 BATON ROUGE, La., July 23, 2020 GLOBE NEWSWIRE -- 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 June 30, 2020. The Company reported net income of 4.3 million, or 0.39 per diluted common share, for the second quarter of 2020, compared to 0.6 million, or 0.05 per diluted common share, for the quarter ended March 31, 2020, and 4.9 million, or 0.48 per diluted common share, for the quarter ended June 30, 2019. On a non-GAAP basis, core earnings per diluted common share for the second quarter of 2020 were 0.32 compared to 0.15 for the first quarter of 2020 and 0.47 for the quarter ended June 30, 2019. Core earnings exclude certain non-operating items including, but not limited to, gain on sale of investment securities, net, acquisition expense and severance refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics.Investar Holding Corporation President and Chief Executive Officer John DAngelo said:As expected, the second quarter was significantly impacted by the COVID-19 pandemic. We continue to prioritize keeping our customers and employees safe, and providing assistance to our customers and communities through loan deferments and low interest Paycheck Protection Program loans. In the second quarter, we originated 998 PPP loans totaling 109.5 million, 85 of which have principal balances of 150,000 or less, which demonstrates our commitment to supporting the business community in the markets that we serve.Despite the impact of the pandemic, I am very pleased with our results for the second quarter of 2020. Our company is internally focused on protecting our balance sheet, maintaining strong capital levels and credit quality, and seeking opportunities to improve efficiency through technology, as we believe investments in technology can substantially improve our operating results.Our cost of funds continued to decline throughout the quarter, and we believe this will continue through 2020. Reducing our cost of funds has been a long-term goal of the board and management, and we continue to make progress bringing this cost more in line with our peers.At the end of the second quarter, we announced the closure of our branch in Zachary, Louisiana, which will close in the fourth quarter, and strategic staffing reductions at certain other branches. While our focus on relationship banking and providing excellent customer service remains, we have the responsibility to our customers, employees, shareholders and communities to adapt as our operating environment and customer preferences change, including as customers make greater use of our digital banking platforms. The Bank will evaluate operational changes as we continue to deploy technology.Second Quarter Highlights Total revenues, or interest and noninterest income, for the quarter ended June 30, 2020 totaled 27.7 million, an increase of 3.0 million, or 12.2, compared to the quarter ended March 31, 2020, and an increase of 3.6 million, or 14.9, compared to the quarter ended June 30, 2019. Total loans increased 84.2 million, or 4.9, to 1.8 billion at June 30, 2020, compared to 1.7 billion at March 31, 2020, and increased 270.7 million, or 17.5, compared to 1.5 billion at June 30, 2019. Excluding loans acquired from Bank of York on November 1, 2019 and PlainsCapital Bank on February 21, 2020 with a total balance of 81.3 million at June 30, 2020, total loans increased 189.3 million, or 12.3, compared to June 30, 2019. Beginning in the second quarter, the Bank participated as a lender in the Small Business Administrations SBA and U.S. Department of Treasurys Paycheck Protection Program PPP as established by the Coronavirus Aid, Relief, and Economic Security Act CARES Act. The PPP loans are generally 100 guaranteed by the SBA. At June 30, 2020, the balance of PPP loans was 109.5 million. In response to the COVID-19 pandemic, in the first quarter of 2020, the Bank instituted a 90-day loan deferral program for affected customers and continues to offer assistance to those experiencing financial hardships as a result of the pandemic. At June 30, 2020, the Company had 490.3 million, or 27 of the total loan portfolio, on the deferral program. As of July 22, 2020, the balance of loans remaining on the 90-day deferral plan was approximately 116.5 million, or 6 of the total loan portfolio. Total deposits increased 160.8 million, or 9.3, to 1.9 billion at June 30, 2020, compared to 1.7 billion at March 31, 2020, and increased 337.4 million, or 21.7, compared to 1.6 billion at June 30, 2019. Total noninterest-bearing deposits increased 129.7 million, or 38.2, to 469.1 million at June 30, 2020, compared to 339.4 million at March 31, 2020, and increased 179.6 million, or 62.0, compared to 289.5 million at June 30, 2019. The Bank recorded 2.5 million in provision for loan losses for the quarter ended June 30, 2020, compared to 3.8 million and 0.4 million for the quarters ended March 31, 2020 and June 30, 2019, respectively. The increases in the provision for loan losses in both the first and second quarters of 2020 compared to the quarter ended June 30, 2019 are primarily a result of the deterioration of market conditions which have been adversely affected by the COVID-19 pandemic. Cost of deposits decreased 27 basis points to 1.20 for the quarter ended June 30, 2020 compared to 1.47 for the quarter ended March 31, 2020, and decreased 32 basis points compared to 1.52 for the quarter ended June 30, 2019. Our overall cost of funds decreased 26 and 31 basis points to 1.36 compared to 1.62 and 1.67 for the quarters ended March 31, 2020 and June 30, 2019, respectively. Net interest margin remained stable at 3.46 for the quarters ended June 30, 2020 and March 31, 2020. The Company and Bank remain well capitalized with all capital ratios above the regulatory requirements. The total risk-based capital ratio for the Company and Bank was 14.61 and 13.25, respectively, at June 30, 2020, compared to 14.39 and 12.87, respectively, at March 31, 2020. The Company repurchased 102,837 shares of its common stock through its stock repurchase program at an average price of 11.48 per share during the quarter ended June 30, 2020, leaving 196,861 shares authorized for repurchase under the current stock repurchase plan. At the end of the second quarter, the Bank implemented a reduction in force, resulting in a severance charge of 0.3 million for the quarter ended June 30, 2020, and announced the closing of our Zachary, Louisiana branch in the fourth quarter, due to its close proximity to other existing branch locations. As previously disclosed, on December 19, 2019, the Company entered into an Agreement and Plan of Reorganization the Agreement with Cheaha Financial Group, Inc. Cheaha. After the close of business on June 30, 2020, the Company provided notice of termination of the Agreement to Cheaha because the transactions contemplated by the Agreement were not consummated by the close of business on June 30, 2020. The termination of the Agreement came in response to the unpredictable economic conditions resulting from the global health crisis caused by the COVID-19 pandemic, which made it impractical for the Company to complete the strategic transaction contemplated by the Agreement.LoansTotal loans were 1.8 billion at June 30, 2020, an increase of 84.2 million, or 4.9, compared to March 31, 2020, and an increase of 270.7 million, or 17.5, compared to June 30, 2019. Excluding loans acquired from Bank of York on November 1, 2019 and PlainsCapital Bank on February 21, 2020 with a total balance of 81.3 million at June 30, 2020, total loans increased 189.3 million, or 12.3, compared to June 30, 2019.The following table sets forth the composition of the total loan portfolio as of the dates indicated dollars in thousands. Linked Quarter Change YearYear Change Percentage of Total Loans 6302020 3312020 6302019 6302020 6302019 Mortgage loans on real estate Construction and development 199,419 191,597 167,232 7,822 4.1 32,187 19.2 11.0 10.9 1-4 Family 326,102 328,730 305,512 2,628 0.8 20,590 6.7 18.0 19.8 Multifamily 60,617 61,709 56,081 1,092 1.8 4,536 8.1 3.3 3.6 Farmland 28,845 29,373 25,203 528 1.8 3,642 14.5 1.6 1.6 Commercial real estate Owner-occupied 371,783 370,209 339,130 1,574 0.4 32,653 9.6 20.5 22.0 Nonowner-occupied 411,776 406,145 338,426 5,631 1.4 73,350 21.7 22.7 21.9 Commercial and industrial 390,085 313,850 276,902 76,235 24.3 113,183 40.9 21.5 17.9 Consumer 25,344 28,181 34,822 2,837 10.1 9,478 27.2 1.4 2.3 Total loans 1,813,971 1,729,794 1,543,308 84,177 4.9 270,663 17.5 100 100 In response to the COVID-19 pandemic, in the first quarter of 2020, the Bank instituted a 90-day loan deferral program for customers who are impacted by the pandemic and is continuing to offer assistance to support customers experiencing financial hardships related to the pandemic. The Bank has processed approximately 1,800 payment deferral requests totaling 588.0 million. As of June 30, 2020, the balance of loans participating in the 90-day deferral program was approximately 490.3 million, or 27.0 of the total loan portfolio, compared to 55.0 million, or 3.2 of the total loan portfolio, at March 31, 2020. 