false 0001602658 0001602658 2024-01-25 2024-01-25
 

 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 

 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
Date of report (Date of earliest event reported): January 25, 2024
 

 
Investar Holding Corporation
(Exact name of registrant as specified in its charter)
 

 
Louisiana
001-36522
27-1560715
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(I.R.S. Employer
Identification No.)
 
10500 Coursey Blvd.
Baton Rouge, Louisiana 70816
(Address of principal executive offices) (Zip Code)
 
Registrants telephone number, including area code: (225) 227-2222
 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
     
 
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
     
 
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
     
 
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common stock, $1.00 par value per share
ISTR
The Nasdaq Global Market
 
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
Emerging growth company ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 

 
1

 
Item 2.02
Results of Operations and Financial Condition
 
On January 25, 2024, Investar Holding Corporation (the “Company”), the holding company of Investar Bank, National Association (the “Bank”), issued a press release reporting fourth quarter 2023 results and posted on its website its fourth quarter 2023 earnings release and investor presentation. The materials contain forward-looking statements regarding the Company and include a cautionary note identifying important factors that could cause actual results to differ materially from those anticipated. Copies of the earnings release and investor presentation are furnished as Exhibit 99.1 and Exhibit 99.2 to this Current Report on Form 8-K.
 
The information contained in Item 2.02, including Exhibit 99.1 and Exhibit 99.2 of this Current Report, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.
 
Item 9.01
Financial Statements and Exhibits
 
(d) Exhibits
 
Exhibit Number
 
Description of Exhibit
99.1
 
99.2   Investor presentation dated January 25, 2024
104
 
The cover page of Investar Holding Corporation’s Form 8-K is formatted in Inline XBRL
 
2

 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
INVESTAR HOLDING CORPORATION
     
Date: January 25, 2024
By:
/s/ John J. D’Angelo
   
John J. D’Angelo
   
President and Chief Executive Officer
 
3

Exhibit 99.1

 

For Immediate Release

 

Investar Holding Corporation Announces 2023 Fourth Quarter Results

 

 

BATON ROUGE, LA / ACCESSWIRE / January 25, 2024 / Investar Holding Corporation (“Investar”) (NASDAQ:ISTR), the holding company for Investar Bank, National Association (the “Bank”), today announced financial results for the quarter ended December 31, 2023. Investar reported net income of $3.5 million, or $0.36 per diluted common share, for the fourth quarter of 2023, compared to net income of $2.8 million, or $0.28 per diluted common share, for the quarter ended September 30, 2023, and net income of $8.9 million, or $0.88 per diluted common share, for the quarter ended December 31, 2022

 

On a non-GAAP basis, core earnings per diluted common share for the fourth quarter of 2023 were $0.39 compared to $0.33 for the third quarter of 2023 and $0.62 for the fourth quarter of 2022. Core earnings exclude certain non-operating items including, but not limited to, loss on call or sale of investment securities, net, loss on sale or disposition of fixed assets, net, income from insurance proceeds, severance, the Employee Retention Credit (“ERC”), and loan purchase expense (refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics).

 

Investar’s President and Chief Executive Officer John D’Angelo commented: 

 

“During the fourth quarter, we made significant progress on our strategy of consistent, quality earnings through the optimization of our balance sheet.

 

We continued to originate high quality loans and allow higher risk credit relationships to run off. As a result, nonperforming loans improved to 0.26% of total loans. Additionally, we completed the purchase of the approximately $127 million second tranche of the previously announced acquisition of revolving lines of credit. The transaction improved the composition of the loan portfolio to 27% floating rate while raising the yield. Additionally, due to our diligent workout process, we reached final resolution on a nonperforming oil and gas relationship and recognized an interest recovery of $1.1 million in the fourth quarter, which was highly accretive to our core performance metrics.

 

We generated record high total revenues in the fourth quarter while continuing to closely monitor and control noninterest expense. Stockholders equity increased by $18.1 million, or 8.6%, compared September 30, 2023 due to net income for the quarter and an improvement of $15.3 million in accumulated other comprehensive loss. Our digital transformation and optimization of our physical branch and ATM footprint progressed as we consolidated another branch in our Alabama market in January. We are actively evaluating potential opportunities to further optimize our asset mix to improve shareholder returns.

 

We anticipate a more favorable rate environment in 2024. Our liability sensitive balance sheet is well-positioned if interest rates do come down to benefit from the repricing of deposits and short-term borrowings. During the fourth quarter, we refinanced all of our borrowings under the Bank Term Funding Program at a lower rate.

 

As always, we remain focused on shareholder value and returning capital to shareholders. We repurchased 31,766 shares of our common stock during the fourth quarter at an average price of $10.43 per share and 222,448 shares during 2023 at an average price of $13.47.

 

Fourth Quarter Highlights

 

 

Credit quality continues to strengthen with nonperforming loans improving to 0.26% of total loans at December 31, 2023 compared to 0.27% at September 30, 2023.

 

 

Variable-rate loans as a percentage of total loans was 27% at December 31, 2023 compared to 22% at September 30, 2023

 

 

Total revenues, or interest and noninterest income, for the quarter ended December 31, 2023 totaled $38.4 million, an increase of $3.6 million, or 10.4%, compared to the quarter ended September 30, 2023

 

 

Noninterest expense decreased $0.4 million to $15.4 million for the quarter ended December 31, 2023 compared to $15.8 million for the quarter ended September 30, 2023. Core noninterest expense decreased $0.2 million to $15.4 million for the quarter ended December 31, 2023 compared to $15.6 million for the quarter ended September 30, 2023.

 

 

Book value per common share increased to $23.26 at December 31, 2023, or 9.0%, compared to $21.34 at September 30, 2023. Tangible book value per common share increased to $18.92 at December 31, 2023, or 11.3%, compared to $17.00 at September 30, 2023.

 

 

Accumulated other comprehensive loss improved $15.3 million, or 25.3%, to $45.1 million at December 31, 2023 compared to $60.5 million at September 30, 2023 due to an increase in the fair value of the Bank's available for sale securities portfolio.

 

 

Investar recognized interest recoveries of approximately $1.1 million during the quarter ended December 31, 2023, substantially all of which are attributable to one commercial and industrial oil and gas loan relationship.

 

 

During the fourth quarter, Investar refinanced all of its borrowings under the Federal Reserve’s Bank Term Funding Program (“BTFP”). The weighted average rate was 4.83% at December 31, 2023 compared to 5.11% at September 30, 2023.

 

 

Total deposits increased $46.3 million, or 2.1%, to $2.26 billion at December 31, 2023 compared to $2.21 billion at September 30, 2023

 

 

Investar repurchased 31,766 shares of its common stock through its stock repurchase program at an average price of $10.43 during the quarter ended December 31, 2023, leaving 514,266 shares authorized for repurchase under the program at December 31, 2023. Investar repurchased 222,448 shares of its common stock at an average price of $13.47 during the year ended December 31, 2023

 

1

 

Loans

 

Total loans were $2.21 billion at December 31, 2023an increase of $107.6 million, or 5.1%, compared to September 30, 2023, and an increase of $105.9 million, or 5.0%, compared to December 31, 2022. Excluding the tranche of revolving lines of credit purchased in the fourth quarter of 2023, total loans decreased $19.4 million, or 0.9%, to $2.08 billion at December 31, 2023, compared to $2.10 billion at September 30, 2023 consistent with our strategy to optimize the balance sheet.

 

The following table sets forth the composition of the total loan portfolio as of the dates indicated (dollars in thousands).

 

                           

Linked Quarter Change

 

Year/Year Change

 

Percentage of Total Loans

   

12/31/2023

 

9/30/2023

 

12/31/2022

 

$

 

%

 

$

 

%

 

12/31/2023

 

12/31/2022

Mortgage loans on real estate

                                                                       

Construction and development

  $ 190,371     $ 211,390     $ 201,633     $ (21,019 )     (9.9 )%   $ (11,262 )     (5.6 )%     8.6 %     9.6 %

1-4 Family

    413,786       415,162       401,377       (1,376 )     (0.3 )     12,409       3.1       18.7       19.1  

Multifamily

    105,946       102,974       81,812       2,972       2.9       24,134       29.5       4.8       3.9  

Farmland

    7,651       8,259       12,877       (608 )     (7.4 )     (5,226 )     (40.6 )     0.4       0.6  

Commercial real estate

                                                                       

Owner-occupied

    449,610       440,208       445,148       9,402       2.1       4,462       1.0       20.3       21.1  

Nonowner-occupied

    488,098       501,649       513,095       (13,551 )     (2.7 )     (24,997 )     (4.9 )     22.1       24.4  

Commercial and industrial

    543,421       411,290       435,093       132,131       32.1       108,328       24.9       24.6       20.7  

Consumer

    11,736       12,090       13,732       (354 )     (2.9 )     (1,996 )     (14.5 )     0.5       0.6  

Total loans

  $ 2,210,619     $ 2,103,022     $ 2,104,767     $ 107,597       5.1 %   $ 105,852       5.0 %     100 %     100 %
 

At December 31, 2023, Investar’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $993.0 million, an increase of $141.5 million, or 16.6%, compared to the business lending portfolio of $851.5 million at September 30, 2023, and an increase of $112.8 million, or 12.8%, compared to the business lending portfolio of $880.2 million at December 31, 2022. The increase in the business lending portfolio compared to September 30, 2023 is primarily driven by the purchase of commercial and industrial revolving lines of credit and loan growth in owner-occupied commercial real estate as we remain focused on relationship banking and our strategy to optimize the mix of the portfolio. The increase in the business lending portfolio compared to December 31, 2022 is primarily driven by the purchase of commercial and industrial revolving lines of credit, partially offset by lower loan demand due to higher rates. 

 

Nonowner-occupied loans totaled $488.1 million at December 31, 2023a decrease of $13.6 million, or 2.7%, compared to $501.6 million at September 30, 2023, and a decrease of $25.0 million, or 4.9%, compared to $513.1 million at December 31, 2022. The decrease in nonowner-occupied loans compared to September 30, 2023 and December 31, 2022 is due to loan amortization and aligns with our strategy to optimize the mix of the portfolio.

 

Credit Quality

 

Nonperforming loans were $5.8 million, or 0.26% of total loans, at December 31, 2023an increase of $0.2 million compared to $5.6 million, or 0.27% of total loans, at September 30, 2023, and a decrease of $5.5 million compared to $11.3 million, or 0.54% of total loans, at December 31, 2022. The increase in nonperforming loans compared to September 30, 2023 is mainly attributable to one 1-4 family loan relationship totaling $1.4 million and one construction and development relationship totaling $0.6 million, partially offset by paydowns on one commercial and industrial oil and gas loan relationship during the quarter ended December 31, 2023.

 

On January 1, 2023, Investar adopted FASB ASC Topic 326 “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments” Update No. 2016-13. The ASU, referred to as the Current Expected Credit Loss (“CECL”) standard, requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Upon adoption, Investar recorded a one-time, cumulative effect adjustment to increase the allowance for credit losses by $5.9 million and reduce retained earnings, net of tax, by $4.3 million.

 

The allowance for credit losses was $30.5 million, or 529.3% and 1.38% of nonperforming and total loans, respectively, at December 31, 2023, compared to $29.8 million, or 534.1% and 1.42% of nonperforming and total loans, respectively, at September 30, 2023, and $24.4 million, or 214.9% and 1.16% of nonperforming and total loans, respectively, at December 31, 2022.

 

The provision for credit losses was $0.5 million for the quarter ended December 31, 2023 compared to a negative provision for credit losses of $34,000 and a provision for credit losses of $1.3 million for the quarters ended September 30, 2023 and December 31, 2022, respectively. The provision for credit losses in the quarter ended December 31, 2023 is primarily attributable to loan growth resulting from the purchase of commercial and industrial revolving lines of credit, partially offset by an improvement in the economic forecast. The negative provision for credit losses in the quarter ended September 30, 2023 was primarily due to net recoveries. The provision for credit losses for the quarter ended December 31, 2022 was due to organic loan growth.

 

2

 

Deposits

 

Total deposits at December 31, 2023 were $2.26 billion, an increase of $46.3 million, or 2.1%, compared to $2.21 billion at September 30, 2023, and an increase of $173.4 million, or 8.3%, compared to $2.08 billion at December 31, 2022.

 

The following table sets forth the composition of deposits as of the dates indicated (dollars in thousands).

 

                           

Linked Quarter Change

 

Year/Year Change

 

Percentage of Total Deposits

   

12/31/2023

 

9/30/2023

 

12/31/2022

 

$

 

%

 

$

 

%

 

12/31/2023

 

12/31/2022

Noninterest-bearing demand deposits

  $ 448,752     $ 459,519     $ 580,741     $ (10,767 )     (2.3 )%   $ (131,989 )     (22.7 )%     19.9 %     27.9 %

Interest-bearing demand deposits

    489,604       482,706       565,598       6,898       1.4       (75,994 )     (13.4 )     21.7       27.1  

Money market deposit accounts

    179,366       186,478       208,596       (7,112 )     (3.8 )     (29,230 )     (14.0 )     8.0       10.0  

Savings accounts

    137,606       131,743       155,176       5,863       4.5       (17,570 )     (11.3 )     6.1       7.5  

Brokered time deposits

    269,102       197,747       9,990       71,355       36.1       259,112       2,593.7       11.9       0.5  

Time deposits

    731,297       751,240       562,264       (19,943 )     (2.7 )     169,033       30.1       32.4       27.0  

Total deposits

  $ 2,255,727     $ 2,209,433     $ 2,082,365     $ 46,294       2.1 %   $ 173,362       8.3 %     100 %     100 %

 

The decrease in noninterest-bearing demand deposits and money market deposit accounts at December 31, 2023 compared to September 30, 2023 is primarily due to customers drawing down on their existing deposit accounts. The increase in interest-bearing demand deposits and savings accounts at December 31, 2023 compared to September 30, 2023 is primarily due to organic growth resulting from a deposit campaign. The decrease in time deposits at December 31, 2023 compared to September 30, 2023 is primarily due to a reduced emphasis on time deposits. Time deposits and brokered time deposits increased, and other deposit categories decreased at December 31, 2023 compared to December 31, 2022 primarily due to shifts into interest-bearing deposit products as a result of rising interest rates. Brokered time deposits increased to $269.1 million at December 31, 2023 from $197.7 million and $10.0 million at September 30, 2023 and December 31, 2022, respectively. Investar utilizes brokered time deposits, entirely in denominations of less than $250,000, to secure fixed cost funding and reduce short-term borrowings. We utilized shorter term brokered time deposits, which were laddered to provide flexibility, to fund a portion of the purchase of commercial and industrial revolving lines of credit. At December 31, 2023, the balance of brokered time deposits remained below 10% of total assets, and the remaining weighted average duration is approximately 12 months with a weighted average rate of 5.18%. 

 

Stockholders’ Equity

 

Stockholders’ equity was $226.8 million at December 31, 2023an increase of $18.1 million, or 8.6%, compared to September 30, 2023, and an increase of $11.0 million, or 5.1%, compared to December 31, 2022. The increase in stockholders’ equity compared to September 30, 2023 is primarily attributable to the net income for the quarter and a decrease in accumulated other comprehensive loss due to an increase in the fair value of the Bank’s available for sale securities portfolio. The increase in stockholders’ equity compared to December 31, 2022 is primarily attributable to net income for the last 12 months and a decrease in accumulated other comprehensive loss due to an increase in the fair value of the Bank’s available for sale securities portfolio, partially offset by the cumulative effect adjustment as a result of the adoption of the CECL standard, reflected in retained earnings.

 

3

 

Net Interest Income

 

Net interest income for the fourth quarter of 2023 totaled $18.5 million, an increase of $1.0 million, or 5.9%, compared to the third quarter of 2023, and a decrease of $4.0 million, or 17.9%, compared to the fourth quarter of 2022. Included in net interest income for the quarters ended December 31, 2023September 30, 2023 and December 31, 2022 is $25,000$36,000, and $66,000, respectively, of interest income accretion from the acquisition of loans. Also included in net interest income for the quarters ended December 31, 2023 and September 30, 2023 are interest recoveries of $1.1 million and $0.1 million, respectively. There were no interest recoveries for the quarter ended December 31, 2022.

 

Investar’s net interest margin was 2.72% for the quarter ended December 31, 2023, compared to 2.66% for the quarter ended September 30, 2023 and 3.50% for the quarter ended December 31, 2022. The increase in net interest margin for the quarter ended December 31, 2023 compared to the quarter ended September 30, 2023 was driven by a 35 basis point increase in the yield on interest-earning assets, partially offset by a 33 basis point increase in the overall cost of funds. The decrease in net interest margin for the quarter ended December 31, 2023 compared to the quarter ended December 31, 2022 was driven by a 195 basis point increase in the overall cost of funds, partially offset by an 83 basis point increase in the yield on interest-earning assets.

 

The yield on interest-earning assets was 5.40% for the quarter ended December 31, 2023, compared to 5.05% for the quarter ended September 30, 2023 and 4.57% for the quarter ended December 31, 2022. The increase in the yield on interest-earning assets compared to the quarter ended September 30, 2023 was driven by a 40 basis point increase in the yield on our loan portfolio. The increase in the yield on interest-earning assets compared to the quarter ended December 31, 2022 was driven by an 86 basis point increase in the yield on our loan portfolio and a 22 basis point increase in the yield on the taxable securities portfolio.

 

Exclusive of the interest income accretion from the acquisition of loans and interest recoveries, discussed above, adjusted net interest margin decreased to 2.56% for the quarter ended December 31, 2023, compared to 2.64% for the quarter ended September 30, 2023 and 3.49% for the quarter ended December 31, 2022. The adjusted yield on interest-earning assets was 5.23% for the quarter ended December 31, 2023 compared to 5.03% and 4.56% for the quarters ended September 30, 2023 and December 31, 2022, respectively. Refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics.

 

The cost of deposits increased 44 basis points to 3.17% for the quarter ended December 31, 2023 compared to 2.73% for the quarter ended September 30, 2023 and increased 235 basis points compared to 0.82% for the quarter ended December 31, 2022. The increase in the cost of deposits compared to the quarter ended September 30, 2023 resulted from both a higher average balance and an increase in rates paid on brokered time deposits, an increase in rates paid on time deposits, and an increase in rates paid on interest-bearing demand deposits and savings deposits. The increase in the cost of deposits compared to the quarter ended December 31, 2022 resulted from both a higher average balance and an increase in rates paid on time deposits and brokered time deposits and an increase in rates paid on interest-bearing demand deposits and savings deposits, partially offset by a lower average balance of interest-bearing demand deposits and savings deposits.

 

The cost of short-term borrowings decreased 13 basis points to 4.84% for the quarter ended December 31, 2023 compared to 4.97% for the quarter ended September 30, 2023 and increased 95 basis points compared to 3.89% for the quarter ended December 31, 2022. Beginning in the second quarter of 2023, the Bank began utilizing the BTFP to secure fixed rate funding for up to a one-year term and reduce short-term Federal Home Loan Bank (“FHLB”) advances, which are priced daily. The Bank utilized this source of funding due to its lower rate as compared to FHLB advances, the ability to prepay the obligations without penalty, and as a means to lock in funding. The decrease in the cost of short-term borrowings compared to the quarter ended September 30, 2023 resulted primarily from both a lower average balance and a decrease in the cost of short-term borrowings under the BTFP and the increased utilization of short-term repurchase agreements. The increase in the cost of short-term borrowings compared to the quarter ended December 31, 2022 resulted from an increase in the Federal Reserve’s federal funds rate, which drives the costs of short-term borrowings under the BTFP and short-term advances from the FHLB. 

 

The overall costs of funds for the quarter ended December 31, 2023 increased 33 basis points to 3.40% compared to 3.07% for the quarter ended September 30, 2023 and increased 195 basis points compared to 1.45% for the quarter ended December 31, 2022. The increase in the cost of funds for the quarter ended December 31, 2023 compared to the quarter ended September 30, 2023 resulted from both a higher average balance and an increase in the cost of deposits, partially offset by both a lower average balance and a decrease in the cost of short-term borrowings. The increase in the cost of funds for the quarter ended December 31, 2023 compared to the quarter ended December 31, 2022 resulted from both a higher average balance and an increase in the cost of deposits and an increase in the cost of short-term borrowings, partially offset by a lower average balance of short-term borrowings.

 

4

 

Noninterest Income

 

Noninterest income for the fourth quarter of 2023 totaled $1.8 million, an increase of $0.1 million, or 7.2%, compared to the third quarter of 2023 and a decrease of $1.7 million, or 49.0%, compared to the fourth quarter of 2022.

 

The increase in noninterest income compared to the quarter ended September 30, 2023 is driven by a $0.3 million decrease in loss on sale or disposition of fixed assets and a $0.1 million increase in other operating income, partially offset by a $0.3 million loss on call or sale of investment securities recorded in the fourth quarter of 2023. The increase in other operating income was primarily attributable to a $0.1 million increase in the change in the net asset value of other investments. 

 

The decrease in noninterest income compared to the quarter ended December 31, 2022 is primarily due to the $1.4 million in nontaxable income from insurance proceeds recorded in the fourth quarter of 2022 related to an insurance policy for the former chief financial officer of the Company and the Bank and a $0.3 million loss on call or sale of investment securities recorded in the fourth quarter of 2023. 

 

Noninterest Expense

 

Noninterest expense for the fourth quarter of 2023 totaled $15.4 million, a decrease of $0.3 million, or 2.1%, compared to the third quarter of 2023, and an increase of $1.5 million, or 11.0%, compared to the fourth quarter of 2022

 

The decrease in noninterest expense for the quarter ended December 31, 2023 compared to the quarter ended September 30, 2023 was driven by a $0.5 million decrease in salaries and employee benefits, partially offset by a $0.1 million increase in occupancy expense and a $0.1 million increase in other operating expenses. The decrease in salaries and employee benefits was primarily due to decreases in incentive-based compensation, severance, and health insurance claims. The increase in occupancy expense is primarily due to higher maintenance costs. Other operating expenses include, among other things, software expense, other real estate expense, Federal Deposit Insurance Corporation assessments, bank security, and bank shares tax.

 

The increase in noninterest expense for the quarter ended December 31, 2023 compared to the quarter ended December 31, 2022 was driven by a $1.5 million increase in salaries and employee benefits and a $0.3 million increase in other operating expenses, partially offset by a $0.2 million decrease in depreciation and amortization. The increase in salaries and employee benefits was primarily due to an employee retention credit, net of consulting fees, of $2.3 million recorded in the fourth quarter of 2022, partially offset by $0.6 million in severance recorded in the fourth quarter of 2022 pursuant to a separation agreement with the former chief financial officer of the Company and the Bank and a $0.3 million decrease in incentive-based compensation. The increase in other operating expenses is primarily due to an increase in bank shares tax, partially offset by a decrease in collection and repossession expenses, the majority of which were related to one loan relationship impaired as a result of Hurricane Ida.

 

5

 

Taxes

 

Investar recorded income tax expense of $0.8 million for the quarter ended December 31, 2023, which equates to an effective tax rate of 18.1%an increase from the effective tax rates of 17.4% and 17.5% for the quarters ended September 30, 2023 and December 31, 2022, respectively.

 

Basic and Diluted Earnings Per Common Share

 

Investar reported basic and diluted earnings per common share of $0.36 for the quarter ended December 31, 2023, compared to basic and diluted earnings per common share of $0.28 for the quarter ended September 30, 2023, and basic and diluted earnings per common share of $0.90 and $0.88, respectively, for the quarter ended December 31, 2022.

 

About Investar Holding Corporation

 

Investar, headquartered in Baton Rouge, Louisiana, provides full banking services, excluding trust services, through its wholly-owned banking subsidiary, Investar Bank, National Association. The Bank currently operates 28 branch locations serving Louisiana, Texas, and Alabama. At December 31, 2023, the Bank had 326 full-time equivalent employees and total assets of $2.8 billion.

 

Non-GAAP Financial Measures

 

This press release 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,” “tangible assets,” “tangible equity to tangible assets,” “tangible book value per common share,” “core noninterest income,” “core earnings before noninterest expense,” “core noninterest expense,” “core earnings before income tax expense,” “core income tax expense,” “core earnings,” “core efficiency ratio,” “core return on average assets,” “core return on average equity,” “core basic earnings per share,” and “core diluted earnings per share.” We also present certain average loan, yield, net interest income and net interest margin data adjusted to show the effects of excluding interest recoveries and interest income accretion from the acquisition of loans. Management believes these non-GAAP financial measures provide information useful to investors in understanding Investar’s financial results, and Investar believes that its presentation, together with the accompanying reconciliations, provide a more complete understanding of factors and trends affecting Investar’s business and allow investors to view performance in a manner similar to management, the entire financial services sector, bank stock analysts and bank regulators. These non-GAAP measures should not be considered a substitute for GAAP basis measures and results, and Investar strongly encourages investors to review its consolidated financial statements in their entirety and not to rely on any single financial measure. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. A reconciliation of the non-GAAP financial measures disclosed in this press release to the comparable GAAP financial measures is included at the end of the financial statement tables.

 

6

 

Forward-Looking and Cautionary Statements

 

This press release 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 forward-looking statements by terminology such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “could,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” or the negative version of those words or other comparable words.

 

Any forward-looking statements contained in this press release are based on the historical performance of Investar and its subsidiaries or on Investar’s current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by Investar that the future plans, estimates or expectations by Investar will be achieved. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to Investar’s operations, financial results, financial condition, business prospects, growth strategy and liquidity. If one or more of these or other risks or uncertainties materialize, or if Investar’s underlying assumptions prove to be incorrect, Investar’s actual results may vary materially from those indicated in these statements. Investar does not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future developments or otherwise. A number of important factors could cause actual results to differ materially from those indicated by the forward-looking statements. These factors include, but are not limited to, the following, any one or more of which could materially affect the outcome of future events:

 

 

the significant risks and uncertainties for our business, results of operations and financial condition, as well as our regulatory capital and liquidity ratios and other regulatory requirements caused by business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;

 

 

changes in inflation, interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing;

 

 

our ability to successfully execute our near-term strategy to pivot from primarily a growth strategy to a strategy primarily focused on consistent, quality earnings through the optimization of our balance sheet, and our ability to successfully execute a long-term growth strategy;

 

 

our ability to achieve organic loan and deposit growth, and the composition of that growth;

 

 

our ability to identify and enter into agreements to combine with attractive acquisition candidates, finance acquisitions, complete acquisitions after definitive agreements are entered into, and successfully integrate and grow acquired operations;

 

 

our adoption on January 1, 2023 of ASU 2016-13, and inaccuracy of the assumptions and estimates we make in establishing reserves for credit losses and other estimates;

 

 

changes in the quality or composition of our loan or investment portfolios, including adverse developments in borrower industries or in the repayment ability of individual borrowers;

 

 

a reduction in liquidity, including as a result of a reduction in the amount of deposits we hold or other sources of liquidity, which may be caused by, among other things, disruptions in the banking industry similar to those that occurred in early 2023 that caused bank depositors to move uninsured deposits to other banks or alternative investments outside the banking industry;

 

 

changes in the quality and composition of, and changes in unrealized losses in, our investment portfolio, including whether we may have to sell securities before their recovery of amortized cost basis and realize losses;

 

 

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 retain qualified personnel;

 

 

the concentration of our business within our geographic areas of operation in Louisiana, Texas and Alabama;

 

 

increasing costs of complying with new and potential future regulations;

 

 

new or increasing geopolitical tensions, including resulting from wars in Ukraine and Israel and surrounding areas;

 

 

the emergence or worsening of widespread public health challenges or pandemics including COVID-19;

 

 

concentration of credit exposure;

 

 

any deterioration in asset quality and higher loan charge-offs, and the time and effort necessary to resolve problem assets;

 

 

fluctuations in the price of oil and natural gas;

 

 

data processing system failures and errors;

 

 

risks associated with our digital transformation process, including increased risks of cyberattacks and other security breaches and challenges associated with addressing the increased prevalence of artificial intelligence;

 

 

risks of losses resulting from increased fraud attacks against us and others in the financial services industry;

 

 

potential impairment of our goodwill and other intangible assets; and

 

 

hurricanes, tropical storms, tropical depressions, floods, winter storms, droughts and other adverse weather events, all of which have affected Investar’s market areas from time to time; other natural disasters; oil spills and other man-made disasters; acts of terrorism; other international or domestic calamities; acts of God; and other matters beyond our control.

 

7

 

These factors should not be construed as exhaustive. Additional information on these and other risk factors can be found in Part I Item 1A. “Risk Factors” and in the “Special Note Regarding Forward-Looking Statements” in Part II Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Investar’s Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) and in Part II Item 1A. “Risk Factors” in Investar’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2023, June 30, 2023, and September 30, 2023 filed with the SEC.

 

For further information contact:

 

Investar Holding Corporation

John Campbell

Executive Vice President and Chief Financial Officer

(225) 227-2215

John.Campbell@investarbank.com

 

8

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

   

As of and for the three months ended

   

12/31/2023

 

9/30/2023

 

12/31/2022

 

Linked Quarter

 

Year/Year

EARNINGS DATA

                                       

Total interest income

  $ 36,668     $ 33,160     $ 29,372       10.6 %     24.8 %

Total interest expense

    18,177       15,691       6,853       15.8       165.2  

Net interest income

    18,491       17,469       22,519       5.9       (17.9 )

Provision for credit losses

    486       (34 )     1,268       1,529.4       (61.7 )

Total noninterest income

    1,755       1,637       3,441       7.2       (49.0 )

Total noninterest expense

    15,440       15,774       13,913       (2.1 )     11.0  

Income before income tax expense

    4,320       3,366       10,779       28.3       (59.9 )

Income tax expense

    782       585       1,881       33.7       (58.4 )

Net income

  $ 3,538     $ 2,781     $ 8,898       27.2       (60.2 )
                                         

AVERAGE BALANCE SHEET DATA

                                       

Total assets

  $ 2,817,388     $ 2,736,358     $ 2,677,604       3.0 %     5.2 %

Total interest-earning assets

    2,694,474       2,603,837       2,552,448       3.5       5.6  

Total loans

    2,214,916       2,072,617       2,033,117       6.9       8.9  

Total interest-bearing deposits

    1,824,318       1,707,848       1,482,268       6.8       23.1  

Total interest-bearing liabilities

    2,119,724       2,026,587       1,872,870       4.6       13.2  

Total deposits

    2,279,211       2,170,373       2,072,288       5.0       10.0  

Total stockholders’ equity

    212,454       220,393       211,585       (3.6 )     0.4  
                                         

PER SHARE DATA

                                       

Earnings:

                                       

Basic earnings per common share

  $ 0.36     $ 0.28     $ 0.90       28.6 %     (60.0 )%

Diluted earnings per common share

    0.36       0.28       0.88       28.6       (59.1 )

Core earnings(1):

                                       

Core basic earnings per common share(1)

    0.39       0.33       0.63       18.2       (38.1 )

Core diluted earnings per common share(1)

    0.39       0.33       0.62       18.2       (37.1 )

Book value per common share

    23.26       21.34       21.79       9.0       6.7  

Tangible book value per common share(1)

    18.92       17.00       17.43       11.3       8.5  

Common shares outstanding

    9,748,067       9,779,688       9,901,847       (0.3 )     (1.6 )

Weighted average common shares outstanding - basic

    9,754,617       9,814,727       9,899,192       (0.6 )     (1.5 )

Weighted average common shares outstanding - diluted

    9,763,296       9,817,607       10,032,446       (0.6 )     (2.7 )
                                         

PERFORMANCE RATIOS

                                       

Return on average assets

    0.50 %     0.40 %     1.32 %     25.0 %     (62.1 )%

Core return on average assets(1)

    0.54       0.47       0.92       14.9       (41.3 )

Return on average equity

    6.61       5.01       16.69       31.9       (60.4 )

Core return on average equity(1)

    7.16       5.87       11.66       22.0       (38.6 )

Net interest margin

    2.72       2.66       3.50       2.3       (22.3 )

Net interest income to average assets

    2.60       2.53       3.34       2.8       (22.2 )

Noninterest expense to average assets

    2.17       2.29       2.06       (5.2 )     5.3  

Efficiency ratio(2)

    76.26       82.56       53.59       (7.6 )     42.3  

Core efficiency ratio(1)

    74.85       79.98       63.35       (6.4 )     18.1  

Dividend payout ratio

    27.78       35.71       10.56       (22.2 )     163.1  

Net charge-offs to average loans

          (0.01 )           100.0        

 

(1) Non-GAAP financial measure. See reconciliation.

(2) Efficiency ratio represents noninterest expense divided by the sum of net interest income (before provision for credit losses) and noninterest income.

 

9

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Unaudited)

 

   

As of and for the three months ended

   

12/31/2023

 

9/30/2023

 

12/31/2022

 

Linked Quarter

 

Year/Year

ASSET QUALITY RATIOS

                                       

Nonperforming assets to total assets

    0.36 %     0.36 %     0.44 %     %     (18.2 )%

Nonperforming loans to total loans

    0.26       0.27       0.54       (3.7 )     (51.9 )

Allowance for credit losses to total loans

    1.38       1.42       1.16       (2.8 )     19.0  

Allowance for credit losses to nonperforming loans

    529.32       534.08       214.92       (0.9 )     146.3  
                                         

CAPITAL RATIOS

                                       

Investar Holding Corporation:

                                       

Total equity to total assets

    8.06 %     7.48 %     7.84 %     7.8 %     2.8 %

Tangible equity to tangible assets(1)

    6.65       6.05       6.37       9.9       4.4  

Tier 1 leverage capital

    8.35       8.53       8.53       (2.1 )     (2.1 )

Common equity tier 1 capital(2)

    9.51       9.40       9.79       1.2       (2.9 )

Tier 1 capital(2)

    9.90       9.79       10.21       1.1       (3.0 )

Total capital(2)

    12.99       12.87       13.25       0.9       (2.0 )

Investar Bank:

                                       

Tier 1 leverage capital

    9.81       10.05       9.89       (2.4 )     (0.8 )

Common equity tier 1 capital(2)

    11.64       11.53       11.83       1.0       (1.6 )

Tier 1 capital(2)

    11.64       11.53       11.83       1.0       (1.6 )

Total capital(2)

    12.89       12.78       12.92       0.9       (0.2 )

 

(1) Non-GAAP financial measure. See reconciliation.

(2) Estimated for December 31, 2023.

 

10

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

(Unaudited)

 

   

December 31, 2023

 

September 30, 2023

 

December 31, 2022

ASSETS

                       

Cash and due from banks

  $ 28,285     $ 27,084     $ 30,056  

Interest-bearing balances due from other banks

    3,724       36,584       10,010  

Federal funds sold

                193  

Cash and cash equivalents

    32,009       63,668       40,259  
                         

Available for sale securities at fair value (amortized cost of $419,283, $481,296, and $467,316, respectively)

    361,918       404,485       405,167  

Held to maturity securities at amortized cost (estimated fair value of $20,513, $19,815, and $7,922, respectively)

    20,472       20,044       8,305  

Loans

    2,210,619       2,103,022       2,104,767  

Less: allowance for credit losses

    (30,540 )     (29,778 )     (24,364 )

Loans, net

    2,180,079       2,073,244       2,080,403  

Equity securities

    14,597       13,334       27,254  

Bank premises and equipment, net of accumulated depreciation of $19,476, $21,646, and $22,025, respectively

    44,183       44,764       49,587  

Other real estate owned, net

    4,438       4,438       682  

Accrued interest receivable

    14,366       13,633       12,749  

Deferred tax asset

    16,910       20,989       16,438  

Goodwill and other intangible assets, net

    42,320       42,496       43,147  

Bank-owned life insurance

    58,797       58,425       57,379  

Other assets

    25,066       30,013       12,437  

Total assets

  $ 2,815,155     $ 2,789,533     $ 2,753,807  
                         

LIABILITIES

                       

Deposits

                       

Noninterest-bearing

  $ 448,752     $ 459,519     $ 580,741  

Interest-bearing

    1,806,975       1,749,914       1,501,624  

Total deposits

    2,255,727       2,209,433       2,082,365  

Advances from Federal Home Loan Bank

    23,500       23,500       387,000  

Borrowings under Bank Term Funding Program

    212,500       235,800        

Repurchase agreements

    8,633       13,930        

Subordinated debt, net of unamortized issuance costs

    44,320       44,296       44,225  

Junior subordinated debt

    8,630       8,602       8,515  

Accrued taxes and other liabilities

    35,077       45,255       15,920  

Total liabilities

    2,588,387       2,580,816       2,538,025  
                         

STOCKHOLDERS’ EQUITY

                       

Preferred stock, no par value per share; 5,000,000 shares authorized

                 

Common stock, $1.00 par value per share; 40,000,000 shares authorized; 9,748,067, 9,779,688, and 9,901,847 shares issued and outstanding, respectively

    9,748       9,780       9,902  

Surplus

    145,456       145,241       146,587  

Retained earnings

    116,711       114,148       108,206  

Accumulated other comprehensive loss

    (45,147 )     (60,452 )     (48,913 )

Total stockholders’ equity

    226,768       208,717       215,782  

Total liabilities and stockholders’ equity

  $ 2,815,155     $ 2,789,533     $ 2,753,807  

 

11

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Amounts in thousands, except share data)

(Unaudited)

 

   

For the three months ended

 

For the twelve months ended

    December 31, 2023   September 30, 2023   December 31, 2022   December 31, 2023   December 31, 2022

INTEREST INCOME

                                       

Interest and fees on loans

  $ 33,128     $ 28,892     $ 25,958     $ 117,892     $ 93,373  

Interest on investment securities

                                       

Taxable

    2,970       3,055       2,978       12,372       9,796  

Tax-exempt

    253       216       108       693       482  

Other interest income

    317       997       328       2,244       918  

Total interest income

    36,668       33,160       29,372       133,201       104,569  
                                         

INTEREST EXPENSE

                                       

Interest on deposits

    14,584       11,733       3,052       42,072       6,250  

Interest on borrowings

    3,593       3,958       3,801       16,609       8,534  

Total interest expense

    18,177       15,691       6,853       58,681       14,784  

Net interest income

    18,491       17,469       22,519       74,520       89,785  
                                         

Provision for credit losses

    486       (34 )     1,268       (2,000 )     2,922  

Net interest income after provision for credit losses

    18,005       17,503       21,251       76,520       86,863  
                                         

NONINTEREST INCOME

                                       

Service charges on deposit accounts

    798       806       799       3,090       3,090  

(Loss) gain on call or sale of investment securities, net

    (322 )                 (323 )     6  

Loss on sale or disposition of fixed assets, net

    (39 )     (367 )     (67 )     (1,323 )     (258 )

Gain (loss) on sale of other real estate owned, net

          23       2       (114 )     9  

Swap termination fee income

                            8,077  

Gain on sale of loans

                      75       37  

Servicing fees and fee income on serviced loans

    2       2       13       14       74  

Interchange fees

    417       399       492       1,697       2,036  

Income from bank owned life insurance

    371       357       346       1,417       1,305  

Change in the fair value of equity securities

    24       22       12       (65 )     (90 )

Income from insurance proceeds

                1,384             1,384  

Other operating income

    504       395       460       2,070       2,680  

Total noninterest income

    1,755       1,637       3,441       6,538       18,350  

Income before noninterest expense

    19,760       19,140       24,692       83,058       105,213  
                                         

NONINTEREST EXPENSE

                                       

Depreciation and amortization

    909       900       1,071       3,780       4,435  

Salaries and employee benefits

    9,003       9,463       7,545       37,143       34,974  

Occupancy

    706       618       713       2,994       2,915  

Data processing

    892       888       1,006       3,482       3,600  

Marketing

    68       83       74       302       262  

Professional fees

    461       516       436       1,933       1,774  

Loss on early extinguishment of subordinated debt

                            222  

Other operating expenses

    3,401       3,306       3,068       12,996       12,683  

Total noninterest expense

    15,440       15,774       13,913       62,630       60,865  

Income before income tax expense

    4,320       3,366       10,779       20,428       44,348  

Income tax expense

    782       585       1,881       3,750       8,639  

Net income

  $ 3,538     $ 2,781     $ 8,898     $ 16,678     $ 35,709  
                                         

EARNINGS PER SHARE

                                       

Basic earnings per common share

  $ 0.36     $ 0.28     $ 0.90     $ 1.69     $ 3.54  

Diluted earnings per common share

    0.36       0.28       0.88       1.69       3.50  

Cash dividends declared per common share

    0.10       0.10       0.095       0.395       0.365  

 

12

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

   

For the three months ended

   

December 31, 2023

 

September 30, 2023

 

December 31, 2022

           

Interest

                 

Interest

                 

Interest

       
   

Average

 

Income/

         

Average

 

Income/

         

Average

 

Income/

       
   

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

Assets

                                                                       

Interest-earning assets:

                                                                       

Loans

  $ 2,214,916     $ 33,128       5.93 %   $ 2,072,617     $ 28,892       5.53 %   $ 2,033,117     $ 25,958       5.07 %

Securities:

                                                                       

Taxable

    427,746       2,970       2.75       442,556       3,055       2.74       466,881       2,978       2.53  

Tax-exempt

    28,807       253       3.50       25,493       216       3.35       16,958       108       2.52  

Interest-bearing balances with banks

    23,005       317       5.46       63,171       997       6.26       35,492       328       3.67  

Total interest-earning assets

    2,694,474       36,668       5.40       2,603,837       33,160       5.05       2,552,448       29,372       4.57  

Cash and due from banks

    27,214                       27,734                       33,363                  

Intangible assets

    42,414                       42,595                       43,262                  

Other assets

    83,447                       92,108                       71,972                  

Allowance for credit losses

    (30,161 )                     (29,916 )                     (23,441 )                

Total assets

  $ 2,817,388                     $ 2,736,358                     $ 2,677,604                  
                                                                         

Liabilities and stockholders’ equity

                                                                       

Interest-bearing liabilities:

                                                                       

Deposits:

                                                                       

Interest-bearing demand deposits

  $ 668,277     $ 2,873       1.71 %   $ 668,732     $ 2,462       1.46 %   $ 822,871     $ 1,084       0.52 %

Savings deposits

    136,045       318       0.93       130,262       179       0.54       160,046       18       0.04  

Brokered time deposits

    275,552       3,590       5.17       159,244       1,990       4.96       326       4       4.80  

Time deposits

    744,444       7,803       4.16       749,610       7,102       3.76       499,025       1,946       1.55  

Total interest-bearing deposits

    1,824,318       14,584       3.17       1,707,848       11,733       2.73       1,482,268       3,052       0.82  

Short-term borrowings

    218,977       2,672       4.84       242,363       3,039       4.97       284,384       2,785       3.89  

Long-term debt

    76,429       921       4.78       76,376       919       4.77       106,218       1,016       3.79  

Total interest-bearing liabilities

    2,119,724       18,177       3.40       2,026,587       15,691       3.07       1,872,870       6,853       1.45  

Noninterest-bearing deposits

    454,893                       462,525                       590,020                  

Other liabilities

    30,317                       26,853                       3,129                  

Stockholders’ equity

    212,454                       220,393                       211,585                  

Total liability and stockholders’ equity

  $ 2,817,388                     $ 2,736,358                     $ 2,677,604                  

Net interest income/net interest margin

          $ 18,491       2.72 %           $ 17,469       2.66 %           $ 22,519       3.50 %

 

13

INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

   

For the twelve months ended

   

December 31, 2023

 

December 31, 2022

           

Interest

                 

Interest

       
   

Average

 

Income/

         

Average

 

Income/

       
   

Balance

 

Expense

 

Yield/ Rate

 

Balance

 

Expense

 

Yield/ Rate

Assets

                                               

Interest-earning assets:

                                               

Loans

  $ 2,123,234     $ 117,892       5.55 %   $ 1,937,255     $ 93,373       4.82 %

Securities:

                                               

Taxable

    447,442       12,372       2.76       442,767       9,796       2.21  

Tax-exempt

    22,051       693       3.14       18,746       482       2.57  

Interest-bearing balances with banks

    38,561       2,244       5.82       45,542       918       2.02  

Total interest-earning assets

    2,631,288       133,201       5.06       2,444,310       104,569       4.28  

Cash and due from banks

    29,142                       34,327                  

Intangible assets

    42,695                       43,588                  

Other assets

    86,712                       103,711                  

Allowance for credit losses

    (30,242 )                     (22,093 )                

Total assets

  $ 2,759,595                     $ 2,603,843                  
                                                 

Liabilities and stockholders’ equity

                                               

Interest-bearing liabilities:

                                               

Deposits:

                                               

Interest-bearing demand deposits

  $ 688,786     $ 8,941       1.30 %   $ 900,405     $ 2,411       0.27 %

Brokered demand deposits

                      1,773       7       0.42  

Savings deposits

    134,817       534       0.40       173,460       79       0.05  

Brokered time deposits

    163,873       8,224       5.02       82       4       4.80  

Time deposits

    699,648       24,373       3.48       427,416       3,749       0.88  

Total interest-bearing deposits

    1,687,124       42,072       2.49       1,503,136       6,250       0.42  

Short-term borrowings

    260,730       12,845       4.93       134,192       4,093       3.05  

Long-term debt

    82,844