Investar Holding Corporation · NASDAQ:ISTR
Investar — Sandler O'Neill East Coast Financial Services Conference 2016
24 slides from Investar's conference presentation, Nov 17, 2016
Slide 1: Sandler O'Neill East Coast Financial Services Conference
NASDAQ: ISTR Sandler O’Neill East Coast Financial Services Conference November 17, 2016 Exhibit 99.1
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 things, future events and financial performance. The Company generally
Slide 3: Company Profile as of September 30, 2016
COMPANY PROFILE AS OF SEPTEMBER 30, 2016
Slide 4: Senior Management
SENIOR MANAGEMENT John J. D’Angelo, President & CEO Christopher L. Hufft, Chief Financial Officer Founding President and Chief Executive Officer New Orleans native; graduate of Louisiana State University Prior to founding Investar, Mr. D’Angelo was president and director of Aegis Lending Corporation
Slide 5: Accomplishments to Date
ACCOMPLISHMENTS TO DATE Key Areas Staffed with Experienced Bankers Very Strong Growth Complemented by Two Successful Acquisitions High Quality Organic Loan Portfolio Nimble Institution Able to Shift Resources as Customers’ Demands Change Firmly Established in Four Key Louisiana Markets Since commenc
Slide 6: Franchise Overview: Franchise History
FRANCHISE OVERVIEW Franchise History June 2006 – Chartered with an initial capitalization of $10.1 million 2Q 2011 – Opened two additional branches in Baton Rouge Market May 2013 – Entered the Hammond market through the acquisition of First Community Bank October 1, 2011 – Acquired South Louisiana B
Slide 7: Franchise Overview: Branch Map
FRANCHISE OVERVIEW Branch Map Current Total Assets: $1.2 billion 10 full-service branches in the Baton Rouge, New Orleans, Hammond, and Lafayette markets 155 employees at September 30, 2016 Two new branches opening in 2017 Institutional ownership 43% Insider ownership 10% 5-year CAGRs¹ Assets – 37.6
Slide 8: Current Strategy
CURRENT STRATEGY Management Continue to add experienced bankers in new and existing markets Market Southern Louisiana focus with complementary new market expansion Growth Leverage existing infrastructure in four markets Limited de novo branching Opportunistic, disciplined acquisition strategy Focus
Slide 9: Opportunistic Acquirer
OPPORTUNISTIC ACQUIRER Two whole bank transactions since 2011 Processes and infrastructure established to analyze selective opportunities going forward Announced: June, 2011 Closed: October 2011 1 Branch in Prairieville, LA $31.5 million in gross loans¹ $38.6 million in deposits¹ Announced: January,
Slide 10: Total Assets
Si 1: INVESTAR r INVESTAR Total Assets thousands) 103 879 2012 2013 2014 2015 Q3 2016 m Assets Held for Sale
Slide 11: Total Loans
Total Loans Total Loans (in thousands) * Growth % excludes Loans HFS +74.6% +23.5% +19.7% +13.6%
Slide 12: Loan Composition
= LOAN COMPOSITION am Gy INVESTAR December 31, September 30, Increase/ (Decrease) 2014 2015 2016 (dollars in thousands) Amount ‘Amount Amount Amount % Mortgage loans on real estate Construction and land development $ 71,350 114% $ 81,863 11.0% $ 92,355 10.9% $ 10,492 12.8% 14 Family 137,519 221 156,
Slide 13: Loan Composition: September 30, 2016
LOAN COMPOSITION September 30, 2016 Business Lending Portfolio² Total Loans¹: $846.8 million Yield on loans: 4.57% 47% of CRE is owner-occupied Total loans includes gross loans less loans held for sale Business lending portfolio includes owner-occupied CRE and C&I loans as of September 30, 2016 Tota
Slide 14: Credit Metrics
CREDIT METRICS NPAs / Total Loans + OREO NCOs / Average Loans Peers¹ Investar Peers¹ Investar 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.
Slide 15: Disciplined Lending
Total loans excludes loans held for sale and allowance for loan losses Includes $30.9 million of loans from previous acquisitions that were marked-to-market as of September 30, 2016 Reserves/NPLs for December 31, 2012 was 5,136% Investar recorded net recoveries in FY 2012 DISCIPLINED LENDING Reserve
Slide 16: Deposit Composition and Growth
DEPOSIT COMPOSITION AND GROWTH Deposit Composition ¹ ($907.0 million) Total Deposits 2012 - Present CAGR2: 32% Target: 20% of total deposits are noninterest-bearing Treasury Management Small Business Banking Focus on Relationship Banking As of September 30, 2016 Based on the deposit balances for eac
Slide 17: Financial Highlights
FINANCIAL HIGHLIGHTS Gross loans includes loans held for sale (HFS) Efficiency ratio represents noninterest expense divided by the sum of net interest income (before provision for loan losses) and noninterest income.
Slide 18: Performance Metrics: Net Interest Margin and ROAA
PERFORMANCE METRICS Net Interest Margin Net Interest Margin (%) Return on average assets was adjusted for the bargain purchase gain recognized in 2013, and the net effect of the Company’s investment in a tax credit entity recognized in 2014. Return on Average Assets ROAA (%)1
Slide 19: Performance Metrics: Expense Ratios
PERFORMANCE METRICS Efficiency ratio represents noninterest expenses divided by the sum of net interest income (before provision for loan losses) and noninterest income. The efficiency ratio was adjusted for the impairment related to the Company’s investment in a tax credit entity for the year ended
Slide 20: Profitability
PROFITABILITY Net Income and Diluted Earnings Per Share Net Income (Thousands) Earnings per Share
Slide 21: Investment Highlights
INVESTMENT HIGHLIGHTS Strong balance sheet and earnings growth Meaningful organic opportunities exist in market Profitable with room to grow into current infrastructure Clean asset quality Experienced management team Experienced, disciplined acquirer Committed level of insider ownership Management a
Slide 22: Appendix
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Slide 23: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 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 other investors u
Slide 24: Income Statement
= INCOME STATEMENT INVESTAR (Gollorsin thou Year Ended December 31, Nine Months Ended 2012 2013 2014 2015 Q3 2016 @3 2015 INTEREST INCOME. Interest and fees on loans $ 13968 $ 21,686 $ 29979 $ 35076 $ 29,277 $ 25,856 Interest on investment securities 58: 736 339 2,189 2,667 1558 Other interest incor
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