Investar Holding Corporation · NASDAQ:ISTR
Investar — Q1 2024 Earnings Presentation
35 slides from Investar's earnings presentation, Apr 22, 2024
Slide 1: Q1 2024 Investor Presentation
INVESTAR NASDAQ: ISTR Q1 2024 Investor Presentation
Slide 2: Cautionary Statements
Sr Cautionary Statements ‘This presentation contains fowartlooking sintementsvitin the meaning ofthe Prvate Secures Ltgaton Reform Act of 1995 at reflect Ivesta’s current vas wth respect b, among cher ings, tiie events and francis pedormance. vesiar generalyienties fovvadocking stents by terminology
Slide 3: Our Company
ber) Sx Our Company Investar Holding Corp. is the Bank Holding Company for Investar Bank Headquartered in Baton Rouge, LA Mission Founded in 2006 Investaris a dynamic full service community bank focused on relationships that create value and opportunities for our customers, employees, Full service,
Slide 4: Execution of Strategic Initiatives - 1st Quarter 2024
Mi => H . age . ~ y Execution of Strategic Initiatives - 1st Quarter 2024 Nz! Balance Sheet Optimization and Capital = We are continuing to focus on consistent, quality earnings through the optimization and rightsizing ofthe balance sheet. ~ Through he rght-sizing of our balance sheet, we recognized
Slide 5: Highlights 1st Quarter Results
Highlights 4st Quarter Results, = Recorded quarterly netincome of $4.7 million in the 1* quarter of 2024. = Return on average assets increased to 0.68% for the 1* quarter of 2024 compared to 0.50% for the 4m quarter of 2023. Core retum on average assets’ increased to 0.61% for the 1% quarter of 2024
Slide 6: Leadership Team
n> » NS y Leadership Team a a s John J. D'Angelo, Presidentand Chief Executive Officer Mr. D’Angelo has been the President and Chief Executive Offer of the Company since our organizaton as a bank holding company in 2013. He has also served as the Bank's President and Chief Executive Ofcer since its
Slide 7: Corporate Culture
— Ni Sy) Corporate Culture a Integrity Neighborly Visionary Empowerment Star Service Team Focused Accountable Responsive INVESTAR INVESTAR IS a dynamic full service community bank focused on relationships that create value and opportunities for our customers, employees, shareholders and the communit
Slide 8: Tangible Book Value Per Share
Tangible Book Value Per Sharet 5.1% TBV! Share (Ex. AOC! eum GROWTH CAGR? oe sam 2019-202401 $23 $2200 $199 1972 $20.00 $189 gg69 $19.20 51908 $1892 $18.90 $18.00 $1743 $16.00 $1400 $1200 $10.00 ma m9 Ev) ma ae mz4at TBV per Share!) |@TBVShae = TBVShare (excl. AOC) TNVESTAR' ‘toro1se inant measure;
Slide 9: Dividend History
OF Dividend History “oon 2014’ = 205206 = 20172018 »= 20182020 TNVESTAR® {Amie tased on 2° cater 2014 ced of 2.088 pos # rarer 204 cies of $2007 * Annuaized based on 1 quater 2024 ovidend of $0.10
Slide 10: Recent GAAP Earnings Performance
M= S Fy) Recent GAAP Earnings Performance $4707 slood absai a 202302 202303 202401 202301 202302 202303, 202304 202401 ROAA f ROA) Net Interest Margin (%) ala 202301 202303, 202304 202401 202301 202302 202303, 202304 202401 INVESTAR 10 282 266 272 29
Slide 11: Recent Core Earnings Performance
M= Sy Recent Core Earnings Performance Core Earnings ($000)' Core Earnings Per Share (Diluted) * ‘$6,616 sos7 us $4273 $0.51 $0.43 $0.39 $3,259 | $0.33 a 3 (202302 202303 202401 202301 202302 202303 202304 202401 Core ROAA f Core ROAA(%)' Core Efficiency Ratio (%)' 7998 raat 097 ita maz 7485 076 ost
Slide 12: Returns to Shareholders
Mf. rg y Returns to Shareholders a Shares Repurchased (%)' 589% = In July 2023, the Board of Directors authorized an additional 5.02% 350,000 shares for repurchase under our stock repurchase program. 3.19% 3% = Repurchased 10,525 shares during the 1% quarter at an 205% average price of $16.20. = YTD
Slide 13: Continued Execution of Acquisition Strategy
oF Continued Execution of Acquisition Strategy Investar Has Completed 7 Whole Bank Acquisitions and 1 Branch Transaction 2011 Total Assets: meray (La) Bol 2017 nT $2.8 Billion 2019 201 3 Bank of York (AL) First Community Bank (LA) 2017 Citizens Bancshares (LA) 2021 Cheaha Financial Group (AL) 2019 M
Slide 14: Investment Portfolio - 1st Quarter 2024
M= Investment Portfolio - 1% Quarter 2024 Nz! Commercial Morigage-backed Book Value Gain (Loss) _ Fair Value Secures 19% U.S. Governmental Seourties $1909 $ (3%) $ 18,649 ‘State and Polical Subdivisions 17,853 (2,003) 15,850 Residential Corporate Bonds 23751 6,440) 25) emer” Residential Mottgage-bac
Slide 15: Investment Portfolio - Principal Cash Flows
oF Investment Portfolio — Principal Cash Flows ~$71 Million Maturing by Q4 ‘25 $143 iota 22024 3 2024 4 2024 Qt 2025 22025 932025 (= Cashfiow ($in millions) | ——Cumulative Principal Return (%) 15
Slide 16: Loan Portfolio - 1st Quarter 2024
) Loan Portfolio - 1st Quarter 2024 Consumer = Consistent with our strategy to optimize the balance sheet, total loans me decreased $30.0 million, or 1.4%, to $2.18 billion at March 31, 2024 compared to $2.21 billion at December 31, 2023. {onstruction & Development Loan yield decreased to 5.89% for
Slide 17: CRE Portfolio Overview
be) = INVEST. Sy CRE Portfolio Overview Farmland Healthcare 1% 9% ‘Warehouse 6% Wholesde Trade 5% Proessional, Manufacturing & Other Mul amily $1.1B mn 10% ‘Office 9% Retail 16% Portfolio Charac tics: March 31, 2024 % of Total Portfolio 48.7% Owner-Occupied as % of CRE Portfolio 427% Nonowner-Occupi
Slide 18: C&I Portfolio Overview
C&l Portfolio Overview By Collateral Type By Industry Aomey Cases Tensoorion & 10% ‘Warehousing B% Ofer ue Professional (some 8 Tech) Acco Recsvable Force leiarce =s B% Unsecured B% $417M | om $417M Ecuipment 11% Otrer 2% Cash/Brokerage Seowed Mave 8% Manactung 12% ‘ae Comgtn 6 March 31, 2024 °% of
Slide 19: Construction & Development Portfolio Overview
Mf . . . Se Construction & Development Portfolio Overview INVESTAR 14 Family Deveopmen/Buider Las 13% _— = > : ‘Corson are $174M 14 Family Constncion - Buiter {\ - LayRaw Land - Multtamily Corsumer 1 % Portfolio Characteristics March 31, 2024 % of Total Portfolio. 80% ‘Average Loan Size $541k 19
Slide 20: Consumer Portfolio Overview
iM Ser) Consumer Portfolio Overview Unsecured sash Miscellaneous 1% ‘Aulo 2% CDISavings Secured $12M 47% Recreational 13% Portfolio Characteristics March 31, 2024 % of Total Portalio 05% ‘Average Loan Size suik INVEST: Note: Since exiting the indirect auto loan ongination business at the end of 2016
Slide 21: Allowance for Credit Losses
Nl ; % y Allowance for Credit Losses Allowance for Credi osses/ Total Loans (%) ad 1.34 a 1 146 20207 2021Y 2022Y 20237 202401 For the Three For the Year Ended Months Ended [Dollars in thousands) 12/31/2020 12/31/2021 1230/2022 1213012023 3/31/2024 Allowance for Credit Losses ‘Alowance for Credt Los
Slide 22: Asset Quality Trends
(= M, ; SY Asset Quality Trends $11,131 $10.013 $10,207 ‘$6,361 20701 207302 2203 207304 207302 2704 Net Charge-offs / Avg. Loans (%) Reserves / NPLs (%) aot — ooo 5154 J (0.01) (oat) ana mnsa2 mna3 mas maar 202401 INVESTAR 2
Slide 23: Deposit Portfolio - 1st Quarter 2024
OF Deposit Portfolio - 1st Quarter 2024 = Total deposits decreased $47.9 million, or 2.1%, to $2.21 billion at March 31, 2024, compared to $2.26 billion at December 31, 2023. Beginning in the 4% quarter of 2022, management utilized brokered time deposits, entirely in denominations of less than $250,
Slide 24: Noninterest Expense and Total Assets
Nz! 15,185 a men 328 $2,787,706 $62,880 $2,148,916 $60,885 $54,184 $49,168 aug a0 awe Pa a vans? [SwNonintrest expense (GAAP) sm Core Non interestexpense’ —e=Tetal Assets INVESTAR eo fectmmm hn 2 vn rots ot ts
Slide 25: Financial Profile
) Financial Profile Forthe Three Months Ended Balance Sheet Total Aosets $ 2148916 Total Loans $ 1591875 Total Deposits $ 1707,706 LoarsiDeposis 99.08% Capital TCAITA’ 996% Total Capital 15.02% Tier Capital 1208% Ter { Leverage Capi 10.45% Profitability Measures Net terest Mergin 351% Non Interest I
Slide 26: Appendix
APPENDIX
Slide 27: Tangible Book Value Reconciliation
Tota stockholders equity Adjustments: Goce Oherinangiles Tangle common equity Aci Tangible common equi exuding AOC! Common shares oustanding Book vue percommon hare Tangible book vlue per common share Tangible book value per common share exducing AOC! Tangle assets: Total assets Adjustments: Goce Ob
Slide 28: Pre-Tax, Pre-Provision Net Income
For the Three Months Ended Plus: Provision for Credit Losses Plus: Income Tax Expense ag $§ «657 S (1419) 1380 |Pre-Tax, Pre-Provision Net come 50m $5216 § 468 INVESTAR 28
Slide 29: Average Deposits and Rates
Forthe Three Months Ended Dotars in thousands) woven soumma enon amie 0 an 12MIN 301A vtereton Depots 78 or $13 30s $62 $95 SHH OS see S tapas svrage nee ening Depots 1576s 4400354 44smaz6 «4482268 —««NSSTSES © «N5508 © NTOZEKB—tgaate «05569 vroge Noninst Bearing Depots Sess «SITSIS.«—=««GI2777—«=58
Slide 30: Non-GAAP Reconciliation (continued)
Ser) Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands) Net interest income $ . $ 18387 S 17469 S 18491 S 17,216 Provision for cred losses (2840) 4) 496 (1.419) \Net interest income after provision for credit losses $ ; $ na § 17503 § 18,005 $ 18,635, Noninterest i
Slide 31: Non-GAAP Reconciliation (continued)
Sn Non-GAAP Reconciliation (continued) For the Three Months Ended (Dollars in thousands, except per share data) 6/30/2023 Core basic earnings per common share s 052 oer 033 $ 039 $ 044 Ditted earings per common share (GAAP) 0.38 067 028 036 0.48 Loss on call orsale of investment securties, net : 5 g
Slide 32: Non-GAAP Reconciliation Footnotes
> Sa ny + Adjustment fo noninterest income recorded upon complefon ofthe sale of the Alice and Victoria branches for remaining discount on loans sold, 2Change in net asset value of other investments represents unrealized gains or losses on Investar’s investments in Small Business Investment Companie
Slide 33: Non-GAAP Reconciliation (continued)
= S Sr) Dovtars in thousancs) Tata noninterest xperse severance Loe purchase erpense oqusten expense Employee reerton cred, ret of consuting fees (Loss) gainon eaty extinguehment of suborreted debt Ovesture expense PPP inoertve ‘Communty gant Wie down of cher real este owned Noreraine egal expense ‘
Slide 34: Non-GAAP Reconciliation (continued)
> S Sa m) Non-GAAP Reconciliation (continued) For the three months ended March 31, 2024 December 31, 2023 Interest Average Income! Average Dollars in thousands) Balance Expense Yeld! Rate Balance Yield! Rate Interest eaming assets: Loans S 2195496 $ 32,135 589% $ 2214916 $ 33,128 5.93% Adjustments:
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