Investar Holding Corporation Announces 2016 Second Quarter Results
BATON ROUGE, LA, July 28, 2016 (GLOBE NEWSWIRE) -- Investar Holding Corporation (NASDAQ:ISTR) (the “Company”), the holding company for Investar Bank (the “Bank”), today announced financial results for the quarter ended June 30, 2016. The Company reported net income of $2.0 million, or $0.28 per diluted share for the second quarter of 2016, compared to $2.0 million, or $0.28 per diluted share for the quarter ended March 31, 2016, and $1.8 million, or $0.25 per diluted share, for the quarter ended June 30, 2015.
Investar Holding Corporation President and Chief Executive Officer John D’Angelo said:
“This was another successful quarter for Investar and demonstrates our continued emphasis on creating long-term shareholder value. We continued to experience solid organic loan growth which fueled the increase in interest income. Deposit growth remains a focus and we are very pleased with the 15% growth in our noninterest-bearing deposits. During the quarter, we increased the quarterly dividend payable to shareholders by 11% as well as repurchased over 82,000 shares of our common stock. This brings our total repurchases to 140,000 shares under our share repurchase program, which is approximately 56% of the total shares authorized for repurchase. Our Board and management remain keenly focused on our commitment to delivering shareholder value as demonstrated by our increased dividend and stock repurchase activity.”
Second Quarter Highlights
Total loans, excluding loans held for sale, increased 9.7% year to date, or 19.4% annualized. Total loans, excluding loans held for sale, increased $19.8 million, or 2.5%, compared to March 31, 2016, and increased $143.9 million, or 21.4%, compared to June 30, 2015, to $817.5 million at June 30, 2016.
The business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $226.6 million at June 30, 2016, an increase of $10.0 million, or 4.6%, compared to the business lending portfolio of $216.6 million at March 31, 2016, and an increase of $40.3 million, or 21.6%, compared to the business lending portfolio of $186.3 million at June 30, 2015.
Other real estate owned decreased $0.4 million, or 59.9%, to $0.3 million at June 30, 2016, compared to $0.7 million at March 31, 2016, and decreased $2.2 million, or 88.9%, compared to $2.5 million at June 30, 2015.
Total noninterest-bearing deposits were $109.8 million at June 30, 2016, an increase of $14.8 million, or 15.6%, compared to March 31, 2016, and an increase of $23.5 million, or 27.2%, compared to June 30, 2015.
Total interest income increased $0.3 million, or 3.2%, compared to the quarter ended March 31, 2016, and increased $1.5 million, or 16.7%, compared to the quarter ended June 30, 2015, to $10.7 million for the quarter ended June 30, 2016.
Net charge-offs remain low, averaging 0.02% of total loans for the past eight quarters.
The Company repurchased 82,123 shares of the Company’s common stock through our stock repurchase program at an average price of $15.55 during the quarter ended June 30, 2016.
Loans
Total loans were $817.5 million at June 30, 2016, an increase of $19.8 million, or 2.5 %, compared to March 31, 2016, and an increase of $143.9 million, or 21.4%, compared to June 30, 2015.
The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated (dollars in thousands).
Linked Qtr Change
Year/Year Change
Percentage of Total Loans
6/30/2016
3/31/2016
6/30/2015
$
%
$
%
6/30/2016
6/30/2015
Mortgage loans on real estate
Construction and development
$
101,080
$
95,353
$
70,927
$
5,727
6.0
%
$
30,153
42.5
%
12.4
%
12.0
%
1-4 Family
166,778
162,312
153,118
4,466
2.8
13,660
8.9
20.4
20.3
Multifamily
37,300
33,609
21,260
3,691
11.0
16,040
75.4
4.6
4.2
Farmland
8,343
6,366
3,001
1,977
31.1
5,342
178.0
1.0
0.8
Commercial real estate
Owner-occupied
151,464
141,583
129,825
9,881
7.0
21,639
16.7
18.5
17.8
Nonowner-occupied
180,842
174,176
119,321
6,666
3.8
61,521
51.6
22.1
21.8
Commercial and industrial
75,103
74,990
56,485
113
0.2
18,618
33.0
9.2
9.4
Consumer
96,560
109,233
119,649
(12,673
)
(11.6
)
(23,089
)
(19.3
)
11.8
13.7
Total loans
817,470
797,622
673,586
19,848
2.5
%
143,884
21.4
%
100
%
100
%
Loans held for sale
46,717
50,921
78,212
(4,204
)
(8.3
)
(31,495
)
(40.3
)
Total gross loans
$
864,187
$
848,543
$
751,798
$
15,644
1.8
%
$
112,389
14.9
%
Consumer loans, including consumer loans held for sale, totaled $143.3 million at June 30, 2016, a decrease of $16.7 million, or 10.5%, compared to $160.0 million at March 31, 2016, and a decrease of $49.3 million, or 25.6%, compared to June 30, 2015. The decrease compared to the linked quarter is mainly attributable to principal payments on consumer loan balances. Since the Bank discontinued accepting indirect auto loan applications at the end of 2015, which was the primary source of its consumer loan portfolio and consumer loans held for sale, the consumer loan portfolio is expected to decrease over time. The Bank currently has the intent and ability to sell the balance of the consumer loans classified as held for sale at June 30, 2016, however, if this classification were to change, the loans would be transferred to the consumer loan portfolio.
At June 30, 2016, the Company’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $226.6 million, an increase of $10.0 million, or 4.6%, compared to the business lending portfolio of $216.6 million at March 31, 2016 and an increase of $40.3 million, or 21.6%, compared to the business lending portfolio of $186.3 million at June 30, 2015.
Credit Quality
Nonperforming loans were $5.5 million, or 0.67% of total loans, at June 30, 2016, an increase of $3.2 million, or 136.9%, compared to $2.3 million, or 0.29% of total loans, at March 31, 2016, and an increase of $2.8 million, or 103.7%, compared to $2.7 million, or 0.40% of total loans, at June 30, 2015. The allowance for loan losses was $7.1 million, or 129.6% and 0.87% of nonperforming loans and total loans, respectively, at June 30, 2016, compared to $6.5 million, or 279.8% and 0.81% of nonperforming loans and total loans, respectively, at March 31, 2016 and $5.7 million, or 213.2% and 0.85% of nonperforming loans and total loans, respectively, at June 30, 2015. The allowance for loan losses plus the fair value marks on acquired loans was 0.95% of total loans at June 30, 2016 compared to 0.90% at March 31, 2016 and 0.95% at June 30, 2015. The increase in nonperforming loans and the decrease in the allowance for loan losses as a percentage of nonperforming loans at June 30, 2016 when compared to both March 31, 2016 and June 30, 2015 are mainly attributable to a $2.7 million commercial and industrial loan relationship not related to the oil and gas industry. Management has evaluated the loan relationship, which is well collateralized and properly reserved, and expects it to be resolved without any additional material impact to the financial statements.
The provision for loan loss expense was $0.8 million for the second quarter of 2016, an increase of $0.3 million and $0.4 million compared to March 31, 2016 and June 30, 2015, respectively. The increase in the provision for loan loss expense can also be attributed to the $2.7 million loan relationship discussed above.
Management continues to monitor the Company’s loan portfolio for exposure to potential negative impacts of suppressed oil and gas prices. We consider our exposure to the energy sector not to be significant, at less than one percent of the total loan portfolio at June 30, 2016. However, should the price of oil and gas decline further and/or remain at the current low price for an extended period, the general economic conditions in our south Louisiana markets could be negatively affected and could negatively impact borrowers’ ability to service their debt. Management continually evaluates the allowance for loan losses based on several factors, including economic conditions, and currently believes that any potential negatively affected future cash flows related to these loans would be covered by the current allowance for loan losses.
Deposits
Total deposits at June 30, 2016 were $867.2 million, an increase of $58.5 million, or 7.2%, compared to March 31, 2016 and an increase of $161.2 million, or 22.8%, compared to June 30, 2015. The increase in total deposits was driven by an increase in noninterest-bearing deposits of $23.5 million, or 27.2%, an increase in money market accounts of $16.4 million, or 17.8%, and an increase in time deposits of $112.2 million, or 32.6%, compared to June 30, 2015.
The Company’s focus on relationship banking continues to positively impact noninterest-bearing demand deposit growth.
The following table sets forth the composition of the Company’s deposits as of the dates indicated (dollars in thousands).
Linked Qtr Change
Year/Year Change
Percentage of Total Deposits
6/30/2016
3/31/2016
6/30/2015
$
%
$
%
6/30/2016
6/30/2015
Noninterest-bearing demand deposits
$
109,828
$
95,033
$
86,339
$
14,795
15.6
%
$
23,489
27.2
%
12.7
%
12.2
%
NOW accounts
139,893
138,672
131,136
1,221
0.9
8,757
6.7
16.1
18.6
Money market deposit accounts
108,552
104,936
92,126
3,616
3.4
16,426
17.8
12.5
13.1
Savings accounts
52,899
52,285
52,546
614
1.2
353
0.7
6.1
7.4
Time deposits
456,033
417,772
343,860
38,261
9.2
112,173
32.6
52.6
48.7
Total deposits
$
867,205
$
808,698
$
706,007
$
58,507
7.2
%
$
161,198
22.8
%
100
%
100
%
Net Interest Income
Net interest income for the second quarter of 2016 totaled $8.7 million, an increase of $0.1 million, or 1.3%, compared to the first quarter of 2016, and an increase of $0.9 million, or 11.3%, compared to the second quarter of 2015. The increase was a direct result of continued growth of the Company’s loan portfolio with an increase in net interest income of $1.5 million due to an increase in volume offset by a $0.6 million decrease related to a reduction in yield compared to the second quarter of 2015.
The Company’s net interest margin was 3.38% for the quarter ended June 30, 2016 compared to 3.47% for the first quarter of 2016 and 3.70% for the second quarter of 2015. The yield on interest-earning assets was 4.18% for the quarter ended June 30, 2016 compared to 4.21% for the first quarter of 2016 and 4.37% for the second quarter of 2015.
The cost of deposits increased six basis points for the quarter ended June 30, 2016 compared to the first quarter of 2016, and increased twelve basis points compared to the second quarter of 2015. The increase is primarily a result of increases in time deposit rates.
Noninterest Income
Noninterest income for the second quarter of 2016 totaled $2.3 million, an increase of $1.0 million, or 75.3%, compared to the first quarter of 2016, and an increase of $0.2 million, or 9.2%, compared to the second quarter of 2015. The increase in noninterest income when compared to March 31, 2016 is mainly attributable to the $1.3 million gain on sale of fixed assets recognized for the sale of the land and building of one of the Bank’s branch locations to a healthcare company. The increase in gain on sale of fixed assets was offset by a $0.3 million decrease in the gain on sale of loans. Since exiting the indirect auto loan origination business at the end of 2015, the Bank has experienced decreased loan sales and has ceased originations of consumer loans held for sale. The Bank does intend to sell the balance of the consumer loans held for sale at June 30, 2016, however, it expects the gain on sale of loans to diminish over time.
Noninterest Expense
Noninterest expense for the second quarter of 2016 totaled $7.1 million, an increase of $0.7 million, or 11.3%, compared to the first quarter of 2016, and an increase of $0.4 million, or 6.3%, compared to the second quarter of 2015. The increase in noninterest expense compared to the first quarter of 2016 is primarily due to $0.6 million in customer reimbursements that we paid to certain borrowers during the second quarter.
Basic Earnings Per Share and Diluted Earnings Per Share
The Company reported both basic and diluted earnings per share of $0.28 for the three months ended June 30, 2016, an increase of $0.03, compared to basic and diluted earnings per share of $0.25 for the three months ended June 30, 2015.
Taxes
The Company recorded income tax expense of $1.0 million for the quarter ended June 30, 2016, which equates to an effective tax rate of 33.4%.
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 10 full service banking offices located throughout its market. At June 30, 2016, the Company had 152 full-time equivalent employees.
Non-GAAP Financial Measures
This press release contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures and ratios include “tangible common equity,” “tangible assets,” “tangible equity to tangible assets,” and “tangible book value per common share.” Management believes these non-GAAP financial measures provide information useful to investors in understanding the Company’s financial results, and the Company believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting the Company’s business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.
Forward-Looking Statements
This press release 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. The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. These factors include, but are not limited to, the following, any one or more of which could materially affect the outcome of future events:
business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;
our ability to achieve organic loan and deposit growth, and the composition of that growth;
changes (or the lack of changes) in interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;
the extent of continuing client demand for the high level of personalized service that is a key element of our banking approach as well as our ability to execute our strategy generally;
our dependence on our management team, and our ability to attract and retain qualified personnel;
changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers;
inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates;
the concentration of our business within our geographic areas of operation in Louisiana; and
concentration of credit exposure.
These factors should not be construed as exhaustive. Additional information on these and other risk factors can be found in Item 1A. “Risk Factors” and Item 7. “Special Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission.
INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)
As of and for the three months ended
6/30/2016
3/31/2016
6/30/2015
Linked Quarter
Year/Year
EARNINGS DATA
Total interest income
$
10,719
$
10,378
$
9,187
3.3
%
16.7
%
Total interest expense
2,061
1,831
1,407
12.6
%
46.5
%
Net interest income
8,658
8,547
7,780
1.3
%
11.3
%
Provision for loan losses
800
454
400
76.2
%
100.0
%
Total noninterest income
2,256
1,287
2,066
75.3
%
9.2
%
Total noninterest expense
7,104
6,384
6,682
11.3
%
6.3
%
Income before income taxes
3,010
2,996
2,764
0.5
%
8.9
%
Income tax expense
1,005
1,006
951
-0.1
%
5.7
%
Net income
$
2,005
$
1,990
$
1,813
0.8
%
10.6
%
AVERAGE BALANCE SHEET DATA
Total assets
$
1,086,604
$
1,044,993
$
891,581
4.0
%
21.9
%
Total interest-earning assets
1,028,360
988,779
842,984
4.0
%
22.0
%
Total loans
800,710
767,761
664,607
4.3
%
20.5
%
Total gross loans
852,475
832,368
729,851
2.4
%
16.8
%
Total interest-bearing deposits
739,678
676,826
617,442
9.3
%
19.8
%
Total interest-bearing liabilities
866,386
836,332
694,497
3.6
%
24.8
%
Total deposits
835,215
764,145
699,151
9.3
%
19.5
%
Total shareholders' equity
112,035
110,873
106,583
1.0
%
5.1
%
PER SHARE DATA
Earnings:
Basic earnings per share
$
0.28
$
0.28
$
0.25
0.0
%
12.0
%
Diluted earnings per share
0.28
0.28
0.25
0.0
%
12.0
%
Book value per share
15.63
15.28
14.65
2.3
%
6.7
%
Tangible book value per share(1)
15.18
14.83
14.22
2.4
%
6.8
%
Common shares outstanding
7,214,734
7,296,426
7,293,209
-1.1
%
-1.1
%
PERFORMANCE RATIOS
Return on average assets
0.74
%
0.76
%
0.82
%
-2.6
%
-9.8
%
Return on average equity
7.18
%
7.20
%
6.82
%
-0.3
%
5.3
%
Net interest margin
3.38
%
3.47
%
3.70
%
-2.6
%
-8.6
%
Net interest income to average assets
3.20
%
3.28
%
3.50
%
-2.4
%
-8.6
%
Noninterest expense to average assets
2.62
%
2.45
%
3.01
%
6.9
%
-13.0
%
Efficiency ratio(2)
65.09
%
64.92
%
67.87
%
0.3
%
-4.1
%
Dividend payout ratio
3.57
%
3.25
%
3.11
%
9.8
%
14.8
%
Net charge-offs to average loans
0.02
%
0.02
%
0.00
%
0.0
%
0.0
%
(1) Non-GAAP financial measure. See reconciliation.
(2) Efficiency ratio represents noninterest expenses divided by the sum of net interest income (before provision for loan losses) and noninterest income.
INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)
As of and for the three months ended
6/30/2016
3/31/2016
6/30/2015
Linked Quarter
Year/Year
ASSET QUALITY RATIOS
Nonperforming assets to total assets
0.51
%
0.28
%
0.56
%
82.1
%
-8.9
%
Nonperforming loans to total loans
0.67
%
0.29
%
0.40
%
131.0
%
67.5
%
Allowance for loan losses to total loans
0.87
%
0.81
%
0.85
%
7.4
%
2.4
%
Allowance for loan losses to nonperforming loans
129.6
%
279.75
%
213.20
%
-53.7
%
-39.2
%
CAPITAL RATIOS
Investar Holding Corporation:
Total equity to total assets
10.01
%
10.39
%
11.59
%
-3.7
%
-13.6
%
Tangible equity to tangible assets
9.75
%
10.11
%
11.29
%
-3.6
%
-13.6
%
Tier 1 leverage ratio
10.46
%
10.78
%
12.15
%
-3.0
%
-13.9
%
Common equity tier 1 capital ratio
11.11
%
11.49
%
12.96
%
-3.3
%
-14.3
%
Tier 1 capital ratio
11.47
%
11.86
%
13.39
%
-3.3
%
-14.3
%
Total capital ratio
12.19
%
12.54
%
14.10
%
-2.8
%
-13.5
%
Investar Bank:
Tier 1 leverage ratio
10.26
%
10.52
%
11.72
%
-2.5
%
-12.5
%
Common equity tier 1 capital ratio
11.25
%
11.57
%
12.91
%
-2.8
%
-12.9
%
Tier 1 capital ratio
11.25
%
11.57
%
12.91
%
-2.8
%
-12.9
%
Total capital ratio
11.97
%
12.25
%
13.62
%
-2.3
%
-12.1
%
INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)
June 30, 2016
March 31, 2016
June 30, 2015
ASSETS
Cash and due from banks
$
9,958
$
8,808
$
7,541
Interest-bearing balances due from other banks
27,175
12,465
16,807
Federal funds sold
1
51
191
Cash and cash equivalents
37,134
21,324
24,539
Available for sale securities at fair value (amortized cost of $149,986, $127,737, and $82,049, respectively)
151,841
128,570
82,236
Held to maturity securities at amortized cost (estimated fair value of $25,810, $26,348, and $24,015, respectively)
25,656
26,249
24,230
Loans held for sale
46,717
50,921
78,212
Loans, net of allowance for loan losses of $7,091, $6,463, and $5,728, respectively
810,379
791,159
667,858
Other equity securities
7,371
7,183
4,183
Bank premises and equipment, net of accumulated depreciation of $6,017, $5,727, and $4,662, respectively
30,147
30,759
29,444
Other real estate owned, net
279
695
2,519
Accrued interest receivable
2,840
2,978
2,432
Deferred tax asset
1,459
1,934
1,624
Goodwill and other intangible assets
3,254
3,265
3,195
Bank-owned life insurance
7,101
7,054
-
Other assets
2,752
1,438
1,383
Total assets
$
1,126,930
$
1,073,529
$
921,855
LIABILITIES
Deposits
Noninterest-bearing
$
109,828
$
95,033
$
86,339
Interest-bearing
757,377
713,665
619,668
Total deposits
867,205
808,698
706,007
Advances from Federal Home Loan Bank
93,599
103,960
79,066
Repurchase agreements
28,854
29,678
15,130
Junior subordinated debt
3,609
3,609
3,609
Accrued taxes and other liabilities
20,900
16,097
11,170
Total liabilities
1,014,167
962,042
814,982
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; 7,359,976, 7,358,231, and 7,294,987 shares issued and 7,214,734, 7,296,429, and 7,293,209 shares outstanding, respectively
7,360
7,358
7,295
Treasury stock
(2,249
)
(952
)
(26
)
Surplus
84,958
84,780
84,358
Retained earnings
22,507
20,575
15,461
Accumulated other comprehensive income (loss)
187
(274
)
(215
)
Total stockholders' equity
112,763
111,487
106,873
Total liabilities and stockholders' equity
$
1,126,930
$
1,073,529
$
921,855
INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data)
(Unaudited)
For the three months ended
For the six months ended
June 30, 2016
March 31, 2016
June 30, 2015
June 30, 2016
June 30, 2015
INTEREST INCOME
Interest and fees on loans
$
9,781
$
9,485
$
8,646
$
19,266
$
16,944
Interest on investment securities
891
856
523
1,747
1,008
Other interest income
47
37
18
84
35
Total interest income
10,719
10,378
9,187
21,097
17,987
INTEREST EXPENSE
Interest on deposits
1,763
1,515
1,299
3,278
2,491
Interest on borrowings
298
316
108
614
217
Total interest expense
2,061
1,831
1,407
3,892
2,708
Net interest income
8,658
8,547
7,780
17,205
15,279
Provision for loan losses
800
454
400
1,254
1,100
Net interest income after provision for loan losses
7,858
8,093
7,380
15,951
14,179
NONINTEREST INCOME
Service charges on deposit accounts
88
97
97
185
191
Gain on sale of investment securities, net
144
80
134
224
134
Gain on sale of fixed assets, net
1,252
-
-
1,252
-
Gain on sale of real estate owned, net
10
1
7
11
6
Gain on sale of loans, net
-
313
1,077
313
2,808
Fee income on loans held for sale, net
106
123
210
229
510
Servicing fees
431
468
373
899
653
Other operating income
225
205
168
430
304
Total noninterest income
2,256
1,287
2,066
3,543
4,606
Income before noninterest expense
10,114
9,380
9,446
19,494
18,785
NONINTEREST EXPENSE
Depreciation and amortization
369
370
362
739
719
Salaries and employee benefits
3,890
3,873
3,971
7,763
7,879
Occupancy
242
236
225
478
438
Data processing
367
374
370
741
710
Marketing
102
112
62
214
120
Professional fees
375
279
237
654
499
Customer reimbursements
584
-
-
584
-
Other operating expenses
1,175
1,140
1,455
2,315
2,741
Total noninterest expense
7,104
6,384
6,682
13,488
13,106
Income before income tax expense
3,010
2,996
2,764
6,006
5,679
Income tax expense
1,005
1,006
951
2,011
1,916
Net income
$
2,005
$
1,990
$
1,813
$
3,995
$
3,763
EARNINGS PER SHARE
Basic earnings per share
$
0.28
$
0.28
$
0.25
$
0.56
$
0.52
Diluted earnings per share
$
0.28
$
0.28
$
0.25
$
0.55
$
0.52
Cash dividends declared per common share
$
0.01
$
0.01
$
0.01
$
0.02
$
0.02
INVESTAR HOLDING CORPORATION
EARNINGS PER COMMON SHARE
(Amounts in thousands, except share data)
(Unaudited)
For the three months ended
For the six months ended
June 30, 2016
March 31, 2016
June 30, 2015
June 30, 2016
June 30, 2015
Net income available to common shareholders
$
2,005
$
1,990
$
1,813
$
3,995
$
3,763
Weighted average number of common shares outstanding used in computation of basic earnings per common share
7,158,532
7,194,558
7,219,593
7,176,545
7,219,415
Effect of dilutive securities:
Restricted stock
15,298
15,353
13,372
12,705
11,065
Stock options
14,715
14,854
16,725
14,752
13,478
Stock warrants
11,231
11,267
12,467
11,249
10,765
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share
7,199,776
7,236,032
7,262,157
7,215,251
7,254,723
Basic earnings per share
$
0.28
$
0.28
$
0.25
$
0.56
$
0.52
Diluted earnings per share
$
0.28
$
0.28
$
0.25
$
0.55
$
0.52
INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
For the three months ended
June 30, 2016
March 31, 2016
June 30, 2015
Average Balance
Interest Income/ Expense
Yield/ Rate
Average Balance
Interest Income/ Expense
Yield/ Rate
Average Balance
Interest Income/ Expense
Yield/ Rate
Assets
Interest-earning assets:
Loans
$
852,475
$
9,781
4.60
%
$
832,368
$
9,485
4.57
%
$
729,851
$
8,646
4.75
%
Securities:
Taxable
129,126
732
2.27
113,446
712
2.52
77,050
404
2.10
Tax-exempt
25,105
159
2.54
22,199
144
2.60
18,948
119
2.52
Interest-bearing balances with banks
21,654
47
0.87
20,766
37
0.71
17,135
18
0.42
Total interest-earning assets
1,028,360
10,719
4.18
988,779
10,378
4.21
842,984
9,187
4.37
Cash and due from banks
7,647
7,222
5,432
Intangible assets
3,258
3,179
3,199
Other assets
54,123
52,121
45,532
Allowance for loan losses
(6,784
)
(6,308
)
(5,566
)
Total assets
$
1,086,604
$
1,044,993
$
891,581
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand
$
247,052
$
393
0.64
%
$
239,844
$
380
0.64
%
$
222,130
$
353
0.64
%
Savings deposits
52,728
88
0.67
53,144
88
0.66
53,364
90
0.68
Time deposits
439,898
1,282
1.17
383,838
1,047
1.09
341,948
856
1.00
Total interest-bearing deposits
739,678
1,763
0.96
676,826
1,515
0.90
617,442
1,299
0.84
Short-term borrowings
103,274
229
0.89
132,839
243
0.73
36,977
16
0.17
Long-term debt
23,434
69
1.18
26,667
73
1.10
40,078
92
0.92
Total interest-bearing liabilities
866,386
2,061
0.95
836,332
1,831
0.88
694,497
1,407
0.81
Noninterest-bearing deposits
95,537
87,319
81,709
Other liabilities
12,646
10,469
8,792
Stockholders’ equity
112,035
110,873
106,583
Total liability and stockholders’ equity
$
1,086,604
$
1,044,993
$
891,581
Net interest income/net interest margin
$
8,658
3.38
%
$
8,547
3.47
%
$
7,780
3.70
%
INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
For the six months ended
June 30 2016
June 30, 2015
Average Balance
Interest Income/ Expense
Yield/ Rate
Average Balance
Interest Income/ Expense
Yield/ Rate
Assets
Interest-earning assets:
Loans
$
842,420
$
19,266
4.59
%
$
722,136
$
16,944
4.73
%
Securities:
Taxable
121,286
1,444
2.39
72,812
770
2.13
Tax-exempt
23,652
303
2.57
18,963
238
2.53
Interest-bearing balances with banks
21,210
84
0.79
17,580
35
0.40
Total interest-earning assets
1,008,568
21,097
4.20
831,491
17,987
4.36
Cash and due from banks
7,435
5,560
Intangible assets
3,219
3,204
Other assets
53,123
45,396
Allowance for loan losses
(6,546
)
(5,295
)
Total assets
$
1,065,799
$
880,356
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand
$
243,448
$
773
0.64
%
$
213,477
$
663
0.63
%
Savings deposits
52,936
177
0.67
54,540
184
0.68
Time deposits
411,868
2,328
1.13
333,143
1,644
1.00
Total interest-bearing deposits
708,252
3,278
0.93
601,160
2,491
0.84
Short-term borrowings
118,056
473
0.80
45,145
40
0.18
Long-term debt
25,050
141
1.13
40,929
177
0.87
Total interest-bearing liabilities
851,358
3,892
0.92
687,234
2,708
0.79
Noninterest-bearing deposits
91,428
79,480
Other liabilities
11,559
7,888
Stockholders' equity
111,454
105,754
Total liability and stockholders’ equity
$
1,065,799
$
880,356
Net interest income/net interest margin
$
17,205
3.42
%
$
15,279
3.71
%
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
June 30, 2016
March 31, 2016
June 30, 2015
Tangible common equity
Total stockholder's equity
$
112,763
$
111,487
$
106,873
Adjustments:
Goodwill
2,684
2,684
2,684
Core deposit intangible
470
480
511
Trademark intangible
100
100
Tangible common equity
$
109,509
$
108,223
$
103,678
Tangible assets
Total assets
$
1,126,930
$
1,073,529
$
921,855
Adjustments:
Goodwill
2,684
2,684
2,684
Core deposit intangible
470
480
511
Trademark intangible
100
100
-
Tangible assets
$
1,123,676
$
1,070,265
$
918,660
Common shares outstanding
7,214,734
7,296,429
7,293,209
Tangible equity to tangible assets
9.75
%
10.11
%
11.29
%
Book value per common share
$
15.63
$
15.28
$
14.65
Tangible book value per common share
15.18
14.83
14.22
For further information contact:
Investar Holding Corporation
Chris Hufft
Chief Financial Officer
(225) 227-2215
Chris.Hufft@investarbank.com