Exhibit 99.1
| 500 Laurel Street Baton Rouge, LA 70801 Phone: 877.614.7600 |
FOR IMMEDIATE RELEASE July 27, 2023 | Misty Albrecht b1BANK 225.286.7879 Misty.Albrecht@b1BANK.com |
BUSINESS FIRST BANCSHARES, INC., ANNOUNCES FINANCIAL RESULTS FOR Q2 2023
Baton Rouge, La. (July 27, 2023) – Business First Bancshares, Inc. (Nasdaq: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended June 30, 2023, including net income available to common shareholders of $18.4 million, or $0.73 per diluted common share, increases of $4.7 million and $0.19, respectively, from the linked quarter, and increases of $4.6 million and $0.12, respectively, from the quarter ended June 30, 2022. On a non-GAAP basis, core net income for the quarter ended June 30, 2023, which excludes certain income and expenses, was $17.7 million, or $0.70 per diluted common share, increases of $4.0 million and $0.15, respectively, from the linked quarter, and increases of $3.2 million and $0.06, respectively, from the quarter ended June 30, 2022.
“In the second quarter we focused successfully on delivering fundamental shareholder-oriented performance,” said b1BANK President & CEO Jude Melville. “The period was marked by measured growth, increased ROE, stable credit quality, and increases in both linked quarter and year-over-year per share tangible book value and earnings. We have been busy blocking and tackling, and we’re seeing that effort pay off.”
On July 27, 2023, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the second quarter in the amount of $0.12 per share, same as the prior quarter. The preferred and common dividends will be paid on August 31, 2023, or as soon thereafter as practicable, to the shareholders of record as of August 15, 2023.
Quarterly Highlights
| | ● | Return on Assets and Equity. Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.18% and 13.99%, respectively, for the quarter ended June 30, 2023, compared to 0.91% and 10.73%, respectively, for the linked quarter. Non-GAAP core return on average assets and common equity, each on an annualized basis, were 1.13% and 13.50%, respectively, for the quarter ended June 30, 2023, compared to 0.91% and 10.81%, respectively, for the linked quarter. |
| | ● | Credit Quality. Credit performance remains strong from the linked quarter. The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets were 0.36% and 0.30%, respectively, at June 30, 2023, compared to 0.36% and 0.29% at March 31, 2023. |
| | ● | Net Interest Margin. For the quarter ended June 30, 2023, net interest income totaled $53.3 million and net interest margin and net interest spread were 3.63% and 2.75%, respectively, compared to $52.7 million, 3.75% and 2.96% for the quarter ended March 31, 2023. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.1 million) were 3.49% and 2.51%, respectively, for the quarter ended June 30, 2023, compared to 3.54% and 2.75% (excluding loan discount accretion of $2.9 million) for the quarter ended March 31, 2023. Compared to the linked quarter, net interest margin excluding loan discount accretion declined five basis points. |
| | ● | Deposits. Deposits increased $208.3 million or 4.33%, 17.38% annualized, for the quarter ended June 30, 2023, compared to the linked quarter. The increase was impacted by $211.2 million in additional brokered deposits. Excluding brokered deposits, non-brokered deposits remained stable with a decrease of $2.9 million or 0.06%, 0.26% annualized. Branch deposits (which excludes mainly financial institutions group (FIG), brokered, and listed certificates of deposits) increased $1.9 million compared to the linked quarter. |
| | ● | Loans. Loans held for investment increased $95.7 million or 1.99%, 7.99% annualized, from the linked quarter. Year-to-date loan growth through June 30, 2023, was $292.6 million, 6.35% or 12.81% annualized. Loan growth for the second quarter was largely driven by net growth in the commercial and industrial (C&I) and commercial real estate portfolios, offset by reductions in the construction and development (C&D) portfolio. |
Statement of Financial Condition
Loans
Loans held for investment increased $95.7 million or 1.99%, 7.99% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributed to originations in the C&I, $69.9 million, and commercial real estate, $76.5 million, portfolios, offset by a $68.6 million reduction in the C&D portfolio. Year-to-date loan growth through June 30, 2023, was $292.6 million, 6.35%, or 12.81% annualized.
The Dallas Fort Worth region produced 59.07% of net loan growth from the linked quarter based on unpaid principal balance, while the North Louisiana and Greater New Orleans regions produced 28.16% and 12.06%, respectively. Based on unpaid principal balances, Texas-based loans represent approximately 37% of the overall loan portfolio as of June 30, 2023.
Credit Quality
The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets remained stable from 0.36% and 0.29%, respectively, at March 31, 2023, to 0.36% and 0.30% at June 30, 2023.
Securities
The securities portfolio decreased $26.2 million or 2.90%, from the linked quarter. The decrease was the net impact of negative fair value adjustments, $14.9 million, and net security paydowns and maturities during the quarter. The securities portfolio, based on estimated fair value, represented 13.60% of total assets as of June 30, 2023.
Deposits
Deposits increased $208.3 million or 4.33%, 17.38% annualized, for the quarter ended June 30, 2023. The increase was primarily attributable to the $211.2 million growth in brokered deposits. Excluding the increase in brokered deposits, non brokered deposits remained stable with a decrease of $2.9 million or 0.06%, 0.26% annualized. Year-to-date deposit growth through June 30, 2023, was $194.1 million, 4.03% or 8.12% annualized. Excluding brokered deposits, year-to-date deposits decreased $17.1 million, 0.37% or 0.75% annualized through June 30, 2023, which includes a $40.9 million reduction in FIG deposits.
Noninterest-bearing deposits decreased $46.4 million or 3.14% and interest-bearing deposits increased $254.7 million or 7.65%, compared to the linked quarter. The net growth in interest-bearing deposits was attributable to growth in the certificate of deposit (CD) portfolio of $282.3 million compared to a decrease in transactional accounts of $27.6 million. Brokered deposits accounted for $211.2 million of the $282.3 million increase in the CD portfolio.
As of June 30, 2023, Business First held approximately 104,285 deposit accounts with an average balance of approximately $48,085, of which $1.9 billion or 38.12% were estimated to be uninsured by the FDIC. The average deposit balance excluding brokered deposits was $43,672 per account. Excluding public funds, which are secured by securities or Federal Home Loan Bank (FHLB) letters of credit, the unsecured deposit total was approximately $1.5 billion or 29.26% of total deposits.
Borrowings
Borrowings decreased $57.8 million, or 6.78%, from the linked quarter, these borrowings were replaced with lower cost brokered deposits. Business First repaid $10.0 million in Bank Term Funding Program (BTFP) borrowings and $33.0 million of Federal Home Loan Bank (FHLB) borrowings, which were largely short term. On May 1, 2023, Business First redeemed an $8.9 million tranche of outstanding subordinated debt, of which $5.7 million was extinguished as of June 30, 2023. This resulted in a $941,000 gain on extinguishment of debt.
Shareholders’ Equity
Accumulated other comprehensive income (AOCI) decreased $13.3 million due to negative after-tax fair value changes in the securities portfolio. Book value per common share nonetheless still increased to $20.87 at June 30, 2023, compared to $20.77 at March 31, 2023, due to strong second quarter earnings. On a non-GAAP basis, tangible book value per common share increased to $16.87 at June 30, 2023, compared to $16.73 at March 31, 2023.
Results of Operations
Net Interest Income
For the quarter ended June 30, 2023, net interest income totaled $53.3 million, compared to $52.7 million from the linked quarter. Loan and interest-earning asset yields of 6.54% and 5.84%, respectively, increased 20 basis points and 19 basis points, respectively, compared to 6.34% and 5.65% from the linked quarter. The increases were largely attributable to loan repricing and higher yields on new originations. Net interest margin and net interest spread were 3.63% and 2.75%, respectively, compared to 3.75% and 2.96%, respectively, for the linked quarter. Interest income for the quarter ended March 31, 2023, included $853,000 of additional loan discount accretion due to a large, acquired loan payoff and accelerated accretion from the purchased impaired portfolio. Overall cost of funds, which include noninterest-bearing deposits, increased from 1.97% to 2.31% or 34 basis points, from the linked quarter due largely to higher cost deposits.
Non-GAAP net interest income (excluding loan discount accretion of $2.1 million) totaled $51.3 million for the quarter ended June 30, 2023, compared to $49.8 million (excluding loan discount accretion of $2.9 million) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.1 million) were 3.49% and 2.51%, respectively, for the quarter ended June 30, 2023, compared to 3.54% and 2.75% (excluding loan discount accretion of $2.9 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 28 basis points from 6.09% to 6.37% and interest earnings asset yields increased 36 basis points from 5.44% to 5.70%, compared to the linked quarter.
Provision for Credit Losses
During the quarter ended June 30, 2023, Business First recorded a provision for credit losses of $538,000, compared to $3.2 million for the linked quarter. The current quarter reserve was impacted by loan growth in loan portfolios with lower estimated loss rates and lower reserves for unfunded commitments due to lower unfunded balances. The provision for credit losses for the quarter ended March 31, 2023, included the resolution of an acquired impaired lending relationship in March 2023, which resulted in a charge-off of $1.9 million.
Other Income
For the quarter ended June 30, 2023, other income increased $3.6 million or 42.56%, compared to the linked quarter. The net increase was largely attributable to a $2.6 million increase in equity investment income and a $941,000 gain on extinguishment of debt.
Other Expenses
For the quarter ended June 30, 2023, other expenses increased by $1.0 million, or 2.65%, compared to the linked quarter. The net increase was largely attributable to a $1.6 million increase in data processing charges, offset by a reduction of $837,000 in salary and employee benefits. The increase in data processing costs was partially attributable to $453,000 of rebates received during the first quarter and $715,000 in charges paid in the second quarter attributed to an error identified by our data processor in their billing system.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.18% and 13.99%, respectively, for the quarter ended June 30, 2023, compared to 0.91% and 10.73%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.13% and 13.50%, respectively, for the quarter ended June 30, 2022, compared to 0.91% and 10.81%, respectively, for the linked quarter.
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Thursday, July 27, at 4:30 p.m. CDT. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 6772868, or asking for the Business First Bancshares conference call. The live webcast can be
found at https://edge.media-server.com/mmc/p/gm8qhso3. The corresponding slide presentation can be accessed the day of the presentation on b1BANK’s website at https://www.b1bank.com/shareholder-info.
About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.5 billion in assets, $6.4 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP “core” measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Business First’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.
Special Note Regarding Forward-Looking Statements
Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.
Additional Information
For additional information about Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.
No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Business First Bancshares, Inc. |
Selected Financial Information |
(Unaudited) |
| | | Three Months Ended | |
| | | June 30, | | | March 31, | | | June 30, | |
(Dollars in thousands) | | 2023 | | | 2023 | | | 2022 | |
| | | | | | | | | | | | | |
Balance Sheet Ratios | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Loans (HFI) to Deposits | | | 97.69 | % | | | 99.94 | % | | | 88.31 | % |
Shareholders' Equity to Assets Ratio | | | 9.31 | % | | | 9.50 | % | | | 8.05 | % |
| | | | | | | | | | | | | |
Loans Receivable Held for Investment (HFI) | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Commercial (1) | | $ | 1,309,222 | | | $ | 1,239,333 | | | $ | 1,019,997 | |
Real Estate: | | | | | | | | | | | | |
Commercial | | | 2,132,044 | | | | 2,055,500 | | | | 1,780,414 | |
Construction | | | 719,080 | | | | 787,634 | | | | 642,260 | |
Residential | | | 675,462 | | | | 659,967 | | | | 619,648 | |
Total Real Estate | | | 3,526,586 | | | | 3,503,101 | | | | 3,042,322 | |
Consumer and Other | | | 62,929 | | | | 60,626 | | | | 51,407 | |
Total Loans (Held for Investment) | | $ | 4,898,737 | | | $ | 4,803,060 | | | $ | 4,113,726 | |
| | | | | | | | | | | | | |
Allowance for Credit Losses | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Balance, Beginning of Period | | $ | 41,830 | | | $ | 38,178 | | | $ | 29,245 | |
CECL Adoption/Implementation | | | - | | | | 2,660 | | | | - | |
Charge-offs – Quarterly | | | (689 | ) | | | (2,278 | ) | | | (99 | ) |
Recoveries – Quarterly | | | 104 | | | | 103 | | | | 226 | |
Provision for Loan Losses – Quarterly | | | 768 | | | | 3,167 | | | | 2,945 | |
Balance, End of Period | | $ | 42,013 | | | $ | 41,830 | | | $ | 32,317 | |
| | | | | | | | | | | | | |
Allowance for Loan Losses to Total Loans (HFI) | | | 0.86 | % | | | 0.87 | % | | | 0.79 | % |
Allowance for Credit Losses to Total Loans (HFI) (2) | | | 0.93 | % | | | 0.95 | % | | | 0.80 | % |
Net Charge-offs (Recoveries) to Average Quarterly Total Loans | | | 0.01 | % | | | 0.05 | % | | | 0.00 | % |
| | | | | | | | | | | | | |
Remaining Loan Purchase Discount | | $ | 17,171 | | | $ | 19,234 | | | $ | 37,903 | |
| | | | | | | | | | | | | |
Nonperforming Assets | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Nonperforming Loans: | | | | | | | | | | | | |
Nonaccrual Loans (1) | | $ | 17,006 | | | $ | 16,952 | | | $ | 16,777 | |
Loans Past Due 90 Days or More (1) | | | 468 | | | | 127 | | | | 324 | |
Total Nonperforming Loans | | | 17,474 | | | | 17,079 | | | | 17,101 | |
Other Nonperforming Assets: | | | | | | | | | | | | |
Other Real Estate Owned | | | 1,587 | | | | 1,365 | | | | 990 | |
Other Nonperforming Assets | | | 29 | | | | 57 | | | | 84 | |
Total Other Nonperforming Assets | | | 1,616 | | | | 1,422 | | | | 1,074 | |
Total Nonperforming Assets | | $ | 19,090 | | | $ | 18,501 | | | $ | 18,175 | |
| | | | | | | | | | | | | |
Nonperforming Loans to Total Loans (HFI) | | | 0.36 | % | | | 0.36 | % | | | 0.42 | % |
Nonperforming Assets to Total Assets | | | 0.30 | % | | | 0.29 | % | | | 0.33 | % |
(1) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company was currently accreting interest income over the expected life of the loans for the period ended June 30, 2022, in accordance with ASC 310-30. |
| |
(2) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments. |
Business First Bancshares, Inc. |
Selected Financial Information |
(Unaudited) |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | March 31, | | | June 30, | | | June 30, | | | June 30, | |
(Dollars in thousands, except per share data) | | 2023 | | | 2023 | | | 2022 | | | 2023 | | | 2022 | |
| | | | | | | | | | | | | | | | | | | | | |
Per Share Data | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Basic Earnings per Common Share | | $ | 0.73 | | | $ | 0.55 | | | $ | 0.61 | | | $ | 1.28 | | | $ | 1.03 | |
Diluted Earnings per Common Share | | $ | 0.73 | | | | 0.54 | | | | 0.61 | | | $ | 1.27 | | | | 1.03 | |
Dividends per Common Share | | | 0.12 | | | | 0.12 | | | | 0.12 | | | | 0.24 | | | | 0.24 | |
Book Value per Common Share | | | 20.87 | | | | 20.77 | | | | 19.73 | | | | 20.87 | | | | 19.73 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Average Common Shares Outstanding | | | 25,101,683 | | | | 24,979,955 | | | | 22,459,603 | | | | 25,041,124 | | | | 21,746,793 | |
Average Diluted Common Shares Outstanding | | | 25,333,372 | | | | 25,222,308 | | | | 22,656,174 | | | | 25,278,145 | | | | 21,916,641 | |
End of Period Common Shares Outstanding | | | 25,344,168 | | | | 25,319,520 | | | | 22,579,451 | | | | 25,344,168 | | | | 22,579,451 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Annualized Performance Ratios | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Return to Common Shareholders on Average Assets (1) | | | 1.18 | % | | | 0.91 | % | | | 1.03 | % | | | 1.04 | % | | | 0.88 | % |
Return to Common Shareholders on Average Common Equity (1) | | | 13.99 | % | | | 10.73 | % | | | 12.25 | % | | | 12.39 | % | | | 10.12 | % |
Net Interest Margin (1) | | | 3.63 | % | | | 3.75 | % | | | 3.99 | % | | | 3.69 | % | | | 3.78 | % |
Net Interest Spread (1) | | | 2.75 | % | | | 2.96 | % | | | 3.81 | % | | | 2.85 | % | | | 3.61 | % |
Efficiency Ratio (2) | | | 60.76 | % | | | 63.27 | % | | | 64.32 | % | | | 61.97 | % | | | 68.08 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Quarterly/Year-to-Date Average Assets | | $ | 6,274,656 | | | $ | 6,123,063 | | | $ | 5,371,639 | | | $ | 6,198,860 | | | $ | 5,145,872 | |
Total Quarterly/Year-to-Date Average Common Equity | | | 527,325 | | | | 516,659 | | | | 450,431 | | | | 521,992 | | | | 448,216 | |
| | | | | | | | | | | | | | | | | | | | | |
Other Expenses | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Salaries and Employee Benefits | | $ | 22,339 | | | $ | 23,176 | | | $ | 21,408 | | | $ | 45,515 | | | $ | 41,111 | |
Occupancy and Bank Premises | | | 2,406 | | | | 2,297 | | | | 2,422 | | | | 4,703 | | | | 4,474 | |
Depreciation and Amortization | | | 1,720 | | | | 1,710 | | | | 1,734 | | | | 3,430 | | | | 3,303 | |
Data Processing | | | 3,035 | | | | 1,485 | | | | 1,886 | | | | 4,520 | | | | 4,002 | |
FDIC Assessment Fees | | | 1,092 | | | | 933 | | | | 661 | | | | 2,025 | | | | 1,404 | |
Legal and Other Professional Fees | | | 961 | | | | 613 | | | | 735 | | | | 1,574 | | | | 1,278 | |
Advertising and Promotions | | | 1,226 | | | | 1,148 | | | | 703 | | | | 2,374 | | | | 1,234 | |
Utilities and Communications | | | 720 | | | | 721 | | | | 822 | | | | 1,441 | | | | 1,601 | |
Ad Valorem Shares Tax | | | 965 | | | | 965 | | | | 812 | | | | 1,930 | | | | 1,625 | |
Directors' Fees | | | 270 | | | | 269 | | | | 212 | | | | 539 | | | | 414 | |
Other Real Estate Owned Expenses and Write-Downs | | | 39 | | | | 130 | | | | 35 | | | | 169 | | | | 49 | |
Merger and Conversion-Related Expenses | | | 68 | | | | 103 | | | | 615 | | | | 171 | | | | 1,426 | |
Other | | | 4,861 | | | | 5,129 | | | | 4,352 | | | | 9,990 | | | | 8,196 | |
Total Other Expenses | | $ | 39,702 | | | $ | 38,679 | | | $ | 36,397 | | | $ | 78,381 | | | $ | 70,117 | |
| | | | | | | | | | | | | | | | | | | | | |
Other Income | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Service Charges on Deposit Accounts | | $ | 2,413 | | | $ | 2,281 | | | $ | 2,086 | | | $ | 4,694 | | | $ | 3,891 | |
Loss on Sales of Securities | | | (61 | ) | | | (1 | ) | | | (8 | ) | | | (62 | ) | | | (39 | ) |
Debit Card and ATM Fee Income | | | 1,646 | | | | 1,570 | | | | 1,657 | | | | 3,216 | | | | 3,158 | |
Bank-Owned Life Insurance Income | | | 547 | | | | 524 | | | | 475 | | | | 1,071 | | | | 844 | |
Gain on Sales of Loans | | | 494 | | | | 611 | | | | 186 | | | | 1,105 | | | | 251 | |
Mortgage Origination Income | | | 56 | | | | 74 | | | | 161 | | | | 130 | | | | 370 | |
Fees and Brokerage Commission | | | 1,791 | | | | 1,813 | | | | 1,749 | | | | 3,604 | | | | 3,584 | |
Gain on Sales of Other Real Estate Owned | | | 14 | | | | 209 | | | | 10 | | | | 223 | | | | 18 | |
Gain (Loss) on Disposal of Other Assets | | | 14 | | | | (5 | ) | | | - | | | | 9 | | | | (717 | ) |
Pass-Through Income from Other Investments | | | 2,812 | | | | 173 | | | | 52 | | | | 2,985 | | | | 167 | |
Gain on Extinguishement of Debt | | | 941 | | | | - | | | | - | | | | 941 | | | | - | |
Other | | | 1,291 | | | | 1,139 | | | | 653 | | | | 2,430 | | | | 1,390 | |
Total Other Income | | $ | 11,958 | | | $ | 8,388 | | | $ | 7,021 | | | $ | 20,346 | | | $ | 12,917 | |
(1) Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention. |
(2) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities. |
Business First Bancshares, Inc. |
Consolidated Balance Sheets |
(Unaudited) |
| | | June 30, | | | March 31, | | | June 30, | |
(Dollars in thousands) | | 2023 | | | 2023 | | | 2022 | |
| | | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Cash and Due From Banks | | $ | 180,972 | | | $ | 159,767 | | | $ | 154,694 | |
Federal Funds Sold | | | 173,850 | | | | 104,250 | | | | 10,817 | |
Securities Available for Sale, at Fair Values | | | 877,774 | | | | 903,945 | | | | 934,676 | |
Mortgage Loans Held for Sale | | | 435 | | | | 423 | | | | 170 | |
Loans and Lease Receivable | | | 4,898,737 | | | | 4,803,060 | | | | 4,113,726 | |
Allowance for Loan Losses | | | (42,013 | ) | | | (41,830 | ) | | | (32,317 | ) |
Net Loans and Lease Receivable | | | 4,856,724 | | | | 4,761,230 | | | | 4,081,409 | |
Premises and Equipment, Net | | | 63,037 | | | | 64,065 | | | | 64,307 | |
Accrued Interest Receivable | | | 26,861 | | | | 25,446 | | | | 22,142 | |
Other Equity Securities | | | 34,824 | | | | 36,739 | | | | 30,302 | |
Other Real Estate Owned | | | 1,587 | | | | 1,365 | | | | 990 | |
Cash Value of Life Insurance | | | 95,302 | | | | 94,755 | | | | 88,370 | |
Deferred Taxes, Net | | | 31,553 | | | | 28,680 | | | | 29,576 | |
Goodwill | | | 88,543 | | | | 88,543 | | | | 88,842 | |
Core Deposit and Customer Intangibles | | | 12,993 | | | | 13,517 | | | | 15,093 | |
Other Assets | | | 10,194 | | | | 7,256 | | | | 8,995 | |
| | | | | | | | | | | | | |
Total Assets | | $ | 6,454,649 | | | $ | 6,289,981 | | | $ | 5,530,383 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Deposits | | | | | | | | | | | | |
Noninterest-Bearing | | $ | 1,429,376 | | | $ | 1,475,782 | | | $ | 1,698,114 | |
Interest-Bearing | | | 3,585,067 | | | | 3,330,396 | | | | 2,960,049 | |
Total Deposits | | | 5,014,443 | | | | 4,806,178 | | | | 4,658,163 | |
| | | | | | | | | | | | | |
Securities Sold Under Agreements to Repurchase | | | 23,230 | | | | 16,669 | | | | 18,477 | |
Federal Funds Purchased | | | - | | | | 14,622 | | | | - | |
Short-Term Borrowings | | | 9 | | | | 9 | | | | 5,020 | |
Bank Term Funding Program | | | 300,000 | | | | 310,000 | | | | - | |
Federal Home Loan Bank Borrowings | | | 362,162 | | | | 395,134 | | | | 254,011 | |
Subordinated Debt | | | 103,822 | | | | 110,596 | | | | 111,055 | |
Subordinated Debt - Trust Preferred Securities | | | 5,000 | | | | 5,000 | | | | 5,000 | |
Accrued Interest Payable | | | 7,666 | | | | 3,513 | | | | 708 | |
Other Liabilities | | | 37,349 | | | | 30,570 | | | | 32,490 | |
| | | | | | | | | | | | | |
Total Liabilities | | | 5,853,681 | | | | 5,692,291 | | | | 5,084,924 | |
| | | | | | | | | | | | | |
Shareholders' Equity | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Preferred Stock | | | 71,930 | | | | 71,930 | | | | - | |
Common Stock | | | 25,344 | | | | 25,320 | | | | 22,579 | |
Additional Paid-In Capital | | | 395,875 | | | | 394,677 | | | | 346,382 | |
Retained Earnings | | | 189,115 | | | | 173,761 | | | | 139,232 | |
Accumulated Other Comprehensive Loss | | | (81,296 | ) | | | (67,998 | ) | | | (62,734 | ) |
| | | | | | | | | | | | | |
Total Shareholders' Equity | | | 600,968 | | | | 597,690 | | | | 445,459 | |
| | | | | | | | | | | | | |
Total Liabilities and Shareholders' Equity | | $ | 6,454,649 | | | $ | 6,289,981 | | | $ | 5,530,383 | |
Business First Bancshares, Inc. |
Consolidated Statements of Income |
(Unaudited) |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | March 31, | | | June 30, | | | June 30, | | | June 30, | |
(Dollars in thousands) | | 2023 | | | 2023 | | | 2022 | | | 2023 | | | 2022 | |
| | | | | | | | | | | | | | | | | | | | | |
Interest Income: | | | | | | | | | | | | | | | | | | | | |
Interest and Fees on Loans | | $ | 79,223 | | | $ | 73,768 | | | $ | 49,639 | | | $ | 152,991 | | | $ | 89,822 | |
Interest and Dividends on Securities | | | 5,097 | | | | 4,782 | | | | 4,143 | | | | 9,879 | | | | 7,987 | |
Interest on Federal Funds Sold and Due From Banks | | | 1,528 | | | | 942 | | | | 232 | | | | 2,470 | | | | 327 | |
Total Interest Income | | | 85,848 | | | | 79,492 | | | | 54,014 | | | | 165,340 | | | | 98,136 | |
| | | | | | | | | | | | | | | | | | | | | |
Interest Expense: | | | | | | | | | | | | | | | | | | | | |
Interest on Deposits | | | 23,680 | | | | 18,928 | | | | 2,557 | | | | 42,608 | | | | 4,820 | |
Interest on Borrowings | | | 8,842 | | | | 7,815 | | | | 1,895 | | | | 16,657 | | | | 3,279 | |
Total Interest Expense | | | 32,522 | | | | 26,743 | | | | 4,452 | | | | 59,265 | | | | 8,099 | |
| | | | | | | | | | | | | | | | | | | | | |
Net Interest Income | | | 53,326 | | | | 52,749 | | | | 49,562 | | | | 106,075 | | | | 90,037 | |
| | | | | | | | | | | | | | | | | | | | | |
Provision for Credit Losses | | | 538 | | | | 3,222 | | | | 2,945 | | | | 3,760 | | | | 4,562 | |
| | | | | | | | | | | | | | | | | | | | | |
Net Interest Income After Provision for Credit Losses | | | 52,788 | | | | 49,527 | | | | 46,617 | | | | 102,315 | | | | 85,475 | |
| | | | | | | | | | | | | | | | | | | | | |
Other Income: | | | | | | | | | | | | | | | | | | | | |
Service Charges on Deposit Accounts | | | 2,413 | | | | 2,281 | | | | 2,086 | | | | 4,694 | | | | 3,891 | |
Loss on Sales of Securities | | | (61 | ) | | | (1 | ) | | | (8 | ) | | | (62 | ) | | | (39 | ) |
Gain on Sales of Loans | | | 494 | | | | 611 | | | | 186 | | | | 1,105 | | | | 251 | |
Other Income | | | 9,112 | | | | 5,497 | | | | 4,757 | | | | 14,609 | | | | 8,814 | |
Total Other Income | | | 11,958 | | | | 8,388 | | | | 7,021 | | | | 20,346 | | | | 12,917 | |
| | | | | | | | | | | | | | | | | | | | | |
Other Expenses: | | | | | | | | | | | | | | | | | | | | |
Salaries and Employee Benefits | | | 22,339 | | | | 23,176 | | | | 21,408 | | | | 45,515 | | | | 41,111 | |
Occupancy and Equipment Expense | | | 5,112 | | | | 5,001 | | | | 4,914 | | | | 10,113 | | | | 9,327 | |
Merger and Conversion-Related Expense | | | 68 | | | | 103 | | | | 615 | | | | 171 | | | | 1,426 | |
Other Expenses | | | 12,183 | | | | 10,399 | | | | 9,460 | | | | 22,582 | | | | 18,253 | |
Total Other Expenses | | | 39,702 | | | | 38,679 | | | | 36,397 | | | | 78,381 | | | | 70,117 | |
| | | | | | | | | | | | | | | | | | | | | |
Income Before Income Taxes | | | 25,044 | | | | 19,236 | | | | 17,241 | | | | 44,280 | | | | 28,275 | |
| | | | | | | | | | | | | | | | | | | | | |
Provision for Income Taxes | | | 5,305 | | | | 4,211 | | | | 3,484 | | | | 9,516 | | | | 5,787 | |
| | | | | | | | | | | | | | | | | | | | | |
Net Income | | | 19,739 | | | | 15,025 | | | | 13,757 | | | | 34,764 | | | | 22,488 | |
| | | | | | | | | | | | | | | | | | | | | |
Preferred Stock Dividends | | | (1,350 | ) | | | (1,350 | ) | | | - | | | | (2,700 | ) | | | - | |
| | | | | | | | | | | | | | | | | | | | | |
Net Income Available to Common Shareholders | | $ | 18,389 | | | $ | 13,675 | | | $ | 13,757 | | | $ | 32,064 | | | $ | 22,488 | |
Business First Bancshares, Inc. |
Consolidated Net Interest Margin |
(Unaudited) |
| | | Three Months Ended | |
| | | June 30, 2023 | | | March 31, 2023 | | | June 30, 2022 | |
| | | Average | | | | | | | | | | | Average | | | | | | | | | | | Average | | | | | | | | | |
| | | Outstanding | | | Interest Earned / | | | Average | | | Outstanding | | | Interest Earned / | | | Average | | | Outstanding | | | Interest Earned / | | | Average | |
(Dollars in thousands) | | Balance | | | Interest Paid | | | Yield / Rate | | | Balance | | | Interest Paid | | | Yield / Rate | | | Balance | | | Interest Paid | | | Yield / Rate | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 4,861,783 | | | $ | 79,223 | | | | 6.54 | % | | $ | 4,719,906 | | | $ | 73,768 | | | | 6.34 | % | | $ | 3,894,899 | | | $ | 49,639 | | | | 5.11 | % |
Securities | | | 916,421 | | | | 5,097 | | | | 2.23 | % | | | 927,491 | | | | 4,782 | | | | 2.09 | % | | | 966,960 | | | | 4,143 | | | | 1.72 | % |
Interest-Bearing Deposit in Other Banks | | | 117,086 | | | | 1,528 | | | | 5.23 | % | | | 57,478 | | | | 942 | | | | 6.65 | % | | | 122,175 | | | | 232 | | | | 0.76 | % |
Total Interest-Earning Assets | | | 5,895,290 | | | | 85,848 | | | | 5.84 | % | | | 5,704,875 | | | | 79,492 | | | | 5.65 | % | | | 4,984,034 | | | | 54,014 | | | | 4.35 | % |
Allowance for Loan Losses | | | (42,010 | ) | | | | | | | | | | | (41,533 | ) | | | | | | | | | | | (29,945 | ) | | | | | | | | |
Noninterest-Earning Assets | | | 421,376 | | | | | | | | | | | | 459,721 | | | | | | | | | | | | 417,550 | | | | | | | | | |
Total Assets | | $ | 6,274,656 | | | $ | 85,848 | | | | | | | $ | 6,123,063 | | | $ | 79,492 | | | | | | | $ | 5,371,639 | | | $ | 54,014 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Bearing Deposits | | $ | 3,405,221 | | | $ | 23,680 | | | | 2.79 | % | | $ | 3,339,493 | | | $ | 18,928 | | | | 2.30 | % | | $ | 2,981,613 | | | $ | 2,557 | | | | 0.34 | % |
Subordinated Debt | | | 108,619 | | | | 1,251 | | | | 4.62 | % | | | 110,647 | | | | 1,389 | | | | 5.09 | % | | | 111,107 | | | | 1,300 | | | | 4.69 | % |
Subordinated Debt - Trust Preferred Securities | | | 5,000 | | | | 108 | | | | 8.66 | % | | | 5,000 | | | | 98 | | | | 7.95 | % | | | 5,000 | | | | 52 | | | | 4.17 | % |
Bank Term Funding Program | | | 384,816 | | | | 4,309 | | | | 4.49 | % | | | 34,444 | | | | 380 | | | | 4.47 | % | | | - | | | | - | | | | 0.00 | % |
Advances from Federal Home Loan Bank (FHLB) | | | 298,324 | | | | 3,038 | | | | 4.08 | % | | | 517,934 | | | | 5,842 | | | | 4.57 | % | | | 171,224 | | | | 506 | | | | 1.19 | % |
First National Bankers Bank Line of Credit | | | - | | | | - | | | | 0.00 | % | | | - | | | | - | | | | 0.00 | % | | | 3,333 | | | | 21 | | | | 2.53 | % |
Other Borrowings | | | 22,109 | | | | 136 | | | | 2.47 | % | | | 20,895 | | | | 106 | | | | 2.06 | % | | | 24,927 | | | | 16 | | | | 0.26 | % |
Total Interest-Bearing Liabilities | | | 4,224,089 | | | | 32,522 | | | | 3.09 | % | | | 4,028,413 | | | | 26,743 | | | | 2.69 | % | | | 3,297,204 | | | | 4,452 | | | | 0.54 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-Bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-Bearing Deposits | | $ | 1,410,983 | | | | | | | | | | | $ | 1,473,186 | | | | | | | | | | | $ | 1,596,174 | | | | | | | | | |
Other Liabilities | | | 40,329 | | | | | | | | | | | | 32,875 | | | | | | | | | | | | 27,830 | | | | | | | | | |
Total Noninterest-Bearing Liabilities | | | 1,451,312 | | | | | | | | | | | | 1,506,061 | | | | | | | | | | | | 1,624,004 | | | | | | | | | |
Shareholders' Equity: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Common Shareholders' Equity | | | 527,325 | | | | | | | | | | | | 516,659 | | | | | | | | | | | | 450,431 | | | | | | | | | |
Preferred Equity | | | 71,930 | | | | | | | | | | | | 71,930 | | | | | | | | | | | | - | | | | | | | | | |
Total Shareholders' Equity | | | 599,255 | | | | | | | | | | | | 588,589 | | | | | | | | | | | | 450,431 | | | | | | | | | |
Total Liabilities and Shareholders' Equity | | $ | 6,274,656 | | | | | | | | | | | $ | 6,123,063 | | | | | | | | | | | $ | 5,371,639 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Interest Spread | | | | | | | | | | | 2.75 | % | | | | | | | | | | | 2.96 | % | | | | | | | | | | | 3.81 | % |
Net Interest Income | | | | | | $ | 53,326 | | | | | | | | | | | $ | 52,749 | | | | | | | | | | | $ | 49,562 | | | | | |
Net Interest Margin | | | | | | | | | | | 3.63 | % | | | | | | | | | | | 3.75 | % | | | | | | | | | | | 3.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Overall Cost of Funds | | | | | | | | | | | 2.31 | % | | | | | | | | | | | 1.97 | % | | | | | | | | | | | 0.36 | % |
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention. |
Business First Bancshares, Inc. |
Consolidated Net Interest Margin |
(Unaudited) |
| | | Six Months Ended | |
| | | June 30, 2023 | | | June 30, 2022 | |
| | | Average | | | | | | | | | | | Average | | | | | | | | | |
| | | Outstanding | | | Interest Earned / | | | Average | | | Outstanding | | | Interest Earned / | | | Average | |
(Dollars in thousands) | | Balance | | | Interest Paid | | | Yield / Rate | | | Balance | | | Interest Paid | | | Yield / Rate | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Assets | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Earning Assets: | | | | | | | | | | | | | | | | | | | | | | | | |
Total Loans | | $ | 4,790,843 | | | $ | 152,991 | | | | 6.44 | % | | $ | 3,640,470 | | | $ | 89,822 | | | | 4.98 | % |
Securities | | | 921,958 | | | | 9,879 | | | | 2.16 | % | | | 986,107 | | | | 7,987 | | | | 1.63 | % |
Interest-Bearing Deposit in Other Banks | | | 87,282 | | | | 2,470 | | | | 5.71 | % | | | 171,662 | | | | 327 | | | | 0.38 | % |
Total Interest-Earning Assets | | | 5,800,083 | | | | 165,340 | | | | 5.75 | % | | | 4,798,239 | | | | 98,136 | | | | 4.12 | % |
Allowance for Loan Losses | | | (41,772 | ) | | | | | | | | | | | (29,602 | ) | | | | | | | | |
Noninterest-Earning Assets | | | 440,549 | | | | | | | | | | | | 377,235 | | | | | | | | | |
Total Assets | | $ | 6,198,860 | | | $ | 165,340 | | | | | | | $ | 5,145,872 | | | $ | 98,136 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities and Shareholders' Equity | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-Bearing Deposits | | $ | 3,372,358 | | | $ | 42,608 | | | | 2.55 | % | | $ | 2,932,228 | | | $ | 4,820 | | | | 0.33 | % |
Subordinated Debt | | | 109,634 | | | | 2,640 | | | | 4.86 | % | | | 101,231 | | | | 2,415 | | | | 4.81 | % |
Subordinated Debt - Trust Preferred Securities | | | 5,000 | | | | 206 | | | | 8.31 | % | | | 5,000 | | | | 94 | | | | 3.79 | % |
Bank Term Funding Program | | | 207,411 | | | | 4,689 | | | | 4.56 | % | | | - | | | | - | | | | 0.00 | % |
Advances from Federal Home Loan Bank (FHLB) | | | 410,348 | | | | 8,880 | | | | 4.36 | % | | | 125,800 | | | | 729 | | | | 1.17 | % |
First National Bankers Bank Line of Credit | | | - | | | | - | | | | 0.00 | % | | | 1,667 | | | | 21 | | | | 2.54 | % |
Other Borrowings | | | 21,502 | | | | 242 | | | | 2.27 | % | | | 22,297 | | | | 20 | | | | 0.18 | % |
Total Interest-Bearing Liabilities | | | 4,126,253 | | | | 59,265 | | | | 2.90 | % | | | 3,188,223 | | | | 8,099 | | | | 0.51 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-Bearing Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
Noninterest-Bearing Deposits | | | 1,442,084 | | | | | | | | | | | | 1,483,095 | | | | | | | | | |
Other Liabilities | | | 36,601 | | | | | | | | | | | | 26,338 | | | | | | | | | |
Total Noninterest-Bearing Liabilities | | | 1,478,685 | | | | | | | | | | | | 1,509,433 | | | | | | | | | |
Shareholders' Equity: | | | | | | | | | | | | | | | | | | | | | | | | |
Common Shareholders' Equity | | | 521,992 | | | | | | | | | | | | 448,216 | | | | | | | | | |
Preferred Equity | | | 71,930 | | | | | | | | | | | | - | | | | | | | | | |
Total Shareholders' Equity | | | 593,922 | | | | | | | | | | | | 448,216 | | | | | | | | | |
Total Liabilities and Shareholders' Equity | | $ | 6,198,860 | | | | | | | | | | | $ | 5,145,872 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net Interest Spread | | | | | | | | | | | 2.85 | % | | | | | | | | | | | 3.61 | % |
Net Interest Income | | | | | | $ | 106,075 | | | | | | | | | | | $ | 90,037 | | | | | |
Net Interest Margin | | | | | | | | | | | 3.69 | % | | | | | | | | | | | 3.78 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Overall Cost of Funds | | | | | | | | | | | 2.15 | % | | | | | | | | | | | 0.35 | % |
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention. |
Business First Bancshares, Inc. |
Non-GAAP Measures |
(Unaudited) |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | March 31, | | | June 30, | | | June 30, | | | June 30, | |
(Dollars in thousands, except per share data) | | 2023 | | | 2023 | | | 2022 | | | 2023 | | | 2022 | |
| | | | | | | | | | | | | | | | | | | | | |
Interest Income: | | | | | | | | | | | | | | | | | | | | |
Interest income | | $ | 85,848 | | | $ | 79,492 | | | $ | 54,014 | | | $ | 165,340 | | | $ | 98,136 | |
Core interest income | | | 85,848 | | | | 79,492 | | | | 54,014 | | | | 165,340 | | | | 98,136 | |
Interest Expense: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 32,522 | | | | 26,743 | | | | 4,452 | | | | 59,265 | | | | 8,099 | |
Core interest expense | | | 32,522 | | | | 26,743 | | | | 4,452 | | | | 59,265 | | | | 8,099 | |
Provision for Credit Losses: (b) | | | | | | | | | | | | | | | | | | | | |
Provision for credit losses | | | 538 | | | | 3,222 | | | | 2,945 | | | | 3,760 | | | | 4,562 | |
Core provision expense | | | 538 | | | | 3,222 | | | | 2,945 | | | | 3,760 | | | | 4,562 | |
Other Income: | | | | | | | | | | | | | | | | | | | | |
Other income | | | 11,958 | | | | 8,388 | | | | 7,021 | | | | 20,346 | | | | 12,917 | |
Losses on former bank premises and equipment | | | - | | | | - | | | | - | | | | - | | | | 717 | |
Losses on sale of securities | | | 61 | | | | 1 | | | | 8 | | | | 62 | | | | 39 | |
Gain on extinguishment of debt | | | (941 | ) | | | - | | | | - | | | | (941 | ) | | | - | |
Core other income | | | 11,078 | | | | 8,389 | | | | 7,029 | | | | 19,467 | | | | 13,673 | |
Other Expense: | | | | | | | | | | | | | | | | | | | | |
Other expense | | | 39,702 | | | | 38,679 | | | | 36,397 | | | | 78,381 | | | | 70,117 | |
Acquisition-related expenses (2) | | | (68 | ) | | | (103 | ) | | | (708 | ) | | | (171 | ) | | | (1,519 | ) |
Occupancy and bank premises - storm repair | | | - | | | | - | | | | (270 | ) | | | - | | | | (501 | ) |
Core other expense | | | 39,634 | | | | 38,576 | | | | 35,419 | | | | 78,210 | | | | 68,097 | |
Pre-Tax Income: (a) | | | | | | | | | | | | | | | | | | | | |
Pre-tax income | | | 25,044 | | | | 19,236 | | | | 17,241 | | | | 44,280 | | | | 28,275 | |
Losses on former bank premises and equipment | | | - | | | | - | | | | - | | | | - | | | | 717 | |
Losses on sale of securities | | | 61 | | | | 1 | | | | 8 | | | | 62 | | | | 39 | |
Gain on extinguishment of debt | | | (941 | ) | | | - | | | | - | | | | (941 | ) | | | - | |
Acquisition-related expenses (2) | | | 68 | | | | 103 | | | | 708 | | | | 171 | | | | 1,519 | |
Occupancy and bank premises - storm repair | | | - | | | | - | | | | 270 | | | | - | | | | 501 | |
Core pre-tax income | | | 24,232 | | | | 19,340 | | | | 18,227 | | | | 43,572 | | | | 31,051 | |
Provision for Income Taxes: (1) | | | | | | | | | | | | | | | | | | | | |
Provision for income taxes | | | 5,305 | | | | 4,211 | | | | 3,484 | | | | 9,516 | | | | 5,787 | |
Tax on losses on former bank premises and equipment | | | - | | | | - | | | | - | | | | - | | | | 151 | |
Tax on losses on sale of securities | | | 13 | | | | - | | | | 2 | | | | 13 | | | | 9 | |
Gain on extinguishment of debt | | | (199 | ) | | | - | | | | - | | | | (199 | ) | | | - | |
Tax on acquisition-related expenses (2) | | | 14 | | | | 6 | | | | 126 | | | | 20 | | | | 174 | |
Tax on occupancy and bank premises - storm repair | | | - | | | | - | | | | 57 | | | | - | | | | 106 | |
Core provision for income taxes | | | 5,133 | | | | 4,217 | | | | 3,669 | | | | 9,350 | | | | 6,227 | |
Preferred Dividends: | | | | | | | | | | | | | | | | | | | | |
Preferred dividends | | | 1,350 | | | | 1,350 | | | | - | | | | 2,700 | | | | - | |
Core preferred dividends | | | 1,350 | | | | 1,350 | | | | - | | | | 2,700 | | | | - | |
Net Income Available to Common Shareholders: | | | | | | | | | | | | | | | | | | | | |
Net income available to common shareholders | | | 18,389 | | | | 13,675 | | | | 13,757 | | | | 32,064 | | | | 22,488 | |
Losses on former bank premises and equipment, net of tax | | | - | | | | - | | | | - | | | | - | | | | 566 | |
Losses on sale of securities, net of tax | | | 48 | | | | 1 | | | | 6 | | | | 49 | | | | 30 | |
Gain on extinguishment of debt, net of tax | | | (742 | ) | | | - | | | | - | | | | (742 | ) | | | - | |
Acquisition-related expenses (2), net of tax | | | 54 | | | | 97 | | | | 582 | | | | 151 | | | | 1,345 | |
Occupancy and bank premises - storm repair, net of tax | | | - | | | | - | | | | 213 | | | | - | | | | 395 | |
Core net income available to common shareholders | | $ | 17,749 | | | $ | 13,773 | | | $ | 14,558 | | | $ | 31,522 | | | $ | 24,824 | |
| | | | | | | | | | | | | | | | | | | | | |
Pre-tax, pre-provision earnings available to common shareholders (a+b) | | $ | 25,582 | | | $ | 22,458 | | | $ | 20,186 | | | $ | 48,040 | | | $ | 32,837 | |
Losses on former bank premises and equipment | | | - | | | | - | | | | - | | | | - | | | | 717 | |
Loss on sale of securities | | | 61 | | | | 1 | | | | 8 | | | | 62 | | | | 39 | |
Gain on extinguishment of debt | | | (941 | ) | | | - | | | | - | | | | (941 | ) | | | - | |
Acquisition-related expenses (2) | | | 68 | | | | 103 | | | | 708 | | | | 171 | | | | 1,519 | |
Occupancy and bank premises - storm repair | | | - | | | | - | | | | 270 | | | | - | | | | 501 | |
Core pre-tax, pre-provision earnings | | $ | 24,770 | | | $ | 22,562 | | | $ | 21,172 | | | $ | 47,332 | | | $ | 35,613 | |
| | | | | | | | | | | | | | | | | | | | | |
Average Diluted Common Shares Outstanding | | | 25,333,372 | | | | 25,222,308 | | | | 22,656,174 | | | | 25,278,145 | | | | 21,916,641 | |
| | | | | | | | | | | | | | | | | | | | | |
Diluted Earnings Per Common Share: | | | | | | | | | | | | | | | | | | | | |
Diluted earnings per common share | | $ | 0.73 | | | $ | 0.54 | | | $ | 0.61 | | | $ | 1.27 | | | $ | 1.03 | |
Losses on former bank premises and equipment, net of tax | | | - | | | | - | | | | - | | | | - | | | | 0.03 | |
Loss on sale of securities, net of tax | | | - | | | | - | | | | - | | | | - | | | | - | |
Gain on extinguishment of debt, net of tax | | | (0.03 | ) | | | - | | | | - | | | | (0.03 | ) | | | - | |
Acquisition-related expenses (2), net of tax | | | 0.00 | | | | 0.01 | | | | 0.02 | | | | 0.01 | | | | 0.06 | |
Occupancy and bank premises -storm repair, net of tax | | | - | | | | - | | | | 0.01 | | | | - | | | | 0.02 | |
Core diluted earnings per common share | | $ | 0.70 | | | $ | 0.55 | | | $ | 0.64 | | | $ | 1.25 | | | $ | 1.14 | |
| | | | | | | | | | | | | | | | | | | | | |
Pre-tax, pre-provision profit diluted earnings per common share | | $ | 1.01 | | | $ | 0.89 | | | $ | 0.89 | | | $ | 1.90 | | | $ | 1.50 | |
Losses on former bank premises and equipment | | | - | | | | - | | | | - | | | | - | | | | 0.03 | |
Loss on sale of securities | | | - | | | | - | | | | - | | | | - | | | | - | |
Gain on extinguishment of debt | | | (0.04 | ) | | | - | | | | - | | | | (0.04 | ) | | | - | |
Acquisition-related expenses (2) | | | 0.01 | | | | - | | | | 0.03 | | | | 0.01 | | | | 0.07 | |
Occupancy and bank premises - storm repair | | | - | | | | - | | | | 0.01 | | | | - | | | | 0.02 | |
Core pre-tax, pre-provision diluted earnings per common share | | $ | 0.98 | | | $ | 0.89 | | | $ | 0.93 | | | $ | 1.87 | | | $ | 1.62 | |
(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2023 and 2022. These rates approximated the marginal tax rates. |
(2) Includes merger and conversion-related expenses and salary and employee benefits. |
Business First Bancshares, Inc. |
Non-GAAP Measures |
(Unaudited) |
| | | June 30, | | | March 31, | | | June 30, | |
(Dollars in thousands, except per share data) | | 2023 | | | 2023 | | | 2022 | |
| | | | | | | | | | | | | |
Total Shareholders' (Common) Equity: | | | | | | | | | | | | |
Total shareholders' equity | | $ | 600,968 | | | $ | 597,690 | | | $ | 445,459 | |
Preferred stock | | | (71,930 | ) | | | (71,930 | ) | | | - | |
Total common shareholders' equity | | | 529,038 | | | | 525,760 | | | | 445,459 | |
Goodwill | | | (88,543 | ) | | | (88,543 | ) | | | (88,842 | ) |
Core deposit and customer intangible | | | (12,993 | ) | | | (13,517 | ) | | | (15,093 | ) |
Total tangible common equity | | $ | 427,502 | | | $ | 423,700 | | | $ | 341,524 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total Assets: | | | | | | | | | | | | |
Total assets | | $ | 6,454,649 | | | $ | 6,289,981 | | | $ | 5,530,383 | |
Goodwill | | | (88,543 | ) | | | (88,543 | ) | | | (88,842 | ) |
Core deposit and customer intangible | | | (12,993 | ) | | | (13,517 | ) | | | (15,093 | ) |
Total tangible assets | | $ | 6,353,113 | | | $ | 6,187,921 | | | $ | 5,426,448 | |
| | | | | | | | | | | | | |
Common shares outstanding | | | 25,344,168 | | | | 25,319,520 | | | | 22,579,451 | |
| | | | | | | | | | | | | |
Book value per common share | | $ | 20.87 | | | $ | 20.77 | | | $ | 19.73 | |
Tangible book value per common share | | $ | 16.87 | | | $ | 16.73 | | | $ | 15.13 | |
Common equity to total assets | | | 8.20 | % | | | 8.36 | % | | | 8.05 | % |
Tangible common equity to tangible assets | | | 6.73 | % | | | 6.85 | % | | | 6.29 | % |
Business First Bancshares, Inc. |
Non-GAAP Measures |
(Unaudited) |
| | | Three Months Ended | | | Six Months Ended | |
| | | June 30, | | | March 31, | | | June 30, | | | June 30, | | | June 30, | |
(Dollars in thousands, except per share data) | | 2023 | | | 2023 | | | 2022 | | | 2023 | | | 2022 | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Total Quarterly Average Assets | | $ | 6,274,656 | | | $ | 6,123,063 | | | $ | 5,371,639 | | | $ | 6,198,860 | | | $ | 5,145,872 | |
Total Quarterly Average Common Equity | | $ | 527,325 | | | $ | 516,659 | | | $ | 450,431 | | | $ | 521,992 | | | $ | 448,216 | |
| | | | | | | | | | | | | | | | | | | | | |
Net Income Available to Common Shareholders: | | | | | | | | | | | | | | | | | | | | |
Net income available to common shareholders | | $ | 18,389 | | | $ | 13,675 | | | $ | 13,757 | | | $ | 32,064 | | | $ | 22,488 | |
Losses on former bank premises and equipment, net of tax | | | - | | | | - | | | | - | | | | - | | | | 566 | |
Losses on sale of securities, net of tax | | | 48 | | | | 1 | | | | 6 | | | | 49 | | | | 30 | |
Gain on extinguishment of debt | | | (742 | ) | | | - | | | | - | | | | (742 | ) | | | - | |
Acquisition-related expenses, net of tax | | | 54 | | | | 97 | | | | 582 | | | | 151 | | | | 1,345 | |
Occupancy and bank premises - storm repair, net of tax | | | - | | | | - | | | | 213 | | | | - | | | | 395 | |
Core net income available to common shareholders | | $ | 17,749 | | | $ | 13,773 | | | $ | 14,558 | | | $ | 31,522 | | | $ | 24,824 | |
| | | | | | | | | | | | | | | | | | | | | |
Return to common shareholders on average assets (annualized) (2) | | | 1.18 | % | | | 0.91 | % | | | 1.03 | % | | | 1.04 | % | | | 0.88 | % |
Core return on average assets (annualized) (2) | | | 1.13 | % | | | 0.91 | % | | | 1.09 | % | | | 1.03 | % | | | 0.97 | % |
Return to common shareholders on average common equity (annualized) (2) | | | 13.99 | % | | | 10.73 | % | | | 12.25 | % | | | 12.39 | % | | | 10.12 | % |
Core return on average common equity (annualized) (2) | | | 13.50 | % | | | 10.81 | % | | | 12.96 | % | | | 12.18 | % | | | 11.17 | % |
| | | | | | | | | | | | | | | | | | | | | |
Interest Income: | | | | | | | | | | | | | | | | | | | | |
Interest income | | $ | 85,848 | | | $ | 79,492 | | | $ | 54,014 | | | $ | 165,340 | | | $ | 98,136 | |
Core interest income | | | 85,848 | | | | 79,492 | | | | 54,014 | | | | 165,340 | | | | 98,136 | |
Interest Expense: | | | | | | | | | | | | | | | | | | | | |
Interest expense | | | 32,522 | | | | 26,743 | | | | 4,452 | | | | 59,265 | | | | 8,099 | |
Core interest expense | | | 32,522 | | | | 26,743 | | | | 4,452 | | | | 59,265 | | | | 8,099 | |
Other Income: | | | | | | | | | | | | | | | | | | | | |
Other income | | | 11,958 | | | | 8,388 | | | | 7,021 | | | | 20,346 | | | | 12,917 | |
Losses on former bank premises and equipment | | | - | | | | - | | | | - | | | | - | | | | 717 | |
Loss on sale of securities | | | 61 | | | | 1 | | | | 8 | | | | 62 | | | | 39 | |
Gain on extinguishment of debt | | | (941 | ) | | | - | | | | - | | | | (941 | ) | | | - | |
Core other income | | | 11,078 | | | | 8,389 | | | | 7,029 | | | | 19,467 | | | | 13,673 | |
Other Expense: | | | | | | | | | | | | | | | | | | | | |
Other expense | | | 39,702 | | | | 38,679 | | | | 36,397 | | | | 78,381 | | | | 70,117 | |
Acquisition-related expenses | | | (68 | ) | | | (103 | ) | | | (708 | ) | | | (171 | ) | | | (1,519 | ) |
Occupancy and bank premises - storm repair | | | - | | | | - | | | | (270 | ) | | | - | | | | (501 | ) |
Core other expense | | $ | 39,634 | | | $ | 38,576 | | | $ | 35,419 | | | $ | 78,210 | | | $ | 68,097 | |
| | | | | | | | | | | | | | | | | | | | | |
Efficiency Ratio: | | | | | | | | | | | | | | | | | | | | |
Other expense (a) | | $ | 39,702 | | | $ | 38,679 | | | $ | 36,397 | | | $ | 78,381 | | | $ | 70,117 | |
Core other expense (c) | | $ | 39,634 | | | $ | 38,576 | | | $ | 35,419 | | | $ | 78,210 | | | $ | 68,097 | |
Net interest and other income (1) (b) | | $ | 65,345 | | | $ | 61,138 | | | $ | 56,591 | | | $ | 126,483 | | | $ | 102,993 | |
Core net interest and other income (1) (d) | | $ | 64,404 | | | $ | 61,138 | | | $ | 56,591 | | | $ | 125,542 | | | $ | 103,710 | |
Efficiency ratio (a/b) | | | 60.76 | % | | | 63.27 | % | | | 64.32 | % | | | 61.97 | % | | | 68.08 | % |
Core efficiency ratio (c/d) | | | 61.54 | % | | | 63.10 | % | | | 62.59 | % | | | 62.30 | % | | | 65.66 | % |
| | | | | | | | | | | | | | | | | | | | | |
Total Average Interest-Earnings Assets | | $ | 5,895,290 | | | $ | 5,704,875 | | | $ | 4,984,034 | | | $ | 5,800,083 | | | $ | 4,798,239 | |
| | | | | | | | | | | | | | | | | | | | | |
Net Interest Income: | | | | | | | | | | | | | | | | | | | | |
Net interest income | | $ | 53,326 | | | $ | 52,749 | | | $ | 49,562 | | | $ | 106,075 | | | $ | 90,037 | |
Loan discount accretion | | | (2,059 | ) | | | (2,912 | ) | | | (2,588 | ) | | | (4,971 | ) | | | (3,508 | ) |
Net interest income excluding loan discount accretion | | $ | 51,267 | | | $ | 49,837 | | | $ | 46,974 | | | $ | 101,104 | | | $ | 86,529 | |
| | | | | | | | | | | | | | | | | | | | | |
Net interest margin (2) | | | 3.63 | % | | | 3.75 | % | | | 3.99 | % | | | 3.69 | % | | | 3.78 | % |
Net interest margin excluding loan discount accretion (2) | | | 3.49 | % | | | 3.54 | % | | | 3.78 | % | | | 3.52 | % | | | 3.64 | % |
Net interest spread (2) | | | 2.75 | % | | | 2.96 | % | | | 3.81 | % | | | 2.85 | % | | | 3.61 | % |
Net interest spread excluding loan discount accretion (2) | | | 2.51 | % | | | 2.75 | % | | | 3.60 | % | | | 2.63 | % | | | 3.46 | % |
(1) Excludes gains/losses on sales of securities. |
(2) Calculated utilizing an Actual/365 day count convention. |
