Investar Holding Corporation · NASDAQ:ISTR
Investar — IPO Roadshow (March 2017)
23 slides from Investar's IPO roadshow presentation, Mar 16, 2017
Slide 1: Investor Presentation – Subordinated Notes Offering
NASDAQ: ISTR John J. D’Angelo – President & Chief Executive Officer Christopher L. Hufft – Chief Financial Officer Travis M. Lavergne – Chief Credit Officer Investor Presentation Subordinated Notes Offering Filed pursuant to Rule 433 Registration No. 333-215238 Supplementing the Preliminary Prospect
Slide 2: Disclaimer
Disclaimer FORWARD LOOKING STATEMENTS This presentation contains forward-looking statements. Any statements about our expectations, beliefs, plans, predictions, forecasts, objectives, assumptions or future events or performance are not historical facts and may be forward-looking. You can identify fo
Slide 3: Terms of Proposed Subordinated Debt Offering
Terms of Proposed Subordinated Debt Offering Investar Holding Corporation (NASDAQ: ISTR) Issuer Security Subordinated Notes Size $15.5 million Term 10 years Covenants Consistent with regulatory requirements for Tier 2 Capital Use of Proceeds Funding of a portion of the purchase price of the proposed
Slide 4: Leadership Team
Leadership Team John J. D’Angelo President & CEO Christopher L. Hufft Chief Financial Officer Travis M. Lavergne Chief Credit Officer Founding President and Chief Executive Officer Prior to founding Investar, Mr. D’Angelo was president and director of Aegis Lending Corporation, a mortgage lending co
Slide 5: Investar Snapshot
Investar Snapshot Company overview Financial highlights Chartered as a de novo commercial bank in June 2006 by John J. D’Angelo, the current President and Chief Executive Officer Completed initial public offering of 3.3 million shares in July 2014, generating net proceeds of $41.7 million Headquarte
Slide 6: Investar Timeline
Investar Timeline June 2006 Chartered with an initial capitalization of $10.1 million FY 2008 Achieved profitability in second full year of operations May 2009 Opened second branch in Baton Rouge 2Q 2011 Opened two additional branches in Baton Rouge Market October 2011 Acquired South Louisiana Busin
Slide 7: Accomplishments Since IPO
Accomplishments Since IPO Announced Largest Acquisition Since Inception Shifted from Consumer Loans to C&I and CRE Focus Maintained High Quality Organic Loan Growth Continued to Add Experienced Bankers in Key Areas Further Established in Four Key Louisiana Markets Since IPO in June 2014, Investar ha
Slide 8: Attractive Markets
Attractive Markets Louisiana Deposit Market Share Market Share Opportunity Baton Rouge Louisiana’s second largest market by deposits and the state capital, deemed the major industrial, medical, research, motion picture, and growing technology center of the American South Hammond Commercial hub of a
Slide 9: Historical Growth
Historical Growth Total assets Total loans CAGR: 33% Note: Dollars in millions Total deposits CAGR: 32% CAGR: 31% Substantially all growth has been achieved organically 28% growth in business lending portfolio in 2016
Slide 10: Financial Performance
Financial Performance Diluted earnings per share Efficiency ratio¹ Return on average assets Efficiency ratio represents noninterest expenses divided by the sum of net interest income (before provision for loan losses) and noninterest income
Slide 11: Loan Composition
Loan Composition Gross loans includes loans held for sale of $32.1 million; there were no loans held for sale at 12/31/2016 June 30, 2014 (IPO) December 31, 2016 Gross Loans: $893.4 million Gross Loans¹: $596.1 million Since the initial public offering, the Company has transitioned its focus from co
Slide 12: Growth and Profitability Going Forward
Focus the organization on Business Banking and Commercial Lending Business Banking strategy requires fewer branches and branches of a smaller size Further develop the Treasury Management function to attract business noninterest-bearing deposits versus CDs Less reliance on CDs would drive down intere
Slide 13: Opportunistic Acquisitions Completed
Two whole bank transactions completed since 2011 Processes and infrastructure established to analyze selective opportunities going forward Announced: June 2011 Closed: October 2011 1 Branch in Prairieville, LA $31.5 million in gross loans and $38.6 million in deposits¹ Rationale: Entered Ascension P
Slide 14: Recently Announced Acquisition of Citizens Bancshares, Inc.
Recently Announced Acquisition of Citizens Bancshares, Inc. ISTR announced the acquisition of Citizens Bancshares, Inc., a $245 million asset bank headquartered in Louisiana, on March 8, 2017 Citizens is a historically profitable institution, with LTM ROAA of approximately 0.90% Citizens offers ISTR
Slide 15: Historical Capital Position
Historical Capital Position Consolidated Bank Note: Dollars in millions
Slide 16: Pro Forma Capitalization – Holding Company
Pro Forma Capitalization – Holding Company Note: Citizens merger adjustments include estimated cash consideration paid of $45.8 million and estimates of other purchase accounting adjustments, including goodwill of approximately $8.0 million; assumes risk weighting on net proceeds from $30.0 million
Slide 17: Pro Forma Double Leverage and Interest Coverage
Pro Forma Double Leverage and Interest Coverage Includes Citizens’ LTM actual financials; deposit interest adjusted for estimated full year amortization of purchase accounting mark; pre-tax income adjusted for estimated full year purchase accounting amortization and assumes 30% cost savings on Citiz
Slide 18: Pro Forma Deposit Composition
$908M $209M $1.1B Pro Forma Deposit Composition Source: SNL Financial; data as of December 31, 2016; bank level data shown for Citizens
Slide 19: Pro Forma Loan Composition
Pro Forma Loan Composition Source: SNL Financial; data as of December 31, 2016; bank level data shown for Citizens $893M $129M $1.0B
Slide 20: ISTR Loan Credit Portfolio Summary
ISTR Loan Credit Portfolio Summary $893M Note: Financial data as of December 31, 2016 No special mention or substandard loans with exposure to the energy industry
Slide 21: Asset Quality Trends
Asset Quality Trends NPAs / Assets NCOs / Average Loans Reserves / Loans Reserves / NPLs
Slide 22: Investment Opportunity
Investment Opportunity Management 1 Market 2 Growth 3 Asset Quality 4 Profitability 5 Legacy team with proven industry expertise tied to the Southern Louisiana region Continue to add experienced bankers in new and existing markets Southern Louisiana focus with complementary new market expansion Loan
Slide 23: Non-GAAP Reconciliation
ao Non-GAAP Reconciliation ‘Tangible common equity Total stockholders’ equity Less: Goodwi jeposit intangible : Trademark intangible ‘Tangible common equity Total assets Less: Goodwill Less: Core deposit intangible Less: Trademark intangible Tangible assets Tangible common equity / tangible assets 2