EX-99.1 5 ex_660441.htm EXHIBIT 99.1 ex_660409.htm
 

Exhibit 99.1

 

logo01.jpg

500 Laurel Street

Baton Rouge, LA 70801

Phone: 877.614.7600

 

FOR IMMEDIATE RELEASE  Misty Albrecht
April 25, 2024 

b1BANK

225.286.7879

Misty.Albrecht@b1BANK.com

 

Business First Bancshares, Inc., Announces Financial Results for Q1 2024

 

Baton Rouge, La. (April 25, 2024) – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended March 31, 2024, including net income available to common shareholders of $12.2 million or $0.48 per diluted common share, decreases of $2.3 million and $0.09, respectively, compared to the linked quarter ended December 31, 2023. On a non-GAAP basis, core net income for the quarter ended March 31, 2024, which excludes certain income and expenses, was $12.8 million or $0.50 per diluted common share, decreases of $4.0 million and $0.16, respectively, from the linked quarter.

 

“We didn’t earn as much in the first quarter as I would have liked,” said Jude Melville, president and CEO, “but we did accomplish core foundational work that will lead to greater earnings power over the course of the year. We improved the funding side of our balance sheet, achieving stability in non-interest bearing accounts, increasing liquidity though the raising of core deposits, and paying down debt. We deepened the production side of our house by acquiring and integrating Waterstone, a Loan Service Provider that facilitates SBA production for banks around the country.  And we grew loans at a healthy, normalized rate, further diversifying our credit exposure by product type and geography.”

 

On Tuesday, April 23, 2024, 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 first quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on May 31, 2024, or as soon thereafter as practicable, to the shareholders of record as of May 15, 2024.

 

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Quarterly Highlights

 

 

 

●

Deposit Growth. Deposits increased $324.0 million or 6.17%, 24.82% annualized, for the quarter ended March 31, 2024, compared to the linked quarter. During the quarter ended March 31, 2024, noninterest-bearing deposits remained stable with a decrease of $4.0 million or 0.31% and interest-bearing deposits increased $328.0 million or 8.30%, compared to the linked quarter. Highlighting quarterly deposit growth were the Capital and Dallas markets with $55.8 million and $45.5 million, respectively. The Capital and Dallas markets opened 758 and 296 new accounts during the quarter. All new deposit generations for Business First had a weighted average rate of 4.32% as of March 31, 2024, a decrease of 0.29% from the linked quarter.

 

 

●

Loan Growth. Loans held for investment increased $96.1 million or 1.92%, 7.74% annualized, from the linked quarter. Loan growth was mostly attributable to the $68.1 million increase in the commercial and industrial (C&I) portfolio. Business First continued the trend of reducing construction and development (C&D) portfolio exposure, with a decrease of $7.8 million from the linked quarter. The loan to deposit ratio decreased from 95.12% to 91.32% from the linked quarter.

 

 

●

Waterstone LSP Acquisition. On January 31, 2024, Business First acquired Waterstone LSP, a company which provides other financial institutions nationwide comprehensive support and lending solutions under the Small Business Administration (SBA) 7(a) loan program.

 

 

Statement of Financial Condition

 

Loans

 

Loans held for investment increased $96.1 million or 1.92%, 7.74% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the C&I portfolio of $68.1 million and in the residential real estate portfolio of $34.6 million, offset by a $7.8 million reduction in the C&D portfolio.

 

The Dallas Fort Worth region produced 43.75% of net loan growth from the linked quarter based on unpaid principal balance, while the Southwest Louisiana region produced 28.55% and Capital region produced 14.47%. Based on unpaid principal balances, Texas-based loans represent approximately 37% of the overall loan portfolio as of March 31, 2024.

 

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Credit Quality

 

The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets increased from 0.34% and 0.28%, respectively, at December 31, 2023, to 0.43% and 0.34% at March 31, 2024. The increase was attributable to an additional $4.6 million in nonaccrual loans, largely comprised of two lending relationships.

 

Securities

 

The securities portfolio decreased $6.7 million or 0.76%, from the linked quarter. The increase was driven by negative fair value adjustments of $6.4 million. The securities portfolio, based on estimated fair value, represented 13.04% of total assets as of March 31, 2024.

 

Deposits

 

Deposits increased $324.0 million or 6.17%, 24.82% annualized, for the quarter ended March 31, 2024, compared to the linked quarter. During the quarter ended March 31, 2024, noninterest-bearing deposits remained stable with a decrease of $4.0 million or 0.31% compared to the linked quarter and interest-bearing deposits increased $328.0 million or 8.30%, with certificate of deposit (CD) accounts declining $31.4 million or 2.41%.

 

The Capital and Dallas markets led the franchise with $55.8 million and $45.5 million in deposit growth. The Capital and Dallas markets opened 758 and 296 new accounts, respectively, during the quarter. All new deposit generations for Business First had a weighted average rate of 4.32% as of March 31, 2024, a decrease of 0.29% from the linked quarter.

 

Money market accounts increased $448.8 million or 33.41% from the linked quarter with a total portfolio weighted average of 4.10%, up slightly from 4.07% at December 31, 2023. However, lower rate demand deposit accounts of $32.0 million were also opened in connection with these money market accounts during the quarter ended March 31, 2024. This represented an 18.43% increase from the linked quarter and an increase of 28.23% from the last twelve months beginning April 1, 2023.

 

New money market account openings in March 2024 totaled $94.0 million with a weighted average rate of 4.29% as of March 31, 2024, compared to $84.0 million in new account openings during February 2024 with a weighted average rate of 5.03% as of February 29, 2024. Money market account balances increased from $1.34 billion as of December 31, 2023, to $1.79 billion as of March 31, 2024.

 

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Borrowings

 

Borrowings decreased $204.7 million or 32.24%, from the linked quarter due to a full repayment of the $300.0 million Federal Reserve’s Bank Term Funding Program (BFTP) in March 2024. The repayment was funded through additional advances from the Federal Home Loan Bank (FHLB) of approximately $100.0 million, brokered CDs of $52.0 million and the remaining $148.0 million from cash.

 

Shareholders’ Equity

 

Accumulated other comprehensive income (AOCI) decreased $5.0 million during the first quarter due to negative after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $22.64 at March 31, 2024, compared to $22.58 at December 31, 2023. On a non-GAAP basis, tangible book value per common share decreased slightly from $18.62 at December 31, 2023, to $18.61 at March 31, 2024.

 

 

Results of Operations

 

Net Interest Income

 

For the quarter ended March 31, 2024, net interest income totaled $51.5 million, compared to $53.8 million from the linked quarter. Loan and interest-earning asset yields of 6.88% and 6.18%, respectively, increased one basis point each compared to 6.87% and 6.17% from the linked quarter. Both ratios were negatively impacted by $1.1 million less in loan discount accretion. Net interest margin and net interest spread were 3.32% and 2.36% compared to 3.50% and 2.53%, respectively, for the linked quarter. The overall cost of funds, which include noninterest-bearing deposits, increased from 2.79% to 3.00% or 21 basis points, from the linked quarter due to higher cost deposits and less average noninterest bearing deposits; however, ending noninterest bearing deposits only decreased $4.0 million from the linked quarter.

 

Non-GAAP net interest income (excluding loan discount accretion of $0.8 million) totaled $50.7 million for the quarter ended March 31, 2024, compared to $51.8 million (excluding loan discount accretion of $1.9 million) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.8 million) were 3.27% and 2.31%, respectively, for the quarter ended March 31, 2024, compared to 3.38% and 2.40% (excluding loan discount accretion of $1.9 million) for the linked quarter. Excluding loan discount accretion, loan yields increased nine basis points to 6.81% from 6.72%, and interest earnings asset yields increased eight basis points to 6.13% from 6.05%, compared to the linked quarter.

 

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Provision for Credit Losses

 

During the quarter ended March 31, 2024, Business First recorded a provision for credit losses of $1.2 million, compared to $119,000 from the linked quarter. The current quarter’s reserve increased largely due to loan growth.

 

Other Income

 

For the quarter ended March 31, 2024, other income increased $2.9 million or 46.36%, compared to the linked quarter. The net increase was largely attributable to a $2.5 million loss on sale of securities due to Business First’s security repositioning initiative and a $1.0 million loss in equity investment income which both occurred during the linked quarter, partially offset by a $735,000 reduction in back-to-back customer swap fee income compared to the linked quarter.

 

Other Expenses

 

For the quarter ended March 31, 2024, other expenses increased by $2.8 million or 7.07%, compared to the linked quarter. The net increase was attributable to a $2.8 million increase in salaries and employee benefits compared to the linked quarter. The increase was largely associated with the Waterstone LSP acquisition, bonus-related expenses and cost of living adjustments.

 

Return on Assets and Common Equity

 

Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.74% and 8.51% for the quarter ended March 31, 2024, compared to 0.88% and 10.54%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 0.77% and 8.92% for the quarter ended March 31, 2024, compared to 1.03% and 12.27%, respectively, for the linked quarter.

 

Conference Call and Webcast

Executive management will host a conference call and webcast to discuss results on Thursday, April 25, 2024, at 4:00 p.m. Central Time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 5574541, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/kqiwvpsh. On the day of the presentation, the corresponding slide presentation will be available to view on the b1BANK website at https://www.b1bank.com/shareholder-info.

 

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About Business First Bancshares, Inc.

Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.7 billion in assets, $6.1 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.

 

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Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

 

   

Three Months Ended

  
   

March 31,

    

December 31,

    

March 31,

  

(Dollars in thousands)

  

2024

    

2023

    

2023

  
                         

Balance Sheet Ratios

                        
                         

Loans (HFI) to Deposits

     91.32 %     95.12 %     99.94 %

Shareholders' Equity to Assets Ratio

     9.69 %     9.78 %     9.50 %
                         

Loans Receivable Held for Investment (HFI)

                        
                         

Commercial

   $ 1,426,957     $ 1,358,838     $ 1,239,333  

Real Estate:

                        

Commercial

     2,215,889       2,217,928       2,055,500  

Construction

     662,013       669,798       787,634  

Residential

     717,007       682,394       659,967  

Total Real Estate

     3,594,909       3,570,120       3,503,101  

Consumer and Other

     66,973       63,827       60,626  

Total Loans (Held for Investment)

   $ 5,088,839     $ 4,992,785     $ 4,803,060  
                         

Allowance for Loan Losses

                        
                         

Balance, Beginning of Period

   $ 40,414     $ 41,129     $ 38,178  

CECL Adoption/Implementation

     -       -       2,660  

Charge-offs – Quarterly

     (533 )     (1,039 )     (2,278 )

Recoveries – Quarterly

     141       152       103  

Provision for Loan Losses – Quarterly

     1,143       172       3,167  

Balance, End of Period

   $ 41,165     $ 40,414     $ 41,830  
                         

Allowance for Loan Losses to Total Loans (HFI)

     0.81 %     0.81 %     0.87 %

Allowance for Credit Losses to Total Loans (HFI) (1)

     0.88 %     0.88 %     0.95 %

Net Charge-offs (Recoveries) to Average Quarterly Total Loans

     0.01 %     0.02 %     0.05 %
                         

Remaining Loan Purchase Discount

   $ 11,411     $ 12,286     $ 19,234  
                         

Nonperforming Assets

                        
                         

Nonperforming Loans:

                        

Nonaccrual Loans

   $ 20,778     $ 16,943     $ 16,952  

Loans Past Due 90 Days or More

     855       127       127  

Total Nonperforming Loans

     21,633       17,070       17,079  

Other Nonperforming Assets:

                        

Other Real Estate Owned

     1,339       1,685       1,365  

Other Nonperforming Assets

     -       -       57  

Total Other Nonperforming Assets

     1,339       1,685       1,422  

Total Nonperforming Assets

   $ 22,972     $ 18,755     $ 18,501  
                         

Nonperforming Loans to Total Loans (HFI)

     0.43 %     0.34 %     0.36 %

Nonperforming Assets to Total Assets

     0.34 %     0.28 %     0.29 %

 

(1) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments.

 

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Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

 

   

Three Months Ended

  
   

March 31,

    

December 31,

    

March 31,

  

(Dollars in thousands, except per share data)

  

2024

    

2023

    

2023

  
                         

Per Share Data

                        
                         

Basic Earnings per Common Share

   $ 0.49     $ 0.58     $ 0.55  

Diluted Earnings per Common Share

     0.48       0.57       0.54  

Dividends per Common Share

     0.14       0.14       0.12  

Book Value per Common Share

     22.64       22.58       20.77  
                         
                         

Average Common Shares Outstanding

     25,127,187       25,116,688       24,979,955  

Average Diluted Common Shares Outstanding

     25,429,194       25,333,913       25,222,308  

End of Period Common Shares Outstanding

     25,485,383       25,351,809       25,319,520  
                         
                         

Annualized Performance Ratios

                        
                         

Return to Common Shareholders on Average Assets (1)

     0.74 %     0.88 %     0.91 %

Return to Common Shareholders on Average Common Equity (1)

     8.51 %     10.54 %     10.73 %

Net Interest Margin (1)

     3.32 %     3.50 %     3.75 %

Net Interest Spread (1)

     2.36 %     2.53 %     2.96 %

Efficiency Ratio (2)

     69.80 %     63.36 %     63.27 %
                         

Total Quarterly/Year-to-Date Average Assets

   $ 6,667,527     $ 6,494,861     $ 6,123,063  

Total Quarterly/Year-to-Date Average Common Equity

     577,643       544,628       516,659  
                         

Other Expenses

                        
                         

Salaries and Employee Benefits

   $ 25,416     $ 22,609     $ 23,176  

Occupancy and Bank Premises

     2,514       2,387       2,297  

Depreciation and Amortization

     1,676       1,647       1,710  

Data Processing

     2,579       2,490       1,485  

FDIC Assessment Fees

     828       841       933  

Legal and Other Professional Fees

     866       833       613  

Advertising and Promotions

     1,145       1,052       1,148  

Utilities and Communications

     674       700       721  

Ad Valorem Shares Tax

     900       265       965  

Directors' Fees

     282       262       269  

Other Real Estate Owned Expenses and Write-Downs

     37       504       130  

Merger and Conversion-Related Expenses

     340       63       103  

Other

     5,265       6,061       5,129  

Total Other Expenses

   $ 42,522     $ 39,714     $ 38,679  
                         

Other Income

                        
                         

Service Charges on Deposit Accounts

   $ 2,439     $ 2,470     $ 2,281  

Loss on Sales of Securities

     (1 )     (2,503 )     (1 )

Debit Card and ATM Fee Income

     1,776       1,793       1,570  

Bank-Owned Life Insurance Income

     579       572       524  

Gain on Sales of Loans

     139       546       611  

Mortgage Origination Income

     69       47       74  

Fees and Brokerage Commission

     1,937       1,710       1,813  

Gain on Sales of Other Real Estate Owned

     63       338       209  

Loss on Disposal of Other Assets

     -       (1 )     (5 )

Gain on Sale of Branch

     -       13       -  

Gain on Extinguishment of Debt

     -       -       -  

Swap Fee Income

     229       964       6  

Pass-Through Income (Loss) from Other Investments

     294       (1,028 )     173  

Other

     1,862       1,492       1,133  

Total Other Income

   $ 9,386     $ 6,413     $ 8,388  

 

(1) Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365/366 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.

 

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Business First Bancshares, Inc.

Consolidated Balance Sheets

(Unaudited)

 

   

March 31,

    

December 31,

    

March 31,

  

(Dollars in thousands)

  

2024

    

2023

    

2023

  
                         

Assets

                        
                         

Cash and Due From Banks

   $ 185,906     $ 226,110     $ 159,767  

Federal Funds Sold

     211,292       151,134       104,250  

Securities Available for Sale, at Fair Values

     872,903       879,571       903,945  

Mortgage Loans Held for Sale

     77       835       423  

Loans and Lease Receivable

     5,088,839       4,992,785       4,803,060  

Allowance for Loan Losses

     (41,165 )     (40,414 )     (41,830 )

Net Loans and Lease Receivable

     5,047,674       4,952,371       4,761,230  

Premises and Equipment, Net

     68,716       69,480       64,065  

Accrued Interest Receivable

     29,326       29,916       25,446  

Other Equity Securities

     34,940       33,942       36,739  

Other Real Estate Owned

     1,339       1,685       1,365  

Cash Value of Life Insurance

     100,056       96,478       94,755  

Deferred Taxes, Net

     26,800       27,323       28,680  

Goodwill

     91,527       88,391       88,543  

Core Deposit and Customer Intangibles

     11,372       11,895       13,517  

Other Assets

     13,630       15,419       7,256  
                         

Total Assets

   $ 6,695,558     $ 6,584,550     $ 6,289,981  
                         
                         

Liabilities

                        
                         

Deposits

                        

Noninterest-Bearing

   $ 1,295,050     $ 1,299,090     $ 1,475,782  

Interest-Bearing

     4,277,700       3,949,700       3,330,396  

Total Deposits

     5,572,750       5,248,790       4,806,178  
                         

Securities Sold Under Agreements to Repurchase

     17,207       18,885       16,669  

Federal Funds Purchased

     -       -       14,622  

Bank Term Funding Program

     -       300,000       310,000  

Federal Home Loan Bank Borrowings

     308,206       211,198       395,134  

Subordinated Debt

     99,933       99,990       110,596  

Subordinated Debt - Trust Preferred Securities

     5,000       5,000       5,000  

Accrued Interest Payable

     3,930       14,841       3,513  

Other Liabilities

     39,498       41,587       30,579  
                         

Total Liabilities

     6,046,524       5,940,291       5,692,291  
                         

Shareholders' Equity

                        
                         

Preferred Stock

     71,930       71,930       71,930  

Common Stock

     25,485       25,352       25,320  

Additional Paid-In Capital

     398,511       397,447       394,677  

Retained Earnings

     224,742       216,115       173,761  

Accumulated Other Comprehensive Loss

     (71,634 )     (66,585 )     (67,998 )
                         

Total Shareholders' Equity

     649,034       644,259       597,690  
                         

Total Liabilities and Shareholders' Equity

   $ 6,695,558     $ 6,584,550     $ 6,289,981  

 

b1BANK.com
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Business First Bancshares, Inc.

Consolidated Statements of Income

(Unaudited)

 

   

Three Months Ended

  
   

March 31,

    

December 31,

    

March 31,

  

(Dollars in thousands)

  

2024

    

2023

    

2023

  
                         

Interest Income:

                        

Interest and Fees on Loans

   $ 85,947     $ 85,761     $ 73,768  

Interest and Dividends on Securities

     5,599       5,193       4,782  

Interest on Federal Funds Sold and Due From Banks

     4,465       3,711       942  

Total Interest Income

     96,011       94,665       79,492  
                         

Interest Expense:

                        

Interest on Deposits

     38,029       34,190       18,928  

Interest on Borrowings

     6,451       6,715       7,815  

Total Interest Expense

     44,480       40,905       26,743  
                         

Net Interest Income

     51,531       53,760       52,749  
                         

Provision for Credit Losses

     1,186       119       3,222  
                         

Net Interest Income After Provision for Credit Losses

     50,345       53,641       49,527  
                         

Other Income:

                        

Service Charges on Deposit Accounts

     2,439       2,470       2,281  

Loss on Sales of Securities

     (1 )     (2,503 )     (1 )

Gain on Sales of Loans

     139       546       611  

Other Income

     6,809       5,900       5,497  

Total Other Income

     9,386       6,413       8,388  
                         

Other Expenses:

                        

Salaries and Employee Benefits

     25,416       22,609       23,176  

Occupancy and Equipment Expense

     5,357       5,301       5,001  

Merger and Conversion-Related Expense

     340       63       103  

Other Expenses

     11,409       11,741       10,399  

Total Other Expenses

     42,522       39,714       38,679  
                         

Income Before Income Taxes

     17,209       20,340       19,236  
                         

Provision for Income Taxes

     3,639       4,516       4,211  
                         

Net Income

     13,570       15,824       15,025  
                         

Preferred Stock Dividends

     1,350       1,350       1,350  
                         

Net Income Available to Common Shareholders

   $ 12,220     $ 14,474     $ 13,675  

 

b1BANK.com
10
 

 

Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

 

   

Three Months Ended

  
   

March 31, 2024

    

December 31, 2023

    

March 31, 2023

  
   

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

   $ 5,026,937     $ 85,947       6.88 %   $ 4,949,954     $ 85,761       6.87 %   $ 4,719,906     $ 73,768       6.34 %

Securities

     888,933       5,599       2.53 %     865,372       5,193       2.38 %     927,491       4,782       2.09 %

Interest-Bearing Deposit in Other Banks

     330,260       4,465       5.44 %     271,004       3,711       5.43 %     57,478       942       6.65 %

Total Interest-Earning Assets

     6,246,130       96,011       6.18 %     6,086,330       94,665       6.17 %     5,704,875       79,492       5.65 %

Allowance for Loan Losses

     (40,526 )                     (40,996 )                     (41,533 )                

Noninterest-Earning Assets

     461,923                       449,527                       459,721                  

Total Assets

   $ 6,667,527     $ 96,011             $ 6,494,861     $ 94,665             $ 6,123,063     $ 79,492          
                                                                         
                                                                         

Liabilities and Shareholders' Equity

                                                                        
                                                                         

Interest-Bearing Liabilities:

                                                                        

Interest-Bearing Deposits

   $ 4,072,600     $ 38,029       3.76 %   $ 3,816,474     $ 34,190       3.55 %   $ 3,339,493     $ 18,928       2.30 %

Subordinated Debt

     99,972       1,356       5.46 %     100,009       1,320       5.24 %     110,647       1,389       5.09 %

Subordinated Debt - Trust Preferred Securities

     5,000       113       9.09 %     5,000       113       8.97 %     5,000       98       7.95 %

Bank Term Funding Program

     260,440       2,788       4.31 %     300,000       3,202       4.23 %     34,444       380       4.47 %

Advances from Federal Home Loan Bank (FHLB)

     223,501       2,094       3.77 %     213,280       1,947       3.62 %     517,934       5,842       4.57 %

Other Borrowings

     16,116       100       2.50 %     20,772       133       2.54 %     20,886       106       2.06 %

Total Interest-Bearing Liabilities

     4,677,629       44,480       3.82 %     4,455,535       40,905       3.64 %     4,028,404       26,743       2.69 %
                                                                         

Noninterest-Bearing Liabilities:

                                                                        

Noninterest-Bearing Deposits

   $ 1,282,815                     $ 1,368,452                     $ 1,473,186                  

Other Liabilities

     57,510                       54,316                       32,884                  

Total Noninterest-Bearing Liabilities

     1,340,325                       1,422,768                       1,506,070                  

Shareholders' Equity:

                                                                        

Common Shareholders' Equity

     577,643                       544,628                       516,659                  

Preferred Equity

     71,930                       71,930                       71,930                  

Total Shareholders' Equity

     649,573                       616,558                       588,589                  

Total Liabilities and Shareholders' Equity

   $ 6,667,527                     $ 6,494,861                     $ 6,123,063                  
                                                                         

Net Interest Spread

                     2.36 %                     2.53 %                     2.96 %

Net Interest Income

           $ 51,531                     $ 53,760                     $ 52,749          

Net Interest Margin

                     3.32 %                     3.50 %                     3.75 %
                                                                         

Overall Cost of Funds

                     3.00 %                     2.79 %                     1.97 %

 

NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365/366 day count convention.  

 

b1BANK.com
11
 

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

 

   

Three Months Ended

  
   

March 31,

    

December 31,

    

March 31,

  

(Dollars in thousands, except per share data)

  

2024

    

2023

    

2023

  
                         

Interest Income:

                        

Interest income

   $ 96,011     $ 94,665     $ 79,492  

Core interest income

     96,011       94,665       79,492  

Interest Expense:

                        

Interest expense

     44,480       40,905       26,743  

Core interest expense

     44,480       40,905       26,743  

Provision for Credit Losses: (b)

                        

Provision for credit losses

     1,186       119       3,222  

Core provision expense

     1,186       119       3,222  

Other Income:

                        

Other income

     9,386       6,413       8,388  

Gain on former bank premises and equipment

     (50 )     -       -  

Loss on sale of securities

     1       2,503       1  

Gain on sale of branch

     -       (13 )     -  

Core other income

     9,337       8,903       8,389  

Other Expense:

                        

Other expense

     42,522       39,714       38,679  

Acquisition-related expenses (2)

     (715 )     (63 )     (103 )

Write-down on former bank premises

     -       (432 )     -  

Core other expense

     41,807       39,219       38,576  

Pre-Tax Income: (a)

                        

Pre-tax income

     17,209       20,340       19,236  

Gain on former bank premises and equipment

     (50 )     -       -  

Loss on sale of securities

     1       2,503       1  

Gain on sale of branch

     -       (13 )     -  

Acquisition-related expenses (2)

     715       63       103  

Write-down on former bank premises

     -       432       -  

Core pre-tax income

     17,875       23,325       19,340  

Provision for Income Taxes: (1)

                        

Provision for income taxes

     3,639       4,516       4,211  

Tax on gain on former bank premises and equipment

     (11 )     -       -  

Tax on loss on sale of securities

     0       529       -  

Tax on gain on sale of branch

     -       (3 )     -  

Tax on acquisition-related expenses (2)

     89       1       6  

Tax on write-down on former bank premises

     -       91       -  

Core provision for income taxes

     3,717       5,134       4,217  

Preferred Dividends:

                        

Preferred dividends

     1,350       1,350       1,350  

Core preferred dividends

     1,350       1,350       1,350  

Net Income Available to Common Shareholders:

                        

Net income available to common shareholders

     12,220       14,474       13,675  

Gain on former bank premises and equipment, net of tax

     (39 )     -       -  

Loss on sale of securities, net of tax

     1       1,974       1  

Gain on sale of branch, net of tax

     -       (10 )     -  

Acquisition-related expenses (2), net of tax

     626       62       97  

Write-down on former bank premises, net of tax

     -       341       -  

Core net income available to common shareholders

   $ 12,808     $ 16,841     $ 13,773  
                         

Pre-tax, pre-provision earnings available to common shareholders (a+b)

   $ 18,395     $ 20,459     $ 22,458  

Gain on former bank premises and equipment

     (50 )     -       -  

Loss on sale of securities

     1       2,503       1  

Gain on sale of branch

     -       (13 )     -  

Acquisition-related expenses (2)

     715       63       103  

Write-down on former premises

     -       432       -  

Core pre-tax, pre-provision earnings

   $ 19,061     $ 23,444     $ 22,562  
                         

Average Diluted Common Shares Outstanding

     25,429,194       25,333,913       25,222,308  
                         

Diluted Earnings Per Common Share:

                        

Diluted earnings per common share

   $ 0.48     $ 0.57     $ 0.54  

Gain on former bank premises and equipment, net of tax

     (0.00 )     -       -  

Loss on sale of securities, net of tax

     0.00       0.08       -  

Gain on sale of branch, net of tax

     -       -       -  

Acquisition-related expenses (2), net of tax

     0.02       -       0.01  

Write-down on former premises, net of tax

     -       0.01       -  

Core diluted earnings per common share

   $ 0.50     $ 0.66     $ 0.55  
                         

Pre-tax, pre-provision profit diluted earnings per common share

   $ 0.72     $ 0.81     $ 0.89  

Gain on former bank premises and equipment

     (0.00 )     -       -  

Loss on sale of securities

     0.00       0.10       -  

Gain on sale of branch

     -       -       -  

Acquisition-related expenses (2)

     0.03       -       -  

Write-down on former premises

     -       0.02       -  

Core pre-tax, pre-provision diluted earnings per common share

   $ 0.75     $ 0.93     $ 0.89  

 

(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2024 and 2023. These rates approximated the marginal tax rates. 

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

 

b1BANK.com
12
 

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

 

   

March 31,

    

December 31,

    

March 31,

  

(Dollars in thousands, except per share data)

  

2024

    

2023

    

2023

  
                         

Total Shareholders' (Common) Equity:

                        

Total shareholders' equity

   $ 649,034     $ 644,259     $ 597,690  

Preferred stock

     (71,930 )     (71,930 )     (71,930 )

Total common shareholders' equity

     577,104       572,329       525,760  

Goodwill

     (91,527 )     (88,391 )     (88,543 )

Core deposit and customer intangible

     (11,372 )     (11,895 )     (13,517 )

Total tangible common equity

   $ 474,205     $ 472,043     $ 423,700  
                         
                         

Total Assets:

                        

Total assets

   $ 6,695,558     $ 6,584,550     $ 6,289,981  

Goodwill

     (91,527 )     (88,391 )     (88,543 )

Core deposit and customer intangible

     (11,372 )     (11,895 )     (13,517 )

Total tangible assets

   $ 6,592,659     $ 6,484,264     $ 6,187,921  
                         

Common shares outstanding

     25,485,383       25,351,809       25,319,520  
                         

Book value per common share

   $ 22.64     $ 22.58     $ 20.77  

Tangible book value per common share

   $ 18.61     $ 18.62     $ 16.73  

Common equity to total assets

     8.62 %     8.69 %     8.36 %

Tangible common equity to tangible assets

     7.19 %     7.28 %     6.85 %

 

b1BANK.com
13
 

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

 

   

Three Months Ended

  
   

March 31,

    

December 31,

    

March 31,

  

(Dollars in thousands, except per share data)

  

2024

    

2023

    

2023

  
                         
                         

Total Quarterly Average Assets

   $ 6,667,527     $ 6,494,861     $ 6,123,063  

Total Quarterly Average Common Equity

   $ 577,643     $ 544,628     $ 516,659  
                         

Net Income Available to Common Shareholders:

                        

Net income available to common shareholders

   $ 12,220     $ 14,474     $ 13,675  

Gain on former bank premises and equipment, net of tax

     (39 )     -       -  

Loss on sale of securities, net of tax

     1       1,974       1  

Gain on sale of branch, net of tax

     -       (10 )     -  

Acquisition-related expenses, net of tax

     626       62       97  

Write-down on former bank premises, net of tax

     -       341       -  

Core net income available to common shareholders

   $ 12,808     $ 16,841     $ 13,773  
                         

Return to common shareholders on average assets (annualized) (2)

     0.74 %     0.88 %     0.91 %

Core return on average assets (annualized) (2)

     0.77 %     1.03 %     0.91 %

Return to common shareholders on average common equity (annualized) (2)

     8.51 %     10.54 %     10.73 %

Core return on average common equity (annualized) (2)

     8.92 %     12.27 %     10.81 %
                         

Interest Income:

                        

Interest income

   $ 96,011     $ 94,665     $ 79,492  

Core interest income

     96,011       94,665       79,492  

Interest Expense:

                        

Interest expense

     44,480       40,905       26,743  

Core interest expense

     44,480       40,905       26,743  

Other Income:

                        

Other income

     9,386       6,413       8,388  

Gain on former bank premises and equipment

     (50 )     -       -  

Loss on sale of securities

     1       2,503       1  

Gain on sale of branch

     -       (13 )     -  

Core other income

     9,337       8,903       8,389  

Other Expense:

                        

Other expense

     42,522       39,714       38,679  

Acquisition-related expenses

     (715 )     (63 )     (103 )

Write-down on former bank premises

     -       (432 )     -  

Core other expense

   $ 41,807     $ 39,219     $ 38,576  
                         

Efficiency Ratio:

                        

Other expense (a)

   $ 42,522     $ 39,714     $ 38,679  

Core other expense (c)

   $ 41,807     $ 39,219     $ 38,576  

Net interest and other income (1) (b)

   $ 60,918     $ 62,676     $ 61,138  

Core net interest and other income (1) (d)

   $ 60,868     $ 62,663     $ 61,138  

Efficiency ratio (a/b)

     69.80 %     63.36 %     63.27 %

Core efficiency ratio (c/d)

     68.68 %     62.59 %     63.10 %
                         

Total Average Interest-Earnings Assets

   $ 6,246,130     $ 6,086,330     $ 5,704,875  
                         

Net Interest Income:

                        

Net interest income

   $ 51,531     $ 53,760     $ 52,749  

Loan discount accretion

     (785 )     (1,921 )     (2,912 )

Net interest income excluding loan discount accretion

   $ 50,746     $ 51,839     $ 49,837  
                         

Net interest margin (2)

     3.32 %     3.50 %     3.75 %

Net interest margin excluding loan discount accretion (2)

     3.27 %     3.38 %     3.54 %

Net interest spread (2)

     2.36 %     2.53 %     2.96 %

Net interest spread excluding loan discount accretion (2)

     2.31 %     2.40 %     2.75 %

 

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

(2) Calculated utilizing an Actual/365/366 day count convention.

 

14