Investar Holding Corporation Announces 2016 Fourth Quarter Results

January 26, 2017

BATON ROUGE, La., Jan. 26, 2017 (GLOBE NEWSWIRE) -- 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, 2016. The Company reported net income of $1.8 million, or $0.26 per diluted share for the fourth quarter of 2016, compared to $2.0 million, or $0.29 per diluted share for the quarter ended September 30, 2016, and $1.5 million, or $0.20 per diluted share, for the quarter ended December 31, 2015.

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

“I am pleased to announce our results, which include net income of $1.8 million for the fourth quarter of 2016, and record net income of $7.9 million for the year. This achievement was driven by our continued, strong loan and noninterest-bearing deposit growth of 20%, stable credit quality metrics, and our commitment to controlling our operating expenses.

This past year marked the 10^th anniversary of Investar Bank. The Bank was founded on the principles of serving our customers, the communities in which we operate, our employees, and our shareholders. We remain focused on these principles while we continue to execute our strategic objectives of increasing profitability, controlling operating expenses, and increasing shareholder value. We look forward to 2017 as the opportunities to continue to grow revenues and expand our customer base remain strong.”

Performance Highlights

• Total loans, excluding loans held for sale, increased $46.6 million, or 5.5%, compared to September 30, 2016, and increased $148.0 million, or 19.9%, compared to December 31, 2015, 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 $265.8 million at December 31, 2016, an increase of $15.5 million, or 6.2%, compared to the business lending portfolio of $250.3 million at September 30, 2016, and an increase of $58.1 million, or 28%, compared to the business lending portfolio of $207.7 million at December 31, 2015.
• Nonperforming loans to total loans decreased to 0.22% at December 31, 2016 compared to 1.06% at September 30, 2016.
• Total noninterest-bearing deposits were $108.4 million at December 31, 2016, an increase of $18.0 million, or 19.9%, compared to December 31, 2015.
• Total interest income increased $1.2 million, or 12.0%, for the quarter ended December 31, 2016 compared to the quarter ended December 31, 2015.
• Diluted earnings per share increased $0.06, or 30%, to $0.26 for the quarter ended December 31, 2016, compared to $0.20 for the quarter ended December 31, 2015.
• The dividend payout ratio increased to 4.65% for the quarter ended December 31, 2016 compared to 3.81% for the quarter ended September 30, 2016 and 4.26% for the quarter ended December 31, 2015.
• The Company repurchased 38,311 shares of the Company’s common stock through its stock repurchase program at an average price of $16.75 during the quarter ended December 31, 2016, leaving 241,243 shares available for repurchase. Since the inception of the board-approved repurchase program, the Company has repurchased 258,757 shares of its common stock at an average price of $15.63.
• The Company’s common stock had a closing trade price of $18.65 at December 30, 2016, representing 21.5% growth from a closing trade price of $15.35 at September 30, 2016.

Loans

Total loans were $893.4 million at December 31, 2016, an increase of $46.6 million, or 5.5%, compared to September 30, 2016, and an increase of $148.0 million, or 19.9%, compared to December 31, 2015.

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

														Linked Qtr Change								Year/Year Change								Percentage of Total Loans
		12/31/2016				9/30/2016				12/31/2015				$				%				$				%				12/31/2016			12/31/2015
Mortgage loans on real estate
Construction and development		$	90,737			$	92,355			$	81,863			$	(1,618	)		(1.8		)%		$	8,874				10.8	%			10.2	%		11.0	%
1-4 Family			177,205				175,392				156,300				1,813				1.0				20,905				13.4				19.8			21.0
Multifamily			42,759				42,560				29,694				199				0.5				13,065				44.0				4.8			4.0
Farmland			8,207				8,281				2,955				(74	)			(0.9	)			5,252				177.7				0.9			0.4
Commercial real estate
Owner-occupied			180,458				172,952				137,752				7,506				4.3				42,706				31.0				20.2			18.5
Nonowner-occupied			200,258				192,270				150,831				7,988				4.2				49,427				32.8				22.4			20.2
Commercial and industrial			85,377				77,312				69,961				8,065				10.4				15,416				22.0				9.6			9.4
Consumer			108,425				85,706				116,085				22,719				26.5				(7,660	)			(6.6	)			12.1			15.5
Total loans			893,426				846,828				745,441				46,598				5.5	%			147,985				19.9	%			100	%		100	%
Loans held for sale			-				40,553				80,509				(40,553	)			(100.0	)			(80,509	)			(100.0	)
Total gross loans		$	893,426			$	887,381			$	825,950			$	6,045				0.7	%		$	67,476				8.2	%

Consumer loans totaled $108.4 million at December 31, 2016, an increase of $22.7 million, or 26.5%, compared to $85.7 million at September 30, 2016, and a decrease of $7.7 million, or 6.6%, compared to $116.1 million at December 31, 2015. The increase in consumer loans when compared to the linked quarter is attributable to the reclassification of loans held for sale, which consisted only of indirect auto loans. Of the $40.6 million of loans held for sale at September 30, 2016, the Bank sold approximately $4.9 million during the fourth quarter of 2016. The remaining balance of the consumer loans held for sale was reclassified to the consumer loan portfolio as of December 31, 2016. Since the Bank discontinued accepting indirect auto loan applications at the end of 2015, which was the primary source of its consumer loan portfolio and consumer loans held for sale, the consumer loan portfolio is expected to decrease over time.

At December 31, 2016, 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 $265.8 million, an increase of $15.5 million, or 6.2%, compared to the business lending portfolio of $250.3 million at September 30, 2016, and an increase of $58.1 million, or 28%, compared to the business lending portfolio of $207.7 million at December 31, 2015.

Credit Quality

Nonperforming loans were $2.0 million, or 0.22% of total loans, at December 31, 2016, a decrease of $7.0 million, or 77.9%, compared to $9.0 million, or 1.06% of total loans, at September 30, 2016, and a decrease of $0.4 million, or 17.9%, compared to $2.4 million, or 0.32% of total loans, at December 31, 2015. The decrease in nonperforming loans when compared to the third quarter of 2016 is mainly attributable to one owner-occupied commercial real estate loan of approximately $4.3 million that was transferred to other real estate owned, net, on the consolidated balance sheet during the fourth quarter, and one commercial and industrial loan relationship not related to the oil and gas industry of approximately $2.6 million, which was placed back on accrual status during the fourth quarter, due to the borrower remaining current throughout its bankruptcy process and the Bank receiving additional cash collateral, as mentioned in a prior press release. Included in noninterest expense is approximately $0.2 million of legal and other operating expense incurred as a result of transferring the commercial real estate loan to other real estate owned.

The allowance for loan losses was $7.1 million, or 356.16% and 0.79% of nonperforming loans and total loans, respectively, at December 31, 2016, compared to $7.4 million, or 82.44% and 0.87% of nonperforming loans and total loans, respectively, at September 30, 2016, and $6.1 million, or 254.16% and 0.82% of nonperforming loans and total loans, respectively, at December 31, 2015. The reduction of the allowance for loan losses at December 31, 2016 compared to September 30, 2016 is mainly attributable to the $0.5 million write-down of the owner-occupied commercial real estate loan that was transferred to other real estate owned during the fourth quarter. The allowance for loan losses plus the fair value marks on acquired loans was 0.87% of total loans at December 31, 2016 compared to 0.95% at September 30, 2016 and 0.91% at December 31, 2015. The provision for loan loss expense was $0.4 million for the fourth quarter of 2016, a decrease of $0.1 million and an increase of $10,000 when compared to September 30, 2016 and December 31, 2015, respectively.

As a result of the flooding that occurred during the third quarter of 2016, the Company instituted a 90-day loan deferral program for customers who were impacted by the flood and has allocated a portion of its general reserves to the potential impact as a result of the flood. The Company placed approximately $23.5 million, or 2.8% of the total loan portfolio on a 90-day deferral plan during the third quarter of 2016. As these loans transition from a deferred status, the Company continues to assess the impact the flooding may have on the region and its loan portfolio to determine the need for specific or additional general reserves.

Management continues to monitor the Company’s loan portfolio for exposure to potential negative impacts of suppressed oil and gas prices. We consider our exposure to the energy sector not to be significant, at less than one percent of the total loan portfolio at December 31, 2016. However, should the price of oil and gas decline further and/or remain at the current low price for an extended period, the general economic conditions in our south Louisiana markets could be negatively affected and could negatively impact borrowers’ ability to service their debt. Management continually evaluates the allowance for loan losses based on several factors, including economic conditions, and currently believes that any potential negatively affected future cash flows related to these loans would be covered by the current allowance for loan losses.

Deposits

Total deposits at December 31, 2016 were $907.8 million, an increase of $0.7 million, or 0.1%, compared to September 30, 2016 and an increase of $170.4 million, or 23.1%, compared to December 31, 2015. The increase in total deposits was driven by an increase in noninterest-bearing deposits of $18.0 million, or 19.9%, an increase in NOW accounts of $31.1 million, or 22.1%, an increase in money market accounts of $27.0 million, or 28.1%, and an increase in time deposits of $95.3 million, or 26.7%, compared to December 31, 2015.

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

														Linked Qtr Change								Year/Year Change								Percentage of Total Deposits
		12/31/2016				9/30/2016				12/31/2015				$				%				$				%				12/31/2016				12/31/2015
Noninterest-bearing demand deposits		$	108,404			$	112,414			$	90,447			$	(4,010	)		(3.6		)%		$	17,957				19.9	%			11.9	%			12.3	%
NOW accounts			171,556				150,551				140,503				21,005				14.0				31,053				22.1				18.9				19.0
Money market deposit accounts			123,079				123,487				96,113				(408	)			(0.3	)			26,966				28.1				13.6				13.0
Savings accounts			52,860				51,332				53,735				1,528				3.0				(875	)			(1.6	)		5.8				7.3
Time deposits			451,888				469,267				356,608				(17,379	)			(3.7	)			95,280				26.7			49.8				48.4
Total deposits		$	907,787			$	907,051			$	737,406			$	736				0.1	%		$	170,381				23.1	%			100	%			100	%

Net Interest Income

Net interest income for the fourth quarter of 2016 totaled $8.8 million, remaining consistent with the third quarter of 2016, and increasing $0.6 million, or 6.7%, compared to the fourth quarter of 2015. The increase in net interest income was a direct result of continued growth of the Company’s loan portfolio with an increase in net interest income of $1.1 million due to an increase in volume offset by a $0.5 million decrease related to a reduction in yield compared to the fourth quarter of 2015.

The Company’s net interest margin was 3.20% for the quarter ended December 31, 2016 compared to 3.23% for the third quarter of 2016 and 3.53% for the fourth quarter of 2015. The yield on interest-earning assets was 4.04% for the quarter ended December 31, 2016 compared to 4.06% for the third quarter of 2016 and 4.24% for the fourth quarter of 2015. The decrease in net interest margin and yield on interest-earning assets when compared to the third quarter of 2016 is mainly attributable to the $4.3 million loan that was added to nonaccrual loans at the end of the third quarter and subsequently transferred to other real estate owned at the end of the fourth quarter, as discussed in Credit Quality above, as well as the decline in the yields on investment securities due to an increase in pay-downs of securities with unamortized premiums.

The cost of deposits remained constant at 0.98% for the quarter ended December 31, 2016 compared to the third quarter of 2016, and increased 12 basis points compared to the fourth quarter of 2015. The increase in the cost of deposits when compared to the fourth quarter of 2015 is primarily a result of increases in time deposit rates. Beginning in the third quarter of 2016 and continuing into the fourth quarter, the Company lowered its rates on time deposits in an effort to begin reducing its cost of funds. The rate reductions have resulted in a decrease in time deposits at December 31, 2016 compared to September 30, 2016, as shown in the Deposit table above.

Noninterest Income

Noninterest income for the fourth quarter of 2016 totaled $0.9 million, a decrease of $0.1 million, or 12.9%, compared to the third quarter of 2016, and a decrease of $0.7 million, or 43%, compared to the fourth quarter of 2015. The decrease in noninterest income when compared to the quarter ended September 30, 2016 is mainly attributable to the $0.2 million decrease in the gain on sale of investment securities offset by the $0.1 million increase in the gain on sale of loans. The decrease in noninterest income when compared to the fourth quarter of 2015 is mainly due to the $0.5 million decrease in the gain on sale of loans. Since exiting the indirect auto loan origination business at the end of 2015, the Bank has experienced decreased loan sales and has ceased originations of consumer loans held for sale. In the fourth quarter of 2016, the Bank sold approximately $4.9 million of its consumer loans held for sale and reclassified the remaining balance of loans held for sale into its consumer portfolio.

Noninterest Expense

Noninterest expense for the fourth quarter of 2016 totaled $6.6 million, an increase of $0.1 million, or 0.8%, compared to the third quarter of 2016, and a decrease of $0.6 million, or 8.7%, compared to the fourth quarter of 2015. The increase in noninterest expense compared to the third quarter of 2016 is a result of approximately $0.2 million in legal and other operating expenses related to the $4.3 million owner-occupied commercial real estate nonaccrual loan that was transferred to other real estate owned during the fourth quarter. The decrease in noninterest expense compared to the fourth quarter of 2015 is mainly due to a $0.5 million decrease in salaries and benefits, which is primarily a result of the Company’s exit from the indirect auto loan origination business at the end of 2015.

Basic Earnings Per Share and Diluted Earnings Per Share

The Company reported both basic and diluted earnings per share of $0.26 for the three months ended December 31, 2016, an increase of $0.06, compared to basic and diluted earnings per share of $0.20 for the three months ended December 31, 2015.

Taxes

The Company recorded income tax expense of $0.9 million for the quarter ended December 31, 2016, which equates to an effective tax rate of 31.5%.

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 10 full service banking offices located throughout its market. At December 31, 2016, the Company had 152 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,” and “tangible book value per common 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 and including the potential impact on our borrowers of the August 2016 flooding in Baton Rouge and surrounding areas;
• 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; 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 Item 7. “Special Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission.

INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)
		As of and for the three months ended
		12/31/2016				9/30/2016				12/31/2015				Linked Quarter				Year/Year
EARNINGS DATA
Total interest income		$	11,062			$	10,993			$	9,873				0.6	%			12.0	%
Total interest expense			2,281				2,240				1,646				1.8	%			38.6	%
Net interest income			8,781				8,753				8,227				0.3	%			6.7	%
Provision for loan losses			375				450				365				-16.7	%			2.7	%
Total noninterest income			896				1,029				1,571				-12.9	%			-43.0	%
Total noninterest expense			6,603				6,548				7,234				0.8	%			-8.7	%
Income before income taxes			2,699				2,784				2,199				-3.1	%			22.7	%
Income tax expense			851				747				745				13.9	%			14.2	%
Net income		$	1,848			$	2,037			$	1,454				-9.3	%			27.1	%
AVERAGE BALANCE SHEET DATA
Total assets		$	1,147,835			$	1,134,591			$	974,820				1.2	%			17.7	%
Total interest-earning assets			1,087,645				1,075,145				923,662				1.2	%			17.8	%
Total loans			863,293				840,028				739,809				2.8	%			16.7	%
Total gross loans			889,814				874,272				793,830				1.8	%			12.1	%
Total interest-bearing deposits			798,250				784,591				645,247				1.7	%			23.7	%
Total interest-bearing liabilities			917,085				905,521				759,068				1.3	%			20.8	%
Total deposits			904,310				887,327				887,327				1.9	%			1.9	%
Total stockholders’ equity			113,917				113,056				108,998				0.8	%			4.5	%
PER SHARE DATA
Earnings:
Basic earnings per share		$	0.26			$	0.29			$	0.20				-10.3	%			30.0	%
Diluted earnings per share			0.26				0.29				0.20				-10.3	%			30.0	%
Book value per share			15.88				15.93				15.05				-0.3	%			5.5	%
Tangible book value per common share(1)			15.42				15.47				14.62				-0.3	%			5.5	%
Common shares outstanding			7,101,851				7,131,186				7,264,282				-0.4	%			-2.2	%
PERFORMANCE RATIOS
Return on average assets			0.65	%			0.71	%			0.59	%			-8.5	%			10.2	%
Return on average equity			6.51	%			7.15	%			5.29	%			-9.0	%			23.1	%
Net interest margin			3.20	%			3.23	%			3.53	%			-0.9	%			-9.3	%
Net interest income to average assets			3.04	%			3.06	%			3.35	%			-0.7	%			-9.3	%
Noninterest expense to average assets			2.28	%			2.29	%			2.94	%			-0.4	%			-22.4	%
Efficiency ratio(2)			68.23	%			66.94	%			73.83	%			1.9	%			-7.6	%
Dividend payout ratio			4.65	%			3.81	%			4.26	%			22.0	%			9.2	%
Net charge-offs to average loans			0.08	%			0.02	%			0.02	%			300.0	%			300.0	%
(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
		12/31/2016				9/30/2016				12/31/2015				Linked Quarter				Year/Year
ASSET QUALITY RATIOS
Nonperforming assets to total assets			0.52	%			0.80	%			0.30	%			-35.0	%			73.3	%
Nonperforming loans to total loans			0.22	%			1.06	%			0.32	%			-79.2	%			-31.3	%
Allowance for loan losses to total loans			0.79	%			0.87	%			0.82	%			-9.2	%			-3.7	%
Allowance for loan losses to nonperforming loans			356.16	%			82.44	%			254.16	%			332.0	%			40.1	%
CAPITAL RATIOS
Investar Holding Corporation:
Total equity to total assets			9.73	%			9.84	%			10.60	%			-1.1	%			-8.2	%
Tangible equity to tangible assets(1)			9.48	%			9.59	%			10.32	%			-1.1	%			-8.1	%
Tier 1 leverage ratio			10.10	%			10.10	%			11.39	%			0.0	%			-11.3	%
Common equity tier 1 capital ratio(2)			11.40	%			11.02	%			11.67	%			3.4	%			-2.3	%
Tier 1 capital ratio(2)			11.75	%			11.37	%			12.05	%			3.3	%			-2.5	%
Total capital ratio(2)			12.47	%			12.11	%			12.72	%			3.0	%			-2.0	%
Investar Bank:
Tier 1 leverage ratio			10.03	%			9.94	%			11.07	%			0.9	%			-9.4	%
Common equity tier 1 capital ratio(2)			11.67	%			11.19	%			11.71	%			4.3	%			-0.3	%
Tier 1 capital ratio(2)			11.67	%			11.19	%			11.71	%			4.3	%			-0.3	%
Total capital ratio(2)			12.39	%			11.93	%			12.38	%			3.9	%			0.1	%
(1) Non-GAAP financial measure. See reconciliation.
(2) Estimated for December 31, 2016.

 

INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)
		December 31, 2016				September 30, 2016				December 31, 2015
ASSETS
Cash and due from banks		$	9,773			$	10,172			$	6,313
Interest-bearing balances due from other banks			19,569				35,811				14,472
Federal funds sold			106				172				181
Cash and cash equivalents			29,448				46,155				20,966
Available for sale securities at fair value (amortized cost of $166,258, $147,609, and $113,828, respectively)			163,051				148,981				113,371
Held to maturity securities at amortized cost (estimated fair value of $19,612, $21,625, and $26,271, respectively)			20,091				21,454				26,408
Loans held for sale			-				40,553				80,509
Loans, net of allowance for loan losses of $7,051, $7,383, and $6,128, respectively			886,375				839,445				739,313
Other equity securities			5,362				7,388				5,835
Bank premises and equipment, net of accumulated depreciation of $6,751, $6,380, and $5,368, respectively			31,722				31,835				30,630
Other real estate owned, net			4,065				279				725
Accrued interest receivable			3,218				3,081				2,831
Deferred tax asset			2,868				1,384				1,915
Goodwill and other intangible assets, net			3,234				3,244				3,175
Bank-owned life insurance			7,201				7,150				3,512
Other assets			2,325				3,256				2,365
Total assets		$	1,158,960			$	1,154,205			$	1,031,555
LIABILITIES
Deposits
Noninterest-bearing		$	108,404			$	112,414			$	90,447
Interest-bearing			799,383				794,637				646,959
Total deposits			907,787				907,051				737,406
Advances from Federal Home Loan Bank			82,803				88,943				127,497
Repurchase agreements			39,087				23,554				39,099
Junior subordinated debt			3,609				3,609				3,609
Other borrowings			1,000				-				-
Accrued taxes and other liabilities			11,917				17,472				14,594
Total liabilities			1,046,203				1,040,629				922,205
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; 7,368,914, 7,359,666, and 7,305,213 shares issued, and 7,101,851, 7,131,186, and 7,264,282 shares outstanding, respectively			7,369				7,360				7,305
Treasury stock			(4,172	)			(3,526	)			(634	)
Surplus			85,404				85,124				84,692
Retained earnings			26,227				24,465				18,650
Accumulated other comprehensive (loss) income			(2,071	)			153				(663	)
Total stockholders’ equity			112,757				113,576				109,350
Total liabilities and stockholders’ equity		$	1,158,960			$	1,154,205			$	1,031,555

 

INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data)
(Unaudited)
		For the three months ended												For the twelve months ended
		December 31, 2016				September 30, 2016				December 31, 2015				December 31, 2016				December 31, 2015
INTEREST INCOME
Interest and fees on loans		$	10,103			$	10,011			$	9,220			$	39,380			$	35,076
Interest on investment securities			898				920				631				3,565				2,189
Other interest income			61				62				22				207				75
Total interest income			11,062				10,993				9,873				43,152				37,340
INTEREST EXPENSE
Interest on deposits			1,970				1,934				1,401				7,182				5,250
Interest on borrowings			311				306				245				1,231				632
Total interest expense			2,281				2,240				1,646				8,413				5,882
Net interest income			8,781				8,753				8,227				34,739				31,458
Provision for loan losses			375				450				365				2,079				1,865
Net interest income after provision for loan losses			8,406				8,303				7,862				32,660				29,593
NONINTEREST INCOME
Service charges on deposit accounts			79				79				94				343				380
Gain on sale of investment securities, net			15				204				21				443				489
Gain on sale of fixed assets, net			14				-				-				1,266				15
Gain (loss) on sale of other real estate owned, net			2				-				36				13				(105	)
Gain on sale of loans, net			92				-				537				405				4,368
Servicing fees and fee income on serviced loans			449				510				690				2,087				2,543
Other operating income			245				236				193				911				654
Total noninterest income			896				1,029				1,571				5,468				8,344
Income before noninterest expense			9,302				9,332				9,433				38,128				37,937
NONINTEREST EXPENSE
Depreciation and amortization			383				371				365				1,493				1,446
Salaries and employee benefits			3,901				3,945				4,358				15,609				16,398
Occupancy			252				265				296				995				951
Data processing			373				374				409				1,488				1,508
Marketing			70				102				93				386				248
Professional fees			295				312				305				1,261				1,075
Customer reimbursements			-				-				-				584				-
Other operating expenses			1,329				1,179				1,408				4,823				5,727
Total noninterest expense			6,603				6,548				7,234				26,639				27,353
Income before income tax expense			2,699				2,784				2,199				11,489				10,584
Income tax expense			851				747				745				3,609				3,511
Net income		$	1,848			$	2,037			$	1,454			$	7,880			$	7,073
EARNINGS PER SHARE
Basic earnings per share		$	0.26			$	0.29			$	0.20			$	1.11			$	0.98
Diluted earnings per share		$	0.26			$	0.29			$	0.20			$	1.10			$	0.97
Cash dividends declared per common share		$	0.01			$	0.01			$	0.01			$	0.04			$	0.03

 

INVESTAR HOLDING CORPORATION
EARNINGS PER COMMON SHARE
(Amounts in thousands, except share data)
(Unaudited)
		For the three months ended												For the twelve months ended
		December 31, 2016				September 30, 2016				December 31, 2015				December 31, 2016				December 31, 2015
Net income available to common stockholders		$	1,848			$	2,037			$	1,454			$	7,880			$	7,073
Weighted average number of common shares outstanding used in computation of basic earnings per common share			7,017,213				7,059,953				7,200,526				7,107,187				7,214,045
Effect of dilutive securities:
Restricted stock			21,648				15,546				12,564				10,228				5,861
Stock options			33,664				15,369				21,150				33,664				21,150
Stock warrants			17,975				11,575				16,952				17,975				16,952
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share			7,090,500				7,102,443				7,251,192				7,169,054				7,258,008
Basic earnings per share		$	0.26			$	0.29			$	0.20			$	1.11			$	0.98
Diluted earnings per share		$	0.26			$	0.29			$	0.20			$	1.10			$	0.97

 

INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
		For the three months ended
		December 31, 2016												September 30, 2016												December 31, 2015
						Interest												Interest												Interest
		Average				Income/				Yield/				Average				Income/				Yield/				Average				Income/				Yield/
		Balance				Expense				Rate				Balance				Expense				Rate				Balance				Expense				Rate
Assets
Interest-earning assets:
Loans		$	889,814			$	10,103				4.50	%		$	874,272			$	10,011				4.54	%		$	793,830			$	9,220				4.61	%
Securities:
Taxable			138,985				707				2.02				136,047				728				2.12				93,713				527				2.23
Tax-exempt			30,898				191				2.45				30,733				192				2.48				17,174				104				2.40
Interest-bearing balances with banks			27,948				61				0.87				34,093				62				0.72				18,945				22				0.46
Total interest-earning assets			1,087,645				11,062				4.04				1,075,145				10,993				4.06				923,662				9,873				4.24
Cash and due from banks			7,845												7,138												5,656
Intangible assets			3,237												3,248												3,178
Other assets			56,361												56,273												48,374
Allowance for loan losses			(7,253	)											(7,213	)											(6,050	)
Total assets		$	1,147,835											$	1,134,591											$	974,820
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand		$	281,500			$	485				0.68	%		$	262,841			$	433				0.65	%		$	233,748			$	369				0.63	%
Savings deposits			53,219				87				0.65				51,924				88				0.67				54,482				92				0.67
Time deposits			463,531				1,398				1.20				469,826				1,413				1.19				357,017				940				1.04
Total interest-bearing deposits			798,250				1,970				0.98				784,591				1,934				0.98				645,247				1,401				0.86
Short-term borrowings			99,169				246				0.98				98,286				237				0.96				84,531				171				0.80
Long-term debt			19,666				65				1.31				22,644				69				1.21				29,290				74				1.00
Total interest-bearing liabilities			917,085				2,281				0.99				905,521				2,240				0.98				759,068				1,646				0.86
Noninterest-bearing deposits			106,060												102,736												95,954
Other liabilities			10,773												13,278												10,800
Stockholders’ equity			113,917												113,056												108,998
Total liability and stockholders’ equity		$	1,147,835											$	1,134,591											$	974,820
Net interest income/net interest margin						$	8,781				3.20	%						$	8,753				3.23	%						$	8,227				3.53	%

 

INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
		For the twelve months ended
		December 31, 2016												December 31, 2015
						Interest												Interest
		Average				Income/								Average				Income/
		Balance				Expense				Yield/ Rate				Balance				Expense				Yield/ Rate
Assets
Interest-earning assets:
Loans		$	862,340			$	39,380				4.55	%		$	754,056			$	35,076				4.65	%
Securities:
Taxable			129,251				2,878				2.22				80,516				1,741				2.16
Tax-exempt			27,171				687				2.52				18,077				448				2.48
Interest-bearing balances with banks			26,196				207				0.79				18,136				75				0.41
Total interest-earning assets			1,044,958				43,152				4.12				870,785				37,340				4.29
Cash and due from banks			7,463												5,611
Intangible assets			3,231												3,194
Other assets			54,951												46,313
Allowance for loan losses			(6,891	)											(5,636	)
Total assets		$	1,103,712											$	920,267
Liabilities and stockholders’ equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand		$	257,888			$	1,690				0.65	%		$	222,730			$	1,402				0.63	%
Savings deposits			52,753				353				0.67				54,240				367				0.68
Time deposits			439,423				5,139				1.17				343,638				3,481				1.01
Total interest-bearing deposits			750,064				7,182				0.95				620,608				5,250				0.85
Short-term borrowings			108,339				956				0.88				60,970				296				0.49
Long-term debt			23,092				275				1.19				36,712				336				0.92
Total interest-bearing liabilities			881,495				8,413				0.95				718,290				5,882				0.82
Noninterest-bearing deposits			97,948												85,635
Other liabilities			11,793												9,256
Stockholders’ equity			112,476												107,086
Total liability and stockholders’  equity		$	1,103,712											$	920,267
Net interest income/net interest margin						$	34,739				3.32	%						$	31,458				3.61	%

 

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
		December 31, 2016				September 30, 2016				December 31, 2015
Tangible common equity
Total stockholders’ equity		$	112,757			$	113,576			$	109,350
Adjustments:
Goodwill			2,684				2,684				2,684
Core deposit intangible			450				460				491
Trademark intangible			100				100				-
Tangible common equity		$	109,523			$	110,332			$	106,175
Tangible assets
Total assets		$	1,158,960			$	1,154,205			$	1,031,555
Adjustments:
Goodwill			2,684				2,684				2,684
Core deposit intangible			450				460				491
Trademark intangible			100				100				-
Tangible assets		$	1,155,726			$	1,150,961			$	1,028,380
Common shares outstanding			7,101,851				7,131,186				7,264,282
Tangible equity to tangible assets			9.48	%			9.59	%			10.32	%
Book value per common share		$	15.88			$	15.93			$	15.05
Tangible book value per common share			15.42				15.47				14.62

For further information contact:

Investar Holding Corporation
Chris Hufft
Chief Financial Officer
(225) 227-2215
Chris.Hufft@investarbank.com

Source: Investar Holding Corporation