Investar Holding Corporation · NASDAQ:ISTR
Investar — Janney Community Bank Forum 2023
29 slides from Investar's conference presentation, Sep 18, 2023
Slide 1: Janney Community Bank Forum
NASDAQ: ISTR Janney Community Bank Forum September 18 – 19, 2023 As of June 30, 2023 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: 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 4: Financial Overview – 2nd Quarter 2023
Financial Overview – 2nd Quarter 2023 2nd Quarter Results Highlights Balance Sheet (in millions) ▪ Recorded quarterly net income of $6.5 million in the 2nd quarter. Assets $ 2,754 ▪ Core return on average assets1 improved to 0.97% for the 2nd quarter compared to 0.76% for the 1st Net Loans $ 2,055 q
Slide 5: 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 6: 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 7: Creating Shareholder Value
Creating Shareholder Value Tangible Book Value Per Share1 $24.00 6.2% TBV / Share (Ex. AOCI) $22.87 GROWTH CAGR2 $22.37 $22.00 2018 – 2023Q2 $19.89 $19.72 $20.00 $19.20 $19.08 $18.79 $18.62 TBV per Share1 ($) $17.87 $18.00 $17.46 $17.43 $17.13 $16.00 $14.00 $12.00 $10.00 2018 2019 2020 2021 2022 Q2
Slide 8: Dividend History
Dividend History $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- 1 2 2014 2015 2016 2017 2018 2019 2020 2021 2022 Q2 2023 1 Annualized based on 3rd quarter 2014 dividend of $0.0068 plus 4th quarter 2014 dividend of $0.007 2 Annualized based on 2nd quarter 2023 dividend of $0.10 8
Slide 9: Recent GAAP Earnings Performance
Recent GAAP Earnings Performance Net Income ($000) Earnings Per Share (Diluted) $9,404 $8,898 $0.92 $0.88 $7,304 $0.73 $6,547 $0.67 $3,812 $0.38 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 ROAA (%) Net Interest Margin (%) 1.48 3.70 3.77 3.50 1.32 3.13 1.11 2.82 0.96 0.57 20
Slide 10: Recent Core Earnings Performance
Recent Core Earnings Performance Core Earnings ($000)1 Core Earnings Per Share (Diluted) 1 $7,119 $0.71 $6,616 $0.67 $6,328 $6,219 $0.62 $0.62 $5,123 $0.51 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 Core ROAA (%) 1 Core Efficiency Ratio (%) 1 1.08 74.21 69.89 0.99 0.97 0.9
Slide 11: 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 12: Investment Portfolio – 2nd Quarter Update
Investment Portfolio – 2nd Quarter Update Available-for-Sale Commercial Mortgage-backed (Dollars in thousands) Book Value Gain (Loss) Fair Value Securities 19% U.S. Governmental Securities $ 27,889 $ (594) $ 27,295 State and Political Subdivisions 19,949 (2,314) 17,635 Corporate Bonds 33,740 (4,304)
Slide 13: Loan Portfolio – 2nd Quarter Update
Loan Portfolio – 2nd Quarter Update Consumer & Other 0.6% ▪ Loan yield improved to 5.44% for the 2nd quarter compared to Commercial & 5.27% for the 1st quarter. Industrial Construction & 19.2% Development 9.4% ▪ Total loans decreased $24.2 million, or 1.1%, to $2.08 billion at June 30, 2023, compare
Slide 14: CRE Portfolio Overview
CRE Portfolio Overview Farmland Healthcare 1% 12% Warehouse 6% Professional, Manufacturing & Wholesale Trade Other 5% 35% Real Estate, Rental $1.1B & Leasing 7% Multi-family 8% Office Retail 10% 16% Portfolio Characteristics June 30, 2023 % of Total Portfolio 50.9% Owner-Occupied as % of CRE Portfol
Slide 15: C&I Portfolio Overview
C&I Portfolio Overview By Collateral Type By Industry Unsecured Transportation & Attorney Cases Real Estate 10% Warehousing 13% 7% 18% Marine 16% Construction Other 14% Professional 14% (Scientific & Tech) 16% $308M $308M Cash/Brokerage Secured 13% Accounts Receivable 15% Inventory 2% Other Equipmen
Slide 16: Construction & Development Portfolio Overview
Construction & Development Portfolio Overview Multi-family 1% 1-4 Family Construction - Builder 26% Commercial Land and Construction 52% $198M 1-4 Family Construction - Consumer 7% Lot/Raw Land - Consumer 1-4 Family 3% Development/Builder Lots 11% Portfolio Characteristics June 30, 2023 % of Total P
Slide 17: Consumer Portfolio Overview
Consumer Portfolio Overview Miscellaneous Unsecured 1% 13% Auto 30% CD/Savings $12M Secured 39% Recreational 17% Portfolio Characteristics June 30, 2023 % of Total Portfolio 0.6% Average Loan Size $9K Note: Since exiting the indirect auto loan origination business at the end of 2015, the Bank has ex
Slide 18: Allowance for Credit Losses
Allowance for Credit Losses Allowance for Credit Losses / Total Loans (%) 1.44 1.11 1.16 1.09 0.63 2019Y 2020Y 2021Y 2022Y 2023Q2 For the Six For the Year Ended Months Ended (Dollars in thousands) 12/31/2019 12/31/2020 12/31/2021 12/31/2022 6/30/2023 Allowance for Credit Losses Allowance for Credit
Slide 19: Asset Quality Trends
Asset Quality Trends Nonperforming Assets ($000s) NPAs / Assets (%) $20,425 0.79 $15,440 1.13 0.58 $12,018 0.44 $11,131 0.79 0.40 0.58 $6,361 0.23 0.44 0.23 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2022Q2 2022Q3 2022Q4 2023Q1 2023Q2 2022Q1 2022Q2 2022Q3 2022Q4 2023Q1 Net Charge-offs / Avg. Loans (%) Reser
Slide 20: Deposit Portfolio
Deposit Portfolio Deposit Mix at June 30, 2023 ▪ Total deposits increased $35.2 million, or 1.6%, to $2.18 billion at June 30, 2023, compared to $2.15 billion at March Money Market 31, 2023. 7.3% Savings Interest- 5.8% bearing Demand ▪ Uninsured deposits were 34% of total deposits at June 30, 23.6%
Slide 21: Financial Profile
Financial Profile As of December 31, For the Three Months Ended (Dollars in thousands, except per share data) 2018 2019 2020 2021 2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Balance Sheet Total Assets $ 1,786,469 $ 2,148,916 $ 2,321,181 $ 2,513,203 $ 2,753,807 $ 2,661,694 $ 2,753,807 $ 2,751,669 $
Slide 22: Appendix
APPENDIX
Slide 23: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of December 31, For the Three Months Ended (Dollars in thousands, except per share data) 2018 2019 2020 2021 2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Tangible common equity: Total stockholders' equity $ 182,262 $ 241,976 $ 243,284 $ 242,598 $ 215,782 $ 205,700 $ 215,7
Slide 24: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands) 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Net Income $ 6,936 $ 10,103 $ 9,404 $ 7,304 $ 8,898 $ 3,812 $ 6,547 Plus: Provision for Credit Losses 658 (449) 941 1,162 1,268 388 (2,840) Pl
Slide 25: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands) 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Interest on Deposits $ 2,114 $ 1,854 $ 1,217 $ 976 $ 907 $ 1,315 $ 3,052 $ 6,221 $ 9,534 Average Interest-Bearing Deposits
Slide 26: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Net interest income $ 21,978 $ 23,467 $ 22,519 $ 20,173 $ 18,387 Provision for credit losses 941 1,162 1,268 388 (2,840) Net interest income after provision for cr
Slide 27: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands, except per share data) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Core basic earnings per common share $ 0.62 $ 0.71 $ 0.63 $ 0.52 $ 0.67 Diluted earnings per common share (GAAP) 0.92 0.73 0.88 0.38 0.67 Lo
Slide 28: Footnotes to non-GAAP reconciliations
1 Adjustment to noninterest income recorded upon completion of the sale of the Alice and Victoria branches for remaining discount on loans sold. 2 Income from insurance proceeds represents nontaxable income related to an insurance policy for the former Chief Financial Officer of Investar and the Ban
Slide 29: Slide 29