BATON ROUGE, La., Oct. 25, 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 September 30, 2017. The
Company reported net income of $2.1 million, or $0.24 per diluted share for the third quarter of 2017, compared to $1.9 million, or
$0.22 per diluted share for the quarter ended June 30, 2017, and $2.0 million, or $0.29 per diluted share, for the quarter ended
September 30, 2016.
On a non-GAAP basis, core earnings per share in the third quarter of 2017 was $0.29 per basic and diluted share
(refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics).
The Company’s balance sheet and statement of income as of and for the three and nine months ended September 30,
2017 include the impact of the Company’s acquisition of Citizens Bancshares, Inc. (“Citizens”), which was completed on July 1,
2017. As of the acquisition date, Citizens had approximately $250 million in total assets, including $130 million in loans, and
approximately $212 million in deposits. The assets acquired and liabilities assumed have been recorded at fair value and are
subject to change pending finalization of all valuations.
Investar Holding Corporation President and Chief Executive Officer John D’Angelo said:
“The third quarter was an exciting quarter for Investar. Following the acquisition of Citizens Bancshares, Inc.
and its wholly-owned subsidiary, Citizens Bank on July 1, 2017, our operating teams, including our new Investar family members from
Evangeline Parish, worked diligently to successfully integrate the former Citizens Bank, while continuing to provide outstanding
customer service. Working together to create synergies promptly after completing a merger is important to our earnings success.
This is the first quarter of operations following the Citizens acquisition and the results reflect the positive effect of the
acquisition on our balance sheet and income statement. We are pleased with the results and expect to recognize additional benefits
from the acquisition going into the next quarter.
We also announced the acquisition of BOJ Bancshares, Inc., the parent company for The Highlands Bank, in
Jackson, Louisiana, which we expect to be completed by the end of the fourth quarter of 2017. The acquisition of The Highlands Bank
fits our strategy of expansion through extensions of our existing markets. We believe this limits integration risk and allows us to
continue to build our brand in existing and surrounding markets. We also believe that the acquisition further positions us to grow
the franchise and increase long-term shareholder value. Both we and The Highlands Bank are customer service-focused community banks
and look forward to welcoming the customers and employees of The Highlands Bank to the Investar family.
In addition to growth by acquisition, Investar continued to bolster its teams in the third quarter with the
addition of four commercial lenders in the Baton Rouge, New Orleans and Lafayette markets, as well as a Community Development
Officer in the New Orleans market, and two Treasury Management Sales Officers in the New Orleans and Lafayette markets. We look
forward to the knowledge and experience brought to Investar by these team members, as well as the growth in business relationships
with our customers.”
Third Quarter Highlights
- Total revenues, or interest and noninterest income, for the quarter ended September 30, 2017 totaled $15.6 million, an
increase of $3.0 million, or 23.4%, compared to June 30, 2017, and an increase of $3.6 million, or 29.8%, compared to
September 30, 2016.
- Total assets increased to $1.5 billion at September 30, 2017, compared to $1.2 billion at both June 30, 2017 and
September 30, 2016.
- Total loans increased $177.6 million, or 19%, to $1.1 billion at September 30, 2017, compared to $933.0 million at
June 30, 2017. Excluding the loans acquired in the Citizens acquisition, or $124.4 million, total loans increased $53.2
million, or 5.7%, to $986.1 million at September 30, 2017, compared to $933.0 million at June 30, 2017.
- The business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and
commercial and industrial loans, was $342.6 million at September 30, 2017, an increase of $58.5 million, or 20.6%, compared
to the business lending portfolio of $284.1 million at June 30, 2017, and an increase of $92.3 million, or 36.9%, compared
to the business lending portfolio of $250.3 million at September 30, 2016.
- Nonperforming loans decreased to 0.20% at September 30, 2017, compared to 1.06% at September 30, 2016.
- Total interest income increased $2.6 million, or 21.9%, for the quarter ended September 30, 2017, compared to the
quarter ended June 30, 2017, and increased $3.5 million, or 31.4%, compared to the quarter ended September 30,
2016.
- Net interest margin increased twelve basis points to 3.40% for the three months ended September 30, 2017, compared to
3.28% for the three months ended June 30, 2017, and increased seventeen basis points from 3.23% for the three months ended
September 30, 2016.
- Cost of deposits decreased seven basis points to 0.91% for the three months ended September 30, 2017, compared to 0.98%
for both of the three month periods ended June 30, 2017 and September 30, 2016.
- The Company successfully completed the conversion of branch and operating systems associated with the Citizens acquisition
during the quarter.
- The dividend payout ratio increased to 12.26% for the quarter ended September 30, 2017, compared to 9.94% for the
quarter ended June 30, 2017 and 3.81% compared to the quarter ended September 30, 2016.
- The Company repurchased 12,056 shares of its common stock through its stock repurchase program at an average price of $21.89
during the quarter ended September 30, 2017.
- The Company announced it has entered into a definitive agreement (the “Agreement”) to acquire BOJ Bancshares, Inc. (“BOJ”)
and its wholly owned subsidiary, The Highlands Bank, in Jackson, Louisiana. The agreement provides for consideration to be paid
to the shareholders of BOJ in the form of cash and shares of the Company’s common stock. BOJ shareholders will be entitled to
receive an aggregate amount of cash consideration equal to $3.95 million and an aggregate of 799,559 shares of the Company’s
common stock, subject to certain adjustments. Assuming no adjustments to the merger consideration under the terms of the
Agreement, the transaction is valued at approximately $22.78 million based upon the closing price of Investar’s common stock of
$23.55 on October 17, 2017. It is expected that shareholders of BOJ will own approximately 8% of the combined company following
the acquisition.
Loans
Total loans were $1.1 billion at September 30, 2017, an increase of $177.6 million, or 19.0%, compared to June
30, 2017, and an increase of $263.7 million, or 31.1%, compared to September 30, 2016. Included in total loans at September 30,
2017 is $124.4 million, or 11.2% of the total loan portfolio, of loans acquired from Citizens. Exclusive of acquired loans, total
loans at September 30, 2017 increased $53.2 million, or 5.7%, compared to June 30, 2017, and $139.3 million, or 16.4%, compared to
September 30, 2016.
The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated
(dollars in thousands).
| |
|
|
|
|
|
|
|
Linked Quarter
Change |
|
Year/Year Change |
|
Percentage of Total
Loans |
| |
|
9/30/2017 |
|
6/30/2017 |
|
9/30/2016 |
|
$ |
|
% |
|
$ |
|
% |
|
9/30/2017 |
|
9/30/2016 |
| Mortgage loans on real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Construction and development |
|
$ |
122,501 |
|
|
$ |
109,627 |
|
|
$ |
92,355 |
|
|
$ |
12,874 |
|
|
11.7 |
% |
|
$ |
30,146 |
|
|
32.6 |
% |
|
11.0 |
% |
|
10.9 |
% |
| 1-4 Family |
|
252,003 |
|
|
177,979 |
|
|
175,392 |
|
|
74,024 |
|
|
41.6 |
|
|
76,611 |
|
|
43.7 |
|
|
22.7 |
|
|
20.7 |
|
| Multifamily |
|
50,770 |
|
|
46,109 |
|
|
42,560 |
|
|
4,661 |
|
|
10.1 |
|
|
8,210 |
|
|
19.3 |
|
|
4.6 |
|
|
5.0 |
|
| Farmland |
|
14,130 |
|
|
8,006 |
|
|
8,281 |
|
|
6,124 |
|
|
76.5 |
|
|
5,849 |
|
|
70.6 |
|
|
1.3 |
|
|
1.0 |
|
| Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Owner-occupied |
|
217,369 |
|
|
185,226 |
|
|
172,952 |
|
|
32,143 |
|
|
17.4 |
|
|
44,417 |
|
|
25.7 |
|
|
19.6 |
|
|
20.5 |
|
| Nonowner-occupied |
|
245,053 |
|
|
223,297 |
|
|
192,270 |
|
|
21,756 |
|
|
9.7 |
|
|
52,783 |
|
|
27.5 |
|
|
22.0 |
|
|
22.7 |
|
| Commercial and industrial |
|
125,230 |
|
|
98,837 |
|
|
77,312 |
|
|
26,393 |
|
|
26.7 |
|
|
47,918 |
|
|
62.0 |
|
|
11.3 |
|
|
9.1 |
|
| Consumer |
|
83,465 |
|
|
83,879 |
|
|
85,706 |
|
|
(414 |
) |
|
(0.5 |
) |
|
(2,241 |
) |
|
(2.6 |
) |
|
7.5 |
|
|
10.1 |
|
| Total loans |
|
1,110,521 |
|
|
932,960 |
|
|
846,828 |
|
|
177,561 |
|
|
19.0 |
% |
|
263,693 |
|
|
31.1 |
% |
|
100 |
% |
|
100 |
% |
| Loans held for sale |
|
— |
|
|
— |
|
|
40,553 |
|
|
— |
|
|
— |
|
|
(40,553 |
) |
|
(100.0 |
) |
|
|
|
|
| Total gross loans |
|
$ |
1,110,521 |
|
|
$ |
932,960 |
|
|
$ |
887,381 |
|
|
$ |
177,561 |
|
|
19.0 |
% |
|
$ |
223,140 |
|
|
25.1 |
% |
|
|
|
|
One to four family loans were $252.0 million at September 30, 2017, an increase of $74.0 million, or 41.6%,
compared to $178.0 million at June 30, 2017, and an increase of $76.6 million, or 43.7%, compared to September 30, 2016. The
increase in the 1-4 family portfolio is primarily a result of the approximately $61.5 million 1-4 family loans acquired from
Citizens.
At September 30, 2017, 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 $342.6 million, an increase of $58.5
million, or 20.6%, compared to the business lending portfolio of $284.1 million at June 30, 2017, and an increase of $92.3 million,
or 36.9%, compared to the business lending portfolio of $250.3 million at September 30, 2016. Included in the business lending
portfolio is $34.0 million, or 9.9% of the total portfolio, of loans acquired from Citizens. The Company continues to focus on
relationship banking and growing our commercial loan portfolio.
Consumer loans, including indirect auto loans of $64.1 million, totaled $83.5 million at September 30, 2017, a
decrease of $0.4 million, or 0.5%, compared to $83.9 million, including indirect auto loans of $70.8 million, at June 30, 2017, and
a decrease of $42.8 million, or 33.9%, compared to $126.3 million at September 30, 2016. Excluding the consumer loans acquired from
Citizens, or $8.5 million, consumer loans decreased $8.9 million, or 10.6%, to $75.0 million at September 30, 2017. The decrease in
consumer loans, excluding acquired loans, when compared to the linked quarter is attributable to the scheduled paydowns of the
consumer loans.
Credit Quality
Nonperforming loans were $2.2 million, or 0.20% of total loans, at September 30, 2017, an increase of $1.0
million, or 86.5%, compared to $1.2 million, or 0.13% of total loans, at June 30, 2017, and a decrease of $6.8 million, or 75.7%,
compared to $9.0 million, or 1.06% of total loans, at September 30, 2016. The increase in nonperforming loans at September 30, 2017
compared to June 30, 2017 is mainly attributable to the Citizens acquisition. The decrease in nonperforming loans compared to
September 30, 2016 is mainly attributable to one $4.7 million owner-occupied commercial real estate relationship and one $2.7
million commercial and industrial loan relationship that were not performing at September 30, 2016.
Exclusive of acquired loans, the allowance for loan losses was $7.6 million, or 541.62% and 0.77% of
nonperforming loans and total loans, respectively, at September 30, 2017, compared to $7.3 million, or 627.63% and 0.78% of
nonperforming loans and total loans, respectively, at June 30, 2017, and $7.4 million, or 82.44% and 0.87% of nonperforming loans
and total loans, respectively, at September 30, 2016. The increase in the allowance as a percentage of nonperforming loans at
September 30, 2017 compared to September 30, 2016 is a result of the $6.8 million decrease in nonperforming loans discussed above.
The decrease in the allowance for loan losses as a percentage of total loans at September 30, 2017 compared to September 30, 2016
is due to an overall increase in the legacy portfolio of the Company of $139.3 million, or 16.4%, while the allowance for loan
losses increased $0.2 million, or 3.0%.
The provision for loan losses was $0.4 million for both the second and third quarters of 2017, a decrease of
$0.1 million compared to provision for loan losses of $0.5 million for the quarter ended September 30, 2016.
Management continues to monitor the Company’s loan portfolio for exposure to potential negative impacts of
suppressed oil and gas prices. We consider our direct exposure to the energy sector not to be significant, at approximately one
percent of the total loan portfolio at September 30, 2017. 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 September 30, 2017 were $1.1 billion, an increase of $206.5 million, or 23.1%, compared to
June 30, 2017, and an increase of $194.3 million, or 21.4%, compared to September 30, 2016. The Company acquired $212.2 million in
deposits from the Citizens acquisition. Exclusive of acquired deposits, total deposits decreased $5.6 million, or 0.6%, compared to
June 30, 2017, and decreased $17.9 million, or 2.0%, compared to September 30, 2016. The decrease in deposits is primarily due to a
decrease in time deposits of $8.5 million, or 2.1%, compared to June 30, 2017, and a decrease of $79.7 million, or 17%, compared to
September 30, 2016, resulting from the Bank’s strategy to decrease its dependence on non-retail certificates of deposit.
The following table sets forth the composition of the Company’s deposits as of the dates indicated (dollars in thousands).
| |
|
|
|
|
|
|
|
Linked Quarter
Change |
|
Year/Year Change |
|
Percentage of
Total Deposits |
| |
|
9/30/2017 |
|
6/30/2017 |
|
9/30/2016 |
|
$ |
|
% |
|
$ |
|
% |
|
9/30/2017 |
|
9/30/2016 |
Noninterest-bearing demand
deposits |
|
$ |
175,130 |
|
|
$ |
130,625 |
|
|
$ |
112,414 |
|
|
$ |
44,505 |
|
|
34.1 |
% |
|
$ |
62,716 |
|
|
55.8 |
% |
|
15.9 |
% |
|
12.4 |
% |
| NOW accounts |
|
192,503 |
|
|
171,244 |
|
|
150,551 |
|
|
21,259 |
|
|
12.4 |
|
|
41,952 |
|
|
27.9 |
|
|
17.5 |
|
|
16.6 |
|
| Money market deposit accounts |
|
147,096 |
|
|
143,957 |
|
|
123,487 |
|
|
3,139 |
|
|
2.2 |
|
|
23,609 |
|
|
19.1 |
|
|
13.3 |
|
|
13.6 |
|
| Savings accounts |
|
103,017 |
|
|
50,945 |
|
|
51,332 |
|
|
52,072 |
|
|
102.2 |
|
|
51,685 |
|
|
100.7 |
|
|
9.4 |
|
|
5.7 |
|
| Time deposits |
|
483,616 |
|
|
398,054 |
|
|
469,267 |
|
|
85,562 |
|
|
21.5 |
|
|
14,349 |
|
|
3.1 |
|
|
43.9 |
|
|
51.7 |
|
| Total deposits |
|
$ |
1,101,362 |
|
|
$ |
894,825 |
|
|
$ |
907,051 |
|
|
$ |
206,537 |
|
|
23.1 |
% |
|
$ |
194,311 |
|
|
21.4 |
% |
|
100.0 |
% |
|
100.0 |
% |
Financial Results for the Quarter Ended September 30, 2017
The financial results for the quarter ended September 30, 2017 reflect the acquisition of Citizens beginning
July 1, 2017. The acquisition of Citizens added three branch locations in Evangeline Parish with total assets of $250 million,
total loans of $130 million, and total deposits of $212 million. During the quarter ended September 30, 2017, the Company
recognized $0.8 million in expenses related to the acquisition of Citizens.
Net Interest Income
Net interest income for the third quarter of 2017 totaled $11.5 million, an increase of $2.2 million, or 24.0%,
compared to the second quarter of 2017, and an increase of $2.8 million, or 31.8%, compared to the third quarter of 2016. The
increase in net interest income was primarily driven by growth in loan and securities balances partially offset by an increase in
interest expense as we funded the increase in earning assets with increased deposits and borrowings. Net interest income for the
third quarter of 2017 increased $2.7 million and $0.8 million due to increases in the volume and yield, respectively, of
interest-earning assets, offset slightly by decreases of $0.4 million and $0.3 million due to the increases in the volume and rate,
respectively, of interest-bearing liabilities compared to the third quarter of 2016.
The Company’s net interest margin was 3.40% for the quarter ended September 30, 2017 compared to 3.28% for the
quarter ended June 30, 2017 and 3.23% for the quarter ended September 30, 2016. The yield on interest-earning assets was 4.26% for
the quarter ended September 30, 2017 compared to 4.18% for the quarter ended June 30, 2017 and 4.06% for the quarter ended
September 30, 2016.
The cost of deposits decreased seven basis points to 0.91% for the quarter ended September 30, 2017 compared to
0.98% for both the quarters ended June 30, 2017 and September 30, 2016. The decrease in the cost of deposits when compared to the
quarters ended June 30, 2017 and September 30, 2016 is a result of a decrease in the cost of savings deposits and time deposits.
The overall costs of funds for the quarter ended September 30, 2017 decreased five basis points to 1.05% compared to 1.10% for the
quarter ended June 30, 2017 and increased seven basis points compared to 0.98% for the quarter ended September 30, 2016. The
decrease in the cost of deposits and cost of funds at September 30, 2017 compared to June 30, 2017 is mainly a result of lower cost
deposits and long term borrowings acquired from Citizens. The increase in the cost of funds at September 30, 2017 compared to
September 30, 2016 is mainly attributable to the increase in long term borrowings resulting from the Company’s issuance and sale,
on March 24, 2017, of $18.6 million in aggregate principal amount of its 6.00% Fixed-to-Floating Rate Subordinated Notes due in
2027. The Company used the net proceeds from the debt issuance to fund a portion of the acquisition of Citizens Bancshares, Inc.
and its wholly-owned subsidiary, Citizens Bank.
Noninterest Income
Noninterest income for the third quarter of 2017 totaled $1.2 million, an increase of $0.4 million, or 45.7%,
compared to the second quarter of 2017, and an increase of $0.1 million, or 13.4%, compared to the third quarter of 2016. The
increase in noninterest income when compared to the quarter ended June 30, 2017 is due to a $0.2 million increase in both service
charges on deposit accounts and gain on sale of fixed assets, offset by a $0.1 million decrease in the gain on sale of investment
securities.
Noninterest Expense
Noninterest expense for the third quarter of 2017 totaled $9.1 million, an increase of $2.2 million, or 31.7%,
compared to the second quarter of 2017, and an increase of $2.6 million, or 39.3%, compared to the third quarter of 2016. The
increase in noninterest expense compared to the quarters ended June 30, 2017 and September 30, 2016 is mainly attributable to the
increases in both salaries and employee benefits and acquisition expense. The increase in salaries and employee benefits is a
result of the increase in employees following the Citizens acquisition, as well as the addition of four commercial lenders in the
Baton Rouge, New Orleans and Lafayette markets, and a Community Development Officer and Treasury Management Sales Officer in the
New Orleans market during the quarter ended September 30, 2017. The increase in acquisition expense was a result of the Citizens
acquisition that was completed on July 1, 2017.
Noninterest expense for the third quarter of 2017 includes a full quarter of expenses of approximately $0.4
million for both de novo branches, one in each of the Baton Rouge (Gonzales) and New Orleans (Elmwood) markets, that were opened at
the end of the second quarter of 2017.
Basic Earnings Per Share and Diluted Earnings Per Share
The Company reported both basic and diluted earnings per share of $0.24 for the three months ended September 30,
2017, a decrease of $0.05 compared to basic and diluted earnings per share of $0.29 for the three months ended September 30, 2016.
The decrease in both basic and diluted earnings per share is attributable to the Company’s issuance of approximately 1.6 million
common shares as part of a public offering on March 22, 2017, as well as the $0.8 million in acquisition expenses related to the
Citizens acquisition.
Taxes
The Company recorded income tax expense of $1.0 million for the quarter ended September 30, 2017, which equates
to an effective tax rate of 32.6%.
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 15 full service banking offices located throughout its market. At September 30, 2017, the
Company had 227 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,” “tangible book value per common share,” “core noninterest
income,” “core earnings before noninterest expense,” “core noninterest expense,” “core earnings before income tax expense,” “core
income tax expense,” “core earnings,” “core efficiency ratio,” “core return on average assets,” “core return on average equity,”
“core basic earnings per share,” and “core diluted earnings per 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;
- concentration of credit exposure;
- the ability to effectively integrate employees, customers, operations and branches from our recent acquisition of Citizens;
and
- the satisfaction of the conditions to closing the pending acquisition of BOJ Bancshares, Inc. and the ability to subsequently
integrate it effectively.
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 in the “Special Note Regarding Forward-Looking Statements” in Item 7. “Management’s
Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Annual Report on Form 10-K for the year
ended December 31, 2016, filed with the Securities and Exchange Commission.
For further information contact:
Investar Holding Corporation
Chris Hufft
Chief Financial Officer
(225) 227-2215
Chris.Hufft@investarbank.com
| INVESTAR HOLDING CORPORATION |
| SUMMARY FINANCIAL INFORMATION |
| (Amounts in thousands, except share
data) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
As of and for the three months
ended |
| |
|
9/30/2017 |
|
6/30/2017 |
|
9/30/2016 |
|
Linked Quarter |
|
Year/Year |
| EARNINGS DATA |
|
|
|
|
|
|
|
|
|
|
| Total interest income |
|
$ |
14,442 |
|
|
$ |
11,844 |
|
|
$ |
10,993 |
|
|
21.9 |
% |
|
31.4 |
% |
| Total interest expense |
|
2,904 |
|
|
2,542 |
|
|
2,240 |
|
|
14.2 |
|
|
29.6 |
|
| Net interest income |
|
11,538 |
|
|
9,302 |
|
|
8,753 |
|
|
24.0 |
|
|
31.8 |
|
| Provision for loan losses |
|
420 |
|
|
375 |
|
|
450 |
|
|
12.0 |
|
|
(6.7 |
) |
| Total noninterest income |
|
1,167 |
|
|
801 |
|
|
1,029 |
|
|
45.7 |
|
|
13.4 |
|
| Total noninterest expense |
|
9,122 |
|
|
6,928 |
|
|
6,548 |
|
|
31.7 |
|
|
39.3 |
|
| Income before income taxes |
|
3,163 |
|
|
2,800 |
|
|
2,784 |
|
|
13.0 |
|
|
13.6 |
|
| Income tax expense |
|
1,032 |
|
|
877 |
|
|
747 |
|
|
17.7 |
|
|
38.2 |
|
| Net income |
|
$ |
2,131 |
|
|
$ |
1,923 |
|
|
$ |
2,037 |
|
|
10.8 |
|
|
4.6 |
|
| |
|
|
|
|
|
|
|
|
|
|
| AVERAGE BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
1,437,929 |
|
|
$ |
1,198,878 |
|
|
$ |
1,134,591 |
|
|
19.9 |
% |
|
26.7 |
% |
| Total interest-earning assets |
|
1,346,455 |
|
|
1,137,752 |
|
|
1,075,145 |
|
|
18.3 |
|
|
25.2 |
|
| Total loans |
|
1,073,800 |
|
|
914,265 |
|
|
840,028 |
|
|
17.4 |
|
|
27.8 |
|
| Total gross loans |
|
1,073,800 |
|
|
914,265 |
|
|
874,272 |
|
|
17.4 |
|
|
22.8 |
|
| Total interest-bearing deposits |
|
927,014 |
|
|
745,647 |
|
|
784,591 |
|
|
24.3 |
|
|
18.2 |
|
| Total interest-bearing liabilities |
|
1,101,112 |
|
|
922,780 |
|
|
905,521 |
|
|
19.3 |
|
|
21.6 |
|
| Total deposits |
|
1,100,226 |
|
|
862,361 |
|
|
887,327 |
|
|
27.6 |
|
|
24.0 |
|
| Total stockholders’ equity |
|
152,186 |
|
|
149,713 |
|
|
113,056 |
|
|
1.7 |
|
|
34.6 |
|
| |
|
|
|
|
|
|
|
|
|
|
| PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
| Earnings: |
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share |
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
$ |
0.29 |
|
|
9.1 |
% |
|
(17.2 |
)% |
| Diluted earnings per share |
|
0.24 |
|
|
0.22 |
|
|
0.29 |
|
|
9.1 |
|
|
(17.2 |
) |
| Core Earnings(1): |
|
|
|
|
|
|
|
|
|
|
| Core basic earnings per share(1) |
|
0.29 |
|
|
0.22 |
|
|
0.27 |
|
|
31.8 |
|
|
7.4 |
|
| Core diluted earnings per share(1) |
|
0.29 |
|
|
0.22 |
|
|
0.27 |
|
|
31.8 |
|
|
7.4 |
|
| Book value per share |
|
17.56 |
|
|
17.11 |
|
|
15.93 |
|
|
2.6 |
|
|
10.2 |
|
| Tangible book value per share(1) |
|
16.04 |
|
|
16.74 |
|
|
15.47 |
|
|
(4.2 |
) |
|
3.7 |
|
| Common shares outstanding |
|
8,704,562 |
|
|
8,815,119 |
|
|
7,131,186 |
|
|
(1.3 |
) |
|
22.1 |
|
| |
|
|
|
|
|
|
|
|
|
|
| PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
|
0.59 |
% |
|
0.64 |
% |
|
0.71 |
% |
|
(7.8 |
)% |
|
(16.9 |
)% |
| Core return on average assets(1) |
|
0.70 |
|
|
0.64 |
|
|
0.66 |
|
|
9.4 |
|
|
6.1 |
|
| Return on average equity |
|
5.55 |
|
|
5.15 |
|
|
7.15 |
|
|
7.8 |
|
|
(22.4 |
) |
| Core return on average equity(1) |
|
6.61 |
|
|
5.11 |
|
|
6.63 |
|
|
29.4 |
|
|
(0.3 |
) |
| Net interest margin |
|
3.40 |
|
|
3.28 |
|
|
3.23 |
|
|
3.7 |
|
|
5.3 |
|
| Net interest income to average assets |
|
3.18 |
|
|
3.11 |
|
|
3.06 |
|
|
2.3 |
|
|
3.9 |
|
| Noninterest expense to average assets |
|
2.52 |
|
|
2.32 |
|
|
2.29 |
|
|
8.6 |
|
|
10.0 |
|
| Efficiency ratio(2) |
|
71.80 |
|
|
68.57 |
|
|
66.94 |
|
|
4.7 |
|
|
7.3 |
|
| Core efficiency ratio(1) |
|
66.49 |
|
|
68.46 |
|
|
68.37 |
|
|
(2.9 |
) |
|
(2.7 |
) |
| Dividend payout ratio |
|
12.26 |
|
|
9.94 |
|
|
3.81 |
|
|
23.3 |
|
|
221.8 |
|
| Net charge-offs to average loans |
|
0.01 |
|
|
0.03 |
|
|
0.02 |
|
|
(66.7 |
) |
|
(50.0 |
) |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (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 |
| |
|
9/30/2017 |
|
6/30/2017 |
|
9/30/2016 |
|
Linked Quarter |
|
Year/Year |
| ASSET QUALITY RATIOS |
|
|
|
|
|
|
|
|
|
|
| Nonperforming assets to total assets |
|
0.41 |
% |
|
0.41 |
% |
|
0.80 |
% |
|
— |
% |
|
(48.8 |
)% |
| Nonperforming loans to total loans |
|
0.20 |
|
|
0.13 |
|
|
1.06 |
|
|
53.8 |
|
|
(81.1 |
) |
Allowance for loan losses to total loans,
excluding acquired loans |
|
0.77 |
|
|
0.78 |
|
|
0.87 |
|
|
(1.3 |
) |
|
(11.5 |
) |
Allowance for loan losses to nonperforming loans,
excluding acquired loans |
|
541.62 |
|
|
627.63 |
|
|
82.4 |
|
|
(13.7 |
) |
|
557.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
| CAPITAL RATIOS |
|
|
|
|
|
|
|
|
|
|
| Investar Holding Corporation: |
|
|
|
|
|
|
|
|
|
|
| Total equity to total assets |
|
10.35 |
% |
|
12.30 |
% |
|
9.84 |
% |
|
(15.9 |
)% |
|
5.2 |
% |
| Tangible equity to tangible assets(1) |
|
9.54 |
|
|
12.07 |
|
|
9.59 |
|
|
(21.0 |
) |
|
(0.5 |
) |
| Tier 1 leverage ratio |
|
10.13 |
|
|
12.71 |
|
|
10.10 |
|
|
(20.3 |
) |
|
0.3 |
|
| Common equity tier 1 capital ratio(2) |
|
11.86 |
|
|
14.71 |
|
|
11.02 |
|
|
(19.4 |
) |
|
7.6 |
|
| Tier 1 capital ratio(2) |
|
12.15 |
|
|
15.05 |
|
|
11.37 |
|
|
(19.3 |
) |
|
6.9 |
|
| Total capital ratio(2) |
|
14.32 |
|
|
17.57 |
|
|
12.11 |
|
|
(18.5 |
) |
|
18.2 |
|
| Investar Bank: |
|
|
|
|
|
|
|
|
|
|
| Tier 1 leverage ratio |
|
11.20 |
|
|
13.96 |
|
|
9.94 |
|
|
(19.8 |
) |
|
12.7 |
|
| Common equity tier 1 capital ratio(2) |
|
13.46 |
|
|
16.53 |
|
|
11.19 |
|
|
(18.6 |
) |
|
20.3 |
|
| Tier 1 capital ratio(2) |
|
13.46 |
|
|
16.53 |
|
|
11.19 |
|
|
(18.6 |
) |
|
20.3 |
|
| Total capital ratio(2) |
|
14.10 |
|
|
17.26 |
|
|
11.93 |
|
|
(18.3 |
) |
|
18.2 |
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| (1) Non-GAAP financial measure. See reconciliation. |
| (2) Estimated for September 30, 2017 |
| |
| |
| INVESTAR HOLDING CORPORATION |
| CONSOLIDATED BALANCE SHEETS |
| (Amounts in thousands, except share
data) |
| (Unaudited) |
| |
|
|
|
|
|
|
| |
|
September 30,
2017 |
|
June 30,
2017 |
|
September 30,
2016 |
| ASSETS |
|
|
|
|
|
|
| Cash and due from banks |
|
$ |
17,942 |
|
|
$ |
11,720 |
|
|
$ |
10,172 |
|
| Interest-bearing balances due from other banks |
|
30,566 |
|
|
23,238 |
|
|
35,811 |
|
| Federal funds sold |
|
— |
|
|
3 |
|
|
172 |
|
| Cash and cash equivalents |
|
48,508 |
|
|
34,961 |
|
|
46,155 |
|
| |
|
|
|
|
|
|
Available for sale securities at fair value (amortized cost of $228,980,
$185,121, and $147,609, respectively) |
|
227,562 |
|
|
183,584 |
|
|
148,981 |
|
Held to maturity securities at amortized cost (estimated fair value of $19,311,
$19,418, and $21,625, respectively) |
|
19,306 |
|
|
19,460 |
|
|
21,454 |
|
| Loans held for sale |
|
— |
|
|
— |
|
|
40,553 |
|
Loans, net of allowance for loan losses of $7,605, $7,320, and $7,383,
respectively |
|
1,102,916 |
|
|
925,640 |
|
|
839,445 |
|
| Other equity securities |
|
7,744 |
|
|
7,025 |
|
|
7,388 |
|
Bank premises and equipment, net of accumulated depreciation of $7,362,
$7,497, and $6,380, respectively |
|
33,705 |
|
|
31,510 |
|
|
31,835 |
|
| Other real estate owned, net |
|
3,830 |
|
|
3,830 |
|
|
279 |
|
| Accrued interest receivable |
|
4,147 |
|
|
3,197 |
|
|
3,081 |
|
| Deferred tax asset |
|
2,604 |
|
|
2,343 |
|
|
1,384 |
|
| Goodwill and other intangible assets, net |
|
13,271 |
|
|
3,213 |
|
|
3,244 |
|
| Bank-owned life insurance |
|
8,140 |
|
|
7,297 |
|
|
7,150 |
|
| Other assets |
|
4,690 |
|
|
3,466 |
|
|
3,256 |
|
| Total assets |
|
$ |
1,476,423 |
|
|
$ |
1,225,526 |
|
|
$ |
1,154,205 |
|
| |
|
|
|
|
|
|
| LIABILITIES |
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
| Noninterest-bearing |
|
$ |
175,130 |
|
|
$ |
130,625 |
|
|
$ |
112,414 |
|
| Interest-bearing |
|
926,232 |
|
|
764,200 |
|
|
794,637 |
|
| Total deposits |
|
1,101,362 |
|
|
894,825 |
|
|
907,051 |
|
| Advances from Federal Home Loan Bank |
|
162,700 |
|
|
109,285 |
|
|
88,943 |
|
| Repurchase agreements |
|
24,892 |
|
|
36,745 |
|
|
23,554 |
|
| Subordinated debt |
|
18,157 |
|
|
18,145 |
|
|
— |
|
| Junior subordinated debt |
|
3,609 |
|
|
3,609 |
|
|
3,609 |
|
| Accrued taxes and other liabilities |
|
12,827 |
|
|
12,121 |
|
|
17,472 |
|
| Total liabilities |
|
1,323,547 |
|
|
1,074,730 |
|
|
1,040,629 |
|
| |
|
|
|
|
|
|
| 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;
8,704,562, 8,815,119, and 7,131,186 shares outstanding, respectively |
|
8,705 |
|
|
8,815 |
|
|
7,131 |
|
| Surplus |
|
113,458 |
|
|
113,246 |
|
|
81,827 |
|
| Retained earnings |
|
31,508 |
|
|
29,644 |
|
|
24,465 |
|
| Accumulated other comprehensive loss |
|
(795 |
) |
|
(909 |
) |
|
153 |
|
| Total stockholders’ equity |
|
152,876 |
|
|
150,796 |
|
|
113,576 |
|
| Total liabilities and stockholders’
equity |
|
$ |
1,476,423 |
|
|
$ |
1,225,526 |
|
|
$ |
1,154,205 |
|
| |
| |
| INVESTAR HOLDING CORPORATION |
| CONSOLIDATED STATEMENTS OF
INCOME |
| (Amounts in thousands, except share
data) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
For the three months ended |
|
For the nine months ended |
| |
|
September 30,
2017 |
|
June 30, 2017 |
|
September 30,
2016 |
|
September 30,
2017 |
|
September 30,
2016 |
| INTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
| Interest and fees on loans |
|
$ |
12,893 |
|
|
$ |
10,559 |
|
|
$ |
10,011 |
|
|
$ |
33,456 |
|
|
$ |
29,277 |
|
| Interest on investment securities |
|
1,399 |
|
|
1,199 |
|
|
920 |
|
|
3,627 |
|
|
2,667 |
|
| Other interest income |
|
150 |
|
|
86 |
|
|
62 |
|
|
296 |
|
|
146 |
|
| Total interest income |
|
14,442 |
|
|
11,844 |
|
|
10,993 |
|
|
37,379 |
|
|
32,090 |
|
| |
|
|
|
|
|
|
|
|
|
|
| INTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
| Interest on deposits |
|
2,137 |
|
|
1,827 |
|
|
1,934 |
|
|
5,817 |
|
|
5,212 |
|
| Interest on borrowings |
|
767 |
|
|
715 |
|
|
306 |
|
|
1,862 |
|
|
920 |
|
| Total interest expense |
|
2,904 |
|
|
2,542 |
|
|
2,240 |
|
|
7,679 |
|
|
6,132 |
|
| Net interest income |
|
11,538 |
|
|
9,302 |
|
|
8,753 |
|
|
29,700 |
|
|
25,958 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Provision for loan losses |
|
420 |
|
|
375 |
|
|
450 |
|
|
1,145 |
|
|
1,704 |
|
| Net interest income after provision for loan losses |
|
11,118 |
|
|
8,927 |
|
|
8,303 |
|
|
28,555 |
|
|
24,254 |
|
| |
|
|
|
|
|
|
|
|
|
|
| NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
| Service charges on deposit accounts |
|
281 |
|
|
96 |
|
|
79 |
|
|
474 |
|
|
264 |
|
| Gain on sale of investment securities, net |
|
27 |
|
|
109 |
|
|
204 |
|
|
242 |
|
|
428 |
|
| Gain on sale of fixed assets, net |
|
160 |
|
|
1 |
|
|
— |
|
|
184 |
|
|
1,252 |
|
| Gain (loss) on sale of other real estate owned, net |
|
37 |
|
|
(10 |
) |
|
— |
|
|
32 |
|
|
11 |
|
| Gain on sale of loans, net |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
313 |
|
| Servicing fees and fee income on serviced loans |
|
352 |
|
|
378 |
|
|
510 |
|
|
1,153 |
|
|
1,638 |
|
| Other operating income |
|
310 |
|
|
227 |
|
|
236 |
|
|
768 |
|
|
666 |
|
| Total noninterest income |
|
1,167 |
|
|
801 |
|
|
1,029 |
|
|
2,853 |
|
|
4,572 |
|
| Income before noninterest expense |
|
12,285 |
|
|
9,728 |
|
|
9,332 |
|
|
31,408 |
|
|
28,826 |
|
| |
|
|
|
|
|
|
|
|
|
|
| NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
| Depreciation and amortization |
|
542 |
|
|
391 |
|
|
371 |
|
|
1,309 |
|
|
1,110 |
|
| Salaries and employee benefits |
|
5,136 |
|
|
4,109 |
|
|
3,945 |
|
|
13,195 |
|
|
11,708 |
|
| Occupancy |
|
317 |
|
|
245 |
|
|
265 |
|
|
826 |
|
|
743 |
|
| Data processing |
|
446 |
|
|
355 |
|
|
374 |
|
|
1,169 |
|
|
1,115 |
|
| Marketing |
|
124 |
|
|
119 |
|
|
102 |
|
|
271 |
|
|
316 |
|
| Professional fees |
|
263 |
|
|
231 |
|
|
312 |
|
|
726 |
|
|
966 |
|
| Customer reimbursements |
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
584 |
|
| Acquisition expenses |
|
824 |
|
|
80 |
|
|
— |
|
|
1,049 |
|
|
— |
|
| Other operating expenses |
|
1,470 |
|
|
1,398 |
|
|
1,179 |
|
|
4,189 |
|
|
3,494 |
|
| Total noninterest expense |
|
9,122 |
|
|
6,928 |
|
|
6,548 |
|
|
22,734 |
|
|
20,036 |
|
| Income before income tax expense |
|
3,163 |
|
|
2,800 |
|
|
2,784 |
|
|
8,674 |
|
|
8,790 |
|
| Income tax expense |
|
1,032 |
|
|
877 |
|
|
747 |
|
|
2,756 |
|
|
2,758 |
|
| Net income |
|
$ |
2,131 |
|
|
$ |
1,923 |
|
|
$ |
2,037 |
|
|
$ |
5,918 |
|
|
$ |
6,032 |
|
| |
|
|
|
|
|
|
|
|
|
|
| EARNINGS PER SHARE |
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share |
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
$ |
0.29 |
|
|
$ |
0.72 |
|
|
$ |
0.85 |
|
| Diluted earnings per share |
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
$ |
0.29 |
|
|
$ |
0.71 |
|
|
$ |
0.84 |
|
| Cash dividends declared per common share |
|
$ |
0.03 |
|
|
$ |
0.02 |
|
|
$ |
0.01 |
|
|
$ |
0.07 |
|
|
$ |
0.03 |
|
| |
| |
| INVESTAR HOLDING CORPORATION |
| EARNINGS PER SHARE |
| (Amounts in thousands, except share
data) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
For the three months ended |
|
For the nine months ended |
| |
|
September 30,
2017 |
|
June 30, 2017 |
|
September 30,
2016 |
|
September 30,
2017 |
|
September 30,
2016 |
| Net income |
|
$ |
2,131 |
|
|
$ |
1,923 |
|
|
$ |
2,037 |
|
|
$ |
5,918 |
|
|
$ |
6,032 |
|
Weighted average number of common shares outstanding
used in computation of basic earnings per share |
|
8,702,559 |
|
|
8,685,980 |
|
|
7,059,953 |
|
|
8,203,645 |
|
|
7,137,398 |
|
| Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|
| Restricted stock |
|
27,741 |
|
|
27,045 |
|
|
15,546 |
|
|
18,756 |
|
|
8,991 |
|
| Stock options |
|
46,632 |
|
|
43,640 |
|
|
15,369 |
|
|
10,572 |
|
|
14,920 |
|
| Stock warrants |
|
20,585 |
|
|
23,963 |
|
|
11,575 |
|
|
47,022 |
|
|
11,360 |
|
Weighted average number of common shares outstanding
plus effect of dilutive securities used in computation of
diluted earnings per share |
|
8,797,517 |
|
|
8,780,628 |
|
|
7,102,443 |
|
|
8,279,995 |
|
|
7,172,669 |
|
| Basic earnings per share |
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
$ |
0.29 |
|
|
$ |
0.72 |
|
|
$ |
0.85 |
|
| Diluted earnings per share |
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
$ |
0.29 |
|
|
$ |
0.71 |
|
|
$ |
0.84 |
|
| |
| |
| INVESTAR HOLDING CORPORATION |
| CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST
EARNED AND YIELD ANALYSIS |
| (Amounts in thousands) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three months ended |
| |
|
September 30,
2017 |
|
June 30,
2017 |
|
September 30,
2016 |
| |
|
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 |
|
$ |
1,073,800 |
|
|
$ |
12,893 |
|
|
4.76 |
% |
|
$ |
914,265 |
|
|
$ |
10,559 |
|
|
4.63 |
% |
|
$ |
874,272 |
|
|
$ |
10,011 |
|
|
4.54 |
% |
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Taxable |
|
203,407 |
|
|
1,193 |
|
|
2.33 |
|
|
165,689 |
|
|
1,013 |
|
|
2.45 |
|
|
136,047 |
|
|
728 |
|
|
2.12 |
|
| Tax-exempt |
|
34,659 |
|
|
206 |
|
|
2.36 |
|
|
29,375 |
|
|
186 |
|
|
2.54 |
|
|
30,733 |
|
|
192 |
|
|
2.48 |
|
| Interest-bearing balances with banks |
|
34,589 |
|
|
150 |
|
|
1.72 |
|
|
28,423 |
|
|
86 |
|
|
1.21 |
|
|
34,093 |
|
|
62 |
|
|
0.72 |
|
| Total interest-earning assets |
|
1,346,455 |
|
|
14,442 |
|
|
4.26 |
|
|
1,137,752 |
|
|
11,844 |
|
|
4.18 |
|
|
1,075,145 |
|
|
10,993 |
|
|
4.06 |
|
| Cash and due from banks |
|
22,626 |
|
|
|
|
|
|
8,213 |
|
|
|
|
|
|
7,138 |
|
|
|
|
|
| Intangible assets |
|
13,283 |
|
|
|
|
|
|
3,217 |
|
|
|
|
|
|
3,248 |
|
|
|
|
|
| Other assets |
|
63,007 |
|
|
|
|
|
|
56,919 |
|
|
|
|
|
|
56,273 |
|
|
|
|
|
| Allowance for loan losses |
|
(7,442 |
) |
|
|
|
|
|
(7,223 |
) |
|
|
|
|
|
(7,213 |
) |
|
|
|
|
| Total assets |
|
$ |
1,437,929 |
|
|
|
|
|
|
$ |
1,198,878 |
|
|
|
|
|
|
$ |
1,134,591 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand deposits |
|
$ |
337,846 |
|
|
$ |
604 |
|
|
0.71 |
|
|
$ |
291,902 |
|
|
$ |
524 |
|
|
0.72 |
|
|
$ |
262,841 |
|
|
$ |
433 |
|
|
0.65 |
|
| Savings deposits |
|
102,331 |
|
|
139 |
|
|
0.54 |
|
|
51,474 |
|
|
83 |
|
|
0.65 |
|
|
51,924 |
|
|
88 |
|
|
0.67 |
|
| Time deposits |
|
486,837 |
|
|
1,394 |
|
|
1.14 |
|
|
402,271 |
|
|
1,220 |
|
|
1.22 |
|
|
469,826 |
|
|
1,413 |
|
|
1.19 |
|
| Total interest-bearing deposits |
|
927,014 |
|
|
2,137 |
|
|
0.91 |
|
|
745,647 |
|
|
1,827 |
|
|
0.98 |
|
|
784,591 |
|
|
1,934 |
|
|
0.98 |
|
| Short-term borrowings |
|
122,456 |
|
|
367 |
|
|
1.19 |
|
|
137,848 |
|
|
350 |
|
|
1.02 |
|
|
98,286 |
|
|
237 |
|
|
0.96 |
|
| Long-term debt |
|
51,642 |
|
|
400 |
|
|
3.07 |
|
|
39,285 |
|
|
365 |
|
|
3.73 |
|
|
22,644 |
|
|
69 |
|
|
1.21 |
|
| Total interest-bearing liabilities |
|
1,101,112 |
|
|
2,904 |
|
|
1.05 |
|
|
922,780 |
|
|
2,542 |
|
|
1.10 |
|
|
905,521 |
|
|
2,240 |
|
|
0.98 |
|
| Noninterest-bearing deposits |
|
173,212 |
|
|
|
|
|
|
116,714 |
|
|
|
|
|
|
102,736 |
|
|
|
|
|
| Other liabilities |
|
11,419 |
|
|
|
|
|
|
9,671 |
|
|
|
|
|
|
13,278 |
|
|
|
|
|
| Stockholders’ equity |
|
152,186 |
|
|
|
|
|
|
149,713 |
|
|
|
|
|
|
113,056 |
|
|
|
|
|
| Total liability and stockholders’ equity |
|
$ |
1,437,929 |
|
|
|
|
|
|
$ |
1,198,878 |
|
|
|
|
|
|
$ |
1,134,591 |
|
|
|
|
|
| Net interest income/net interest margin |
|
|
|
$ |
11,538 |
|
|
3.40 |
% |
|
|
|
$ |
9,302 |
|
|
3.28 |
% |
|
|
|
$ |
8,753 |
|
|
3.23 |
% |
| |
| |
| INVESTAR HOLDING CORPORATION |
| CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST
EARNED AND YIELD ANALYSIS |
| (Amounts in thousands) |
| (Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the nine months ended |
| |
|
September 30,
2017 |
|
September 30,
2016 |
| |
|
Average
Balance |
|
Interest
Income/
Expense |
|
Yield/ Rate |
|
Average
Balance |
|
Interest
Income/
Expense |
|
Yield/ Rate |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Loans |
|
$ |
960,868 |
|
|
$ |
33,456 |
|
|
4.66 |
% |
|
$ |
853,116 |
|
|
$ |
29,277 |
|
|
4.57 |
% |
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Taxable |
|
173,273 |
|
|
3,044 |
|
|
2.35 |
|
|
125,982 |
|
|
2,172 |
|
|
2.30 |
|
| Tax-exempt |
|
31,540 |
|
|
583 |
|
|
2.47 |
|
|
25,920 |
|
|
495 |
|
|
2.54 |
|
| Interest-bearing balances with banks |
|
29,238 |
|
|
296 |
|
|
1.35 |
|
|
25,608 |
|
|
146 |
|
|
0.76 |
|
| Total interest-earning assets |
|
1,194,919 |
|
|
37,379 |
|
|
4.18 |
|
|
1,030,626 |
|
|
32,090 |
|
|
4.15 |
|
| Cash and due from banks |
|
13,180 |
|
|
|
|
|
|
7,335 |
|
|
|
|
|
| Intangible assets |
|
6,612 |
|
|
|
|
|
|
3,228 |
|
|
|
|
|
| Other assets |
|
58,401 |
|
|
|
|
|
|
54,478 |
|
|
|
|
|
| Allowance for loan losses |
|
(7,265 |
) |
|
|
|
|
|
(6,770 |
) |
|
|
|
|
| Total assets |
|
$ |
1,265,847 |
|
|
|
|
|
|
$ |
1,088,897 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand |
|
$ |
307,369 |
|
|
$ |
1,616 |
|
|
0.70 |
|
|
$ |
249,960 |
|
|
$ |
1,205 |
|
|
0.64 |
|
| Savings deposits |
|
69,194 |
|
|
308 |
|
|
0.60 |
|
|
52,596 |
|
|
265 |
|
|
0.67 |
|
| Time deposits |
|
440,956 |
|
|
3,893 |
|
|
1.18 |
|
|
431,328 |
|
|
3,742 |
|
|
1.16 |
|
| Total interest-bearing deposits |
|
817,519 |
|
|
5,817 |
|
|
0.95 |
|
|
733,884 |
|
|
5,212 |
|
|
0.95 |
|
| Short-term borrowings |
|
127,081 |
|
|
1,000 |
|
|
1.05 |
|
|
111,418 |
|
|
710 |
|
|
0.85 |
|
| Long-term debt |
|
37,479 |
|
|
862 |
|
|
3.08 |
|
|
24,243 |
|
|
210 |
|
|
1.15 |
|
| Total interest-bearing liabilities |
|
982,079 |
|
|
7,679 |
|
|
1.05 |
|
|
869,545 |
|
|
6,132 |
|
|
0.94 |
|
| Noninterest-bearing deposits |
|
133,675 |
|
|
|
|
|
|
95,225 |
|
|
|
|
|
| Other liabilities |
|
10,166 |
|
|
|
|
|
|
12,135 |
|
|
|
|
|
| Stockholders’ equity |
|
139,927 |
|
|
|
|
|
|
111,992 |
|
|
|
|
|
| Total liability and stockholders’ equity |
|
$ |
1,265,847 |
|
|
|
|
|
|
$ |
1,088,897 |
|
|
|
|
|
| Net interest income/net interest margin |
|
|
|
$ |
29,700 |
|
|
3.32 |
% |
|
|
|
$ |
25,958 |
|
|
3.36 |
% |
| |
| |
| INVESTAR HOLDING CORPORATION |
| RECONCILIATION OF NON GAAP FINANCIAL
MEASURES |
| (Amounts in thousands, except share
data) |
| (Unaudited) |
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
September 30,
2017 |
|
June 30,
2017 |
|
September 30,
2016 |
| Tangible common equity |
|
|
|
|
|
|
| Total stockholders’ equity |
|
$ |
152,876 |
|
|
$ |
150,796 |
|
|
$ |
113,576 |
|
| Adjustments: |
|
|
|
|
|
|
| Goodwill |
|
11,357 |
|
|
2,684 |
|
|
2,684 |
|
| Core deposit intangible |
|
1,814 |
|
|
429 |
|
|
460 |
|
| Trademark intangible |
|
100 |
|
|
100 |
|
|
100 |
|
| Tangible common equity |
|
$ |
139,605 |
|
|
$ |
147,583 |
|
|
$ |
110,332 |
|
| Tangible assets |
|
|
|
|
|
|
| Total assets |
|
$ |
1,476,423 |
|
|
$ |
1,225,526 |
|
|
$ |
1,154,205 |
|
| Adjustments: |
|
|
|
|
|
|
| Goodwill |
|
11,357 |
|
|
2,684 |
|
|
2,684 |
|
| Core deposit intangible |
|
1,814 |
|
|
429 |
|
|
460 |
|
| Trademark intangible |
|
100 |
|
|
100 |
|
|
100 |
|
| Tangible assets |
|
$ |
1,463,152 |
|
|
$ |
1,222,313 |
|
|
$ |
1,150,961 |
|
| |
|
|
|
|
|
|
| Common shares outstanding |
|
8,704,562 |
|
|
8,815,119 |
|
|
7,131,186 |
|
| Tangible equity to tangible assets |
|
9.54 |
% |
|
12.07 |
% |
|
9.59 |
% |
| Book value per common share |
|
$ |
17.56 |
|
|
$ |
17.11 |
|
|
$ |
15.93 |
|
| Tangible book value per common share |
|
16.04 |
|
|
16.74 |
|
|
15.47 |
|
| |
| |
| INVESTAR HOLDING CORPORATION |
| RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES |
| (Amounts in thousands, except share
data) |
| (Unaudited) |
| |
|
|
|
|
|
|
| |
|
Three months ended |
| |
|
September 30, 2017 |
|
June 30, 2017 |
|
September 30, 2016 |
| Net interest income |
(a) |
$ |
11,538 |
|
|
$ |
9,302 |
|
|
$ |
8,753 |
|
| Provision for loan losses |
|
420 |
|
|
375 |
|
|
450 |
|
| Net interest income after provision for loan losses |
|
11,118 |
|
|
8,927 |
|
|
8,303 |
|
| |
|
|
|
|
|
|
| Noninterest income |
(b) |
1,167 |
|
|
801 |
|
|
1,029 |
|
| Gain on sale of investment securities, net |
|
(27 |
) |
|
(109 |
) |
|
(204 |
) |
| (Gain) loss on sale of other real estate owned, net |
|
(37 |
) |
|
10 |
|
|
— |
|
| Gain on sale of fixed assets, net |
|
(160 |
) |
|
(1 |
) |
|
— |
|
| Core noninterest income |
(d) |
943 |
|
|
701 |
|
|
825 |
|
| |
|
|
|
|
|
|
| Core earnings before noninterest expense |
|
12,061 |
|
|
9,628 |
|
|
9,128 |
|
| |
|
|
|
|
|
|
| Total noninterest expense |
(c) |
9,122 |
|
|
6,928 |
|
|
6,548 |
|
| Acquisition expense |
|
(824 |
) |
|
(80 |
) |
|
— |
|
| Core noninterest expense |
(f) |
8,298 |
|
|
6,848 |
|
|
6,548 |
|
| |
|
|
|
|
|
|
| Core earnings before income tax expense |
|
3,763 |
|
|
2,780 |
|
|
2,580 |
|
| Core income tax expense(1) |
|
1,228 |
|
|
871 |
|
|
692 |
|
| Core earnings |
|
2,535 |
|
|
1,909 |
|
|
1,888 |
|
| |
|
|
|
|
|
|
| Core basic earnings per share |
|
0.29 |
|
|
0.22 |
|
|
0.27 |
|
| |
|
|
|
|
|
|
| Diluted earnings per share (GAAP) |
|
$ |
0.24 |
|
|
$ |
0.22 |
|
|
$ |
0.29 |
|
| Gain on sale of investment securities, net |
|
— |
|
|
(0.01 |
) |
|
(0.02 |
) |
| Loss (gain) on sale of other real estate owned, net |
|
— |
|
|
— |
|
|
— |
|
| Gain on sale of fixed assets, net |
|
(0.01 |
) |
|
— |
|
|
— |
|
| Acquisition expense |
|
0.06 |
|
|
0.01 |
|
|
— |
|
| Core diluted earnings per share |
|
$ |
0.29 |
|
|
$ |
0.22 |
|
|
$ |
0.27 |
|
| |
|
|
|
|
|
|
| Efficiency ratio |
(c) / (a+b) |
71.80 |
% |
|
68.57 |
% |
|
66.94 |
% |
| Core efficiency ratio |
(f) / (a+d) |
66.49 |
% |
|
68.46 |
% |
|
68.37 |
% |
| Core return on average assets(2) |
|
0.70 |
% |
|
0.64 |
% |
|
0.66 |
% |
| Core return on average equity(2) |
|
6.61 |
% |
|
5.11 |
% |
|
6.63 |
% |
| Total average assets |
|
$ |
1,437,929 |
|
|
$ |
1,198,878 |
|
|
$ |
1,134,591 |
|
| Total average stockholders’ equity |
|
152,186 |
|
|
149,713 |
|
|
113,056 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
(1) Core income tax expense is calculated using the actual
effective tax rate of 32.6%, 31.3%, and 26.8% for the three months ended September 30, 2017, June 30,
2017, and September 30, 2016, respectively. |
| (2) Core earnings used in calculation. No adjustments were
made to average assets or average equity. |
