Louisiana
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001-36522
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27-1560715
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(State or other jurisdiction
of incorporation)
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(Commission
File Number)
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(I.R.S. Employer
Identification No.)
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7244 Perkins Road
Baton Rouge, Louisiana 70808
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(Address of principal executive offices) (Zip Code)
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þ
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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o
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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o
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02
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Results of Operations and Financial Condition.
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Item 8.01
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Other Events
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Item 9.01
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Financial Statements and Exhibits.
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Exhibit Number
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Description of Exhibit
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INVESTAR HOLDING CORPORATION
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Date: January 28, 2019
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By:
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/s/ John J. D’Angelo
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John J. D’Angelo
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President and Chief Executive Officer
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•
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Total revenues, or interest and noninterest income, for the quarter ended
December 31, 2018
totaled $20.8 million, an increase of $0.8 million, or 3.9%, compared to the quarter ended
September 30, 2018
, and an increase of $3.8 million, or 22.7%, compared to the quarter ended
December 31, 2017
.
|
•
|
Total loans increased $
42.4 million
, or
3.1%
, to
$1.40 billion
at
December 31, 2018
, compared to
$1.36 billion
at
September 30, 2018
, and increased
$142.0 million
, or
11.3%
compared to
$1.26 billion
at
December 31, 2017
.
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•
|
The business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was
$509.1 million
at
December 31, 2018
, an increase of
$24.4 million
, or
5.0%
, compared to the business lending portfolio of
$484.7 million
at
September 30, 2018
, and an increase of
$101.3 million
, or
24.8%
, compared to the business lending portfolio of
$407.8 million
at
December 31, 2017
.
|
•
|
Total deposits increased
$66.1 million
, or
5.1%
, to
$1.36 billion
at
December 31, 2018
, compared to
$1.30 billion
at
September 30, 2018
, and increased
$136.5 million
, or
11.1%
, compared to
$1.23 billion
at
December 31, 2017
.
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•
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The Bank opened its 21st full-service branch location in our Baton Rouge market as well as a freestanding Interactive Teller Machine (ITM) in Lake Charles, Louisiana, creating additional banking opportunities for existing and potential customers.
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•
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The Company repurchased 61,784 and 132,484 shares of its common stock through its stock repurchase program at an average price of $24.75 and $25.37 during the quarter and year ended
December 31, 2018
, respectively, leaving 86,240 shares available for repurchase.
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•
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On October 10, 2018, the Company announced that it has entered into a definitive agreement to acquire Mainland Bank, Texas City, Texas. Pursuant to the agreement, the shareholders of Mainland Bank will be entitled to receive an aggregate of approximately 764,000 shares of Company common stock, subject to certain adjustments. It is expected that shareholders of Mainland Bank will own approximately 7.4% of the combined company following the acquisition. Mainland Bank’s shareholders approved the transaction on January 14, 2019. The transaction is expected to close in the first quarter of 2019 and is subject to customary closing conditions, including approval of bank regulatory authorities.
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Linked Quarter Change
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Year/Year Change
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Percentage of Total Loans
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||||||||||||||||||||
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12/31/2018
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9/30/2018
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|
12/31/2017
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$
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%
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$
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%
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12/31/2018
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|
12/31/2017
|
||||||||||||||
Mortgage loans on real estate
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|
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Construction and development
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$
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157,946
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$
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160,921
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$
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157,667
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$
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(2,975
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)
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(1.8
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)%
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$
|
279
|
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|
0.2
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%
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11.3
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%
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12.5
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%
|
1-4 Family
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287,137
|
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286,976
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276,922
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|
161
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0.1
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10,215
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3.7
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20.5
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|
22.0
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|||||
Multifamily
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50,501
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50,770
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51,283
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(269
|
)
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(0.5
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)
|
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(782
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)
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(1.5
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)
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3.6
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4.1
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|||||
Farmland
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21,356
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20,902
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23,838
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|
454
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2.2
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(2,482
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)
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(10.4
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)
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1.5
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1.9
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|||||
Commercial real estate
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||||||||||||||
Owner-occupied
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298,222
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291,168
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272,433
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7,054
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2.4
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25,789
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9.5
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21.3
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21.6
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|||||
Nonowner-occupied
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328,782
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301,828
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264,931
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26,954
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8.9
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63,851
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24.1
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23.5
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21.0
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|||||
Commercial and industrial
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210,924
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193,563
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135,392
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17,361
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9.0
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75,532
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55.8
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15.0
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10.8
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|||||
Consumer
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45,957
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52,284
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76,313
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(6,327
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)
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(12.1
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)
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(30,356
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)
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(39.8
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)
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3.3
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6.1
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|||||
Total loans
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$
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1,400,825
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$
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1,358,412
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$
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1,258,779
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$
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42,413
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3.1
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%
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$
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142,046
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11.3
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%
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100
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%
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100
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%
|
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Linked Quarter Change
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Year/Year Change
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Percentage of
Total Deposits |
||||||||||||||||||||
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12/31/2018
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9/30/2018
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12/31/2017
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$
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%
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$
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%
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12/31/2018
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12/31/2017
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||||||||||||||
Noninterest-bearing demand deposits
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$
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217,457
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$
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214,190
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$
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216,599
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$
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3,267
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1.5
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%
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$
|
858
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0.4
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%
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16.0
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%
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17.7
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%
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Interest-bearing demand deposits
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295,212
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245,569
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208,683
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49,643
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20.2
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86,529
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41.5
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21.7
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|
17.0
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|||||
Money market deposit accounts
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179,340
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179,071
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146,140
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|
269
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|
0.2
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33,200
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22.7
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13.2
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|
|
11.9
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|||||
Savings accounts
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104,146
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|
112,078
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|
117,372
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(7,932
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)
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|
(7.1
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)
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|
(13,226
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)
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(11.3
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)
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7.6
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|
9.6
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|||||
Time deposits
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565,576
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|
544,713
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536,443
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20,863
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3.8
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|
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29,133
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5.4
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41.5
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43.8
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|||||
Total deposits
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$
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1,361,731
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$
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1,295,621
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$
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1,225,237
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$
|
66,110
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5.1
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%
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|
$
|
136,494
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|
|
11.1
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%
|
|
100.0
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%
|
|
100.0
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%
|
•
|
business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;
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•
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our ability to achieve organic loan and deposit growth, and the composition of that growth;
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•
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changes (or the lack of changes) in interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;
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•
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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;
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•
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our dependence on our management team, and our ability to attract and retain qualified personnel;
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•
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changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers;
|
•
|
inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates;
|
•
|
the concentration of our business within our geographic areas of operation in Louisiana;
|
•
|
concentration of credit exposure; and
|
•
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the satisfaction of the conditions to closing the pending acquisition of Mainland Bank and the ability to subsequently integrate it effectively.
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INVESTAR HOLDING CORPORATION
|
||||||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||||||
(Amounts in thousands, except share data)
|
||||||||||||
(Unaudited)
|
||||||||||||
|
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|
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|
||||||
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|
December 31, 2018
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||
ASSETS
|
|
|
|
|
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|
||||||
Cash and due from banks
|
|
$
|
15,922
|
|
|
$
|
21,151
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|
|
$
|
19,619
|
|
Interest-bearing balances due from other banks
|
|
1,212
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|
|
3,352
|
|
|
10,802
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|
|||
Federal funds sold
|
|
6
|
|
|
285
|
|
|
—
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|
|||
Cash and cash equivalents
|
|
17,140
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|
|
24,788
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|
|
30,421
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|
|||
|
|
|
|
|
|
|
||||||
Available for sale securities at fair value (amortized cost of $253,504, $238,443, and $220,077, respectively)
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|
248,981
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|
|
230,747
|
|
|
217,564
|
|
|||
Held to maturity securities at amortized cost (estimated fair value of $15,805, $16,691, and $17,947, respectively)
|
|
16,066
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|
|
17,030
|
|
|
17,997
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|
|||
Loans, net of allowance for loan losses of $9,454, $9,021, and $7,891, respectively
|
|
1,391,371
|
|
|
1,349,391
|
|
|
1,250,888
|
|
|||
Other equity securities
|
|
13,562
|
|
|
12,671
|
|
|
9,798
|
|
|||
Bank premises and equipment, net of accumulated depreciation of $9,898, $9,332, and $7,825, respectively
|
|
40,229
|
|
|
39,831
|
|
|
37,540
|
|
|||
Other real estate owned, net
|
|
3,611
|
|
|
4,227
|
|
|
3,837
|
|
|||
Accrued interest receivable
|
|
5,553
|
|
|
5,073
|
|
|
4,688
|
|
|||
Deferred tax asset
|
|
1,145
|
|
|
1,768
|
|
|
1,294
|
|
|||
Goodwill and other intangible assets, net
|
|
19,787
|
|
|
19,902
|
|
|
19,926
|
|
|||
Bank-owned life insurance
|
|
23,859
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|
|
23,702
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|
|
23,231
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|
|||
Other assets
|
|
5,165
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|
|
6,185
|
|
|
5,550
|
|
|||
Total assets
|
|
$
|
1,786,469
|
|
|
$
|
1,735,315
|
|
|
$
|
1,622,734
|
|
|
|
|
|
|
|
|
||||||
LIABILITIES
|
|
|
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|
|
|
||||||
Deposits
|
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|
|
|
|
|
||||||
Noninterest-bearing
|
|
$
|
217,457
|
|
|
$
|
214,190
|
|
|
$
|
216,599
|
|
Interest-bearing
|
|
1,144,274
|
|
|
1,081,431
|
|
|
1,008,638
|
|
|||
Total deposits
|
|
1,361,731
|
|
|
1,295,621
|
|
|
1,225,237
|
|
|||
Advances from Federal Home Loan Bank
|
|
206,490
|
|
|
208,083
|
|
|
166,658
|
|
|||
Repurchase agreements
|
|
1,999
|
|
|
17,931
|
|
|
21,935
|
|
|||
Subordinated debt
|
|
18,215
|
|
|
18,203
|
|
|
18,168
|
|
|||
Junior subordinated debt
|
|
5,845
|
|
|
5,832
|
|
|
5,792
|
|
|||
Accrued taxes and other liabilities
|
|
9,927
|
|
|
11,238
|
|
|
12,215
|
|
|||
Total liabilities
|
|
1,604,207
|
|
|
1,556,908
|
|
|
1,450,005
|
|
|||
|
|
|
|
|
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|
||||||
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
||||||
Preferred stock, no par value per share; 5,000,000 shares authorized
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Common stock, $1.00 par value per share; 40,000,000 shares authorized; 9,484,219, 9,545,701, and 9,514,926 shares outstanding, respectively
|
|
9,484
|
|
|
9,546
|
|
|
9,515
|
|
|||
Surplus
|
|
130,133
|
|
|
131,333
|
|
|
131,582
|
|
|||
Retained earnings
|
|
45,721
|
|
|
42,868
|
|
|
33,203
|
|
|||
Accumulated other comprehensive loss
|
|
(3,076
|
)
|
|
(5,340
|
)
|
|
(1,571
|
)
|
|||
Total stockholders’ equity
|
|
182,262
|
|
|
178,407
|
|
|
172,729
|
|
|||
Total liabilities and stockholders’ equity
|
|
$
|
1,786,469
|
|
|
$
|
1,735,315
|
|
|
$
|
1,622,734
|
|
INVESTAR HOLDING CORPORATION
|
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME
|
||||||||||||||||||||
(Amounts in thousands, except share data)
|
||||||||||||||||||||
(Unaudited)
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
For the three months ended
|
|
For the twelve months ended
|
||||||||||||||||
|
|
December 31, 2018
|
|
September 30, 2018
|
|
December 31, 2017
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||
INTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest and fees on loans
|
|
$
|
17,996
|
|
|
$
|
16,905
|
|
|
$
|
14,407
|
|
|
$
|
66,750
|
|
|
$
|
47,863
|
|
Interest on investment securities
|
|
1,795
|
|
|
1,710
|
|
|
1,428
|
|
|
6,608
|
|
|
5,055
|
|
|||||
Other interest income
|
|
136
|
|
|
162
|
|
|
132
|
|
|
533
|
|
|
428
|
|
|||||
Total interest income
|
|
19,927
|
|
|
18,777
|
|
|
15,967
|
|
|
73,891
|
|
|
53,346
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
INTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest on deposits
|
|
3,721
|
|
|
2,994
|
|
|
2,233
|
|
|
11,394
|
|
|
8,050
|
|
|||||
Interest on borrowings
|
|
1,399
|
|
|
1,398
|
|
|
917
|
|
|
5,127
|
|
|
2,779
|
|
|||||
Total interest expense
|
|
5,120
|
|
|
4,392
|
|
|
3,150
|
|
|
16,521
|
|
|
10,829
|
|
|||||
Net interest income
|
|
14,807
|
|
|
14,385
|
|
|
12,817
|
|
|
57,370
|
|
|
42,517
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Provision for loan losses
|
|
593
|
|
|
785
|
|
|
395
|
|
|
2,570
|
|
|
1,540
|
|
|||||
Net interest income after provision for loan losses
|
|
14,214
|
|
|
13,600
|
|
|
12,422
|
|
|
54,800
|
|
|
40,977
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NONINTEREST INCOME
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Service charges on deposit accounts
|
|
399
|
|
|
368
|
|
|
293
|
|
|
1,453
|
|
|
767
|
|
|||||
(Loss) Gain on sale of investment securities, net
|
|
(23
|
)
|
|
15
|
|
|
50
|
|
|
14
|
|
|
292
|
|
|||||
Gain (loss) on sale of fixed assets, net
|
|
—
|
|
|
9
|
|
|
(57
|
)
|
|
98
|
|
|
127
|
|
|||||
(Loss) gain on sale of other real estate owned, net
|
|
(20
|
)
|
|
—
|
|
|
(5
|
)
|
|
(24
|
)
|
|
27
|
|
|||||
Servicing fees and fee income on serviced loans
|
|
190
|
|
|
232
|
|
|
329
|
|
|
963
|
|
|
1,482
|
|
|||||
Interchange fees
|
|
247
|
|
|
239
|
|
|
168
|
|
|
932
|
|
|
537
|
|
|||||
Income from bank owned life insurance
|
|
157
|
|
|
159
|
|
|
91
|
|
|
628
|
|
|
245
|
|
|||||
Change in the fair value of equity securities
|
|
(306
|
)
|
|
36
|
|
|
—
|
|
|
(267
|
)
|
|
—
|
|
|||||
Other operating income
|
|
192
|
|
|
159
|
|
|
93
|
|
|
521
|
|
|
338
|
|
|||||
Total noninterest income
|
|
836
|
|
|
1,217
|
|
|
962
|
|
|
4,318
|
|
|
3,815
|
|
|||||
Income before noninterest expense
|
|
15,050
|
|
|
14,817
|
|
|
13,384
|
|
|
59,118
|
|
|
44,792
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
NONINTEREST EXPENSE
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
|
|
682
|
|
|
644
|
|
|
556
|
|
|
2,553
|
|
|
1,865
|
|
|||||
Salaries and employee benefits
|
|
6,280
|
|
|
6,646
|
|
|
5,486
|
|
|
25,469
|
|
|
18,681
|
|
|||||
Occupancy
|
|
326
|
|
|
337
|
|
|
324
|
|
|
1,378
|
|
|
1,150
|
|
|||||
Data processing
|
|
490
|
|
|
493
|
|
|
521
|
|
|
2,090
|
|
|
1,690
|
|
|||||
Marketing
|
|
84
|
|
|
71
|
|
|
151
|
|
|
237
|
|
|
422
|
|
|||||
Professional fees
|
|
287
|
|
|
281
|
|
|
224
|
|
|
1,051
|
|
|
950
|
|
|||||
Acquisition expenses
|
|
341
|
|
|
—
|
|
|
819
|
|
|
1,445
|
|
|
1,868
|
|
|||||
Other operating expenses
|
|
2,416
|
|
|
1,782
|
|
|
1,527
|
|
|
7,659
|
|
|
5,716
|
|
|||||
Total noninterest expense
|
|
10,906
|
|
|
10,254
|
|
|
9,608
|
|
|
41,882
|
|
|
32,342
|
|
|||||
Income before income tax expense
|
|
4,144
|
|
|
4,563
|
|
|
3,776
|
|
|
17,236
|
|
|
12,450
|
|
|||||
Income tax expense
|
|
807
|
|
|
516
|
|
|
1,492
|
|
|
3,630
|
|
|
4,248
|
|
|||||
Net income
|
|
$
|
3,337
|
|
|
$
|
4,047
|
|
|
$
|
2,284
|
|
|
$
|
13,606
|
|
|
$
|
8,202
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
EARNINGS PER SHARE
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic earnings per common share
|
|
$
|
0.35
|
|
|
$
|
0.42
|
|
|
$
|
0.25
|
|
|
$
|
1.41
|
|
|
$
|
0.96
|
|
Diluted earnings per common share
|
|
$
|
0.34
|
|
|
$
|
0.41
|
|
|
$
|
0.25
|
|
|
$
|
1.39
|
|
|
$
|
0.96
|
|
Cash dividends declared per common share
|
|
$
|
0.05
|
|
|
$
|
0.05
|
|
|
$
|
0.03
|
|
|
$
|
0.17
|
|
|
$
|
0.10
|
|
INVESTAR HOLDING CORPORATION
|
|||||||||||||||||||||||||||||||||
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
|
|||||||||||||||||||||||||||||||||
(Amounts in thousands)
|
|||||||||||||||||||||||||||||||||
(Unaudited)
|
|||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
For the three months ended
|
|||||||||||||||||||||||||||||||
|
|
December 31, 2018
|
|
September 30, 2018
|
|
December 31, 2017
|
|||||||||||||||||||||||||||
|
|
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
|
|
$
|
1,381,580
|
|
|
$
|
17,996
|
|
|
5.17
|
%
|
|
$
|
1,311,158
|
|
|
$
|
16,905
|
|
|
5.12
|
%
|
|
$
|
1,169,686
|
|
|
$
|
14,407
|
|
|
4.89
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Taxable
|
|
230,170
|
|
|
1,592
|
|
|
2.74
|
|
|
230,299
|
|
|
1,506
|
|
|
2.60
|
|
|
203,011
|
|
|
1,221
|
|
|
2.39
|
|
||||||
Tax-exempt
|
|
33,913
|
|
|
203
|
|
|
2.37
|
|
|
34,108
|
|
|
204
|
|
|
2.37
|
|
|
35,060
|
|
|
207
|
|
|
2.34
|
|
||||||
Interest-bearing balances with banks
|
|
18,153
|
|
|
136
|
|
|
2.97
|
|
|
28,146
|
|
|
162
|
|
|
2.29
|
|
|
26,407
|
|
|
132
|
|
|
1.98
|
|
||||||
Total interest-earning assets
|
|
1,663,816
|
|
|
19,927
|
|
|
4.75
|
|
|
1,603,711
|
|
|
18,777
|
|
|
4.65
|
|
|
1,434,164
|
|
|
15,967
|
|
|
4.42
|
|
||||||
Cash and due from banks
|
|
18,252
|
|
|
|
|
|
|
16,938
|
|
|
|
|
|
|
22,520
|
|
|
|
|
|
||||||||||||
Intangible assets
|
|
19,835
|
|
|
|
|
|
|
19,926
|
|
|
|
|
|
|
15,655
|
|
|
|
|
|
||||||||||||
Other assets
|
|
73,415
|
|
|
|
|
|
|
73,722
|
|
|
|
|
|
|
70,254
|
|
|
|
|
|
||||||||||||
Allowance for loan losses
|
|
(9,224
|
)
|
|
|
|
|
|
(8,564
|
)
|
|
|
|
|
|
(7,676
|
)
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
1,766,094
|
|
|
|
|
|
|
$
|
1,705,733
|
|
|
|
|
|
|
$
|
1,534,917
|
|
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Interest-bearing demand deposits
|
|
$
|
448,110
|
|
|
$
|
1,162
|
|
|
1.03
|
|
|
$
|
394,545
|
|
|
$
|
823
|
|
|
0.83
|
|
|
$
|
348,573
|
|
|
$
|
608
|
|
|
0.69
|
|
Savings deposits
|
|
106,492
|
|
|
151
|
|
|
0.56
|
|
|
117,795
|
|
|
140
|
|
|
0.47
|
|
|
105,896
|
|
|
138
|
|
|
0.52
|
|
||||||
Time deposits
|
|
562,132
|
|
|
2,408
|
|
|
1.70
|
|
|
532,986
|
|
|
2,031
|
|
|
1.51
|
|
|
503,378
|
|
|
1,487
|
|
|
1.17
|
|
||||||
Total interest-bearing deposits
|
|
1,116,734
|
|
|
3,721
|
|
|
1.32
|
|
|
1,045,326
|
|
|
2,994
|
|
|
1.14
|
|
|
957,847
|
|
|
2,233
|
|
|
0.92
|
|
||||||
Short-term borrowings
|
|
138,443
|
|
|
699
|
|
|
2.00
|
|
|
157,595
|
|
|
727
|
|
|
1.83
|
|
|
135,126
|
|
|
430
|
|
|
1.26
|
|
||||||
Long-term debt
|
|
95,566
|
|
|
700
|
|
|
2.91
|
|
|
98,327
|
|
|
671
|
|
|
2.71
|
|
|
78,911
|
|
|
487
|
|
|
2.45
|
|
||||||
Total interest-bearing liabilities
|
|
1,350,743
|
|
|
5,120
|
|
|
1.50
|
|
|
1,301,248
|
|
|
4,392
|
|
|
1.34
|
|
|
1,171,884
|
|
|
3,150
|
|
|
1.07
|
|
||||||
Noninterest-bearing deposits
|
|
225,411
|
|
|
|
|
|
|
215,587
|
|
|
|
|
|
|
189,935
|
|
|
|
|
|
||||||||||||
Other liabilities
|
|
9,258
|
|
|
|
|
|
|
10,163
|
|
|
|
|
|
|
12,613
|
|
|
|
|
|
||||||||||||
Stockholders’ equity
|
|
180,682
|
|
|
|
|
|
|
178,735
|
|
|
|
|
|
|
160,485
|
|
|
|
|
|
||||||||||||
Total liability and stockholders’ equity
|
|
$
|
1,766,094
|
|
|
|
|
|
|
$
|
1,705,733
|
|
|
|
|
|
|
$
|
1,534,917
|
|
|
|
|
|
|||||||||
Net interest income/net interest margin
|
|
|
|
$
|
14,807
|
|
|
3.53
|
%
|
|
|
|
$
|
14,385
|
|
|
3.56
|
%
|
|
|
|
$
|
12,817
|
|
|
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, 2018
|
|
December 31, 2017
|
||||||||||||||||||
|
|
Average
Balance |
|
Interest
Income/ Expense |
|
Yield/ Rate
|
|
Average
Balance |
|
Interest
Income/ Expense |
|
Yield/ Rate
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Loans
|
|
$
|
1,306,264
|
|
|
$
|
66,750
|
|
|
5.11
|
%
|
|
$
|
1,013,502
|
|
|
$
|
47,863
|
|
|
4.72
|
%
|
Securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Taxable
|
|
222,948
|
|
|
5,793
|
|
|
2.60
|
|
|
180,769
|
|
|
4,265
|
|
|
2.36
|
|
||||
Tax-exempt
|
|
34,159
|
|
|
815
|
|
|
2.39
|
|
|
32,427
|
|
|
790
|
|
|
2.44
|
|
||||
Interest-bearing balances with banks
|
|
24,126
|
|
|
533
|
|
|
2.21
|
|
|
28,524
|
|
|
428
|
|
|
1.50
|
|
||||
Total interest-earning assets
|
|
1,587,497
|
|
|
73,891
|
|
|
4.65
|
|
|
1,255,222
|
|
|
53,346
|
|
|
4.25
|
|
||||
Cash and due from banks
|
|
17,219
|
|
|
|
|
|
|
15,534
|
|
|
|
|
|
||||||||
Intangible assets
|
|
19,927
|
|
|
|
|
|
|
8,892
|
|
|
|
|
|
||||||||
Other assets
|
|
73,472
|
|
|
|
|
|
|
61,387
|
|
|
|
|
|
||||||||
Allowance for loan losses
|
|
(8,491
|
)
|
|
|
|
|
|
(7,368
|
)
|
|
|
|
|
||||||||
Total assets
|
|
$
|
1,689,624
|
|
|
|
|
|
|
$
|
1,333,667
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Liabilities and stockholders’ equity
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Deposits:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest-bearing demand
|
|
$
|
394,336
|
|
|
$
|
3,206
|
|
|
0.81
|
|
|
$
|
317,755
|
|
|
$
|
2,223
|
|
|
0.70
|
|
Savings deposits
|
|
116,544
|
|
|
567
|
|
|
0.49
|
|
|
78,444
|
|
|
446
|
|
|
0.57
|
|
||||
Time deposits
|
|
530,881
|
|
|
7,621
|
|
|
1.44
|
|
|
456,690
|
|
|
5,381
|
|
|
1.18
|
|
||||
Total interest-bearing deposits
|
|
1,041,761
|
|
|
11,394
|
|
|
1.09
|
|
|
852,889
|
|
|
8,050
|
|
|
0.94
|
|
||||
Short-term borrowings
|
|
145,090
|
|
|
2,511
|
|
|
1.73
|
|
|
129,109
|
|
|
1,430
|
|
|
1.11
|
|
||||
Long-term debt
|
|
95,692
|
|
|
2,616
|
|
|
2.73
|
|
|
47,922
|
|
|
1,349
|
|
|
2.81
|
|
||||
Total interest-bearing liabilities
|
|
1,282,543
|
|
|
16,521
|
|
|
1.29
|
|
|
1,029,920
|
|
|
10,829
|
|
|
1.05
|
|
||||
Noninterest-bearing deposits
|
|
220,068
|
|
|
|
|
|
|
147,856
|
|
|
|
|
|
||||||||
Other liabilities
|
|
9,817
|
|
|
|
|
|
|
10,782
|
|
|
|
|
|
||||||||
Stockholders’ equity
|
|
177,196
|
|
|
|
|
|
|
145,109
|
|
|
|
|
|
||||||||
Total liability and stockholders’ equity
|
|
$
|
1,689,624
|
|
|
|
|
|
|
$
|
1,333,667
|
|
|
|
|
|
||||||
Net interest income/net interest margin
|
|
|
|
$
|
57,370
|
|
|
3.61
|
%
|
|
|
|
$
|
42,517
|
|
|
3.39
|
%
|
INVESTAR HOLDING CORPORATION
|
||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
||||||||||||
(Amounts in thousands, except share data)
|
||||||||||||
(Unaudited)
|
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
December 31, 2018
|
|
September 30, 2018
|
|
December 31, 2017
|
||||||
Tangible common equity
|
|
|
|
|
|
|
||||||
Total stockholders’ equity
|
|
$
|
182,262
|
|
|
$
|
178,407
|
|
|
$
|
172,729
|
|
Adjustments:
|
|
|
|
|
|
|
||||||
Goodwill
|
|
17,424
|
|
|
17,424
|
|
|
17,086
|
|
|||
Core deposit intangible
|
|
2,263
|
|
|
2,378
|
|
|
2,740
|
|
|||
Trademark intangible
|
|
100
|
|
|
100
|
|
|
100
|
|
|||
Tangible common equity
|
|
$
|
162,475
|
|
|
$
|
158,505
|
|
|
$
|
152,803
|
|
Tangible assets
|
|
|
|
|
|
|
||||||
Total assets
|
|
$
|
1,786,469
|
|
|
$
|
1,735,315
|
|
|
$
|
1,622,734
|
|
Adjustments:
|
|
|
|
|
|
|
||||||
Goodwill
|
|
17,424
|
|
|
17,424
|
|
|
17,086
|
|
|||
Core deposit intangible
|
|
2,263
|
|
|
2,378
|
|
|
2,740
|
|
|||
Trademark intangible
|
|
100
|
|
|
100
|
|
|
100
|
|
|||
Tangible assets
|
|
$
|
1,766,682
|
|
|
$
|
1,715,413
|
|
|
$
|
1,602,808
|
|
|
|
|
|
|
|
|
||||||
Common shares outstanding
|
|
9,484,219
|
|
|
9,545,701
|
|
|
9,514,926
|
|
|||
Tangible equity to tangible assets
|
|
9.20
|
%
|
|
9.24
|
%
|
|
9.53
|
%
|
|||
Book value per common share
|
|
$
|
19.22
|
|
|
$
|
18.69
|
|
|
$
|
18.15
|
|
Tangible book value per common share
|
|
17.13
|
|
|
16.60
|
|
|
16.06
|
|
INVESTAR HOLDING CORPORATION
|
||||||||||||
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
|
||||||||||||
(Amounts in thousands, except share data)
|
||||||||||||
(Unaudited)
|
||||||||||||
|
|
|
|
|
|
|
||||||
|
|
Three months ended
|
||||||||||
|
|
12/31/2018
|
|
9/30/2018
|
|
12/31/2017
|
||||||
Net interest income
|
(a)
|
$
|
14,807
|
|
|
$
|
14,385
|
|
|
$
|
12,817
|
|
Provision for loan losses
|
|
593
|
|
|
785
|
|
|
395
|
|
|||
Net interest income after provision for loan losses
|
|
14,214
|
|
|
13,600
|
|
|
12,422
|
|
|||
|
|
|
|
|
|
|
||||||
Noninterest income
|
(b)
|
836
|
|
|
1,217
|
|
|
962
|
|
|||
Loss (gain) on sale of investment securities, net
|
|
23
|
|
|
(15
|
)
|
|
(50
|
)
|
|||
Loss on sale of other real estate owned, net
|
|
20
|
|
|
—
|
|
|
5
|
|
|||
(Gain) loss on sale of fixed assets, net
|
|
—
|
|
|
(9
|
)
|
|
57
|
|
|||
Change in the fair value of equity securities
|
|
306
|
|
|
(36
|
)
|
|
—
|
|
|||
Core noninterest income
|
(d)
|
1,185
|
|
|
1,157
|
|
|
974
|
|
|||
|
|
|
|
|
|
|
||||||
Core earnings before noninterest expense
|
|
15,399
|
|
|
14,757
|
|
|
13,396
|
|
|||
|
|
|
|
|
|
|
||||||
Total noninterest expense
|
(c)
|
10,906
|
|
|
10,254
|
|
|
9,608
|
|
|||
Acquisition expense
|
|
(341
|
)
|
|
—
|
|
|
(819
|
)
|
|||
Severance
|
|
—
|
|
|
(293
|
)
|
|
—
|
|
|||
Write down of other real estate owned
|
|
(567
|
)
|
|
—
|
|
|
—
|
|
|||
Core noninterest expense
|
(f)
|
9,998
|
|
|
9,961
|
|
|
8,789
|
|
|||
|
|
|
|
|
|
|
||||||
Core earnings before income tax expense
|
|
5,401
|
|
|
4,796
|
|
|
4,607
|
|
|||
Core income tax expense
(1)
|
|
1,053
|
|
|
825
|
|
|
1,462
|
|
|||
Core earnings
|
|
$
|
4,348
|
|
|
$
|
3,971
|
|
|
$
|
3,145
|
|
|
|
|
|
|
|
|
||||||
Core basic earnings per common share
|
|
0.46
|
|
|
0.42
|
|
|
0.35
|
|
|||
|
|
|
|
|
|
|
||||||
Diluted earnings per common share (GAAP)
|
|
$
|
0.34
|
|
|
$
|
0.41
|
|
|
$
|
0.25
|
|
Loss (gain) on sale of investment securities, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Loss on sale of other real estate owned, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
(Gain) loss on sale of fixed assets, net
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Change in the fair value of equity securities
|
|
0.03
|
|
|
—
|
|
|
|
||||
Acquisition expense
|
|
0.03
|
|
|
—
|
|
|
0.06
|
|
|||
Write down of other real estate owned
|
|
0.05
|
|
|
—
|
|
|
—
|
|
|||
Severance
|
|
—
|
|
|
0.03
|
|
|
—
|
|
|||
Discrete tax benefit related to return-to-provision adjustments
|
|
—
|
|
|
(0.03
|
)
|
|
—
|
|
|||
One-time charge to income tax expense
|
|
—
|
|
|
—
|
|
|
0.03
|
|
|||
Core diluted earnings per common share
|
|
$
|
0.45
|
|
|
$
|
0.41
|
|
|
$
|
0.34
|
|
|
|
|
|
|
|
|
||||||
Efficiency ratio
|
(c) / (a+b)
|
69.72
|
%
|
|
65.72
|
%
|
|
69.73
|
%
|
|||
Core efficiency ratio
|
(f) / (a+d)
|
62.52
|
%
|
|
64.09
|
%
|
|
63.73
|
%
|
|||
Core return on average assets
(2)
|
|
0.98
|
%
|
|
0.92
|
%
|
|
0.81
|
%
|
|||
Core return on average equity
(2)
|
|
9.55
|
%
|
|
8.81
|
%
|
|
7.77
|
%
|
|||
Total average assets
|
|
$
|
1,766,094
|
|
|
$
|
1,705,733
|
|
|
$
|
1,534,917
|
|
Total average stockholders’ equity
|
|
180,682
|
|
|
178,735
|
|
|
160,485
|
|
|||
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
(1)
Core income tax expense is calculated using the effective tax rate of 19.5% for the quarter ended December 31, 2018, and effective rate of 17.2%, prior to the discrete tax benefit of $0.3 million related to return-to-provision adjustments for the quarter ended September 30, 2018, and an effective tax rate of 31.7% prior to the one-time charge of $0.3 million to tax expense as a result of the Tax Cuts and Jobs Act for the quarter ended December 31, 2017.
|
||||||||||||
(2)
Core earnings used in calculation. No adjustments were made to average assets or average equity.
|