false 0001602658 0001602658 2022-01-27 2022-01-27
 

 
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 27, 2022
 

 
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 (see General Instruction A.2. below):
 
 
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. ☐
 

 
 

 
Item 2.02
Results of Operations and Financial Condition
 
On January 27, 2022, Investar Holding Corporation (the “Company”), the holding company of Investar Bank, National Association (the “Bank”), issued a press release reporting fourth quarter 2021 results. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.
 
The information contained in Item 2.02, including Exhibit 99.1 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
 
104
 
The cover page of Investar Holding Corporation’s Form 8-K is formatted in Inline XBRL.
 
 

 
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 28, 2022
By:
/s/ John J. D’Angelo
   
John J. D’Angelo
   
President and Chief Executive Officer
 
 

Exhibit 99.1

 

For Immediate Release

 

Investar Holding Corporation Announces 2021 Fourth Quarter Results

 

 

BATON ROUGE, LA / ACCESSWIRE / January 27, 2022 / 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, 2021. Investar reported net income of $6.9 million, or $0.67 per diluted common share, for the fourth quarter of 2021, compared to a net loss of $10.0 million, or $0.95 per diluted common share, for the quarter ended September 30, 2021, and net income of $4.5 million, or $0.42 per diluted common share, for the quarter ended December 31, 2020

 

On a non-GAAP basis, core earnings (loss) per diluted common share for the fourth quarter of 2021 were $0.56 compared to ($1.06) for the third quarter of 2021 and $0.39 for the fourth quarter of 2020. Core earnings (loss) exclude certain non-operating items including, but not limited to, gain on sale of investment securities, change in the fair value of equity securities, and acquisition expense (refer to the Reconciliation of Non-GAAP Financial Measures tables for a reconciliation of GAAP to non-GAAP metrics).

 

Investar Holding Corporation President and Chief Executive Officer John D’Angelo said: 

 

“Despite the lingering effects of the pandemic and the impacts of Hurricane Ida on some of our market areas in the third quarter, Investar had a strong finish to 2021, and we are optimistic about the future. We recorded record net income of $6.9 million in the fourth quarter, and continued to see our net interest margin improve as we experienced a further reduction in our cost of deposits and utilized some of our excess liquidity to invest in securities. While the balance of our PPP loans continues to decline, we had organic loan growth of $9.9 million, or 0.5%, during the fourth quarter. We expect loan demand to continue to improve throughout 2022 and anticipate 5% loan growth for the year.

 

We remain focused on improving our core metrics. We closed an additional branch, located in our Texas market, in the fourth quarter, and are continually evaluating opportunities to improve our branch network efficiency and further reduce costs. While challenges remain, we are identifying opportunities and executing strategies we believe are sustainable and add long-term value for our shareholders.”

 

Fourth Quarter Highlights

 

 

Cost of deposits decreased 13 basis points to 0.30% for the quarter ended December 31, 2021 compared to 0.43% for the quarter ended September 30, 2021 and decreased 46 basis points compared to 0.76% for the quarter ended December 31, 2020. Our overall cost of funds decreased 11 and 43 basis points to 0.52% for the quarter ended December 31, 2021 compared to 0.63% and 0.95% for the quarters ended September 30, 2021 and December 31, 2020, respectively.

 

 

 

 

Net interest margin increased to 3.57% for the quarter ended December 31, 2021 compared to 3.44% for the quarter ended September 30, 2021 and 3.55% for the quarter ended December 31, 2020.

 

 

Deposit mix improved during the fourth quarter of 2021. Noninterest-bearing deposits as a percentage of total deposits increased to 27.6% at December 31, 2021 compared to 25.9% at September 30, 2021 and 23.7% at December 31, 2020. Time deposits as a percentage of total deposits increased slightly to 21.1% at December 31, 2021, compared to 21.0% at September 30, 2021, and decreased compared to 28.4% at December 31, 2020.

 

 

Total loans decreased $8.6 million, or 0.5% to $1.87 billion at December 31, 2021 compared to $1.88 billion at September 30, 2021. Excluding PPP loans with balances of $23.3 million and $41.9 million at December 31, 2021 and September 30, 2021, respectively, total loans increased $9.9 million, or 0.5% (2% annualized) to $1.85 billion at December 31, 2021 compared to $1.84 billion at September 30, 2021.

 

 

Owner-occupied commercial real estate loans increased $27.3 million, or 6.3%, to $460.2 million at December 31, 2021 compared to $432.9 million at September 30, 2021

 

 

Book value per common share increased to $23.45 at December 31, 2021, or 2.6% (10.4% annualized), compared to $22.85 at September 30, 2021. Tangible book value per common share increased to $19.20 at December 31, 2021, or 3.4% (13.6% annualized), compared to $18.57 at September 30, 2021.  

 

 

Return on average assets improved to 1.06% for the quarter ended December 31, 2021 compared to (1.47)% for the quarter ended September 30, 2021 and 0.78% for the quarter ended December 31, 2020. Core return on average assets also improved to 0.89% for the quarter ended December 31, 2021 compared to (1.63)% for the quarter ended September 30, 2021 and 0.71% for the quarter ended December 31, 2020.

 

 

Efficiency ratio improved to 60.10% for the quarter ended December 31, 2021 compared to 64.33% for the quarter ended September 30, 2021. Core efficiency ratio also improved to 66.54% for the quarter ended December 31, 2021 compared to 67.17% for the quarter ended September 30, 2021.

 

 

Loans

 

Total loans were $1.87 billion at December 31, 2021a decrease of $8.6 million, or 0.5%, compared to September 30, 2021, and an increase of $11.7 million, or 0.6%, compared to December 31, 2020

 

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

 
   

12/31/2021

   

9/30/2021

   

12/31/2020

   

$

   

%

   

$

   

%

   

12/31/2021

   

12/31/2020

 

Mortgage loans on real estate

                                                                       

Construction and development

  $ 203,204     $ 215,247     $ 206,011     $ (12,043 )     (5.6 )%   $ (2,807 )     (1.4 )%     10.9 %     11.1 %

1-4 Family

    364,307       362,249       339,525       2,058       0.6       24,782       7.3       19.5       18.2  

Multifamily

    59,570       58,972       60,724       598       1.0       (1,154 )     (1.9 )     3.2       3.3  

Farmland

    20,128       21,376       26,547       (1,248 )     (5.8 )     (6,419 )     (24.2 )     1.1       1.4  

Commercial real estate

                                                                       

Owner-occupied

    460,205       432,898       375,421       27,307       6.3       84,784       22.6       24.6       20.2  

Nonowner-occupied

    436,172       435,575       436,974       597       0.1       (802 )     (0.2 )     23.3       23.5  

Commercial and industrial

    310,831       335,008       394,497       (24,177 )     (7.2 )     (83,666 )     (21.2 )     16.6       21.2  

Consumer

    17,595       19,333       20,619       (1,738 )     (9.0 )     (3,024 )     (14.7 )     0.9       1.1  

Total loans

    1,872,012       1,880,658       1,860,318       (8,646 )     (0.5 )%     11,694       0.6 %     100 %     100 %

Loans held for sale

    620       300             320       106.7       620                        

Total gross loans

  $ 1,872,632     $ 1,880,958     $ 1,860,318     $ (8,326 )     (0.4 )%   $ 12,314       0.7 %                

 

In the second quarter of 2020, the Bank began participating as a lender in the Paycheck Protection Program (“PPP”) as established by the CARES Act. The PPP loans are generally 100% guaranteed by the Small Business Administration (“SBA”), have an interest rate of 1%, and are eligible to be forgiven based on certain criteria, with the SBA remitting any applicable forgiveness amount to the lender. At December 31, 2021, the balance of the Bank’s PPP loans, which is included in the commercial and industrial portfolio, was $23.3 million, compared to $41.9 million at September 30, 2021 and $94.5 million at December 31, 2020. Eighty-seven percent of the total number of PPP loans we have originated have principal balances of $150,000 or less. At December 31, 2021, approximately 86% of the total balance of PPP loans originated has been forgiven by the SBA or paid off by the customer. 
 
On April 1, 2021, we completed the acquisition of Cheaha Financial Group, Inc. (“Cheaha”) and its wholly-owned subsidiary, Cheaha Bank, in Oxford, Alabama. Excluding loans acquired from Cheaha on April 1, 2021 with an aggregate balance of $96.3 million and $110.1 million at December 31, 2021 and September 30, 2021, respectively, and PPP loans with a total balance of $23.3 million ($0.3 million acquired from Cheaha), $41.9 million ($1.4 million acquired from Cheaha), and $94.5 million at December 31, 2021, September 30, 2021, and December 31, 2020, respectively, total loans increased $22.5 million, or 1.3% (5.2% annualized), compared to September 30, 2021 and decreased $13.2 million, or 0.7%, compared to December 31, 2020.

At December 31, 2021, Investar’s total business lending portfolio, which consists of loans secured by owner-occupied commercial real estate properties and commercial and industrial loans, was $771.0 million, an increase of $3.1 million, or 0.4%, compared to the business lending portfolio of $767.9 million at September 30, 2021, and an increase of $1.1 million, or 0.1%, compared to the business lending portfolio of $769.9 million at December 31, 2020. The increase in the business lending portfolio compared to September 30, 2021 and December 31, 2020 is primarily driven by loan growth in owner-occupied commercial real estate as we remain focused on relationship banking and growing our commercial loan portfolios. The increases due to loan growth in owner-occupied commercial real estate were partially offset by forgiveness of PPP loans, reflected in the commercial and industrial portfolio. Excluding all PPP loans and other business lending portfolio loans acquired from Cheaha of $16.9 million and $17.9 million at December 31, 2021 and September 30, 2021, respectively, Investar’s total adjusted business lending portfolio was $730.8 million, an increase of $22.7 million, or 3.2%, compared to the adjusted business lending portfolio of $708.1 million at September 30, 2021, and an increase of $55.4 million, or 8.2%, compared to the adjusted business lending portfolio of $675.4 million at December 31, 2020.

Our loan portfolio includes loans to businesses in certain industries that may be more significantly affected by the pandemic than others. These loans, including loans related to oil and gas, food services, hospitality, and entertainment, represent approximately 5.6% of our total portfolio, or 5.4% excluding PPP loans, at December 31, 2021, compared to 5.5% of our total portfolio, or 5.2% excluding PPP loans, at September 30, 2021 and 6.6% of our total portfolio, or 5.7% excluding PPP loans, at December 31, 2020 as shown in the table below.

 

Industry

 

Percentage of Loan Portfolio December 31, 2021

   

Percentage of Loan Portfolio December 31, 2021 (excluding PPP loans)

   

Percentage of Loan Portfolio September 30, 2021

   

Percentage of Loan Portfolio September 30, 2021 (excluding PPP loans)

   

Percentage of Loan Portfolio December 31, 2020

   

Percentage of Loan Portfolio December 31, 2020 (excluding PPP loans)

 

Oil and gas

    2.2 %     2.1 %     2.6 %     2.4 %     3.3 %     2.6 %

Food services

    2.3       2.2       1.8       1.6       2.5       2.3  

Hospitality

    0.5       0.5       0.5       0.5       0.4       0.4  

Entertainment

    0.6       0.6       0.6       0.7       0.4       0.4  

Total

    5.6 %     5.4 %     5.5 %     5.2 %     6.6 %     5.7 %

 

Credit Quality

 

Nonperforming loans were $29.5 million, or 1.58% of total loans, at December 31, 2021a decrease of $3.4 million compared to $32.9 million, or 1.75% of total loans, at September 30, 2021, and an increase of $15.7 million compared to $13.8 million, or 0.74% of total loans, at December 31, 2020. The increase in nonperforming loans compared to December 31, 2020 is mainly attributable to one loan relationship, discussed further below, which added $15.5 million to the balance of nonperforming loans at December 31, 2021. Included in nonperforming loans are acquired loans with a balance of $4.0 million at December 31, 2021, or 14% of nonperforming loans.

 

The allowance for loan losses was $20.9 million, or 70.6% and 1.11% of nonperforming and total loans, respectively, at December 31, 2021, compared to $20.6 million, or 62.4% and 1.09%, respectively, at September 30, 2021, and $20.4 million, or 147.3% and 1.09%, respectively, at December 31, 2020.

 

The provision for loan losses was $0.7 million for the quarter ended December 31, 2021 compared to $21.7 million and $2.4 million for the quarters ended September 30, 2021 and December 31, 2020, respectively. The provision for loan losses for the quarter ended September 30, 2021 includes an impairment charge of $21.6 million related to a loan relationship with related borrowers (collectively, the “Borrower”) consisting of multiple loans that are secured by various types of collateral. As a result of Hurricane Ida, which made landfall in Louisiana as a category 4 hurricane on August 29, 2021, the Borrower’s business operations were disrupted causing a significant reduction in value of some of the collateral supporting the loan relationship, including real estate, inventory, and equipment. 

 

In the third quarter of 2021, Investar instituted a 90-day deferral program for customers who were impacted by Hurricane Ida. Since then, the Bank has provided payment deferrals on approximately $50 million of loans. Virtually all of those loans deferred have now resumed normal payments. At December 31, 2021, Investar had approximately $2.4 million, or 0.1% of the total loan portfolio, on a 90-day deferral plan.

 

Deposits

 

Total deposits at December 31, 2021 were $2.12 billion, a decrease of $183.4 million, or 8.0%, compared to $2.30 billion at September 30, 2021, and an increase of $232.4 million, or 12.3%, compared to $1.89 billion at December 31, 2020. During the year ended December 31, 2021, the Bank utilized brokered deposits to satisfy the required borrowings under its interest rate swap agreements, due to more favorable pricing. In the third quarter of 2021, the Company terminated multiple swap agreements, the borrowings for which matured in October 2021. Therefore, the Company had no brokered deposits at December 31, 2021, which drove the decrease in deposits compared to September 30, 2021. Investar acquired approximately $207.0 million in deposits from Cheaha at the time of acquisition on April 1, 2021. The remaining increase, compared to December 31, 2020, is due to organic growth. 

 

The COVID-19 pandemic has created a significant amount of excess liquidity in the market, and, as a result, we have experienced large increases in both noninterest and interest-bearing demand deposits, and in money market deposit accounts and savings accounts compared to December 31, 2020. These increases were primarily driven by reduced spending by consumer and business customers related to the COVID-19 pandemic, and increases in PPP borrowers’ deposit accounts. We believe these factors may be temporary depending on the future economic effects of the COVID-19 pandemic.

 

Our deposit mix continues to improve and reflects our consistent focus on relationship banking and growing our commercial relationships, as well as the effects of the pandemic on consumer and business spending. Compared to the quarter ended December 31, 2020, noninterest-bearing deposits as a percentage of total deposits has increased while time deposits as a percentage of total deposits has decreased. Management made a strategic decision to either reprice or run-off higher yielding time deposits and other interest-bearing deposit products during 2020 and 2021, which has contributed to our decreasing cost of deposits compared to the quarters ended September 30, 2021 and December 31, 2020

 

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

 

                                                           

Percentage of

 
                           

Linked Quarter Change

   

Year/Year Change

   

Total Deposits

 
   

12/31/2021

   

9/30/2021

   

12/31/2020

   

$

   

%

   

$

   

%

   

12/31/2021

   

12/31/2020

 

Noninterest-bearing demand deposits

  $ 585,465     $ 597,452     $ 448,230     $ (11,987 )     (2.0 )%   $ 137,235       30.6 %     27.6 %     23.7 %

Interest-bearing demand deposits

    650,868       658,743       496,745       (7,875 )     (1.2 )     154,123       31.0       30.7       26.3  

Brokered deposits

          125,016       80,017       (125,016 )     (100.0 )     (80,017 )     (100.0 )           4.2  

Money market deposit accounts

    255,501       264,846       186,307       (9,345 )     (3.5 )     69,194       37.1       12.1       9.9  

Savings accounts

    180,837       174,953       141,134       5,884       3.4       39,703       28.1       8.5       7.5  

Time deposits

    447,595       482,631       535,391       (35,036 )     (7.3 )     (87,796 )     (16.4 )     21.1       28.4  

Total deposits

  $ 2,120,266     $ 2,303,641     $ 1,887,824     $ (183,375 )     (8.0 )%   $ 232,442       12.3 %     100.0 %     100.0 %

 

Net Interest Income

 

Net interest income for the fourth quarter of 2021 totaled $21.5 million, a decrease of $0.1 million, or 0.4%, compared to the third quarter of 2021, and an increase of $2.3 million, or 12.1%, compared to the fourth quarter of 2020. Included in net interest income for the quarters ended December 31, 2021September 30, 2021 and December 31, 2020 is $0.2 million, $0.3 million, and $0.2 million, respectively, of interest income accretion from the acquisition of loans. Also included in net interest income for the quarters ended December 31, 2021September 30, 2021 and December 31, 2020 are interest recoveries of $0.1 million, $0.2 million, and $10,000, respectively.

 

 

 

Investar’s net interest margin was 3.57% for the quarter ended December 31, 2021, compared to 3.44% for the quarter ended September 30, 2021 and 3.55% for the quarter ended December 31, 2020. The increase in net interest margin for the quarter ended December 31, 2021 compared to the quarter ended September 30, 2021 was driven by a decrease in the cost of deposits. The increase in net interest margin for the quarter ended December 31, 2021 compared to December 31, 2020 was also driven by a decrease in the cost of the deposits, which decreased 46 basis points. However, the benefit of our reduced cost of deposits was largely offset by excess liquidity. The average balance of interest-bearing balances with banks for the quarter ended December 31, 2021, as shown on our net interest margin table, increased $168.6 million compared to the quarter ended December 31, 2020, and resulted in downward pressure of 26 basis points on the net interest margin. 

 

The yield on interest-earning assets was 3.95% for the quarter ended December 31, 2021, compared to 3.91% for the quarter ended September 30, 2021 and 4.26% for the quarter ended December 31, 2020. The increase in the yield on interest-earning assets compared to the quarter ended September 30, 2021 was driven by a 25 basis point increase in the yield on taxable securities, partially offset by an 11 basis point decrease in the yield on our loan portfolio. The decrease in the yield on interest-earning assets compared to the quarter ended December 31, 2020 was driven by excess liquidity, discussed above. In response to the pandemic, during March 2020, the Federal Reserve reduced the federal funds rate 150 basis points to 0 to 0.25 percent, which has affected the yields that we earn on our interest-earning assets. In addition, the PPP loans originated have a contractual interest rate of 1% and origination fees based on the loan amount, which impacts the yield on our loan portfolio.

 

Exclusive of PPP loans, which had an average balance of $33.2 million and related interest and fee income of $1.0 million for the quarter ended December 31, 2021, compared to an average balance of $58.5 million and related interest and fee income of $1.3 million for the quarter ended September 30, 2021 and an average balance of $106.6 million and related interest and fee income of $1.1 million for the quarter ended December 31, 2020, adjusted net interest margin was 3.46% for the quarter ended December 31, 2021, compared to an adjusted net interest margin of 3.31% for the quarter ended September 30, 2021 and 3.53% for the quarter ended December 31, 2020. Included in PPP interest and fee income for the quarters ended December 31, 2021September 30, 2021, and December 31, 2020 is $0.8 million, $1.0 million, and $0.4 million, respectively, of accelerated fee income recognized due to the forgiveness or pay-off of PPP loans prior to maturity. Refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics.

 

Exclusive of the interest income accretion from the acquisition of loans, interest recoveries, and accelerated fee income recognized due to the forgiveness or pay-off of PPP loans, all discussed above, adjusted net interest margin increased to 3.38% for the quarter ended December 31, 2021, compared to 3.21% for the quarter ended September 30, 2021, and decreased compared to 3.45% for the quarter ended December 31, 2020. The adjusted yield on interest-earning assets was 3.76% for the quarter ended December 31, 2021 compared to 3.67% and 4.16% for the quarters ended September 30, 2021 and December 31, 2020, respectively. Refer to the Reconciliation of Non-GAAP Financial Measures table for a reconciliation of GAAP to non-GAAP metrics.

 

The cost of deposits decreased 13 basis points to 0.30% for the quarter ended December 31, 2021 compared to 0.43% for the quarter ended September 30, 2021 and decreased 46 basis points compared to 0.76% for the quarter ended December 31, 2020. The decrease in the cost of deposits compared to the quarters ended September 30, 2021 and December 31, 2020 reflects the decrease in rates paid for all categories of interest-bearing deposits.

 

The overall costs of funds for the quarter ended December 31, 2021 decreased 11 basis points to 0.52% compared to 0.63% for the quarter ended September 30, 2021 and decreased 43 basis points compared to 0.95% for the quarter ended December 31, 2020. The decrease in the cost of funds for the quarter ended December 31, 2021 compared to the quarters ended September 30, 2021 and December 31, 2020 resulted from both lower cost of deposits and lower average balances of short-term borrowings, the costs of which are driven by the Federal Reserve’s federal funds rates.

 

Noninterest Income

 

Noninterest income for the fourth quarter of 2021 totaled $1.7 million, a decrease of $2.2 million, or 57.1%, compared to the third quarter of 2021 and a decrease of $2.0 million, or 54.3%, compared to the fourth quarter of 2020. The decrease in noninterest income compared to the quarter ended September 30, 2021 was driven by a $1.8 million decrease in swap termination fees and the $0.4 million loss on sale or disposition of fixed assets. Swap termination fees were recorded when we voluntarily terminated a number of our interest rate swap agreements at the end of September 2021. The loss on sale or disposition of fixed assets was recorded when Investar reclassified two branch locations that were closed in 2021, totaling $1.9 million, as other real estate owned. The decrease in noninterest income compared to the quarter ended December 31, 2020 is mainly attributable to a $1.2 million decrease in other operating income and a $0.9 million difference in the fair value of our equity securities. The decrease in other operating income compared to the quarter ended December 31, 2020 was attributable to a $1.1 million decrease in derivative fee income. 

 

Noninterest Expense

 

Noninterest expense for the fourth quarter of 2021 totaled $13.9 million, a decrease of $2.5 million, or 15.1%, compared to the third quarter of 2021, and a decrease of $0.8 million, or 5.3%, compared to the fourth quarter of 2020. The decrease in noninterest expense for the quarter ended December 31, 2021 compared to the quarter ended September 30, 2021 was driven by a $2.6 million decrease in salaries and employee benefits expense and a $0.4 million decrease in acquisition expense, partially offset by a $0.4 million increase in other operating expenses primarily attributable to the increase in the provision for unfunded loan commitments. The decrease in salaries and employee benefits expense was primarily due to the $1.9 million Employee Retention Credit (“ERC”), which was recognized as a credit to payroll taxes in the quarter ended December 31, 2021. Also included in noninterest expense for the quarter ended December 31, 2021 is $0.1 million of professional fees incurred in connection with the ERC.

 

The decrease in noninterest expense for the quarter ended December 31, 2021 compared to the quarter ended December 31, 2020 is primarily a result of a $1.5 million decrease in salaries and employee benefits, driven by the $1.9 million ERC discussed above, partially offset by a $0.4 million increase in other operating expenses, also discussed above. 

 

 

 

Taxes

 

Investar recorded income tax expense of $1.6 million for the quarter ended December 31, 2021, which equates to an effective tax rate of 19.1%a decrease from the effective tax rates of 21.0% for the quarter ended September 30, 2021 and 20.9% for the quarter ended December 31, 2020.

 

Basic and Diluted Earnings Per Common Share

 

Investar reported basic and diluted earnings per common share of $0.67 for the quarter ended December 31, 2021, compared to basic and diluted loss per common share of $0.95 for the quarter ended September 30, 2021, and basic and diluted earnings per common share of $0.42 for the quarter ended December 31, 2020.

 

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 33 branch locations serving Louisiana, Texas, and Alabama. At December 31, 2021, the Bank had 343 full-time equivalent employees and total assets of $2.5 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 (loss) earnings before income tax expense,” “core income tax (benefit) expense,” “core (loss) earnings,” “core efficiency ratio,” “core return on average assets,” “core return on average equity,” “core basic (loss) earnings per share,” and “core (loss) 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 PPP loans, interest income accretion from the acquisition of loans, and interest recoveries. 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.

 

 

 

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. In addition, any of the following matters related to the pandemic may impact our financial results in future periods, and such impacts may be material depending on the length and severity of the pandemic and government and societal responses to it:

 

 

borrowers may default on loans and economic conditions could deteriorate requiring further increases to the allowance for loan losses;

 

 

demand for our loans and other banking services, and related income and fees, may be reduced; and

 

 

the value of collateral securing our loans may deteriorate.

 

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 ongoing impacts of the COVID-19 pandemic on economic conditions in general and on the Bank’s markets in particular, and on the Bank’s operations and financial results, including but not limited to potential continued higher inflation, and supply and labor constraints;

 

 

ongoing disruptions in the oil and gas industry due to fluctuations in the price of oil;

 

 

business and economic conditions generally and in the financial services industry in particular, whether nationally, regionally or in the markets in which we operate;

 

 

increased cyber and payment fraud risk, as cybercriminals attempt to profit from the disruption, given increased online and remote activity;

 

 

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 acquired operations;

 

 

changes (or the lack of changes) in interest rates, yield curves and interest rate spread relationships that affect our loan and deposit pricing, including potential continued increases in interest rates during 2022;

 

 

cessation of the one-week and two-month U.S. dollar settings of LIBOR as of December 31, 2021 and announced cessation of the remaining U.S. dollar LIBOR settings after June 30, 2023, and the related effect on our LIBOR-based financial products and contracts, including, but not limited to, hedging products, debt obligations, investments and loans;

 

 

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;

 

 

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;

 

 

inaccuracy of the assumptions and estimates we make in establishing reserves for probable loan losses and other estimates;

 

 

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

 

 

concentration of credit exposure.

 

 

 

These factors should not be construed as exhaustive. Additional information on these and other risk factors can be found in Item 1A. “Risk Factors” and in the “Special Note Regarding Forward-Looking Statements” in 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, 2020 filed with the Securities and Exchange Commission (the “SEC”).

 

For further information contact:

 

Investar Holding Corporation   

Chris Hufft

Chief Financial Officer

(225) 227-2215

Chris.Hufft@investarbank.com

 

 

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

   

As of and for the three months ended

 
   

12/31/2021

   

9/30/2021

   

12/31/2020

   

Linked Quarter

   

Year/Year

 

EARNINGS DATA

                                       

Total interest income

  $ 23,753     $ 24,473     $ 22,977       (2.9 )%     3.4 %

Total interest expense

    2,286       2,925       3,823       (21.8 )     (40.2 )

Net interest income

    21,467       21,548       19,154       (0.4 )     12.1  

Provision for loan losses

    658       21,713       2,400       (97.0 )     (72.6 )

Total noninterest income

    1,681       3,914       3,675       (57.1 )     (54.3 )

Total noninterest expense

    13,912       16,381       14,693       (15.1 )     (5.3 )

Income (loss) before income taxes

    8,578       (12,632 )     5,736       167.9       49.5  

Income tax expense (benefit)

    1,642       (2,648 )     1,196       162.0       37.3  

Net income (loss)

  $ 6,936     $ (9,984 )   $ 4,540       169.5       52.8  
                                         

AVERAGE BALANCE SHEET DATA

                                       

Total assets

  $ 2,595,211     $ 2,686,712     $ 2,314,997       (3.4 )%     12.1 %

Total interest-earning assets

    2,385,896       2,482,070       2,147,086       (3.9 )     11.1  

Total loans

    1,885,979       1,923,960       1,838,426       (2.0 )     2.6  

Total interest-bearing deposits

    1,597,556       1,691,318       1,442,711       (5.5 )     10.7  

Total interest-bearing liabilities

    1,734,170       1,830,240       1,594,127       (5.2 )     8.8  

Total deposits

    2,200,718       2,272,715       1,900,974       (3.2 )     15.8  

Total stockholders’ equity

    241,465       254,616       242,562       (5.2 )     (0.5 )
                                         

PER SHARE DATA

                                       

Earnings:

                                       

Basic earnings (loss) per common share

  $ 0.67     $ (0.95 )   $ 0.42       170.5 %     59.5 %

Diluted earnings (loss) per common share

    0.67       (0.95 )     0.42       170.5       59.5  

Core Earnings(1):

                                       

Core basic earnings (loss) per common share(1)

    0.56       (1.06 )     0.39       152.8       43.6  

Core diluted earnings (loss) per common share(1)

    0.56       (1.06 )     0.39       152.8       43.6  

Book value per common share

    23.45       22.85       22.93       2.6       2.3  

Tangible book value per common share(1)

    19.20       18.57       19.89       3.4       (3.5 )

Common shares outstanding

    10,343,494       10,343,416       10,608,869       0.0       (2.5 )

Weighted average common shares outstanding - basic

    10,343,467       10,398,787       10,621,763       (0.5 )     (2.6 )

Weighted average common shares outstanding - diluted

    10,413,713       10,398,787       10,642,908       0.1       (2.2 )
                                         

PERFORMANCE RATIOS

                                       

Return on average assets

    1.06 %     (1.47 )%     0.78 %     172.1 %     35.9 %

Core return on average assets(1)

    0.89       (1.63 )     0.71       154.6       25.4  

Return on average equity

    11.40       (15.56 )     7.45       173.3       53.0  

Core return on average equity(1)

    9.59       (17.20 )     6.80       155.8       41.0  

Net interest margin

    3.57       3.44       3.55       3.8       0.6  

Net interest income to average assets

    3.28       3.18       3.29       3.1       (0.3 )

Noninterest expense to average assets

    2.13       2.42       2.52       (12.0 )     (15.5 )

Efficiency ratio(2)

    60.10       64.33       64.36       (6.6 )     (6.6 )

Core efficiency ratio(1)

    66.54       67.17       65.29       (0.9 )     1.9  

Dividend payout ratio

    11.94       (8.42 )     15.48       241.8       (22.9 )

Net charge-offs to average loans

    0.02       1.12       0.06       (98.2 )     (66.7 )

 

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

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

 

 

 

INVESTAR HOLDING CORPORATION

SUMMARY FINANCIAL INFORMATION

(Amounts in thousands, except share data)

(Unaudited)

 

   

As of and for the three months ended

 
   

12/31/2021

   

9/30/2021

   

12/31/2020

   

Linked Quarter

   

Year/Year

 

ASSET QUALITY RATIOS

                                       

Nonperforming assets to total assets

    1.28 %     1.25 %     0.62 %     2.4 %     106.5 %

Nonperforming loans to total loans

    1.58       1.75       0.74       (9.7 )     113.5  

Allowance for loan losses to total loans

    1.11       1.09       1.09       1.8       1.8  

Allowance for loan losses to nonperforming loans

    70.59       62.44       147.27       13.1       (52.1 )
                                         

CAPITAL RATIOS

                                       

Investar Holding Corporation:

                                       

Total equity to total assets

    9.65 %     8.77 %     10.48 %     10.0 %     (7.9 )%

Tangible equity to tangible assets(1)

    8.04       7.24       9.22       11.0       (12.8 )

Tier 1 leverage ratio

    8.12       7.60       9.49       6.8       (14.4 )

Common equity tier 1 capital ratio(2)

    9.45       9.25       11.02       2.2       (14.2 )

Tier 1 capital ratio(2)

    9.90       9.71       11.36       2.0       (12.9 )

Total capital ratio(2)

    12.99       12.82       14.71       1.3       (11.7 )

Investar Bank:

                                       

Tier 1 leverage ratio

    9.60       8.99       10.47       6.8       (8.3 )

Common equity tier 1 capital ratio(2)

    11.72       11.50       12.53       1.9       (6.5 )

Tier 1 capital ratio(2)

    11.72       11.50       12.53       1.9       (6.5 )

Total capital ratio(2)

    12.75       12.53       13.62       1.8       (6.4 )

 

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

(2) Estimated for December 31, 2021.

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED BALANCE SHEETS

(Amounts in thousands, except share data)

(Unaudited)

 

   

December 31, 2021

   

September 30, 2021

   

December 31, 2020

 

ASSETS

                       

Cash and due from banks

  $ 38,601     $ 45,404     $ 25,672  

Interest-bearing balances due from other banks

    57,940       304,587       9,696  

Federal funds sold

    500       500        

Cash and cash equivalents

    97,041       350,491       35,368  
                         

Available for sale securities at fair value (amortized cost of $356,639, $274,312, and $263,913, respectively)

    355,509       274,387       268,410  

Held to maturity securities at amortized cost (estimated fair value of $10,727, $11,936, and $12,649, respectively)

    10,255       11,407       12,434  

Loans held for sale

    620       300        

Loans, net of allowance for loan losses of $20,859, $20,567, and $20,363, respectively

    1,851,153       1,860,091       1,839,955  

Other equity securities

    16,803       16,783       16,599  

Bank premises and equipment, net of accumulated depreciation of $19,149, $18,579, and $15,830, respectively

    58,080       61,619       56,303  

Other real estate owned, net

    2,653       635       663  

Accrued interest receivable

    11,355       11,732       12,969  

Deferred tax asset

    2,239       1,493       1,360  

Goodwill and other intangible assets, net

    44,036       44,283       32,232  

Bank-owned life insurance

    51,074       50,767       38,908  

Other assets

    12,385       12,060       5,980  

Total assets

  $ 2,513,203     $ 2,696,048     $ 2,321,181  
                         

LIABILITIES

                       

Deposits

                       

Noninterest-bearing

  $ 585,465     $ 597,452     $ 448,230  

Interest-bearing

    1,534,801       1,706,189       1,439,594  

Total deposits

    2,120,266       2,303,641       1,887,824  

Advances from Federal Home Loan Bank

    78,500       78,500       120,500  

Repurchase agreements

    5,783       6,580       5,653  

Subordinated debt

    42,989       42,966       42,897  

Junior subordinated debt

    8,384       8,352       5,949  

Accrued taxes and other liabilities

    14,683       19,685       15,074  

Total liabilities

    2,270,605       2,459,724       2,077,897  
                         

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; 10,343,494, 10,343,416, and 10,608,869 shares issued and outstanding, respectively

    10,343       10,344       10,609  

Surplus

    154,932       154,527       159,485  

Retained earnings

    76,160       70,054       71,385  

Accumulated other comprehensive income

    1,163       1,399       1,805  

Total stockholders’ equity

    242,598       236,324       243,284  

Total liabilities and stockholders’ equity

  $ 2,513,203     $ 2,696,048     $ 2,321,181  

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED STATEMENTS OF INCOME (LOSS)

(Amounts in thousands, except share data)

(Unaudited)

 

   

For the three months ended

   

For the twelve months ended

 
    December 31, 2021     September 30, 2021     December 31, 2020     December 31, 2021     December 31, 2020  

INTEREST INCOME

                                       

Interest and fees on loans

  $ 22,248     $ 23,220     $ 21,712     $ 90,230     $ 87,365  

Interest on investment securities

    1,291       1,021       1,107       4,500       5,613  

Other interest income

    214       232       158       812       816  

Total interest income

    23,753       24,473       22,977       95,542       93,794  
                                         

INTEREST EXPENSE

                                       

Interest on deposits

    1,217       1,854       2,750       7,487       15,376  

Interest on borrowings

    1,069       1,071       1,073       4,241       4,884  

Total interest expense

    2,286       2,925       3,823       11,728       20,260  

Net interest income

    21,467       21,548       19,154       83,814       73,534  
                                         

Provision for loan losses

    658       21,713       2,400       22,885       11,160  

Net interest income (loss) after provision for loan losses

    20,809       (165 )     16,754       60,929       62,374  
                                         

NONINTEREST INCOME

                                       

Service charges on deposit accounts

    674       650       500       2,422       1,917  

Gain on sale of investment securities, net

                      2,321       2,289  

Loss on sale or disposition of fixed assets, net

    (406 )           (33 )     (408 )     (38 )

Loss (gain) on sale of other real estate owned, net

                (14 )     (5 )     12  

Swap termination fee income

          1,835             1,835        

Gain on sale of loans

    80       73             199        

Servicing fees and fee income on serviced loans

    37       38       78       204       379  

Interchange fees

    527       504       385       1,920       1,414  

Income from bank owned life insurance

    308       304       237       1,146       894  

Change in the fair value of equity securities

    10       48       877       214       268  

Other operating income

    451       462       1,645       2,194       4,961  

Total noninterest income

    1,681       3,914       3,675       12,042       12,096  

Income before noninterest expense

    22,490       3,749       20,429       72,971       74,470  
                                         

NONINTEREST EXPENSE

                                       

Depreciation and amortization

    1,240       1,264       1,185       4,988       4,570  

Salaries and employee benefits

    7,146       9,770       8,625       35,527       33,378  

Occupancy

    778       662       565       2,753       2,236  

Data processing

    678       715       774       3,112       3,069  

Marketing

    106       57       135       275       333  

Professional fees

    467       382       353       1,585       1,519  

Acquisition expenses

          446       4       2,448       1,062  

Other operating expenses

    3,497       3,085       3,052       12,374       10,964  

Total noninterest expense

    13,912       16,381       14,693       63,062       57,131  

Income (loss) before income tax expense (benefit)

    8,578       (12,632 )     5,736       9,909       17,339  

Income tax expense (benefit)

    1,642       (2,648 )     1,196       1,909       3,450  

Net income (loss)

  $ 6,936     $ (9,984 )   $ 4,540     $ 8,000     $ 13,889  
                                         

EARNINGS PER SHARE

                                       

Basic earnings (loss) per common share

  $ 0.67     $ (0.95 )   $ 0.42     $ 0.77     $ 1.27  

Diluted earnings (loss) per common share

    0.67       (0.95 )     0.42       0.76       1.27  

Cash dividends declared per common share

    0.08       0.08       0.07       0.31       0.25  

 

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

   

For the three months ended

 
   

December 31, 2021

   

September 30, 2021

   

December 31, 2020

 
           

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

  $ 1,885,979     $ 22,248       4.68 %   $ 1,923,960     $ 23,220       4.79 %   $ 1,838,426     $ 21,712       4.70 %

Securities:

                                                                       

Taxable

    287,692       1,156       1.59       262,751       892       1.35       265,068       965       1.45  

Tax-exempt

    20,267       135       2.63       18,499       129       2.76       20,265       142       2.78  

Interest-bearing balances with banks

    191,958       214       0.44       276,860       232       0.33       23,327       158       2.68  

Total interest-earning assets

    2,385,896       23,753       3.95       2,482,070       24,473       3.91       2,147,086       22,977       4.26  

Cash and due from banks

    47,384                       38,511                       30,353                  

Intangible assets

    44,156                       44,040                       32,329                  

Other assets

    139,064                       142,608                       124,377                  

Allowance for loan losses

    (21,289 )                     (20,517 )                     (19,148 )                

Total assets

  $ 2,595,211                     $ 2,686,712                     $ 2,314,997                  
                                                                         

Liabilities and stockholders’ equity

                                                                       

Interest-bearing liabilities:

                                                                       

Deposits:

                                                                       

Interest-bearing demand deposits

  $ 939,789     $ 413       0.17 %   $ 901,146     $ 599       0.26 %   $ 667,793     $ 750       0.45 %

Brokered deposits

    16,405       2       0.04       112,601       264       0.93       77,897       179       0.92  

Savings deposits

    178,751       43       0.09       173,971       67       0.15       140,141       87       0.25  

Time deposits

    462,611       759       0.65       503,600       924       0.73       556,880       1,734       1.24  

Total interest-bearing deposits

    1,597,556       1,217       0.30       1,691,318       1,854       0.43       1,442,711       2,750       0.76  

Short-term borrowings

    6,772       4       0.22       9,136       5       0.21       24,090       39       0.63  

Long-term debt

    129,842       1,065       3.26       129,786       1,066       3.26       127,326       1,034       3.23  

Total interest-bearing liabilities

    1,734,170       2,286       0.52       1,830,240       2,925       0.63       1,594,127       3,823       0.95  

Noninterest-bearing deposits

    603,162                       581,397                       458,263                  

Other liabilities

    16,414                       20,459                       20,045                  

Stockholders’ equity

    241,465                       254,616                       242,562                  

Total liability and stockholders’ equity

  $ 2,595,211                     $ 2,686,712                     $ 2,314,997                  

Net interest income/net interest margin

          $ 21,467       3.57 %           $ 21,548       3.44 %           $ 19,154       3.55 %

 

 

INVESTAR HOLDING CORPORATION

CONSOLIDATED AVERAGE BALANCE SHEET, INTEREST EARNED AND YIELD ANALYSIS

(Amounts in thousands)

(Unaudited)

 

   

For the twelve months ended

 
   

December 31, 2021

   

December 31, 2020

 
           

Interest

                   

Interest

         
   

Average

   

Income/

           

Average

   

Income/

         
   

Balance

   

Expense

   

Yield/ Rate

   

Balance

   

Expense

   

Yield/ Rate

 

Assets

                                               

Interest-earning assets:

                                               

Loans

  $ 1,902,070     $ 90,230       4.74 %   $ 1,786,302     $ 87,365       4.89 %

Securities:

                                               

Taxable

    275,963       3,948       1.43       255,405       4,927       1.93  

Tax-exempt

    20,259       552       2.73       25,024       686       2.74  

Interest-bearing balances with banks

    176,349       812       0.46       42,852       816       1.90  

Total interest-earning assets

    2,374,641       95,542       4.02       2,109,583       93,794       4.45  

Cash and due from banks

    39,262                       27,768                  

Intangible assets

    41,299                       32,190                  

Other assets

    138,096                       119,994                  

Allowance for loan losses

    (20,704 )                     (15,272 )                

Total assets

  $ 2,572,594                     $ 2,274,263                  
                                                 

Liabilities and stockholders’ equity

                                               

Interest-bearing liabilities:

                                               

Deposits:

                                               

Interest-bearing demand deposits

  $ 858,660     $ 2,398       0.28 %   $ 612,000     $ 3,535       0.58 %

Brokered deposits

    77,432       715       0.92       20,308       177       0.87  

Savings deposits

    168,194       247       0.15       129,211       401       0.31  

Time deposits

    508,954       4,127       0.81       640,549       11,263       1.76  

Total interest-bearing deposits

    1,613,240       7,487       0.46       1,402,068       15,376       1.10  

Short-term borrowings

    9,323       19       0.20       65,323       710       1.09  

Long-term debt

    129,318       4,222       3.26       128,163       4,174       3.26  

Total interest-bearing liabilities

    1,751,881       11,728       0.67       1,595,554       20,260       1.27  

Noninterest-bearing deposits

    553,083                       418,240                  

Other liabilities

    18,852