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): January 26, 2017

 

 

 

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.)

 

 

7244 Perkins Road

Baton Rouge, Louisiana 70808

 

 

(Address of principal executive offices) (Zip Code)

 

 

Registrant’s 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))

 

 



 

Item 2.02

Results of Operations and Financial Condition.

On January 26, 2017, Investar Holding Corporation issued a press release announcing its financial results for the quarter ended December 31, 2016. A copy of the press release is furnished as exhibit 99.1 to this Current Report on Form 8-K.

The information contained in 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

 

Press release of Investar Holding Corporation dated January 26, 2017 announcing financial results for the quarter ended December 31, 2016.

 



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: January 27, 2017

 

 

 

By:

 

/s/ John J. D’Angelo

 

 

 

 

 

 

John J. D’Angelo

 

 

 

 

 

 

President and Chief Executive Officer

 

 

 



EXHIBIT INDEX

 

Exhibit Number

 

Description of Exhibit

 

 

 

99.1

 

Press release of Investar Holding Corporation dated January 26, 2017 announcing financial results for the quarter ended December 31, 2016.

 

Exhibit 99.1

For Immediate Release

 

Investar Holding Corporation Announces 2016 Fourth Quarter Results

 

BATON ROUGE, LA (January 26, 2017) – Investar Holding Corporation (NASDAQ: ISTR) (the “Company”), the holding company for Investar Bank (the “Bank”), today announced financial results for the quarter ended December 31, 2016. The Company reported net income of $1.8 million, or $0.26 per diluted share for the fourth quarter of 2016, compared to $2.0 million, or $0.29 per diluted share for the quarter ended September 30, 2016, and $1.5 million, or $0.20 per diluted share, for the quarter ended December 31, 2015.

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

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

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

Performance Highlights

 

Total loans, excluding loans held for sale, increased $46.6 million, or 5.5%, compared to September 30, 2016, and increased $148.0 million, or 19.9%, compared to December 31, 2015, to $893.4 million at December 31, 2016.

 

The business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $265.8 million at December 31, 2016, an increase of $15.5 million, or 6.2%, compared to the business lending portfolio of $250.3 million at September 30, 2016, and an increase of $58.1 million, or 28%, compared to the business lending portfolio of $207.7 million at December 31, 2015.

 

Nonperforming loans to total loans decreased to 0.22% at December 31, 2016 compared to 1.06% at September 30, 2016.

 

Total noninterest-bearing deposits were $108.4 million at December 31, 2016, an increase of $18.0 million, or 19.9%, compared to December 31, 2015.

 

Total interest income increased $1.2 million, or 12.0%, for the quarter ended December 31, 2016 compared to the quarter ended December 31, 2015.

 

Diluted earnings per share increased $0.06, or 30%, to $0.26 for the quarter ended December 31, 2016, compared to $0.20 for the quarter ended December 31, 2015.

 

The dividend payout ratio increased to 4.65% for the quarter ended December 31, 2016 compared to 3.81% for the quarter ended September 30, 2016 and 4.26% for the quarter ended December 31, 2015.

 

The Company repurchased 38,311 shares of the Company’s common stock through its stock repurchase program at an average price of $16.75 during the quarter ended December 31, 2016, leaving 241,243 shares available for repurchase. Since the inception of the board-approved repurchase program, the Company has repurchased 258,757 shares of its common stock at an average price of $15.63.

 

The Company’s common stock had a closing trade price of $18.65 at December 30, 2016, representing 21.5% growth from a closing trade price of $15.35 at September 30, 2016.

 

 



 

Loans

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

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Linked Qtr Change

 

 

Year/Year Change

 

 

Percentage of Total Loans

 

 

 

12/31/2016

 

 

9/30/2016

 

 

12/31/2015

 

 

$

 

 

%

 

 

$

 

 

%

 

 

12/31/2016

 

12/31/2015

 

Mortgage loans on real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and development

 

$

90,737

 

 

$

92,355

 

 

$

81,863

 

 

$

(1,618

)

 

(1.8

)%

 

$

8,874

 

 

 

10.8

%

 

 

10.2

%

 

11.0

%

1-4 Family

 

 

177,205

 

 

 

175,392

 

 

 

156,300

 

 

 

1,813

 

 

 

1.0

 

 

 

20,905

 

 

 

13.4

 

 

 

19.8

 

 

21.0

 

Multifamily

 

 

42,759

 

 

 

42,560

 

 

 

29,694

 

 

 

199

 

 

 

0.5

 

 

 

13,065

 

 

 

44.0

 

 

 

4.8

 

 

4.0

 

Farmland

 

 

8,207

 

 

 

8,281

 

 

 

2,955

 

 

 

(74

)

 

 

(0.9

)

 

 

5,252

 

 

 

177.7

 

 

 

0.9

 

 

0.4

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner-occupied

 

 

180,458

 

 

 

172,952

 

 

 

137,752

 

 

 

7,506

 

 

 

4.3

 

 

 

42,706

 

 

 

31.0

 

 

 

20.2

 

 

18.5

 

Nonowner-occupied

 

 

200,258

 

 

 

192,270

 

 

 

150,831

 

 

 

7,988

 

 

 

4.2

 

 

 

49,427

 

 

 

32.8

 

 

 

22.4

 

 

20.2

 

Commercial and industrial

 

 

85,377

 

 

 

77,312

 

 

 

69,961

 

 

 

8,065

 

 

 

10.4

 

 

 

15,416

 

 

 

22.0

 

 

 

9.6

 

 

9.4

 

Consumer

 

 

108,425

 

 

 

85,706

 

 

 

116,085

 

 

 

22,719

 

 

 

26.5

 

 

 

(7,660

)

 

 

(6.6

)

 

 

12.1

 

 

15.5

 

Total loans

 

 

893,426

 

 

 

846,828

 

 

 

745,441

 

 

 

46,598

 

 

 

5.5

%

 

 

147,985

 

 

 

19.9

%

 

 

100

%

 

100

%

Loans held for sale

 

 

-

 

 

 

40,553

 

 

 

80,509

 

 

 

(40,553

)

 

 

(100.0

)

 

 

(80,509

)

 

 

(100.0

)

 

 

 

 

 

 

 

Total gross loans

 

$

893,426

 

 

$

887,381

 

 

$

825,950

 

 

$

6,045

 

 

 

0.7

%

 

$

67,476

 

 

 

8.2

%

 

 

 

 

 

 

 

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

At December 31, 2016, the Company’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $265.8 million, an increase of $15.5 million, or 6.2%, compared to the business lending portfolio of $250.3 million at September 30, 2016, and an increase of $58.1 million, or 28%, compared to the business lending portfolio of $207.7 million at December 31, 2015.

Credit Quality

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

The allowance for loan losses was $7.1 million, or 356.16% and 0.79% of nonperforming loans and total loans, respectively, at December 31, 2016, compared to $7.4 million, or 82.44% and 0.87% of nonperforming loans and total loans, respectively, at September 30, 20 16, and $6.1 million, or 254.16% and 0.82% of nonperforming loans and total loans, respectively, at December 31, 2015. The reduction of the allowance for loan losses at December 31, 2016 compared to September 30, 2016 is mainly attributable to the $0.5 million write-down of the owner-occupied commercial real estate loan that was transferred to other real estate owned during the fourth quarter. The allowance for loan losses plus the fair value marks on acquired loans was 0.87% of total loans at December 31, 2016 compared to 0.95% at September 30, 2016 and 0.91% at December 31, 2015. The provision for loan loss expense was $0.4 million for the fourth quarter of 2016, a decrease of $0.1 million and an increase of $10,000 when compared to September 30, 2016 and December 31, 2015, respectively.


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

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

Deposits

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

 

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

  

 

 

 

 

 

 

 

 

 

 

 

 

 

Linked Qtr Change

 

 

Year/Year Change

 

 

Percentage of

Total Deposits

 

 

 

12/31/2016

 

 

9/30/2016

 

 

12/31/2015

 

 

$

 

 

%

 

 

$

 

 

%

 

 

12/31/2016

 

 

12/31/2015

 

Noninterest-bearing demand deposits

 

$

108,404

 

 

$

112,414

 

 

$

90,447

 

 

$

(4,010

)

 

(3.6

)%

 

$

17,957

 

 

 

19.9

%

 

 

11.9

%

 

 

12.3

%

NOW accounts

 

 

171,556

 

 

 

150,551

 

 

 

140,503

 

 

 

21,005

 

 

 

14.0

 

 

 

31,053

 

 

 

22.1

 

 

 

18.9

 

 

 

19.0

 

Money market deposit accounts

 

 

123,079

 

 

 

123,487

 

 

 

96,113

 

 

 

(408

)

 

 

(0.3

)

 

 

26,966

 

 

 

28.1

 

 

 

13.6

 

 

 

13.0

 

Savings accounts

 

 

52,860

 

 

 

51,332

 

 

 

53,735

 

 

 

1,528

 

 

 

3.0

 

 

 

(875

)

 

 

(1.6

)

 

5.8

 

 

7.3

 

Time deposits

 

 

451,888

 

 

 

469,267

 

 

 

356,608

 

 

 

(17,379

)

 

 

(3.7

)

 

 

95,280

 

 

 

26.7

 

 

49.8

 

 

48.4

 

Total deposits

 

$

907,787

 

 

$

907,051

 

 

$

737,406

 

 

$

736

 

 

 

0.1

%

 

$

170,381

 

 

 

23.1

%

 

 

100

%

 

 

100

%

Net Interest Income

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

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

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


Noninterest Income

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

Noninterest Expense

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

Basic Earnings Per Share and Diluted Earnings Per Share

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

Taxes

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

About Investar Holding Corporation

Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, a state chartered bank. The Company’s primary market is South Louisiana and it currently operates 10 full service banking offices located throughout its market. At December 31 , 2016, the Company had 152 full-time equivalent employees.


Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures and ratios include “tangible common equity,” “tangible assets,” “tangible equity to tangible assets,” and “tangible book value per common share.” Management believes these non-GAAP financial measures provide information useful to investors in understanding the Company’s financial results, and the Company believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting the Company’s business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.

Forward-Looking Statements

This press release c o ntai n s forward- l ooking s t a t eme n ts wit h in t h e mean i ng of t h e Priva t e Securities Lit i gati o n Ref o rm Act of 1 9 95 that reflect the Company’s current views w i t h res p ec t t o , amo n g ot h er th i ngs , fu t u re e v e n t s a n d f i nancia l pe r f o r mance . T h e C o m p any ge n eral l y i d entifies forward-l o ok i ng statemen t s by termi n ol o g y such as “outlook,” “believes,” “expects,” potential,” “continue s,” “may,” “will,” “could,” s hould,” “seek s ,” “approximately,” “pred i ct s ,” “intends,” “plan s ,” “esti m ates,” “anticipates,” or the ne g ative ve rs io n of th o s e w o rd s o r o t he r compa r abl e wo r ds . A n y f o rwa r d - lo oking s t atem e nts contained in this press relea s e are based on t he h i s t o r ica l pe r f o r ma n c e o f t h e Compa n y a n d i t s subs i dia r ie s o r on the Company’s cur r ent plan s , estimates and expectation s . The i n clusi o n of thi s forward-lo o ki n g i n f o rmati o n s h oul d n ot be re g arded as a repres e ntation by the Company that the future plans, estimates or e x pecta t ions by t h e Compa n y will be ach i eved. S u ch forward-lo o k i n g statemen t s are sub j ect t o vari o u s r i sks a n d uncerta i n t i es and assump t i ons relat i ng to t h e Compan y s operati o ns, fina n cial results, fi n ancial co n d i t io n , business p r ospects, g ro w t h st ra teg y a n d li q ui d it y . If o ne o r mo re of t h es e or o t he r r isk s o r unce r tai n tie s ma t e r i a l ize , or i f th e C o m p any ’s u nde r l y in g as s ump t io n s prove to be incorrect, the Company s actual r es u lts m ay v ary m ate ri ally f r om t h os e indicated in these s t atement s . The Company d oes n ot un d er t a k e an y o b li g ati o n t o p u bl i c l y u p dat e or re v ise an y f o r wa r d- l oo k in g s t ateme n t , w het h er a s a re s u l t o f ne w i n fo rm atio n, f ut u r e deve l opmen t s or ot h e r w ise . A n u m b e r o f impo r tan t f act o rs cou l d cause ac t ual results to d i ffer materially from t h ose in d icated b y th e f or w ar d -l o ok i n g sta t ements. These factors include, but are not limi t ed to, the fol l ow i ng, any one or more of which co u l d mater i ally affect t h e o u t c ome of future events:

 

b us ines s an d econ o m i c con d it i on s ge nera l l y a n d i n t h e fi n a ncia l s erv i ces in d u stry in partic u l ar, whether na t i onall y , regi o n al l y or in the mar k ets i n wh i ch we operate;

 

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

 

changes (or the lack of changes) in interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;

 

the extent of continuing client demand for the high level of personalized service that is a key element of our banking approach as well as our ability to execute our strategy generally;

 

our dependence on our management team, and our ability to attract and retain qualified personnel;

 

changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers and including the potential impact on our borrowers of the August 2016 flooding in Baton Rouge and surrounding areas;

 

inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates;

 

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

 

concentration of credit exposur e.

 

These factors should not be con s tru e d as exha u s tive . Ad d it i ona l i n f o rmati o n on thes e an d ot h er ris k f acto rs ca n b e fo u n d i n I t em 1 A. “Risk Factor s and Item 7. “Special Note Rega r di n g Fo r wa r d-L o ok i n g S t atement s i n t h e C ompan y s A nn u a l Re p o rt on Fo rm 1 0-K for the year end e d December 31, 2015, f i led wi t h the Secu r ities and Exchange Commission.

 

 

For further information contact:

 

Investar Holding Corporation

Chris Hufft

Chief Financial Officer

(225) 227-2215

Chris.Hufft@investarbank.com

 



 

INVESTAR HOLDING CORPORATION

 

SUMMARY FINANCIAL INFORMATION

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the three months ended

 

 

 

12/31/2016

 

 

9/30/2016

 

 

12/31/2015

 

 

Linked Quarter

 

 

Year/Year

 

EARNINGS DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

$

11,062

 

 

$

10,993

 

 

$

9,873

 

 

 

0.6

%

 

 

12.0

%

Total interest expense

 

 

2,281

 

 

 

2,240

 

 

 

1,646

 

 

 

1.8

%

 

 

38.6

%

Net interest income

 

 

8,781

 

 

 

8,753

 

 

 

8,227

 

 

 

0.3

%

 

 

6.7

%

Provision for loan losses

 

 

375

 

 

 

450

 

 

 

365

 

 

 

-16.7

%

 

 

2.7

%

Total noninterest income

 

 

896

 

 

 

1,029

 

 

 

1,571

 

 

 

-12.9

%

 

 

-43.0

%

Total noninterest expense

 

 

6,603

 

 

 

6,548

 

 

 

7,234

 

 

 

0.8

%

 

 

-8.7

%

Income before income taxes

 

 

2,699

 

 

 

2,784

 

 

 

2,199

 

 

 

-3.1

%

 

 

22.7

%

Income tax expense

 

 

851

 

 

 

747

 

 

 

745

 

 

 

13.9

%

 

 

14.2

%

Net income

 

$

1,848

 

 

$

2,037

 

 

$

1,454

 

 

 

-9.3

%

 

 

27.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,147,835

 

 

$

1,134,591

 

 

$

974,820

 

 

 

1.2

%

 

 

17.7

%

Total interest-earning assets

 

 

1,087,645

 

 

 

1,075,145

 

 

 

923,662

 

 

 

1.2

%

 

 

17.8

%

Total loans

 

 

863,293

 

 

 

840,028

 

 

 

739,809

 

 

 

2.8

%

 

 

16.7

%

Total gross loans

 

 

889,814

 

 

 

874,272

 

 

 

793,830

 

 

 

1.8

%

 

 

12.1

%

Total interest-bearing deposits

 

 

798,250

 

 

 

784,591

 

 

 

645,247

 

 

 

1.7

%

 

 

23.7

%

Total interest-bearing liabilities

 

 

917,085

 

 

 

905,521

 

 

 

759,068

 

 

 

1.3

%

 

 

20.8

%

Total deposits

 

 

904,310

 

 

 

887,327

 

 

 

887,327

 

 

 

1.9

%

 

 

1.9

%

Total stockholders’ equity

 

 

113,917

 

 

 

113,056

 

 

 

108,998

 

 

 

0.8

%

 

 

4.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.26

 

 

$

0.29

 

 

$

0.20

 

 

 

-10.3

%

 

 

30.0

%

Diluted earnings per share

 

 

0.26

 

 

 

0.29

 

 

 

0.20

 

 

 

-10.3

%

 

 

30.0

%

Book value per share

 

 

15.88

 

 

 

15.93

 

 

 

15.05

 

 

 

-0.3

%

 

 

5.5

%

Tangible book value per common share (1)

 

 

15.42

 

 

 

15.47

 

 

 

14.62

 

 

 

-0.3

%

 

 

5.5

%

Common shares outstanding

 

 

7,101,851

 

 

 

7,131,186

 

 

 

7,264,282

 

 

 

-0.4

%

 

 

-2.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.65

%

 

 

0.71

%

 

 

0.59

%

 

 

-8.5

%

 

 

10.2

%

Return on average equity

 

 

6.51

%

 

 

7.15

%

 

 

5.29

%

 

 

-9.0

%

 

 

23.1

%

Net interest margin

 

 

3.20

%

 

 

3.23

%

 

 

3.53

%

 

 

-0.9

%

 

 

-9.3

%

Net interest income to average assets

 

 

3.04

%

 

 

3.06

%

 

 

3.35

%

 

 

-0.7

%

 

 

-9.3

%

Noninterest expense to average assets

 

 

2.28

%

 

 

2.29

%

 

 

2.94

%

 

 

-0.4

%

 

 

-22.4

%

Efficiency ratio (2)

 

 

68.23

%

 

 

66.94

%

 

 

73.83

%

 

 

1.9

%

 

 

-7.6

%

Dividend payout ratio

 

 

4.65

%

 

 

3.81

%

 

 

4.26

%

 

 

22.0

%

 

 

9.2

%

Net charge-offs to average loans

 

 

0.08

%

 

 

0.02

%

 

 

0.02

%

 

 

300.0

%

 

 

300.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

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

 

 

 



 

INVESTAR HOLDING CORPORATION

 

SUMMARY FINANCIAL INFORMATION

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the three months ended

 

 

 

12/31/2016

 

 

9/30/2016

 

 

12/31/2015

 

 

Linked Quarter

 

 

Year/Year

 

ASSET QUALITY RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.52

%

 

 

0.80

%

 

 

0.30

%

 

 

-35.0

%

 

 

73.3

%

Nonperforming loans to total loans

 

 

0.22

%

 

 

1.06

%

 

 

0.32

%

 

 

-79.2

%

 

 

-31.3

%

Allowance for loan losses to total loans

 

 

0.79

%

 

 

0.87

%

 

 

0.82

%

 

 

-9.2

%

 

 

-3.7

%

Allowance for loan losses to nonperforming loans

 

 

356.16

%

 

 

82.44

%

 

 

254.16

%

 

 

332.0

%

 

 

40.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investar Holding Corporation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity to total assets

 

 

9.73

%

 

 

9.84

%

 

 

10.60

%

 

 

-1.1

%

 

 

-8.2

%

Tangible equity to tangible assets (1)

 

 

9.48

%

 

 

9.59

%

 

 

10.32

%

 

 

-1.1

%

 

 

-8.1

%

Tier 1 leverage ratio

 

 

10.10

%

 

 

10.10

%

 

 

11.39

%

 

 

0.0

%

 

 

-11.3

%

Common equity tier 1 capital ratio (2)

 

 

11.40

%

 

 

11.02

%

 

 

11.67

%

 

 

3.4

%

 

 

-2.3

%

Tier 1 capital ratio (2)

 

 

11.75

%

 

 

11.37

%

 

 

12.05

%

 

 

3.3

%

 

 

-2.5

%

Total capital ratio (2)

 

 

12.47

%

 

 

12.11

%

 

 

12.72

%

 

 

3.0

%

 

 

-2.0

%

Investar Bank:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

10.03

%

 

 

9.94

%

 

 

11.07

%

 

 

0.9

%

 

 

-9.4

%

Common equity tier 1 capital ratio (2)

 

 

11.67

%

 

 

11.19

%

 

 

11.71

%

 

 

4.3

%

 

 

-0.3

%

Tier 1 capital ratio (2)

 

 

11.67

%

 

 

11.19

%

 

 

11.71

%

 

 

4.3

%

 

 

-0.3

%

Total capital ratio (2)

 

 

12.39

%

 

 

11.93

%

 

 

12.38

%

 

 

3.9

%

 

 

0.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(2) Estimated for December 31, 2016.

 



 

INVESTAR HOLDING CORPORATION

 

CONSOLIDATED BALANCE SHEETS

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

 

September 30, 2016

 

 

December 31, 2015

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

9,773

 

 

$

10,172

 

 

$

6,313

 

Interest-bearing balances due from other banks

 

 

19,569

 

 

 

35,811

 

 

 

14,472

 

Federal funds sold

 

 

106

 

 

 

172

 

 

 

181

 

Cash and cash equivalents

 

 

29,448

 

 

 

46,155

 

 

 

20,966

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale securities at fair value (amortized cost

   of $166,258, $147,609, and $113,828, respectively)

 

 

163,051

 

 

 

148,981

 

 

 

113,371

 

Held to maturity securities at amortized cost (estimated fair value

   of $19,612, $21,625, and $26,271, respectively)

 

 

20,091

 

 

 

21,454

 

 

 

26,408

 

Loans held for sale

 

 

-

 

 

 

40,553

 

 

 

80,509

 

Loans, net of allowance for loan losses of $7,051, $7,383, and $6,128,

   respectively

 

 

886,375

 

 

 

839,445

 

 

 

739,313

 

Other equity securities

 

 

5,362

 

 

 

7,388

 

 

 

5,835

 

Bank premises and equipment, net of accumulated depreciation

   of $6,751, $6,380, and $5,368, respectively

 

 

31,722

 

 

 

31,835

 

 

 

30,630

 

Other real estate owned, net

 

 

4,065

 

 

 

279

 

 

 

725

 

Accrued interest receivable

 

 

3,218

 

 

 

3,081

 

 

 

2,831

 

Deferred tax asset

 

 

2,868

 

 

 

1,384

 

 

 

1,915

 

Goodwill and other intangible assets, net

 

 

3,234

 

 

 

3,244

 

 

 

3,175

 

Bank-owned life insurance

 

 

7,201

 

 

 

7,150

 

 

 

3,512

 

Other assets

 

 

2,325

 

 

 

3,256

 

 

 

2,365

 

Total assets

 

$

1,158,960

 

 

$

1,154,205

 

 

$

1,031,555

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

108,404

 

 

$

112,414

 

 

$

90,447

 

Interest-bearing

 

 

799,383

 

 

 

794,637

 

 

 

646,959

 

Total deposits

 

 

907,787

 

 

 

907,051

 

 

 

737,406

 

Advances from Federal Home Loan Bank

 

 

82,803

 

 

 

88,943

 

 

 

127,497

 

Repurchase agreements

 

 

39,087

 

 

 

23,554

 

 

 

39,099

 

Junior subordinated debt

 

 

3,609

 

 

 

3,609

 

 

 

3,609

 

Other borrowings

 

 

1,000

 

 

 

-

 

 

 

-

 

Accrued taxes and other liabilities

 

 

11,917

 

 

 

17,472

 

 

 

14,594

 

Total liabilities

 

 

1,046,203

 

 

 

1,040,629

 

 

 

922,205

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Preferred stock, no par value per share; 5,000,000

   shares authorized

 

 

-

 

 

 

-

 

 

 

-

 

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

   7,368,914, 7,359,666, and 7,305,213 shares issued, and 7,101,851,

   7,131,186, and 7,264,282 shares outstanding, respectively

 

 

7,369

 

 

 

7,360

 

 

 

7,305

 

Treasury stock

 

 

(4,172

)

 

 

(3,526

)

 

 

(634

)

Surplus

 

 

85,404

 

 

 

85,124

 

 

 

84,692

 

Retained earnings

 

 

26,227

 

 

 

24,465

 

 

 

18,650

 

Accumulated other comprehensive (loss) income

 

 

(2,071

)

 

 

153

 

 

 

(663

)

Total stockholders’ equity

 

 

112,757

 

 

 

113,576

 

 

 

109,350

 

   Total liabilities and stockholders’ equity

 

$

1,158,960

 

 

$

1,154,205

 

 

$

1,031,555

 



 

INVESTAR HOLDING CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

For the twelve months ended

 

 

 

December 31, 2016

 

 

September 30, 2016

 

 

December 31, 2015

 

 

December 31, 2016

 

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

10,103

 

 

$

10,011

 

 

$

9,220

 

 

$

39,380

 

 

$

35,076

 

Interest on investment securities

 

 

898

 

 

 

920

 

 

 

631

 

 

 

3,565

 

 

 

2,189

 

Other interest income

 

 

61

 

 

 

62

 

 

 

22

 

 

 

207

 

 

 

75

 

Total interest income

 

 

11,062

 

 

 

10,993

 

 

 

9,873

 

 

 

43,152

 

 

 

37,340

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

1,970

 

 

 

1,934

 

 

 

1,401

 

 

 

7,182

 

 

 

5,250

 

Interest on borrowings

 

 

311

 

 

 

306

 

 

 

245

 

 

 

1,231

 

 

 

632

 

Total interest expense

 

 

2,281

 

 

 

2,240

 

 

 

1,646

 

 

 

8,413

 

 

 

5,882

 

Net interest income

 

 

8,781

 

 

 

8,753

 

 

 

8,227

 

 

 

34,739

 

 

 

31,458

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

375

 

 

 

450

 

 

 

365

 

 

 

2,079

 

 

 

1,865

 

Net interest income after provision for

   loan losses

 

 

8,406

 

 

 

8,303

 

 

 

7,862

 

 

 

32,660

 

 

 

29,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

79

 

 

 

79

 

 

 

94

 

 

 

343

 

 

 

380

 

Gain on sale of investment securities, net

 

 

15

 

 

 

204

 

 

 

21

 

 

 

443

 

 

 

489

 

Gain on sale of fixed assets, net

 

 

14

 

 

 

-

 

 

 

-

 

 

 

1,266

 

 

 

15

 

Gain (loss) on sale of other real estate

   owned, net

 

 

2

 

 

 

-

 

 

 

36

 

 

 

13

 

 

 

(105

)

Gain on sale of loans, net

 

 

92

 

 

 

-

 

 

 

537

 

 

 

405

 

 

 

4,368

 

Servicing fees and fee income on serviced

   loans

 

 

449

 

 

 

510

 

 

 

690

 

 

 

2,087

 

 

 

2,543

 

Other operating income

 

 

245

 

 

 

236

 

 

 

193

 

 

 

911

 

 

 

654

 

Total noninterest income

 

 

896

 

 

 

1,029

 

 

 

1,571

 

 

 

5,468

 

 

 

8,344

 

Income before noninterest expense

 

 

9,302

 

 

 

9,332

 

 

 

9,433

 

 

 

38,128

 

 

 

37,937

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

383

 

 

 

371

 

 

 

365

 

 

 

1,493

 

 

 

1,446

 

Salaries and employee benefits

 

 

3,901

 

 

 

3,945

 

 

 

4,358

 

 

 

15,609

 

 

 

16,398

 

Occupancy

 

 

252

 

 

 

265

 

 

 

296

 

 

 

995

 

 

 

951

 

Data processing

 

 

373

 

 

 

374

 

 

 

409

 

 

 

1,488

 

 

 

1,508

 

Marketing

 

 

70

 

 

 

102

 

 

 

93

 

 

 

386

 

 

 

248

 

Professional fees

 

 

295

 

 

 

312

 

 

 

305

 

 

 

1,261

 

 

 

1,075

 

Customer reimbursements

 

 

-

 

 

 

-

 

 

 

-

 

 

 

584

 

 

 

-

 

Other operating expenses

 

 

1,329

 

 

 

1,179

 

 

 

1,408

 

 

 

4,823

 

 

 

5,727

 

Total noninterest expense

 

 

6,603

 

 

 

6,548

 

 

 

7,234

 

 

 

26,639

 

 

 

27,353

 

Income before income tax expense

 

 

2,699

 

 

 

2,784

 

 

 

2,199

 

 

 

11,489

 

 

 

10,584

 

Income tax expense

 

 

851

 

 

 

747

 

 

 

745

 

 

 

3,609

 

 

 

3,511

 

Net income

 

$

1,848

 

 

$

2,037

 

 

$

1,454

 

 

$

7,880

 

 

$

7,073

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.26

 

 

$

0.29

 

 

$

0.20

 

 

$

1.11

 

 

$

0.98

 

Diluted earnings per share

 

$

0.26

 

 

$

0.29

 

 

$

0.20

 

 

$

1.10

 

 

$

0.97

 

Cash dividends declared per common share

 

$

0.01

 

 

$

0.01

 

 

$

0.01

 

 

$

0.04

 

 

$

0.03

 


 

 

 

INVESTAR HOLDING CORPORATION

 

EARNINGS PER COMMON SHARE

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

For the twelve months ended

 

 

 

December 31, 2016

 

 

September 30, 2016

 

 

December 31, 2015

 

 

December 31, 2016

 

 

December 31, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

1,848

 

 

$

2,037

 

 

$

1,454

 

 

$

7,880

 

 

$

7,073

 

Weighted average number of common shares

   outstanding used in computation of basic

   earnings per common share

 

 

7,017,213

 

 

 

7,059,953

 

 

 

7,200,526

 

 

 

7,107,187

 

 

 

7,214,045

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock

 

 

21,648

 

 

 

15,546

 

 

 

12,564

 

 

 

10,228

 

 

 

5,861

 

Stock options

 

 

33,664

 

 

 

15,369

 

 

 

21,150

 

 

 

33,664

 

 

 

21,150

 

Stock warrants

 

 

17,975

 

 

 

11,575

 

 

 

16,952

 

 

 

17,975

 

 

 

16,952

 

Weighted average number of common shares

   outstanding plus effect of dilutive securities

   used in computation of diluted earnings per

   common share

 

 

7,090,500

 

 

 

7,102,443

 

 

 

7,251,192

 

 

 

7,169,054

 

 

 

7,258,008

 

Basic earnings per share

 

$

0.26

 

 

$

0.29

 

 

$

0.20

 

 

$

1.11

 

 

$

0.98

 

Diluted earnings per share

 

$

0.26

 

 

$

0.29

 

 

$

0.20

 

 

$

1.10

 

 

$

0.97

 

 



 

INVESTAR HOLDING CORPORATION

 

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

 

December 31, 2016

 

 

September 30, 2016

 

 

December 31, 2015

 

 

 

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

 

$

889,814

 

 

$

10,103

 

 

 

4.50

%

 

$

874,272

 

 

$

10,011

 

 

 

4.54

%

 

$

793,830

 

 

$

9,220

 

 

 

4.61

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

138,985

 

 

 

707

 

 

 

2.02

 

 

 

136,047

 

 

 

728

 

 

 

2.12

 

 

 

93,713

 

 

 

527

 

 

 

2.23

 

Tax-exempt

 

 

30,898

 

 

 

191

 

 

 

2.45

 

 

 

30,733

 

 

 

192

 

 

 

2.48

 

 

 

17,174

 

 

 

104

 

 

 

2.40

 

Interest-bearing balances with banks

 

 

27,948

 

 

 

61

 

 

 

0.87

 

 

 

34,093

 

 

 

62

 

 

 

0.72

 

 

 

18,945

 

 

 

22

 

 

 

0.46

 

Total interest-earning assets

 

 

1,087,645

 

 

 

11,062

 

 

 

4.04

 

 

 

1,075,145

 

 

 

10,993

 

 

 

4.06

 

 

 

923,662

 

 

 

9,873

 

 

 

4.24

 

Cash and due from banks

 

 

7,845

 

 

 

 

 

 

 

 

 

 

 

7,138

 

 

 

 

 

 

 

 

 

 

 

5,656

 

 

 

 

 

 

 

 

 

Intangible assets

 

 

3,237

 

 

 

 

 

 

 

 

 

 

 

3,248

 

 

 

 

 

 

 

 

 

 

 

3,178

 

 

 

 

 

 

 

 

 

Other assets

 

 

56,361

 

 

 

 

 

 

 

 

 

 

 

56,273

 

 

 

 

 

 

 

 

 

 

 

48,374

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

 

(7,253

)

 

 

 

 

 

 

 

 

 

 

(7,213

)

 

 

 

 

 

 

 

 

 

 

(6,050

)

 

 

 

 

 

 

 

 

Total assets

 

$

1,147,835

 

 

 

 

 

 

 

 

 

 

$

1,134,591

 

 

 

 

 

 

 

 

 

 

$

974,820

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

 

$

281,500

 

 

$

485

 

 

 

0.68

%

 

$

262,841

 

 

$

433

 

 

 

0.65

%

 

$

233,748

 

 

$

369

 

 

 

0.63

%

Savings deposits

 

 

53,219

 

 

 

87

 

 

 

0.65

 

 

 

51,924

 

 

 

88

 

 

 

0.67

 

 

 

54,482

 

 

 

92

 

 

 

0.67

 

Time deposits

 

 

463,531

 

 

 

1,398

 

 

 

1.20

 

 

 

469,826

 

 

 

1,413

 

 

 

1.19

 

 

 

357,017

 

 

 

940

 

 

 

1.04

 

Total interest-bearing deposits

 

 

798,250

 

 

 

1,970

 

 

 

0.98

 

 

 

784,591

 

 

 

1,934

 

 

 

0.98

 

 

 

645,247

 

 

 

1,401

 

 

 

0.86

 

Short-term borrowings

 

 

99,169

 

 

 

246

 

 

 

0.98

 

 

 

98,286

 

 

 

237

 

 

 

0.96

 

 

 

84,531

 

 

 

171

 

 

 

0.80

 

Long-term debt

 

 

19,666

 

 

 

65

 

 

 

1.31

 

 

 

22,644

 

 

 

69

 

 

 

1.21

 

 

 

29,290

 

 

 

74

 

 

 

1.00

 

Total interest-bearing liabilities

 

 

917,085

 

 

 

2,281

 

 

 

0.99

 

 

 

905,521

 

 

 

2,240

 

 

 

0.98

 

 

 

759,068

 

 

 

1,646

 

 

 

0.86

 

Noninterest-bearing deposits

 

 

106,060

 

 

 

 

 

 

 

 

 

 

 

102,736

 

 

 

 

 

 

 

 

 

 

 

95,954

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

10,773

 

 

 

 

 

 

 

 

 

 

 

13,278

 

 

 

 

 

 

 

 

 

 

 

10,800

 

 

 

 

 

 

 

 

 

Stockholders equity

 

 

113,917

 

 

 

 

 

 

 

 

 

 

 

113,056

 

 

 

 

 

 

 

 

 

 

 

108,998

 

 

 

 

 

 

 

 

 

Total liability and stockholders equity

 

$

1,147,835

 

 

 

 

 

 

 

 

 

 

$

1,134,591

 

 

 

 

 

 

 

 

 

 

$

974,820

 

 

 

 

 

 

 

 

 

Net interest income/net interest margin

 

 

 

 

 

$

8,781

 

 

 

3.20

%

 

 

 

 

 

$

8,753

 

 

 

3.23

%

 

 

 

 

 

$

8,227

 

 

 

3.53

%


 

INVESTAR HOLDING CORPORATION

 

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the twelve months ended

 

 

 

December 31, 2016

 

 

December 31, 2015

 

 

 

Average

Balance

 

 

Interest

Income/

Expense

 

 

Yield/ Rate

 

 

Average

Balance

 

 

Interest

Income/

Expense

 

 

Yield/ Rate

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

862,340

 

 

$

39,380

 

 

 

4.55

%

 

$

754,056

 

 

$

35,076

 

 

 

4.65

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

129,251

 

 

 

2,878

 

 

 

2.22

 

 

 

80,516

 

 

 

1,741

 

 

 

2.16

 

Tax-exempt

 

 

27,171

 

 

 

687

 

 

 

2.52

 

 

 

18,077

 

 

 

448

 

 

 

2.48

 

Interest-bearing balances with banks

 

 

26,196

 

 

 

207

 

 

 

0.79

 

 

 

18,136

 

 

 

75

 

 

 

0.41

 

Total interest-earning assets

 

 

1,044,958

 

 

 

43,152

 

 

 

4.12

 

 

 

870,785

 

 

 

37,340

 

 

 

4.29

 

Cash and due from banks

 

 

7,463

 

 

 

 

 

 

 

 

 

 

 

5,611

 

 

 

 

 

 

 

 

 

Intangible assets

 

 

3,231

 

 

 

 

 

 

 

 

 

 

 

3,194

 

 

 

 

 

 

 

 

 

Other assets

 

 

54,951

 

 

 

 

 

 

 

 

 

 

 

46,313

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

 

(6,891

)

 

 

 

 

 

 

 

 

 

 

(5,636

)

 

 

 

 

 

 

 

 

Total assets

 

$

1,103,712

 

 

 

 

 

 

 

 

 

 

$

920,267

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

 

$

257,888

 

 

$

1,690

 

 

 

0.65

%

 

$

222,730

 

 

$

1,402

 

 

 

0.63

%

Savings deposits

 

 

52,753

 

 

 

353

 

 

 

0.67

 

 

 

54,240

 

 

 

367

 

 

 

0.68

 

Time deposits

 

 

439,423

 

 

 

5,139

 

 

 

1.17

 

 

 

343,638

 

 

 

3,481

 

 

 

1.01

 

Total interest-bearing deposits

 

 

750,064

 

 

 

7,182

 

 

 

0.95

 

 

 

620,608

 

 

 

5,250

 

 

 

0.85

 

Short-term borrowings

 

 

108,339

 

 

 

956

 

 

 

0.88

 

 

 

60,970

 

 

 

296

 

 

 

0.49

 

Long-term debt

 

 

23,092

 

 

 

275

 

 

 

1.19

 

 

 

36,712

 

 

 

336

 

 

 

0.92

 

Total interest-bearing liabilities

 

 

881,495

 

 

 

8,413

 

 

 

0.95

 

 

 

718,290

 

 

 

5,882

 

 

 

0.82

 

Noninterest-bearing deposits

 

 

97,948

 

 

 

 

 

 

 

 

 

 

 

85,635

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

11,793

 

 

 

 

 

 

 

 

 

 

 

9,256

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

112,476

 

 

 

 

 

 

 

 

 

 

 

107,086

 

 

 

 

 

 

 

 

 

Total liability and stockholders’ equity

 

$

1,103,712

 

 

 

 

 

 

 

 

 

 

$

920,267

 

 

 

 

 

 

 

 

 

Net interest income/net interest margin

 

 

 

 

 

$

34,739

 

 

 

3.32

%

 

 

 

 

 

$

31,458

 

 

 

3.61

%


 

INVESTAR HOLDING CORPORATION

 

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2016

 

 

September 30, 2016

 

 

December 31, 2015

 

Tangible common equity

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholders’ equity

 

$

112,757

 

 

$

113,576

 

 

$

109,350

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

2,684

 

 

 

2,684

 

 

 

2,684

 

Core deposit intangible

 

 

450

 

 

 

460

 

 

 

491

 

Trademark intangible

 

 

100

 

 

 

100

 

 

 

-

 

Tangible common equity

 

$

109,523

 

 

$

110,332

 

 

$

106,175

 

Tangible assets

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,158,960

 

 

$

1,154,205

 

 

$

1,031,555

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

2,684

 

 

 

2,684

 

 

 

2,684

 

Core deposit intangible

 

 

450

 

 

 

460

 

 

 

491

 

Trademark intangible

 

 

100

 

 

 

100

 

 

 

-

 

Tangible assets

 

$

1,155,726

 

 

$

1,150,961

 

 

$

1,028,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

7,101,851

 

 

 

7,131,186

 

 

 

7,264,282

 

Tangible equity to tangible assets

 

 

9.48

%

 

 

9.59

%

 

 

10.32

%

Book value per common share

 

$

15.88

 

 

$

15.93

 

 

$

15.05

 

Tangible book value per common share

 

 

15.42

 

 

 

15.47

 

 

 

14.62