Investar Holding Corporation · NASDAQ:ISTR
Investar — Investor Presentation (November 2020)
29 slides from Investar's investor presentation, Nov 10, 2020
Slide 1: Investar Holding Corporation
on INVESTAR _ HOLDING CORPORATION NASDAQ: ISTR
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This presentation may contain 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 www.investarbank.c
Slide 3: Company Profile as of September 30, 2020
COMPANY PROFILE AS OF SEPTEMBER 30, 2020 Market Data Q3 Financial Highlights Shares Outstanding 10,629,586 Assets $2.3 billion Market Cap $136.3 million Net Loans $1.8 billion Price per Share $12.82 Deposits $1.8 billion Dividend Yield 1.91% Tangible Equity(1) $204.8 million Price/ Tangible Book Val
Slide 4: Senior Management
SENIOR MANAGEMENT John J. D’Angelo, • Founding President and Chief Executive Officer President & CEO • New Orleans native; graduate of Louisiana State University • Prior to founding Investar, Mr. D’Angelo was president and director of Aegis Lending Corporation, a mortgage lending company with operat
Slide 5: Accomplishments Since IPO
ACCOMPLISHMENTS SINCE IPO Since IPO in June 2014, Investar has experienced significant progress: Further Established in Four Key Louisiana Markets Shifted from Consumer Loans to C&I and CRE Focus Maintained High Quality Organic Loan Growth Transitioned from Transactional Banking to Relationship Bank
Slide 6: Investar Timeline
INVESTAR TIMELINE 2020 Acquired two 2014 branches from Completed 2018 Hilltop Holdings initial public Opened additional offering branch in our Baton $2,323 Rouge market 2012 $2,149 Entered the New Orleans market $1,786 $1,623 $1,159 $1,032 $879 $635 $375 $279 $143 $174 $209 $30 $66 2006 2007 2008 20
Slide 7: Investar Snapshot
INVESTAR SNAPSHOT Company overview Financial highlights Year Ended December 31, Dollars in thousands, except share data 2018 2019 Q3 2020 Financial Highlights • Chartered as a de novo commercial bank in June 2006 by John J. D’Angelo, Total Assets $ 1,786,469 $ 2,148,916 $ 2,323,245 the current Presi
Slide 8: Opportunistic Acquisitions
OPPORTUNISTIC ACQUISITIONS Branch map Six whole bank transactions since 2011 ISTR South Louisiana Business Bank: Announced June 2011, Closed October 2011 South Louisiana Business Bank • 1 Branch in Prairieville, LA • First Community Bank $31.5 million in gross loans and $38.6 million in deposits¹ Ci
Slide 9: Recent Acquisitions
RECENT ACQUISITIONS Investar Holding Corporation (27) Bank of York (2) HTH Branch Acquisition (2) HTH branches in Alice and Victoria, Texas Bank of York, York, Alabama • Closed on February 21, 2020 • Closed on November 1, 2019 • 2 Branches – Alice and Victoria, TX • $15 million cash • Pricing – 100%
Slide 10: Total Assets
Total Assets (in millions) 2,323 81 2,149 1,786 1,623 1,032 1,159 2015 2016 2017 2018 2019 Q3 2020 Assets Held for Sale *Represents the compounded annual growth rate for the five years ended December 31, 2019 10
Slide 11: Total Loans
TotalTotal Loans (in millions) 8.1% 20.8% 11.3% 40.9% 19.9%* 1,830 1,692 81 1,401 1,259 893 745 2015 2016 2017 2018 2019 Q3 2020 Loans Held for Sale * Growth % excludes Loans HFS 11
Slide 12: Loan Composition
LOAN COMPOSITION 2018 2019 Q3 2020 Increase/(Decrease) (dollars in thousands) Amount % Amount % Amount % Amount % Mortgage loans on real estate Construction and land development $ 157,946 11.3% $ 197,797 11.7% $ 206,751 11.3% $ 8,954 4.5% 1-4 Family 287,137 20.5 321,489 19.0% 339,364 18.5 17,875 5.6
Slide 13: Loan Composition
LOAN COMPOSITION September 30, 2020 Consumer 1% Construction & land development 11% C&I 22% CRE 43% Residential/Farmland 23% Total Loans: $1.8 billion YTD Yield on loans: 4.96% 48% of CRE is owner-occupied 13
Slide 14: Loan Composition: Business Lending Portfolio
LOAN COMPOSITION Business Lending Portfolio1 Health Care and Social Assistance 13% Construction 7% Other Industries less than 5% 29% Retail Trade 13% Professional, Scientific, & Real Estate and Rental and Technical Leasing 12% 10% Manufacturing Wholesale Trade 6% 10% Total Business Lending Portfolio
Slide 15: Credit Metrics
CREDIT METRICS NPAs / Total Loans + OREO 2.00% 1.33% 0.97% 1.00% 0.84% 0.79% 0.77% 0.67% 0.68% 0.68% 0.74% 0.60% 0.42% 0.38% 0.00% 2015 2016 2017 2018 2019 Q3 Investar Peers¹ 2020 NCOs / Average Loans 0.20% 0.14% 0.12% 0.11% 0.10% 0.10% 0.10% 0.08% 0.08% 0.08% 0.07% 0.05% 0.04% 0.01% 0.00% 2015 2016
Slide 16: Disciplined Lending
DISCIPLINED LENDING Reserves / Total Loans 1.20% 1.04% 1.00% 0.82% 0.79% 0.80% 0.67% 0.63% 0.63% 0.60% 0.40% 2015 2016 2017 2018 2019 Q3 2020 Reserves / NPLs Provision Expense / NCOs 600% 25.0x 22.3x 500% 20.0x 400% 356% 15.0x 300% 254% 214% 10.0x 200% 159% 171% 154% 5.1x 5.0x 2.6x 100% 1.8x 2.2x 2.
Slide 17: COVID-Related Loan Modifications
COVID-RELATED LOAN MODIFICATIONS Month-End Deferral Balances and Percentage of Total Loan Portfolio on Deferral (dollars in millions) 27.0% $490 3.2% 3.3% 1.0% $56 $49 $12 $13 $5 MARCH JUNE SEPTEMBER NOVEMBER* Initial Deferral Second and Third Deferrals *Represents data as of November 2, 2020 17
Slide 18: Deposit Composition and Growth
DEPOSIT COMPOSITION AND GROWTH Deposit Composition ¹ ($1.8 billion) Noninterest-bearing CDs demand deposits 32% 25% Interest-bearing demand Savings deposits 7% 26% Money market 10% Cost of interest-bearing deposits1: 1.21% Target: 20% of total deposits are noninterest-bearing Growth in noninterest-b
Slide 19: Deposit Composition and Growth
DEPOSIT COMPOSITION AND GROWTH Total Deposits $2,000 $1,800 $1,834 $1,708 $1,600 $1,400 $1,362 $1,200 $1,225 $1,000 $908 Total Deposits ($ millions) ($ Deposits Total $800 $737 $600 $400 $200 2015 2016 2017 2018 2019 Q3 2020 *Represents the compounded annual growth rate for the five years ended Dece
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS Year Ended December 31, Dollars in thousands, except share data 2018 2019 Q3 2020 Financial Highlights Total Assets $ 1,786,469 $ 2,148,916 $ 2,323,245 Gross Loans 1,400,825 1,691,975 1,829,680 Total Deposits 1,361,731 1,707,706 1,834,449 Total Stockholders' Equity 182,262 241,9
Slide 21: Performance Metrics
PERFORMANCE METRICS Net Interest Margin 4.00% 3.61% 3.61% 3.51% 3.46% 3.00% 3.32% 3.39% Margin (%) Margin 2.00% Interest Net Net 1.00% 0.00% 2015 2016 2017 2018 2019 Q3 2020 Core Return on Average Assets 1.00% 0.95% 0.80% 0.91% 1 0.76% 0.69% 0.60% 0.65% 0.65% 0.40% Core ROAA (%) ROAA Core 0.20% 0.00
Slide 22: Performance Metrics
PERFORMANCE METRICS Expense Ratios 100.0% 4.00% 2.97% 1 90.0% 2.48% 3.00% 2.41% 2.43% 2.29% 2.50% 80.0% 2.00% 70.0% 68.9% 67.6% 66.2% 66.0% 1.00% 60.0% 63.8% 65.4% Avg. Assets (%) AssetsAvg. Core Efficiency (%) Core Efficiency Ratio 50.0% 0.00% Expense Noninterest / 2015 2016 2017 2018 2019 Q3 2020
Slide 23: Profitability
PROFITABILITY Net Income and Diluted Earnings Per Share $6,000 $0.46 $0.50 $0.39 $0.41 $0.32 $5,000 $0.30 $4,657 $4,467 $4,000 $4,274 $0.05 per Share (Thousands) $0.10 $3,000 $3,331 Income Net -$0.10 $2,000 Earnings Diluted -$0.30 $1,000 $608 $0 -$0.50 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Core Di
Slide 24: Investar Strategy
INVESTAR STRATEGY 1 Management • Continue to add experienced bankers in new and existing markets 2 Market • Southern Louisiana focus with complementary new market expansion 3 Growth • Leverage existing infrastructure in core markets • Limited de novo branching • Opportunistic, disciplined acquisitio
Slide 25: Appendix
APPENDIX 24
Slide 26: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Tangible equity, tangible book value per share, and the ratio of tangible equity to tangible assets are not financial measures recognized under GAAP and, therefore, are considered non- GAAP financial measures. Our management, banking regulators, many financial analysts an
Slide 27: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES December 31, Dollar values in thousands except per share amounts 2015 2016 2017 2018 2019 Q3 2020 Net interest income (x) $ 31,458 $ 34,739 $ 42,517 $ 57,370 $ 64,818 $ 18,706 Provision for loan losses 1,865 2,079 1,540 2,570 1,908 2,500 Adjusted net interest income after
Slide 28: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Dollar values in thousands except per share amounts Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Net interest income (a) $ 16,366 $ 16,965 $ 17,335 $ 18,339 $ 18,706 Provision for loan losses 538 736 3,760 2,500 2,500 Net interest income after provision for loan losses 15,828
Slide 29: Income Statement
INCOME STATEMENT December 31, (dollars in thousands, except share data) 2015 2016 2017 2018 2019 Q3 2020 INTEREST INCOME Interest and fees on loans $ 35,076 $ 39,380 $ 47,863 $ 66,750 $ 80,954 $ 21,866 Interest on investment securities 2,189 3,565 5,055 6,608 7,440 1,356 Other interest income 75 207
Investar Holding — Investor Presentation (November 2020) on 6ix