Investar Holding Corporation Announces 2016 Second Quarter Results

BATON ROUGE, LA, July 28, 2016 (GLOBE NEWSWIRE) -- Investar Holding Corporation (NASDAQ:ISTR) (the “Company”), the holding company for Investar Bank (the “Bank”), today announced financial results for the quarter ended June 30, 2016. The Company reported net income of $2.0 million, or $0.28 per diluted share for the second quarter of 2016, compared to $2.0 million, or $0.28 per diluted share for the quarter ended March 31, 2016, and $1.8 million, or $0.25 per diluted share, for the quarter ended June 30, 2015.

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

“This was another successful quarter for Investar and demonstrates our continued emphasis on creating long-term shareholder value. We continued to experience solid organic loan growth which fueled the increase in interest income. Deposit growth remains a focus and we are very pleased with the 15% growth in our noninterest-bearing deposits. During the quarter, we increased the quarterly dividend payable to shareholders by 11% as well as repurchased over 82,000 shares of our common stock. This brings our total repurchases to 140,000 shares under our share repurchase program, which is approximately 56% of the total shares authorized for repurchase. Our Board and management remain keenly focused on our commitment to delivering shareholder value as demonstrated by our increased dividend and stock repurchase activity.”

Second Quarter Highlights

  • Total loans, excluding loans held for sale, increased 9.7% year to date, or 19.4% annualized. Total loans, excluding loans held for sale, increased $19.8 million, or 2.5%, compared to March 31, 2016, and increased $143.9 million, or 21.4%, compared to June 30, 2015, to $817.5 million at June 30, 2016.
  • The business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $226.6 million at June 30, 2016, an increase of $10.0 million, or 4.6%, compared to the business lending portfolio of $216.6 million at March 31, 2016, and an increase of $40.3 million, or 21.6%, compared to the business lending portfolio of $186.3 million at June 30, 2015.
  • Other real estate owned decreased $0.4 million, or 59.9%, to $0.3 million at June 30, 2016, compared to $0.7 million at March 31, 2016, and decreased $2.2 million, or 88.9%, compared to $2.5 million at June 30, 2015.
  • Total noninterest-bearing deposits were $109.8 million at June 30, 2016, an increase of $14.8 million, or 15.6%, compared to March 31, 2016, and an increase of $23.5 million, or 27.2%, compared to June 30, 2015.
  • Total interest income increased $0.3 million, or 3.2%, compared to the quarter ended March 31, 2016, and increased $1.5 million, or 16.7%, compared to the quarter ended June 30, 2015, to $10.7 million for the quarter ended June 30, 2016.
  • Net charge-offs remain low, averaging 0.02% of total loans for the past eight quarters.
  • The Company repurchased 82,123 shares of the Company’s common stock through our stock repurchase program at an average price of $15.55 during the quarter ended June 30, 2016.

Loans

Total loans were $817.5 million at June 30, 2016, an increase of $19.8 million, or 2.5 %, compared to March 31, 2016, and an increase of $143.9 million, or 21.4%, compared to June 30, 2015.

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

Linked Qtr Change Year/Year Change Percentage of Total Loans
6/30/2016 3/31/2016 6/30/2015 $ % $ % 6/30/2016 6/30/2015
Mortgage loans on real estate
Construction and development $101,080 $95,353 $70,927 $5,727 6.0% $30,153 42.5% 12.4% 12.0%
1-4 Family 166,778 162,312 153,118 4,466 2.8 13,660 8.9 20.4 20.3
Multifamily 37,300 33,609 21,260 3,691 11.0 16,040 75.4 4.6 4.2
Farmland 8,343 6,366 3,001 1,977 31.1 5,342 178.0 1.0 0.8
Commercial real estate
Owner-occupied 151,464 141,583 129,825 9,881 7.0 21,639 16.7 18.5 17.8
Nonowner-occupied 180,842 174,176 119,321 6,666 3.8 61,521 51.6 22.1 21.8
Commercial and industrial 75,103 74,990 56,485 113 0.2 18,618 33.0 9.2 9.4
Consumer 96,560 109,233 119,649 (12,673) (11.6) (23,089) (19.3) 11.8 13.7
Total loans 817,470 797,622 673,586 19,848 2.5% 143,884 21.4% 100% 100%
Loans held for sale 46,717 50,921 78,212 (4,204) (8.3) (31,495) (40.3)
Total gross loans $864,187 $848,543 $751,798 $15,644 1.8% $112,389 14.9%

Consumer loans, including consumer loans held for sale, totaled $143.3 million at June 30, 2016, a decrease of $16.7 million, or 10.5%, compared to $160.0 million at March 31, 2016, and a decrease of $49.3 million, or 25.6%, compared to June 30, 2015. The decrease compared to the linked quarter is mainly attributable to principal payments on consumer loan balances. Since the Bank discontinued accepting indirect auto loan applications at the end of 2015, which was the primary source of its consumer loan portfolio and consumer loans held for sale, the consumer loan portfolio is expected to decrease over time. The Bank currently has the intent and ability to sell the balance of the consumer loans classified as held for sale at June 30, 2016, however, if this classification were to change, the loans would be transferred to the consumer loan portfolio.

At June 30, 2016, the Company’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $226.6 million, an increase of $10.0 million, or 4.6%, compared to the business lending portfolio of $216.6 million at March 31, 2016 and an increase of $40.3 million, or 21.6%, compared to the business lending portfolio of $186.3 million at June 30, 2015.

Credit Quality

Nonperforming loans were $5.5 million, or 0.67% of total loans, at June 30, 2016, an increase of $3.2 million, or 136.9%, compared to $2.3 million, or 0.29% of total loans, at March 31, 2016, and an increase of $2.8 million, or 103.7%, compared to $2.7 million, or 0.40% of total loans, at June 30, 2015. The allowance for loan losses was $7.1 million, or 129.6% and 0.87% of nonperforming loans and total loans, respectively, at June 30, 2016, compared to $6.5 million, or 279.8% and 0.81% of nonperforming loans and total loans, respectively, at March 31, 2016 and $5.7 million, or 213.2% and 0.85% of nonperforming loans and total loans, respectively, at June 30, 2015. The allowance for loan losses plus the fair value marks on acquired loans was 0.95% of total loans at June 30, 2016 compared to 0.90% at March 31, 2016 and 0.95% at June 30, 2015. The increase in nonperforming loans and the decrease in the allowance for loan losses as a percentage of nonperforming loans at June 30, 2016 when compared to both March 31, 2016 and June 30, 2015 are mainly attributable to a $2.7 million commercial and industrial loan relationship not related to the oil and gas industry. Management has evaluated the loan relationship, which is well collateralized and properly reserved, and expects it to be resolved without any additional material impact to the financial statements.

The provision for loan loss expense was $0.8 million for the second quarter of 2016, an increase of $0.3 million and $0.4 million compared to March 31, 2016 and June 30, 2015, respectively. The increase in the provision for loan loss expense can also be attributed to the $2.7 million loan relationship discussed above.

Management continues to monitor the Company’s loan portfolio for exposure to potential negative impacts of suppressed oil and gas prices. We consider our exposure to the energy sector not to be significant, at less than one percent of the total loan portfolio at June 30, 2016. However, should the price of oil and gas decline further and/or remain at the current low price for an extended period, the general economic conditions in our south Louisiana markets could be negatively affected and could negatively impact borrowers’ ability to service their debt. Management continually evaluates the allowance for loan losses based on several factors, including economic conditions, and currently believes that any potential negatively affected future cash flows related to these loans would be covered by the current allowance for loan losses.

Deposits

Total deposits at June 30, 2016 were $867.2 million, an increase of $58.5 million, or 7.2%, compared to March 31, 2016 and an increase of $161.2 million, or 22.8%, compared to June 30, 2015. The increase in total deposits was driven by an increase in noninterest-bearing deposits of $23.5 million, or 27.2%, an increase in money market accounts of $16.4 million, or 17.8%, and an increase in time deposits of $112.2 million, or 32.6%, compared to June 30, 2015.

The Company’s focus on relationship banking continues to positively impact noninterest-bearing demand deposit growth.

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

Linked Qtr Change Year/Year Change Percentage of
Total Deposits
6/30/2016 3/31/2016 6/30/2015 $ % $ % 6/30/2016 6/30/2015
Noninterest-bearing demand deposits $109,828 $95,033 $86,339 $14,795 15.6% $23,489 27.2% 12.7% 12.2%
NOW accounts 139,893 138,672 131,136 1,221 0.9 8,757 6.7 16.1 18.6
Money market deposit accounts 108,552 104,936 92,126 3,616 3.4 16,426 17.8 12.5 13.1
Savings accounts 52,899 52,285 52,546 614 1.2 353 0.7 6.1 7.4
Time deposits 456,033 417,772 343,860 38,261 9.2 112,173 32.6 52.6 48.7
Total deposits $867,205 $808,698 $706,007 $58,507 7.2% $161,198 22.8% 100% 100%

Net Interest Income

Net interest income for the second quarter of 2016 totaled $8.7 million, an increase of $0.1 million, or 1.3%, compared to the first quarter of 2016, and an increase of $0.9 million, or 11.3%, compared to the second quarter of 2015. The increase was a direct result of continued growth of the Company’s loan portfolio with an increase in net interest income of $1.5 million due to an increase in volume offset by a $0.6 million decrease related to a reduction in yield compared to the second quarter of 2015.

The Company’s net interest margin was 3.38% for the quarter ended June 30, 2016 compared to 3.47% for the first quarter of 2016 and 3.70% for the second quarter of 2015. The yield on interest-earning assets was 4.18% for the quarter ended June 30, 2016 compared to 4.21% for the first quarter of 2016 and 4.37% for the second quarter of 2015.

The cost of deposits increased six basis points for the quarter ended June 30, 2016 compared to the first quarter of 2016, and increased twelve basis points compared to the second quarter of 2015. The increase is primarily a result of increases in time deposit rates.

Noninterest Income

Noninterest income for the second quarter of 2016 totaled $2.3 million, an increase of $1.0 million, or 75.3%, compared to the first quarter of 2016, and an increase of $0.2 million, or 9.2%, compared to the second quarter of 2015. The increase in noninterest income when compared to March 31, 2016 is mainly attributable to the $1.3 million gain on sale of fixed assets recognized for the sale of the land and building of one of the Bank’s branch locations to a healthcare company. The increase in gain on sale of fixed assets was offset by a $0.3 million decrease in the gain on sale of loans. Since exiting the indirect auto loan origination business at the end of 2015, the Bank has experienced decreased loan sales and has ceased originations of consumer loans held for sale. The Bank does intend to sell the balance of the consumer loans held for sale at June 30, 2016, however, it expects the gain on sale of loans to diminish over time.

Noninterest Expense

Noninterest expense for the second quarter of 2016 totaled $7.1 million, an increase of $0.7 million, or 11.3%, compared to the first quarter of 2016, and an increase of $0.4 million, or 6.3%, compared to the second quarter of 2015. The increase in noninterest expense compared to the first quarter of 2016 is primarily due to $0.6 million in customer reimbursements that we paid to certain borrowers during the second quarter.

Basic Earnings Per Share and Diluted Earnings Per Share

The Company reported both basic and diluted earnings per share of $0.28 for the three months ended June 30, 2016, an increase of $0.03, compared to basic and diluted earnings per share of $0.25 for the three months ended June 30, 2015.

Taxes

The Company recorded income tax expense of $1.0 million for the quarter ended June 30, 2016, which equates to an effective tax rate of 33.4%.

About Investar Holding Corporation

Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, a state chartered bank. The Company’s primary market is South Louisiana and it currently operates 10 full service banking offices located throughout its market. At June 30, 2016, the Company had 152 full-time equivalent employees.

Non-GAAP Financial Measures

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

Forward-Looking Statements

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

  • business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;
  • our ability to achieve organic loan and deposit growth, and the composition of that growth;
  • changes (or the lack of changes) in interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;
  • the extent of continuing client demand for the high level of personalized service that is a key element of our banking approach as well as our ability to execute our strategy generally;
  • our dependence on our management team, and our ability to attract and retain qualified personnel;
  • changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers;
  • inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates;
  • the concentration of our business within our geographic areas of operation in Louisiana; and
  • concentration of credit exposure.

These factors should not be construed as exhaustive. Additional information on these and other risk factors can be found in Item 1A. “Risk Factors” and Item 7. “Special Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission.

INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)
As of and for the three months ended
6/30/2016 3/31/2016 6/30/2015 Linked Quarter Year/Year
EARNINGS DATA
Total interest income $10,719 $10,378 $9,187 3.3% 16.7%
Total interest expense 2,061 1,831 1,407 12.6% 46.5%
Net interest income 8,658 8,547 7,780 1.3% 11.3%
Provision for loan losses 800 454 400 76.2% 100.0%
Total noninterest income 2,256 1,287 2,066 75.3% 9.2%
Total noninterest expense 7,104 6,384 6,682 11.3% 6.3%
Income before income taxes 3,010 2,996 2,764 0.5% 8.9%
Income tax expense 1,005 1,006 951 -0.1% 5.7%
Net income $2,005 $1,990 $1,813 0.8% 10.6%
AVERAGE BALANCE SHEET DATA
Total assets $1,086,604 $1,044,993 $891,581 4.0% 21.9%
Total interest-earning assets 1,028,360 988,779 842,984 4.0% 22.0%
Total loans 800,710 767,761 664,607 4.3% 20.5%
Total gross loans 852,475 832,368 729,851 2.4% 16.8%
Total interest-bearing deposits 739,678 676,826 617,442 9.3% 19.8%
Total interest-bearing liabilities 866,386 836,332 694,497 3.6% 24.8%
Total deposits 835,215 764,145 699,151 9.3% 19.5%
Total shareholders' equity 112,035 110,873 106,583 1.0% 5.1%
PER SHARE DATA
Earnings:
Basic earnings per share $0.28 $0.28 $0.25 0.0% 12.0%
Diluted earnings per share 0.28 0.28 0.25 0.0% 12.0%
Book value per share 15.63 15.28 14.65 2.3% 6.7%
Tangible book value per share(1) 15.18 14.83 14.22 2.4% 6.8%
Common shares outstanding 7,214,734 7,296,426 7,293,209 -1.1% -1.1%
PERFORMANCE RATIOS
Return on average assets 0.74% 0.76% 0.82% -2.6% -9.8%
Return on average equity 7.18% 7.20% 6.82% -0.3% 5.3%
Net interest margin 3.38% 3.47% 3.70% -2.6% -8.6%
Net interest income to average assets 3.20% 3.28% 3.50% -2.4% -8.6%
Noninterest expense to average assets 2.62% 2.45% 3.01% 6.9% -13.0%
Efficiency ratio(2) 65.09% 64.92% 67.87% 0.3% -4.1%
Dividend payout ratio 3.57% 3.25% 3.11% 9.8% 14.8%
Net charge-offs to average loans 0.02% 0.02% 0.00% 0.0% 0.0%
(1) Non-GAAP financial measure. See reconciliation.
(2) Efficiency ratio represents noninterest expenses divided by the sum of net interest income (before provision for loan losses) and noninterest income.


INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)
As of and for the three months ended
6/30/2016 3/31/2016 6/30/2015 Linked Quarter Year/Year
ASSET QUALITY RATIOS
Nonperforming assets to total assets 0.51% 0.28% 0.56% 82.1% -8.9%
Nonperforming loans to total loans 0.67% 0.29% 0.40% 131.0% 67.5%
Allowance for loan losses to total loans 0.87% 0.81% 0.85% 7.4% 2.4%
Allowance for loan losses to nonperforming loans 129.6% 279.75% 213.20% -53.7% -39.2%
CAPITAL RATIOS
Investar Holding Corporation:
Total equity to total assets 10.01% 10.39% 11.59% -3.7% -13.6%
Tangible equity to tangible assets 9.75% 10.11% 11.29% -3.6% -13.6%
Tier 1 leverage ratio 10.46% 10.78% 12.15% -3.0% -13.9%
Common equity tier 1 capital ratio 11.11% 11.49% 12.96% -3.3% -14.3%
Tier 1 capital ratio 11.47% 11.86% 13.39% -3.3% -14.3%
Total capital ratio 12.19% 12.54% 14.10% -2.8% -13.5%
Investar Bank:
Tier 1 leverage ratio 10.26% 10.52% 11.72% -2.5% -12.5%
Common equity tier 1 capital ratio 11.25% 11.57% 12.91% -2.8% -12.9%
Tier 1 capital ratio 11.25% 11.57% 12.91% -2.8% -12.9%
Total capital ratio 11.97% 12.25% 13.62% -2.3% -12.1%


INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)
June 30, 2016 March 31, 2016 June 30, 2015
ASSETS
Cash and due from banks $9,958 $8,808 $7,541
Interest-bearing balances due from other banks 27,175 12,465 16,807
Federal funds sold 1 51 191
Cash and cash equivalents 37,134 21,324 24,539
Available for sale securities at fair value (amortized cost
of $149,986, $127,737, and $82,049, respectively)
151,841 128,570 82,236
Held to maturity securities at amortized cost (estimated
fair value of $25,810, $26,348, and $24,015, respectively)
25,656 26,249 24,230
Loans held for sale 46,717 50,921 78,212
Loans, net of allowance for loan losses of $7,091, $6,463, and
$5,728, respectively
810,379 791,159 667,858
Other equity securities 7,371 7,183 4,183
Bank premises and equipment, net of accumulated depreciation
of $6,017, $5,727, and $4,662, respectively
30,147 30,759 29,444
Other real estate owned, net 279 695 2,519
Accrued interest receivable 2,840 2,978 2,432
Deferred tax asset 1,459 1,934 1,624
Goodwill and other intangible assets 3,254 3,265 3,195
Bank-owned life insurance 7,101 7,054 -
Other assets 2,752 1,438 1,383
Total assets $1,126,930 $1,073,529 $921,855
LIABILITIES
Deposits
Noninterest-bearing $109,828 $95,033 $86,339
Interest-bearing 757,377 713,665 619,668
Total deposits 867,205 808,698 706,007
Advances from Federal Home Loan Bank 93,599 103,960 79,066
Repurchase agreements 28,854 29,678 15,130
Junior subordinated debt 3,609 3,609 3,609
Accrued taxes and other liabilities 20,900 16,097 11,170
Total liabilities 1,014,167 962,042 814,982
STOCKHOLDERS' EQUITY
Preferred stock, $1.00 par value per share; 5,000,000
shares authorized
- - -
Common stock, $1.00 par value per share; 40,000,000 shares authorized;
7,359,976, 7,358,231, and 7,294,987 shares issued and 7,214,734,
7,296,429, and 7,293,209 shares outstanding, respectively
7,360 7,358 7,295
Treasury stock (2,249) (952) (26)
Surplus 84,958 84,780 84,358
Retained earnings 22,507 20,575 15,461
Accumulated other comprehensive income (loss) 187 (274) (215)
Total stockholders' equity 112,763 111,487 106,873
Total liabilities and stockholders' equity $1,126,930 $1,073,529 $921,855


INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data)
(Unaudited)
For the three months ended For the six months ended
June 30, 2016 March 31, 2016 June 30, 2015 June 30, 2016 June 30, 2015
INTEREST INCOME
Interest and fees on loans $9,781 $9,485 $8,646 $19,266 $16,944
Interest on investment securities 891 856 523 1,747 1,008
Other interest income 47 37 18 84 35
Total interest income 10,719 10,378 9,187 21,097 17,987
INTEREST EXPENSE
Interest on deposits 1,763 1,515 1,299 3,278 2,491
Interest on borrowings 298 316 108 614 217
Total interest expense 2,061 1,831 1,407 3,892 2,708
Net interest income 8,658 8,547 7,780 17,205 15,279
Provision for loan losses 800 454 400 1,254 1,100
Net interest income after provision for loan losses 7,858 8,093 7,380 15,951 14,179
NONINTEREST INCOME
Service charges on deposit accounts 88 97 97 185 191
Gain on sale of investment securities, net 144 80 134 224 134
Gain on sale of fixed assets, net 1,252 - - 1,252 -
Gain on sale of real estate owned, net 10 1 7 11 6
Gain on sale of loans, net - 313 1,077 313 2,808
Fee income on loans held for sale, net 106 123 210 229 510
Servicing fees 431 468 373 899 653
Other operating income 225 205 168 430 304
Total noninterest income 2,256 1,287 2,066 3,543 4,606
Income before noninterest expense 10,114 9,380 9,446 19,494 18,785
NONINTEREST EXPENSE
Depreciation and amortization 369 370 362 739 719
Salaries and employee benefits 3,890 3,873 3,971 7,763 7,879
Occupancy 242 236 225 478 438
Data processing 367 374 370 741 710
Marketing 102 112 62 214 120
Professional fees 375 279 237 654 499
Customer reimbursements 584 - - 584 -
Other operating expenses 1,175 1,140 1,455 2,315 2,741
Total noninterest expense 7,104 6,384 6,682 13,488 13,106
Income before income tax expense 3,010 2,996 2,764 6,006 5,679
Income tax expense 1,005 1,006 951 2,011 1,916
Net income $2,005 $1,990 $1,813 $3,995 $3,763
EARNINGS PER SHARE
Basic earnings per share $0.28 $0.28 $0.25 $0.56 $0.52
Diluted earnings per share $0.28 $0.28 $0.25 $0.55 $0.52
Cash dividends declared per common share $0.01 $0.01 $0.01 $0.02 $0.02


INVESTAR HOLDING CORPORATION
EARNINGS PER COMMON SHARE
(Amounts in thousands, except share data)
(Unaudited)
For the three months ended For the six months ended
June 30, 2016 March 31, 2016 June 30, 2015 June 30, 2016 June 30, 2015
Net income available to common shareholders $2,005 $1,990 $1,813 $3,995 $3,763
Weighted average number of common shares outstanding used in computation of basic earnings per common share 7,158,532 7,194,558 7,219,593 7,176,545 7,219,415
Effect of dilutive securities:
Restricted stock 15,298 15,353 13,372 12,705 11,065
Stock options 14,715 14,854 16,725 14,752 13,478
Stock warrants 11,231 11,267 12,467 11,249 10,765
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share 7,199,776 7,236,032 7,262,157 7,215,251 7,254,723
Basic earnings per share $0.28 $0.28 $0.25 $0.56 $0.52
Diluted earnings per share $0.28 $0.28 $0.25 $0.55 $0.52


INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
For the three months ended
June 30, 2016 March 31, 2016 June 30, 2015
Average
Balance
Interest
Income/
Expense
Yield/ Rate Average
Balance
Interest
Income/
Expense
Yield/ Rate Average
Balance
Interest
Income/
Expense
Yield/ Rate
Assets
Interest-earning assets:
Loans $852,475 $9,781 4.60% $832,368 $9,485 4.57% $729,851 $8,646 4.75%
Securities:
Taxable 129,126 732 2.27 113,446 712 2.52 77,050 404 2.10
Tax-exempt 25,105 159 2.54 22,199 144 2.60 18,948 119 2.52
Interest-bearing balances with banks 21,654 47 0.87 20,766 37 0.71 17,135 18 0.42
Total interest-earning assets 1,028,360 10,719 4.18 988,779 10,378 4.21 842,984 9,187 4.37
Cash and due from banks 7,647 7,222 5,432
Intangible assets 3,258 3,179 3,199
Other assets 54,123 52,121 45,532
Allowance for loan losses (6,784) (6,308) (5,566)
Total assets $1,086,604 $1,044,993 $891,581
Liabilities and shareholders equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand $247,052 $393 0.64% $239,844 $380 0.64% $222,130 $353 0.64%
Savings deposits 52,728 88 0.67 53,144 88 0.66 53,364 90 0.68
Time deposits 439,898 1,282 1.17 383,838 1,047 1.09 341,948 856 1.00
Total interest-bearing deposits 739,678 1,763 0.96 676,826 1,515 0.90 617,442 1,299 0.84
Short-term borrowings 103,274 229 0.89 132,839 243 0.73 36,977 16 0.17
Long-term debt 23,434 69 1.18 26,667 73 1.10 40,078 92 0.92
Total interest-bearing liabilities 866,386 2,061 0.95 836,332 1,831 0.88 694,497 1,407 0.81
Noninterest-bearing deposits 95,537 87,319 81,709
Other liabilities 12,646 10,469 8,792
Stockholders’ equity 112,035 110,873 106,583
Total liability and stockholders’ equity $1,086,604 $1,044,993 $891,581
Net interest income/net interest margin $8,658 3.38% $8,547 3.47% $7,780 3.70%


INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
For the six months ended
June 30 2016 June 30, 2015
Average
Balance
Interest
Income/
Expense
Yield/ Rate Average
Balance
Interest
Income/
Expense
Yield/ Rate
Assets
Interest-earning assets:
Loans $842,420 $19,266 4.59% $722,136 $16,944 4.73%
Securities:
Taxable 121,286 1,444 2.39 72,812 770 2.13
Tax-exempt 23,652 303 2.57 18,963 238 2.53
Interest-bearing balances with banks 21,210 84 0.79 17,580 35 0.40
Total interest-earning assets 1,008,568 21,097 4.20 831,491 17,987 4.36
Cash and due from banks 7,435 5,560
Intangible assets 3,219 3,204
Other assets 53,123 45,396
Allowance for loan losses (6,546) (5,295)
Total assets $1,065,799 $880,356
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand $243,448 $773 0.64% $213,477 $663 0.63%
Savings deposits 52,936 177 0.67 54,540 184 0.68
Time deposits 411,868 2,328 1.13 333,143 1,644 1.00
Total interest-bearing deposits 708,252 3,278 0.93 601,160 2,491 0.84
Short-term borrowings 118,056 473 0.80 45,145 40 0.18
Long-term debt 25,050 141 1.13 40,929 177 0.87
Total interest-bearing liabilities 851,358 3,892 0.92 687,234 2,708 0.79
Noninterest-bearing deposits 91,428 79,480
Other liabilities 11,559 7,888
Stockholders' equity 111,454 105,754
Total liability and stockholders’ equity $1,065,799 $880,356
Net interest income/net interest margin $17,205 3.42% $15,279 3.71%


INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
June 30, 2016 March 31, 2016 June 30, 2015
Tangible common equity
Total stockholder's equity $112,763 $111,487 $106,873
Adjustments:
Goodwill 2,684 2,684 2,684
Core deposit intangible 470 480 511
Trademark intangible 100 100
Tangible common equity $109,509 $108,223 $103,678
Tangible assets
Total assets $1,126,930 $1,073,529 $921,855
Adjustments:
Goodwill 2,684 2,684 2,684
Core deposit intangible 470 480 511
Trademark intangible 100 100 -
Tangible assets $1,123,676 $1,070,265 $918,660
Common shares outstanding 7,214,734 7,296,429 7,293,209
Tangible equity to tangible assets 9.75% 10.11% 11.29%
Book value per common share $15.63 $15.28 $14.65
Tangible book value per common share 15.18 14.83 14.22

For further information contact: Investar Holding Corporation Chris Hufft Chief Financial Officer (225) 227-2215 Chris.Hufft@investarbank.com

Source:Investar Holding Corporation