Note 15 - Shareholders' Equity and Regulatory Matters -

12 Months Ended

Dec. 31, 2018

Notes to Financial Statements

Regulatory Capital Requirements under Banking Regulations [Text Block]

Note

15

– Shareholders’

Equity and Regulatory Matters –

Shareholders’ Equity of the Company includes the undistributed earnings of the Bank. The Company pays dividends from its assets, which are provided primarily by dividends from the Bank. Certain restrictions exist regarding the ability of the Bank to pay cash distributions. Louisiana statutes require approval to pay distributions in excess of a bank’s earnings in the current year plus retained net profits for the preceding year. The Company paid quarterly common stock dividends totaling

$0.30

per share and

$0.23

per share for the years ended

December 31, 2018

and

2017,

respectively, based upon quarterly financial performance.

The Company and the Bank are subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum regulatory capital requirements can initiate certain mandatory, and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements.

Under the regulatory capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines involving quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification under the prompt corrective action guidelines are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are

not

applicable to bank holding companies.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios. As detailed below, as of

December 31, 2018

and

2017,

the Bank met all of the capital adequacy requirements to which it is subject.

As of

December 31, 2018

and

2017,

the Bank was categorized as well capitalized under the regulatory framework for prompt corrective action. To maintain categorized as well capitalized, the Bank will have to maintain minimum total capital, Tier I capital, risk-based common equity Tier I, and Tier I leverage ratios as disclosed in the table below. There are

no

conditions or events since the most recent notification that management believes have changed the prompt corrective action category.

The following is a summary of the Company’s (consolidated) and the Bank’s actual capital amounts and ratios at

December 31, 2018

and

2017.

To Be Well

Capitalized Under

For Capital

Prompt Corrective

Business First Bancshares, Inc. (Consolidated)

Actual

Adequacy Purposes

Action Provisions

Amount

Ratio

Amount

Ratio

Amount

Ratio

(Dollars in thousands)

December 31, 2018:

Total Capital (to Risk-Weighted Assets)

$

242,144

13.91

%

N/A

N/A

N/A

N/A

Tier I Capital (to Risk-Weighted Assets)

$

205,924

11.83

%

N/A

N/A

N/A

N/A

Common Equity Tier 1 Capital (to Risk-Weighted Assets)

$

205,924

11.83

%

N/A

N/A

N/A

N/A

Tier I Leveraged Capital (to Average Assets)

$

205,924

11.66

%

N/A

N/A

N/A

N/A

December 31, 2017:

Total Capital (to Risk-Weighted Assets)

$

181,565

15.23

%

N/A

N/A

N/A

N/A

Tier I Capital (to Risk-Weighted Assets)

$

172,800

14.49

%

N/A

N/A

N/A

N/A

Common Equity Tier 1 Capital (to Risk-Weighted Assets)

$

172,800

14.49

%

N/A

N/A

N/A

N/A

Tier I Leveraged Capital (to Average Assets)

$

172,800

13.53

%

N/A

N/A

N/A

N/A

											To Be Well
											Capitalized Under
						For Capital					Prompt Corrective
Business First Bank	Actual					Adequacy Purposes					Action Provisions
	Amount		Ratio			Amount		Ratio			Amount		Ratio
	(Dollars in thousands)
December 31, 2018:
Total Capital (to Risk-Weighted Assets)	$	224,356		12.90	%	$	139,126		8.00	%	$	173,908		10.00	%
Tier I Capital (to Risk-Weighted Assets)	$	213,136		12.26	%	$	104,345		6.00	%	$	139,126		8.00	%
Common Equity Tier 1 Capital (to Risk-Weighted Assets)	$	213,136		12.26	%	$	78,259		4.50	%	$	113,040		6.50	%
Tier I Leveraged Capital (to Average Assets)	$	213,136		12.08	%	$	70,592		4.00	%	$	88,241		5.00	%
December 31, 2017:
Total Capital (to Risk-Weighted Assets)	$	120,806		10.24	%	$	94,377		8.00	%	$	117,971		10.00	%
Tier I Capital (to Risk-Weighted Assets)	$	112,041		9.50	%	$	70,783		6.00	%	$	94,377		8.00	%
Common Equity Tier 1 Capital (to Risk-Weighted Assets)	$	112,041		9.50	%	$	53,087		4.50	%	$	76,681		6.50	%
Tier I Leveraged Capital (to Average Assets)	$	112,041		8.78	%	$	51,040		4.00	%	$	63,800		5.00	%