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Investar Holding Corporation Announces 2016 Second Quarter Results

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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
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