 | 500 Laurel Street | |||||||
Baton Rouge, LA 70801 | ||||||||
Phone: 877.614.7600 | ||||||||
FOR IMMEDIATE RELEASE | Misty Albrecht | ||||
October 24, 2024 | b1BANK | ||||
225.286.7879 | |||||
Misty.Albrecht@b1BANK.com | |||||
Business First Bancshares, Inc., Announces Financial Results for Q3 2024
Baton Rouge, La. (October 24, 2024) – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended September 30, 2024, including net income available to common shareholders of $16.5 million or $0.65 per diluted common share, increases of $0.6 million and $0.03, respectively, compared to the linked quarter ended June 30, 2024. On a non-GAAP basis, core net income for the quarter ended September 30, 2024, which excludes certain income and expenses, was $17.2 million or $0.68 per diluted common share, increases of $1.0 million and $0.04, from the linked quarter.
"In the third quarter our team again demonstrated consistent improvement in fundamental performance,” said Jude Melville, chairman, president and CEO of Business First Bancshares. “Measured and productive growth, strengthened capital ratios, improved margins and increased income from newer non-spread-based lines of business, in addition to expense discipline of which I am especially proud, which positions us solidly to continue meeting our stakeholders’ expectations in coming quarters."
On Thursday, October 24, 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 third quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on November 30, 2024, or as soon thereafter as practicable, to the shareholders of record as of November 15, 2024.
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Quarterly Highlights
•Net Interest Margin (NIM) Expansion. For the quarter ended September 30, 2024, net interest income totaled $56.1 million and net interest margin and net interest spread were 3.51% and 2.54%, respectively, compared to $54.0 million, 3.45% and 2.47% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.7 million) were 3.46% and 2.50% for the quarter ended September 30, 2024, compared to 3.34% and 2.37% (excluding loan discount accretion of $1.7 million) for the linked quarter.
•Noninterest Income Investments. Business First continued to show signs of improvement in noninterest income revenue sources. For the quarter ended September 30, 2024, the newly formed customer swap business produced revenue of $0.9 million, an increase of $0.7 million when compared to the linked quarter.
•Measured Loan Growth. Loans held for investment increased $57.3 million or 1.11%, 4.41% annualized, from the linked quarter.
•Deposit Growth. During the quarter ended September 30, 2024, deposits increased $77.3 million or 1.39%, 5.53% annualized, compared to the linked quarter.
•Oakwood Acquisition. On October 1, 2024, Business First closed its previously announced acquisition of Oakwood Bancshares, Inc. (Oakwood) and its wholly-owned subsidiary, Oakwood Bank. Oakwood had approximately $863.6 million of total assets, $700.2 million of loans, and $741.3 million of deposits as of September 30, 2024.
•b1BANK President Appointment. N. Jerome “Jerry” Vascocu Jr. was promoted to the position of b1BANK president, effective October 16, 2024. Prior to his promotion to President of b1BANK, Jerry Vascocu served as b1BANK's executive vice president and chief administrative officer since joining the bank in 2022. Jude Melville, who previously served as president, retains the titles of chairman and chief executive officer of the bank.
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Statement of Financial Condition
Loans
Loans held for investment increased $57.3 million or 1.11%, 4.41% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the commercial real estate portfolio of $58.3 million and $16.9 million in the C&D portfolio.
Production was led by the North Louisiana and New Orleans regions which accounted for approximately three-fourths of net loan growth from the linked quarter based on unpaid principal balance. Based on unpaid principal balances, Texas-based loans represent approximately 35% of the overall loan portfolio as of September 30, 2024, which was down from 36% from the linked quarter due to net paydowns in the quarter.
Credit Quality
Credit quality metrics remain solid, but some migration occurred during the quarter ended September 30, 2024, compared to the linked quarter. The ratio of nonperforming loans compared to loans held for investment increased 7 basis points to 0.50% at September 30, 2024, while the ratio of nonperforming assets compared to total assets increased 4 basis points to 0.40% at September 30, 2024. The increases were attributable to a $4.9 million increase in nonaccrual loans compared to the linked quarter.
Securities
The securities portfolio increased $41.0 million or 4.69%, from the linked quarter, impacted by $27.4 million in positive fair value adjustments. The securities portfolio, based on estimated fair value, represented 13.30% of total assets as of September 30, 2024.
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Deposits
Deposits increased $77.3 million or 1.39%, 5.53% annualized, for the quarter ended September 30, 2024, compared to the linked quarter. During the same quarter, interest-bearing accounts drove the increase with $196.5 million in growth, offset by $119.3 million reduction in non-interest bearing accounts compared to the linked quarter.
The increase in interest-bearing deposits was largely attributable to a $160.8 million increase in money market accounts. The weighted average money market portfolio rate declined by 35 basis points from the linked quarter, from 4.22% to 3.87%.
Borrowings
Borrowings increased $65.0 million, or 15.17%, from the linked quarter due primarily to an additional short-term, 14-day Federal Home Loan Bank advance with a rate of 4.88% which matured on October 1, 2024, and was subsequently refinanced.
Shareholders’ Equity
Accumulated other comprehensive income (AOCI) increased $21.6 million, or 31.92%, during the third quarter due to positive after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $24.59 at September 30, 2024, compared to $23.24 at June 30, 2024, a 5.81% increase from the linked quarter. On a non-GAAP basis, tangible book value per common share increased from $19.22 at June 30, 2024, to $20.60 at September 30, 2024, a 7.18% increase from the linked quarter.
Results of Operations
Net Interest Income
For the quarter ended September 30, 2024, net interest income totaled $56.1 million, compared to $54.0 million from the linked quarter. Loan and interest-earning asset yields of 7.12% and 6.42%, respectively, increased 5 and 4 basis points, respectively, compared to 7.07% and 6.38% from the linked quarter. Both ratio increases were impacted by $1.0 million less in loan discount accretion. Net interest margin and net interest spread were 3.51% and 2.54% compared to 3.45% and 2.47% for the linked quarter. The overall cost of funds, which included noninterest-bearing deposits, remained stable at 3.07% from the linked quarter.
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Non-GAAP net interest income (excluding loan discount accretion of $0.7 million) totaled $55.4 million for the quarter ended September 30, 2024, compared to $52.3 million (excluding loan discount accretion of $1.7 million) for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.7 million) were 3.46% and 2.50%, respectively, for the quarter ended September 30, 2024, compared to 3.34% and 2.37% (excluding loan discount accretion of $1.7 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 13 basis points to 7.07% from 6.94%, and interest earnings asset yields increased 10 basis points to 6.38% from 6.28%, compared to the linked quarter. Yield improvements were partially driven by Business First's increased production in its factoring portfolio.
Provision for Credit Losses
During the quarter ended September 30, 2024, Business First recorded a provision for credit losses of $1.7 million, compared to $1.3 million from the linked quarter. The current quarter’s reserve growth was largely attributable to net charge-offs, loan growth, changes in qualitative factors, and slight deterioration in the economic forecasts.
Other Income
For the quarter ended September 30, 2024, other income decreased $1.4 million or 11.51%, compared to the linked quarter. The net decrease was largely attributable to a $1.9 million gain on sale of a single, U.S. Small Business Administration (SBA) loan in the linked quarter, partially offset by an increase of $0.7 million in swap fee income for the quarter ended September 30, 2024.
Other Expenses
For the quarter ended September 30, 2024, other expenses decreased by $660,000 or 1.53%, compared to the linked quarter. The decrease was largely attributable to a $646,000 decrease in salaries and employee benefits due to lower self-insurance claims.
Excluding non-GAAP other expenses, Business First's core expenses decreased by $1.1 million from the linked quarter due to the previously mentioned $646,000 decrease in salaries and employee benefits and $511,000 in core conversion expenses attributable to Business First's core conversion scheduled for the second quarter of 2025.
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Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.97% and 10.76% for the quarter ended September 30, 2024, compared to 0.95% and 10.94%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.01% and 11.23% for the quarter ended September 30, 2024, compared to 0.98% and 11.22%, respectively, for the linked quarter. Returns on equity for the current quarter were offset by the large increase in AOCI compared to the linked quarter. Excluding the $13.2 million average AOCI increase during the quarter, the non-GAAP return on common equity for the quarter improved to 11.48%.
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Thursday, October 24, 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 5274174, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/a2ui6eo8. 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.
About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.9 billion in assets, $6.9 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 Texas 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-
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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 | ||||||||||||||
| (Dollars in thousands) | September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||
| Balance Sheet Ratios | ||||||||||||||
| Loans (HFI) to Deposits | 92.54 | % | 92.80 | % | 94.79 | % | ||||||||
| Shareholders' Equity to Assets Ratio | 10.15 | % | 9.91 | % | 9.31 | % | ||||||||
| Loans Receivable Held for Investment (HFI) | ||||||||||||||
| Commercial | $ | 1,496,480 | $ | 1,520,392 | $ | 1,332,384 | ||||||||
| Real Estate: | ||||||||||||||
| Commercial | 2,256,370 | 2,198,119 | 2,128,855 | |||||||||||
| Construction | 654,353 | 637,466 | 708,835 | |||||||||||
| Residential | 743,878 | 743,876 | 686,921 | |||||||||||
| Total Real Estate | 3,654,601 | 3,579,461 | 3,524,611 | |||||||||||
| Consumer and Other | 69,037 | 62,999 | 63,278 | |||||||||||
| Total Loans (Held for Investment) | $ | 5,220,118 | $ | 5,162,852 | $ | 4,920,273 | ||||||||
| Allowance for Loan Losses | ||||||||||||||
| Balance, Beginning of Period | $ | 41,412 | $ | 41,165 | $ | 42,013 | ||||||||
| Charge-Offs - Quarterly | (1,424) | (1,426) | (2,423) | |||||||||||
| Recoveries - Quarterly | 295 | 91 | 685 | |||||||||||
| Provision for Loan Losses - Quarterly | 1,871 | 1,582 | 854 | |||||||||||
| Balance, End of Period | $ | 42,154 | $ | 41,412 | $ | 41,129 | ||||||||
| Allowance for Loan Losses to Total Loans (HFI) | 0.81 | % | 0.80 | % | 0.84 | % | ||||||||
| Allowance for Credit Losses to Total Loans (HFI)/(1) | 0.86 | % | 0.86 | % | 0.90 | % | ||||||||
| Net Charge-Offs (Recoveries) to Average Quarterly Total Loans | 0.02 | % | 0.03 | % | 0.04 | % | ||||||||
| Remaining Loan Purchase Discount | $ | 9,003 | $ | 9,690 | $ | 14,752 | ||||||||
| Nonperforming Assets | ||||||||||||||
| Nonperforming | ||||||||||||||
| Nonaccrual Loans | $ | 25,874 | $ | 21,008 | $ | 16,029 | ||||||||
| Loans Past Due 90 Days or More | 185 | 1,355 | 247 | |||||||||||
| Total Nonperforming Loans | 26,059 | 22,363 | 16,276 | |||||||||||
| Other Nonperforming Assets: | ||||||||||||||
| Other Real Estate Owned | 1,787 | 1,983 | 1,558 | |||||||||||
| Other Nonperforming Assets | — | — | — | |||||||||||
| Total other Nonperforming Assets | 1,787 | 1,983 | 1,558 | |||||||||||
| Total Nonperforming Assets | $ | 27,846 | $ | 24,346 | $ | 17,834 | ||||||||
| Nonperforming Loans to Total Loans (HFI) | 0.50 | % | 0.43 | % | 0.33 | % | ||||||||
| Nonperforming Assets to Total Assets | 0.40 | % | 0.36 | % | 0.27 | % | ||||||||
| (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 | Nine Months Ended | ||||||||||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||||||||
| Per Share Data | |||||||||||||||||||||||
| Basic Earnings per Common Share | $ | 0.65 | $ | 0.63 | $ | 0.76 | $ | 1.77 | $ | 2.04 | |||||||||||||
| Diluted Earnings per Common Share | 0.65 | 0.62 | 0.76 | 1.75 | 2.02 | ||||||||||||||||||
| Dividends per Common Share | 0.14 | 0.14 | 0.12 | 0.42 | 0.36 | ||||||||||||||||||
| Book Value per Common Share | 24.59 | 23.24 | 21.01 | 24.59 | 21.01 | ||||||||||||||||||
| Average Common Shares Outstanding | 25,289,094 | 25,265,495 | 25,111,548 | 25,227,319 | 25,064,856 | ||||||||||||||||||
| Average Diluted Common Shares Outstanding | 25,440,247 | 25,395,614 | 25,288,660 | 25,421,746 | 25,281,908 | ||||||||||||||||||
| End of Period Common Shares Outstanding | 25,519,501 | 25,502,175 | 25,344,168 | 25,519,501 | 25,344,168 | ||||||||||||||||||
| Annualized Performance Ratios | |||||||||||||||||||||||
| Return to Common Shareholders on Average Assets (1) | 0.97 | % | 0.95 | % | 1.17 | % | 0.89 | % | 1.09 | % | |||||||||||||
| Return to Common Shareholders on Average Common Equity (1) | 10.76 | % | 10.94 | % | 14.16 | % | 10.08 | % | 13.00 | % | |||||||||||||
| Net Interest Margin (1) | 3.51 | % | 3.45 | % | 3.61 | % | 3.43 | % | 3.66 | % | |||||||||||||
| Net Interest Spread (1) | 2.54 | % | 2.47 | % | 2.68 | % | 2.46 | % | 2.79 | % | |||||||||||||
| Efficiency Ratio (2) | 63.45 | % | 65.14 | % | 59.23 | % | 66.02 | % | 61.04 | % | |||||||||||||
| Total Quarterly/Year-to-Date Average Assets | $ | 6,788,644 | $ | 6,711,173 | $ | 6,474,935 | $ | 6,722,716 | $ | 6,290,886 | |||||||||||||
| Total Quarterly/Year-to-Date Average Common Equity | 610,018 | 583,184 | 535,211 | 590,354 | 526,398 | ||||||||||||||||||
| Other Expenses | |||||||||||||||||||||||
| Salaries and Employee Benefits | $ | 24,877 | $ | 25,523 | $ | 22,487 | $ | 75,816 | $ | 68,002 | |||||||||||||
| Occupancy and Bank Premises | 2,630 | 2,634 | 2,428 | 7,778 | 7,131 | ||||||||||||||||||
| Depreciation and Amortization | 1,844 | 1,742 | 1,690 | 5,262 | 5,120 | ||||||||||||||||||
| Data Processing | 2,881 | 2,641 | 2,024 | 8,101 | 6,544 | ||||||||||||||||||
| FDIC Assessment Fees | 887 | 874 | 779 | 2,589 | 2,804 | ||||||||||||||||||
| Legal and Other Professional Fees | 873 | 1,042 | 766 | 2,781 | 2,340 | ||||||||||||||||||
| Advertising and Promotions | 1,057 | 966 | 1,202 | 3,168 | 3,576 | ||||||||||||||||||
| Utilities and Communications | 716 | 718 | 758 | 2,108 | 2,199 | ||||||||||||||||||
| Ad Valorem Shares Tax | 900 | 900 | 965 | 2,700 | 2,895 | ||||||||||||||||||
| Directors' Fees | 245 | 268 | 278 | 795 | 817 | ||||||||||||||||||
| Other Real Estate Owned Expenses and Write-Downs | 11 | 71 | 14 | 119 | 183 | ||||||||||||||||||
| Merger and Conversion-Related Expenses | 319 | 409 | 2 | 1,068 | 173 | ||||||||||||||||||
| Other | 5,210 | 5,322 | 5,214 | 15,797 | 15,204 | ||||||||||||||||||
| Total Other Expenses | $ | 42,450 | $ | 43,110 | $ | 38,607 | $ | 128,082 | $ | 116,988 | |||||||||||||
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| Business First Bancshares, Inc. | |||||||||||||||||||||||
| Selected Financial Information | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | ||||||||||||||||||
| Other Income | |||||||||||||||||||||||
| Service Charges on Deposit Accounts | $ | 2,723 | $ | 2,537 | $ | 2,540 | $ | 7,699 | $ | 7,234 | |||||||||||||
| Loss on Sales of Securities | (13) | — | — | (14) | (62) | ||||||||||||||||||
| Debit Card and ATM Fee Income | 1,864 | 1,950 | 1,581 | 5,590 | 4,797 | ||||||||||||||||||
| Bank-Owned Life Insurance Income | 679 | 627 | 604 | 1,885 | 1,675 | ||||||||||||||||||
| Gain on Sales of Loans | 122 | 2,460 | 321 | 2,721 | 1,426 | ||||||||||||||||||
| Mortgage Origination Income | 98 | 35 | 108 | 202 | 238 | ||||||||||||||||||
| Fees and Brokerage Commission | 1,968 | 1,875 | 1,933 | 5,780 | 5,537 | ||||||||||||||||||
| Gain on Sales of Other Real Estate Owned | (16) | 2 | 85 | 49 | 308 | ||||||||||||||||||
| Losses on Disposal of Other Assets | — | (15) | (23) | (15) | (14) | ||||||||||||||||||
| Gain on Sale of Branch | — | — | 932 | — | 932 | ||||||||||||||||||
| Gain on Extinguishment of Debt | — | — | 517 | — | — | ||||||||||||||||||
| Swap Fee Income | 937 | 285 | — | 1,451 | 1,458 | ||||||||||||||||||
| Pass-Through Income (Loss) from Other Investments | 335 | 392 | (11) | 1,022 | 2,974 | ||||||||||||||||||
| Other | 2,077 | 2,028 | 1,296 | 5,966 | 3,726 | ||||||||||||||||||
| Total Other Income | $ | 10,774 | $ | 12,176 | $ | 9,883 | $ | 32,336 | $ | 30,229 | |||||||||||||
| (1) Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an actual day count convention. | |||||||||||||||||||||||
| (2) Noninterest expense (excluding provision for loan losses) divided by noninterest income (excluding security sales gains/losses) plus net interest income less gain/loss on sales of securities. | |||||||||||||||||||||||
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| Business First Bancshares, Inc. | ||||||||||||||
| Consolidated Balance Sheets | ||||||||||||||
| (Unaudited) | ||||||||||||||
| (Dollars in thousands) | September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||
| Assets | ||||||||||||||
| Cash and Due From Banks | $ | 213,199 | $ | 208,051 | $ | 191,461 | ||||||||
| Federal Funds Sold | 169,980 | 113,587 | 196,616 | |||||||||||
| Securities Purchased under Agreements to Resell | 25,879 | — | — | |||||||||||
| Securities Available for Sale, at Fair Values | 916,091 | 875,048 | 849,704 | |||||||||||
| Mortgage Loans Held for Sale | — | 680 | 652 | |||||||||||
| Loans and Lease Receivable | 5,220,118 | 5,162,852 | 4,920,273 | |||||||||||
| Allowance for Loan Losses | (42,154) | (41,412) | (41,129) | |||||||||||
| Net Loans and Lease Receivable | 5,177,964 | 5,121,440 | 4,879,144 | |||||||||||
| Premises and Equipment, Net | 67,617 | 68,545 | 64,674 | |||||||||||
| Accrued Interest Receivable | 32,547 | 30,617 | 28,060 | |||||||||||
| Other Equity Securities | 39,555 | 38,805 | 32,591 | |||||||||||
| Other Real Estate Owned | 1,787 | 1,983 | 1,558 | |||||||||||
| Cash Value of Life Insurance | 101,362 | 100,684 | 95,906 | |||||||||||
| Deferred Taxes, Net | 20,852 | 25,888 | 34,660 | |||||||||||
| Goodwill | 91,527 | 91,527 | 88,391 | |||||||||||
| Core Deposit and Customer Intangibles | 10,326 | 10,849 | 12,418 | |||||||||||
| Other Assets | 19,963 | 16,185 | 12,946 | |||||||||||
| Total Assets | $ | 6,888,649 | $ | 6,703,889 | $ | 6,488,781 | ||||||||
| Liabilities | ||||||||||||||
| Deposits | ||||||||||||||
| Noninterest-Bearing | $ | 1,190,942 | $ | 1,310,204 | $ | 1,412,406 | ||||||||
| Interest-Bearing | 4,450,004 | 4,253,466 | 3,778,317 | |||||||||||
| Total Deposits | 5,640,946 | 5,563,670 | 5,190,723 | |||||||||||
| Securities Sold Under Agreements to Repurchase | 21,529 | 18,445 | 23,245 | |||||||||||
| Bank Term Funding Program | — | — | 300,009 | |||||||||||
| Federal Home Loan Bank Borrowings | 367,202 | 305,208 | 214,184 | |||||||||||
| Subordinated Debt | 99,818 | 99,875 | 100,048 | |||||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 5,000 | 5,000 | |||||||||||
| Accrued Interest Payable | 3,752 | 4,517 | 11,188 | |||||||||||
| Other Liabilities | 50,878 | 42,644 | 4,018 | |||||||||||
| Total Liabilities | 6,189,125 | 6,039,359 | 5,884,415 | |||||||||||
| Shareholders' Equity | ||||||||||||||
| Preferred Stock | 71,930 | 71,930 | 71,930 | |||||||||||
| Common Stock | 25,520 | 25,502 | 25,344 | |||||||||||
| Additional Paid-In Capital | 398,237 | 397,851 | 396,121 | |||||||||||
| Retained Earnings | 249,981 | 237,031 | 205,207 | |||||||||||
| Accumulated Other Comprehensive Loss | (46,144) | (67,784) | (94,236) | |||||||||||
| Total Shareholders' Equity | 699,524 | 664,530 | 604,366 | |||||||||||
| Total Liabilities and Shareholders' Equity | $ | 6,888,649 | $ | 6,703,889 | $ | 6,488,781 | ||||||||
| b1BANK.com | ||
12
| Business First Bancshares, Inc. | ||||||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| (Dollars in thousands) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
| Interest Income: | ||||||||||||||||||||
| Interest and Fees on Loans | $ | 93,307 | $ | 90,604 | $ | 84,575 | $ | 269,858 | $ | 237,566 | ||||||||||
| Interest and Dividends on Securities | 6,417 | 5,933 | 5,053 | 17,949 | 14,932 | |||||||||||||||
| Interest on Federal Funds Sold and Due From Banks | 3,017 | 3,333 | 3,694 | 10,815 | 6,164 | |||||||||||||||
| Total Interest Income | 102,741 | 99,870 | 93,322 | 298,622 | 258,662 | |||||||||||||||
| Interest Expense: | ||||||||||||||||||||
| Interest on Deposits | 41,303 | 40,900 | 30,110 | 120,232 | 72,718 | |||||||||||||||
| Interest on Borrowings | 5,324 | 4,961 | 7,918 | 16,736 | 24,575 | |||||||||||||||
| Total Interest Expense | 46,627 | 45,861 | 38,028 | 136,968 | 97,293 | |||||||||||||||
| Net Interest Income | 56,114 | 54,009 | 55,294 | 161,654 | 161,369 | |||||||||||||||
| Provision for Credit Losses | 1,665 | 1,310 | 604 | 4,161 | 4,364 | |||||||||||||||
| Net Interest Income After Provision for Credit Losses | 54,449 | 52,699 | 54,690 | 157,493 | 157,005 | |||||||||||||||
| Other Income: | ||||||||||||||||||||
| Service Charges on Deposit Accounts | 2,723 | 2,537 | 2,540 | 7,699 | 7,234 | |||||||||||||||
| Loss on Sales of Securities | (13) | — | — | (14) | (62) | |||||||||||||||
| Gain on Sales of Loans | 122 | 2,460 | 321 | 2,721 | 1,426 | |||||||||||||||
| Other Income | 7,942 | 7,179 | 7,022 | 21,930 | 21,631 | |||||||||||||||
| Total Other Income | 10,774 | 12,176 | 9,883 | 32,336 | 30,229 | |||||||||||||||
| Other Expenses: | ||||||||||||||||||||
| Salaries and Employee Benefits | 24,877 | 25,523 | 22,487 | 75,816 | 68,002 | |||||||||||||||
| Occupancy and Equipment Expense | 5,828 | 5,717 | 5,445 | 16,902 | 15,558 | |||||||||||||||
| Merger and Conversion-Related Expense | 319 | 409 | 2 | 1,068 | 173 | |||||||||||||||
| Other Expenses | 11,426 | 11,461 | 10,673 | 34,296 | 33,255 | |||||||||||||||
| Total Other Expenses | 42,450 | 43,110 | 38,607 | 128,082 | 116,988 | |||||||||||||||
| Income Before Income Taxes | 22,773 | 21,765 | 25,966 | 61,747 | 70,246 | |||||||||||||||
| Provision for Income Taxes | 4,930 | 4,559 | 5,511 | 13,128 | 15,027 | |||||||||||||||
| Net Income | 17,843 | 17,206 | 20,455 | 48,619 | 55,219 | |||||||||||||||
| Preferred Stock Dividends | 1,351 | 1,350 | 1,351 | 4,051 | 4,051 | |||||||||||||||
| Net Income Available to Common Shareholders | $ | 16,492 | $ | 15,856 | $ | 19,104 | $ | 44,568 | $ | 51,168 | ||||||||||
| b1BANK.com | ||
13
| Business First Bancshares, Inc. | |||||||||||||||||||||||||||||||||||
| Consolidated Net Interest Margin | |||||||||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | |||||||||||||||||||||||||||||||||
| (Dollars in thousands) | Average Outstanding Balance | Interest Earned/Interest Paid | Average Yield/Rate | Average Outstanding Balance | Interest Earned/Interest Paid | Average Yield/Rate | Average Outstanding Balance | Interest Earned/Interest Paid | Average Yield/Rate | ||||||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||||||||
| Interest Earning Assets: | |||||||||||||||||||||||||||||||||||
| Total Loans | $ | 5,212,948 | $ | 93,307 | 7.12 | % | $ | 5,153,642 | $ | 90,604 | 7.07 | % | $ | 4,906,917 | $ | 84,575 | 6.84 | % | |||||||||||||||||
| Securities | 924,012 | 6,417 | 2.76 | % | 891,384 | 5,933 | 2.68 | % | 885,792 | 5,053 | 2.26 | % | |||||||||||||||||||||||
| Interest-Bearing Deposit in Other Banks | 227,035 | 3,017 | 5.29 | % | 246,590 | 3,333 | 5.44 | % | 278,420 | 3,694 | 5.26 | % | |||||||||||||||||||||||
| Total Interest Earning Assets | 6,363,995 | 102,741 | 6.42 | % | 6,291,616 | 99,870 | 6.38 | % | 6,071,129 | 93,322 | 6.10 | % | |||||||||||||||||||||||
| Allowance for Loan Losses | (41,554) | (41,450) | (42,120) | ||||||||||||||||||||||||||||||||
| Noninterest- Earning Assets | 466,203 | 461,007 | 445,926 | ||||||||||||||||||||||||||||||||
| Total Assets | $ | 6,788,644 | $ | 102,741 | $ | 6,711,173 | $ | 99,870 | $ | 6,474,935 | $ | 93,322 | |||||||||||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||||||||||||||
| Interest-Bearing Deposits | $ | 4,308,780 | $ | 41,303 | 3.81 | % | $ | 4,268,207 | $ | 40,900 | 3.85 | % | $ | 3,703,682 | $ | 30,110 | 3.23 | % | |||||||||||||||||
| Subordinated Debt | 99,854 | 1,353 | 5.39 | % | 99,913 | 1,354 | 5.45 | % | 100,400 | 1,363 | 5.39 | % | |||||||||||||||||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 114 | 9.07 | % | 5,000 | 113 | 9.09 | % | 5,000 | 111 | 8.81 | % | |||||||||||||||||||||||
| Bank Term Funding Program | — | — | — | % | — | — | — | % | 300,000 | 3,422 | 4.53 | % | |||||||||||||||||||||||
| Advances from Federal Home Loan Bank (FHLB) | 347,476 | 3,723 | 4.26 | % | 324,691 | 3,372 | 4.18 | % | 284,930 | 2,875 | 4.00 | % | |||||||||||||||||||||||
| Other Borrowings | 20,971 | 134 | 2.54 | % | 19,164 | 122 | 2.56 | % | 23,542 | 147 | 2.48 | % | |||||||||||||||||||||||
| Total Interest-Bearing Liabilities | $ | 4,782,081 | $ | 46,627 | 3.88 | % | $ | 4,716,975 | $ | 45,861 | 3.91 | % | $ | 4,417,554 | $ | 38,028 | 3.42 | % | |||||||||||||||||
| Noninterest-Bearing Liabilities: | |||||||||||||||||||||||||||||||||||
| Noninterest-Bearing Deposits | $ | 1,269,282 | $ | 1,297,085 | $ | 1,399,293 | |||||||||||||||||||||||||||||
| Other Liabilities | 55,333 | 41,999 | 50,947 | ||||||||||||||||||||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,324,615 | 1,339,084 | 1,450,240 | ||||||||||||||||||||||||||||||||
| Shareholders' Equity: | |||||||||||||||||||||||||||||||||||
| Common Shareholders' Equity | 610,018 | 583,184 | 535,211 | ||||||||||||||||||||||||||||||||
| Preferred Equity | 71,930 | 71,930 | 71,930 | ||||||||||||||||||||||||||||||||
| Total Shareholders' Equity | 681,948 | 655,114 | 607,141 | ||||||||||||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 6,788,644 | $ | 6,711,173 | $ | 6,474,935 | |||||||||||||||||||||||||||||
| Net Interest Spread | 2.54 | % | 2.47 | % | 2.68 | % | |||||||||||||||||||||||||||||
| Net Interest Income | $ | 56,114 | $ | 54,009 | $ | 55,294 | |||||||||||||||||||||||||||||
| Net Interest Margin | 3.51 | % | 3.45 | % | 3.61 | % | |||||||||||||||||||||||||||||
| Overall Cost of Funds | 3.07 | % | 3.07 | % | 2.59 | % | |||||||||||||||||||||||||||||
| Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention. | |||||||||||||||||||||||||||||||||||
| b1BANK.com | ||
14
| Business First Bancshares, Inc. | |||||||||||||||||||||||
| Consolidated Net Interest Margin | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Six Months Ended | |||||||||||||||||||||||
| (Dollars in thousands) | September 30, 2024 | September 30, 2023 | |||||||||||||||||||||
| Average Outstanding Balance | Interest Earned/Interest Paid | Average Yield/Rate | Average Outstanding Balance | Interest Earned/Interest Paid | Average Yield/Rate | ||||||||||||||||||
| Assets | |||||||||||||||||||||||
| Interest Earning Assets: | |||||||||||||||||||||||
| Total Loans | $ | 5,131,474 | $ | 269,858 | 7.02 | % | $ | 4,829,537 | $ | 237,566 | 6.58 | % | |||||||||||
| Securities | 901,525 | 17,949 | 2.66 | % | 909,901 | 14,932 | 2.19 | % | |||||||||||||||
| Interest-Bearing Deposit in Other Banks | 267,815 | 10,815 | 5.39 | % | 150,995 | 6,164 | 5.46 | % | |||||||||||||||
| Total Interest Earning Assets | 6,300,814 | 298,622 | 6.33 | % | 5,890,433 | 258,662 | 5.87 | % | |||||||||||||||
| Allowance for Loan Losses | (41,178) | (41,888) | |||||||||||||||||||||
| Noninterest- Earning Assets | 463,080 | 442,341 | |||||||||||||||||||||
| Total Assets | $ | 6,722,716 | $ | 298,622 | $ | 6,290,886 | $ | 258,662 | |||||||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||
| Interest-Bearing Deposits | $ | 4,216,866 | $ | 120,232 | 3.81 | % | $ | 3,482,797 | $ | 72,718 | 2.79 | % | |||||||||||
| Subordinated Debt | 99,913 | 4,063 | 5.43 | % | 106,555 | 4,003 | 5.02 | % | |||||||||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 340 | 9.08 | % | 5,000 | 317 | 8.48 | % | |||||||||||||||
| Bank Term Funding Program | 86,496 | 2,788 | 4.31 | % | 238,274 | 8,111 | 4.55 | % | |||||||||||||||
| Advances from Federal Home Loan Bank (FHLB) | 298,735 | 9,189 | 4.11 | % | 368,542 | 11,755 | 4.26 | % | |||||||||||||||
| Other Borrowings | 18,758 | 356 | 2.54 | % | 22,177 | 389 | 2.35 | % | |||||||||||||||
| Total Interest-Bearing Liabilities | $ | 4,725,768 | $ | 136,968 | 3.87 | % | $ | 4,223,345 | $ | 97,293 | 3.08 | % | |||||||||||
| Noninterest-Bearing Liabilities: | |||||||||||||||||||||||
| Noninterest-Bearing Deposits | $ | 1,283,035 | $ | 1,427,821 | |||||||||||||||||||
| Other Liabilities | 51,629 | 41,392 | |||||||||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,334,664 | 1,469,213 | |||||||||||||||||||||
| Shareholders' Equity: | |||||||||||||||||||||||
| Common Shareholders' Equity | 590,354 | 526,398 | |||||||||||||||||||||
| Preferred Equity | 71,930 | 71,930 | |||||||||||||||||||||
| Total Shareholders' Equity | 662,284 | 598,328 | |||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 6,722,716 | $ | 6,290,886 | |||||||||||||||||||
| Net Interest Spread | 2.46 | % | 2.79 | % | |||||||||||||||||||
| Net Interest Income | $ | 161,654 | $ | 161,369 | |||||||||||||||||||
| Net Interest Margin | 3.43 | % | 3.66 | % | |||||||||||||||||||
| Overall Cost of Funds | 3.04 | % | 2.30 | % | |||||||||||||||||||
| Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention. | |||||||||||||||||||||||
| b1BANK.com | ||
15
| Business First Bancshares, Inc. | ||||||||||||||||||||
| Non-GAAP Measures | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
| Interest Income: | ||||||||||||||||||||
| Interest income | $ | 102,741 | $ | 99,870 | $ | 93,322 | $ | 298,622 | $ | 258,662 | ||||||||||
| Core interest income | 102,741 | 99,870 | 93,322 | 298,622 | 258,662 | |||||||||||||||
| Interest Expense: | ||||||||||||||||||||
| Interest expense | 46,627 | 45,861 | 38,028 | 136,968 | 97,293 | |||||||||||||||
| Core interest expense | 46,627 | 45,861 | 38,028 | 136,968 | 97,293 | |||||||||||||||
| Provision for Credit Losses: (b) | ||||||||||||||||||||
| Provision for credit losses | 1,665 | 1,310 | 604 | 4,161 | 4,364 | |||||||||||||||
| Core provision expense | 1,665 | 1,310 | 604 | 4,161 | 4,364 | |||||||||||||||
| Other Income: | ||||||||||||||||||||
| Other income | 10,774 | 12,176 | 9,883 | 32,336 | 30,229 | |||||||||||||||
| Gain on former bank premises and equipment | — | — | — | (50) | — | |||||||||||||||
| Losses on sale of securities | 13 | — | — | 14 | 62 | |||||||||||||||
| Gain on sale of branch | — | — | (932) | — | (932) | |||||||||||||||
| Gain on extinguishment of debt | — | — | (517) | — | (1,458) | |||||||||||||||
| Core other income | 10,787 | 12,176 | 8,434 | 32,300 | 27,901 | |||||||||||||||
| Other Expense: | ||||||||||||||||||||
| Other expense | 42,450 | 43,110 | 38,607 | 128,082 | 116,988 | |||||||||||||||
| Acquisition-related expenses (2) | (319) | (419) | (2) | (1,453) | (173) | |||||||||||||||
| Core conversion expenses | (511) | — | — | (511) | — | |||||||||||||||
| Core other expense | 41,620 | 42,691 | 38,605 | 126,118 | 116,815 | |||||||||||||||
| Pre-Tax Income: (a) | ||||||||||||||||||||
| Pre-tax income | 22,773 | 21,765 | 25,966 | 61,747 | 70,246 | |||||||||||||||
| Gain on former bank premises and equipment | — | — | — | (50) | — | |||||||||||||||
| Losses on sale of securities | 13 | — | — | 14 | 62 | |||||||||||||||
| Gain on sale of branch | — | — | (932) | (932) | ||||||||||||||||
| Gain on extinguishment of debt | — | — | (517) | — | (1,458) | |||||||||||||||
| Acquisition-related expenses (2) | 319 | 419 | 2 | 1,453 | 173 | |||||||||||||||
| Core conversion expenses | 511 | — | — | 511 | — | |||||||||||||||
| Core pre-tax income | 23,616 | 22,184 | 24,519 | 63,675 | 68,091 | |||||||||||||||
| Provision for Income Taxes: (1) | ||||||||||||||||||||
| Provision for income taxes | 4,930 | 4,559 | 5,511 | 13,128 | 15,027 | |||||||||||||||
| Tax on losses on former bank premises and equipment | — | — | — | (11) | — | |||||||||||||||
| Tax on losses on sale of securities | 3 | — | — | 3 | 13 | |||||||||||||||
| Tax on gain on sale of branch | — | — | (197) | — | (197) | |||||||||||||||
| Gain on extinguishment of debt | — | — | (109) | — | (308) | |||||||||||||||
| Tax on acquisition-related expenses (2) | — | 2 | — | 91 | 20 | |||||||||||||||
| b1BANK.com | ||
16
| Business First Bancshares, Inc. | ||||||||||||||||||||
| Non-GAAP Measures | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
| Tax on core conversion expenses | 108 | — | — | 108 | — | |||||||||||||||
| Core provision for income taxes | 5,041 | 4,561 | 5,205 | 13,319 | 14,555 | |||||||||||||||
| Preferred Dividends: | ||||||||||||||||||||
| Preferred dividends | 1,351 | 1,350 | 1,351 | 4,051 | 4,051 | |||||||||||||||
| Core preferred dividends | 1,351 | 1,350 | 1,351 | 4,051 | 4,051 | |||||||||||||||
| Net Income Available to Common Shareholders: | ||||||||||||||||||||
| Net income available to common shareholders | 16,492 | 15,856 | 19,104 | 44,568 | 51,168 | |||||||||||||||
| Losses on former bank premises and equipment, net of tax | — | — | — | (39) | — | |||||||||||||||
| Losses on sale of securities, net of tax | 10 | — | — | 11 | 49 | |||||||||||||||
| Gain on sale of branch | — | (735) | (735) | |||||||||||||||||
| Gain on extinguishment of debt, net of tax | — | — | (408) | — | (1,150) | |||||||||||||||
| Acquisition-related expenses (2), net of tax | 319 | 417 | 2 | 1,362 | 153 | |||||||||||||||
| Core conversion expenses, net of tax | 403 | — | — | 403 | — | |||||||||||||||
| Core net income available to common shareholders | $ | 17,224 | $ | 16,273 | $ | 17,963 | $ | 46,305 | $ | 49,485 | ||||||||||
| Pre-tax, pre-provision earnings available to common shareholders (a+b) | $ | 24,438 | $ | 23,075 | $ | 26,570 | $ | 65,908 | $ | 74,610 | ||||||||||
| Losses on former bank premises and equipment | — | — | — | (50) | — | |||||||||||||||
| Loss on sale of securities | 13 | — | — | 14 | 62 | |||||||||||||||
| b1BANK.com | ||
17
| Business First Bancshares, Inc. | ||||||||||||||||||||
| Non-GAAP Measures | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
| Gain on sale of branch | — | (932) | (932) | |||||||||||||||||
| Gain on extinguishment of debt | — | — | (517) | — | (1,458) | |||||||||||||||
| Acquisition-related expenses (2) | 319 | 419 | 2 | 1,453 | 173 | |||||||||||||||
| Occupancy and bank premises - storm repair | 511 | — | — | 511 | — | |||||||||||||||
| Core pre-tax, pre-provision earnings | $ | 25,281 | $ | 23,494 | $ | 25,123 | $ | 67,836 | $ | 72,455 | ||||||||||
| Average Diluted Common Shares Outstanding | 25,440,247 | 23,395,614 | 25,288,660 | 25,421,746 | 25,281,908 | |||||||||||||||
| Diluted Earnings Per Common Share: | ||||||||||||||||||||
| Diluted earnings per common share | $ | 0.65 | $ | 0.62 | $ | 0.76 | $ | 1.75 | $ | 2.02 | ||||||||||
| Losses on former bank premises and equipment, net of tax | — | — | — | — | — | |||||||||||||||
| Loss on sale of securities, net of tax | — | — | — | — | — | |||||||||||||||
| Gain on sale of branch, net of tax | — | — | (0.03) | — | (0.03) | |||||||||||||||
| Gain on extinguishment of debt, net of tax | — | — | (0.02) | — | (0.04) | |||||||||||||||
| Acquisition-related expenses (2), net of tax | 0.01 | 0.02 | — | 0.05 | 0.01 | |||||||||||||||
| Core conversion expenses,net of tax | 0.02 | — | — | 0.02 | — | |||||||||||||||
| Core diluted earnings per common share | $ | 0.68 | $ | 0.64 | $ | 0.71 | $ | 1.82 | $ | 1.96 | ||||||||||
| Pre-tax, pre-provision profit diluted earnings per common share | $ | 0.96 | $ | 0.91 | $ | 1.05 | $ | 2.59 | $ | 2.95 | ||||||||||
| Losses on former bank premises and equipment | — | — | — | — | — | |||||||||||||||
| Loss on sale of securities | — | — | — | — | — | |||||||||||||||
| Gain on sale of branch | — | — | (0.04) | — | (0.04) | |||||||||||||||
| Gain on extinguishment of debt | — | — | (0.02) | — | (0.06) | |||||||||||||||
| Acquisition-related expenses (2) | 0.01 | 0.02 | — | 0.06 | 0.01 | |||||||||||||||
| Core converison expenses | 0.02 | — | — | 0.02 | — | |||||||||||||||
| Core pre-tax, pre-provision diluted earnings per common share | $ | 0.99 | $ | 0.93 | $ | 0.99 | $ | 2.67 | $ | 2.86 | ||||||||||
| (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 | ||
18
| Business First Bancshares, Inc. | |||||||||||
| Non-GAAP Measures | |||||||||||
| (Unaudited) | |||||||||||
| (Dollars in thousands, except per share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||
| Total Shareholders' (Common) Equity: | |||||||||||
| Total shareholders' equity | $ | 699,524 | $ | 664,530 | $ | 604,366 | |||||
| Preferred stock | (71,930) | (71,930) | (71,930) | ||||||||
| Total common shareholders' equity | 627,594 | 592,600 | 532,436 | ||||||||
| Goodwill | (91,527) | (91,527) | (88,391) | ||||||||
| Core deposit and customer intangible | (10,326) | (10,849) | (12,418) | ||||||||
| Total tangible common equity | $ | 525,741 | $ | 490,224 | $ | 431,627 | |||||
| Total Assets: | |||||||||||
| Total assets | $ | 6,888,649 | $ | 6,703,889 | $ | 6,488,781 | |||||
| Goodwill | (91,527) | (91,527) | (88,391) | ||||||||
| Core deposit and customer intangible | (10,326) | (10,849) | (12,418) | ||||||||
| Total tangible assets | $ | 6,786,796 | $ | 6,601,513 | $ | 6,387,972 | |||||
| Common shares outstanding | 25,519,501 | 25,502,175 | 25,344,168 | ||||||||
| Book value per common share | $ | 24.59 | $ | 23.24 | $ | 21.01 | |||||
| Tangible book value per common share | $ | 20.60 | $ | 19.22 | $ | 17.03 | |||||
| Common equity to total assets | 9.11 | % | 8.84 | % | 8.21 | % | |||||
| Tangible common equity to tangible assets | 7.75 | % | 7.43 | % | 6.76 | % | |||||
| b1BANK.com | ||
19
| Business First Bancshares, Inc. | ||||||||||||||||||||
| Non-GAAP Measures | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
| Total Quarterly Average Assets | $ | 6,788,644 | $ | 6,711,173 | $ | 6,474,935 | $ | 6,722,716 | $ | 6,290,886 | ||||||||||
| Total Quarterly Average Common Equity | $ | 610,018 | $ | 583,184 | $ | 535,211 | $ | 590,354 | $ | 526,398 | ||||||||||
| Net Income Available to Common Shareholders: | ||||||||||||||||||||
| Net income available to common shareholders | $ | 16,492 | $ | 15,856 | $ | 19,104 | $ | 44,568 | $ | 51,168 | ||||||||||
| Gain on former bank premises and equipment, net of tax | — | — | — | (39) | — | |||||||||||||||
| Loss on sale of securities, net of tax | 10 | — | — | 11 | 49 | |||||||||||||||
| Gain on sale of branch, net of tax | — | — | (735) | — | (735) | |||||||||||||||
| Gain on extinguishment of debt, net of tax | — | — | (408) | — | (1,150) | |||||||||||||||
| Acquisition-related expenses, net of tax | 319 | 417 | 2 | 1,362 | 153 | |||||||||||||||
| Core conversion expenses, net of tax | 403 | — | — | 403 | — | |||||||||||||||
| Core net income available to common shareholders | $ | 17,224 | $ | 16,273 | $ | 17,963 | $ | 46,305 | $ | 49,485 | ||||||||||
| Return to common shareholders on average assets (annualized) (2) | 0.97 | % | 0.95 | % | 1.17 | % | 0.89 | % | 1.09 | % | ||||||||||
| Core return on average assets (annualized) (2) | 1.01 | % | 0.98 | % | 1.10 | % | 0.92 | % | 1.05 | % | ||||||||||
| Return to common shareholders on average common equity (annualized) (2) | 10.76 | % | 10.94 | % | 14.16 | % | 10.08 | % | 13.00 | % | ||||||||||
| Core return on average common equity (annualized) (2) | 11.23 | % | 11.22 | % | 13.32 | % | 10.48 | % | 12.57 | % | ||||||||||
| Interest Income: | ||||||||||||||||||||
| Interest income | $ | 102,741 | $ | 99,870 | $ | 93,322 | $ | 298,622 | $ | 258,662 | ||||||||||
| Core interest income | 102,741 | 99,870 | 93,322 | 298,622 | 258,662 | |||||||||||||||
| Interest Expense: | ||||||||||||||||||||
| Interest expense | 46,627 | 45,861 | 38,028 | 136,968 | 97,293 | |||||||||||||||
| Core interest expense | 46,627 | 45,861 | 38,028 | 136,968 | 97,293 | |||||||||||||||
| Other Income: | ||||||||||||||||||||
| Other income | 10,774 | 12,176 | 9,883 | 32,336 | 30,229 | |||||||||||||||
| Gain on former bank premises and equipment | — | — | — | (50) | — | |||||||||||||||
| Loss on sale of securities | 13 | — | — | 14 | 62 | |||||||||||||||
| Gain on sale of branch | — | — | (932) | — | (932) | |||||||||||||||
| Gain on extinguishment of debt | — | — | (517) | — | — | (1,458) | ||||||||||||||
| Core other income | 10,787 | 12,176 | 8,434 | 32,300 | 27,901 | |||||||||||||||
| Other Expense: | ||||||||||||||||||||
| Other expense | 42,450 | 43,110 | 38,607 | 128,082 | 116,988 | |||||||||||||||
| Acquisition-related expenses | (319) | (419) | (2) | (1,453) | (173) | |||||||||||||||
| b1BANK.com | ||
20
| Business First Bancshares, Inc. | ||||||||||||||||||||
| Non-GAAP Measures | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||||
| (Dollars in thousands, except per share data) | September 30, 2024 | June 30, 2024 | September 30, 2023 | September 30, 2024 | September 30, 2023 | |||||||||||||||
| Core conversion expenses | (511) | — | — | (511) | — | |||||||||||||||
| Core other expense | $ | 41,620 | $ | 42,691 | $ | 38,605 | $ | 126,118 | $ | 116,815 | ||||||||||
| Efficiency Ratio: | ||||||||||||||||||||
| Other expense (a) | $ | 42,450 | $ | 43,110 | $ | 38,607 | $ | 128,082 | $ | 116,988 | ||||||||||
| Core other expense (c) | $ | 41,620 | $ | 42,691 | $ | 38,605 | $ | 126,118 | $ | 116,815 | ||||||||||
| Net interest and other income (1) (b) | $ | 66,901 | $ | 66,185 | $ | 65,177 | $ | 194,004 | $ | 191,660 | ||||||||||
| Core net interest and other income (1) (d) | $ | 66,901 | $ | 66,185 | $ | 63,728 | $ | 193,954 | $ | 189,270 | ||||||||||
| Efficiency ratio (a/b) | 63.45 | % | 65.14 | % | 59.23 | % | 66.02 | % | 61.04 | % | ||||||||||
| Core efficiency ratio (c/d) | 62.21 | % | 64.50 | % | 60.58 | % | 65.02 | % | 61.72 | % | ||||||||||
| Total Average Interest-Earnings Assets | $ | 6,363,995 | $ | 6,291,616 | $ | 6,071,129 | $ | 6,300,814 | $ | 5,890,433 | ||||||||||
| Net Interest Income: | ||||||||||||||||||||
| Net interest income | $ | 56,114 | $ | 54,009 | $ | 55,294 | $ | 161,654 | $ | 161,369 | ||||||||||
| Loan discount accretion | $ | (705) | $ | (1,695) | $ | (2,419) | $ | (3,185) | $ | (7,390) | ||||||||||
| Net interest income excluding loan discount accretion | $ | 55,409 | $ | 52,314 | $ | 52,875 | $ | 158,469 | $ | 153,979 | ||||||||||
| Net interest margin (2) | 3.51 | % | 3.45 | % | 3.61 | % | 3.43 | % | 3.66 | % | ||||||||||
| Net interest margin excluding loan discount accretion (2) | 3.46 | % | 3.34 | % | 3.46 | % | 3.36 | % | 3.49 | % | ||||||||||
| Net interest spread (2) | 2.54 | % | 2.47 | % | 2.68 | % | 2.46 | % | 2.79 | % | ||||||||||
| Net interest spread excluding loan discount accretion (2) | 2.50 | % | 2.37 | % | 2.53 | % | 2.39 | % | 2.62 | % | ||||||||||
| (1) Excludes gains/losses on sales of securities. | ||||||||||||||||||||
| (2) Calculated utilizing an actual day count convention. | ||||||||||||||||||||
| b1BANK.com | ||
