Investar Holding Corporation · NASDAQ:ISTR
Investar — IPO Roadshow (June 2014)
31 slides from Investar's IPO roadshow presentation, Jun 23, 2014
Slide 1: NASDAQ: ISTR Initial Public Offering
Filed Pursuant to Rule 433 Registration No. 333-196014 June 2014 NASDAQ: ISTR Initial Public Offering June 19, 2014 EXPLANATORY NOTE This Free Writing Prospectus is filed solely to correct a typographical error in the Free Writing Prospectus that Investar Holding Corporation (“Investar”) filed on Ju
Slide 2: Offering Disclosure
Offering Disclosure This presentation has been prepared by Investar Holding Corporation (“Investar” or the “Company”) solely for informational purposes based on its own information, as well as information from industry and public sources. This presentation has been prepared to assist interested part
Slide 3: Offering Summary
Offering Summary Issuer Investar Holding Corporation Ticker / Exchange ISTR / NASDAQ Offering Type Initial Public Offering of Common Stock Shares to be Issued 2,875,000 Price Range $15.00- $17.00 Gross Proceeds $46.0 million Pro Forma Market Capitalization $109 million Over-Allotment Option 15% Prim
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: Key Employees
Key Employees • Core management team has been together since inception • Company has continued to add experienced staffing to support and drive growth Executive Officers & Key Employees • Cashier and Chief Financial Officer of Investar Bank since 2006 Rachel P. Cherco • Chief Financial Officer of Un
Slide 6: 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 7: Franchise Overview
Franchise Overview Franchise History Branch Map June2006 – Charteredwith an initial June 2006 capitalization of $10.1 million FY2008 – Achievedprofitability in FY 2008 second full year of operations May2009 – Openedsecondbranchin May 2009 Baton Rouge 2H 2011 – Openedtwo additional branches in Baton
Slide 8: Financial Highlights
Financial Highlights Dollar values in thousands except per share data As of or Year Ended December 31, Three Months Ended, 2012 2013 3/31/2014 Financial Highlights Total Assets $375,446 $634,946 $673,964 Gross Loans $305,741 $509,124 $553,407 Total Deposits $299,670 $532,606 $564,194 Total Stockhold
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: Attractive Markets – Baton Rouge
Attractive Markets –Baton Rouge • Baton Rouge is Louisiana’s second largest market by deposits and is the state capital The farthest inland deep-water port on the Mississippi River, Baton Rouge is a major center of commercial and industrial activity, especially for the chemical and gas industry Cent
Slide 11: Attractive Markets – New Orleans
Attractive Markets –New Orleans • New Orleans is Louisiana’s largest city by population and deposits – Economy is driven by the hospitalityand tourism industries – in 2012, nine million visitors spent a record $6.0 billion in New Orleans – Fifth largest port in the United States by cargo tonnage and
Slide 12: Attractive Markets – Hammond
Attractive Markets –Hammond • Hammondisthe commercialhubof a largeagriculturalsegmentof Louisiana – Home to Southeastern Louisiana University (14,000 undergraduates) – The economy has evolved from primarily agricultural to a major distribution hub – Home to several large distribution centers includi
Slide 13: Attractive Markets – Lafayette
Attractive Markets –Lafayette • Lafayette is Louisiana’s third largest city by population and deposits – The economy is historically driven by the oil and gas industry, but healthcare now provides the most private sector jobs – Experiencing economic diversification as the healthcare sector grows and
Slide 14: Growth Has Been the Story
Growth Has Been the Story Total Assets $700 $674 FCB Acquisition $635 $600 +69% $536 $500 +70% SLBB Acquisition $395 $400 $375 $300 $279 +34% $228 $174 $209 +33% $200 +20% $100 $0 2009 2010 2011 2012 2013 3/31/2013 3/31/2014 Gross Loans $600 $553 FCB Acquisition $509 $500 +66% $431 $400 +70% SLBB Ac
Slide 15: Loan Composition
Loan Composition 2007 2014 Q1 Construction & Consumer 1% land development Construction & 12% land Consumer C&I development 25% 17% 28% Commercial RE C&I - Non-Owner 6% Occupied Commercial RE Residential, 18% - Non-Owner farmland Occupied Residential, 22% 15% farmland 22% Commercial RE Commercial RE
Slide 16: Credit Metrics
Credit Metrics NPAs / Total Loans + OREO 6.00% 5.30% 5.00% 4.81% 4.77% FCB Acquisition 4.00% 3.20% 3.00% 2.36% 2.32% 2.22% 2.00% 0.76% 0.92% 0.98% 0.95% 1.00% 0.76% 0.45% 0.43% 0.00% 2009 2010 2011 2012 2013 2014Q1 Investar Peers¹ NCOs / Avg. Loans 1.40% 1.26% 1.20% 1.02% 1.00% 0.83% 0.80% 0.69% 0.6
Slide 17: Disciplined Lending
Disciplined Lending Reserves / GrossLoans¹ ,² 1.20% 1.11% • Reserves/ GrossLoans¹,²: 0.67% 1.00% 0.93% 0.94% 0.79% • Reserves / (Gross Loans¹ – Acquired): 0.75% 0.80% 0.67% 0.67% 0.60% • (Reserves+ FVMarks)/ GrossLoans¹,²: 0.87% 0.40% 0.20% 0.00% 2009 2010 2011 2012 2013 2014Q1 Reserves / NPLs Provi
Slide 18: Auto Portfolio
Auto Portfolio • Core competency – 24.3% of the loan portfolio • Program began early 2008 – Hired an experienced team from Capital One and have added experienced personnel, most recently from Chase • Long-term relationships with auto dealers – Non-exclusive relationships with 56 dealerships in Baton
Slide 19: Auto Portfolio – By the Numbers
Auto Portfolio –By the Numbers Auto Charge-offs 0.45% • As of March 31, 2014: 0.40% – 24.3% of loan portfolio 0.35% – 67 month average original term 0.30% – 3.87% average yield – 740 average FICO score 0.25% 0.23% 0.22% 0.22% – 0.04% auto-NCOs / avg. auto loans 0.20% 0.16% 0.15% 0.10% 0.09% 0.05% 0.
Slide 20: Mortgage Banking Operations
Mortgage Banking Operations • 12 mortgage originators • Best efforts delivery; no hedging • Mortgage loans are primarily underwritten for sale on the secondary market – Generally hold jumbo loan mortgage originations (> $417,000) • Primary source of income is from gains from the sale of these loans
Slide 21: Deposit Composition and Growth
Deposit Composition and Growth Deposit Composition ¹ Total Deposits ($564.2 million) 2009 -Present $600 Noninterest $564 bearing 11% $533 NOW accounts $500 CDs 17% 50% $400 Money market 13% Savings $300 accounts $300 9% $228 $200 $184 • Strategy has been to bring in customers through competitive rat
Slide 22: Performance Metrics
Performance Metrics Net Interest Margin 4.50% 4.09% 4.04% 4.10% 4.00% 3.93% 3.50% 3.43% 3.28% 3.00% 2.50% 2.00% 2009 2010 2011 2012 2013 2014Q1 Expense Ratios 100.0% 5.00% 3.82% 3.83% 90.0% 3.65% 4.00% 3.19% 3.31%² 80.1% 80.0% 78.1% 77.7% 3.00% 2.55% 74.5% 74.3% 69.6% 70.0% 2.00% 60.0% 1.00% 50.0% 0
Slide 23: Profitability
Profitability Pre-Tax Income $5,000 $4,500 $4,316 $4,000 +29% $3,500 $3,340 $3,000 $2,500 $2,000 +123% $1,501 $1,500 $1,303 +37% $1,098 +45% $1,000 $899 +120% $500 $500 $0 2009 2010 2011 2012 2013 2013Q1 2014Q1 23
Slide 24: 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 25: Pro Forma Capital Ratios
Pro Forma Capital Ratios 20.00% 18.24% 18.00% 17.60% 16.00% 15.14% 14.26% 14.36% 14.00% 13.31% 11.69% 11.67% 12.00% 10.84% 10.21% 10.00% 8.80% 7.94% 8.00% 6.00% 4.00% 2.00% 0.00% TCE / TA¹ Tier 1 Leverage Tier 1 RBC Ratio Total RBC Ratio Ratio At December 31, 2011 At March 31, 2014 Pro Forma Note: A
Slide 26: 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 27: Appendix
Appendix ———————EEE 27
Slide 28: Loan Composition
Loan Composition Loan Composition Year Ended December 31, Quarter Ended, 2011 2012 2013 March 31, 2014 Amount % Amount % Amount % Amount % Mortgage Loans on Real Estate Construction and Land $21,171 9.61% $20,271 7.02% $63,170 12.53% $62,719 11.87% Development 1-4 Family 46,664 21.19 54,813 18.98 10
Slide 29: Loans and Deposits by Market
Loans and Deposits by Market Loan Overview Dollar values in millions Operations Financial Data as of, Market Commenced 12/31/2012 12/31/2013 3/31/2014 Baton Rouge June, 2006 $133.6 $176.3 $195.7 New Orleans December, 2012 $36.5 $101.5 $110.8 Hammond May, 2013 -- $66.3 $56.1 Lafayette July, 2013 -- $
Slide 30: Per Share Growth
Per Share Growth TBV / Share $14.00 +4% $13.24 $12.83 +5% $13.50 $11.79 +8% $12.68 $12.00 $10.88 $11.46 +3% +5% $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 2009 2010 2011 2012 2013 2013Q1 2014Q1 Diluted EPS $0.90 +14% $0.81 $0.80 $0.71 $0.70 +51% $0.60 $0.50 +9% $0.47 $0.43 $0.40 $0.30 +105% $0.21 $0.20 $0
Slide 31: 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