$

8,298

 

 

$

6,675

 

Interest on investment securities

 

485

 

 

 

272

 

Other interest income

 

17

 

 

 

10

 

Total interest income

 

8,800

 

 

 

6,957

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

Interest on deposits

 

1,192

 

 

 

1,003

 

Interest on borrowings

 

109

 

 

 

87

 

Total interest expense

 

1,301

 

 

 

1,090

 

Net interest income

 

7,499

 

 

 

5,867

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

700

 

 

 

245

 

Net interest income after provision for loan losses

 

6,799

 

 

 

5,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

Service charges on deposit accounts

 

94

 

 

 

63

 

Gain on sale of investment securities, net

 

-

 

 

 

116

 

Loss on sale of real estate owned, net

 

(1

)

 

 

(3

)

Gain on sale of loans, net

 

1,731

 

 

 

624

 

Fee income on loans held for sale, net

 

300

 

 

 

76

 

Other operating income

 

416

 

 

 

190

 

Total noninterest income

 

2,540

 

 

 

1,066

 

Income before noninterest expense

 

9,339

 

 

 

6,688

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

Depreciation and amortization

 

357

 

 

 

303

 

Salaries and employee benefits

 

3,908

 

 

 

3,471

 

Occupancy

 

213

 

 

 

224

 

Data processing

 

340

 

 

 

278

 

Marketing

 

58

 

 

 

76

 

Professional fees

 

262

 

 

 

59

 

Other operating expenses

 

1,286

 

 

 

974

 

Total noninterest expense

 

6,424

 

 

 

5,385

 

Income before income tax expense

 

2,915

 

 

 

1,303

 

Income tax expense

 

965

 

 

 

424

 

Net income

$

1,950

 

 

$

879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

Basic earnings per share

$

0.27

 

 

$

0.23

 

Diluted earnings per share

$

0.27

 

 

$

0.21

 

Cash dividends declared per common share

$

0.01

 

 

$

0.01

 

 

 

 

 

 

 

 

 

See accompanying notes to the consolidated financial statements.

 

 

 

 

5


 

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in thousands, except share data)

(Unaudited)

 

 

Three months ended

 

 

March 31,

 

 

2015

 

 

2014

 

 

 

 

 

 

 

 

 

Net income

$

1,950

 

 

$

879

 

Other comprehensive income:

 

 

 

 

 

 

 

Unrealized gains on investment securities:

 

 

 

 

 

 

 

Reclassification of realized gains, net of tax expense (benefit) of $0 and $(39), respectively

 

-

 

 

 

(77

)

Unrealized gains, available for sale, net of tax expense of

     $143 and $104, respectively

 

278

 

 

 

202

 

Unrealized (loss) gains, transfer from available for sale to

     held to maturity, net of tax expense of $0 and $10,

     respectively

 

(1

)

 

 

19

 

Fair value of derivative financial instruments:

 

 

 

 

 

 

 

Change in fair value of interest rate swap designated as a

     cash flow hedge, net of tax (benefit) expense of $(126) and $0,

     respectively

 

(245

)

 

 

-

 

Total other comprehensive income

 

32

 

 

 

144

 

Total comprehensive income

$

1,982

 

 

$

1,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the consolidated financial statements.

 

 

 

 

6


 

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(Amounts in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

Total

 

 

Common

 

 

Treasury

 

 

 

 

 

 

Retained

 

 

Comprehensive

 

 

Stockholders'

 

 

Stock

 

 

Stock

 

 

Surplus

 

 

Earnings

 

 

Income (Loss)

 

 

Equity

 

Balance, December 31, 2013

$

3,943

 

 

$

-

 

 

$

45,281

 

 

$

6,609

 

 

$

(350

)

 

$

55,483

 

Common stock issued in offering, net

   of direct cost of $4,266

 

3,285

 

 

 

-

 

 

 

38,443

 

 

 

-

 

 

 

-

 

 

 

41,728

 

Warrants exercised

 

22

 

 

 

-

 

 

 

275

 

 

 

-

 

 

 

-

 

 

 

297

 

Surrendered shares

 

-

 

 

 

(17

)

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(17

)

Shares repurchased

 

 

 

 

 

(6

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(6

)

Dividends declared, $0.04 per share

 

-

 

 

 

-

 

 

 

-

 

 

 

(197

)

 

 

-

 

 

 

(197

)

Stock-based compensation

 

14

 

 

 

-

 

 

 

214

 

 

 

-

 

 

 

-

 

 

 

228

 

Net income

 

-

 

 

 

-

 

 

 

-

 

 

 

5,397

 

 

 

-

 

 

 

5,397

 

Other comprehensive income, net

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

471

 

 

 

471

 

Balance, December 31, 2014

$

7,264

 

 

$

(23

)

 

$

84,213

 

 

$

11,809

 

 

$

121

 

 

$

103,384

 

Surrendered shares

 

 

 

 

 

(2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2

)

Dividends declared, $0.01 per share

 

-

 

 

 

-

 

 

 

-

 

 

 

(54

)

 

 

-

 

 

 

(54

)

Stock-based compensation

 

7

 

 

 

-

 

 

 

70

 

 

 

-

 

 

 

-

 

 

 

77

 

Net income

 

-

 

 

 

-

 

 

 

-

 

 

 

1,950

 

 

 

-

 

 

 

1,950

 

Other comprehensive income, net

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

32

 

 

 

32

 

Balance, March 31, 2015 (Unaudited)

$

7,271

 

 

$

(25

)

 

$

84,283

 

 

$

13,705

 

 

$

153

 

 

$

105,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the consolidated financial statements.

 

 

 

 

7


 

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Amounts in thousands, except share data)

(Unaudited)

 

 

 

For the three months ended

 

 

 

March 31,

 

 

 

2015

 

 

2014

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net income

 

$

1,950

 

 

$

879

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

357

 

 

 

303

 

Amortization (accretion) of premium (discount) on securities, net

 

 

251

 

 

 

235

 

Amortization of purchase accounting adjustments

 

 

(70

)

 

 

(101

)

Provision for loan losses

 

 

700

 

 

 

245

 

Provision for other real estate owned

 

 

12

 

 

 

10

 

Gain on sale of securities

 

 

-

 

 

 

(116

)

Loss on sale of other real estate owned

 

 

1

 

 

 

3

 

FHLB stock dividend

 

 

(3

)

 

 

(2

)

Stock-based compensation

 

 

77

 

 

 

41

 

Other

 

 

11

 

 

 

-

 

Loans held for sale:

 

 

 

 

 

 

 

 

Originations

 

 

(102,886

)

 

 

(36,401

)

Proceeds from sales

 

 

143,699

 

 

 

16,722

 

Gain on sale of loans

 

 

(1,731

)

 

 

(624

)

Net change in:

 

 

 

 

 

 

 

 

Accrued interest receivable

 

 

119

 

 

 

67

 

Deferred tax asset

 

 

646

 

 

 

(22

)

Other assets

 

 

152

 

 

 

421

 

Accrued taxes and other liabilities

 

 

4,082

 

 

 

436

 

Net cash provided by (used in) operating activities

 

 

47,367

 

 

 

(17,904

)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

 

 

Purchases of investment securities available for sale

 

 

(8,616

)

 

 

(19,437

)

Proceeds from paydowns, redemptions and maturities of securities available for sale

 

 

2,462

 

 

 

12,499

 

Proceeds from paydowns, redemptions and maturities of securities held to maturity

 

 

143

 

 

 

14

 

Proceeds from sale of loans

 

 

-

 

 

 

23,482

 

Proceeds from redemptions of other equity securities

 

 

5,356

 

 

 

348

 

Purchases of other equity securities

 

 

(1,625

)

 

 

(430

)

Net increase in loans

 

 

(23,819

)

 

 

(47,684

)

Proceeds from sales of other real estate owned

 

 

417

 

 

 

88

 

Purchases of premises, equipment and software

 

 

(945

)

 

 

(1,889

)

Net cash used in investing activities

 

 

(26,627

)

 

 

(33,009

)

 

 

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Net increase in customer deposits

 

 

70,800

 

 

 

31,635

 

Net increase in repurchase agreements

 

 

585

 

 

 

2,577

 

Net (decrease) increase in short-term FHLB advances

 

 

(90,639

)

 

 

3,830

 

Proceeds from long-term FHLB advances

 

 

500

 

 

 

-

 

Repayment of long-term FHLB advances

 

 

(781

)

 

 

(430

)

Cash dividends paid on common stock

 

 

(51

)

 

 

(48

)

Net cash (used in) provided by financing activities

 

 

(19,586

)

 

 

37,564

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

1,154

 

 

 

(13,349

)

Cash and cash equivalents, beginning of period

 

 

19,512

 

 

 

28,203

 

Cash and cash equivalents, end of period

 

$

20,666

 

 

$

14,854

 

 

 

 

 

See accompanying notes to the consolidated financial statements.

 

 

 

 

8


INVESTAR HOLDING CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying unaudited consolidated financial statements of Investar Holding Corporation (the “Company”) have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include information or footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with GAAP. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the entire fiscal year. These statements should be read in conjunction with the Company’s audited consolidated financial statements for the year ended December 31, 2014, including the notes thereto, which were included as part of the Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 31, 2015.

Nature of Operations

Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank (the “Bank”), a Louisiana-chartered bank. The Company’s primary market is South Louisiana. The Company currently operates 11 full service banking offices located throughout its market and had 177 employees at March 31, 2015.

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates, and such differences could be material. Material estimates that are susceptible to a significant change in the near term are the allowance for loan losses, the fair value of financial instruments and the determination of other-than-temporary impairments of securities.

Reclassifications

Certain reclassifications have been made to the 2014 financial statements to be consistent with the 2015 presentation.

Concentrations of Credit Risk

The Company’s loan portfolio consists of the various types of loans described in Note 4, Loans. Real estate or other assets secure most loans. The majority of loans has been made to individuals and businesses in the Company’s market of South Louisiana. Customers are dependent on the condition of the local economy for their livelihoods and servicing their loan obligations. The Company does not have any significant concentrations in any one industry or individual customer.

 

Recent Accounting Pronouncements

 

FASB ASC Topic 835-30 “Interest-Imputation of Interest” Update No. 2015-03. The Financial Accounting Standards Board (the “FASB”) issued Update No. 2015-03 in April 2015 as part of its initiative to reduce complexity in the accounting standards. To simplify presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. For public entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position.

9


INVESTAR HOLDING CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

FASB ASC Topic 810 “Consolidation” Update No. 2015-02.  The FASB issued Update No. 2015-02 in February 2015 to respond to stakeholders’ concerns about the current accounting for consolidation of certain legal entities. The amendments in the update change the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities and are effective for public entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015.  The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position.

FASB ASC Topic 225-20 “Income Statement – Extraordinary and Unusual Items” Update No. 2015-01. The FASB issued Update No. 2015-01 in January 2015 as part of its initiative to reduce complexity in accounting standards. This update eliminates from GAAP the concept of extraordinary items. The amendments in the update are effective for the annual period ending after December 15, 2015.  Early adoption is permitted. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial position.

 

NOTE 2. EARNINGS PER SHARE

The following is a summary of the information used in the computation of basic and diluted earnings per common share for the three months ended March 31, 2015 and 2014 (dollars in thousands, except share data):

 

 

Three months ended March 31,

 

 

2015

 

 

2014

 

 

 

 

Net income available to common shareholders

$

1,950

 

 

$

879

 

Weighted average number of common shares outstanding

   used in computation of basic earnings per common share

 

7,219,235

 

 

 

3,901,064

 

Effect of dilutive securities:

 

 

 

 

 

 

 

Restricted stock

 

12,738

 

 

 

44,049

 

Stock options

 

9,961

 

 

 

22,810

 

Stock warrants

 

8,921

 

 

 

193,498

 

Weighted average number of common shares outstanding

   plus effect of dilutive securities used in computation

   of diluted earnings per common share

 

7,250,855

 

 

 

4,161,421

 

Basic earnings per share

$

0.27

 

 

$

0.23

 

Diluted earnings per share

$

0.27

 

 

$

0.21

 

 

 

NOTE 3. INVESTMENT SECURITIES

The amortized cost and approximate fair value of investment securities classified as available for sale are summarized as follows as of the dates presented (dollars in thousands):

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

March 31, 2015

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Obligations of other U.S. government agencies and corporations

 

$

6,868

 

 

$

50

 

 

$

(22

)

 

$

6,896

 

Mortgage-backed securities

 

 

48,461

 

 

 

699

 

 

 

(27

)

 

 

49,133

 

Obligations of state and political subdivisions

 

 

11,759

 

 

 

220

 

 

 

(40

)

 

 

11,939

 

Corporate bonds

 

 

7,841

 

 

 

47

 

 

 

(54

)

 

 

7,834

 

Equity securities

 

 

807

 

 

 

24

 

 

 

(16

)

 

 

815

 

Total

 

$

75,736

 

 

$

1,040

 

 

$

(159

)

 

$

76,617

 

10


INVESTAR HOLDING CORPORATION

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

 

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

December 31, 2014

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Obligations of other U.S. government agencies and corporations

 

$

4,351

 

 

$

31

 

 

$

(22

)

 

$

4,360

 

Mortgage-backed securities

 

 

47,903

 

 

 

365

 

 

 

(22

)

 

 

48,246

 

Obligations of state and political subdivisions

 

 

11,616

 

 

 

181

 

 

 

(57

)

 

 

11,740

 

Corporate bonds

 

 

5,416

 

 

 

23

 

 

 

(20

)

 

 

5,419

 

Equity securities

 

 

552

 

 

 

-

 

 

 

(18

)

 

 

534

 

Total

 

$

69,838

 

 

$

600

 

 

$

(139

)

 

$

70,299

 

 

The amortized cost and approximate fair value of investment securities classified as held to maturity are summarized as follows as of the dates presented (dollars in thousands):

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

March 31, 2015

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Obligations of other U.S. government agencies and corporations

 

$

3,981

 

 

$

-

 

 

$

(30

)

 

$

3,951

 

Mortgage-backed securities

 

 

3,416

 

 

 

14

 

 

 

(32

)

 

 

3,398

 

Obligations of state and political subdivisions

 

 

14,972

 

 

 

-

 

 

 

-

 

 

 

14,972

 

Total

 

$

22,369

 

 

$

14

 

 

$

(62

)

 

$

22,321

 

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

December 31, 2014

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Obligations of other U.S. government agencies and corporations

 

$

3,979

 

 

$

-

 

 

$

(165

)

 

$

3,814

 

Mortgage-backed securities

 

 

3,469

 

 

 

5

 

 

 

(58

)

 

 

3,416

 

Obligations of state and political subdivisions

 

 

15,071

 

 

 

-

 

 

 

-

 

 

 

15,071

 

Total

 

$

22,519

 

 

$

5

 

 

$

(223

)

 

$

22,301

 

 

The Company had no securities classified as trading as of March 31, 2015 or December 31, 2014.

The aggregate fair values and aggregate unrealized losses on securities whose fair values are below book values are summarized in the tables below. Due to the nature of the investment and current market prices, these unrealized losses are considered a temporary impairment of the securities.

The following table presents, by type and number of securities, the age of gross unrealized losses and approximate fair value by investment category for securities available for sale as of the dates presented (dollars in thousands):

 

 

 

 

 

 

 

Less than 12 Months

 

 

12 Months or More

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Unrealized

 

 

 

 

 

 

Unrealized

 

 

 

 

 

 

Unrealized

 

March 31, 2015

 

Count

 

 

Fair Value

 

 

Losses

 

 

Fair Value