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Investar Holding Corporation Announces 2015 Second Quarter Results

BATON ROUGE, La., July 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 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.

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%

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