Investar Holding Corporation Announces 2021 Fourth Quarter Results

January 27, 2022

BATON ROUGE, LA / ACCESSWIRE / January 27, 2022 / Investar Holding Corporation ("Investar") (NASDAQ:ISTR), the holding company for Investar Bank, National Association (the "Bank"), today announced financial results for the quarter ended December 31, 2021. Investar reported net income of $6.9 million, or $0.67 per diluted common share, for the fourth quarter of 2021, compared to a net loss of $10.0 million, or $0.95 per diluted common share, for the quarter ended September 30, 2021, and net income of $4.5 million, or $0.42 per diluted common share, for the quarter ended December 31, 2020.

On a non-GAAP basis, core earnings (loss) per diluted common share for the fourth quarter of 2021 were $0.56 compared to ($1.06) for the third quarter of 2021 and $0.39 for the fourth quarter of 2020. Core earnings (loss) exclude certain non-operating items including, but not limited to, gain on sale of investment securities, change in the fair value of equity securities, and acquisition expense (refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics).

Investar Holding Corporation President and Chief Executive Officer John D'Angelo said:

"Despite the lingering effects of the pandemic and the impacts of Hurricane Ida on some of our market areas in the third quarter, Investar had a strong finish to 2021, and we are optimistic about the future. We recorded record net income of $6.9 million in the fourth quarter, and continued to see our net interest margin improve as we experienced a further reduction in our cost of deposits and utilized some of our excess liquidity to invest in securities. While the balance of our PPP loans continues to decline, we had organic loan growth of $9.9 million, or 0.5%, during the fourth quarter. We expect loan demand to continue to improve throughout 2022 and anticipate 5% loan growth for the year.

We remain focused on improving our core metrics. We closed an additional branch, located in our Texas market, in the fourth quarter, and are continually evaluating opportunities to improve our branch network efficiency and further reduce costs. While challenges remain, we are identifying opportunities and executing strategies we believe are sustainable and add long-term value for our shareholders."

Fourth Quarter Highlights

• Cost of deposits decreased 13 basis points to 0.30% for the quarter ended December 31, 2021 compared to 0.43% for the quarter ended September 30, 2021 and decreased 46 basis points compared to 0.76% for the quarter ended December 31, 2020. Our overall cost of funds decreased 11 and 43 basis points to 0.52% for the quarter ended December 31, 2021 compared to 0.63% and 0.95% for the quarters ended September 30, 2021 and December 31, 2020, respectively.
• Net interest margin increased to 3.57% for the quarter ended December 31, 2021 compared to 3.44% for the quarter ended September 30, 2021 and 3.55% for the quarter ended December 31, 2020.
• Deposit mix improved during the fourth quarter of 2021. Noninterest-bearing deposits as a percentage of total deposits increased to 27.6% at December 31, 2021 compared to 25.9% at September 30, 2021 and 23.7% at December 31, 2020. Time deposits as a percentage of total deposits increased slightly to 21.1% at December 31, 2021, compared to 21.0% at September 30, 2021, and decreased compared to 28.4% at December 31, 2020.
• Total loans decreased $8.6 million, or 0.5% to $1.87 billion at December 31, 2021 compared to $1.88 billion at September 30, 2021. Excluding PPP loans with balances of $23.3 million and $41.9 million at December 31, 2021 and September 30, 2021, respectively, total loans increased $9.9 million, or 0.5% (2% annualized) to $1.85 billion at December 31, 2021 compared to $1.84 billion at September 30, 2021.
• Owner-occupied commercial real estate loans increased $27.3 million, or 6.3%, to $460.2 million at December 31, 2021 compared to $432.9 million at September 30, 2021.
• Book value per common share increased to $23.45 at December 31, 2021, or 2.6% (10.4% annualized), compared to $22.85 at September 30, 2021. Tangible book value per common share increased to $19.20 at December 31, 2021, or 3.4% (13.6% annualized), compared to $18.57 at September 30, 2021.
• Return on average assets improved to 1.06% for the quarter ended December 31, 2021 compared to (1.47)% for the quarter ended September 30, 2021 and 0.78% for the quarter ended December 31, 2020. Core return on average assets also improved to 0.89% for the quarter ended December 31, 2021 compared to (1.63)% for the quarter ended September 30, 2021 and 0.71% for the quarter ended December 31, 2020.
• Efficiency ratio improved to 60.10% for the quarter ended December 31, 2021 compared to 64.33% for the quarter ended September 30, 2021. Core efficiency ratio also improved to 66.54% for the quarter ended December 31, 2021 compared to 67.17% for the quarter ended September 30, 2021.

Loans

Total loans were $1.87 billion at December 31, 2021, a decrease of $8.6 million, or 0.5%, compared to September 30, 2021, and an increase of $11.7 million, or 0.6%, compared to December 31, 2020.

The following table sets forth the composition of the total loan portfolio as of the dates indicated (dollars in thousands).

														Linked Quarter Change								Year/Year Change								Percentage of Total Loans
		12/31/2021				9/30/2021				12/31/2020				$				%				$				%				12/31/2021				12/31/2020
Mortgage loans on real estate
Construction and development		$	203,204			$	215,247			$	206,011			$	(12,043	)			(5.6	)%		$	(2,807	)			(1.4	)%			10.9	%			11.1	%
1-4 Family			364,307				362,249				339,525				2,058				0.6				24,782				7.3				19.5				18.2
Multifamily			59,570				58,972				60,724				598				1.0				(1,154	)			(1.9	)			3.2				3.3
Farmland			20,128				21,376				26,547				(1,248	)			(5.8	)			(6,419	)			(24.2	)			1.1				1.4
Commercial real estate
Owner-occupied			460,205				432,898				375,421				27,307				6.3				84,784				22.6				24.6				20.2
Nonowner-occupied			436,172				435,575				436,974				597				0.1				(802	)			(0.2	)			23.3				23.5
Commercial and industrial			310,831				335,008				394,497				(24,177	)			(7.2	)			(83,666	)			(21.2	)			16.6				21.2
Consumer			17,595				19,333				20,619				(1,738	)			(9.0	)			(3,024	)			(14.7	)			0.9				1.1
Total loans			1,872,012				1,880,658				1,860,318				(8,646	)			(0.5	)%			11,694				0.6	%			100	%			100	%
Loans held for sale			620				300				-				320				106.7				620				-
Total gross loans		$	1,872,632			$	1,880,958			$	1,860,318			$	(8,326	)			(0.4	)%		$	12,314				0.7	%

In the second quarter of 2020, the Bank began participating as a lender in the Paycheck Protection Program ("PPP") as established by the CARES Act. The PPP loans are generally 100% guaranteed by the Small Business Administration ("SBA"), have an interest rate of 1%, and are eligible to be forgiven based on certain criteria, with the SBA remitting any applicable forgiveness amount to the lender. At December 31, 2021, the balance of the Bank's PPP loans, which is included in the commercial and industrial portfolio, was $23.3 million, compared to $41.9 million at September 30, 2021 and $94.5 million at December 31, 2020. Eighty-seven percent of the total number of PPP loans we have originated have principal balances of $150,000 or less. At December 31, 2021, approximately 86% of the total balance of PPP loans originated has been forgiven by the SBA or paid off by the customer.

On April 1, 2021, we completed the acquisition of Cheaha Financial Group, Inc. ("Cheaha") and its wholly-owned subsidiary, Cheaha Bank, in Oxford, Alabama. Excluding loans acquired from Cheaha on April 1, 2021 with an aggregate balance of $96.3 million and $110.1 million at December 31, 2021 and September 30, 2021, respectively, and PPP loans with a total balance of $23.3 million ($0.3 million acquired from Cheaha), $41.9 million ($1.4 million acquired from Cheaha), and $94.5 million at December 31, 2021, September 30, 2021, and December 31, 2020, respectively, total loans increased $22.5 million, or 1.3% (5.2% annualized), compared to September 30, 2021 and decreased $13.2 million, or 0.7%, compared to December 31, 2020.

At December 31, 2021, Investar's total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $771.0 million, an increase of $3.1 million, or 0.4%, compared to the business lending portfolio of $767.9 million at September 30, 2021, and an increase of $1.1 million, or 0.1%, compared to the business lending portfolio of $769.9 million at December 31, 2020. The increase in the business lending portfolio compared to September 30, 2021 and December 31, 2020 is primarily driven by loan growth in owner-occupied commercial real estate as we remain focused on relationship banking and growing our commercial loan portfolios. The increases due to loan growth in owner-occupied commercial real estate were partially offset by forgiveness of PPP loans, reflected in the commercial and industrial portfolio. Excluding all PPP loans and other business lending portfolio loans acquired from Cheaha of $16.9 million and $17.9 million at December 31, 2021 and September 30, 2021, respectively, Investar's total adjusted business lending portfolio was $730.8 million, an increase of $22.7 million, or 3.2%, compared to the adjusted business lending portfolio of $708.1 million at September 30, 2021, and an increase of $55.4 million, or 8.2%, compared to the adjusted business lending portfolio of $675.4 million at December 31, 2020.

Our loan portfolio includes loans to businesses in certain industries that may be more significantly affected by the pandemic than others. These loans, including loans related to oil and gas, food services, hospitality, and entertainment, represent approximately 5.6% of our total portfolio, or 5.4% excluding PPP loans, at December 31, 2021, compared to 5.5% of our total portfolio, or 5.2% excluding PPP loans, at September 30, 2021 and 6.6% of our total portfolio, or 5.7% excluding PPP loans, at December 31, 2020 as shown in the table below.

Industry		Percentage of Loan Portfolio December 31, 2021				Percentage of Loan Portfolio December 31, 2021 (excluding PPP loans)				Percentage of Loan Portfolio September 30, 2021				Percentage of Loan Portfolio September 30, 2021 (excluding PPP loans)				Percentage of Loan Portfolio December 31, 2020				Percentage of Loan Portfolio December 31, 2020 (excluding PPP loans)
Oil and gas			2.2	%			2.1	%			2.6	%			2.4	%			3.3	%			2.6	%
Food services			2.3				2.2				1.8				1.6				2.5				2.3
Hospitality			0.5				0.5				0.5				0.5				0.4				0.4
Entertainment			0.6				0.6				0.6				0.7				0.4				0.4
Total			5.6	%			5.4	%			5.5	%			5.2	%			6.6	%			5.7	%

Credit Quality

Nonperforming loans were $29.5 million, or 1.58% of total loans, at December 31, 2021, a decrease of $3.4 million compared to $32.9 million, or 1.75% of total loans, at September 30, 2021, and an increase of $15.7 million compared to $13.8 million, or 0.74% of total loans, at December 31, 2020. The increase in nonperforming loans compared to December 31, 2020 is mainly attributable to one loan relationship, discussed further below, which added $15.5 million to the balance of nonperforming loans at December 31, 2021. Included in nonperforming loans are acquired loans with a balance of $4.0 million at December 31, 2021, or 14% of nonperforming loans.

The allowance for loan losses was $20.9 million, or 70.6% and 1.11% of nonperforming and total loans, respectively, at December 31, 2021, compared to $20.6 million, or 62.4% and 1.09%, respectively, at September 30, 2021, and $20.4 million, or 147.3% and 1.09%, respectively, at December 31, 2020.

The provision for loan losses was $0.7 million for the quarter ended December 31, 2021 compared to $21.7 million and $2.4 million for the quarters ended September 30, 2021 and December 31, 2020, respectively. The provision for loan losses for the quarter ended September 30, 2021 includes an impairment charge of $21.6 million related to a loan relationship with related borrowers (collectively, the "Borrower") consisting of multiple loans that are secured by various types of collateral. As a result of Hurricane Ida, which made landfall in Louisiana as a category 4 hurricane on August 29, 2021, the Borrower's business operations were disrupted causing a significant reduction in value of some of the collateral supporting the loan relationship, including real estate, inventory, and equipment.

In the third quarter of 2021, Investar instituted a 90-day deferral program for customers who were impacted by Hurricane Ida. Since then, the Bank has provided payment deferrals on approximately $50 million of loans. Virtually all of those loans deferred have now resumed normal payments. At December 31, 2021, Investar had approximately $2.4 million, or 0.1% of the total loan portfolio, on a 90-day deferral plan.

Deposits

Total deposits at December 31, 2021 were $2.12 billion, a decrease of $183.4 million, or 8.0%, compared to $2.30 billion at September 30, 2021, and an increase of $232.4 million, or 12.3%, compared to $1.89 billion at December 31, 2020. During the year ended December 31, 2021, the Bank utilized brokered deposits to satisfy the required borrowings under its interest rate swap agreements, due to more favorable pricing. In the third quarter of 2021, the Company terminated multiple swap agreements, the borrowings for which matured in October 2021. Therefore, the Company had no brokered deposits at December 31, 2021, which drove the decrease in deposits compared to September 30, 2021. Investar acquired approximately $207.0 million in deposits from Cheaha at the time of acquisition on April 1, 2021. The remaining increase, compared to December 31, 2020, is due to organic growth.

The COVID-19 pandemic has created a significant amount of excess liquidity in the market, and, as a result, we have experienced large increases in both noninterest and interest-bearing demand deposits, and in money market deposit accounts and savings accounts compared to December 31, 2020. These increases were primarily driven by reduced spending by consumer and business customers related to the COVID-19 pandemic, and increases in PPP borrowers' deposit accounts. We believe these factors may be temporary depending on the future economic effects of the COVID-19 pandemic.

Our deposit mix continues to improve and reflects our consistent focus on relationship banking and growing our commercial relationships, as well as the effects of the pandemic on consumer and business spending. Compared to the quarter ended December 31, 2020, noninterest-bearing deposits as a percentage of total deposits has increased while time deposits as a percentage of total deposits has decreased. Management made a strategic decision to either reprice or run-off higher yielding time deposits and other interest-bearing deposit products during 2020 and 2021, which has contributed to our decreasing cost of deposits compared to the quarters ended September 30, 2021 and December 31, 2020.

The following table sets forth the composition of deposits as of the dates indicated (dollars in thousands).

														Linked Quarter Change								Year/Year Change								Percentage of Total Deposits
		12/31/2021				9/30/2021				12/31/2020				$				%				$				%				12/31/2021				12/31/2020
Noninterest-bearing demand deposits		$	585,465			$	597,452			$	448,230			$	(11,987	)			(2.0	)%		$	137,235				30.6	%			27.6	%			23.7	%
Interest-bearing demand deposits			650,868				658,743				496,745				(7,875	)			(1.2	)			154,123				31.0				30.7				26.3
Brokered deposits			-				125,016				80,017				(125,016	)			(100.0	)			(80,017	)			(100.0	)			-				4.2
Money market deposit accounts			255,501				264,846				186,307				(9,345	)			(3.5	)			69,194				37.1				12.1				9.9
Savings accounts			180,837				174,953				141,134				5,884				3.4				39,703				28.1				8.5				7.5
Time deposits			447,595				482,631				535,391				(35,036	)			(7.3	)			(87,796	)			(16.4	)			21.1				28.4
Total deposits		$	2,120,266			$	2,303,641			$	1,887,824			$	(183,375	)			(8.0	)%		$	232,442				12.3	%			100.0	%			100.0	%

Net Interest Income

Net interest income for the fourth quarter of 2021 totaled $21.5 million, a decrease of $0.1 million, or 0.4%, compared to the third quarter of 2021, and an increase of $2.3 million, or 12.1%, compared to the fourth quarter of 2020. Included in net interest income for the quarters ended December 31, 2021, September 30, 2021 and December 31, 2020 is $0.2 million, $0.3 million, and $0.2 million, respectively, of interest income accretion from the acquisition of loans. Also included in net interest income for the quarters ended December 31, 2021, September 30, 2021 and December 31, 2020 are interest recoveries of $0.1 million, $0.2 million, and $10,000, respectively.

Investar's net interest margin was 3.57% for the quarter ended December 31, 2021, compared to 3.44% for the quarter ended September 30, 2021 and 3.55% for the quarter ended December 31, 2020. The increase in net interest margin for the quarter ended December 31, 2021 compared to the quarter ended September 30, 2021 was driven by a decrease in the cost of deposits. The increase in net interest margin for the quarter ended December 31, 2021 compared to December 31, 2020 was also driven by a decrease in the cost of the deposits, which decreased 46 basis points. However, the benefit of our reduced cost of deposits was largely offset by excess liquidity. The average balance of interest-bearing balances with banks for the quarter ended December 31, 2021, as shown on our net interest margin table, increased $168.6 million compared to the quarter ended December 31, 2020, and resulted in downward pressure of 26 basis points on the net interest margin.

The yield on interest-earning assets was 3.95% for the quarter ended December 31, 2021, compared to 3.91% for the quarter ended September 30, 2021 and 4.26% for the quarter ended December 31, 2020. The increase in the yield on interest-earning assets compared to the quarter ended September 30, 2021 was driven by a 25 basis point increase in the yield on taxable securities, partially offset by an 11 basis point decrease in the yield on our loan portfolio. The decrease in the yield on interest-earning assets compared to the quarter ended December 31, 2020 was driven by excess liquidity, discussed above. In response to the pandemic, during March 2020, the Federal Reserve reduced the federal funds rate 150 basis points to 0 to 0.25 percent, which has affected the yields that we earn on our interest-earning assets. In addition, the PPP loans originated have a contractual interest rate of 1% and origination fees based on the loan amount, which impacts the yield on our loan portfolio.

Exclusive of PPP loans, which had an average balance of $33.2 million and related interest and fee income of $1.0 million for the quarter ended December 31, 2021, compared to an average balance of $58.5 million and related interest and fee income of $1.3 million for the quarter ended September 30, 2021 and an average balance of $106.6 million and related interest and fee income of $1.1 million for the quarter ended December 31, 2020, adjusted net interest margin was 3.46% for the quarter ended December 31, 2021, compared to an adjusted net interest margin of 3.31% for the quarter ended September 30, 2021 and 3.53% for the quarter ended December 31, 2020. Included in PPP interest and fee income for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020 is $0.8 million, $1.0 million, and $0.4 million, respectively, of accelerated fee income recognized due to the forgiveness or pay-off of PPP loans prior to maturity. Refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics.

Exclusive of the interest income accretion from the acquisition of loans, interest recoveries, and accelerated fee income recognized due to the forgiveness or pay-off of PPP loans, all discussed above, adjusted net interest margin increased to 3.38% for the quarter ended December 31, 2021, compared to 3.21% for the quarter ended September 30, 2021, and decreased compared to 3.45% for the quarter ended December 31, 2020. The adjusted yield on interest-earning assets was 3.76% for the quarter ended December 31, 2021 compared to 3.67% and 4.16% for the quarters ended September 30, 2021 and December 31, 2020, respectively. Refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics.

The cost of deposits decreased 13 basis points to 0.30% for the quarter ended December 31, 2021 compared to 0.43% for the quarter ended September 30, 2021 and decreased 46 basis points compared to 0.76% for the quarter ended December 31, 2020. The decrease in the cost of deposits compared to the quarters ended September 30, 2021 and December 31, 2020 reflects the decrease in rates paid for all categories of interest-bearing deposits.

The overall costs of funds for the quarter ended December 31, 2021 decreased 11 basis points to 0.52% compared to 0.63% for the quarter ended September 30, 2021 and decreased 43 basis points compared to 0.95% for the quarter ended December 31, 2020. The decrease in the cost of funds for the quarter ended December 31, 2021 compared to the quarters ended September 30, 2021 and December 31, 2020 resulted from both lower cost of deposits and lower average balances of short-term borrowings, the costs of which are driven by the Federal Reserve's federal funds rates.

Noninterest Income

Noninterest income for the fourth quarter of 2021 totaled $1.7 million, a decrease of $2.2 million, or 57.1%, compared to the third quarter of 2021 and a decrease of $2.0 million, or 54.3%, compared to the fourth quarter of 2020. The decrease in noninterest income compared to the quarter ended September 30, 2021 was driven by a $1.8 million decrease in swap termination fees and the $0.4 million loss on sale or disposition of fixed assets. Swap termination fees were recorded when we voluntarily terminated a number of our interest rate swap agreements at the end of September 2021. The loss on sale or disposition of fixed assets was recorded when Investar reclassified two branch locations that were closed in 2021, totaling $1.9 million, as other real estate owned. The decrease in noninterest income compared to the quarter ended December 31, 2020 is mainly attributable to a $1.2 million decrease in other operating income and a $0.9 million difference in the fair value of our equity securities. The decrease in other operating income compared to the quarter ended December 31, 2020 was attributable to a $1.1 million decrease in derivative fee income.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 totaled $13.9 million, a decrease of $2.5 million, or 15.1%, compared to the third quarter of 2021, and a decrease of $0.8 million, or 5.3%, compared to the fourth quarter of 2020. The decrease in noninterest expense for the quarter ended December 31, 2021 compared to the quarter ended September 30, 2021 was driven by a $2.6 million decrease in salaries and employee benefits expense and a $0.4 million decrease in acquisition expense, partially offset by a $0.4 million increase in other operating expenses primarily attributable to the increase in the provision for unfunded loan commitments. The decrease in salaries and employee benefits expense was primarily due to the $1.9 million Employee Retention Credit ("ERC"), which was recognized as a credit to payroll taxes in the quarter ended December 31, 2021. Also included in noninterest expense for the quarter ended December 31, 2021 is $0.1 million of professional fees incurred in connection with the ERC.

The decrease in noninterest expense for the quarter ended December 31, 2021 compared to the quarter ended December 31, 2020 is primarily a result of a $1.5 million decrease in salaries and employee benefits, driven by the $1.9 million ERC discussed above, partially offset by a $0.4 million increase in other operating expenses, also discussed above.

Taxes

Investar recorded income tax expense of $1.6 million for the quarter ended December 31, 2021, which equates to an effective tax rate of 19.1%, a decrease from the effective tax rates of 21.0% for the quarter ended September 30, 2021 and 20.9% for the quarter ended December 31, 2020.

Basic and Diluted Earnings Per Common Share

Investar reported basic and diluted earnings per common share of $0.67 for the quarter ended December 31, 2021, compared to basic and diluted loss per common share of $0.95 for the quarter ended September 30, 2021, and basic and diluted earnings per common share of $0.42 for the quarter ended December 31, 2020.

About Investar Holding Corporation

Investar, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, National Association. The Bank currently operates 33 branch locations serving Louisiana, Texas, and Alabama. At December 31, 2021, the Bank had 343 full-time equivalent employees and total assets of $2.5 billion.

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 (loss) earnings before income tax expense," "core income tax (benefit) expense," "core (loss) earnings," "core efficiency ratio," "core return on average assets," "core return on average equity," "core basic (loss) earnings per share," and "core (loss) diluted earnings per share." We also present certain average loan, yield, net interest income and net interest margin data adjusted to show the effects of excluding PPP loans, interest income accretion from the acquisition of loans, and interest recoveries. Management believes these non-GAAP financial measures provide information useful to investors in understanding Investar's financial results, and Investar believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting Investar'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 Investar 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 and Cautionary Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Investar's current views with respect to, among other things, future events and financial performance. Investar 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. In addition, any of the following matters related to the pandemic may impact our financial results in future periods, and such impacts may be material depending on the length and severity of the pandemic and government and societal responses to it:

• borrowers may default on loans and economic conditions could deteriorate requiring further increases to the allowance for loan losses;
• demand for our loans and other banking services, and related income and fees, may be reduced; and
• the value of collateral securing our loans may deteriorate.

Any forward-looking statements contained in this press release are based on the historical performance of Investar and its subsidiaries or on Investar's current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by Investar that the future plans, estimates or expectations by Investar will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to Investar'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 Investar's underlying assumptions prove to be incorrect, Investar's actual results may vary materially from those indicated in these statements. Investar 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:

• the ongoing impacts of the COVID-19 pandemic on economic conditions in general and on the Bank's markets in particular, and on the Bank's operations and financial results, including but not limited to potential continued higher inflation, and supply and labor constraints;
• ongoing disruptions in the oil and gas industry due to fluctuations in the price of oil;
• business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;
• increased cyber and payment fraud risk, as cybercriminals attempt to profit from the disruption, given increased online and remote activity;
• our ability to achieve organic loan and deposit growth, and the composition of that growth;
• our ability to identify and enter into agreements to combine with attractive acquisition candidates, finance acquisitions, complete acquisitions after definitive agreements are entered into, and successfully integrate acquired operations;
• changes (or the lack of changes) in interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing, including potential continued increases in interest rates during 2022;
• cessation of the one-week and two-month U.S. dollar settings of LIBOR as of December 31, 2021 and announced cessation of the remaining U.S. dollar LIBOR settings after June 30, 2023, and the related effect on our LIBOR-based financial products and contracts, including, but not limited to, hedging products, debt obligations, investments and loans;
• 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, Texas and Alabama; and
• concentration of credit exposure.

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 Investar's Annual Report on Form 10-K for the year ended December 31, 2020 filed with the Securities and Exchange Commission (the "SEC").

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
		12/31/2021				9/30/2021				12/31/2020				Linked Quarter				Year/Year
EARNINGS DATA
Total interest income		$	23,753			$	24,473			$	22,977				(2.9	)%			3.4	%
Total interest expense			2,286				2,925				3,823				(21.8	)			(40.2	)
Net interest income			21,467				21,548				19,154				(0.4	)			12.1
Provision for loan losses			658				21,713				2,400				(97.0	)			(72.6	)
Total noninterest income			1,681				3,914				3,675				(57.1	)			(54.3	)
Total noninterest expense			13,912				16,381				14,693				(15.1	)			(5.3	)
Income (loss) before income taxes			8,578				(12,632	)			5,736				167.9				49.5
Income tax expense (benefit)			1,642				(2,648	)			1,196				162.0				37.3
Net income (loss)		$	6,936			$	(9,984	)		$	4,540				169.5				52.8
AVERAGE BALANCE SHEET DATA
Total assets		$	2,595,211			$	2,686,712			$	2,314,997				(3.4	)%			12.1	%
Total interest-earning assets			2,385,896				2,482,070				2,147,086				(3.9	)			11.1
Total loans			1,885,979				1,923,960				1,838,426				(2.0	)			2.6
Total interest-bearing deposits			1,597,556				1,691,318				1,442,711				(5.5	)			10.7
Total interest-bearing liabilities			1,734,170				1,830,240				1,594,127				(5.2	)			8.8
Total deposits			2,200,718				2,272,715				1,900,974				(3.2	)			15.8
Total stockholders' equity			241,465				254,616				242,562				(5.2	)			(0.5	)
PER SHARE DATA
Earnings:
Basic earnings (loss) per common share		$	0.67			$	(0.95	)		$	0.42				170.5	%			59.5	%
Diluted earnings (loss) per common share			0.67				(0.95	)			0.42				170.5				59.5
Core Earnings(1):
Core basic earnings (loss) per common share(1)			0.56				(1.06	)			0.39				152.8				43.6
Core diluted earnings (loss) per common share(1)			0.56				(1.06	)			0.39				152.8				43.6
Book value per common share			23.45				22.85				22.93				2.6				2.3
Tangible book value per common share(1)			19.20				18.57				19.89				3.4				(3.5	)
Common shares outstanding			10,343,494				10,343,416				10,608,869				0.0				(2.5	)
Weighted average common shares outstanding - basic			10,343,467				10,398,787				10,621,763				(0.5	)			(2.6	)
Weighted average common shares outstanding - diluted			10,413,713				10,398,787				10,642,908				0.1				(2.2	)
PERFORMANCE RATIOS
Return on average assets			1.06	%			(1.47	)%			0.78	%			172.1	%			35.9	%
Core return on average assets(1)			0.89				(1.63	)			0.71				154.6				25.4
Return on average equity			11.40				(15.56	)			7.45				173.3				53.0
Core return on average equity(1)			9.59				(17.20	)			6.80				155.8				41.0
Net interest margin			3.57				3.44				3.55				3.8				0.6
Net interest income to average assets			3.28				3.18				3.29				3.1				(0.3	)
Noninterest expense to average assets			2.13				2.42				2.52				(12.0	)			(15.5	)
Efficiency ratio(2)			60.10				64.33				64.36				(6.6	)			(6.6	)
Core efficiency ratio(1)			66.54				67.17				65.29				(0.9	)			1.9
Dividend payout ratio			11.94				(8.42	)			15.48				241.8				(22.9	)
Net charge-offs to average loans			0.02				1.12				0.06				(98.2	)			(66.7	)

(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
		12/31/2021				9/30/2021				12/31/2020				Linked Quarter				Year/Year
ASSET QUALITY RATIOS
Nonperforming assets to total assets			1.28	%			1.25	%			0.62	%			2.4	%			106.5	%
Nonperforming loans to total loans			1.58				1.75				0.74				(9.7	)			113.5
Allowance for loan losses to total loans			1.11				1.09				1.09				1.8				1.8
Allowance for loan losses to nonperforming loans			70.59				62.44				147.27				13.1				(52.1	)
CAPITAL RATIOS
Investar Holding Corporation:
Total equity to total assets			9.65	%			8.77	%			10.48	%			10.0	%			(7.9	)%
Tangible equity to tangible assets(1)			8.04				7.24				9.22				11.0				(12.8	)
Tier 1 leverage ratio			8.12				7.60				9.49				6.8				(14.4	)
Common equity tier 1 capital ratio(2)			9.45				9.25				11.02				2.2				(14.2	)
Tier 1 capital ratio(2)			9.90				9.71				11.36				2.0				(12.9	)
Total capital ratio(2)			12.99				12.82				14.71				1.3				(11.7	)
Investar Bank:
Tier 1 leverage ratio			9.60				8.99				10.47				6.8				(8.3	)
Common equity tier 1 capital ratio(2)			11.72				11.50				12.53				1.9				(6.5	)
Tier 1 capital ratio(2)			11.72				11.50				12.53				1.9				(6.5	)
Total capital ratio(2)			12.75				12.53				13.62				1.8				(6.4	)

(1) Non-GAAP financial measure. See reconciliation.

(2) Estimated for December 31, 2021.

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

		December 31, 2021				September 30, 2021				December 31, 2020
ASSETS
Cash and due from banks		$	38,601			$	45,404			$	25,672
Interest-bearing balances due from other banks			57,940				304,587				9,696
Federal funds sold			500				500				-
Cash and cash equivalents			97,041				350,491				35,368
Available for sale securities at fair value (amortized cost of $356,639, $274,312, and $263,913, respectively)			355,509				274,387				268,410
Held to maturity securities at amortized cost (estimated fair value of $10,727, $11,936, and $12,649, respectively)			10,255				11,407				12,434
Loans held for sale			620				300				-
Loans, net of allowance for loan losses of $20,859, $20,567, and $20,363, respectively			1,851,153				1,860,091				1,839,955
Other equity securities			16,803				16,783				16,599
Bank premises and equipment, net of accumulated depreciation of $19,149, $18,579, and $15,830, respectively			58,080				61,619				56,303
Other real estate owned, net			2,653				635				663
Accrued interest receivable			11,355				11,732				12,969
Deferred tax asset			2,239				1,493				1,360
Goodwill and other intangible assets, net			44,036				44,283				32,232
Bank-owned life insurance			51,074				50,767				38,908
Other assets			12,385				12,060				5,980
Total assets		$	2,513,203			$	2,696,048			$	2,321,181
LIABILITIES
Deposits
Noninterest-bearing		$	585,465			$	597,452			$	448,230
Interest-bearing			1,534,801				1,706,189				1,439,594
Total deposits			2,120,266				2,303,641				1,887,824
Advances from Federal Home Loan Bank			78,500				78,500				120,500
Repurchase agreements			5,783				6,580				5,653
Subordinated debt			42,989				42,966				42,897
Junior subordinated debt			8,384				8,352				5,949
Accrued taxes and other liabilities			14,683				19,685				15,074
Total liabilities			2,270,605				2,459,724				2,077,897
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; 10,343,494, 10,343,416, and 10,608,869 shares issued and outstanding, respectively			10,343				10,344				10,609
Surplus			154,932				154,527				159,485
Retained earnings			76,160				70,054				71,385
Accumulated other comprehensive income			1,163				1,399				1,805
Total stockholders' equity			242,598				236,324				243,284
Total liabilities and stockholders' equity		$	2,513,203			$	2,696,048			$	2,321,181

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

		For the three months ended												For the twelve months ended
		December 31, 2021				September 30, 2021				December 31, 2020				December 31, 2021				December 31, 2020
INTEREST INCOME
Interest and fees on loans		$	22,248			$	23,220			$	21,712			$	90,230			$	87,365
Interest on investment securities			1,291				1,021				1,107				4,500				5,613
Other interest income			214				232				158				812				816
Total interest income			23,753				24,473				22,977				95,542				93,794
INTEREST EXPENSE
Interest on deposits			1,217				1,854				2,750				7,487				15,376
Interest on borrowings			1,069				1,071				1,073				4,241				4,884
Total interest expense			2,286				2,925				3,823				11,728				20,260
Net interest income			21,467				21,548				19,154				83,814				73,534
Provision for loan losses			658				21,713				2,400				22,885				11,160
Net interest income (loss) after provision for loan losses			20,809				(165	)			16,754				60,929				62,374
NONINTEREST INCOME
Service charges on deposit accounts			674				650				500				2,422				1,917
Gain on sale of investment securities, net			-				-				-				2,321				2,289
Loss on sale or disposition of fixed assets, net			(406	)			-				(33	)			(408	)			(38	)
Loss (gain) on sale of other real estate owned, net			-				-				(14	)			(5	)			12
Swap termination fee income			-				1,835				-				1,835				-
Gain on sale of loans			80				73				-				199				-
Servicing fees and fee income on serviced loans			37				38				78				204				379
Interchange fees			527				504				385				1,920				1,414
Income from bank owned life insurance			308				304				237				1,146				894
Change in the fair value of equity securities			10				48				877				214				268
Other operating income			451				462				1,645				2,194				4,961
Total noninterest income			1,681				3,914				3,675				12,042				12,096
Income before noninterest expense			22,490				3,749				20,429				72,971				74,470
NONINTEREST EXPENSE
Depreciation and amortization			1,240				1,264				1,185				4,988				4,570
Salaries and employee benefits			7,146				9,770				8,625				35,527				33,378
Occupancy			778				662				565				2,753				2,236
Data processing			678				715				774				3,112				3,069
Marketing			106				57				135				275				333
Professional fees			467				382				353				1,585				1,519
Acquisition expenses			-				446				4				2,448				1,062
Other operating expenses			3,497				3,085				3,052				12,374				10,964
Total noninterest expense			13,912				16,381				14,693				63,062				57,131
Income (loss) before income tax expense (benefit)			8,578				(12,632	)			5,736				9,909				17,339
Income tax expense (benefit)			1,642				(2,648	)			1,196				1,909				3,450
Net income (loss)		$	6,936			$	(9,984	)		$	4,540			$	8,000			$	13,889
EARNINGS PER SHARE
Basic earnings (loss) per common share		$	0.67			$	(0.95	)		$	0.42			$	0.77			$	1.27
Diluted earnings (loss) per common share			0.67				(0.95	)			0.42				0.76				1.27
Cash dividends declared per common share			0.08				0.08				0.07				0.31				0.25

INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)

		For the three months ended
		December 31, 2021												September 30, 2021												December 31, 2020
		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		$	1,885,979			$	22,248				4.68	%		$	1,923,960			$	23,220				4.79	%		$	1,838,426			$	21,712				4.70	%
Securities:
Taxable			287,692				1,156				1.59				262,751				892				1.35				265,068				965				1.45
Tax-exempt			20,267				135				2.63				18,499				129				2.76				20,265				142				2.78
Interest-bearing balances with banks			191,958				214				0.44				276,860				232				0.33				23,327				158				2.68
Total interest-earning assets			2,385,896				23,753				3.95				2,482,070				24,473				3.91				2,147,086				22,977				4.26
Cash and due from banks			47,384												38,511												30,353
Intangible assets			44,156												44,040												32,329
Other assets			139,064												142,608												124,377
Allowance for loan losses			(21,289	)											(20,517	)											(19,148	)
Total assets		$	2,595,211											$	2,686,712											$	2,314,997
Liabilities and stockholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand deposits		$	939,789			$	413				0.17	%		$	901,146			$	599				0.26	%		$	667,793			$	750				0.45	%
Brokered deposits			16,405				2				0.04				112,601				264				0.93				77,897				179				0.92
Savings deposits			178,751				43				0.09				173,971				67				0.15				140,141				87				0.25
Time deposits			462,611				759				0.65				503,600				924				0.73				556,880				1,734				1.24
Total interest-bearing deposits			1,597,556				1,217				0.30				1,691,318				1,854				0.43				1,442,711				2,750				0.76
Short-term borrowings			6,772				4				0.22				9,136				5				0.21				24,090				39				0.63
Long-term debt			129,842				1,065				3.26				129,786				1,066				3.26				127,326				1,034				3.23
Total interest-bearing liabilities			1,734,170				2,286				0.52				1,830,240				2,925				0.63				1,594,127				3,823				0.95
Noninterest-bearing deposits			603,162												581,397												458,263
Other liabilities			16,414												20,459												20,045
Stockholders' equity			241,465												254,616												242,562
Total liability and stockholders' equity		$	2,595,211											$	2,686,712											$	2,314,997
Net interest income/net interest margin						$	21,467				3.57	%						$	21,548				3.44	%						$	19,154				3.55	%

INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)

		For the twelve months ended
		December 31, 2021												December 31, 2020
		Average Balance				Interest Income/ Expense				Yield/ Rate				Average Balance				Interest Income/ Expense				Yield/ Rate
Assets
Interest-earning assets:
Loans		$	1,902,070			$	90,230				4.74	%		$	1,786,302			$	87,365				4.89	%
Securities:
Taxable			275,963				3,948				1.43				255,405				4,927				1.93
Tax-exempt			20,259				552				2.73				25,024				686				2.74
Interest-bearing balances with banks			176,349				812				0.46				42,852				816				1.90
Total interest-earning assets			2,374,641				95,542				4.02				2,109,583				93,794				4.45
Cash and due from banks			39,262												27,768
Intangible assets			41,299												32,190
Other assets			138,096												119,994
Allowance for loan losses			(20,704	)											(15,272	)
Total assets		$	2,572,594											$	2,274,263
Liabilities and stockholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand deposits		$	858,660			$	2,398				0.28	%		$	612,000			$	3,535				0.58	%
Brokered deposits			77,432				715				0.92				20,308				177				0.87
Savings deposits			168,194				247				0.15				129,211				401				0.31
Time deposits			508,954				4,127				0.81				640,549				11,263				1.76
Total interest-bearing deposits			1,613,240				7,487				0.46				1,402,068				15,376				1.10
Short-term borrowings			9,323				19				0.20				65,323				710				1.09
Long-term debt			129,318				4,222				3.26				128,163				4,174				3.26
Total interest-bearing liabilities			1,751,881				11,728				0.67				1,595,554				20,260				1.27
Noninterest-bearing deposits			553,083												418,240
Other liabilities			18,852												19,805
Stockholders' equity			248,778												240,664
Total liability and stockholders' equity		$	2,572,594											$	2,274,263
Net interest income/net interest margin						$	83,814				3.53	%						$	73,534				3.49	%

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
INTEREST EARNED AND YIELD ANALYSIS ADJUSTED FOR INTEREST ACCRETION, RECOVERIES AND ACCELERATED PPP INCOME
(Amounts in thousands)
(Unaudited)

		For the three months ended
		December 31, 2021												September 30, 2021												December 31, 2020
						Interest												Interest												Interest
		Average				Income/								Average				Income/								Average				Income/
		Balance				Expense				Yield/ Rate				Balance				Expense				Yield/ Rate				Balance				Expense				Yield/ Rate
Interest-earning assets:
Loans		$	1,885,979			$	22,248				4.68	%		$	1,923,960			$	23,220				4.79	%		$	1,838,426			$	21,712				4.70	%
Adjustments:
Accelerated fee income for forgiven or paid off PPP loans							812												1,001												361
Interest recoveries							119												187												10
Accretion							211												298												163
Adjusted loans			1,885,979				21,106				4.44				1,923,960				21,734				4.48				1,838,426				21,178				4.58
Securities:
Taxable			287,692				1,156				1.59				262,751				892				1.35				265,068				965				1.45
Tax-exempt			20,267				135				2.63				18,499				129				2.76				20,265				142				2.78
Interest-bearing balances with banks			191,958				214				0.44				276,860				232				0.33				23,327				158				2.68
Adjusted interest-earning assets			2,385,896				22,611				3.76				2,482,070				22,987				3.67				2,147,086				22,443				4.16
Total interest-bearing liabilities			1,734,170				2,286				0.52				1,830,240				2,925				0.63				1,594,127				3,823				0.95
Adjusted net interest income/adjusted net interest margin						$	20,325				3.38	%						$	20,062				3.21	%						$	18,620				3.45	%

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
INTEREST EARNED AND YIELD ANALYSIS ADJUSTED FOR PPP LOANS
(Amounts in thousands)
(Unaudited)

		For the three months ended
		December 31, 2021												September 30, 2021												December 31, 2020
						Interest												Interest												Interest
		Average				Income/								Average				Income/								Average				Income/
		Balance				Expense				Yield/ Rate				Balance				Expense				Yield/ Rate				Balance				Expense				Yield/ Rate
Interest-earning assets:
Loans		$	1,885,979			$	22,248				4.68	%		$	1,923,960			$	23,220				4.79	%		$	1,838,426			$	21,712				4.70	%
Adjustments:
PPP loans			33,182				975				11.69				58,481				1,309				8.88				106,646				1,064				3.97
Adjusted loans			1,852,797				21,273				4.56				1,865,479				21,911				4.66				1,731,780				20,648				4.74
Securities:
Taxable			287,692				1,156				1.59				262,751				892				1.35				265,068				965				1.45
Tax-exempt			20,267				135				2.63				18,499				129				2.76				20,265				142				2.78
Interest-bearing balances with banks			191,958				214				0.44				276,860				232				0.33				23,327				158				2.68
Adjusted interest-earning assets			2,352,714				22,778				3.84				2,423,589				23,164				3.79				2,040,440				21,913				4.27
Total interest-bearing liabilities			1,734,170				2,286				0.52				1,830,240				2,925				0.63				1,594,127				3,823				0.95
Adjusted net interest income/adjusted net interest margin						$	20,492				3.46	%						$	20,239				3.31	%						$	18,090				3.53	%

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)

		December 31, 2021				September 30, 2021				December 31, 2020
Tangible common equity
Total stockholders' equity		$	242,598			$	236,324			$	243,284
Adjustments:
Goodwill			40,088				40,088				28,144
Core deposit intangible			3,848				4,095				3,988
Trademark intangible			100				100				100
Tangible common equity		$	198,562			$	192,041			$	211,052
Tangible assets
Total assets		$	2,513,203			$	2,696,048			$	2,321,181
Adjustments:
Goodwill			40,088				40,088				28,144
Core deposit intangible			3,848				4,095				3,988
Trademark intangible			100				100				100
Tangible assets		$	2,469,167			$	2,651,765			$	2,288,949
Common shares outstanding			10,343,494				10,343,416				10,608,869
Tangible equity to tangible assets			8.04	%			7.24	%			9.22	%
Book value per common share		$	23.45			$	22.85			$	22.93
Tangible book value per common share			19.20				18.57				19.89

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)

			Three months ended
			December 31, 2021				September 30, 2021				December 31, 2020
Net interest income	(a)		$	21,467			$	21,548			$	19,154
Provision for loan losses				658				21,713				2,400
Net interest income (loss) after provision for loan losses				20,809				(165	)			16,754
Noninterest income	(b)			1,681				3,914				3,675
Loss on sale of other real estate owned, net				-				-				14
Loss on sale or disposition of fixed assets, net				406				-				33
Swap termination fee income				-				(1,835	)			-
Change in the fair value of equity securities				(10	)			(48	)			(877	)
Core noninterest income	(d)			2,077				2,031				2,845
Core earnings before noninterest expense				22,886				1,866				19,599
Total noninterest expense	(c)			13,912				16,381				14,693
Acquisition expense				-				(446	)			(4	)
Severance				(5	)			(98	)			(26	)
PPP incentive				-				-				(200	)
Community grant				-				-				(100	)
Employee retention credit, net of consulting fees				1,759				-				-
Core noninterest expense	(f)			15,666				15,837				14,363
Core earnings (loss) before income tax expense				7,220				(13,971	)			5,236
Core income tax expense (benefit)(1)				1,379				(2,934	)			1,092
Core earnings (loss)			$	5,841			$	(11,037	)		$	4,144
Core basic earnings (loss) per common share				0.56				(1.06	)			0.39
Diluted earnings (loss) per common share (GAAP)			$	0.67			$	(0.95	)		$	0.42
Loss on sale of other real estate owned, net				-				-				-
Loss on sale or disposition of fixed assets, net				0.03				-				-
Swap termination fee income				-				(0.14	)			-
Change in the fair value of equity securities				-				(0.01	)			(0.06	)
Acquisition expense				-				0.03				-
Severance				-				0.01				-
PPP incentive				-				-				0.02
Community grant				-				-				0.01
Employee retention credit, net of consulting fees				(0.14	)			-				-
Core diluted earnings (loss) per common share			$	0.56			$	(1.06	)		$	0.39
Efficiency ratio	(c) / (a+b)			60.10	%			64.33	%			64.36	%
Core efficiency ratio	(f) / (a+d)			66.54	%			67.17	%			65.29	%
Core return on average assets(2)				0.89	%			(1.63	)%			0.71	%
Core return on average equity(2)				9.59	%			(17.20	)%			6.80	%
Total average assets			$	2,595,211			$	2,686,712			$	2,314,997
Total average stockholders' equity				241,465				254,616				242,562

(1) Core income tax expense (benefit) is calculated using the effective tax rates of 19.1%, 21.0% and 20.9% for the quarters ended December 31, 2021, September 30, 2021 and December 31, 2020, respectively.

(2) Core earnings (loss) used in calculation. No adjustments were made to average assets or average equity.

SOURCE: Investar Holding Corporation

View source version on accesswire.com:
https://www.accesswire.com/685948/Investar-Holding-Corporation-Announces-2021-Fourth-Quarter-Results