Investar Holding Corporation · NASDAQ:ISTR
Investar — Q1 2024 Earnings Presentation
35 slides from Investar's earnings presentation, 2024
Slide 1: Q1 2024 Investor Presentation
NASDAQ: ISTR Q1 2024 Investor Presentation 1
Slide 2: Cautionary Statements
Cautionary Statements 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 identifies for
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: Execution of Strategic Initiatives – 1st Quarter 2024
Execution of Strategic Initiatives – 1st Quarter 2024 Balance Sheet Optimization and Capital ▪ We are continuing to focus on consistent, quality earnings through the optimization and right-sizing of the balance sheet. ▪ Through the right-sizing of our balance sheet, we recognized the benefit of a $1
Slide 5: Financial Overview – 1st Quarter 2024
Financial Overview – 1st Quarter 2024 Highlights 1st Quarter Results ▪ Recorded quarterly net income of $4.7 million in the 1st quarter of 2024. Balance Sheet (in millions) Assets $ 2,788 ▪ Return on average assets increased to 0.68% for the 1st quarter of 2024 compared to 0.50% for the Net Loans $
Slide 6: 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 our organization as a bank holding company in 2013. He has also served as the Bank’s President and Chief Executive Officer since its organizati
Slide 7: 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 8: Creating Shareholder Value
Creating Shareholder Value Tangible Book Value Per Share1 5.1% TBV / Share (Ex. AOCI) 1 $24.00 GROWTH CAGR2 $23.55 $23.90 2019 – 2024Q1 $22.37 $22.00 $19.89 $19.72 $20.00 $19.20 $19.08 $18.79 $18.92 $18.90 $18.62 TBV per Share1 ($) $18.00 $17.43 $16.00 $14.00 $12.00 $10.00 2019 2020 2021 2022 2023 2
Slide 9: 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 2023 2024 1 Annualized based on 3rd quarter 2014 dividend of $0.0068 plus 4th quarter 2014 dividend of $0.007 2 Annualized based on 1st quarter 2024 dividend of $0.10 9
Slide 10: Recent GAAP Earnings Performance
Recent GAAP Earnings Performance Net Income ($000) Earnings Per Share (Diluted) $6,547 $0.67 $4,707 $0.48 $3,812 $3,538 $0.38 $0.36 $2,781 $0.28 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 ROAA (%) Net Interest Margin (%) 3.13 0.96 2.82 2.72 2.66 2.59 0.68 0.57 0.50 0.40 20
Slide 11: Recent Core Earnings Performance
Recent Core Earnings Performance Core Earnings ($000)1 Core Earnings Per Share (Diluted) 1 $6,616 $0.67 $5,123 $4,273 $0.51 $3,833 $0.43 $3,259 $0.39 $0.33 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 Core ROAA (%) 1 Core Efficiency Ratio (%) 1 79.98 78.81 0.97 74.21 74.85 6
Slide 12: Returns to Shareholders
Returns to Shareholders Shares Repurchased (%)1 5.89% ▪ In July 2023, the Board of Directors authorized an additional 5.02% 350,000 shares for repurchase under our stock repurchase program. 3.79% 3.39% ▪ Repurchased 10,525 shares during the 1st quarter at an 2.25% average price of $16.20. ▪ YTD purc
Slide 13: 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 14: Investment Portfolio – 1st Quarter 2024
Investment Portfolio – 1st Quarter 2024 Commercial Available-for-Sale Mortgage-backed (Dollars in thousands) Book Value Gain (Loss) Fair Value Securities 19% U.S. Governmental Securities $ 19,039 $ (390) $ 18,649 State and Political Subdivisions 17,853 (2,003) 15,850 Residential Mortgage-backed Corp
Slide 15: Investment Portfolio – Principal Cash Flows
Investment Portfolio – Principal Cash Flows ~$71 Million Maturing by Q4 ‘25 $14.3 16% 14% $11.2 12% $10.8 $10.2 $9.9 $9.5 8% 6% $5.1 3% 1% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 Q4 2025 Cashflow ($ in millions) Cumulative Principal Return (%) 15
Slide 16: Loan Portfolio – 1st Quarter 2024
Loan Portfolio – 1st Quarter 2024 Consumer 0.5% ▪ Consistent with our strategy to optimize the balance sheet, total loans decreased $30.0 million, or 1.4%, to $2.18 billion at March 31, 2024 compared to $2.21 billion at December 31, 2023. Commercial & Industrial Construction & 23.8% Development 8.0%
Slide 17: CRE Portfolio Overview
CRE Portfolio Overview Farmland Healthcare 1% 9% Warehouse 6% Wholesale Trade 5% Professional, Manufacturing & Other 44% Multi-family $1.1B 10% Office 9% Retail 16% Portfolio Characteristics March 31, 2024 % of Total Portfolio 48.7% Owner-Occupied as % of CRE Portfolio 42.7% Nonowner-Occupied Office
Slide 18: C&I Portfolio Overview
C&I Portfolio Overview By Collateral Type By Industry Attorney Cases Transportation & 10% Warehousing 13% Other 11% Professional (Scientific & Tech) Accounts Receivable Finance & Insurance 12% 43% Unsecured 43% 5% $417M $417M Equipment 11% Other 22% Cash/Brokerage Secured Marine 8% Manufacturing 12%
Slide 19: Construction & Development Portfolio Overview
Construction & Development Portfolio Overview 1-4 Family Development/Builder Lots 13% 1-4 Family Construction - Consumer 4% Commercial Land & Construction 47% $174M 1-4 Family Construction - Builder 32% Lot/Raw Land - Multifamily Consumer 1% 3% Portfolio Characteristics March 31, 2024 % of Total Por
Slide 20: Consumer Portfolio Overview
Consumer Portfolio Overview Unsecured 12% Miscellaneous 1% Auto 27% CD/Savings Secured $12M 47% Recreational 13% Portfolio Characteristics March 31, 2024 % of Total Portfolio 0.5% Average Loan Size $11K Note: Since exiting the indirect auto loan origination business at the end of 2015, the Bank has
Slide 21: Allowance for Credit Losses
Allowance for Credit Losses Allowance for Credit Losses / Total Loans (%) 1.38 1.34 1.16 1.09 1.11 2020Y 2021Y 2022Y 2023Y 2024Q1 For the Three For the Year Ended Months Ended (Dollars in thousands) 12/31/2020 12/31/2021 12/31/2022 12/31/2023 3/31/2024 Allowance for Credit Losses Allowance for Credi
Slide 22: Asset Quality Trends
Asset Quality Trends Nonperforming Assets ($000s) NPAs / Assets (%) $11,131 $10,013 $10,207 0.40 $9,897 0.36 0.36 0.36 $6,361 0.23 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 2023Q1 2023Q2 2023Q3 2023Q4 2024Q1 Net Charge-offs / Avg. Loans (%) Reserves / NPLs (%) 0.01 0.00 0.00 535.6 534.1 529.3 515.4 429.6 (
Slide 23: Deposit Portfolio - 1st Quarter 2024
Deposit Portfolio - 1st Quarter 2024 Money ▪ Total deposits decreased $47.9 million, or 2.1%, to $2.21 billion at Market March 31, 2024, compared to $2.26 billion at December 31, 2023. 7.7% Savings Interest- 6.0% bearing ▪ Beginning in the 4th quarter of 2022, management utilized Demand 22.8% broker
Slide 24: Non-Interest Expense
Non-Interest Expense $2,753,807 $2,815,155 $2,787,706 $2,513,203 $2,321,181 $63,062 $62,192 $62,353 $62,630 $61,761 $60,865 $61,184 $61,112 $2,148,916 $57,131 $55,480 $48,168 $46,079 2 2019 2020 2021 2022 2023 YTD2024 Non-interest expense (GAAP) Core Non-interest expense 1 Total Assets 1 Non-GAAP fi
Slide 25: Financial Profile
Financial Profile As of December 31, For the Three Months Ended (Dollars in thousands, except per share data) 2019 2020 2021 2022 2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Balance Sheet Total Assets $ 2,148,916 $ 2,321,181 $ 2,513,203 $ 2,753,807 $ 2,815,155 $ 2,753,674 $ 2,789,533 $ 2,815,155 $
Slide 26: Appendix
APPENDIX
Slide 27: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of December 31, For the Three Months Ended (Dollars in thousands, except per share data) 2019 2020 2021 2022 2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Tangible common equity: Total stockholders' equity $ 241,976 $ 243,284 $ 242,598 $ 215,782 $ 226,768 $ 218,357 $ 208,7
Slide 28: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands) 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Net Income $ 7,304 $ 8,898 $ 3,812 $ 6,547 $ 2,781 $ 3,538 $ 4,707 Plus: Provision for Credit Losses 1,162 1,268 388 (2,840) (34) 486 (1,419)
Slide 29: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands) 3/31/2022 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Interest on Deposits $ 976 $ 907 $ 1,315 $ 3,052 $ 6,221 $ 9,534 $ 11,733 $ 14,584 $ 14,845 Average Interest-Bearing Depos
Slide 30: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands) 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Net interest income $ 20,173 $ 18,387 $ 17,469 $ 18,491 $ 17,216 Provision for credit losses 388 (2,840) (34) 486 (1,419) Net interest income after provision for c
Slide 31: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands, except per share data) 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Core basic earnings per common share $ 0.52 $ 0.67 $ 0.33 $ 0.39 $ 0.44 Diluted earnings per common share (GAAP) 0.38 0.67 0.28 0.36 0.48 Lo
Slide 32: Footnotes to non-GAAP reconciliation
1 Adjustment to noninterest income recorded upon completion of the sale of the Alice and Victoria branches for remaining discount on loans sold. 2 Change in net asset value of other investments represents unrealized gains or losses on Investar’s investments in Small Business Investment Companies and
Slide 33: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) YTD 2024 (Dollars in thousands) 2019 2020 2021 2022 2023 YTD 2024 Annualized Total noninterest expense $ 48,168 $ 57,131 $ 63,062 $ 60,865 $ 62,630 $ 15,296 $ 61,184 Severance - (289) (181) (632) (123) - Loan purchase expense - - - - (95) - Acquisition expense (2,
Slide 34: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the three months ended March 31, 2024 December 31, 2023 Interest Interest Average Income/ Average Income/ (Dollars in thousands) Balance Expense Yield/ Rate Balance Expense Yield/ Rate Interest-earning assets: Loans $ 2,195,496 $ 32,135 5.89% $ 2,214,916 $ 33,
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