Investar Holding Corporation · NASDAQ:ISTR
Investar — Raymond James Conference 2015
23 slides from Investar's conference presentation, Sep 9, 2015
Slide 1: Raymond James Conference: September 9, 2015
Exhibit 99.1 NASDAQ: ISTR Raymond James Conference: September 9, 2015 1
Slide 2: Forward-looking Statements
Forward-looking Statements Thispresentationmay include forward-looking statementsas www.investarbank.com defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon NASDAQ: ISTR current expectationsandassumptionsabout our businessthat are subject
Slide 3: Company Profile as of June 30, 2015
Company Profile as of June 30, 2015 Market Data Financial Highlights Share Outstanding 7,293,209 Assets $921.9 million Market Cap $110.9 million Net Loans $667.9 million Price per Share $15.20 Deposits $706.0 million Dividend Yield (YTD) 0.19% Tangible Equity $103.7 million Price/ Tangible Book Valu
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 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 6: Franchise Overview
Franchise Overview Franchise History 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 October 1, 2011 Acquired – Rouge
Slide 7: Franchise Overview
Franchise Overview Branch Map Current • Total Assets: $922 Million • 11 full-service branches in the Baton Rouge, New Orleans, Hammond, and Lafayette markets • 176 employees at June 30, 2015 • One new branch opening in 2015 • Institutional ownership 42% • Insider ownership 9% • 5-year CAGRs¹ – Asset
Slide 8: 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 9: 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 10: Growth Has Been the Story
Growth Has Been the Story Total Assets FCB Acquisition +5% +39% SLBB Acquisition +69% +34% +33% Gross Loans HFS HFS FCB Acquisition +4% +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 Lou
Slide 11: Loan Composition
Loan Composition Loan Composition December 31, June 30, Increase/(Decrease) 2012 2013 2014 2015 Amount % Amount % Amount % Amount % Amount % Mortgage loans on real estate Construction and land development$20,271 $20,271 7.0% $63,170 12.5% $71,350 11.4% $70,927 10.5% ($423) -0.1% 1-4 Family 54,813 19
Slide 12: Loan Composition
Loan Composition June 30, 2015 Business Lending Portfolio² Total Loans¹: $673.6 million Yield on loans: 4.73% TotalBusiness LendingPortfolio2: 52% of CRE is owner occupied $186.3 million (1) Total loans includes gross loans less loans held for sale 12 (2) Business lending portfolio includes owner oc
Slide 13: Credit Metrics
Credit Metrics NPAs / Total Loans + OREO FCB Acquisition Investar Peers¹ NCOs / Average Loans 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: 0.85% • Reserves / (Total Loans¹Acquired): – 0.91% • (Reserves + FV Marks) / Total Loans¹ ,²: 0.95% Reserves / NPLs Provision Expense / NCOs 3 4 NM NM 5 NM (1) Total loans excludes loans held for sale and allowance for loan
Slide 15: Deposit Composition and Growth
Deposit Composition and Growth Deposit Composition ¹ Total Deposits ($706 million) 2010 -Present Costof fundsof interestbearingdeposits: 0.84% Growth in noninterest bearing deposits: 23% Strategyhas been to bring in customersthrough competitive rates, then implement an aggressive cross-sellstrategy
Slide 16: Financial Highlights
Financial Highlights Amounts in thousands, except share data Quarter Ended June 30, Year Ended December 31, 2015 2014 2014 2013 Financial Highlights Total Assets $921,855 $729,070 $879,354 $634,946 (1) Gross Loans $751,798 $596,106 $726,186 $509,124 Total Deposits $706,007 $578,667 $628,118 $532,606
Slide 17: Performance Metrics
Performance Metrics Net Interest Margin Return on Average Assets (1) Return on average assets was adjusted for the bargain purchase gain recognized in 2013 and the net effect of the Company’s investment in a tax credit entity recognized in 2014. 17
Slide 18: Performance Metrics
Performance Metrics Expense Ratios 100.0% 5.00% 3.82% 3.65% 3.83% 90.0% 4.00% 3.19% 3.32% 80.1% 80.0% 3.00% 80.0% 3.00% 74.5% 74.3% 72.8% 70.0% 67.9% 2.00% 60.0% 1.00% 50.0% 0.00% 2010 2011 2012 2013 2014 Q2 2015 Year Ended December 31, 2010 2011 2012 2013 2014 Q2 2015 Employees 49 70 100 167 179 17
Slide 19: Profitability
Profitability Net Income and Earnings Per Share $6,500 $0.93 $1.00 $0.81 $0.71 $5,397 $0.80 $5,500 $0.43 $0.47 $0.60 $4,500 $0.40 +70% $0.20 $3,500 $3,168 $0.00 $2,500 $2,361 +34% -$0.20 +136% -$0.40 $1,500 $999 $715 +40% -$0.60 $500 -$0.80 2010 2011 2012 2013 2014 $6,500 $1.00 $0.80 $5,500 $0.60 $4
Slide 20: 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 21: Appendix
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Slide 22: 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 23: Income Statement
Income Statement Year Ended December 31, Three Months Ended 2010 2011 2012 2013 2014 2014 Q2 2015 Q2 INTEREST INCOME Interest and fees on loans $ 9,082 $ 10,877 $ 13,968 $ 21,686 $ 29,979 $ 7,119 $ 8,646 Interest on investment securities 611 406 585 756 1,339 278 523 Other interest income 17 19 34 3