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Investar Holding Corporation Announces 2016 First Quarter Results

BATON ROUGE, La., April 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 March 31, 2016. The Company reported net income of $2.0 million, or $0.28 per diluted share, compared to $1.5 million, or $0.20 per diluted share for the quarter ended December 31, 2015, and $2.0 million, or $0.27 per diluted share, for the quarter ended March 31, 2015.

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

“We are very pleased with our first quarter results. We were able to maintain consistent loan growth while continuing to focus on credit quality. A significant portion of our loan growth during the quarter can be attributed to the new commercial lenders hired at the end of 2015. These lenders have focused on moving customers with whom they have had long-term relationships, which has not only had an impact on loan growth but has also contributed to our growth in noninterest-bearing deposits. While pleased with the loan growth during the quarter, our focus remains on credit quality, as evidenced by our passing on over $40 million of loan opportunities during the quarter.

The Bank monitors on an ongoing basis the economic environment in which it operates and continues to focus on the current and potential impacts of low oil and gas prices in our markets. Less than one percent of our loan portfolio is directly exposed to the energy sector and we continue to experience a low and improving delinquency rate across our portfolio.

As we look to 2016, we believe our company is solidly positioned to grow the franchise and increase shareholder value as we continue to focus on quality loans and deposits while controlling noninterest expense and maintaining our focus on improving our return on assets and efficiency ratios.”

First Quarter Highlights

  • Total loans, excluding loans held for sale, increased $52.2 million, or 7.0%, compared to December 31, 2015, and increased $151.2 million, or 23.4%, compared to March 31, 2015, to $797.6 million at March 31, 2016.
  • Commercial and industrial loans increased $5.0 million, or 7.2%, compared to December 31, 2015 and increased $16.2 million, or 27.5%, compared to March 31, 2015, to $75.0 million at March 31, 2016.
  • Nonperforming loans to total loans decreased to 0.29% at March 31, 2016 compared to 0.32% at December 31, 2015 and 0.47% at March 31, 2015.
  • Allowance for loan losses to nonperforming loans increased to 279.8% at March 31, 2016 compared to 254.2% at December 31, 2015 and 178.4% at March 31, 2015.
  • Total noninterest-bearing deposits were $95.0 million at March 31, 2016, an increase of $5.0 million, or 5.1%, compared to December 31, 2015, and an increase of $10.6 million, or 12.6%, compared to March 31, 2015.
  • Total interest income increased $0.5 million, or 5.1%, compared to the quarter ended December 31, 2015, and increased $1.6 million, or 17.9%, compared to the quarter ended March 31, 2015, to $10.4 million for the quarter ended March 31, 2016.
  • Repurchased 20,694 shares of the Company’s common stock through our current stock repurchase program at an average price of $15.21.

Loans

Total loans were $797.6 million at March 31, 2016, an increase of $52.2 million, or 7.0 %, compared to December 31, 2015, and an increase of $151.2 million, or 23.4%, compared to March 31, 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
3/31/2016 12/31/2015 3/31/2015 $ % $ % 3/31/2016 12/31/15
Mortgage loans on real estate
Construction and development $95,353 $81,863 $73,971 $13,490 16.5% $21,382 28.9% 12.0% 11.0%
1-4 Family 162,312 156,300 139,787 6,012 3.8 22,525 16.1 20.3 21.0
Multifamily 33,609 29,694 19,219 3,915 13.2 14,390 74.9 4.2 4.0
Farmland 6,366 2,955 3,270 3,411 115.4 3,096 94.7 0.8 0.4
Commercial real estate
Owner-occupied 141,583 137,752 124,208 3,831 2.8 17,375 14.0 17.8 18.5
Nonowner-occupied 174,176 150,831 113,400 23,345 15.5 60,776 53.6 21.8 20.2
Commercial and industrial 74,990 69,961 58,803 5,029 7.2 16,187 27.5 9.4 9.4
Consumer 109,233 116,085 113,781 (6,852) (5.9) (4,548) (4.0) 13.7 15.5
Total loans 797,622 745,441 646,439 52,181 7.0% 151,183 23.4% 100% 100%
Loans held for sale 50,921 80,509 64,313 (29,588) (36.8) (13,392) (20.8)
Total gross loans $848,543 $825,950 $710,752 $22,593 2.7% $137,791 19.4%


Consumer loans, including consumer loans held for sale, totaled $160.0 million at March 31, 2016, a decrease of $36.0 million, or 18.4% from $196.0 million at December 31, 2015. The decrease is mainly attributable to the sale of approximately $22.0 million of consumer loans held for sale during the first quarter of 2016. During the quarter ended December 31, 2015, the Bank announced that it was exiting the indirect auto loan origination business, the source of its consumer loans held for sale. The Bank discontinued accepting indirect auto loan applications on December 31, 2015, but continued to process and fund applications that were accepted on or before that date. As a result, the consumer loans held for sale balance is expected to decrease as the Bank sells the loans currently held for sale. The Bank currently has the intent and ability to sell the balance of the consumer loans classified as held for sale at March 31, 2016, however, if this classification were to change, the loans would be transferred to the consumer loan portfolio.

At March 31, 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 $216.6 million, an increase of $8.9 million, or 4.3%, compared to the business lending portfolio of $207.7 million at December 31, 2015.

The provision for loan loss expense was $0.5 million for the first quarter of 2016, a decrease of $0.2 million compared to the first quarter of 2015. The allowance for loan losses was $6.5 million, or 279.8% and 0.81% of nonperforming loans and total loans, respectively, at March 31, 2016, compared to $6.1 million, or 254.2% and 0.82% of nonperforming loans and total loans, respectively, at December 31, 2015. The allowance for loan losses plus the fair value marks on acquired loans was 0.90% of total loans at March 31, 2016 compared to 0.91% at December 31, 2015. Nonperforming loans to total loans improved to 0.29% at March 31, 2016 compared to 0.32% at December 31, 2015.

As low oil and gas prices continue to make headlines, management continues to monitor the Company’s loan portfolio for exposure to potential negative impacts. We consider our exposure to the energy sector not to be significant, at less than one percent of the total loan portfolio at March 31, 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 March 31, 2016 were $808.7 million, an increase of $71.3 million, or 9.7%, from December 31, 2015. The increase in total deposits was driven by an increase in noninterest-bearing deposits of $4.6 million, or 5.1%, an increase in money market accounts of $8.8 million, or 9.2%, and an increase in time deposits of $61.2 million, or 17.2%, from December 31, 2015.

The Company’s focus on relationship banking, as well as management’s focus on growing the commercial and industrial loan portfolio and bringing in related deposits, 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
3/31/2016 12/31/2015 3/31/2015 $ % $ % 3/31/2016 12/31/2015
Noninterest-bearing demand deposits $95,033 $90,447 $84,402 $4,586 5.1% $10,631 12.6% 11.8% 12.3%
NOW accounts 138,672 140,503 145,181 (1,831) (1.3) (6,509) (4.5) 17.1 19.0
Money market deposit accounts 104,936 96,113 85,024 8,823 9.2 19,912 23.4 13.0 13.0
Savings accounts 52,285 53,735 54,533 (1,450) (2.7) (2,248) (4.1) 6.5 7.3
Time deposits 417,772 356,608 329,752 61,164 17.2 88,020 26.7 51.6 48.4
Total deposits $808,698 $737,406 $698,892 $71,292 9.7% $109,806 15.7% 100% 100%


Net Interest Income

Net interest income for the first quarter of 2016 totaled $8.5 million, an increase of $0.3 million, or 3.9%, compared to the fourth quarter of 2015, and an increase of $1.0 million, or 14.0%, compared to the first 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 $1.4 million due to an increase in volume offset by a $0.4 million decrease related to a reduction in yield compared to the first quarter of 2015.

The Company’s net interest margin was 3.47% for the quarter ended March 31, 2016 compared to 3.53% for the fourth quarter of 2015 and 3.71% for the first quarter of 2015. The yield on interest-earning assets was 4.21% for the quarter ended March 31, 2016 compared to 4.24% for the fourth quarter of 2015 and 4.35% for the first quarter of 2015.

The cost of deposits increased four basis points for the quarter ended March 31, 2016 compared to the fourth quarter of 2015, and increased seven basis points compared to the first quarter of 2015. The increase is primarily a result of increases in time deposit rates.

Noninterest Income

Noninterest income for the first quarter of 2016 totaled $1.3 million, a decrease of $0.3 million, or 18.1%, compared to the fourth quarter of 2015, and a decrease of $1.3 million, or 49.3%, compared to the first quarter of 2015. The decrease in noninterest income is mainly attributable to the $0.2 million and $1.4 million decreases in gain on sale of loans when compared to the quarters ended December 31, 2015 and March 31, 2015, respectively. As discussed in Loans above, during the quarter ended December 31, 2015, the Bank announced that it was exiting the indirect auto loan origination business, the source of its consumer loans held for sale. As a result, 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 March 31, 2016, however, it expects the gain on sale of loans to diminish over time.

Noninterest Expense

Noninterest expense for the first quarter of 2016 totaled $6.4 million, a decrease of $0.9 million, or 11.8%, compared to the fourth quarter of 2015, and a decrease of $40,000, or 0.6%, compared to the first quarter of 2015. The decrease in noninterest expense from the fourth quarter of 2015 is primarily due to the $0.5 million decrease in salaries and employee benefits and the $0.3 million decrease in other operating expenses. These decreases are mainly attributable to the nonrecurring costs related to the exit from the indirect auto loan origination business recorded in the fourth quarter of 2015 which included severance for the indirect auto lending staff affected and other expenses. In addition, the Company realized unfavorable health care claims experience during the fourth quarter of 2015 resulting in additional benefits expense of $0.3 million.

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 March 31, 2016, an increase of $0.01, compared to basic and diluted earnings per share of $0.27 for the three months ended March 31, 2015.

Taxes

The Company recorded income tax expense of $1.0 million for the quarter ended March 31, 2016, which equates to an effective tax rate of 33.6%.

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 it currently operates 11 full service banking offices located throughout its market. At March 31, 2016, the Company had 154 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
3/31/2016 12/31/2015 3/31/2015 Linked
Quarter
Year/Year
EARNINGS DATA
Total interest income $10,378 $9,873 $8,800 5.1% 17.9%
Total interest expense 1,831 1,646 1,301 11.2% 40.7%
Net interest income 8,547 8,227 7,499 3.9% 14.0%
Provision for loan losses 454 365 700 24.4% -35.1%
Total noninterest income 1,287 1,571 2,540 -18.1% -49.3%
Total noninterest expense 6,384 7,234 6,424 -11.8% -0.6%
Income before income taxes 2,996 2,199 2,915 36.2% 2.8%
Income tax expense 1,006 745 965 35.0% 4.2%
Net income $1,990 $1,454 $1,950 36.9% 2.1%
AVERAGE BALANCE SHEET DATA
Total assets $1,044,993 $974,820 $869,008 7.2% 20.3%
Total interest-earning assets 988,779 923,662 819,876 7.0% 20.6%
Total loans 767,761 739,809 630,211 3.8% 21.8%
Total gross loans 832,366 793,831 714,338 4.9% 16.5%
Total interest-bearing deposits 676,826 645,247 584,697 4.9% 15.8%
Total interest-bearing liabilities 836,332 759,068 679,891 10.2% 23.0%
Total deposits 764,145 741,201 661,923 3.1% 15.4%
Total shareholders' equity 110,874 108,998 104,916 1.7% 5.7%
PER SHARE DATA
Earnings:
Basic earnings per share $0.28 $0.20 $0.27 40.0% 3.7%
Diluted earnings per share 0.28 0.20 0.27 40.0% 4.1%
Book value per share 15.28 15.05 14.50 1.5% 5.4%
Tangible book value per share(1) 14.83 14.62 14.06 1.4% 5.5%
Common shares outstanding 7,296,426 7,264,282 7,268,488 0.4% 0.4%
PERFORMANCE RATIOS
Return on average assets 0.76% 0.59% 0.91% 28.8% -16.5%
Return on average equity 7.20% 5.29% 7.54% 36.1% -4.5%
Net interest margin 3.47% 3.53% 3.71% -1.7% -6.5%
Net interest income to average assets 3.28% 3.35% 3.50% -2.1% -6.3%
Noninterest expense to average assets 2.45% 2.94% 3.00% -16.7% -18.3%
Efficiency ratio(2) 64.92% 73.83% 63.99% -12.1% 1.5%
Dividend payout ratio 3.25% 4.26% 2.74% -23.7% 18.6%
Net charge-offs to average loans 0.02% 0.02% -0.01% 0.0% 300.0%
(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
3/31/2016 12/31/2015 3/31/2015 Linked
Quarter
Year/Year
ASSET QUALITY RATIOS
Nonperforming assets to total assets 0.28% 0.30% 0.64% -6.7% -56.3%
Nonperforming loans to total loans 0.29% 0.32% 0.47% -9.4% -38.3%
Allowance for loan losses to total loans 0.81% 0.82% 0.83% -1.2% -2.4%
Allowance for loan losses to nonperforming loans 279.8% 254.2% 178.4% 10.1% 56.8%
CAPITAL RATIOS
Investar Holding Corporation:
Total equity to total assets 10.39% 10.60% 12.17% -2.0% -14.6%
Tangible equity to tangible assets 10.11% 10.32% 11.81% -2.0% -14.4%
Tier 1 leverage ratio 10.78% 11.39% 12.25% -5.4% -12.0%
Common equity tier 1 capital ratio 11.49% 11.67% 13.48% -1.5% -14.8%
Tier 1 capital ratio 11.86% 12.05% 13.94% -1.6% -14.9%
Total capital ratio 12.54% 12.72% 14.65% -1.4% -14.4%
Investar Bank:
Tier 1 leverage ratio 10.52% 11.07% 11.80% -5.0% -10.8%
Common equity tier 1 capital ratio 11.57% 11.71% 13.43% -1.2% -13.8%
Tier 1 capital ratio 11.57% 11.71% 13.43% -1.2% -13.8%
Total capital ratio 12.25% 12.38% 14.14% -1.1% -13.4%


INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)
March 31, 2016 December 31,
2015
March 31, 2015
ASSETS
Cash and due from banks $8,808 $6,313 $6,879
Interest-bearing balances due from other banks 12,465 14,472 13,617
Federal funds sold 51 181 170
Cash and cash equivalents 21,324 20,966 20,666
Available for sale securities at fair value (amortized cost of $127,737, $113,828, and $75,736, respectively) 128,570 113,371 76,617
Held to maturity securities at amortized cost (estimated fair value of $26,348, $26,271, and $22,321, respectively) 26,249 26,408 22,369
Loans held for sale 50,921 80,509 64,313
Loans, net of allowance for loan losses of $6,463, $6,128, and $5,379, respectively 791,159 739,313 641,060
Other equity securities 7,183 5,835 1,839
Bank premises and equipment, net of accumulated depreciation of $5,727, $5,368, and $4,310, respectively 30,759 30,630 29,136
Other real estate owned, net 695 725 2,568
Accrued interest receivable 2,978 2,831 2,316
Deferred tax asset 1,934 1,915 434
Goodwill and other intangible assets 3,265 3,175 3,206
Other assets 8,492 5,877 1,730
Total assets $1,073,529 $1,031,555 $866,254
LIABILITIES
Deposits
Noninterest-bearing $95,033 $90,447 $84,402
Interest-bearing 713,665 646,959 614,490
Total deposits 808,698 737,406 698,892
Advances from Federal Home Loan Bank 103,960 127,497 34,865
Repurchase agreements 29,678 39,099 12,878
Junior subordinated debt 3,609 3,609 3,609
Accrued taxes and other liabilities 16,097 14,594 10,623
Total liabilities 962,042 922,205 760,867
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; 7,358,231, 7,305,213, and 7,270,183 shares issued and 7,296,429, 7,264,282, and 7,268,488 shares outstanding, respectively 7,358 7,305 7,271
Treasury stock (952) (634) (25)
Surplus 84,780 84,692 84,283
Retained earnings 20,575 18,650 13,705
Accumulated other comprehensive (loss) income (274) (663) 153
Total stockholders equity 111,487 109,350 105,387
Total liabilities and stockholders equity $1,073,529 $1,031,555 $866,254


INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data)
(Unaudited)
For the three months ended
March 31,
2016
December 31,
2015
March 31,
2015
INTEREST INCOME
Interest and fees on loans $9,485 $9,220 $8,298
Interest on investment securities 856 631 485
Other interest income 37 22 17
Total interest income 10,378 9,873 8,800
INTEREST EXPENSE
Interest on deposits 1,515 1,401 1,192
Interest on borrowings 316 245 109
Total interest expense 1,831 1,646 1,301
Net interest income 8,547 8,227 7,499
Provision for loan losses 454 365 700
Net interest income after provision for loan losses 8,093 7,862 6,799
NONINTEREST INCOME
Service charges on deposit accounts 97 94 94
Gain on sale of investment securities, net 80 21 -
Gain (loss) on sale of real estate owned, net 1 36 (1)
Gain on sale of loans, net 313 537 1,731
Fee income on loans held for sale, net 123 208 300
Other operating income 673 675 416
Total noninterest income 1,287 1,571 2,540
Income before noninterest expense 9,380 9,433 9,339
NONINTEREST EXPENSE
Depreciation and amortization 370 365 357
Salaries and employee benefits 3,873 4,358 3,908
Occupancy 236 296 213
Data processing 374 409 340
Marketing 112 93 58
Professional fees 279 305 262
Other operating expenses 1,140 1,408 1,286
Total noninterest expense 6,384 7,234 6,424
Income before income tax expense 2,996 2,199 2,915
Income tax expense 1,006 745 965
Net income $1,990 $1,454 $1,950
EARNINGS PER SHARE
Basic earnings per share $0.28 $0.20 $0.27
Diluted earnings per share $0.28 $0.20 $0.27
Cash dividends declared per common share $0.01 $0.01 $0.01


INVESTAR HOLDING CORPORATION
EARNINGS PER COMMON SHARE
(Amounts in thousands, except share data)
(Unaudited)
For the three months ended
March 31, 2016 December 31, 2015 March 31, 2015
Net income available to common shareholders $1,990 $1,454 $1,950
Weighted average number of common shares outstanding used in computation of basic earnings per common share 7,194,558 7,200,526 7,219,235
Effect of dilutive securities:
Restricted stock 15,353 12,564 12,738
Stock options 14,854 21,150 9,961
Stock warrants 11,267 16,952 8,921
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share 7,236,032 7,251,192 7,250,855
Basic earnings per share $0.28 $0.20 $0.27
Diluted earnings per share $0.28 $0.20 $0.27


INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
For the three months ended
March 31, 2016 December 31, 2015 March 31, 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 $832,368 $9,485 4.57% $793,830 $9,220 4.61% $714,338 $8,298 4.71%
Securities:
Taxable 113,446 712 2.52 93,713 527 2.23 68,528 366 2.17
Tax-exempt 22,199 144 2.60 17,174 104 2.40 18,979 119 2.54
Interest-bearing balances with banks 20,766 37 0.71 18,945 22 0.46 18,031 17 0.38
Total interest-earning assets 988,779 10,378 4.21 923,662 9,873 4.24 819,876 8,800 4.35
Cash and due from banks 7,222 5,656 5,689
Intangible assets 3,179 3,178 3,209
Other assets 52,121 48,374 45,256
Allowance for loan losses (6,308) (6,050) (5,022)
Total assets $1,044,993 $974,820 $869,008
Liabilities and shareholders equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand $239,844 $380 0.64% $233,748 $369 0.63% $204,728 $310 0.61%
Savings deposits 53,144 88 0.66 54,482 92 0.67 55,729 94 0.68
Time deposits 383,838 1,047 1.09 357,017 940 1.04 324,240 788 0.99
Total interest-bearing deposits 676,826 1,515 0.90 645,247 1,401 0.86 584,697 1,192 0.83
Short-term borrowings 132,839 243 0.73 84,531 171 0.80 53,404 24 0.18
Long-term debt 26,667 73 1.10 29,290 74 1.00 41,790 85 0.82
Total interest-bearing liabilities 836,332 1,831 0.88 759,068 1,646 0.86 679,891 1,301 0.78
Noninterest-bearing deposits 87,319 95,954 77,226
Other liabilities 10,469 10,800 6,975
Stockholders’ equity 110,873 108,998 104,916
Total liability and stockholders’ equity $1,044,993 $974,820 $869,008
Net interest income/net interest margin $8,547 3.47% $8,227 3.53% $7,499 3.71%


INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
March 31, 2016 December 31, 2015 March 31, 2015
Tangible common equity
Total stockholders’ equity $111,487 $109,350 $105,387
Adjustments:
Goodwill 2,684 2,684 2,684
Core deposit intangible 480 491 522
Trademark intangible 100 - -
Tangible common equity $108,223 $106,175 $102,181
Tangible assets
Total assets $1,073,529 $1,031,555 $868,080
Adjustments:
Goodwill 2,684 2,684 2,684
Core deposit intangible 480 491 522
Trademark intangible 100 - -
Tangible assets $1,070,265 $1,028,380 $864,874
Common shares outstanding 7,296,429 7,264,282 7,268,488
Tangible equity to tangible assets 10.11% 10.32% 11.81%
Book value per common share $15.28 $15.05 $14.50
Tangible book value per common share 14.83 14.62 14.06


Investar Holding Corporation Chris Hufft Chief Financial Officer (225) 227-2215 Chris.Hufft@investarbank.com

Source:Investar Holding Corporation