Investar Holding Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Provides Effective Tax Rate Guidance for the Remainder of 2018
October 25, 2018
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Investar Holding Corporation reported unaudited consolidated earnings results for the third quarter and nine months ended September 30, 2018. For the quarter, the company reported record net income of $4.0 million, or $0.41 per diluted common share, for the third quarter of 2018, compared to $2.1 million, or $0.24 per diluted common share, for the quarter ended September 30, 2017. On a non-GAAP basis, core earnings per diluted common share were $0.41 compared to $0.29 for the quarter ended September 30, 2017, respectively. Return on assets improved to 0.94% for the quarter ended September 30, 2018 compared to 0.59% for the quarter ended September 30, 2017. Net interest income totaled $14.4 million, an increase of $0.1 million, or 0.5%, compared to the second quarter of 2018, and an increase of $2.8 million, or 24.7%, compared to the third quarter of 2017. The increase in net interest income in the third quarter of 2018 compared to the same quarter last year was primarily driven by growth in loan and securities balances partially offset by an increase in interest expense as the company funded the increase in interest-earning assets with increased deposits and borrowings.
Net interest income after provision for loan losses was $13,600,000 compared to $11,118,000 a year ago. Income before income tax expense was $4,563,000 compared to $3,163,000 a year ago. Core earnings before income tax expense was $4,832,000 compared to $3,763,000 a year ago. Core earnings were $4,002,000 compared to $2,535,000 a year ago. Core return on average assets was 0.93% against of 0.70% a year ago. Core return on average equity was 8.88% against of 6.61% a year ago. Return on average equity was 8.98% against of 5.55% a year ago.
For the nine months, the company reported net interest income of $42,563,000 compared to $29,700,000 a year ago. Net interest income after provision for loan losses was $40,586,000 compared to $28,555,000 a year ago. Income before income tax expense was $13,092,000 compared to $8,674,000 a year ago. Net income was $10,269,000 compared to $5,918,000 a year ago. Diluted earnings per share were $1.05 compared to $0.71 a year ago. Book value per common share was $18.69 as of September 30, 2018. Tangible book value per common share was $16.60 as of September 30, 2018.
Management expects the Company's effective tax rate to approximate 20% for the remainder of 2018.
Investar Holding Corporation is a financial holding company that conducts its operations primarily through its subsidiary, Investar Bank, National Association (the Bank). The Company offers a range of commercial and retail lending products throughout its market areas, including business loans to small to medium-sized businesses as well as loans to individuals. Its business lending products include owner-occupied commercial real estate loans, construction loans and commercial and industrial loans, such as term loans, equipment financing and lines of credit, while its loans to individuals include first and second mortgage loans, installment loans, and lines of credit. It offers a base of deposit products and services to individual and business clients, including savings, checking, and money market accounts, as well as a variety of certificates of deposit and individual retirement accounts. It also offers debit cards, Internet banking, direct deposit of payroll and social security checks.
Investar Holding Corporation Reports Unaudited Consolidated Earnings Results for the Third Quarter and Nine Months Ended September 30, 2018; Provides Effective Tax Rate Guidance for the Remainder of 2018