Investar Holding Corporation · NASDAQ:ISTR
Investar — Investor Presentation (January 2019)
29 slides from Investar's investor presentation, Jan 31, 2019
Slide 1: Investar Holding Corporation
= INVESTAR @ HOLDING CORPORATION NASDAQ: ISTR
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 www.investarbank.com things, future events and financial performance. T
Slide 3: Additional Information for Investors and Shareholders
ADDITIONAL INFORMATION FOR INVESTORS AND SHAREHOLDERS The information contained herein does not constitute an offer to sell or a solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed acquisition of Mainland Bank, the Company has fil
Slide 4: Company Profile as of December 31, 2018
COMPANY PROFILE AS OF DECEMBER 31, 2018 Market Data Financial Highlights Shares Outstanding 9,484,219 Assets $1.8 billion Market Cap $235.2 million Net Loans $1.4 billion Price per Share $24.80 Deposits $1.4 billion Dividend Yield (YTD) 0.69% Tangible Equity(1) $162.5 million Price/ Tangible Book Va
Slide 5: 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 6: Accomplishments Since IPO
ACCOMPLISHMENTS SINCE IPO Since IPO in June 2014, Investar has experienced significant progress: Further Established in Four Key Louisiana Markets Shifted from Consumer Loans to C&I and CRE Focus Maintained High Quality Organic Loan Growth Transitioned from Transactional Banking to Relationship Bank
Slide 7: Investar Timeline
INVESTAR TIMELINE 2018 Opened additional branch in our Baton Rouge market 2014 Completed initial public offering 2012 Entered the New Orleans market 2006 Chartered with an initial capitalization of $10.1 million 2011 2013 2017 Acquired South Entered the Acquired Louisiana Lafayette market Citizens B
Slide 8: Investar Snapshot
INVESTAR SNAPSHOT Company overview Financial highlights As of and for the Year Ended • Chartered as a de novo commercial bank in June 2006 by John J. 2016 2017 2018 D’Angelo, the current President and Chief Executive Officer Balance Sheet Total Assets $1,159 $1,623 $1,786 • Completed initial public
Slide 9: Attractive Markets
ATTRACTIVE MARKETS • Baton Rouge MSA • Louisiana’s second largest market by deposits and the state capital, which includes major industrial, medical, research, motion picture, and growing technology centers • Hammond MSA • Commercial hub of a large agricultural segment of Louisiana, bedroom communit
Slide 10: Opportunistic Acquisitions Completed
OPPORTUNISTIC ACQUISITIONS COMPLETED Branch map South Louisiana Business Bank • Announced: June 2011 • Closed: October 2011 • 1 Branch in Prairieville, LA • $31.5 million in gross loans and $38.6 million in deposits¹ First Community Bank • Announced: January 2013 • Closed: May 2013 • 2 Branches – Ha
Slide 11: Total Assets
Total Assets (in millions) *Represents the compounded annual growth rate for the five years ended December 31, 2018 11
Slide 12: Total Loans
TotalTotal LoansLoans (in millions) 11.3% 40.9% 19.9%* 19.7%* * Growth % excludes Loans HFS 12
Slide 13: Loan Composition
LOAN COMPOSITION 2016 2017 2018 Increase/(Decrease) (dollars in thousands) Amount % Amount % Amount % Amount % Mortgage loans on real estate Construction and land development $ 90,737 10.2% $ 157,667 12.5% $ 157,946 11.3% $ 279 0.2% 1-4 Family 177,205 19.8 276,922 22.0 287,137 20.5 10,215 3.7 Multif
Slide 14: Loan Composition
LOAN COMPOSITION December 31, 2018 Total Loans: $1.4 billion Yield on loans: 5.11% 48% of CRE is owner-occupied 14
Slide 15: Loan Composition: Business Lending Portfolio
LOAN COMPOSITION Business Lending Portfolio1 Total Business Lending Portfolio1: $509.1 million (1) Business lending portfolio includes owner-occupied CRE and C&I loans as of December 31, 2018 15
Slide 16: Credit Metrics
CREDIT METRICS NPAs / Total Loans + OREO 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. 16
Slide 17: Disciplined Lending
DISCIPLINED LENDING Reserves / Total Loans At December 31, 2018: • Reserves / Total Loans¹: 0.67% Reserves / NPLs Provision Expense / NCOs 17
Slide 18: Deposit Composition and Growth
DEPOSIT COMPOSITION AND GROWTH Deposit Composition ¹ ($1.4 billion) Cost of interest-bearing deposits: 1.09% Target: 20% of total deposits are noninterest-bearing Growth in noninterest-bearing deposits • Treasury Management • Small Business Banking 2018: 0.4% • Focus on Relationship Banking 2017: 99
Slide 19: Deposit Composition and Growth
DEPOSIT COMPOSITION AND GROWTH Total Deposits *Represents the compounded annual growth rate for the five years ended December 31, 2018 20
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS Amounts in thousands, except share data Year Ended December 31, 2015 2016 2017 2018 Financial Highlights Total Assets $ 1,031,555 $ 1,158,960 $ 1,622,734 $ 1,786,469 Gross Loans(1) 825,950 893,846 1,258,779 1,400,825 Total Deposits 737,406 907,787 1,225,237 1,361,731 Total Stock
Slide 21: Performance Metrics
PERFORMANCE METRICS Net Interest Margin Margin(%) Interest Net Core Return on Average Assets 1 Core ROAA (%) ROAA Core (1) Non-GAAP financial measure. See non-GAAP financial measures slides. 21
Slide 22: Performance Metrics
PERFORMANCE METRICS Expense Ratios 1 Avg. (%) Assets Avg. Core Efficiency (%) Ratio Core Efficiency Noninterest Expense / Noninterest December 31, 2014 2015 2016 2017 2018 Employees 179 165 152 258 255 Locations 11 11 10 20 21 (1) Non-GAAP financial measure. See non-GAAP financial measures slides. 2
Slide 23: Profitability
PROFITABILITY Net Income and Diluted Earnings Per Share perShare (Thousands) Income Net Net DilutedEarnings Core Diluted Earnings Per Share1 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 $0.34 $0.40 $0.40 $0.41 $0.45 (1) Non-GAAP financial measure. See non-GAAP financial measures slides. 23
Slide 24: Investment Opportunity
INVESTMENT OPPORTUNITY 1 Management • Legacy team with proven industry expertise tied to the Southern Louisiana region • Continue to add experienced bankers in new and existing markets 2 Market • Southern Louisiana focus with complementary new market expansion 3 Growth • Leverage existing infrastruc
Slide 25: Appendix
# APPENDIX z 25
Slide 26: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Tangible equity, tangible book value per share, and the ratio of tangible equity to tangible assets are not financial measures recognized under GAAP and, therefore, are considered non-GAAP financial measures. Our management, banking regulators, many financial analysts and
Slide 27: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES December 31, Dollar values in thousands except per share amounts 2014 2015 2016 2017 2018 Net interest income (x) $ 26,694 $ 31,458 $ 34,739 $ 42,517 $ 57,370 Provision for loan losses 1,628 1,865 2,079 1,540 2,570 Adjusted net interest income after provision for loan los
Slide 28: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Dollar values in thousands except per share amounts Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Net interest income (a) $ 12,817 $ 13,858 $ 14,320 $ 14,385 $ 14,807 Provision for loan losses 395 625 567 785 593 Net interest income after provision for loan losses 12,422 13,233
Slide 29: Income Statement
INCOME STATEMENT December 31, (dollars in thousands, except share data) 2014 2015 2016 2017 2018 INTEREST INCOME Interest and fees on loans $ 29,979 $ 35,076 $ 39,380 $ 47,863 $ 66,750 Interest on investment securities 1,339 2,189 3,565 5,055 6,608 Other interest income 50 75 207 428 533 TOTAL INTER
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