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, 2016

 

 

 

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:

 

o

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

o

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o

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, 2016, Investar Holding Corporation issued a press release announcing its financial results for the quarter ended December 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 January 28, 2016 announcing financial results for the quarter ended December 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: January 28, 2016

 

 

 

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, 2016 announcing financial results for the quarter ended December 31, 2015.

 

Exhibit 99.1

For Immediate Release

 

Investar Holding Corporation Announces 2015 Fourth Quarter Results

 

BATON ROUGE, LA (January 28, 2016) – 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, 2015. For the quarter ended December 31, 2015, the Company reported net income of $1.5 million, or $0.20 per diluted share, compared to $2.0 million, or $0.27 per diluted share for the quarter ended December 31, 2014. This represents a decrease of $0.5 million, or 27.6%, in net income which can primarily be attributed to a tax credit realized by the Company in the fourth quarter of 2014.

 

Core earnings, a non-GAAP measure which excludes the after-tax impact of securities gains and losses, gains and losses on the sale of other real estate owned, and other nonrecurring revenue and costs recorded for the period, were $1.5 million, or $0.21 per diluted share, for the quarter ended December 31, 2015 compared to core earnings of $1.4 million, or $0.19 per diluted share, for the quarter ended December 31, 2014. See calculation of core earnings on the Reconciliation of Non-GAAP Financial Measures.

 

During the quarter, the Bank announced that it was exiting the indirect auto loan origination business. The Bank discontinued accepting indirect auto loan applications on December 31, 2015, but continued to process and fund applications that were accepted on or before that date. In connection with the discontinuation of the Bank’s indirect auto loan origination business, the Bank incurred exit costs of approximately $145,000, consisting of $76,000 of severance and $69,000 of contract termination costs.

 

The Bank intends to sell the balance of indirect auto loans classified as held for sale as of year-end. Subsequent to December 31, 2015, the Company has recognized $0.3 million in gain on sale of loans from sales of its indirect auto loans.

 

Additionally, during the fourth quarter of 2015, the Company realized unfavorable healthcare claims experience in its self-insured health plan maintained for its employees resulting in additional benefits expense of approximately $0.3 million when compared to the third quarter of 2015. The Company believes this experience was unusual and does not expect the high level of claims to continue.

 

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

 

“We remain focused on growing our franchise and delivering value to our shareholders. We were pleased with our earnings for the year and excited to have met our internal growth targets for both total loans and noninterest-bearing deposits. Credit quality remains strong and we will continue to focus our efforts on making quality credit decisions.

 

We took proactive steps during the quarter to better position the Company moving in to 2016 by hiring three additional commercial lenders while making the strategic decision to exit the indirect auto loan origination business. The decision was based on the operating performance of the indirect auto loan origination business unit and our desire to focus resources on relationship banking opportunities. We believe the shift from transactional banking to relationship banking will enhance value for our shareholders. We intend to remain focused on smart growth through the recent addition of quality commercial lenders and the continued bank-wide focus on growing noninterest-bearing deposits.”

 

 

Fourth Quarter Highlights

 

·

Total loans, excluding loans held for sale, increased $34.9 million, or 4.9%, compared to September 30, 2015, and increased $122.7 million, or 19.7%, compared to December 31, 2014 to $745.4 million at December 31, 2015.

 

·

Commercial and industrial loans at December 31, 2015 increased $2.3 million, or 3.4%, compared to September 30, 2015 and increased $15.8 million, or 29.1%, compared to December 31, 2014 to $70.0 million at December 31, 2015.

 

·

Three experienced commercial lenders were hired in the fourth quarter as the Company focuses on growing its commercial loan portfolio.

 

·

Nonperforming loans to total loans decreased to 0.32% at December 31, 2015 compared to 0.37% at September 30, 2015 and 0.54% at December 31, 2014.

 

·

Allowance for loan losses to nonperforming loans increased to 254.16% at December 31, 2015 compared to 226.43% at September 30, 2015 and 138.61% at December 31, 2014.

 

·

Other real estate owned decreased $0.5 million, or 38.4%, to $0.7 million compared to $1.2 million at September 30, 2015 and decreased $2.0 million, or 73.5%, compared to $2.7 million at December 31, 2014.

 

·

Total noninterest-bearing deposits were $90.4 million at December 31, 2015, an increase of $20.2 million, or 28.8%, compared to December 31, 2014.

 


Loans

 

Total loans were $745.4 million at December 31, 2015, an increase of $122.7 million, or 19.7%, 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)

 

 

 

December 31, 2015

 

 

of Portfolio

 

 

December 31, 2014

 

 

of Portfolio

 

 

Amount

 

 

Percent

 

Mortgage loans on real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and development

 

$

81,863

 

 

 

11.0

%

 

$

71,350

 

 

 

11.4

%

 

$

10,513

 

 

 

14.7

%

1-4 Family

 

 

156,300

 

 

 

21.0

 

 

 

137,519

 

 

 

22.1

 

 

 

18,781

 

 

 

13.7

 

Multifamily

 

 

29,694

 

 

 

4.0

 

 

 

17,458

 

 

 

2.8

 

 

 

12,236

 

 

 

70.1

 

Farmland

 

 

2,955

 

 

 

0.4

 

 

 

2,919

 

 

 

0.5

 

 

 

36

 

 

 

1.2

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner-occupied

 

 

137,752

 

 

 

18.5

 

 

 

119,668

 

 

 

19.2

 

 

 

18,084

 

 

 

15.1

 

Nonowner-occupied

 

 

150,831

 

 

 

20.2

 

 

 

105,390

 

 

 

16.9

 

 

 

45,441

 

 

 

43.1

 

Commercial and industrial

 

 

69,961

 

 

 

9.4

 

 

 

54,187

 

 

 

8.7

 

 

 

15,774

 

 

 

29.1

 

Consumer

 

 

116,085

 

 

 

15.5

 

 

 

114,299

 

 

 

18.4

 

 

 

1,786

 

 

 

1.6

 

Total loans

 

 

745,441

 

 

 

100

%

 

 

622,790

 

 

 

100

%

 

 

122,651

 

 

 

19.7

%

Loans held for sale

 

 

80,509

 

 

 

 

 

 

 

103,396

 

 

 

 

 

 

 

(22,887

)

 

 

(22.1

)

Total gross loans

 

$

825,950

 

 

 

 

 

 

$

726,186

 

 

 

 

 

 

$

99,764

 

 

 

13.7

%

 

Consumer loans, including consumer loans held for sale, totaled $196.0 million at December 31, 2015, a decrease of $18.0 million, or 8.4% from $214.0 million at December 31, 2014. The decrease is mainly attributable to the $19.8 million decrease in the balance of consumer loans held for sale at December 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. In addition, in November the Company announced that the Bank will exit the indirect auto loan origination business but would be accepting indirect auto loan applications through December 31, 2015. Our impending exit from the business negatively impacted the volume of loans originated for sale in the fourth quarter of 2015 when compared to prior quarters.

 

At December 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 $207.7 million, an increase of $33.8 million, or 19.5%, 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 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 $0.4 million for the fourth quarter of both 2015 and 2014. The allowance for loan losses was $6.1 million, or 254.16% and 0.82% of nonperforming loans and total loans, respectively, at December 31, 2015, compared to $4.6 million, or 138.61% and 0.74% of nonperforming loans and total loans, respectively, at December 31, 2014. The allowance for loan losses plus the fair value marks on acquired loans was 0.91% of total loans at December 31, 2015 compared to 0.88% at December 31, 2014. Nonperforming loans to total loans improved to 0.32% at December 31, 2015 compared to 0.54% at December 31, 2014.

 

 

Deposits

 

Total deposits at December 31, 2015 were $737.4 million, an increase of $109.3 million, or 17.4%, from December 31, 2014. The increase in total deposits was driven primarily by an increase in noninterest-bearing demand deposits of $20.2 million, or 28.8%, an increase in NOW accounts of $23.9 million, or 20.5%, and an increase in time deposits of $46.3 million, or 14.9%, from December 31, 2014. The Company’s focus on relationship banking, including our 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)

 

 

 

December 31, 2015

 

 

of Portfolio

 

 

December 31, 2014

 

 

of Portfolio

 

 

Amount

 

 

Percent

 

Noninterest-bearing demand deposits

 

$

90,447

 

 

 

12.3

%

 

$

70,217

 

 

 

11.2

%

 

$

20,230

 

 

 

28.8

%

NOW accounts

 

 

140,503

 

 

 

19.0

 

 

 

116,644

 

 

18.6

 

 

 

23,859

 

 

 

20.5

 

Money market deposit accounts

 

 

96,113

 

 

 

13.0

 

 

 

77,589

 

 

12.3

 

 

 

18,524

 

 

 

23.9

 

Savings accounts

 

 

53,735

 

 

7.3

 

 

 

53,332

 

 

8.5

 

 

 

403

 

 

 

0.8

 

Time deposits

 

 

356,608

 

 

48.4

 

 

 

310,336

 

 

49.4

 

 

 

46,272

 

 

 

14.9

 

Total deposits

 

$

737,406

 

 

 

100

%

 

$

628,118

 

 

 

100

%

 

$

109,288

 

 

 

17.4

%

 

 

Net Interest Income

 

Net interest income for the fourth quarter of 2015 totaled $8.2 million, an increase of $0.3 million, or 3.5%, compared to the third quarter of 2015, and an increase of $0.6 million, or 8.6%, compared to the fourth 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 $1.4 million due to an increase in volume offset by a $0.8 million decrease related to a reduction in yield compared to the fourth quarter of 2014.

 

The Company’s net interest margin was 3.53% for the quarter ended December 31 , 2015 compared to 3.52% for the third quarter of 2015 and 3.84% for the fourth quarter of 2014. The yield on interest-earning assets was 4.24% for the quarter ended December 31 , 2015 compared to 4.20% for the third quarter of 2015 and 4.47% for the fourth quarter of 2014. The decrease in both the net interest margin and yield on interest-earning assets compared to the fourth quarter of 2014 can be attributed to the consumer loan portfolio. The consumer loan portfolio primarily consists of indirect auto loans and has experienced margin compression related to its current originations.

 

The cost of deposits increased 1 basis point when comparing the fourth quarter of 2015 to the third quarter of 2015, and increased 5 basis points when comparing the fourth quarter of 2015 to the fourth quarter of 2014.

 

 

Noninterest Income

 

Noninterest income for the fourth quarter of 2015 totaled $1.6 million, a decrease of $0.6 million, or 27.5%, compared to the third quarter of 2015, and an increase of $0.2 million, or 18.6%, compared to the fourth quarter of 2014. The decrease in noninterest income compared to the third quarter of 2015 is mainly attributable to the $0.5 million decrease in gain on sale of loans related to the timing of loan sales.

 

The following table sets forth the composition of the Company’s gain on sale of loans for the time periods indicated (dollars in thousands):

 

 

Q4 2015

 

 

Q3 2015

 

 

Q4 2014

 

 

Qtr/Qtr

 

 

Year/Year

 

Gain on sale of loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer

 

$

327

 

 

$

705

 

 

$

226

 

 

 

-54

%

 

 

45

%

Mortgage

 

 

210

 

 

 

318

 

 

 

422

 

 

 

-34

%

 

 

-50

%

Total

 

 

537

 

 

 

1,023

 

 

 

648

 

 

 

-48

%

 

 

-17

%

 

The increase in noninterest income from the fourth quarter of 2014 resulted primarily from the $0.3 million increase in other operating income, offset by a $0.1 million decrease in gain on sale loans. The increase in other operating income is mainly attributable to the $0.3 million increase in servicing fees, a direct result of the growth in the Company’s servicing portfolio from consumer loan sales.

 

Core noninterest income, which excludes the gains and losses on the sales of investment securities and other real estate owned, was $1.5 million for the fourth quarter of 2015, a decrease of $0.5 million, or 23.5%, compared to $2.0 million for the third quarter of 2015, and an increase of $0.3 million, or 24.0%, compared to $1.2 million for the fourth quarter of 2014.

 

Noninterest Expense

Noninterest expense for the fourth quarter of 2015 totaled $7.2 million, an increase of $0.2 million, or 3.1%, compared to the third quarter of 2015, and an increase of $0.3 million, or 4.0%, compared to the fourth quarter of 2014. The increase in noninterest expense from the fourth quarter of 2014 is primarily due to the $0.5 million increase in salaries and employee benefits and the $0.1 million increase in both other operating expenses and professional fees, all of which are mainly attributable to the continued growth of the


Company. Furthermore , t he Company provides health insurance to its employees through a sel f-insured plan and realiz ed unfavorable health care claims experience during the fourth quarter of 2015 resulting in additional benefits expense of approximately $0.3 million.

 

During the fourth quarter of 2015, the Company incurred nonrecurring exit costs of approximately $145,000. These costs included severance, which contributed to the $0.5 million increase in salaries and benefits discussed above, and other expenses related to the exit from the indirect auto loan origination business, announced in November 2015. Core noninterest expense, which excludes the impact of these nonrecurring costs, was $7.1 million for the fourth quarter of 2015, an increase of $0.5 million, or 6.7%, compared to $6.6 million in the third quarter of 2015, and an increase of $0.8 million, or 13.1%, compared to the fourth quarter of 2014.

 

 

Basic Earnings Per Share and Diluted Earnings Per Share

 

The Company reported both basic and diluted earnings per share of $0.20 for the three months ended December 31 , 2015, a decrease of $0.08 and $0.07, respectively, compared to basic and diluted earnings per share of $0.28 and $0.27, respectively, for the three months ended December 31, 2014.

 

Core basic and diluted earnings per share were $0.21 for the three months ended December 31, 2015, an increase of $0.02 compared to core basic and diluted earnings per share of $0.19 for the three months ended December 31, 2014.

 

 

Taxes

 

The Company recorded income tax expense of $0.7 million for the quarter ended December 31 , 2015, which equates to an effective tax rate of 33.9%.

 

 

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 , 2015, the Company had 168 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,” “tangible book value per common share,” “efficiency ratio,” “core noninterest income,” “core earnings before noninterest expense,” “core noninterest expense,” “core income tax expense,” “core earnings,” “core efficiency ratio,” “core return on average assets,” “core return on average equity,” “core basic earnings per share,” and “core diluted earnings per share.” 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 ie w 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;

 

o ur ab i li ty to ac hi eve o rg a n ic loan a n d dep o sit g r ow t h , a n d th e comp o s i ti o n o f t ha t g r ow t h ;

 

changes (or the lack of c hang e s) in inter e st rates, yield curves and intere s t rate spread relationships that affect our loan and de p o sit pric i ng ;

 

t h e exte n t o f co n ti n ui n g cl i e n t de ma n d f o r th e h ig h leve l o f pe rs onal i ze d se r vic e t ha t i s a ke y e l emen t o f ou r ba n ki n g

approa c h a s well as our abili t y to execute our strate g y general ly ;

o ur de p e nde n c e on ou r man agement team, and our abili t y to attract and retain q u al i f ied personnel;

 

cha n ge s i n th e qua l it y o r composi t io n o f ou r l o a n or i nvestmen t po r t f ol i os , inc l ud i n g a d ve r s e de vel o pment s i n b o r r o w e r i n dustries or i n the re p ay ment ab i li t y of i n di v id u a l bo r r o wers;

 

inaccuracy of the assumptions and estimat e s we make in establishing reserves for p r obable loan lo s ses and other estimates;

the concentration of ou r b u s i ne s s wi t hi n o u r ge og raphic areas of operat i on in L o uisia n a; and

concentration of credit exposure.

 

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, 2014, 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

 

CONSOLIDATED BALANCE SHEETS

 

(Amounts in thousands, except share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December   31, 2015

 

 

December 31, 2014

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

6,313

 

 

$

5,519

 

Interest-bearing balances due from other banks

 

 

14,472

 

 

 

13,493

 

Federal funds sold

 

 

181

 

 

 

500

 

Cash and cash equivalents

 

 

20,966

 

 

 

19,512

 

 

 

 

 

 

 

 

 

 

Available for sale securities at fair value (amortized cost

   of $113,828 and $69,838, respectively)

 

 

113,371

 

 

 

70,299

 

Held to maturity securities at amortized cost (estimated

   fair value of $26,258 and $22,301, respectively)

 

 

26,408

 

 

 

22,519

 

Loans held for sale

 

 

80,509

 

 

 

103,396

 

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

   $4,630, respectively

 

 

739,313

 

 

 

618,160

 

Other equity securities

 

 

5,835

 

 

 

5,566

 

Bank premises and equipment, net of accumulated

   depreciation of $5,368 and $3,964, respectively

 

 

30,630

 

 

 

28,538

 

Other real estate owned, net

 

 

725

 

 

 

2,735

 

Accrued interest receivable

 

 

2,831

 

 

 

2,435

 

Deferred tax asset

 

 

1,915

 

 

 

1,097

 

Goodwill and other intangible assets

 

 

3,175

 

 

 

3,216

 

Other assets

 

 

5,877

 

 

 

1,881

 

Total assets

 

$

1,031,555

 

 

$

879,354

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

90,447

 

 

$

70,217

 

Interest-bearing

 

 

646,959

 

 

 

557,901

 

Total deposits

 

 

737,406

 

 

 

628,118

 

Advances from Federal Home Loan Bank

 

 

127,497

 

 

 

125,785

 

Repurchase agreements

 

 

39,099

 

 

 

12,293

 

Note payable

 

 

3,609

 

 

 

3,609

 

Accrued taxes and other liabilities

 

 

14,594

 

 

 

6,165

 

Total liabilities

 

 

922,205

 

 

 

775,970

 

 

 

 

 

 

 

 

 

 

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; 7,264,282 and 7,262,085 shares

   outstanding, respectively

 

 

7,305

 

 

 

7,264

 

Treasury stock

 

 

(634

)

 

 

(23

)

Surplus

 

 

84,692

 

 

 

84,213

 

Retained earnings

 

 

18,650

 

 

 

11,809

 

Accumulated other comprehensive (loss) income

 

 

(663

)

 

 

121

 

Total stockholders' equity

 

 

109,350

 

 

 

103,384

 

Total liabilities and stockholders' equity

 

$

1,031,555

 

 

$

879,354

 

 



INVESTAR HOLDING CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

Twelve months ended

 

 

 

December 31,

 

 

December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

9,220

 

 

$

8,384

 

 

$

35,076

 

 

$

29,979

 

Interest on investment securities

 

 

631

 

 

 

422

 

 

 

2,189

 

 

 

1,339

 

Other interest income

 

 

22

 

 

 

16

 

 

 

75

 

 

 

51

 

Total interest income

 

 

9,873

 

 

 

8,822

 

 

 

37,340

 

 

 

31,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

1,401

 

 

 

1,135

 

 

 

5,250

 

 

 

4,273

 

Interest on borrowings

 

 

245

 

 

 

110

 

 

 

632

 

 

 

402

 

Total interest expense

 

 

1,646

 

 

 

1,245

 

 

 

5,882

 

 

 

4,675

 

Net interest income

 

 

8,227

 

 

 

7,577

 

 

 

31,458

 

 

 

26,694

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

365

 

 

 

430

 

 

 

1,865

 

 

 

1,628

 

Net interest income after provision for loan losses

 

 

7,862

 

 

 

7,147

 

 

 

29,593

 

 

 

25,066

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

94

 

 

 

84

 

 

 

380

 

 

 

305

 

Gain on sale of investment securities, net

 

 

21

 

 

 

111

 

 

 

489

 

 

 

340

 

Gain (loss) on sale of real estate owned, net

 

 

36

 

 

 

(7

)

 

 

(105

)

 

 

230

 

Gain on sale of loans, net

 

 

537

 

 

 

648

 

 

 

4,368

 

 

 

3,449

 

Fee income on loans held for sale, net

 

 

208

 

 

 

79

 

 

 

979

 

 

 

329

 

Other operating income

 

 

675

 

 

 

410

 

 

 

2,233

 

 

 

1,207

 

Total noninterest income

 

 

1,571

 

 

 

1,325

 

 

 

8,344

 

 

 

5,860

 

Income before noninterest expense

 

 

9,433

 

 

 

8,472

 

 

 

37,937

 

 

 

30,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

365

 

 

 

353

 

 

 

1,446

 

 

 

1,326

 

Salaries and employee benefits

 

 

4,358

 

 

 

3,830

 

 

 

16,398

 

 

 

14,565

 

Occupancy

 

 

296

 

 

 

204

 

 

 

951

 

 

 

833

 

Data processing

 

 

409

 

 

 

349

 

 

 

1,508

 

 

 

1,289

 

Marketing

 

 

93

 

 

 

89

 

 

 

248

 

 

 

329

 

Professional fees

 

 

305

 

 

 

166

 

 

 

1,075

 

 

 

599

 

Impairment on investment in tax credit entity

 

 

-

 

 

 

690

 

 

 

54

 

 

 

690

 

Other operating expenses

 

 

1,408

 

 

 

1,274

 

 

 

5,673

 

 

 

4,753

 

Total noninterest expense

 

 

7,234

 

 

 

6,955

 

 

 

27,353

 

 

 

24,384

 

Income before income tax expense

 

 

2,199

 

 

 

1,517

 

 

 

10,584

 

 

 

6,542

 

Income tax expense (benefit)

 

 

745

 

 

 

(491

)

 

 

3,511

 

 

 

1,145

 

Net income

 

$

1,454

 

 

$

2,008

 

 

$

7,073

 

 

$

5,397

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.20

 

 

$

0.28

 

 

$

0.98

 

 

$

0.98

 

Diluted earnings per share

 

$

0.20

 

 

$

0.27

 

 

$

0.97

 

 

$

0.93

 

Cash dividends declared per common share

 

$

0.01

 

 

$

0.01

 

 

$

0.03

 

 

$

0.04

 

 



INVESTAR HOLDING CORPORATION

 

EARNINGS PER COMMON SHARE

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

December 31,

 

 

Twelve months ended

December 31,

 

 

 

2015

 

 

2014

 

 

2015

 

 

2014

 

Net income available to common shareholders

 

$

1,454

 

 

$

2,008

 

 

$

7,073

 

 

$

5,397

 

Weighted average number of common shares outstanding -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Used in computation of basic earnings per common

   share

 

 

7,200,526

 

 

 

7,213,416

 

 

 

7,214,045

 

 

 

5,533,514

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock

 

 

12,564

 

 

 

33,377

 

 

 

5,861

 

 

 

41,467

 

Stock options

 

 

21,150

 

 

 

22,811

 

 

 

21,150

 

 

 

22,811

 

Stock warrants

 

 

16,952

 

 

 

141,900

 

 

 

16,952

 

 

 

179,510

 

Weighted average number of common shares outstanding -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus effect of dilutive securities used in computation

   of diluted earnings per common share

 

 

7,251,192

 

 

 

7,411,504

 

 

 

7,258,008

 

 

 

5,777,302

 

Basic earnings per share

 

$

0.20

 

 

$

0.28

 

 

$

0.98

 

 

$

0.98

 

Diluted earnings per share

 

$

0.20

 

 

$

0.27

 

 

$

0.97

 

 

$

0.93

 

 



INVESTAR HOLDING CORPORATION

 

SUMMARY FINANCIAL INFORMATION

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2015

 

 

Q3 2015

 

 

Q4 2014

 

 

Qtr/Qtr

 

 

Year/Year

 

EARNINGS DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

$

9,873

 

 

$

9,480

 

 

$

8,822

 

 

 

4.1

%

 

 

11.9

%

Total interest expense

 

 

1,646

 

 

 

1,528

 

 

 

1,245

 

 

 

7.7

%

 

 

32.2

%

Net interest income

 

 

8,227

 

 

 

7,952

 

 

 

7,577

 

 

 

3.5

%

 

 

8.6

%

Provision for loan losses

 

 

365

 

 

 

400

 

 

 

430

 

 

 

-8.8

%

 

 

-15.1

%

Total noninterest income

 

 

1,571

 

 

 

2,167

 

 

 

1,325

 

 

 

-27.5

%

 

 

18.6

%

Total noninterest expense

 

 

7,234

 

 

 

7,013

 

 

 

6,955

 

 

 

3.2

%

 

 

4.0

%

Income before income taxes

 

 

2,199

 

 

 

2,706

 

 

 

1,517

 

 

 

-18.7

%

 

 

45.0

%

Income tax expense

 

 

745

 

 

 

850

 

 

 

(491

)

 

 

-12.4

%

 

 

-251.7

%

Net income

 

$

1,454

 

 

$

1,856

 

 

$

2,008

 

 

 

-21.7

%

 

 

-27.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

974,820

 

 

$

944,234

 

 

$

826,369

 

 

 

3.2

%

 

 

18.0

%

Total interest-earning assets

 

 

923,662

 

 

 

895,208

 

 

 

782,868

 

 

 

3.2

%

 

 

18.0

%

Total loans

 

 

739,809

 

 

 

692,196

 

 

 

621,565

 

 

 

6.9

%

 

 

19.0

%

Total gross loans

 

 

793,830

 

 

 

777,080

 

 

 

675,305

 

 

 

2.2

%

 

 

17.6

%

Total interest-bearing deposits

 

 

645,247

 

 

 

634,232

 

 

 

553,603

 

 

 

1.7

%

 

 

16.6

%

Total interest-bearing liabilities

 

 

759,068

 

 

 

738,612

 

 

 

641,611

 

 

 

2.8

%

 

 

18.3

%

Total deposits

 

 

741,201

 

 

 

721,657

 

 

 

628,837

 

 

 

2.7

%

 

 

17.9

%

Total shareholders' equity

 

 

108,998

 

 

 

107,795

 

 

 

102,781

 

 

 

1.1

%

 

 

6.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.20

 

 

$

0.26

 

 

$

0.28

 

 

 

-22.3

%

 

 

-27.9

%

Diluted earnings per share

 

 

0.20

 

 

 

0.26

 

 

 

0.27

 

 

 

-22.9

%

 

 

-25.7

%

Core earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share (1)

 

 

0.21

 

 

 

0.26

 

 

 

0.19

 

 

 

-19.2

%

 

 

8.6

%

Diluted earnings per share (1)

 

 

0.21

 

 

 

0.26

 

 

 

0.19

 

 

 

-17.8

%

 

 

11.5

%

Book value per share

 

 

15.05

 

 

 

14.88

 

 

 

14.24

 

 

 

1.2

%

 

 

5.7

%

Tangible book value per share (1)

 

 

14.62

 

 

 

14.45

 

 

 

13.79

 

 

 

1.1

%

 

 

6.0

%

Common shares outstanding

 

 

7,264,282

 

 

 

7,264,261

 

 

 

7,262,085

 

 

 

0.0

%

 

 

0.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.59

%

 

 

0.78

%

 

 

0.96

%

 

 

-24.4

%

 

 

-38.5

%

Core return on average assets (1)

 

 

0.62

%

 

 

0.80

%

 

 

0.67

%

 

 

-23.1

%

 

 

-8.1

%

Return on average equity

 

 

5.29

%

 

 

6.83

%

 

 

7.75

%

 

 

-22.5

%

 

 

-31.7

%

Core return on average equity (1)

 

 

5.50

%

 

 

7.01

%

 

 

5.38

%

 

 

-21.5

%

 

 

2.2

%

Net interest margin

 

 

3.53

%

 

 

3.52

%

 

 

3.84

%

 

 

0.3

%

 

 

-8.1

%

Net interest income to average assets

 

 

3.35

%

 

 

3.34

%

 

 

3.64

%

 

 

0.3

%

 

 

-8.0

%

Noninterest expense to average assets

 

 

2.94

%

 

 

2.95

%

 

 

3.34

%

 

 

-0.3

%

 

 

-12.0

%

Efficiency ratio (1)

 

 

73.83

%

 

 

69.31

%

 

 

78.13

%

 

 

6.5

%

 

 

-5.5

%

Core efficiency ratio (1)

 

 

72.77

%

 

 

66.88

%

 

 

70.38

%

 

 

8.8

%

 

 

3.4

%

Dividend payout ratio

 

 

4.26

%

 

 

3.19

%

 

 

2.51

%

 

 

33.5

%

 

 

69.7

%

Net charge-offs to average loans

 

 

0.02

%

 

 

0.03

%

 

 

0.02

%

 

 

-33.3

%

 

 

0.0

%

 



INVESTAR HOLDING CORPORATION

 

SUMMARY FINANCIAL INFORMATION

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q4 2015

 

 

Q3 2015

 

 

Q4 2014

 

 

Qtr/Qtr

 

 

Year/Year

 

ASSET QUALITY RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.30

%

 

 

0.40

%

 

 

0.69

%

 

 

-25.0

%

 

 

-56.5

%

Nonperforming loans to total loans

 

 

0.32

%

 

 

0.37

%

 

 

0.54

%

 

 

-13.5

%

 

 

-40.7

%

Allowance for loan losses to total loans

 

 

0.82

%

 

 

0.83

%

 

 

0.74

%

 

 

-1.2

%

 

 

10.8

%

Allowance for loan losses to nonperforming loans

 

 

254.16

%

 

 

226.43

%

 

 

138.61

%

 

 

12.2

%

 

 

83.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS (2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investar Holding Corporation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity to total assets

 

 

10.60

%

 

 

11.53

%

 

 

11.76

%

 

 

-8.1

%

 

 

-9.9

%

Tangible equity to tangible assets

 

 

10.32

%

 

 

11.23

%

 

 

11.43

%

 

 

-8.1

%

 

 

-9.7

%

Tier 1 leverage ratio

 

 

11.39

%

 

 

11.61

%

 

 

12.61

%

 

 

-1.9

%

 

 

-9.7

%

Common equity tier 1 capital ratio

 

 

11.67

%

 

 

12.69

%

 

NA

 

 

 

-8.0

%

 

NA

 

Tier 1 capital ratio

 

 

12.05

%

 

 

13.11

%

 

 

13.79

%

 

 

-8.1

%

 

 

-12.6

%

Total capital ratio

 

 

12.72

%

 

 

13.82

%

 

 

14.41

%

 

 

-8.0

%

 

 

-11.7

%

Investar Bank:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

11.07

%

 

 

11.25

%

 

 

9.00

%

 

 

-1.6

%

 

 

23.0

%

Common equity tier 1 capital ratio

 

 

11.71

%

 

 

12.71

%

 

NA

 

 

 

-7.9

%

 

NA

 

Tier 1 capital ratio

 

 

11.71

%

 

 

12.71

%

 

 

9.86

%

 

 

-7.9

%

 

 

18.8

%

Total capital ratio

 

 

12.38

%

 

 

13.42

%

 

 

10.48

%

 

 

-7.7

%

 

 

18.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(2) Beginning January 1, 2015, the capital ratios for the Company and the 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. Ratios are estimated for December 31, 2015.

 

 

 

 



INVESTAR HOLDING CORPORATION

 

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended December 31,

 

 

 

2015

 

 

2014

 

 

 

Average

Balance

 

 

Interest

Income/

Expense

 

 

Yield/ Rate

 

 

Average

Balance

 

 

Interest

Income/

Expense

 

 

Yield/ Rate

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

793,830

 

 

$

9,220

 

 

 

4.61

%

 

$

675,305

 

 

$

8,384

 

 

 

4.93

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

93,713

 

 

 

527

 

 

 

2.23

 

 

 

79,354

 

 

 

322

 

 

 

1.61

 

Tax-exempt

 

 

17,174

 

 

 

104

 

 

 

2.40

 

 

 

11,508

 

 

 

100

 

 

 

3.45

 

Interest-bearing balances with banks

 

 

18,945

 

 

 

22

 

 

 

0.46

 

 

 

16,701

 

 

 

16

 

 

 

0.38

 

Total interest-earning assets

 

 

923,662

 

 

 

9,873

 

 

 

4.24

 

 

 

782,868

 

 

 

8,822

 

 

 

4.47

 

Cash and due from banks

 

 

5,656

 

 

 

 

 

 

 

 

 

 

 

5,306

 

 

 

 

 

 

 

 

 

Intangible assets

 

 

3,178

 

 

 

 

 

 

 

 

 

 

 

3,220

 

 

 

 

 

 

 

 

 

Other assets

 

 

48,374

 

 

 

 

 

 

 

 

 

 

 

39,427

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

 

(6,050

)

 

 

 

 

 

 

 

 

 

 

(4,452

)

 

 

 

 

 

 

 

 

Total assets

 

$

974,820

 

 

 

 

 

 

 

 

 

 

$

826,369

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

 

$

233,748

 

 

$

369

 

 

 

0.63

%

 

$

189,758

 

 

$

294

 

 

 

0.61

%

Savings deposits

 

 

54,482

 

 

 

92

 

 

 

0.67

 

 

 

54,192

 

 

 

92

 

 

 

0.67

 

Time deposits

 

 

357,017

 

 

 

940

 

 

 

1.04

 

 

 

309,653

 

 

 

749

 

 

 

0.96

 

Total interest-bearing deposits

 

 

645,247

 

 

 

1,401

 

 

 

0.86

 

 

 

553,603

 

 

 

1,135

 

 

 

0.81

 

Short-term borrowings

 

 

84,531

 

 

 

171

 

 

 

0.80

 

 

 

41,816

 

 

 

18

 

 

 

0.17

 

Long-term debt

 

 

29,290

 

 

 

74

 

 

 

1.00

 

 

 

46,192

 

 

 

92

 

 

 

0.79

 

Total interest-bearing liabilities

 

 

759,068

 

 

 

1,646

 

 

 

0.86

 

 

 

641,611

 

 

 

1,245

 

 

 

0.77

 

Noninterest-bearing deposits

 

 

95,954

 

 

 

 

 

 

 

 

 

 

 

75,234

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

10,800

 

 

 

 

 

 

 

 

 

 

 

6,743

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

108,998

 

 

 

 

 

 

 

 

 

 

 

102,781

 

 

 

 

 

 

 

 

 

Total liability and stockholders’ equity

 

$

974,820

 

 

 

 

 

 

 

 

 

 

$

826,369

 

 

 

 

 

 

 

 

 

Net interest income/net interest margin

 

 

 

 

 

$

8,227

 

 

 

3.53

%

 

 

 

 

 

$

7,577

 

 

 

3.84

%

 



INVESTAR HOLDING CORPORATION

 

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ended December 31,

 

 

 

2015

 

 

2014

 

 

 

Average

Balance

 

 

Interest

Income/

Expense

 

 

Yield/ Rate

 

 

Average

Balance

 

 

Interest

Income/

Expense

 

 

Yield/ Rate

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

754,056

 

 

$

35,076

 

 

 

4.65

%

 

$

601,238

 

 

$

29,979

 

 

 

4.99

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

80,516

 

 

 

1,741

 

 

 

2.16

 

 

 

66,384

 

 

 

945

 

 

 

1.42

 

Tax-exempt

 

 

18,077

 

 

 

448

 

 

 

2.48

 

 

 

12,652

 

 

 

394

 

 

 

3.11

 

Interest-bearing balances with banks

 

 

18,136

 

 

 

75

 

 

 

0.41

 

 

 

13,060

 

 

 

51

 

 

 

0.39

 

Total interest-earning assets

 

 

870,785

 

 

 

37,340

 

 

 

4.29

 

 

 

693,334

 

 

 

31,369

 

 

 

4.52

 

Cash and due from banks

 

 

5,611

 

 

 

 

 

 

 

 

 

 

 

5,668

 

 

 

 

 

 

 

 

 

Intangible assets

 

 

3,194

 

 

 

 

 

 

 

 

 

 

 

3,235

 

 

 

 

 

 

 

 

 

Other assets

 

 

46,313

 

 

 

 

 

 

 

 

 

 

 

36,617

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

 

(5,636

)

 

 

 

 

 

 

 

 

 

 

(3,877

)

 

 

 

 

 

 

 

 

Total assets

 

$

920,267

 

 

 

 

 

 

 

 

 

 

$

734,977

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

 

$

222,730

 

 

$

1,402

 

 

 

0.63

%

 

$

173,715

 

 

$

1,078

 

 

 

0.62

%

Savings deposits

 

 

54,240

 

 

 

367

 

 

 

0.68

 

 

 

52,881

 

 

 

361

 

 

 

0.68

 

Time deposits

 

 

343,638

 

 

 

3,481

 

 

 

1.01

 

 

 

288,837

 

 

 

2,834

 

 

 

0.98

 

Total interest-bearing deposits

 

 

620,608

 

 

 

5,250

 

 

 

0.85

 

 

 

515,433

 

 

 

4,273

 

 

 

0.83

 

Short-term borrowings

 

 

60,970

 

 

 

296

 

 

 

0.49

 

 

 

28,349

 

 

 

54

 

 

 

0.19

 

Long-term debt

 

 

36,712

 

 

 

336

 

 

 

0.92

 

 

 

39,376

 

 

 

348

 

 

 

0.88

 

Total interest-bearing liabilities

 

 

718,290

 

 

 

5,882

 

 

 

0.82

 

 

 

583,158

 

 

 

4,675

 

 

 

0.80

 

Noninterest-bearing deposits

 

 

85,635

 

 

 

 

 

 

 

 

 

 

 

67,639

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

9,256

 

 

 

 

 

 

 

 

 

 

 

4,809

 

 

 

 

 

 

 

 

 

Stockholders' equity

 

 

107,086

 

 

 

 

 

 

 

 

 

 

 

79,371

 

 

 

 

 

 

 

 

 

Total liability and stockholders’ equity

 

$

920,267

 

 

 

 

 

 

 

 

 

 

$

734,977

 

 

 

 

 

 

 

 

 

Net interest income/net interest margin

 

 

 

 

 

$

31,458

 

 

 

3.61

%

 

 

 

 

 

$

26,694

 

 

 

3.85

%

 



 

INVESTAR HOLDING CORPORATION

 

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31,

 

 

September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

Tangible common equity

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholder's equity

 

$

109,350

 

 

$

103,384

 

 

$

108,128

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

2,684

 

 

 

2,684

 

 

 

2,684

 

Core deposit intangible

 

 

491

 

 

 

532

 

 

 

501

 

Tangible common equity

 

$

106,175

 

 

$

100,168

 

 

$

104,943

 

Tangible assets

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,031,555

 

 

$

879,354

 

 

$

937,747

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

2,684

 

 

 

2,684

 

 

 

2,684

 

Core deposit intangible

 

 

491

 

 

 

532

 

 

 

501

 

Tangible assets

 

$

1,028,380

 

 

$

876,138

 

 

$

934,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

7,264,282

 

 

 

7,262,085

 

 

 

7,264,261

 

Tangible equity to tangible assets

 

 

10.32

%

 

 

11.43

%

 

 

11.23

%

Book value per common share

 

$

15.05

 

 

$

14.24

 

 

$

14.88

 

Tangible book value per common share

 

 

14.62

 

 

 

13.79

 

 

 

14.45

 

 



INVESTAR HOLDING CORPORATION

 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

December 31,

 

 

September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

Net interest income

(a)

$

8,227

 

 

$

7,577

 

 

$

7,952

 

Provision for loan losses

 

 

365

 

 

 

430

 

 

 

400

 

Net interest income after provision for loan losses

 

 

7,862

 

 

 

7,147

 

 

 

7,552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income

(b)

 

1,571

 

 

 

1,325

 

 

 

2,167

 

Gain on sale of investment securities

 

 

(21

)

 

 

(111

)

 

 

(334

)

(Gain) loss on sale of other real estate owned, net

 

 

(36

)

 

 

7

 

 

 

147

 

Core noninterest income

(d)

 

1,514

 

 

 

1,221

 

 

 

1,980

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core earnings before noninterest expense

 

 

9,376

 

 

 

8,368

 

 

 

9,532

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total noninterest expense

(c)

 

7,234

 

 

 

6,955

 

 

 

7,013

 

Impairment on investment in tax credit entity

 

 

-

 

 

 

(690

)

 

 

(54

)

Restructuring/exit costs:

 

 

 

 

 

 

 

 

 

 

 

 

Severance

 

 

(76

)

 

 

-

 

 

 

(150

)

Legal and consulting

 

 

-

 

 

 

-

 

 

 

(61

)

Other

 

 

(69

)

 

 

-

 

 

 

(105

)

Core noninterest expense

(f)

 

7,089

 

 

 

6,265

 

 

 

6,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core earnings before income tax expense

 

 

2,287

 

 

 

2,103

 

 

 

2,889

 

Core income tax expense (1)

 

 

775

 

 

 

708

 

 

 

985

 

Core earnings

 

$

1,512

 

 

$

1,395

 

 

$

1,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core basic earnings per share

 

$

0.21

 

 

$

0.19

 

 

$

0.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share (GAAP)

 

$

0.20

 

 

$

0.27

 

 

$

0.26

 

Gain on sale of investment securities

 

 

-

 

 

 

(0.01

)

 

 

(0.04

)

Loss on sale of other real estate owned, net

 

 

-

 

 

 

-

 

 

 

0.01

 

Impairment on investment in tax credit entity

 

 

-

 

 

 

0.06

 

 

 

-

 

Tax credit related to historical tax credit project

 

 

-

 

 

 

(0.13

)

 

 

-

 

Restructuring/exit costs

 

 

0.01

 

 

 

-

 

 

 

0.03

 

Core diluted earnings per share

 

$

0.21

 

 

$

0.19

 

 

$

0.26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio

(c) / (a+b)

 

73.83

%

 

 

78.13

%

 

 

69.31

%

Core efficiency ratio

(f) / (a+d)

 

72.77

%

 

 

71.21

%

 

 

66.88

%

Core return on average assets (2)

 

 

0.62

%

 

 

0.67

%

 

 

0.80

%

Core return on average equity (2)

 

 

5.50

%

 

 

5.38

%

 

 

7.01

%

Total average assets

 

$

974,820

 

 

$

826,369

 

 

$

944,234

 

Total average stockholders' equity

 

 

108,998

 

 

 

102,781

 

 

 

107,795

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Core income tax expense is calculated using the actual effective tax rate of 33.9% for the three months ended December 31, 2015. The core income tax expense for the three months ended September 30, 2015 and December 31, 2014 is calculated using the core effective tax rates of 34.1% and 33.7%, respectively. See rate reconciliation on the following page.

 

(2) Core earnings used in calculation. No adjustments were made to average assets or average equity.

 

 



INVESTAR HOLDING CORPORATION

 

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended

 

 

 

December 31,

 

 

September 30,

 

 

 

2015

 

 

2014

 

 

2015

 

Earnings before income tax expense

(a)

$

2,199

 

 

$

1,517

 

 

$

2,706

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

745

 

 

 

(491

)

 

 

850

 

Income tax credit

 

 

-

 

 

 

1,002

 

 

 

72

 

Adjusted income tax expense

(b)

 

745

 

 

 

511

 

 

 

922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Core effective tax rate (1)

(b) / (a)

 

33.9

%

 

 

33.7

%

 

 

34.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Core effective tax rate is used in the calculation of core income tax expense.