Investar Holding Corporation · NASDAQ:ISTR
Investar — Hovde Conference November 2017
30 slides from Investar's conference presentation, Nov 6, 2017
Slide 1: Hovde Conference November 2017
1 NASDAQ: ISTR Hovde Conference November 2017 Exhibit 99.1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS 2 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 generall
Slide 3: Company Profile as of September 30, 2017
COMPANY PROFILE AS OF SEPTEMBER 30, 2017 3 Shares Outstanding 8,704,562 Assets $1.5 billion Market Cap $209.8 million Net Loans $1.1 billion Price per Share $24.10 Deposits $1.1 billion Dividend Yield (YTD) 0.35% Tangible Equity $139.6 million Price/ Tangible Book Value 150.2% TE/TA 9.54% Price/LTM
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 Corpo
Slide 5: Accomplishments Since IPO
ACCOMPLISHMENTS SINCE IPO 5 Since IPO in June 2014, Investar has experienced significant progress : Completed Largest Acquisition Since Inception on July 1, 2017 and Announced an Additional Acquisition for 2017 Shifted from Consumer Loans to C&I and CRE Focus Maintained High Quality Organic Loan Gro
Slide 6: Investar Timeline
INVESTAR TIMELINE 6 $30 $66 $143 $174 $209 $279 $375 $635 $879 $1,032 $1,159 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Total Assets ($M) March 2017 Completed public offering of 1.6 million shares Issued $18.6 million in subordinated notes July 2017 Completed the acquisition of Citi
Slide 7: Investar Snapshot
7 INVESTAR SNAPSHOT As of and for the Year Ended 2014 2015 2016 Balance Sheet Total Assets $879 $1,032 $1,159 Gross Loans $726 $826 $893 Total Deposits $628 $737 $908 Total Equity $103 $109 $113 Profitability ROAA 0.73% 0.77% 0.71% Net Interest Margin 3.85% 3.61% 3.32% Efficiency Ratio¹ 74.90% 68.72
Slide 8: Attractive Markets
8 Large Banks 52.6% Small & Mid-size Banks 47.0% ISTR 0.3% Large Banks 22.3% Small & Mid- size Banks 76.6% ISTR 1.1% Large Banks 20.1% Small & Mid- size Banks 76.5% ISTR 3.4% Large Banks 63.3% Small & Mid-size Banks 33.1% ISTR 3.7% ATTRACTIVE MARKETS Louisiana Deposit Market Share Market Share Oppor
Slide 9: Opportunistic Acquisitions Completed
OPPORTUNISTIC ACQUISITIONS COMPLETED 9 • Three whole bank transactions completed 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 loans and $38.
Slide 10: Recently Completed Acquisition of Citizens Bancshares, Inc.
10 RECENTLY COMPLETED ACQUISITION OF CITIZENS BANCSHARES, INC. • Citizens is a historically profitable institution, with LTM ROAA of approximately 0.90% • Citizens offers ISTR an attractive deposit base, with noninterest-bearing deposits of approximately 20% of total deposits and cost of funds of 0.
Slide 11: Recently Announced Acquisition of BOJ Bancshares, Inc.
For the Year Ended 2014 2015 2016 Balance Sheet Total Assets $140 $137 $155 Net Loans 100 97 106 Deposits 122 119 130 Noninterest-Bearing Deposits 22% 23% 28% Gross Loans / Deposits 83% 82% 82% Capital Total Equity $17 $18 $19 TCE / TA 12.31% 13.11% 12.13% Total Capital Ratio 20.01% 21.22% 19.71% Ea
Slide 12: Total Assets
12 Total Assets (in thousands) *Represents the 4-year compounded annual growth rate for the four years ended December 31, 2016 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 Q 3 2 0 1 7 635 879 1,032 1,159 1,476 5 103 81 Assets Held for Sale
Slide 13: Total Loans
13 Total Loans oan (in millions) * Growth % excludes Loans HFS 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 Q 3 2 0 1 7 504 623 745 893 1,1115 103 81 Loans Held for Sale 23.5%* 19.7%* 19.9%* 24.3%
Slide 14: Loan Composition
LOAN COMPOSITION 14 (dollars in thousands) Amount % Amount % Amount % Amount % Mortgage loans on real estate Construction and land development 81,863$ 11.0% 90,737$ 10.2% 122,501$ 11.0% 31,764$ 35.0% 1-4 Family 156,300 21.0 177,205 19.8 252,003 22.7 74,798 42.2 Multifamily 29,694 4.0 42,759 4.8 50,7
Slide 15: Loan Composition
LOAN COMPOSITION September 30, 2017 15 Total Loans: $1.1 billion Yield on loans: 4.66% 47% of CRE is owner-occupied
Slide 16: Loan Composition: Business Lending Portfolio
LOAN COMPOSITION Business Lending Portfolio1 16 (1) Business lending portfolio includes owner-occupied CRE and C&I loans as of September 30, 2017 Total Business Lending Portfolio1: $342.6 million
Slide 17: Credit Metrics
CREDIT METRICS 17 NPAs / Total Loans + OREO NCOs / Average Loans Peers¹ Investar Peers¹ Investar (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; peer information not yet availa
Slide 18: Disciplined Lending
(1) Total loans excludes loans held for sale, if applicable, allowance for loan losses, and acquired loans DISCIPLINED LENDING 18 At September 30, 2017: • Reserves / Total Loans¹: 0.77% Reserves / Total Loans¹ Reserves / NPLs Provision Expense / NCOs
Slide 19: Deposit Composition and Growth
DEPOSIT COMPOSITION AND GROWTH Deposit Composition ¹ ($1.1 billion) Target: 20% of total deposits are noninterest-bearing • Treasury Management • Small Business Banking • Focus on Relationship Banking • Strategic Acquisitions (1) As of September 30, 2017 Cost of funds of interest-bearing deposits: 0
Slide 20: Deposit Composition and Growth
DEPOSIT COMPOSITION AND GROWTH Total Deposits1 (1) Based on the deposit balances for each of the five years ended December 31, 2016 20 CAGR1: 31.8%
Slide 21: Financial Highlights
FINANCIAL HIGHLIGHTS 21 (1) Gross loans includes loans held for sale (HFS) (2) Efficiency ratio represents noninterest expense divided by the sum of net interest income (before provision for loan losses) and noninterest income. Amounts in thousands, except share data Nine Months Ended September 30,
Slide 22: Performance Metrics
PERFORMANCE METRICS 22 Net Interest Margin N e t In te re st M ar gi n ( % ) (1) 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 R O A A ( % )1
Slide 23: Performance Metrics
PERFORMANCE METRICS 23 Expense Ratios C o re E ff ic ie n cy R atio ( % ) N o n in te re st E xp e n se / A vg . A ssets ( % ) September 30, 2013 2014 2015 2016 2017 Employees 167 179 165 152 227 Locations 10 11 11 10 15 December 31,
Slide 24: Profitability
PROFITABILITY 24 Net Income and Diluted Earnings Per Share N e t Inc o m e (T h o u sa n d s) Ea rn in gs p e r Sh ar e Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 $0.27 $0.26 $0.27 $0.22 $0.29 Core Earnings Per Share
Slide 25: Investment Opportunity
INVESTMENT OPPORTUNITY 25 Management 1 Market 2 Growth 3 Asset Quality 4 Profitability 5 • Legacy team with proven industry expertise tied to the Southern Louisiana region • Continue to add experienced bankers in new and existing markets • Southern Louisiana focus with complementary new market expan
Slide 26: Appendix
26 APPENDIX
Slide 27: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 27 Tangible book value per share and the ratio of tangible equity to tangible assets are not financial measures recognized under GAAP and, therefore, are considered non-GAAP financial measures. Our management, banking regulators, many financial analysts and other investor
Slide 28: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 28 Dollar values in thousands except per share amounts 12/31/2013 12/31/2014 12/31/2015 12/31/2016 9/30/2017 Net interest income (x) 19,012$ 26,694$ 31,458$ 34,739$ 29,700$ Provision for loan losses 1,026 1,628 1,865 2,079 1,145 Adjusted net interest income after provisio
Slide 29: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES 29 Dollar values in thousands except per share amounts Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Net interest income 8,753 8,781 8,860 9,302 11,538 Provision for loan losses 450 375 350 375 420 Net interest income after provision for loan losses 8,303 8,406 8,510 8,927 11,1
Slide 30: Income Statement
INCOME STATEMENT 30 (dollars in thousands, except share data) Nine Months Ended 2013 2014 2015 2016 Q3 2017 Q3 2016 INTEREST INCOME Interest and fees on loans $ 21,686 $ 29,979 $ 35,076 $ 39,380 $ 33,456 $ 29,277 Interest on investment securities 756 1,339 2,189 3,565 3,627 2,667 Other interest inco