BATON ROUGE, LA, July 28, 2016 (GLOBE NEWSWIRE) -- Investar Holding Corporation (NASDAQ:ISTR) (the “Company”), the holding company for Investar Bank (the “Bank”), today announced financial results for the quarter ended June 30, 2016. The Company reported net income of $2.0 million, or $0.28 per diluted share for the second quarter of 2016, compared to $2.0 million, or $0.28 per diluted share for the quarter ended March 31, 2016, and $1.8 million, or $0.25 per diluted share, for the quarter ended June 30, 2015.

Investar Holding Corporation President and Chief Executive Officer John D’Angelo said:

“This was another successful quarter for Investar and demonstrates our continued emphasis on creating long-term shareholder value. We continued to experience solid organic loan growth which fueled the increase in interest income. Deposit growth remains a focus and we are very pleased with the 15% growth in our noninterest-bearing deposits. During the quarter, we increased the quarterly dividend payable to shareholders by 11% as well as repurchased over 82,000 shares of our common stock. This brings our total repurchases to 140,000 shares under our share repurchase program, which is approximately 56% of the total shares authorized for repurchase. Our Board and management remain keenly focused on our commitment to delivering shareholder value as demonstrated by our increased dividend and stock repurchase activity.”

Second Quarter Highlights

• Total loans, excluding loans held for sale, increased 9.7% year to date, or 19.4% annualized. Total loans, excluding loans held for sale, increased $19.8 million, or 2.5%, compared to March 31, 2016, and increased $143.9 million, or 21.4%, compared to June 30, 2015, to $817.5 million at June 30, 2016.
• The business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $226.6 million at June 30, 2016, an increase of $10.0 million, or 4.6%, compared to the business lending portfolio of $216.6 million at March 31, 2016, and an increase of $40.3 million, or 21.6%, compared to the business lending portfolio of $186.3 million at June 30, 2015.
• Other real estate owned decreased $0.4 million, or 59.9%, to $0.3 million at June 30, 2016, compared to $0.7 million at March 31, 2016, and decreased $2.2 million, or 88.9%, compared to $2.5 million at June 30, 2015.
• Total noninterest-bearing deposits were $109.8 million at June 30, 2016, an increase of $14.8 million, or 15.6%, compared to March 31, 2016, and an increase of $23.5 million, or 27.2%, compared to June 30, 2015.
• Total interest income increased $0.3 million, or 3.2%, compared to the quarter ended March 31, 2016, and increased $1.5 million, or 16.7%, compared to the quarter ended June 30, 2015, to $10.7 million for the quarter ended June 30, 2016.
• Net charge-offs remain low, averaging 0.02% of total loans for the past eight quarters.
• The Company repurchased 82,123 shares of the Company’s common stock through our stock repurchase program at an average price of $15.55 during the quarter ended June 30, 2016.

Loans

Total loans were $817.5 million at June 30, 2016, an increase of $19.8 million, or 2.5 %, compared to March 31, 2016, and an increase of $143.9 million, or 21.4%, compared to June 30, 2015.

The following table sets forth the composition of the Company’s loan portfolio as of the dates indicated (dollars in thousands).

														Linked Qtr Change								Year/Year Change								Percentage of Total Loans
		6/30/2016				3/31/2016				6/30/2015				$				%				$				%				6/30/2016			6/30/2015
Mortgage loans on real estate
Construction and development		$	101,080			$	95,353			$	70,927			$	5,727				6.0	%		$	30,153				42.5	%			12.4	%		12.0	%
1-4 Family			166,778				162,312				153,118				4,466				2.8				13,660				8.9				20.4			20.3
Multifamily			37,300				33,609				21,260				3,691				11.0				16,040				75.4				4.6			4.2
Farmland			8,343				6,366				3,001				1,977				31.1				5,342				178.0				1.0			0.8
Commercial real estate
Owner-occupied			151,464				141,583				129,825				9,881				7.0				21,639				16.7				18.5			17.8
Nonowner-occupied			180,842				174,176				119,321				6,666				3.8				61,521				51.6				22.1			21.8
Commercial and industrial			75,103				74,990				56,485				113				0.2				18,618				33.0				9.2			9.4
Consumer			96,560				109,233				119,649				(12,673	)			(11.6	)			(23,089	)			(19.3	)			11.8			13.7
Total loans			817,470				797,622				673,586				19,848				2.5	%			143,884				21.4	%			100	%		100	%
Loans held for sale			46,717				50,921				78,212				(4,204	)			(8.3	)			(31,495	)			(40.3	)
Total gross loans		$	864,187			$	848,543			$	751,798			$	15,644				1.8	%		$	112,389				14.9	%

Consumer loans, including consumer loans held for sale, totaled $143.3 million at June 30, 2016, a decrease of $16.7 million, or 10.5%, compared to $160.0 million at March 31, 2016, and a decrease of $49.3 million, or 25.6%, compared to June 30, 2015. The decrease compared to the linked quarter is mainly attributable to principal payments on consumer loan balances. Since the Bank discontinued accepting indirect auto loan applications at the end of 2015, which was the primary source of its consumer loan portfolio and consumer loans held for sale, the consumer loan portfolio is expected to decrease over time. The Bank currently has the intent and ability to sell the balance of the consumer loans classified as held for sale at June 30, 2016, however, if this classification were to change, the loans would be transferred to the consumer loan portfolio.

At June 30, 2016, 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 $226.6 million, an increase of $10.0 million, or 4.6%, compared to the business lending portfolio of $216.6 million at March 31, 2016 and an increase of $40.3 million, or 21.6%, compared to the business lending portfolio of $186.3 million at June 30, 2015.

Credit Quality

Nonperforming loans were $5.5 million, or 0.67% of total loans, at June 30, 2016, an increase of $3.2 million, or 136.9%, compared to $2.3 million, or 0.29% of total loans, at March 31, 2016, and an increase of $2.8 million, or 103.7%, compared to $2.7 million, or 0.40% of total loans, at June 30, 2015. The allowance for loan losses was $7.1 million, or 129.6% and 0.87% of nonperforming loans and total loans, respectively, at June 30, 2016, compared to $6.5 million, or 279.8% and 0.81% of nonperforming loans and total loans, respectively, at March 31, 2016 and $5.7 million, or 213.2% and 0.85% of nonperforming loans and total loans, respectively, at June 30, 2015. The allowance for loan losses plus the fair value marks on acquired loans was 0.95% of total loans at June 30, 2016 compared to 0.90% at March 31, 2016 and 0.95% at June 30, 2015. The increase in nonperforming loans and the decrease in the allowance for loan losses as a percentage of nonperforming loans at June 30, 2016 when compared to both March 31, 2016 and June 30, 2015 are mainly attributable to a $2.7 million commercial and industrial loan relationship not related to the oil and gas industry. Management has evaluated the loan relationship, which is well collateralized and properly reserved, and expects it to be resolved without any additional material impact to the financial statements.

The provision for loan loss expense was $0.8 million for the second quarter of 2016, an increase of $0.3 million and $0.4 million compared to March 31, 2016 and June 30, 2015, respectively. The increase in the provision for loan loss expense can also be attributed to the $2.7 million loan relationship discussed above.

Management continues to monitor the Company’s loan portfolio for exposure to potential negative impacts of suppressed oil and gas prices. We consider our exposure to the energy sector not to be significant, at less than one percent of the total loan portfolio at June 30, 2016. However, should the price of oil and gas decline further and/or remain at the current low price for an extended period, the general economic conditions in our south Louisiana markets could be negatively affected and could negatively impact borrowers’ ability to service their debt. Management continually evaluates the allowance for loan losses based on several factors, including economic conditions, and currently believes that any potential negatively affected future cash flows related to these loans would be covered by the current allowance for loan losses.

Deposits

Total deposits at June 30, 2016 were $867.2 million, an increase of $58.5 million, or 7.2%, compared to March 31, 2016 and an increase of $161.2 million, or 22.8%, compared to June 30, 2015. The increase in total deposits was driven by an increase in noninterest-bearing deposits of $23.5 million, or 27.2%, an increase in money market accounts of $16.4 million, or 17.8%, and an increase in time deposits of $112.2 million, or 32.6%, compared to June 30, 2015.

The Company’s focus on relationship banking continues to positively impact noninterest-bearing demand deposit growth.

The following table sets forth the composition of the Company’s deposits as of the dates indicated (dollars in thousands).

														Linked Qtr Change								Year/Year Change								Percentage of Total Deposits
		6/30/2016				3/31/2016				6/30/2015				$				%				$				%				6/30/2016				6/30/2015
Noninterest-bearing demand deposits		$	109,828			$	95,033			$	86,339			$	14,795				15.6	%		$	23,489				27.2	%			12.7	%			12.2	%
NOW accounts			139,893				138,672				131,136				1,221				0.9				8,757				6.7				16.1				18.6
Money market deposit accounts			108,552				104,936				92,126				3,616				3.4				16,426				17.8				12.5				13.1
Savings accounts			52,899				52,285				52,546				614				1.2				353				0.7			6.1				7.4
Time deposits			456,033				417,772				343,860				38,261				9.2				112,173				32.6			52.6				48.7
Total deposits		$	867,205			$	808,698			$	706,007			$	58,507				7.2	%		$	161,198				22.8	%			100	%			100	%

Net Interest Income

Net interest income for the second quarter of 2016 totaled $8.7 million, an increase of $0.1 million, or 1.3%, compared to the first quarter of 2016, and an increase of $0.9 million, or 11.3%, compared to the second quarter of 2015. The increase was a direct result of continued growth of the Company’s loan portfolio with an increase in net interest income of $1.5 million due to an increase in volume offset by a $0.6 million decrease related to a reduction in yield compared to the second quarter of 2015.

The Company’s net interest margin was 3.38% for the quarter ended June 30, 2016 compared to 3.47% for the first quarter of 2016 and 3.70% for the second quarter of 2015. The yield on interest-earning assets was 4.18% for the quarter ended June 30, 2016 compared to 4.21% for the first quarter of 2016 and 4.37% for the second quarter of 2015.

The cost of deposits increased six basis points for the quarter ended June 30, 2016 compared to the first quarter of 2016, and increased twelve basis points compared to the second quarter of 2015. The increase is primarily a result of increases in time deposit rates.

Noninterest Income

Noninterest income for the second quarter of 2016 totaled $2.3 million, an increase of $1.0 million, or 75.3%, compared to the first quarter of 2016, and an increase of $0.2 million, or 9.2%, compared to the second quarter of 2015. The increase in noninterest income when compared to March 31, 2016 is mainly attributable to the $1.3 million gain on sale of fixed assets recognized for the sale of the land and building of one of the Bank’s branch locations to a healthcare company. The increase in gain on sale of fixed assets was offset by a $0.3 million decrease in the gain on sale of loans. Since exiting the indirect auto loan origination business at the end of 2015, the Bank has experienced decreased loan sales and has ceased originations of consumer loans held for sale. The Bank does intend to sell the balance of the consumer loans held for sale at June 30, 2016, however, it expects the gain on sale of loans to diminish over time.

Noninterest Expense

Noninterest expense for the second quarter of 2016 totaled $7.1 million, an increase of $0.7 million, or 11.3%, compared to the first quarter of 2016, and an increase of $0.4 million, or 6.3%, compared to the second quarter of 2015. The increase in noninterest expense compared to the first quarter of 2016 is primarily due to $0.6 million in customer reimbursements that we paid to certain borrowers during the second quarter.

Basic Earnings Per Share and Diluted Earnings Per Share

The Company reported both basic and diluted earnings per share of $0.28 for the three months ended June 30, 2016, an increase of $0.03, compared to basic and diluted earnings per share of $0.25 for the three months ended June 30, 2015.

Taxes

The Company recorded income tax expense of $1.0 million for the quarter ended June 30, 2016, which equates to an effective tax rate of 33.4%.

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 10 full service banking offices located throughout its market. At June 30, 2016, the Company had 152 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,” and “tangible book value per common share.” Management believes these non-GAAP financial measures provide information useful to investors in understanding the Company’s financial results, and the Company believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting the Company’s business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and the Company strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally identifies forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based on the historical performance of the Company and its subsidiaries or on the Company’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by the Company that the future plans, estimates or expectations by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to the Company’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if the Company’s underlying assumptions prove to be incorrect, the Company’s actual results may vary materially from those indicated in these statements. The Company does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. These factors include, but are not limited to, the following, any one or more of which could materially affect the outcome of future events:

• business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;
• our ability to achieve organic loan and deposit growth, and the composition of that growth;
• changes (or the lack of changes) in interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;
• the extent of continuing client demand for the high level of personalized service that is a key element of our banking approach as well as our ability to execute our strategy generally;
• our dependence on our management team, and our ability to attract and retain qualified personnel;
• changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers;
• inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates;
• the concentration of our business within our geographic areas of operation in Louisiana; and
• concentration of credit exposure.

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 Item 7. “Special Note Regarding Forward-Looking Statements” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission.

INVESTAR HOLDING CORPORATION
SUMMARY FINANCIAL INFORMATION
(Amounts in thousands, except share data)
(Unaudited)
		As of and for the three months ended
		6/30/2016				3/31/2016				6/30/2015				Linked Quarter				Year/Year
EARNINGS DATA
Total interest income		$	10,719			$	10,378			$	9,187				3.3	%			16.7	%
Total interest expense			2,061				1,831				1,407				12.6	%			46.5	%
Net interest income			8,658				8,547				7,780				1.3	%			11.3	%
Provision for loan losses			800				454				400				76.2	%			100.0	%
Total noninterest income			2,256				1,287				2,066				75.3	%			9.2	%
Total noninterest expense			7,104				6,384				6,682				11.3	%			6.3	%
Income before income taxes			3,010				2,996				2,764				0.5	%			8.9	%
Income tax expense			1,005				1,006				951				-0.1	%			5.7	%
Net income		$	2,005			$	1,990			$	1,813				0.8	%			10.6	%
AVERAGE BALANCE SHEET DATA
Total assets		$	1,086,604			$	1,044,993			$	891,581				4.0	%			21.9	%
Total interest-earning assets			1,028,360				988,779				842,984				4.0	%			22.0	%
Total loans			800,710				767,761				664,607				4.3	%			20.5	%
Total gross loans			852,475				832,368				729,851				2.4	%			16.8	%
Total interest-bearing deposits			739,678				676,826				617,442				9.3	%			19.8	%
Total interest-bearing liabilities			866,386				836,332				694,497				3.6	%			24.8	%
Total deposits			835,215				764,145				699,151				9.3	%			19.5	%
Total shareholders' equity			112,035				110,873				106,583				1.0	%			5.1	%
PER SHARE DATA
Earnings:
Basic earnings per share		$	0.28			$	0.28			$	0.25				0.0	%			12.0	%
Diluted earnings per share			0.28				0.28				0.25				0.0	%			12.0	%
Book value per share			15.63				15.28				14.65				2.3	%			6.7	%
Tangible book value per share(1)			15.18				14.83				14.22				2.4	%			6.8	%
Common shares outstanding			7,214,734				7,296,426				7,293,209				-1.1	%			-1.1	%
PERFORMANCE RATIOS
Return on average assets			0.74	%			0.76	%			0.82	%			-2.6	%			-9.8	%
Return on average equity			7.18	%			7.20	%			6.82	%			-0.3	%			5.3	%
Net interest margin			3.38	%			3.47	%			3.70	%			-2.6	%			-8.6	%
Net interest income to average assets			3.20	%			3.28	%			3.50	%			-2.4	%			-8.6	%
Noninterest expense to average assets			2.62	%			2.45	%			3.01	%			6.9	%			-13.0	%
Efficiency ratio(2)			65.09	%			64.92	%			67.87	%			0.3	%			-4.1	%
Dividend payout ratio			3.57	%			3.25	%			3.11	%			9.8	%			14.8	%
Net charge-offs to average loans			0.02	%			0.02	%			0.00	%			0.0	%			0.0	%
(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
		6/30/2016				3/31/2016				6/30/2015				Linked Quarter				Year/Year
ASSET QUALITY RATIOS
Nonperforming assets to total assets			0.51	%			0.28	%			0.56	%			82.1	%			-8.9	%
Nonperforming loans to total loans			0.67	%			0.29	%			0.40	%			131.0	%			67.5	%
Allowance for loan losses to total loans			0.87	%			0.81	%			0.85	%			7.4	%			2.4	%
Allowance for loan losses to nonperforming loans			129.6	%			279.75	%			213.20	%			-53.7	%			-39.2	%
CAPITAL RATIOS
Investar Holding Corporation:
Total equity to total assets			10.01	%			10.39	%			11.59	%			-3.7	%			-13.6	%
Tangible equity to tangible assets			9.75	%			10.11	%			11.29	%			-3.6	%			-13.6	%
Tier 1 leverage ratio			10.46	%			10.78	%			12.15	%			-3.0	%			-13.9	%
Common equity tier 1 capital ratio			11.11	%			11.49	%			12.96	%			-3.3	%			-14.3	%
Tier 1 capital ratio			11.47	%			11.86	%			13.39	%			-3.3	%			-14.3	%
Total capital ratio			12.19	%			12.54	%			14.10	%			-2.8	%			-13.5	%
Investar Bank:
Tier 1 leverage ratio			10.26	%			10.52	%			11.72	%			-2.5	%			-12.5	%
Common equity tier 1 capital ratio			11.25	%			11.57	%			12.91	%			-2.8	%			-12.9	%
Tier 1 capital ratio			11.25	%			11.57	%			12.91	%			-2.8	%			-12.9	%
Total capital ratio			11.97	%			12.25	%			13.62	%			-2.3	%			-12.1	%

INVESTAR HOLDING CORPORATION
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
(Unaudited)
		June 30, 2016				March 31, 2016				June 30, 2015
ASSETS
Cash and due from banks		$	9,958			$	8,808			$	7,541
Interest-bearing balances due from other banks			27,175				12,465				16,807
Federal funds sold			1				51				191
Cash and cash equivalents			37,134				21,324				24,539
Available for sale securities at fair value (amortized cost   of $149,986, $127,737, and $82,049, respectively)			151,841				128,570				82,236
Held to maturity securities at amortized cost (estimated   fair value of $25,810, $26,348, and $24,015, respectively)			25,656				26,249				24,230
Loans held for sale			46,717				50,921				78,212
Loans, net of allowance for loan losses of $7,091, $6,463, and   $5,728, respectively			810,379				791,159				667,858
Other equity securities			7,371				7,183				4,183
Bank premises and equipment, net of accumulated depreciation   of $6,017, $5,727, and $4,662, respectively			30,147				30,759				29,444
Other real estate owned, net			279				695				2,519
Accrued interest receivable			2,840				2,978				2,432
Deferred tax asset			1,459				1,934				1,624
Goodwill and other intangible assets			3,254				3,265				3,195
Bank-owned life insurance			7,101				7,054				-
Other assets			2,752				1,438				1,383
Total assets		$	1,126,930			$	1,073,529			$	921,855
LIABILITIES
Deposits
Noninterest-bearing		$	109,828			$	95,033			$	86,339
Interest-bearing			757,377				713,665				619,668
Total deposits			867,205				808,698				706,007
Advances from Federal Home Loan Bank			93,599				103,960				79,066
Repurchase agreements			28,854				29,678				15,130
Junior subordinated debt			3,609				3,609				3,609
Accrued taxes and other liabilities			20,900				16,097				11,170
Total liabilities			1,014,167				962,042				814,982
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;   7,359,976, 7,358,231, and 7,294,987 shares issued and 7,214,734,   7,296,429, and 7,293,209 shares outstanding, respectively			7,360				7,358				7,295
Treasury stock			(2,249	)			(952	)			(26	)
Surplus			84,958				84,780				84,358
Retained earnings			22,507				20,575				15,461
Accumulated other comprehensive income (loss)			187				(274	)			(215	)
Total stockholders' equity			112,763				111,487				106,873
Total liabilities and stockholders' equity		$	1,126,930			$	1,073,529			$	921,855

INVESTAR HOLDING CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share data)
(Unaudited)
		For the three months ended												For the six months ended
		June 30, 2016				March 31, 2016				June 30, 2015				June 30, 2016				June 30, 2015
INTEREST INCOME
Interest and fees on loans		$	9,781			$	9,485			$	8,646			$	19,266			$	16,944
Interest on investment securities			891				856				523				1,747				1,008
Other interest income			47				37				18				84				35
Total interest income			10,719				10,378				9,187				21,097				17,987
INTEREST EXPENSE
Interest on deposits			1,763				1,515				1,299				3,278				2,491
Interest on borrowings			298				316				108				614				217
Total interest expense			2,061				1,831				1,407				3,892				2,708
Net interest income			8,658				8,547				7,780				17,205				15,279
Provision for loan losses			800				454				400				1,254				1,100
Net interest income after provision for loan losses			7,858				8,093				7,380				15,951				14,179
NONINTEREST INCOME
Service charges on deposit accounts			88				97				97				185				191
Gain on sale of investment securities, net			144				80				134				224				134
Gain on sale of fixed assets, net			1,252				-				-				1,252				-
Gain on sale of real estate owned, net			10				1				7				11				6
Gain on sale of loans, net			-				313				1,077				313				2,808
Fee income on loans held for sale, net			106				123				210				229				510
Servicing fees			431				468				373				899				653
Other operating income			225				205				168				430				304
Total noninterest income			2,256				1,287				2,066				3,543				4,606
Income before noninterest expense			10,114				9,380				9,446				19,494				18,785
NONINTEREST EXPENSE
Depreciation and amortization			369				370				362				739				719
Salaries and employee benefits			3,890				3,873				3,971				7,763				7,879
Occupancy			242				236				225				478				438
Data processing			367				374				370				741				710
Marketing			102				112				62				214				120
Professional fees			375				279				237				654				499
Customer reimbursements			584				-				-				584				-
Other operating expenses			1,175				1,140				1,455				2,315				2,741
Total noninterest expense			7,104				6,384				6,682				13,488				13,106
Income before income tax expense			3,010				2,996				2,764				6,006				5,679
Income tax expense			1,005				1,006				951				2,011				1,916
Net income		$	2,005			$	1,990			$	1,813			$	3,995			$	3,763
EARNINGS PER SHARE
Basic earnings per share		$	0.28			$	0.28			$	0.25			$	0.56			$	0.52
Diluted earnings per share		$	0.28			$	0.28			$	0.25			$	0.55			$	0.52
Cash dividends declared per common share		$	0.01			$	0.01			$	0.01			$	0.02			$	0.02

INVESTAR HOLDING CORPORATION
EARNINGS PER COMMON SHARE
(Amounts in thousands, except share data)
(Unaudited)
		For the three months ended												For the six months ended
		June 30, 2016				March 31, 2016				June 30, 2015				June 30, 2016				June 30, 2015
Net income available to common shareholders		$	2,005			$	1,990			$	1,813			$	3,995			$	3,763
Weighted average number of common shares outstanding used in computation of basic earnings per common share			7,158,532				7,194,558				7,219,593				7,176,545				7,219,415
Effect of dilutive securities:
Restricted stock			15,298				15,353				13,372				12,705				11,065
Stock options			14,715				14,854				16,725				14,752				13,478
Stock warrants			11,231				11,267				12,467				11,249				10,765
Weighted average number of common shares outstanding plus effect of dilutive securities used in computation of diluted earnings per common share			7,199,776				7,236,032				7,262,157				7,215,251				7,254,723
Basic earnings per share		$	0.28			$	0.28			$	0.25			$	0.56			$	0.52
Diluted earnings per share		$	0.28			$	0.28			$	0.25			$	0.55			$	0.52

INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
		For the three months ended
		June 30, 2016												March 31, 2016												June 30, 2015
		Average Balance				Interest Income/ Expense				Yield/ Rate				Average Balance				Interest Income/ Expense				Yield/ Rate				Average Balance				Interest Income/ Expense				Yield/ Rate
Assets
Interest-earning assets:
Loans		$	852,475			$	9,781				4.60	%		$	832,368			$	9,485				4.57	%		$	729,851			$	8,646				4.75	%
Securities:
Taxable			129,126				732				2.27				113,446				712				2.52				77,050				404				2.10
Tax-exempt			25,105				159				2.54				22,199				144				2.60				18,948				119				2.52
Interest-bearing balances with banks			21,654				47				0.87				20,766				37				0.71				17,135				18				0.42
Total interest-earning assets			1,028,360				10,719				4.18				988,779				10,378				4.21				842,984				9,187				4.37
Cash and due from banks			7,647												7,222												5,432
Intangible assets			3,258												3,179												3,199
Other assets			54,123												52,121												45,532
Allowance for loan losses			(6,784	)											(6,308	)											(5,566	)
Total assets		$	1,086,604											$	1,044,993											$	891,581
Liabilities and shareholders’ equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand		$	247,052			$	393				0.64	%		$	239,844			$	380				0.64	%		$	222,130			$	353				0.64	%
Savings deposits			52,728				88				0.67				53,144				88				0.66				53,364				90				0.68
Time deposits			439,898				1,282				1.17				383,838				1,047				1.09				341,948				856				1.00
Total interest-bearing deposits			739,678				1,763				0.96				676,826				1,515				0.90				617,442				1,299				0.84
Short-term borrowings			103,274				229				0.89				132,839				243				0.73				36,977				16				0.17
Long-term debt			23,434				69				1.18				26,667				73				1.10				40,078				92				0.92
Total interest-bearing liabilities			866,386				2,061				0.95				836,332				1,831				0.88				694,497				1,407				0.81
Noninterest-bearing deposits			95,537												87,319												81,709
Other liabilities			12,646												10,469												8,792
Stockholders’ equity			112,035												110,873												106,583
Total liability and stockholders’ equity		$	1,086,604											$	1,044,993											$	891,581
Net interest income/net interest margin						$	8,658				3.38	%						$	8,547				3.47	%						$	7,780				3.70	%

INVESTAR HOLDING CORPORATION
CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS
(Amounts in thousands)
(Unaudited)
		For the six months ended
		June 30 2016												June 30, 2015
		Average Balance				Interest Income/ Expense				Yield/ Rate				Average Balance				Interest Income/ Expense				Yield/ Rate
Assets
Interest-earning assets:
Loans		$	842,420			$	19,266				4.59	%		$	722,136			$	16,944				4.73	%
Securities:
Taxable			121,286				1,444				2.39				72,812				770				2.13
Tax-exempt			23,652				303				2.57				18,963				238				2.53
Interest-bearing balances with banks			21,210				84				0.79				17,580				35				0.40
Total interest-earning assets			1,008,568				21,097				4.20				831,491				17,987				4.36
Cash and due from banks			7,435												5,560
Intangible assets			3,219												3,204
Other assets			53,123												45,396
Allowance for loan losses			(6,546	)											(5,295	)
Total assets		$	1,065,799											$	880,356
Liabilities and shareholders' equity
Interest-bearing liabilities:
Deposits:
Interest-bearing demand		$	243,448			$	773				0.64	%		$	213,477			$	663				0.63	%
Savings deposits			52,936				177				0.67				54,540				184				0.68
Time deposits			411,868				2,328				1.13				333,143				1,644				1.00
Total interest-bearing deposits			708,252				3,278				0.93				601,160				2,491				0.84
Short-term borrowings			118,056				473				0.80				45,145				40				0.18
Long-term debt			25,050				141				1.13				40,929				177				0.87
Total interest-bearing liabilities			851,358				3,892				0.92				687,234				2,708				0.79
Noninterest-bearing deposits			91,428												79,480
Other liabilities			11,559												7,888
Stockholders' equity			111,454												105,754
Total liability and stockholders’ equity		$	1,065,799											$	880,356
Net interest income/net interest margin						$	17,205				3.42	%						$	15,279				3.71	%

INVESTAR HOLDING CORPORATION
RECONCILIATION OF NON GAAP FINANCIAL MEASURES
(Amounts in thousands, except share data)
(Unaudited)
		June 30, 2016				March 31, 2016				June 30, 2015
Tangible common equity
Total stockholder's equity		$	112,763			$	111,487			$	106,873
Adjustments:
Goodwill			2,684				2,684				2,684
Core deposit intangible			470				480				511
Trademark intangible			100				100
Tangible common equity		$	109,509			$	108,223			$	103,678
Tangible assets
Total assets		$	1,126,930			$	1,073,529			$	921,855
Adjustments:
Goodwill			2,684				2,684				2,684
Core deposit intangible			470				480				511
Trademark intangible			100				100				-
Tangible assets		$	1,123,676			$	1,070,265			$	918,660
Common shares outstanding			7,214,734				7,296,429				7,293,209
Tangible equity to tangible assets			9.75	%			10.11	%			11.29	%
Book value per common share		$	15.63			$	15.28			$	14.65
Tangible book value per common share			15.18				14.83				14.22

For further information contact:

Investar Holding Corporation                                                           
Chris Hufft
Chief Financial Officer
(225) 227-2215
Chris.Hufft@investarbank.com

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