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Investar Holding Corporation Announces 2016 First Quarter Results

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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
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