Investar Holding Corporation · NASDAQ:ISTR
Investar — Q2 2025 Earnings Presentation
35 slides from Investar's earnings presentation, July 2025
Slide 1: Q2 2025 Investor Presentation
NASDAQ: ISTR Q2 2025 Investor Presentation 1
Slide 2: Cautionary Statements
Cautionary Statements Non-GAAP Financial Measures This presentation contains financial information determined by methods other than in accordance with generally accepted accounting principles in the United States of America, or GAAP. These measures and ratios include “tangible common equity,” “tangi
Slide 3: Cautionary Statements (continued)
Cautionary Statements (continued) Forward-Looking and Cautionary Statements Relating to the Pending Wichita Falls Transaction With respect to the pending Wichita Falls transaction, forward-looking statements include, but are not limited to, statements about the potential benefits of the transaction,
Slide 4: 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 5: Execution of Strategic Initiatives – 2nd Quarter 2025
Execution of Strategic Initiatives – 2nd Quarter 2025 Wichita Falls Transaction and Private Placement of Preferred Stock ▪ On July 1, 2025, we announced that we had entered into a definitive agreement to acquire Wichita Falls Bancshares, Inc. (“Wichita Falls”), headquartered in Wichita Falls, Texas,
Slide 6: Financial Overview – 2nd Quarter 2025
Financial Overview – 2nd Quarter 2025 Highlights 2nd Quarter Results Balance Sheet (in millions) ▪ Net interest margin improved 16 basis points to 3.03% for the 2nd quarter of 2025 compared to Assets $ 2,748 2.87% for the 1st quarter of 2025. Net Loans $ 2,080 ▪ The yield on the loan portfolio incre
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 7.7% TBV / Share 1 Q2 2025 includes the impact of ($4.23) GROWTH CAGR2 per share of AOCL3 2022 – 2025Q2 $21.80 $22.00 $20.31 $20.00 $18.92 $18.00 $17.43 TBV per Share1 ($) $16.00 $14.00 $12.00 $10.00 2022 2023 2024 2025Q2 TBV/Share 1 Non-GAAP
Slide 10: Dividend History
Dividend History $0.50 $0.45 $0.40 $0.35 $0.30 $0.25 $0.20 $0.15 $0.10 $0.05 $- 2014 1 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2 1 Annualized based on 3rd quarter 2014 dividend of $0.0068 plus 4th quarter 2014 dividend of $0.007 2 Annualized based on actual dividends of $0.215 through
Slide 11: Recent GAAP Earnings Performance
Recent GAAP Earnings Performance Net Income ($000) Earnings Per Share (Diluted) $6,107 $6,293 $0.63 $0.61 $5,381 $0.54 $4,494 $0.46 $4,057 $0.41 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 ROAA (%) Net Interest Margin (%) 0.94 0.88 3.03 2.87 0.77 2.62 2.67 2.65 0.66 0.59 20
Slide 12: Recent Core Earnings Performance
Recent Core Earnings Performance Core Earnings ($000)1 Core Earnings Per Share (Diluted) 1 $6,463 $6,484 $0.65 $0.65 $4,706 $0.47 $4,444 $0.45 $3,567 $0.36 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 Core ROAA (%) 1 Core Efficiency Ratio (%) 1 80.24 79.33 78.71 0.96 73.55 0
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. 3.39% ▪ Repurchased 36,065 shares at an average price of $17.36 2.25% during the 2nd quarter of 2025 and 71,05
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 – 2nd Quarter 2025
Investment Portfolio – 2nd Quarter 2025 Commercial Available for Sale Mortgage-backed (Dollars in thousands) Book Value Gain (Loss) Fair Value Securities 18% U.S. Governmental Securities $ 17,361 $ (188) $ 17,173 State and Political Subdivisions 17,726 (1,976) 15,750 Residential Mortgage-backed Corp
Slide 16: Loan Portfolio – 2nd Quarter 2025
Loan Portfolio – 2nd Quarter 2025 Consumer 0.5% ▪ Total loans decreased $0.3 million to $2.11 billion at June 30, 2025 compared Construction & Development to $2.11 billion at March 31, 2025. Commercial & 6.7% Industrial 25.2% ▪ Loan yield increased to 5.94% for the 2nd quarter of 2025 compared to 5.
Slide 17: CRE Portfolio Overview
CRE Portfolio Overview Farmland Multifamily < 1% 10% Portfolio Characteristics Owner-occupied June 30, 2025 45% % of Total Portfolio 49.2% Owner-Occupied as % of CRE Portfolio 44.6% Nonowner- $1.0B Nonowner-Occupied Office as a % of Total Portfolio 4.1% occupied 45% Average Loan Size $1.0M Owner-Occ
Slide 18: C&I Portfolio Overview
C&I Portfolio Overview By Collateral Type By Industry Attorney Cases Transportation & 9% Warehousing 12% Other 10% Finance & Insurance Professional, 43% Scientific & Technical Unsecured Services Accounts Receivable 3% 12% 46% $449M $449M Equipment 10% Other 24% Cash/Brokerage Secured 9% Marine Const
Slide 19: Construction & Development Portfolio Overview
Construction & Development Portfolio Overview 1-4 Family Development/Builder Lots 11% 1-4 Family Construction - Builder 28% Commercial Land & Construction $142M 43% Lot/Raw Land - Consumer 2% Multifamily 16% Portfolio Characteristics June 30, 2025 % of Total Portfolio 6.7% Average Loan Size $541K 19
Slide 20: Consumer Portfolio Overview
Consumer Portfolio Overview Unsecured 12% Miscellaneous 1% Auto 27% $10M CD/Savings Secured 47% Recreational 13% Portfolio Characteristics June 30, 2025 % of Total Portfolio 0.5% Average Loan Size $12K Note: Since exiting the indirect auto loan origination business at the end of 2015, the Bank has e
Slide 21: Allowance for Credit Losses
Allowance for Credit Losses Allowance for Credit Losses / Total Loans (%) 1.38 1.26 1.26 1.16 1.11 2021 2022 2023 2024 2025Q2 For the six For the year ended months ended (Dollars in thousands) 12/31/2021 12/31/2022 12/31/2023 12/31/2024 6/30/2025 Allowance for Credit Losses Allowance for Credit Loss
Slide 22: Asset Quality Trends
Asset Quality Trends Nonperforming Assets ($000s) NPAs / Assets (%) $14,043 $13,108 0.52 0.48 $11,754 0.43 $8,860 $8,337 0.32 0.30 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 2024Q2 2024Q3 2024Q4 2025Q1 2025Q2 Net Charge-offs / Avg. Loans (%) Reserves / NPLs (%) 0.04 0.01 682.0 0.00 576.4 (0.02) 473.3 355.9
Slide 23: Deposit Portfolio – 2nd Quarter 2025
Deposit Portfolio – 2nd Quarter 2025 ▪ Total deposits decreased $9.2 million, or 0.4%, to $2.34 billion at Money Market June 30, 2025, compared to $2.35 billion at March 31, 2025. 9.5% Interest-bearing Savings Demand 5.8% ▪ Investar utilizes brokered time deposits, entirely in denominations 24.6% of
Slide 24: Non-Interest Expense
Non-Interest Expense $2,753,807 $2,815,155 $2,722,812 $2,748,065 $2,513,203 $2,321,181 $65,876 $64,550 $63,062 $62,192 $62,353 $62,630 $61,761 $63,032 $62,820 $60,865 $57,131 $55,480 2 2020 2021 2022 2023 2024 YTD2025 Non-interest expense (GAAP) Core Non-interest expense 1 Total Assets 1 Non-GAAP fi
Slide 25: 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 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Balance Sheet Total Assets $ 2,321,181 $ 2,513,203 $ 2,753,807 $ 2,815,155 $ 2,722,812 $ 2,802,573 $ 2,722,812 $ 2,729,902 $
Slide 26: Appendix
APPENDIX
Slide 27: 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 9/30/2024 12/31/2024 3/31/2025 6/30/2025 Tangible common equity: Total stockholders' equity $ 243,284 $ 242,598 $ 215,782 $ 226,768 $ 241,296 $ 245,542 $ 241
Slide 28: 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 3/31/2025 6/30/2025 Net Income $ 3,538 $ 4,707 $ 4,057 $ 5,381 $ 6,107 $ 6,293 $ 4,494 Plus: Provision for Credit Losses 486 (1,419) (415) (945) (701) (3,596) 141
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 3/31/2025 6/30/2025 Interest on Deposits $ 9,534 $ 11,733 $ 14,584 $ 14,845 $ 14,865 $ 15,729 $ 16,071 $ 14,640 $ 14,456 Average Interest-Bear
Slide 30: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the three months ended (Dollars in thousands) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 1 6/30/2025 Net interest income $ 17,198 $ 17,856 $ 17,483 $ 18,345 $ 19,644 2 Provision for credit losses (415) (945) (701) (3,596) 141 2 Net interest income after provisio
Slide 31: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the three months ended 1 (Dollars in thousands, except per share data) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 26 Core basic earnings per common share $ 0.36 $ 0.45 $ 0.66 $ 0.66 $ 0.48 Diluted earnings per common share (GAAP) 0.41 0.54 0.61 0.63 0.
Slide 32: Notes to core results
1 All core results and core metrics for the quarter ended March 31, 2025 exclude $0.2 million of acquisition expense incurred during that quarter related to the Wichita Falls transaction. 2 Provision for credit losses, net interest income after provision for credit losses, core earnings before nonin
Slide 33: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) YTD 2025 (Dollars in thousands) 2020 2021 2022 2023 2024 2025 Annualized Total noninterest expense $ 57,131 $ 63,062 $ 60,865 $ 62,630 $ 63,032 $ 32,938 $ 65,876 Severance (289) (181) (632) (123) (4) (26) Loan purchase expense - - - (95) - - Acquisition expense (1
Slide 34: Non-GAAP Reconciliation (continued)
Non-GAAP Reconciliation (continued) For the three months ended June 30, 2025 March 31, 2025 Interest Interest Average Income/ Average Income/ (Dollars in thousands) Balance Expense Yield/ Rate Balance Expense Yield/ Rate Interest-earning assets: Loans $ 2,104,266 $ 31,140 5.94% $ 2,108,904 $ 30,552
Slide 35: Slide 35