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): October 27, 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:

 

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

 

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

 

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

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 



 

Item 2.02

Results of Operations and Financial Condition.

On October 27, 2016, Investar Holding Corporation issued a press release announcing its financial results for the quarter ended September 30, 2016. A copy of the press release is furnished as exhibit 99.1 to this Current Report on Form 8-K.

The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.

 

Item 9.01

Financial Statements and Exhibits.

(d) Exhibits

 

Exhibit Number

 

Description of Exhibit

 

 

 

99.1

 

Press release of Investar Holding Corporation dated October 27, 2016 announcing financial results for the quarter ended September 30, 2016.

 



SIGNATURES

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

 

 

 

 

 

 

 

 

 

 

 

 

INVESTAR HOLDING CORPORATION

 

 

 

 

Date: October 27, 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 October 27, 2016 announcing financial results for the quarter ended September 30, 2016.

 

Exhibit 99.1

For Immediate Release

 

Investar Holding Corporation Announces 2016 Third Quarter Results

 

BATON ROUGE, LA (October 27, 2016) – Investar Holding Corporation (NASDAQ: ISTR) (the “Company”), the holding company for Investar Bank (the “Bank”), today announced financial results for the quarter ended September 30, 2016. The Company reported net income of $2.0 million, or $0.29 per diluted share for the third quarter of 2016, compared to $2.0 million, or $0.28 per diluted share for the quarter ended June 30, 2016, and $1.8 million, or $0.26 per diluted share, for the quarter ended September 30, 2015.

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

“We are pleased to have had another great quarter. Our focus on relationship banking continues to positively impact noninterest-bearing demand deposit growth, with 24.3% year-to-date growth. Also during the quarter, we repurchased over 80,000 shares of our common stock, delivering on our commitment to increase shareholder value.

Our prayers go out to those families and businesses affected by the record flooding that occurred in the greater Baton Rouge and surrounding areas in August. While none of our branches were significantly affected by the flood waters, some of our employees and their extended families were greatly impacted. As a member of the affected communities, we have set up programs to help employees and customers experiencing financial difficulty as a result of the flood. We will continue to assist the communities in any way that we can as they rebuild.”

Third Quarter Highlights

 

Total loans, excluding loans held for sale, increased 13.6% year to date, or 18.1% annualized. Total loans, excluding loans held for sale, increased $29.3 million, or 3.6%, compared to June 30, 2016, and increased $136.3 million, or 19.2%, compared to September 30, 2015, to $846.8 million at September 30, 2016.

 

The business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $250.3 million at September 30, 2016, an increase of $23.7 million, or 10.5%, compared to $226.6 million at June 30, 2016, and an increase of $50.2 million, or 25.1%, compared to $200.1 million at September 30, 2015 .

 

Total noninterest-bearing deposits were $112.4 million at September 30, 2016, an increase of $2.6 million, or 2.4%, compared to June 30, 2016, and an increase of $17.9 million, or 20.7%, compared to September 20, 2015.

 

Total interest income increased $0.3 million, or 2.6%, compared to the quarter ended June 30, 2016, and increased $1.5 million, or 16.0%, compared to the quarter ended September 30, 2015, to $11.0 million for the quarter ended September 30, 2016.

 

Net charge-offs remain low, averaging 0.02% of total loans for the past eight quarters.

 

The Company repurchased 80,773 shares of the Company’s common stock through its stock repurchase program at an average price of $15.34 during the quarter ended September 30, 2016, leaving approximately 29,000 shares available for repurchase. In addition, on October 19, 2016, the board approved an additional 250,000 shares for repurchase under its stock repurchase program.

 

The Bank continues to invest in relationship banking through the hiring of an experienced Treasury Management Officer focused on the Baton Rouge market.

 

 



 

Loans

Total loans were $846.8 million at September 30, 2016, an increase of $29.3 million, or 3.6%, compared to June 30, 2016, and an increase of $136.3 million, or 19.2%, compared to September 30, 2015.

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Linked Qtr Change

 

 

Year/Year Change

 

 

Percentage of Total Loans

 

 

 

9/30/2016

 

 

6/30/2016

 

 

9/30/2015

 

 

$

 

 

%

 

 

$

 

 

%

 

 

9/30/2016

 

9/30/2015

 

Mortgage loans on real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and development

 

$

92,355

 

 

$

101,080

 

 

$

79,796

 

 

$

(8,725

)

 

 

-8.6

%

 

$

12,559

 

 

 

15.7

%

 

 

10.9

%

 

11.2

%

1-4 Family

 

 

175,392

 

 

 

166,778

 

 

 

154,277

 

 

 

8,614

 

 

 

5.2

 

 

 

21,115

 

 

 

13.6

 

 

 

20.7

 

 

21.7

 

Multifamily

 

 

42,560

 

 

 

37,300

 

 

 

24,484

 

 

 

5,260

 

 

 

14.1

 

 

 

18,076

 

 

 

73.8

 

 

 

5.0

 

 

3.5

 

Farmland

 

 

8,281

 

 

 

8,343

 

 

 

3,009

 

 

 

(62

)

 

 

(0.7

)

 

 

5,272

 

 

 

175.2

 

 

 

1.0

 

 

0.4

 

Commercial real estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owner-occupied

 

 

172,952

 

 

 

151,464

 

 

 

132,419

 

 

 

21,488

 

 

 

14.2

 

 

 

40,533

 

 

 

30.6

 

 

 

20.5

 

 

18.7

 

Nonowner-occupied

 

 

192,270

 

 

 

180,842

 

 

 

126,555

 

 

 

11,428

 

 

 

6.3

 

 

 

65,715

 

 

 

51.9

 

 

 

22.7

 

 

17.8

 

Commercial and industrial

 

 

77,312

 

 

 

75,103

 

 

 

67,671

 

 

 

2,209

 

 

 

2.9

 

 

 

9,641

 

 

 

14.2

 

 

 

9.1

 

 

9.5

 

Consumer

 

 

85,706

 

 

 

96,560

 

 

 

122,350

 

 

 

(10,854

)

 

 

(11.2

)

 

 

(36,644

)

 

 

30.0

 

 

 

10.1

 

 

17.2

 

Total loans

 

 

846,828

 

 

 

817,470

 

 

 

710,561

 

 

 

29,358

 

 

 

3.6

%

 

 

136,267

 

 

 

19.2

%

 

 

100

%

 

100

%

Loans held for sale

 

 

40,553

 

 

 

46,717

 

 

 

55,653

 

 

 

(6,164

)

 

 

(13.2

)

 

 

(15,100

)

 

 

(26.9

)

 

 

 

 

 

 

 

Total gross loans

 

$

887,381

 

 

$

864,187

 

 

$

766,214

 

 

$

23,194

 

 

 

2.7

%

 

$

121,167

 

 

 

15.8

%

 

 

 

 

 

 

 

Consumer loans, including consumer loans held for sale, totaled $126.3 million at September 30, 2016, a decrease of $17.0 million, or 11.9%, compared to $143.3 million at June 30, 2016, and a decrease of $49.4 million, or 28.1%, compared to $175.7 million at September 30, 2015. The decrease compared to the linked quarter is mainly attributable to principal payments on consumer loan balances. Since the Bank discontinued accepting indirect auto loan applications at the end of 2015, which was the primary source of its consumer loan portfolio and consumer loans held for sale, the consumer loan portfolio is expected to decrease over time. The Bank currently has the intent and ability to sell the balance of the consumer loans classified as held for sale at September 30, 2016, however, if this classification were to change, the loans would be transferred to the consumer loan portfolio.

At September 30, 2016, the Company’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $250.3 million, an increase of $23.7 million, or 10.5%, compared to the business lending portfolio of $226.6 million at June 30, 2016 and an increase of $50.2 million, or 25.1%, compared to the business lending portfolio of $200.1 million at September 30, 2015.

Credit Quality

Nonperforming loans were $9.0 million, or 1.06% of total loans, at September 30, 2016, an increase of $3.5 million, or 63.7%, compared to $5.5 million, or 0.67% of total loans, at June 30, 2016, and an increase of $6.4 million, or 243%, compared to $2.6 million, or 0.37% of total loans, at September 30, 2015. The allowance for loan losses was $7.4 million, or 82.4% and 0.87% of nonperforming loans and total loans, respectively, at September 30, 2016, compared to $7.1 million, or 129.6% and 0.87% of nonperforming loans and total loans, respectively, at June 30, 2016, and $5.9 million, or 226.4% and 0.83% of nonperforming loans and total loans, respectively, at September 30, 2015. The allowance for loan losses plus the fair value marks on acquired loans was 0.95% of total loans at September 30, 2016 compared to 0.95% at June 30, 2016 and 0.93% at September 30, 2015. The increase in nonperforming loans and the decrease in the allowance for loan losses as a percentage of nonperforming loans at September 30, 2016 when compared to both June 30, 2016 and September 30, 2015 are mainly attributable to a $4.7 million owner-occupied commercial real estate relationship. Management has evaluated the loan relationship and has recorded a specific reserve of approximately $0.5 million in the allowance for loan losses. Also included in nonperforming loans is a $2.6 million commercial and industrial loan relationship not related to the oil and gas industry that was placed on nonaccrual status in the second quarter of 2016, as mentioned in a prior release. The Company has determined that a specific reserve is no longer required on the loan as it believes sufficient collateral exists after receiving additional cash collateral from the borrower. Subsequent to the end of the third quarter, the Company received a $0.5 million principal pay-down on this loan relationship. A bankruptcy plan was accepted by the borrower’s creditors and the Company does not expect a loss on this loan at this time. As a result of the loan remaining current throughout the bankruptcy process and the additional cash collateral, the Company anticipates the loan to be placed back on accrual during the fourth quarter.

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


The provision for loan loss expense was $0.5 million for the third quarter of 2016, a decrease of $0.4 million and an increase of $0.1 million compared to June 30, 2016 and September 30, 2015, respectively. The decrease in the provision for loan loss expense for the third quarter of 2016 when compared to the second quarter of 2016 is attributable to the specific reserve that was recorded during the second quarter for the comm ercial and industrial loan relationship mentioned above.

Management continues to monitor the Company’s loan portfolio for exposure to potential negative impacts of suppressed oil and gas prices. We consider our exposure to the energy sector not to be significant, at less than one percent of the total loan portfolio at September 30, 2016. However, should the price of oil and gas decline further and/or remain at the current low price for an extended period, the general economic conditions in our south Louisiana markets could be negatively affected and could negatively impact borrowers’ ability to service their debt. Management continually evaluates the allowance for loan losses based on several factors, including economic conditions, and currently believes that any potential negatively affected future cash flows related to these loans would be covered by the current allowance for loan losses.

Deposits

Total deposits at September 30, 2016 were $907.0 million, an increase of $39.8 million, or 4.6%, compared to June 30, 2016 and an increase of $176.6 million, or 25.0%, compared to September 30, 2015. The increase in total deposits was driven by an increase in noninterest-bearing deposits of $17.9 million, or 20.7%, an increase in money market accounts of $27.9 million, or 30.3%, and an increase in time deposits of $115.4 million, or 33.6%, compared to September 30, 2015.

The Company’s focus on relationship banking continues to positively impact noninterest-bearing demand deposit growth.

 

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

  

 

 

 

 

 

 

 

 

 

 

 

 

 

Linked Qtr Change

 

 

Year/Year Change

 

 

Percentage of

Total Deposits

 

 

 

9/30/2016

 

 

6/30/2016

 

 

9/30/2015

 

 

$

 

 

%

 

 

$

 

 

%

 

 

9/30/2016

 

 

9/30/2015

 

Noninterest-bearing demand deposits

 

$

112,414

 

 

$

109,828

 

 

$

94,533

 

 

$

2,586

 

 

 

2.4

%

 

$

17,881

 

 

 

20.7

%

 

 

12.4

%

 

 

12.9

%

NOW accounts

 

 

150,551

 

 

 

139,893

 

 

 

132,739

 

 

 

10,658

 

 

 

7.6

 

 

 

17,812

 

 

 

13.6

 

 

 

16.6

 

 

 

18.2

 

Money market deposit accounts

 

 

123,487

 

 

 

108,552

 

 

 

95,584

 

 

 

14,935

 

 

 

13.8

 

 

 

27,903

 

 

 

30.3

 

 

 

13.6

 

 

 

13.1

 

Savings accounts

 

 

51,332

 

 

 

52,899

 

 

 

53,717

 

 

 

(1,567

)

 

 

(3.0

)

 

 

(2,385

)

 

 

(4.5

)

 

5.7

 

 

7.3

 

Time deposits

 

 

469,267

 

 

 

456,033

 

 

 

353,861

 

 

 

13,234

 

 

 

2.9

 

 

 

115,406

 

 

 

33.6

 

 

51.7

 

 

48.5

 

Total deposits

 

$

907,051

 

 

$

867,205

 

 

$

730,434

 

 

$

39,846

 

 

 

4.6

%

 

$

176,617

 

 

 

25.0

%

 

 

100

%

 

 

100

%

Net Interest Income

Net interest income for the third quarter of 2016 totaled $8.8 million, an increase of $0.1 million, or 1.1 %, compared to the second quarter of 2016, and an increase of $0.8 million, or 10.1%, compared to the third quarter of 2015. The increase was a direct result of continued growth of the Company’s loan portfolio with an increase in net interest income of $1.2 million due to an increase in volume offset by a $0.4 million decrease related to a reduction in yield compared to the third quarter of 2015.

The Company’s net interest margin was 3.23% for the quarter ended September 30 , 2016 compared to 3.38% for the second quarter of 2016 and 3.52% for the third quarter of 2015. The yield on interest-earning assets was 4.06% for the quarter ended September 30 , 2016 compared to 4.18% for the second quarter of 2016 and 4.20% for the third quarter of 2015. The decrease in net interest margin and yield on interest-earning assets when compared to the second quarter of 2016 is mainly attributable to the increase in nonaccrual loans during the third quarter, as discussed in Credit Quality above, as well as the decline in the yields on investment securities due to an increase in pay-downs of securities with unamortized premiums.

The cost of deposits increased two basis points for the quarter ended September 30, 2016 compared to the second quarter of 2016, and increased thirteen basis points compared to the third quarter of 2015. The increase in the cost of deposits when compared to the third quarter of 2015 is primarily a result of increases in time deposit rates. During the third quarter of 2016, the Company began lowering its rates on time deposits in an effort to begin reducing its cost of funds. Subsequent to the end of the quarter, time deposit rates have been lowered further as we attempt to improve our funding costs.


Noninterest Income

Noninterest income for the third quarter of 2016 totaled $1.0 million, a decrease of $1.2 million, or 54.4%, compared to the second quarter of 2016, and a decrease of $1.1 million, or 52.5%, compared to the third quarter of 2015. The decrease in noninterest income when compared to the quarter ended June 30, 2016 is mainly attributable to the $1.3 million gain on sale of fixed assets recognized for the sale of the land and building of one of the Bank’s branch locations to a healthcare company in the second quarter. The decrease in noninterest income when compared to the third quarter of 2015 is mainly due to the $1.0 million decrease in the gain on sale of loans. Since exiting the indirect auto loan origination business at the end of 2015 , the Bank has experienced decreased loan sales and has ceased originations of consumer loans held for sale. The Bank does intend to sell the balance of the consumer loans held for sale at September 30, 2016, however, it expects the gain on sale of loans to diminish over time.

Noninterest Expense

Noninterest expense for the third quarter of 2016 totaled $6.5 million, a decrease of $0.6 million, or 7.8%, compared to the second quarter of 2016, and a decrease of $0.5 million, or 6.6%, compared to the third quarter of 2015. The decrease in noninterest expense compared to the second quarter of 2016 is primarily due to $0.6 million in customer reimbursements that we paid to certain borrowers during the second quarter. The decrease in noninterest expense compared to the third quarter of 2015 is mainly due to a $0.2 million decrease in salaries and benefits and a $0.4 million decrease in other operating expenses.

Along with its normal operating expenses, during the third quarter of 2016 the Company recorded additional expense in other operating expenses of approximately $31,000 related to employee and community assistance as a result of the August flooding.

Basic Earnings Per Share and Diluted Earnings Per Share

The Company reported both basic and diluted earnings per share of $0.29 for the three months ended September 30 , 2016, an increase of $0.03, compared to basic and diluted earnings per share of $0.26 for the three months ended September 30, 2015.

Taxes

The Company recorded income tax expense of $0.7 million for the quarter ended September 30 , 2016, which equates to an effective tax rate of 26.8%. The Company recorded a $0.1 million tax benefit during the quarter related to the filing of its 2015 tax return which contributed to the lower effective tax rate during the quarter. Management expects the effective income tax rate to approximate 32.5% for the fourth quarter of 2016.

About Investar Holding Corporation

Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, a state chartered bank. The Company’s primary market is South Louisiana and it currently operates 10 full service banking offices located throughout its market. At September 30 , 2016, the Company had 155 full-time equivalent employees.


Non-GAAP Financial Measures

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

Forward-Looking Statements

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

concentration of credit exposur e.

 

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

 

 

For further information contact:

 

Investar Holding Corporation

Chris Hufft

Chief Financial Officer

(225) 227-2215

Chris.Hufft@investarbank.com

 



 

INVESTAR HOLDING CORPORATION

 

SUMMARY FINANCIAL INFORMATION

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the three months ended

 

 

 

9/30/2016

 

 

6/30/2016

 

 

9/30/2015

 

 

Linked Quarter

 

 

Year/Year

 

EARNINGS DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total interest income

 

$

10,993

 

 

$

10,719

 

 

$

9,480

 

 

 

2.6

%

 

 

16.0

%

Total interest expense

 

 

2,240

 

 

 

2,061

 

 

 

1,528

 

 

 

8.7

%

 

 

46.6

%

Net interest income

 

 

8,753

 

 

 

8,658

 

 

 

7,952

 

 

 

1.1

%

 

 

10.1

%

Provision for loan losses

 

 

450

 

 

 

800

 

 

 

400

 

 

 

-43.8

%

 

 

12.5

%

Total noninterest income

 

 

1,029

 

 

 

2,256

 

 

 

2,167

 

 

 

-54.4

%

 

 

-52.5

%

Total noninterest expense

 

 

6,548

 

 

 

7,104

 

 

 

7,013

 

 

 

-7.8

%

 

 

-6.6

%

Income before income taxes

 

 

2,784

 

 

 

3,010

 

 

 

2,706

 

 

 

-7.5

%

 

 

2.9

%

Income tax expense

 

 

747

 

 

 

1,005

 

 

 

850

 

 

 

-25.7

%

 

 

-12.1

%

Net income

 

$

2,037

 

 

$

2,005

 

 

$

1,856

 

 

 

1.6

%

 

 

9.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE BALANCE SHEET DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,134,591

 

 

$

1,086,604

 

 

$

944,234

 

 

 

4.4

%

 

 

20.2

%

Total interest-earning assets

 

 

1,075,145

 

 

 

1,028,360

 

 

 

895,208

 

 

 

4.5

%

 

 

20.1

%

Total loans

 

 

840,028

 

 

 

800,710

 

 

 

692,196

 

 

 

4.9

%

 

 

21.4

%

Total gross loans

 

 

874,272

 

 

 

852,475

 

 

 

777,080

 

 

 

2.6

%

 

 

12.5

%

Total interest-bearing deposits

 

 

784,591

 

 

 

739,678

 

 

 

634,232

 

 

 

6.1

%

 

 

23.7

%

Total interest-bearing liabilities

 

 

905,521

 

 

 

866,386

 

 

 

738,612

 

 

 

4.5

%

 

 

22.6

%

Total deposits

 

 

887,327

 

 

 

835,215

 

 

 

721,657

 

 

 

6.2

%

 

 

23.0

%

Total stockholders’ equity

 

 

113,056

 

 

 

112,035

 

 

 

107,795

 

 

 

0.9

%

 

 

4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.29

 

 

$

0.28

 

 

$

0.26

 

 

 

3.6

%

 

 

11.5

%

Diluted earnings per share

 

 

0.29

 

 

 

0.28

 

 

 

0.26

 

 

 

3.6

%

 

 

11.5

%

Book value per share

 

 

15.93

 

 

 

15.63

 

 

 

14.88

 

 

 

1.9

%

 

 

7.1

%

Tangible book value per share (1)

 

 

15.47

 

 

 

15.18

 

 

 

14.45

 

 

 

1.9

%

 

 

7.1

%

Common shares outstanding

 

 

7,131,186

 

 

 

7,214,734

 

 

 

7,264,261

 

 

 

-1.2

%

 

 

-1.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PERFORMANCE RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

 

0.71

%

 

 

0.74

%

 

 

0.78

%

 

 

-4.1

%

 

 

-9.0

%

Return on average equity

 

 

7.15

%

 

 

7.18

%

 

 

6.83

%

 

 

-0.4

%

 

 

4.7

%

Net interest margin

 

 

3.23

%

 

 

3.38

%

 

 

3.52

%

 

 

-4.4

%

 

 

-8.2

%

Net interest income to average assets

 

 

3.06

%

 

 

3.20

%

 

 

3.34

%

 

 

-4.4

%

 

 

-8.4

%

Noninterest expense to average assets

 

 

2.29

%

 

 

2.62

%

 

 

2.95

%

 

 

-12.6

%

 

 

-22.4

%

Efficiency ratio (2)

 

 

66.94

%

 

 

65.09

%

 

 

69.31

%

 

 

2.8

%

 

 

-3.4

%

Dividend payout ratio

 

 

3.81

%

 

 

3.57

%

 

 

3.19

%

 

 

6.7

%

 

 

19.4

%

Net charge-offs to average loans

 

 

0.02

%

 

 

0.02

%

 

 

0.03

%

 

 

0.0

%

 

 

33.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

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

 

 

 



 

INVESTAR HOLDING CORPORATION

 

SUMMARY FINANCIAL INFORMATION

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for the three months ended

 

 

 

9/30/2016

 

 

6/30/2016

 

 

9/30/2015

 

 

Linked Quarter

 

 

Year/Year

 

ASSET QUALITY RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming assets to total assets

 

 

0.80

%

 

 

0.51

%

 

 

0.40

%

 

 

56.9

%

 

 

100.0

%

Nonperforming loans to total loans

 

 

1.06

%

 

 

0.67

%

 

 

0.37

%

 

 

58.2

%

 

 

186.5

%

Allowance for loan losses to total loans

 

 

0.87

%

 

 

0.87

%

 

 

0.83

%

 

 

0.0

%

 

 

4.8

%

Allowance for loan losses to nonperforming loans

 

 

82.4

%

 

 

129.6

%

 

 

226.4

%

 

 

-36.4

%

 

 

-63.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CAPITAL RATIOS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Investar Holding Corporation:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total equity to total assets

 

 

9.84

%

 

 

10.01

%

 

 

11.53

%

 

 

-1.7

%

 

 

-14.7

%

Tangible equity to tangible assets (1)

 

 

9.59

%

 

 

9.75

%

 

 

11.23

%

 

 

-1.6

%

 

 

-14.6

%

Tier 1 leverage ratio

 

 

10.10

%

 

 

10.46

%

 

 

11.61

%

 

 

-3.4

%

 

 

-13.0

%

Common equity tier 1 capital ratio (2)

 

 

11.03

%

 

 

11.11

%

 

 

12.69

%

 

 

-0.7

%

 

 

-13.1

%

Tier 1 capital ratio (2)

 

 

11.38

%

 

 

11.47

%

 

 

13.11

%

 

 

-0.8

%

 

 

-13.2

%

Total capital ratio (2)

 

 

12.12

%

 

 

12.19

%

 

 

13.82

%

 

 

-0.6

%

 

 

-12.3

%

Investar Bank:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage ratio

 

 

9.94

%

 

 

10.26

%

 

 

11.25

%

 

 

-3.1

%

 

 

-11.6

%

Common equity tier 1 capital ratio (2)

 

 

11.20

%

 

 

11.25

%

 

 

12.71

%

 

 

-0.4

%

 

 

-11.9

%

Tier 1 capital ratio (2)

 

 

11.20

%

 

 

11.25

%

 

 

12.71

%

 

 

-0.4

%

 

 

-11.9

%

Total capital ratio (2)

 

 

11.94

%

 

 

11.97

%

 

 

13.42

%

 

 

-0.3

%

 

 

-11.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

(2) Estimated for September 30, 2016.

 



 

INVESTAR HOLDING CORPORATION

 

CONSOLIDATED BALANCE SHEETS

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2016

 

 

June 30, 2016

 

 

September 30, 2015

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

10,172

 

 

$

9,958

 

 

$

6,595

 

Interest-bearing balances due from other banks

 

 

35,811

 

 

 

27,175

 

 

 

13,058

 

Federal funds sold

 

 

172

 

 

 

1

 

 

 

223

 

Cash and cash equivalents

 

 

46,155

 

 

 

37,134

 

 

 

19,876

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Available for sale securities at fair value (amortized cost

   of $147,609, $149,986, and $84,218, respectively)

 

 

148,981

 

 

 

151,841

 

 

 

84,566

 

Held to maturity securities at amortized cost (estimated fair value

   of $21,625, $25,810, and $27,486, respectively)

 

 

21,454

 

 

 

25,656

 

 

 

27,525

 

Loans held for sale

 

 

40,553

 

 

 

46,717

 

 

 

55,653

 

Loans, net of allowance for loan losses of $7,383, $7,091, and $5,911,

   respectively

 

 

839,445

 

 

 

810,379

 

 

 

704,650

 

Other equity securities

 

 

7,388

 

 

 

7,371

 

 

 

4,899

 

Bank premises and equipment, net of accumulated depreciation

   of $6,380, $6,017, and $5,796, respectively

 

 

31,835

 

 

 

30,147

 

 

 

29,916

 

Other real estate owned, net

 

 

279

 

 

 

279

 

 

 

1,178

 

Accrued interest receivable

 

 

3,081

 

 

 

2,840

 

 

 

2,560

 

Deferred tax asset

 

 

1,384

 

 

 

1,459

 

 

 

1,803

 

Goodwill and other intangible assets

 

 

3,244

 

 

 

3,254

 

 

 

3,185

 

Bank-owned life insurance

 

 

7,150

 

 

 

7,101

 

 

 

-

 

Other assets

 

 

3,256

 

 

 

2,752

 

 

 

1,936

 

Total assets

 

$

1,154,205

 

 

$

1,126,930

 

 

$

937,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing

 

$

112,414

 

 

$

109,828

 

 

$

94,533

 

Interest-bearing

 

 

794,637

 

 

 

757,377

 

 

 

635,901

 

Total deposits

 

 

907,051

 

 

 

867,205

 

 

 

730,434

 

Advances from Federal Home Loan Bank

 

 

88,943

 

 

 

93,599

 

 

 

47,900

 

Repurchase agreements

 

 

23,554

 

 

 

28,854

 

 

 

34,648

 

Junior subordinated debt

 

 

3,609

 

 

 

3,609

 

 

 

3,609

 

Accrued taxes and other liabilities

 

 

17,472

 

 

 

20,900

 

 

 

13,028

 

Total liabilities

 

 

1,040,629

 

 

 

1,014,167

 

 

 

829,619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

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

   shares authorized

 

 

-

 

 

 

-

 

 

 

-

 

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

   7,359,666, 7,359,976, and 7,304,910 shares issued and 7,131,186,

   7,214,734, and 7,264,261 shares outstanding, respectively

 

 

7,360

 

 

 

7,360

 

 

 

7,305

 

Treasury stock

 

 

(3,526

)

 

 

(2,249

)

 

 

(630

)

Surplus

 

 

85,124

 

 

 

84,958

 

 

 

84,588

 

Retained earnings

 

 

24,465

 

 

 

22,507

 

 

 

17,257

 

Accumulated other comprehensive income (loss)

 

 

153

 

 

 

187

 

 

 

(392

)

Total stockholders’ equity

 

 

113,576

 

 

 

112,763

 

 

 

108,128

 

   Total liabilities and stockholders’ equity

 

$

1,154,205

 

 

$

1,126,930

 

 

$

937,747

 



 

INVESTAR HOLDING CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

For the nine months ended

 

 

 

September 30, 2016

 

 

June 30, 2016

 

 

September 30, 2015

 

 

September 30, 2016

 

 

September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

10,011

 

 

$

9,781

 

 

$

8,912

 

 

$

29,277

 

 

$

25,856

 

Interest on investment securities

 

 

920

 

 

 

891

 

 

 

550

 

 

 

2,667

 

 

 

1,558

 

Other interest income

 

 

62

 

 

 

47

 

 

 

18

 

 

 

146

 

 

 

53

 

Total interest income

 

 

10,993

 

 

 

10,719

 

 

 

9,480

 

 

 

32,090

 

 

 

27,467

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

 

1,934

 

 

 

1,763

 

 

 

1,358

 

 

 

5,212

 

 

 

3,849

 

Interest on borrowings

 

 

306

 

 

 

298

 

 

 

170

 

 

 

920

 

 

 

387

 

Total interest expense

 

 

2,240

 

 

 

2,061

 

 

 

1,528

 

 

 

6,132

 

 

 

4,236

 

Net interest income

 

 

8,753

 

 

 

8,658

 

 

 

7,952

 

 

 

25,958

 

 

 

23,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

 

450

 

 

 

800

 

 

 

400

 

 

 

1,704

 

 

 

1,500

 

Net interest income after provision for loan losses

 

 

8,303

 

 

 

7,858

 

 

 

7,552

 

 

 

24,254

 

 

 

21,731

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

 

79

 

 

 

88

 

 

 

95

 

 

 

264

 

 

 

286

 

Gain on sale of investment securities, net

 

 

204

 

 

 

144

 

 

 

334

 

 

 

428

 

 

 

468

 

Gain on sale of fixed assets, net

 

 

-

 

 

 

1,252

 

 

 

14

 

 

 

1,252

 

 

 

14

 

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

 

 

-

 

 

 

10

 

 

 

(147

)

 

 

11

 

 

 

(141

)

Gain on sale of loans, net

 

 

-

 

 

 

-

 

 

 

1,023

 

 

 

313

 

 

 

3,831

 

Fee income on loans held for sale, net

 

 

118

 

 

 

106

 

 

 

261

 

 

 

347

 

 

 

771

 

Servicing fees

 

 

392

 

 

 

431

 

 

 

429

 

 

 

1,291

 

 

 

1,082

 

Other operating income

 

 

236

 

 

 

225

 

 

 

158

 

 

 

666

 

 

 

462

 

Total noninterest income

 

 

1,029

 

 

 

2,256

 

 

 

2,167

 

 

 

4,572

 

 

 

6,773

 

Income before noninterest expense

 

 

9,332

 

 

 

10,114

 

 

 

9,719

 

 

 

28,826

 

 

 

28,504

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NONINTEREST EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

371

 

 

 

369

 

 

 

362

 

 

 

1,110

 

 

 

1,081

 

Salaries and employee benefits

 

 

3,945

 

 

 

3,890

 

 

 

4,161

 

 

 

11,708

 

 

 

12,040

 

Occupancy

 

 

265

 

 

 

242

 

 

 

217

 

 

 

743

 

 

 

655

 

Data processing

 

 

374

 

 

 

367

 

 

 

389

 

 

 

1,115

 

 

 

1,099

 

Marketing

 

 

102

 

 

 

102

 

 

 

35

 

 

 

316

 

 

 

155

 

Professional fees

 

 

312

 

 

 

375

 

 

 

271

 

 

 

966

 

 

 

770

 

Customer reimbursements

 

 

-

 

 

 

584

 

 

 

-

 

 

 

584

 

 

 

-

 

Other operating expenses

 

 

1,179

 

 

 

1,175

 

 

 

1,578

 

 

 

3,494

 

 

 

4,319

 

Total noninterest expense

 

 

6,548

 

 

 

7,104

 

 

 

7,013

 

 

 

20,036

 

 

 

20,119

 

Income before income tax expense

 

 

2,784

 

 

 

3,010

 

 

 

2,706

 

 

 

8,790

 

 

 

8,385

 

Income tax expense

 

 

747

 

 

 

1,005

 

 

 

850

 

 

 

2,758

 

 

 

2,766

 

Net income

 

$

2,037

 

 

$

2,005

 

 

$

1,856

 

 

$

6,032

 

 

$

5,619

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.29

 

 

$

0.28

 

 

$

0.26

 

 

$

0.85

 

 

$

0.78

 

Diluted earnings per share

 

$

0.29

 

 

$

0.28

 

 

$

0.26

 

 

$

0.84

 

 

$

0.78

 

Cash dividends declared per common share

 

$

0.01

 

 

$

0.01

 

 

$

0.01

 

 

$

0.03

 

 

$

0.02

 


 

 

 

INVESTAR HOLDING CORPORATION

 

EARNINGS PER COMMON SHARE

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

For the nine months ended

 

 

 

September 30, 2016

 

 

June 30, 2016

 

 

September 30, 2015

 

 

September 30, 2016

 

 

September 30, 2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common stockholders

 

$

2,037

 

 

$

2,005

 

 

$

1,856

 

 

$

6,032

 

 

$

5,619

 

Weighted average number of common shares

   outstanding used in computation of basic

   earnings per common share

 

 

7,059,953

 

 

 

7,158,532

 

 

 

7,217,006

 

 

 

7,137,398

 

 

 

7,218,603

 

Effect of dilutive securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock

 

 

15,546

 

 

 

15,298

 

 

 

9,326

 

 

 

8,991

 

 

 

4,812

 

Stock options

 

 

15,369

 

 

 

14,715

 

 

 

13,980

 

 

 

14,920

 

 

 

12,385

 

Stock warrants

 

 

11,575

 

 

 

11,231

 

 

 

12,269

 

 

 

11,360

 

 

 

11,284

 

Weighted average number of common shares

   outstanding plus effect of dilutive securities

   used in computation of diluted earnings per

   common share

 

 

7,102,443

 

 

 

7,199,776

 

 

 

7,252,581

 

 

 

7,172,669

 

 

 

7,247,084

 

Basic earnings per share

 

$

0.29

 

 

$

0.28

 

 

$

0.26

 

 

$

0.85

 

 

$

0.78

 

Diluted earnings per share

 

$

0.29

 

 

$

0.28

 

 

$

0.26

 

 

$

0.84

 

 

$

0.78

 

 



 

INVESTAR HOLDING CORPORATION

 

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the three months ended

 

 

 

September 30, 2016

 

 

June 30, 2016

 

 

September 30, 2015

 

 

 

Average

Balance

 

 

Interest

Income/

Expense

 

 

Yield/ Rate

 

 

Average

Balance

 

 

Interest

Income/

Expense

 

 

Yield/ Rate

 

 

Average

Balance

 

 

Interest

Income/

Expense

 

 

Yield/ Rate

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

874,272

 

 

$

10,011

 

 

 

4.54

%

 

$

852,475

 

 

$

9,781

 

 

 

4.60

%

 

$

777,080

 

 

$

8,912

 

 

 

4.55

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

136,047

 

 

 

728

 

 

 

2.12

 

 

 

129,126

 

 

 

732

 

 

 

2.27

 

 

 

82,476

 

 

 

444

 

 

 

2.14

 

Tax-exempt

 

 

30,733

 

 

 

192

 

 

 

2.48

 

 

 

25,105

 

 

 

159

 

 

 

2.54

 

 

 

17,234

 

 

 

106

 

 

 

2.44

 

Interest-bearing balances with banks

 

 

34,093

 

 

 

62

 

 

 

0.72

 

 

 

21,654

 

 

 

47

 

 

 

0.87

 

 

 

18,418

 

 

 

18

 

 

 

0.39

 

Total interest-earning assets

 

 

1,075,145

 

 

 

10,993

 

 

 

4.06

 

 

 

1,028,360

 

 

 

10,719

 

 

 

4.18

 

 

 

895,208

 

 

 

9,480

 

 

 

4.20

 

Cash and due from banks

 

 

7,138

 

 

 

 

 

 

 

 

 

 

 

7,647

 

 

 

 

 

 

 

 

 

 

 

5,669

 

 

 

 

 

 

 

 

 

Intangible assets

 

 

3,248

 

 

 

 

 

 

 

 

 

 

 

3,258

 

 

 

 

 

 

 

 

 

 

 

3,189

 

 

 

 

 

 

 

 

 

Other assets

 

 

56,273

 

 

 

 

 

 

 

 

 

 

 

54,123

 

 

 

 

 

 

 

 

 

 

 

46,061

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

 

(7,213

)

 

 

 

 

 

 

 

 

 

 

(6,784

)

 

 

 

 

 

 

 

 

 

 

(5,893

)

 

 

 

 

 

 

 

 

Total assets

 

$

1,134,591

 

 

 

 

 

 

 

 

 

 

$

1,086,604

 

 

 

 

 

 

 

 

 

 

$

944,234

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

 

$

262,841

 

 

$

433

 

 

 

0.65

%

 

$

247,052

 

 

$

393

 

 

 

0.64

%

 

$

229,919

 

 

$

369

 

 

 

0.64

%

Savings deposits

 

 

51,924

 

 

 

88

 

 

 

0.67

 

 

 

52,728

 

 

 

88

 

 

 

0.67

 

 

 

53,407

 

 

 

91

 

 

 

0.68

 

Time deposits

 

 

469,826

 

 

 

1,413

 

 

 

1.19

 

 

 

439,898

 

 

 

1,282

 

 

 

1.17

 

 

 

350,906

 

 

 

898

 

 

 

1.02

 

Total interest-bearing deposits

 

 

784,591

 

 

 

1,934

 

 

 

0.98

 

 

 

739,678

 

 

 

1,763

 

 

 

0.96

 

 

 

634,232

 

 

 

1,358

 

 

 

0.85

 

Short-term borrowings

 

 

98,286

 

 

 

237

 

 

 

0.96

 

 

 

103,274

 

 

 

229

 

 

 

0.89

 

 

 

68,544

 

 

 

32

 

 

 

0.19

 

Long-term debt

 

 

22,644

 

 

 

69

 

 

 

1.21

 

 

 

23,434

 

 

 

69

 

 

 

1.18

 

 

 

35,836

 

 

 

138

 

 

 

1.53

 

Total interest-bearing liabilities

 

 

905,521

 

 

 

2,240

 

 

 

0.98

 

 

 

866,386

 

 

 

2,061

 

 

 

0.95

 

 

 

738,612

 

 

 

1,528

 

 

 

0.82

 

Noninterest-bearing deposits

 

 

102,736

 

 

 

 

 

 

 

 

 

 

 

95,537

 

 

 

 

 

 

 

 

 

 

 

87,425

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

13,278

 

 

 

 

 

 

 

 

 

 

 

12,646

 

 

 

 

 

 

 

 

 

 

 

10,402

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

113,056

 

 

 

 

 

 

 

 

 

 

 

112,035

 

 

 

 

 

 

 

 

 

 

 

107,795

 

 

 

 

 

 

 

 

 

Total liability and stockholders’ equity

 

$

1,134,591

 

 

 

 

 

 

 

 

 

 

$

1,086,604

 

 

 

 

 

 

 

 

 

 

$

944,234

 

 

 

 

 

 

 

 

 

Net interest income/net interest margin

 

 

 

 

 

$

8,753

 

 

 

3.23

%

 

 

 

 

 

$

8,658

 

 

 

3.38

%

 

 

 

 

 

$

7,952

 

 

 

3.52

%


 

INVESTAR HOLDING CORPORATION

 

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

 

(Amounts in thousands)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended

 

 

 

September 30 2016

 

 

September 30, 2015

 

 

 

Average

Balance

 

 

Interest

Income/

Expense

 

 

Yield/ Rate

 

 

Average

Balance

 

 

Interest

Income/

Expense

 

 

Yield/ Rate

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

853,116

 

 

$

29,277

 

 

 

4.57

%

 

$

740,652

 

 

$

25,856

 

 

 

4.67

%

Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

 

125,982

 

 

 

2,172

 

 

 

2.30

 

 

 

76,069

 

 

 

1,214

 

 

 

2.13

 

Tax-exempt

 

 

25,920

 

 

 

495

 

 

 

2.54

 

 

 

18,381

 

 

 

344

 

 

 

2.50

 

Interest-bearing balances with banks

 

 

25,608

 

 

 

146

 

 

 

0.76

 

 

 

17,863

 

 

 

53

 

 

 

0.40

 

Total interest-earning assets

 

 

1,030,626

 

 

 

32,090

 

 

 

4.15

 

 

 

852,965

 

 

 

27,467

 

 

 

4.31

 

Cash and due from banks

 

 

7,335

 

 

 

 

 

 

 

 

 

 

 

5,597

 

 

 

 

 

 

 

 

 

Intangible assets

 

 

3,228

 

 

 

 

 

 

 

 

 

 

 

3,199

 

 

 

 

 

 

 

 

 

Other assets

 

 

54,478

 

 

 

 

 

 

 

 

 

 

 

45,619

 

 

 

 

 

 

 

 

 

Allowance for loan losses

 

 

(6,770

)

 

 

 

 

 

 

 

 

 

 

(5,497

)

 

 

 

 

 

 

 

 

Total assets

 

$

1,088,897

 

 

 

 

 

 

 

 

 

 

$

901,883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

 

$

249,960

 

 

$

1,205

 

 

 

0.64

%

 

$

219,018

 

 

$

1,034

 

 

 

0.63

%

Savings deposits

 

 

52,596

 

 

 

265

 

 

 

0.67

 

 

 

54,158

 

 

 

274

 

 

 

0.68

 

Time deposits

 

 

431,328

 

 

 

3,742

 

 

 

1.16

 

 

 

339,129

 

 

 

2,541

 

 

 

1.00

 

Total interest-bearing deposits

 

 

733,884

 

 

 

5,212

 

 

 

0.95

 

 

 

612,305

 

 

 

3,849

 

 

 

0.84

 

Short-term borrowings

 

 

111,418

 

 

 

710

 

 

 

0.85

 

 

 

53,030

 

 

 

72

 

 

 

0.18

 

Long-term debt

 

 

24,243

 

 

 

210

 

 

 

1.15

 

 

 

39,213

 

 

 

315

 

 

 

1.07

 

Total interest-bearing liabilities

 

 

869,545

 

 

 

6,132

 

 

 

0.94

 

 

 

704,548

 

 

 

4,236

 

 

 

0.80

 

Noninterest-bearing deposits

 

 

95,225

 

 

 

 

 

 

 

 

 

 

 

82,157

 

 

 

 

 

 

 

 

 

Other liabilities

 

 

12,135

 

 

 

 

 

 

 

 

 

 

 

8,736

 

 

 

 

 

 

 

 

 

Stockholders’ equity

 

 

111,992

 

 

 

 

 

 

 

 

 

 

 

106,442

 

 

 

 

 

 

 

 

 

Total liability and stockholders’ equity

 

$

1,088,897

 

 

 

 

 

 

 

 

 

 

$

901,883

 

 

 

 

 

 

 

 

 

Net interest income/net interest margin

 

 

 

 

 

$

25,958

 

 

 

3.36

%

 

 

 

 

 

$

23,231

 

 

 

3.64

%


 

INVESTAR HOLDING CORPORATION

 

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

 

(Amounts in thousands, except share data)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2016

 

 

June 30, 2016

 

 

September 30, 2015

 

Tangible common equity

 

 

 

 

 

 

 

 

 

 

 

 

Total stockholder's equity

 

$

113,576

 

 

$

112,763

 

 

$

108,128

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

2,684

 

 

 

2,684

 

 

 

2,684

 

Core deposit intangible

 

 

460

 

 

 

470

 

 

 

501

 

Trademark intangible

 

 

100

 

 

 

100

 

 

 

-

 

Tangible common equity

 

$

110,332

 

 

$

109,509

 

 

$

104,943

 

Tangible assets

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

1,154,205

 

 

$

1,126,930

 

 

$

937,747

 

Adjustments:

 

 

 

 

 

 

 

 

 

 

 

 

Goodwill

 

 

2,684

 

 

 

2,684

 

 

 

2,684

 

Core deposit intangible

 

 

460

 

 

 

470

 

 

 

501

 

Trademark intangible

 

 

100

 

 

 

100

 

 

 

-

 

Tangible assets

 

$

1,150,961

 

 

$

1,123,676

 

 

$

934,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common shares outstanding

 

 

7,131,186

 

 

 

7,214,734

 

 

 

7,264,261

 

Tangible equity to tangible assets

 

 

9.59

%

 

 

9.75

%

 

 

11.23

%

Book value per common share

 

$

15.93

 

 

$

15.63

 

 

$

14.88

 

Tangible book value per common share

 

 

15.47

 

 

 

15.18

 

 

 

14.45