Investar Holding Corporation · NASDAQ:ISTR
Investar — Investor Presentation (August 2018)
28 slides from Investar's investor presentation, Aug 14, 2018
Slide 1: Investar Holding Corp August 2018
Exhibit 99.1 NASDAQ: ISTR August 2018 1
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: Company Profile as of June 30, 2018
COMPANY PROFILE AS OF JUNE 30, 2018 Market Data Financial Highlights Shares Outstanding 9,581,034 Assets $1.7 billion Market Cap $264.9 million Net Loans $1.3 billion Price per Share $27.65 Deposits $1.2 billion Dividend Yield (YTD) 0.56% Tangible Equity(1) $157.3 million Price/ Tangible Book Value
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 March 2017 Completed public offering of 1.6 million July 2013 shares Entered Lafayette Issued $18.6 million October 2011 market by opening a in subordinated Acquired South de novo branch notes Louisiana Business Bank May 2013 Entered the 2Q 2011 Hammond market Opened two through th
Slide 7: 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. 2015 2016 2017 D’Angelo, the current President and Chief Executive Officer Balance Sheet Total Assets $1,032 $1,159 $1,623 • Completed initial public
Slide 8: Attractive Markets
ATTRACTIVE MARKETS • Baton Rouge • Louisiana’s second largest market by deposits and the state capital, which includes major industrial, medical, research, motion picture, and growing technology centers • Hammond • Commercial hub of a large agricultural segment of Louisiana, bedroom community of New
Slide 9: Opportunistic Acquisitions Completed
OPPORTUNISTIC ACQUISITIONS COMPLETED Branch map Whole bank acquisitions • Four whole bank transactions completed since 2011 ISTR (12) • Processes and infrastructure established to analyze selective opportunities going forward Citizens Bancshares, Inc. (3) South Louisiana Business Bank BOJ Bancshares
Slide 10: Total Assets
Total Assets (in millions) *Represents the compounded annual growth rate for the five years ended December 31, 2017 10
Slide 11: Total Loans
TotalTotal LoansLoans (in millions) 3.3% 40.9% 19.9%* 19.7%* * Growth % excludes Loans HFS 11
Slide 12: Loan Composition
LOAN COMPOSITION 2016 2017 Q2 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% $ 165,395 12.7% $ 7,728 4.9% 1-4 Family 177,205 19.8 276,922 22.0 280,335 21.6 3,413 1.2 Mu
Slide 13: Loan Composition June 30, 2018
LOAN COMPOSITION June 30, 2018 Total Loans: $1.3 billion Yield on loans: 5.08% 50% of CRE is owner-occupied 13
Slide 14: Loan Composition: Business Lending Portfolio
LOAN COMPOSITION Business Lending Portfolio1 Total Business Lending Portfolio1: $432.9 million (1) Business lending portfolio includes owner-occupied CRE and C&I loans as of June 30, 2018 14
Slide 15: 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. 15
Slide 16: Disciplined Lending
DISCIPLINED LENDING Reserves / Total Loans¹ At June 30, 2018: • Reserves / Total Loans¹: 0.76% Reserves / NPLs2 Provision Expense / NCOs (1) Total loans excludes loans held for sale, if applicable, allowance for loan losses, and loans acquired in 2017 (2) Nonperforming loans exclude loans acquired i
Slide 17: Deposit Composition and Growth
DEPOSIT COMPOSITION AND GROWTH Deposit Composition ¹ ($1.2 billion) Cost of interest-bearing deposits: 0.94% Target: 20% of total deposits are noninterest-bearing Growth in noninterest-bearing deposits • Treasury Management YTD 2018: 2.8% • Small Business Banking 2017: 99.8% • Focus on Relationship
Slide 18: Deposit Composition and Growth: Total Deposits
DEPOSIT COMPOSITION AND GROWTH Total Deposits *Represents the compounded annual growth rate for the five years ended December 31, 2017 20
Slide 19: Financial Highlights
FINANCIAL HIGHLIGHTS Amounts in thousands, except share data Year Ended December 31, 2018 YTD 2017 2016 2015 Financial Highlights Total Assets $1,697,471 $1,622,734 $1,158,960 $1,031,555 Gross Loans(1) $1,300,311 $1,258,779 $893,846 $825,950 Total Deposits $1,230,930 $1,225,237 $907,787 $737,406 Tot
Slide 20: 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. 20
Slide 21: Performance Metrics: Expense Ratios
PERFORMANCE METRICS Expense Ratios 1 Avg. (%) Assets Avg. Core Efficiency (%) Ratio Core Efficiency Noninterest Expense / Noninterest December 31, June 30, 2014 2015 2016 2017 2018 Employees 179 165 152 258 269 Locations 11 11 10 20 20 (1) Non-GAAP financial measure. See non-GAAP financial measures
Slide 22: Profitability
PROFITABILITY Net Income and Diluted Earnings Per Share perShare (Thousands) Income Net Net DilutedEarnings Core Diluted Earnings Per Share1 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 $0.22 $0.29 $0.34 $0.40 $0.40 (1) Non-GAAP financial measure. See non-GAAP financial measures slides. 22
Slide 23: 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 24: Appendix
APPENDIX 24
Slide 25: 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 26: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES December 31, June 30, 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 $ 28,178 Provision for loan losses 1,628 1,865 2,079 1,540 1,192 Adjusted net interest income after provision for
Slide 27: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES Dollar values in thousands except per share amounts Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Net interest income 9,302 11,538 12,817 13,858 14,320 Provision for loan losses 375 420 395 625 567 Net interest income after provision for loan losses 8,927 11,118 12,422 13,233 1
Slide 28: Income Statement
INCOME STATEMENT December 31, June 30, (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 $ 31,849 Interest on investment securities 1,339 2,189 3,565 5,055 3,103 Other interest income 50 75 207 428 235 TO
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