0001437749-23-020411 8-K 14 20230720 2.02 9.01 20230721 20230721 Investar Holding Corp 0001602658 6022 271560715 LA 1231 8-K 34 001-36522 231102127 10500 COURSEY BLVD THIRD FLOOR BATON ROUGE LA 70816 225-227-2222 10500 COURSEY BLVD THIRD FLOOR BATON ROUGE LA 70816 8-K 1 istr20230523_8k.htm FORM 8-K istr20230523_8k.htm
false 0001602658 0001602658 2023-07-20 2023-07-20
 

 
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): July 20, 2023
 

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

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

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

 
 

 
Item 2.02
Results of Operations and Financial Condition.
 
On July 20, 2023, Investar Holding Corporation (the “Company”), the holding company of Investar Bank, National Association (the “Bank”), issued a press release reporting second quarter 2023 results. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
 
The information contained in Item 2.02, including Exhibit 99.1 of this Current Report, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01
Financial Statements and Exhibits.
 
(d) Exhibits
 
Exhibit Number
 
Description of Exhibit
99.1
 
104
 
The cover page of Investar Holding Corporation’s Form 8-K is formatted in Inline XBRL
 
 

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
INVESTAR HOLDING CORPORATION
     
Date: July 21, 2023
By:
/s/ John J. D’Angelo
   
John J. D’Angelo
   
President and Chief Executive Officer
 
 
EX-99.1 2 ex_525302.htm EXHIBIT 99.1 ex_525302.htm

Exhibit 99.1

 

For Immediate Release

 

Investar Holding Corporation Announces 2023 Second Quarter Results

 

BATON ROUGE, LA / ACCESSWIRE / July 20, 2023 / Investar Holding Corporation (“Investar”) (NASDAQ:ISTR), the holding company for Investar Bank, National Association (the “Bank”), today announced financial results for the quarter ended June 30, 2023. Investar reported net income of $6.5 million, or $0.67 per diluted common share, for the second quarter of 2023, compared to net income of $3.8 million, or $0.38 per diluted common share, for the quarter ended March 31, 2023, and net income of $9.4 million, or $0.92 per diluted common share, for the quarter ended June 30, 2022.

 

On a non-GAAP basis, core earnings per diluted common share for the second quarter of 2023 were $0.67 compared to $0.51 for the first quarter of 2023 and $0.62 for the second quarter of 2022. Core earnings exclude certain items including, but not limited to, loss on sale or disposition of fixed assets, net, (gain) loss on sale of other real estate owned, net, change in the fair value of equity securities, divestiture expense and swap termination fee income (refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics).

 

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

 

“I am pleased with our second quarter results. We remain inwardly focused and are controlling the things that we can control. Credit quality remained exceptional as nonperforming loans represent only 0.34% of total loans. Loan yields increased as we originated new loans and completed renewals at higher rates. We continue to realize the benefits of the variable rate portion of our loan portfolio. We continued to experience margin compression as rising market interest rates increased our costs of funding; however, noninterest expense decreased as a result of our ongoing digital initiatives and close monitoring of expenses. We are implementing additional technology solutions and evaluating lower margin product offerings to improve overall profitability. We are also continually evaluating opportunities to reduce our physical branch and ATM footprint to deliver products and services to our customers more efficiently.

 

As always, we remain focused on shareholder value and returning capital to shareholders. We repurchased 92,300 shares of our common stock during the second quarter at an average price of $11.77 per share and increased our quarterly dividend by 5% compared to the first quarter dividend. We believe the current share price does not reflect the long-term intrinsic value of the Company, and yesterday, the Board of Directors approved an additional 350,000 shares for repurchase under our stock repurchase program.”

 

Second Quarter Highlights

 

 

Return on average assets improved to 0.96% for the quarter ended June 30, 2023 compared to 0.57% for the quarter ended March 31, 2023. Core return on average assets improved to 0.97% for the quarter ended June 30, 2023 compared to 0.76% for the quarter ended March 31, 2023

 

 

Noninterest expense decreased $0.9 million to $15.2 million for the quarter ended June 30, 2023 compared to $16.2 million for the quarter ended March 31, 2023. Core noninterest expense decreased $0.3 million to $15.2 million for the quarter ended June 30, 2023 compared to $15.5 million for the quarter ended March 31, 2023.

 

 

Investar recognized net recoveries of $2.4 million in the loan portfolio during the quarter ended June 30, 2023 primarily attributable to recoveries on one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida.

 

 

Credit quality remained strong as nonperforming loans were 0.34% of total loans at June 30, 2023 compared to 0.27% at March 31, 2023.

 

 

Total revenues, or interest and noninterest income, for the quarter ended June 30, 2023 totaled $34.5 million, an increase of $2.4 million, or 7.5%, compared to the quarter ended March 31, 2023.

 

 

The yield on the loan portfolio increased to 5.44% for the quarter ended June 30, 2023 compared to 5.27% for the quarter ended March 31, 2023.

 

 

Total deposits increased $35.2 million, or 1.6%, to $2.18 billion at June 30, 2023, compared to $2.15 billion at March 31, 2023. Uninsured deposits were 26% of total deposits at June 30, 2023.

 

 

Book value per common share increased to $22.21 at June 30, 2023, or 0.7% (2.8% annualized), compared to $22.06 at March 31, 2023. Tangible book value per common share increased to $17.87 at June 30, 2023, or 0.7% (2.8% annualized), compared to $17.74 at March 31, 2023.

 

 

Investar repurchased 92,300 shares of its common stock through its stock repurchase program at an average price of $11.77 during the quarter ended June 30, 2023, leaving 248,439 shares authorized for repurchase under the stock repurchase program at June 30, 2023. On July 19, 2023, Investar’s Board of Directors approved an additional 350,000 shares for repurchase under the program.

 

 

 

Loans

 

Total loans were $2.08 billion at June 30, 2023a decrease of $24.2 million, or 1.1%, compared to March 31, 2023, and an increase of $168.5 million, or 8.8%, compared to June 30, 2022.

 

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

 

                           

Linked Quarter Change

 

Year/Year Change

 

Percentage of Total Loans

   

6/30/2023

 

3/31/2023

 

6/30/2022

 

$

 

%

 

$

 

%

 

6/30/2023

 

6/30/2022

Mortgage loans on real estate

                                                                       

Construction and development

  $ 197,850     $ 210,274     $ 214,543     $ (12,424 )     (5.9 )%   $ (16,693 )     (7.8 )%     9.4 %     11.2 %

1-4 Family

    414,380       401,329       380,028       13,051       3.3       34,352       9.0       19.9       19.8  

Multifamily

    80,424       80,980       56,491       (556 )     (0.7 )     23,933       42.4       3.9       3.0  

Farmland

    8,434       10,731       15,676       (2,297 )     (21.4 )     (7,242 )     (46.2 )     0.4       0.8  

Commercial real estate

                                                                       

Owner-occupied

    441,393       433,585       440,714       7,808       1.8       679       0.2       21.2       23.0  

Nonowner-occupied

    530,820       533,572       451,108       (2,752 )     (0.5 )     79,712       17.7       25.4       23.5  

Commercial and industrial

    399,488       425,093       343,355       (25,605 )     (6.0 )     56,133       16.3       19.2       17.9  

Consumer

    12,074       13,480       14,480       (1,406 )     (10.4 )     (2,406 )     (16.6 )     0.6       0.8  

Total loans

  $ 2,084,863     $ 2,109,044     $ 1,916,395     $ (24,181 )     (1.1 )%   $ 168,468       8.8 %     100 %     100 %

 

At June 30, 2023, the Bank’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $840.9 million, a decrease of $17.8 million, or 2.1%, compared to the business lending portfolio of $858.7 million at March 31, 2023, and an increase of $56.8 million, or 7.2%, compared to the business lending portfolio of $784.1 million at June 30, 2022. The decrease in the business lending portfolio compared to March 31, 2023 is primarily driven by lower demand due to higher rates. The increase in the business lending portfolio compared to June 30, 2022 is primarily driven by increased loan production by our Commercial and Industrial Division. 

 

Nonowner-occupied loans totaled $530.8 million at June 30, 2023a decrease of $2.8 million, or 0.5%, compared to $533.6 million at March 31, 2023, and an increase of $79.7 million, or 17.7%, compared to $451.1 million at June 30, 2022. The decrease in nonowner-occupied loans compared to March 31, 2023 is primarily due to loan amortization. The increase in nonowner-occupied loans compared to June 30, 2022 is due to organic growth.

 

Credit Quality

 

Nonperforming loans were $7.0 million, or 0.34% of total loans, at June 30, 2023an increase of $1.3 million compared to $5.7 million, or 0.27% of total loans, at March 31, 2023, and a decrease of $10.0 million compared to $17.0 million, or 0.89% of total loans, at June 30, 2022. The increase in nonperforming loans compared to March 31, 2023 is mainly attributable to one construction and development loan relationship totaling $1.0 million and one nonowner-occupied loan relationship totaling $0.6 million, partially offset by paydowns. Included in nonperforming loans are acquired loans with a balance of $2.5 million at June 30, 2023, or 35% of nonperforming loans.

 

On January 1, 2023, Investar adopted FASB ASC Topic 326 “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments” Update No. 2016-13. The ASU, referred to as the Current Expected Credit Loss (“CECL”) standard, requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Upon adoption, Investar recorded a one-time, cumulative effect adjustment to increase the allowance for credit losses by $5.9 million and reduce retained earnings, net of tax, by $4.3 million.

 

The allowance for credit losses was $30.0 million, or 429.6% and 1.44% of nonperforming and total loans, respectively, at June 30, 2023, compared to $30.5 million, or 535.6% and 1.45% of nonperforming and total loans, respectively, at March 31, 2023, and $22.0 million, or 128.9% and 1.15% of nonperforming and total loans, respectively, at June 30, 2022

 

Investar recorded a negative provision for credit losses of $2.8 million for the quarter ended June 30, 2023 compared to provision for credit losses of $0.4 million and $0.9 million for the quarters ended March 31, 2023 and June 30, 2022, respectively. The negative provision for credit losses compared to the provision for credit losses for the quarter ended March 31, 2023 was driven by net recoveries of $2.4 million, primarily attributable to recoveries on one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida, and a decrease in total loans during the quarter ended June 30, 2023.

 

 

 

Deposits

 

Total deposits at June 30, 2023 were $2.18 billion, an increase of $35.2 million, or 1.6%, compared to $2.15 billion at March 31, 2023, and an increase of $118.2 million, or 5.7%, compared to $2.06 billion at June 30, 2022. Time deposits and brokered time deposits increased, and other deposit categories decreased over the periods due to shifts into interest-bearing deposit products as a result of rising interest rates. The increase in time deposits at June 30, 2023 compared to March 31, 2023 is primarily due to organic growth and existing customer funds migrating from other deposit categories. Investar utilizes brokered time deposits, entirely in denominations of less than $250,000, to secure fixed cost funding and reduce short-term borrowings. At June 30, 2023, the remaining weighted average duration of brokered time deposits is approximately 13 months with a weighted average rate of 4.91%. 

 

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

 

                           

Linked Quarter Change

 

Year/Year Change

 

Percentage of Total Deposits

   

6/30/2023

 

3/31/2023

 

6/30/2022

 

$

 

%

 

$

 

%

 

6/30/2023

 

6/30/2022

Noninterest-bearing demand deposits

  $ 488,311     $ 508,241     $ 615,779     $ (19,930 )     (3.9 )%   $ (127,468 )     (20.7 )%     22.4 %     29.8 %

Interest-bearing demand deposits

    514,501       538,515       647,277       (24,014 )     (4.5 )     (132,776 )     (20.5 )     23.6       31.4  

Money market deposit accounts

    158,984       180,402       243,795       (21,418 )     (11.9 )     (84,811 )     (34.8 )     7.3       11.8  

Savings accounts

    125,442       137,336       176,760       (11,894 )     (8.7 )     (51,318 )     (29.0 )     5.8       8.6  

Brokered time deposits

    153,365       146,270             7,095       4.9       153,365             7.0        

Time deposits

    740,250       634,883       379,059       105,367       16.6       361,191       95.3       33.9       18.4  

Total deposits

  $ 2,180,853     $ 2,145,647     $ 2,062,670     $ 35,206       1.6 %   $ 118,183       5.7 %     100 %     100 %

 

Stockholders Equity 

 

Stockholders’ equity was $218.4 million at June 30, 2023a decrease of $0.1 million compared to March 31, 2023, and a decrease of $1.0 million compared to June 30, 2022The decrease in stockholders’ equity compared to March 31, 2023 is primarily attributable to an increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank’s available for sale securities portfolio, partially offset by net income for the quarter. The decrease in stockholders’ equity compared to June 30, 2022 is primarily attributable to an increase in accumulated other comprehensive loss due to a decrease in the fair value of the Bank’s available for sale securities portfolio and the cumulative effect adjustment as a result of the adoption of the CECL standard, reflected in retained earnings, partially offset by net income for the last twelve months.

 

 

 

Net Interest Income

 

Net interest income for the second quarter of 2023 totaled $18.4 million, a decrease of $1.8 million, or 8.9%, compared to the first quarter of 2023, and a decrease of $3.6 million, or 16.3%, compared to the second quarter of 2022. Total interest income was $32.4 million, $31.0 million and $24.3 million for the quarters ended June 30, 2023March 31, 2023 and June 30, 2022, respectively. Total interest expense was $14.0 million, $10.8 million and $2.4 million for the corresponding periods. Included in net interest income for the quarters ended June 30, 2023, March 31, 2023 and June 30, 2022 is $47,000$0.1 million, and $0.2 million, respectively, of interest income accretion from the acquisition of loans. Also included in net interest income for the quarters ended March 31, 2023 and June 30, 2022 are interest recoveries of $0.1 million and $36,000, respectively. There were no interest recoveries for the quarter ended June 30, 2023.

 

Investar’s net interest margin was 2.82% for the quarter ended June 30, 2023, compared to 3.13% for the quarter ended March 31, 2023 and 3.70% for the quarter ended June 30, 2022. The decrease in net interest margin for the quarter ended June 30, 2023 compared to the quarter ended March 31, 2023 was driven by a 56 basis point increase in the overall cost of funds, partially offset by an 18 basis point increase in the yield on interest-earning assets. The decrease in net interest margin for the quarter ended June 30, 2023 compared to the quarter ended June 30, 2022 was driven by a 224 basis point increase in the overall cost of funds, partially offset by an 89 basis point increase in the yield on interest-earning assets.

 

The yield on interest-earning assets was 4.98% for the quarter ended June 30, 2023, compared to 4.80% for the quarter ended March 31, 2023 and 4.09% for the quarter ended June 30, 2022. The increase in the yield on interest-earning assets compared to the quarter ended March 31, 2023 was primarily attributable to a 17 basis point increase in the yield on the loan portfolio and an 11 basis point increase in the yield on the taxable securities portfolio. The increase in the yield on interest-earning assets compared to the quarter ended June 30, 2022 was primarily driven by an 84 basis point increase in the yield on the loan portfolio and an 81 basis point increase in the yield on the taxable securities portfolio.

 

Exclusive of the interest income accretion from the acquisition of loans, interest recoveries, and accelerated fee income recognized due to the forgiveness or pay-off of PPP loans, adjusted net interest margin decreased to 2.82% for the quarter ended June 30, 2023, compared to 3.10% for the quarter ended March 31, 2023, and 3.61% for the quarter ended June 30, 2022. The adjusted yield on interest-earning assets was 4.97% for the quarter ended June 30, 2023 compared to 4.77% and 4.01% for the quarters ended March 31, 2023 and June 30, 2022, respectively. Refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics.

 

The cost of deposits increased 69 basis points to 2.31% for the quarter ended June 30, 2023 compared to 1.62% for the quarter ended March 31, 2023 and increased 207 basis points compared to 0.24% for the quarter ended June 30, 2022. The increase in the cost of deposits compared to the quarter ended March 31, 2023 resulted from both higher average balances and increases in rates paid on time deposits and brokered time deposits and an increase in rates paid on interest-bearing demand deposits. The increase in the cost of deposits compared to the quarter ended June 30, 2022 resulted from both a higher average balance and an increase in rates paid on time deposits, a higher average balance of brokered time deposits, and an increase in rates paid on interest-bearing demand deposits. 

 

The cost of short-term borrowings increased 29 basis points to 5.09% for the quarter ended June 30, 2023 compared to 4.80% for the quarter ended March 31, 2023 and increased 394 basis points compared to 1.15% for the quarter ended June 30, 2022. During the second quarter of 2023, the Bank utilized the Federal Reserve’s Bank Term Funding Program (“BTFP”) to secure fixed rate funding for a one-year term and reduce short-term Federal Home Loan Bank (“FHLB”) advances, which are priced daily. The Bank utilized this source of funding due to its lower rate, the ability to prepay the obligations without penalty, and as a means to lock in funding. The increase in the cost of short-term borrowings compared to the quarter ended March 31, 2023 resulted from an increase in rates paid on short-term advances from the FHLB and utilization of short-term borrowings under the BTFP in the second quarter of 2023, the costs of which are driven by the Federal Reserve’s federal funds rate. The increase in the cost of short-term borrowings compared to the quarter ended June 30, 2022 resulted from both a higher average balance and an increase in rates paid on short-term advances from the FHLB and utilization of short-term borrowings under the BTFP in the second quarter of 2023.

 

The overall cost of funds for the quarter ended June 30, 2023 increased 56 basis points to 2.79% compared to 2.23% for the quarter ended March 31, 2023 and increased 224 basis points compared to 0.55% for the quarter ended June 30, 2022. The increase in the cost of funds for the quarter ended June 30, 2023 compared to the quarter ended March 31, 2023 resulted from an increase in the cost of deposits and an increase in the cost of short-term borrowings, partially offset by a lower average balance of short-term borrowings. The increase in the cost of funds for the quarter ended June 30, 2023 compared to the quarter ended June 30, 2022 resulted from both a higher average balance and an increase in the cost of deposits and both a higher average balance and an increase in the cost of short-term borrowings.

 

Noninterest Income

 

Noninterest income for the second quarter of 2023 totaled $2.1 million, an increase of $1.0 million, or 92.4%, compared to the first quarter of 2023 and a decrease of $4.3 million, or 67.5%, compared to the second quarter of 2022.

 

The increase in noninterest income compared to the quarter ended March 31, 2023 is driven by a $0.8 million decrease in loss on sale or disposition of fixed assets primarily resulting from the sale of the Alice and Victoria, Texas branches in the first quarter of 2023, a $0.1 million loss on the sale of other real estate owned recorded in the first quarter of 2023, and a $0.2 million increase in other operating income, partially offset by a $0.1 million decrease in the change in fair value of equity securities. The increase in other operating income is primarily attributable to a $0.1 million increase in the change in the net asset value of other investments and a $0.1 million increase in distributions from investments. The decrease in noninterest income compared to the quarter ended June 30, 2022 is mainly attributable to $4.7 million in swap termination fees recorded in the second quarter of 2022 and a loss on sale or disposition of fixed assets of $0.1 million for the quarter ended June 30, 2023, compared to a loss on sale or disposition of fixed assets of $0.5 million for the quarter ended June 30, 2022 resulting from the consolidation of two branch locations.

 

Swap termination fees of $4.7 million were recorded for the quarter ended June 30, 2022 when the Bank voluntarily terminated a number of its interest rate swap agreements in response to market conditions. The Bank had no current or forward starting interest rate swap contracts as of June 30, 2023

 

Noninterest Expense

 

Noninterest expense for the second quarter of 2023 totaled $15.2 million, a decrease of $0.9 million, or 5.8%, compared to the first quarter of 2023, and a decrease of $0.3 million, or 2.0%, compared to the second quarter of 2022

 

The decrease in noninterest expense for the quarter ended June 30, 2023 compared to the quarter ended March 31, 2023 was primarily driven by $0.7 million in expenses as a result of the sale of the Alice and Victoria, Texas branch locations in the first quarter of 2023. As a result of the sale of the Alice and Victoria, Texas branches, Investar recorded $0.4 million of occupancy expense to terminate the remaining contractually obligated lease payments, $0.1 million of salaries and employee benefits for severance, $0.1 million of professional fees for legal and consulting services, and $0.1 million of depreciation and amortization to accelerate the amortization of the remaining core deposit intangible. The remaining decrease is primarily due to a $0.2 million decrease in professional fees unrelated to the sale of the Alice and Victoria, Texas branch locations.

 

The decrease in noninterest expense for the quarter ended June 30, 2023 compared to the quarter ended June 30, 2022 is primarily a result of a $0.2 million decrease in depreciation and amortization, a $0.2 million decrease in professional fees, and a $0.2 million decrease in loss on early extinguishment of subordinated debt as a result of the redemption of the 6.00% Fixed-to-Floating Rate Subordinated Notes due in 2027 in the second quarter of 2022, partially offset by a $0.3 million increase in salaries and employee benefits. The decrease in depreciation and amortization is due to the closure of two branch locations in 2022, the sale of the Alice and Victoria, Texas branches in January 2023, and the closure of one branch location in the first quarter of 2023. The increase in salaries and employee benefits compared to the second quarter of 2022 is primarily due to an increase in health insurance claims. 

 

 

 

Taxes

 

Investar recorded an income tax expense of $1.5 million for the quarter ended June 30, 2023, which equates to an effective tax rate of 18.7%, compared to effective tax rates of 18.7% and 20.7% for the quarters ended March 31, 2023 and June 30, 2022, respectively.

 

Basic and Diluted Earnings Per Common Share

 

Investar reported basic and diluted earnings per common share of $0.67 for the quarter ended June 30, 2023, compared to basic and diluted earnings per common share of $0.38 for the quarter ended March 31, 2023, and basic and diluted earnings per common share of $0.92 for the quarter ended June 30, 2022.

 

About Investar Holding Corporation

 

Investar, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, National Association. The Bank currently operates 28 branch locations serving Louisiana, Texas, and Alabama. At June 30, 2023, the Bank had 338 full-time equivalent employees and total assets of $2.8 billion.

 

Non-GAAP Financial Measures

 

This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures and ratios include “tangible common equity,” “tangible assets,” “tangible equity to tangible assets,” “tangible book value per common share,” “core noninterest income,” “core earnings before noninterest expense,” “core noninterest expense,” “core earnings before income tax expense,” “core income tax expense,” “core earnings,” “core efficiency ratio,” “core return on average assets,” “core return on average equity,” “core basic earnings per share,” and “core diluted earnings per share.” We also present certain average loan, yield, net interest income and net interest margin data adjusted to show the effects of, accelerated fee income for PPP loans, interest recoveries, and interest income accretion from the acquisition of loans. Management believes these non-GAAP financial measures provide information useful to investors in understanding Investar’s financial results, and Investar believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting Investar’s business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and Investar strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.

 

 

 

Forward-Looking and Cautionary Statements

 

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Investar’s current views with respect to, among other things, future events and financial performance. Investar generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words.

 

Any forward-looking statements contained in this press release are based on the historical performance of Investar and its subsidiaries or on Investar’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by Investar that the future plans, estimates or expectations by Investar will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to Investar’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if Investar’s underlying assumptions prove to be incorrect, Investar’s actual results may vary materially from those indicated in these statements. Investar does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. These factors include, but are not limited to, the following, any one or more of which could materially affect the outcome of future events:

 

 

the significant risks and uncertainties for our business, results of operations and financial condition, as well as our regulatory capital and liquidity ratios and other regulatory requirements caused by business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate, including risks and uncertainties caused by disruptions in the banking industry earlier this year, potential continued higher inflation and interest rates, supply and labor constraints, the war in Ukraine and the ongoing COVID-19 pandemic;

 

 

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

 

 

changes (or the lack of changes) in interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing, including potential continued increases in interest rates in 2023;

 

 

our ability to identify and enter into agreements to combine with attractive acquisition candidates, finance acquisitions, complete acquisitions after definitive agreements are entered into, and successfully integrate and grow acquired operations;

 

 

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

 

 

changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers;

 

 

a reduction in liquidity, including as a result of a reduction in the amount of deposits we hold or other sources of liquidity, which may continue to be adversely impacted by the disruptions in the banking industry earlier this year causing bank depositors to move uninsured deposits to other banks or alternative investments outside the banking industry;

 

 

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

 

 

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

 

 

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

 

 

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

 

 

concentration of credit exposure;

 

 

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

 

 

fluctuations in the price of oil and natural gas;

 

 

data processing system failures and errors;

 

 

cyberattacks and other security breaches; and

 

 

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

 

 

 

These factors should not be construed as exhaustive. Additional information on these and other risk factors can be found in Item 1A. “Risk Factors” and in the “Special Note Regarding Forward-Looking Statements” in Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Investar’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) and in Item 1A. “Risk Factors” in Investar’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2023 filed with the SEC.

 

For further information contact:

 

Investar Holding Corporation

John Campbell

Executive Vice President and Chief Financial Officer

(225) 227-2215

John.Campbell@investarbank.com

 

 

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

   

As of and for the three months ended

   

6/30/2023

 

3/31/2023

 

6/30/2022

 

Linked Quarter

 

Year/Year

EARNINGS DATA

                                       

Total interest income

  $ 32,396     $ 30,977     $ 24,328       4.6 %     33.2 %

Total interest expense

    14,009       10,804       2,350       29.7       496.1  

Net interest income

    18,387       20,173       21,978       (8.9 )     (16.3 )

Provision for credit losses

    (2,840 )     388       941       (832.0 )     (401.8 )

Total noninterest income

    2,070       1,076       6,378       92.4       (67.5 )

Total noninterest expense

    15,241       16,175       15,552       (5.8 )     (2.0 )

Income before income tax expense

    8,056       4,686       11,863       71.9       (32.1 )

Income tax expense

    1,509       874       2,459       72.7       (38.6 )

Net income

  $ 6,547     $ 3,812     $ 9,404       71.7       (30.4 )
                                         

AVERAGE BALANCE SHEET DATA

                                       

Total assets

  $ 2,748,171     $ 2,735,823     $ 2,553,849       0.5 %     7.6 %

Total interest-earning assets

    2,611,172       2,615,097       2,384,385       (0.2 )     9.5  

Total loans

    2,100,751       2,103,989       1,896,574       (0.2 )     10.8  

Total interest-bearing deposits

    1,655,506       1,557,665       1,498,354       6.3       10.5  

Total interest-bearing liabilities

    2,013,482       1,961,302       1,698,613       2.7       18.5  

Total deposits

    2,145,629       2,108,168       2,109,972       1.8       1.7  

Total stockholders’ equity

    221,528       219,690       229,949       0.8       (3.7 )
                                         

PER SHARE DATA

                                       

Earnings:

                                       

Basic earnings per common share

  $ 0.67     $ 0.38     $ 0.92       76.3 %     (27.2 )%

Diluted earnings per common share

    0.67       0.38       0.92       76.3       (27.2 )

Core Earnings(1):

                                       

Core basic earnings per common share(1)

    0.67       0.52       0.62       28.8       8.1  

Core diluted earnings per common share(1)

    0.67       0.51       0.62       31.4       8.1  

Book value per common share

    22.21       22.06       21.88       0.7       1.5  

Tangible book value per common share(1)

    17.87       17.74       17.54       0.7       1.9  

Common shares outstanding

    9,831,145       9,900,648       10,024,997       (0.7 )     (1.9 )

Weighted average common shares outstanding - basic

    9,880,721       9,908,931       10,149,246       (0.3 )     (2.6 )

Weighted average common shares outstanding - diluted

    9,881,385       9,992,467       10,233,539       (1.1 )     (3.4 )
                                         

PERFORMANCE RATIOS

                                       

Return on average assets

    0.96 %     0.57 %     1.48 %     68.4 %     (35.1 )%

Core return on average assets(1)

    0.97       0.76       0.99       27.6       (2.0 )

Return on average equity

    11.85       7.04       16.40       68.3       (27.7 )

Core return on average equity(1)

    11.98       9.46       11.04       26.6       8.5  

Net interest margin

    2.82       3.13       3.70       (9.9 )     (23.8 )

Net interest income to average assets

    2.68       2.99       3.45       (10.4 )     (22.3 )

Noninterest expense to average assets

    2.22       2.40       2.44       (7.5 )     (9.0 )

Efficiency ratio(2)

    74.50       76.12       54.85       (2.1 )     35.8  

Core efficiency ratio(1)

    74.21       69.89       63.21       6.2       17.4  

Dividend payout ratio

    14.93       25.00       9.78       (40.3 )     52.7  

Net (recoveries) charge-offs to average loans

    (0.11 )     0.01             (1,200.0 )      

 

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

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

 

 

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Unaudited)

 

   

As of and for the three months ended

   

6/30/2023

 

3/31/2023

 

6/30/2022

 

Linked Quarter

 

Year/Year

ASSET QUALITY RATIOS

                                       

Nonperforming assets to total assets

    0.40 %     0.23 %     0.79 %     73.9 %     (49.4 )%

Nonperforming loans to total loans

    0.34       0.27       0.89       25.9       (61.8 )

Allowance for credit losses to total loans

    1.44       1.45       1.15       (0.7 )     25.2  

Allowance for credit losses to nonperforming loans

    429.60       535.55       128.93       (19.8 )     233.2  
                                         

CAPITAL RATIOS

                                       

Investar Holding Corporation:

                                       

Total equity to total assets

    7.93 %     7.94 %     8.47 %     (0.1 )%     (6.4 )%

Tangible equity to tangible assets(1)

    6.48       6.48       6.90       (0.0 )     (6.1 )

Tier 1 leverage ratio

    8.45       8.30       8.57       1.8       (1.4 )

Common equity tier 1 capital ratio(2)

    9.86       9.64       9.73       2.3       1.3  

Tier 1 capital ratio(2)

    10.28       10.06       10.17       2.2       1.1  

Total capital ratio(2)

    13.47       13.24       13.28       1.7       1.4  

Investar Bank:

                                       

Tier 1 leverage ratio

    9.96       9.72       10.05       2.5       (0.9 )

Common equity tier 1 capital ratio(2)

    12.10       11.78       11.94       2.7       1.3  

Tier 1 capital ratio(2)

    12.10       11.78       11.94       2.7       1.3  

Total capital ratio(2)

    13.35       13.03       12.98       2.5       2.9  

 

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

(2) Estimated for June 30, 2023.

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

(Unaudited)

 

   

June 30, 2023

 

March 31, 2023

 

June 30, 2022

ASSETS

                       

Cash and due from banks

  $ 34,697     $ 30,571     $ 31,598  

Interest-bearing balances due from other banks

    31,082       722       18,852  

Federal funds sold

    128             500  

Cash and cash equivalents

    65,907       31,293       50,950  
                         

Available for sale securities at fair value (amortized cost of $452,053, $462,332, and $462,773, respectively)

    389,583       406,107       421,285  

Held to maturity securities at amortized cost (estimated fair value of $17,913, $7,805, and $9,580, respectively)

    17,812       8,048       9,701  

Loans

    2,084,863       2,109,044       1,916,395  

Less: allowance for credit losses

    (30,044 )     (30,521 )     (21,954 )

Loans, net

    2,054,819       2,078,523       1,894,441  

Equity securities

    14,938       24,617       22,639  

Bank premises and equipment, net of accumulated depreciation of $21,886, $21,670, and $20,562, respectively

    45,925       47,698       51,296  

Other real estate owned, net

    4,137       662       3,397  

Accrued interest receivable

    12,661       12,947       10,905  

Deferred tax asset

    17,658       16,434       11,506  

Goodwill and other intangible assets, net

    42,677       42,864       43,580  

Bank owned life insurance

    58,068       57,715       56,692  

Other assets

    29,489       24,761       14,215  

Total assets

  $ 2,753,674     $ 2,751,669     $ 2,590,607  
                         

LIABILITIES

                       

Deposits

                       

Noninterest-bearing

  $ 488,311     $ 508,241     $ 615,779  

Interest-bearing

    1,692,542       1,637,406       1,446,891  

Total deposits

    2,180,853       2,145,647       2,062,670  

Advances from Federal Home Loan Bank

    23,500       300,116       239,800  

Bank Term Funding Program

    235,800              

Federal funds purchased

          440        

Repurchase agreements

    5,183             147  

Subordinated debt, net of unamortized issuance costs

    44,272       44,248       44,216  

Junior subordinated debt

    8,574       8,545       8,452  

Accrued taxes and other liabilities

    37,135       34,215       15,953  

Total liabilities

    2,535,317       2,533,211       2,371,238  
                         

STOCKHOLDERS’ EQUITY

                       

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

                 

Common stock, $1.00 par value per share; 40,000,000 shares authorized; 9,831,145, 9,900,648, and 10,024,997 shares issued and outstanding, respectively

    9,831       9,901       10,025  

Surplus

    145,347       146,027       148,230  

Retained earnings

    112,344       106,780       93,888  

Accumulated other comprehensive loss

    (49,165 )     (44,250 )     (32,774 )

Total stockholders’ equity

    218,357       218,458       219,369  

Total liabilities and stockholders’ equity

  $ 2,753,674     $ 2,751,669     $ 2,590,607  

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except share data)

(Unaudited)

 

   

For the three months ended

   

June 30, 2023

 

March 31, 2023

 

June 30, 2022

INTEREST INCOME

                       

Interest and fees on loans

  $ 28,513     $ 27,359     $ 21,765  

Interest on investment securities

                       

Taxable

    3,262       3,085       2,234  

Tax-exempt

    119       105       129  

Other interest income

    502       428       200  

Total interest income

    32,396       30,977       24,328  
                         

INTEREST EXPENSE

                       

Interest on deposits

    9,534       6,221       907  

Interest on borrowings

    4,475       4,583       1,443  

Total interest expense

    14,009       10,804       2,350  

Net interest income

    18,387       20,173       21,978  
                         

Provision for credit losses

    (2,840 )     388       941  

Net interest income after provision for credit losses

    21,227       19,785       21,037  
                         

NONINTEREST INCOME

                       

Service charges on deposit accounts

    746       740       804  

Loss on call or sale of investment securities, net

          (1 )      

Loss on sale or disposition of fixed assets, net

    (58 )     (859 )     (461 )

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

    5       (142 )     (84 )

Swap termination fee income

                4,733  

Gain on sale of loans

          75       4  

Servicing fees and fee income on serviced loans

    4       6       23  

Interchange fees

    443       438       535  

Income from bank owned life insurance

    353       336       326  

Change in the fair value of equity securities

    (107 )     (4 )     (86 )

Other operating income

    684       487       584  

Total noninterest income

    2,070       1,076       6,378  

Income before noninterest expense

    23,297       20,861       27,415  
                         

NONINTEREST EXPENSE

                       

Depreciation and amortization

    919       1,052       1,122  

Salaries and employee benefits

    9,343       9,334       9,063  

Occupancy

    646       1,024       751  

Data processing

    827       875       727  

Marketing

    82       69       83  

Professional fees

    323       633       499  

Loss on early extinguishment of subordinated debt

                222  

Other operating expenses

    3,101       3,188       3,085  

Total noninterest expense

    15,241       16,175       15,552  

Income before income tax expense

    8,056       4,686       11,863  

Income tax expense

    1,509       874       2,459  

Net income

  $ 6,547     $ 3,812     $ 9,404  
                         

EARNINGS PER SHARE

                       

Basic earnings per common share

  $ 0.67     $ 0.38     $ 0.92  

Diluted earnings per common share

    0.67       0.38       0.92  

Cash dividends declared per common share

    0.10       0.095       0.09  

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

   

For the three months ended

 
   

June 30, 2023

   

March 31, 2023

   

June 30, 2022

 
           

Interest

                 

Interest

                 

Interest

       
   

Average

 

Income/

         

Average

 

Income/

         

Average

 

Income/

       
   

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

Assets

                                                                       

Interest-earning assets:

                                                                       

Loans

  $ 2,100,751     $ 28,513       5.44 %   $ 2,103,989     $ 27,359       5.27 %   $ 1,896,574     $ 21,765       4.60 %

Securities:

                                                                       

Taxable

    460,765       3,262       2.84       459,099       3,085       2.73       441,313       2,234       2.03  

Tax-exempt

    17,235       119       2.77       16,496       105       2.58       19,331       129       2.67  

Interest-bearing balances with banks

    32,421       502       6.22       35,513       428       4.89       27,167       200       2.96  

Total interest-earning assets

    2,611,172       32,396       4.98       2,615,097       30,977       4.80       2,384,385       24,328       4.09  

Cash and due from banks

    30,326                       31,356                       37,232                  

Intangible assets

    42,777                       43,000                       43,701                  

Other assets

    94,467                       76,695                       110,185                  

Allowance for credit losses

    (30,571 )                     (30,325 )                     (21,654 )                

Total assets

  $ 2,748,171                     $ 2,735,823                     $ 2,553,849                  
                                                                         

Liabilities and stockholders’ equity

                                                                       

Interest-bearing liabilities:

                                                                       

Deposits:

                                                                       

Interest-bearing demand deposits

  $ 683,016     $ 2,013       1.18 %   $ 736,083     $ 1,594       0.88 %   $ 927,853     $ 393       0.17 %

Brokered demand deposits

                                        3,956       5       0.52  

Savings deposits

    127,028       22       0.07       146,093       16       0.04       179,867       21       0.05  

Brokered time deposits

    151,370       1,870       4.95       67,088       773       4.68                    

Time deposits

    694,092       5,629       3.25       608,401       3,838       2.56       386,678       488       0.51  

Total interest-bearing deposits

    1,655,506       9,534       2.31       1,557,665       6,221       1.62       1,498,354       907       0.24  

Short-term borrowings

    281,651       3,572       5.09       301,033       3,562       4.80       51,866       149       1.15  

Long-term debt

    76,325       903       4.74       102,604       1,021       4.04       148,393       1,294       3.50  

Total interest-bearing liabilities

    2,013,482       14,009       2.79       1,961,302       10,804       2.23       1,698,613       2,350       0.55  

Noninterest-bearing deposits

    490,123                       550,503                       611,618                  

Other liabilities

    23,038                       4,328                       13,669                  

Stockholders’ equity

    221,528                       219,690                       229,949                  

Total liability and stockholders’ equity

  $ 2,748,171                     $ 2,735,823                     $ 2,553,849                  

Net interest income/net interest margin

          $ 18,387       2.82 %           $ 20,173       3.13 %           $ 21,978       3.70 %

 

 

 

INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

INTEREST EARNED AND YIELD ANALYSIS ADJUSTED FOR ACCELERATED PPP INCOME, INTEREST RECOVERIES, AND ACCRETION
(Amounts in thousands)
(Unaudited)

 

   

For the three months ended

 
   

June 30, 2023

   

March 31, 2023

   

June 30, 2022

 
           

Interest

                 

Interest

                 

Interest

       
   

Average

 

Income/

         

Average

 

Income/

         

Average

 

Income/

       
   

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

Interest-earning assets:

                                                                       

Loans

  $ 2,100,751     $ 28,513       5.44 %   $ 2,103,989     $ 27,359       5.27 %   $ 1,896,574     $ 21,765       4.60 %

Adjustments:

                                                                       

Accelerated fee income for forgiven or paid off PPP loans

                                                        295          

Interest recoveries

                                  141                       36          

Accretion

            47                       55                       159          

Adjusted loans

    2,100,751       28,466       5.44       2,103,989       27,163       5.24       1,896,574       21,275       4.50  

Securities:

                                                                       

Taxable

    460,765       3,262       2.84       459,099       3,085       2.73       441,313       2,234       2.03  

Tax-exempt

    17,235       119       2.77       16,496       105       2.58       19,331       129       2.67  

Interest-bearing balances with banks

    32,421       502       6.22       35,513       428       4.89       27,167       200       2.96  

Adjusted interest-earning assets

    2,611,172       32,349       4.97       2,615,097       30,781       4.77       2,384,385       23,838       4.01  
                                                                         

Total interest-bearing liabilities

    2,013,482       14,009       2.79       1,961,302       10,804       2.23       1,698,613       2,350       0.55  
                                                                         

Adjusted net interest income/adjusted net interest margin

          $ 18,340       2.82 %           $ 19,977       3.10 %           $ 21,488       3.61 %

 

 

 

INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

 

   

June 30, 2023

 

March 31, 2023

 

June 30, 2022

Tangible common equity

                       

Total stockholders’ equity

  $ 218,357     $ 218,458     $ 219,369  

Adjustments:

                       

Goodwill

    40,088       40,088       40,088  

Core deposit intangible

    2,489       2,676       3,392  

Trademark intangible

    100       100       100  

Tangible common equity

  $ 175,680     $ 175,594     $ 175,789  

Tangible assets

                       

Total assets

  $ 2,753,674     $ 2,751,669     $ 2,590,607  

Adjustments:

                       

Goodwill

    40,088       40,088       40,088  

Core deposit intangible

    2,489       2,676       3,392  

Trademark intangible

    100       100       100  

Tangible assets

  $ 2,710,997     $ 2,708,805     $ 2,547,027  
                         

Common shares outstanding

    9,831,145       9,900,648       10,024,997  

Tangible equity to tangible assets

    6.48 %     6.48 %     6.90 %

Book value per common share

  $ 22.21     $ 22.06     $ 21.88  

Tangible book value per common share

    17.87       17.74       17.54  

 

 

 

INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

 

     

Three months ended

     

6/30/2023

 

3/31/2023

 

6/30/2022

Net interest income

(a)

  $ 18,387     $ 20,173     $ 21,978  

Provision for credit losses

      (2,840 )     388       941  

Net interest income after provision for credit losses

      21,227       19,785       21,037  
                           

Noninterest income

(b)

    2,070       1,076       6,378  

Loss on call or sale of investment securities, net

            1        

Loss on sale or disposition of fixed assets, net

      58       859       461  

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

      (5 )     142       84  

Swap termination fee income

                  (4,733 )

Gain on sale of loans(1)

            (75 )      

Change in the fair value of equity securities

      107       4       86  

Change in the net asset value of other investments(2)

      (78 )     33        

Core noninterest income

(d)

    2,152       2,040       2,276  
                           

Core earnings before noninterest expense

      23,379       21,825       23,313  
                           

Total noninterest expense

(c)

    15,241       16,175       15,552  

Loss on early extinguishment of subordinated debt

                  (222 )

Divestiture expense(3)

            (651 )      

Core noninterest expense

(f)

    15,241       15,524       15,330  
                           

Core earnings before income tax expense

      8,138       6,301       7,983  

Core income tax expense(4)

      1,522       1,178       1,655  

Core earnings

    $ 6,616     $ 5,123     $ 6,328  
                           

Core basic earnings per common share

      0.67       0.52       0.62  
                           

Diluted earnings per common share (GAAP)

    $ 0.67     $ 0.38     $ 0.92  

Loss on sale or disposition of fixed assets, net

            0.07       0.03  

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

            0.01       0.01  

Swap termination fee income

                  (0.37 )

Gain on sale of loans(1)

            (0.01 )      

Change in the fair value of equity securities

      0.01             0.01  

Change in the net asset value of other investments(2)

      (0.01 )            

Loss on early extinguishment of subordinated debt

                  0.02  

Divestiture expense(3)

            0.06        

Core diluted earnings per common share

    $ 0.67     $ 0.51     $ 0.62  
                           

Efficiency ratio

(c) / (a+b)

    74.50 %     76.12 %     54.85 %

Core efficiency ratio

(f) / (a+d)

    74.21       69.89       63.21  

Core return on average assets(5)

      0.97       0.76       0.99  

Core return on average equity(5)

      11.98       9.46       11.04  

Total average assets

    $ 2,748,171     $ 2,735,823     $ 2,553,849  

Total average stockholders’ equity

      221,528       219,690       229,949  

 

(1) Adjustment to noninterest income recorded upon completion of the sale of the Alice and Victoria branches for remaining discount on loans sold.

(2) Change in net asset value of other investments represents unrealized gains or losses or Investar’s investments in Small Business Investment Companies and other investment funds and is included in other operating income in the accompanying consolidated statements of income.

(3) Adjustments to noninterest expense directly attributable to the sale of the Alice and Victoria, Texas branch locations, consisting of $0.4 million of occupancy expense to terminate the remaining contractually obligated lease payments, $0.1 million of salaries and employee benefits for severance, $0.1 million of professional fees for legal and consulting services, and $0.1 million of depreciation and amortization to accelerate the amortization of the remaining core deposit intangible.
(4) Core income tax expense is calculated using the effective tax rates of 18.7%18.7% and 20.7% for the quarters ended June 30, 2023March 31, 2023 and June 30, 2022, respectively.
(5) Core earnings used in calculation. No adjustments were made to average assets or average equity.

 

 
EX-101.SCH 3 istr-20230720.xsd XBRL TAXONOMY EXTENSION SCHEMA 000 - Document - Document And Entity Information link:calculationLink link:definitionLink link:presentationLink EX-101.DEF 4 istr-20230720_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 5 istr-20230720_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE Entity [Domain] Legal Entity [Axis] Document Information [Line Items] Document Information [Table] Document, Type Document, Period End Date Entity, Registrant Name Entity, Incorporation, State or Country Code Entity, File Number Entity, Tax Identification Number Entity, Address, Address Line One Entity, Address, City or Town Entity, Address, State or Province Entity, Address, Postal Zip Code City Area Code Local Phone Number Written Communications Soliciting Material Pre-commencement Tender Offer Pre-commencement Issuer Tender Offer Title of 12(b) Security Trading Symbol Security Exchange Name Entity, Emerging Growth Company Amendment Flag Entity, Central Index Key EX-101.PRE 6 istr-20230720_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 7 R1.htm IDEA: XBRL DOCUMENT v3.23.2
Document And Entity Information
Jul. 20, 2023
Document Information [Line Items]  
Entity, Registrant Name Investar Holding Corporation
Document, Type 8-K
Document, Period End Date Jul. 20, 2023
Entity, Incorporation, State or Country Code LA
Entity, File Number 001-36522
Entity, Tax Identification Number 27-1560715
Entity, Address, Address Line One 10500 Coursey Blvd
Entity, Address, City or Town Baton Rouge
Entity, Address, State or Province LA
Entity, Address, Postal Zip Code 70816
City Area Code 225
Local Phone Number 227-2222
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common stock
Trading Symbol ISTR
Security Exchange Name NASDAQ
Entity, Emerging Growth Company false
Amendment Flag false
Entity, Central Index Key 0001602658