Investar Holding Corporation Announces 2015 First Quarter Results

BATON ROUGE, La., April 28, 2015 (GLOBE NEWSWIRE) -- Investar Holding Corporation (Nasdaq:ISTR) (the "Company"), the holding company for Investar Bank, today announced financial results for the quarter ended March 31, 2015. For the quarter ended March 31, 2015, the Company reported net income of $2.0 million, or $0.27 per diluted share, compared to $0.9 million, or $0.21 per diluted share for the quarter ended March 31, 2014. This represents an increase of $1.1 million, or 122%, in net income. For the quarter ended March 31, 2015, net income and diluted earnings per share increased $0.5 million, or 31.5%, and $0.07, respectively, when compared to the quarter ended December 31, 2014, after adjusting for the net effect of an investment in a tax credit entity.

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

"We continue to grow into our staffing and facility infrastructure, allowing us to realize significant improvement in both return on assets and efficiency ratios. Noninterest expenses remained relatively flat compared to the latter half of 2014 with the exception of seasonal increases in benefit costs. We continued to make significant progress in the first quarter of 2015, growing both our commercial and industrial loan portfolio and noninterest bearing deposits. We believe growth in these areas increases the value of our franchise and will remain a primary focus."

Performance Highlights

  • Increase in net income of $1.1 million, or 122%, compared to the first quarter of 2014.
  • Total noninterest bearing deposits were $84.4 million at March 31, 2015, an increase of $14.2 million, or 20%, when compared to December 31, 2014.
  • Commercial and industrial loans increased $4.6 million, or 9%, from December 31, 2014.
  • Return on average assets increased to 0.91% for the first quarter of 2015 compared to 0.55% for the first quarter of 2014.
  • Allowance for loan losses to total loans increased to 0.83% compared to 0.74% at December 31, 2014.
  • Efficiency ratio improved to 63.99% compared to 70.38% for the quarter ended December 31, 2014, after adjusting for the impairment on the investment in a tax credit entity.
  • Noninterest expense for the first quarter of 2015 was $6.4 million, an increase of only $0.1 million when compared to $6.3 million for the fourth quarter of 2014, after adjusting for the impairment on the investment in a tax credit entity.
  • Nonperforming loans to total loans improved to 0.47% at March 31, 2015 when compared to 0.54% at December 31, 2014.

Loans

Total loans were $646.4 million at March 31, 2015, an increase of $23.6 million, or 3.8%, 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)
March 31, 2015 of Portfolio December 31, 2014 of Portfolio Amount Percent
Mortgage loans on real estate
Construction and development $ 73,971 11.5% $ 71,350 11.4% $ 2,621 3.7%
1-4 Family 139,787 21.6 137,519 22.1 2,268 1.6
Multifamily 19,219 3.0 17,458 2.8 1,761 10.1
Farmland 3,270 0.5 2,919 0.5 351 12.0
Commercial real estate
Owner occupied 124,208 19.2 119,668 19.2 4,540 3.8
Nonowner occupied 113,400 17.5 105,390 16.9 8,010 7.6
Commercial and industrial 58,803 9.1 54,187 8.7 4,616 8.5
Consumer 113,781 17.6 114,299 18.4 (518) (0.5)
Total loans 646,439 100% 622,790 100% 23,649 3.8%
Loans held for sale 64,313 103,396 (39,083) (37.8)
Total gross loans $ 710,752 $ 726,186 $ (15,434) (2.1)%

Consumer loans, including consumer loans held for sale, totaled $175.8 million at March 31, 2015, a decrease of $38.2 million, or 17.9% from $214.0 million at December 31, 2014. The decrease is mainly attributable to the $37.7 million decrease in the balance of consumer loans held for sale at March 31, 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 March 31, 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 $183.0 million, an increase of $9.1 million, or 5.3%, 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 March 31, 2015, none of these loans were past due. 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 $0.7 million for the first quarter of 2015, an increase of $0.5 million compared to the first quarter of 2014. The allowance for loan losses was $5.4 million, or 178.42% and 0.83% of nonperforming loans and total loans, respectively, at March 31, 2015, compared to $4.6 million, or 138.61% and 0.74% of nonperforming loans and total loans, respectively, at December 31, 2014.

Deposits

Total deposits at March 31, 2015 were $698.9 million, an increase of $70.8 million, or 11.3%, from December 31, 2014. The increase in total deposits was driven primarily by an increase of $14.2 million, or 20.2%, in noninterest bearing demand deposits, an increase in NOW accounts of $28.5 million, or 24.5%, and an increase in time deposits of $19.4 million, or 6.3%, 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)
March 31, 2015 of Portfolio December 31, 2014 of Portfolio Amount Percent
Noninterest-bearing demand deposits $ 84,402 12.1% $ 70,217 11.2% $ 14,185 20.2%
NOW accounts 145,181 20.7 116,644 18.6 28,537 24.5
Money market deposit accounts 85,024 12.2 77,589 12.3 7,435 9.6
Savings accounts 54,533 7.8 53,332 8.5 1,201 2.3
Time deposits 329,752 47.2 310,336 49.4 19,416 6.3
Total deposits $ 698,892 100% $ 628,118 100% $ 70,774 11.3%

Net Interest Income

Net interest income for the first quarter of 2015 totaled $7.5 million, an increase of $1.6 million, or 27.8%, from the first 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 $2.1 million due to an increase in volume offset by a $0.5 million decrease related to a reduction in yield when compared to the first quarter of 2014.

The Company's net interest margin was 3.71% for the quarter ended March 31, 2015 compared to 3.84% for the fourth quarter of 2014 and 3.93% for the first quarter of 2014. The Company now sells, and plans to continue to sell, the majority of the consumer loans that it originates. Consumer loan fees previously recognized as a component of interest income are now included in noninterest income, impacting the yield realized on the consumer loan portfolio. The yield on interest earning assets was 4.35% for the quarter ended March 31, 2015 compared to 4.47% for the fourth quarter of 2014 and 4.65% for the first quarter of 2014. Including consumer loan fees in interest income in the current quarter would result in a net interest margin and yield on interest earning assets of 3.82% and 4.46%, respectively, which is comparable to the net interest margin and yield on interest earning assets of 3.84% and 4.47%, respectively, recognized in the fourth quarter of 2014. The cost of deposits increased two basis points when comparing the first quarter of 2015 to the fourth quarter of 2014 and declined one basis point when comparing the first quarter of 2015 to the first quarter of 2014.

Noninterest Income

Noninterest income for the first quarter of 2015 totaled $2.5 million, an increase of $1.5 million, or 138.3%, compared to the first quarter of 2014. The increase resulted primarily from the $1.1 million increase in the gain on sale of loans. For the first quarter of 2015, $1.2 million and $0.5 million was recognized as gain on sales of our consumer and mortgage loans, respectively. Fee income on loans held for sale increased $0.2 million primarily as a result of the change in strategy for our consumer loan portfolio, discussed above. Prior to this shift in strategy, consumer loan fees were included in interest income.

Noninterest Expense

Noninterest expense for the first quarter of 2015 totaled $6.4 million, an increase of $1.0 million, or 19.3%, compared to the first quarter of 2014. The increase in noninterest expense is primarily due to the $0.4 million increase in salaries and employee benefits and the $0.3 million increase in other operating expenses, both of which are primarily attributable to the opening of the Highland Road branch in Baton Rouge, Louisiana on August 1, 2014 and the addition of 10 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 $0.27 for the three months ended March 31, 2015, an increase of $0.04 and $0.06, respectively, when compared to basic and diluted earnings per share for the three months ended March 31, 2014.

Taxes

The Company recorded income tax expense of $1.0 million for the quarter ended March 31, 2015, which equates to an effective tax rate of 33.1%.

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 March 31, 2015, the Company had 177 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.

INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
March 31, 2015 December 31, 2014
(Unaudited)
ASSETS
Cash and due from banks $ 6,879 $ 5,519
Interest-bearing balances due from other banks 13,617 13,493
Federal funds sold 170 500
Cash and cash equivalents 20,666 19,512
Available for sale securities at fair value (amortized cost of $75,736 and $69,838, respectively) 76,617 70,299
Held to maturity securities at amortized cost (estimated fair value of $22,321 and $22,301, respectively) 22,369 22,519
Loans held for sale 64,313 103,396
Loans, net of allowance for loan losses of $5,379 and $4,630, respectively 641,060 618,160
Other equity securities 1,839 5,566
Bank premises and equipment, net of accumulated depreciation of $4,310 and $3,964, respectively 29,136 28,538
Other real estate owned, net 2,568 2,735
Accrued interest receivable 2,316 2,435
Deferred tax asset 2,260 2,906
Goodwill and other intangible assets 3,206 3,216
Other assets 1,730 1,882
Total assets $ 868,080 $ 881,164
LIABILITIES
Deposits
Noninterest-bearing $ 84,402 $ 70,217
Interest-bearing 614,490 557,901
Total deposits 698,892 628,118
Advances from Federal Home Loan Bank 34,865 125,785
Repurchase agreements 12,878 12,293
Note payable 3,609 3,609
Deferred tax liability 1,826 1,810
Accrued taxes and other liabilities 10,623 6,165
Total liabilities 762,693 777,780
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; 7,268,488 and 7,262,085 shares issued and outstanding, respectively 7,271 7,264
Treasury stock (25) (23)
Surplus 84,283 84,213
Retained earnings 13,705 11,809
Accumulated other comprehensive income 153 121
Total stockholders' equity 105,387 103,384
Total liabilities and stockholders' equity $ 868,080 $ 881,164

INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data)
(Unaudited)
Three months ended
March 31,
2015 2014
INTEREST INCOME
Interest and fees on loans $ 8,298 $ 6,675
Interest on investment securities 485 272
Other interest income 17 10
Total interest income 8,800 6,957
INTEREST EXPENSE
Interest on deposits 1,192 1,003
Interest on borrowings 109 87
Total interest expense 1,301 1,090
Net interest income 7,499 5,867
Provision for loan losses 700 245
Net interest income after provision for loan losses 6,799 5,622
NONINTEREST INCOME
Service charges on deposit accounts 94 63
Gain on sale of investment securities, net 116
Loss on sale of real estate owned, net (1) (3)
Gain on sale of loans, net 1,731 624
Fee income on loans held for sale, net 300 76
Other operating income 416 190
Total noninterest income 2,540 1,066
Income before noninterest expense 9,339 6,688
NONINTEREST EXPENSE
Depreciation and amortization 357 303
Salaries and employee benefits 3,908 3,471
Occupancy 213 224
Data processing 340 278
Marketing 58 76
Professional fees 262 59
Other operating expenses 1,286 974
Total noninterest expense 6,424 5,385
Income before income tax expense 2,915 1,303
Income tax expense 965 424
Net income $ 1,950 $ 879
EARNINGS PER SHARE
Basic earnings per share $ 0.27 $ 0.23
Diluted earnings per share $ 0.27 $ 0.21
Cash dividends declared per common share $ 0.01 $ 0.01

INVESTAR HOLDING CORPORATION
EARNINGS PER COMMON SHARE
(Amounts in thousands, except share data)
(Unaudited)
Three months ended
March 31,
2015 2014
Net income available to common shareholders $ 1,950 $ 879
Weighted average number of common shares outstanding – used in computation of basic earnings per common share 7,219,235 3,901,064
Effect of dilutive securities:
Restricted stock 12,738 44,049
Stock options 9,961 22,810
Stock warrants 8,921 193,498
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share 7,250,855 4,161,421
Basic earnings per share $ 0.27 $ 0.23
Diluted earnings per share $ 0.27 $ 0.21

INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)
Q1 2015 Q4 2014 Q1 2014 Qtr/Qtr Year/Year
EARNINGS DATA
Total interest income $ 8,800 $ 8,822 $ 6,957 -0.25% 26.49%
Total interest expense 1,301 1,245 1,090 4.50% 19.36%
Net interest income 7,499 7,577 5,867 -1.03% 27.82%
Provision for loan losses 700 430 245 62.79% 185.71%
Total noninterest income 2,540 1,325 1,066 91.70% 138.27%
Total noninterest expense 6,424 6,955 5,385 -7.63% 19.29%
Income before income taxes 2,915 1,517 1,303 92.16% 123.71%
Income tax expense (benefit) 965 (491) 424 -296.54% 127.59%
Net income $ 1,950 $ 2,008 $ 879 -2.89% 121.84%
AVERAGE BALANCE SHEET DATA
Total assets $ 869,008 $ 826,369 $ 651,277 5.16% 33.43%
Total interest-earning assets 819,876 782,868 606,160 4.73% 35.26%
Total loans 714,338 675,305 532,547 5.78% 34.14%
Total interest-bearing deposits 584,697 553,603 483,474 5.62% 20.94%
Total interest-bearing liabilities 679,891 641,611 532,705 5.97% 27.63%
Total deposits 661,923 628,837 542,640 5.26% 21.98%
Total shareholders' equity 104,916 102,781 56,441 2.08% 85.89%
PER SHARE DATA
Basic earnings per share $ 0.27 $ 0.28 $ 0.23 -3.57% 17.39%
Diluted earnings per share 0.27 0.27 0.21 0.00% 28.57%
Book value per share 14.50 14.24 14.32 1.83% 1.26%
Tangible book value per share (1) 14.06 13.79 13.50 1.96% 4.15%
Common shares outstanding 7,268,488 7,262,085 3,945,029 0.09% 84.24%
PERFORMANCE RATIOS
Return on average assets 0.91% 0.96% 0.55% -5.21% 65.45%
Adjusted return on average assets (1) 0.91% 0.71% 0.55% 28.17% 65.45%
Return on average equity 7.54% 7.75% 6.32% -2.71% 19.30%
Adjusted return on average equity (1) 7.54% 5.72% 6.32% 31.82% 19.30%
Net interest margin 3.71% 3.84% 3.93% -3.39% -5.60%
Net interest income to average assets 3.50% 3.64% 3.65% -3.85% -4.11%
Noninterest expense to average assets 3.00% 3.34% 3.31% -10.18% -9.37%
Efficiency ratio (1) 63.99% 78.13% 77.67% -18.10% -17.61%
Adjusted efficiency ratio (1) 63.99% 70.38% 77.67% -9.08% -17.61%
Dividend payout ratio 2.74% 2.51% 4.44% 9.16% -38.29%

Three months ended March 31,
2015 2014 Variance
ASSET QUALITY RATIOS
Nonperforming assets to total assets 0.64% 0.79% -18.99%
Nonperforming loans to loans 0.47% 0.31% 51.61%
Allowance for loan losses to total loans 0.83% 0.67% 23.88%
Allowance for loan losses to nonperforming loans 178.42% 206.14% -13.45%
Net chargeoffs to average loans -0.01% 0.02% -150.00%
CAPITAL RATIOS
Investar Holding Corporation:
Total equity to total assets 12.14% 8.38% 44.87%
Tangible equity to tangible assets 11.81% 7.94% 48.74%
Tier 1 leverage ratio(2) 12.25% 8.80% 39.20%
Common equity tier 1 capital ratio(2) 13.48% NA NA
Tier 1 capital ratio(2) 13.94% 10.21% 36.53%
Total capital ratio(2) 14.65% 10.84% 35.15%
Investar Bank:
Tier 1 leverage ratio(2) 11.80% 8.75% 34.86%
Common equity tier 1 capital ratio(2) 13.43% NA NA
Tier 1 capital ratio(2) 13.43% 10.15% 32.32%
Total capital ratio(2) 14.14% 10.78% 31.17%
(1) Non-GAAP financial measures. See reconciliation.
(2) Beginning January 1, 2015, the capital ratios for the Company and 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.

INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
Three months ended March 31,
2015 2014

Average
Balance
Interest
Income/
Expense


Yield/ Rate

Average
Balance
Interest
Income/
Expense


Yield/ Rate
Assets
Interest-earning assets:
Loans $ 714,338 $ 8,298 4.71% $ 532,547 $ 6,675 5.08%
Securities:
Taxable 68,528 366 2.17 53,607 191 1.44
Tax-exempt 18,979 119 2.54 14,194 81 2.31
Interest-bearing balances with banks 18,031 17 0.38 5,812 10 0.70
Total interest-earning assets 819,876 8,800 4.35 606,160 6,957 4.65
Cash and due from banks 5,689 10,865
Intangible assets 3,209 3,251
Other assets 45,256 34,397
Allowance for loan losses (5,022) (3,396)
Total assets $ 869,008 $ 651,277
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand $ 204,728 $ 310 0.61% $ 158,712 $ 242 0.62%
Savings deposits 55,729 94 0.68 51,927 89 0.70
Time deposits 324,240 788 0.99 272,835 672 1.00
Total interest-bearing deposits 584,697 1,192 0.83 483,474 1,003 0.84
Short-term borrowings 53,404 24 0.18 15,098 4 0.11
Long-term debt 41,790 85 0.82 34,133 83 0.99
Total interest-bearing liabilities 679,891 1,301 0.78 532,705 1,090 0.83
Noninterest-bearing deposits 77,226 59,166
Other liabilities 6,975 2,965
Stockholders' equity 104,916 56,441
Total liability and stockholders' equity $ 869,008 $ 651,277
Net interest income/net interest margin $ 7,499 3.71% $ 5,867 3.93%

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
March 31, December 31,
2015 2014 2014
Tangible common equity
Total stockholder's equity $ 105,387 $ 56,498 $ 103,384
Adjustments:
Goodwill 2,684 2,684 2,684
Core deposit intangible 522 563 532
Tangible common equity $ 102,181 $ 53,251 $ 100,168
Tangible assets
Total assets $ 868,080 $ 673,964 $ 879,354
Adjustments:
Goodwill 2,684 2,684 2,684
Core deposit intangible 522 563 532
Tangible assets $ 864,874 $ 670,717 $ 876,138
Common shares outstanding 7,268,488 3,945,029 7,262,085
Tangible equity to tangible assets 11.81% 7.94% 11.43%
Book value per common share $ 14.50 $ 14.32 $ 14.24
Tangible book value per common share $ 14.06 $ 13.50 $ 13.79

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
Three months ended Three months ended
March 31, December 31,
2015 2014 2014
Net interest income (a) 7,499 $ 5,867 $ 7,577
Provision for loan losses (b) 700 245 430
Net interest income after provision for loan losses 6,799 5,622 7,147
Noninterest income (c) 2,540 1,066 1,325
Adjusted income before noninterest expense (d) 9,339 6,688 8,472
Total noninterest expense (e) 6,424 5,385 6,955
Impairment related to investment in tax credit entity (690)
Adjusted noninterest expense (f) 6,424 5,385 6,265
Adjusted income before income tax expense 2,915 1,303 2,207
Adjusted income tax expense (1) 965 424 724
Adjusted net income 1,950 879 1,483
Diluted earnings per share (GAAP) $ 0.27 $ 0.21 $ 0.27
Impairment related to investment in tax credit entity 0.06
Tax credit related to historical tax credit project (0.13)
Adjusted diluted earnings per share $ 0.27 $ 0.21 $ 0.20
Efficiency ratio (e) / (a+c) 63.99% 77.67% 78.13%
Adjusted efficiency ratio(2) (f) / (b+d) 63.99% 77.67% 70.38%
Adjusted return on average assets (2) 0.91% 0.55% 0.71%
Adjusted return on average equity (2) 7.54% 6.32% 5.72%
Total average assets $ 714,338 $ 651,277 $ 826,369
Total average stockholders' equity $ 104,916 $ 56,441 $ 102,781
(1) Income tax expense is calculated on the adjusted non-GAAP effective tax rate of 32.8% for the three months ended December 31, 2014.
(2) Adjusted for the net effect of the investment in the tax credit entity for the three months ended December 31, 2014.

CONTACT: For further information contact: Investar Holding Corporation Chris Hufft Chief Accounting Officer (225) 227-2215 Chris.Hufft@investarbank.comSource:Investar Holding Company