0001193125-14-279200 8-K 2 20140725 2.02 9.01 20140725 20140724 Investar Holding Corp 0001602658 6022 271560715 LA 1231 8-K 34 001-36522 14992359 7244 PERKINS ROAD BATON ROUGE LA 70808 225-227-2222 7244 PERKINS ROAD BATON ROUGE LA 70808 8-K 1 d763088d8k.htm 8-K 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 25, 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 July 25, 2014, Investar Holding Corporation issued a press release announcing its financial results for the quarter ended June 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 July 25, 2014 announcing financial results for the quarter ended June 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: July 25, 2014     By:   /s/ John J. D’Angelo
      John J. D’Angelo
      President and Chief Executive Officer
EX-99.1 2 d763088dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

For Immediate Release

Investar Holding Corporation Announces 2014 Second Quarter Results

BATON ROUGE, LA (July 25, 2014) – Investar Holding Corporation (NASDAQ: ISTR) (the “Company”), the holding company for Investar Bank, today announced financial results for the three and six month periods ended June 30, 2014. For the quarter ended June 30, 2014, the Company reported net income of $1.1 million, or $0.26 per diluted share, as compared to $0.9 million, or $0.21 per diluted share, for the first quarter of 2014 and $1 million, or $0.25 per diluted share, for the second quarter of 2013 after adjusting for the bargain purchase gain and other acquisition expenses. This represents an increase of $0.05 per diluted share, or 23.8%, over the first quarter of 2014 and an increase of $0.01 per diluted share, or 4%, over the second quarter of 2013. For the six months ended June 30, 2014, the Company reported net income of $1.9 million, or $0.47 per diluted share, as compared to $1.6 million, or $0.44 per diluted share, after adjusting for the bargain purchase gain and other acquisition expenses for the six months ended June 30, 2013. This represents an increase of $0.03 per diluted share, or 6.8%, over the six months ended June 30, 2013.

Investar Holding Corporation President and Chief Executive Officer John D’Angelo said, “We are very pleased with our results for the second quarter. We are continuing to grow our balance sheet, with solid growth in both loans and deposits. Our earnings growth remains strong with a 23.8% increase in earnings per share over the first quarter of 2014. We remain very excited about the recent completion of our IPO, which we believe positions us for continued growth.”

Performance Highlights

 

    Increase in net interest income of $0.4 million, or 6.5%, compared to the first quarter of 2014, and $1.6 million, or 32.5%, compared to the second quarter of 2013.

 

    Tangible book value per share of $13.86 as of June 30, 2014.

 

    Total assets have grown to $729.1 million at June 30, 2014, an increase of $94.1 million, or 14.8%, from December 31, 2013.

 

    Total loans increased $59.9 million, or 11.9%, to $564.0 million at June 30, 2014 from $504.1 million at December 31, 2013.

 

    Deposits increased $46.1 million, or 8.7%, to $578.7 million at June 30, 2014 from $532.6 million at December 31, 2013.

 

    The Company’s cost of deposits for the three and six month periods ending June 30, 2014 was 0.84%, a decrease of six and eight basis points compared to the same periods in the prior year.

 

    On July 3, 2014 the Company completed an initial public offering of 2,875,000 shares of its common stock generating gross proceeds of $37.6 million to support future growth.

Loans

Total loans were $564.0 million at June 30, 2014, an increase of $59.9 million, or 11.9%, from December 31, 2013. Loan growth was primarily driven by increases in 1-4 family and nonfarm, non-residential real estate loans.


The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated.

 

                   Increase/(Decrease)  
(dollars in thousands)    June 30, 2014      December 31, 2013      Amount     Percent  

Mortgage Loans on Real Estate

          

Construction & Land Development

   $ 60,333       $ 63,170       $ (2,837     (4.5 )% 

1-4 Family

     125,246         104,685         20,561        19.6   

Multifamily

     17,706         14,286         3,420        23.9   

Farmland

     2,282         830         1,452        174.9   

Nonfarm, Non Residential

     191,820         157,363         34,457        21.9   

Commercial & Industrial

     34,778         32,665         2,113        6.5   

Consumer

     131,810         131,096         714        0.5   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Loans

   $ 563,975       $ 504,095       $ 59,880        11.9
  

 

 

    

 

 

    

 

 

   

 

 

 

The provision for loan loss expense was $0.4 million for the quarter, an increase of $0.2 million from the first quarter of 2014 and an increase of $0.3 million compared to the second quarter of 2013. The allowance for loan losses was $3.9 million, or 296.24% and 0.69% of nonperforming loans and total loans, respectively, at June 30, 2014, compared to $3.5 million, or 206.1% and 0.67% of nonperforming loans and total loans, respectively, at March 31, 2014, and $2.8 million, or 141.01% and 0.66% of nonperforming loans and total loans, respectively, at June 30, 2013.

Nonperforming assets totaled $4.7 million at June 30, 2014, a decrease of $0.6 million compared to March 31, 2014 and a decrease of $0.3 million compared to December 31, 2013. The ratio of total nonperforming assets to total assets was 0.65% at June 30, 2014, compared to 0.79% at March 31, 2014 and December 31, 2013.

Deposits

Total deposits at June 30, 2014 were $578.7 million, an increase of $46.1 million, or 8.7%, 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 in NOW accounts of $21.7 million, or 28.1%, an increase of $11 million, or 18.7%, in noninterest bearing demand deposits after adjusting for the $14 million short term deposit, and an increase in time deposits of $23.9 million, or 9.1%, from December 31, 2013. We believe our deposit cross sell strategy has resulted in 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.

 

                   Increase/(Decrease)  
(dollars in thousands)    June 30, 2014      December 31, 2013      Amount     Percent  

Noninterest Bearing Demand Deposits

   $ 69,804       $ 72,795       $ (2,991     (4.1 )% 

NOW Accounts

     98,889         77,190         21,699        28.1   

Money Market Deposit Accounts

     70,164         67,006         3,158        4.7   

Savings Accounts

     52,431         52,177         254        0.5   

Time Deposits

     287,379         263,438         23,941        9.1   
  

 

 

    

 

 

    

 

 

   

 

 

 

Total Deposits

   $ 578,667       $ 532,606       $ 46,061        8.6
  

 

 

    

 

 

    

 

 

   

 

 

 

Net Interest Income

Net interest income for the second quarter of 2014 totaled $6.3 million, an increase of $0.4 million, or 6.5%, from the first quarter of 2014 and an increase of $1.6 million, or 32.5%, from the second quarter of 2013. Net interest income for the six months ended June 30, 2014 totaled $12.1 million, an increase of $4 million, or 49.4%, from the six months ended June 30, 2013. These increases were the result of continued growth of the Company’s loan portfolio.

The Company’s net interest margin was 3.85% for the quarter ended June 30, 2014 compared to 3.93% for the first quarter of 2014 and 4.28% for the second quarter of 2013. The decline in the interest margin can be attributed to lower yields on the consumer and real estate loan portfolios. The yield on interest earning assets was 4.56% for the quarter ended June 30, 2014 compared to 4.65% for the first quarter of 2014 and 5.04% for the second quarter of 2013. The cost of deposits remained flat when comparing the second quarter of 2014 to the first quarter of 2014, and declined six basis points when comparing the second quarter of 2014 to the second quarter of 2013.

The Company’s net interest margin was 3.89% for the six month period ended June 30, 2014 compared to 4.10% for the six month period ended June 30, 2013. The decline in the interest margin for both the three and six month comparison periods can be attributed to lower yields on the consumer and real estate loan portfolios.

Noninterest Income

Noninterest income, excluding securities gains, for the second quarter of 2014 totaled $1.5 million, an increase of $0.5 million, or 53.8%, compared to the first quarter of 2014, and a decrease of $0.6 million, or 31.9% compared to the second quarter of 2013. The increase in noninterest income for the second quarter of 2014 compared to the first quarter of 2014 resulted primarily from an increase of $0.4 million in gain on sale of consumer loans and increased consumer loan servicing fee income. Noninterest income for the second quarter of 2013 included the $0.9 million bargain purchase gain recorded in connection with the Company’s acquisition of First Community Bank (“FCB”) in May 2013. Excluding the bargain purchase gain, the $0.2 million increase in noninterest income for the second quarter of 2014 compared to the second quarter of 2013 resulted primarily from an increase of $0.5 million in gain on sale of consumer loans offset by a decrease of approximately $0.3 million in fee income on mortgage loans held for sale.

Noninterest income, excluding securities gains, for the six months ended June 30, 2014 totaled $2.4 million, a decrease of $0.6 million, or 21%, compared to the six months ended June 30, 2013. Excluding the bargain purchase gain recorded in the second quarter of 2013, noninterest income increased $0.3 million for the six months ended June 30, 2014 compared to the six months ended June 30, 2013 primarily as a result of an increase of approximately $0.1 million in consumer loan servicing fee income and $0.1 million in interchange and ATM fee income.

Noninterest Expense

Noninterest expense for the second quarter of 2014 totaled $5.7 million, an increase of $0.3 million, or 6.4%, compared to the first quarter of 2014 and an increase of $1.3 million, or 28.9%, compared to the second quarter of 2013, excluding acquisition related expenses of $0.2 million. The increase in noninterest expense over the first quarter of 2014 was primarily due to a $0.1 million


increase in credit investigation costs related to the increase in our consumer loan production and a $0.1 million increase in professional fees related to the company’s implementation costs of Sarbanes-Oxley compliance. The increase in noninterest expense over the prior year quarter is primarily attributed to expenses associated with the two branches that the Company acquired as a result of the FCB acquisition in May 2013, as well as with the opening of a branch in Lafayette, Louisiana during the fourth quarter of 2013.

Noninterest expense for the six months ended June 30, 2014 totaled $11.1 million, an increase of $3.2 million, or 40%, compared to the six months ended June 30, 2013, excluding acquisition costs of $0.3 million, due to the full six months of expenses associated with three branches added in 2013.

Taxes

The company recorded income tax expense of $0.5 million and $0.9 million for the three and six month periods ended June 30, 2014, respectively, which equates to an effective tax rate of 32.5%.

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 10 full service banking offices located throughout its market and had 165 employees at June 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

CONDENSED CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 

                                                             
     June 30, 2014     December 31, 2013  
     (Unaudited)        

ASSETS

    

Cash and due from banks

   $ 12,872      $ 10,549   

Interest bearing balances due from other banks

     1,777        17,154   

Federal funds sold

     500        500   
  

 

 

   

 

 

 

Cash and cash equivalents

     15,149        28,203   

Investment securities:

    

Available-for-sale at fair value (amortized cost of $65,286 and $56,733, respectively)

     65,528        56,173   

Held-to-maturity, at amortized cost (estimated fair value of $13,707 and $5,986, respectively)

     14,015        6,579   

Loans held for sale

     32,131        5,029   

Loans—less allowance for loan losses of $3,882 and $3,380, respectively

     560,093        500,715   

Other equity securities

     3,409        2,020   

Bank premises and equipment, net

     27,679        24,680   

Real estate owned, net

     3,423        3,515   

Accrued interest receivable

     1,921        1,835   

Prepaid FDIC/OFI assessment

     99        —     

Deferred tax asset

     709        1,205   

Goodwill

     2,684        2,684   

Other assets

     2,230        2,308   
  

 

 

   

 

 

 

Total assets

   $ 729,070      $ 634,946   
  

 

 

   

 

 

 

LIABILITIES

    

Deposits:

    

Noninterest bearing

   $ 69,804      $ 72,795   

Interest bearing

     508,863        459,811   
  

 

 

   

 

 

 

Total deposits

     578,667        532,606   

Advances from Federal Home Loan Bank

     68,409        30,818   

Repurchase agreements

     11,425        10,203   

Note payable

     8,609        3,609   

Accrued interest payable

     289        285   

Accrued taxes and other liabilities

     3,731        1,942   
  

 

 

   

 

 

 

Total liabilities

     671,130        579,463   

STOCKHOLDERS’ EQUITY

    

Common stock, $1.00 par value per share; 40,000,000 shares authorized; 3,945,753 and 3,945,114 shares issued and outstanding, respectively

     3,945        3,943   

Treasury Stock

     (4     —     

Surplus

     45,363        45,281   

Retained earnings

     8,458        6,609   

Accumulated other comprehensive income (loss)

     178        (350
  

 

 

   

 

 

 

Total stockholders’ equity

     57,940        55,483   
  

 

 

   

 

 

 

Total liabilities and stockholders’ equity

   $ 729,070      $ 634,946   
  

 

 

   

 

 

 


INVESTAR HOLDING CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share data)

(Unaudited)

 

     Three months ended      Six months ended  
     June 30,      June 30,  
     2014     2013      2014     2013  

INTEREST INCOME

         

Interest and fees on loans

   $ 7,119      $ 5,391       $ 13,794      $ 9,317   

Interest on investment securities:

         

Taxable interest income

     188        66         379        141   

Exempt from federal income taxes

     90        90         171        167   

Other interest income

     10        6         20        11   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total interest income

     7,407        5,553         14,364        9,636   

INTEREST EXPENSE

         

Interest on deposits

     1,050        780         2,053        1,422   

Interest on borrowings

     108        56         194        104   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total interest expense

     1,158        836         2,247        1,526   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net interest income

     6,249        4,717         12,117        8,110   

Provision for loan losses

     448        143         693        232   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net interest income after provision for loan losses

     5,801        4,574         11,424        7,878   

NONINTEREST INCOME

         

Service charges on deposit accounts

     73        58         136        86   

Gain on sale of investment securities, net

     48        47         165        309   

Net (loss) gain on sales of ORE

     (5     91         (7     91   

Gain on sale of loans

     546        52         720        52   

Bargain purchase gain

     —          906         —          906   

Fee income on mortgage loans held for sale, net

     574        921         1,100        1,732   

Other operating income

     273        118         462        186   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total noninterest income

     1,509        2,193         2,576        3,362   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income before noninterest expense

     7,310        6,767         14,000        11,240   

NONINTEREST EXPENSE

         

Salaries and employee benefits

     3,491        2,860         6,962        5,111   

Net occupancy expense and equipment expense

     577        450         1,162        810   

Bank shares tax

     82        55         160        101   

FDIC and OFI assessments

     119        79         233        144   

Legal fees

     40        77         48        92   

Data processing

     308        215         586        402   

Advertising

     71        71         147        148   

Stationery and supplies

     44        62         92        101   

Software amortization and expense

     122        95         228        162   

Professional fees

     159        100         210        166   

Telephone expense

     46        34         92        59   

Business entertainment

     39        16         65        33   

Other operating expenses

     631        501         1,131        859   
  

 

 

   

 

 

    

 

 

   

 

 

 

Total noninterest expense

     5,729        4,615         11,116        8,188   
  

 

 

   

 

 

    

 

 

   

 

 

 

Income before income tax expense

     1,581        2,152         2,884        3,052   

Income tax expense

     514        455         938        736   
  

 

 

   

 

 

    

 

 

   

 

 

 

Net income

     1,067        1,697       $ 1,946      $ 2,316   
  

 

 

   

 

 

    

 

 

   

 

 

 

EARNINGS PER SHARE

         

Basic earnings per share

   $ 0.27      $ 0.47       $ 0.50      $ 0.68   
  

 

 

   

 

 

    

 

 

   

 

 

 

Diluted earnings per share

   $ 0.26      $ 0.44       $ 0.47      $ 0.64   
  

 

 

   

 

 

    

 

 

   

 

 

 

Cash dividends declared per common share

   $ 0.01      $ 0.02       $ 0.01      $ 0.02   
  

 

 

   

 

 

    

 

 

   

 

 

 


INVESTAR HOLDING CORPORATION

EARNINGS PER COMMON SHARE

(Amounts in thousands, except share data)

(Unaudited)

 

     Three months ended
June 30,
     Six months ended
June 30,
 
     2014      2013      2014      2013  

Net income available to common shareholders

   $ 1,067       $ 1,697       $ 1,946       $ 2,316   

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

     3,901,542         3,598,703         3,901,304         3,404,313   

Effect of dilutive securities:

           

Restricted stock

     44,493         19,223         44,272         18,894   

Stock options

     22,810         30,310         22,810         30,310   

Stock warrants

     193,498         193,498         193,498         193,571   
  

 

 

    

 

 

    

 

 

    

 

 

 

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

     4,162,343         3,841,734         4,161,884         3,647,088   
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share

   $ 0.27       $ 0.47       $ 0.50       $ 0.68   
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share

   $ 0.26       $ 0.44       $ 0.47       $ 0.64   
  

 

 

    

 

 

    

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

     Three months ended     Six months ended  
     June 30,     June 30,  
     2014     2013     2014     2013  

EARNINGS DATA

        

Total interest income

   $ 7,407      $ 5,553      $ 14,364      $ 9,636   

Total interest expense

     1,158        836        2,247        1,526   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income

     6,249        4,717        12,117        8,110   

Provision for loan losses

     448        143        693        232   

Total noninterest income

     1,509        2,193        2,576        3,362   

Total noninterest expense

     5,729        4,615        11,116        8,188   
  

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

     1,581        2,152        2,884        3,052   

Income tax expense

     514        455        938        736   

Net income

     1,067        1,697        1,946        2,316   

AVERAGE BALANCE SHEET DATA

        

Total assets

     697,708        474,562        674,624        427,424   

Total interest-earning assets

     650,811        442,240        628,610        398,849   

Total loans

     575,978        387,738        554,384        348,683   

Total interest-bearing deposits

     500,725        348,143        492,147        311,740   

Total interest-bearing liabilities

     572,084        374,628        552,503        337,102   

Total deposits

     565,219        394,377        553,992        351,753   

Total shareholders’ equity

     57,458        50,775        56,952        47,510   

PER SHARE DATA

        

Basic earnings per share

     0.27        0.47        0.50        0.68   

Diluted earnings per share

     0.26        0.44        0.47        0.64   

Book value per share

     14.68        13.99        14.68        13.99   

Tangible book value per share (1)

     13.86        13.15        13.86        13.15   

Common shares outstanding

     3,945,753        3,890,389        3,945,753        3,890,389   

PERFORMANCE RATIOS

        

Return on average assets

     0.61     1.43     0.58     1.09

Adjusted return on average assets (1)

     0.61     0.81     0.58     0.76

Return on average equity

     7.45     13.41     6.89     9.83

Adjusted return on average equity (1)

     7.45     7.57     6.89     6.88

Net interest margin

     3.85     4.28     3.89     4.10

Net interest income to average assets

     4.26     4.69     4.29     4.55

Noninterest expense to average assets

     3.29     3.90     3.32     3.86

Efficiency ratio (1)

     73.85     66.79     75.66     71.37

Adjusted efficiency ratio (1)

     73.85     74.03     75.66     75.15

Dividend payout ratio

     4.56     2.52     4.90     3.18
     June 30, 2014     June 30, 2013              

ASSET QUALITY RATIOS

        

Nonperforming assets to total assets

     0.65     0.98    

Nonperforming loans to loans, net of unearned income

     0.23     0.47    

Allowance for loan losses to total loans

     0.69     0.66    

Allowance for loan losses to nonperforming loans

     296.24     141.01    

Net Chargeoffs to average loans, net of unearned income

     0.03     0.05    

CAPITAL RATIOS

        

Total equity to total assets

     7.95     10.26    

Tangible equity to tangible assets

     7.54     9.70    

Tier 1 capital to average assets

     8.99     10.20    

Tier 1 capital to risk-weighted assets

     10.54     11.63    

Total capital to risk-weighted assets

     11.20     12.25    

 

(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 June 30,  
     2014     2013  
     Average
Balance
    Interest
Income/
Expense
     Yield/Rate     Average
Balance
    Interest
Income/
Expense
     Yield/Rate  

Assets

              

Interest-earning assets:

              

Loans

   $ 575,978      $ 7,119         4.96   $ 387,738      $ 5,391         5.58

Securities:

              

Taxable

     58,088        188         1.30        37,002        66         0.72   

Tax-exempt

     12,995        90         2.78        15,038        90         2.40   

Interest-bearing balances with banks

     3,750        10         1.07        2,462        6         0.98   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-earning assets

     650,811        7,407         4.56        442,240        5,553         5.04   

Cash and due from banks

     11,734             6,034        

Intangible assets

     3,240             3,131        

Other assets

     35,534             25,878        

Allowance for loan losses

     (3,611          (2,721     
  

 

 

        

 

 

      

Total assets

   $ 697,708           $ 474,562        
  

 

 

        

 

 

      

Liabilities and shareholders’ equity

              

Interest-bearing liabilities:

              

Deposits:

              

Interest-bearing demand

   $ 166,763        262         0.63      $ 104,942        167         0.64   

Savings deposits

     52,407        89         0.68        41,158        68         0.66   

Time deposits

     281,555        699         1.00        202,043        545         1.08   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing deposits

     500,725        1,050         0.84        348,143        780         0.90   

Short-term borrowings

     33,108        20         0.24        5,576        4         0.29   

Long-term debt

     38,251        88         0.92        20,909        52         1.00   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

     572,084        1,158         0.81        374,628        836         0.90   

Noninterest-bearing deposits

     64,494             46,234        

Other liabilities

     3,672             2,925        

Stockholders’ equity

     57,458             50,775        
  

 

 

        

 

 

      

Total liability and stockholders’ equity

   $ 697,708           $ 474,562        
  

 

 

   

 

 

      

 

 

   

 

 

    

Net interest income/net interest margin

     $ 6,249         3.85     $ 4,717         4.28
    

 

 

    

 

 

     

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

     Six months ended June 30,  
     2014     2013  
     Average
Balance
    Interest
Income/
Expense
     Yield/Rate     Average
Balance
    Interest
Income/
Expense
     Yield/Rate  

Assets

              

Interest-earning assets:

              

Loans

   $ 554,384      $ 13,794         5.02   $ 348,683      $ 9,317         5.39

Securities:

              

Taxable

     55,859        379         1.37        34,211        141         0.83   

Tax-exempt

     13,591        171         2.54        13,850        167         2.43   

Interest-bearing balances with banks

     4,776        20         0.84        2,105        11         1.05   
  

 

 

   

 

 

      

 

 

   

 

 

    

 

 

 

Total interest-earning assets

     628,610        14,364         4.61        398,849        9,636         4.87   

Cash and due from banks

     11,306             5,056        

Intangible assets

     3,245             2,980        

Other assets

     34,967             23,250        

Allowance for loan losses

     (3,504          (2,711     
  

 

 

        

 

 

      

Total assets

   $ 674,624           $ 427,424        
  

 

 

        

 

 

      

Liabilities and shareholders’ equity

              

Interest-bearing liabilities:

              

Deposits:

              

Interest-bearing demand

   $ 162,760        505         0.63      $ 97,205        317         0.66   

Savings deposits

     52,168        178         0.69        35,845        124         0.70   

Time deposits

     277,219        1,370         1.00        178,690        981         1.11   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing deposits

     492,147        2,053         0.84        311,740        1,422         0.92   

Short-term borrowings

     24,153        25         0.21        5,328        6         0.23   

Long-term debt

     36,203        170         0.95        20,034        98         0.99   
  

 

 

   

 

 

      

 

 

   

 

 

    

Total interest-bearing liabilities

     552,503        2,248         0.82        337,102        1,526         0.91   

Noninterest-bearing deposits

     61,845             40,013        

Other liabilities

     3,324             2,799        

Stockholders’ equity

     56,952             47,510        
  

 

 

        

 

 

      

Total liability and stockholders’ equity

   $ 674,624           $ 427,424        
  

 

 

   

 

 

      

 

 

   

 

 

    

Net interest income/net interest margin

     $ 12,116         3.89     $ 8,110         4.10
    

 

 

    

 

 

     

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

 

         Three months ended     Six months ended  
         June 30,     June 30,  
(Amounts in thousands, except share data)        2014     2013     2014     2013  

Net interest income

   (a)   $ 6,249      $ 4,717      $ 12,117      $ 8,110   

Provision for loan losses

   (b)     448        143        693        232   
    

 

 

   

 

 

   

 

 

   

 

 

 

Net interest income after provision for loan losses

       5,801        4,574        11,424        7,878   

Noninterest income

   (c)     1,509        2,193        2,576        3,362   

Bargain purchase gain

       —          (906     —          (906
    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted noninterest income

       1,509        1,287        2,576        2,456   

Adjusted income before noninterest expense

   (d)     7,310        5,861        14,000        10,334   

Total noninterest expense

   (e)     5,729        4,615        11,116        8,188   

Acquisition related expense

         (170       (248
    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted noninterest expense

   (f)     5,729        4,445        11,116        7,940   

Adjusted income before income tax expense

       1,581        1,416        2,884        2,394   

Adjusted income tax expense (1)

       514        458        938        774   
    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted net income

       1,067        958        1,946        1,620   
    

 

 

   

 

 

   

 

 

   

 

 

 

Diluted earnings per share (GAAP)

     $ 0.26      $ 0.44      $ 0.47      $ 0.64   

Bargain purchase gain

       —          (0.24     —          (0.25

Acquisition related expense

       —          0.05        —          0.05   
    

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted diluted earnings per share

     $ 0.26      $ 0.25      $ 0.47      $ 0.44   
    

 

 

   

 

 

   

 

 

   

 

 

 

Efficiency ratio

   (e) / (a+c)     73.85     66.79     75.66     71.37

Adjusted efficiency ratio(2)

   (f) / (b+d)     73.85     74.03     75.66     75.15

Adjusted return on assets (2)

       0.61     0.81     0.58     0.76

Adjusted return on equity (2)

       7.45     7.57     6.89     6.88

Total average assets

     $ 697,708      $ 474,562      $ 674,624      $ 427,424   

Total average stockholders’ equity

     $ 57,458      $ 50,775      $ 56,952      $ 47,510   

 

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


INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

 

     June 30,     December 31,  
     2014     2013     2013  

Tangible Common Equity

      

Total stockholder’s equity

   $ 57,940      $ 54,430      $ 55,483   

Adjustments:

      

Goodwill

     2,684        2,684        2,684   

Core deposit intangible

     552        593        573   
  

 

 

   

 

 

   

 

 

 

Tangible common equity

   $ 54,704      $ 51,153      $ 52,226   
  

 

 

   

 

 

   

 

 

 

Tangible Assets

      

Total Assets

   $ 729,070      $ 530,583      $ 634,946   

Adjustments:

      

Goodwill

     2,684        2,684        2,684   

Core deposit intangible

     552        593        573   
  

 

 

   

 

 

   

 

 

 

Tangible Assets

   $ 725,834      $ 527,306      $ 631,689   
  

 

 

   

 

 

   

 

 

 

Common shares outstanding

     3,945,753        3,890,389        3,945,114   

Tangible equity to tangible assets

     7.54     9.70     8.27

Book value per common share

   $ 14.68      $ 13.99      $ 14.06   

Tangible book value per common share

   $ 13.86      $ 13.15      $ 13.24