Investar Holding Corporation · NASDAQ:ISTR
Investar — Raymond James Conference September 2017
28 slides from Investar's conference presentation, Sep 6, 2017
Slide 1: Raymond James Conference September 2017
1 NASDAQ: ISTR Raymond James Conference September 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 June 30, 2017
COMPANY PROFILE AS OF JUNE 30, 2017 3 Shares Outstanding 8,815,119 Assets $1.2 billion Market Cap $201.9 million Net Loans $925.6 million Price per Share $22.90 Deposits $894.8 million Dividend Yield (YTD) 0.28% Tangible Equity $147.6 million Price/ Tangible Book Value 136.8% TE/TA 12.07% 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 $19 TCE / TA 12.31% 13.11% 12.13% Total Capital Ratio 20.01% 21.22% 19.71% Ea
Slide 12: Total Assets
12 Total Assets (in thousands) *Represents the 4-year compounded annual growth rate for the four years ended December 31, 2016.
Slide 13: Total Loans
13 Total Loans (in thousands) * Growth % excludes Loans HFS 23.5%* 19.7%* 19.9%* 4.4%
Slide 14: Loan Composition
LOAN COMPOSITION 14 (dollars in thousands) Amount % Amount % Amount % Amount % Mortgage loans on real estate Construction and land development 81,863$ 11.0% 90,737$ 10.2% 109,627$ 11.8% 18,890$ 20.8% 1-4 Family 156,300 21.0 177,205 19.8 177,979 19.1 774 0.4 Multifamily 29,694 4.0 42,759 4.8 46,109 4
Slide 15: Loan Composition Pro Forma with Citizens
LOAN COMPOSITION June 30, 2017 Pro Forma with Citizens1 15 Total Loans: $933 million Yield on loans: 4.59% 45% of CRE is owner-occupied (1) Pro forma information includes June 30, 2017 balances of Citizens Bancshares, Inc., which was acquired on July 1, 2017 Construction & land development 12% CRE 4
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 June 30, 2017 Total Business Lending Portfolio1: $284.1 million Retail Trade 12% Other Services (except public administration) 12% Health Care and Social Assistance 29% Const
Slide 17: Credit Metrics
CREDIT METRICS 17 NPAs / Total Loans + OREO NCOs / Average Loans Peers¹Investar Peers¹Investar (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 availabl
Slide 18: Disciplined Lending
(1) Total loans excludes loans held for sale, if applicable, and allowance for loan losses DISCIPLINED LENDING 18 At June 30, 2017: • Reserves / Total Loans¹: 0.78% Reserves / Total Loans¹ Reserves / NPLs Provision Expense / NCOs 0.67% 0.74% 0.82% 0.79% 0.78% 0.40% 0.60% 0.80% 1.00% 2013 2014 2015 2
Slide 19: Deposit Composition and Growth
DEPOSIT COMPOSITION AND GROWTH Deposit Composition ¹ ($895 million) Target: 20% of total deposits are noninterest-bearing • Treasury Management • Small Business Banking • Focus on Relationship Banking • Strategic Acquisitions (1) As of June 30, 2017 (2) Pro forma information includes June 30, 2017 b
Slide 20: Deposit Composition and Growth: Total Deposits
DEPOSIT COMPOSITION AND GROWTH Total Deposits1 (1) Balance at Q2 2017 includes deposit balance of Citizens Bancshares, Inc., which was acquired on July 1, 2017 (2) Based on the deposit balances for each of the five years ended December 31, 2016 16 CAGR2: 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 Amounts in thousands, except sha
Slide 22: Performance Metrics: Net Interest Margin and ROAA
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 4
Slide 23: Performance Metrics: Efficiency and Expense Ratios
PERFORMANCE METRICS 23 (1) 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 yea
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 ing s p e r Sh ar e $2,005 $2,037 $1,848 $1,864 $1,923 $0.28 $0.29 $0.26 $0.26 $0.22 -$0.80 -$0.60 -$0.40 -$0.20 $0.00 $0.20 $0.40 $0.60 $0.80 $1.00 $500 $1,500 $2,500 $3,500 $4,500 $5,500 $6,500 Q2 2
Slide 25: Investment Opportunity
INVESTMENT OPPORTUNITY 25 Management1 Market2 Growth3 Asset Quality4 Profitability5 • 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 expansion
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: Income Statement
INCOME STATEMENT 28 (dollars in thousands, except share data) Six Months Ended 2013 2014 2015 2016 Q2 2017 Q2 2016 INTEREST INCOME Interest and fees on loans $ 21,686 $ 29,979 $ 35,076 $ 39,380 $ 20,563 $ 19,266 Interest on investment securities 756 1,339 2,189 3,565 2,228 1,747 Other interest incom
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