8-K
Business First Bancshares, Inc. (BFST)
UNITED STATES
SECURITIES AND EXCHANGE COMMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): July 29, 2020
BUSINESS FIRST BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
| Louisiana | 333-200112 | 20-5340628 |
|---|---|---|
| (State of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
| 500 Laurel Street , Suite 101<br><br> <br>Baton Rouge, Louisiana | 7080 1 | |
| (Address of principal executive offices) | (Zip code) | |
| Registrant’s telephone number, including area code: **** (225) 248-7600 |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Exchange Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $1.00 per share | BFST | NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☒
| 2.02 | Results of Operations and Financial Condition. |
|---|
On July 29, 2020, Business First Bancshares, Inc. (“Business First”), the parent company of b1BANK, issued a press release announcing financial results for the quarter ended June 30, 2020. The release also announced that the Board of Directors of Business First declared a cash dividend on July 23, 2020, in the amount of $0.10 to the shareholders of record of Business First as of August 15, 2020. The dividend is to be paid on August 31, 2020, or as soon as practicable thereafter. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.
The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
| 7.01 | Regulation FD Disclosure |
|---|
On July 29, 2020, Business First made available the supplemental information prepared for use with the press release.
The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
| 9.01 | Financial Statements and Exhibits . |
|---|---|
| (d) | Exhibits. |
| --- | --- |
| Exhibit No. | Description of Exhibit |
| --- | --- |
| 99.1 | Press Release of Business First Bancshares, Inc., dated July 29, 2020. |
| 99.2 | Business First Bancshares, Inc. Investor Presentation, Q2 2020 Results. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: July 29, 2020
| Business First bancshares, inc. | |
|---|---|
| By: | /s/ David R. Melville, III |
| David R. Melville, III | |
| President and Chief Executive Officer |
ex_195799.htm
Exhibit 99.1
| FOR IMMEDIATE RELEASE | Misty Albrecht |
|---|---|
| July 29, 2020 | b1BANK |
| 225.286.7879 | |
| Misty.Albrecht@b1BANK.com |
BUSINESS FIRST BANCSHARES, INC. , AN NOUNCES FINANCIAL RESULTS FOR Q 2 20 20
Baton Rouge, La. (July 29, 2020) – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended June 30, 2020, including net income of $2.1 million, or $0.11 per diluted share, decreases of $4.8 million and $0.39, respectively, from the quarter ended June 30, 2019. On a non-GAAP basis, core net income for the quarter ended June 30, 2020, which excludes certain income and expenses, was $7.4 million, or $0.41 per diluted share, an increase of $748,000 and decrease of $0.07, respectively, from the quarter ended June 30, 2019. Both net income and diluted earnings per share were adversely impacted for the quarter ended June 30, 2020, by additional provision for loan losses associated with the sustained pressure on the general economy caused by the COVID-19 pandemic and acquisition-related expenses.
“The second quarter was simultaneously the most challenging, and in many ways, the most rewarding period we’ve experienced as a company,” said Jude Melville, president and CEO. “We stood with our clients during an economic crisis, we consummated a transformative merger during a time of market crisis, and we took care of our people in the midst of a health crisis. I could not be prouder of our team. We’ll continue to do our part as our region’s leading community bank as we recover together in the coming months.”
On July 23, 2020, Business First’s board of directors declared a quarterly dividend based upon financial performance for the second quarter in the amount of $0.10 per share, same as the prior quarter, to the common shareholders of record as of August 15, 2020. The dividend will be paid on August 31, 2020, or as soon thereafter as practicable.
Quarterly Highlights
| ● | Successful Acquisition and Conversion of Pedestal Bancshares Inc. Business First acquired Pedestal Bancshares Inc. (Pedestal), with approximately $1.4 billion in assets, $935.8 million in gross loans, and $1.2 billion in deposits, on May 1, 2020. The conversion of data processing was successfully completed during the weekend of May 23, 2020. |
|---|
b1BANK.com
| ● | COVID- 19 Related Matters . Business First proactively assisted, and continues to assist, customers by deferring principal and/or interest payments on approximately 2,600 loans with an outstanding balance of $938.5 million as of June 30, 2020. Approximately $223.0 million of the deferrals were interest-only as of June 30, 2020. Additionally, Business First has funded approximately 2,800 loans with an aggregate outstanding balance of $395.4 million under the Small Business Administration (SBA) Paycheck Protection Program (PPP), of which $86.1 million were acquired in the Pedestal acquisition. Business First also recorded $5.4 million of provision expense, of which a significant portion was associated with the continued impact the COVID-19 pandemic caused on the general economy. |
|---|---|
| ● | Stable Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from 0.57% and 0.59%, respectively, at March 31, 2020, to 0.39% and 0.49% at June 30, 2020. The decreases were attributable to the increased size of the loan portfolio, including SBA PPP loans, and total assets associated with the acquisition of Pedestal on May 1, 2020. |
| --- | --- |
| ● | Net Interest Margin and Spread. Net interest margin and spread were negatively impacted due to the full effect of the federal funds rate cuts of 150 basis points during the month of March and lower-yielding SBA PPP loans, offset by a reduction in cost of funds, increased loan discount, deposit premium, and Federal Home Loan Bank (FHLB) premium accretion, and a higher-yielding loan portfolio due to the Pedestal acquisition, compared to the quarter ended March 31, 2020. Net interest margin and net interest spread were 3.89% and 3.59%, respectively, for the quarter ended June 30, 2020, compared to 3.93% and 3.55% for the quarter ended March 31, 2020. Excluding loan discount accretion, net interest margin and spread were 3.71% and 3.41%, respectively, for the quarter ended June 30, 2020, compared to 3.88% and 3.49% for the quarter ended March 31, 2020. |
| --- | --- |
| ● | Loan Growth. Total loans held for investment at June 30, 2020, were $3.0 billion, an increase of $1.2 billion compared to March 31, 2020. Loan growth was significantly impacted by the acquisition of Pedestal and origination of SBA PPP loans. Net organic loan growth, excluding the Pedestal acquisition and SBA PPP originated loans, was 3.22% annualized for the quarter ended June 30, 2020. |
| --- | --- |
b1BANK.com ****
2
Financial Condition
June 30, 2020, Compared to March 31, 2020
Loans
Total loans held for investment increased by $1.2 billion compared to March 31, 2020. The increase was largely attributable to the $893.3 million in net loans acquired from Pedestal, including $86.1 million of SBA PPP loans, and $309.3 million of SBA PPP loans originated by Business First. Excluding the Pedestal acquisition and SBA PPP originations, net organic loan growth was $20.8 million for the quarter ended June 30, 2020, or 3.22% annualized.
Consistent with the quarter ended March 31, 2020, Business First’s unfunded commitments remained constant throughout the quarter ended June 30, 2020, excluding the increase attributable to the acquisition of Pedestal. Business First has not identified any unusual customer usage of unfunded commitments since the beginning of the COVID 19-panademic in March 2020.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from 0.57% as of March 31, 2020, to 0.39% as of June 30, 2020. Nonperforming assets as a percentage of total assets decreased from 0.59% as of March 31, 2020, to 0.49% as of June 30, 2020. The decreases were attributable to an increase in overall total loans held for investment and total assets from the acquisition of Pedestal during the quarter ended June 30, 2020.
Total Shareholders ’ Equity
Book value per common share was $18.69 at June 30, 2020, compared to $21.58 at March 31, 2020. The decreases were attributable to the initial book value dilution caused by the acquisition of Pedestal during the quarter ended June 30, 2020.
b1BANK.com
3
June 30, 2020, Compared to June 30, 2019
Loans
Total loans held for investment increased by $1.4 billion compared to June 30, 2019, or 82.3%, due primarily to the acquisition of Pedestal and origination of SBA PPP loans during the quarter ended June 30, 2020.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from 0.61% as of June 30, 2019, to 0.39% as of June 30, 2020. Nonperforming assets as a percentage of total assets decreased from 0.58% as of June 30, 2019, to 0.49% as of June 30, 2020. The decreases were attributable to an increase in overall total loans held for investment and total assets from the acquisition of Pedestal during the quarter ended June 30, 2020.
T otal Shareholders ’ Equity
Book value per common share was $18.69 at June 30, 2020, compared to $20.77 at June 30, 2019. The decreases were attributable to the initial book value dilution caused by the acquisition of Pedestal during the quarter ended June 30, 2020.
Results of Operations
Second Quarter 2020 Compared to First Quarter 2020
Net Income and Diluted Earnings Per Share
For the quarter ended June 30, 2020, net income was $2.1 million, or $0.11 per diluted share, compared to net income of $4.5 million, or $0.34 per diluted share, for the quarter ended March 31, 2020. The decreases were largely attributable to the increase in the provision for loan losses, due to the COVID-19 pandemic’s sustained impact on the general economy, and increase in acquisition-related expenses, offset by increases in investment income from Small Business Investment Companies (SBICs) and interest income from SBA PPP loans.
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2020, was $7.4 million, or $0.41 per diluted share, compared to core net income of $5.0 million, or $0.37 per diluted share, for the quarter ended March 31, 2020. Notable events impacting earnings for the quarter ended June 30, 2020, included the incurrence of $6.6 million in acquisition-related expenses, compared to the incurrence of $1.2 million in acquisition-related expenses for the quarter ended March 31, 2020, and $530,000 reduction in income tax expense due to stock option exercises.
b1BANK.com
4
Interest Income
For the quarter ended June 30, 2020, net interest income totaled $30.9 million and net interest margin and net interest spread were 3.89% and 3.59%, respectively, compared to $20.2 million, 3.93% and 3.55% for the quarter ended March 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.61% for the quarter ended June 30, 2020, compared to 5.55% for the quarter ended March 31, 2020. The average yield on total interest-earning assets was 4.65% for the quarter ended June 30, 2020, compared to 5.06% for the quarter ended March 31, 2020.
Net interest margin and net interest spread were positively impacted for the quarter ended June 30, 2020, by additional loan discount, deposit premium, and FHLB premium accretion, an overall higher-yielding loan portfolio from the Pedestal acquisition, and reduction in the overall cost of funds (which includes noninterest-bearing deposits), offset by the full impact of the federal funds rate cuts of 150 basis points during March 2020. The average loan yield (excluding SBA PPP loans) was also impacted by the same factors, excluding the impact of deposit and FHLB premium accretion and cost of funds.
The average yield on total interest-earning assets was negatively impacted for the quarter ended June 30, 2020, due to lower-yielding SBA PPP loans which were originated during the quarter.
Net interest margin and net interest spread (excluding loan discount accretion of $1.5 million) were 3.71% and 3.41%, respectively, for the quarter ended June 3o, 2020, compared to 3.88% and 3.49% (excluding loan discount accretion of $290,000) for the quarter ended March 31, 2020.
Interest Expense
For the quarter ended June 30, 2020, overall cost of funds (which includes noninterest-bearing deposits) decreased by 43 basis points, from 1.20% to 0.77%, compared to the quarter ended March 31, 2020. The decrease in cost of funds was partially attributable to the accretion of deposit premium and FHLB premium associated with the Pedestal acquisition ($551,000), but largely attributable to an overall reduction in interest rates on deposit offerings and the lower-yielding deposit portfolio acquired from Pedestal.
b1BANK.com
5
Other Income
For the quarter ended June 30, 2020, other income was impacted by an additional $1.2 million in SBIC investment income and additional increases in other categories largely attributable to the Pedestal acquisition, compared to the quarter ended March 31, 2020.
Other Expense
For the quarter ended June 30, 2020, the increases were largely attributable to the Pedestal acquisition, compared to the quarter ended March 31, 2020.
P rovision for Loan Loss es
During the quarter ended June 30, 2020, Business First recorded a provision for loan losses of $5.4 million, compared to $1.4 million for the quarter ended March 31, 2020. The reserve for the quarter ended June 30, 2020, was impacted significantly by the sustained impact on the general economy of the COVID-19 pandemic. The increase related to the COVID-19 pandemic was recorded through a qualitative adjustment.
Return on Assets and Equity
Return on average assets and equity, each on an annualized basis, were 0.23% and 2.35%, respectively, for the quarter ended June 30, 2020, compared to 0.80% and 6.31%, respectively, for the quarter ended March 31, 2020. Both returns were significantly impacted by the provision for loan loss and acquisition-related expenses recorded for the quarter ended June 30, 2020.
Second Quarter 2020 Compared to Second Quarter 2019
Net Income and Diluted Earnings Per Share
For the quarter ended June 30, 2020, net income was $2.1 million, or $0.11 per diluted share, compared to net income of $6.8 million, or $0.50 per diluted share, for the quarter ended June 30, 2020. The decreases in net income and diluted earnings per share were largely attributable to increased provision for loan losses and additional expenses associated with the acquisition of Pedestal on May 1, 2020, offset by increases in net interest income and other income related to the acquisition of Pedestal for the quarter ended June 30, 2020.
b1BANK.com
6
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2020, was $7.4 million, or $0.41 per diluted share, compared to core net income of $6.6 million, or $0.48 per diluted share, for the quarter ended June 30, 2019. Notable events impacting earnings for the quarter ended June 30, 2020, included the incurrence of $6.6 million in acquisition-related expenses, compared to the incurrence of $436,000 in acquisition-related expenses and a $593,000 gain associated with the sale of a banking center for the quarter ended June 30, 2019.
Interest Income
For the quarter ended June 30, 2020, net interest income totaled $30.9 million and net interest margin and net interest spread were 3.89% and 3.59%, respectively, compared to $20.2 million, 4.19% and 3.75% for the quarter ended June 30, 2019. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.61% for the quarter ended June 30, 2020, compared to 5.96% for the quarter ended June 30, 2019. The average yield on total interest-earning assets was 4.65% for the quarter ended June 30, 2020, compared to 5.37% for the quarter ended June 30, 2019.
Average loan yield (excluding SBA PPP loans), average yield on total interest-earning assets, net interest margin, and net interest spread were impacted for the quarter ended June 30, 2020, by the federal funds rate cuts of 225 basis points which occurred throughout the second half of 2019 and first quarter of 2020. The average yield on total interest-earning assets was also impacted by the lower-yielding SBA PPP loans originated during the quarter ended June 30, 2020.
Net interest margin and net interest spread (excluding loan discount accretion of $1.5 million) were 3.71% and 3.41%, respectively, for the quarter ended June 30, 2020, compared to 4.02% and 3.58% (excluding loan discount accretion of $826,000) for the quarter ended June 30, 2019.
Interest Expense
For the quarter ended June 30, 2020, overall cost of funds (which includes noninterest-bearing deposits) decreased by 49 basis point, from 1.26% to 0.77%, compared to the quarter ended June 30, 2019. The decrease in cost of funds was partially attributable to the accretion of deposit and FHLB premiums associated with the Pedestal acquisition ($551,000), but largely attributable to an overall reduction in interest rates on deposit offerings and the lower-yielding deposit portfolio acquired from Pedestal.
b1BANK.com
7
Other Income
For the quarter ended June 30, 2020, the increase was largely attributable to the acquisition of Pedestal, partially offset by the $593,000 gain on sale of a banking center during the quarter ended June 30, 2019.
Other Expense
For the quarter ended June 30, 2020, the increase was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020.
Provision for Loan Loss es
During the quarter ended June 30, 2020, Business First recorded a provision for loan losses of $5.4 million compared to $1.3 million for the quarter ended June 30, 2019. The reserve for the quarter ended June 30, 2020, was impacted significantly by the sustained impact on the general economy of the COVID-19 pandemic.
Return on Assets and Equity
Return on average assets and return on average equity, each on an annualized basis, were 0.23% and 2.35%, respectively, for the quarter ended June 30, 2020, from 1.30% and 10.13%, respectively, for the quarter ended June 30, 2019. Both returns were significantly impacted by the provision for loan loss and acquisition-related expenses recorded for the quarter ended June 30, 2020, in addition to a lower net interest margin for the quarter ended June 30, 2020.
About Business First Bancshares, Inc.
Business First Bancshares, Inc., through its banking subsidiary b1BANK, formerly known as Business First Bank, operates 48 banking centers in markets across Louisiana and in the Dallas, Texas area. b1BANK provides commercial and personal banking, treasury management and wealth solutions services to small to midsize businesses and their owners and employees. Visit www.b1BANK.com for more information. Business First’s common stock is traded on the NASDAQ Global Select Market under the symbol “BFST.”
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures (e.g., referenced as “core”) intended to supplement, not substitute for, comparable GAAP measures. These measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, impaired loan sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.
b1BANK.com
8
Special Note Regarding Forward-Looking Statements
Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. Actual results will also be significantly impacted by the effects of the ongoing COVID-19 pandemic, including, among other effects: the impact of the public health crisis; the extent and duration of closures of businesses, including our branches, vendors and customers; the operation of financial markets; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; the adequacy of our allowance for loan losses in relation to potential losses in our loan portfolio; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.
Additional Information
For additional information on Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (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.
b1BANK.com
9
No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of the Company. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
b1BANK.com
10
Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
| June 30, | March 31, | June 30, | |||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 2020 | 2020 | 2019 | ||||||
| Balance Sheet Ratios | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Loans (HFI) to Deposits | 92.12 | % | 98.26 | % | 96.46 | % | |||
| Shareholders' Equity to Assets Ratio | 9.75 | % | 12.33 | % | 12.88 | % | |||
| Loans Receivable Held for Investment | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Commercial (1) | $ | 1,026,596 | $ | 431,992 | $ | 411,256 | |||
| Real Estate: | |||||||||
| Construction and Land | 333,675 | 260,836 | 227,102 | ||||||
| Farmland | 57,498 | 53,900 | 47,245 | ||||||
| 1-4 Family Residential | 495,827 | 295,876 | 278,610 | ||||||
| Multi-Family Residential | 59,213 | 32,859 | 38,698 | ||||||
| Nonfarm Nonresidential | 914,601 | 623,114 | 561,149 | ||||||
| Total Real Estate | 1,860,814 | 1,266,585 | 1,152,804 | ||||||
| Consumer (1) | 107,402 | 72,803 | 78,513 | ||||||
| Total Loans | $ | 2,994,812 | $ | 1,771,380 | $ | 1,642,573 | |||
| Allowance for Loan Losses | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Balance, Beginning of Period | $ | 13,319 | $ | 12,124 | $ | 11,818 | |||
| Charge-offs – Quarterly | (98 | ) | (194 | ) | (1,565 | ) | |||
| Recoveries – Quarterly | 51 | 22 | 48 | ||||||
| Provision for Loan Losses – Quarterly | 5,443 | 1,367 | 1,302 | ||||||
| Balance, End of Period | $ | 18,715 | $ | 13,319 | $ | 11,603 | |||
| Allowance for Loan Losses to Total Loans (HFI) | 0.62 | % | 0.75 | % | 0.71 | % | |||
| Net Charge-offs (Recoveries) to Average Total Loans | 0.00 | % | 0.01 | % | 0.09 | % | |||
| Remaining Loan Purchase Discount | $ | 44,302 | $ | 3,246 | $ | 3,536 | |||
| Nonperforming Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Nonperforming Loans: | |||||||||
| Nonaccrual Loans (2) | $ | 11,433 | $ | 9,301 | $ | 9,363 | |||
| Loans Past Due 90 Days or More (2) | 317 | 834 | 727 | ||||||
| Total Nonperforming Loans | 11,750 | 10,135 | 10,090 | ||||||
| Other Nonperforming Assets: | |||||||||
| Other Real Estate Owned | 7,642 | 3,281 | 2,324 | ||||||
| Other Nonperforming Assets | 179 | 11 | 6 | ||||||
| Total Other Nonperforming Assets | 7,821 | 3,292 | 2,330 | ||||||
| Total Nonperforming Assets | $ | 19,571 | $ | 13,427 | $ | 12,420 | |||
| Nonperforming Loans to Total Loans (HFI) | 0.39 | % | 0.57 | % | 0.61 | % | |||
| Nonperforming Assets to Total Assets | 0.49 | % | 0.59 | % | 0.58 | % |
(1) Small Business Adminstration "SBA" Paycheck Protection Program "PPP" loans accounted for $389.9 million and $5.5 million of the Commercial and Consumer portfolios, respectively, as of June 30, 2020.
(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.
b1BANK.com
11
Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||
| (Dollars in thousands, except per share data) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||
| Per Share Data | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Basic Earnings per Common Share | $ | 0.11 | $ | 0.34 | $ | 0.51 | $ | 0.42 | $ | 0.94 | |||||
| Diluted Earnings per Common Share | 0.11 | 0.34 | 0.50 | 0.42 | 0.91 | ||||||||||
| Dividends per Common Share | 0.10 | 0.10 | 0.10 | 0.20 | 0.18 | ||||||||||
| Book Value per Common Share | 18.69 | 21.58 | 20.77 | 18.69 | 20.77 | ||||||||||
| Average Common Shares Outstanding | 18,108,068 | 13,313,154 | 13,361,482 | 15,710,611 | 13,324,725 | ||||||||||
| Average Diluted Shares Outstanding | 18,121,958 | 13,367,276 | 13,740,937 | 15,776,376 | 13,704,180 | ||||||||||
| End of Period Common Shares Outstanding | 20,667,237 | 13,067,987 | 13,361,482 | 20,667,237 | 13,361,482 | ||||||||||
| Annualized Performance Ratios | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Return on Average Assets | 0.23 | % | 0.80 | % | 1.30 | % | 0.46 | % | 1.20 | % | |||||
| Return on Average Equity | 2.35 | % | 6.31 | % | 10.13 | % | 4.13 | % | 9.38 | % | |||||
| Net Interest Margin | 3.89 | % | 3.93 | % | 4.19 | % | 3.91 | % | 4.11 | % | |||||
| Net Interest Spread | 3.59 | % | 3.55 | % | 3.75 | % | 3.57 | % | 3.69 | % | |||||
| Efficiency Ratio (1) | 77.40 | % | 72.39 | % | 59.85 | % | 75.44 | % | 61.96 | % | |||||
| Total Quarterly/Year-to-Date Average Assets | $ | 3,496,074 | $ | 2,244,584 | $ | 2,102,692 | $ | 2,870,329 | $ | 2,089,188 | |||||
| Total Quarterly/Year-to-Date Average Equity | 349,634 | 285,338 | $ | 270,262 | 317,486 | 266,493 | |||||||||
| Other Expenses | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and Employee Benefits | $ | 17,621 | $ | 9,435 | $ | 8,756 | $ | 27,056 | $ | 17,308 | |||||
| Occupancy and Bank Premises | 1,370 | 1,060 | 1,079 | 2,430 | 2,182 | ||||||||||
| Depreciation and Amortization | 1,073 | 601 | 633 | 1,674 | 1,261 | ||||||||||
| Data Processing | 1,055 | 652 | 576 | 1,707 | 1,192 | ||||||||||
| FDIC Assessment Fees | 272 | 147 | 248 | 419 | 398 | ||||||||||
| Legal and Other Professional Fees | 543 | 394 | 353 | 937 | 671 | ||||||||||
| Advertising and Promotions | 334 | 306 | 279 | 640 | 606 | ||||||||||
| Utilities and Communications | 645 | 317 | 323 | 962 | 621 | ||||||||||
| Ad Valorem Shares Tax | 450 | 375 | 345 | 825 | 690 | ||||||||||
| Directors' Fees | 100 | 74 | 125 | 174 | 330 | ||||||||||
| Other Real Estate Owned Expenses and Write-Downs | 51 | 253 | 72 | 304 | 99 | ||||||||||
| Merger and Conversion-Related Expenses | 1,726 | 1,148 | 235 | 2,874 | (19 | ) | |||||||||
| Other | 2,557 | 1,881 | 1,553 | 4,438 | 3,028 | ||||||||||
| Total Other Expenses | $ | 27,797 | $ | 16,643 | $ | 14,577 | $ | 44,440 | $ | 28,367 | |||||
| Other Income | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Service Charges on Deposit Accounts | $ | 1,163 | $ | 931 | $ | 1,034 | $ | 2,094 | $ | 1,972 | |||||
| Gain on Sales of Securities | - | 25 | 58 | 25 | 58 | ||||||||||
| Debit card and ATM Fee Income | 959 | 407 | 492 | 1,366 | 937 | ||||||||||
| Bank-Owned Life Insurance Income | 255 | 197 | 174 | 452 | 342 | ||||||||||
| Gain on Sales of Loans | 7 | 177 | 91 | 184 | 91 | ||||||||||
| Mortgage Origination Income | 126 | 115 | 98 | 241 | 188 | ||||||||||
| Brokerage Commission | 236 | 20 | 9 | 256 | 43 | ||||||||||
| Correspondent Bank Income | 32 | 109 | 17 | 141 | 225 | ||||||||||
| Rental Income | 15 | 31 | 165 | 46 | 329 | ||||||||||
| Gain on Sale of Banking Center | - | - | 593 | - | 593 | ||||||||||
| Gain (loss) on Sales of Other Real Estate Owned | (19 | ) | 151 | 5 | 132 | (51 | ) | ||||||||
| Pass-through Income from SBIC Partnerships | 1,624 | 380 | 1,266 | 2,004 | 1,266 | ||||||||||
| Other | 598 | 261 | 217 | 859 | 537 | ||||||||||
| Total Other Income | $ | 4,996 | $ | 2,804 | $ | 4,219 | $ | 7,800 | $ | 6,530 |
(1) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities.
b1BANK.com
12
Business First Bancshares, Inc.
Consolidated Balance Sheets
(Unaudited)
| June 30, | March 31, | June 30, | |||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 2020 | 2020 | 2019 | ||||||
| Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Cash and Due From Banks | $ | 116,021 | $ | 80,109 | $ | 64,043 | |||
| Federal Funds Sold | 40,329 | 29,135 | 20,809 | ||||||
| Securities Available for Sale, at Fair Values | 583,118 | 275,115 | 294,981 | ||||||
| Mortgage Loans Held for Sale | 456 | 868 | 443 | ||||||
| Loans and Lease Receivable | 2,994,812 | 1,771,380 | 1,642,573 | ||||||
| Allowance for Loan Losses | (18,715 | ) | (13,319 | ) | (11,603 | ) | |||
| Net Loans and Lease Receivable | 2,976,097 | 1,758,061 | 1,630,970 | ||||||
| Premises and Equipment, Net | 63,959 | 29,656 | 27,577 | ||||||
| Accrued Interest Receivable | 33,844 | 7,724 | 7,957 | ||||||
| Other Equity Securities | 18,681 | 11,721 | 11,717 | ||||||
| Other Real Estate Owned | 7,642 | 3,281 | 2,324 | ||||||
| Cash Value of Life Insurance | 44,542 | 32,765 | 32,223 | ||||||
| Deferred Taxes, Net | 6,858 | 1,800 | 2,527 | ||||||
| Goodwill | 53,649 | 48,495 | 48,503 | ||||||
| Core Deposit Intangible | 10,389 | 6,471 | 7,139 | ||||||
| Other Assets | 5,553 | 2,461 | 2,395 | ||||||
| Total Assets | $ | 3,961,138 | $ | 2,287,662 | $ | 2,153,608 | |||
| Liabilities | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Deposits: | |||||||||
| Noninterest-Bearing | $ | 985,537 | $ | 417,534 | $ | 394,848 | |||
| Interest-Bearing | 2,265,485 | 1,385,274 | 1,308,054 | ||||||
| Total Deposits | 3,251,022 | 1,802,808 | 1,702,902 | ||||||
| Securities Sold Under Agreements to Repurchase | 25,391 | 14,728 | 16,096 | ||||||
| Short-Term Borrowings | 6,145 | 5,000 | - | ||||||
| Long-Term Borrowings | 7,797 | - | - | ||||||
| Payroll Protection Program Liquidity Facility | 107,076 | - | - | ||||||
| Subordinated Debt | 25,000 | 25,000 | 25,000 | ||||||
| Trust Preferred Securities | 5,000 | - | - | ||||||
| Federal Home Loan Bank Borrowings | 118,177 | 138,000 | 108,000 | ||||||
| Accrued Interest Payable | 3,920 | 1,573 | 1,924 | ||||||
| Other Liabilities | 25,274 | 18,523 | 22,217 | ||||||
| Total Liabilities | 3,574,802 | 2,005,632 | 1,876,139 | ||||||
| Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Common Stock | 20,667 | 13,068 | 13,361 | ||||||
| Additional Paid-In Capital | 297,606 | 206,966 | 213,823 | ||||||
| Retained Earnings | 59,850 | 59,859 | 48,087 | ||||||
| Accumulated Other Comprehensive Income | 8,213 | 2,137 | 2,198 | ||||||
| Total Shareholders' Equity | 386,336 | 282,030 | 277,469 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 3,961,138 | $ | 2,287,662 | $ | 2,153,608 |
b1BANK.com
13
Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||
| (Dollars in thousands) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest and Fees on Loans | $ | 34,636 | $ | 24,143 | $ | 23,870 | $ | 58,779 | $ | 46,293 | |
| Interest and Dividends on Securities | 2,175 | 1,731 | 1,829 | 3,906 | 3,703 | ||||||
| Interest on Federal Funds Sold and Due From Banks | 80 | 142 | 197 | 222 | 487 | ||||||
| Total Interest Income | 36,891 | 26,016 | 25,896 | 62,907 | 50,483 | ||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest on Deposits | 4,795 | 4,686 | 5,038 | 9,481 | 9,795 | ||||||
| Interest on Borrowings | 1,177 | 1,119 | 665 | 2,296 | 1,375 | ||||||
| Total Interest Expense | 5,972 | 5,805 | 5,703 | 11,777 | 11,170 | ||||||
| Net Interest Income | 30,919 | 20,211 | 20,193 | 51,130 | 39,313 | ||||||
| Provision for Loan Losses | 5,443 | 1,367 | 1,302 | 6,810 | 1,935 | ||||||
| Net Interest Income After Provision for Loan Losses | 25,476 | 18,844 | 18,891 | 44,320 | 37,378 | ||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Service Charges on Deposit Accounts | 1,163 | 931 | 1,034 | 2,094 | 1,972 | ||||||
| Gain on Sales of Securities | - | 25 | 58 | 25 | 58 | ||||||
| Other Income | 3,833 | 1,848 | 3,127 | 5,681 | 4,500 | ||||||
| Total Other Income | 4,996 | 2,804 | 4,219 | 7,800 | 6,530 | ||||||
| Other Expenses: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and Employee Benefits | 17,621 | 9,435 | 8,756 | 27,056 | 17,308 | ||||||
| Occupancy and Equipment Expense | 2,888 | 1,891 | 1,884 | 4,779 | 3,778 | ||||||
| Merger and Conversion-Related Expense | 1,726 | 1,148 | 235 | 2,874 | (19 | ) | |||||
| Other Expenses | 5,562 | 4,169 | 3,702 | 9,731 | 7,300 | ||||||
| Total Other Expenses | 27,797 | 16,643 | 14,577 | 44,440 | 28,367 | ||||||
| Income Before Income Taxes | 2,675 | 5,005 | 8,533 | 7,680 | 15,541 | ||||||
| Provision for Income Taxes | 623 | 506 | 1,690 | 1,129 | 3,039 | ||||||
| Net Income | $ | 2,052 | $ | 4,499 | $ | 6,843 | $ | 6,551 | $ | 12,502 |
b1BANK.com
14
Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Three Months Ended | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, 2020 | March 31, 2020 | June 30, 2019 | ||||||||||||||||||||||
| 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) | $ | 2,304,438 | $ | 32,306 | 5.61 | % | $ | 1,740,189 | $ | 24,143 | 5.55 | % | $ | 1,602,087 | $ | 23,870 | 5.96 | % | ||||||
| SBA PPP Loans | 321,127 | 2,330 | 2.90 | % | - | $ | - | 0.00 | % | - | - | 0.00 | % | |||||||||||
| Securities Available for Sale | 481,422 | 2,175 | 1.81 | % | 286,660 | 1,731 | 2.42 | % | 303,232 | 1,829 | 2.41 | % | ||||||||||||
| Interest-Bearing Deposit in Other Banks | 69,169 | 80 | 0.46 | % | 28,754 | 142 | 1.98 | % | 23,716 | 197 | 3.32 | % | ||||||||||||
| Total Interest-Earning Assets | 3,176,156 | 36,891 | 4.65 | % | 2,055,603 | 26,016 | 5.06 | % | 1,929,035 | 25,896 | 5.37 | % | ||||||||||||
| Allowance for Loan Losses | (13,606 | ) | (12,203 | ) | (11,702 | ) | ||||||||||||||||||
| Noninterest-Earning Assets | 333,524 | 201,184 | 185,359 | |||||||||||||||||||||
| Total Assets | $ | 3,496,074 | $ | 36,891 | $ | 2,244,584 | $ | 26,016 | $ | 2,102,692 | $ | 25,896 | ||||||||||||
| Liabilities and Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||
| Interest-Bearing Deposits | $ | 1,994,680 | $ | 4,795 | 0.96 | % | $ | 1,342,213 | $ | 4,686 | 1.40 | % | $ | 1,335,630 | $ | 5,038 | 1.51 | % | ||||||
| Subordinated Debt | 25,000 | 422 | 6.75 | % | 25,000 | 422 | 6.75 | % | 25,000 | 429 | 6.86 | % | ||||||||||||
| Advances from Federal Home Loan Bank ("FHLB") | 129,441 | 526 | 1.63 | % | 98,323 | 497 | 2.02 | % | 36,856 | 224 | 2.43 | % | ||||||||||||
| Payroll Protection Program Liquidity Facility ("PPPLF") | 76,902 | 72 | 0.37 | % | - | - | 0.00 | % | - | - | 0.00 | % | ||||||||||||
| Other Borrowings | 36,308 | 157 | 1.73 | % | 67,125 | 200 | 1.19 | % | 14,390 | 12 | 0.33 | % | ||||||||||||
| Total Interest-Bearing Liabilities | 2,262,331 | 5,972 | 1.06 | % | 1,532,661 | 5,805 | 1.52 | % | 1,411,876 | 5,703 | 1.62 | % | ||||||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||||||||||
| Noninterest-Bearing Deposits | $ | 852,608 | $ | 406,035 | $ | 396,793 | ||||||||||||||||||
| Other Liabilities | 31,501 | 20,550 | 23,761 | |||||||||||||||||||||
| Total Noninterest-Bearing Liabilities | 884,109 | 426,585 | 420,554 | |||||||||||||||||||||
| Shareholders' Equity | 349,634 | 285,338 | 270,262 | |||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 3,496,074 | $ | 2,244,584 | $ | 2,102,692 | ||||||||||||||||||
| Net Interest Spread | 3.59 | % | 3.55 | % | 3.75 | % | ||||||||||||||||||
| Net Interest Income | $ | 30,919 | $ | 20,211 | $ | 20,193 | ||||||||||||||||||
| Net Interest Margin | 3.89 | % | 3.93 | % | 4.19 | % | ||||||||||||||||||
| Overall Cost of Funds | 0.77 | % | 1.20 | % | 1.26 | % |
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.
b1BANK.com
15
Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Six Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, 2020 | June 30, 2019 | |||||||||||||||
| Average | Average | |||||||||||||||
| Outstanding | Interest Earned / | Average | Outstanding | Interest Earned / | Average | |||||||||||
| (Dollars in thousands) | Balance | Interest Paid | Yield / Rate | Balance | Interest Paid | Yield / Rate | ||||||||||
| Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest-Earning Assets: | ||||||||||||||||
| Total Loans (Excluding SBA PPP) | $ | 2,022,313 | $ | 56,449 | 5.58 | % | $ | 1,575,988 | $ | 46,293 | 5.87 | % | ||||
| SBA PPP Loans | 160,564 | 2,330 | 2.90 | % | - | - | 0.00 | % | ||||||||
| Securities Available for Sale | 384,041 | 3,906 | 2.03 | % | 306,501 | 3,703 | 2.42 | % | ||||||||
| Interest-Bearing Deposit in Other Banks | 48,962 | 222 | 0.91 | % | 31,897 | 487 | 3.05 | % | ||||||||
| Total Interest-Earning Assets | 2,615,879 | 62,907 | 4.81 | % | 1,914,386 | 50,483 | 5.27 | % | ||||||||
| Allowance for Loan Losses | (12,905 | ) | (11,546 | ) | ||||||||||||
| Noninterest-Earning Assets | 267,355 | 186,348 | ||||||||||||||
| Total Assets | $ | 2,870,329 | $ | 62,907 | $ | 2,089,188 | $ | 50,483 | ||||||||
| Liabilities and Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest-Bearing Liabilities: | ||||||||||||||||
| Interest-Bearing Deposits | $ | 1,668,446 | $ | 9,481 | 1.14 | % | $ | 1,335,522 | $ | 9,795 | 1.47 | % | ||||
| Subordinated Debt | 25,000 | 844 | 6.75 | % | 25,000 | 845 | 6.76 | % | ||||||||
| Advances from Federal Home Loan Bank ("FHLB") | 113,882 | 1,023 | 1.80 | % | 37,191 | 505 | 2.72 | % | ||||||||
| Payroll Protection Program Liquidity Facility ("PPPLF") | 38,451 | 72 | 0.37 | % | - | - | 0.00 | % | ||||||||
| Other Borrowings | 51,717 | 357 | 1.38 | % | 13,436 | 25 | 0.37 | % | ||||||||
| Total Interest-Bearing Liabilities | 1,897,496 | 11,777 | 1.24 | % | 1,411,149 | 11,170 | 1.58 | % | ||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||
| Noninterest-Bearing Deposits | 629,321 | 395,304 | ||||||||||||||
| Other Liabilities | 26,026 | 16,242 | ||||||||||||||
| Total Noninterest-Bearing Liabilities | 655,347 | 411,546 | ||||||||||||||
| Shareholders' Equity | 317,486 | 266,493 | ||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 2,870,329 | $ | 2,089,188 | ||||||||||||
| Net Interest Spread | 3.57 | % | 3.69 | % | ||||||||||||
| Net Interest Income | $ | 51,130 | $ | 39,313 | ||||||||||||
| Net Interest Margin | 3.91 | % | 4.11 | % | ||||||||||||
| Overall Cost of Funds | 0.93 | % | 1.24 | % |
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.
b1BANK.com
16
Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||
| (Dollars in thousands, except per share data) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest income | $ | 36,891 | $ | 26,016 | $ | 25,896 | $ | 62,907 | $ | 50,483 | |||||
| Core interest income | 36,891 | 26,016 | 25,896 | 62,907 | 50,483 | ||||||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest expense | 5,972 | 5,805 | 5,703 | 11,777 | 11,170 | ||||||||||
| Core interest expense | 5,972 | 5,805 | 5,703 | 11,777 | 11,170 | ||||||||||
| Provision for Loan Losses: (b) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Provision for loan losses | 5,443 | 1,367 | 1,302 | 6,810 | 1,935 | ||||||||||
| Core provision expense | 5,443 | 1,367 | 1,302 | 6,810 | 1,935 | ||||||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other income | 4,996 | 2,804 | 4,219 | 7,800 | 6,530 | ||||||||||
| Sale of impaired credit | - | - | (91 | ) | - | (91 | ) | ||||||||
| (Gains) losses on former bank premises and equipment | - | (126 | ) | - | (126 | ) | - | ||||||||
| (Gains) on sale of securities | - | (25 | ) | (58 | ) | (25 | ) | (58 | ) | ||||||
| (Gains) on sale of banking center | - | - | (593 | ) | - | (593 | ) | ||||||||
| Core other income | 4,996 | 2,653 | 3,477 | 7,649 | 5,788 | ||||||||||
| Other Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense | 27,797 | 16,643 | 14,577 | 44,440 | 28,367 | ||||||||||
| Acquisition-related expenses (2) | (6,573 | ) | (1,212 | ) | (436 | ) | (7,785 | ) | (386 | ) | |||||
| Stock option exercises - excess taxes | - | (71 | ) | - | (71 | ) | - | ||||||||
| Core other expense | 21,224 | 15,360 | 14,141 | 36,584 | 27,981 | ||||||||||
| Pre-Tax Income: (a) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Pre-tax income | 2,675 | 5,005 | 8,533 | 7,680 | 15,541 | ||||||||||
| Sale of impaired credit | - | - | (91 | ) | - | (91 | ) | ||||||||
| (Gains) losses on former bank premises and equipment | - | (126 | ) | - | (126 | ) | - | ||||||||
| (Gains) on sale of securities | - | (25 | ) | (58 | ) | (25 | ) | (58 | ) | ||||||
| (Gains) on sale of banking center | - | - | (593 | ) | - | (593 | ) | ||||||||
| Acquisition-related expenses (2) | 6,573 | 1,212 | 436 | 7,785 | 386 | ||||||||||
| Stock option exercises - excess taxes | - | 71 | - | 71 | - | ||||||||||
| Core pre-tax income | 9,248 | 6,137 | 8,227 | 15,385 | 15,185 | ||||||||||
| Provision for Income Taxes: (1) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Provision for income taxes | 623 | 506 | 1,690 | 1,129 | 3,039 | ||||||||||
| Tax on sale of impaired credit | - | - | (19 | ) | - | (19 | ) | ||||||||
| Tax on (gains) on former bank premises and equipment | - | (26 | ) | - | (26 | ) | - | ||||||||
| Tax on (gains) on sale of securities | - | (5 | ) | (12 | ) | (5 | ) | (12 | ) | ||||||
| Tax on sale of banking center | - | - | (125 | ) | - | (125 | ) | ||||||||
| Tax on acquisition-related expenses (2) | 1,275 | 91 | 91 | 1,366 | 75 | ||||||||||
| Tax on stock option exercises | - | 601 | - | 601 | - | ||||||||||
| Core provision for income taxes | 1,898 | 1,167 | 1,625 | 3,065 | 2,958 | ||||||||||
| Net Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net income | 2,052 | 4,499 | 6,843 | 6,551 | 12,502 | ||||||||||
| Sale of impaired credit, net of tax | - | - | (72 | ) | - | (72 | ) | ||||||||
| (Gains) losses on former bank premises and equipment , net of tax | - | (100 | ) | - | (100 | ) | - | ||||||||
| (Gains) on sale of securities, net of tax | - | (20 | ) | (46 | ) | (20 | ) | (46 | ) | ||||||
| (Gains) on sale of banking center, net of tax | - | - | (468 | ) | - | (468 | ) | ||||||||
| Acquisition-related expenses (2), net of tax | 5,298 | 1,121 | 345 | 6,419 | 311 | ||||||||||
| Stock option exercises, net of tax | - | (530 | ) | - | (530 | ) | - | ||||||||
| Core net income | $ | 7,350 | $ | 4,970 | $ | 6,602 | $ | 12,320 | $ | 12,227 | |||||
| Pre-tax, pre-provision earnings (a+b) | $ | 8,118 | $ | 6,372 | $ | 9,835 | $ | 14,490 | $ | 17,476 | |||||
| Sale of impaired credit | - | - | (91 | ) | - | (91 | ) | ||||||||
| (Gains) losses on former bank premises and equipment | - | (126 | ) | - | (126 | ) | - | ||||||||
| (Gains) on sale of securities | - | (25 | ) | (58 | ) | (25 | ) | (58 | ) | ||||||
| (Gains) on sale of banking center | - | - | (593 | ) | - | (593 | ) | ||||||||
| Acquisition-related expenses (2) | 6,573 | 1,212 | 436 | 7,785 | 386 | ||||||||||
| Stock option exercises | - | 71 | - | 71 | - | ||||||||||
| Core pre-tax, pre-provision earnings | $ | 14,691 | $ | 7,504 | $ | 9,529 | $ | 22,195 | $ | 17,120 | |||||
| Average Diluted Shares Outstanding | 18,121,958 | 13,367,276 | 13,740,937 | 15,776,376 | 13,704,180 | ||||||||||
| Diluted Earnings Per Share: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Diluted earnings per share | $ | 0.11 | $ | 0.34 | $ | 0.50 | $ | 0.42 | $ | 0.91 | |||||
| Sale of impaired credit, net of tax | - | - | (0.01 | ) | - | (0.01 | ) | ||||||||
| (Gains) losses on former bank premises and equipment , net of tax | - | (0.01 | ) | - | (0.01 | ) | - | ||||||||
| (Gains) on sale of securities, net of tax | - | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||
| (Gains) on sale of banking center | - | - | (0.04 | ) | - | (0.03 | ) | ||||||||
| Acquisition-related expenses (2), net of tax | 0.30 | 0.08 | 0.03 | 0.40 | 0.02 | ||||||||||
| Stock option exercises | - | (0.04 | ) | - | (0.03 | ) | - | ||||||||
| Core diluted earnings per share | $ | 0.41 | $ | 0.37 | $ | 0.48 | $ | 0.78 | $ | 0.89 | |||||
| Pre-tax, pre-provision profit diluted earnings per share | $ | 0.45 | $ | 0.48 | $ | 0.72 | $ | 0.92 | $ | 1.28 | |||||
| Sale of impaired credit | - | - | (0.01 | ) | - | (0.01 | ) | ||||||||
| (Gains) losses on former bank premises and equipment | - | (0.01 | ) | - | (0.01 | ) | - | ||||||||
| (Gains) on sale of securities | - | (0.00 | ) | (0.00 | ) | (0.00 | ) | (0.00 | ) | ||||||
| (Gains) on sale of banking center | - | (0.05 | ) | - | (0.05 | ) | |||||||||
| Acquisition-related expenses (2) | 0.36 | 0.09 | 0.03 | 0.50 | 0.03 | ||||||||||
| Stock option exercises | - | 0.00 | - | 0.00 | - | ||||||||||
| Core pre-tax, pre-provision diluted earnings per share | $ | 0.81 | $ | 0.56 | $ | 0.69 | $ | 1.41 | $ | 1.25 |
(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21% for 2020 and 2019. These rates approximated the marginal tax rates.
(2) Includes merger and conversion-related expenses and salary and employee benefits.
b1BANK.com
17
Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
| Three Months Ended | Six Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||
| (Dollars in thousands, except per share data) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||
| Total Quarterly/Year-to-Date Average Assets | $ | 3,496,074 | $ | 2,244,584 | $ | 2,102,692 | $ | 2,870,329 | $ | 2,089,188 | |||||
| Total Quarterly/Year-to-Date Average Equity | $ | 349,634 | $ | 285,338 | $ | 270,262 | $ | 317,486 | $ | 266,493 | |||||
| Net Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net income | $ | 2,052 | $ | 4,499 | $ | 6,843 | $ | 6,551 | $ | 12,502 | |||||
| Sale of impaired credit, net of tax | - | - | (72 | ) | - | (72 | ) | ||||||||
| (Gains) losses on former bank premises and equipment , net of tax | - | (100 | ) | - | (100 | ) | - | ||||||||
| (Gains) on sale of securities, net of tax | - | (20 | ) | (46 | ) | (20 | ) | (46 | ) | ||||||
| (Gains) on sale of banking center, net of tax | - | - | (468 | ) | - | (468 | ) | ||||||||
| Acquisition-related expenses (2), net of tax | 5,298 | 1,121 | 345 | 6,419 | 311 | ||||||||||
| Stock option exercises, net of tax | - | (530 | ) | - | (530 | ) | - | ||||||||
| Core net income | $ | 7,350 | $ | 4,970 | $ | 6,602 | $ | 12,320 | $ | 12,227 | |||||
| Return on average assets | 0.23 | % | 0.80 | % | 1.30 | % | 0.46 | % | 1.20 | % | |||||
| Core return on average assets | 0.84 | % | 0.89 | % | 1.26 | % | 0.86 | % | 1.17 | % | |||||
| Return on equity | 2.35 | % | 6.31 | % | 10.13 | % | 4.13 | % | 9.38 | % | |||||
| Core return on average equity | 8.41 | % | 6.97 | % | 9.77 | % | 7.76 | % | 9.18 | % | |||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest income | $ | 36,891 | $ | 26,016 | $ | 25,896 | $ | 62,907 | $ | 50,483 | |||||
| Core interest income | 36,891 | 26,016 | 25,896 | 62,907 | 50,483 | ||||||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest expense | 5,972 | 5,805 | 5,703 | 11,777 | 11,170 | ||||||||||
| Core interest expense | 5,972 | 5,805 | 5,703 | 11,777 | 11,170 | ||||||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other income | 4,996 | 2,804 | 4,219 | 7,800 | 6,530 | ||||||||||
| Sale of impaired credit | - | - | (91 | ) | - | (91 | ) | ||||||||
| (Gains) losses on former bank premises and equipment | - | (126 | ) | - | (126 | ) | - | ||||||||
| (Gains) on sale of securities | - | (25 | ) | (58 | ) | (25 | ) | (58 | ) | ||||||
| (Gains) on sale of banking center | - | - | (593 | ) | - | (593 | ) | ||||||||
| Core other income | 4,996 | 2,653 | 3,477 | 7,649 | 5,788 | ||||||||||
| Other Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense | 27,797 | 16,643 | 14,577 | 44,440 | 28,367 | ||||||||||
| Acquisition-related expenses | (6,573 | ) | (1,212 | ) | (436 | ) | (7,785 | ) | (386 | ) | |||||
| Stock option exercises - excess taxes | - | (71 | ) | - | (71 | ) | - | ||||||||
| Core other expense | $ | 21,224 | $ | 15,360 | $ | 14,141 | $ | 36,584 | $ | 27,981 | |||||
| Efficiency Ratio: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense (a) | $ | 27,797 | $ | 16,643 | $ | 14,577 | $ | 44,440 | $ | 28,367 | |||||
| Core other expense (c) | $ | 21,224 | $ | 15,360 | $ | 14,141 | $ | 36,584 | $ | 27,981 | |||||
| Net interest and other income (1) (b) | $ | 35,915 | $ | 22,990 | $ | 24,354 | $ | 58,905 | $ | 45,785 | |||||
| Core net interest and other income (1) (d) | $ | 35,915 | $ | 22,864 | $ | 23,670 | $ | 58,779 | $ | 45,101 | |||||
| Efficiency ratio (a/b) | 77.40 | % | 72.39 | % | 59.85 | % | 75.44 | % | 61.96 | % | |||||
| Core efficiency ratio (c/d) | 59.10 | % | 67.18 | % | 59.74 | % | 62.24 | % | 62.04 | % | |||||
| Total Average Interest-Earnings Assets | $ | 3,176,156 | $ | 2,055,603 | $ | 1,929,035 | $ | 2,615,879 | $ | 1,914,386 | |||||
| Net Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net interest income | $ | 30,919 | $ | 20,211 | $ | 20,193 | 51,130 | $ | 39,313 | ||||||
| Loan discount accretion | (1,465 | ) | (290 | ) | (826 | ) | (1,755 | ) | (1,258 | ) | |||||
| Net interest income excluding loan discount accretion | $ | 29,454 | $ | 19,921 | $ | 19,367 | $ | 49,375 | $ | 38,055 | |||||
| Net interest margin (2) | 3.89 | % | 3.93 | % | 4.19 | % | 3.91 | % | 4.11 | % | |||||
| Net interest margin excluding loan discount accretion (2) | 3.71 | % | 3.88 | % | 4.02 | % | 3.78 | % | 3.98 | % | |||||
| Net interest spread | 3.59 | % | 3.55 | % | 3.75 | % | 3.57 | % | 3.69 | % | |||||
| Net interest spread excluding loan discount accretion | 3.41 | % | 3.49 | % | 3.58 | % | 3.43 | % | 3.56 | % |
(1) Excludes gains/losses on sales of securities.
(2) Calculated utilizing a 30/360 day count convention.
b1BANK.com
18
Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
| June 30, | March 31, | June 30, | |||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 2020 | 2020 | 2019 | ||||||
| Total Shareholders' (Common) Equity: | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Total shareholders' equity | $ | 386,336 | $ | 282,030 | $ | 277,469 | |||
| Goodwill | (53,649 | ) | (48,495 | ) | (48,503 | ) | |||
| Core deposit intangible | (10,389 | ) | (6,471 | ) | (7,139 | ) | |||
| Total tangible common equity | $ | 322,298 | $ | 227,064 | $ | 221,827 | |||
| Total Assets: | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Total assets | $ | 3,961,138 | $ | 2,287,662 | $ | 2,153,608 | |||
| Goodwill | (53,649 | ) | (48,495 | ) | (48,503 | ) | |||
| Core deposit intangible | (10,389 | ) | (6,471 | ) | (7,139 | ) | |||
| Total tangible assets | $ | 3,897,100 | $ | 2,232,696 | $ | 2,097,966 | |||
| Common shares outstanding | 20,667,237 | 13,067,987 | 13,361,482 | ||||||
| Book value per common share | $ | 18.69 | $ | 21.58 | $ | 20.77 | |||
| Tangible book value per common share | $ | 15.59 | $ | 17.38 | $ | 16.60 | |||
| Common equity to total assets | 9.75 | % | 12.33 | % | 12.88 | % | |||
| Tangible common equity to tangible assets | 8.27 | % | 10.17 | % | 10.57 | % |
b1BANK.com
19
Image Exhibit
Exhibit 99.2
