Investar Holding Corporation · NASDAQ:ISTR
Investar — Investor Presentation (February 2015)
24 slides from Investar's investor presentation, Feb 5, 2015
Slide 1: Investar Holding Corporation
INVESTAR g HOLDING CORPORATION Exhibit 99.1 NASDAQ: ISTR a
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation may include forward-looking statements as www.investarbank.com defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon NASDAQ: ISTR current expectations and assumptions about our business that are s
Slide 3: 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 4: Accomplishments to Date
Accomplishments to Date Since commencing operations in June 2006, Investar has successfully established a profitable commercial bank in multiple growth markets: Firmly Established in Four Key Louisiana Markets High Quality Organic Loan Portfolio Very Strong Growth Complemented by Two Successful Acqu
Slide 5: Franchise Overview
Franchise Overview Franchise History June2006– Charteredwith an initial capitalization of $10.1 million FY2008– Achievedprofitability in second full year of operations May 2009– Openedsecond branch in Baton Rouge 2Q 2011– Openedtwo additional branches in Baton October1, 2011– Acquired Rouge Market S
Slide 6: Franchise Overview
Franchise Overview Branch Map Current • 11 full-service branches in the Baton Rouge, New Orleans, Hammond, and Lafayette markets • 179 employees at 12/31/14 • One new branch opening in 2015 • Institutional ownership 38% • Insider ownership 10% • 5-year CAGRs¹ – Assets –38.3% – Loans –39.8% – Deposit
Slide 7: Our Market
Our Market Louisiana • Forecasting robust job creation of 34,100 in 2015 and 32,600 in 2016 • According to these forecasts, Louisiana will surpass more than 2,000,000 non-farm employees for the first time in the state’s history • Growth along and south of the I-10 corridor expected to be dynamic wit
Slide 8: Financial Highlights
Financial Highlights Amounts in thousands, except share data Year Ended December 31, 2014 2013 Financial Highlights Total Assets $879,354 $634,946 Gross Loans $726,186 $509,124 Total Deposits $628,118 $532,606 Total Stockholders' Equity $103,384 $55,483 Shares Outstanding 7,262,085 3,945,114 Capital
Slide 9: Current Strategy
Current Strategy • Management – Continue to add experienced bankers in new and existing markets • Market – Southern Louisiana focus with complementary new market expansion • Growth – Leverage existing infrastructure in four markets – Limited de novo branching – Opportunistic, disciplined acquisition
Slide 10: Growth Has Been the Story
Growth Has Been the Story Total Assets FCB Acquisition +39% SLBB Acquisition +69% +34% +33% Gross Loans FCB Acquisition +43% SLBB Acquisition +66% +34% +38% 10 Note: Gray shading denotes the marked value of acquired assets and loans on date of the respective acquisitions of South Louisiana Bank (clo
Slide 11: Loan Composition
Loan Composition Loan Composition Year Ended December 31, Increase/(Decrease) 2012 2013 2014 Amount % Amount % Amount % Amount % Mortgage loans on real estate Construction and land development $20,271 7.0% $63,170 12.5% $71,350 11.4% $8,180 12.9% 1-4 Family 54,813 19.0 104,685 20.8 137,519 22.1 32,8
Slide 12: Loan Composition
Loan Composition December 31, 2014 Business Lending Portfolio² Real Estate Health Care and Rental and and Social Leasing Assistance 13% 20% Construction 9% Retail Trade 16% Professional, Scientific, and Other Technical 0% Industries less Services than 5% 25% 0% 7% Finance and Insurance 10% Total Loa
Slide 13: Credit Metrics
Credit Metrics NPAs / Total Loans + OREO FCB Acquisition Investar Peers¹ NCOs / Average Loans 2012 Investar Peers¹ (1) Peer group consists of UBPR peers produced by the FFIEC and defined by a combination of asset size, number of branches and location in a Metropolitan Statistical Area 13
Slide 14: Disciplined Lending
Disciplined Lending Reserves / TotalLoans¹ ,² • Reserves/ Total Loans¹,²: 0.74% • Reserves / (Total Loans¹ – Acquired): 0.80% • (Reserves+ FVMarks)/ Total Loans¹,²: 0.89% Reserves / NPLs Provision Expense / NCOs Ex Acquired NPLs 1,250% 177% 3 4 NM NM NM 5 (1) Total loans excludes loans held for sale
Slide 15: Deposit Composition and Growth
Deposit Composition and Growth Deposit Composition ¹ Total Deposits ($628.1 million) 2010 -Present Noninterest bearing 11% NOW CDs accounts 49% 19% Money market Savings 12% accounts 9% Rateoninterestbearingdeposits:0.83% Growthin noninterestbearingdeposits:19.4%2 Strategy has been to bring in custom
Slide 16: Performance Metrics
Performance Metrics Net Interest Margin 2014 Return on Average Assets (1) Return on average assets was adjusted for the net effect of the Company’s investment in a tax credit entity recognized in 2014. 16
Slide 17: Performance Metrics
Performance Metrics 2014 Efficiency Ratio Expense Ratios Year Ended December 31, 2010 2011 2012 2013 2014 Employees 49 70 100 167 179 Locations 4 5 7 10 11 (1) Efficiency ratio is a non-GAAP financial measure. The efficiency ratio was adjusted for the impairment related to the Company’s investment i
Slide 18: Per Share Growth
Per Share Growth Tangible Book Value (TBV) / Share 18
Slide 19: Profitability
Profitability Net Income and Earnings Per Share +70% +34% +136% +40% 19
Slide 20: Opportunistic Acquirer
Opportunistic Acquirer • Two whole bank transactions since 2011 • Processes and infrastructure established to analyze selective opportunities going forward South Louisiana Business Bank First Community Bank • Announced: June, 2011 • Announced: January, 2013 • Closed: October, 2011 • Closed: May, 201
Slide 21: Investment Highlights
Investment Highlights • Strong historical balance sheet and earnings growth • Meaningful organic opportunities exist in market • Profitable with room to grow into current infrastructure • Clean asset quality • Experienced management team • Experienced, disciplined acquirer • Committed level of insid
Slide 22: Appendix
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Slide 23: Non-GAAP Financial Measures
Non-GAAP Financial Measures Tangible book value per share, the ratio of tangible equity to tangible assets, and the efficiency ratio are not financial measures recognized under GAAP and, therefore, are considered non-GAAP financial measures. Our management, banking regulators, many financial analyst
Slide 24: Income Statement
Income Statement Year Ended December 31, 2010 2011 2012 2013 2014 INTEREST INCOME Interest and fees on loans $ 9,082 $ 10,877 $ 13,968 $ 21,686 $ 29,979 Interest on investment securities 611 406 585 756 1,339 Other interest income 17 19 34 30 50 TOTAL INTEREST INCOME 9,710 11,302 14,857 22,472 31,36
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