BATON ROUGE, La., April 28, 2015 (GLOBE NEWSWIRE) -- Investar Holding Corporation (Nasdaq:ISTR) (the "Company"), the holding company for Investar Bank, today announced financial results for the quarter ended March 31, 2015. For the quarter ended March 31, 2015, the Company reported net income of $2.0 million, or $0.27 per diluted share, compared to $0.9 million, or $0.21 per diluted share for the quarter ended March 31, 2014. This represents an increase of $1.1 million, or 122%, in net income. For the quarter ended March 31, 2015, net income and diluted earnings per share increased $0.5 million, or 31.5%, and $0.07, respectively, when compared to the quarter ended December 31, 2014, after adjusting for the net effect of an investment in a tax credit entity.
Investar Holding Corporation President and Chief Executive Officer John D'Angelo said:
"We continue to grow into our staffing and facility infrastructure, allowing us to realize significant improvement in both return on assets and efficiency ratios. Noninterest expenses remained relatively flat compared to the latter half of 2014 with the exception of seasonal increases in benefit costs. We continued to make significant progress in the first quarter of 2015, growing both our commercial and industrial loan portfolio and noninterest bearing deposits. We believe growth in these areas increases the value of our franchise and will remain a primary focus."
Performance Highlights
- Increase in net income of $1.1 million, or 122%, compared to the first quarter of 2014.
- Total noninterest bearing deposits were $84.4 million at March 31, 2015, an increase of $14.2 million, or 20%, when compared to December 31, 2014.
- Commercial and industrial loans increased $4.6 million, or 9%, from December 31, 2014.
- Return on average assets increased to 0.91% for the first quarter of 2015 compared to 0.55% for the first quarter of 2014.
- Allowance for loan losses to total loans increased to 0.83% compared to 0.74% at December 31, 2014.
- Efficiency ratio improved to 63.99% compared to 70.38% for the quarter ended December 31, 2014, after adjusting for the impairment on the investment in a tax credit entity.
- Noninterest expense for the first quarter of 2015 was $6.4 million, an increase of only $0.1 million when compared to $6.3 million for the fourth quarter of 2014, after adjusting for the impairment on the investment in a tax credit entity.
- Nonperforming loans to total loans improved to 0.47% at March 31, 2015 when compared to 0.54% at December 31, 2014.
Loans
Total loans were $646.4 million at March 31, 2015, an increase of $23.6 million, or 3.8%, from December 31, 2014.
The following table sets forth the composition of the Company's loan portfolio as of the dates indicated (dollars in thousands):
| Percentage | Percentage | Increase/(Decrease) | ||||
| March 31, 2015 | of Portfolio | December 31, 2014 | of Portfolio | Amount | Percent | |
| Mortgage loans on real estate | ||||||
| Construction and development | $ 73,971 | 11.5% | $ 71,350 | 11.4% | $ 2,621 | 3.7% |
| 1-4 Family | 139,787 | 21.6 | 137,519 | 22.1 | 2,268 | 1.6 |
| Multifamily | 19,219 | 3.0 | 17,458 | 2.8 | 1,761 | 10.1 |
| Farmland | 3,270 | 0.5 | 2,919 | 0.5 | 351 | 12.0 |
| Commercial real estate | ||||||
| Owner occupied | 124,208 | 19.2 | 119,668 | 19.2 | 4,540 | 3.8 |
| Nonowner occupied | 113,400 | 17.5 | 105,390 | 16.9 | 8,010 | 7.6 |
| Commercial and industrial | 58,803 | 9.1 | 54,187 | 8.7 | 4,616 | 8.5 |
| Consumer | 113,781 | 17.6 | 114,299 | 18.4 | (518) | (0.5) |
| Total loans | 646,439 | 100% | 622,790 | 100% | 23,649 | 3.8% |
| Loans held for sale | 64,313 | 103,396 | (39,083) | (37.8) | ||
| Total gross loans | $ 710,752 | $ 726,186 | $ (15,434) | (2.1)% | ||
Consumer loans, including consumer loans held for sale, totaled $175.8 million at March 31, 2015, a decrease of $38.2 million, or 17.9% from $214.0 million at December 31, 2014. The decrease is mainly attributable to the $37.7 million decrease in the balance of consumer loans held for sale at March 31, 2015 when compared to December 31, 2014. Two consumer loan sales were postponed by the buyer from the fourth quarter of 2014 to the first quarter of 2015, therefore increasing the balance of consumer loans held for sale at December 31, 2014.
At March 31, 2015, 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 $183.0 million, an increase of $9.1 million, or 5.3%, compared to the business lending portfolio of $173.9 million at December 31, 2014.
Management continues to monitor the Company's loan portfolio for exposure, directly or indirectly, to the potential negative impacts from the fluctuation in oil and gas prices. Less than 1% of the total loan portfolio remains directly related to the energy sector. At March 31, 2015, none of these loans were past due. At this time, management does not anticipate that decreases in oil and gas prices will 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 allowance for loan losses.
The provision for loan loss expense was $0.7 million for the first quarter of 2015, an increase of $0.5 million compared to the first quarter of 2014. The allowance for loan losses was $5.4 million, or 178.42% and 0.83% of nonperforming loans and total loans, respectively, at March 31, 2015, compared to $4.6 million, or 138.61% and 0.74% of nonperforming loans and total loans, respectively, at December 31, 2014.
Deposits
Total deposits at March 31, 2015 were $698.9 million, an increase of $70.8 million, or 11.3%, from December 31, 2014. The increase in total deposits was driven primarily by an increase of $14.2 million, or 20.2%, in noninterest bearing demand deposits, an increase in NOW accounts of $28.5 million, or 24.5%, and an increase in time deposits of $19.4 million, or 6.3%, from December 31, 2014. The Company's deposit cross sell strategy, as well as management's focus on growing the commercial and industrial loan portfolio and bringing in related deposits, continues to positively impact 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 (dollars in thousands):
| Percentage | Percentage | Increase/(Decrease) | ||||
| March 31, 2015 | of Portfolio | December 31, 2014 | of Portfolio | Amount | Percent | |
| Noninterest-bearing demand deposits | $ 84,402 | 12.1% | $ 70,217 | 11.2% | $ 14,185 | 20.2% |
| NOW accounts | 145,181 | 20.7 | 116,644 | 18.6 | 28,537 | 24.5 |
| Money market deposit accounts | 85,024 | 12.2 | 77,589 | 12.3 | 7,435 | 9.6 |
| Savings accounts | 54,533 | 7.8 | 53,332 | 8.5 | 1,201 | 2.3 |
| Time deposits | 329,752 | 47.2 | 310,336 | 49.4 | 19,416 | 6.3 |
| Total deposits | $ 698,892 | 100% | $ 628,118 | 100% | $ 70,774 | 11.3% |
Net Interest Income
Net interest income for the first quarter of 2015 totaled $7.5 million, an increase of $1.6 million, or 27.8%, from the first quarter of 2014. The increase was a direct result of continued growth of the Company's loan portfolio with an increase in net interest income of $2.1 million due to an increase in volume offset by a $0.5 million decrease related to a reduction in yield when compared to the first quarter of 2014.
The Company's net interest margin was 3.71% for the quarter ended March 31, 2015 compared to 3.84% for the fourth quarter of 2014 and 3.93% for the first quarter of 2014. The Company now sells, and plans to continue to sell, the majority of the consumer loans that it originates. Consumer loan fees previously recognized as a component of interest income are now included in noninterest income, impacting the yield realized on the consumer loan portfolio. The yield on interest earning assets was 4.35% for the quarter ended March 31, 2015 compared to 4.47% for the fourth quarter of 2014 and 4.65% for the first quarter of 2014. Including consumer loan fees in interest income in the current quarter would result in a net interest margin and yield on interest earning assets of 3.82% and 4.46%, respectively, which is comparable to the net interest margin and yield on interest earning assets of 3.84% and 4.47%, respectively, recognized in the fourth quarter of 2014. The cost of deposits increased two basis points when comparing the first quarter of 2015 to the fourth quarter of 2014 and declined one basis point when comparing the first quarter of 2015 to the first quarter of 2014.
Noninterest Income
Noninterest income for the first quarter of 2015 totaled $2.5 million, an increase of $1.5 million, or 138.3%, compared to the first quarter of 2014. The increase resulted primarily from the $1.1 million increase in the gain on sale of loans. For the first quarter of 2015, $1.2 million and $0.5 million was recognized as gain on sales of our consumer and mortgage loans, respectively. Fee income on loans held for sale increased $0.2 million primarily as a result of the change in strategy for our consumer loan portfolio, discussed above. Prior to this shift in strategy, consumer loan fees were included in interest income.
Noninterest Expense
Noninterest expense for the first quarter of 2015 totaled $6.4 million, an increase of $1.0 million, or 19.3%, compared to the first quarter of 2014. The increase in noninterest expense is primarily due to the $0.4 million increase in salaries and employee benefits and the $0.3 million increase in other operating expenses, both of which are primarily attributable to the opening of the Highland Road branch in Baton Rouge, Louisiana on August 1, 2014 and the addition of 10 full-time equivalent employees.
Basic Earnings Per Share and Diluted Earnings Per Share
The Company reported both basic earnings per share and diluted earnings per share of $0.27 for the three months ended March 31, 2015, an increase of $0.04 and $0.06, respectively, when compared to basic and diluted earnings per share for the three months ended March 31, 2014.
Taxes
The Company recorded income tax expense of $1.0 million for the quarter ended March 31, 2015, which equates to an effective tax rate of 33.1%.
About Investar Holding Corporation
Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, a state chartered bank. The Company's primary market is South Louisiana and it currently operates 11 full service banking offices located throughout its market. At March 31, 2015, the Company had 177 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 book value," "tangible book value per common share," "efficiency ratio," "tangible equity to tangible assets," "adjusted efficiency ratio," "adjusted return on equity," and "adjusted net income." 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 | ||
| CONSOLIDATED BALANCE SHEETS | ||
| (Amounts in thousands, except share data) | ||
| March 31, 2015 | December 31, 2014 | |
| (Unaudited) | ||
| ASSETS | ||
| Cash and due from banks | $ 6,879 | $ 5,519 |
| Interest-bearing balances due from other banks | 13,617 | 13,493 |
| Federal funds sold | 170 | 500 |
| Cash and cash equivalents | 20,666 | 19,512 |
| Available for sale securities at fair value (amortized cost of $75,736 and $69,838, respectively) | 76,617 | 70,299 |
| Held to maturity securities at amortized cost (estimated fair value of $22,321 and $22,301, respectively) | 22,369 | 22,519 |
| Loans held for sale | 64,313 | 103,396 |
| Loans, net of allowance for loan losses of $5,379 and $4,630, respectively | 641,060 | 618,160 |
| Other equity securities | 1,839 | 5,566 |
| Bank premises and equipment, net of accumulated depreciation of $4,310 and $3,964, respectively | 29,136 | 28,538 |
| Other real estate owned, net | 2,568 | 2,735 |
| Accrued interest receivable | 2,316 | 2,435 |
| Deferred tax asset | 2,260 | 2,906 |
| Goodwill and other intangible assets | 3,206 | 3,216 |
| Other assets | 1,730 | 1,882 |
| Total assets | $ 868,080 | $ 881,164 |
| LIABILITIES | ||
| Deposits | ||
| Noninterest-bearing | $ 84,402 | $ 70,217 |
| Interest-bearing | 614,490 | 557,901 |
| Total deposits | 698,892 | 628,118 |
| Advances from Federal Home Loan Bank | 34,865 | 125,785 |
| Repurchase agreements | 12,878 | 12,293 |
| Note payable | 3,609 | 3,609 |
| Deferred tax liability | 1,826 | 1,810 |
| Accrued taxes and other liabilities | 10,623 | 6,165 |
| Total liabilities | 762,693 | 777,780 |
| STOCKHOLDERS' EQUITY | ||
| Preferred stock, $1.00 par value per share; 5,000,000 shares authorized | — | — |
| Common stock, $1.00 par value per share; 40,000,000 shares authorized; 7,268,488 and 7,262,085 shares issued and outstanding, respectively | 7,271 | 7,264 |
| Treasury stock | (25) | (23) |
| Surplus | 84,283 | 84,213 |
| Retained earnings | 13,705 | 11,809 |
| Accumulated other comprehensive income | 153 | 121 |
| Total stockholders' equity | 105,387 | 103,384 |
| Total liabilities and stockholders' equity | $ 868,080 | $ 881,164 |
| INVESTAR HOLDING CORPORATION | ||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||
| (Amounts in thousands, except share data) | ||
| (Unaudited) | ||
|
Three months ended March 31, |
||
| 2015 | 2014 | |
| INTEREST INCOME | ||
| Interest and fees on loans | $ 8,298 | $ 6,675 |
| Interest on investment securities | 485 | 272 |
| Other interest income | 17 | 10 |
| Total interest income | 8,800 | 6,957 |
| INTEREST EXPENSE | ||
| Interest on deposits | 1,192 | 1,003 |
| Interest on borrowings | 109 | 87 |
| Total interest expense | 1,301 | 1,090 |
| Net interest income | 7,499 | 5,867 |
| Provision for loan losses | 700 | 245 |
| Net interest income after provision for loan losses | 6,799 | 5,622 |
| NONINTEREST INCOME | ||
| Service charges on deposit accounts | 94 | 63 |
| Gain on sale of investment securities, net | — | 116 |
| Loss on sale of real estate owned, net | (1) | (3) |
| Gain on sale of loans, net | 1,731 | 624 |
| Fee income on loans held for sale, net | 300 | 76 |
| Other operating income | 416 | 190 |
| Total noninterest income | 2,540 | 1,066 |
| Income before noninterest expense | 9,339 | 6,688 |
| NONINTEREST EXPENSE | ||
| Depreciation and amortization | 357 | 303 |
| Salaries and employee benefits | 3,908 | 3,471 |
| Occupancy | 213 | 224 |
| Data processing | 340 | 278 |
| Marketing | 58 | 76 |
| Professional fees | 262 | 59 |
| Other operating expenses | 1,286 | 974 |
| Total noninterest expense | 6,424 | 5,385 |
| Income before income tax expense | 2,915 | 1,303 |
| Income tax expense | 965 | 424 |
| Net income | $ 1,950 | $ 879 |
| EARNINGS PER SHARE | ||
| Basic earnings per share | $ 0.27 | $ 0.23 |
| Diluted earnings per share | $ 0.27 | $ 0.21 |
| Cash dividends declared per common share | $ 0.01 | $ 0.01 |
| INVESTAR HOLDING CORPORATION | ||
| EARNINGS PER COMMON SHARE | ||
| (Amounts in thousands, except share data) | ||
| (Unaudited) | ||
|
Three months ended March 31, |
||
| 2015 | 2014 | |
| Net income available to common shareholders | $ 1,950 | $ 879 |
| Weighted average number of common shares outstanding – used in computation of basic earnings per common share | 7,219,235 | 3,901,064 |
| Effect of dilutive securities: | ||
| Restricted stock | 12,738 | 44,049 |
| Stock options | 9,961 | 22,810 |
| Stock warrants | 8,921 | 193,498 |
| Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share | 7,250,855 | 4,161,421 |
| Basic earnings per share | $ 0.27 | $ 0.23 |
| Diluted earnings per share | $ 0.27 | $ 0.21 |
| INVESTAR HOLDING CORPORATION | |||||
| SUMMARY FINANCIAL INFORMATION | |||||
| (Amounts in thousands, except share data) | |||||
| (Unaudited) | |||||
| Q1 2015 | Q4 2014 | Q1 2014 | Qtr/Qtr | Year/Year | |
| EARNINGS DATA | |||||
| Total interest income | $ 8,800 | $ 8,822 | $ 6,957 | -0.25% | 26.49% |
| Total interest expense | 1,301 | 1,245 | 1,090 | 4.50% | 19.36% |
| Net interest income | 7,499 | 7,577 | 5,867 | -1.03% | 27.82% |
| Provision for loan losses | 700 | 430 | 245 | 62.79% | 185.71% |
| Total noninterest income | 2,540 | 1,325 | 1,066 | 91.70% | 138.27% |
| Total noninterest expense | 6,424 | 6,955 | 5,385 | -7.63% | 19.29% |
| Income before income taxes | 2,915 | 1,517 | 1,303 | 92.16% | 123.71% |
| Income tax expense (benefit) | 965 | (491) | 424 | -296.54% | 127.59% |
| Net income | $ 1,950 | $ 2,008 | $ 879 | -2.89% | 121.84% |
| AVERAGE BALANCE SHEET DATA | |||||
| Total assets | $ 869,008 | $ 826,369 | $ 651,277 | 5.16% | 33.43% |
| Total interest-earning assets | 819,876 | 782,868 | 606,160 | 4.73% | 35.26% |
| Total loans | 714,338 | 675,305 | 532,547 | 5.78% | 34.14% |
| Total interest-bearing deposits | 584,697 | 553,603 | 483,474 | 5.62% | 20.94% |
| Total interest-bearing liabilities | 679,891 | 641,611 | 532,705 | 5.97% | 27.63% |
| Total deposits | 661,923 | 628,837 | 542,640 | 5.26% | 21.98% |
| Total shareholders' equity | 104,916 | 102,781 | 56,441 | 2.08% | 85.89% |
| PER SHARE DATA | |||||
| Basic earnings per share | $ 0.27 | $ 0.28 | $ 0.23 | -3.57% | 17.39% |
| Diluted earnings per share | 0.27 | 0.27 | 0.21 | 0.00% | 28.57% |
| Book value per share | 14.50 | 14.24 | 14.32 | 1.83% | 1.26% |
| Tangible book value per share (1) | 14.06 | 13.79 | 13.50 | 1.96% | 4.15% |
| Common shares outstanding | 7,268,488 | 7,262,085 | 3,945,029 | 0.09% | 84.24% |
| PERFORMANCE RATIOS | |||||
| Return on average assets | 0.91% | 0.96% | 0.55% | -5.21% | 65.45% |
| Adjusted return on average assets (1) | 0.91% | 0.71% | 0.55% | 28.17% | 65.45% |
| Return on average equity | 7.54% | 7.75% | 6.32% | -2.71% | 19.30% |
| Adjusted return on average equity (1) | 7.54% | 5.72% | 6.32% | 31.82% | 19.30% |
| Net interest margin | 3.71% | 3.84% | 3.93% | -3.39% | -5.60% |
| Net interest income to average assets | 3.50% | 3.64% | 3.65% | -3.85% | -4.11% |
| Noninterest expense to average assets | 3.00% | 3.34% | 3.31% | -10.18% | -9.37% |
| Efficiency ratio (1) | 63.99% | 78.13% | 77.67% | -18.10% | -17.61% |
| Adjusted efficiency ratio (1) | 63.99% | 70.38% | 77.67% | -9.08% | -17.61% |
| Dividend payout ratio | 2.74% | 2.51% | 4.44% | 9.16% | -38.29% |
| Three months ended March 31, | |||
| 2015 | 2014 | Variance | |
| ASSET QUALITY RATIOS | |||
| Nonperforming assets to total assets | 0.64% | 0.79% | -18.99% |
| Nonperforming loans to loans | 0.47% | 0.31% | 51.61% |
| Allowance for loan losses to total loans | 0.83% | 0.67% | 23.88% |
| Allowance for loan losses to nonperforming loans | 178.42% | 206.14% | -13.45% |
| Net chargeoffs to average loans | -0.01% | 0.02% | -150.00% |
| CAPITAL RATIOS | |||
| Investar Holding Corporation: | |||
| Total equity to total assets | 12.14% | 8.38% | 44.87% |
| Tangible equity to tangible assets | 11.81% | 7.94% | 48.74% |
| Tier 1 leverage ratio(2) | 12.25% | 8.80% | 39.20% |
| Common equity tier 1 capital ratio(2) | 13.48% | NA | NA |
| Tier 1 capital ratio(2) | 13.94% | 10.21% | 36.53% |
| Total capital ratio(2) | 14.65% | 10.84% | 35.15% |
| Investar Bank: | |||
| Tier 1 leverage ratio(2) | 11.80% | 8.75% | 34.86% |
| Common equity tier 1 capital ratio(2) | 13.43% | NA | NA |
| Tier 1 capital ratio(2) | 13.43% | 10.15% | 32.32% |
| Total capital ratio(2) | 14.14% | 10.78% | 31.17% |
| (1) Non-GAAP financial measures. See reconciliation. | |||
| (2) Beginning January 1, 2015, the capital ratios for the Company and Bank are calculated using the Basel III framework. Capital ratios for prior periods were calculated using the Basel I framework. The common equity tier 1 (CET1) capital ratio is a new ratio introduced under the Basel III framework. | |||
| INVESTAR HOLDING CORPORATION | ||||||
| CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS | ||||||
| (Amounts in thousands) | ||||||
| (Unaudited) | ||||||
| Three months ended March 31, | ||||||
| 2015 | 2014 | |||||
|
Average Balance |
Interest Income/ Expense |
Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Yield/ Rate |
|
| Assets | ||||||
| Interest-earning assets: | ||||||
| Loans | $ 714,338 | $ 8,298 | 4.71% | $ 532,547 | $ 6,675 | 5.08% |
| Securities: | ||||||
| Taxable | 68,528 | 366 | 2.17 | 53,607 | 191 | 1.44 |
| Tax-exempt | 18,979 | 119 | 2.54 | 14,194 | 81 | 2.31 |
| Interest-bearing balances with banks | 18,031 | 17 | 0.38 | 5,812 | 10 | 0.70 |
| Total interest-earning assets | 819,876 | 8,800 | 4.35 | 606,160 | 6,957 | 4.65 |
| Cash and due from banks | 5,689 | 10,865 | ||||
| Intangible assets | 3,209 | 3,251 | ||||
| Other assets | 45,256 | 34,397 | ||||
| Allowance for loan losses | (5,022) | (3,396) | ||||
| Total assets | $ 869,008 | $ 651,277 | ||||
| Liabilities and shareholders' equity | ||||||
| Interest-bearing liabilities: | ||||||
| Deposits: | ||||||
| Interest-bearing demand | $ 204,728 | $ 310 | 0.61% | $ 158,712 | $ 242 | 0.62% |
| Savings deposits | 55,729 | 94 | 0.68 | 51,927 | 89 | 0.70 |
| Time deposits | 324,240 | 788 | 0.99 | 272,835 | 672 | 1.00 |
| Total interest-bearing deposits | 584,697 | 1,192 | 0.83 | 483,474 | 1,003 | 0.84 |
| Short-term borrowings | 53,404 | 24 | 0.18 | 15,098 | 4 | 0.11 |
| Long-term debt | 41,790 | 85 | 0.82 | 34,133 | 83 | 0.99 |
| Total interest-bearing liabilities | 679,891 | 1,301 | 0.78 | 532,705 | 1,090 | 0.83 |
| Noninterest-bearing deposits | 77,226 | 59,166 | ||||
| Other liabilities | 6,975 | 2,965 | ||||
| Stockholders' equity | 104,916 | 56,441 | ||||
| Total liability and stockholders' equity | $ 869,008 | $ 651,277 | ||||
| Net interest income/net interest margin | $ 7,499 | 3.71% | $ 5,867 | 3.93% | ||
| INVESTAR HOLDING CORPORATION | |||
| RECONCILIATION OF NON GAAP FINANCIAL MEASURES | |||
| (Amounts in thousands, except share data) | |||
| (Unaudited) | |||
| March 31, | December 31, | ||
| 2015 | 2014 | 2014 | |
| Tangible common equity | |||
| Total stockholder's equity | $ 105,387 | $ 56,498 | $ 103,384 |
| Adjustments: | |||
| Goodwill | 2,684 | 2,684 | 2,684 |
| Core deposit intangible | 522 | 563 | 532 |
| Tangible common equity | $ 102,181 | $ 53,251 | $ 100,168 |
| Tangible assets | |||
| Total assets | $ 868,080 | $ 673,964 | $ 879,354 |
| Adjustments: | |||
| Goodwill | 2,684 | 2,684 | 2,684 |
| Core deposit intangible | 522 | 563 | 532 |
| Tangible assets | $ 864,874 | $ 670,717 | $ 876,138 |
| Common shares outstanding | 7,268,488 | 3,945,029 | 7,262,085 |
| Tangible equity to tangible assets | 11.81% | 7.94% | 11.43% |
| Book value per common share | $ 14.50 | $ 14.32 | $ 14.24 |
| Tangible book value per common share | $ 14.06 | $ 13.50 | $ 13.79 |
| INVESTAR HOLDING CORPORATION | ||||
| RECONCILIATION OF NON GAAP FINANCIAL MEASURES | ||||
| (Amounts in thousands, except share data) | ||||
| (Unaudited) | ||||
| Three months ended | Three months ended | |||
| March 31, | December 31, | |||
| 2015 | 2014 | 2014 | ||
| Net interest income | (a) | 7,499 | $ 5,867 | $ 7,577 |
| Provision for loan losses | (b) | 700 | 245 | 430 |
| Net interest income after provision for loan losses | 6,799 | 5,622 | 7,147 | |
| Noninterest income | (c) | 2,540 | 1,066 | 1,325 |
| Adjusted income before noninterest expense | (d) | 9,339 | 6,688 | 8,472 |
| Total noninterest expense | (e) | 6,424 | 5,385 | 6,955 |
| Impairment related to investment in tax credit entity | — | — | (690) | |
| Adjusted noninterest expense | (f) | 6,424 | 5,385 | 6,265 |
| Adjusted income before income tax expense | 2,915 | 1,303 | 2,207 | |
| Adjusted income tax expense (1) | 965 | 424 | 724 | |
| Adjusted net income | 1,950 | 879 | 1,483 | |
| Diluted earnings per share (GAAP) | $ 0.27 | $ 0.21 | $ 0.27 | |
| Impairment related to investment in tax credit entity | — | — | 0.06 | |
| Tax credit related to historical tax credit project | — | — | (0.13) | |
| Adjusted diluted earnings per share | $ 0.27 | $ 0.21 | $ 0.20 | |
| Efficiency ratio | (e) / (a+c) | 63.99% | 77.67% | 78.13% |
| Adjusted efficiency ratio(2) | (f) / (b+d) | 63.99% | 77.67% | 70.38% |
| Adjusted return on average assets (2) | 0.91% | 0.55% | 0.71% | |
| Adjusted return on average equity (2) | 7.54% | 6.32% | 5.72% | |
| Total average assets | $ 714,338 | $ 651,277 | $ 826,369 | |
| Total average stockholders' equity | $ 104,916 | $ 56,441 | $ 102,781 | |
| (1) Income tax expense is calculated on the adjusted non-GAAP effective tax rate of 32.8% for the three months ended December 31, 2014. | ||||
| (2) Adjusted for the net effect of the investment in the tax credit entity for the three months ended December 31, 2014. | ||||