Investar Holding Corporation · NASDAQ:ISTR
Investar — Q4 2024 Earnings Presentation
36 slides from Investar's earnings presentation, January 2025
Slide 1: Q4 2024 Investor Presentation
NASDAQ: ISTR Q4 2024 Investor Presentation 1
Slide 2: Cautionary Statements
Cautionary Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect Investar’s current views with respect to, among other things, future events and financial performance. Investar generally identifies for
Slide 3: Our Company
Our Company Investar Holding Corporation is the Bank Holding Company for Investar Bank ▪ Headquartered in Baton Rouge, LA Mission ▪ Founded in 2006 Investar is a dynamic full service community bank focused on relationships that create value and opportunities for our customers, employees, ▪ Full serv
Slide 4: 2024 Overview
2024 Overview Managing Through Volatility Balance Sheet Optimization ▪ Continued to execute on our pivot from a growth strategy to a focus on ▪ Variable-rate loans as a percentage of total loans was 32% at December 31, consistent, quality earnings and disciplined capital allocation. 2024 compared to
Slide 5: Execution of Strategic Initiatives – 4th Quarter 2024
Execution of Strategic Initiatives – 4th Quarter 2024 Balance Sheet Optimization and Capital ▪ We are continuing to focus on consistent, quality earnings through the optimization and right-sizing of the balance sheet. As a result of the right-sizing of our balance sheet, we recognized the benefit of
Slide 6: Financial Overview – 4th Quarter 2024
Financial Overview – 4th Quarter 2024 Highlights 4th Quarter Results ▪ We received BOLI death benefit proceeds totaling $5.5 million and recorded $3.1 million in Balance Sheet (in millions) nontaxable noninterest income from BOLI during the 4th quarter of 2024. Assets $ 2,723 ▪ Return on average ass
Slide 7: Leadership Team
Leadership Team John J. D’Angelo, President and Chief Executive Officer Mr. D’Angelo has been the President and Chief Executive Officer of the Company since our organization as a bank holding company in 2013. He has also served as the Bank’s President and Chief Executive Officer since its organizati
Slide 8: Corporate Culture
Corporate Culture VALUES MISSION Integrity INVESTAR IS Neighborly a dynamic full service Visionary community bank focused Empowerment on relationships that create Star Service value and opportunities for Team Focused our customers, employees, Accountable shareholders and the Responsive community ser
Slide 9: Creating Shareholder Value
Creating Shareholder Value Tangible Book Value Per Share1 6.3% TBV / Share (Ex. AOCI) 1 $26.00 GROWTH CAGR2 $25.23 2019 – 2024 $24.00 $23.55 $22.37 $22.00 $20.31 $19.89 $19.72 $20.00 TBV per Share1 ($) $19.20 $19.08 $18.79 $18.92 $18.62 $18.00 $17.43 $16.00 $14.00 $12.00 $10.00 2019 2020 2021 2022 2
Slide 10: Dividend History
Dividend History $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- 1 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1 Annualized based on 3rd quarter 2014 dividend of $0.0068 plus 4th quarter 2014 dividend of $0.007 10
Slide 11: Recent GAAP Earnings Performance
Recent GAAP Earnings Performance Net Income ($000) Earnings Per Share (Diluted) $6,107 $0.61 $5,381 $0.54 $4,707 $0.48 $4,057 $0.41 $3,538 $0.36 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 ROAA (%) Net Interest Margin (%) 2.72 2.62 2.67 2.65 0.88 2.59 0.77 0.68 0.59 0.50 20
Slide 12: Recent Core Earnings Performance
Recent Core Earnings Performance Core Earnings ($000)1 Core Earnings Per Share (Diluted) 1 $6,463 $0.65 $4,273 $4,444 $0.43 $0.45 $3,833 $0.39 $3,567 $0.36 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 Core ROAA (%) 1 Core Efficiency Ratio (%) 1 0.93 78.81 80.24 79.33 74.85 6
Slide 13: Returns to Shareholders
Returns to Shareholders Shares Repurchased (%)1 5.89% ▪ In July 2023, the Board of Directors authorized an additional 5.02% 350,000 shares for repurchase under our stock repurchase program. 3.79% 3.39% ▪ During 2024 we repurchased 18,621 shares at an average 2.25% price of $16.13. ▪ Purchases during
Slide 14: Continued Execution of Acquisition Strategy
Continued Execution of Acquisition Strategy Investar Has Completed 7 Whole Bank Acquisitions and 1 Branch Transaction 2011 Total Assets: South LA Business Bank (LA) 2017 $2.7 Billion BOJ Bancshares (LA) 2019 2013 Bank of York (AL) First Community Bank (LA) 2017 2021 2019 Citizens Cheaha Financial Ba
Slide 15: Investment Portfolio – 4th Quarter 2024
Investment Portfolio – 4th Quarter 2024 Commercial Available-for-Sale Mortgage-backed (Dollars in thousands) Book Value Gain (Loss) Fair Value Securities 19% U.S. Governmental Securities $ 15,985 $ (278) $ 15,707 State and Political Subdivisions 18,363 (2,243) 16,120 Residential Mortgage-backed Corp
Slide 16: Investment Portfolio – Principal Cash Flows
Investment Portfolio – Principal Cash Flows ~$45 Million Maturing by Q4 2025 $14.3 $12.4 $10.8 $7.6 10% 7% 5% 2% 2025Q1 2025Q2 2025Q3 2025Q4 Cashflow ($ in millions) Cumulative Principal Return (%) 16
Slide 17: Loan Portfolio – 4th Quarter 2024
Loan Portfolio – 4th Quarter 2024 Consumer 0.5% ▪ Consistent with our strategy to optimize the balance sheet, total loans decreased $30.8 million, or 1.4%, to $2.13 billion at December 31, 2024 Commercial & Construction & compared to $2.16 billion at September 30, 2024. Industrial Development 24.8%
Slide 18: CRE Portfolio Overview
CRE Portfolio Overview Farmland Healthcare 1% 9% Warehouse 6% Wholesale Trade 5% Professional, Manufacturing & Other Multi-family 8% $1.0B 46% Office 9% Retail 16% Portfolio Characteristics December 31, 2024 % of Total Portfolio 48.7% Owner-Occupied as % of CRE Portfolio 43.4% Nonowner-Occupied Offi
Slide 19: C&I Portfolio Overview
C&I Portfolio Overview By Collateral Type By Industry Attorney Cases Transportation & 10% Warehousing 13% Other 9% Finance & Insurance Professional Unsecured 45% (Scientific & Tech) Accounts Receivable 3% 12% 46% $433M $433M Equipment 10% Other 22% Cash/Brokerage Secured 10% Marine 12% Construction
Slide 20: Construction & Development Portfolio Overview
Construction & Development Portfolio Overview 1-4 Family Development/Builder Lots 14% 1-4 Family Construction - Consumer 3% Commercial Land & Construction 48% $155M 1-4 Family Construction - Builder 27% Lot/Raw Land - Consumer Multifamily 2% 6% Portfolio Characteristics December 31, 2024 % of Total
Slide 21: Consumer Portfolio Overview
Consumer Portfolio Overview Unsecured 13% Miscellaneous 1% Auto 28% CD/Savings Secured $11M 46% Recreational 12% Portfolio Characteristics December 31, 2024 % of Total Portfolio 0.5% Average Loan Size $11K Note: Since exiting the indirect auto loan origination business at the end of 2015, the Bank h
Slide 22: Allowance for Credit Losses
Allowance for Credit Losses Allowance for Credit Losses / Total Loans (%) 1.38 1.26 1.16 1.09 1.11 2020 2021 2022 2023 2024 For the Year Ended (Dollars in thousands) 12/31/2020 12/31/2021 12/31/2022 12/31/2023 12/31/2024 Allowance for Credit Losses Allowance for Credit Losses - Beginning $ 10,700 $
Slide 23: Asset Quality Trends
Asset Quality Trends Nonperforming Assets ($000s) NPAs / Assets (%) $14,043 0.52 $10,207 $9,897 $8,860 0.36 0.36 $8,337 0.32 0.30 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 2023Q4 2024Q1 2024Q2 2024Q3 2024Q4 Net Charge-offs / Avg. Loans (%) Reserves / NPLs (%) 0.04 682.0 576.4 529.3 515.4 0.01 0.00 0.00 302
Slide 24: Deposit Portfolio – 4th Quarter 2024
Deposit Portfolio – 4th Quarter 2024 ▪ Total deposits increased $58.5 million, or 2.6%, to $2.35 billion at Brokered Demand 2.0% December 31, 2024, compared to $2.29 billion at September 30, Money Market 8.2% 2024. Savings Interest-bearing 5.7% ▪ Investar utilizes brokered time deposits, entirely in
Slide 25: Non-Interest Expense
Non-Interest Expense $2,753,807 $2,815,155 $2,513,203 $2,722,812 $2,321,181 $2,148,916 $63,062 $62,192 $62,353 $62,630 $61,761 $63,032 $62,820 $60,865 $57,131 $55,480 $48,168 $46,079 2019 2020 2021 2022 2023 2024 Non-interest expense (GAAP) Core Non-interest expense 1 Total Assets 1 Non-GAAP financi
Slide 26: Financial Profile
Financial Profile As of December 31, For the Three Months Ended (Dollars in thousands, except per share data) 2020 2021 2022 2023 2024 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Balance Sheet Total Assets $ 2,321,181 $ 2,513,203 $ 2,753,807 $ 2,815,155 $ 2,722,812 $ 2,787,706 $ 2,787,578 $ 2,802,573 $
Slide 27: Appendix
APPENDIX
Slide 28: Non-GAAP Reconciliation
Non-GAAP Reconciliation As of December 31, As of the Three Months Ended (Dollars in thousands, except per share data) 2020 2021 2022 2023 2024 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Tangible common equity: Total stockholders' equity $ 243,284 $ 242,598 $ 215,782 $ 226,768 $ 241,296 $ 227,005 $ 230
Slide 29: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Net Income $ 6,547 $ 2,781 $ 3,538 $ 4,707 $ 4,057 $ 5,381 $ 6,107 Plus: Provision for Credit Losses (2,840) (34) 486 (1,419) (415) (945) (701
Slide 30: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands) 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Interest on Deposits $ 3,052 $ 6,221 $ 9,534 $ 11,733 $ 14,584 $ 14,845 $ 14,865 $ 15,729 $ 16,071 Average Interest-Beari
Slide 31: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands) 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Net interest income $ 18,491 $ 17,216 $ 17,198 $ 17,856 $ 17,483 Provision for credit losses 486 (1,419) (415) (945) (701) Net interest income after provision for
Slide 32: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands, except per share data) 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 3 Core basic earnings per common share $ 0.39 $ 0.44 $ 0.36 $ 0.45 $ 0.66 Diluted earnings per common share (GAAP) 0.36 0.48 0.41 0.54 0.61
Slide 33: 1 Adjustment to noninterest income directly attributable to income from a legal settlement related
1 Adjustment to noninterest income directly attributable to income from a legal settlement related to one loan relationship that became impaired in the third quarter of 2021 as a result of Hurricane Ida. 2 Change in net asset value of other investments represents unrealized gains or losses on Invest
Slide 34: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) (Dollars in thousands) 2019 2020 2021 2022 2023 2024 Total noninterest expense $ 48,168 $ 57,131 $ 63,062 $ 60,865 $ 62,630 $ 63,032 Severance - (289) (181) (632) (123) (4) Loan purchase expense - - - - (95) - Acquisition expense (2,089) (1,062) (2,448) - - - Empl
Slide 35: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the three months ended December 31, 2024 September 30, 2024 Interest Interest Average Income/ Average Income/ (Dollars in thousands) Balance Expense Yield/ Rate Balance Expense Yield/ Rate Interest-earning assets: Loans $ 2,129,388 $ 31,438 5.87% $ 2,159,412 $
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