Investar Holding Corporation · NASDAQ:ISTR
Investar — Q1 2025 Earnings Presentation
34 slides from Investar's earnings presentation, 2025
Slide 1: Q1 2025 Investor Presentation
NASDAQ: ISTR Q1 2025 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 Corporation 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 serv
Slide 4: Execution of Strategic Initiatives – 1st Quarter 2025
Execution of Strategic Initiatives – 1st Quarter 2025 Balance Sheet Optimization and Capital ▪ We are continuing to focus on consistent, quality earnings through the optimization and right-sizing of the balance sheet. As a result of the right-sizing of our balance sheet, total loans decreased $18.5
Slide 5: Financial Overview – 1st Quarter 2025
Financial Overview – 1st Quarter 2025 Highlights 1st Quarter Results Balance Sheet (in millions) ▪ Net interest margin improved to 2.87% for the 1st quarter of 2025 compared to 2.65% for the 4th Assets $ 2,730 quarter of 2024. Net Loans $ 2,080 ▪ Return on average assets increased to 0.94% for the 1
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 7.1% TBV / Share 1 GROWTH CAGR2 Q1 2025 includes 2022 – 2025Q1 the impact of ($4.37) per share of AOCL $22.00 $21.40 $20.31 $20.00 $18.92 $18.00 $17.43 TBV per Share1 ($) $16.00 $14.00 $12.00 $10.00 2022 2023 2024 2025Q1 TBV/Share 1 Non-GAAP
Slide 9: Dividend History
Dividend History $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- 2014 1 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 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 2025 dividend of $0.105 9
Slide 10: Recent GAAP Earnings Performance
Recent GAAP Earnings Performance Net Income ($000) Earnings Per Share (Diluted) $6,107 $6,293 $0.61 $0.63 $5,381 $0.54 $4,707 $0.48 $4,057 $0.41 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 ROAA (%) Net Interest Margin (%) 0.94 0.88 2.87 0.77 2.59 2.62 2.67 2.65 0.68 0.59 20
Slide 11: Recent Core Earnings Performance
Recent Core Earnings Performance Core Earnings ($000)1 Core Earnings Per Share (Diluted) 1 $6,463 $6,354 $0.65 $0.64 $4,273 $4,444 $0.43 $0.45 $3,567 $0.36 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 Core ROAA (%) 1 Core Efficiency Ratio (%) 1 0.93 0.95 78.81 80.24 79.33 79
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. 3.39% ▪ During 1st quarter of 2025 we repurchased 34,992 shares at 2.25% an average price of $18.33. ▪ Purchas
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 $2.7 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 2025
Investment Portfolio – 1st Quarter 2025 Commercial Available for Sale Mortgage-backed (Dollars in thousands) Book Value Gain (Loss) Fair Value Securities 19% U.S. Governmental Securities $ 15,590 $ (217) $ 15,373 State and Political Subdivisions 17,428 (2,021) 15,407 Residential Mortgage-backed Corp
Slide 15: Loan Portfolio – 1st Quarter 2025
Loan Portfolio – 1st Quarter 2025 Consumer 0.5% ▪ Consistent with our strategy to optimize the balance sheet, total loans decreased $18.5 million, or 0.9%, to $2.11 billion at March 31, 2025 compared Commercial & Construction & to $2.13 billion at December 31, 2024. Industrial Development 24.2% 7.1%
Slide 16: CRE Portfolio Overview
CRE Portfolio Overview Farmland Multifamily 1% 10% Portfolio Characteristics Owner-occupied March 31, 2025 43% % of Total Portfolio 49.5% Owner-Occupied as % of CRE Portfolio 43.2% $1.0B Nonowner- Nonowner-Occupied Office as a % of Total Portfolio 4.5% occupied Average Loan Size $1.0M 46% Owner-Occu
Slide 17: C&I Portfolio Overview
C&I Portfolio Overview By Collateral Type By Industry Transportation & Attorney Cases Warehousing 10% 14% Other 9% Finance & Insurance Professional Unsecured 42% (Scientific & Tech) Accounts Receivable 3% 13% 45% $418M Equipment $418M 8% Other Cash/Brokerage 22% Secured 11% Marine Construction 14% 9
Slide 18: Construction & Development Portfolio Overview
Construction & Development Portfolio Overview 1-4 Family Development/Builder Lots 11% Commercial Land & Construction 50% $149M 1-4 Family Construction - Builder 25% Lot/Raw Land - Consumer 2% Multifamily 12% Portfolio Characteristics March 31, 2025 % of Total Portfolio 7.1% Average Loan Size $579K 1
Slide 19: Consumer Portfolio Overview
Consumer Portfolio Overview Unsecured 13% Miscellaneous 1% Auto 29% $10M CD/Savings Secured 45% Recreational 12% Portfolio Characteristics March 31, 2025 % 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 20: Allowance for Credit Losses
Allowance for Credit Losses Allowance for Credit Losses / Total Loans (%) 1.38 1.26 1.25 1.16 1.11 2021 2022 2023 2024 2025Q1 For the three For the year ended months ended (Dollars in thousands) 12/31/2021 12/31/2022 12/31/2023 12/31/2024 3/31/2025 Allowance for Credit Losses Allowance for Credit Lo
Slide 21: Asset Quality Trends
Asset Quality Trends Nonperforming Assets ($000s) NPAs / Assets (%) $14,043 0.52 $11,754 0.43 $9,897 $8,860 0.36 $8,337 0.32 0.30 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 2024Q1 2024Q2 2024Q3 2024Q4 2025Q1 Net Charge-offs / Avg. Loans (%) Reserves / NPLs (%) 0.04 0.01 682.0 0.00 576.4 515.4 (0.02) 473.3 3
Slide 22: Deposit Portfolio – 1st Quarter 2025
Deposit Portfolio – 1st Quarter 2025 ▪ Total deposits increased $1.4 million, or 0.1%, to $2.35 billion at Money Market March 31, 2025, compared to $2.35 billion at December 31, 2024. 10.2% Total deposits, excluding $47.3 million of brokered demand Interest-bearing Savings deposits, increased $48.7
Slide 23: Non-Interest Expense
Non-Interest Expense $2,753,807 $2,815,155 $2,722,812 $2,729,902 $2,513,203 $2,321,181 $63,062 $63,032 $62,820 $64,952 $64,952 $62,192 $60,865 $62,353 $62,630 $61,761 $57,131 $55,480 2 2020 2021 2022 2023 2024 YTD2025 Non-interest expense (GAAP) Core Non-interest expense 1 Total Assets 1 Non-GAAP fi
Slide 24: Financial Profile
Financial Profile As of December 31, For the three months ended (Dollars in thousands, except per share data) 2020 2021 2022 2023 2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 Balance Sheet Total Assets $ 2,321,181 $ 2,513,203 $ 2,753,807 $ 2,815,155 $ 2,722,812 $ 2,787,578 $ 2,802,573 $ 2,722,812 $
Slide 25: Appendix
APPENDIX
Slide 26: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of December 31, As of the three months ended (Dollars in thousands, except per share data) 2020 2021 2022 2023 2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 Tangible common equity: Total stockholders' equity $ 243,284 $ 242,598 $ 215,782 $ 226,768 $ 241,296 $ 230,196 $ 245
Slide 27: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the three months ended (Dollars in thousands) 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 Net Income $ 2,781 $ 3,538 $ 4,707 $ 4,057 $ 5,381 $ 6,107 $ 6,293 Plus: Provision for Credit Losses (34) 486 (1,419) (415) (945) (701) (3,596
Slide 28: 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 6/30/2024 9/30/2024 12/31/2024 3/31/2025 Interest on Deposits $ 6,221 $ 9,534 $ 11,733 $ 14,584 $ 14,845 $ 14,865 $ 15,729 $ 16,071 $ 14,640 Average Interest-Beari
Slide 29: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the three months ended (Dollars in thousands) 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 Net interest income $ 17,216 $ 17,198 $ 17,856 $ 17,483 $ 18,345 1 Provision for credit losses (1,419) (415) (945) (701) (3,596) 1 Net interest income after provis
Slide 30: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the three months ended (Dollars in thousands, except per share data) 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3/31/2025 14 Core basic earnings per common share $ 0.44 $ 0.36 $ 0.45 $ 0.66 $ 0.65 Diluted earnings per common share (GAAP) 0.48 0.41 0.54 0.61 0.63
Slide 31: Footnotes to non-GAAP reconciliation
1 Provision for credit losses, net interest income after provision for credit losses, core earnings before noninterest expense, core noninterest expense, core earnings before income tax expense and core earnings include a $3.3 million recovery of loans previously charged off due to a property insura
Slide 32: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) YTD 2025 (Dollars in thousands) 2020 2021 2022 2023 2024 2025 Annualized Total noninterest expense $ 57,131 $ 63,062 $ 60,865 $ 62,630 $ 63,032 $ 16,238 $ 64,952 Severance (289) (181) (632) (123) (4) - Loan purchase expense - - - (95) - - Acquisition expense (1,06
Slide 33: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the three months ended March 31, 2025 December 31, 2024 Interest Interest Average Income/ Average Income/ (Dollars in thousands) Balance Expense Yield/ Rate Balance Expense Yield/ Rate Interest-earning assets: Loans $ 2,108,904 $ 30,552 5.88% $ 2,129,388 $ 31,
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