false 0001602658 0001602658 2024-04-22 2024-04-22
 

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

 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported): April 22, 2024
 

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

 
Louisiana
001-36522
27-1560715
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
 
10500 Coursey Blvd.
Baton Rouge, Louisiana 70816
(Address of principal executive offices) (Zip Code)
 
Registrants telephone number, including area code: (225) 227-2222
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, $1.00 par value per share
ISTR
The Nasdaq Global Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 

 
 

 
Item 2.02
Results of Operations and Financial Condition.
 
On April 22, 2024, Investar Holding Corporation (the “Company”), the holding company of Investar Bank, National Association (the “Bank”), issued a press release reporting first quarter 2024 results and posted on its website its first quarter 2024 earnings release and investor presentation. The materials contain forward-looking statements regarding the Company and include a cautionary note identifying important factors that could cause actual results to differ materially from those anticipated. Copies of the earnings release and investor presentation are furnished as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K.
 
The information contained in Item 2.02, including Exhibit 99.1 and Exhibit 99.2 of this Current Report, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01
Financial Statements and Exhibits.
 
(d) Exhibits
 
Exhibit Number
 
Description of Exhibit
99.1
 
99.2   Investor presentation dated April 22, 2024
104
 
The cover page of Investar Holding Corporation’s Form 8-K is formatted in Inline XBRL
 
 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
INVESTAR HOLDING CORPORATION
     
Date: April 22, 2024
By:
/s/ John J. D’Angelo
   
John J. D’Angelo
   
President and Chief Executive Officer
 
 

Exhibit 99.1

 

For Immediate Release

 

Investar Holding Corporation Announces 2024 First Quarter Results 

 

BATON ROUGE, LA / ACCESSWIRE / April 22, 2024 / Investar Holding Corporation (“Investar”) (NASDAQ:ISTR), the holding company for Investar Bank, National Association (the “Bank”), today announced financial results for the quarter ended March 31, 2024. Investar reported net income of $4.7 million, or $0.48 per diluted common share, for the first quarter of 2024, compared to net income of $3.5 million, or $0.36 per diluted common share, for the quarter ended December 31, 2023, and net income of $3.8 million, or $0.38 per diluted common share, for the quarter ended March 31, 2023.

 

On a non-GAAP basis, core earnings per diluted common share for the first quarter of 2024 were $0.43 compared to $0.39 for the fourth quarter of 2023, and $0.51 for the first quarter of 2023. Core earnings exclude certain items including, but not limited to, loss on call or sale of investment securities, net, (gain) loss on sale or disposition of fixed assets, net, loss on sale of other real estate owned, net, change in the fair value of equity securities, write down of other real estate owned, gain on early extinguishment of subordinated debt, and divestiture expense (refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics).

 

Investar’s President and Chief Executive Officer John D’Angelo commented: 

 

Investar had a solid first quarter, and I am pleased with our results. Despite the potential of a higher-for-longer interest rate environment, we are focused on proactively managing through this uncertainty while remaining strategically positioned to benefit from a decrease in rates. During the first quarter, we continued to execute on our strategy of consistent, quality earnings through the optimization of our balance sheet and prudent expense management, and we are beginning to realize the benefits as evidenced by our results. Primarily through the right-sizing of our balance sheet, we recognized the benefit of a $1.4 million negative provision. Our GAAP and core metrics for diluted earnings per share and return on average assets improved from the prior quarter. 

 

Our goal is to build a fortress balance sheet that is less interest rate sensitive and responsibly build capital levels through organic earnings growth and a disciplined pace of share repurchases. Each quarter, we continue to focus on the things we can control and make progress towards our goals. We continue to benefit from the origination of higher yielding loans and repricing of our variable-rate assets. During the first quarter we originated and renewed loans, 80% of which were variable-rate loans, at a 9.2% blended interest rate. Our net interest margin decreased from the prior quarter, but we are pleased with the expansion of our adjusted net interest margin when excluding interest income accretion and interest recoveries.

 

We continue to closely manage our interest-earning assets and short-term funding costs. We completed a partial restructuring of approximately $8.4 million of our bank owned life insurance with reinvestments in policies that yield more than double the yield of the surrendered policies with just over a one year earn-back period. We refinanced all of our borrowings under the Bank Term Funding Program at a lower rate prior to the expiration of the program. Additionally, we repurchased $1.0 million in principal amount of subordinated debt at a significant discount to par and recognized a gain of $0.2 million.

 

Our efforts to focus on underwriting high quality credits and allow higher risk credit relationships to run off are paying off. Credit quality remained very strong as nonperforming loans represented just 0.26% of total loans, and we experienced minimal charge-offs.

 

As always, we remain focused on shareholder value and returning capital to shareholders. We repurchased 10,525 shares of our common stock during the first quarter at an average price of $16.20 per share.”

 

First Quarter Highlights

 

 

Return on average assets increased to 0.68% for the quarter ended March 31, 2024 compared to 0.50% for the quarter ended December 31, 2023. Core return on average assets improved to 0.61% for the quarter ended March 31, 2024 compared to 0.54% for the quarter ended December 31, 2023.

 

 

Noninterest expense and core noninterest expense decreased $0.1 million to $15.3 million for the quarter ended March 31, 2024 compared to $15.4 million for the quarter ended December 31, 2023.

 

 

Credit quality remained strong as nonperforming loans were 0.26% of total loans at March 31, 2024 and December 31, 2023.

 

 

Consistent with our strategy of optimizing the balance sheet, total loans decreased $30.0 million, or 1.4%, to $2.18 billion at March 31, 2024, compared to $2.21 billion at December 31, 2023.

 

 

Variable-rate loans as a percentage of total loans improved to 28% at March 31, 2024 compared to 27% at December 31, 2023. During the first quarter we originated and renewed loans, 80% of which were variable-rate loans, at a 9.2% blended interest rate.

 

 

Investar recorded a negative provision for credit losses of $1.4 million for the quarter ended March 31, 2024, compared to a provision for credit losses of $0.5 million for the quarter ended December 31, 2023.

 

 

During the first quarter, Investar refinanced all of its borrowings under the Federal Reserve’s Bank Term Funding Program (“BTFP”). The weighted average rate was 4.76% at March 31, 2024 compared to 4.83% at December 31, 2023.

 

 

Investar completed the closure and sale of one branch location in Alabama during the first quarter of 2024 and recorded a $0.4 million gain on sale or disposition of fixed assets.

 

 

Investar repurchased $1.0 million in principal amount of our 5.125% Fixed-to-Floating Rate Subordinated Notes due 2032 (the “2032 Notes”) and recognized a gain on early extinguishment of subordinated debt of $0.2 million.

 

 

Investar surrendered approximately $8.4 million of bank owned life insurance (“BOLI”) and reinvested the proceeds in higher yielding policies. The restructuring has an expected earn-back period of just over one year.

 

 

Investar repurchased 10,525 shares of its common stock through its stock repurchase program at an average price of $16.20 during the quarter ended March 31, 2024, leaving 503,741 shares authorized for repurchase under the program at March 31, 2024.

 

 

 

Loans

 

Total loans were $2.18 billion at March 31, 2024a decrease of $30.0 million, or 1.4%, compared to December 31, 2023, and an increase of $71.5 million, or 3.4%, compared to March 31, 2023.

 

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

   

3/31/2024

 

12/31/2023

 

3/31/2023

 

$

 

%

 

$

 

%

 

3/31/2024

 

3/31/2023

Mortgage loans on real estate

                                                                       

Construction and development

  $ 173,511     $ 190,371     $ 210,274     $ (16,860 )     (8.9 )%   $ (36,763 )     (17.5 )%     8.0 %     10.0 %

1-4 Family

    414,480       413,786       401,329       694       0.2       13,151       3.3       19.0       19.0  

Multifamily

    105,124       105,946       80,980       (822 )     (0.8 )     24,144       29.8       4.8       3.8  

Farmland

    7,539       7,651       10,731       (112 )     (1.5 )     (3,192 )     (29.7 )     0.4       0.5  

Commercial real estate

                                                                       

Owner-occupied

    453,414       449,610       433,585       3,804       0.8       19,829       4.6       20.8       20.6  

Nonowner-occupied

    495,844       488,098       533,572       7,746       1.6       (37,728 )     (7.1 )     22.7       25.3  

Commercial and industrial

    518,969       543,421       425,093       (24,452 )     (4.5 )     93,876       22.1       23.8       20.2  

Consumer

    11,697       11,736       13,480       (39 )     (0.3 )     (1,783 )     (13.2 )     0.5       0.6  

Total loans

  $ 2,180,578     $ 2,210,619     $ 2,109,044     $ (30,041 )     (1.4 )%   $ 71,534       3.4 %     100 %     100 %

 

At March 31, 2024, the Bank’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $972.4 million, a decrease of $20.6 million, or 2.1%, compared to the business lending portfolio of $993.0 million at December 31, 2023, and an increase of $113.7 million, or 13.2%, compared to the business lending portfolio of $858.7 million at March 31, 2023. The decrease in the business lending portfolio compared to December 31, 2023 is primarily driven by lower loan demand and loan amortization. The increase in the business lending portfolio compared to March 31, 2023 is primarily driven by our purchase of commercial and industrial revolving lines of credit in the second half of 2023, partially offset by lower loan demand due to higher rates.

 

Nonowner-occupied loans totaled $495.8 million at March 31, 2024an increase of $7.7 million, or 1.6%, compared to $488.1 million at December 31, 2023, and a decrease of $37.7 million, or 7.1%, compared to $533.6 million at March 31, 2023. The increase in nonowner-occupied loans compared to December 31, 2023 is primarily due to conversions from construction and development upon completion of construction. The decrease in nonowner-occupied loans compared to March 31, 2023 is primarily due to a reclassification of approximately $24.1 million nonowner-occupied loans to multifamily loans due to a change in the primary use of the property and loan amortization. 

 

Construction and development loans totaled $173.5 million at March 31, 2024, a decrease of $16.9 million, or 8.9%, compared to $190.4 million at December 31, 2023, and a decrease of $36.8 million, or 17.5%, compared to $210.3 million at March 31, 2023. The decrease in construction and development loans compared to December 31, 2023 and March 31, 2023 is primarily due to conversions to permanent loans upon completion of construction.

 

Credit Quality

 

Nonperforming loans were $5.6 million, or 0.26% of total loans, at March 31, 2024a decrease of $0.2 million compared to $5.8 million, or 0.26% of total loans, at December 31, 2023, and a decrease of $0.1 million compared to $5.7 million, or 0.27% of total loans, at March 31, 2023. The decrease in nonperforming loans compared to December 31, 2023 is mainly attributable to paydowns

 

The allowance for credit losses was $29.1 million, or 515.4% and 1.34% of nonperforming and total loans, respectively, at March 31, 2024, compared to $30.5 million, or 529.3% and 1.38% of nonperforming and total loans, respectively, at December 31, 2023, and $30.5 million, or 535.6% and 1.45% of nonperforming and total loans, respectively, at March 31, 2023

 

Investar recorded a negative provision for credit losses of $1.4 million for the quarter ended March 31, 2024 compared to a provision for credit losses of $0.5 million and $0.4 million for the quarters ended December 31, 2023 and March 31, 2023, respectively. The negative provision for credit losses in the quarter ended March 31, 2024 was primarily due to a decrease in total loans, aging of existing loans, and, to a lesser extent, the completion of our annual current expected credit loss allowance model recalibration. The provision for credit losses in the quarter ended December 31, 2023 was primarily attributable to loan growth resulting from the purchase of commercial and industrial revolving lines of credit, partially offset by an improvement in the economic forecastThe provision for credit losses for the quarter ended March 31, 2023 was due to organic loan growth.

 

 

 

Deposits

 

Total deposits at March 31, 2024 were $2.21 billion, a decrease of $47.9 million, or 2.1%, compared to $2.26 billion at December 31, 2023, and an increase of $62.2 million, or 2.9%, compared to $2.15 billion at March 31, 2023

 

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

   

3/31/2024

 

12/31/2023

 

3/31/2023

 

$

 

%

 

$

 

%

 

3/31/2024

 

3/31/2023

Noninterest-bearing demand deposits

  $ 435,397     $ 448,752     $ 508,241     $ (13,355 )     (3.0 )%   $ (72,844 )     (14.3 )%     19.7 %     23.7 %

Interest-bearing demand deposits

    502,818       489,604       538,515       13,214       2.7       (35,697 )     (6.6 )     22.8       25.1  

Money market deposits

    171,113       179,366       180,402       (8,253 )     (4.6 )     (9,289 )     (5.1 )     7.7       8.4  

Savings deposits

    132,449       137,606       137,336       (5,157 )     (3.7 )     (4,887 )     (3.6 )     6.0       6.4  

Brokered time deposits

    237,850       269,102       146,270       (31,252 )     (11.6 )     91,580       62.6       10.8       6.8  

Time deposits

    728,201       731,297       634,883       (3,096 )     (0.4 )     93,318       14.7       33.0       29.6  

Total deposits

  $ 2,207,828     $ 2,255,727     $ 2,145,647     $ (47,899 )     (2.1 )%   $ 62,181       2.9 %     100 %     100 %

 

The increase in interest-bearing demand deposits at March 31, 2024 compared to December 31, 2023 is primarily due to organic growth. The decrease in noninterest-bearing demand deposits, money market deposits, and savings deposits at March 31, 2024 compared to December 31, 2023 is primarily the result of customers drawing down on their existing deposit accounts. The decrease in time deposits at March 31, 2024 compared to December 31, 2023 is primarily due to a reduced emphasis on attracting time deposits. Brokered time deposits decreased to $237.9 million at March 31, 2024 from $269.1 million at December 31, 2023 primarily due to scheduled maturities as part of our laddering strategy. Investar utilizes brokered time deposits, entirely in denominations of less than $250,000, to secure fixed cost funding and reduce short-term borrowings. At March 31, 2024, the balance of brokered time deposits remained below 10% of total assets, and the remaining weighted average duration is approximately 14 months with a weighted average rate of 5.18%. 


Time deposits and brokered time deposits increased, and other deposit categories decreased at March 31, 2024 compared to March 31, 2023 primarily due to shifts into interest-bearing deposit products as a result of rising interest rates. The majority of the increase in time deposits at March 31, 2024 compared to March 31, 2023 is due to organic growth and existing customer funds migrating from other deposit categories. We utilized shorter term brokered time deposits, which were laddered to provide flexibility, to fund a portion of the purchase of commercial and industrial revolving lines of credit in the second half of 2023.

 

Stockholders Equity 

 

Stockholders’ equity was $227.0 million at March 31, 2024an increase of $0.2 million compared to December 31, 2023, and an increase of $8.5 million compared to March 31, 2023The increase in stockholders’ equity compared to December 31, 2023 is primarily attributable to net income for the quarter, partially offset by an increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank’s available for sale securities portfolio. The increase in stockholders’ equity compared to March 31, 2023 is primarily attributable to net income for the last twelve months, partially offset by an increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank’s available for sale securities portfolio.

 

 

 

Net Interest Income

 

Net interest income for the first quarter of 2024 totaled $17.2 million, a decrease of $1.3 million, or 6.9%, compared to the fourth quarter of 2023, and a decrease of $3.0 million, or 14.7%, compared to the first quarter of 2023. Total interest income was $35.7 million, $36.7 million and $31.0 million for the quarters ended March 31, 2024December 31, 2023 and March 31, 2023, respectively. Total interest expense was $18.5 million, $18.2 million and $10.8 million for the corresponding periods. Included in net interest income for the quarters ended March 31, 2024, December 31, 2023 and March 31, 2023 is $19,000$25,000, and $0.1 million, respectively, of interest income accretion from the acquisition of loans. Also included in net interest income for each of the quarters ended March 31, 2024December 31, 2023 and March 31, 2023 are interest recoveries of $21,000$1.1 million, and $0.1 million, respectively.

 

Investar’s net interest margin was 2.59% for the quarter ended March 31, 2024, compared to 2.72% for the quarter ended December 31, 2023 and 3.13% for the quarter ended March 31, 2023. The decrease in net interest margin for the quarter ended March 31, 2024 compared to the quarter ended December 31, 2023 was driven by an 11 basis point increase in the overall cost of funds, and a two basis point decrease in the yield on interest-earning assets. The decrease in net interest margin for the quarter ended March 31, 2024 compared to the quarter ended March 31, 2023 was driven by a 128 basis point increase in the overall cost of funds, partially offset by a 58 basis point increase in the yield on interest-earning assets.

 

The yield on interest-earning assets was 5.38% for the quarter ended March 31, 2024, compared to 5.40% for the quarter ended December 31, 2023 and 4.80% for the quarter ended March 31, 2023. The decrease in the yield on interest-earning assets compared to the quarter ended December 31, 2023 was primarily attributable to a four basis point decrease in the yield on the loan portfolio, partially offset by a one basis point increase in the yield on the taxable securities portfolio. The increase in the yield on interest-earning assets compared to the quarter ended March 31, 2023 was primarily driven by a 62 basis point increase in the yield on the loan portfolio.

 

Exclusive of the interest income accretion from the acquisition of loans and interest recoveries, adjusted net interest margin was 2.59% for the quarter ended March 31, 2024, compared to 2.56% for the quarter ended December 31, 2023 and 3.10% for the quarter ended March 31, 2023. The adjusted yield on interest-earning assets was 5.38% for the quarter ended March 31, 2024 compared to 5.23% and 4.77% for the quarters ended December 31, 2023 and March 31, 2023, respectively. Refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics.

 

The cost of deposits increased 14 basis points to 3.31% for the quarter ended March 31, 2024 compared to 3.17% for the quarter ended December 31, 2023 and increased 169 basis points compared to 1.62% for the quarter ended March 31, 2023. The increase in the cost of deposits compared to the quarter ended December 31, 2023 resulted from an increase in rates paid on time deposits and brokered time deposits and both a higher average balance and an increase in rates paid on interest-bearing demand deposits. The increase in the cost of deposits compared to the quarter ended March 31, 2023 resulted from both a higher average balance and an increase in rates paid on time deposits and brokered time deposits, and an increase in rates paid on interest-bearing demand deposits and savings deposits, partially offset by a lower average balance of interest-bearing demand deposits. 

 

The cost of short-term borrowings decreased 18 basis points to 4.66% for the quarter ended March 31, 2024 compared to 4.84% for the quarter ended December 31, 2023 and decreased 14 basis points compared to 4.80% for the quarter ended March 31, 2023. Beginning in the second quarter of 2023, the Bank began utilizing the BTFP to secure fixed rate funding for up to a one-year term and reduce short-term Federal Home Loan Bank (“FHLB”) advances, which are priced daily. The Bank utilized this source of funding due to its lower rate as compared to FHLB advances, the ability to prepay the obligations without penalty, and as a means to lock in funding. The decrease in the cost of short-term borrowings compared to the quarters ended December 31, 2023 and March 31, 2023 resulted primarily from the refinancing of borrowings under the BTFP at lower rates.

 

The overall cost of funds for the quarter ended March 31, 2024 increased 11 basis points to 3.51% compared to 3.40% for the quarter ended December 31, 2023 and increased 128 basis points compared to 2.23% for the quarter ended March 31, 2023. The increase in the cost of funds for the quarter ended March 31, 2024 compared to the quarter ended December 31, 2023 resulted from an increase in the cost of deposits and a higher average balance of short-term borrowings, partially offset by a lower average balance of deposits and a decrease in the cost of short-term borrowings. The increase in the cost of funds for the quarter ended March 31, 2024 compared to the quarter ended March 31, 2023 resulted from both a higher average balance and an increase in the cost of deposits, partially offset by both a lower average balance and a decrease in the cost of short-term borrowings.

 

Noninterest Income

 

Noninterest income for the first quarter of 2024 totaled $2.7 million, an increase of $1.0 million, or 56.6%, compared to the fourth quarter of 2023 and an increase of $1.7 million, or 155.4%, compared to the first quarter of 2023.

 

The increase in noninterest income compared to the quarter ended December 31, 2023 is driven by a $0.5 million increase in gain on sale or disposition of fixed assets, a $0.3 million decrease in loss on call or sale of investment securities, a $0.1 million increase in the change in fair value of equity securities, and a $0.1 million increase in other operating income. The increase in gain of sale or disposition of fixed assets resulted from the closure of one branch in the Alabama market during the first quarter of 2024. The increase in other operating income is primarily attributable to a $0.1 million increase in derivative fee income. 

 

The increase in noninterest income compared to the quarter ended March 31, 2023 is primarily attributable to a $1.3 million increase in gain on sale or disposition of fixed assets, a $0.1 decrease in the loss on other real estate owned, $0.1 million increase in the change in fair value of equity securities, and a $0.2 million increase in other operating income. During the first quarter of 2024, there was a gain of sale or disposition of fixed assets of $0.4 million resulting from the closure of one branch in the Alabama market compared to a loss on sale or disposition of fixed assets of $0.9 million as a result of the sale of the Alice and Victoria, Texas branches in the first quarter of 2023. The increase in other operating income is primarily attributable to a $0.1 million increase in the change in the net asset value of other investments. 

 

 

 

Noninterest Expense

 

Noninterest expense for the first quarter of 2024 totaled $15.3 million, a decrease of $0.1 million, or 0.9%, compared to the fourth quarter of 2023, and a decrease of $0.9 million, or 5.4%, compared to the first quarter of 2023

 

The decrease in noninterest expense for the quarter ended March 31, 2024 compared to the quarter ended December 31, 2023 was primarily driven by a $0.2 million gain on early extinguishment of subordinated debt, a $0.1 million decrease in occupancy expense, and a $0.1 million decrease in depreciation and amortization, partially offset by a $0.2 million increase in salaries and employee benefits, and a $0.1 million increase in other operating expense. The gain on early extinguishment of subordinated debt is due to the repurchase of $1.0 million in principal amount of our 2032 Notes in the first quarter of 2024. The decrease in occupancy was primarily due to higher maintenance costs in the fourth quarter of 2023. The increase in other operating expense resulted from a $0.1 million increase in Federal Deposit Insurance Corporation (“FDIC”) assessments and a $0.2 million write down of other real estate owned related to a former branch location, partially offset by a $0.2 million decrease in bank shares tax.

 

The decrease in noninterest expense for the quarter ended March 31, 2024 compared to the quarter ended March 31, 2023 was primarily driven by $0.7 million in expenses as a result of the sale of the Alice and Victoria, Texas branch locations in the first quarter of 2023. As a result of the sale of the Alice and Victoria, Texas branches, we recorded $0.4 million of occupancy expense to terminate the remaining contractually obligated lease payments, $0.1 million of salaries and employee benefits for severance, $0.1 million of professional fees for legal and consulting services, and $0.1 million of depreciation and amortization to accelerate the amortization of the remaining core deposit intangible. The remaining decrease of $0.2 million is primarily due to a $0.2 million gain on early extinguishment of subordinated debt, a $0.1 million decrease in depreciation and amortization, and a $0.1 million decrease in professional fees unrelated to the sale of the Alice and Victoria, Texas branch locations, partially offset by a $0.3 million increase in other operating expenses. The increase in other operating expense resulted from a $0.2 million increase in FDIC assessments and a $0.2 million write down of other real estate owned related to a former branch location, partially offset by a $0.1 million decrease in collection and repossession expenses and a $0.1 million decrease in bank shares tax. 

 

Taxes

 

Investar recorded an income tax expense of $1.4 million for the quarter ended March 31, 2024, which equates to an effective tax rate of 22.7%, compared to effective tax rates of 18.1% and 18.7% for the quarters ended December 31, 2023 and March 31, 2023, respectively. Investar surrendered approximately $8.4 million of BOLI and reinvested the proceeds in higher yielding policies. Investar incurred a $0.3 million income tax expense as a result of the restructuring. The restructuring has an expected earn-back period of just over one year. Excluding the effect of the BOLI surrender, the effective tax rate for the quarter ended March 31, 2024 was approximately 18.0%.

 

Basic and Diluted Earnings Per Common Share

 

Investar reported basic and diluted earnings per common share of $0.48 for the quarter ended March 31, 2024, compared to basic and diluted earnings per common share of $0.36 for the quarter ended December 31, 2023, and basic and diluted earnings per common share of $0.38 for the quarter ended March 31, 2023.

 

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 28 branch locations serving Louisiana, Texas, and Alabama. At March 31, 2024, the Bank had 323 full-time equivalent employees and total assets of $2.8 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 earnings before income tax expense,” “core income tax expense,” “core earnings,” “core efficiency ratio,” “core return on average assets,” “core return on average equity,” “core basic earnings per share,” and “core diluted earnings per share.” We also present certain average loan, yield, net interest income and net interest margin data adjusted to show the effects of excluding interest recoveries and interest income accretion from the acquisition of loans. 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.

 

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 significant risks and uncertainties for our business, results of operations and financial condition, as well as our regulatory capital and liquidity ratios and other regulatory requirements caused by business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;

 

 

changes in inflation, interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;

 

 

our ability to continue to successfully execute the pivot of our near-term strategy from primarily a growth strategy to a strategy primarily focused on consistent, quality earnings through the optimization of our balance sheet, and our ability to successfully execute a long-term growth strategy;

 

 

our ability to achieve organic loan and deposit growth, and the composition of that growth;

 

 

a reduction in liquidity, including as a result of a reduction in the amount of deposits we hold or other sources of liquidity, which may be caused by, among other things, disruptions in the banking industry similar to those that occurred in early 2023 that caused bank depositors to move uninsured deposits to other banks or alternative investments outside the banking industry;

 

 

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 and grow acquired operations;

 

 

our adoption on January 1, 2023 of ASU 2016-13, and inaccuracy of the assumptions and estimates we make in establishing reserves for credit losses and other estimates;

 

 

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;

 

 

changes in the quality and composition of, and changes in unrealized losses in, our investment portfolio, including whether we may have to sell securities before their recovery of amortized cost basis and realize losses;

 

 

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;

 

 

the concentration of our business within our geographic areas of operation in Louisiana, Texas and Alabama;

 

 

increasing costs of complying with new and potential future regulations;

 

 

new or increasing geopolitical tensions, including resulting from wars in Ukraine and Israel and surrounding areas;

 

 

the emergence or worsening of widespread public health challenges or pandemics including COVID-19;

 

 

concentration of credit exposure;

 

 

any deterioration in asset quality and higher loan charge-offs, and the time and effort necessary to resolve problem assets;

 

 

fluctuations in the price of oil and natural gas;

 

 

data processing system failures and errors;

 

 

risks associated with our digital transformation process, including increased risks of cyberattacks and other security breaches and challenges associated with addressing the increased prevalence of artificial intelligence;

 

 

risks of losses resulting from increased fraud attacks against us and others in the financial services industry;

 

 

potential impairment of our goodwill and other intangible assets;

 

 

our potential growth, including our entrance or expansion into new markets, and the need for sufficient capital to support that growth;

 

 

the impact of litigation and other legal proceedings to which we become subject;

 

 

competitive pressures in the commercial finance, retail banking, mortgage lending and consumer finance industries, as well as the financial resources of, and products offered by, competitors;

 

 

the impact of changes in laws and regulations applicable to us, including banking, securities and tax laws and regulations and accounting standards, as well as changes in the interpretation of such laws and regulations by our regulators;

 

 

changes in the scope and costs of FDIC insurance and other coverages;

 

 

governmental monetary and fiscal policies; and

 

 

hurricanes, tropical storms, tropical depressions, floods, winter storms, droughts and other adverse weather events, all of which have affected Investar’s market areas from time to time; other natural disasters; oil spills and other man-made disasters; acts of terrorism; other international or domestic calamities; acts of God; and other matters beyond our control.

 

 

 

These factors should not be construed as exhaustive. Additional information on these and other risk factors can be found in Part I Item 1A. “Risk Factors” and in the “Special Note Regarding Forward-Looking Statements” in Part II 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, 2023 filed with the Securities and Exchange Commission.

 

For further information contact:

 

Investar Holding Corporation

John Campbell

Executive Vice President and Chief Financial Officer

(225) 227-2215

John.Campbell@investarbank.com

 

 

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

   

As of and for the three months ended

   

3/31/2024

 

12/31/2023

 

3/31/2023

 

Linked Quarter

 

Year/Year

EARNINGS DATA

                                       

Total interest income

  $ 35,722     $ 36,668     $ 30,977       (2.6 )%     15.3 %

Total interest expense

    18,506       18,177       10,804       1.8       71.3  

Net interest income

    17,216       18,491       20,173       (6.9 )     (14.7 )

Provision for credit losses

    (1,419 )     486       388       (392.0 )     (465.7 )

Total noninterest income

    2,748       1,755       1,076       56.6       155.4  

Total noninterest expense

    15,296       15,440       16,175       (0.9 )     (5.4 )

Income before income tax expense

    6,087       4,320       4,686       40.9       29.9  

Income tax expense

    1,380       782       874       76.5       57.9  

Net income

  $ 4,707     $ 3,538     $ 3,812       33.0       23.5  
                                         

AVERAGE BALANCE SHEET DATA

                                       

Total assets

  $ 2,802,192     $ 2,817,388     $ 2,735,823       (0.5 )%     2.4 %

Total interest-earning assets

    2,669,553       2,694,474       2,615,097       (0.9 )     2.1  

Total loans

    2,195,496       2,214,916       2,103,989       (0.9 )     4.3  

Total interest-bearing deposits

    1,805,569       1,824,318       1,557,665       (1.0 )     15.9  

Total interest-bearing liabilities

    2,118,746       2,119,724       1,961,302       (0.0 )     8.0  

Total deposits

    2,233,704       2,279,211       2,108,168       (2.0 )     6.0  

Total stockholders’ equity

    228,690       212,454       219,690       7.6       4.1  
                                         

PER SHARE DATA

                                       

Earnings:

                                       

Basic earnings per common share

  $ 0.48     $ 0.36     $ 0.38       33.3 %     26.3 %

Diluted earnings per common share

    0.48       0.36       0.38       33.3       26.3  

Core Earnings(1):

                                       

Core basic earnings per common share(1)

    0.44       0.39       0.52       12.8       (15.4 )

Core diluted earnings per common share(1)

    0.43       0.39       0.51       10.3       (15.7 )

Book value per common share

    23.21       23.26       22.06       (0.2 )     5.2  

Tangible book value per common share(1)

    18.90       18.92       17.74       (0.1 )     6.5  

Common shares outstanding

    9,781,946       9,748,067       9,900,648       0.3       (1.2 )

Weighted average common shares outstanding - basic

    9,769,626       9,754,617       9,908,931       0.2       (1.4 )

Weighted average common shares outstanding - diluted

    9,866,973       9,763,296       9,992,467       1.1       (1.3 )
                                         

PERFORMANCE RATIOS

                                       

Return on average assets

    0.68 %     0.50 %     0.57 %     36.0 %     19.3 %

Core return on average assets(1)

    0.61       0.54       0.76       13.0       (19.7 )

Return on average equity

    8.28       6.61       7.04       25.3       17.6  

Core return on average equity(1)

    7.52       7.16       9.46       5.0       (20.5 )

Net interest margin

    2.59       2.72       3.13       (4.8 )     (17.3 )

Net interest income to average assets

    2.47       2.60       2.99       (5.0 )     (17.4 )

Noninterest expense to average assets

    2.20       2.17       2.40       1.4       (8.3 )

Efficiency ratio(2)

    76.62       76.26       76.12       0.5       0.7  

Core efficiency ratio(1)

    78.81       74.85       69.89       5.3       12.8  

Dividend payout ratio

    20.83       27.78       25.00       (25.0 )     (16.7 )

Net charge-offs to average loans

                0.01             (100.0 )

 

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

(2) Efficiency ratio represents noninterest expense divided by the sum of net interest income (before provision for credit losses) and noninterest income.

 

 

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Unaudited)

 

   

As of and for the three months ended

   

3/31/2024

 

12/31/2023

 

3/31/2023

 

Linked Quarter

 

Year/Year

ASSET QUALITY RATIOS

                                       

Nonperforming assets to total assets

    0.36 %     0.36 %     0.23 %     %     56.5 %

Nonperforming loans to total loans

    0.26       0.26       0.27             (3.7 )

Allowance for credit losses to total loans

    1.34       1.38       1.45       (2.9 )     (7.6 )

Allowance for credit losses to nonperforming loans

    515.36       529.32       535.55       (2.6 )     (3.8 )
                                         

CAPITAL RATIOS

                                       

Investar Holding Corporation:

                                       

Total equity to total assets

    8.14 %     8.06 %     7.94 %     1.0 %     2.5 %

Tangible equity to tangible assets(1)

    6.73       6.65       6.48       1.2       3.9  

Tier 1 leverage capital

    8.60       8.35       8.30       3.0       3.6  

Common equity tier 1 capital(2)

    9.76       9.51       9.64       2.6       1.2  

Tier 1 capital(2)

    10.16       9.90       10.06       2.6       1.0  

Total capital(2)

    13.18       12.99       13.24       1.5       (0.5 )

Investar Bank:

                                       

Tier 1 leverage capital

    10.01       9.81       9.72       2.0       3.0  

Common equity tier 1 capital(2)

    11.83       11.64       11.78       1.6       0.4  

Tier 1 capital(2)

    11.83       11.64       11.78       1.6       0.4  

Total capital(2)

    13.04       12.89       13.03       1.2       0.1  

 

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

(2) Estimated for March 31, 2024.

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

(Unaudited)

 

   

March 31, 2024

 

December 31, 2023

 

March 31, 2023

ASSETS

                       

Cash and due from banks

  $ 18,083     $ 28,285     $ 30,571  

Interest-bearing balances due from other banks

    23,762       3,724       722  

Cash and cash equivalents

    41,845       32,009       31,293  
                         

Available for sale securities at fair value (amortized cost of $415,546, $419,283, and $462,332, respectively)

    353,340       361,918       406,107  

Held to maturity securities at amortized cost (estimated fair value of $18,148, $20,513, and $7,805, respectively)

    17,755       20,472       8,048  

Loans

    2,180,578       2,210,619       2,109,044  

Less: allowance for credit losses

    (29,114 )     (30,540 )     (30,521 )

Loans, net

    2,151,464       2,180,079       2,078,523  

Equity securities at fair value

    2,260       1,180       1,241  

Nonmarketable equity securities

    12,723       13,417       23,376  

Bank premises and equipment, net of accumulated depreciation of $20,038, $19,476, and $21,670, respectively

    42,659       44,183       47,698  

Other real estate owned, net

    4,247       4,438       662  

Accrued interest receivable

    15,047       14,366       12,947  

Deferred tax asset

    17,779       16,910       16,434  

Goodwill and other intangible assets, net

    42,154       42,320       42,864  

Bank owned life insurance

    60,745       58,797       57,715  

Other assets

    25,688       25,066       24,761  

Total assets

  $ 2,787,706     $ 2,815,155     $ 2,751,669  
                         

LIABILITIES

                       

Deposits

                       

Noninterest-bearing

  $ 435,397     $ 448,752     $ 508,241  

Interest-bearing

    1,772,431       1,806,975       1,637,406  

Total deposits

    2,207,828       2,255,727       2,145,647  

Advances from Federal Home Loan Bank

    23,500       23,500       300,116  

Borrowings under Bank Term Funding Program

    229,000       212,500        

Federal funds purchased

                440  

Repurchase agreements

    7,850       8,633        

Subordinated debt, net of unamortized issuance costs

    43,363       44,320       44,248  

Junior subordinated debt

    8,657       8,630       8,545  

Accrued taxes and other liabilities

    40,503       35,077       34,215  

Total liabilities

    2,560,701       2,588,387       2,533,211  
                         

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; 9,781,946, 9,748,067, and 9,900,648 shares issued and outstanding, respectively

    9,782       9,748       9,901  

Surplus

    145,739       145,456       146,027  

Retained earnings

    120,441       116,711       106,780  

Accumulated other comprehensive loss

    (48,957 )     (45,147 )     (44,250 )

Total stockholders’ equity

    227,005       226,768       218,458  

Total liabilities and stockholders’ equity

  $ 2,787,706     $ 2,815,155     $ 2,751,669  

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except share data)

(Unaudited)

 

   

For the three months ended

   

March 31, 2024

 

December 31, 2023

 

March 31, 2023

INTEREST INCOME

                       

Interest and fees on loans

  $ 32,135     $ 33,128     $ 27,359  

Interest on investment securities

                       

Taxable

    2,817       2,970       3,085  

Tax-exempt

    238       253       105  

Other interest income

    532       317       428  

Total interest income

    35,722       36,668       30,977  
                         

INTEREST EXPENSE

                       

Interest on deposits

    14,845       14,584       6,221  

Interest on borrowings

    3,661       3,593       4,583  

Total interest expense

    18,506       18,177       10,804  

Net interest income

    17,216       18,491       20,173  
                         

Provision for credit losses

    (1,419 )     486       388  

Net interest income after provision for credit losses

    18,635       18,005       19,785  
                         

NONINTEREST INCOME

                       

Service charges on deposit accounts

    810       798       740  

Loss on call or sale of investment securities, net

          (322 )     (1 )

Gain (loss) on sale or disposition of fixed assets, net

    427       (39 )     (859 )

Loss on sale of other real estate owned, net

                (142 )

Gain on sale of loans

                75  

Servicing fees and fee income on serviced loans

          2       6  

Interchange fees

    395       417       438  

Income from bank owned life insurance

    388       371       336  

Change in the fair value of equity securities

    80       24       (4 )

Other operating income

    648       504       487  

Total noninterest income

    2,748       1,755       1,076  

Income before noninterest expense

    21,383       19,760       20,861  
                         

NONINTEREST EXPENSE

                       

Depreciation and amortization

    812       909       1,052  

Salaries and employee benefits

    9,248       9,003       9,334  

Occupancy

    581       706       1,024  

Data processing

    937       892       875  

Marketing

    41       68       69  

Professional fees

    419       461       633  

Gain on early extinguishment of subordinated debt

    (215 )            

Other operating expenses

    3,473       3,401       3,188  

Total noninterest expense

    15,296       15,440       16,175  

Income before income tax expense

    6,087       4,320       4,686  

Income tax expense

    1,380       782       874  

Net income

  $ 4,707     $ 3,538     $ 3,812  
                         

EARNINGS PER SHARE

                       

Basic earnings per common share

  $ 0.48     $ 0.36     $ 0.38  

Diluted earnings per common share

    0.48       0.36       0.38  

Cash dividends declared per common share

    0.10       0.10       0.095  

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

   

For the three months ended

   

March 31, 2024

 

December 31, 2023

 

March 31, 2023

           

Interest

                 

Interest

                 

Interest

       
   

Average

 

Income/

         

Average

 

Income/

         

Average

 

Income/

       
   

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

Assets

                                                                       

Interest-earning assets:

                                                                       

Loans

  $ 2,195,496     $ 32,135       5.89 %   $ 2,214,916     $ 33,128       5.93 %   $ 2,103,989     $ 27,359       5.27 %

Securities:

                                                                       

Taxable

    410,761       2,817       2.76       427,746       2,970       2.75       459,099       3,085       2.73  

Tax-exempt

    26,963       238       3.55       28,807       253       3.50       16,496       105       2.58  

Interest-bearing balances with banks

    36,333       532       5.89       23,005       317       5.46       35,513       428       4.89  

Total interest-earning assets

    2,669,553       35,722       5.38       2,694,474       36,668       5.40       2,615,097       30,977       4.80  

Cash and due from banks

    26,246                       27,214                       31,356                  

Intangible assets

    42,243                       42,414                       43,000                  

Other assets

    94,311                       83,447                       76,695                  

Allowance for credit losses

    (30,161 )                     (30,161 )                     (30,325 )                

Total assets

  $ 2,802,192                     $ 2,817,388                     $ 2,735,823                  
                                                                         

Liabilities and stockholders’ equity

                                                                       

Interest-bearing liabilities:

                                                                       

Deposits:

                                                                       

Interest-bearing demand deposits

  $ 680,548     $ 3,166       1.87 %   $ 668,277     $ 2,873       1.71 %   $ 736,083     $ 1,594       0.88 %

Savings deposits

    134,853       339       1.01       136,045       318       0.93       146,093       16       0.04  

Brokered time deposits

    255,694       3,314       5.21       275,552       3,590       5.17       67,088       773       4.68  

Time deposits

    734,474       8,026       4.39       744,444       7,803       4.16       608,401       3,838       2.56  

Total interest-bearing deposits

    1,805,569       14,845       3.31       1,824,318       14,584       3.17       1,557,665       6,221       1.62  

Short-term borrowings

    236,826       2,745       4.66       218,977       2,672       4.84       301,033       3,562       4.80  

Long-term debt

    76,351       916       4.83       76,429       921       4.78       102,604       1,021       4.04  

Total interest-bearing liabilities

    2,118,746       18,506       3.51       2,119,724       18,177       3.40       1,961,302       10,804       2.23  

Noninterest-bearing deposits

    428,135                       454,893                       550,503                  

Other liabilities

    26,621                       30,317                       4,328                  

Stockholders’ equity

    228,690                       212,454                       219,690                  

Total liability and stockholders’ equity

  $ 2,802,192                     $ 2,817,388                     $ 2,735,823                  

Net interest income/net interest margin

          $ 17,216       2.59 %           $ 18,491       2.72 %           $ 20,173       3.13 %

 

 

 

INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INTEREST EARNED AND YIELD ANALYSIS ADJUSTED FOR INTEREST RECOVERIES AND ACCRETION
(Amounts in thousands)
(Unaudited)

 

   

For the three months ended

   

March 31, 2024

 

December 31, 2023

 

March 31, 2023

           

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

  $ 2,195,496     $ 32,135       5.89 %   $ 2,214,916     $ 33,128       5.93 %   $ 2,103,989     $ 27,359       5.27 %

Adjustments:

                                                                       

Interest recoveries

            21                       1,105                       141          

Accretion

            19                       25                       55          

Adjusted loans

    2,195,496       32,095       5.88       2,214,916       31,998       5.73       2,103,989       27,163       5.24  

Securities:

                                                                       

Taxable

    410,761       2,817       2.76       427,746       2,970       2.75       459,099       3,085       2.73  

Tax-exempt

    26,963       238       3.55       28,807       253       3.50       16,496       105       2.58  

Interest-bearing balances with banks

    36,333       532       5.89       23,005       317       5.46       35,513       428       4.89  

Adjusted interest-earning assets

    2,669,553       35,682       5.38       2,694,474       35,538       5.23       2,615,097       30,781       4.77  
                                                                         

Total interest-bearing liabilities

    2,118,746       18,506       3.51       2,119,724       18,177       3.40       1,961,302       10,804       2.23  
                                                                         

Adjusted net interest income/adjusted net interest margin

          $ 17,176       2.59 %           $ 17,361       2.56 %           $ 19,977       3.10 %

 

 

 

INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

 

   

March 31, 2024

 

December 31, 2023

 

March 31, 2023

Tangible common equity

                       

Total stockholders’ equity

  $ 227,005     $ 226,768     $ 218,458  

Adjustments:

                       

Goodwill

    40,088       40,088       40,088  

Core deposit intangible

    1,966       2,132       2,676  

Trademark intangible

    100       100       100  

Tangible common equity

  $ 184,851     $ 184,448     $ 175,594  

Tangible assets

                       

Total assets

  $ 2,787,706     $ 2,815,155     $ 2,751,669  

Adjustments:

                       

Goodwill

    40,088       40,088       40,088  

Core deposit intangible

    1,966       2,132       2,676  

Trademark intangible

    100       100       100  

Tangible assets

  $ 2,745,552     $ 2,772,835     $ 2,708,805  
                         

Common shares outstanding

    9,781,946       9,748,067       9,900,648  

Tangible equity to tangible assets

    6.73 %     6.65 %     6.48 %

Book value per common share

  $ 23.21     $ 23.26