Investar Holding Corporation · NASDAQ:ISTR
Investar — Investor Presentation (September 2019)
29 slides from Investar's investor presentation, Sep 19, 2019
Slide 1: Investar Holding Corporation
= Sy INVESTAR _ HOLDING CORPORATION Exhibit 99.1 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 things, www.investarbank.com future events and financial performance. T
Slide 3: Company Profile as of June 30, 2019
COMPANY PROFILE AS OF JUNE 30, 2019 Market Data Q2 Financial Highlights Shares Outstanding 9,937,752 Assets $2.0 billion Market Cap $237.0 million Net Loans $1.5 billion Price per Share $23.85 Deposits $1.6 billion Dividend Yield 0.91% Tangible Equity(1) $179.1 million Price/ Tangible Book Value 132
Slide 4: 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 5: 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 6: Investar Timeline
INVESTAR TIMELINE 2018 Opened additional branch in our Baton Rouge market 2019 2014 Acquired Completed Mainland Bank initial public $1,997 offering 2012 Entered the New $1,786 Orleans market $1,623 2006 $1,159 Chartered with $1,032 an initial capitalization $879 of $10.1 million $635 $375 $279 $209
Slide 7: Investar Snapshot
INVESTAR SNAPSHOT Company overview Financial highlights As of and for the Year Ended (dollars in millions) • Chartered as a de novo commercial bank in June 2006 by John J. 2016 2017 2018 Q2 2019 Balance Sheet D’Angelo, the current President and Chief Executive Officer Total Assets $ 1,159 $ 1,623 $
Slide 8: 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 9: 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 10: Opportunistic Acquisitions Announced
OPPORTUNISTIC ACQUISITIONS ANNOUNCED Investar Holding Corporation (24) Bank of York (2) HTH Branch Acquisition (2) HTH branches in Alice and Victoria, Texas Bank of York, York, Alabama • Announced: August 2019 • Announced: July 2019 • Target closing date in Q1 2020 • Target closing date in Q4 2019 •
Slide 11: Total Assets
Total Assets (in millions) 81 1,997 1,786 1,623 1,159 1,032 2015 2016 2017 2018 Q2 2019 Assets Held for Sale *Represents the compounded annual growth rate for the five years ended December 31, 2018 11
Slide 12: Total Loans
TotalTotal Loans (in millions) 10.2% 11.3% 40.9% 19.9%* 81 1,543 1,401 1,259 893 745 2015 2016 2017 2018 Q2 2019 Loans Held for Sale * Growth % excludes Loans HFS 12
Slide 13: Loan Composition
LOAN COMPOSITION 2017 2018 Q2 2019 Increase/(Decrease) (dollars in thousands) Amount % Amount % Amount % Amount % Mortgage loans on real estate Construction and land development $ 157,667 12.5% $ 157,946 11.3% $ 167,232 10.8% $ 9,286 5.9% 1-4 Family 276,922 22.0 287,137 20.5 305,512 19.8 18,375 6.4
Slide 14: Loan Composition
LOAN COMPOSITION June 30, 2019 Consumer 2% Construction & land development C&I 11% 18% CRE 44% Residential/Farmland 25% Total Loans: $1.5 billion YTD Yield on loans: 5.28% 50% of CRE is owner-occupied 14
Slide 15: Loan Composition: Business Lending Portfolio
LOAN COMPOSITION Business Lending Portfolio1 Health Care and Construction Social Assistance 7% 14% Other Industries less than 5% 18% Retail Trade 13% Real Estate and Rental and Leasing 16% Wholesale Trade Professional, Scientific, & 13% Technical 11% Manufacturing 8% Total Business Lending Portfolio
Slide 16: Credit Metrics
CREDIT METRICS NPAs / Total Loans + OREO 2.00% 1.33% 0.97% 1.00% 0.84% 0.79% 0.77% 0.67% 0.68% 0.60% 0.42% 0.47% 0.00% 2015 2016 2017 2018 Q2 2019 Investar Peers¹ NCOs / Average Loans 0.20% 0.14% 0.12% 0.11% 0.10% 0.10% 0.08% 0.08% 0.07% 0.07% 0.05% 0.01% 0.00% 2015 2016 2017 2018 Q2 2019 Investar P
Slide 17: Disciplined Lending
DISCIPLINED LENDING Reserves / Total Loans 1.00% At June 30, 2019: 0.82% 0.79% • Reserves / Total Loans: 0.64% 0.80% 0.67% 0.63% 0.64% 0.60% 0.40% 2015 2016 2017 2018 Q2 2019 Reserves / NPLs Provision Expense / NCOs 600% 6.0x 5.1x 500% 5.0x 3.9x 400% 356% 4.0x 300% 3.0x 2.6x 254% 2.2x 214% 1.8x 200%
Slide 18: Deposit Composition and Growth
DEPOSIT COMPOSITION AND GROWTH Deposit Composition ¹ ($1.6 billion) Noninterest-bearing demand deposits 19% CDs 41% Interest-bearing demand deposits 22% Savings Money market 7% 11% Cost of interest-bearing deposits: 1.46% Target: 20% of total deposits are noninterest-bearing Growth in noninterest-be
Slide 19: Deposit Composition and Growth
DEPOSIT COMPOSITION AND GROWTH Total Deposits $1,600 $1,552 $1,400 $1,362 $1,200 $1,225 $1,000 $908 $800 TotalDeposits ($ millions) $737 $600 $400 $200 2015 2016 2017 2018 Q2 2019 *Represents the compounded annual growth rate for the five years ended December 31, 2018 19
Slide 20: Financial Highlights
FINANCIAL HIGHLIGHTS Amounts in thousands, except share data Year Ended December 31, 2016 2017 2018 Q2 2019 Financial Highlights Total Assets $ 1,158,960 $ 1,622,734 $ 1,786,469 $ 1,996,641 Gross Loans 893,846 1,258,779 1,400,825 1,543,308 Total Deposits 907,787 1,225,237 1,361,731 1,552,218 Total S
Slide 21: Performance Metrics
PERFORMANCE METRICS Net Interest Margin 4.00% 3.61% 3.61% 3.59% 3.00% 3.32% 3.39% Margin(%) 2.00% Interest Net 1.00% 0.00% 2015 2016 2017 2018 Q2 2019 Core Return on Average Assets 1.20% 1.00% 1 0.95% 0.98% 0.80% 0.76% 0.60% 0.65% 0.69% Core ROAA (%) ROAA Core 0.40% 0.20% 0.00% 2015 2016 2017 2018 Q
Slide 22: Performance Metrics
PERFORMANCE METRICS Expense Ratios 100.0% 4.00% 2.97% 1 90.0% 3.00% 2.48% 2.41% 2.43% 2.37% 80.0% 2.00% 70.0% Avg. Assets Assets Avg. (%) Core Efficiency Ratio Efficiency Ratio Core (%) 68.9% 67.6% 66.2% 65.0% 1.00% Noninterest / Expense 60.0% 63.8% 50.0% 0.00% 2015 2016 2017 2018 Q2 2019 December 3
Slide 23: Profitability
PROFITABILITY Net Income and Diluted Earnings Per Share $6,000 $0.41 $0.48 $0.50 $0.39 $0.40 $0.34 $5,000 $0.30 $4,934 $4,000 $4,047 $3,917 $0.10 perShare (Thousands) $3,820 $3,000 $3,337 Income -$0.10 Net Net $2,000 Diluted Diluted Earnings -$0.30 $1,000 $0 -$0.50 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2
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 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 an
Slide 27: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES December 31, Dollar values in thousands except per share amounts 2015 2016 2017 2018 Q2 2019 Net interest income (x) $ 31,458 $ 34,739 $ 42,517 $ 57,370 $ 16,331 Provision for loan losses 1,865 2,079 1,540 2,570 369 Adjusted net interest income after provision for loan lo
Slide 28: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Dollar values in thousands except per share amounts Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Net interest income (a) $ 14,320 $ 14,385 $ 14,807 $ 15,156 $ 16,331 Provision for loan losses 567 785 593 265 369 Net interest income after provision for loan losses 13,753 13,600
Slide 29: Income Statement
INCOME STATEMENT December 31, (dollars in thousands, except share data) 2015 2016 2017 2018 Q2 2019 INTEREST INCOME Interest and fees on loans $ 35,076 $ 39,380 $ 47,863 $ 66,750 $ 20,233 Interest on investment securities 2,189 3,565 5,055 6,608 1,923 Other interest income 75 207 428 533 232 TOTAL I
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