0001193125-15-264722 8-K 2 20150728 2.02 9.01 20150728 20150728 Investar Holding Corp 0001602658 6022 271560715 LA 1231 8-K 34 001-36522 151008194 7244 PERKINS ROAD BATON ROUGE LA 70808 225-227-2222 7244 PERKINS ROAD BATON ROUGE LA 70808 8-K 1 d44866d8k.htm FORM 8-K Form 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 28, 2015

 

 

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 July 28, 2015, Investar Holding Corporation issued a press release announcing its financial results for the quarter ended June 30, 2015. A copy of the press release is furnished as exhibit 99.1 to this Current Report on Form 8-K.

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

 

Item 9.01.

    Financial Statements and Exhibits.

 

 

(d)

        Exhibits

 

Exhibit
Number

 

Description of Exhibit

99.1  

Press release of Investar Holding Corporation dated July 28, 2015 announcing financial results for the quarter ended June 30, 2015.


SIGNATURES

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

 

     

INVESTAR HOLDING CORPORATION

Date: July 28, 2015

   

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 July 28, 2015 announcing financial results for the quarter ended June 30, 2015.

EX-99.1 2 d44866dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

For Immediate Release

Investar Holding Corporation Announces 2015 Second Quarter Results

BATON ROUGE, LA (July 28, 2015) – Investar Holding Corporation (NASDAQ: ISTR) (the “Company”), the holding company for Investar Bank, today announced financial results for the quarter ended June 30, 2015. For the quarter ended June 30, 2015, the Company reported net income of $1.8 million, or $0.25 per diluted share, compared to $1.1 million, or $0.26 per diluted share for the quarter ended June 30, 2014. This represents an increase of $0.7 million, or 69.9%, in net income.

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

“We are pleased to announce another great quarter for our company. Investar continues to experience solid growth in the loan portfolio, noninterest-bearing deposits and earnings while continuing to place a focus on increasing efficiency throughout the organization, allowing for the reduction of operational costs while, at the same time, continuing to meet growth targets.”

Performance Highlights

 

 

 

Increase in net income of $0.7 million, or 69.9%, for the second quarter of 2015 compared to the second quarter of 2014.

 

 

 

Total loans, net of held for sale, increased $50.8 million, or 8.2%, at June 30, 2015 from December 31, 2014.

 

 

 

Total noninterest-bearing deposits were $86.3 million at June 30, 2015, an increase of $16.1 million, or 23%, compared to December 31, 2014.

 

 

 

Return on average assets increased to 0.82% and 0.86% for the three and six months ended June 30, 2015, respectively, compared to 0.61% and 0.58% for the three and six months ended June 30, 2014, respectively.

 

 

 

Nonperforming loans to total loans decreased to 0.40% at June 30, 2015 from 0.54% at December 31, 2014.

 

 

 

Allowance for loan losses to nonperforming and total loans increased to 213.2% and 0.85%, respectively, at June 30, 2015 compared to 138.61% and 0.74%, respectively, at December 31, 2014.

 

 

 

Efficiency ratio improved to 65.91% for the six months ended June 30, 2015 compared to 75.66% for the six months ended June 30, 2014.


Loans

Total loans were $673.6 million at June 30, 2015, an increase of $50.8 million, or 8.2%, from December 31, 2014.

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

 

          Percentage           Percentage     Increase/(Decrease)  
    June 30, 2015     of Portfolio     December 31, 2014     of Portfolio     Amount     Percent  

Mortgage loans on real estate

           

Construction and development

    $ 70,927          10.5  %        $ 71,350          11.4 %         $ (423)         (0.1) %   

1-4 Family

    153,118          22.7              137,519          22.1             15,599          11.3         

Multifamily

    21,260          3.2              17,458          2.8             3,802          21.8         

Farmland

    3,001          0.4              2,919          0.5             82          2.8         

Commercial real estate

           

Owner occupied

    129,825          19.3              119,668          19.2             10,157          8.5         

Nonowner occupied

    119,321          17.7              105,390          16.9             13,931          13.2         

Commercial and industrial

    56,485          8.4              54,187          8.7             2,298          4.2         

Consumer

    119,649          17.8              114,299          18.4             5,350          4.7         
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total loans

    673,586          100  %        622,790          100 %        50,796          8.2  %   

Loans held for sale

    78,212            103,396            (25,184)         (24.4)        
 

 

 

     

 

 

     

 

 

   

 

 

 

Total gross loans

    $             751,798            $             726,186            $           25,612                  3.5  %   
 

 

 

     

 

 

     

 

 

   

 

 

 

Consumer loans, including consumer loans held for sale, totaled $192.6 million at June 30, 2015, a decrease of $21.4 million, or 10% from $214 million at December 31, 2014. The decrease is mainly attributable to the $26.8 million decrease in the balance of consumer loans held for sale at June 30, 2015 when compared to December 31, 2014. Two consumer loan sales were postponed by the buyer from the fourth quarter of 2014 to the first quarter of 2015, therefore increasing the balance of consumer loans held for sale at December 31, 2014.

At June 30, 2015, the Company’s total business lending portfolio, which consists of loans secured by owner occupied commercial real estate properties and commercial and industrial loans, was $186.3 million, an increase of $12.4 million, or 7.2%, compared to the business lending portfolio of $173.9 million at December 31, 2014.

Management continues to monitor the Company’s loan portfolio for exposure, directly or indirectly, to the potential negative impacts from the fluctuation in oil and gas prices. Less than 1% of the total loan portfolio remains directly related to the energy sector. At this time, management does not anticipate that decreases in oil and gas prices will negatively impact borrowers’ ability to service their debt. Management continually evaluates the allowance for loan losses based on several factors, including economic conditions, and currently believes that any potential negatively affected future cash flows related to these loans would be covered by the allowance for loan losses.

The provision for loan loss expense was $0.4 million for the second quarter of 2015, a decrease of $48,000 compared to the second quarter of 2014. The allowance for loan losses was $5.7 million, or 213.2% and 0.85% of nonperforming loans and total loans, respectively, at June 30, 2015, compared to $4.6 million, or 138.61% and 0.74% of nonperforming loans and total loans, respectively, at December 31, 2014. Nonperforming loans to total loans improved to 0.40% at June 30, 2015 compared to 0.54% at December 31, 2014.


Deposits

Total deposits at June 30, 2015 were $706 million, an increase of $77.9 million, or 12.4%, from December 31, 2014. The increase in total deposits was driven primarily by an increase of $16.1 million, or 23%, in noninterest-bearing demand deposits, and an increase in time deposits of $33.5 million, or 10.8%, from December 31, 2014. The Company’s deposit cross sell strategy, as well as management’s focus on growing the commercial and industrial loan portfolio and bringing in related deposits, continues to positively impact both noninterest-bearing demand deposit and NOW account growth.

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

 

          Percentage           Percentage     Increase/(Decrease)  
    June 30, 2015     of Portfolio     December 31, 2014     of Portfolio     Amount     Percent  

Noninterest-bearing demand
deposits

    $ 86,339          12.2   %        $ 70,217          11.2  %         $ 16,122          23.0  %   

NOW accounts

    131,136          18.6              116,644          18.6              14,492          12.4         

Money market deposit
accounts

    92,126          13.1              77,589          12.3              14,537          18.7         

Savings accounts

    52,546          7.4              53,332          8.5              (786)         (1.5)        

Time deposits

    343,860          48.7              310,336          49.4              33,524          10.8         
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total deposits

    $             706,007                    100   %        $             628,118                    100  %        $      77,889                12.4  %   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net Interest Income

Net interest income for the second quarter of 2015 totaled $7.8 million, an increase of $0.3 million, or 3.8%, compared to the first quarter of 2015, and an increase of $1.5 million, or 24.5%, compared to the second quarter of 2014. The increase was a direct result of continued growth of the Company’s loan portfolio with an increase in net interest income of $1.8 million due to an increase in volume offset by a $0.3 million decrease related to a reduction in yield compared to the second quarter of 2014.

The Company’s net interest margin was 3.70% for the quarter ended June 30, 2015 compared to 3.71% for the first quarter of 2015 and 3.85% for the second quarter of 2014. The yield on interest earning assets was 4.37% for the quarter ended June 30, 2015 compared to 4.35% for the first quarter of 2015 and 4.56% for the second quarter of 2014. The cost of deposits increased one basis point when comparing the second quarter of 2015 to the first quarter of 2015 and remained constant when comparing the second quarter of 2015 to the second quarter of 2014.

Noninterest Income

Noninterest income for the second quarter of 2015 totaled $2.1 million, a decrease of $0.5 million, or 18.7%, compared to the first quarter of 2015, and an increase of $0.6 million, or 36.9%, compared to the second quarter of 2014. The decrease from the first quarter to the second quarter of 2015 is primarily a result of the decrease in the gain on sale of loans. The Company experienced a greater volume of loan sales during the first quarter of 2015 as a result of two consumer loan pool sales being postponed by the buyer at the end of 2014.

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

 

  

 

 

    

 

 

 
     Q2 2015      Q1 2015      Q2 2014       Qtr/Qtr        Year/Year   
  

 

 

    

 

 

 

Gain on sale of loans

              

Consumer

     $ 803           $ 1,258           $ 546                 -36%                 47%   

Mortgage

     274           473           485           -42%         -44%   
  

 

 

    

 

 

    

 

 

       

Total

               1,077                     1,731                     1,031           -38%         4%   

The increase in noninterest income from the second quarter of 2014 resulted primarily from the $0.3 million increase in other operating income and the $0.1 million increase in fee income on loans held for sale. The increase in other operating income is attributable to the $0.3 million increase in servicing fees, a direct result of the growth in the Company’s servicing portfolio from increased consumer loan sales.


Noninterest Expense

Noninterest expense for the second quarter of 2015 totaled $6.7 million, an increase of $0.3 million, or 4%, compared to the first quarter of 2015, and an increase of $1 million, or 16.6%, compared to the second quarter of 2014. The increase in noninterest expense from the second quarter of 2014 is primarily due to the $0.5 million increase in salaries and employee benefits and the $0.3 million increase in other operating expenses, both of which are attributable to the continued growth of the Company including the opening of the Highland Road branch in Baton Rouge, Louisiana on August 1, 2014 and the addition of 11 full-time equivalent employees.

Basic Earnings Per Share and Diluted Earnings Per Share

The Company reported both basic earnings per share and diluted earnings per share of $0.25 for the three months ended June 30, 2015, a decrease of $0.02 and $0.01, respectively, compared to basic and diluted earnings per share for the three months ended June 30, 2014. The decrease in both basic and diluted earnings per share is directly attributable to the increase in the number of weighted average number of common shares outstanding used in the computations.

Taxes

The Company recorded income tax expense of $1 million for the quarter ended June 30, 2015, which equates to an effective tax rate of 34.4%.

About Investar Holding Corporation

Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, a state chartered bank. The Company’s primary market is South Louisiana and it currently operates 11 full service banking offices located throughout its market. At June 30, 2015, the Company had 176 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 book value,” “tangible book value per common share,” “efficiency ratio,” “tangible equity to tangible assets,” “adjusted efficiency ratio,” “adjusted return on equity,” and “adjusted net income.” 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 Corporation

Chris Hufft

Chief Accounting Officer

(225) 227-2215

Chris.Hufft@investarbank.com


INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

 

                                                 
         June 30, 2015            December 31, 2014    
     (Unaudited)         

ASSETS

     

Cash and due from banks

     $ 7,541           $ 5,519     

Interest-bearing balances due from other banks

     16,807           13,493     

Federal funds sold

     191           500     
  

 

 

    

 

 

 

Cash and cash equivalents

     24,539           19,512     
     

Available for sale securities at fair value (amortized cost of $82,049 and $69,838, respectively)

     82,236           70,299     

Held to maturity securities at amortized cost (estimated fair value of $24,015 and $22,301, respectively)

     24,230           22,519     

Loans held for sale

     78,212           103,396     

Loans, net of allowance for loan losses of $5,728 and $4,630, respectively

     667,858           618,160     

Other equity securities

     4,183           5,566     

Bank premises and equipment, net of accumulated depreciation of $4,662 and $3,964, respectively

     29,444           28,538     

Other real estate owned, net

     2,519           2,735     

Accrued interest receivable

     2,432           2,435     

Deferred tax asset

     1,624           1,097     

Goodwill and other intangible assets

     3,195             3,216     

Other assets

     1,383           1,881     
  

 

 

    

 

 

 

Total assets

     $ 921,855           $ 879,354     
  

 

 

    

 

 

 
     

LIABILITIES

     

Deposits

     

Noninterest-bearing

     $ 86,339           $ 70,217     

Interest-bearing

     619,668           557,901     
  

 

 

    

 

 

 

Total deposits

     706,007           628,118     

Advances from Federal Home Loan Bank

     79,066           125,785     

Repurchase agreements

     15,130           12,293     

Note payable

     3,609           3,609     

Accrued taxes and other liabilities

     11,170           6,165     
  

 

 

    

 

 

 

Total liabilities

       814,982             775,970     
     

STOCKHOLDERS’ EQUITY

     

Preferred stock, $1.00 par value per share; 5,000,000 shares authorized

     -           -     

Common stock, $1.00 par value per share; 40,000,000 shares authorized; 7,293,209 and 7,262,085 shares issued and outstanding, respectively

     7,295           7,264     

Treasury stock

     (26)          (23)    

Surplus

     84,358           84,213     

Retained earnings

     15,461           11,809     

Accumulated other comprehensive (loss) income

     (215)          121     
  

 

 

    

 

 

 

Total stockholders’ equity

     106,873           103,384     
  

 

 

    

 

 

 

Total liabilities and stockholders’ equity

     $ 921,855           $ 879,354     
  

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts in thousands, except share data)

(Unaudited)

 

           Three months ended                  Six months ended        
     June 30,      June 30,  
     2015      2014      2015      2014  

INTEREST INCOME

           

Interest and fees on loans

     $ 8,646           $ 7,119           $ 16,944           $ 13,794     

Interest on investment securities

     523           278           1,008           550     

Other interest income

     18           10           35           20     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest income

     9,187           7,407           17,987           14,364     
           

INTEREST EXPENSE

           

Interest on deposits

     1,299           1,050           2,491           2,053     

Interest on borrowings

     108           108           217           194     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total interest expense

     1,407           1,158           2,708           2,247     
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income

     7,780           6,249           15,279           12,117     

Provision for loan losses

     400           448           1,100           693     
  

 

 

    

 

 

    

 

 

    

 

 

 

Net interest income after provision for loan losses

     7,380           5,801           14,179           11,424     
           

NONINTEREST INCOME

           

Service charges on deposit accounts

     97           73           191           136     

Gain on sale of investment securities, net

     134           48           134           165     

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

     7           (5)          6           (7)    

Gain on sale of loans, net

     1,077           1,031           2,808           1,655     

Fee income on loans held for sale, net

     210           89           510           165     

Other operating income

     541           273           957           462     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest income

     2,066           1,509           4,606           2,576     
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before noninterest expense

     9,446           7,310           18,785           14,000     
           

NONINTEREST EXPENSE

           

Depreciation and amortization

     362           328           719           631     

Salaries and employee benefits

     3,971           3,491           7,879           6,962     

Occupancy

     225           181           438           406     

Data processing

     370           308           710           586     

Marketing

     62           71           120           147     

Professional fees

     237           197           499           256     

Other operating expenses

     1,455           1,153           2,741           2,128     
  

 

 

    

 

 

    

 

 

    

 

 

 

Total noninterest expense

     6,682           5,729           13,106           11,116     
  

 

 

    

 

 

    

 

 

    

 

 

 

Income before income tax expense

     2,764           1,581           5,679           2,884     

Income tax expense

     951           514           1,916           938     
  

 

 

    

 

 

    

 

 

    

 

 

 

Net income

     $ 1,813           $ 1,067           $ 3,763           $ 1,946     
  

 

 

    

 

 

    

 

 

    

 

 

 
           

EARNINGS PER SHARE

           

Basic earnings per share

     $ 0.25           $ 0.27           $ 0.52           $ 0.50     
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share

     $ 0.25           $ 0.26           $ 0.52           $ 0.47     
  

 

 

    

 

 

    

 

 

    

 

 

 

Cash dividends declared per common share

     $           0.01           $           0.01           $           0.02           $           0.02     
  

 

 

    

 

 

    

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

EARNINGS PER COMMON SHARE

(Amounts in thousands, except share data)

(Unaudited)

 

     Three months ended      Six months ended  
     June 30,      June 30,  
     2015      2014      2015      2014  

Net income available to common shareholders

     $ 1,813           $ 1,067           $ 3,763           $ 1,946     

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

     7,219,593           3,901,542           7,219,415           3,901,304     

Effect of dilutive securities:

           

Restricted stock

     13,372           44,493           11,065           44,272     

Stock options

     16,725           22,810           13,478           22,810     

Stock warrants

     12,467           193,498           10,765           193,498     
  

 

 

    

 

 

    

 

 

    

 

 

 

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

               7,262,157                     4,162,343                     7,254,723                     4,161,884     
  

 

 

    

 

 

    

 

 

    

 

 

 

Basic earnings per share

     $ 0.25           $ 0.27           $ 0.52           $ 0.50     
  

 

 

    

 

 

    

 

 

    

 

 

 

Diluted earnings per share

     $ 0.25           $ 0.26           $ 0.52           $ 0.47     
  

 

 

    

 

 

    

 

 

    

 

 

 


INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

  

 

 

    

 

 

 
     Q2 2015      Q1 2015      Q2 2014          Qtr/Qtr          Year/Year  
  

 

 

    

 

 

 

EARNINGS DATA

              

Total interest income

     $ 9,187           $ 8,800           $ 7,407           4.40%         24.03%   

Total interest expense

     1,407           1,301           1,158           8.15%         21.50%   
  

 

 

    

 

 

    

 

 

       

Net interest income

     7,780           7,499           6,249           3.75%         24.50%   

Provision for loan losses

     400           700           448           -42.86%         -10.71%   

Total noninterest income

     2,066           2,540           1,509           -18.66%         36.91%   

Total noninterest expense

     6,682           6,424           5,729           4.02%         16.63%   
  

 

 

    

 

 

    

 

 

       

Income before income taxes

     2,764           2,915           1,581           -5.18%         74.83%   

Income tax expense

     951           965           514           -1.45%         85.02%   

Net income

     $ 1,813           $ 1,950           $ 1,067           -7.03%         69.92%   

AVERAGE BALANCE SHEET DATA

              

Total assets

     $ 891,581           $ 869,008           $ 697,708           2.60%         27.79%   

Total interest-earning assets

     842,984           819,876           650,811           2.82%         29.53%   

Total loans

     729,851           714,338           575,978           2.17%         26.72%   

Total interest-bearing deposits

     341,948           584,697           500,725           -41.52%         -31.71%   

Total interest-bearing liabilities

     694,497           679,891           572,084           2.15%         21.40%   

Total deposits

     699,151           661,923           565,219           5.62%         23.70%   

Total shareholders’ equity

     106,583           104,916           57,458           1.59%         85.50%   

PER SHARE DATA

              

Basic earnings per share

     $ 0.25           $ 0.27           $ 0.27           -6.99%         -6.99%   

Diluted earnings per share

     0.25           0.27           0.26           -7.54%         -3.98%   

Book value per share

     14.65           14.50           14.68           1.06%         -0.18%   

Tangible book value per share (1)

     14.22           14.06           13.86           1.11%         2.57%   

Common shares outstanding

             7,293,209                   7,268,488                   3,945,753           0.34%         84.84%   

PERFORMANCE RATIOS

              

Return on average assets

     0.82%         0.91%         0.61%         -9.89%         34.43%   

Return on average equity

     6.82%         7.54%         7.45%         -9.55%         -8.46%   

Net interest margin

     3.70%         3.71%         3.85%         -0.27%         -3.90%   

Net interest income to average assets

     3.50%         3.50%         4.26%         0.00%         -17.84%   

Noninterest expense to average assets

     3.01%         3.00%         3.29%         0.33%         -8.51%   

Efficiency ratio (1)

     67.87%         63.99%         73.85%         6.06%         -8.10%   

Dividend payout ratio

     3.11%         2.74%         4.56%         13.50%         -31.80%   

Net chargeoffs to average loans

     0.00%         -0.01%         0.03%         -100.00%         -100.00%   

ASSET QUALITY RATIOS

              

Nonperforming assets to total assets

     0.56%         0.64%         0.65%         -12.50%         -13.85%   

Nonperforming loans to loans

     0.40%         0.47%         0.23%         -14.89%         73.91%   

Allowance for loan losses to total loans

     0.85%         0.83%         0.69%         2.41%         23.19%   

Allowance for loan losses to nonperforming loans

     213.20%         178.42%         296.24%         19.49%         -28.03%   

CAPITAL RATIOS(2)

              

Investar Holding Corporation:

              

Total equity to total assets

     11.59%         12.14%         7.95%         -4.50%         45.83%   

Tangible equity to tangible assets

     11.29%         11.81%         7.54%         -4.44%         49.68%   

Tier 1 leverage ratio

     12.15%         12.25%         8.37%         -0.82%         45.16%   

Common equity tier 1 capital ratio

     12.96%         13.48%         NA         -3.86%         NA       

Tier 1 capital ratio

     13.39%         13.94%         9.81%         -3.95%         36.49%   

Total capital ratio

     14.10%         14.65%         10.46%         -3.75%         34.80%   

Investar Bank:

              

Tier 1 leverage ratio

     11.72%         11.80%         8.99%         -0.68%         30.37%   

Common equity tier 1 capital ratio

     12.91%         13.43%         NA         -3.87%         NA       

Tier 1 capital ratio

     12.91%         13.43%         10.54%         -3.87%         22.49%   

Total capital ratio

     13.62%         14.14%         11.20%         -3.68%         21.61%   

 

(1) 

Non-GAAP financial measures. See reconciliation.

 

(2) 

Beginning January 1, 2015, the capital ratios for the Company and the Bank are calculated using the Basel III framework. Capital ratios for prior periods were calculated using the Basel I framework. The Common Equity Tier 1 (CET1) capital ratio is a new ratio introduced under the Basel III framework. Ratios are estimated for June 30, 2015.


INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

     Three months ended June 30,
     2015   2014
     Average
Balance
   Interest
Income/
Expense
   Yield/
Rate
  Average
Balance
   Interest
Income/
Expense
   Yield/
Rate

Assets

                            

Interest-earning assets:

                            

Loans

       $ 729,851            $ 8,646            4.75  %       $ 575,978            $ 7,119            4.96  %

Securities:

                            

Taxable

       77,050            404            2.10           58,088            188            1.30    

Tax-exempt

       18,948            119            2.52           12,995            90            2.78    

Interest-bearing balances with banks

       17,135            18            0.42           3,750            10            1.07    
    

 

 

      

 

 

          

 

 

      

 

 

      

Total interest-earning assets

       842,984                9,187            4.37           650,811            7,407            4.56    

Cash and due from banks

       5,432                     11,734              

Intangible assets

       3,199                     3,240              

Other assets

       45,532                     35,534              

Allowance for loan losses

       (5,566)                     (3,611)              
    

 

 

               

 

 

           

Total assets

       $ 891,581                     $ 697,708              
    

 

 

               

 

 

           
                            

Liabilities and shareholders’ equity

                            

Interest-bearing liabilities:

                            

Deposits:

                            

Interest-bearing demand

       $ 222,130            $ 353              0.64   %       $ 166,763            $ 262            0.63   %

Savings deposits

       53,364            90            0.68           52,407            89            0.68    

Time deposits

       341,948            856            1.00           281,555            699            1.00    
    

 

 

      

 

 

          

 

 

      

 

 

      

Total interest-bearing deposits

       617,442            1,299            0.84           500,725                1,050            0.84    

Short-term borrowings

       36,977            16            0.17           33,108            20            0.24    

Long-term debt

       40,078            92            0.92           38,251            88            0.92    
    

 

 

      

 

 

          

 

 

      

 

 

      

Total interest-bearing liabilities

       694,497            1,407                 0.81               572,084            1,158            0.81    

Noninterest-bearing deposits

       81,709                     64,494              

Other liabilities

       8,792                     3,672              

Stockholders’ equity

       106,583                     57,458              
    

 

 

               

 

 

           

Total liability and stockholders’ equity

       $     891,581                     $ 697,708              
    

 

 

      

 

 

          

 

 

      

 

 

      

Net interest income/net interest margin

            $ 7,780            3.70   %            $ 6,249                  3.85   %
         

 

 

      

 

 

          

 

 

      

 

 

 


INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

     Six months ended June 30,
     2015   2014
     Average
Balance
   Interest
Income/
Expense
   Yield/Rate   Average
Balance
   Interest
Income/
Expense
   Yield/Rate

Assets

                            

Interest-earning assets:

                            

Loans

       $ 722,136            $ 16,944            4.73   %       $ 554,384            $ 13,794            5.02   %

Securities:

                            

Taxable

       72,812            770            2.13           55,859            379            1.37    

Tax-exempt

       18,963            238            2.53           13,591            171            2.54    

Interest-bearing balances with banks

       17,580            35            0.40           4,776            20            0.84    
    

 

 

      

 

 

          

 

 

      

 

 

      

 

 

 

Total interest-earning assets

       831,491            17,987            4.36           628,610            14,364            4.61    

Cash and due from banks

       5,560                     11,306              

Intangible assets

       3,204                     3,245              

Other assets

       45,396                     34,967              

Allowance for loan losses

       (5,295)                     (3,504)              
    

 

 

               

 

 

           

Total assets

       $     880,356                     $     674,624              
    

 

 

               

 

 

           
                            

Liabilities and shareholders’ equity

                            

Interest-bearing liabilities:

                            

Deposits:

                            

Interest-bearing demand

       $ 213,477            $ 663            0.63   %       $ 162,760            $ 505            0.63   %

Savings deposits

       54,540            184            0.68           52,168            178            0.69    

Time deposits

       333,143                1,644            1.00               277,219                1,370            1.00    
    

 

 

      

 

 

          

 

 

      

 

 

      

Total interest-bearing deposits

       601,160            2,491            0.84           492,147            2,053            0.84    

Short-term borrowings

       45,145            40            0.18           24,153            25            0.21    

Long-term debt

       40,929            177            0.87           36,203            169            0.95    
    

 

 

      

 

 

          

 

 

      

 

 

      

Total interest-bearing liabilities

       687,234            2,708            0.79           552,503            2,247            0.82    

Noninterest-bearing deposits

       79,480                     61,845              

Other liabilities

       7,888                     3,324              

Stockholders’ equity

       105,754                     56,952              
    

 

 

               

 

 

           

Total liability and stockholders’ equity

       $ 880,356                     $ 674,624              
    

 

 

      

 

 

          

 

 

      

 

 

      

Net interest income/net interest margin

            $     15,279                 3.71   %            $     12,117                 3.89   %
         

 

 

      

 

 

          

 

 

      

 

 

 


INVESTAR HOLDING CORPORATION

RECONCILIATION OF NON GAAP FINANCIAL MEASURES

(Amounts in thousands, except share data)

(Unaudited)

 

                                                                                   
     June 30,      March 31,  
     2015      2014      2015  

Tangible common equity

        

Total stockholder’s equity

     $ 106,873           $ 57,940           $ 105,387     

Adjustments:

        

Goodwill

     2,684           2,684           2,684     

Core deposit intangible

     511           552           522     
  

 

 

    

 

 

    

 

 

 

Tangible common equity

     $ 103,678           $ 54,704           $ 102,181     
  

 

 

    

 

 

    

 

 

 

Tangible assets

        

Total assets

     $ 921,855           $ 729,070           $ 868,080     

Adjustments:

        

Goodwill

     2,684           2,684           2,684     

Core deposit intangible

     511           552           522     
  

 

 

    

 

 

    

 

 

 

Tangible assets

     $ 918,660           $ 725,834           $ 864,874     
  

 

 

    

 

 

    

 

 

 
        

Common shares outstanding

     7,293,209           3,945,753           7,268,488     

Tangible equity to tangible assets

     11.29%          7.54%          11.81%    

Book value per common share

     $ 14.65           $ 14.68           $ 14.50     

Tangible book value per common share

     $ 14.22           $ 13.86           $ 14.06     

 

          Three months ended  
          June 30,      March 31,  
          2015      2014      2015  

Efficiency ratio

           

Net interest income

   (a)                7,780                     6,249                     7,499     

Provision for loan losses

        400           448           700     
     

 

 

    

 

 

    

 

 

 

Net interest income after provision for loan losses

        7,380           5,801           6,799     
           

Noninterest income

   (b)      2,066           1,509           2,540     
           

Total noninterest expense

   (c)      6,682           5,729           6,424     
           

Efficiency ratio

   (c) / (a+b)      67.87%         73.85%         63.99%