Investar Holding Corporation · NASDAQ:ISTR
Investar — Hovde Bank Tour (February 2016)
24 slides from Investar's conference presentation, Feb 4, 2016
Slide 1: Hovde Bank Tour
NASDAQ: ISTR Hovde Bank Tour February 4, 2016 Exhibit 99.1
Slide 2: Forward-looking Statements
Forward-looking Statements This presentation may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the Company’s current views with respect to, among other things, future events and financial performance. The Company generally
Slide 3: Company Profile as of December 31, 2015
Company Profile as of December 31, 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: $1.0 billion 11 full-service branches in the Baton Rouge, New Orleans, Hammond, and Lafayette markets 168 employees at December 31, 2015 One new branch opening in 2016 Institutional ownership 41% Insider ownership 9% 5-year CAGRs¹ Assets – 37.6% Lo
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 INVESTAR Loan Composition Mortgage loans on real estate Construction and landdevelopment $ 20271 70% $ 63,170 125% $ 71,350 11.4% $81,863 110% $ 10513 147% 2-4 Family S413 190 104,685 208 137,519 221 156,300 210 $18,781 137 Multifamily 1,750 06 = 14,286 28 (17,458 28 29.688 40 $12
Slide 13: Loan Composition December 31, 2015
Loan Composition December 31, 2015 Business Lending Portfolio² Total Loans¹: $745.4 million Yield on loans: 4.61% 48% 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 December 31, 2015 Total
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: 0.82% Reserves / (Total Loans¹ – Acquired): 0.87% (Reserves + FV Marks) / Total Loans¹,²: 0.91% 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 ($737 million) Total Deposits 2010 - Present CAGR: 32% Target: 20% of total deposits are noninterest-bearing Treasury Management Small Business Banking Focus on Relationship Banking As of December 31, 2015 Cost of funds of interest-bearing deposit
Slide 17: Financial Highlights
Financial Highlights Gross loans includes loans held for sale (HFS) Efficiency ratio is a non-GAAP financial measure
Slide 18: Performance Metrics
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
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 Diluted Earnings Per Share Net Income (Thousands) Earnings per Share +31%
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
= 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
a oy INVESTAR a Income Statement (dollars in thousands, except share data) Year Ended December 31, 1012 201: 2010 2011 2014 2015 INTEREST INCOME Interest and fees on loans $ 9082 $ 10877 $ 13,968 $ 21686 $ 29,979 $ 35,076 Interest on investment securities 406 585 1,339 2,189 Other interest income Fr