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Investar Holding Corporation Announces 2016 Fourth Quarter Results

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BATON ROUGE, La., Jan. 26, 2017 (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 December 31, 2016. The Company reported net income of $1.8 million, or $0.26 per diluted share for the fourth quarter of 2016, compared to $2.0 million, or $0.29 per diluted share for the quarter ended September 30, 2016, and $1.5 million, or $0.20 per diluted share, for the quarter ended December 31, 2015.

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

"I am pleased to announce our results, which include net income of $1.8 million for the fourth quarter of 2016, and record net income of $7.9 million for the year. This achievement was driven by our continued, strong loan and noninterest-bearing deposit growth of 20%, stable credit quality metrics, and our commitment to controlling our operating expenses.

This past year marked the 10th anniversary of Investar Bank. The Bank was founded on the principles of serving our customers, the communities in which we operate, our employees, and our shareholders. We remain focused on these principles while we continue to execute our strategic objectives of increasing profitability, controlling operating expenses, and increasing shareholder value. We look forward to 2017 as the opportunities to continue to grow revenues and expand our customer base remain strong."

Performance Highlights

  • Total loans, excluding loans held for sale, increased $46.6 million, or 5.5%, compared to September 30, 2016, and increased $148.0 million, or 19.9%, compared to December 31, 2015, to $893.4 million at December 31, 2016.
  • The business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $265.8 million at December 31, 2016, an increase of $15.5 million, or 6.2%, compared to the business lending portfolio of $250.3 million at September 30, 2016, and an increase of $58.1 million, or 28%, compared to the business lending portfolio of $207.7 million at December 31, 2015.
  • Nonperforming loans to total loans decreased to 0.22% at December 31, 2016 compared to 1.06% at September 30, 2016.
  • Total noninterest-bearing deposits were $108.4 million at December 31, 2016, an increase of $18.0 million, or 19.9%, compared to December 31, 2015.
  • Total interest income increased $1.2 million, or 12.0%, for the quarter ended December 31, 2016 compared to the quarter ended December 31, 2015.
  • Diluted earnings per share increased $0.06, or 30%, to $0.26 for the quarter ended December 31, 2016, compared to $0.20 for the quarter ended December 31, 2015.
  • The dividend payout ratio increased to 4.65% for the quarter ended December 31, 2016 compared to 3.81% for the quarter ended September 30, 2016 and 4.26% for the quarter ended December 31, 2015.
  • The Company repurchased 38,311 shares of the Company's common stock through its stock repurchase program at an average price of $16.75 during the quarter ended December 31, 2016, leaving 241,243 shares available for repurchase. Since the inception of the board-approved repurchase program, the Company has repurchased 258,757 shares of its common stock at an average price of $15.63.
  • The Company's common stock had a closing trade price of $18.65 at December 30, 2016, representing 21.5% growth from a closing trade price of $15.35 at September 30, 2016.

Loans

Total loans were $893.4 million at December 31, 2016, an increase of $46.6 million, or 5.5%, compared to September 30, 2016, and an increase of $148.0 million, or 19.9%, compared to December 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
 
  12/31/2016  9/30/2016  12/31/2015  $  %  $  %  12/31/2016 12/31/2015 
Mortgage loans on real estate                                   
Construction and development $90,737  $92,355  $81,863  $(1,618) (1.8)% $8,874   10.8%  10.2% 11.0%
1-4 Family  177,205   175,392   156,300   1,813   1.0   20,905   13.4   19.8  21.0 
Multifamily  42,759   42,560   29,694   199   0.5   13,065   44.0   4.8  4.0 
Farmland  8,207   8,281   2,955   (74)  (0.9)  5,252   177.7   0.9  0.4 
Commercial real estate                                   
Owner-occupied  180,458   172,952   137,752   7,506   4.3   42,706   31.0   20.2  18.5 
Nonowner-occupied  200,258   192,270   150,831   7,988   4.2   49,427   32.8   22.4  20.2 
Commercial and industrial  85,377   77,312   69,961   8,065   10.4   15,416   22.0   9.6  9.4 
Consumer  108,425   85,706   116,085   22,719   26.5   (7,660)  (6.6)  12.1  15.5 
Total loans  893,426   846,828   745,441   46,598   5.5%  147,985   19.9%  100% 100%
Loans held for sale  -   40,553   80,509   (40,553)  (100.0)  (80,509)  (100.0)       
Total gross loans $893,426  $887,381  $825,950  $6,045   0.7% $67,476   8.2%       
                                    

Consumer loans totaled $108.4 million at December 31, 2016, an increase of $22.7 million, or 26.5%, compared to $85.7 million at September 30, 2016, and a decrease of $7.7 million, or 6.6%, compared to $116.1 million at December 31, 2015. The increase in consumer loans when compared to the linked quarter is attributable to the reclassification of loans held for sale, which consisted only of indirect auto loans. Of the $40.6 million of loans held for sale at September 30, 2016, the Bank sold approximately $4.9 million during the fourth quarter of 2016. The remaining balance of the consumer loans held for sale was reclassified to the consumer loan portfolio as of December 31, 2016. 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.

At December 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 $265.8 million, an increase of $15.5 million, or 6.2%, compared to the business lending portfolio of $250.3 million at September 30, 2016, and an increase of $58.1 million, or 28%, compared to the business lending portfolio of $207.7 million at December 31, 2015.

Credit Quality

Nonperforming loans were $2.0 million, or 0.22% of total loans, at December 31, 2016, a decrease of $7.0 million, or 77.9%, compared to $9.0 million, or 1.06% of total loans, at September 30, 2016, and a decrease of $0.4 million, or 17.9%, compared to $2.4 million, or 0.32% of total loans, at December 31, 2015. The decrease in nonperforming loans when compared to the third quarter of 2016 is mainly attributable to one owner-occupied commercial real estate loan of approximately $4.3 million that was transferred to other real estate owned, net, on the consolidated balance sheet during the fourth quarter, and one commercial and industrial loan relationship not related to the oil and gas industry of approximately $2.6 million, which was placed back on accrual status during the fourth quarter, due to the borrower remaining current throughout its bankruptcy process and the Bank receiving additional cash collateral, as mentioned in a prior press release. Included in noninterest expense is approximately $0.2 million of legal and other operating expense incurred as a result of transferring the commercial real estate loan to other real estate owned.

The allowance for loan losses was $7.1 million, or 356.16% and 0.79% of nonperforming loans and total loans, respectively, at December 31, 2016, compared to $7.4 million, or 82.44% and 0.87% of nonperforming loans and total loans, respectively, at September 30, 2016, and $6.1 million, or 254.16% and 0.82% of nonperforming loans and total loans, respectively, at December 31, 2015. The reduction of the allowance for loan losses at December 31, 2016 compared to September 30, 2016 is mainly attributable to the $0.5 million write-down of the owner-occupied commercial real estate loan that was transferred to other real estate owned during the fourth quarter. The allowance for loan losses plus the fair value marks on acquired loans was 0.87% of total loans at December 31, 2016 compared to 0.95% at September 30, 2016 and 0.91% at December 31, 2015. The provision for loan loss expense was $0.4 million for the fourth quarter of 2016, a decrease of $0.1 million and an increase of $10,000 when compared to September 30, 2016 and December 31, 2015, respectively.

As a result of the flooding that occurred during the third quarter of 2016, the Company instituted a 90-day loan deferral program for customers who were impacted by the flood and has allocated a portion of its general reserves to the potential impact as a result of the flood. The Company placed approximately $23.5 million, or 2.8% of the total loan portfolio on a 90-day deferral plan during the third quarter of 2016. As these loans transition from a deferred status, the Company continues to assess the impact the flooding may have on the region and its loan portfolio to determine the need for specific or additional general reserves.

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 December 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 December 31, 2016 were $907.8 million, an increase of $0.7 million, or 0.1%, compared to September 30, 2016 and an increase of $170.4 million, or 23.1%, compared to December 31, 2015. The increase in total deposits was driven by an increase in noninterest-bearing deposits of $18.0 million, or 19.9%, an increase in NOW accounts of $31.1 million, or 22.1%, an increase in money market accounts of $27.0 million, or 28.1%, and an increase in time deposits of $95.3 million, or 26.7%, compared to December 31, 2015.

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

 
  12/31/2016  9/30/2016  12/31/2015  $  %  $  %  12/31/2016  12/31/2015 
Noninterest-bearing demand deposits $108,404  $112,414  $90,447  $(4,010) (3.6)% $17,957   19.9%  11.9%  12.3%
NOW accounts  171,556   150,551   140,503   21,005   14.0   31,053   22.1   18.9   19.0 
Money market deposit accounts  123,079   123,487   96,113   (408)  (0.3)  26,966   28.1   13.6   13.0 
Savings accounts  52,860   51,332   53,735   1,528   3.0   (875)  (1.6) 5.8  7.3 
Time deposits  451,888   469,267   356,608   (17,379)  (3.7)  95,280   26.7  49.8  48.4 
Total deposits $907,787  $907,051  $737,406  $736   0.1% $170,381   23.1%  100%  100%
                                     

Net Interest Income

Net interest income for the fourth quarter of 2016 totaled $8.8 million, remaining consistent with the third quarter of 2016, and increasing $0.6 million, or 6.7%, compared to the fourth quarter of 2015. The increase in net interest income was a direct result of continued growth of the Company's loan portfolio with an increase in net interest income of $1.1 million due to an increase in volume offset by a $0.5 million decrease related to a reduction in yield compared to the fourth quarter of 2015.

The Company's net interest margin was 3.20% for the quarter ended December 31, 2016 compared to 3.23% for the third quarter of 2016 and 3.53% for the fourth quarter of 2015. The yield on interest-earning assets was 4.04% for the quarter ended December 31, 2016 compared to 4.06% for the third quarter of 2016 and 4.24% for the fourth quarter of 2015. The decrease in net interest margin and yield on interest-earning assets when compared to the third quarter of 2016 is mainly attributable to the $4.3 million loan that was added to nonaccrual loans at the end of the third quarter and subsequently transferred to other real estate owned at the end of the fourth quarter, as discussed in Credit Quality above, as well as the decline in the yields on investment securities due to an increase in pay-downs of securities with unamortized premiums.

The cost of deposits remained constant at 0.98% for the quarter ended December 31, 2016 compared to the third quarter of 2016, and increased 12 basis points compared to the fourth quarter of 2015. The increase in the cost of deposits when compared to the fourth quarter of 2015 is primarily a result of increases in time deposit rates. Beginning in the third quarter of 2016 and continuing into the fourth quarter, the Company lowered its rates on time deposits in an effort to begin reducing its cost of funds. The rate reductions have resulted in a decrease in time deposits at December 31, 2016 compared to September 30, 2016, as shown in the Deposit table above.

Noninterest Income

Noninterest income for the fourth quarter of 2016 totaled $0.9 million, a decrease of $0.1 million, or 12.9%, compared to the third quarter of 2016, and a decrease of $0.7 million, or 43%, compared to the fourth quarter of 2015. The decrease in noninterest income when compared to the quarter ended September 30, 2016 is mainly attributable to the $0.2 million decrease in the gain on sale of investment securities offset by the $0.1 million increase in the gain on sale of loans. The decrease in noninterest income when compared to the fourth quarter of 2015 is mainly due to the $0.5 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. In the fourth quarter of 2016, the Bank sold approximately $4.9 million of its consumer loans held for sale and reclassified the remaining balance of loans held for sale into its consumer portfolio.

Noninterest Expense

Noninterest expense for the fourth quarter of 2016 totaled $6.6 million, an increase of $0.1 million, or 0.8%, compared to the third quarter of 2016, and a decrease of $0.6 million, or 8.7%, compared to the fourth quarter of 2015. The increase in noninterest expense compared to the third quarter of 2016 is a result of approximately $0.2 million in legal and other operating expenses related to the $4.3 million owner-occupied commercial real estate nonaccrual loan that was transferred to other real estate owned during the fourth quarter. The decrease in noninterest expense compared to the fourth quarter of 2015 is mainly due to a $0.5 million decrease in salaries and benefits, which is primarily a result of the Company's exit from the indirect auto loan origination business at the end of 2015.

Basic Earnings Per Share and Diluted Earnings Per Share

The Company reported both basic and diluted earnings per share of $0.26 for the three months ended December 31, 2016, an increase of $0.06, compared to basic and diluted earnings per share of $0.20 for the three months ended December 31, 2015.

Taxes

The Company recorded income tax expense of $0.9 million for the quarter ended December 31, 2016, which equates to an effective tax rate of 31.5%.

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 December 31, 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 and including the potential impact on our borrowers of the August 2016 flooding in Baton Rouge and surrounding areas;
  • 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 
  12/31/2016  9/30/2016  12/31/2015  Linked
Quarter
  Year/Year 
EARNINGS DATA                    
Total interest income $11,062  $10,993  $9,873   0.6%  12.0%
Total interest expense  2,281   2,240   1,646   1.8%  38.6%
Net interest income  8,781   8,753   8,227   0.3%  6.7%
Provision for loan losses  375   450   365   -16.7%  2.7%
Total noninterest income  896   1,029   1,571   -12.9%  -43.0%
Total noninterest expense  6,603   6,548   7,234   0.8%  -8.7%
Income before income taxes  2,699   2,784   2,199   -3.1%  22.7%
Income tax expense  851   747   745   13.9%  14.2%
Net income $1,848  $2,037  $1,454   -9.3%  27.1%
                     
AVERAGE BALANCE SHEET DATA                    
Total assets $1,147,835  $1,134,591  $974,820   1.2%  17.7%
Total interest-earning assets  1,087,645   1,075,145   923,662   1.2%  17.8%
Total loans  863,293   840,028   739,809   2.8%  16.7%
Total gross loans  889,814   874,272   793,830   1.8%  12.1%
Total interest-bearing deposits  798,250   784,591   645,247   1.7%  23.7%
Total interest-bearing liabilities  917,085   905,521   759,068   1.3%  20.8%
Total deposits  904,310   887,327   887,327   1.9%  1.9%
Total stockholders' equity  113,917   113,056   108,998   0.8%  4.5%
                     
PER SHARE DATA                    
Earnings:                    
Basic earnings per share $0.26  $0.29  $0.20   -10.3%  30.0%
Diluted earnings per share  0.26   0.29   0.20   -10.3%  30.0%
Book value per share  15.88   15.93   15.05   -0.3%  5.5%
Tangible book value per common share(1)  15.42   15.47   14.62   -0.3%  5.5%
Common shares outstanding  7,101,851   7,131,186   7,264,282   -0.4%  -2.2%
                     
PERFORMANCE RATIOS                    
Return on average assets  0.65%  0.71%  0.59%  -8.5%  10.2%
Return on average equity  6.51%  7.15%  5.29%  -9.0%  23.1%
Net interest margin  3.20%  3.23%  3.53%  -0.9%  -9.3%
Net interest income to average assets  3.04%  3.06%  3.35%  -0.7%  -9.3%
Noninterest expense to average assets  2.28%  2.29%  2.94%  -0.4%  -22.4%
Efficiency ratio(2)  68.23%  66.94%  73.83%  1.9%  -7.6%
Dividend payout ratio  4.65%  3.81%  4.26%  22.0%  9.2%
Net charge-offs to average loans  0.08%  0.02%  0.02%  300.0%  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 
  12/31/2016  9/30/2016  12/31/2015  Linked
Quarter
  Year/Year 
ASSET QUALITY RATIOS                    
Nonperforming assets to total assets  0.52%  0.80%  0.30%  -35.0%  73.3%
Nonperforming loans to total loans  0.22%  1.06%  0.32%  -79.2%  -31.3%
Allowance for loan losses to total loans  0.79%  0.87%  0.82%  -9.2%  -3.7%
Allowance for loan losses to nonperforming loans  356.16%  82.44%  254.16%  332.0%  40.1%
                     
CAPITAL RATIOS                    
Investar Holding Corporation:                    
Total equity to total assets  9.73%  9.84%  10.60%  -1.1%  -8.2%
Tangible equity to tangible assets(1)  9.48%  9.59%  10.32%  -1.1%  -8.1%
Tier 1 leverage ratio  10.10%  10.10%  11.39%  0.0%  -11.3%
Common equity tier 1 capital ratio(2)  11.40%  11.02%  11.67%  3.4%  -2.3%
Tier 1 capital ratio(2)  11.75%  11.37%  12.05%  3.3%  -2.5%
Total capital ratio(2)  12.47%  12.11%  12.72%  3.0%  -2.0%
Investar Bank:                    
Tier 1 leverage ratio  10.03%  9.94%  11.07%  0.9%  -9.4%
Common equity tier 1 capital ratio(2)  11.67%  11.19%  11.71%  4.3%  -0.3%
Tier 1 capital ratio(2)  11.67%  11.19%  11.71%  4.3%  -0.3%
Total capital ratio(2)  12.39%  11.93%  12.38%  3.9%  0.1%
                     
                     
(1) Non-GAAP financial measure. See reconciliation.
(2) Estimated for December 31, 2016.
 

 

INVESTAR HOLDING CORPORATION 
CONSOLIDATED BALANCE SHEETS 
(Amounts in thousands, except share data) 
(Unaudited) 
             
  December 31, 2016  September 30, 2016  December 31, 2015 
ASSETS            
Cash and due from banks $9,773  $10,172  $6,313 
Interest-bearing balances due from other banks  19,569   35,811   14,472 
Federal funds sold  106   172   181 
Cash and cash equivalents  29,448   46,155   20,966 
             
Available for sale securities at fair value (amortized cost of $166,258, $147,609, and $113,828, respectively)  163,051   148,981   113,371 
Held to maturity securities at amortized cost (estimated fair value of $19,612, $21,625, and $26,271, respectively)  20,091   21,454   26,408 
Loans held for sale  -   40,553   80,509 
Loans, net of allowance for loan losses of $7,051, $7,383, and $6,128, respectively  886,375   839,445   739,313 
Other equity securities  5,362   7,388   5,835 
Bank premises and equipment, net of accumulated depreciation of $6,751, $6,380, and $5,368, respectively  31,722   31,835   30,630 
Other real estate owned, net  4,065   279   725 
Accrued interest receivable  3,218   3,081   2,831 
Deferred tax asset  2,868   1,384   1,915 
Goodwill and other intangible assets, net  3,234   3,244   3,175 
Bank-owned life insurance  7,201   7,150   3,512 
Other assets  2,325   3,256   2,365 
Total assets $1,158,960  $1,154,205  $1,031,555 
             
LIABILITIES            
Deposits            
Noninterest-bearing $108,404  $112,414  $90,447 
Interest-bearing  799,383   794,637   646,959 
Total deposits  907,787   907,051   737,406 
Advances from Federal Home Loan Bank  82,803   88,943   127,497 
Repurchase agreements  39,087   23,554   39,099 
Junior subordinated debt  3,609   3,609   3,609 
Other borrowings  1,000   -   - 
Accrued taxes and other liabilities  11,917   17,472   14,594 
Total liabilities  1,046,203   1,040,629   922,205 
             
STOCKHOLDERS' EQUITY            
Preferred stock, no par value per share; 5,000,000 shares authorized  -   -   - 
Common stock, $1.00 par value per share; 40,000,000 shares authorized; 7,368,914, 7,359,666, and 7,305,213 shares issued, and 7,101,851, 7,131,186, and 7,264,282 shares outstanding, respectively  7,369   7,360   7,305 
Treasury stock  (4,172)  (3,526)  (634)
Surplus  85,404   85,124   84,692 
Retained earnings  26,227   24,465   18,650 
Accumulated other comprehensive (loss) income  (2,071)  153   (663)
Total stockholders' equity  112,757   113,576   109,350 
Total liabilities and stockholders' equity $1,158,960  $1,154,205  $1,031,555 
             

 

INVESTAR HOLDING CORPORATION 
CONSOLIDATED STATEMENTS OF OPERATIONS 
(Amounts in thousands, except share data) 
(Unaudited) 
                     
  For the three months ended  For the twelve months ended 
  December 31, 2016  September 30, 2016  December 31, 2015  December 31, 2016  December 31, 2015 
                     
INTEREST INCOME                    
Interest and fees on loans $10,103  $10,011  $9,220  $39,380  $35,076 
Interest on investment securities  898   920   631   3,565   2,189 
Other interest income  61   62   22   207   75 
Total interest income  11,062   10,993   9,873   43,152   37,340 
                     
INTEREST EXPENSE                    
Interest on deposits  1,970   1,934   1,401   7,182   5,250 
Interest on borrowings  311   306   245   1,231   632 
Total interest expense  2,281   2,240   1,646   8,413   5,882 
Net interest income  8,781   8,753   8,227   34,739   31,458 
                     
Provision for loan losses  375   450   365   2,079   1,865 
Net interest income after provision for loan losses  8,406   8,303   7,862   32,660   29,593 
                     
NONINTEREST INCOME                    
Service charges on deposit accounts  79   79   94   343   380 
Gain on sale of investment securities, net  15   204   21   443   489 
Gain on sale of fixed assets, net  14   -   -   1,266   15 
Gain (loss) on sale of other real estate owned, net  2   -   36   13   (105)
Gain on sale of loans, net  92   -   537   405   4,368 
Servicing fees and fee income on serviced loans  449   510   690   2,087   2,543 
Other operating income  245   236   193   911   654 
Total noninterest income  896   1,029   1,571   5,468   8,344 
Income before noninterest expense  9,302   9,332   9,433   38,128   37,937 
                     
NONINTEREST EXPENSE                    
Depreciation and amortization  383   371   365   1,493   1,446 
Salaries and employee benefits  3,901   3,945   4,358   15,609   16,398 
Occupancy  252   265   296   995   951 
Data processing  373   374   409   1,488   1,508 
Marketing  70   102   93   386   248 
Professional fees  295   312   305   1,261   1,075 
Customer reimbursements  -   -   -   584   - 
Other operating expenses  1,329   1,179   1,408   4,823   5,727 
Total noninterest expense  6,603   6,548   7,234   26,639   27,353 
Income before income tax expense  2,699   2,784   2,199   11,489   10,584 
Income tax expense  851   747   745   3,609   3,511 
Net income $1,848  $2,037  $1,454  $7,880  $7,073 
                     
EARNINGS PER SHARE                    
Basic earnings per share $0.26  $0.29  $0.20  $1.11  $0.98 
Diluted earnings per share $0.26  $0.29  $0.20  $1.10  $0.97 
Cash dividends declared per common share $0.01  $0.01  $0.01  $0.04  $0.03 
                     

 

INVESTAR HOLDING CORPORATION 
EARNINGS PER COMMON SHARE 
(Amounts in thousands, except share data) 
(Unaudited) 
                     
  For the three months ended  For the twelve months ended 
  December 31, 2016  September 30, 2016  December 31, 2015  December 31, 2016  December 31, 2015 
                     
Net income available to common stockholders $1,848  $2,037  $1,454  $7,880  $7,073 
Weighted average number of common shares outstanding used in computation of basic earnings per common share  7,017,213   7,059,953   7,200,526   7,107,187   7,214,045 
Effect of dilutive securities:                    
Restricted stock  21,648   15,546   12,564   10,228   5,861 
Stock options  33,664   15,369   21,150   33,664   21,150 
Stock warrants  17,975   11,575   16,952   17,975   16,952 
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share  7,090,500   7,102,443   7,251,192   7,169,054   7,258,008 
Basic earnings per share $0.26  $0.29  $0.20  $1.11  $0.98 
Diluted earnings per share $0.26  $0.29  $0.20  $1.10  $0.97 
                     

 

INVESTAR HOLDING CORPORATION 
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS 
(Amounts in thousands) 
(Unaudited) 
                                     
  For the three months ended 
  December 31, 2016  September 30, 2016  December 31, 2015 
     Interest        Interest        Interest    
  Average  Income/  Yield/  Average  Income/  Yield/  AverageIncome/  Yield/ 
  Balance  Expense  Rate  Balance  Expense  Rate  BalanceExpense  Rate 
Assets                                    
Interest-earning assets:                                    
Loans $889,814  $10,103   4.50% $874,272  $10,011   4.54% $793,830  $9,220   4.61%
Securities:                                    
Taxable  138,985   707   2.02   136,047   728   2.12   93,713   527   2.23 
Tax-exempt  30,898   191   2.45   30,733   192   2.48   17,174   104   2.40 
Interest-bearing balances with banks  27,948   61   0.87   34,093   62   0.72   18,945   22   0.46 
Total interest-earning assets  1,087,645   11,062   4.04   1,075,145   10,993   4.06   923,662   9,873   4.24 
Cash and due from banks  7,845           7,138           5,656         
Intangible assets  3,237           3,248           3,178         
Other assets  56,361           56,273           48,374         
Allowance for loan losses  (7,253)          (7,213)          (6,050)        
Total assets $1,147,835          $1,134,591          $974,820         
                                     
Liabilities and stockholders' equity                                    
Interest-bearing liabilities:                                    
Deposits:                                    
Interest-bearing demand $281,500  $485   0.68% $262,841  $433   0.65% $233,748  $369   0.63%
Savings deposits  53,219   87   0.65   51,924   88   0.67   54,482   92   0.67 
Time deposits  463,531   1,398   1.20   469,826   1,413   1.19   357,017   940   1.04 
Total interest-bearing deposits  798,250   1,970   0.98   784,591   1,934   0.98   645,247   1,401   0.86 
Short-term borrowings  99,169   246   0.98   98,286   237   0.96   84,531   171   0.80 
Long-term debt  19,666   65   1.31   22,644   69   1.21   29,290   74   1.00 
Total interest-bearing liabilities  917,085   2,281   0.99   905,521   2,240   0.98   759,068   1,646   0.86 
Noninterest-bearing deposits  106,060           102,736           95,954         
Other liabilities  10,773           13,278           10,800         
Stockholders' equity  113,917           113,056           108,998         
Total liability and stockholders' equity $1,147,835          $1,134,591          $974,820         
Net interest income/net interest margin     $8,781   3.20%     $8,753   3.23%     $8,227   3.53%
                                     

 

INVESTAR HOLDING CORPORATION 
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS 
(Amounts in thousands) 
(Unaudited) 
                         
                         
  For the twelve months ended 
  December 31, 2016  December 31, 2015 
     Interest        Interest    
  Average  Income/     Average  Income/
    
  Balance  Expense  Yield/ Rate
  Balance  Expense  Yield/ Rate
 
Assets                        
Interest-earning assets:                        
Loans $862,340  $39,380   4.55% $754,056  $35,076   4.65%
Securities:                        
Taxable  129,251   2,878   2.22   80,516   1,741   2.16 
Tax-exempt  27,171   687   2.52   18,077   448   2.48 
Interest-bearing balances with banks  26,196   207   0.79   18,136   75   0.41 
Total interest-earning assets  1,044,958   43,152   4.12   870,785   37,340   4.29 
Cash and due from banks  7,463           5,611         
Intangible assets  3,231           3,194         
Other assets  54,951           46,313         
Allowance for loan losses  (6,891)          (5,636)        
Total assets $1,103,712          $920,267         
                         
Liabilities and stockholders' equity                        
Interest-bearing liabilities:                        
Deposits:                        
Interest-bearing demand $257,888  $1,690   0.65% $222,730  $1,402   0.63%
Savings deposits  52,753   353   0.67   54,240   367   0.68 
Time deposits  439,423   5,139   1.17   343,638   3,481   1.01 
Total interest-bearing deposits  750,064   7,182   0.95   620,608   5,250   0.85 
Short-term borrowings  108,339   956   0.88   60,970   296   0.49 
Long-term debt  23,092   275   1.19   36,712   336   0.92 
Total interest-bearing liabilities  881,495   8,413   0.95   718,290   5,882   0.82 
Noninterest-bearing deposits  97,948           85,635         
Other liabilities  11,793           9,256         
Stockholders' equity  112,476           107,086         
Total liability and stockholders'  equity $1,103,712          $920,267         
Net interest income/net interest margin     $34,739   3.32%     $31,458   3.61%
                         

 

INVESTAR HOLDING CORPORATION 
RECONCILIATION OF NON GAAP FINANCIAL MEASURES 
(Amounts in thousands, except share data) 
(Unaudited) 
             
             
  December 31, 2016  September 30, 2016  December 31, 2015 
Tangible common equity            
Total stockholders' equity $112,757  $113,576  $109,350 
Adjustments:            
Goodwill  2,684   2,684   2,684 
Core deposit intangible  450   460   491 
Trademark intangible  100   100   - 
Tangible common equity $109,523  $110,332  $106,175 
Tangible assets            
Total assets $1,158,960  $1,154,205  $1,031,555 
Adjustments:            
Goodwill  2,684   2,684   2,684 
Core deposit intangible  450   460   491 
Trademark intangible  100   100   - 
Tangible assets $1,155,726  $1,150,961  $1,028,380 
             
Common shares outstanding  7,101,851   7,131,186   7,264,282 
Tangible equity to tangible assets  9.48%  9.59%  10.32%
Book value per common share $15.88  $15.93  $15.05 
Tangible book value per common share  15.42   15.47   14.62 
             


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

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