0001193125-15-150378 8-K 2 20150428 2.02 9.01 20150428 20150428 Investar Holding Corp 0001602658 6022 271560715 LA 1231 8-K 34 001-36522 15796498 7244 PERKINS ROAD BATON ROUGE LA 70808 225-227-2222 7244 PERKINS ROAD BATON ROUGE LA 70808 8-K 1 d916011d8k.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): April 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:

 

¨

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 April 28, 2015, Investar Holding Corporation issued a press release announcing its financial results for the quarter ended March 31, 2015. 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 April 28, 2015 announcing financial results for the quarter ended March 31, 2015.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

INVESTAR HOLDING CORPORATION

Date: April 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 April 28, 2015 announcing financial results for the quarter ended March 31, 2015.

EX-99.1 2 d916011dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

For Immediate Release

Investar Holding Corporation Announces 2015 First Quarter Results

BATON ROUGE, LA (April 28, 2015) – Investar Holding Corporation (NASDAQ: ISTR) (the “Company”), the holding company for Investar Bank, today announced financial results for the quarter ended March 31, 2015. For the quarter ended March 31, 2015, the Company reported net income of $2.0 million, or $0.27 per diluted share, compared to $0.9 million, or $0.21 per diluted share for the quarter ended March 31, 2014. This represents an increase of $1.1 million, or 122%, in net income. For the quarter ended March 31, 2015, net income and diluted earnings per share increased $0.5 million, or 31.5%, and $0.07, respectively, when compared to the quarter ended December 31, 2014, after adjusting for the net effect of an investment in a tax credit entity.

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

“We continue to grow into our staffing and facility infrastructure, allowing us to realize significant improvement in both return on assets and efficiency ratios. Noninterest expenses remained relatively flat compared to the latter half of 2014 with the exception of seasonal increases in benefit costs. We continued to make significant progress in the first quarter of 2015, growing both our commercial and industrial loan portfolio and noninterest bearing deposits. We believe growth in these areas increases the value of our franchise and will remain a primary focus.”

Performance Highlights

 

   

Increase in net income of $1.1 million, or 122%, compared to the first quarter of 2014.

 

   

Total noninterest bearing deposits were $84.4 million at March 31, 2015, an increase of $14.2 million, or 20%, when compared to December 31, 2014.

 

   

Commercial and industrial loans increased $4.6 million, or 9%, from December 31, 2014.

 

   

Return on average assets increased to 0.91% for the first quarter of 2015 compared to 0.55% for the first quarter of 2014.

 

   

Allowance for loan losses to total loans increased to 0.83% compared to 0.74% at December 31, 2014.

 

   

Efficiency ratio improved to 63.99% compared to 70.38% for the quarter ended December 31, 2014, after adjusting for the impairment on the investment in a tax credit entity.

 

   

Noninterest expense for the first quarter of 2015 was $6.4 million, an increase of only $0.1 million when compared to $6.3 million for the fourth quarter of 2014, after adjusting for the impairment on the investment in a tax credit entity.

 

   

Nonperforming loans to total loans improved to 0.47% at March 31, 2015 when compared to 0.54% at December 31, 2014.


Loans

Total loans were $646.4 million at March 31, 2015, an increase of $23.6 million, or 3.8%, from December 31, 2014.

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)  
     March 31, 2015      of Portfolio     December 31, 2014      of Portfolio     Amount     Percent  

Mortgage loans on real estate

              

Construction and development

   $ 73,971         11.5 %   $ 71,350         11.4 %   $ 2,621        3.7

1-4 Family

     139,787         21.6       137,519         22.1       2,268        1.6  

Multifamily

     19,219         3.0       17,458         2.8       1,761        10.1  

Farmland

     3,270         0.5       2,919         0.5       351        12.0  

Commercial real estate

              

Owner occupied

     124,208         19.2       119,668         19.2       4,540        3.8  

Nonowner occupied

     113,400         17.5       105,390         16.9       8,010        7.6  

Commercial and industrial

     58,803         9.1       54,187         8.7       4,616        8.5  

Consumer

     113,781         17.6       114,299         18.4       (518     (0.5 )

Total loans

     646,439         100     622,790         100 %     23,649        3.8

Loans held for sale

     64,313           103,396           (39,083     (37.8 )
  

 

 

      

 

 

      

 

 

   

 

 

 

Total gross loans

$ 710,752    $ 726,186    $ (15,434   (2.1 )% 
  

 

 

      

 

 

      

 

 

   

 

 

 

Consumer loans, including consumer loans held for sale, totaled $175.8 million at March 31, 2015, a decrease of $38.2 million, or 17.9% from $214.0 million at December 31, 2014. The decrease is mainly attributable to the $37.7 million decrease in the balance of consumer loans held for sale at March 31, 2015 when compared to December 31, 2014. Two consumer loan sales were postponed by the buyer from the fourth quarter of 2014 to the first quarter of 2015, therefore increasing the balance of consumer loans held for sale at December 31, 2014.

At March 31, 2015, 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 $183.0 million, an increase of $9.1 million, or 5.3%, compared to the business lending portfolio of $173.9 million at December 31, 2014.

Management continues to monitor the Company’s loan portfolio for exposure, directly or indirectly, to the potential negative impacts from the fluctuation in oil and gas prices. Less than 1% of the total loan portfolio remains directly related to the energy sector. At March 31, 2015, none of these loans were past due. At this time, management does not anticipate that decreases in oil and gas prices will 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 allowance for loan losses.

The provision for loan loss expense was $0.7 million for the first quarter of 2015, an increase of $0.5 million compared to the first quarter of 2014. The allowance for loan losses was $5.4 million, or 178.42% and 0.83% of nonperforming loans and total loans, respectively, at March 31, 2015, compared to $4.6 million, or 138.61% and 0.74% of nonperforming loans and total loans, respectively, at December 31, 2014.


Deposits

Total deposits at March 31, 2015 were $698.9 million, an increase of $70.8 million, or 11.3%, from December 31, 2014. The increase in total deposits was driven primarily by an increase of $14.2 million, or 20.2%, in noninterest bearing demand deposits, an increase in NOW accounts of $28.5 million, or 24.5%, and an increase in time deposits of $19.4 million, or 6.3%, from December 31, 2014. The Company’s deposit cross sell strategy, as well as management’s focus on growing the commercial and industrial loan portfolio and bringing in related deposits, continues to positively 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)  
     March 31, 2015      of Portfolio     December 31, 2014      of Portfolio     Amount      Percent  

Noninterest-bearing demand deposits

   $ 84,402         12.1   $ 70,217         11.2   $ 14,185         20.2

NOW accounts

     145,181         20.7        116,644         18.6        28,537         24.5   

Money market deposit accounts

     85,024         12.2        77,589         12.3        7,435         9.6   

Savings accounts

     54,533         7.8        53,332         8.5        1,201         2.3   

Time deposits

     329,752         47.2        310,336         49.4        19,416         6.3   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Total deposits

$ 698,892      100 $ 628,118      100 $ 70,774      11.3
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

 

Net Interest Income

Net interest income for the first quarter of 2015 totaled $7.5 million, an increase of $1.6 million, or 27.8%, from the first quarter of 2014. The increase was a direct result of continued growth of the Company’s loan portfolio with an increase in net interest income of $2.1 million due to an increase in volume offset by a $0.5 million decrease related to a reduction in yield when compared to the first quarter of 2014.

The Company’s net interest margin was 3.71% for the quarter ended March 31, 2015 compared to 3.84% for the fourth quarter of 2014 and 3.93% for the first quarter of 2014. The Company now sells, and plans to continue to sell, the majority of the consumer loans that it originates. Consumer loan fees previously recognized as a component of interest income are now included in noninterest income, impacting the yield realized on the consumer loan portfolio. The yield on interest earning assets was 4.35% for the quarter ended March 31, 2015 compared to 4.47% for the fourth quarter of 2014 and 4.65% for the first quarter of 2014. Including consumer loan fees in interest income in the current quarter would result in a net interest margin and yield on interest earning assets of 3.82% and 4.46%, respectively, which is comparable to the net interest margin and yield on interest earning assets of 3.84% and 4.47%, respectively, recognized in the fourth quarter of 2014. The cost of deposits increased two basis points when comparing the first quarter of 2015 to the fourth quarter of 2014 and declined one basis point when comparing the first quarter of 2015 to the first quarter of 2014.

Noninterest Income

Noninterest income for the first quarter of 2015 totaled $2.5 million, an increase of $1.5 million, or 138.3%, compared to the first quarter of 2014. The increase resulted primarily from the $1.1 million increase in the gain on sale of loans. For the first quarter of 2015, $1.2 million and $0.5 million was recognized as gain on sales of our consumer and mortgage loans, respectively. Fee income on loans held for sale increased $0.2 million primarily as a result of the change in strategy for our consumer loan portfolio, discussed above. Prior to this shift in strategy, consumer loan fees were included in interest income.

Noninterest Expense

Noninterest expense for the first quarter of 2015 totaled $6.4 million, an increase of $1.0 million, or 19.3%, compared to the first quarter of 2014. The increase in noninterest expense is primarily due to the $0.4 million increase in salaries and employee benefits and the $0.3 million increase in other operating expenses, both of which are primarily attributable to the opening of the Highland Road branch in Baton Rouge, Louisiana on August 1, 2014 and the addition of 10 full-time equivalent employees.


Basic Earnings Per Share and Diluted Earnings Per Share

The Company reported both basic earnings per share and diluted earnings per share of $0.27 for the three months ended March 31, 2015, an increase of $0.04 and $0.06, respectively, when compared to basic and diluted earnings per share for the three months ended March 31, 2014.

Taxes

The Company recorded income tax expense of $1.0 million for the quarter ended March 31, 2015, which equates to an effective tax rate of 33.1%.

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 March 31, 2015, the Company had 177 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,” “adjusted return on equity,” and “adjusted net income.” 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 Corporation

Chris Hufft

Chief Accounting Officer

(225) 227-2215

Chris.Hufft@investarbank.com


INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 

     March 31, 2015     December 31, 2014  
     (Unaudited)        

ASSETS

    

Cash and due from banks

   $ 6,879      $ 5,519   

Interest-bearing balances due from other banks

     13,617        13,493   

Federal funds sold

     170        500   
  

 

 

   

 

 

 

Cash and cash equivalents

  20,666      19,512   

Available for sale securities at fair value (amortized cost of $75,736 and $69,838, respectively)

  76,617      70,299   

Held to maturity securities at amortized cost (estimated fair value of $22,321 and $22,301, respectively)

  22,369      22,519   

Loans held for sale

  64,313      103,396   

Loans, net of allowance for loan losses of $5,379 and $4,630, respectively

  641,060      618,160   

Other equity securities

  1,839      5,566   

Bank premises and equipment, net of accumulated depreciation of $4,310 and $3,964, respectively

  29,136      28,538   

Other real estate owned, net

  2,568      2,735   

Accrued interest receivable

  2,316      2,435   

Deferred tax asset

  2,260      2,906   

Goodwill and other intangible assets

  3,206      3,216   

Other assets

  1,730      1,882   
  

 

 

   

 

 

 

Total assets

$ 868,080    $ 881,164   
  

 

 

   

 

 

 

LIABILITIES

Deposits

Noninterest-bearing

$ 84,402    $ 70,217   

Interest-bearing

  614,490      557,901   
  

 

 

   

 

 

 

Total deposits

  698,892      628,118   

Advances from Federal Home Loan Bank

  34,865      125,785   

Repurchase agreements

  12,878      12,293   

Note payable

  3,609      3,609   

Deferred tax liability

  1,826      1,810   

Accrued taxes and other liabilities

  10,623      6,165   
  

 

 

   

 

 

 

Total liabilities

  762,693      777,780   

STOCKHOLDERS’ EQUITY

Preferred stock, $1.00 par value per share; 5,000,000 shares authorized

  —        —     

Common stock, $1.00 par value per share; 40,000,000 shares authorized; 7,268,488 and 7,262,085 shares issued and outstanding, respectively

  7,271      7,264   

Treasury stock

  (25   (23

Surplus

  84,283      84,213   

Retained earnings

  13,705      11,809   

Accumulated other comprehensive income

  153      121   
  

 

 

   

 

 

 

Total stockholders’ equity

  105,387      103,384   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

$ 868,080    $ 881,164   
  

 

 

   

 

 

 


INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share data)

(Unaudited)

 

     Three months ended
March 31,
 
     2015     2014  

INTEREST INCOME

    

Interest and fees on loans

   $ 8,298      $ 6,675   

Interest on investment securities

     485        272   

Other interest income

     17        10   
  

 

 

   

 

 

 

Total interest income

  8,800      6,957   

INTEREST EXPENSE

Interest on deposits

  1,192      1,003   

Interest on borrowings

  109      87   
  

 

 

   

 

 

 

Total interest expense

  1,301      1,090   
  

 

 

   

 

 

 

Net interest income

  7,499      5,867   

Provision for loan losses

  700      245   
  

 

 

   

 

 

 

Net interest income after provision for loan losses

  6,799      5,622   

NONINTEREST INCOME

Service charges on deposit accounts

  94      63   

Gain on sale of investment securities, net

  —        116   

Loss on sale of real estate owned, net

  (1   (3

Gain on sale of loans, net

  1,731      624   

Fee income on loans held for sale, net

  300      76   

Other operating income

  416      190   
  

 

 

   

 

 

 

Total noninterest income

  2,540      1,066   
  

 

 

   

 

 

 

Income before noninterest expense

  9,339      6,688   

NONINTEREST EXPENSE

Depreciation and amortization

  357      303   

Salaries and employee benefits

  3,908      3,471   

Occupancy

  213      224   

Data processing

  340      278   

Marketing

  58      76   

Professional fees

  262      59   

Other operating expenses

  1,286      974   
  

 

 

   

 

 

 

Total noninterest expense

  6,424      5,385   
  

 

 

   

 

 

 

Income before income tax expense

  2,915      1,303   

Income tax expense

  965      424   
  

 

 

   

 

 

 

Net income

$ 1,950    $ 879   
  

 

 

   

 

 

 

EARNINGS PER SHARE

Basic earnings per share

$ 0.27    $ 0.23   
  

 

 

   

 

 

 

Diluted earnings per share

$ 0.27    $ 0.21   
  

 

 

   

 

 

 

Cash dividends declared per common share

$ 0.01    $ 0.01   
  

 

 

   

 

 

 


INVESTAR HOLDING CORPORATION

EARNINGS PER COMMON SHARE

(Amounts in thousands, except share data)

(Unaudited)

 

     Three months ended
March 31,
 
     2015      2014  

Net income available to common shareholders

   $ 1,950       $ 879   

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

     7,219,235         3,901,064   

Effect of dilutive securities:

     

Restricted stock

     12,738         44,049   

Stock options

     9,961         22,810   

Stock warrants

     8,921         193,498   
  

 

 

    

 

 

 

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

  7,250,855      4,161,421   
  

 

 

    

 

 

 

Basic earnings per share

$ 0.27    $ 0.23   
  

 

 

    

 

 

 

Diluted earnings per share

$ 0.27    $ 0.21   
  

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

     Q1 2015     Q4 2014     Q1 2014     Qtr/Qtr     Year/Year  

EARNINGS DATA

          

Total interest income

   $ 8,800      $ 8,822      $ 6,957        -0.25     26.49

Total interest expense

     1,301        1,245        1,090        4.50     19.36
  

 

 

   

 

 

   

 

 

     

Net interest income

  7,499      7,577      5,867      -1.03   27.82

Provision for loan losses

  700      430      245      62.79   185.71

Total noninterest income

  2,540      1,325      1,066      91.70   138.27

Total noninterest expense

  6,424      6,955      5,385      -7.63   19.29
  

 

 

   

 

 

   

 

 

     

Income before income taxes

  2,915      1,517      1,303      92.16   123.71

Income tax expense (benefit)

  965      (491   424      -296.54   127.59

Net income

$ 1,950    $ 2,008    $ 879      -2.89   121.84

AVERAGE BALANCE SHEET DATA

Total assets

$ 869,008    $ 826,369    $ 651,277      5.16   33.43

Total interest-earning assets

  819,876      782,868      606,160      4.73   35.26

Total loans

  714,338      675,305      532,547      5.78   34.14

Total interest-bearing deposits

  584,697      553,603      483,474      5.62   20.94

Total interest-bearing liabilities

  679,891      641,611      532,705      5.97   27.63

Total deposits

  661,923      628,837      542,640      5.26   21.98

Total shareholders’ equity

  104,916      102,781      56,441      2.08   85.89

PER SHARE DATA

Basic earnings per share

$ 0.27    $ 0.28    $ 0.23      -3.57   17.39

Diluted earnings per share

  0.27      0.27      0.21      0.00   28.57

Book value per share

  14.50      14.24      14.32      1.83   1.26

Tangible book value per share (1)

  14.06      13.79      13.50      1.96   4.15

Common shares outstanding

  7,268,488      7,262,085      3,945,029      0.09   84.24

PERFORMANCE RATIOS

Return on average assets

  0.91   0.96   0.55   -5.21   65.45

Adjusted return on average assets (1)

  0.91   0.71   0.55   28.17   65.45

Return on average equity

  7.54   7.75   6.32   -2.71   19.30

Adjusted return on average equity (1)

  7.54   5.72   6.32   31.82   19.30

Net interest margin

  3.71   3.84   3.93   -3.39   -5.60

Net interest income to average assets

  3.50   3.64   3.65   -3.85   -4.11

Noninterest expense to average assets

  3.00   3.34   3.31   -10.18   -9.37

Efficiency ratio (1)

  63.99   78.13   77.67   -18.10   -17.61

Adjusted efficiency ratio (1)

  63.99   70.38   77.67   -9.08   -17.61

Dividend payout ratio

  2.74   2.51   4.44   9.16   -38.29

 

     Three months ended March 31,        
     2015     2014     Variance  

ASSET QUALITY RATIOS

      

Nonperforming assets to total assets

     0.64     0.79     -18.99

Nonperforming loans to loans

     0.47     0.31     51.61

Allowance for loan losses to total loans

     0.83     0.67     23.88

Allowance for loan losses to nonperforming loans

     178.42     206.14     -13.45

Net chargeoffs to average loans

     -0.01     0.02     -150.00

CAPITAL RATIOS

      

Investar Holding Corporation:

      

Total equity to total assets

     12.14     8.38     44.87

Tangible equity to tangible assets

     11.81     7.94     48.74

Tier 1 leverage ratio(2)

     12.25     8.80     39.20

Common equity tier 1 capital ratio(2)

     13.48     NA        NA   

Tier 1 capital ratio(2)

     13.94     10.21     36.53

Total capital ratio(2)

     14.65     10.84     35.15

Investar Bank:

      

Tier 1 leverage ratio(2)

     11.80     8.75     34.86

Common equity tier 1 capital ratio(2)

     13.43     NA        NA   

Tier 1 capital ratio(2)

     13.43     10.15     32.32

Total capital ratio(2)

     14.14     10.78     31.17

 

(1) 

Non-GAAP financial measures. See reconciliation.

(2) 

Beginning January 1, 2015, the capital ratios for the Company and Bank are calculated using the Basel III framework. Capital ratios for prior periods were calculated using the Basel I framework. The common equity tier 1 (CET1) capital ratio is a new ratio introduced under the Basel III framework.

 


INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

     Three months ended March 31,  
     2015     2014  
     Average
Balance
    Interest
Income/
Expense
     Yield/ Rate     Average
Balance
    Interest
Income/
Expense
     Yield/ Rate  

Assets

              

Interest-earning assets:

              

Loans

   $ 714,338      $ 8,298         4.71   $ 532,547      $ 6,675         5.08

Securities:

              

Taxable

     68,528        366         2.17        53,607        191         1.44   

Tax-exempt

     18,979        119         2.54        14,194        81         2.31   

Interest-bearing balances with banks

     18,031        17         0.38        5,812        10         0.70   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-earning assets

  819,876      8,800      4.35      606,160      6,957      4.65   

Cash and due from banks

  5,689      10,865   

Intangible assets

  3,209      3,251   

Other assets

  45,256      34,397   

Allowance for loan losses

  (5,022   (3,396
  

 

 

        

 

 

      

Total assets

$ 869,008    $ 651,277   
  

 

 

        

 

 

      

Liabilities and shareholders’ equity

Interest-bearing liabilities:

Deposits:

Interest-bearing demand

$ 204,728    $ 310      0.61 $ 158,712    $ 242      0.62

Savings deposits

  55,729      94      0.68      51,927      89      0.70   

Time deposits

  324,240      788      0.99      272,835      672      1.00   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing deposits

  584,697      1,192      0.83      483,474      1,003      0.84   

Short-term borrowings

  53,404      24      0.18      15,098      4      0.11   

Long-term debt

  41,790      85      0.82      34,133      83      0.99   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

  679,891      1,301      0.78      532,705      1,090      0.83   

Noninterest-bearing deposits

  77,226      59,166   

Other liabilities

  6,975      2,965   

Stockholders’ equity

  104,916      56,441   
  

 

 

        

 

 

      

Total liability and stockholders’ equity

$ 869,008    $ 651,277   
  

 

 

   

 

 

      

 

 

   

 

 

    

Net interest income/net interest margin

$ 7,499      3.71 $ 5,867      3.93
    

 

 

    

 

 

     

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

 

     March 31,     December 31,  
     2015     2014     2014  

Tangible common equity

      

Total stockholder’s equity

   $ 105,387      $ 56,498      $ 103,384   

Adjustments:

      

Goodwill

     2,684        2,684        2,684   

Core deposit intangible

     522        563        532   
  

 

 

   

 

 

   

 

 

 

Tangible common equity

$ 102,181    $ 53,251    $ 100,168   
  

 

 

   

 

 

   

 

 

 

Tangible assets

Total assets

$ 868,080    $ 673,964    $ 879,354   

Adjustments:

Goodwill

  2,684      2,684      2,684   

Core deposit intangible

  522      563      532   
  

 

 

   

 

 

   

 

 

 

Tangible assets

$ 864,874    $ 670,717    $ 876,138   
  

 

 

   

 

 

   

 

 

 

Common shares outstanding

  7,268,488      3,945,029      7,262,085   

Tangible equity to tangible assets

  11.81   7.94   11.43

Book value per common share

$ 14.50    $ 14.32    $ 14.24   

Tangible book value per common share

$ 14.06    $ 13.50    $ 13.79   


INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

 

         Three months ended     Three months ended  
         March 31,     December 31,  
         2015     2014     2014  

Net interest income

   (a)     7,499      $ 5,867      $ 7,577   

Provision for loan losses

   (b)     700        245        430   
    

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

  6,799      5,622      7,147   

Noninterest income

(c)   2,540      1,066      1,325   

Adjusted income before noninterest expense

(d)   9,339      6,688      8,472   

Total noninterest expense

(e)   6,424      5,385      6,955   

Impairment related to investment in tax credit entity

  —        —        (690
    

 

 

   

 

 

   

 

 

 

Adjusted noninterest expense

(f)   6,424      5,385      6,265   

Adjusted income before income tax expense

  2,915      1,303      2,207   

Adjusted income tax expense (1)

  965      424      724   
    

 

 

   

 

 

   

 

 

 

Adjusted net income

  1,950      879      1,483   
    

 

 

   

 

 

   

 

 

 

Diluted earnings per share (GAAP)

$ 0.27    $ 0.21    $ 0.27   

Impairment related to investment in tax credit entity

  —        —        0.06   

Tax credit related to historical tax credit project

  —        —        (0.13
    

 

 

   

 

 

   

 

 

 

Adjusted diluted earnings per share

$ 0.27    $ 0.21    $ 0.20   
    

 

 

   

 

 

   

 

 

 

Efficiency ratio

(e) / (a+c)   63.99   77.67   78.13

Adjusted efficiency ratio(2)

(f) / (b+d)   63.99   77.67   70.38

Adjusted return on average assets (2)

  0.91   0.55   0.71

Adjusted return on average equity (2)

  7.54   6.32   5.72

Total average assets

$ 714,338    $ 651,277    $ 826,369   

Total average stockholders’ equity

$ 104,916    $ 56,441    $ 102,781   

 

(1) 

Income tax expense is calculated on the adjusted non-GAAP effective tax rate of 32.8% for the three months ended December 31, 2014.

(2) 

Adjusted for the net effect of the investment in the tax credit entity for the three months ended December 31, 2014.