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, 2014

 

 

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, including zip code)

Registrant’s telephone number, including area code: (225) 227-2222

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

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

 

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

 

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

 

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

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On October 27, 2014, Investar Holding Corporation issued a press release announcing its financial results for the quarter ended September 30, 2014. A copy of the press release is attached as exhibit 99.1 to this 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, 2014 announcing financial results for the quarter ended September 30, 2014.


SIGNATURES

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

 

      INVESTAR HOLDING CORPORATION
Date: October 27, 2014     By:  

/s/ John J. D’Angelo

      John. J. D’Angelo
      President and Chief Executive Officer

Exhibit 99.1

For Immediate Release

Investar Holding Corporation Announces 2014 Third Quarter Results

Investar Holding Corporation Achieves Record Growth in Net Income of 114%

BATON ROUGE, LA (October 27, 2014) – Investar Holding Corporation (NASDAQ: ISTR) (the “Company”), the holding company for Investar Bank, today announced financial results for the three and nine month periods ended September 30, 2014. For the quarter ended September 30, 2014, the Company reported net income of $1.4 million, or $0.20 per diluted share, compared to $0.7 million or $0.16 per diluted share for the quarter ended September 30, 2013. This represents an increase of $0.7 million in net income, or 114%. For the nine months ended September 30, 2014, the Company reported net income of $3.4 million, or $0.65 per diluted share, compared to $2.3 million, or $0.59 per diluted share after adjusting for the bargain purchase gain and other acquisition expenses for the nine months ended September 30, 2013. This represents an increase of $1.1 million in net income, or 47.4%.

Investar Holding Corporation President and Chief Executive Officer John D’Angelo said, “We were excited to increase net income by 114% compared to the prior year while realizing significant improvement in our return on assets and efficiency ratio in the third quarter of 2014. The Company continues to grow into the staffing and branch infrastructure put in place over the last few years. Our team remains laser focused on growth with quality loans as evidenced by our asset quality ratios.”

Performance Highlights

 

    Increase in net income of $0.7 million, or 114%, compared to the third quarter of 2013.

 

    Total assets have grown to $784.6 million at September 30, 2014, an increase of $149.7 million, or 23.6%, from December 31, 2013.

 

    Gross loans increased $125.6 million, or 24.7%, to $634.7 million at September 30, 2014 from $509.1 million at December 31, 2013. There was significant loan growth across all loan products with the exception of construction and land development.

 

    Commercial and industrial loans increased $11.6 million, or 35.6% from December 31, 2014.

 

    Nonperforming loans delinquency improved to 0.25% of total loans for the third quarter of 2014 compared to 0.46% for the third quarter of 2013.

 

    Return on average assets increased to 0.75% for the third quarter of 2014 compared to 0.49% for the third quarter of 2013.

 

    Efficiency ratio improved to 70.47% for the third quarter of 2014 compared to 82.54% for the third quarter of 2013.

 

    On August 1, 2014, the Company opened its eleventh branch on Highland Road in Baton Rouge, Louisiana.

 

    The Company completed an initial public offering of 3,285,300 shares of its common stock during the quarter, generating proceeds of $43.0 million before expenses to support future growth.

Loans

Total loans were $581.4 million at September 30, 2014, an increase of $77.3 million, or 15.3%, from December 31, 2013. Loan growth was experienced across all loan products with the exception of construction and land development.


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

 

            Percentage            Percentage     Increase/(Decrease)  
     September 30, 2014      of Portfolio     December 31, 2013      of Portfolio     Amount     Percent  

Mortgage loans on real estate

              

Construction and land development

   $ 62,342         10.7   $ 63,170         12.5   $ (828     (1.3 )% 

1-4 Family

     131,953         22.7        104,685         20.8        27,268        26.0   

Multifamily

     16,665         2.9        14,286         2.8        2,379        16.7   

Farmland

     2,249         0.4        830         0.2        1,419        171.0   

Nonfarm, nonresidential

     208,868         35.9        157,363         31.2        51,505        32.7   

Commercial and industrial

     44,299         7.6        32,665         6.5        11,634        35.6   

Consumer

     115,065         19.8        131,096         26.0        (16,031     (12.2
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total loans

     581,441         100     504,095         100     77,346        15.3

Loans held for sale

     53,306           5,029           48,277        960.0   
  

 

 

      

 

 

      

 

 

   

 

 

 

Total gross loans

   $ 634,747         $ 509,124         $ 125,623        24.7
  

 

 

      

 

 

      

 

 

   

 

 

 

Gross consumer loans totaled $165.1 million at September 30, 2014, an increase of 25.9% from $131.1 million at December 31, 2013. At December 31, 2013, there were no consumer loans held for sale, however, due to the increase in production and loan pool sales activity, the Company increased its consumer held for sale portfolio to $50.0 million at September 30, 2014.

The provision for loan loss expense was $0.5 million for the quarter, an increase of $0.4 million compared to the third quarter of 2013. The allowance for loan losses was $4.3 million, or 296.01% and 0.74% of nonperforming loans and total loans, respectively, at September 30, 2014, compared to $2.8 million, or 138.30% and 0.63% of nonperforming loans and total loans, respectively, at September 30, 2013.

Nonperforming assets totaled $4.4 million at September 30, 2014, a decrease of $0.6 million compared to December 31, 2013. The ratio of total nonperforming assets to total assets was 0.56% at September 30, 2014, compared to 0.79% at December 31, 2013.

Deposits

Total deposits at September 30, 2014 were $621.6 million, an increase of $89.0 million, or 16.7%, from December 31, 2013. Total noninterest bearing demand deposits at December 31, 2013 were slightly inflated by a $14 million short term deposit made by a commercial customer in late December 2013 that was fully withdrawn in January 2014. The increase in total deposits was driven primarily by an increase of $13.8 million, or 23.5%, in noninterest bearing demand deposits after adjusting for the $14 million short term deposit, an increase in NOW accounts of $31.5 million, or 40.8%, and an increase in time deposits of $45.6 million, or 17.3%, from December 31, 2013. We believe our deposit cross sell strategy continues to impact both noninterest bearing demand deposit and NOW account growth.

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

 

            Percentage            Percentage     Increase/(Decrease)  
     September 30, 2014      of Portfolio     December 31, 2013      of Portfolio     Amount     Percent  

Noninterest bearing demand deposits

   $ 72,619         11.7   $ 72,795         13.7   $ (176     (0.24 )% 

NOW accounts

     108,659         17.5        77,190         14.5        31,469        40.8   

Money market deposit accounts

     77,801         12.5        67,006         12.6        10,795        16.1   

Savings accounts

     53,477         8.6        52,177         9.8        1,300        2.5   

Time deposits

     309,056         49.7        263,438         49.4        45,618        17.3   
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Total deposits

   $ 621,612         100   $ 532,606         100   $ 89,006        16.7
  

 

 

    

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Net Interest Income

Net interest income for the third quarter of 2014 totaled $7.0 million, an increase of $1.7 million, or 32.1%, from the third quarter of 2013. Net interest income for the nine months ended September 30, 2014 totaled $19.1 million, an increase of $5.7 million, or 42.6%, from the nine months ended September 30, 2013. These increases were the result of continued growth of the Company’s loan portfolio.


The Company’s net interest margin was 3.86% for the quarter ended September 30, 2014 compared to 3.85% for the second quarter of 2014 and 4.15% for the third quarter of 2013. The decrease in the net interest margin since 2013 can be attributed to lower yields on the real estate and consumer loan portfolios. The yield on interest earning assets was 4.51% for the quarter ended September 30, 2014 compared to 4.56% for the second quarter of 2014 and 4.88% for the third quarter of 2013. The cost of deposits declined two basis points when comparing the third quarter of 2014 to the second quarter of 2014, and declined four basis points when comparing the third quarter of 2014 to the third quarter of 2013.

The Company’s net interest margin was 3.85% for the nine month period ended September 30, 2014 compared to 4.11% for the nine month period ended September 30, 2013. The decline in the interest margin can be attributed to lower yields primarily on the construction and the consumer loan portfolios.

Noninterest Income

Noninterest income, excluding securities gains, for the third quarter of 2014 totaled $1.9 million, an increase of $0.9 million, or 91.9% compared to the third quarter of 2013. The increase resulted primarily from an increase of $0.6 million in gain on sale of consumer loans and an increase of $0.2 million in gain on sale of real estate owned.

Noninterest income, excluding securities gains and the $0.9 million bargain purchase gain recorded in the second quarter of 2013, increased $1.2 million for the nine months ended September 30, 2014 compared to the nine months ended September 30, 2013 primarily as a result of an increase of approximately $1.3 million in gain on sale of consumer loans and increases in our servicing and other fee income offset by a decline in fee income on mortgage loans held for sale.

Noninterest Expense

Noninterest expense for the third quarter of 2014 totaled $6.3 million, an increase of $1.1 million, or 21%, compared to the third quarter of 2013. The increase in noninterest expense is primarily due to a $0.5 million increase in salaries and employee benefits, a $0.2 million increase in other operating expenses and a $0.1 million increase in both professional fees and data processing. These increases are attributable to the Company’s expansion into the Lafayette, Louisiana region, which included the opening of a branch in the fourth quarter of 2013, the opening of the Highland Road branch in Baton Rouge, Louisiana on August 1, 2014, the addition of 11 full time employees and the professional fees related to the Company’s implementation costs of Sarbanes-Oxley compliance.

Noninterest expense for the nine months ended September 30, 2014 totaled $17.4 million, an increase of $4.0 million, or 30%, compared to the nine months ended September 30, 2013, due to the full nine months of expenses associated with the two branches that the Company acquired as a result of the FCB acquisition in May 2013 and the Company’s expansion into the Lafayette region, which included the opening of a branch during the fourth quarter 2013, as well as the additional expenses related to the opening of the Highland Road branch during the third quarter of 2014.

Earnings Per Share and Diluted Earnings Per Share

The Company reported earnings per share and diluted earnings per share for the three months ended September 30, 2014 of $0.20, a decrease of $0.07 and $0.06, respectively, compared to the three months ended June 30, 2014 and an increase of $0.03 and $0.04, respectively when compared to the three months ended September 30, 2013. The Company issued 3,285,300 shares of its common stock as a result of the Company’s initial public offering completed in July 2014. The decreases in earnings per share and diluted earnings per share for the third quarter 2014 when compared to the second quarter 2014 are directly attributable to the increase in the weighted average number of shares outstanding used in the calculations.

Taxes

The company recorded income tax expense of $0.7 million and $1.6 million for the three and nine month periods ended September 30, 2014, respectively, which equates to an effective tax rate of 32.6%.

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 currently operates 11 full service banking offices located throughout its market and had 175 full-time employees at September 30, 2014.


Non-GAAP Financial Measures

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

Forward-Looking Statements

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

For further information contact:

Investar Holding Company

John D’Angelo

President and Chief Executive Officer

(225) 448-5461

John.Dangelo@investarbank.com

Investar Holding Company

Chris Hufft

Chief Accounting Officer

(225) 227-2215

Chris.Hufft@investarbank.com


INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 

     September 30, 2014     December 31, 2013  
     (Unaudited)        

ASSETS

    

Cash and due from banks

   $ 6,448      $ 5,964   

Interest bearing balances due from other banks

     12,279        21,739   

Federal funds sold

     500        500   
  

 

 

   

 

 

 

Cash and cash equivalents

     19,227        28,203   

Available for sale securities at fair value (amortized cost of $77,765 and $56,733, respectively)

     77,839        56,173   

Held to maturity securities at amortized cost (estimated fair value of $14,661 and $5,986, respectively)

     14,973        6,579   

Loans held for sale

     53,306        5,029   

Loans, net of allowance for loan losses of $4,328 and $3,380, respectively

     577,113        500,715   

Other equity securities

     3,184        2,020   

Bank premises and equipment, net of accumulated depreciation of $4,403 and $2,679, respectively

     27,850        24,680   

Real estate owned, net

     2,966        3,515   

Accrued interest receivable

     1,977        1,835   

Prepaid FDIC/OFI assessment

     134        —     

Deferred tax asset

     1,117        1,205   

Goodwill

     2,684        2,684   

Other assets

     2,227        2,308   
  

 

 

   

 

 

 

Total assets

   $ 784,597      $ 634,946   
  

 

 

   

 

 

 

LIABILITIES

    

Deposits:

    

Noninterest bearing

   $ 72,619      $ 72,795   

Interest bearing

     548,993        459,811   
  

 

 

   

 

 

 

Total deposits

     621,612        532,606   

Advances from Federal Home Loan Bank

     38,426        30,818   

Repurchase agreements

     12,051        10,203   

Note payable

     3,609        3,609   

Accrued interest payable

     282        285   

Accrued taxes and other liabilities

     6,452        1,942   
  

 

 

   

 

 

 

Total liabilities

     682,432        579,463   

STOCKHOLDERS’ EQUITY

    

Common stock, $1.00 par value per share; 40,000,000 shares authorized; 7,253,774 and 3,945,114 shares issued and outstanding, respectively

     7,255        3,943   

Treasury stock

     (22     —     

Surplus

     85,017        45,281   

Retained earnings

     9,852        6,609   

Accumulated other comprehensive income (loss)

     63        (350
  

 

 

   

 

 

 

Total stockholders’ equity

     102,165        55,483   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 784,597      $ 634,946   
  

 

 

   

 

 

 


INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share data)

(Unaudited)

 

     Three months ended      Nine months ended  
     September 30,      September 30,  
     2014      2013      2014      2013  

INTEREST INCOME

           

Interest and fees on loans

   $ 7,801       $ 6,014       $ 21,595       $ 15,331   

Interest on investment securities:

           

Taxable interest income

     244         106         623         247   

Exempt from federal income taxes

     123         100         294         267   

Other interest income

     14         11         34         22   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest income

     8,182         6,231         22,546         15,867   

INTEREST EXPENSE

           

Interest on deposits

     1,084         862         3,137         2,284   

Interest on borrowings

     98         70         292         174   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest expense

     1,182         932         3,429         2,458   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income

     7,000         5,299         19,117         13,409   

Provision for loan losses

     505         108         1,198         340   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income after provision for loan losses

     6,495         5,191         17,919         13,069   

NONINTEREST INCOME

           

Service charges on deposit accounts

     85         67         221         153   

Gain on sale of investment securities, net

     63         35         228         344   

Gain on sale of real estate owned, net

     245         6         238         97   

Gain on sale of loans, net

     713         86         1,433         138   

Gain on sale of fixed assets, net

     3         2         3         2   

Bargain purchase gain

     —           —           —           906   

Fee income on mortgage loans held for sale, net

     518         593         1,618         2,325   

Other operating income

     332         234         794         420   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest income

     1,959         1,023         4,535         4,385   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before noninterest expense

     8,454         6,214         22,454         17,454   

NONINTEREST EXPENSE

           

Salaries and employee benefits

     3,773         3,268         10,735         8,379   

Occupancy expense and equipment expense, net

     628         570         1,790         1,380   

Bank shares tax

     83         68         243         169   

FDIC and OFI assessments

     131         101         364         245   

Legal fees

     41         14         89         106   

Data processing

     354         239         940         641   

Advertising

     94         83         241         231   

Stationery and supplies

     39         59         131         160   

Software amortization and expense

     153         118         381         280   

Professional fees

     135         33         345         199   

Telephone expense

     43         43         135         102   

Business entertainment

     38         22         103         55   

Other operating expenses

     801         600         1,932         1,459   
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest expense

     6,313         5,218         17,429         13,406   
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income tax expense

     2,141         996         5,025         4,048   

Income tax expense

     699         322         1,637         1,058   
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

   $ 1,442       $ 674       $ 3,388       $ 2,990   
  

 

 

    

 

 

    

 

 

    

 

 

 

EARNINGS PER SHARE

           

Basic earnings per share

   $ 0.20       $ 0.17       $ 0.68       $ 0.84   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share

   $ 0.20       $ 0.16       $ 0.65       $ 0.78   
  

 

 

    

 

 

    

 

 

    

 

 

 

Cash dividends declared per common share

   $ 0.01       $ 0.01       $ 0.03       $ 0.04   
  

 

 

    

 

 

    

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

EARNINGS PER COMMON SHARE

(Amounts in thousands, except share data)

(Unaudited)

 

     Three months ended
September 30,
     Nine months ended
September 30,
 
     2014      2013      2014      2013  

Net income available to common shareholders

   $ 1,442       $ 674       $ 3,388       $ 2,990   

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

     7,064,806         3,887,942         4,967,393         3,567,294   

Effect of dilutive securities:

           

Restricted stock

     35,251         42,940         45,649         26,998   

Stock options

     22,811         30,310         22,811         30,310   

Stock warrants

     189,601         193,498         192,184         193,546   
  

 

 

    

 

 

    

 

 

    

 

 

 

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

     7,312,469         4,154,690         5,228,037         3,818,148   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share

   $ 0.20       $ 0.17       $ 0.68       $ 0.84   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share

   $ 0.20       $ 0.16       $ 0.65       $ 0.78   
  

 

 

    

 

 

    

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

                                   Nine months ended  
                                   September 30,  
      

 

 

 
     Q3 2014     Q2 2014     Q3 2013     Qtr/Qtr     Year/Year     2014     2013  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

EARNINGS DATA

              

Total interest income

   $ 8,182      $ 7,407      $ 6,231        10.46     31.31   $ 22,546      $ 15,867   

Total interest expense

     1,182        1,158        932        2.07     26.82     3,429        2,458   
  

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Net interest income

     7,000        6,249        5,299        12.02     32.10     19,117        13,409   

Provision for loan losses

     505        448        108        12.72     367.59     1,198        340   

Total noninterest income

     1,959        1,509        1,023        29.82     91.50     4,535        4,385   

Total noninterest expense

     6,313        5,729        5,218        10.19     20.99     17,429        13,406   
  

 

 

   

 

 

   

 

 

       

 

 

   

 

 

 

Income before income taxes

     2,141        1,581        996        35.42     114.96     5,025        4,048   

Income tax expense

     699        514        322        35.99     117.08     1,637        1,058   

Net income

   $ 1,442      $ 1,067      $ 674        35.15     113.95   $ 3,388      $ 2,990   

AVERAGE BALANCE SHEET DATA

              

Total assets

     762,330        697,708        543,951        9.26     40.15     704,178        466,693   

Total interest-earning assets

     719,985        650,811        506,559        10.63     42.13     663,164        435,770   

Total loans

     619,356        575,978        440,960        7.53     40.46     576,280        379,769   

Total interest-bearing deposits

     523,075        500,725        398,402        4.46     31.29     502,570        340,946   

Total interest-bearing liabilities

     585,015        572,084        432,541        2.26     35.25     563,459        369,266   

Total deposits

     594,519        565,219        451,676        5.18     31.63     567,650        385,428   

Total shareholders’ equity

     100,068        57,458        55,004        74.16     81.93     71,482        50,036   

PER SHARE DATA

              

Basic earnings per share

     0.20        0.27        0.17        -25.93     17.65     0.68        0.84   

Diluted earnings per share

     0.20        0.26        0.16        -23.08     25.00     0.65        0.78   

Book value per share

     14.08        14.68        14.07        -4.09     0.07     14.08        14.07   

Tangible book value per share (1)

     13.64        13.86        13.25        -1.59     2.94     13.64        13.25   

Common shares outstanding

     7,253,774        3,945,753        3,943,458        83.84     83.94     7,253,774        3,943,458   

PERFORMANCE RATIOS

              

Return on average assets

     0.75     0.61     0.49     22.95     53.06     0.64     0.86

Adjusted return on average assets (1)

     0.75     0.61     0.49     23.03     51.77     0.64     0.66

Return on average equity

     5.72     7.45     4.86     -23.22     17.70     6.34     7.99

Adjusted return on average equity  (1)

     5.72     7.45     4.89     -23.26     16.91     6.34     6.14

Net interest margin

     3.86     3.85     4.15     0.26     -6.99     3.85     4.11

Net interest income to average assets

     3.64     4.26     3.86     -14.55     -5.70     3.63     3.84

Noninterest expense to average assets

     3.29     3.29     3.81     0.00     -13.65     3.31     3.84

Efficiency ratio (1)

     70.47     73.86     82.54     -4.60     -14.63     73.69     75.34

Adjusted efficiency ratio (1)

     70.47     73.86     82.44     -4.60     -14.53     73.69     77.88

Dividend payout ratio

     3.40     4.56     7.06     -25.44     -51.84     4.60     4.25
            
     September 30, 2014     September 30, 2013     Year/Year                          
  

 

 

   

 

 

   

 

 

         

ASSET QUALITY RATIOS

              

Nonperforming assets to total assets

     0.56     0.90     -37.78        

Nonperforming loans to loans

     0.25     0.46     -45.65        

Allowance for loan losses to total loans

     0.74     0.63     17.46        

Allowance for loan losses to nonperforming loans

     296.01     138.30     114.03        

Net chargeoffs to average loans

     0.04     0.06     -33.33        

CAPITAL RATIOS

              

Investar Holding Corporation:

              

Total equity to total assets

     13.03     9.84     32.40        

Tangible equity to tangible assets

     12.66     9.32     35.84        

Tier 1 capital to average assets

     13.52     9.56     41.42        

Tier 1 capital to risk-weighted assets

     15.76     11.12     41.73        

Total capital to risk-weighted assets

     16.42     11.73     39.98        

Investar Bank:

              

Tier 1 capital to average assets

     9.04     9.56     -5.44        

Tier 1 capital to risk-weighted assets

     10.53     11.12     -5.31        

Total capital to risk-weighted assets

     11.20     11.73     -4.52        

 

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


INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

     Three months ended September 30,  
     2014     2013  
     Average
Balance
    Interest
Income/
Expense
     Yield/ Rate     Average
Balance
    Interest
Income/
Expense
     Yield/ Rate  

Assets

              

Interest-earning assets:

              

Loans

   $ 619,356      $ 7,801         5.00   $ 440,960      $ 6,014         5.41

Securities:

              

Taxable

     66,713        244         1.45        43,538        106         0.97   

Tax-exempt

     19,353        123         2.52        16,182        100         2.45   

Interest-bearing balances with banks

     14,563        14         0.38        5,879        11         0.74   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-earning assets

     719,985        8,182         4.51        506,559        6,231         4.88   

Cash and due from banks

     6,093             5,875        

Intangible assets

     3,230             3,271        

Other assets

     37,057             31,009        

Allowance for loan losses

     (4,035          (2,763     
  

 

 

        

 

 

      

Total assets

   $ 762,330           $ 543,951        
  

 

 

        

 

 

      

Liabilities and shareholders’ equity

              

Interest-bearing liabilities:

              

Deposits:

              

Interest-bearing demand

   $ 179,226      $ 279         0.62   $ 120,969      $ 192         0.63

Savings deposits

     52,973        91         0.68        48,074        85         0.70   

Time deposits

     290,876        714         0.97        229,359        585         1.01   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing deposits

     523,075        1,084         0.82        398,402        862         0.86   

Short-term borrowings

     23,137        12         0.21        9,666        4         0.16   

Long-term debt

     38,803        86         0.88        24,473        66         1.07   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

     585,015        1,182         0.80        432,541        932         0.85   

Noninterest-bearing deposits

     71,444             53,274        

Other liabilities

     5,803             3,132        

Stockholders’ equity

     100,068             55,004        
  

 

 

        

 

 

      

Total liability and stockholders’ equity

   $ 762,330           $ 543,951        
  

 

 

   

 

 

      

 

 

   

 

 

    

Net interest income/net interest margin

     $ 7,000         3.86     $ 5,299         4.15
    

 

 

    

 

 

     

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

     Nine months ended September 30,  
     2014     2013  
     Average
Balance
    Interest
Income/
Expense
     Yield/ Rate     Average
Balance
    Interest
Income/
Expense
     Yield/ Rate  

Assets

              

Interest-earning assets:

              

Loans

   $ 576,280      $ 21,595         5.01   $ 379,769      $ 15,331         5.40

Securities:

              

Taxable

     58,779        623         1.42        37,354        247         0.88   

Tax-exempt

     16,272        294         2.42        14,636        267         2.44   

Interest-bearing balances with banks

     11,833        34         0.38        4,011        22         0.73   
  

 

 

   

 

 

      

 

 

   

 

 

    

 

 

 

Total interest-earning assets

     663,164        22,546         4.55        435,770        15,867         4.87   

Cash and due from banks

     5,790             4,698        

Intangible assets

     3,240             3,078        

Other assets

     35,667             25,865        

Allowance for loan losses

     (3,683          (2,718     
  

 

 

        

 

 

      

Total assets

   $ 704,178           $ 466,693        
  

 

 

        

 

 

      

Liabilities and shareholders’ equity

              

Interest-bearing liabilities:

              

Deposits:

              

Interest-bearing demand

   $ 168,309      $ 783         0.62   $ 105,214      $ 510         0.65

Savings deposits

     52,439        269         0.69        39,966        208         0.70   

Time deposits

     281,822        2,085         0.99        195,766        1,566         1.07   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing deposits

     502,570        3,137         0.83        340,946        2,284         0.90   

Short-term borrowings

     23,810        36         0.20        6,790        9         0.18   

Long-term debt

     37,079        256         0.92        21,530        165         1.02   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

     563,459        3,429         0.81        369,266        2,458         0.89   

Noninterest-bearing deposits

     65,080             44,482        

Other liabilities

     4,157             2,909        

Stockholders’ equity

     71,482             50,036        
  

 

 

        

 

 

      

Total liability and stockholders’ equity

   $ 704,178           $ 466,693        
  

 

 

   

 

 

      

 

 

   

 

 

    

Net interest income/net interest margin

     $ 19,117         3.85     $ 13,409         4.11
    

 

 

    

 

 

     

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

(Unaudited)

 

           Three months ended     Nine months ended  
           September 30,     September 30,  
(Amounts in thousands, except share data)          2014     2013     2014     2013  

Net interest income

     (a   $ 7,000      $ 5,299      $ 19,117      $ 13,409   

Provision for loan losses

     (b     505        108        1,198        340   
    

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

       6,495        5,191        17,919        13,069   

Noninterest income

     (c     1,959        1,023        4,535        4,385   

Bargain purchase gain

       —          —          —          (906
    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted noninterest income

       1,959        1,023        4,535        3,479   

Adjusted income before noninterest expense

     (d     8,454        6,214        22,454        16,548   

Total noninterest expense

     (e     6,313        5,218        17,429        13,406   

Acquisition related expense

       —          (6     —          (254
    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted noninterest expense

     (f     6,313        5,212        17,429        13,152   

Adjusted income before income tax expense

       2,141        1,002        5,025        3,396   

Adjusted income tax expense (1)

       699        324        1,637        1,098   
    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

       1,442        678        3,388        2,298   
    

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share (GAAP)

     $ 0.20      $ 0.16      $ 0.65      $ 0.78   

Bargain purchase gain

       —          —          —          (0.24

Acquisition related expense

       —          —          —          0.05   
    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted earnings per share

     $ 0.20      $ 0.16      $ 0.65      $ 0.59   
    

 

 

   

 

 

   

 

 

   

 

 

 

Efficiency ratio

     (e ) / (a+c)      70.47     82.54     73.69     75.34

Adjusted efficiency ratio (2)

     (f ) / (b+d)      70.47     82.44     73.69     77.88

Adjusted return on assets (2)

       0.75     0.49     0.64     0.66

Adjusted return on equity (2)

       5.72     4.89     6.34     6.14

Total average assets

     $ 762,330      $ 543,951      $ 704,178      $ 466,693   

Total average stockholders’ equity

     $ 100,068      $ 55,004      $ 71,482      $ 50,036   

 

(1) Income tax expense is calculated on the adjusted non-GAAP effective tax rate of 32.34% for the three and nine month periods ended September 30, 2013.
(2) Adjusted for the impact of the bargain purchase gain and acquisition expenses incurred during the three and nine month periods ended September 30, 2013.


INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

(Unaudited)

 

     September 30,     December 31,  
     2014     2013     2013  

Tangible common equity

      

Total stockholder’s equity

   $ 102,165      $ 55,504      $ 55,483   

Adjustments:

      

Goodwill

     2,684        2,684        2,684   

Core deposit intangible

     542        583        573   
  

 

 

   

 

 

   

 

 

 

Tangible common equity

   $ 98,939      $ 52,237      $ 52,226   
  

 

 

   

 

 

   

 

 

 

Tangible assets

      

Total assets

   $ 784,597      $ 563,818      $ 634,946   

Adjustments:

      

Goodwill

     2,684        2,684        2,684   

Core deposit intangible

     542        583        573   
  

 

 

   

 

 

   

 

 

 

Tangible assets

   $ 781,371      $ 560,551      $ 631,689   
  

 

 

   

 

 

   

 

 

 

Common shares outstanding

     7,253,774        3,943,458        3,945,114   

Tangible equity to tangible assets

     12.66     9.32     8.27

Book value per common share

   $ 14.08      $ 14.07      $ 14.06   

Tangible book value per common share

   $ 13.64      $ 13.25      $ 13.24