Investar Holding Corporation Announces 2014 Second Quarter Results

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| Source: Investar Holding Company

BATON ROUGE, La., July 25, 2014 (GLOBE NEWSWIRE) -- Investar Holding Corporation (Nasdaq:ISTR) (the "Company"), the holding company for Investar Bank, today announced financial results for the three and six month periods ended June 30, 2014. For the quarter ended June 30, 2014, the Company reported net income of $1.1 million, or $0.26 per diluted share, as compared to $0.9 million, or $0.21 per diluted share, for the first quarter of 2014 and $1 million, or $0.25 per diluted share, for the second quarter of 2013 after adjusting for the bargain purchase gain and other acquisition expenses. This represents an increase of $0.05 per diluted share, or 23.8%, over the first quarter of 2014 and an increase of $0.01 per diluted share, or 4%, over the second quarter of 2013. For the six months ended June 30, 2014, the Company reported net income of $1.9 million, or $0.47 per diluted share, as compared to $1.6 million, or $0.44 per diluted share, after adjusting for the bargain purchase gain and other acquisition expenses for the six months ended June 30, 2013. This represents an increase of $0.03 per diluted share, or 6.8%, over the six months ended June 30, 2013.

Investar Holding Corporation President and Chief Executive Officer John D'Angelo said, "We are very pleased with our results for the second quarter. We are continuing to grow our balance sheet, with solid growth in both loans and deposits. Our earnings growth remains strong with a 23.8% increase in earnings per share over the first quarter of 2014. We remain very excited about the recent completion of our IPO, which we believe positions us for continued growth."

Performance Highlights

  • Increase in net interest income of $0.4 million, or 6.5%, compared to the first quarter of 2014, and $1.6 million, or 32.5%, compared to the second quarter of 2013.
     
  • Tangible book value per share of $13.86 as of June 30, 2014.
     
  • Total assets have grown to $729.1 million at June 30, 2014, an increase of $94.1 million, or 14.8%, from December 31, 2013.
     
  • Total loans increased $59.9 million, or 11.9%, to $564.0 million at June 30, 2014 from $504.1 million at December 31, 2013.
     
  • Deposits increased $46.1 million, or 8.7%, to $578.7 million at June 30, 2014 from $532.6 million at December 31, 2013.
     
  • The Company's cost of deposits for the three and six month periods ending June 30, 2014 was 0.84%, a decrease of six and eight basis points compared to the same periods in the prior year.
     
  • On July 3, 2014 the Company completed an initial public offering of 2,875,000 shares of its common stock generating gross proceeds of $37.6 million to support future growth.

Loans

Total loans were $564.0 million at June 30, 2014, an increase of $59.9 million, or 11.9%, from December 31, 2013. Loan growth was primarily driven by increases in 1-4 family and nonfarm, non-residential real estate loans.

The following table sets forth the composition of the Company's loan portfolio as of the dates indicated.

      Increase/(Decrease)
(dollars in thousands) June 30, 2014 December 31, 2013 Amount Percent
Mortgage Loans on Real Estate        
Construction & Land Development   $ 60,333  $ 63,170  $ (2,837) (4.5)%
1-4 Family   125,246  104,685  20,561  19.6
Multifamily   17,706  14,286  3,420  23.9
Farmland   2,282  830  1,452  174.9
Nonfarm, Non Residential   191,820  157,363  34,457  21.9
Commercial & Industrial   34,778  32,665  2,113  6.5
Consumer   131,810  131,096  714  0.5
         
Total Loans  $ 563,975  $ 504,095  $ 59,880 11.9%

The provision for loan loss expense was $0.4 million for the quarter, an increase of $0.2 million from the first quarter of 2014 and an increase of $0.3 million compared to the second quarter of 2013. The allowance for loan losses was $3.9 million, or 296.24% and 0.69% of nonperforming loans and total loans, respectively, at June 30, 2014, compared to $3.5 million, or 206.1% and 0.67% of nonperforming loans and total loans, respectively, at March 31, 2014, and $2.8 million, or 141.01% and 0.66% of nonperforming loans and total loans, respectively, at June 30, 2013.

Nonperforming assets totaled $4.7 million at June 30, 2014, a decrease of $0.6 million compared to March 31, 2014 and a decrease of $0.3 million compared to December 31, 2013. The ratio of total nonperforming assets to total assets was 0.65% at June 30, 2014, compared to 0.79% at March 31, 2014 and December 31, 2013.

Deposits

Total deposits at June 30, 2014 were $578.7 million, an increase of $46.1 million, or 8.7%, from December 31, 2013. Total noninterest bearing demand deposits at December 31, 2013 were slightly inflated by a $14 million short term deposit made by a commercial customer in late December 2013 that was fully withdrawn in January 2014. The increase in total deposits was driven primarily by an increase in NOW accounts of $21.7 million, or 28.1%, an increase of $11 million, or 18.7%, in noninterest bearing demand deposits after adjusting for the $14 million short term deposit, and an increase in time deposits of $23.9 million, or 9.1%, from December 31, 2013. We believe our deposit cross sell strategy has resulted in both noninterest bearing demand deposit and NOW account growth.

The following table sets forth the composition of the Company's deposits as of the dates indicated.

      Increase/(Decrease)
(dollars in thousands) June 30, 2014 December 31, 2013 Amount Percent
Noninterest Bearing Demand Deposits   $ 69,804  $ 72,795  $ (2,991) (4.1)%
NOW Accounts   98,889  77,190  21,699  28.1
Money Market Deposit Accounts   70,164  67,006  3,158  4.7
Savings Accounts   52,431  52,177  254  0.5
Time Deposits   287,379  263,438  23,941  9.1
         
Total Deposits  $ 578,667  $ 532,606  $ 46,061 8.6%

Net Interest Income

Net interest income for the second quarter of 2014 totaled $6.3 million, an increase of $0.4 million, or 6.5%, from the first quarter of 2014 and an increase of $1.6 million, or 32.5%, from the second quarter of 2013. Net interest income for the six months ended June 30, 2014 totaled $12.1 million, an increase of $4 million, or 49.4%, from the six months ended June 30, 2013. These increases were the result of continued growth of the Company's loan portfolio.

The Company's net interest margin was 3.85% for the quarter ended June 30, 2014 compared to 3.93% for the first quarter of 2014 and 4.28% for the second quarter of 2013. The decline in the interest margin can be attributed to lower yields on the consumer and real estate loan portfolios. The yield on interest earning assets was 4.56% for the quarter ended June 30, 2014 compared to 4.65% for the first quarter of 2014 and 5.04% for the second quarter of 2013. The cost of deposits remained flat when comparing the second quarter of 2014 to the first quarter of 2014, and declined six basis points when comparing the second quarter of 2014 to the second quarter of 2013.

The Company's net interest margin was 3.89% for the six month period ended June 30, 2014 compared to 4.10% for the six month period ended June 30, 2013. The decline in the interest margin for both the three and six month comparison periods can be attributed to lower yields on the consumer and real estate loan portfolios.

Noninterest Income

Noninterest income, excluding securities gains, for the second quarter of 2014 totaled $1.5 million, an increase of $0.5 million, or 53.8%, compared to the first quarter of 2014, and a decrease of $0.6 million, or 31.9% compared to the second quarter of 2013. The increase in noninterest income for the second quarter of 2014 compared to the first quarter of 2014 resulted primarily from an increase of $0.4 million in gain on sale of consumer loans and increased consumer loan servicing fee income. Noninterest income for the second quarter of 2013 included the $0.9 million bargain purchase gain recorded in connection with the Company's acquisition of First Community Bank ("FCB") in May 2013. Excluding the bargain purchase gain, the $0.2 million increase in noninterest income for the second quarter of 2014 compared to the second quarter of 2013 resulted primarily from an increase of $0.5 million in gain on sale of consumer loans offset by a decrease of approximately $0.3 million in fee income on mortgage loans held for sale.

Noninterest income, excluding securities gains, for the six months ended June 30, 2014 totaled $2.4 million, a decrease of $0.6 million, or 21%, compared to the six months ended June 30, 2013. Excluding the bargain purchase gain recorded in the second quarter of 2013, noninterest income increased $0.3 million for the six months ended June 30, 2014 compared to the six months ended June 30, 2013 primarily as a result of an increase of approximately $0.1 million in consumer loan servicing fee income and $0.1 million in interchange and ATM fee income.

Noninterest Expense

Noninterest expense for the second quarter of 2014 totaled $5.7 million, an increase of $0.3 million, or 6.4%, compared to the first quarter of 2014 and an increase of $1.3 million, or 28.9%, compared to the second quarter of 2013, excluding acquisition related expenses of $0.2 million. The increase in noninterest expense over the first quarter of 2014 was primarily due to a $0.1 million increase in credit investigation costs related to the increase in our consumer loan production and a $0.1 million increase in professional fees related to the company's implementation costs of Sarbanes-Oxley compliance. The increase in noninterest expense over the prior year quarter is primarily attributed to expenses associated with the two branches that the Company acquired as a result of the FCB acquisition in May 2013, as well as with the opening of a branch in Lafayette, Louisiana during the fourth quarter of 2013.

Noninterest expense for the six months ended June 30, 2014 totaled $11.1 million, an increase of $3.2 million, or 40%, compared to the six months ended June 30, 2013, excluding acquisition costs of $0.3 million, due to the full six months of expenses associated with three branches added in 2013.

Taxes

The company recorded income tax expense of $0.5 million and $0.9 million for the three and six month periods ended June 30, 2014, respectively, which equates to an effective tax rate of 32.5%.

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 currently operates 10 full service banking offices located throughout its market and had 165 employees at June 30, 2014.

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 book value," "tangible book value per common share," "efficiency ratio," "tangible equity to tangible assets," "adjusted efficiency ratio," and "adjusted return on equity." Management also utilizes non-GAAP performance measures to adjust net income for certain significant activities or transactions that are infrequent in nature. 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. These factors should not be construed as exhaustive. The Company does not undertake any obligation to publicly update or review 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. Information on these factors can be found in the filings that the Company makes with the Securities and Exchange Commission.

INVESTAR HOLDING CORPORATION 
CONDENSED CONSOLIDATED BALANCE SHEETS 
(Amounts in thousands, except share data) 
 
 
  June 30, 2014 December 31, 2013
  (Unaudited)  
ASSETS    
Cash and due from banks   $ 12,872  $ 10,549
Interest bearing balances due from other banks   1,777  17,154
Federal funds sold   500  500
     
Cash and cash equivalents   15,149  28,203
Investment securities:    
Available-for-sale at fair value (amortized cost of $65,286 and $56,733, respectively)   65,528  56,173
Held-to-maturity, at amortized cost (estimated fair value of $13,707 and $5,986, respectively)   14,015  6,579
Loans held for sale   32,131  5,029
Loans—less allowance for loan losses of $3,882 and $3,380, respectively   560,093  500,715
Other equity securities   3,409  2,020
Bank premises and equipment, net   27,679  24,680
Real estate owned, net   3,423  3,515
Accrued interest receivable   1,921  1,835
Prepaid FDIC/OFI assessment   99  —  
Deferred tax asset   709  1,205
Goodwill   2,684  2,684
Other assets   2,230  2,308
     
Total assets  $ 729,070  $ 634,946
     
LIABILITIES    
Deposits:    
Noninterest bearing   $ 69,804  $ 72,795
Interest bearing   508,863  459,811
     
Total deposits  578,667  532,606
Advances from Federal Home Loan Bank   68,409  30,818
Repurchase agreements   11,425  10,203
Note payable   8,609  3,609
Accrued interest payable   289  285
Accrued taxes and other liabilities   3,731  1,942
     
Total liabilities  671,130  579,463
STOCKHOLDERS' EQUITY    
Common stock, $1.00 par value per share; 40,000,000 shares authorized; 3,945,753 and 3,945,114 shares issued and outstanding, respectively   3,945  3,943
Treasury Stock   (4)  —  
Surplus   45,363  45,281
Retained earnings   8,458  6,609
Accumulated other comprehensive income (loss)   178  (350)
     
Total stockholders' equity  57,940  55,483
     
Total liabilities and stockholders' equity  $ 729,070  $ 634,946
     
INVESTAR HOLDING CORPORATION 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 
(Amounts in thousands, except share data) 
(Unaudited) 
 
 
  Three months ended Six months ended
  June 30, June 30,
  2014 2013 2014 2013
INTEREST INCOME        
Interest and fees on loans   $ 7,119  $ 5,391  $ 13,794  $ 9,317
Interest on investment securities:        
Taxable interest income   188  66  379  141
Exempt from federal income taxes   90  90  171  167
Other interest income   10  6  20  11
         
Total interest income  7,407  5,553  14,364  9,636
INTEREST EXPENSE        
Interest on deposits   1,050  780  2,053  1,422
Interest on borrowings   108  56  194  104
         
Total interest expense  1,158  836  2,247  1,526
         
Net interest income  6,249  4,717  12,117  8,110
Provision for loan losses   448  143  693  232
         
Net interest income after provision for loan losses  5,801  4,574  11,424  7,878
NONINTEREST INCOME        
Service charges on deposit accounts   73  58  136  86
Gain on sale of investment securities, net   48  47  165  309
Net (loss) gain on sales of ORE   (5)  91  (7)  91
Gain on sale of loans   546  52  720  52
Bargain purchase gain   —    906  —    906
Fee income on mortgage loans held for sale, net   574  921  1,100  1,732
Other operating income   273  118  462  186
         
Total noninterest income  1,509  2,193  2,576  3,362
         
Income before noninterest expense  7,310  6,767  14,000  11,240
NONINTEREST EXPENSE        
Salaries and employee benefits   3,491  2,860  6,962  5,111
Net occupancy expense and equipment expense   577  450  1,162  810
Bank shares tax   82  55  160  101
FDIC and OFI assessments   119  79  233  144
Legal fees   40  77  48  92
Data processing   308  215  586  402
Advertising   71  71  147  148
Stationery and supplies   44  62  92  101
Software amortization and expense   122  95  228  162
Professional fees   159  100  210  166
Telephone expense   46  34  92  59
Business entertainment   39  16  65  33
Other operating expenses   631  501  1,131  859
         
Total noninterest expense  5,729  4,615  11,116  8,188
         
Income before income tax expense  1,581  2,152  2,884  3,052
Income tax expense   514  455  938  736
         
Net income  $ 1,067  $ 1,697  $ 1,946  $ 2,316
         
EARNINGS PER SHARE        
Basic earnings per share   $ 0.27  $ 0.47  $ 0.50  $ 0.68
         
Diluted earnings per share   $ 0.26  $ 0.44  $ 0.47  $ 0.64
         
Cash dividends declared per common share   $ 0.01  $ 0.02  $ 0.01  $ 0.02
         
INVESTAR HOLDING CORPORATION 
EARNINGS PER COMMON SHARE 
(Amounts in thousands, except share data) 
(Unaudited) 
 
 
  Three months ended Six months ended
  June 30, June 30,
  2014 2013 2014 2013
Net income available to common shareholders   $ 1,067  $ 1,697  $ 1,946  $ 2,316
Weighted average number of common shares outstanding – used in computation of basic earnings per common share   3,901,542  3,598,703  3,901,304  3,404,313
Effect of dilutive securities:        
Restricted stock   44,493  19,223  44,272  18,894
Stock options   22,810  30,310  22,810  30,310
Stock warrants   193,498  193,498  193,498  193,571
         
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share   4,162,343  3,841,734  4,161,884  3,647,088
         
Basic earnings per share   $ 0.27  $ 0.47  $ 0.50  $ 0.68
         
Diluted earnings per share   $ 0.26  $ 0.44  $ 0.47  $ 0.64
         
INVESTAR HOLDING CORPORATION 
SUMMARY FINANCIAL INFORMATION 
(Amounts in thousands, except share data) 
(Unaudited) 
 
 
  Three months ended Six months ended
  June 30, June 30,
  2014 2013 2014 2013
EARNINGS DATA        
Total interest income   $ 7,407  $ 5,553  $ 14,364  $ 9,636
Total interest expense   1,158  836  2,247  1,526
         
Net interest income   6,249  4,717  12,117  8,110
Provision for loan losses   448  143  693  232
Total noninterest income   1,509  2,193  2,576  3,362
Total noninterest expense   5,729  4,615  11,116  8,188
         
Income before income taxes   1,581  2,152  2,884  3,052
Income tax expense   514  455  938  736
Net income   1,067  1,697  1,946  2,316
AVERAGE BALANCE SHEET DATA        
Total assets   697,708  474,562  674,624  427,424
Total interest-earning assets   650,811  442,240  628,610  398,849
Total loans   575,978  387,738  554,384  348,683
Total interest-bearing deposits   500,725  348,143  492,147  311,740
Total interest-bearing liabilities   572,084  374,628  552,503  337,102
Total deposits   565,219  394,377  553,992  351,753
Total shareholders' equity   57,458  50,775  56,952  47,510
PER SHARE DATA        
Basic earnings per share   0.27  0.47  0.50  0.68
Diluted earnings per share   0.26  0.44  0.47  0.64
Book value per share   14.68  13.99  14.68  13.99
Tangible book value per share (1)  13.86  13.15  13.86  13.15
Common shares outstanding   3,945,753  3,890,389  3,945,753  3,890,389
PERFORMANCE RATIOS        
Return on average assets  0.61% 1.43% 0.58% 1.09%
Adjusted return on average assets (1) 0.61% 0.81% 0.58% 0.76%
Return on average equity  7.45% 13.41% 6.89% 9.83%
Adjusted return on average equity (1) 7.45% 7.57% 6.89% 6.88%
Net interest margin  3.85% 4.28% 3.89% 4.10%
Net interest income to average assets  4.26% 4.69% 4.29% 4.55%
Noninterest expense to average assets  3.29% 3.90% 3.32% 3.86%
Efficiency ratio (1) 73.85% 66.79% 75.66% 71.37%
Adjusted efficiency ratio (1) 73.85% 74.03% 75.66% 75.15%
Dividend payout ratio  4.56% 2.52% 4.90% 3.18%
         
  June 30, 2014 June 30, 2013    
ASSET QUALITY RATIOS        
Nonperforming assets to total assets  0.65% 0.98%    
Nonperforming loans to loans, net of unearned income  0.23% 0.47%    
Allowance for loan losses to total loans  0.69% 0.66%    
Allowance for loan losses to nonperforming loans  296.24% 141.01%    
Net Chargeoffs to average loans, net of unearned income  0.03% 0.05%    
CAPITAL RATIOS        
Total equity to total assets  7.95% 10.26%    
Tangible equity to tangible assets  7.54% 9.70%    
Tier 1 capital to average assets  8.99% 10.20%    
Tier 1 capital to risk-weighted assets  10.54% 11.63%    
Total capital to risk-weighted assets  11.20% 12.25%    
         
(1) Non-GAAP financial measures. See reconciliation. 
         
INVESTAR HOLDING CORPORATION 
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS 
(Amounts in thousands) 
(Unaudited) 
 
 
  Three months ended June 30,
  2014 2013
    Interest     Interest  
  Average Income/   Average Income/  
  Balance Expense Yield/Rate Balance Expense Yield/Rate
             
Assets            
Interest-earning assets:            
Loans   $ 575,978  $ 7,119 4.96%  $ 387,738  $ 5,391 5.58%
Securities:            
Taxable   58,088  188  1.30  37,002  66  0.72
Tax-exempt   12,995  90  2.78  15,038  90  2.40
Interest-bearing balances with banks   3,750  10  1.07  2,462  6  0.98
             
Total interest-earning assets   650,811  7,407  4.56  442,240  5,553  5.04
Cash and due from banks   11,734      6,034    
Intangible assets   3,240      3,131    
Other assets   35,534      25,878    
Allowance for loan losses   (3,611)      (2,721)    
             
Total assets   $ 697,708      $ 474,562    
             
Liabilities and shareholders' equity            
Interest-bearing liabilities:            
Deposits:            
Interest-bearing demand   $ 166,763  262  0.63  $ 104,942  167  0.64
Savings deposits   52,407  89  0.68  41,158  68  0.66
Time deposits   281,555  699  1.00  202,043  545  1.08
             
Total interest-bearing deposits   500,725  1,050  0.84  348,143  780  0.90
Short-term borrowings   33,108  20  0.24  5,576  4  0.29
Long-term debt   38,251  88  0.92  20,909  52  1.00
             
Total interest-bearing liabilities   572,084  1,158  0.81  374,628  836  0.90
Noninterest-bearing deposits   64,494      46,234    
Other liabilities   3,672      2,925    
Stockholders' equity   57,458      50,775    
             
Total liability and stockholders' equity   $ 697,708      $ 474,562    
             
Net interest income/net interest margin     $ 6,249 3.85%    $ 4,717 4.28%
             
INVESTAR HOLDING CORPORATION 
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS 
(Amounts in thousands) 
(Unaudited) 
 
 
  Six months ended June 30,
  2014 2013
    Interest     Interest  
  Average Income/   Average Income/  
  Balance Expense Yield/Rate Balance Expense Yield/Rate
             
Assets            
Interest-earning assets:            
Loans   $ 554,384  $ 13,794 5.02%  $ 348,683  $ 9,317 5.39%
Securities:            
Taxable   55,859  379  1.37  34,211  141  0.83
Tax-exempt   13,591  171  2.54  13,850  167  2.43
Interest-bearing balances with banks   4,776  20  0.84  2,105  11  1.05
             
Total interest-earning assets   628,610  14,364  4.61  398,849  9,636  4.87
Cash and due from banks   11,306      5,056    
Intangible assets   3,245      2,980    
Other assets   34,967      23,250    
Allowance for loan losses   (3,504)      (2,711)    
             
Total assets   $ 674,624      $ 427,424    
             
Liabilities and shareholders' equity            
Interest-bearing liabilities:            
Deposits:            
Interest-bearing demand   $ 162,760  505  0.63  $ 97,205  317  0.66
Savings deposits   52,168  178  0.69  35,845  124  0.70
Time deposits   277,219  1,370  1.00  178,690  981  1.11
             
Total interest-bearing deposits   492,147  2,053  0.84  311,740  1,422  0.92
Short-term borrowings   24,153  25  0.21  5,328  6  0.23
Long-term debt   36,203  170  0.95  20,034  98  0.99
             
Total interest-bearing liabilities   552,503  2,248  0.82  337,102  1,526  0.91
Noninterest-bearing deposits   61,845      40,013    
Other liabilities   3,324      2,799    
Stockholders' equity   56,952      47,510    
             
Total liability and stockholders' equity   $ 674,624      $ 427,424    
             
Net interest income/net interest margin     $ 12,116 3.89%    $ 8,110 4.10%
             
INVESTAR HOLDING CORPORATION 
RECONCILIATION OF NON GAAP FINANCIAL MEASURES 
(Amounts in thousands, except share data) 
(Unaudited) 
 
 
    Three months ended Six months ended
    June 30, June 30,
(Amounts in thousands, except share data)   2014 2013 2014 2013
Net interest income  (a)  $ 6,249  $ 4,717  $ 12,117  $ 8,110
Provision for loan losses  (b)  448  143  693  232
           
Net interest income after provision for loan losses     5,801  4,574  11,424  7,878
Noninterest income  (c)  1,509  2,193  2,576  3,362
Bargain purchase gain     —    (906)  —    (906)
           
Adjusted noninterest income     1,509  1,287  2,576  2,456
Adjusted income before noninterest expense  (d)  7,310  5,861  14,000  10,334
Total noninterest expense  (e)  5,729  4,615  11,116  8,188
Acquisition related expense       (170)    (248)
           
Adjusted noninterest expense  (f)  5,729  4,445  11,116  7,940
Adjusted income before income tax expense     1,581  1,416  2,884  2,394
Adjusted income tax expense (1)    514  458  938  774
           
Adjusted net income     1,067  958  1,946  1,620
           
Diluted earnings per share (GAAP)     $ 0.26  $ 0.44  $ 0.47  $ 0.64
Bargain purchase gain     —    (0.24)  —    (0.25)
Acquisition related expense     —    0.05  —    0.05
           
Adjusted diluted earnings per share     $ 0.26  $ 0.25  $ 0.47  $ 0.44
           
Efficiency ratio  (e) / (a+c) 73.85% 66.79% 75.66% 71.37%
Adjusted efficiency ratio(2) (f) / (b+d) 73.85% 74.03% 75.66% 75.15%
Adjusted return on assets (2)   0.61% 0.81% 0.58% 0.76%
Adjusted return on equity (2)   7.45% 7.57% 6.89% 6.88%
Total average assets     $ 697,708  $ 474,562  $ 674,624  $ 427,424
Total average stockholders' equity     $ 57,458  $ 50,775  $ 56,952  $ 47,510
           
(1) Income tax expense is calculated on the adjusted non-GAAP effective tax rate of 32.34% for the three and six month periods ended June 30, 2013. 
(2) Adjusted for the impact of the bargain purchase gain and acquisition expenses incurred during the three and six month periods ended June 30, 2013. 
           
INVESTAR HOLDING CORPORATION 
RECONCILIATION OF NON GAAP FINANCIAL MEASURES 
(Amounts in thousands, except share data) 
(Unaudited) 
 
 
  June 30, December 31,
  2014 2013 2013
Tangible Common Equity      
Total stockholder's equity   $ 57,940  $ 54,430  $ 55,483
Adjustments:      
Goodwill   2,684  2,684  2,684
Core deposit intangible   552  593  573
       
Tangible common equity   $ 54,704  $ 51,153  $ 52,226
       
Tangible Assets      
Total Assets   $ 729,070  $ 530,583  $ 634,946
Adjustments:      
Goodwill   2,684  2,684  2,684
Core deposit intangible   552  593  573
       
Tangible Assets   $ 725,834  $ 527,306  $ 631,689
       
Common shares outstanding   3,945,753  3,890,389  3,945,114
Tangible equity to tangible assets  7.54% 9.70% 8.27%
Book value per common share   $ 14.68  $ 13.99  $ 14.06
Tangible book value per common share   $ 13.86  $ 13.15  $ 13.24
For further information contact:
Investar Holding Company
John D'Angelo
President and Chief Executive Officer
(225) 448-5461


Investar Holding Company
Chris Hufft
Chief Accounting Officer
(225) 227-2215