Investar Holding Corporation · NASDAQ:ISTR
Investar — Q3 2022 Earnings Presentation
23 slides from Investar's earnings presentation, November 2022
Slide 1: Financial Information: 3rd Quarter 2022
NASDAQ: ISTR Financial Information: 3rd Quarter 2022 Confidential 1
Slide 2: Disclosures and Disclaimers
Disclosures and Disclaimers 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 identifi
Slide 3: Disclosures and Disclaimers (continued)
Disclosures and Disclaimers (continued) • the extent of continuing client demand for the high level of personalized service that is a key element of our banking approach as well as our ability to execute our strategy generally; • our dependence on our management team, and our ability to attract and
Slide 4: Our Company
Our Company Investar Holding Corp. 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 service, c
Slide 5: Financial Overview – 3rd Quarter 2022
Financial Overview – 3rd Quarter 2022 Highlights 3rd Quarter Results ▪ Recorded quarterly net income of $7.3 million in the 3rd quarter Balance Sheet (in millions) Assets $2,662 ▪ Repurchased 126,861 shares in the 3rd quarter at an average price of $21.48; 396,912 shares remain authorized under the
Slide 6: 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 the Share Exchange. He has also served as the Bank’s President and Chief Executive Officer since its organization in 2006. Prior to Investar Ba
Slide 7: 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 8: Creating Shareholder Value
Creating Shareholder Value Tangible Book Value Per Share1 $22.00 $21.51 TBV / 6.1% Share (Ex. AOCI) $19.89 $20.00 $19.72 GROWTH CAGR2 $19.20 $19.08 2017 – 2022Q3 $18.79 $18.62 $18.00 $17.46 $17.13 TBV per Share1 ($) $16.40 $16.22 $16.06 $16.00 $14.00 $12.00 $10.00 2017 2018 2019 2020 2021 2022Q3 TBV
Slide 9: Recent Earnings Performance
Recent Earnings Performance Net Income ($000) Net Income Earnings PerEPS Share (Diluted) $0.97 $0.92 $10,103 $9,404 $0.73 $0.67 $6,936 $7,304 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 $(9,984) $(0.95) ROAA ROAA(%) Net Interest Margin (%) #PEND 1.60 1.48 1.06 1.11 3.75 3.7
Slide 10: Recent Core Earnings Performance
Recent Core Earnings Performance Core Net CoreIncome Net Income($000) 1 Core Earnings Per(Diluted) Core EPS Share (Diluted) 1 $0.68 $0.71 $7,107 $7,119 $0.62 $6,328 $0.56 $5,841 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 $(11,037) $(1.06) Core ROAA (%) 1 Core Efficiency Ra
Slide 11: 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 12: Loan Portfolio – 3rd Quarter Update
Loan Portfolio – 3rd Quarter Update Farmland ▪ Loan yield of 4.86% 0.7% Owner-Occupied Multifamily Commercial Real 2.9% Estate ▪ Total loans increased $89.3 million, or 4.7% (18.8% annualized), 22.2% compared to the second quarter of 2022 Nonowner-Occupied Commercial Real 1-4 Family Residential ▪ Th
Slide 13: Loan Loss Reserves / Total Loans
Loan Loss Reserves / Total Loans Loan Loss Reserves / Total Loans (%) 1.15 1.09 1.11 0.67 0.63 2018Y 2019Y 2020Y 2021Y 2022Q3 For the Three Months For the Year Ended Ended (Dollars in Thousands) 12/31/2018 12/31/2019 12/31/2020 12/31/2021 9/30/2022 Loan Loss Reserve Loan Loss Reserve - Beginning $7,
Slide 14: Asset Quality Trends
Asset Quality Trends Nonperforming Assets ($000s) NPAs / Assets (%) $33,600 $32,201 $29,142 1.25 1.28 1.13 $20,425 $15,440 0.79 0.58 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 2021Q3 2021Q4 2022Q1 2022Q2 2022Q3 Net Charge-offs / Avg. Loans (%) Reserves / NPLs (%) 1.12 176.7 128.9 82.1 70.6 62.4 0.02 0.00 0.
Slide 15: Deposit Transformation
Deposit Transformation Deposit Mix at September 30, 2020 Deposit Mix at September 30, 2022 Money Interest- Interest- Market bearing bearing Demand 9.8% Savings Two Year Demand 30.4% 25.8% 7.6% Transformation Money Market 12.2% Noninterest- Savings Noninterest- bearing 8.1% bearing Demand Demand Time
Slide 16: Financial Profile
Financial Profile As of December 31 For the Three Months Ended In $000s except for per share data 2017 2018 2019 2020 2021 12/31/2021 3/31/2022 6/30/2022 09/30/22 Balance Sheet Total Assets $1,622,734 $1,786,469 $2,148,916 $2,321,181 $2,513,203 $2,513,203 $2,572,708 $2,590,607 $2,661,694 Total Loans
Slide 17: Appendix
APPENDIX
Slide 18: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands, except per share data) As of December 31 For the Three Months Ended 2017 2018 2019 2020 2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Tangible common equity: Total stockholders' equity $172,729 $182,262 $241,976 $243,284 $242,598 $242,598 $233,657 $219,
Slide 19: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands) For the Three Months Ended 3/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Net Income $ 5,360 $ 5,688 $ (9,984) $ 6,936 $ 10,103 $ 9,404 $ 7,304 Less: Provision Expense (400) (114) (21,713) (658) 449 (941) (1,162) Less: Tax Expens
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands) For the Three Months Ended 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Interest on Deposits $3,404 $2,750 $2,302 $2,114 $1,854 $1,217 $976 $907 $1,315 Average Interest-Bearing Deposits $1,390,443 $1,442,71
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands) For the Three Months Ended 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Net interest income $21,165 $21,548 $21,467 $21,821 $21,978 $23,467 Provision for loan losses 114 21,713 658 (449) 941 1,162 Net interest income after provision $21,
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation (Dollars in thousands) For the Three Months Ended 6/30/2021 9/30/2021 12/31/2021 3/31/2022 6/30/2022 9/30/2022 Core basic earnings per common share $0.53 $(1.06) $0.56 $0.69 $0.62 $0.71 Diluted earnings per common share (GAAP) $0.53 $(0.95) $0.67 $0.97 $0.92 $0.73 Gain on cal
Slide 23: Slide 23