Business First Bancshares, Inc., Announces Financial
Business First Bancshares, Inc., Announces Financial

BATON ROUGE, La., April 26, 2022 (GLOBE NEWSWIRE) — Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended March 31, 2022, including net income of $8.7 million or $0.41 per diluted share, decreases of $3.3 million and $0.18, respectively, from the quarter ended December 31, 2021. On a non-GAAP basis, core net income for the quarter ended March 31, 2022, which excludes certain income and expenses, was $10.3 million or $0.49 per diluted share, decreases of $1.4 million and $0.08, respectively, from the quarter ended December 31, 2021.

“Over the first quarter we completed both the acquisition of Texas Citizens Bank in Houston and organically grew overall loans across our pre-acquisition footprint at a strong 25% annualized rate,” said Jude Melville, president and CEO. “The investments we’ve made in personnel and systems over the past few quarters are beginning to show returns. We are excited that our combination of healthy growth, stabilization of net interest margin and continued strong credit metrics put us in a solid position to help our clients continue navigating the uncertain times we are experiencing as a country.”

On April 26, 2022, Business First’s board of directors declared a quarterly dividend based upon financial performance for the first quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of May 15, 2022. The dividend will be paid on May 31, 2022, or as soon thereafter as practicable.

Quarterly Highlights

  • Completed Texas Citizens Acquisition. Business First completed its previously announced acquisition of Texas Citizens Bancorp, Inc. (Texas Citizens), based in Pasadena, Texas on March 1, 2022. As of February 28, 2022, Texas Citizens had consolidated total assets of $534.2 million, loans of $349.5 million, and deposits of $477.2 million.
  • Strong Loan Growth. Business First continued its strong organic loan growth in Texas and New Orleans due to the investments made over the course of 2021. Total loans held for investment at March 31, 2022, were $3.7 billion, an increase of $558.9 million compared to December 31, 2021, or 17.52% for the quarter. Excluding the decrease in Small Business Administration (SBA) Paycheck Protection Program (PPP) loans and loans acquired from Texas Citizens on March 1, 2022, total loans held for investment increased from the quarter ended December 31, 2021, by 6.43% or 25.71% annualized, of which 71.4% was attributable to Texas and 18.4% from our New Orleans market based on unpaid principal balance. As of March 31, 2022, approximately 31% of Business First’s loan portfolio resides in Texas based on unpaid principal balances.
  • Stabilized Net Interest Margin. For the quarter ended March 31, 2022, net interest income totaled $40.5 million and net interest margin and net interest spread were 3.51% and 3.35%, respectively, compared to $38.3 million, 3.57% and 3.38% for the quarter ended December 31, 2021. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $920,000) were 3.43% and 3.27%, respectively, for the quarter ended March 31, 2022, compared to 3.42% and 3.24% (excluding loan discount accretion of $1.6 million) for the quarter ended December 31, 2021. Non-GAAP net interest margin rose one basis point over the linked quarter despite the negative impact of two fewer days during the quarter ended March 31, 2022.
  • Continued Strong Credit Quality. Credit quality remained relatively stable from the linked quarter. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from 0.41% and 0.31%, respectively, at December 31, 2021, to 0.29% and 0.23% at March 31, 2022. The reduction was partially attributable to charge-offs during the quarter ended March 31, 2022, and the addition of Texas Citizens. Excluding the charge-offs and the addition of Texas Citizens, credit quality slightly improved over the linked quarter.

Financial Condition

March 31, 2022, Compared to December 31, 2021

Loans

Loans held for investment increased $558.9 million or 17.52% for the quarter ended March 31, 2022. The increase was attributable to the acquisition of Texas Citizens on March 1, 2022, and new loan originations during the quarter.

Excluding the net decrease in SBA PPP loans and loans acquired from Texas Citizens on March 1, 2022, total loans held for investment increased for the quarter ended March 31, 2022, by $226.9 million or 6.43% or 25.71% annualized.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 0.41% as of December 31, 2021, to 0.29% as of March 31, 2022. Nonperforming assets as a percentage of total assets decreased from 0.31% as of December 31, 2021, to 0.23% as of March 31, 2022. The reductions were partially attributable to charge-offs during the quarter ended March 31, 2022, and the addition of Texas Citizens. Excluding the charge-offs and Texas Citizens addition, credit quality slightly improved for the quarter ended March 31, 2022.

Total Shareholders’ Equity

Book value per common share was $20.25 at March 31, 2022, compared to $21.24 at December 31, 2021.

On a non-GAAP basis, tangible book value per share was $15.57 at March 31, 2022, compared to $17.71 at December 31, 2021. Tangible book value per share was impacted by the acquisition of Texas Citizens on March 1, 2022, resulting in dilution of $0.55, and a decrease in accumulated other comprehensive income of $38.6 million attributable to fair value adjustments on Business First’s available for sale investment portfolio, resulting in dilution of $1.88.

March 31, 2022, Compared to March 31, 2021

Loans

Total loans held for investment increased by $706.5 million or 23.23% compared to March 31, 2021. Excluding SBA PPP loans and loans acquired from Texas Citizens on March 1, 2022, loans increased $741.5 million, or 27.92%.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 0.44% as of March 31, 2021, to 0.29% as of March 31, 2022. Nonperforming assets as a percentage of total assets decreased from 0.52% as of March 31, 2021, to 0.23% as of March 31, 2022, largely due to the sales of nonperforming assets.

Total Shareholders’ Equity

Book value per common share was $20.25 at March 31, 2022, compared to $20.03 at March 31, 2021. On a non-GAAP basis, tangible book value per share was $15.57 at March 31, 2022, compared to $16.99 at March 31, 2021. Tangible book value per share was impacted by the acquisition of Texas Citizens on March 1, 2022, and more significantly by a decrease in accumulated other comprehensive income of $45.9 million attributable to fair value adjustments on Business First’s available-for-sale investment portfolio.

Results of Operations

First Quarter 2022 Compared to Fourth Quarter 2021

Net Income and Diluted Earnings Per Share

For the quarter ended March 31, 2022, net income was $8.7 million, or $0.41 per diluted share, compared to net income of $12.1 million or $0.59 per diluted share, for the quarter ended December 31, 2021, decreases of $3.3 million and $0.18, respectively. The decrease was largely attributable to a $2.3 million increase in salaries and benefits (approximately $530,000 attributable to salaries of Texas Citizens, $114,000 related to production bonuses, and $360,000 related to bonus payments/taxes attributable to 2021), and a decrease in other income attributable to $708,000 losses on disposals of other assets on former premises and equipment during the quarter ended March 31, 2022. Further, a $492,000 gain on sale of the Oak Grove Banking Center, $444,000 gain on sales of securities, and $555,000 in Small Business Investment Company (SBIC) income occurred during the quarter ended December 31, 2021. These amounts were partially offset by a $2.1 million increase in net interest income during the quarter ended March 31, 2022.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2022, was $10.3 million or $0.49 per diluted share, compared to core net income of $11.7 million or $0.57 per diluted share, for the quarter ended December 31, 2021. Notable noncore events impacting earnings for the quarter ended March 31, 2022, included $717,000 losses in disposals of former bank premises and equipment in other income, $811,000 of expenses attributable to acquisition-related expenses, and $231,000 of expenses attributable to hurricane repairs, compared to $444,000 in gains on sale of securities, a $492,000 gain on sale of the Oak Grove Banking Center, and $266,000 of expenses attributable to acquisition-related expenses, for the quarter ended December 31, 2021.

Interest Income

For the quarter ended March 31, 2022, net interest income totaled $40.5 million and net interest margin and net interest spread were 3.51% and 3.35%, respectively, compared to $38.3 million, 3.57% and 3.38% for the quarter ended December 31, 2021. The average yield on total interest-earning assets was 3.83% for the quarter ended March 31, 2022, compared to 3.93% for the quarter ended December 31, 2021. The increase in interest income was largely attributable to loan growth during the fourth quarter of 2021 and first quarter of 2022. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.75% for the quarter ended March 31, 2022, compared to 4.93% for the quarter ended December 31, 2021, largely due to two fewer days and $639,000 less discount accretion for the quarter ended March 31, 2022.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $920,000) were 3.43% and 3.27%, respectively, for the quarter ended March 31, 2022, compared to 3.42% and 3.24% (excluding loan discount accretion of $1.6 million) for the quarter ended December 31, 2021.   

Interest Expense

For the quarter ended March 31, 2022, overall cost of funds (which includes noninterest-bearing deposits) decreased by five basis points, from 0.38% to 0.33%, compared to the quarter ended December 31, 2021, due to increased noninterest deposits, lower yielding interest-bearing deposits, and two fewer days.

Other Income

For the quarter ended March 31, 2022, other income was lower by $1.8 million compared to the quarter ended December 31, 2021. The decrease was largely attributable to a $708,000 increase on losses related to disposal of other assets of former premises and equipment during the quarter ended March 31, 2022, and the $492,000 gain on sale related to the sale of the Oak Grove Banking Center, $444,000 gain on sales of securities, and $440,000 decrease in SBIC income during the quarter ended December 31, 2021.

Other Expenses

For the quarter ended March 31, 2022, other expense increased by $3.6 million compared to the quarter ended December 31, 2021. The increase was largely attributable to increases in salaries and benefits, $2.3 million, merger and conversion-related expenses, $545,000, and occupancy and bank premises, $530,000. The majority of the increases were attributable to the acquisition of Texas Citizens on March 1, 2022; however, salaries and benefits also increased largely due to additional staffing and merit increases during the quarter ended March 31, 2022.

Provision for Loan Losses

During the quarter ended March 31, 2022, Business First recorded a provision for loan losses of $1.6 million, compared to $1.3 million for the quarter ended December 31, 2021. The reserve for the quarter ended December 31, 2021, was driven primarily by new loan growth and charge-offs recorded, partially offset by improvement in the qualitative factors (attributed to the general economy and energy sector).

Return on Assets and Equity

Return on average assets and equity, each on an annualized basis, were 0.71% and 7.83%, respectively, for the quarter ended March 31, 2022, compared to 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021.

First Quarter 2022 Compared to First Quarter 2021

Net Income and Diluted Earnings Per Share

For the quarter ended March 31, 2022, net income was $8.7 million or $0.41 per diluted share, compared to net income of $12.3 million or $0.59 per diluted share, for the quarter ended March 31, 2021. The decreases in net income and diluted earnings per share were largely attributable to the $7.0 million increase in other expenses, partially offset by $1.0 million in additional other income and $1.7 million less in provision for loan losses.  

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2022, was $10.3 million or $0.49 per diluted share, compared to core net income of $12.6 million or $0.61 per diluted share, for the quarter ended March 31, 2021. Notable noncore events impacting earnings for the quarter ended March 31, 2022, included $717,000 in losses on disposals of former bank premises and equipment in other income, $811,000 of expenses attributable to acquisition-related expenses, and $231,000 of expenses attributable to hurricane repairs, compared to the incurrence of $350,000 in losses attributed to former bank premises and equipment in other expenses for the quarter ended March 31, 2021.

Interest Income

For the quarter ended March 31, 2022, net interest income totaled $40.5 million and net interest margin and net interest spread were 3.51% and 3.35%, respectively, compared to $40.3 million, 4.23% and 4.06% for the quarter ended March 31, 2021. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.75% for the quarter ended March 31, 2022, compared to 5.53% for the quarter ended March 31, 2021. The quarter ended March 21, 2021, included additional loan discount accretion of $2.1 million. Excluding SBA PPP interest income and loan discount accretion, loan interest income increased $5.8 million from the prior year quarter.

Average yield on total interest-earning assets, net interest margin, and net interest spread were negatively impacted for the quarter ended March 31, 2022, compared to the quarter ended March 31, 2021, by lower yielding loans, including SBA PPP loans, and securities, offset partially by lower deposit and borrowing yields.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $920,000) were 3.43% and 3.27%, respectively, for the quarter ended March 31, 2022, compared to 3.91% and 3.73% (excluding loan discount accretion of $3.1 million) for the quarter ended March 31, 2021.

Interest Expense

For the quarter ended March 31, 2022, overall cost of funds (which includes noninterest-bearing deposits) decreased by eight basis points, from 0.41% to 0.33%, compared to the quarter ended March 31, 2021. The decrease in cost of funds was primarily attributable to an overall reduction in interest rates on deposit offerings and increase in noninterest-bearing deposits, offset by an increase associated with higher subordinated debt balances.

Other Income

For the quarter ended March 31, 2022, the increase in other income of $1.0 million, compared to the quarter ended March 31, 2021, was largely attributable to the $1.3 million increase in fees and brokerage commissions related to the acquisition of Smith Shellnut Wilson, LLC on April 1, 2021, and a $238,000 increase in service charges for deposit accounts, offset by a $834,000 increase on losses on disposal of other assets mainly attributable to former premises and equipment.

Other Expenses

For the quarter ended March 31, 2022, the increase in other expense was $7.0 million compared to the quarter ended March 31, 2021. Notable increases include an increase in salaries and employee benefits of $4.8 million, attributable to an increase in employees, including the acquisition of Texas Citizens on March 1, 2022, merger and conversion-related expense increase of $801,000 attributable to the Texas Citizens acquisition, and other expenses increase of $613,000.

Provision for Loan Losses

During the quarter ended March 31, 2022, Business First recorded a provision for loan losses of $1.6 million compared to $3.4 million for the quarter ended March 31, 2021. The reserve for the quarter ended March 31, 2021, was affected by the impact of the COVID-19 pandemic on the qualitative factors at the time.

Return on Assets and Equity

Return on average assets and return on average equity, each on an annualized basis, were 0.71% and 7.83%, respectively, for the quarter ended March 31, 2022, from 1.15% and 11.86%, respectively, for the quarter ended March 31, 2021.   

About Business First Bancshares, Inc.

Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $5.4 billion in assets, $5.7 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $1.0 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 three-time recipient of Baton Rouge Business Report’s “Best Places to Work in Baton Rouge.” 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.

Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com

Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
  For the Quarter Ended
  March 31, December 31, March 31,
(Dollars in thousands)   2022     2021     2021  
       
Balance Sheet Ratios      
       
Loans (HFI) to Deposits   80.48 %   78.23 %   78.83 %
Shareholders’ Equity to Assets Ratio   8.52 %   9.17 %   9.38 %
       
Loans Receivable Held for Investment      
       
Commercial (1) $ 817,093   $ 721,385   $ 962,099  
Real Estate:      
Construction and Land   581,661     548,528     418,234  
Farmland   149,270     87,463     52,861  
1-4 Family Residential   485,067     467,699     460,907  
Multi-Family Residential   109,773     97,508     77,390  
Nonfarm Nonresidential   1,481,046     1,144,426     966,416  
Total Real Estate   2,806,817     2,345,624     1,975,808  
Consumer and Other (1)   124,588     122,599     104,071  
Total Loans (Held for Investment) $ 3,748,498   $ 3,189,608   $ 3,041,978  
       
Allowance for Loan Losses      
       
Balance, Beginning of Period $ 29,112   $ 28,146   $ 22,024  
Charge-offs – Quarterly   (1,668 )   (385 )   (309 )
Recoveries – Quarterly   184     51     177  
Provision for Loan Losses – Quarterly   1,617     1,300     3,359  
Balance, End of Period $ 29,245   $ 29,112   $ 25,251  
       
Allowance for Loan Losses to Total Loans (HFI)   0.78 %   0.91 %   0.83 %
Net Charge-offs to Average Total Loans   0.04 %   0.01 %   0.00 %
       
Remaining Loan Purchase Discount $ 40,623   $ 27,573   $ 32,517  
       
Nonperforming Assets      
       
Nonperforming Loans:      
Nonaccrual Loans (2) $ 10,784   $ 12,868   $ 11,956  
Loans Past Due 90 Days or More (2)   26     222     1,479  
Total Nonperforming Loans   10,810     13,090     13,435  
Other Nonperforming Assets:      
Other Real Estate Owned   1,369     1,427     8,851  
Other Nonperforming Assets   84         623  
Total Other Nonperforming Assets   1,453     1,427     9,474  
Total Nonperforming Assets $ 12,263   $ 14,517   $ 22,909  
       
Nonperforming Loans to Total Loans (HFI)   0.29 %   0.41 %   0.44 %
Nonperforming Assets to Total Assets   0.23 %   0.31 %   0.52 %
       
(1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $6.0 million
of the commercial portfolio as of March 31, 2022.      
SBA PPP loans accounted for $5.4 million of the commercial portfolio as of December 31, 2021.  
SBA PPP loans accounted for $385.8 million and $0.1 million of the commercial    
and consumer portfolios, respectively, as of March 31, 2021.      
       
(2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if
the Company does not expect to receive payment in full, as the Company is currently accreting interest income
over the expected life of the loans.      
       
Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
       
  Three Months Ended
  March 31, December 31, March 31,
(Dollars in thousands, except per share data)   2022     2021     2021  
       
Per Share Data      
       
Basic Earnings per Common Share $ 0.42   $ 0.59   $ 0.60  
Diluted Earnings per Common Share   0.41     0.59     0.59  
Dividends per Common Share   0.12     0.12     0.10  
Book Value per Common Share   20.25     21.24     20.03  
       
       
Average Common Shares Outstanding   21,019,716     20,299,704     20,621,930  
Average Diluted Shares Outstanding   21,162,482     20,462,317     20,738,013  
End of Period Common Shares Outstanding   22,564,607     20,400,349     20,804,753  
       
       
Annualized Performance Ratios      
       
Return on Average Assets   0.71 %   1.05 %   1.15 %
Return on Average Equity   7.83 %   11.20 %   11.86 %
Net Interest Margin   3.51 %   3.57 %   4.23 %
Net Interest Spread   3.35 %   3.38 %   4.06 %
Efficiency Ratio (1)   72.67 %   66.07 %   59.19 %
       
Total Quarterly Average Assets $ 4,920,105   $ 4,584,460   $ 4,276,430  
Total Quarterly Average Equity   446,003     430,834     415,896  
       
Other Expenses      
       
Salaries and Employee Benefits $ 19,703   $ 17,355   $ 14,926  
Occupancy and Bank Premises   2,052     1,522     1,811  
Depreciation and Amortization   1,569     1,476     1,358  
Data Processing   2,116     2,032     1,823  
FDIC Assessment Fees   743     668     509  
Legal and Other Professional Fees   543     480     741  
Advertising and Promotions   531     999     477  
Utilities and Communications   779     586     575  
Ad Valorem Shares Tax   813     449     700  
Directors’ Fees   202     207     188  
Other Real Estate Owned Expenses and Write-Downs   14     76     379  
Merger and Conversion-Related Expenses   811     266     10  
Other   3,844     3,982     3,231  
Total Other Expenses $ 33,720   $ 30,098   $ 26,728  
       
Other Income      
       
Service Charges on Deposit Accounts $ 1,805   $ 1,800   $ 1,567  
Gain (Loss) on Sales of Securities   (31 )   444     (5 )
Debit Card and ATM Fee Income   1,501     1,554     1,336  
Bank-Owned Life Insurance Income   369     367     318  
Gain on Sales of Loans   65     3     (21 )
Mortgage Origination Income   209     169     229  
Fees and Brokerage Commission   1,835     1,721     543  
Gain (Loss) on Sales of Other Real Estate Owned   8     (35 )   46  
Gain (Loss) on Disposal of Other Assets   (717 )   (9 )   117  
Gain on Sale of Branch       492      
Pass-Through Income from SBIC Partnerships   115     555     53  
Other   737     597     665  
Total Other Income $ 5,896   $ 7,658   $ 4,848  
       
(1) Non-GAAP: Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest
income less gain/loss on sales of securities.      
       

 

Business First Bancshares, Inc.
Consolidated Balance Sheets
(Unaudited)
       
  March 31, December 31, March 31,
(Dollars in thousands)   2022     2021     2021  
       
Assets      
       
Cash and Due From Banks $ 282,074   $ 68,375   $ 355,257  
Federal Funds Sold   67,822     227,044     105,595  
Securities Available for Sale, at Fair Values   961,358     1,021,061     721,224  
Loans Held for Sale   13,559          
Mortgage Loans Held for Sale   1,354     1,200     2,298  
Loans and Lease Receivable   3,748,498     3,189,608     3,041,978  
Allowance for Loan Losses   (29,245 )   (29,112 )   (25,251 )
Net Loans and Lease Receivable   3,719,253     3,160,496     3,016,727  
Premises and Equipment, Net   63,003     58,155     57,931  
Accrued Interest Receivable   20,146     19,597     25,910  
Other Equity Securities   23,034     16,619     12,584  
Other Real Estate Owned   1,369     1,427     8,851  
Cash Value of Life Insurance   72,896     60,380     60,348  
Deferred Taxes, Net   23,040     8,822     5,536  
Goodwill   89,911     59,894     53,753  
Core Deposit and Customer Intangibles   15,617     12,203     9,406  
Other Assets   7,799     11,105     8,166  
       
Total Assets $ 5,362,235   $ 4,726,378   $ 4,443,586  
       
       
Liabilities      
       
Deposits      
Noninterest-Bearing $ 1,544,197   $ 1,291,036   $ 1,186,625  
Interest-Bearing   3,113,541     2,786,247     2,672,109  
Total Deposits   4,657,738     4,077,283     3,858,734  
       
Securities Sold Under Agreements to Repurchase   23,345     19,121     21,419  
Short-Term Borrowings   20     20     20  
Subordinated Debt   111,209     81,427     77,500  
Subordinated Debt – Trust Preferred Securities   5,000     5,000     5,000  
Federal Home Loan Bank Borrowings   79,957     82,022     33,073  
Accrued Interest Payable   895     1,354     1,941  
Other Liabilities   27,234     26,783     29,198  
       
Total Liabilities   4,905,398     4,293,010     4,026,885  
       
Shareholders’ Equity      
       
Common Stock   22,565     20,400     20,805  
Additional Paid-In Capital   345,858     292,271     300,282  
Retained Earnings   128,168     121,874     89,441  
Accumulated Other Comprehensive Income (Loss)   (39,754 )   (1,177 )   6,173  
       
Total Shareholders’ Equity   456,837     433,368     416,701  
       
Total Liabilities and Shareholders’ Equity $ 5,362,235   $ 4,726,378   $ 4,443,586  
       
Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
       
    Three Months Ended  
  March 31, December 31, March 31,
(Dollars in thousands)   2022     2021   2021  
       
Interest Income:      
Interest and Fees on Loans $ 40,183   $ 38,337 $ 41,419  
Interest and Dividends on Securities   3,844     3,904   2,802  
Interest on Federal Funds Sold and Due From Banks   95     50   41  
Total Interest Income   44,122     42,291   44,262  
       
Interest Expense:      
Interest on Deposits   2,263     2,645   3,243  
Interest on Borrowings   1,384     1,302   718  
Total Interest Expense   3,647     3,947   3,961  
       
Net Interest Income   40,475     38,344   40,301  
       
Provision for Loan Losses:   1,617     1,300   3,359  
       
Net Interest Income After Provision for Loan Losses   38,858     37,044   36,942  
       
Other Income:      
Service Charges on Deposit Accounts   1,805     1,800   1,567  
Gain (Loss) on Sales of Securities   (31 )   444   (5 )
Gain (Loss) on Sales of Loans   65     3   (21 )
Other Income   4,057     5,411   3,307  
Total Other Income   5,896     7,658   4,848  
       
Other Expenses:      
Salaries and Employee Benefits   19,703     17,355   14,926  
Occupancy and Equipment Expense   4,413     3,857   3,717  
Merger and Conversion-Related Expense   811     266   10  
Other Expenses   8,793     8,620   8,075  
Total Other Expenses   33,720     30,098   26,728  
       
Income Before Income Taxes:   11,034     14,604   15,062  
       
Provision for Income Taxes:   2,303     2,536   2,733  
       
Net Income: $ 8,731   $ 12,068 $ 12,329  
       
Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
                       
                       
  Three Months Ended
  March 31, 2022   December 31, 2021   March 31, 2021
  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 (Excluding SBA PPP) $ 3,382,325   $ 40,174 4.75 %   $ 3,106,477   $ 38,318 4.93 %   $ 2,643,668   $ 36,538 5.53 %
SBA PPP Loans   3,725     9 1.00 %     7,733     19 1.00 %     374,958     4,881 5.21 %
Securities Available for Sale   1,005,252     3,844 1.53 %     1,041,437     3,904 1.50 %     691,476     2,802 1.62 %
Interest-Bearing Deposit in Other Banks   221,148     95 0.17 %     143,488     50 0.14 %     101,233     41 0.16 %
Total Interest-Earning Assets   4,612,450     44,122 3.83 %     4,299,135     42,291 3.93 %     3,811,335     44,262 4.65 %
Allowance for Loan Losses   (29,260 )         (28,379 )         (22,709 )    
Noninterest-Earning Assets   336,915           313,704           487,804      
Total Assets $ 4,920,105   $ 44,122     $ 4,584,460   $ 42,291     $ 4,276,430   $ 44,262  
                       
                       
Liabilities and Shareholders’ Equity                      
                       
Interest-Bearing Liabilities:                      
Interest-Bearing Deposits $ 2,882,838   $ 2,263 0.31 %   $ 2,653,041   $ 2,645 0.40 %   $ 2,584,263   $ 3,243 0.50 %
Subordinated Debt   91,354     1,115 4.88 %     81,427     1,026 5.04 %     28,450     459 6.45 %
Subordinated Debt – Trust Preferred Securities   5,000     42 3.36 %     5,000     42 3.36 %     5,000     42 3.36 %
Advances from Federal Home Loan Bank (FHLB)   80,375     223 1.11 %     83,374     229 1.10 %     37,022     111 1.20 %
Other Borrowings   19,666     4 0.08 %     25,774     5 0.08 %     31,696     106 1.34 %
Total Interest-Bearing Liabilities   3,079,233     3,647 0.47 %     2,848,616     3,947 0.55 %     2,686,431     3,961 0.59 %
                       
Noninterest-Bearing Liabilities:                      
Noninterest-Bearing Deposits $ 1,370,015         $ 1,276,279         $ 1,146,950      
Other Liabilities   24,854           28,731           27,153      
Total Noninterest-Bearing Liabilities   1,394,869           1,305,010           1,174,103      
Shareholders’ Equity   446,003           430,834           415,896      
Total Liabilities and Shareholders’ Equity $ 4,920,105         $ 4,584,460         $ 4,276,430      
                       
Net Interest Spread     3.35 %       3.38 %       4.06 %
Net Interest Income   $ 40,475       $ 38,344       $ 40,301  
Net Interest Margin     3.51 %       3.57 %       4.23 %
                       
Overall Cost of Funds     0.33 %       0.38 %       0.41 %
                       
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.          
                       
Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
       
  Three Months Ended
  March 31, December 31, March 31,
(Dollars in thousands, except per share data)   2022     2021     2021  
       
Interest Income:      
Interest income $ 44,122   $ 42,291   $ 44,262  
Core interest income   44,122     42,291     44,262  
Interest Expense:      
Interest expense   3,647     3,947     3,961  
Core interest expense   3,647     3,947     3,961  
Provision for Loan Losses: (b)      
Provision for loan losses   1,617     1,300     3,359  
Core provision expense   1,617     1,300     3,359  
Other Income:      
Other income   5,896     7,658     4,848  
Losses on former bank premises and equipment   717     78      
(Gains) 1osses on sale of securities   31     (444 )   5  
(Gains) on sale of branch       (492 )    
Core other income   6,644     6,800     4,853  
Other Expense:      
Other expense   33,720     30,098     26,728  
Acquisition-related expenses (2)   (811 )   (266 )   (10 )
Occupancy and bank premises – hurricane repair   (231 )   (57 )   (350 )
Core other expense   32,678     29,775     26,368  
Pre-Tax Income: (a)      
Pre-tax income   11,034     14,604     15,062  
Losses on former bank premises and equipment   717     78      
(Gains) 1osses on sale of securities   31     (444 )   5  
(Gains) on sale of branch       (492 )    
Acquisition-related expenses (2)   811     266     10  
Occupancy and bank premises – hurricane repair   231     57     350  
Core pre-tax income   12,824     14,069     15,427  
Provision for Income Taxes: (1)      
Provision for income taxes   2,303     2,536     2,733  
Tax on losses on former bank premises and equipment   151     16      
Tax on (gains) losses on sale of securities   7     (93 )   1  
Tax on (gains) on sale of branch       (138 )    
Tax on acquisition-related expenses (2)   48     62     2  
Tax on occupancy and bank premises – hurricane repair   49     12     74  
Core provision for income taxes   2,558     2,395     2,810  
Net Income:      
Net income   8,731     12,068     12,329  
Losses on former bank premises and equipment, net of tax   566     62      
(Gains) losses on sale of securities, net of tax   24     (351 )   4  
(Gains) on sale of branch       (354 )    
Acquisition-related expenses (2), net of tax   763     204     8  
Occupancy and bank premises – hurricane repair, net of tax   182     45     276  
Core net income $ 10,266   $ 11,674   $ 12,617  
       
Pre-tax, pre-provision earnings (a+b) $ 12,651   $ 15,904   $ 18,421  
Losses on former bank premises and equipment   717     78      
(Gains) losses on sale of securities   31     (444 )   5  
(Gains) on sale of branch       (492 )    
Acquisition-related expenses (2)   811     266     10  
Occupancy and bank premises – hurricane repair   231     57     350  
Core pre-tax, pre-provision earnings $ 14,441   $ 15,369   $ 18,786  
       
Average Diluted Shares Outstanding   21,162,482     20,462,317     20,738,013  
       
Diluted Earnings Per Share:      
Diluted earnings per share $ 0.41   $ 0.59   $ 0.59  
Losses on former bank premises and equipment, net of tax   0.03     0.00      
(Gains) losses on sale of securities, net of tax   0.00     (0.01 )   0.00  
(Gains) on sale of branch       (0.02 )    
Acquisition-related expenses (2), net of tax   0.04     0.01     0.00  
Occupancy and bank premises – hurricane repair, net of tax   0.01     0.00     0.02  
Core diluted earnings per share $ 0.49   $ 0.57   $ 0.61  
       
Pre-tax, pre-provision profit diluted earnings per share $ 0.60   $ 0.78   $ 0.89  
Losses on former bank premises and equipment   0.03     0.00      
(Gains) losses on sale of securities   0.00     (0.02 )   0.00  
(Gains) on sale of branch       (0.02 )    
Acquisition-related expenses (2)   0.04     0.01     0.00  
Occupancy and bank premises – hurricane repair   0.01     0.00     0.02  
Core pre-tax, pre-provision diluted earnings per share $ 0.68   $ 0.75   $ 0.91  
       
(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.00% for 2022 and 2021. These rates approximated
the marginal tax rates.      
(2) Includes merger and conversion-related expenses and salary and employee benefits.    
       
Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
       
  Three Months Ended
  March 31, December 31, March 31,
(Dollars in thousands, except per share data)   2022     2021     2021  
       
       
Total Quarterly Average Assets $ 4,920,105   $ 4,584,460   $ 4,276,430  
Total Quarterly Average Equity $ 446,003   $ 430,834   $ 415,896  
       
Net Income:      
Net income $ 8,731   $ 12,068   $ 12,329  
Losses on former bank premises and equipment, net of tax   566     62      
(Gains) losses on sale of securities, net of tax   24     (351 )   4  
(Gains) on sale of branch, net of tax       (354 )    
Acquisition-related expenses, net of tax   763     204     8  
Occupancy and bank premises – hurricane repair, net of tax   182     45     276  
Core net income $ 10,266   $ 11,674   $ 12,617  
       
Return on average assets   0.71 %   1.05 %   1.15 %
Core return on average assets   0.83 %   1.02 %   1.18 %
Return on equity   7.83 %   11.20 %   11.86 %
Core return on average equity   9.21 %   10.84 %   12.14 %
       
Interest Income:      
Interest income $ 44,122   $ 42,291   $ 44,262  
Core interest income   44,122     42,291     44,262  
Interest Expense:      
Interest expense   3,647     3,947     3,961  
Core interest expense   3,647     3,947     3,961  
Other Income:      
Other income   5,896     7,658     4,848  
Losses on former bank premises and equipment   717     78      
(Gains) losses on sale of securities   31     (444 )   5  
(Gains) on sale of branch       (492 )    
Core other income   6,644     6,800     4,853  
Other Expense:      
Other expense   33,720     30,098     26,728  
Acquisition-related expenses   (811 )   (266 )   (10 )
Occupancy and bank premises – hurricane repair   (231 )   (57 )   (350 )
Core other expense $ 32,678   $ 29,775   $ 26,368  
       
Efficiency Ratio:      
Other expense (a) $ 33,720   $ 30,098   $ 26,728  
Core other expense (c) $ 32,678   $ 29,775   $ 26,368  
Net interest and other income (1) (b) $ 46,402   $ 45,558   $ 45,154  
Core net interest and other income (1) (d) $ 47,119   $ 45,144   $ 45,154  
Efficiency ratio (a/b)   72.67 %   66.07 %   59.19 %
Core efficiency ratio (c/d)   69.35 %   65.96 %   58.40 %
       
Total Average Interest-Earnings Assets $ 4,612,450   $ 4,299,135   $ 3,811,335  
       
Net Interest Income:      
Net interest income $ 40,475   $ 38,344   $ 40,301  
Loan discount accretion   (920 )   (1,559 )   (3,063 )
Net interest income excluding loan discount accretion $ 39,555   $ 36,785   $ 37,238  
       
Net interest margin (2)   3.51 %   3.57 %   4.23 %
Net interest margin excluding loan discount accretion (2)   3.43 %   3.42 %   3.91 %
Net interest spread   3.35 %   3.38 %   4.06 %
Net interest spread excluding loan discount accretion   3.27 %   3.24 %   3.73 %
       
(1) Excludes gains/losses on sales of securities.      
(2) Calculated utilizing a 30/360 day count convention.      
       
Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
       
       
  March 31, December 31, March 31,
(Dollars in thousands, except per share data)   2022     2021     2021  
       
Total Shareholders’ (Common) Equity:      
Total shareholders’ equity $ 456,837   $ 433,368   $ 416,701  
Goodwill   (89,911 )   (59,894 )   (53,753 )
Core deposit and customer intangible   (15,617 )   (12,203 )   (9,406 )
Total tangible common equity $ 351,309   $ 361,271   $ 353,542  
       
       
Total Assets:      
Total assets $ 5,362,235   $ 4,726,378   $ 4,443,586  
Goodwill   (89,911 )   (59,894 )   (53,753 )
Core deposit and customer intangible   (15,617 )   (12,203 )   (9,406 )
Total tangible assets $ 5,256,707   $ 4,654,281   $ 4,380,427  
       
Common shares outstanding   22,564,607     20,400,349     20,804,753  
       
Book value per common share $ 20.25   $ 21.24   $ 20.03  
Tangible book value per common share $ 15.57   $ 17.71   $ 16.99  
Common equity to total assets   8.52 %   9.17 %   9.38 %
Tangible common equity to tangible assets   6.68 %   7.76 %   8.07 %
       

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