Investar Holding Corporation · NASDAQ:ISTR
Investar — Sandler O'Neill East Coast Financial Services Conference November 2015
24 slides from Investar's conference presentation, Nov 10, 2015
Slide 1: Sandler O'Neill East Coast Financial Services Conference November 2015
NASDAQ: ISTR Sandler O’Neill East Coast Financial Services Conference November 2015 Exhibit 99.1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation may include forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon current expectations and assumptions about our business that are subject to a variety of risks and u
Slide 3: Company Profile as of September 30, 2015
Company Profile as of September 30, 2015
Slide 4: Senior Management
Senior Management John J. D’Angelo, President & CEO Christopher L. Hufft, Chief Financial Officer Founding President and Chief Executive Officer New Orleans native; graduate of Louisiana State University Prior to founding Investar, Mr. D’Angelo was president and director of Aegis Lending Corporation
Slide 5: Accomplishments to Date
Accomplishments to Date Key Areas Staffed with Experienced Bankers Very Strong Growth Complemented by Two Successful Acquisitions High Quality Organic Loan Portfolio Nimble Institution Able to Shift Resources as Customers’ Demands Change Firmly Established in Four Key Louisiana Markets Since commenc
Slide 6: Franchise Overview: Franchise History
Franchise Overview Franchise History June 2006 – Chartered with an initial capitalization of $10.1 million 2Q 2011 – Opened two additional branches in Baton Rouge Market May 2013 – Entered the Hammond market through the acquisition of First Community Bank October 1, 2011 – Acquired South Louisiana B
Slide 7: Franchise Overview: Branch Map
Franchise Overview Branch Map Current Total Assets: $937.7 Million 11 full-service branches in the Baton Rouge, New Orleans, Hammond, and Lafayette markets 165 employees at September 30, 2015 One new branch opening in 2015 Institutional ownership 41% Insider ownership 9% 5-year CAGRs¹ Assets – 38.3%
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 strategy Focus
Slide 9: Opportunistic Acquirer
Opportunistic Acquirer Two whole bank transactions 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 loans¹ $38.6 million in deposits¹ Announced: January
Slide 10: Growth Has Been the Story: Total Assets
Growth Has Been the Story Total Assets +33% +76% +32% FCB Acquisition SLBB Acquisition Note: Gray shading denotes the marked value of acquired assets on date of the respective acquisitions of South Louisiana Bank (closed on October 1, 2011) and First Community Bank (closed on May 1, 2013). Percentag
Slide 11: Growth Has Been the Story: Gross Loans
Growth Has Been the Story Gross Loans +24% +39% +75% +31% FCB Acquisition SLBB Acquisition Note: Light blue shading denotes the marked value of acquired loans on date of the respective acquisitions of South Louisiana Bank (closed on October 1, 2011) and First Community Bank (closed on May 1, 2013).
Slide 12: Loan Composition
Loan Composition Loan Composition Amount % 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% 79,796 $ 11.2% 8,446 $ 11.8% 1-4 Family 54,813 19.0 104,685 20.8 137,519 22.1 154,277 21.7 $16,758 12.2 Multifami
Slide 13: Loan Composition: Business Lending Portfolio
Loan Composition September 30, 2015 Business Lending Portfolio² Total Loans¹: $710.6 million Yield on loans: 4.67% 51% of CRE is owner occupied Total loans includes gross loans less loans held for sale Business lending portfolio includes owner occupied CRE and C&I loans as of September 30, 2015 Tota
Slide 14: Credit Metrics
Credit Metrics NPAs / Total Loans + OREO NCOs / Average Loans Peers¹ Investar Peers¹ Investar 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.
Slide 15: Disciplined Lending
Disciplined Lending Reserves / Total Loans¹,²: 0.83% Reserves / (Total Loans¹ – Acquired): 0.88% (Reserves + FV Marks) / Total Loans¹,²: 0.93% Reserves / Total Loans¹,² Reserves / NPLs Provision Expense / NCOs NM 5 NM NM 3 4 Total loans excludes loans held for sale and allowance for loan losses Incl
Slide 16: Deposit Composition and Growth
Deposit Composition and Growth Deposit Composition ¹ ($730 million) Total Deposits 2010 - Present CAGR: 33% Target: 20% of total deposits are noninterest-bearing Treasury Management Small Business Banking Focus on Relationship Banking As of September 30, 2015 Cost of funds of interest-bearing deposi
Slide 17: Financial Highlights
Financial Highlights Gross loans includes loans held for sale (HFS) Efficiency ratio is a non-GAAP financial measure Amounts in thousands, except share data 2015 2014 2014 2013 Financial Highlights Total Assets $937,747 $784,597 $879,354 $634,946 Gross Loans (1) $766,214 $634,747 $726,186 $509,124 T
Slide 18: Performance Metrics: Net Interest Margin and ROAA
Performance Metrics Net Interest Margin Net Interest Margin (%) 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. Return on Average Assets ROAA (%)1
Slide 19: Performance Metrics: Expense Ratios
Performance Metrics Efficiency ratio is a non-GAAP financial measure. The efficiency ratio was adjusted for the impairment related to the Company’s investment in a tax credit entity for the year ended December 31, 2014 and for the bargain purchase gain recognized as a result of the acquisition First
Slide 20: Profitability
Profitability +70% +40% +34% +136% Net Income and Earnings Per Share Net Income (Thousands) Earnings per Share Net Income (Thousands) Earnings per Share
Slide 21: Investment Highlights
Investment Highlights Strong 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 insider ownership Management a
Slide 22: Appendix
ze” Appendix
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 (dollars in thousands, except share data) Three Months Ended 2010 2011 2012 2013 2014 Q3 2014 Q3 2015 INTEREST INCOME Interest and fees on loans $ 9,082 $ 10,877 $ 13,968 $ 21,686 $ 29,979 $ 7,801 $ 8,912 Interest on investment securities 611 406 585 756 1,339 367 550 Other interest
Investar Holding — Sandler O'Neill East Coast Financial Services Conference November 2015 on 6ix