Investar Holding Corporation (NASDAQ: ISTR) (the “Company”), the
holding company for Investar Bank, National Association (the
“Bank”), today announced financial results for the quarter ended
September 30, 2019. The Company reported net income of $4.7
million, or $0.46 per diluted common share, for the third quarter
of 2019, compared to $4.9 million, or $0.48 per diluted common
share, for the quarter ended June 30, 2019, and $4.0 million,
or $0.41 per diluted common share, for the quarter ended
September 30, 2018.
On a non-GAAP basis, core earnings per diluted
common share for the third quarter were $0.48 compared to $0.47 for
the second quarter of 2019 and $0.41 for the quarter ended
September 30, 2018. Core earnings exclude certain
non-operating items including, but not limited to, acquisition
expense and changes in the fair value of equity securities (refer
to the Reconciliation of Non-GAAP Financial Measures table for a
reconciliation of GAAP to non-GAAP metrics).
The Company’s balance sheet and statement of
income as of and for the three months ended September 30, 2019 and
June 30, 2019 include the impact of the Company’s acquisition of
Mainland Bank (“Mainland”), which was completed on March 1, 2019.
As of the acquisition date, Mainland had approximately $127.1
million in total assets, including $82.4 million in loans, and
approximately $107.6 million in deposits. The assets acquired and
liabilities assumed have been recorded at fair value in the
Company’s consolidated balance sheet and are subject to change
pending finalization of all valuations.
Investar Holding Corporation President and Chief
Executive Officer John D’Angelo said:
“We are pleased to announce strong third quarter
performance. We experienced solid organic loan growth of 2.8%
during the quarter, or 11.2% annualized, and remain confident that
we will achieve our target organic loan growth of 8% to 10% for the
year. We are focused on improving profitability while creating
shareholder value by continuing to grow both EPS and the franchise
organically and through M&A.
During the third quarter, we announced a
definitive agreement to acquire Bank of York which will expand our
footprint into the west Alabama market. We are excited to expand
into new markets and have the opportunity to serve more customers
in more communities. The Office of the Comptroller of the Currency
and the shareholders of Bank of York have approved the acquisition,
and we expect to close the acquisition on or about November 1,
2019. We also announced an agreement whereby the Bank will acquire
certain assets, deposits and other liabilities relating to two
existing branch locations of Dallas, Texas-based PlainsCapital
Bank. The branches are located in the Texas cities of Victoria and
Alice, which further expands our existing Texas footprint.”
Third Quarter Highlights
- Total revenues, or interest and
noninterest income, for the quarter ended September 30, 2019
totaled $24.5 million, an increase of $0.3 million, or 1.4%,
compared to the quarter ended June 30, 2019, and an increase
of $4.5 million, or 22.4%, compared to the quarter ended
September 30, 2018.
- Total loans increased $43.0
million, or 2.8%, to $1.59 billion at September 30, 2019,
compared to $1.54 billion at June 30, 2019, and increased
$227.9 million, or 16.8% compared to $1.36 billion at
September 30, 2018. Excluding the loans acquired in the
Mainland acquisition, or $73.2 million at September 30, 2019,
total loans increased $47.4 million, or 3.2%, compared to
June 30, 2019, and increased $154.7 million, or 11.4%,
compared to September 30, 2018.
- The business lending portfolio,
which consists of loans secured by owner-occupied commercial real
estate properties and commercial and industrial loans, was $632.4
million at September 30, 2019, an increase of $16.4 million,
or 2.7%, compared to the business lending portfolio of $616.0
million at June 30, 2019, and an increase of $147.7 million,
or 30.5%, compared to the business lending portfolio of $484.7
million at September 30, 2018.
- Credit quality remains strong with
nonperforming loans of 0.36% of total loans at September 30,
2019 compared to 0.37% and 0.47% at June 30, 2019 and
September 30, 2018, respectively.
- Total deposits increased $33.1
million, or 2.1%, to $1.59 billion at September 30, 2019,
compared to $1.55 billion at June 30, 2019, and increased
$289.7 million, or 22.4%, compared to $1.30 billion at
September 30, 2018. The Company acquired approximately $107.6
million in deposits from Mainland at the time of acquisition on
March 1, 2019, and the remaining increase is due to organic
growth.
- The Company repurchased 18,707
shares of its common stock through its stock repurchase program at
an average price of $22.83 during the quarter ended
September 30, 2019, leaving 326,334 shares authorized for
repurchase under the current stock repurchase plan.
- On July 30, 2019, the Company
announced that it has entered into a definitive agreement (the
“Merger Agreement”) to acquire Bank of York in York, Alabama. Under
the terms of the Merger Agreement, the Company will pay a total
amount of cash merger consideration to shareholders of Bank of York
equal to $15.0 million. Bank of York will also be permitted under
the Merger Agreement to make regular and special pre-closing cash
distributions to its shareholders in an aggregate amount of
approximately $1.0 million. The transaction has received required
regulatory and Bank of York shareholder approval, and the Company
anticipates it will close the Bank of York acquisition on or about
November 1, 2019, subject to customary closing conditions. Branch
and operating system conversions are currently scheduled to be
completed in the second quarter of 2020. At June 30, 2019, Bank of
York had approximately $99.5 million in assets, $46.0 million in
net loans, and $82.3 million in deposits.
- On August 20, 2019, the Company
announced that it is has entered into a Purchase and Assumption
Agreement (the “Agreement”) whereby the Bank has agreed to acquire
certain assets, deposits and other liabilities relating to two
existing branch locations of PlainsCapital Bank in Dallas, Texas, a
wholly-owned subsidiary of Hilltop Holdings Inc. The branches are
located in the Texas cities of Victoria and Alice. Under the terms
of the Agreement, the Bank expects to acquire approximately $42
million in deposits and approximately $52 million in loans. In
addition, the Bank will acquire substantially all the fixed assets
at the branch locations, and will assume the leases for the branch
facilities. The transaction is expected to close in the first
quarter of 2020, subject to regulatory approvals and other
customary closing conditions.
- The Company announced that it will
be opening two new branch locations in the fourth quarter of 2019.
One branch is located in Lafayette, Louisiana and will expand the
Bank’s presence to five branches in the Acadiana market. Another
branch will be opened in Westlake, Louisiana, which will be the
Bank’s first branch in the Lake Charles market.
Loans
Total loans were $1.59 billion at
September 30, 2019, an increase of $43.0 million, or 2.8%,
compared to June 30, 2019, and an increase of $227.9 million,
or 16.8%, compared to September 30, 2018. Excluding the loans
acquired in the Mainland acquisition, or $73.2 million at
September 30, 2019, total loans increased $47.4 million, or
3.2%, compared to June 30, 2019, and increased $154.7 million,
or 11.4%, compared to September 30, 2018. We experienced the
majority of our loan growth in the commercial real estate and
commercial and industrial portfolios for the quarter ended
September 30, 2019 as we remain focused on relationship
banking and growing our commercial loan portfolio.
The following table sets forth the composition
of the total loan portfolio as of the dates indicated (dollars in
thousands).
| |
|
|
|
|
|
|
|
Linked Quarter |
|
|
|
Percentage of Total |
| |
|
|
|
|
|
|
|
Change |
|
Year/Year Change |
|
Loans |
| |
|
9/30/2019 |
|
6/30/2019 |
|
9/30/2018 |
|
$ |
|
% |
|
$ |
|
% |
|
9/30/2019 |
|
9/30/2018 |
| Mortgage loans on real
estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and development |
|
$ |
176,674 |
|
|
$ |
167,232 |
|
|
$ |
160,921 |
|
|
$ |
9,442 |
|
|
5.6 |
% |
|
$ |
15,753 |
|
|
9.8 |
% |
|
11.1 |
% |
|
11.9 |
% |
|
1-4 Family |
|
310,298 |
|
|
305,512 |
|
|
286,976 |
|
|
4,786 |
|
|
1.6 |
|
|
23,322 |
|
|
8.1 |
|
|
19.6 |
|
|
21.1 |
|
|
Multifamily |
|
58,243 |
|
|
56,081 |
|
|
50,770 |
|
|
2,162 |
|
|
3.9 |
|
|
7,473 |
|
|
14.7 |
|
|
3.7 |
|
|
3.7 |
|
|
Farmland |
|
24,629 |
|
|
25,203 |
|
|
20,902 |
|
|
(574 |
) |
|
(2.3 |
) |
|
3,727 |
|
|
17.8 |
|
|
1.5 |
|
|
1.5 |
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner-occupied |
|
339,240 |
|
|
339,130 |
|
|
291,168 |
|
|
110 |
|
|
— |
|
|
48,072 |
|
|
16.5 |
|
|
21.4 |
|
|
21.4 |
|
|
Nonowner-occupied |
|
353,910 |
|
|
338,426 |
|
|
301,828 |
|
|
15,484 |
|
|
4.6 |
|
|
52,082 |
|
|
17.3 |
|
|
22.3 |
|
|
22.2 |
|
| Commercial and industrial |
|
293,152 |
|
|
276,902 |
|
|
193,563 |
|
|
16,250 |
|
|
5.9 |
|
|
99,589 |
|
|
51.5 |
|
|
18.5 |
|
|
14.3 |
|
| Consumer |
|
30,196 |
|
|
34,822 |
|
|
52,284 |
|
|
(4,626 |
) |
|
(13.3 |
) |
|
(22,088 |
) |
|
(42.2 |
) |
|
1.9 |
|
|
3.9 |
|
|
Total loans |
|
$ |
1,586,342 |
|
|
$ |
1,543,308 |
|
|
$ |
1,358,412 |
|
|
$ |
43,034 |
|
|
2.8 |
% |
|
$ |
227,930 |
|
|
16.8 |
% |
|
100 |
% |
|
100 |
% |
At September 30, 2019, 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 $632.4 million, an increase of $16.4 million,
or 2.7%, compared to the business lending portfolio of $616.0
million at June 30, 2019, and an increase of $147.7 million,
or 30.5%, compared to the business lending portfolio of $484.7
million at September 30, 2018. The increase in the business
lending portfolio compared to June 30, 2019 and
September 30, 2018 is mainly attributable to increased
production of our Commercial and Industrial Division. The increase
in the business lending portfolio compared to September 30,
2018 is also partly attributable to loans acquired from Mainland on
March 1, 2019, which included owner-occupied commercial real estate
and commercial and industrial loans with a total balance of $45.7
million at September 30, 2019.
Consumer loans, including indirect auto loans of
$17.9 million, totaled $30.2 million at September 30, 2019, a
decrease of $4.6 million, or 13.3%, compared to $34.8 million,
including indirect auto loans of $21.6 million, at June 30,
2019, and a decrease of $22.1 million, or 42.2%, compared to $52.3
million, including indirect auto loans of $35.9 million, at
September 30, 2018. The decrease in consumer loans is mainly
attributable to the scheduled paydowns of this portfolio and is
consistent with our business strategy.
Credit Quality
Nonperforming loans were $5.7 million at
September 30, 2019 and June 30, 2019, or 0.36% and 0.37%
of total loans, at September 30, 2019 and June 30, 2019,
respectively, a decrease of $0.6 million compared to $6.3 million,
or 0.47% of total loans, at September 30, 2018.
The allowance for loan losses was $10.3 million,
or 182.40% and 0.65% of nonperforming loans and total loans,
respectively, at September 30, 2019, compared to $9.9 million,
or 173.43% and 0.64%, respectively, at June 30, 2019, and $9.0
million, or 142.16% and 0.66%, respectively, at September 30,
2018.
The provision for loan losses was $0.5 million
for the quarter ended September 30, 2019 compared to $0.4
million for the quarter ended June 30, 2019 and $0.8 million
for the quarter ended September 30, 2018. The changes in the
provision for loan losses compared to the quarters ended
June 30, 2019 and September 30, 2018, are primarily
attributable to the changes in incremental loan growth, excluding
acquired loan balances, as credit quality and other factors
impacting our allowance and related provision were relatively
unchanged period over period.
Deposits
Total deposits at September 30, 2019 were
$1.59 billion, an increase of $33.1 million, or 2.1%, compared to
June 30, 2019, and an increase of $289.7 million, or 22.4%,
compared to September 30, 2018. The Company acquired
approximately $107.6 million in deposits from Mainland at the time
of acquisition on March 1, 2019.
The following table sets forth the composition of deposits as of
the dates indicated (dollars in thousands).
| |
|
|
|
|
|
|
|
Linked Quarter |
|
|
|
Percentage of |
| |
|
|
|
|
|
|
|
Change |
|
Year/Year Change |
|
Total Deposits |
| |
|
9/30/2019 |
|
6/30/2019 |
|
9/30/2018 |
|
$ |
|
% |
|
$ |
|
% |
|
9/30/2019 |
|
9/30/2018 |
|
Noninterest-bearing demand deposits |
|
$ |
291,039 |
|
|
$ |
289,481 |
|
|
$ |
214,190 |
|
|
$ |
1,558 |
|
|
0.5 |
% |
|
$ |
76,849 |
|
|
35.9 |
% |
|
18.3 |
% |
|
16.5 |
% |
| Interest-bearing demand
deposits |
|
305,361 |
|
|
332,754 |
|
|
245,569 |
|
|
(27,393 |
) |
|
(8.2 |
) |
|
59,792 |
|
|
24.3 |
|
|
19.3 |
|
|
19.0 |
|
| Money market deposit
accounts |
|
194,757 |
|
|
177,209 |
|
|
179,071 |
|
|
17,548 |
|
|
9.9 |
|
|
15,686 |
|
|
8.8 |
|
|
12.3 |
|
|
13.8 |
|
| Savings accounts |
|
110,636 |
|
|
111,222 |
|
|
112,078 |
|
|
(586 |
) |
|
(0.5 |
) |
|
(1,442 |
) |
|
(1.3 |
) |
|
7.0 |
|
|
8.7 |
|
| Time deposits |
|
683,564 |
|
|
641,551 |
|
|
544,713 |
|
|
42,013 |
|
|
6.5 |
|
|
138,851 |
|
|
25.5 |
|
|
43.1 |
|
|
42.0 |
|
| Total
deposits |
|
$ |
1,585,357 |
|
|
$ |
1,552,217 |
|
|
$ |
1,295,621 |
|
|
$ |
33,140 |
|
|
2.1 |
% |
|
$ |
289,736 |
|
|
22.4 |
% |
|
100.0 |
% |
|
100.0 |
% |
Interest-bearing demand deposits and time
deposits at September 30, 2019 increased $59.8 million and
$138.9 million, respectively, compared to September 30, 2018.
These increases are mainly attributable to the increased rates
offered for our interest-bearing demand deposits and time deposits
to remain competitive in our markets. Noninterest-bearing demand
deposits at September 30, 2019 increased $76.8 million
compared to September 30, 2018. While some of this growth was
a result of acquisition, we continue to focus on relationship
banking and growing our commercial relationships while improving
our deposit mix with growth in noninterest-bearing deposits as a
percentage of total deposits.
Net Interest Income
Net interest income for the third quarter of
2019 totaled $16.4 million, an increase of $35.0 thousand, or 0.2%,
compared to the second quarter of 2019, and an increase of $2.0
million, or 13.8%, compared to the third quarter of 2018. Interest
accretion from acquired loans of $0.4 million, $0.4 million, and
$0.6 million is included in interest income for the quarters ended
September 30, 2019, June 30, 2019 and September 30,
2018, respectively. Also included in interest income for the
quarters ended September 30, 2019 and June 30, 2019 are interest
recoveries of $24.3 thousand and $74.7 thousand, respectively, on
acquired loans.
Interest income for the third quarter of 2019
increased $4.1 million compared to the third quarter of 2018, with
$3.3 million and $0.8 million due to increases in the volume and
yield, respectively, of interest-earning assets. This increase in
interest income was partially offset by an increase in interest
expense of $2.1 million, with $0.5 million and $1.6 million due to
increases in the volume and cost, respectively, of interest-bearing
liabilities compared to the third quarter of 2018.
The Company’s net interest margin was 3.48% for
the quarter ended September 30, 2019 compared to 3.59% for the
quarter ended June 30, 2019 and 3.56% for the quarter ended
September 30, 2018. The yield on interest-earning assets was
4.86% for the quarter ended September 30, 2019 compared to
4.93% for the quarter ended June 30, 2019 and 4.65% for the
quarter ended September 30, 2018. The decrease in the net
interest margin for the quarter ended September 30, 2019
compared to the quarter ended June 30, 2019 is primarily
attributable to an increase in the cost of time deposits which
negatively impacted the net interest margin by approximately six
basis points. The decrease in net interest margin for the quarter
ended September 30, 2019 compared to the quarter ended
September 30, 2018 was driven by an increase in the cost of
funds required to fund the increase in assets.
Exclusive of the interest income accretion from
the acquisition of loans, discussed above, as well as the $24.3
thousand and $74.7 thousand of interest recoveries in the quarters
ended September 30, 2019 and June 30, 2019, respectively, net
interest margin was 3.39% for the quarter ended September 30,
2019 compared to 3.49% for the quarter ended June 30, 2019 and
3.42% for the quarter ended September 30, 2018, while the
yield on interest-earning assets was 4.77% for the quarter ended
September 30, 2019 compared to 4.82% and 4.51% for the
quarters ended June 30, 2019 and September 30, 2018,
respectively.
The cost of deposits increased 9 basis points to
1.61% for the quarter ended September 30, 2019 compared to
1.52% for the quarter ended June 30, 2019, and increased 47
basis points compared to 1.14% for the quarter ended
September 30, 2018. The increase in the cost of deposits
compared to the quarters ended June 30, 2019 and
September 30, 2018 reflects the increased rates offered during
the period for our interest-bearing demand deposits and time
deposits to remain competitive in our markets and attract new
deposits. The overall cost of funds for the quarter ended
September 30, 2019 increased 6 and 39 basis points to 1.73%
compared to 1.67% and 1.34% for the quarters ended June 30,
2019 and September 30, 2018, respectively. The increase in the
cost of funds at September 30, 2019 compared to June 30,
2019 and September 30, 2018 is mainly a result of an increase
in the cost of deposits but is also driven by the increased cost of
borrowed funds used to finance loan and investment activity.
Noninterest Income
Noninterest income for the third quarter of 2019
totaled $1.6 million, a decrease of $0.1 million, or 7.1%, compared
to the second quarter of 2019, and an increase of $0.4 million, or
33.0%, compared to the third quarter of 2018. The decrease in
noninterest income in the third quarter of 2019 compared to the
quarter ended June 30, 2019 is mainly attributable to the $0.2
million in net gains recognized in the second quarter of 2019 on
the sales of approximately $61.9 million in investment securities
as we sought to better position the balance sheet for potential
reductions in short term interest rates. The decrease was partially
offset by a $0.1 million increase in other operating income. Other
operating income includes, among other things, various operations
fees and income recognized on certain equity method
investments.
The increase in noninterest income compared to
the third quarter of 2018 is primarily a result of a $0.4 million
increase in other operating income.
Noninterest Expense
Noninterest expense for the third quarter of
2019 totaled $11.7 million, an increase of $0.1 million, or 1.1%,
compared to the second quarter of 2019, and an increase of $1.4
million, or 13.9%, compared to the third quarter of 2018.
The increase in noninterest expense for the
quarter ended September 30, 2019 compared to the quarter ended
June 30, 2019 is mainly attributable to increases in salaries
and employee benefits and acquisition expenses, partially offset by
a decrease in other operating expenses. The increase in employee
benefits expense is attributable to higher health insurance claims
and increased bonus expense compared to the second quarter of 2019.
The increase in acquisition expense compared to the second quarter
of 2019 is a result of the pending acquisition of Bank of York in
York, Alabama which the Company announced in July 2019. The
decrease in other operating expenses primarily resulted from
decreases in FDIC assessments, software expense and repair and
maintenance expense.
The increase in noninterest expense for the
third quarter of 2019 compared to the third quarter of 2018 is
primarily attributable to increases in depreciation and
amortization, salaries and employee benefits, data processing and
acquisition expense. The increase in depreciation and amortization
resulted from various projects including equipment upgrades at
acquired branches, as well as the acquisition of Mainland, which
added fixed assets of approximately $2.6 million in March 2019. The
increase in salaries and employee benefits compared to the third
quarter of 2018 is mainly attributable to the staffing mix
throughout the year, as well as the additional staff from the
Mainland acquisition. Data processing expense increased due to the
increase in the volume of bank activity after the Company added the
three branches from the Mainland acquisition. The increase in
acquisition expense compared to the third quarter of 2018 is a
result of the pending acquisition of Bank of York, mentioned
above.
Taxes
The Company recorded income tax expense of $1.1
million for the quarter ended September 30, 2019, which
equates to an effective tax rate of 19.2%, a decrease from the
effective tax rate of 19.8% and an increase from the effective tax
rate of 11.3% for the quarters ended June 30, 2019 and
September 30, 2018, respectively. The increase in the
effective tax rate compared to the quarter ended September 30,
2018 is the result of a discrete tax benefit of $0.3 million
recorded by the Company in the third quarter of 2018 related to
return-to-provision adjustments. Management expects the Company’s
effective tax rate to approximate 20% in 2019.
Basic and Diluted Earnings Per Common
Share
The Company reported basic and diluted earnings
per common share of $0.46 for the quarter ended September 30,
2019, a decrease of $0.03 and $0.02 compared to basic and diluted
earnings per common share of $0.49 and $0.48, respectively, for the
quarter ended June 30, 2019, and an increase of $0.04 and
$0.05 compared to basic and diluted earnings per common share of
$0.42 and $0.41, respectively, for the quarter ended
September 30, 2018.
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, National Association, a national bank. The Bank
serves several markets across south Louisiana with 21 branches, and
serves the greater Houston market in southeast Texas with three
branches. At September 30, 2019, the Company had 285 full-time
equivalent employees.
Non-GAAP Financial Measures
This press release contains financial
information determined by methods other than in accordance with
generally accepted accounting principles in the United States of
America, or GAAP. These measures and ratios include “tangible
common equity,” “tangible assets,” “tangible equity to tangible
assets,” “tangible book value per common share,” “core noninterest
income,” “core earnings before noninterest expense,” “core
noninterest expense,” “core earnings before income tax expense,”
“core income tax expense,” “core earnings,” “core efficiency
ratio,” “core return on average assets,” “core return on average
equity,” “core basic earnings per share,” and “core diluted
earnings per share.” Management believes these non-GAAP financial
measures provide information useful to investors in understanding
the Company’s financial results, and the Company believes that its
presentation, together with the accompanying reconciliations,
provide a more complete understanding of factors and trends
affecting the Company’s business and allow investors to view
performance in a manner similar to management, the entire financial
services sector, bank stock analysts and bank regulators. These
non-GAAP measures should not be considered a substitute for GAAP
basis measures and results, and the Company strongly encourages
investors to review its consolidated financial statements in their
entirety and not to rely on any single financial measure. Because
non-GAAP financial measures are not standardized, it may not be
possible to compare these financial measures with other companies’
non-GAAP financial measures having the same or similar
names. A reconciliation of the non-GAAP financial measures
disclosed in this press release to the comparable GAAP financial
measures is included at the end of the financial statement
tables.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 that reflect the Company’s current views with
respect to, among other things, future events and financial
performance. The Company generally identifies forward-looking
statements by terminology such as “outlook,” “believes,” “expects,”
“potential,” “continues,” “may,” “will,” “could,” “should,”
“seeks,” “approximately,” “predicts,” “intends,” “plans,”
“estimates,” “anticipates,” or the negative version of those words
or other comparable words. Any forward-looking statements contained
in this press release are based on the historical performance of
the Company and its subsidiaries or on the Company’s current plans,
estimates and expectations. The inclusion of this forward-looking
information should not be regarded as a representation by the
Company that the future plans, estimates or expectations by the
Company will be achieved. Such forward-looking statements are
subject to various risks and uncertainties and assumptions relating
to the Company’s operations, financial results, financial
condition, business prospects, growth strategy and liquidity. If
one or more of these or other risks or uncertainties materialize,
or if the Company’s underlying assumptions prove to be incorrect,
the Company’s actual results may vary materially from those
indicated in these statements. The Company does not undertake any
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future
developments or otherwise. A number of important factors could
cause actual results to differ materially from those indicated by
the forward-looking statements. These factors include, but are not
limited to, the following, any one or more of which could
materially affect the outcome of future events:
- business and economic conditions
generally and in the financial services industry in particular,
whether nationally, regionally or in the markets in which we
operate;
- our ability to achieve organic loan
and deposit growth, and the composition of that growth;
- our ability to identify and enter
into agreements to combine with attractive acquisition candidates,
finance acquisitions, complete acquisitions after definitive
agreements are entered into, and successfully integrate acquired
operations;
- changes (or the lack of changes) in
interest rates, yield curves and interest rate spread relationships
that affect our loan and deposit pricing;
- possible cessation or market
replacement of LIBOR and the related effect on our LIBOR-based
financial products and contracts, including, but not limited to,
hedging products, debt obligations, investments and loans;
- the extent of continuing client
demand for the high level of personalized service that is a key
element of our banking approach as well as our ability to execute
our strategy generally;
- our dependence on our management
team, and our ability to attract and retain qualified
personnel;
- changes in the quality or
composition of our loan or investment portfolios, including adverse
developments in borrower industries or in the repayment ability of
individual borrowers;
- inaccuracy of the assumptions and
estimates we make in establishing reserves for probable loan losses
and other estimates;
- the concentration of our business
within our geographic areas of operation in Louisiana and Texas,
and, upon completion of our acquisition of Bank of York,
Alabama;
- concentration of credit exposure;
and
- the satisfaction of the conditions
to closing the pending acquisition of Bank of York and the ability
to subsequently integrate it effectively.
These factors should not be construed as
exhaustive. Additional information on these and other risk factors
can be found in Item 1A. “Risk Factors” and in the “Special Note
Regarding Forward-Looking Statements” in Item 7. “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” in the Company’s Annual Report on Form 10-K for the
year ended December 31, 2018, filed with the Securities and
Exchange Commission.
For further information contact:
Investar Holding CorporationChris HufftChief Financial
Officer(225) 227-2215Chris.Hufft@investarbank.com
|
INVESTAR HOLDING CORPORATION |
|
SUMMARY FINANCIAL INFORMATION |
|
(Amounts in thousands, except share data) |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
As of and for the three months ended |
| |
|
|
|
|
|
|
|
Linked |
|
|
| |
|
9/30/2019 |
|
6/30/2019 |
|
9/30/2018 |
|
Quarter |
|
Year/Year |
| EARNINGS
DATA |
|
|
|
|
|
|
|
|
|
|
|
Total interest income |
|
$ |
22,854 |
|
|
$ |
22,388 |
|
|
$ |
18,777 |
|
|
2.1 |
% |
|
21.7 |
% |
| Total interest expense |
|
6,488 |
|
|
6,057 |
|
|
4,392 |
|
|
7.1 |
|
|
47.7 |
|
| Net interest income |
|
16,366 |
|
|
16,331 |
|
|
14,385 |
|
|
0.2 |
|
|
13.8 |
|
| Provision for loan losses |
|
538 |
|
|
369 |
|
|
785 |
|
|
45.8 |
|
|
(31.5 |
) |
| Total noninterest income |
|
1,618 |
|
|
1,742 |
|
|
1,217 |
|
|
(7.1 |
) |
|
32.9 |
|
| Total noninterest expense |
|
11,682 |
|
|
11,554 |
|
|
10,254 |
|
|
1.1 |
|
|
13.9 |
|
| Income before income
taxes |
|
5,764 |
|
|
6,150 |
|
|
4,563 |
|
|
(6.3 |
) |
|
26.3 |
|
| Income tax expense |
|
1,107 |
|
|
1,216 |
|
|
516 |
|
|
(9.0 |
) |
|
114.5 |
|
| Net income |
|
$ |
4,657 |
|
|
$ |
4,934 |
|
|
$ |
4,047 |
|
|
(5.6 |
) |
|
15.1 |
|
| |
|
|
|
|
|
|
|
|
|
|
| AVERAGE BALANCE SHEET
DATA |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
1,999,240 |
|
|
$ |
1,951,559 |
|
|
$ |
1,705,733 |
|
|
2.4 |
% |
|
17.2 |
% |
| Total interest-earning
assets |
|
1,864,218 |
|
|
1,823,196 |
|
|
1,603,711 |
|
|
2.3 |
|
|
16.2 |
|
| Total loans |
|
1,560,841 |
|
|
1,523,004 |
|
|
1,311,158 |
|
|
2.5 |
|
|
19.0 |
|
| Total interest-bearing
deposits |
|
1,284,646 |
|
|
1,236,324 |
|
|
1,045,326 |
|
|
3.9 |
|
|
22.9 |
|
| Total interest-bearing
liabilities |
|
1,488,776 |
|
|
1,455,623 |
|
|
1,301,248 |
|
|
2.3 |
|
|
14.4 |
|
| Total deposits |
|
1,570,289 |
|
|
1,514,146 |
|
|
1,260,913 |
|
|
3.7 |
|
|
24.5 |
|
| Total stockholders’
equity |
|
208,957 |
|
|
203,911 |
|
|
178,735 |
|
|
2.5 |
|
|
16.9 |
|
| |
|
|
|
|
|
|
|
|
|
|
| PER SHARE
DATA |
|
|
|
|
|
|
|
|
|
|
| Earnings: |
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per common share |
|
$ |
0.46 |
|
|
$ |
0.49 |
|
|
$ |
0.42 |
|
|
(6.1 |
)% |
|
9.5 |
% |
|
Diluted earnings per common share |
|
0.46 |
|
|
0.48 |
|
|
0.41 |
|
|
(4.2 |
) |
|
12.2 |
|
| Core Earnings(1): |
|
|
|
|
|
|
|
|
|
|
|
Core basic earnings per common share(1) |
|
0.48 |
|
|
0.47 |
|
|
0.42 |
|
|
2.1 |
|
|
14.3 |
|
|
Core diluted earnings per common share(1) |
|
0.48 |
|
|
0.47 |
|
|
0.41 |
|
|
2.1 |
|
|
17.1 |
|
| Book value per common
share |
|
21.19 |
|
|
20.68 |
|
|
18.69 |
|
|
2.5 |
|
|
13.4 |
|
| Tangible book value per common
share(1) |
|
18.56 |
|
|
18.02 |
|
|
16.60 |
|
|
3.0 |
|
|
11.8 |
|
| Common shares outstanding |
|
9,929,860 |
|
|
9,937,752 |
|
|
9,545,701 |
|
|
(0.1 |
) |
|
4.0 |
|
| Weighted average common shares
outstanding - basic |
|
9,935,221 |
|
|
10,008,882 |
|
|
9,563,550 |
|
|
(0.7 |
) |
|
3.9 |
|
| Weighted average common shares
outstanding - diluted |
|
10,037,934 |
|
|
10,104,246 |
|
|
9,682,880 |
|
|
(0.7 |
) |
|
3.7 |
|
| |
|
|
|
|
|
|
|
|
|
|
| PERFORMANCE
RATIOS |
|
|
|
|
|
|
|
|
|
|
| Return on average assets |
|
0.92 |
% |
|
1.01 |
% |
|
0.94 |
% |
|
(8.9 |
)% |
|
(2.1 |
)% |
| Core return on average
assets(1) |
|
0.95 |
|
|
0.97 |
|
|
0.92 |
|
|
(2.1 |
) |
|
3.3 |
|
| Return on average equity |
|
8.84 |
|
|
9.70 |
|
|
8.98 |
|
|
(8.9 |
) |
|
(1.6 |
) |
| Core return on average
equity(1) |
|
9.13 |
|
|
9.25 |
|
|
8.81 |
|
|
(1.3 |
) |
|
3.6 |
|
| Net interest margin |
|
3.48 |
|
|
3.59 |
|
|
3.56 |
|
|
(3.1 |
) |
|
(2.2 |
) |
| Net interest income to average
assets |
|
3.25 |
|
|
3.34 |
|
|
3.35 |
|
|
(2.7 |
) |
|
(3.0 |
) |
| Noninterest expense to average
assets |
|
2.32 |
|
|
2.42 |
|
|
2.39 |
|
|
(4.1 |
) |
|
(2.9 |
) |
| Efficiency ratio(2) |
|
64.96 |
|
|
63.93 |
|
|
65.72 |
|
|
1.6 |
|
|
(1.2 |
) |
| Core efficiency ratio(1) |
|
63.95 |
|
|
64.96 |
|
|
64.09 |
|
|
(1.6 |
) |
|
(0.2 |
) |
| Dividend payout ratio |
|
13.04 |
|
|
11.24 |
|
|
10.63 |
|
|
16.0 |
|
|
22.7 |
|
| Net charge-offs to average
loans |
|
0.01 |
|
|
0.01 |
|
|
0.02 |
|
|
— |
|
|
(50.0 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP financial measure. See reconciliation. |
|
(2) Efficiency ratio represents noninterest expenses divided by the
sum of net interest income (before provision for loan losses) and
noninterest income. |
|
|
|
INVESTAR HOLDING CORPORATION |
|
SUMMARY FINANCIAL INFORMATION |
|
(Amounts in thousands, except share data) |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
As of and for the three months ended |
| |
|
|
|
|
|
|
|
Linked |
|
|
| |
|
9/30/2019 |
|
6/30/2019 |
|
9/30/2018 |
|
Quarter |
|
Year/Year |
| ASSET QUALITY
RATIOS |
|
|
|
|
|
|
|
|
|
|
|
Nonperforming assets to total assets |
|
0.29 |
% |
|
0.36 |
% |
|
0.61 |
% |
|
(19.4 |
)% |
|
(52.5 |
)% |
| Nonperforming loans to total
loans |
|
0.36 |
|
|
0.37 |
|
|
0.47 |
|
|
(2.7 |
) |
|
(23.4 |
) |
| Allowance for loan losses to
total loans |
|
0.65 |
|
|
0.64 |
|
|
0.66 |
|
|
1.6 |
|
|
(1.5 |
) |
| Allowance for loan losses to
nonperforming loans |
|
182.40 |
|
|
173.43 |
|
|
142.16 |
|
|
5.2 |
|
|
28.3 |
|
| |
|
|
|
|
|
|
|
|
|
|
| CAPITAL
RATIOS |
|
|
|
|
|
|
|
|
|
|
| Investar Holding
Corporation: |
|
|
|
|
|
|
|
|
|
|
| Total equity to total
assets |
|
10.43 |
% |
|
10.29 |
% |
|
10.28 |
% |
|
1.4 |
% |
|
1.5 |
% |
| Tangible equity to tangible
assets(1) |
|
9.25 |
|
|
9.09 |
|
|
9.24 |
|
|
1.8 |
|
|
0.1 |
|
| Tier 1 leverage ratio |
|
9.60 |
|
|
9.59 |
|
|
10.08 |
|
|
0.1 |
|
|
(4.8 |
) |
| Common equity tier 1 capital
ratio(2) |
|
10.93 |
|
|
10.51 |
|
|
11.43 |
|
|
4.0 |
|
|
(4.4 |
) |
| Tier 1 capital ratio(2) |
|
11.32 |
|
|
10.89 |
|
|
11.88 |
|
|
3.9 |
|
|
(4.7 |
) |
| Total capital ratio(2) |
|
13.04 |
|
|
12.56 |
|
|
13.79 |
|
|
3.8 |
|
|
(5.4 |
) |
| Investar
Bank: |
|
|
|
|
|
|
|
|
|
|
| Tier 1 leverage ratio |
|
10.58 |
|
|
10.53 |
|
|
10.98 |
|
|
0.5 |
|
|
(3.6 |
) |
| Common equity tier 1 capital
ratio(2) |
|
12.47 |
|
|
11.95 |
|
|
12.96 |
|
|
4.4 |
|
|
(3.8 |
) |
| Tier 1 capital ratio(2) |
|
12.47 |
|
|
11.95 |
|
|
12.96 |
|
|
4.4 |
|
|
(3.8 |
) |
| Total capital ratio(2) |
|
13.09 |
|
|
12.55 |
|
|
13.59 |
|
|
4.3 |
|
|
(3.7 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
(1) Non-GAAP financial measure. See reconciliation. |
|
(2) Estimated for September 30, 2019. |
|
|
|
INVESTAR HOLDING CORPORATION |
|
CONSOLIDATED BALANCE SHEETS |
|
(Amounts in thousands, except share data) |
|
(Unaudited) |
| |
|
|
|
|
|
|
| |
|
September 30, 2019 |
|
June 30, 2019 |
|
September 30, 2018 |
| ASSETS |
|
|
|
|
|
|
|
Cash and due from banks |
|
$ |
26,442 |
|
|
$ |
30,400 |
|
|
$ |
21,151 |
|
| Interest-bearing balances due
from other banks |
|
2,559 |
|
|
33,519 |
|
|
3,352 |
|
| Federal funds sold |
|
— |
|
|
— |
|
|
285 |
|
|
Cash and cash equivalents |
|
29,001 |
|
|
63,919 |
|
|
24,788 |
|
| |
|
|
|
|
|
|
| Available for sale securities
at fair value (amortized cost of $258,811, $252,554, and $238,443,
respectively) |
|
261,179 |
|
|
253,985 |
|
|
230,747 |
|
| Held to maturity securities at
amortized cost (estimated fair value of $15,386, $15,480 and
$16,691, respectively) |
|
15,318 |
|
|
15,473 |
|
|
17,030 |
|
| Loans, net of allowance for
loan losses of $10,339, $9,924, and $9,021, respectively |
|
1,576,003 |
|
|
1,533,384 |
|
|
1,349,391 |
|
| Other equity securities |
|
18,767 |
|
|
14,537 |
|
|
12,671 |
|
| Bank premises and equipment,
net of accumulated depreciation of $11,741, $11,078, and $9,332,
respectively |
|
49,088 |
|
|
46,097 |
|
|
39,831 |
|
| Other real estate owned,
net |
|
126 |
|
|
1,529 |
|
|
4,227 |
|
| Accrued interest
receivable |
|
7,130 |
|
|
6,880 |
|
|
5,073 |
|
| Deferred tax asset |
|
— |
|
|
— |
|
|
1,768 |
|
| Goodwill and other intangible
assets, net |
|
26,117 |
|
|
26,409 |
|
|
19,902 |
|
| Bank-owned life insurance |
|
29,390 |
|
|
29,204 |
|
|
23,702 |
|
| Other assets |
|
5,895 |
|
|
5,224 |
|
|
6,185 |
|
|
Total assets |
|
$ |
2,018,014 |
|
|
$ |
1,996,641 |
|
|
$ |
1,735,315 |
|
| |
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
| Deposits |
|
|
|
|
|
|
| Noninterest-bearing |
|
$ |
291,039 |
|
|
$ |
289,481 |
|
|
$ |
214,190 |
|
| Interest-bearing |
|
1,294,318 |
|
|
1,262,736 |
|
|
1,081,431 |
|
|
Total deposits |
|
1,585,357 |
|
|
1,552,217 |
|
|
1,295,621 |
|
| Advances from Federal Home
Loan Bank |
|
181,725 |
|
|
196,600 |
|
|
208,083 |
|
| Repurchase agreements |
|
2,143 |
|
|
1,876 |
|
|
17,931 |
|
| Subordinated debt |
|
18,250 |
|
|
18,238 |
|
|
18,203 |
|
| Junior subordinated debt |
|
5,884 |
|
|
5,871 |
|
|
5,832 |
|
| Accrued taxes and other
liabilities |
|
14,198 |
|
|
16,340 |
|
|
11,238 |
|
|
Total liabilities |
|
1,807,557 |
|
|
1,791,142 |
|
|
1,556,908 |
|
| |
|
|
|
|
|
|
| STOCKHOLDERS’
EQUITY |
|
|
|
|
|
|
| Preferred stock, no par value
per share; 5,000,000 shares authorized |
|
— |
|
|
— |
|
|
— |
|
| Common stock, $1.00 par value
per share; 40,000,000 shares authorized; 9,929,860, 9,937,752 and
9,545,701 shares outstanding, respectively |
|
9,930 |
|
|
9,938 |
|
|
9,546 |
|
| Surplus |
|
140,944 |
|
|
140,856 |
|
|
131,333 |
|
| Retained earnings |
|
57,547 |
|
|
53,492 |
|
|
42,868 |
|
| Accumulated other
comprehensive loss |
|
2,036 |
|
|
1,213 |
|
|
(5,340 |
) |
|
Total stockholders’ equity |
|
210,457 |
|
|
205,499 |
|
|
178,407 |
|
|
Total liabilities and stockholders’
equity |
|
$ |
2,018,014 |
|
|
$ |
1,996,641 |
|
|
$ |
1,735,315 |
|
|
|
|
INVESTAR HOLDING CORPORATION |
|
CONSOLIDATED STATEMENTS OF INCOME |
|
(Amounts in thousands, except share data) |
|
(Unaudited) |
| |
|
|
|
|
|
|
| |
|
For the three months ended |
| |
|
September 30, 2019 |
|
June 30, 2019 |
|
September 30, 2018 |
| INTEREST
INCOME |
|
|
|
|
|
|
|
Interest and fees on loans |
|
$ |
20,844 |
|
|
$ |
20,233 |
|
|
$ |
16,905 |
|
| Interest on investment
securities |
|
1,848 |
|
|
1,923 |
|
|
1,710 |
|
| Other interest income |
|
162 |
|
|
232 |
|
|
162 |
|
|
Total interest income |
|
22,854 |
|
|
22,388 |
|
|
18,777 |
|
| |
|
|
|
|
|
|
| INTEREST
EXPENSE |
|
|
|
|
|
|
| Interest on deposits |
|
5,198 |
|
|
4,684 |
|
|
2,994 |
|
| Interest on borrowings |
|
1,290 |
|
|
1,373 |
|
|
1,398 |
|
|
Total interest expense |
|
6,488 |
|
|
6,057 |
|
|
4,392 |
|
|
Net interest income |
|
16,366 |
|
|
16,331 |
|
|
14,385 |
|
| |
|
|
|
|
|
|
| Provision for loan losses |
|
538 |
|
|
369 |
|
|
785 |
|
|
Net interest income after provision for loan losses |
|
15,828 |
|
|
15,962 |
|
|
13,600 |
|
| |
|
|
|
|
|
|
| NONINTEREST
INCOME |
|
|
|
|
|
|
| Service charges on deposit
accounts |
|
462 |
|
|
434 |
|
|
368 |
|
| Gain on sale of investment
securities, net |
|
— |
|
|
227 |
|
|
15 |
|
| (Loss) gain on sale of fixed
assets, net |
|
— |
|
|
(11 |
) |
|
9 |
|
| Gain on sale of other real
estate owned, net |
|
1 |
|
|
13 |
|
|
— |
|
| Servicing fees and fee income
on serviced loans |
|
142 |
|
|
150 |
|
|
232 |
|
| Interchange fees |
|
294 |
|
|
291 |
|
|
240 |
|
| Income from bank owned life
insurance |
|
186 |
|
|
170 |
|
|
159 |
|
| Change in the fair value of
equity securities |
|
(9 |
) |
|
57 |
|
|
36 |
|
| Other operating income |
|
542 |
|
|
411 |
|
|
158 |
|
|
Total noninterest income |
|
1,618 |
|
|
1,742 |
|
|
1,217 |
|
|
Income before noninterest expense |
|
17,446 |
|
|
17,704 |
|
|
14,817 |
|
| |
|
|
|
|
|
|
| NONINTEREST
EXPENSE |
|
|
|
|
|
|
| Depreciation and
amortization |
|
882 |
|
|
873 |
|
|
644 |
|
| Salaries and employee
benefits |
|
7,325 |
|
|
7,077 |
|
|
6,646 |
|
| Occupancy |
|
445 |
|
|
454 |
|
|
337 |
|
| Data processing |
|
675 |
|
|
644 |
|
|
493 |
|
| Marketing |
|
86 |
|
|
68 |
|
|
71 |
|
| Professional fees |
|
326 |
|
|
309 |
|
|
281 |
|
| Acquisition expenses |
|
177 |
|
|
— |
|
|
— |
|
| Other operating expenses |
|
1,766 |
|
|
2,129 |
|
|
1,782 |
|
|
Total noninterest expense |
|
11,682 |
|
|
11,554 |
|
|
10,254 |
|
|
Income before income tax expense |
|
5,764 |
|
|
6,150 |
|
|
4,563 |
|
| Income tax expense |
|
1,107 |
|
|
1,216 |
|
|
516 |
|
|
Net income |
|
$ |
4,657 |
|
|
$ |
4,934 |
|
|
$ |
4,047 |
|
| |
|
|
|
|
|
|
| EARNINGS PER
SHARE |
|
|
|
|
|
|
| Basic earnings per common
share |
|
$ |
0.46 |
|
|
$ |
0.49 |
|
|
$ |
0.42 |
|
| Diluted earnings per common
share |
|
$ |
0.46 |
|
|
$ |
0.48 |
|
|
$ |
0.41 |
|
| Cash dividends declared per
common share |
|
$ |
0.06 |
|
|
$ |
0.06 |
|
|
$ |
0.05 |
|
| |
|
INVESTAR HOLDING CORPORATION |
|
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND
YIELD ANALYSIS |
|
(Amounts in thousands) |
|
(Unaudited) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
For the three months ended |
| |
|
September 30, 2019 |
|
June 30, 2019 |
|
September 30, 2018 |
| |
|
|
|
Interest |
|
|
|
|
|
Interest |
|
|
|
|
|
Interest |
|
|
| |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
|
Average |
|
Income/ |
|
Yield/ |
| |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
|
Balance |
|
Expense |
|
Rate |
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-earning assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
1,560,841 |
|
|
$ |
20,844 |
|
|
5.30 |
% |
|
$ |
1,523,004 |
|
|
$ |
20,233 |
|
|
5.33 |
% |
|
$ |
1,311,158 |
|
|
$ |
16,905 |
|
|
5.12 |
% |
| Securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
240,339 |
|
|
1,649 |
|
|
2.72 |
|
|
238,150 |
|
|
1,726 |
|
|
2.94 |
|
|
230,299 |
|
|
1,506 |
|
|
2.60 |
|
|
Tax-exempt |
|
31,688 |
|
|
199 |
|
|
2.49 |
|
|
31,554 |
|
|
197 |
|
|
2.51 |
|
|
34,108 |
|
|
204 |
|
|
2.37 |
|
| Interest-bearing balances with
banks |
|
31,350 |
|
|
162 |
|
|
2.05 |
|
|
30,488 |
|
|
232 |
|
|
3.05 |
|
|
28,146 |
|
|
162 |
|
|
2.29 |
|
| Total interest-earning
assets |
|
1,864,218 |
|
|
22,854 |
|
|
4.86 |
|
|
1,823,196 |
|
|
22,388 |
|
|
4.93 |
|
|
1,603,711 |
|
|
18,777 |
|
|
4.65 |
|
| Cash and due from banks |
|
23,395 |
|
|
|
|
|
|
23,154 |
|
|
|
|
|
|
16,938 |
|
|
|
|
|
| Intangible assets |
|
26,233 |
|
|
|
|
|
|
26,501 |
|
|
|
|
|
|
19,926 |
|
|
|
|
|
| Other assets |
|
95,436 |
|
|
|
|
|
|
88,486 |
|
|
|
|
|
|
73,722 |
|
|
|
|
|
| Allowance for loan losses |
|
(10,042 |
) |
|
|
|
|
|
(9,778 |
) |
|
|
|
|
|
(8,564 |
) |
|
|
|
|
|
Total assets |
|
$ |
1,999,240 |
|
|
|
|
|
|
$ |
1,951,559 |
|
|
|
|
|
|
$ |
1,705,733 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
stockholders’ equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing
liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
507,293 |
|
|
$ |
1,358 |
|
|
1.06 |
|
|
$ |
504,541 |
|
|
$ |
1,333 |
|
|
1.06 |
|
|
$ |
394,545 |
|
|
$ |
823 |
|
|
0.83 |
|
|
Savings deposits |
|
111,279 |
|
|
127 |
|
|
0.45 |
|
|
113,179 |
|
|
126 |
|
|
0.45 |
|
|
117,795 |
|
|
140 |
|
|
0.47 |
|
|
Time deposits |
|
666,074 |
|
|
3,713 |
|
|
2.21 |
|
|
618,604 |
|
|
3,225 |
|
|
2.09 |
|
|
532,986 |
|
|
2,031 |
|
|
1.51 |
|
| Total interest-bearing
deposits |
|
1,284,646 |
|
|
5,198 |
|
|
1.61 |
|
|
1,236,324 |
|
|
4,684 |
|
|
1.52 |
|
|
1,045,326 |
|
|
2,994 |
|
|
1.14 |
|
| Short-term borrowings |
|
117,345 |
|
|
624 |
|
|
2.11 |
|
|
127,196 |
|
|
685 |
|
|
2.16 |
|
|
157,595 |
|
|
727 |
|
|
1.83 |
|
| Long-term debt |
|
86,785 |
|
|
666 |
|
|
3.04 |
|
|
92,103 |
|
|
688 |
|
|
2.99 |
|
|
98,327 |
|
|
671 |
|
|
2.71 |
|
| Total interest-bearing
liabilities |
|
1,488,776 |
|
|
6,488 |
|
|
1.73 |
|
|
1,455,623 |
|
|
6,057 |
|
|
1.67 |
|
|
1,301,248 |
|
|
4,392 |
|
|
1.34 |
|
| Noninterest-bearing
deposits |
|
285,643 |
|
|
|
|
|
|
277,822 |
|
|
|
|
|
|
215,587 |
|
|
|
|
|
| Other liabilities |
|
15,864 |
|
|
|
|
|
|
14,203 |
|
|
|
|
|
|
10,163 |
|
|
|
|
|
| Stockholders’ equity |
|
208,957 |
|
|
|
|
|
|
203,911 |
|
|
|
|
|
|
178,735 |
|
|
|
|
|
|
Total liability and stockholders’ equity |
|
$ |
1,999,240 |
|
|
|
|
|
|
$ |
1,951,559 |
|
|
|
|
|
|
$ |
1,705,733 |
|
|
|
|
|
|
Net interest income/net interest margin |
|
|
|
$ |
16,366 |
|
|
3.48 |
% |
|
|
|
$ |
16,331 |
|
|
3.59 |
% |
|
|
|
$ |
14,385 |
|
|
3.56 |
% |
|
|
|
INVESTAR HOLDING CORPORATION |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
(Amounts in thousands, except share data) |
|
(Unaudited) |
| |
|
|
|
|
|
|
| |
|
September 30, 2019 |
|
June 30, 2019 |
|
September 30, 2018 |
| Tangible common
equity |
|
|
|
|
|
|
|
Total stockholders’ equity |
|
$ |
210,457 |
|
|
$ |
205,499 |
|
|
$ |
178,407 |
|
| Adjustments: |
|
|
|
|
|
|
| Goodwill |
|
21,902 |
|
|
21,978 |
|
|
17,424 |
|
| Core deposit intangible |
|
4,115 |
|
|
4,331 |
|
|
2,378 |
|
| Trademark intangible |
|
100 |
|
|
100 |
|
|
100 |
|
| Tangible common equity |
|
$ |
184,340 |
|
|
$ |
179,090 |
|
|
$ |
158,505 |
|
| Tangible
assets |
|
|
|
|
|
|
| Total assets |
|
$ |
2,018,014 |
|
|
$ |
1,996,641 |
|
|
$ |
1,735,315 |
|
| Adjustments: |
|
|
|
|
|
|
| Goodwill |
|
21,902 |
|
|
21,978 |
|
|
17,424 |
|
| Core deposit intangible |
|
4,115 |
|
|
4,331 |
|
|
2,378 |
|
| Trademark intangible |
|
100 |
|
|
100 |
|
|
100 |
|
| Tangible assets |
|
$ |
1,991,897 |
|
|
$ |
1,970,232 |
|
|
$ |
1,715,413 |
|
| |
|
|
|
|
|
|
| Common shares outstanding |
|
9,929,860 |
|
|
9,937,752 |
|
|
9,545,701 |
|
| Tangible equity to tangible
assets |
|
9.25 |
% |
|
9.09 |
% |
|
9.24 |
% |
| Book value per common
share |
|
$ |
21.19 |
|
|
$ |
20.68 |
|
|
$ |
18.69 |
|
| Tangible book value per common
share |
|
18.56 |
|
|
18.02 |
|
|
16.60 |
|
| |
|
|
|
|
|
|
|
|
|
|
INVESTAR HOLDING CORPORATION |
|
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES |
|
(Amounts in thousands, except share data) |
|
(Unaudited) |
| |
|
|
|
|
|
|
| |
|
Three months ended |
| |
|
9/30/2019 |
|
6/30/2019 |
|
9/30/2018 |
|
Net interest income |
(a) |
$ |
16,366 |
|
|
$ |
16,331 |
|
|
$ |
14,385 |
|
| Provision for loan losses |
|
538 |
|
|
369 |
|
|
785 |
|
| Net interest income after
provision for loan losses |
|
15,828 |
|
|
15,962 |
|
|
13,600 |
|
| |
|
|
|
|
|
|
| Noninterest income |
(b) |
1,618 |
|
|
1,742 |
|
|
1,217 |
|
| Gain on sale of investment
securities, net |
|
— |
|
|
(227 |
) |
|
(15 |
) |
| Gain on sale of other real
estate owned, net |
|
(1 |
) |
|
(13 |
) |
|
— |
|
| Loss (gain) on sale of fixed
assets, net |
|
— |
|
|
11 |
|
|
(9 |
) |
| Change in the fair value of
equity securities |
|
9 |
|
|
(57 |
) |
|
(36 |
) |
| Core noninterest income |
(d) |
1,626 |
|
|
1,456 |
|
|
1,157 |
|
| |
|
|
|
|
|
|
| Core earnings before
noninterest expense |
|
17,454 |
|
|
17,418 |
|
|
14,757 |
|
| |
|
|
|
|
|
|
| Total noninterest expense |
(c) |
11,682 |
|
|
11,554 |
|
|
10,254 |
|
| Acquisition expense |
|
(177 |
) |
|
— |
|
|
— |
|
| Severance |
|
— |
|
|
— |
|
|
(293 |
) |
| Core noninterest expense |
(f) |
11,505 |
|
|
11,554 |
|
|
9,961 |
|
| |
|
|
|
|
|
|
| Core earnings before income
tax expense |
|
5,949 |
|
|
5,864 |
|
|
4,796 |
|
| Core income tax
expense(1) |
|
1,143 |
|
|
1,161 |
|
|
825 |
|
| Core earnings |
|
$ |
4,806 |
|
|
$ |
4,703 |
|
|
$ |
3,971 |
|
| |
|
|
|
|
|
|
| Core basic earnings per common
share |
|
0.48 |
|
|
0.47 |
|
|
0.42 |
|
| |
|
|
|
|
|
|
| Diluted earnings per common
share (GAAP) |
|
$ |
0.46 |
|
|
$ |
0.48 |
|
|
$ |
0.41 |
|
| Gain on sale of investment
securities, net |
|
— |
|
|
(0.01 |
) |
|
— |
|
| Gain on sale of other real
estate owned, net |
|
— |
|
|
— |
|
|
— |
|
| Loss (gain) on sale of fixed
assets, net |
|
— |
|
|
— |
|
|
— |
|
| Change in the fair value of
equity securities |
|
— |
|
|
— |
|
|
— |
|
| Acquisition expense |
|
0.02 |
|
|
— |
|
|
— |
|
| Severance |
|
— |
|
|
— |
|
|
0.03 |
|
| Discrete tax benefit related
to return-to-provision adjustments |
|
— |
|
|
— |
|
|
(0.03 |
) |
| Core diluted earnings per
common share |
|
$ |
0.48 |
|
|
$ |
0.47 |
|
|
$ |
0.41 |
|
| |
|
|
|
|
|
|
| Efficiency ratio |
(c) / (a+b) |
64.96 |
% |
|
63.93 |
% |
|
65.72 |
% |
| Core efficiency ratio |
(f) / (a+d) |
63.95 |
% |
|
64.96 |
% |
|
64.09 |
% |
| Core return on average
assets(2) |
|
0.95 |
% |
|
0.98 |
% |
|
0.92 |
% |
| Core return on average
equity(2) |
|
9.13 |
% |
|
9.35 |
% |
|
8.81 |
% |
| Total average assets |
|
$ |
1,999,240 |
|
|
$ |
1,951,559 |
|
|
$ |
1,705,733 |
|
| Total average stockholders’
equity |
|
208,957 |
|
|
203,911 |
|
|
178,735 |
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
(1) Core income tax expense is calculated using the effective tax
rates of 19.2% and 19.8% for the quarters ended September 30, 2019
and June 30, 2019, respectively and 17.2%, prior to the discrete
tax benefit of $0.3 million related to return-to-provision
adjustments, for the quarter ended September 30, 2018. |
|
(2) Core earnings used in calculation. No adjustments were made to
average assets or average equity. |
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