Exhibit 99.1
For Immediate Release
Investar Holding Corporation Announces 2015 Second Quarter Results
BATON ROUGE, LA (July 28, 2015) – Investar Holding Corporation (NASDAQ: ISTR) (the “Company”), the holding company for Investar Bank, today announced financial results for the quarter ended June 30, 2015. For the quarter ended June 30, 2015, the Company reported net income of $1.8 million, or $0.25 per diluted share, compared to $1.1 million, or $0.26 per diluted share for the quarter ended June 30, 2014. This represents an increase of $0.7 million, or 69.9%, in net income.
Investar Holding Corporation President and Chief Executive Officer John D’Angelo said:
“We are pleased to announce another great quarter for our company. Investar continues to experience solid growth in the loan portfolio, noninterest-bearing deposits and earnings while continuing to place a focus on increasing efficiency throughout the organization, allowing for the reduction of operational costs while, at the same time, continuing to meet growth targets.”
Performance Highlights
| | ● | | Increase in net income of $0.7 million, or 69.9%, for the second quarter of 2015 compared to the second quarter of 2014. |
| | ● | | Total loans, net of held for sale, increased $50.8 million, or 8.2%, at June 30, 2015 from December 31, 2014. |
| | ● | | Total noninterest-bearing deposits were $86.3 million at June 30, 2015, an increase of $16.1 million, or 23%, compared to December 31, 2014. |
| | ● | | Return on average assets increased to 0.82% and 0.86% for the three and six months ended June 30, 2015, respectively, compared to 0.61% and 0.58% for the three and six months ended June 30, 2014, respectively. |
| | ● | | Nonperforming loans to total loans decreased to 0.40% at June 30, 2015 from 0.54% at December 31, 2014. |
| | ● | | Allowance for loan losses to nonperforming and total loans increased to 213.2% and 0.85%, respectively, at June 30, 2015 compared to 138.61% and 0.74%, respectively, at December 31, 2014. |
| | ● | | Efficiency ratio improved to 65.91% for the six months ended June 30, 2015 compared to 75.66% for the six months ended June 30, 2014. |
Loans
Total loans were $673.6 million at June 30, 2015, an increase of $50.8 million, or 8.2%, 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) | |
| | | June 30, 2015 | | | of Portfolio | | | December 31, 2014 | | | of Portfolio | | | Amount | | | Percent | |
| | | | | | |
Mortgage loans on real estate | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and development | | $ | 70,927 | | | | 10.5 % | | | $ | 71,350 | | | | 11.4 % | | | $ | (423) | | | | (0.1) % | |
1-4 Family | | | 153,118 | | | | 22.7 | | | | 137,519 | | | | 22.1 | | | | 15,599 | | | | 11.3 | |
Multifamily | | | 21,260 | | | | 3.2 | | | | 17,458 | | | | 2.8 | | | | 3,802 | | | | 21.8 | |
Farmland | | | 3,001 | | | | 0.4 | | | | 2,919 | | | | 0.5 | | | | 82 | | | | 2.8 | |
Commercial real estate | | | | | | | | | | | | | | | | | | | | | | | | |
Owner occupied | | | 129,825 | | | | 19.3 | | | | 119,668 | | | | 19.2 | | | | 10,157 | | | | 8.5 | |
Nonowner occupied | | | 119,321 | | | | 17.7 | | | | 105,390 | | | | 16.9 | | | | 13,931 | | | | 13.2 | |
Commercial and industrial | | | 56,485 | | | | 8.4 | | | | 54,187 | | | | 8.7 | | | | 2,298 | | | | 4.2 | |
Consumer | | | 119,649 | | | | 17.8 | | | | 114,299 | | | | 18.4 | | | | 5,350 | | | | 4.7 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total loans | | | 673,586 | | | | 100 % | | | | 622,790 | | | | 100 % | | | | 50,796 | | | | 8.2 % | |
Loans held for sale | | | 78,212 | | | | | | | | 103,396 | | | | | | | | (25,184) | | | | (24.4) | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total gross loans | | $ | 751,798 | | | | | | | $ | 726,186 | | | | | | | $ | 25,612 | | | | 3.5 % | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Consumer loans, including consumer loans held for sale, totaled $192.6 million at June 30, 2015, a decrease of $21.4 million, or 10% from $214 million at December 31, 2014. The decrease is mainly attributable to the $26.8 million decrease in the balance of consumer loans held for sale at June 30, 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 June 30, 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 $186.3 million, an increase of $12.4 million, or 7.2%, 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 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 $0.4 million for the second quarter of 2015, a decrease of $48,000 compared to the second quarter of 2014. The allowance for loan losses was $5.7 million, or 213.2% and 0.85% of nonperforming loans and total loans, respectively, at June 30, 2015, compared to $4.6 million, or 138.61% and 0.74% of nonperforming loans and total loans, respectively, at December 31, 2014. Nonperforming loans to total loans improved to 0.40% at June 30, 2015 compared to 0.54% at December 31, 2014.
Deposits
Total deposits at June 30, 2015 were $706 million, an increase of $77.9 million, or 12.4%, from December 31, 2014. The increase in total deposits was driven primarily by an increase of $16.1 million, or 23%, in noninterest-bearing demand deposits, and an increase in time deposits of $33.5 million, or 10.8%, 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) | |
| | | June 30, 2015 | | | of Portfolio | | | December 31, 2014 | | | of Portfolio | | | Amount | | | Percent | |
| | | | | | |
Noninterest-bearing demand
deposits | | $ | 86,339 | | | | 12.2 % | | | $ | 70,217 | | | | 11.2 % | | | $ | 16,122 | | | | 23.0 % | |
NOW accounts | | | 131,136 | | | | 18.6 | | | | 116,644 | | | | 18.6 | | | | 14,492 | | | | 12.4 | |
Money market deposit
accounts | | | 92,126 | | | | 13.1 | | | | 77,589 | | | | 12.3 | | | | 14,537 | | | | 18.7 | |
Savings accounts | | | 52,546 | | | | 7.4 | | | | 53,332 | | | | 8.5 | | | | (786) | | | | (1.5) | |
Time deposits | | | 343,860 | | | | 48.7 | | | | 310,336 | | | | 49.4 | | | | 33,524 | | | | 10.8 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total deposits | | $ | 706,007 | | | | 100 % | | | $ | 628,118 | | | | 100 % | | | $ | 77,889 | | | | 12.4 % | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net Interest Income
Net interest income for the second quarter of 2015 totaled $7.8 million, an increase of $0.3 million, or 3.8%, compared to the first quarter of 2015, and an increase of $1.5 million, or 24.5%, compared to the second 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 $1.8 million due to an increase in volume offset by a $0.3 million decrease related to a reduction in yield compared to the second quarter of 2014.
The Company’s net interest margin was 3.70% for the quarter ended June 30, 2015 compared to 3.71% for the first quarter of 2015 and 3.85% for the second quarter of 2014. The yield on interest earning assets was 4.37% for the quarter ended June 30, 2015 compared to 4.35% for the first quarter of 2015 and 4.56% for the second quarter of 2014. The cost of deposits increased one basis point when comparing the second quarter of 2015 to the first quarter of 2015 and remained constant when comparing the second quarter of 2015 to the second quarter of 2014.
Noninterest Income
Noninterest income for the second quarter of 2015 totaled $2.1 million, a decrease of $0.5 million, or 18.7%, compared to the first quarter of 2015, and an increase of $0.6 million, or 36.9%, compared to the second quarter of 2014. The decrease from the first quarter to the second quarter of 2015 is primarily a result of the decrease in the gain on sale of loans. The Company experienced a greater volume of loan sales during the first quarter of 2015 as a result of two consumer loan pool sales being postponed by the buyer at the end of 2014.
The following table sets forth the composition of the Company’s gain on sale of loans for the time periods indicated (dollars in thousands):
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | Q2 2015 | | | Q1 2015 | | | Q2 2014 | | | Qtr/Qtr | | | Year/Year | |
| | | | | | | | |
Gain on sale of loans | | | | | | | | | | | | | | | | | | | | |
Consumer | | $ | 803 | | | $ | 1,258 | | | $ | 546 | | | | -36% | | | | 47% | |
Mortgage | | | 274 | | | | 473 | | | | 485 | | | | -42% | | | | -44% | |
| | | | | | | | | | | | | | | | | | | | |
Total | | | 1,077 | | | | 1,731 | | | | 1,031 | | | | -38% | | | | 4% | |
The increase in noninterest income from the second quarter of 2014 resulted primarily from the $0.3 million increase in other operating income and the $0.1 million increase in fee income on loans held for sale. The increase in other operating income is attributable to the $0.3 million increase in servicing fees, a direct result of the growth in the Company’s servicing portfolio from increased consumer loan sales.
Noninterest Expense
Noninterest expense for the second quarter of 2015 totaled $6.7 million, an increase of $0.3 million, or 4%, compared to the first quarter of 2015, and an increase of $1 million, or 16.6%, compared to the second quarter of 2014. The increase in noninterest expense from the second quarter of 2014 is primarily due to the $0.5 million increase in salaries and employee benefits and the $0.3 million increase in other operating expenses, both of which are attributable to the continued growth of the Company including the opening of the Highland Road branch in Baton Rouge, Louisiana on August 1, 2014 and the addition of 11 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 $0.25 for the three months ended June 30, 2015, a decrease of $0.02 and $0.01, respectively, compared to basic and diluted earnings per share for the three months ended June 30, 2014. The decrease in both basic and diluted earnings per share is directly attributable to the increase in the number of weighted average number of common shares outstanding used in the computations.
Taxes
The Company recorded income tax expense of $1 million for the quarter ended June 30, 2015, which equates to an effective tax rate of 34.4%.
About Investar Holding Corporation
Investar Holding Corporation, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, a state chartered bank. The Company’s primary market is South Louisiana and it currently operates 11 full service banking offices located throughout its market. At June 30, 2015, the Company had 176 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.
For further information contact:
Investar Holding Corporation
Chris Hufft
Chief Accounting Officer
(225) 227-2215
Chris.Hufft@investarbank.com
INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
| | | | | | | | |
| | | June 30, 2015 | | | December 31, 2014 | |
| | | (Unaudited) | | | | |
ASSETS | | | | | | | | |
Cash and due from banks | | $ | 7,541 | | | $ | 5,519 | |
Interest-bearing balances due from other banks | | | 16,807 | | | | 13,493 | |
Federal funds sold | | | 191 | | | | 500 | |
| | | | | | | | |
Cash and cash equivalents | | | 24,539 | | | | 19,512 | |
| | | | | | | | |
Available for sale securities at fair value (amortized cost of $82,049 and $69,838, respectively) | | | 82,236 | | | | 70,299 | |
Held to maturity securities at amortized cost (estimated fair value of $24,015 and $22,301, respectively) | | | 24,230 | | | | 22,519 | |
Loans held for sale | | | 78,212 | | | | 103,396 | |
Loans, net of allowance for loan losses of $5,728 and $4,630, respectively | | | 667,858 | | | | 618,160 | |
Other equity securities | | | 4,183 | | | | 5,566 | |
Bank premises and equipment, net of accumulated depreciation of $4,662 and $3,964, respectively | | | 29,444 | | | | 28,538 | |
Other real estate owned, net | | | 2,519 | | | | 2,735 | |
Accrued interest receivable | | | 2,432 | | | | 2,435 | |
Deferred tax asset | | | 1,624 | | | | 1,097 | |
Goodwill and other intangible assets | | | 3,195 | | | | 3,216 | |
Other assets | | | 1,383 | | | | 1,881 | |
| | | | | | | | |
Total assets | | $ | 921,855 | | | $ | 879,354 | |
| | | | | | | | |
| | | | | | | | |
LIABILITIES | | | | | | | | |
Deposits | | | | | | | | |
Noninterest-bearing | | $ | 86,339 | | | $ | 70,217 | |
Interest-bearing | | | 619,668 | | | | 557,901 | |
| | | | | | | | |
Total deposits | | | 706,007 | | | | 628,118 | |
Advances from Federal Home Loan Bank | | | 79,066 | | | | 125,785 | |
Repurchase agreements | | | 15,130 | | | | 12,293 | |
Note payable | | | 3,609 | | | | 3,609 | |
Accrued taxes and other liabilities | | | 11,170 | | | | 6,165 | |
| | | | | | | | |
Total liabilities | | | 814,982 | | | | 775,970 | |
| | | | | | | | |
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; 7,293,209 and 7,262,085 shares issued and outstanding, respectively | | | 7,295 | | | | 7,264 | |
Treasury stock | | | (26) | | | | (23) | |
Surplus | | | 84,358 | | | | 84,213 | |
Retained earnings | | | 15,461 | | | | 11,809 | |
Accumulated other comprehensive (loss) income | | | (215) | | | | 121 | |
| | | | | | | | |
Total stockholders’ equity | | | 106,873 | | | | 103,384 | |
| | | | | | | | |
Total liabilities and stockholders’ equity | | $ | 921,855 | | | $ | 879,354 | |
| | | | | | | | |
INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data)
(Unaudited)
| | | | | | | | | | | | | | | | |
| | | Three months ended | | | Six months ended | |
| | | June 30, | | | June 30, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
INTEREST INCOME | | | | | | | | | | | | | | | | |
Interest and fees on loans | | $ | 8,646 | | | $ | 7,119 | | | $ | 16,944 | | | $ | 13,794 | |
Interest on investment securities | | | 523 | | | | 278 | | | | 1,008 | | | | 550 | |
Other interest income | | | 18 | | | | 10 | | | | 35 | | �� | | 20 | |
| | | | | | | | | | | | | | | | |
Total interest income | | | 9,187 | | | | 7,407 | | | | 17,987 | | | | 14,364 | |
| | | | | | | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | | | | | |
Interest on deposits | | | 1,299 | | | | 1,050 | | | | 2,491 | | | | 2,053 | |
Interest on borrowings | | | 108 | | | | 108 | | | | 217 | | | | 194 | |
| | | | | | | | | | | | | | | | |
Total interest expense | | | 1,407 | | | | 1,158 | | | | 2,708 | | | | 2,247 | |
| | | | | | | | | | | | | | | | |
Net interest income | | | 7,780 | | | | 6,249 | | | | 15,279 | | | | 12,117 | |
| | | | |
Provision for loan losses | | | 400 | | | | 448 | | | | 1,100 | | | | 693 | |
| | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 7,380 | | | | 5,801 | | | | 14,179 | | | | 11,424 | |
| | | | | | | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | | | | | | |
Service charges on deposit accounts | | | 97 | | | | 73 | | | | 191 | | | | 136 | |
Gain on sale of investment securities, net | | | 134 | | | | 48 | | | | 134 | | | | 165 | |
Gain (loss) on sale of real estate owned, net | | | 7 | | | | (5) | | | | 6 | | | | (7) | |
Gain on sale of loans, net | | | 1,077 | | | | 1,031 | | | | 2,808 | | | | 1,655 | |
Fee income on loans held for sale, net | | | 210 | | | | 89 | | | | 510 | | | | 165 | |
Other operating income | | | 541 | | | | 273 | | | | 957 | | | | 462 | |
| | | | | | | | | | | | | | | | |
Total noninterest income | | | 2,066 | | | | 1,509 | | | | 4,606 | | | | 2,576 | |
| | | | | | | | | | | | | | | | |
Income before noninterest expense | | | 9,446 | | | | 7,310 | | | | 18,785 | | | | 14,000 | |
| | | | | | | | | | | | | | | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | | | | |
Depreciation and amortization | | | 362 | | | | 328 | | | | 719 | | | | 631 | |
Salaries and employee benefits | | | 3,971 | | | | 3,491 | | | | 7,879 | | | | 6,962 | |
Occupancy | | | 225 | | | | 181 | | | | 438 | | | | 406 | |
Data processing | | | 370 | | | | 308 | | | | 710 | | | | 586 | |
Marketing | | | 62 | | | | 71 | | | | 120 | | | | 147 | |
Professional fees | | | 237 | | | | 197 | | | | 499 | | | | 256 | |
Other operating expenses | | | 1,455 | | | | 1,153 | | | | 2,741 | | | | 2,128 | |
| | | | | | | | | | | | | | | | |
Total noninterest expense | | | 6,682 | | | | 5,729 | | | | 13,106 | | | | 11,116 | |
| | | | | | | | | | | | | | | | |
Income before income tax expense | | | 2,764 | | | | 1,581 | | | | 5,679 | | | | 2,884 | |
Income tax expense | | | 951 | | | | 514 | | | | 1,916 | | | | 938 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 1,813 | | | $ | 1,067 | | | $ | 3,763 | | | $ | 1,946 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
EARNINGS PER SHARE | | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.25 | | | $ | 0.27 | | | $ | 0.52 | | | $ | 0.50 | |
| | | | | | | | | | | | | | | | |
Diluted earnings per share | | $ | 0.25 | | | $ | 0.26 | | | $ | 0.52 | | | $ | 0.47 | |
| | | | | | | | | | | | | | | | |
Cash dividends declared per common share | | $ | 0.01 | | | $ | 0.01 | | | $ | 0.02 | | | $ | 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, | |
| | | 2015 | | | 2014 | | | 2015 | | | 2014 | |
Net income available to common shareholders | | $ | 1,813 | | | $ | 1,067 | | | $ | 3,763 | | | $ | 1,946 | |
Weighted average number of common shares outstanding – used in computation of basic earnings per common share | | | 7,219,593 | | | | 3,901,542 | | | | 7,219,415 | | | | 3,901,304 | |
Effect of dilutive securities: | | | | | | | | | | | | | | | | |
Restricted stock | | | 13,372 | | | | 44,493 | | | | 11,065 | | | | 44,272 | |
Stock options | | | 16,725 | | | | 22,810 | | | | 13,478 | | | | 22,810 | |
Stock warrants | | | 12,467 | | | | 193,498 | | | | 10,765 | | | | 193,498 | |
| | | | | | | | | | | | | | | | |
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share | | | 7,262,157 | | | | 4,162,343 | | | | 7,254,723 | | | | 4,161,884 | |
| | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.25 | | | $ | 0.27 | | | $ | 0.52 | | | $ | 0.50 | |
| | | | | | | | | | | | | | | | |
Diluted earnings per share | | $ | 0.25 | | | $ | 0.26 | | | $ | 0.52 | | | $ | 0.47 | |
| | | | | | | | | | | | | | | | |
INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | Q2 2015 | | | Q1 2015 | | | Q2 2014 | | | Qtr/Qtr | | | Year/Year | |
| | | | | | | | |
EARNINGS DATA | | | | | | | | | | | | | | | | | | | | |
Total interest income | | $ | 9,187 | | | $ | 8,800 | | | $ | 7,407 | | | | 4.40% | | | | 24.03% | |
Total interest expense | | | 1,407 | | | | 1,301 | | | | 1,158 | | | | 8.15% | | | | 21.50% | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 7,780 | | | | 7,499 | | | | 6,249 | | | | 3.75% | | | | 24.50% | |
Provision for loan losses | | | 400 | | | | 700 | | | | 448 | | | | -42.86% | | | | -10.71% | |
Total noninterest income | | | 2,066 | | | | 2,540 | | | | 1,509 | | | | -18.66% | | | | 36.91% | |
Total noninterest expense | | | 6,682 | | | | 6,424 | | | | 5,729 | | | | 4.02% | | | | 16.63% | |
| | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 2,764 | | | | 2,915 | | | | 1,581 | | | | -5.18% | | | | 74.83% | |
Income tax expense | | | 951 | | | | 965 | | | | 514 | | | | -1.45% | | | | 85.02% | |
Net income | | $ | 1,813 | | | $ | 1,950 | | | $ | 1,067 | | | | -7.03% | | | | 69.92% | |
| | | | | |
AVERAGE BALANCE SHEET DATA | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 891,581 | | | $ | 869,008 | | | $ | 697,708 | | | | 2.60% | | | | 27.79% | |
Total interest-earning assets | | | 842,984 | | | | 819,876 | | | | 650,811 | | | | 2.82% | | | | 29.53% | |
Total loans | | | 729,851 | | | | 714,338 | | | | 575,978 | | | | 2.17% | | | | 26.72% | |
Total interest-bearing deposits | | | 341,948 | | | | 584,697 | | | | 500,725 | | | | -41.52% | | | | -31.71% | |
Total interest-bearing liabilities | | | 694,497 | | | | 679,891 | | | | 572,084 | | | | 2.15% | | | | 21.40% | |
Total deposits | | | 699,151 | | | | 661,923 | | | | 565,219 | | | | 5.62% | | | | 23.70% | |
Total shareholders’ equity | | | 106,583 | | | | 104,916 | | | | 57,458 | | | | 1.59% | | | | 85.50% | |
| | | | | |
PER SHARE DATA | | | | | | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.25 | | | $ | 0.27 | | | $ | 0.27 | | | | -6.99% | | | | -6.99% | |
Diluted earnings per share | | | 0.25 | | | | 0.27 | | | | 0.26 | | | | -7.54% | | | | -3.98% | |
Book value per share | �� | | 14.65 | | | | 14.50 | | | | 14.68 | | | | 1.06% | | | | -0.18% | |
Tangible book value per share(1) | | | 14.22 | | | | 14.06 | | | | 13.86 | | | | 1.11% | | | | 2.57% | |
Common shares outstanding | | | 7,293,209 | | | | 7,268,488 | | | | 3,945,753 | | | | 0.34% | | | | 84.84% | |
| | | | | |
PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | |
Return on average assets | | | 0.82% | | | | 0.91% | | | | 0.61% | | | | -9.89% | | | | 34.43% | |
Return on average equity | | | 6.82% | | | | 7.54% | | | | 7.45% | | | | -9.55% | | | | -8.46% | |
Net interest margin | | | 3.70% | | | | 3.71% | | | | 3.85% | | | | -0.27% | | | | -3.90% | |
Net interest income to average assets | | | 3.50% | | | | 3.50% | | | | 4.26% | | | | 0.00% | | | | -17.84% | |
Noninterest expense to average assets | | | 3.01% | | | | 3.00% | | | | 3.29% | | | | 0.33% | | | | -8.51% | |
Efficiency ratio(1) | | | 67.87% | | | | 63.99% | | | | 73.85% | | | | 6.06% | | | | -8.10% | |
Dividend payout ratio | | | 3.11% | | | | 2.74% | | | | 4.56% | | | | 13.50% | | | | -31.80% | |
Net chargeoffs to average loans | | | 0.00% | | | | -0.01% | | | | 0.03% | | | | -100.00% | | | | -100.00% | |
| | | | | |
ASSET QUALITY RATIOS | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets to total assets | | | 0.56% | | | | 0.64% | | | | 0.65% | | | | -12.50% | | | | -13.85% | |
Nonperforming loans to loans | | | 0.40% | | | | 0.47% | | | | 0.23% | | | | -14.89% | | | | 73.91% | |
Allowance for loan losses to total loans | | | 0.85% | | | | 0.83% | | | | 0.69% | | | | 2.41% | | | | 23.19% | |
Allowance for loan losses to nonperforming loans | | | 213.20% | | | | 178.42% | | | | 296.24% | | | | 19.49% | | | | -28.03% | |
| | | | | |
CAPITAL RATIOS(2) | | | | | | | | | | | | | | | | | | | | |
Investar Holding Corporation: | | | | | | | | | | | | | | | | | | | | |
Total equity to total assets | | | 11.59% | | | | 12.14% | | | | 7.95% | | | | -4.50% | | | | 45.83% | |
Tangible equity to tangible assets | | | 11.29% | | | | 11.81% | | | | 7.54% | | | | -4.44% | | | | 49.68% | |
Tier 1 leverage ratio | | | 12.15% | | | | 12.25% | | | | 8.37% | | | | -0.82% | | | | 45.16% | |
Common equity tier 1 capital ratio | | | 12.96% | | | | 13.48% | | | | NA | | | | -3.86% | | | | NA | |
Tier 1 capital ratio | | | 13.39% | | | | 13.94% | | | | 9.81% | | | | -3.95% | | | | 36.49% | |
Total capital ratio | | | 14.10% | | | | 14.65% | | | | 10.46% | | | | -3.75% | | | | 34.80% | |
Investar Bank: | | | | | | | | | | | | | | | | | | | | |
Tier 1 leverage ratio | | | 11.72% | | | | 11.80% | | | | 8.99% | | | | -0.68% | | | | 30.37% | |
Common equity tier 1 capital ratio | | | 12.91% | | | | 13.43% | | | | NA | | | | -3.87% | | | | NA | |
Tier 1 capital ratio | | | 12.91% | | | | 13.43% | | | | 10.54% | | | | -3.87% | | | | 22.49% | |
Total capital ratio | | | 13.62% | | | | 14.14% | | | | 11.20% | | | | -3.68% | | | | 21.61% | |
(1) | Non-GAAP financial measures. See reconciliation. |
(2) | Beginning January 1, 2015, the capital ratios for the Company and the 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. Ratios are estimated for June 30, 2015. |
INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Three months ended June 30, |
| | | 2015 | | 2014 |
| | | Average
Balance | | Interest
Income/
Expense | | Yield/
Rate | | Average
Balance | | Interest
Income/
Expense | | Yield/
Rate |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans | | | $ | 729,851 | | | | $ | 8,646 | | | | | 4.75 | % | | | $ | 575,978 | | | | $ | 7,119 | | | | | 4.96 | % |
Securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | | 77,050 | | | | | 404 | | | | | 2.10 | | | | | 58,088 | | | | | 188 | | | | | 1.30 | |
Tax-exempt | | | | 18,948 | | | | | 119 | | | | | 2.52 | | | | | 12,995 | | | | | 90 | | | | | 2.78 | |
Interest-bearing balances with banks | | | | 17,135 | | | | | 18 | | | | | 0.42 | | | | | 3,750 | | | | | 10 | | | | | 1.07 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | | 842,984 | | | | | 9,187 | | | | | 4.37 | | | | | 650,811 | | | | | 7,407 | | | | | 4.56 | |
Cash and due from banks | | | | 5,432 | | | | | | | | | | | | | | | 11,734 | | | | | | | | | | | |
Intangible assets | | | | 3,199 | | | | | | | | | | | | | | | 3,240 | | | | | | | | | | | |
Other assets | | | | 45,532 | | | | | | | | | | | | | | | 35,534 | | | | | | | | | | | |
Allowance for loan losses | | | | (5,566) | | | | | | | | | | | | | | | (3,611) | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | $ | 891,581 | | | | | | | | | | | | | | $ | 697,708 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand | | | $ | 222,130 | | | | $ | 353 | | | | | 0.64 | % | | | $ | 166,763 | | | | $ | 262 | | | | | 0.63 | % |
Savings deposits | | | | 53,364 | | | | | 90 | | | | | 0.68 | | | | | 52,407 | | | | | 89 | | | | | 0.68 | |
Time deposits | | | | 341,948 | | | | | 856 | | | | | 1.00 | | | | | 281,555 | | | | | 699 | | | | | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | | 617,442 | | | | | 1,299 | | | | | 0.84 | | | | | 500,725 | | | | | 1,050 | | | | | 0.84 | |
Short-term borrowings | | | | 36,977 | | | | | 16 | | | | | 0.17 | | | | | 33,108 | | | | | 20 | | | | | 0.24 | |
Long-term debt | | | | 40,078 | | | | | 92 | | | | | 0.92 | | | | | 38,251 | | | | | 88 | | | | | 0.92 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | | 694,497 | | | | | 1,407 | | | | | 0.81 | | | | | 572,084 | | | | | 1,158 | | | | | 0.81 | |
Noninterest-bearing deposits | | | | 81,709 | | | | | | | | | | | | | | | 64,494 | | | | | | | | | | | |
Other liabilities | | | | 8,792 | | | | | | | | | | | | | | | 3,672 | | | | | | | | | | | |
Stockholders’ equity | | | | 106,583 | | | | | | | | | | | | | | | 57,458 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liability and stockholders’ equity | | | $ | 891,581 | | | | | | | | | | | | | | $ | 697,708 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income/net interest margin | | | | | | | | $ | 7,780 | | | | | 3.70 | % | | | | | | | | $ | 6,249 | | | | | 3.85 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six months ended June 30, |
| | | 2015 | | 2014 |
| | | Average
Balance | | Interest
Income/
Expense | | Yield/Rate | | Average
Balance | | Interest
Income/
Expense | | Yield/Rate |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans | | | $ | 722,136 | | | | $ | 16,944 | | | | | 4.73 | % | | | $ | 554,384 | | | | $ | 13,794 | | | | | 5.02 | % |
Securities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Taxable | | | | 72,812 | | | | | 770 | | | | | 2.13 | | | | | 55,859 | | | | | 379 | | | | | 1.37 | |
Tax-exempt | | | | 18,963 | | | | | 238 | | | | | 2.53 | | | | | 13,591 | | | | | 171 | | | | | 2.54 | |
Interest-bearing balances with banks | | | | 17,580 | | | | | 35 | | | | | 0.40 | | | | | 4,776 | | | | | 20 | | | | | 0.84 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | | 831,491 | | | | | 17,987 | | | | | 4.36 | | | | | 628,610 | | | | | 14,364 | | | | | 4.61 | |
Cash and due from banks | | | | 5,560 | | | | | | | | | | | | | | | 11,306 | | | | | | | | | | | |
Intangible assets | | | | 3,204 | | | | | | | | | | | | | | | 3,245 | | | | | | | | | | | |
Other assets | | | | 45,396 | | | | | | | | | | | | | | | 34,967 | | | | | | | | | | | |
Allowance for loan losses | | | | (5,295) | | | | | | | | | | | | | | | (3,504) | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | $ | 880,356 | | | | | | | | | | | | | | $ | 674,624 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and shareholders’ equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand | | | $ | 213,477 | | | | $ | 663 | | | | | 0.63 | % | | | $ | 162,760 | | | | $ | 505 | | | | | 0.63 | % |
Savings deposits | | | | 54,540 | | | | | 184 | | | | | 0.68 | | | | | 52,168 | | | | | 178 | | | | | 0.69 | |
Time deposits | | | | 333,143 | | | | | 1,644 | | | | | 1.00 | | | | | 277,219 | | | | | 1,370 | | | | | 1.00 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing deposits | | | | 601,160 | | | | | 2,491 | | | | | 0.84 | | | | | 492,147 | | | | | 2,053 | | | | | 0.84 | |
Short-term borrowings | | | | 45,145 | | | | | 40 | | | | | 0.18 | | | | | 24,153 | | | | | 25 | | | | | 0.21 | |
Long-term debt | | | | 40,929 | | | | | 177 | | | | | 0.87 | | | | | 36,203 | | | | | 169 | | | | | 0.95 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | | 687,234 | | | | | 2,708 | | | | | 0.79 | | | | | 552,503 | | | | | 2,247 | | | | | 0.82 | |
Noninterest-bearing deposits | | | | 79,480 | | | | | | | | | | | | | | | 61,845 | | | | | | | | | | | |
Other liabilities | | | | 7,888 | | | | | | | | | | | | | | | 3,324 | | | | | | | | | | | |
Stockholders’ equity | | | | 105,754 | | | | | | | | | | | | | | | 56,952 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total liability and stockholders’ equity | | | $ | 880,356 | | | | | | | | | | | | | | $ | 674,624 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income/net interest margin | | | | | | | | $ | 15,279 | | | | | 3.71 | % | | | | | | | | $ | 12,117 | | | | | 3.89 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
| | | | | | | | | | | | |
| | | June 30, | | | March 31, | |
| | | 2015 | | | 2014 | | | 2015 | |
Tangible common equity | | | | | | | | | | | | |
Total stockholder’s equity | | $ | 106,873 | | | $ | 57,940 | | | $ | 105,387 | |
Adjustments: | | | | | | | | | | | | |
Goodwill | | | 2,684 | | | | 2,684 | | | | 2,684 | |
Core deposit intangible | | | 511 | | | | 552 | | | | 522 | |
| | | | | | | | | | | | |
Tangible common equity | | $ | 103,678 | | | $ | 54,704 | | | $ | 102,181 | |
| | | | | | | | | | | | |
Tangible assets | | | | | | | | | | | | |
Total assets | | $ | 921,855 | | | $ | 729,070 | | | $ | 868,080 | |
Adjustments: | | | | | | | | | | | | |
Goodwill | | | 2,684 | | | | 2,684 | | | | 2,684 | |
Core deposit intangible | | | 511 | | | | 552 | | | | 522 | |
| | | | | | | | | | | | |
Tangible assets | | $ | 918,660 | | | $ | 725,834 | | | $ | 864,874 | |
| | | | | | | | | | | | |
| | | | | | | | | | | | |
Common shares outstanding | | | 7,293,209 | | | | 3,945,753 | | | | 7,268,488 | |
Tangible equity to tangible assets | | | 11.29% | | | | 7.54% | | | | 11.81% | |
Book value per common share | | $ | 14.65 | | | $ | 14.68 | | | $ | 14.50 | |
Tangible book value per common share | | $ | 14.22 | | | $ | 13.86 | | | $ | 14.06 | |
| | | | | | | | | | | | | | |
| | | | | Three months ended | |
| | | | | June 30, | | | March 31, | |
| | | | | 2015 | | | 2014 | | | 2015 | |
Efficiency ratio | | | | | | | | | | | | | | |
Net interest income | | (a) | | | 7,780 | | | | 6,249 | | | | 7,499 | |
Provision for loan losses | | | | | 400 | | | | 448 | | | | 700 | |
| | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | | | 7,380 | | | | 5,801 | | | | 6,799 | |
| | | | | | | | | | | | | | |
Noninterest income | | (b) | | | 2,066 | | | | 1,509 | | | | 2,540 | |
| | | | | | | | | | | | | | |
Total noninterest expense | | (c) | | | 6,682 | | | | 5,729 | | | | 6,424 | |
| | | | | | | | | | | | | | |
Efficiency ratio | | (c) / (a+b) | | | 67.87% | | | | 73.85% | | | | 63.99% | |
