0001193125-15-022504 8-K 2 20150128 2.02 9.01 20150128 20150128 Investar Holding Corp 0001602658 6022 271560715 LA 1231 8-K 34 001-36522 15553087 7244 PERKINS ROAD BATON ROUGE LA 70808 225-227-2222 7244 PERKINS ROAD BATON ROUGE LA 70808 8-K 1 d859505d8k.htm FORM 8-K Form 8-K

 

 

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 28, 2015

 

 

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 (see General Instruction A.2. below):

 

¨ 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 28, 2015, Investar Holding Corporation issued a press release announcing its financial results for the quarter and year ended December 31, 2014. 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 28, 2015 announcing financial results for the quarter and year ended December 31, 2014.


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 28, 2015 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 28, 2015 announcing financial results for the quarter and year ended December 31, 2014.
EX-99.1 2 d859505dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

For Immediate Release

Investar Holding Corporation Announces 2014 Fourth Quarter Results

Investar Holding Corporation Achieves Record Growth in Net Income of 1,028%

BATON ROUGE, LA (January 28, 2015) – Investar Holding Corporation (NASDAQ: ISTR) (the “Company”), the holding company for Investar Bank, today announced financial results for the quarter and year ended December 31, 2014. For the quarter ended December 31, 2014, the Company reported net income of $2.0 million, or $0.27 per diluted share, compared to $0.2 million, or $0.04 per diluted share for the quarter ended December 31, 2013. This represents an increase of $1.8 million, or 1,028%, in net income. For the year ended December 31, 2014, the Company reported net income of $5.4 million, or $0.93 per diluted share, compared to $3.2 million, or $0.81 per diluted share, for the year ended December 31, 2013. This represents an increase of $2.2 million, or 70.4%, in net income. After adjusting for the net effect of an investment in a tax credit entity, discussed in “Taxes” below, net income was $1.5 million, or $0.20 per diluted share, for the quarter ended December 31, 2014, compared to $0.2 million, or $0.04 per diluted share, for the comparable quarter in 2013, an increase in net income of 733.84%, or $0.16 per diluted share.

Investar Holding Corporation President and Chief Executive Officer John D’Angelo said, “Our board and management are very happy with our achievements and performance in 2014. We completed our IPO, realized a record year in profitability and loan originations and maintained a delinquency ratio significantly below our peers. We are very pleased with our organic growth and continue to drive more earnings to the bottom line as we grow into our infrastructure.”

Performance Highlights

 

    Increase in net income of $1.8 million, or 1,028%, compared to the fourth quarter of 2013.

 

    Total assets were $879.4 million at December 31, 2014, an increase of $244.4 million, or 38.5%, from December 31, 2013.

 

    Total gross loans increased $217.1 million, or 42.6%, to $726.2 million at December 31, 2014 from $509.1 million at December 31, 2013.

 

    Commercial and industrial loans increased $21.5 million, or 65.9%, from December 31, 2013.

 

    Return on average assets increased to 0.96% for the fourth quarter of 2014 compared to 0.12% for the fourth quarter of 2013.

 

    Net interest income increased $7.7 million, or 40.4%, for the year ended December 31, 2014.

 

    Net interest margin remained relatively stable at 3.84% for the fourth quarter of 2014 when compared to the third quarter of 2014.

Loans

Total loans were $622.8 million at December 31, 2014, an increase of $118.7 million, or 23.5%, from December 31, 2013.


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

 

            Percentage            Percentage     Increase/(Decrease)  
     December 31, 2014      of Portfolio     December 31, 2013      of Portfolio     Amount     Percent  

Mortgage loans on real estate

              

Construction and land development

   $ 71,350         11.4   $ 63,170         12.5 %   $ 8,180        12.9

1-4 Family

     137,519         22.1       104,685         20.8       32,834        31.4  

Multifamily

     17,458         2.8       14,286         2.8       3,172        22.2  

Farmland

     2,919         0.5       830         0.2       2,089        251.7  

Nonfarm, nonresidential

              

Owner occupied

     119,668         19.2       78,415         15.6       41,253        52.6  

Nonowner occupied

     105,390         16.9       78,948         15.6       26,442        33.5  

Commercial and industrial

     54,187         8.7       32,665         6.5       21,522        65.9  

Consumer

     114,299         18.4       131,096         26.0       (16,797     (12.8 )
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total loans

  622,790      100   504,095      100 %   118,695      23.5

Loans held for sale

  103,396      5,029      98,367      1,956.0  
  

 

 

      

 

 

      

 

 

   

 

 

 

Total gross loans

$ 726,186    $ 509,124    $ 217,062      42.6
  

 

 

      

 

 

      

 

 

   

 

 

 

Consumer loans, including consumer loans held for sale, totaled $214.0 million at December 31, 2014, an increase of 63.2% from $131.1 million at December 31, 2013. At December 31, 2013, there were no consumer loans held for sale. Due to the increase in production and the timing of loan pool sales, the Company increased its consumer held for sale portfolio to $99.7 million at December 31, 2014. Two loan pool sales totaling approximately $52.0 million were moved from the fourth quarter of 2014 to the first quarter of 2015 and have been completed subsequent to December 31, 2014.

At December 31, 2014, the Company’s total business lending portfolio, which consists of loans secured by owner occupied nonfarm, nonresidential properties and commercial and industrial loans, was $173.9 million, an increase of $22.0 million, or 14.5%, compared to the business lending portfolio of $151.9 million at September 30, 2014 and an increase of $62.8 million, or 56.5%, compared to the business lending portfolio of $111.1 million at December 31, 2013.

We have reviewed our loan portfolio for exposure, directly or indirectly, to the potential negative impacts from the fluctuation in oil and gas prices. We have identified less than one percent of our total loan portfolio with a relationship to the energy sector. At December 31, 2014, none of the loans identified were past due. At this time, we are not concerned that decreases in oil and gas prices will negatively impact our borrowers’ ability to service their debt. Our allowance for loan losses is continuously evaluated based on several factors, including economic conditions, and we believe that any potential negatively affected future cash flows related to these loans would be covered by our allowance for loan losses.

The provision for loan loss expense was $0.4 million for the fourth quarter of 2014, a decrease of $0.3 million compared to the fourth quarter of 2013. The allowance for loan losses was $4.6 million, or 138.61% and 0.74% of nonperforming loans and total loans, respectively, at December 31, 2014, compared to $3.4 million, or 227% and 0.67% of nonperforming loans and total loans, respectively, at December 31, 2013.

Nonperforming assets totaled $6.1 million at December 31, 2014, an increase of $1.1 million compared to December 31, 2013. The ratio of total nonperforming assets to total assets was 0.69% at December 31, 2014, compared to 0.79% at December 31, 2013.

Deposits

Total deposits at December 31, 2014 were $628.1 million, an increase of $95.5 million, or 17.9%, from December 31, 2013. The increase in total deposits was driven primarily by an increase of $11.4 million, or 19.4%, in noninterest bearing demand deposits after adjusting for a $14 million short term deposit made by a commercial customer in late December 2013 that was fully withdrawn in January 2014, an increase in NOW accounts of $39.5 million, or 51.1%, and an increase in time deposits of $46.9 million, or 17.8%, from December 31, 2013. We believe our deposit cross sell strategy continues to impact both noninterest bearing demand deposit and NOW account growth.


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

 

            Percentage            Percentage     Increase/(Decrease)  
     December 31, 2014      of Portfolio     December 31, 2013      of Portfolio     Amount     Percent  

Noninterest bearing demand deposits

   $ 70,217         11.2 %   $ 72,795         13.7 %   $ (2,578     (3.50 )% 

NOW accounts

     116,644         18.6       77,190         14.5       39,454        51.1  

Money market deposit accounts

     77,589         12.3       67,006         12.6       10,583        15.8  

Savings accounts

     53,332         8.5       52,177         9.8       1,155        2.2  

Time deposits

     310,336         49.4       263,438         49.4       46,898        17.8  
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total deposits

   $ 628,118         100 %   $ 532,606         100 %   $ 95,512        17.9
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Net Interest Income

Net interest income for the fourth quarter of 2014 totaled $7.6 million, an increase of $2.0 million, or 35.2%, from the fourth quarter of 2013. The increase was a direct result of continued growth of the Company’s loan portfolio with an increase in net interest income of $2.3 million due to an increase in volume offset by a $0.3 million decrease related to a reduction in yield when compared to the fourth quarter of 2013.

Net interest income for the year ended December 31, 2014 totaled $26.7 million, an increase of $7.7 million, or 40.4%, from the year ended December 31, 2013. This increase was also a direct result of continued growth of the Company’s loan portfolio with an increase in net interest income of $9.2 million due to an increase in volume offset by a $1.5 million decrease related to a reduction in yield when compared to the year ended December 31, 2013.

The Company’s net interest margin was 3.84% for the quarter ended December 31, 2014 compared to 3.86% for the third quarter of 2014 and 4.01% for the fourth quarter of 2013. The decrease in the net interest margin since 2013 can be attributed to lower yields on the real estate and consumer loan portfolios. The yield on interest earning assets was 4.47% for the quarter ended December 31, 2014 compared to 4.51% for the third quarter of 2014 and 4.72% for the fourth quarter of 2013. The cost of deposits declined one basis point when comparing the fourth quarter of 2014 to the third quarter of 2014, and declined three basis points when comparing the fourth quarter of 2014 to the fourth quarter of 2013.

The Company’s net interest margin was 3.85% for the year ended December 31, 2014 compared to 4.10% for the year ended December 31, 2013. The decline in the interest margin can be attributed to lower yields primarily on the construction, multifamily and nonfarm, nonresidential loan portfolios.

Noninterest Income

Noninterest income for the fourth quarter of 2014 totaled $1.3 million, an increase of $0.4 million, or 36.7%, compared to the fourth quarter of 2013. Noninterest income, excluding securities gains, for the fourth quarter of 2014 totaled $1.2 million, an increase of $0.4 million, or 40.5% compared to the fourth quarter of 2013. The increase resulted primarily from the increase of $0.2 million in other operating income and the increase of $0.1 million in gain on sale of consumer loans.

Noninterest income for the year ended December 31, 2014 totaled $5.9 million, an increase of $0.5 million, or 9.5%, compared to the year ended December 31, 2013. Noninterest income, excluding securities gains and the $0.9 million bargain purchase gain recorded in the second quarter of 2013 in connection with the Company’s acquisition of First Community Bank in May 2013, increased $1.5 million for the year ended December 31, 2014 compared to the year ended December 31, 2013 primarily as a result of the increase of approximately $1.4 million in gain on sale of consumer loans and increases in our servicing and other fee income offset by the $0.7 million decline in fee income on mortgage loans held for sale.

Noninterest Expense

Noninterest expense for the fourth quarter of 2014 totaled $7.0 million, an increase of $1.3 million, or 23.8%, compared to the fourth quarter of 2013. The increase in noninterest expense is primarily due to the $0.4 million increase in salaries and employee benefits, the $0.1 million increase in both occupancy and equipment expense and data processing expense and the $0.7 million increase in impairment on investment in tax credit entity recognized as a result of the Federal Historic Rehabilitation tax credit project completed in December 2014. The increases in salaries and benefits, occupancy and equipment and data processing expenses are attributable to the Company’s expansion into the Lafayette, Louisiana region, which included the opening of a branch in the fourth quarter of 2013, the opening of the Highland Road branch in Baton Rouge, Louisiana on August 1, 2014 and the addition of 16 full-time equivalent employees.


Noninterest expense for the year ended December 31, 2014 totaled $24.4 million, an increase of $5.4 million, or 28.2%, compared to the year ended December 31, 2013. The increase is attributable to the full twelve months of expenses associated with the two branches that the Company acquired as a result of the First Community Bank acquisition in May 2013 and the Company’s expansion into the Lafayette region, which included the opening of a branch during the fourth quarter 2013, as well as the additional expenses related to the opening of the Highland Road branch during the third quarter of 2014. Other factors include the impairment charge on the investment in the tax credit entity related to the Federal Historic Rehabilitation tax credit project, mentioned above, and the professional fees related to the Company’s implementation of Sarbanes-Oxley compliance.

Basic Earnings Per Share and Diluted Earnings Per Share

The Company reported basic earnings per share and diluted earnings per share of $0.28 and $0.27, respectively, for the three months ended December 31, 2014, an increase of $0.08 and $0.07, respectively, compared to the three months ended September 30, 2014 and an increase of $0.23 and $0.23, respectively, when compared to the three months ended December 31, 2013.

The Company reported basic earnings per share and diluted earnings per share for the year ended December 31, 2014 of $0.98 and $0.93, an increase of $0.12 and $0.12, respectively, compared to the year ended December 31, 2013. Excluding the net effect of the Company’s investment in the Federal Historic Rehabilitation tax credit project during the fourth quarter of 2014, diluted earnings per share for the year ended December 31, 2014 was $0.85, an increase of $0.23, after adjusting for the bargain purchase gain and acquisition related expenses for the year ended December 31, 2013.

Taxes

The Company recorded income tax (benefit) expense of $(0.5) million and $1.1 million for the quarter and year ended December 31, 2014, respectively, which equates to an effective tax rate of (32.4)% and 17.5%, respectively. During the fourth quarter of 2014, the Company invested in a tax credit entity whose purpose was to invest in a Federal Historic Rehabilitation tax credit project. As a result of the investment, the Company recognized a tax credit of $1.0 million, reducing tax expense for the quarter and year ended December 31, 2014, as well as a corresponding impairment on the investment in the tax credit entity of $0.7 million. Due to the net effect of the investment, the Company experienced an effective tax rate below the statutory rate of 35%.

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 11 full service banking offices located throughout its market. At December 31, 2014, the Company had 179 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 book value,” “tangible book value per common share,” “efficiency ratio,” “tangible equity to tangible assets,” “adjusted efficiency ratio,” and “adjusted return on equity.” Management also utilizes non-GAAP performance measures to adjust net income for certain significant activities or transactions that are infrequent in nature. Management believes these non-GAAP financial measures provide information useful to investors in understanding the Company’s financial results, and the Company believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting the Company’s business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.


Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review 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. Information on these factors can be found in the filings that the Company makes with the Securities and Exchange Commission.

For further information contact:

Investar Holding Company

John D’Angelo

President and Chief Executive Officer

(225) 448-5461

John.Dangelo@investarbank.com

Investar Holding Company

Chris Hufft

Chief Accounting Officer

(225) 227-2215

Chris.Hufft@investarbank.com


INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 

     December 31, 2014     December 31, 2013  
     (Unaudited)        

ASSETS

    

Cash and due from banks

   $ 5,519      $ 5,964   

Interest bearing balances due from other banks

     13,493        21,739   

Federal funds sold

     500        500   
  

 

 

   

 

 

 

Cash and cash equivalents

  19,512      28,203   

Available for sale securities at fair value (amortized cost of $69,838 and $56,733, respectively)

  70,299      56,173   

Held to maturity securities at amortized cost (estimated fair value of $22,301 and $5,986, respectively)

  22,519      6,579   

Loans held for sale

  103,396      5,029   

Loans, net of allowance for loan losses of $4,630 and $3,380, respectively

  618,160      500,715   

Other equity securities

  5,566      2,020   

Bank premises and equipment, net of accumulated depreciation of $4,745 and $2,679, respectively

  28,538      24,680   

Real estate owned, net

  2,735      3,515   

Accrued interest receivable

  2,435      1,835   

Deferred tax asset

  1,097      1,205   

Goodwill

  2,684      2,684   

Other assets

  2,413      2,308   
  

 

 

   

 

 

 

Total assets

$ 879,354    $ 634,946   
  

 

 

   

 

 

 

LIABILITIES

Deposits

Noninterest bearing

$ 70,217    $ 72,795   

Interest bearing

  557,901      459,811   
  

 

 

   

 

 

 

Total deposits

  628,118      532,606   

Advances from Federal Home Loan Bank

  125,785      30,818   

Repurchase agreements

  12,293      10,203   

Note payable

  3,609      3,609   

Accrued interest payable

  284      285   

Accrued taxes and other liabilities

  5,881      1,942   
  

 

 

   

 

 

 

Total liabilities

  775,970      579,463   

STOCKHOLDERS’ EQUITY

Common stock, $1.00 par value per share; 40,000,000 shares authorized; 7,262,085 and 3,945,114 shares issued and outstanding, respectively

  7,264      3,943   

Treasury stock

  (23   —     

Surplus

  84,213      45,281   

Retained earnings

  11,809      6,609   

Accumulated other comprehensive income (loss)

  121      (350
  

 

 

   

 

 

 

Total stockholders’ equity

  103,384      55,483   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 879,354    $ 634,946   
  

 

 

   

 

 

 


INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share data)

(Unaudited)

 

     Three months ended      Twelve months ended  
     December 31,      December 31,  
     2014     2013      2014      2013  

INTEREST INCOME

          

Interest and fees on loans

   $ 8,384      $ 6,355       $ 29,979       $ 21,686   

Interest on investment securities:

          

Taxable interest income

     322        155         945         402   

Exempt from federal income taxes

     100        87         394         354   

Other interest income

     16        8         51         30   
  

 

 

   

 

 

    

 

 

    

 

 

 

Total interest income

  8,822      6,605      31,369      22,472   

INTEREST EXPENSE

Interest on deposits

  1,135      920      4,273      3,204   

Interest on borrowings

  110      82      402      256   
  

 

 

   

 

 

    

 

 

    

 

 

 

Total interest expense

  1,245      1,002      4,675      3,460   
  

 

 

   

 

 

    

 

 

    

 

 

 

Net interest income

  7,577      5,603      26,694      19,012   

Provision for loan losses

  430      686      1,628      1,026   
  

 

 

   

 

 

    

 

 

    

 

 

 

Net interest income after provision for loan losses

  7,147      4,917      25,066      17,986   

NONINTEREST INCOME

Service charges on deposit accounts

  84      61      305      214   

Gain on sale of investment securities, net

  111      105      340      449   

(Loss) gain on sale of real estate owned, net

  (7   —        230      97   

Gain on sale of loans, net

  226      109      1,659      247   

Gain on sale of fixed assets, net

  —        —        3      2   

Bargain purchase gain

  —        —        —        906   

Fee income on mortgage loans held for sale, net

  501      518      2,119      2,843   

Other operating income

  410      176      1,204      596   
  

 

 

   

 

 

    

 

 

    

 

 

 

Total noninterest income

  1,325      969      5,860      5,354   
  

 

 

   

 

 

    

 

 

    

 

 

 

Income before noninterest expense

  8,472      5,886      30,926      23,340   

NONINTEREST EXPENSE

Salaries and employee benefits

  3,830      3,393      14,565      11,772   

Occupancy expense and equipment expense, net

  638      519      2,428      1,899   

Bank shares tax

  56      111      299      280   

FDIC and OFI assessments

  167      99      531      344   

Legal fees

  36      20      125      126   

Data processing

  349      206      1,289      847   

Advertising

  89      89      330      320   

Stationery and supplies

  35      66      167      226   

Software amortization and expense

  156      126      537      406   

Professional fees

  130      156      475      355   

Telephone expense

  44      48      179      150   

Business entertainment

  32      31      135      86   

Impairment on investment in tax credit entity

  690      —        690      —     

Other operating expenses

  703      754      2,634      2,213   
  

 

 

   

 

 

    

 

 

    

 

 

 

Total noninterest expense

  6,955      5,618      24,384      19,024   
  

 

 

   

 

 

    

 

 

    

 

 

 

Income before income tax expense

  1,517      268      6,542      4,316   

Income tax (benefit) expense

  (491   90      1,145      1,148   
  

 

 

   

 

 

    

 

 

    

 

 

 

Net income

$ 2,008    $ 178    $ 5,397    $ 3,168   
  

 

 

   

 

 

    

 

 

    

 

 

 

EARNINGS PER SHARE

Basic earnings per share

$ 0.28    $ 0.05    $ 0.98    $ 0.86   
  

 

 

   

 

 

    

 

 

    

 

 

 

Diluted earnings per share

$ 0.27    $ 0.04    $ 0.93    $ 0.81   
  

 

 

   

 

 

    

 

 

    

 

 

 

Cash dividends declared per common share

$ 0.01    $ 0.01    $ 0.04    $ 0.05   
  

 

 

   

 

 

    

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

EARNINGS PER COMMON SHARE

(Amounts in thousands, except share data)

(Unaudited)

 

     Three months ended
December 31,
     Twelve months ended
December 31,
 
     2014      2013      2014      2013  

Net income available to common shareholders

   $ 2,008       $ 178       $ 5,397       $ 3,168   

Weighted average number of common shares outstanding – used in computation of basic earnings per common share

     7,213,416         3,900,752         5,533,514         3,667,929   

Effect of dilutive securities:

           

Restricted stock

     33,377         44,042         41,467         32,141   

Stock options

     22,811         28,531         22,811         29,773   

Stock warrants

     141,900         193,498         179,510         193,532   
  

 

 

    

 

 

    

 

 

    

 

 

 

Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share

  7,411,504      4,166,823      5,777,302      3,923,375   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share

$ 0.28    $ 0.05    $ 0.98    $ 0.86   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share

$ 0.27    $ 0.04    $ 0.93    $ 0.81   
  

 

 

    

 

 

    

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

                                  Twelve months ended
December 31,
 
    Q4 2014     Q3 2014     Q4 2013     Qtr/Qtr     Year/Year     2014     2013  

EARNINGS DATA

             

Total interest income

  $ 8,822      $ 8,182      $ 6,605        7.82     33.57   $ 31,369      $ 22,472   

Total interest expense

    1,245        1,182        1,002        5.33     24.25     4,675        3,460   
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Net interest income

    7,577        7,000        5,603        8.24     35.23     26,694        19,012   

Provision for loan losses

    430        505        686        -14.85     -37.32     1,628        1,026   

Total noninterest income

    1,325        1,959        969        -32.36     36.74     5,860        5,354   

Total noninterest expense

    6,955        6,313        5,618        10.17     23.80     24,384        19,024   
 

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Income before income taxes

    1,517        2,141        268        -29.15     466.04     6,542        4,316   

Income tax expense

    (491     699        90        -170.24     -645.56     1,145        1,148   

Net income

  $ 2,008      $ 1,442      $ 178        39.25     1028.09   $ 5,397      $ 3,168   

AVERAGE BALANCE SHEET DATA

             

Total assets

  $ 826,369      $ 762,330      $ 592,403        8.40     39.49   $ 734,977      $ 496,685   

Total interest-earning assets

    782,868        719,985        554,853        8.73     41.09     693,334        463,616   

Total loans

    675,305        619,356        483,504        9.03     39.67     601,238        405,997   

Total interest-bearing deposits

    553,603        523,075        432,043        5.84     28.14     515,433        363,907   

Total interest-bearing liabilities

    641,611        585,015        477,410        9.67     34.39     583,158        396,524   

Total deposits

    628,837        594,519        488,755        5.77     28.66     583,072        411,471   

Total shareholders’ equity

    102,781        100,068        55,214        2.71     86.15     79,371        51,070   

PER SHARE DATA

             

Basic earnings per share

  $ 0.28      $ 0.20      $ 0.05        40.00     513.60   $ 0.98      $ 0.86   

Diluted earnings per share

    0.27        0.20        0.04        35.00     532.05     0.93        0.81   

Book value per share

    14.24        14.08        14.06        1.14     1.28     14.24        14.06   

Tangible book value per share (1)

    13.79        13.64        13.24        1.10     4.15     13.79        13.24   

Common shares outstanding

    7,262,085        7,253,774        3,945,114        0.11     84.08     7,262,085        3,945,114   

PERFORMANCE RATIOS

             

Return on average assets

    0.96     0.75     0.12     28.00     700.00     0.73     0.64

Adjusted return on average assets (1)

    0.71     0.75     0.12     -5.12     497.76     0.66     0.50

Return on average equity

    7.75     5.72     1.28     35.49     505.47     6.80     6.10

Adjusted return on average equity (1)

    5.72     5.72     1.28     0.14     347.94     6.12     4.85

Net interest margin

    3.84     3.86     4.01     -0.52     -4.24     3.85     4.10

Net interest income to average assets

    3.64     3.64     3.75     0.00     -2.93     3.63     3.83

Noninterest expense to average assets

    3.34     3.29     3.76     1.52     -11.17     3.32     3.83

Efficiency ratio (1)

    78.13     70.47     85.46     10.87     -8.58     74.90     78.07

Adjusted efficiency ratio (1)

    70.38     70.47     85.46     -0.12     -17.65     72.78     80.02

Dividend payout ratio

    2.51     3.40     26.27     -26.18     -90.45     3.93     5.44

 

     Twelve months ended December 31,        
     2014     2013     Year/Year  

ASSET QUALITY RATIOS

      

Nonperforming assets to total assets

     0.69     0.79     -12.66

Nonperforming loans to loans

     0.54     0.30     80.00

Allowance for loan losses to total loans

     0.74     0.67     10.45

Allowance for loan losses to nonperforming loans

     138.61     227     -38.94

Net chargeoffs to average loans

     0.07     0.09     -22.22

CAPITAL RATIOS

      

Investar Holding Corporation:

      

Total equity to total assets

     11.76     8.74     34.55

Tangible equity to tangible assets

     11.43     8.27     38.21

Tier 1 capital to average assets

     12.61     9.53     32.32

Tier 1 capital to risk-weighted assets

     13.79     10.85     27.10

Total capital to risk-weighted assets

     14.41     11.51     25.20

Investar Bank:

      

Tier 1 capital to average assets

     9.00     9.50     -5.26

Tier 1 capital to risk-weighted assets

     9.86     10.83     -8.96

Total capital to risk-weighted assets

     10.48     11.48     -8.71

 

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


INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

     Three months ended December 31,  
     2014     2013  
     Average
Balance
    Interest
Income/
Expense
     Yield/ Rate     Average
Balance
    Interest
Income/
Expense
     Yield/ Rate  

Assets

              

Interest-earning assets:

              

Loans

   $ 675,305      $ 8,384         4.93   $ 483,504      $ 6,355         5.21

Securities:

              

Taxable

     79,354        322         1.61        47,679        155         1.29   

Tax-exempt

     11,508        100         3.45        14,830        87         2.33   

Interest-bearing balances with banks

     16,701        16         0.38        8,840        8         0.36   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-earning assets

  782,868      8,822      4.47      554,853      6,605      4.72   

Cash and due from banks

  5,306      6,029   

Intangible assets

  3,220      3,261   

Other assets

  39,427      31,052   

Allowance for loan losses

  (4,452   (2,792
  

 

 

        

 

 

      

Total assets

$ 826,369    $ 592,403   
  

 

 

        

 

 

      

Liabilities and shareholders’ equity

Interest-bearing liabilities:

Deposits:

Interest-bearing demand

$ 189,758    $ 294      0.61 $ 136,489    $ 218      0.63

Savings deposits

  54,192      92      0.67      51,106      90      0.70   

Time deposits

  309,653      749      0.96      244,448      612      0.99   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing deposits

  553,603      1,135      0.81      432,043      920      0.84   

Short-term borrowings

  41,816      18      0.17      10,108      3      0.12   

Long-term debt

  46,192      92      0.79      35,259      79      0.89   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

  641,611      1,245      0.77      477,410      1,002      0.83   

Noninterest-bearing deposits

  75,234      56,712   

Other liabilities

  6,743      3,067   

Stockholders’ equity

  102,781      55,214   
  

 

 

        

 

 

      

Total liability and stockholders’ equity

$ 826,369    $ 592,403   
  

 

 

   

 

 

      

 

 

   

 

 

    

Net interest income/net interest margin

$ 7,577      3.84 $ 5,603      4.01
    

 

 

    

 

 

     

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

     Twelve months ended December 31,  
     2014     2013  
     Average
Balance
    Interest
Income/
Expense
     Yield/ Rate     Average
Balance
    Interest
Income/
Expense
     Yield/ Rate  

Assets

              

Interest-earning assets:

              

Loans

   $ 601,238      $ 29,979         4.99   $ 405,997      $ 21,686         5.34

Securities:

              

Taxable

     66,384        945         1.42        39,957        414         1.04   

Tax-exempt

     12,652        394         3.11        14,685        354         2.41   

Interest-bearing balances with banks

     13,060        51         0.39        2,977        18         0.60   
  

 

 

   

 

 

      

 

 

   

 

 

    

 

 

 

Total interest-earning assets

  693,334      31,369      4.52      463,616      22,472      4.85   

Cash and due from banks

  5,668      7,285   

Intangible assets

  3,235      3,124   

Other assets

  36,617      25,397   

Allowance for loan losses

  (3,877   (2,737
  

 

 

        

 

 

      

Total assets

$ 734,977    $ 496,685   
  

 

 

        

 

 

      

Liabilities and shareholders’ equity

Interest-bearing liabilities:

Deposits:

Interest-bearing demand

$ 173,715    $ 1,078      0.62 $ 113,097    $ 726      0.64

Savings deposits

  52,881      361      0.68      42,774      299      0.70   

Time deposits

  288,837      2,834      0.98      208,036      2,179      1.05   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing deposits

  515,433      4,273      0.83      363,907      3,204      0.88   

Short-term borrowings

  28,349      54      0.19      7,627      12      0.16   

Long-term debt

  39,376      348      0.88      24,990      244      0.98   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

  583,158      4,675      0.80      396,524      3,460      0.87   

Noninterest-bearing deposits

  67,639      47,564   

Other liabilities

  4,809      1,527   

Stockholders’ equity

  79,371      51,070   
  

 

 

        

 

 

      

Total liability and stockholders’ equity

$ 734,977    $ 496,685   
  

 

 

   

 

 

      

 

 

   

 

 

    

Net interest income/net interest margin

$ 26,694      3.85 $ 19,012      4.10
    

 

 

    

 

 

     

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

 

     December 31,  
     2014     2013  

Tangible common equity

    

Total stockholder’s equity

   $ 103,384      $ 55,483   

Adjustments:

    

Goodwill

     2,684        2,684   

Core deposit intangible

     532        573   
  

 

 

   

 

 

 

Tangible common equity

   $ 100,168      $ 52,226   
  

 

 

   

 

 

 

Tangible assets

    

Total assets

   $ 879,354      $ 634,946   

Adjustments:

    

Goodwill

     2,684        2,684   

Core deposit intangible

     532        573   
  

 

 

   

 

 

 

Tangible assets

   $ 876,138      $ 631,689   
  

 

 

   

 

 

 

Common shares outstanding

     7,262,085        3,945,114   

Tangible equity to tangible assets

     11.43     8.27

Book value per common share

   $ 14.24      $ 14.06   

Tangible book value per common share

   $ 13.79      $ 13.24   


INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

 

          Three months ended
December 31,
    Three months ended
September 30,
    Twelve months ended
December 31,
 
          2014     2013     2014     2014     2013  

Net interest income

   (a)    $ 7,577      $ 5,603      $ 7,000      $ 26,694      $ 19,012   

Provision for loan losses

   (b)      430        686        505        1,628        1,026   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

        7,147        4,917        6,495        25,066        17,986   

Noninterest income

   (c)      1,325        969        1,959        5,860        5,354   

Bargain purchase gain

        —          —          —          —          (906
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted noninterest income

        1,325        969        1,959        5,860        4,448   

Adjusted income before noninterest expense

   (d)      8,472        5,886        8,454        30,926        22,434   

Total noninterest expense

   (e)      6,955        5,618        6,313        24,384        19,024   

Acquisition related expense

        —          —          —          —          (250

Impairment related to investment in tax credit entity

        (690     —          —          (690     —     
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted noninterest expense

   (f)      6,265        5,618        6,313        23,694        18,774   

Adjusted income before income tax expense

        2,207        268        2,141        7,232        3,660   

Adjusted income tax expense (1)

        724        90        699        2,372        1,184   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

        1,483        178        1,442        4,860        2,476   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share (GAAP)

      $ 0.27      $ 0.04      $ 0.20      $ 0.93      $ 0.81   

Bargain purchase gain

        —          —          —          —          (0.23

Acquisition related expense

        —          —          —          —          0.04   

Impairment related to investment in tax credit entity

        0.06        —          —          0.08        —     

Tax credit related to historical tax credit project

        (0.13     —          —          (0.16     —     
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted earnings per share

      $ 0.20      $ 0.04      $ 0.20      $ 0.85      $ 0.62   
     

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Efficiency ratio

   (e) / (a+c)      78.13     85.46     70.47     74.90     78.07

Adjusted efficiency ratio(2)

   (f) / (b+d)      70.38     85.46     70.47     72.78     80.02

Adjusted return on average assets (2)

        0.71     0.12     0.75     0.66     0.50

Adjusted return on average equity (2)

        5.72     1.28     5.72     6.12     4.85

Total average assets

      $ 826,369      $ 592,403      $ 762,330      $ 734,977      $ 496,685   

Total average stockholders’ equity

      $ 102,781      $ 55,214      $ 100,068      $ 79,371      $ 51,070   

 

(1) Income tax expense is calculated on the adjusted non-GAAP effective tax rate of 32.8% for the three and twelve month periods ended December 31, 2014. Income tax expense is calculated on the adjusted non-GAAP effective tax rate of 32.3% for the twelve month period ended December 31, 2013.
(2) Adjusted for the net effect of the investment in the tax credit entity for the three and twelve month periods ended December 31, 2014 and the impact of the bargain purchase gain and acquisition expenses incurred during the twelve month period ended December 31, 2013.