8-K
Business First Bancshares, Inc. (BFST)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
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): January 25, 2022
BUSINESS FIRST BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
| Louisiana | 001-38447 | 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 | 70801 | |
| (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 January 25, 2022, Business First Bancshares, Inc. (“Business First”), the parent company of b1BANK, issued a press release announcing financial results for full-year 2021 and the quarter ended December 31, 2021. The release also announced that the Board of Directors of Business First declared a dividend on January 24, 2022, in the amount of $0.12 to the shareholders of record of the company on February 15, 2022. The dividend is to be paid on February 28, 2022, 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 January 25, 2022, 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<br><br> <br>99.2<br><br> <br>104 | Press Release of Business First Bancshares, Inc., dated January 25, 2022.<br><br> <br>Business First Bancshares, Inc. Investor Presentation, Fiscal Year 2021 and Q4 2021 Results.<br><br> <br>Cover Page Interactive Data File (embedded within the Inline XBRL document) |
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: January 25, 2022
| BUSINESS FIRST BANCSHARES, INC. | |
|---|---|
| By: | /s/ David R. Melville, III |
| David R. Melville, III | |
| President and Chief Executive Officer |
ex_327604.htm
Exhibit 99.1
| FOR IMMEDIATE RELEASE | Misty Albrecht |
|---|---|
| January 25, 2022 | b1BANK |
| 225.286.7879 | |
| Misty.Albrecht@b1BANK.com |
BUSINESS FIRST BANCSHARES, INC., ANNOUNCES FINANCIAL RESULTS FOR FISCAL YEAR 2021 AND Q4 2021
Baton Rouge, La. (January 25, 2022) – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the year ended December 31, 2021, including net income of $52.1 million, or $2.53 per diluted share, an increase of $22.1 million and $0.89, respectively, from the prior year ended December 31, 2020. The increase was largely impacted by a $9.2 million pre-tax gain on sale of Small Business Administration (SBA) Paycheck Protection Program (PPP) loans during the second quarter of 2021 and pre-tax net interest income of $8.2 million realized in 2021 related to SBA PPP loans. On a non-GAAP basis, core net income for the year ended December 31, 2021, which excludes certain income and expenses, was $53.9 million, or $2.61 per diluted share, increases of $16.5 million and $0.56, respectively, from prior year ended December 31, 2020.
For the quarter ended December 31, 2021, Business First reported net income of $12.1 million, or $0.59 per diluted share, increases of $1.8 million and $0.09, respectively, from the quarter ended September 30, 2021. On a non-GAAP basis, core net income for the quarter ended December 31, 2021, which excludes certain income and expenses, was $11.7 million, or $0.57 per diluted share, an increase of $0.8 million and $0.04, respectively, from the quarter ended September 30, 2021.
“Given all that has occurred over the past few years in our company and across the country the fourth quarter of 2021 was the most “normal” quarter we’ve had in some time,” said Jude Melville, president and CEO. “We are adding clarity and visibility to our story: an entrepreneurial company steadily building core profitability, adding employees, clients and product capability, and diversifying risk across an expanding footprint. We enter 2022 eager to close our pending merger with Texas Citizens Bank in Houston, continue building upon our foundational investment in Dallas-Fort Worth and grow our market share across Louisiana.”
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On January 24, 2022, Business First’s board of directors declared a quarterly dividend based upon financial performance for the fourth quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of February 15, 2022. The dividend will be paid on February 28, 2022, or as soon thereafter as practicable.
Quarterly Highlights
| ● | Loan Growth. Total loans held for investment at December 31, 2021, were $3.2 billion, an increase of $123.4 million compared to September 30, 2021, or 4.02% for the quarter and 16.10% annualized. Excluding the decrease in SBA PPP loans, total loans held for investment increased from the quarter ended September 30, 2021, by 4.18%, or 16.71% annualized. Loan growth in Dallas, Tx. (28.6%), greater New Orleans (63.4%), and the Baton Rouge/Capital Region (36.1%) markets accounted for 128.1% of the quarterly loan growth, offset by normal net maturities and payoffs in Business First’s other markets. |
|---|---|
| ● | Stable Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets slightly improved from 0.37% and 0.45%, respectively, at September 30, 2021, to 0.31% and 0.41% at December 31, 2021. The nonperforming asset ratio has decreased from the prior quarter due to asset sales. **** |
| --- | --- |
| ● | Banking Center Sale. Business First regularly evaluates its Banking Center network in search of optimization opportunities and closed two Banking Centers during Q4 2021, one in Minden, La, and a second by sale in Oak Grove, La., on October 1, 2021. The Banking Center sale resulted in a pre-tax gain on sale of $492,000. |
| --- | --- |
| ● | Texas Citizens Bancorp, Inc. Acquisition. On October 20, 2021, Business First executed a definitive agreement to acquire Texas Citizens Bancshares, Inc. (TCBI), the parent bank holding company for Texas Citizens Bank, National Association, based in Pasadena, Tx. As of December 31, 2021, TCBI had consolidated total assets of $547.2 million, loans of $359.0 million, and deposits of $482.8 million. |
| --- | --- |
Financial Condition
December 31, 2021, Compared to September 31, 2021
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Loans
Loans held for investment increased $123.4 million, or 4.02% (16.10% annualized), for the quarter ended December 31, 2021. The increase was largely attributable to loan originations in our construction and land and nonfarm, nonresidential real estate portfolios which were $83.7 million and $32.7 million, respectively. Year to date loan growth was 6.63%, inclusive of SBA PPP loans. As of December 31, 2021, SBA PPP loans with an unpaid principal balance of $5.4 million remained outstanding, compared to $8.9 million as of September 30, 2021.
Excluding the net decrease in SBA PPP loans, total loans held for investment increased for the quarter ended December 31, 2021, by 4.18%, or 16.71% annualized. Year to date loan growth was 19.00% excluding SBA PPP loans.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from 0.45% as of September 30, 2021, to 0.41% as of December 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.37% as of September 30, 2021, to 0.31% as of December 31, 2021.
Total Shareholders’ Equity
Book value per common share was $21.24 at December 31, 2021, compared to $21.11 at September 30, 2021. On a non-GAAP basis, tangible book value per share was $17.71 at December 31, 2021, compared to $17.53 at September 30, 2021.
December 31, 2021, Compared to December 31, 2020
Loans
Total loans held for investment increased by $198.3 million compared to December 31, 2020, or 6.63 %. Excluding SBA PPP loans, loans increased $508.3 million, or 19.00%.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment increased from 0.35% as of December 31, 2020, to 0.41% as of December 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.48% as of December 31, 2020, to 0.31% as of December 31, 2021, largely due to the sales of nonperforming assets.
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Total Shareholders’ Equity
Book value per common share was $21.24 at December 31, 2021, compared to $19.88 at December 31, 2020. On a non-GAAP basis, tangible book value per share was $17.71 at December 31, 2021, compared to $16.80 at December 31, 2020.
Results of Operations
Fourth Quarter 2021 Compared to Third Quarter 2021
Net Income and Diluted Earnings Per Share
For the quarter ended December 31, 2021, net income was $12.1 million, or $0.59 per diluted share, compared to net income of $10.3 million, or $0.50 per diluted share, for the quarter ended September 31, 2021. The increase, $1.8 million and $0.09, respectively, was largely attributable to a $1.1 million increase in pre-tax net interest income and a $455,000 increase in pre-tax gains on sales of securities for the quarter ended December 31, 2021.
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended December 31, 2021, was $11.7 million, or $0.57 per diluted share, compared to core net income of $10.9 million, or $0.53 per diluted share, for the quarter ended September 30, 2021. Notable noncore events impacting earnings for the quarter ended December 31, 2021, included $444,000 in gains on sale of securities and a $492,000 gain on sale of the Oak Grove Banking Center within other income, and $266,000 of expenses attributable to acquisition-related expenses, compared to $211,000 in occupancy and bank premises expenses attributable to hurricane damages (primarily related to Ida, 2021), $145,000 in acquisition-related expenses and $392,000 in losses on sales of former premises and equipment within other income, for the quarter ended September 30, 2021.
Interest Income
For the quarter ended December 31, 2021, net interest income totaled $38.3 million and net interest margin and net interest spread were 3.57% and 3.38%, respectively, compared to $37.3 million, 3.71% and 3.51% for the quarter ended September 30, 2021. The average yield on total interest-earning assets was 3.93% for the quarter ended December 31, 2021, compared to 4.14% for the quarter ended September 30, 2021. The increase in interest income was largely attributable to loan growth during the fourth quarter. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.93% for the quarter ended December 31, 2021, compared to 5.11% for the quarter ended September 30, 2021, due to lower-yielding new originations.
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Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.42% and 3.24%, respectively, for the quarter ended December 31, 2021, compared to 3.56% and 3.36% (excluding loan discount accretion of $1.5 million) for the quarter ended September 30, 2021.
Interest Expense
For the quarter ended December 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by six basis points, from 0.44% to 0.38%, compared to the quarter ended September 30, 2021, due to a combination of increased noninterest deposits and lower yielding interest-bearing deposits.
Other Income
For the quarter ended December 31, 2021, other income was higher by $627,000 compared to the quarter ended September 30, 2021. The increase was largely attributable to increases on gains of securities of $455,000, fees and brokerage commissions of $386,000, gains on sales of other real estate owned of $523,000, and gain on sale of the Oak Grove Banking Center of $492,000, offset by a reduction of other income of $1.3 million.
Other Expenses
For the quarter ended December 31, 2021, other expense decreased by $152,000 compared to the quarter ended September 30, 2021.
Provision for Loan Losses
During the quarter ended December 31, 2021, Business First recorded a provision for loan losses of $1.3 million, compared to $1.1 million for the quarter ended September 30, 2021. The reserve for the quarter ended December 31, 2021, was driven primarily by the improvement in the qualitative factors (attributed to the general economy and energy sector), offset by reserves for new loan growth.
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Return on Assets and Equity
Return on average assets and equity, each on an annualized basis, were 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021, compared to 0.95% and 9.47%, respectively, for the quarter ended September 30, 2021.
Fourth Quarter 2021 Compared to Fourth Quarter 2020
Net Income and Diluted Earnings Per Share
For the quarter ended December 31, 2021, net income was $12.1 million, or $0.59 per diluted share, compared to net income of $13.8 million, or $0.67 per diluted share, for the quarter ended December 31, 2020. The decreases in net income and diluted earnings per share were largely attributable to lower interest income related to a reduction of SBA PPP loan fees and discount accretion, as well as the $4.2 million gains on sales of loans under the Main Street Lending Program (Main Street) which occurred in December 2020, offset by the reduction of $2.4 million loss on early extinguishment of Federal Home Loan Bank (FHLB) debt which occurred in December 2020 and a decrease in the provision for loan losses of $834,000.
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended December 31, 2021, was $11.7 million, or $0.57 per diluted share, compared to core net income of $14.1 million, or $0.68 per diluted share, for the quarter ended December 31, 2020. Notable noncore events impacting earnings for the quarter ended December 31, 2021, included $444,000 gains on sale of securities and a $492,000 gain on sale of the Oak Grove Banking Center within other income, and $266,000 of expenses attributable to acquisition-related expenses, compared to the incurrence of $568,000 in acquisition-related expenses and $158,000 in gains attributed to former bank premises and equipment in other income for the quarter ended December 31, 2020.
Interest Income
For the quarter ended December 31, 2021, net interest income totaled $38.3 million and net interest margin and net interest spread were 3.57% and 3.38%, respectively, compared to $39.6 million, 4.26% and 4.03% for the quarter ended December 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.93% for the quarter ended December 31, 2021, compared to 5.59% for the quarter ended December 31, 2020. The decrease in interest income was largely attributable to lower fees and interest income from lower SBA PPP loan balances.
Average yield on total interest-earning assets, net interest margin, and net interest spread were negatively impacted for the quarter ended December 31, 2021, by lower yielding loans and securities, offset partially by lower deposit and borrowing costs.
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Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.42% and 3.24%, respectively, for the quarter ended December 31, 2021, compared to 3.99% and 3.75% (excluding loan discount accretion of $2.6 million) for the quarter ended December 31, 2020.
Interest Expense
For the quarter ended December 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 15 basis points, from 0.53% to 0.38%, compared to the quarter ended December 31, 2020. The decrease in cost of funds was primarily attributable to an overall reduction in interest rates on deposit offerings and reduction in FHLB advance balances, offset by an increase associated with higher subordinated debt balances.
Other Income
For the quarter ended December 31, 2021, the decrease in other income of $2.6 million was largely attributable to the $4.2 million gains on sales of Main Street loans which occurred during December 2020, offset by an increase in gains on sales of securities of $429,000 and $1.3 million in fees and brokerage commissions, compared to the quarter ended December 31, 2020.
Other Expenses
For the quarter ended December 31, 2021, the decrease in other expense was $187,000 compared to December 31, 2020. Notable changes include a net increase in salaries and employee benefits of $2.4 million, offset by a reduction of other expenses attributable to a reduction of $2.4 million on loss of early extinguishment of FHLB debt.
Provision for Loan Losses
During the quarter ended December 31, 2021, Business First recorded a provision for loan losses of $1.3 million compared to $2.1 million for the quarter ended December 31, 2020. The reserve for the quarter ended December 31, 2020, was impacted by $450,000 in net charge-offs and the impact of the COVID-19 pandemic on the qualitative factors at the time.
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Return on Assets and Equity
Return on average assets and return on average equity, each on an annualized basis, were 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021, from 1.37% and 13.86%, respectively, for the quarter ended December 31, 2020.
About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $4.7 billion in assets, $6.2 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, Texas area, 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 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 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.
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 Banking Centers, 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 and the TCBI merger, 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.
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| Business First Bancshares, Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Information | |||||||||
| (Unaudited) | |||||||||
| For the Quarter Ended | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, | September 30, | December 31, | |||||||
| (Dollars in thousands) | 2021 | 2021 | 2020 | ||||||
| Balance Sheet Ratios | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Loans (HFI) to Deposits | 78.23 | % | 81.37 | % | 82.71 | % | |||
| Shareholders' Equity to Assets Ratio | 9.17 | % | 9.77 | % | 9.85 | % | |||
| Loans Receivable Held for Investment | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Commercial (1) | $ | 721,385 | $ | 723,077 | $ | 886,325 | |||
| Real Estate: | |||||||||
| Construction and Land | 548,528 | 464,808 | 403,065 | ||||||
| Farmland | 87,463 | 85,898 | 55,883 | ||||||
| 1-4 Family Residential | 467,699 | 464,462 | 468,650 | ||||||
| Multi-Family Residential | 97,508 | 107,551 | 95,707 | ||||||
| Nonfarm Nonresidential | 1,144,426 | 1,111,771 | 971,603 | ||||||
| Total Real Estate | 2,345,624 | 2,234,490 | 1,994,908 | ||||||
| Consumer and Other (1) | 122,599 | 108,669 | 110,122 | ||||||
| Total Loans (Held for Investment) | $ | 3,189,608 | $ | 3,066,236 | $ | 2,991,355 | |||
| Allowance for Loan Losses | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Balance, Beginning of Period | $ | 28,146 | $ | 26,702 | $ | 20,340 | |||
| Charge-offs – Quarterly | (385 | ) | (81 | ) | (715 | ) | |||
| Recoveries – Quarterly | 51 | 378 | 265 | ||||||
| Provision for Loan Losses – Quarterly | 1,300 | 1,147 | 2,134 | ||||||
| Balance, End of Period | $ | 29,112 | $ | 28,146 | $ | 22,024 | |||
| Allowance for Loan Losses to Total Loans (HFI) | 0.91 | % | 0.92 | % | 0.74 | % | |||
| Net Charge-offs (Recoveries) to Average Total Loans | 0.01 | % | -0.01 | % | 0.01 | % | |||
| Remaining Loan Purchase Discount | $ | 27,573 | $ | 29,390 | $ | 35,580 | |||
| Nonperforming Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Nonperforming Loans: | |||||||||
| Nonaccrual Loans (2) | $ | 12,868 | $ | 12,622 | $ | 9,063 | |||
| Loans Past Due 90 Days or More (2) | 222 | 1,030 | 1,523 | ||||||
| Total Nonperforming Loans | 13,090 | 13,652 | 10,586 | ||||||
| Other Nonperforming Assets: | |||||||||
| Other Real Estate Owned | 1,427 | 2,152 | 9,051 | ||||||
| Other Nonperforming Assets | - | 675 | 402 | ||||||
| Total Other Nonperforming Assets | 1,427 | 2,827 | 9,453 | ||||||
| Total Nonperforming Assets | $ | 14,517 | $ | 16,479 | $ | 20,039 | |||
| Nonperforming Loans to Total Loans (HFI) | 0.41 | % | 0.45 | % | 0.35 | % | |||
| Nonperforming Assets to Total Assets | 0.31 | % | 0.37 | % | 0.48 | % | |||
| (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $5.4 million of the commercial portfolio as of December 31, 2021. SBA PPP loans accounted for $9.7 million of the commercial portfolio as of September 30, 2021. SBA PPP loans accounted for $313.9 million and $1.6 million of the commercial and consumer portfolios, respectively, as of December 31, 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. |
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| Business First Bancshares, Inc. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Information | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||
| (Dollars in thousands, except per share data) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||
| Per Share Data | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Basic Earnings per Common Share | $ | 0.59 | $ | 0.51 | $ | 0.67 | $ | 2.54 | $ | 1.65 | |||||
| Diluted Earnings per Common Share | 0.59 | 0.50 | 0.67 | 2.53 | 1.64 | ||||||||||
| Dividends per Common Share | 0.12 | 0.12 | 0.10 | 0.46 | 0.40 | ||||||||||
| Book Value per Common Share | 21.24 | 21.11 | 19.88 | 21.24 | 19.88 | ||||||||||
| Average Common Shares Outstanding | 20,299,704 | 20,384,879 | 20,590,239 | 20,502,249 | 18,169,599 | ||||||||||
| Average Diluted Shares Outstanding | 20,462,317 | 20,513,838 | 20,726,648 | 20,634,281 | 18,243,445 | ||||||||||
| End of Period Common Shares Outstanding | 20,400,349 | 20,383,504 | 20,621,437 | 20,400,349 | 20,621,437 | ||||||||||
| Annualized Performance Ratios | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Return on Average Assets | 1.05 | % | 0.95 | % | 1.37 | % | 1.18 | % | 0.88 | % | |||||
| Return on Average Equity | 11.20 | % | 9.47 | % | 13.86 | % | 12.25 | % | 8.42 | % | |||||
| Net Interest Margin | 3.57 | % | 3.71 | % | 4.26 | % | 3.84 | % | 4.06 | % | |||||
| Net Interest Spread | 3.38 | % | 3.51 | % | 4.03 | % | 3.65 | % | 3.77 | % | |||||
| Efficiency Ratio (1) | 65.55 | % | 67.73 | % | 60.27 | % | 61.84 | % | 67.75 | % | |||||
| Total Quarterly/Year-to-Date Average Assets | $ | 4,584,460 | $ | 4,353,885 | $ | 4,029,660 | $ | 4,403,670 | $ | 3,426,120 | |||||
| Total Quarterly/Year-to-Date Average Equity | 430,834 | 435,400 | 399,332 | 425,692 | 356,339 | ||||||||||
| Other Expenses | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and Employee Benefits | $ | 17,355 | $ | 16,791 | $ | 14,908 | $ | 65,825 | $ | 57,394 | |||||
| Occupancy and Bank Premises | 1,522 | 1,629 | 1,525 | 7,238 | 5,349 | ||||||||||
| Depreciation and Amortization | 793 | 1,720 | 1,338 | 5,792 | 4,334 | ||||||||||
| Data Processing | 2,032 | 1,994 | 1,967 | 8,137 | 5,506 | ||||||||||
| FDIC Assessment Fees | 668 | 581 | 595 | 2,194 | 1,608 | ||||||||||
| Legal and Other Professional Fees | 480 | 553 | 626 | 2,679 | 2,118 | ||||||||||
| Advertising and Promotions | 999 | 612 | 645 | 2,712 | 1,605 | ||||||||||
| Utilities and Communications | 586 | 678 | 617 | 2,475 | 2,368 | ||||||||||
| Ad Valorem Shares Tax | 449 | 675 | 850 | 2,499 | 2,348 | ||||||||||
| Directors' Fees | 207 | 201 | 173 | 790 | 464 | ||||||||||
| Other Real Estate Owned Expenses and Write-Downs | 76 | 103 | 132 | 736 | 607 | ||||||||||
| Merger and Conversion-Related Expenses | 266 | 145 | 548 | 515 | 3,978 | ||||||||||
| Other | 3,982 | 3,885 | 5,678 | 15,469 | 13,314 | ||||||||||
| Total Other Expenses | $ | 29,415 | $ | 29,567 | $ | 29,602 | $ | 117,061 | $ | 100,993 | |||||
| Other Income | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Service Charges on Deposit Accounts | $ | 1,800 | $ | 1,763 | $ | 1,672 | $ | 6,813 | $ | 5,358 | |||||
| Gain (Loss) on Sales of Securities | 444 | (11 | ) | 15 | 378 | 135 | |||||||||
| Debit Card and ATM Fee Income | 1,554 | 1,532 | 1,555 | 6,199 | 4,320 | ||||||||||
| Bank-Owned Life Insurance Income | 367 | 356 | 251 | 1,396 | 940 | ||||||||||
| Gain on Sales of Loans | 3 | 93 | 4,413 | 10,117 | 4,597 | ||||||||||
| Mortgage Origination Income | 169 | 227 | 208 | 866 | 572 | ||||||||||
| Fees and Brokerage Commission | 1,721 | 1,335 | 433 | 5,015 | 970 | ||||||||||
| Gain (Loss) on Sales of Other Real Estate Owned | (35 | ) | (558 | ) | 199 | (1,122 | ) | 227 | |||||||
| Gain (Loss) on Disposal of Other Assets | (9 | ) | 14 | 51 | 112 | (576 | ) | ||||||||
| Gain on Sale of Branch | 492 | - | - | 492 | - | ||||||||||
| Pass-Through Income from SBIC Partnerships | 555 | 405 | 170 | 2,615 | 2,538 | ||||||||||
| Other | (86 | ) | 1,192 | 580 | 2,901 | 2,483 | |||||||||
| Total Other Income | $ | 6,975 | $ | 6,348 | $ | 9,547 | $ | 35,782 | $ | 21,564 | |||||
| (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. | |||||||||||||||
| --- |
11
| Business First Bancshares, Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Consolidated Balance Sheets | |||||||||
| (Unaudited) | |||||||||
| December 31, | September 30, | December 31, | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Dollars in thousands) | 2021 | 2021 | 2020 | ||||||
| Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Cash and Due From Banks | $ | 68,375 | $ | 81,361 | $ | 149,131 | |||
| Federal Funds Sold | 227,044 | 4,646 | 174,152 | ||||||
| Securities Available for Sale, at Fair Values | 1,021,061 | 1,034,491 | 640,605 | ||||||
| Mortgage Loans Held for Sale | 1,200 | 1,498 | 969 | ||||||
| Loans and Lease Receivable | 3,189,608 | 3,066,236 | 2,991,355 | ||||||
| Allowance for Loan Losses | (29,112 | ) | (28,146 | ) | (22,024 | ) | |||
| Net Loans and Lease Receivable | 3,160,496 | 3,038,090 | 2,969,331 | ||||||
| Premises and Equipment, Net | 58,155 | 56,611 | 58,593 | ||||||
| Accrued Interest Receivable | 19,597 | 19,025 | 23,895 | ||||||
| Other Equity Securities | 16,619 | 15,259 | 12,693 | ||||||
| Other Real Estate Owned | 1,427 | 2,152 | 9,051 | ||||||
| Cash Value of Life Insurance | 60,380 | 59,085 | 45,030 | ||||||
| Deferred Taxes, Net | 8,822 | 5,618 | 5,858 | ||||||
| Goodwill | 59,894 | 60,062 | 53,862 | ||||||
| Core Deposit and Customer Intangibles | 12,203 | 12,835 | 9,734 | ||||||
| Other Assets | 11,105 | 14,484 | 7,456 | ||||||
| Total Assets | $ | 4,726,378 | $ | 4,405,217 | $ | 4,160,360 | |||
| Liabilities | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Deposits | |||||||||
| Noninterest-Bearing | $ | 1,291,036 | $ | 1,201,791 | $ | 1,164,139 | |||
| Interest-Bearing | 2,786,247 | 2,566,330 | 2,452,540 | ||||||
| Total Deposits | 4,077,283 | 3,768,121 | 3,616,679 | ||||||
| Securities Sold Under Agreements to Repurchase | 19,121 | 27,195 | 21,825 | ||||||
| Fed Funds Purchased | - | 16,087 | - | ||||||
| Short-Term Borrowings | 20 | 20 | 5,020 | ||||||
| Long-Term Borrowings | - | - | 6,000 | ||||||
| Subordinated Debt | 81,427 | 81,427 | 25,000 | ||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 5,000 | 5,000 | ||||||
| Federal Home Loan Bank Borrowings | 82,022 | 48,002 | 43,145 | ||||||
| Accrued Interest Payable | 1,354 | 1,835 | 2,499 | ||||||
| Other Liabilities | 26,783 | 27,309 | 25,229 | ||||||
| Total Liabilities | 4,293,010 | 3,974,996 | 3,750,397 | ||||||
| Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Common Stock | 20,400 | 20,384 | 20,621 | ||||||
| Additional Paid-In Capital | 292,271 | 291,847 | 299,540 | ||||||
| Retained Earnings | 121,874 | 112,243 | 79,174 | ||||||
| Accumulated Other Comprehensive Income | (1,177 | ) | 5,747 | 10,628 | |||||
| Total Shareholders' Equity | 433,368 | 430,221 | 409,963 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 4,726,378 | $ | 4,405,217 | $ | 4,160,360 |
12
| Business First Bancshares, Inc. | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Statements of Income | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended | Year Ended | ||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||
| (Dollars in thousands) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest and Fees on Loans | $ | 38,337 | $ | 37,900 | $ | 41,762 | $ | 156,791 | $ | 140,459 | |
| Interest and Dividends on Securities | 3,904 | 3,598 | 2,572 | 13,520 | 9,121 | ||||||
| Interest on Federal Funds Sold and Due From Banks | 50 | 36 | 53 | 127 | 175 | ||||||
| Total Interest Income | 42,291 | 41,534 | 44,387 | 170,438 | 149,755 | ||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest on Deposits | 2,645 | 3,060 | 3,736 | 12,183 | 17,562 | ||||||
| Interest on Borrowings | 1,302 | 1,180 | 1,067 | 4,371 | 4,547 | ||||||
| Total Interest Expense | 3,947 | 4,240 | 4,803 | 16,554 | 22,109 | ||||||
| Net Interest Income | 38,344 | 37,294 | 39,584 | 153,884 | 127,646 | ||||||
| Provision for Loan Losses: | 1,300 | 1,147 | 2,134 | 8,047 | 11,435 | ||||||
| Net Interest Income After Provision for Loan Losses | 37,044 | 36,147 | 37,450 | 145,837 | 116,211 | ||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Service Charges on Deposit Accounts | 1,800 | 1,763 | 1,672 | 6,813 | 5,358 | ||||||
| Gain (Loss) on Sales of Securities | 444 | (11 | ) | 15 | 378 | 135 | |||||
| Gain on Sales of Loans | 3 | 93 | 4,413 | 10,117 | 4,597 | ||||||
| Other Income | 4,728 | 4,503 | 3,447 | 18,474 | 11,474 | ||||||
| Total Other Income | 6,975 | 6,348 | 9,547 | 35,782 | 21,564 | ||||||
| Other Expenses: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and Employee Benefits | 17,355 | 16,791 | 14,908 | 65,825 | 57,394 | ||||||
| Occupancy and Equipment Expense | 3,857 | 3,912 | 3,373 | 15,750 | 11,380 | ||||||
| Merger and Conversion-Related Expense | 266 | 145 | 548 | 515 | 3,978 | ||||||
| Other Expenses | 7,937 | 8,719 | 10,773 | 34,971 | 28,241 | ||||||
| Total Other Expenses | 29,415 | 29,567 | 29,602 | 117,061 | 100,993 | ||||||
| Income Before Income Taxes: | 14,604 | 12,928 | 17,395 | 64,558 | 36,782 | ||||||
| Provision for Income Taxes: | 2,536 | 2,617 | 3,561 | 12,422 | 6,788 | ||||||
| Net Income: | $ | 12,068 | $ | 10,311 | $ | 13,834 | $ | 52,136 | $ | 29,994 |
13
| Business First Bancshares, Inc. | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Net Interest Margin | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, 2021 | September 30, 2021 | December 31, 2020 | ||||||||||||||||||||||
| 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) | $ | 3,106,477 | $ | 38,318 | 4.93 | % | $ | 2,948,491 | $ | 37,666 | 5.11 | % | $ | 2,685,093 | $ | 37,509 | 5.59 | % | ||||||
| SBA PPP Loans | 7,733 | 19 | 1.00 | % | 10,150 | 234 | 9.24 | % | 365,058 | 4,253 | 4.66 | % | ||||||||||||
| Securities Available for Sale | 1,041,437 | 3,904 | 1.50 | % | 946,950 | 3,598 | 1.52 | % | 603,192 | 2,572 | 1.71 | % | ||||||||||||
| Interest-Bearing Deposit in Other Banks | 143,488 | 50 | 0.14 | % | 110,472 | 36 | 0.13 | % | 61,485 | 53 | 0.34 | % | ||||||||||||
| Total Interest-Earning Assets | 4,299,135 | 42,291 | 3.93 | % | 4,016,063 | 41,534 | 4.14 | % | 3,714,828 | 44,387 | 4.78 | % | ||||||||||||
| Allowance for Loan Losses | (28,379 | ) | (27,409 | ) | (21,020 | ) | ||||||||||||||||||
| Noninterest-Earning Assets | 313,704 | 365,231 | 335,852 | |||||||||||||||||||||
| Total Assets | $ | 4,584,460 | $ | 42,291 | $ | 4,353,885 | $ | 41,534 | $ | 4,029,660 | $ | 44,387 | ||||||||||||
| Liabilities and Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||
| Interest-Bearing Deposits | $ | 2,653,041 | $ | 2,645 | 0.40 | % | $ | 2,566,766 | $ | 3,060 | 0.48 | % | $ | 2,313,511 | $ | 3,736 | 0.65 | % | ||||||
| Subordinated Debt | 81,427 | 1,026 | 5.04 | % | 81,427 | 1,026 | 5.04 | % | 25,000 | 422 | 6.75 | % | ||||||||||||
| 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) | 83,374 | 229 | 1.10 | % | 36,015 | 106 | 1.18 | % | 105,640 | 407 | 1.54 | % | ||||||||||||
| Paycheck Protection Program Liquidity Facility (PPPLF) | - | - | 0.00 | % | - | - | 0.00 | % | 79,450 | 70 | 0.35 | % | ||||||||||||
| Other Borrowings | 25,774 | 5 | 0.08 | % | 26,350 | 6 | 0.09 | % | 37,605 | 126 | 1.34 | % | ||||||||||||
| Total Interest-Bearing Liabilities | 2,848,616 | 3,947 | 0.55 | % | 2,715,558 | 4,240 | 0.62 | % | 2,566,206 | 4,803 | 0.75 | % | ||||||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||||||||||
| Noninterest-Bearing Deposits | $ | 1,276,279 | $ | 1,172,752 | $ | 1,033,593 | ||||||||||||||||||
| Other Liabilities | 28,731 | 30,175 | 30,529 | |||||||||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,305,010 | 1,202,927 | 1,064,122 | |||||||||||||||||||||
| Shareholders' Equity | 430,834 | 435,400 | 399,332 | |||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 4,584,460 | $ | 4,353,885 | $ | 4,029,660 | ||||||||||||||||||
| Net Interest Spread | 3.38 | % | 3.51 | % | 4.03 | % | ||||||||||||||||||
| Net Interest Income | $ | 38,344 | $ | 37,294 | $ | 39,584 | ||||||||||||||||||
| Net Interest Margin | 3.57 | % | 3.71 | % | 4.26 | % | ||||||||||||||||||
| Overall Cost of Funds | 0.38 | % | 0.44 | % | 0.53 | % | ||||||||||||||||||
| NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention. | ||||||||||||||||||||||||
| --- |
14
| Business First Bancshares, Inc. | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Net Interest Margin | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Year Ended | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, 2021 | December 31, 2020 | |||||||||||||||
| 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) | $ | 2,878,306 | $ | 148,638 | 5.16 | % | $ | 2,342,034 | $ | 131,208 | 5.60 | % | ||||
| SBA PPP Loans | 158,714 | 8,153 | 5.14 | % | 271,388 | 9,251 | 3.41 | % | ||||||||
| Securities Available for Sale | 870,282 | 13,520 | 1.55 | % | 483,976 | 9,121 | 1.88 | % | ||||||||
| Interest-Bearing Deposit in Other Banks | 104,471 | 127 | 0.12 | % | 48,345 | 175 | 0.36 | % | ||||||||
| Total Interest-Earning Assets | 4,011,773 | 170,438 | 4.25 | % | 3,145,743 | 149,755 | 4.76 | % | ||||||||
| Allowance for Loan Losses | (26,132 | ) | (16,540 | ) | ||||||||||||
| Noninterest-Earning Assets | 418,029 | 296,917 | ||||||||||||||
| Total Assets | $ | 4,403,670 | $ | 170,438 | $ | 3,426,120 | $ | 149,755 | ||||||||
| Liabilities and Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest-Bearing Liabilities: | ||||||||||||||||
| Interest-Bearing Deposits | $ | 2,604,825 | $ | 12,183 | 0.47 | % | $ | 1,978,295 | $ | 17,562 | 0.89 | % | ||||
| Subordinated Debt | 68,183 | 3,526 | 5.17 | % | 25,000 | 1,688 | 6.75 | % | ||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 168 | 3.36 | % | 3,341 | 121 | 3.62 | % | ||||||||
| Advances from Federal Home Loan Bank (FHLB) | 47,325 | 554 | 1.17 | % | 113,999 | 1,945 | 1.71 | % | ||||||||
| Paycheck Protection Program Liquidity Facility (PPPLF) | - | - | 0.00 | % | 65,857 | 237 | 0.36 | % | ||||||||
| Other Borrowings | 27,182 | 123 | 0.45 | % | 43,286 | 556 | 1.28 | % | ||||||||
| Total Interest-Bearing Liabilities | 2,752,515 | 16,554 | 0.60 | % | 2,229,778 | 22,109 | 0.99 | % | ||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||
| Noninterest-Bearing Deposits | 1,196,970 | 812,332 | ||||||||||||||
| Other Liabilities | 28,493 | 27,671 | ||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,225,463 | 840,003 | ||||||||||||||
| Shareholders' Equity | 425,692 | 356,339 | ||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 4,403,670 | $ | 3,426,120 | ||||||||||||
| Net Interest Spread | 3.65 | % | 3.77 | % | ||||||||||||
| Net Interest Income | $ | 153,884 | $ | 127,646 | ||||||||||||
| Net Interest Margin | 3.84 | % | 4.06 | % | ||||||||||||
| Overall Cost of Funds | 0.42 | % | 0.73 | % | ||||||||||||
| NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention. | ||||||||||||||||
| --- |
15
| Business First Bancshares, Inc. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Measures | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||
| (Dollars in thousands, except per share data) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest income | $ | 42,291 | $ | 41,534 | $ | 44,387 | $ | 170,438 | $ | 149,755 | |||||
| Core interest income | 42,291 | 41,534 | 44,387 | 170,438 | 149,755 | ||||||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest expense | 3,947 | 4,240 | 4,803 | 16,554 | 22,109 | ||||||||||
| Core interest expense | 3,947 | 4,240 | 4,803 | 16,554 | 22,109 | ||||||||||
| Provision for Loan Losses: (b) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Provision for loan losses | 1,300 | 1,147 | 2,134 | 8,047 | 11,435 | ||||||||||
| Core provision expense | 1,300 | 1,147 | 2,134 | 8,047 | 11,435 | ||||||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other income | 6,975 | 6,348 | 9,547 | 35,782 | 21,564 | ||||||||||
| (Gains) 1osses on former bank premises and equipment | 78 | 392 | (158 | ) | 1,010 | 351 | |||||||||
| (Gains) 1osses on sale of securities | (444 | ) | 11 | (15 | ) | (378 | ) | (135 | ) | ||||||
| (Gains) on sale of branch | (492 | ) | - | - | (492 | ) | - | ||||||||
| Core other income | 6,117 | 6,751 | 9,374 | 35,922 | 21,780 | ||||||||||
| Other Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense | 29,415 | 29,567 | 29,602 | 117,061 | 100,993 | ||||||||||
| Acquisition-related expenses (2) | (266 | ) | (145 | ) | (568 | ) | (515 | ) | (9,559 | ) | |||||
| Stock option exercises - excess taxes (founder's grants) | - | - | - | - | (71 | ) | |||||||||
| Occupancy and bank premises - hurricane repair | (57 | ) | (211 | ) | - | (1,556 | ) | - | |||||||
| Core other expense | 29,092 | 29,211 | 29,034 | 114,990 | 91,363 | ||||||||||
| Pre-Tax Income: (a) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Pre-tax income | 14,604 | 12,928 | 17,395 | 64,558 | 36,782 | ||||||||||
| (Gains) 1osses on former bank premises and equipment | 78 | 392 | (158 | ) | 1,010 | 351 | |||||||||
| (Gains) 1osses on sale of securities | (444 | ) | 11 | (15 | ) | (378 | ) | (135 | ) | ||||||
| (Gains) on sale of branch | (492 | ) | - | - | (492 | ) | - | ||||||||
| Acquisition-related expenses (2) | 266 | 145 | 568 | 515 | 9,559 | ||||||||||
| Stock option exercises - excess taxes (founder's grants) | - | - | - | - | 71 | ||||||||||
| Occupancy and bank premises - hurricane repair | 57 | 211 | - | 1,556 | - | ||||||||||
| Core pre-tax income | 14,069 | 13,687 | 17,790 | 66,769 | 46,628 | ||||||||||
| Provision for Income Taxes: (1) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Provision for income taxes | 2,536 | 2,617 | 3,561 | 12,422 | 6,788 | ||||||||||
| Tax on (gains) losses on former bank premises and equipment | 16 | 82 | (33 | ) | 211 | 74 | |||||||||
| Tax on (gains) losses on sale of securities | (93 | ) | 2 | (3 | ) | (79 | ) | (28 | ) | ||||||
| Tax on (gains) on sale of branch | (138 | ) | - | - | (138 | ) | - | ||||||||
| Tax on acquisition-related expenses (2) | 62 | 24 | 120 | 108 | 1,727 | ||||||||||
| Tax on stock option exercises (founder's grants) | - | - | - | - | 601 | ||||||||||
| Tax on occupancy and bank premises - hurricane repair | 12 | 44 | - | 326 | - | ||||||||||
| Core provision for income taxes | 2,395 | 2,769 | 3,645 | 12,850 | 9,162 | ||||||||||
| Net Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net income | 12,068 | 10,311 | 13,834 | 52,136 | 29,994 | ||||||||||
| (Gains) losses on former bank premises and equipment, net of tax | 62 | 310 | (125 | ) | 799 | 277 | |||||||||
| (Gains) losses on sale of securities, net of tax | (351 | ) | 9 | (12 | ) | (299 | ) | (107 | ) | ||||||
| (Gains) on sale of branch | (354 | ) | - | - | (354 | ) | - | ||||||||
| Acquisition-related expenses (2), net of tax | 204 | 121 | 448 | 407 | 7,832 | ||||||||||
| Stock option exercises (founder's grants), net of tax | - | - | - | - | (530 | ) | |||||||||
| Occupancy and bank premises - hurricane repair, net of tax | 45 | 167 | - | 1,230 | - | ||||||||||
| Core net income | $ | 11,674 | $ | 10,918 | $ | 14,145 | $ | 53,919 | $ | 37,466 | |||||
| Pre-tax, pre-provision earnings (a+b) | $ | 15,904 | $ | 14,075 | $ | 19,529 | $ | 72,605 | $ | 48,217 | |||||
| (Gains) losses on former bank premises and equipment | 78 | 392 | (158 | ) | 1,010 | 351 | |||||||||
| (Gains) losses on sale of securities | (444 | ) | 11 | (15 | ) | (378 | ) | (135 | ) | ||||||
| (Gains) on sale of branch | (492 | ) | - | - | (492 | ) | - | ||||||||
| Acquisition-related expenses (2) | 266 | 145 | 568 | 515 | 9,559 | ||||||||||
| Stock option exercises (founder's grants) | - | - | - | - | 71 | ||||||||||
| Occupancy and bank premises - hurricane repair | 57 | 211 | - | 1,556 | - | ||||||||||
| Core pre-tax, pre-provision earnings | $ | 15,369 | $ | 14,834 | $ | 19,924 | $ | 74,816 | $ | 58,063 | |||||
| Average Diluted Shares Outstanding | 20,462,317 | 20,513,838 | 20,726,648 | 20,634,281 | 18,243,445 | ||||||||||
| Diluted Earnings Per Share: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Diluted earnings per share | $ | 0.59 | $ | 0.50 | $ | 0.67 | $ | 2.53 | $ | 1.64 | |||||
| (Gains) losses on former bank premises and equipment, net of tax | (0.00 | ) | 0.01 | (0.01 | ) | 0.04 | 0.02 | ||||||||
| (Gains) losses on sale of securities, net of tax | (0.01 | ) | 0.00 | - | (0.02 | ) | (0.01 | ) | |||||||
| (Gains) on sale of branch | (0.02 | ) | - | - | (0.02 | ) | - | ||||||||
| Acquisition-related expenses (2), net of tax | 0.01 | 0.01 | 0.02 | 0.02 | 0.43 | ||||||||||
| Stock option exercises (founder's grants), net of tax | - | - | - | - | (0.03 | ) | |||||||||
| Occupancy and bank premises - hurricane repair, net of tax | 0.00 | 0.01 | - | 0.06 | - | ||||||||||
| Core diluted earnings per share | $ | 0.57 | $ | 0.53 | $ | 0.68 | $ | 2.61 | $ | 2.05 | |||||
| Pre-tax, pre-provision profit diluted earnings per share | $ | 0.78 | $ | 0.69 | $ | 0.94 | $ | 3.52 | $ | 2.64 | |||||
| (Gains) losses on former bank premises and equipment | 0.00 | 0.01 | (0.01 | ) | 0.05 | 0.02 | |||||||||
| (Gains) losses on sale of securities | (0.02 | ) | 0.00 | - | (0.02 | ) | (0.01 | ) | |||||||
| (Gains) on sale of branch | (0.02 | ) | - | - | (0.02 | ) | - | ||||||||
| Acquisition-related expenses (2) | 0.01 | 0.01 | 0.03 | 0.02 | 0.52 | ||||||||||
| Stock option exercises (founder's grants) | - | - | - | - | 0.00 | ||||||||||
| Occupancy and bank premises - hurricane repair | 0.00 | 0.01 | - | 0.08 | - | ||||||||||
| Core pre-tax, pre-provision diluted earnings per share | $ | 0.75 | $ | 0.72 | $ | 0.96 | $ | 3.63 | $ | 3.17 | |||||
| (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.00% for 2021 and 2020. These rates approximated the marginal tax rates. | |||||||||||||||
| --- | |||||||||||||||
| (2) Includes merger and conversion-related expenses and salary and employee benefits. |
16
| Business First Bancshares, Inc. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Measures | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||
| (Dollars in thousands, except per share data) | 2021 | 2021 | 2020 | 2021 | 2020 | ||||||||||
| Total Quarterly/Year-to-Date Average Assets | $ | 4,584,460 | $ | 4,353,885 | $ | 4,029,660 | $ | 4,403,670 | $ | 3,426,120 | |||||
| Total Quarterly/Year-to-Date Average Equity | $ | 430,834 | $ | 435,400 | $ | 399,332 | $ | 425,692 | $ | 356,339 | |||||
| Net Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net income | $ | 12,068 | $ | 10,311 | $ | 13,834 | $ | 52,136 | $ | 29,994 | |||||
| (Gains) losses on former bank premises and equipment, net of tax | 62 | 310 | (125 | ) | 799 | 277 | |||||||||
| (Gains) losses on sale of securities, net of tax | (351 | ) | 9 | (12 | ) | (299 | ) | (107 | ) | ||||||
| (Gains) on sale of branch, net of tax | (354 | ) | - | - | (354 | ) | - | ||||||||
| Acquisition-related expenses (2), net of tax | 204 | 121 | 448 | 407 | 7,832 | ||||||||||
| Stock option exercises (founder's grants), net of tax | - | - | - | - | (530 | ) | |||||||||
| Occupancy and bank premises - hurricane repair, net of tax | 45 | 167 | - | 1,230 | - | ||||||||||
| Core net income | $ | 11,674 | $ | 10,918 | $ | 14,145 | $ | 53,919 | $ | 37,466 | |||||
| Return on average assets | 1.05 | % | 0.95 | % | 1.37 | % | 1.18 | % | 0.88 | % | |||||
| Core return on average assets | 1.02 | % | 1.00 | % | 1.40 | % | 1.22 | % | 1.09 | % | |||||
| Return on equity | 11.20 | % | 9.47 | % | 13.86 | % | 12.25 | % | 8.42 | % | |||||
| Core return on average equity | 10.84 | % | 10.03 | % | 14.17 | % | 12.67 | % | 10.51 | % | |||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest income | $ | 42,291 | $ | 41,534 | $ | 44,387 | $ | 170,438 | $ | 149,755 | |||||
| Core interest income | 42,291 | 41,534 | 44,387 | 170,438 | 149,755 | ||||||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest expense | 3,947 | 4,240 | 4,803 | 16,554 | 22,109 | ||||||||||
| Core interest expense | 3,947 | 4,240 | 4,803 | 16,554 | 22,109 | ||||||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other income | 6,975 | 6,348 | 9,547 | 35,782 | 21,564 | ||||||||||
| (Gains) losses on former bank premises and equipment | 78 | 392 | (158 | ) | 1,010 | 351 | |||||||||
| (Gains) losses on sale of securities | (444 | ) | 11 | (15 | ) | (378 | ) | (135 | ) | ||||||
| (Gains) on sale of branch | (492 | ) | - | - | (492 | ) | - | ||||||||
| Core other income | 6,117 | 6,751 | 9,374 | 35,922 | 21,780 | ||||||||||
| Other Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense | 29,415 | 29,567 | 29,602 | 117,061 | 100,993 | ||||||||||
| Acquisition-related expenses | (266 | ) | (145 | ) | (568 | ) | (515 | ) | (9,559 | ) | |||||
| Stock option exercises - excess taxes (founder's grants) | - | - | - | - | (71 | ) | |||||||||
| Occupancy and bank premises - hurricane repair | (57 | ) | (211 | ) | - | (1,556 | ) | - | |||||||
| Core other expense | $ | 29,092 | $ | 29,211 | $ | 29,034 | $ | 114,990 | $ | 91,363 | |||||
| Efficiency Ratio: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense (a) | $ | 29,415 | $ | 29,567 | $ | 29,602 | $ | 117,061 | $ | 100,993 | |||||
| Core other expense (c) | $ | 29,092 | $ | 29,211 | $ | 29,034 | $ | 114,990 | $ | 91,363 | |||||
| Net interest and other income (1) (b) | $ | 44,875 | $ | 43,653 | $ | 49,116 | $ | 189,288 | $ | 149,075 | |||||
| Core net interest and other income (1) (d) | $ | 44,461 | $ | 44,045 | $ | 48,958 | $ | 189,806 | $ | 149,426 | |||||
| Efficiency ratio (a/b) | 65.55 | % | 67.73 | % | 60.27 | % | 61.84 | % | 67.75 | % | |||||
| Core efficiency ratio (c/d) | 65.43 | % | 66.32 | % | 59.30 | % | 60.58 | % | 61.14 | % | |||||
| Total Average Interest-Earnings Assets | $ | 4,299,135 | $ | 4,016,063 | $ | 3,714,828 | $ | 4,011,773 | $ | 3,145,743 | |||||
| Net Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net interest income | $ | 38,344 | $ | 37,294 | $ | 39,584 | $ | 153,884 | $ | 127,646 | |||||
| Loan discount accretion | (1,559 | ) | (1,511 | ) | (2,567 | ) | (7,750 | ) | (6,592 | ) | |||||
| Net interest income excluding loan discount accretion | $ | 36,785 | $ | 35,783 | $ | 37,017 | $ | 146,134 | $ | 121,054 | |||||
| Net interest margin (2) | 3.57 | % | 3.71 | % | 4.26 | % | 3.84 | % | 4.06 | % | |||||
| Net interest margin excluding loan discount accretion (2) | 3.42 | % | 3.56 | % | 3.99 | % | 3.64 | % | 3.85 | % | |||||
| Net interest spread | 3.38 | % | 3.51 | % | 4.03 | % | 3.65 | % | 3.77 | % | |||||
| Net interest spread excluding loan discount accretion | 3.24 | % | 3.36 | % | 3.75 | % | 3.45 | % | 3.56 | % | |||||
| (1) Excludes gains/losses on sales of securities. | |||||||||||||||
| --- | |||||||||||||||
| (2) Calculated utilizing a 30/360 day count convention. |
17
| Business First Bancshares, Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Measures | |||||||||
| (Unaudited) | |||||||||
| December 31, | September 30, | December 31, | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Dollars in thousands, except per share data) | 2021 | 2021 | 2020 | ||||||
| Total Shareholders' (Common) Equity: | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Total shareholders' equity | $ | 433,368 | $ | 430,221 | $ | 409,963 | |||
| Goodwill | (59,894 | ) | (60,062 | ) | (53,862 | ) | |||
| Core deposit and customer intangible | (12,203 | ) | (12,835 | ) | (9,734 | ) | |||
| Total tangible common equity | $ | 361,271 | $ | 357,324 | $ | 346,367 | |||
| Total Assets: | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Total assets | $ | 4,726,378 | $ | 4,405,217 | $ | 4,160,360 | |||
| Goodwill | (59,894 | ) | (60,062 | ) | (53,862 | ) | |||
| Core deposit and customer intangible | (12,203 | ) | (12,835 | ) | (9,734 | ) | |||
| Total tangible assets | $ | 4,654,281 | $ | 4,332,320 | $ | 4,096,764 | |||
| Common shares outstanding | 20,400,349 | 20,383,504 | 20,621,437 | ||||||
| Book value per common share | $ | 21.24 | $ | 21.11 | $ | 19.88 | |||
| Tangible book value per common share | $ | 17.71 | $ | 17.53 | $ | 16.80 | |||
| Common equity to total assets | 9.17 | % | 9.77 | % | 9.85 | % | |||
| Tangible common equity to tangible assets | 7.76 | % | 8.25 | % | 8.45 | % |
Image Exhibit
Exhibit 99.2
