Investar Holding Corporation · NASDAQ:ISTR
Investar — Q1 2025 Earnings Presentation
34 slides from Investar's earnings presentation, Apr 21, 2025
Slide 1: Q1 2025 Investor Presentation
INVESTAR NASDAQ: ISTR Q1 2025 Investor Presentation
Slide 2: Cautionary Statements
ber} SX Cautionary Statements This Ze" contsinsfonardlooking sitements win the meaning ofthe Pavate Secures Lisgaton Reform Act of 1995 hat refect Ivesta’scurent Wave wih espero, among oher figs, fire events and franc pedormance. investor geeralyidenties fovvard-ocking stents by terminology suchas “
Slide 3: Our Company
ber} Sx Our Company Investar Holding Corporation is the Bank Holding Company for Investar Bank Headquartered in Baton Rouge, LA Mission Founded in 2006 Investar isa dynamic full service community bank focused on relationships that create value and opportunities for our customers, employees, Full ser
Slide 4: Execution of Strategic Initiatives - 1st Quarter 2025
CF 2) 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-szing ofthe balance sheet. As a result ofthe right-sizng of our balance sheet, total ans decreased $18.5
Slide 5: Financial Overview - 1st Quarter 2025
Financial Overview - 1* Quarter 2025 ~ Net interest margin improved to 2.87% for the 1 quarter of 2025 compared to 2.65% for the 4" quarter of 2024. = Return on average assets increased to 0.94% for the 1 quarter of 2025 compared to 0.88% for the 4 quarter of 2024. Core return on average assets' inc
Slide 6: Executive Management
John J. D'Angelo, Presidentand Chief Executive Officer Mr. DAngelo has been the President and Chief Executive Officer of the Company since our organizaton as a bank holding company in 2013. He has also served as the Bank's President and Chief Executive Ofer since its organization in 2006. Prior to I
Slide 7: Corporate Culture
— U SW Corporate Culture a Integrity Neighborly Visionary Empowerment Star Service Team Focused Accountable Responsive INVESTAR INVESTAR IS a dynamic full service community bank focused on relationships that create value and opportunities for our customers, employees, shareholders and the community
Slide 8: Creating Shareholder Value
Creating Shareholder Value 7.1% TBV! Share! GROWTH CAGR? Qt 2025 includes 2022-20251 the impact of ($4.37) per share of AOCL 2.00 coi 20.00 $1892 eum $17.43 3 s1600 $14.00 $12.00 $10.00 2501 ian TNVESTAR' ‘terse inant measure; pase see spent fr atta cts 2 Abbreviation for Compound Annual Growth Rate
Slide 9: Dividend History
OF Dividend History ‘ool 2014! 20152018 «2017-2018. 2019-2020» 0212022 2028-2024 = 20252 TNVESTAR Atraized based on 2 quarter 2014 divcend of $0.0068 plus 4 quarter 2014 aver’ of $.007 ? Annualized based on 1 quarter 2025 dividend of $0.105
Slide 10: Recent GAAP Earnings Performance
Sr $4707 ] [SE ) Recent GAAP Earnings Performance Net Income ($000) Earnings Per Share (Diluted) $4,057 l 202402 I 202403, ROAA f ROA) tL 202401 INVESTAR 202402 202403, $6,107 202404 0.88 202504 094 202404 202504 1 oa 202401 202402 202403, 202404 202501 Net Interest Margin (%) 259 262 il 202401 2024
Slide 11: Recent Core Earnings Performance
= ; Sr Recent Core Earnings Performance Core Earnings ($000)' Core Earnings Per Share (Diluted) ' $6,463 $6,354 $0.65 $0.64 $4273 sales! $043 $0.45 ‘$3,567 $0.36 202401 202402 202403 202404 202501 202401 202402 202403 202404 202501 Core ROAA (%)' Core Efficiency Ratio (%)' 095 oe 78.81 80.24 79.33 ‘
Slide 12: Returns to Shareholders
= Sr Returns to Shareholders Shares Repurchased (%)' eed = In July 2023, the Board of Directors authorized an additional 5.02% 350,000 shares for repurchase under our stock repurchase program. Bis = During 1* quarter of 2025 we repurchased 34,992 shares at 225% an average price of $18.33 = Purchases
Slide 13: Continued Execution of Acquisition Strategy
>= ST) Continued Execution of Acquisition Strategy Investar Has Completed 7 Whole Bank Acquisitions and 1 Branch Transaction 2011 otal Assets: South LA 201 7 erate Business Bank (LA) BOJ Bancshares (LA) 2019 201 3 Bank of York (AL) First Community Bank (LA) 2017 Citizens Bancshares (LA) 2021 Cheaha
Slide 14: Investment Portfolio - 1st Quarter 2025
Investment Portfolio - 1% Quarter 2025 XN ZB avaiable for Sale ihecoebeted ousands) Book Value Gain (Loss) __ Fair Value Secures 1996 U.S. Governmental Securties S$ 15590 $ (2i7) $ 15,373 ‘tate and Poltcal Subdivisions 17,428 2,021) 15,407 Residential Morigage-backed Corporate Bonds 30,610 2.076) 28
Slide 15: Loan Portfolio
= 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 to $2.13 billion at December 31, 2024. Loan yield increased to 5.88% for the 1% quarter of 2025 compared to 5.87% for the 4" quarter of 2024. Exclus
Slide 16: CRE Portfolio Overview
Sy CRE Portfolio Overview za Farntand Mulfamly 1% 10% Portolio Characteristics Owner-oonupied March 31, 2025 23% % of Teal Polio. 49.5% ‘Ouner-Occupied as % of CRE Potoio 432% $1.0B Nonowner- Nonowner-Cccupid Office as 8% of Total Proto 45% conpied Average Loan Size $1.0M 48% Owner-Occupied Nonowner
Slide 17: C&I Portfolio Overview
Sor) C&l Portfolio Overview By Collateral Type By Industry Tonspatsin & Asoey Cases Wastes is 1% Ober % Farce & nsuerce Pression i 12% (Scientific & Tech) ‘Accounts Receivable a 13% 5% $418M $418M ter Caueiceset D% Sia oy al Portfolio Chara¢ tics: March 31, 2025 % of Total Portfolio 19.8% ‘Average L
Slide 18: Construction & Development Portfolio Overview
Mi = ij . . Sr Construction & Development Portfolio Overview 1-4 Family Development/Buider Las 11% 14 Family Constucton - Bulder B% LoyRaw Land - ‘Consumer % Mulitanly 12% Portfolio Characteristics March 31, 2025 °% of Total Portfolio 71% ‘Average Loan Size $579k INVESTAR .
Slide 19: Consumer Portfolio Overview
M= Ser) Consumer Portfolio Overview Unsecured 13% Miscelaneous Auto CD/Savings Secured 45% Recreational 12% Portfolio Characteristics March 31, 2025 % of Total Portfolio. ‘Average Loan Size INVEST: Note: Since exiting the indirect auto loan angination business at the end of 2016, the Bank has experi
Slide 20: Allowance for Credit Losses
S INVESTAR LA) Allowance for Credit Losses Allowance for Credi osses / Total Loans (%) 138 1.28 125 a 116 2024 2022 2023 2024 202501 For the three months ended [Dollars in thousands) 12/31/2021 12/31/2022 12/31/2023 1213112024 3/31/2025 Allowance for Credit Losses ‘Alowance for Credt Losses - Beginn
Slide 21: Asset Quality Trends
Sr *y Asset Quality Trends Vy Nonperforming Assets ($000s) NPAs / Assets (%) ‘$14,043 ‘$11,754 $9,897 | $8337 Bese at 202401 202402 m2403 2nmaas a=" 202402 202403 2244 Net Charge-offs / Avg. Loans (%) Reserves / NPLs | sReserves/NPLs(%) oo ie a1 sd 5154 (002) 4733 (0.16) 2401 202402 202403 202404 20
Slide 22: Deposit Portfolio - 1st Quarter 2025
Ser Ss) Deposit Portfolio - 1st Quarter 2025 = Total deposits increased $1.4 million, or 0.1%, to $2.35 billion at March 31, 2025, compared to $2.35 billion at December 31, 2024. Total deposits, excluding $47.3 million of brokered demand deposits, increased $487 million, or 2.1%, to $2.35 billion at
Slide 23: Non-Interest Expense
Non-Interest Expense $2,753,807 $2,815,185 $2,513,208 — 2a Ee emus ; . | $57,131 2020 20 202 wa a0 vyrp2025 * TSINon-inerestexpense (GAAP) mM Core Non interestexpense? —®=Total Assets Non-GAAP financial measure; please see appendix for additional details TINVESTAR sce sie orier i mek rear 2
Slide 24: Selected Financial Data
(llr in thousands, excep per share data) Balance Sheet Total Poses Total Loans Total Deposts LoansDeposts Ccaptal TCAITAY Total Capital Tier Capt Ter | Leverage Capit Proftabilty Measures (Net terest Margin Non terest Income / Average Asses ‘Non terest Expense / erage Assets Efidency Rao ROM ROAE Di
Slide 25: Appendix
APPENDIX
Slide 26: Non-GAAP Reconciliation
>. S_ yw Non-GAAP Reconciliation NZ) |@ollars in thousands, except per share dat 2020 As of the three months ended 2021 2022 128 39/2025 Tangible common equity: Total stockholders’ equity, ‘Adjustments: Goodwill (Other intangibles Tangible common equity ‘Common shares oustanding Book value per commo
Slide 27: Non-GAAP Reconciliation (continued)
Ser) Non-GAAP Reconciliation (continued) For the three months ended Plus: Provision for Credit Losses @) 498 (1.419) (418) (048) (701) (3598) Plus: Income Tax Expense 585 782 41,380 829 784 4,161 1421 |Pre-Tax, Pre-Provision Net come $ 3332 $ 4806 $ 4668 $§ 4471 $ 520 $ 6567 $ 4418 INVESTAR a
Slide 28: Deposit Interest Rate
biereston Deposits S$ 621 $ 95M $ 11733 $ 145M $ 1485 $§ 14865 $ 157 $ OT! $ 14640 ‘Average bterest Bearing Deposis 1557665 1,685,506 = 17O7MB 1824318 «= 1,805 5691770985 1813775 1.881297 © 1BRT.TIS ‘Average Norintrest Beaing Deposit 50508, 490123 462525 45488 428135, 4B 4 433,126 4433 430080 ‘Avera
Slide 29: Core Earnings Reconciliation
For the three months ended atlas: in thousands) 072024 9730/2024 2112024 ‘Net interest income $ 17,216 $ 17,198 $ 17,856 $ 17,483, $ 18,345 Provision for cred losses * (1419) 616) 45) 1) 6.586) ‘Net interest income after provision for credit losses ‘ $ 18,635 $ 17,613 $ 18,801 $ 18,184 $ m9 Noninier
Slide 30: Core Earnings Per Share Reconciliation
Dollars in thousands, except per share data) ‘Core basic earnings per common share "* Dited earnings per common share (GAAP) Loss (gain) on call or sale of investment securties, net (Gain)loss on sale or dispostion of fbed assets, net (Gain) oss on sale of other realestate owned, net ‘Change in the
Slide 31: Footnotes to Non-GAAP Reconciliation
> Sa ny * Provision for creit losses, net interest income after provision for credit losses, core earnings before noninterest expense, core noninterest expense, core eamnings before income tax expense and core eamings include 2 $3.3 milion recovery of loans previously charged off due to @ property i
Slide 32: Non-GAAP Reconciliation (continued)
Ser) y) Non-GAAP Reconciliation (continued) YI 212% (Dollars in thousands) 2020 2021 a2 2023 2024 2025 Annualized ‘Tad noninterest expense S$ 57131 $ 630 $ 60865 $ 62600 $ 6302 $ 16238 $ 64,952 Severance 9) (1st) (632) (123) @) 3 Lom purchase expense Z = : 5) : = oqustion expense (1.082) e448) - : :
Slide 33: Adjusted Net Interest Margin Reconciliation
Dollars in thousands) Interest-eaming assets: Loans Adjustments Interest recoveries Accretion Adjusted loans Seaurties: Taxable Taxexempt Interest-bearing balances with banks ‘Adjusted interesteaming assets Total interest-bearing labities Net interest incomelnet interest margin ‘Adjusted net interes
Slide 34: Slide 34