EX-99.1 2 ex_170052.htm EXHIBIT 99.1 ex_170052.htm

 

Exhibit 99.1

 

 

 

         

FOR IMMEDIATE RELEASE         Misty Albrecht

January 22, 2020

 

 

 

 

b1BANK
          225.286.7879
          Misty.Albrecht@b1BANK.com

 

 

BUSINESS FIRST BANCSHARES, INC., ANNOUNCES FINANCIAL RESULTS FOR FISCAL YEAR 2019 AND Q4 2019

 

Baton Rouge, LA (January 22, 2020) – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the year ended December 31, 2019, including net income of $23.8 million, or $1.74 per diluted share, increases of $9.7 million and $0.52, respectively, from the prior year. Core net income for the year ended December 31, 2019, which excludes noncore income and expenses, was $24.6 million, or $1.80 per diluted share, which reflects increases of $7.8 million and $0.35, respectively, from the prior year.

 

“2019 was a year of successful transition for our company,” said Jude Melville, president and CEO. “We rebranded, we opened new locations in growth markets, we solidified relationships from our two most recent acquisitions and we increased core earnings per share year-over-year by almost 25%, while growing organically at a healthy, well capitalized rate and maintaining sound asset quality. I really couldn’t have asked for more from our team over the past year and we take the field just as excited about our opportunities in 2020 as we are celebratory of the year we had in 2019.”  

 

On January 22, 2020, Business First’s board of directors declared a quarterly dividend based upon financial performance for the fourth quarter in the amount of $0.10 per share, same as the prior quarter, to the common shareholders of record as of February 15, 2020. The dividend will be paid on February 28, 2020, or as soon thereafter as practicable.

 

 

   
b1BANK.com  

 

 
2

 

Quarterly Highlights

 

 

●

Improved Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from 0.70% and 0.64%, respectively, at September 30, 2019, to 0.53% and 0.58% at December 31, 2019. Nonperforming assets for the quarter ended December 31, 2019 were impacted by $566,000 in write-downs on other real estate owned properties; however, excluding this impact, credit quality still improved compared to prior quarter.

 

 

●

Loan Growth. Total loans held for investment at December 31, 2019, were $1.7 billion, an increase of $15.5 million compared to September 30, 2019. Loan growth was 3.7% (annualized) for the quarter ended December 31, 2019, and 11.9% for year ended December 31, 2019. Loan growth for the quarter was tempered due to higher than anticipated paydowns and delayed closings due to the holiday calendar.

 

 

●

Net Interest Margin and Spread. Net interest margin and spread were negatively impacted due to the federal funds rate cut of an additional 25 basis points during the quarter ended December 31, 2019. Net interest margin and net interest spread were 4.08% and 3.65%, respectively, for the quarter ended December 31, 2019, compared to 4.10% and 3.66% for the quarter ended September 30, 2019. Excluding loan discount accretion, net interest margin and spread were 3.92% and 3.49%, respectively, for the quarter ended December 31, 2019, compared to 3.99% and 3.55% for the quarter ended September 30, 2019.

 

 

●

Dallas Branch Network Expansion. Business First opened its second full-service banking center in the Dallas, Texas metropolitan area in December 2019.

 

Financial Condition

 

December 31, 2019, Compared to September 30, 2019

 

Balance Sheet

 

As of December 31, 2019, Business First had total assets of $2.3 billion, total loans of $1.7 billion, total deposits of $1.8 billion and total shareholders’ equity of $285.1 million, compared to $2.2 billion, $1.7 billion, $1.7 billion and $280.3 million, respectively, as of September 30, 2019.

 

Total loans held for investment increased by $15.5 million compared to September 30, 2019, or 3.7% annualized, for the quarter ended December 31, 2019. Loan growth was tempered during the quarter due to higher than anticipated payoffs and delayed closings due to the holiday calendar.

 

 

   
b1BANK.com  

 

 
3

 

Book value per common share was $21.47 at December 31, 2019, compared to $21.12 at September 30, 2019. Tangible book value per common share was $17.31 at December 31, 2019, compared to $16.96 at September 30, 2019.

 

Credit Quality

 

Nonperforming loans as a percentage of total loans held for investment decreased from 0.70% as of September 30, 2019, to 0.53% as of December 31, 2019. Nonperforming assets as a percentage of total assets decreased from 0.64% as of September 30, 2019, to 0.58% as of December 31, 2019. A portion of the decrease in nonperforming assets was associated with $566,000 in write-downs on other real estate owned properties during the quarter ended December 31, 2019.

 

 

December 31, 2019, Compared to December 31, 2018

 

Balance Sheet

 

As of December 31, 2019, Business First had total assets of $2.3 billion, total loans of $1.7 billion, total deposits of $1.8 billion and total shareholders’ equity of $285.1 million, compared to $2.1 billion, $1.5 billion, $1.7 billion and $260.1 million, respectively, as of December 31, 2018. The balance sheet increases were largely attributable to organic growth in loans and funding sources.

 

Book value per common share was $21.47 at December 31, 2019, compared to $19.68 at December 31, 2018. Tangible book value per common share was $17.31 at December 31, 2019, compared to $15.34 at December 31, 2018.

 

Credit Quality

 

Nonperforming loans as a percentage of total loans held for investment decreased from 0.89% as of December 31, 2018, to 0.53% as of December 31, 2019. Nonperforming assets as a percentage of total assets decreased from 0.74% as of December 31, 2018, to 0.58% as of December 31, 2019. The decreases were mainly attributable to improved credit quality in relation to the size of the loan portfolio and total assets of Business First.

 

 

   
b1BANK.com  

 

 
4

 

Results of Operations

 

Fourth Quarter 2019 Compared to Third Quarter 2019

 

Net Income and Diluted Earnings Per Share

 

For the quarter ended December 31, 2019, net income was $5.8 million, or $0.42 per diluted share, compared to net income of $5.5 million, or $0.40 per diluted share, for the quarter ended September 30, 2019. The increase was largely attributable to additional interest and fee income on loans and a reduction in provision expense, offset by an adjustment to estimated income tax expense associated with the sale of the Mangham banking center and write-downs on other real estate owned properties.

 

Core net income, which excludes noncore income and expenses, for the quarter ended December 31, 2019, was $6.1 million, or $0.45 per diluted share, compared to core net income of $6.3 million, or $0.46 per diluted share, for the quarter ended September 30, 2019. Notable noncore events impacting earnings for the quarter ended December 31, 2019, included the incurrence of $125,000 in losses associated with the disposal of former bank premises and equipment in noninterest income related to the rebranding of b1BANK and a $216,000 adjustment to estimated income tax expense associated with the sale of the Mangham banking center, compared to $594,000 in losses associated with the disposal of former bank premises and equipment in noninterest income and $288,000 of acquisition-related expenses in noninterest expense for the quarter ended September 30, 2019.

 

Return on Assets and Equity

 

Return on average assets and equity, each on an annualized basis, increased to 1.04% and 8.18%, respectively, for the quarter ended December 31, 2019, compared to 1.02% and 7.93%, respectively, for the quarter ended September 30, 2019.

 

As adjusted, core return on average assets and core return on average equity, each on an annualized basis, were 1.11% and 8.69%, respectively, for the quarter ended December 31, 2019, compared to 1.16% and 9.01%, respectively, for the quarter ended September 30, 2019.

 

Interest Income

 

For the quarter ended December 31, 2019, net interest income totaled $20.6 million and net interest margin and net interest spread were 4.08% and 3.65%, respectively, compared to $20.3 million, 4.10% and 3.66% for the quarter ended September 30, 2019.

 

 

   
b1BANK.com
  

 

 
5

 

Net interest margin and net interest spread (excluding loan discount accretion of $800,000) were 3.92% and 3.49%, respectively, for the quarter ended December 31, 2019, compared to 3.99% and 3.55% (excluding loan discount accretion of $544,000) for the quarter ended September 30, 2019. The ratios were negatively impacted by lower yielding loans due to the federal funds rate cut of 25 basis points at the end of October, offset by a reduction in cost of funds.

 

The average yield on the loan portfolio was 5.82% for the quarter ended December 31, 2019, compared to 5.87% for the quarter ended September 30, 2019. The average

yield on total interest-earning assets was 5.28% for the quarter ended December 31, 2019, compared to 5.32% for the quarter ended September 30, 2019.

 

Interest Expense

 

For the quarter ended December 31, 2019, overall cost of funds (which includes noninterest-bearing deposits) decreased by four basis points, from 1.31% to 1.27%, compared to the quarter ended September 30, 2019. The decrease in cost of funds was largely attributable to an overall reduction in interest rates on Business First’s deposit offerings and increase in noninterest-bearing deposits, offset partially by an increase in interest rates on other borrowings.

 

Provision for Loan Losses

 

During the quarter ended December 31, 2019, Business First recorded a provision for loan losses of $192,000, compared to $479,000 for the quarter ended September 30, 2019. The reserve for the quarter ended December 31, 2019, was impacted by lower net loan growth.

 

Fourth Quarter 2019 Compared to Fourth Quarter 2018

 

Net Income and Diluted Earnings Per Share

 

For the quarter ended December 31, 2019, net income was $5.8 million, or $0.42 per diluted share, compared to net income of $3.4 million, or $0.28 per diluted share, for the quarter ended December 31, 2018. The increase in net income and diluted earnings per share resulted from the overall growth and improved efficiency of Business First over the past 12 months, mainly attributable to growth in net interest income and partially offset by increases in noninterest expenses and income taxes. Both the growth in net interest income and increase in noninterest expenses and income taxes were impacted by the acquisition of Richland State Bank which occurred in December 2018.

 

 

   
b1BANK.com  

 

 
6

 

Core net income, which excludes noncore income and expenses, for the quarter ended December 31, 2019, was $6.1 million, or $0.45 per diluted share, compared to core net income of $4.7 million, or $0.38 per diluted share, for the quarter ended December 31, 2018. Notable noncore events impacting earnings for the quarter ended December 31, 2019, included the incurrence of $125,000 in losses associated with the disposal of former bank premises and equipment in noninterest income related to the rebranding of b1BANK and a $216,000 adjustment to estimated income tax expense associated with the sale of the Mangham banking center, compared to $2.1 million in noninterest expenses related to acquisition-related activities and $588,000 related to gains associated with former premises and equipment, investment and impaired loan sales for the quarter ended December 31, 2018.

 

Return on Assets and Equity

 

Return on average assets and return on average equity, each on an annualized basis, increased to 1.04% and 8.18%, respectively, for the quarter ended December 31, 2019, from 0.75% and 6.03%, respectively, for the quarter ended December 31, 2018.

 

As adjusted, core return on average assets and core return on average equity, each on an annualized basis, were 1.11% and 8.69%, respectively, for the quarter ended December 31, 2019, compared to 1.03% and 8.23%, respectively, for the quarter ended December 31, 2018.

 

Interest Income

 

For the quarter ended December 31, 2019, net interest income totaled $20.6 million and net interest margin and net interest spread were 4.08% and 3.65%, respectively, compared to $17.1 million, 4.07% and 3.70% for the quarter ended December 31, 2018.

 

Net interest margin and net interest spread (excluding loan discount accretion of $800,000) were 3.92% and 3.49%, respectively, for the quarter ended December 31, 2019, compared to 4.01% and 3.63% (excluding loan discount accretion of $283,000) for the quarter ended December 31, 2018. The reductions were largely attributable to the three federal funds rate cuts of 25 basis points which occurred throughout the second half of 2019.

 

 

   
b1BANK.com  

 

 
7

 

The average yield on the loan portfolio was 5.82% for the quarter ended December 31, 2019, compared to 5.72% for the quarter ended December 31, 2018. The average yield on total interest-earning assets was 5.28% for the quarter ended December 31, 2019, compared to 5.13% for the quarter ended December 31, 2018.

 

Interest Expense

 

For the quarter ended December 31, 2019, overall cost of funds (which includes noninterest-bearing deposits) increased by 15 basis points, from 1.12% to 1.27%, compared to the quarter ended December 31, 2018. The increase was largely attributable to an overall increase in interest rates on interest-bearing deposits over the past 12 months and the issuance of subordinated debt in December 2018.

 

Provision for Loan Losses

 

During the quarter ended December 31, 2019, Business First recorded a provision for loan losses of $192,000, compared to $939,000 for the quarter ended December 31, 2018. The large provision for the quarter ended December 31, 2018 was attributable to a single loan.

 

About Business First Bancshares, Inc.

Business First Bancshares, Inc., through its banking subsidiary b1BANK, formerly known as Business First Bank, operates 26 banking centers in markets across Louisiana and in the Dallas, Texas area. b1BANK provides commercial and personal banking, treasury management and wealth solutions services to small to midsize businesses and their owners and employees. Visit www.b1BANK.com for more information. Business First’s common stock is traded on the NASDAQ Global Select Market under the symbol “BFST.”

 

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. These 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 measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, impaired loan sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). 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 the Company’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.

 

 

   
b1BANK.com  

 

 
8

 

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. 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 on Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission, or 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 the Company. 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.

 

 

   
b1BANK.com  

 

 
9

 

Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

 

   

December 31,

    

September 30,

    

June 30,

    

March 31,

    

December 31,

  

(Dollars in thousands)

  

2019

    

2019

    

2019

    

2019

    

2018

  
                                         

Balance Sheet Ratios

                                        
                                         

Loans (HFI) to Deposits

     95.97 %     97.77 %     96.46 %     90.93 %     88.15 %

Shareholders' Equity to Assets Ratio

     12.54 %     12.62 %     12.88 %     12.81 %     12.41 %
                                         
                                         

Loans Receivable Held for Investment

                                        
                                         

Commercial

   $ 390,398     $ 415,163     $ 411,256     $ 389,855     $ 363,640  

Real Estate:

                                        

Construction and Land

     244,181       220,524       227,102       211,888       211,054  

Farmland

     48,681       45,809       47,245       44,066       45,989  

1-4 Family Residential

     293,142       281,413       278,610       275,610       270,583  

Multi-Family Residential

     36,454       31,448       38,698       39,548       39,273  

Nonfarm Nonresidential

     612,608       620,427       561,149       550,103       518,660  

Total Real Estate

     1,235,066       1,199,621       1,152,804       1,121,215       1,085,559  

Consumer

     84,801       79,943       78,513       75,112       79,270  

Total Loans

   $ 1,710,265     $ 1,694,727     $ 1,642,573     $ 1,586,182     $ 1,528,469  
                                         
                                         

Allowance for Loan Losses

                                        
                                         

Balance, Beginning of Period

   $ 12,090     $ 11,603     $ 11,818     $ 11,220     $ 10,273  

Charge-offs – Quarterly

     (190 )     (13 )     (1,565 )     (57 )     (19 )

Recoveries – Quarterly

     32       21       48       22       27  

Provision for Loan Losses – Quarterly

     192       479       1,302       633       939  

Balance, End of Period

   $ 12,124     $ 12,090     $ 11,603     $ 11,818     $ 11,220  
                                         

Allowance for Loan Losses to Total Loans (HFI)

     0.71 %     0.71 %     0.71 %     0.75 %     0.73 %

Net Charge-offs (Recoveries) to Average Total Loans

     0.01 %     0.00 %     0.09 %     0.00 %     0.00 %
                                         
                                         

Nonperforming Assets

                                        
                                         

Nonperforming Loans:

                                        

Nonaccrual Loans

   $ 8,977     $ 11,577     $ 9,363     $ 13,183     $ 11,691  

Loans Past Due 90 Days or More

     72       277       727       77       1,876  

Total Nonperforming Loans

     9,049       11,854       10,090       13,260       13,567  

Other Nonperforming Assets:

                                        

Other Real Estate Owned

     4,036       2,326       2,324       1,683       1,909  

Other Nonperforming Assets

     160       5       6       11       11  

Total Other Nonperforming Assets

     4,196       2,331       2,330       1,694       1,920  

Total Nonperforming Assets

   $ 13,245     $ 14,185     $ 12,420     $ 14,954     $ 15,487  
                                         

Nonperforming Loans to Total Loans (HFI)

     0.53 %     0.70 %     0.61 %     0.84 %     0.89 %

Nonperforming Assets to Total Assets

     0.58 %     0.64 %     0.58 %     0.71 %     0.74 %

 

 

   
b1BANK.com  

 

 
10

 

Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

 

   

Quarter Ended

    

Year Ended

  
(Dollars in thousands, except per  

December 31,

    

September 30,

    

June 30,

    

March 31,

    

December 31,

    

December 31,

    

December 31,

  

share data)

  

2019

    

2019

    

2019

    

2019

    

2018

    

2019

    

2018

  
                                                         

Per Share Data

                                                        
                                                         

Basic Earnings per Common Share

   $ 0.43     $ 0.41     $ 0.51     $ 0.43     $ 0.28     $ 1.79     $ 1.27  

Diluted Earnings per Common Share

   $ 0.42       0.40       0.50       0.41       0.28       1.74       1.22  

Dividends per Common Share

     0.10       0.10       0.10       0.08       0.08       0.38       0.30  

Book Value per Common Share

     21.47       21.12       20.77       20.14       19.68       21.47       19.68  

Tangible Book Value per Common Share (Non-GAAP)

     17.31       16.96       16.60       15.86       15.34       17.31       15.34  
                                                         
                                                         

Average Common Shares Outstanding

     13,277,968       13,315,351       13,361,482       13,287,560       12,099,659       13,310,577       11,124,585  

Average Diluted Shares Outstanding

     13,638,168       13,669,370       13,740,937       13,653,125       12,521,017       13,670,777       11,545,943  

End of Period Common Shares Outstanding

     13,279,363       13,274,823       13,361,482       13,361,482       13,213,280       13,279,363       13,213,280  
                                                         
                                                         

Annualized Performance Ratios

                                                        
                                                         

Return on Average Assets

     1.04 %     1.02 %     1.30 %     1.09 %     0.75 %     1.11 %     0.84 %

Return on Average Equity

     8.18 %     7.93 %     10.13 %     8.62 %     6.03 %     8.70 %     7.04 %

Net Interest Margin

     4.08 %     4.10 %     4.19 %     4.01 %     4.07 %     4.10 %     4.02 %

Net Interest Spread

     3.65 %     3.66 %     3.75 %     3.61 %     3.70 %     3.67 %     3.71 %

Efficiency Ratio (1)

     66.50 %     67.16 %     59.85 %     64.35 %     73.51 %     64.37 %     71.78 %
                                                         
                                                         

Other Operating Expenses

                                                        
                                                         

Salaries and Employee Benefits

   $ 9,025     $ 8,793     $ 8,756     $ 8,552     $ 7,444     $ 35,126     $ 27,862  

Occupancy and Bank Premises

     920       1,230       1,079       1,103       877       4,332       3,509  

Depreciation and Amortization

     588       645       633       628       484       2,494       1,730  

Data Processing

     477       380       576       616       397       2,049       1,557  

FDIC Assessment Fees

     (15 )     (105 )     248       150       276       278       1,221  

Legal and Other Professional Fees

     302       346       353       318       456       1,319       1,695  

Advertising and Promotions

     385       544       279       327       422       1,535       1,239  

Utilities and Communications

     316       397       323       298       238       1,334       1,073  

Ad Valorem Shares Tax

     388       345       345       345       170       1,423       1,135  

Directors' Fees

     119       121       125       205       92       570       436  

Other Real Estate Owned Expenses and Write-Downs

     632       19       72       27       -       750       9  

Merger and Conversion-Related Expenses

     (1 )     350       235       (254 )     1,959       330       3,024  

Other

     2,067       1,813       1,553       1,475       1,594       6,908       5,758  

Total Other Expenses

   $ 15,203     $ 14,878     $ 14,577     $ 13,790     $ 14,409     $ 58,448     $ 50,248  

 

(1) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities.

          

 

 

   
b1BANK.com  

 

 
11

 

Business First Bancshares, Inc.

Consolidated Balance Sheets

(Unaudited)

 

   

December 31,

    

September 30,

    

June 30,

    

March 31,

    

December 31,

  

(Dollars in thousands)

  

2019

    

2019

    

2019

    

2019

    

2018

  
                                         

Assets

                                        
                                         

Cash and Due From Banks

   $ 89,371     $ 63,356     $ 64,043     $ 52,606     $ 96,072  

Federal Funds Sold

     61,372       43,705       20,809       30,093       41,836  

Securities Available for Sale, at Fair Values

     278,193       288,231       294,981       304,122       309,516  

Mortgage Loans Held for Sale

     251       256       443       753       58  

Loans and Lease Receivable

     1,710,265       1,694,727       1,642,573       1,586,182       1,528,469  

Allowance for Loan Losses

     (12,124 )     (12,090 )     (11,603 )     (11,818 )     (11,220 )

Net Loans and Lease Receivable

     1,698,141       1,682,637       1,630,970       1,574,364       1,517,249  

Premises and Equipment, Net

     29,280       27,092       27,577       27,014       15,114  

Accrued Interest Receivable

     8,025       7,513       7,957       7,054       8,223  

Other Equity Securities

     12,565       12,697       11,717       8,508       9,282  

Other Real Estate Owned

     4,036       2,326       2,324       1,683       1,909  

Cash Value of Life Insurance

     32,568       32,398       32,223       32,050       31,882  

Deferred Taxes, Net

     2,145       2,674       2,527       3,077       3,848  

Goodwill

     48,495       48,333       48,503       49,534       49,488  

Core Deposit Intangible

     6,694       6,916       7,139       7,655       7,885  

Other Assets

     2,699       2,706       2,395       2,887       2,534  
                                         

Total Assets

   $ 2,273,835     $ 2,220,840     $ 2,153,608     $ 2,101,400     $ 2,094,896  
                                         
                                         

Liabilities

                                        
                                         

Deposits:

                                        

Noninterest-Bearing

   $ 398,847     $ 406,146     $ 394,848     $ 396,775     $ 382,354  

Interest-Bearing

     1,383,163       1,327,244       1,308,054       1,347,608       1,351,580  

Total Deposits

     1,782,010       1,733,390       1,702,902       1,744,383       1,733,934  
                                         

Securities Sold Under Agreements to Repurchase

     67,989       31,037       16,096       11,070       12,229  

Subordinated Debt

     25,000       25,000       25,000       25,000       25,000  

Federal Home Loan Bank Borrowings

     93,000       128,000       108,000       30,000       55,000  

Accrued Interest Payable

     1,533       1,837       1,924       2,039       1,374  

Other Liabilities

     19,206       21,236       22,217       19,764       7,301  
                                         

Total Liabilities

     1,988,738       1,940,500       1,876,139       1,832,256       1,834,838  
                                         

Shareholders' Equity

                                        
                                         

Common Stock

     13,279       13,275       13,361       13,361       13,213  

Additional Paid-In Capital

     212,505       212,104       213,823       213,537       212,332  

Retained Earnings

     56,700       52,265       48,087       42,576       37,982  

Accumulated Other Comprehensive Loss

     2,613       2,696       2,198       (330 )     (3,469 )
                                         

Total Shareholders' Equity

     285,097       280,340       277,469       269,144       260,058  
                                         

Total Liabilities and Shareholders' Equity

   $ 2,273,835     $ 2,220,840     $ 2,153,608     $ 2,101,400     $ 2,094,896  

 

 

   
b1BANK.com

 

 
12

 

Business First Bancshares, Inc.

Consolidated Statements of Income

(Unaudited)

 

    Quarter Ended    

Year Ended

  
   

December 31,

    

September 30,

    

June 30,

    

March 31,

    

December 31,

    

December 31,

    

December 31,

  

(Dollars in thousands)

  

2019

    

2019

    

2019

    

2019

    

2018

    

2019

    

2018

  
                                                         

Interest Income:

                                                        

Interest and Fees on Loans

   $ 24,732     $ 24,408     $ 23,870     $ 22,423     $ 19,778     $ 95,433     $ 69,780  

Interest and Dividends on Securities

     1,739       1,783       1,829       1,874       1,611       7,225       5,834  

Interest on Federal Funds Sold and Due From Banks

     193       129       197       290       164       809       581  

Total Interest Income

     26,664       26,320       25,896       24,587       21,553       103,467       76,195  
                                                         

Interest Expense:

                                                        

Interest on Deposits

     4,908       5,050       5,038       4,757       3,853       19,753       11,833  

Interest on Borrowings

     1,129       1,012       665       710       583       3,516       2,133  

Total Interest Expense

     6,037       6,062       5,703       5,467       4,436       23,269       13,966  
                                                         

Net Interest Income

     20,627       20,258       20,193       19,120       17,117       80,198       62,229  
                                                         

Provision for Loan Losses

     192       479       1,302       633       939       2,606       2,390  
                                                         

Net Interest Income After Provision for Loan Losses

     20,435       19,779       18,891       18,487       16,178       77,592       59,839  
                                                         

Other Income:

                                                        

Service Charges on Deposit Accounts

     1,028       1,035       1,034       938       869       4,035       2,810  

Gain (Loss) on Sales of Securities

     22       26       58       -       7       106       7  

Other Income

     1,206       861       3,127       1,373       1,615       6,567       4,962  

Total Other Income

     2,256       1,922       4,219       2,311       2,491       10,708       7,779  
                                                         

Other Expenses:

                                                        

Salaries and Employee Benefits

     9,025       8,793       8,756       8,552       7,444       35,126       27,862  

Occupancy and Equipment Expense

     1,715       2,135       1,884       1,894       1,523       7,628       5,865  

Other Expenses

     4,463       3,950       3,937       3,344       5,442       15,694       16,521  

Total Other Expenses

     15,203       14,878       14,577       13,790       14,409       58,448       50,248  
                                                         

Income Before Income Taxes

     7,488       6,823       8,533       7,008       4,260       29,852       17,370  
                                                         

Provision for Income Taxes

     1,729       1,312       1,690       1,349       815       6,080       3,279  
                                                         

Net Income

   $ 5,759     $ 5,511     $ 6,843     $ 5,659     $ 3,445     $ 23,772     $ 14,091  

 

 

   
b1BANK.com

 

 
13

 

Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

 

   

Quarter Ended

  
   

December 31, 2019

    

September 30, 2019

    

December 31, 2018

  
   

Average

Outstanding

    

Interest

Earned /

    

Average

    

Average

Outstanding

    

Interest

Earned /

    

Average

    

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

   $ 1,698,947     $ 24,732       5.82 %   $ 1,664,283     $ 24,408       5.87 %   $ 1,383,526     $ 19,778       5.72 %

Securities Available for Sale

     290,034       1,739       2.40 %     297,121       1,783       2.40 %     270,511       1,611       2.38 %

Interest-Bearing Deposit in Other Banks

     31,648       193       2.44 %     16,070       129       3.21 %     27,203       164       2.41 %

Total Interest-Earning Assets

     2,020,629       26,664       5.28 %     1,977,474       26,320       5.32 %     1,681,240       21,553       5.13 %

Allowance for Loan Losses

     (12,174 )                     (11,783 )                     (10,451 )                

Noninterest-Earning Assets

     200,727                       191,068                       156,809                  

Total Assets

   $ 2,209,182     $ 26,664             $ 2,156,759     $ 26,320             $ 1,827,598     $ 21,553          
                                                                         
                                                                         

Liabilities and Shareholders' Equity

                                                                        
                                                                         

Interest-Bearing Liabilities

                                                                        

Interest-Bearing Deposits

   $ 1,295,791     $ 4,908       1.52 %   $ 1,300,740     $ 5,050       1.55 %   $ 1,138,786     $ 3,853       1.35 %

Subordinated Debt

     25,000       422       6.75 %     25,000       422       6.75 %     8,333       69       3.31 %

Advances from Federal Home Loan Bank ("FHLB")

     96,763       516       2.13 %     105,588       560       2.12 %     82,419       462       2.24 %

Other Borrowings

     67,087       191       1.14 %     23,718       30       0.51 %     11,466       52       1.81 %

Total Interest-Bearing Liabilities

     1,484,641       6,037       1.63 %     1,455,046       6,062       1.67 %     1,241,004       4,436       1.43 %
                                                                         

Noninterest-Bearing Liabilities

                                                                        

Noninterest-Bearing Deposits

   $ 419,231                       398,748                       349,915                  

Other Liabilities

     23,721                       24,937                       8,183                  

Total Noninterest-Bearing Liabilities

     442,952                       423,685                       358,098                  

Shareholders' Equity

     281,589                       278,028                       228,496                  

Total Liabilities and Shareholders' Equity

   $ 2,209,182                     $ 2,156,759                     $ 1,827,598                  
                                                                         

Net Interest Spread

                     3.65 %                     3.66 %                     3.70 %

Net Interest Income

           $ 20,627                     $ 20,258                     $ 17,117          

Net Interest Margin

                     4.08 %                     4.10 %                     4.07 %
                                                                         

Overall Cost of Funds

                     1.27 %                     1.31 %                     1.12 %

 

NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.

 

 

   
b1BANK.com

 

 
14

 

Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

 

   

For the Year Ended December 31,

  
   

2019

    

2018

  
   

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

   $ 1,628,803     $ 95,433       5.86 %   $ 1,258,178     $ 69,780       5.55 %

Securities Available for Sale

     300,038       7,225       2.41 %     258,153       5,834       2.26 %

Interest-Bearing Deposit in Other Banks

     27,878       809       2.90 %     31,475       581       1.85 %

Total Interest-Earning Assets

     1,956,719       103,467       5.29 %     1,547,806       76,195       4.92 %

Allowance for Loan Losses

     (11,762 )                     (9,749 )                

Noninterest-Earning Assets

     191,124                       144,120                  

Total Assets

   $ 2,136,081     $ 103,467             $ 1,682,177     $ 76,195          
                                                 
                                                 

Liabilities and Shareholders' Equity

                                                
                                                 

Interest-Bearing Liabilities

                                                

Interest-Bearing Deposits

   $ 1,316,896     $ 19,753       1.50 %   $ 1,051,932     $ 11,833       1.12 %

Subordinated Debt

     25,000       1,688       6.75 %     2,083       69       3.31 %

Advances from Federal Home Loan Bank ("FHLB")

     69,183       1,581       2.29 %     84,187       1,849       2.20 %

Other Borrowings

     29,419       247       0.84 %     17,766       215       1.21 %

Total Interest-Bearing Liabilities

     1,440,498       23,269       1.62 %     1,155,968       13,966       1.21 %
                                                 

Noninterest-Bearing Liabilities

                                                

Noninterest-Bearing Deposits

     402,147                       319,623                  

Other Liabilities

     20,231                       6,393                  

Total Noninterest-Bearing Liabilities

     422,378                       326,016                  

Shareholders' Equity

     273,205                       200,193                  

Total Liabilities and Shareholders' Equity

   $ 2,136,081                     $ 1,682,177                  
                                                 

Net Interest Spread

                     3.67 %                     3.71 %

Net Interest Income

           $ 80,198                     $ 62,229          

Net Interest Margin

                     4.10 %                     4.02 %
                                                 

Overall Cost of Funds

                     1.26 %                     0.95 %

 

NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.

 

 

   
b1BANK.com

 

 
15

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

 

   

December 31,

    

September 30,

    

June 30,

    

March 31,

    

December 31,

  

(Dollars in thousands, except per share data)

  

2019

    

2019

    

2019

    

2019

    

2018

  
                                         

Tangible Common Equity

                                        

Total Shareholders' Equity

   $ 285,097     $ 280,340     $ 277,469     $ 269,144     $ 260,058  

Adjustments:

                                        

Goodwill

     (48,495 )     (48,333 )     (48,503 )     (49,534 )     (49,488 )

Core Deposit Intangible

     (6,694 )     (6,916 )     (7,139 )     (7,655 )     (7,885 )

Total Tangible Common Equity

   $ 229,908     $ 225,091     $ 221,827     $ 211,955     $ 202,685  
                                         
                                         

Tangible Assets

                                        

Total Assets

   $ 2,273,835     $ 2,220,840     $ 2,153,608     $ 2,101,400     $ 2,094,896  

Adjustments:

                                        

Goodwill

     (48,495 )     (48,333 )     (48,503 )     (49,534 )     (49,488 )

Core Deposit Intangible

     (6,694 )     (6,916 )     (7,139 )     (7,655 )     (7,885 )

Total Tangible Assets

   $ 2,218,646     $ 2,165,591     $ 2,097,966     $ 2,044,211     $ 2,037,523  
                                         
                                         

Common Shares Outstanding

     13,279,363       13,274,823       13,361,482       13,361,482       13,213,280  

Book Value per Common Share

   $ 21.47     $ 21.12     $ 20.77     $ 20.14     $ 19.68  

Tangible Book Value per Common Share

   $ 17.31     $ 16.96     $ 16.60     $ 15.86     $ 15.34  

Common Equity to Total Assets

     12.54 %     12.62 %     12.88 %     12.81 %     12.41 %

Tangible Common Equity to Tangible Assets

     10.36 %     10.39 %     10.57 %     10.37 %     9.95 %

 

 

   
b1BANK.com

 

 
16

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

 

   

Quarter Ended

    

Year Ended

  
   

December 31,

    

September 30,

    

June 30,

    

March 31,

    

December 31,

    

December 31,

    

December 31,

  

(Dollars in thousands, except per share data)

  

2019

    

2019

    

2019

    

2019

    

2018

    

2019

    

2018

  
                                                         

Core Net Income

                                                        

Net Income

   $ 5,759     $ 5,511     $ 6,843     $ 5,659     $ 3,445     $ 23,772     $ 14,091  

Adjustments: (1)

                                                        

Noninterest Income

                                                        

Sale of Impaired Credit

     -       -       (91 )     -       (87 )     (91 )     (87 )

Tax Impact

     -       -       19       -       18       19       18  

(Gains) Losses on Former Bank Premises and Equipment

     125       594       -       -       (494 )     719       (355 )

Tax Impact

     (26 )     (125 )     -       -       104       (151 )     75  

(Gains) Losses on Sale of Securities

     (22 )     (26 )     (58 )     -       (7 )     (106 )     (7 )

Tax Impact

     5       5       12       -       1       22       1  

(Gains) Losses on Sale of Banking Center

     -       12       (593 )     -       -       (581 )     -  

Tax Impact

     216       (3 )     125       -       -       338       -  

Noninterest Expense

                                                        

Early Lease Termination Penalty

     -       87       -       -       -       87       -  

Tax Impact

     -       (18 )     -       -       -       (18 )     -  

Employee Share Awards – NASDAQ Listing

     -       -       -       -       -       -       118  

Tax Impact

     -       -       -       -       -       -       (25 )

Acquisition-Related Expenses (2)

     76       288       436       (50 )     2,132       750       3,568  

Tax Impact

     (11 )     (60 )     (91 )     16       (410 )     (147 )     (623 )

Core Net Income

   $ 6,121     $ 6,265     $ 6,602     $ 5,625     $ 4,702     $ 24,614     $ 16,774  
                                                         

Average Common Shares Outstanding

     13,277,968       13,315,351       13,361,482       13,287,560       12,099,659       13,310,577       11,124,585  

Average Diluted Shares Outstanding

     13,638,168       13,669,370       13,740,937       13,653,125       12,521,017       13,670,777       11,545,943  
                                                         

Earnings per Share - Basic

   $ 0.43     $ 0.41     $ 0.51     $ 0.43     $ 0.28     $ 1.79     $ 1.27  

Earnings per Share - Diluted

   $ 0.42     $ 0.40     $ 0.50     $ 0.41     $ 0.28     $ 1.74     $ 1.22  

Core Earnings per Share – Basic

   $ 0.46     $ 0.47     $ 0.49     $ 0.42     $ 0.39     $ 1.85     $ 1.51  

Core Earnings per Share – Diluted

   $ 0.45     $ 0.46     $ 0.48     $ 0.41     $ 0.38     $ 1.80     $ 1.45  
                                                         

Total Quarterly/Year-to-Date Average Assets

   $ 2,209,182     $ 2,156,759     $ 2,102,692     $ 2,075,683     $ 1,827,598     $ 2,136,081     $ 1,682,177  

Total Quarterly/Year-to-Date Average Equity

   $ 281,589     $ 278,028     $ 270,262     $ 262,681     $ 228,496     $ 273,205     $ 200,193  
                                                         

Return on Average Assets

     1.04 %     1.02 %     1.30 %     1.09 %     0.75 %     1.11 %     0.84 %

Return on Average Equity

     8.18 %     7.93 %     10.13 %     8.62 %     6.03 %     8.70 %     7.04 %

Core Return on Average Assets

     1.11 %     1.16 %     1.26 %     1.08 %     1.03 %     1.15 %     1.00 %

Core Return on Average Equity

     8.69 %     9.01 %     9.77 %     8.57 %     8.23 %     9.01 %     8.38 %
                                                         

Core Efficiency Ratio

                                                        

Noninterest Expense

     15,203       14,878       14,577       13,790       14,409       58,448       50,248  

Core Adjustments

     (76 )     (375 )     (436 )     50       (2,132 )     (837 )     (3,686 )

Net Interest and Noninterest Income (3)

     22,861       22,154       24,354       21,431       19,601       90,800       70,001  

Core Adjustments

     125       606       (684 )     -       (581 )     47       (442 )
                                                         

Efficiency Ratio

     66.50 %     67.16 %     59.85 %     64.35 %     73.51 %     64.37 %     71.78 %

Core Efficiency Ratio

     65.81 %     63.72 %     59.74 %     64.58 %     64.55 %     63.42 %     66.94 %
                                                         

Net Interest Income

                                                       

Net Interest Income

   $ 20,627     $ 20,258     $ 20,193     $ 19,120     $ 17,117     $ 80,198     $ 62,229  

Adjustments:

                                                        

Loan Discount Accretion

     (800 )     (544 )     (826 )     (432 )     (283 )     (2,602 )     (1,278 )

Net Interest Income Excluding Loan Discount Accretion

   $ 19,827     $ 19,714     $ 19,367     $ 18,688     $ 16,834     $ 77,596     $ 60,951  
                                                         

Total Average Interest-Earnings Assets

   $ 2,020,629     $ 1,977,474     $ 1,929,035     $ 1,904,870     $ 1,681,240     $ 1,956,719     $ 1,547,806  
                                                         

Net Interest Margin (4)

     4.08 %     4.10 %     4.19 %     4.01 %     4.07 %     4.10 %     4.02 %

Net Interest Margin Excluding Loan Discount Accretion (4)

     3.92 %     3.99 %     4.02 %     3.92 %     4.01 %     3.97 %     3.94 %

Net Interest Spread

     3.65 %     3.66 %     3.75 %     3.61 %     3.70 %     3.67 %     3.71 %

Net Interest Spread Excluding Loan Discount Accretion

     3.49 %     3.55 %     3.58 %     3.52 %     3.63 %     3.54 %     3.63 %

 

(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21% for 2019 and 2018. These rates approximated the marginal tax rates.

(2) Includes merger and conversion-related expenses and salary and employee benefits.

(3) Excludes gains/losses on sales of securities.

(4) Calculated utilizing a 30/360 day count convention.

 

 

   
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