Investar Holding Corporation · NASDAQ:ISTR
Investar — Gulf South Bank Conference (May 2023)
25 slides from Investar's conference presentation, May 2023
Slide 1: Investor Presentation – 1st Quarter 2023
NASDAQ: ISTR Investor Presentation – 1st Quarter 2023 Gulf South Bank Conference 1
Slide 2: Disclosures and Disclaimers
Disclosures and Disclaimers This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Investar’s current views with respect to, among other things, future events and financial performance. Investar generally identifi
Slide 3: Disclosures and Disclaimers (continued)
Disclosures and Disclaimers (continued) • a reduction in liquidity, including as a result of a reduction in the amount of deposits we hold or other sources of liquidity; • ongoing disruptions in the oil and gas industry due to the significant fluctuations in the price of oil and natural gas; • data
Slide 4: Our Company
Our Company Investar Holding Corp. is the Bank Holding Company for Investar Bank ▪ Headquartered in Baton Rouge, LA Mission ▪ Founded in 2006 Investar is a dynamic full service community bank focused on relationships that create value and opportunities for our customers, employees, ▪ Full service, c
Slide 5: Proactive Strategic Initiatives
Proactive Strategic Initiatives Funding ▪ Beginning in the 4th quarter of 2022, we proactively began utilizing brokered time deposits to secure fixed cost funding and reduce higher cost short-term borrowings. ▪ We held $31.3 million of cash and cash equivalents at March 31, 2023 and maintained $899.
Slide 6: Financial Overview – 1st Quarter 2023
Financial Overview – 1st Quarter 2023 Highlights 1st Quarter Results ▪ Recorded quarterly net income of $3.8 million in the 1st quarter Balance Sheet (in millions) Assets $2,752 ▪ Accumulated other comprehensive loss improved $4.7 million, or 9.5%, to $44.3 million at March 31, 2023 compared to $48.
Slide 7: Leadership Team
Leadership Team John J. D’Angelo, President and Chief Executive Officer Mr. D’Angelo has been the President and Chief Executive Officer of the Company since the Share Exchange. He has also served as the Bank’s President and Chief Executive Officer since its organization in 2006. Prior to Investar Ba
Slide 8: Corporate Culture
Corporate Culture VALUES MISSION Integrity INVESTAR IS Neighborly a dynamic full service Visionary community bank focused Empowerment on relationships that create Star Service value and opportunities for Team Focused our customers, employees, Accountable shareholders and the Responsive community ser
Slide 9: Creating Shareholder Value
Creating Shareholder Value Tangible Book Value Per Share1 6.4% TBV / Share (Ex. AOCI) $22.37 $22.21 $22.21 $22.00 GROWTH CAGR2 2018 – 2023Q1 $19.89 $19.72 $20.00 $19.20 $19.08 $18.79 $18.62 $18.00 $17.74 $17.46 $17.43 TBV per Share1 ($) $17.13 $16.00 $14.00 $12.00 $10.00 2018 2019 2020 2021 2022 202
Slide 10: Recent GAAP Earnings Performance
Recent GAAP Earnings Performance Net Income ($000) Net Income Earnings PerEPS Share (Diluted) $10,103 $0.97 $9,404 $0.92 $8,898 $0.88 $7,304 $0.73 $3,812 $0.38 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 ROAA ROAA(%) Net Interest Margin (%) #PEND 1.60 1.48 3.75 3.77 1.32 3.
Slide 11: Recent Core Earnings Performance
Recent Core Earnings Performance Core EPS (Diluted) Core Net CoreIncome 1 ($000) Net Income Core Earnings Per Share (Diluted) 1 $7,107 $7,119 $0.71 $0.68 $6,328 $6,219 $0.62 $0.62 $5,123 $0.51 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 Core ROAA (%) 1 Core Efficiency Ratio
Slide 12: Continued Execution of Acquisition Strategy
Continued Execution of Acquisition Strategy Investar Has Completed 7 Whole Bank Acquisitions and 1 Branch Transaction 2011 Total Assets: South LA Business Bank (LA) 2017 $2.8 Billion BOJ Bancshares (LA) 2019 2013 Bank of York (AL) First Community Bank (LA) 2017 2021 2019 Citizens Cheaha Financial Ba
Slide 13: Loan Portfolio – 1st Quarter Update
Loan Portfolio – 1st Quarter Update Farmland 0.5% Owner-Occupied Multifamily Commercial Real ▪ Loan yield of 5.27% 3.8% Estate 20.6% ▪ Total loans increased $4.3 million, or 0.2%, to $2.11 billion Nonowner-Occupied Commercial Real at March 31, 2023, compared to $2.10 billion at December 31, Estate 2
Slide 14: Allowance for Credit Losses / Total Loans
Allowance for Credit Losses / Total Loans Allowance for Credit Losses / Total Loans (%) 1.45 1.16 1.09 1.11 0.63 2019Y 2020Y 2021Y 2022Y 2023Q1 For the Three Months For the Year Ended Ended (Dollars in Thousands) 12/31/2019 12/31/2020 12/31/2021 12/31/2022 3/31/2023 Allowance for Credit Losses Allow
Slide 15: Asset Quality Trends
Asset Quality Trends Nonperforming Assets ($000s) NPAs / Assets (%) $29,142 1.13 $20,425 $15,440 0.79 $12,018 0.58 0.44 $6,361 0.23 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 Net Charge-offs / Avg. Loans (%) Reserves / NPLs (%) 535.6 0.01 0.00 0.00 0.00 214.9 176.7 (0.04)
Slide 16: Deposit Portfolio
Deposit Portfolio Deposit Mix at March 31, 2023 ▪ Total deposits increased $63.3 million, or 3.0%, to $2.15 billion at March 31, 2023, compared to $2.08 billion at Money December 31, 2022. Market Interest- 8.4% bearing Savings ▪ Uninsured deposits were 32% of total deposits at March 31, Demand 25.1%
Slide 17: Financial Profile
Financial Profile As of December 31 For the Three Months Ended In $000s except for per share data 2018 2019 2020 2021 2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Balance Sheet Total Assets $1,786,469 $2,148,916 $2,321,181 $2,513,203 $2,753,807 $2,590,607 $2,661,694 $2,753,807 $2,751,669 Total Loan
Slide 18: Appendix
APPENDIX
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands, except per share data) As of December 31 For the Three Months Ended 2018 2019 2020 2021 2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Tangible common equity: Total stockholders' equity $182,262 $241,976 $243,284 $242,598 $215,782 $219,369 $205,700 $215,
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands) For the Three Months Ended 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Net Income $ (9,984) $ 6,936 $ 10,103 $ 9,404 $ 7,304 $ 8,898 $ 3,812 Less: Provision Expense (21,713) (658) 449 (941) (1,162) (1,268) (388) Less: Tax Exp
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands) For the Three Months Ended 3/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Interest on Deposits $2,302 $2,114 $1,854 $1,217 $976 $907 $1,315 $3,052 $6,221 Average Interest-Bearing Deposits $1,484,515 $1,677,47
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands) For the Three Months Ended 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Net interest income $21,821 $21,978 $23,467 $22,519 $20,173 Provision for credit losses (449) 941 1,162 1,268 388 Net interest income after provision $22,270 $21,037 $22,305 $
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands) For the Three Months Ended 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 Core basic earnings per common share $0.69 $0.62 $0.71 $0.63 $0.52 Diluted earnings per common share (GAAP) $0.97 $0.92 $0.73 $0.88 $0.38 Gain on call or sale of investment se
Slide 24: Non-GAAP Reconciliation footnotes
1Adjustment to noninterest income recorded upon completion of the sale of the Alice and Victoria branches for remaining discount on loans sold. 2Income from insurance proceeds represents nontaxable income related to an insurance policy for the former Chief Financial Officer of Investar and the Bank.
Slide 25: Slide 25
Investar Holding — Gulf South Bank Conference (May 2023) on 6ix