×

Investar Holding Corporation Announces 2014 Third Quarter Results

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

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

Performance Highlights

  • Increase in net income of $0.7 million, or 114%, compared to the third quarter of 2013.
  • Total assets have grown to $784.6 million at September 30, 2014, an increase of $149.7 million, or 23.6%, from December 31, 2013.
  • Gross loans increased $125.6 million, or 24.7%, to $634.7 million at September 30, 2014 from $509.1 million at December 31, 2013. There was significant loan growth across all loan products with the exception of construction and land development.
  • Commercial and industrial loans increased $11.6 million, or 35.6% from December 31, 2014.
  • Nonperforming loans delinquency improved to 0.25% of total loans for the third quarter of 2014 compared to 0.46% for the third quarter of 2013.
  • Return on average assets increased to 0.75% for the third quarter of 2014 compared to 0.49% for the third quarter of 2013.
  • Efficiency ratio improved to 70.47% for the third quarter of 2014 compared to 82.54% for the third quarter of 2013.
  • On August 1, 2014, the Company opened its eleventh branch on Highland Road in Baton Rouge, Louisiana.
  • The Company completed an initial public offering of 3,285,300 shares of its common stock during the quarter, generating proceeds of $43.0 million before expenses to support future growth.

Loans

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

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

Percentage Percentage Increase/(Decrease)
September 30, 2014 of Portfolio December 31, 2013 of Portfolio Amount Percent
Mortgage loans on real estate
Construction and land development $ 62,342 10.7% $ 63,170 12.5% $ (828) (1.3)%
1-4 Family 131,953 22.7 104,685 20.8 27,268 26.0
Multifamily 16,665 2.9 14,286 2.8 2,379 16.7
Farmland 2,249 0.4 830 0.2 1,419 171.0
Nonfarm, nonresidential 208,868 35.9 157,363 31.2 51,505 32.7
Commercial and industrial 44,299 7.6 32,665 6.5 11,634 35.6
Consumer 115,065 19.8 131,096 26.0 (16,031) (12.2)
Total loans 581,441 100% 504,095 100% 77,346 15.3%
Loans held for sale 53,306 5,029 48,277 960.0
Total gross loans $ 634,747 $ 509,124 $ 125,623 24.7%

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

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

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

Deposits

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

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

Percentage Percentage Increase/(Decrease)
September 30, 2014 of Portfolio December 31, 2013 of Portfolio Amount Percent
Noninterest bearing demand deposits $ 72,619 11.7% $ 72,795 13.7% $ (176) (0.24)%
NOW accounts 108,659 17.5 77,190 14.5 31,469 40.8
Money market deposit accounts 77,801 12.5 67,006 12.6 10,795 16.1
Savings accounts 53,477 8.6 52,177 9.8 1,300 2.5
Time deposits 309,056 49.7 263,438 49.4 45,618 17.3
Total deposits $ 621,612 100% $ 532,606 100% $ 89,006 16.7%

Net Interest Income

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

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

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

Noninterest Income

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

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

Noninterest Expense

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

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

Earnings Per Share and Diluted Earnings Per Share

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

Taxes

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

About Investar Holding Corporation

Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, a state chartered bank. The Company's primary market is South Louisiana and currently operates 11 full service banking offices located throughout its market and had 175 full-time employees at September 30, 2014.

Non-GAAP Financial Measures

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

Forward-Looking Statements

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

INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
September 30, 2014 December 31, 2013
(Unaudited)
ASSETS
Cash and due from banks $ 6,448 $ 5,964
Interest bearing balances due from other banks 12,279 21,739
Federal funds sold 500 500
Cash and cash equivalents 19,227 28,203
Available for sale securities at fair value (amortized cost of $77,765 and $56,733, respectively) 77,839 56,173
Held to maturity securities at amortized cost (estimated fair value of $14,661 and $5,986, respectively) 14,973 6,579
Loans held for sale 53,306 5,029
Loans, net of allowance for loan losses of $4,328 and $3,380, respectively 577,113 500,715
Other equity securities 3,184 2,020
Bank premises and equipment, net of accumulated depreciation of $4,403 and $2,679, respectively 27,850 24,680
Real estate owned, net 2,966 3,515
Accrued interest receivable 1,977 1,835
Prepaid FDIC/OFI assessment 134
Deferred tax asset 1,117 1,205
Goodwill 2,684 2,684
Other assets 2,227 2,308
Total assets $ 784,597 $ 634,946
LIABILITIES
Deposits:
Noninterest bearing $ 72,619 $ 72,795
Interest bearing 548,993 459,811
Total deposits 621,612 532,606
Advances from Federal Home Loan Bank 38,426 30,818
Repurchase agreements 12,051 10,203
Note payable 3,609 3,609
Accrued interest payable 282 285
Accrued taxes and other liabilities 6,452 1,942
Total liabilities 682,432 579,463
STOCKHOLDERS' EQUITY
Common stock, $1.00 par value per share; 40,000,000 shares authorized; 7,253,774 and 3,945,114 shares issued and outstanding, respectively 7,255 3,943
Treasury stock (22)
Surplus 85,017 45,281
Retained earnings 9,852 6,609
Accumulated other comprehensive income (loss) 63 (350)
Total stockholders' equity 102,165 55,483
Total liabilities and stockholders' equity $ 784,597 $ 634,946
INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
2014 2013 2014 2013
INTEREST INCOME
Interest and fees on loans $ 7,801 $ 6,014 $ 21,595 $ 15,331
Interest on investment securities:
Taxable interest income 244 106 623 247
Exempt from federal income taxes 123 100 294 267
Other interest income 14 11 34 22
Total interest income 8,182 6,231 22,546 15,867
INTEREST EXPENSE
Interest on deposits 1,084 862 3,137 2,284
Interest on borrowings 98 70 292 174
Total interest expense 1,182 932 3,429 2,458
Net interest income 7,000 5,299 19,117 13,409
Provision for loan losses 505 108 1,198 340
Net interest income after provision for loan losses 6,495 5,191 17,919 13,069
NONINTEREST INCOME
Service charges on deposit accounts 85 67 221 153
Gain on sale of investment securities, net 63 35 228 344
Gain on sale of real estate owned, net 245 6 238 97
Gain on sale of loans, net 713 86 1,433 138
Gain on sale of fixed assets, net 3 2 3 2
Bargain purchase gain 906
Fee income on mortgage loans held for sale, net 518 593 1,618 2,325
Other operating income 332 234 794 420
Total noninterest income 1,959 1,023 4,535 4,385
Income before noninterest expense 8,454 6,214 22,454 17,454
NONINTEREST EXPENSE
Salaries and employee benefits 3,773 3,268 10,735 8,379
Occupancy expense and equipment expense, net 628 570 1,790 1,380
Bank shares tax 83 68 243 169
FDIC and OFI assessments 131 101 364 245
Legal fees 41 14 89 106
Data processing 354 239 940 641
Advertising 94 83 241 231
Stationery and supplies 39 59 131 160
Software amortization and expense 153 118 381 280
Professional fees 135 33 345 199
Telephone expense 43 43 135 102
Business entertainment 38 22 103 55
Other operating expenses 801 600 1,932 1,459
Total noninterest expense 6,313 5,218 17,429 13,406
Income before income tax expense 2,141 996 5,025 4,048
Income tax expense 699 322 1,637 1,058
Net income $ 1,442 $ 674 $ 3,388 $ 2,990
EARNINGS PER SHARE
Basic earnings per share $ 0.20 $ 0.17 $ 0.68 $ 0.84
Diluted earnings per share $ 0.20 $ 0.16 $ 0.65 $ 0.78
Cash dividends declared per common share $ 0.01 $ 0.01 $ 0.03 $ 0.04
INVESTAR HOLDING CORPORATION
EARNINGS PER COMMON SHARE
(Amounts in thousands, except share data)
(Unaudited)
Three months ended
September 30,
Nine months ended
September 30,
2014 2013 2014 2013
Net income available to common shareholders $ 1,442 $ 674 $ 3,388 $ 2,990
Weighted average number of common shares outstanding – used in computation of basic earnings per common share 7,064,806 3,887,942 4,967,393 3,567,294
Effect of dilutive securities:
Restricted stock 35,251 42,940 45,649 26,998
Stock options 22,811 30,310 22,811 30,310
Stock warrants 189,601 193,498 192,184 193,546
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share 7,312,469 4,154,690 5,228,037 3,818,148
Basic earnings per share $ 0.20 $ 0.17 $ 0.68 $ 0.84
Diluted earnings per share $ 0.20 $ 0.16 $ 0.65 $ 0.78
INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)
Nine months ended
September 30,
Q3 2014 Q2 2014 Q3 2013 Qtr/Qtr Year/Year 2014 2013
EARNINGS DATA
Total interest income $ 8,182 $ 7,407 $ 6,231 10.46% 31.31% $ 22,546 $ 15,867
Total interest expense 1,182 1,158 932 2.07% 26.82% 3,429 2,458
Net interest income 7,000 6,249 5,299 12.02% 32.10% 19,117 13,409
Provision for loan losses 505 448 108 12.72% 367.59% 1,198 340
Total noninterest income 1,959 1,509 1,023 29.82% 91.50% 4,535 4,385
Total noninterest expense 6,313 5,729 5,218 10.19% 20.99% 17,429 13,406
Income before income taxes 2,141 1,581 996 35.42% 114.96% 5,025 4,048
Income tax expense 699 514 322 35.99% 117.08% 1,637 1,058
Net income $ 1,442 $ 1,067 $ 674 35.15% 113.95% $ 3,388 $ 2,990
AVERAGE BALANCE SHEET DATA
Total assets 762,330 697,708 543,951 9.26% 40.15% 704,178 466,693
Total interest-earning assets 719,985 650,811 506,559 10.63% 42.13% 663,164 435,770
Total loans 619,356 575,978 440,960 7.53% 40.46% 576,280 379,769
Total interest-bearing deposits 523,075 500,725 398,402 4.46% 31.29% 502,570 340,946
Total interest-bearing liabilities 585,015 572,084 432,541 2.26% 35.25% 563,459 369,266
Total deposits 594,519 565,219 451,676 5.18% 31.63% 567,650 385,428
Total shareholders' equity 100,068 57,458 55,004 74.16% 81.93% 71,482 50,036
PER SHARE DATA
Basic earnings per share 0.20 0.27 0.17 -25.93% 17.65% 0.68 0.84
Diluted earnings per share 0.20 0.26 0.16 -23.08% 25.00% 0.65 0.78
Book value per share 14.08 14.68 14.07 -4.09% 0.07% 14.08 14.07
Tangible book value per share (1) 13.64 13.86 13.25 -1.59% 2.94% 13.64 13.25
Common shares outstanding 7,253,774 3,945,753 3,943,458 83.84% 83.94% 7,253,774 3,943,458
PERFORMANCE RATIOS
Return on average assets 0.75% 0.61% 0.49% 22.95% 53.06% 0.64% 0.86%
Adjusted return on average assets (1) 0.75% 0.61% 0.49% 23.03% 51.77% 0.64% 0.66%
Return on average equity 5.72% 7.45% 4.86% -23.22% 17.70% 6.34% 7.99%
Adjusted return on average equity (1) 5.72% 7.45% 4.89% -23.26% 16.91% 6.34% 6.14%
Net interest margin 3.86% 3.85% 4.15% 0.26% -6.99% 3.85% 4.11%
Net interest income to average assets 3.64% 4.26% 3.86% -14.55% -5.70% 3.63% 3.84%
Noninterest expense to average assets 3.29% 3.29% 3.81% 0.00% -13.65% 3.31% 3.84%
Efficiency ratio (1) 70.47% 73.86% 82.54% -4.60% -14.63% 73.69% 75.34%
Adjusted efficiency ratio (1) 70.47% 73.86% 82.44% -4.60% -14.53% 73.69% 77.88%
Dividend payout ratio 3.40% 4.56% 7.06% -25.44% -51.84% 4.60% 4.25%
September 30, 2014 September 30, 2013 Year/Year
ASSET QUALITY RATIOS
Nonperforming assets to total assets 0.56% 0.90% -37.78%
Nonperforming loans to loans 0.25% 0.46% -45.65%
Allowance for loan losses to total loans 0.74% 0.63% 17.46%
Allowance for loan losses to nonperforming loans 296.01% 138.30% 114.03%
Net chargeoffs to average loans 0.04% 0.06% -33.33%
CAPITAL RATIOS
Investar Holding Corporation:
Total equity to total assets 13.03% 9.84% 32.40%
Tangible equity to tangible assets 12.66% 9.32% 35.84%
Tier 1 capital to average assets 13.52% 9.56% 41.42%
Tier 1 capital to risk-weighted assets 15.76% 11.12% 41.73%
Total capital to risk-weighted assets 16.42% 11.73% 39.98%
Investar Bank:
Tier 1 capital to average assets 9.04% 9.56% -5.44%
Tier 1 capital to risk-weighted assets 10.53% 11.12% -5.31%
Total capital to risk-weighted assets 11.20% 11.73% -4.52%
(1) Non-GAAP financial measures. See reconciliation.
INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
Three months ended September 30,
2014 2013

Average
Balance
Interest
Income/
Expense


Yield/ Rate

Average
Balance
Interest
Income/
Expense


Yield/ Rate
Assets
Interest-earning assets:
Loans $ 619,356 $ 7,801 5.00% $ 440,960 $ 6,014 5.41%
Securities:
Taxable 66,713 244 1.45 43,538 106 0.97
Tax-exempt 19,353 123 2.52 16,182 100 2.45
Interest-bearing balances with banks 14,563 14 0.38 5,879 11 0.74
Total interest-earning assets 719,985 8,182 4.51 506,559 6,231 4.88
Cash and due from banks 6,093 5,875
Intangible assets 3,230 3,271
Other assets 37,057 31,009
Allowance for loan losses (4,035) (2,763)
Total assets $ 762,330 $ 543,951
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand $ 179,226 $ 279 0.62% $ 120,969 $ 192 0.63%
Savings deposits 52,973 91 0.68 48,074 85 0.70
Time deposits 290,876 714 0.97 229,359 585 1.01
Total interest-bearing deposits 523,075 1,084 0.82 398,402 862 0.86
Short-term borrowings 23,137 12 0.21 9,666 4 0.16
Long-term debt 38,803 86 0.88 24,473 66 1.07
Total interest-bearing liabilities 585,015 1,182 0.80 432,541 932 0.85
Noninterest-bearing deposits 71,444 53,274
Other liabilities 5,803 3,132
Stockholders' equity 100,068 55,004
Total liability and stockholders' equity $ 762,330 $ 543,951
Net interest income/net interest margin $ 7,000 3.86% $ 5,299 4.15%
INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
Nine months ended September 30,
2014 2013

Average
Balance
Interest
Income/
Expense


Yield/ Rate

Average
Balance
Interest
Income/
Expense


Yield/ Rate
Assets
Interest-earning assets:
Loans $ 576,280 $ 21,595 5.01% $ 379,769 $ 15,331 5.40%
Securities:
Taxable 58,779 623 1.42 37,354 247 0.88
Tax-exempt 16,272 294 2.42 14,636 267 2.44
Interest-bearing balances with banks 11,833 34 0.38 4,011 22 0.73
Total interest-earning assets 663,164 22,546 4.55 435,770 15,867 4.87
Cash and due from banks 5,790 4,698
Intangible assets 3,240 3,078
Other assets 35,667 25,865
Allowance for loan losses (3,683) (2,718)
Total assets $ 704,178 $ 466,693
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand $ 168,309 $ 783 0.62% $ 105,214 $ 510 0.65%
Savings deposits 52,439 269 0.69 39,966 208 0.70
Time deposits 281,822 2,085 0.99 195,766 1,566 1.07
Total interest-bearing deposits 502,570 3,137 0.83 340,946 2,284 0.90
Short-term borrowings 23,810 36 0.20 6,790 9 0.18
Long-term debt 37,079 256 0.92 21,530 165 1.02
Total interest-bearing liabilities 563,459 3,429 0.81 369,266 2,458 0.89
Noninterest-bearing deposits 65,080 44,482
Other liabilities 4,157 2,909
Stockholders' equity 71,482 50,036
Total liability and stockholders' equity $ 704,178 $ 466,693
Net interest income/net interest margin $ 19,117 3.85% $ 13,409 4.11%
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
(Amounts in thousands, except share data) 2014
2013
2014
2013
Net interest income (a) $ 7,000 $ 5,299 $ 19,117 $ 13,409
Provision for loan losses (b) 505 108 1,198 340
Net interest income after provision for loan losses 6,495 5,191 17,919 13,069
Noninterest income (c) 1,959 1,023 4,535 4,385
Bargain purchase gain (906)
Adjusted noninterest income 1,959 1,023 4,535 3,479
Adjusted income before noninterest expense (d) 8,454 6,214 22,454 16,548
Total noninterest expense (e) 6,313 5,218 17,429 13,406
Acquisition related expense (6) (254)
Adjusted noninterest expense (f) 6,313 5,212 17,429 13,152
Adjusted income before income tax expense 2,141 1,002 5,025 3,396
Adjusted income tax expense (1) 699 324 1,637 1,098
Adjusted net income 1,442 678 3,388 2,298
Diluted earnings per share (GAAP) $ 0.20 $ 0.16 $ 0.65 $ 0.78
Bargain purchase gain (0.24)
Acquisition related expense 0.05
Adjusted diluted earnings per share $ 0.20 $ 0.16 $ 0.65 $ 0.59
Efficiency ratio (e) / (a+c) 70.47% 82.54% 73.69% 75.34%
Adjusted efficiency ratio(2) (f) / (b+d) 70.47% 82.44% 73.69% 77.88%
Adjusted return on assets (2) 0.75% 0.49% 0.64% 0.66%
Adjusted return on equity (2) 5.72% 4.89% 6.34% 6.14%
Total average assets $ 762,330 $ 543,951 $ 704,178 $ 466,693
Total average stockholders' equity $ 100,068 $ 55,004 $ 71,482 $ 50,036
(1) Income tax expense is calculated on the adjusted non-GAAP effective tax rate of 32.34% for the three and nine month periods ended September 30, 2013.
(2) Adjusted for the impact of the bargain purchase gain and acquisition expenses incurred during the three and nine month periods ended September 30, 2013.
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(Unaudited)
September 30, December 31,
2014 2013 2013
Tangible common equity
Total stockholder's equity $ 102,165 $ 55,504 $ 55,483
Adjustments:
Goodwill 2,684 2,684 2,684
Core deposit intangible 542 583 573
Tangible common equity $ 98,939 $ 52,237 $ 52,226
Tangible assets
Total assets $ 784,597 $ 563,818 $ 634,946
Adjustments:
Goodwill 2,684 2,684 2,684
Core deposit intangible 542 583 573
Tangible assets $ 781,371 $ 560,551 $ 631,689
Common shares outstanding 7,253,774 3,943,458 3,945,114
Tangible equity to tangible assets 12.66% 9.32% 8.27%
Book value per common share $ 14.08 $ 14.07 $ 14.06
Tangible book value per common share $ 13.64 $ 13.25 $ 13.24

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.comSource:Investar Holding Company