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 23, 2024
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 23, 2024, Business First Bancshares, Inc. (“Business First”), the parent company of b1BANK, issued a press release announcing financial results for full year 2023 and quarter ended December 31, 2023. The release also announced that the Board of Directors of Business First declared a dividend on January 23, 2024, in the amount of $0.14 to the shareholders of record of the company on February 15, 2024. The dividend is to be paid on February 28, 2024, or as soon as practicable thereafter. Also, the board of directors declared a quarterly dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. The dividend will be paid on February 28, 2024, or as soon therefore as practicable, to the preferred shareholders of record as of February 15, 2024. 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 23, 2024, Business First made available the supplemental information attached hereto as Exhibit 99.2 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 January 23, 2024. |
| 99.2 | Business First Bancshares, Inc. Investor Presentation, Fiscal Year 2023 and Q4 2023 Results. |
| 104 | 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 23, 2024 | ||
|---|---|---|
| BUSINESS FIRST BANCSHARES, INC. | ||
| By: | /s/ David R. Melville, III | |
| David R. Melville, III | ||
| President and Chief Executive Officer |
ex_618039.htm
Exhibit 99.1
| 500 Laurel Street | |
|---|---|
| Baton Rouge, LA 70801 | |
| Phone: 877.614.7600 | |
| FOR IMMEDIATE RELEASE | Misty Albrecht |
| --- | --- |
| January 23, 2024 | b1BANK |
| 225.286.7879 | |
| Misty.Albrecht@b1BANK.com |
BUSINESS FIRST BANCSHARES, INC., ANNOUNCES FINANCIAL RESULTS FOR FISCAL YEAR 2023 AND Q4 2023
Baton Rouge, La. (January 23, 2024) – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the year ended December 31, 2023, including net income available to common shareholders of $65.6 million or $2.59 per diluted common share, increases of $12.7 million and $0.27, respectively, from the prior year ended December 31, 2022. On a non-GAAP basis, core net income for the year ended December 31, 2023, which excludes certain income and expenses, was $66.3 million or $2.62 per diluted common share, increases of $8.7 million and $0.10, respectively, from prior year ended December 31, 2022.
For the quarter ended December 31, 2023, Business First reported net income available to common shareholders of $14.5 million, or $0.57 per diluted common share, decreases of $4.6 million and $0.19, respectively, from the quarter ended September 30, 2023. On a non-GAAP basis, core net income for the quarter ended December 31, 2023, which excludes certain income and expenses, was $16.8 million or $0.66 per diluted common share, decreases of $1.1 million and $0.05, respectively, compared to the linked quarter.
“There have been very few years in our company’s life of which I’ve been prouder than I am of the year 2023,” said Jude Melville, president and CEO. “As our country generally, and banking specifically, faced the challenge of navigating swiftly moving economic currents, our team was a source of stability, performing consistently and well for our clients and our investors. We are a stronger organization and better bankers than we were at the beginning of the year, and I am excited to see that improvement continue over the course of 2024.”
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On Tuesday, January 23, 2024, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the fourth quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on February 28, 2024, or as soon thereafter as practicable, to the shareholders of record as of February 15, 2024.
Quarterly Highlights
| ● | Return on Assets and Equity. Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.88% and 10.54% for the quarter ended December 31, 2023, compared to 1.17% and 14.16%, respectively, for the linked quarter. Non-GAAP core return on average assets and common equity, each on an annualized basis, were 1.03% and 12.27% for the quarter ended December 31, 2023, compared to 1.10% and 13.32%, respectively, for the linked quarter. |
|---|---|
| ● | Credit Quality. The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets remained stable at 0.34% and 0.28% at December 31, 2023, increasing slightly from 0.33% and 0.27%, respectively, at September 30, 2023, due to an increase in nonaccrual loans. |
| --- | --- |
| ● | Security/Balance Sheet Repositioning. During the fourth quarter, Business First executed a balance sheet repositioning related to its available-for-sale (AFS) security portfolio. Business First sold $71.5 million or approximately 8.13% of the December 31, 2023, portfolio, in treasury, agency and municipal securities, with a weighted average book yield of 1.98%. Business First redeployed the proceeds into agency securities with an average book yield of 5.17%, locking in higher yields while keeping duration consistent with the overall portfolio weighted average life. The repositioning resulted in a loss of $2.5 million with an estimated earn back of 1.1 years as of December 31, 2023. |
| --- | --- |
| ● | Net Interest Margin. For the quarter ended December 31, 2023, net interest income totaled $53.8 million and net interest margin and net interest spread were 3.50% and 2.53%, respectively, compared to $55.3 million, 3.61% and 2.68% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.9 million) were 3.38% and 2.40%, respectively, for the quarter ended December 31, 2023, compared to 3.46% and 2.53% (excluding loan discount accretion of $2.4 million) for the linked quarter. |
| --- | --- |
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Statement of Financial Condition
Loans
Loans held for investment increased $72.5 million or 1.47%, 5.85% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the commercial and industrial (C&I) portfolio of $26.5 million and in the commercial real estate portfolio of $89.1 million, offset by a $39.0 million reduction in the construction and development (C&D) portfolio. Annual loan growth for fiscal year 2023, was $386.6 million or 8.39%.
The Dallas Fort Worth region produced 50.64% of net loan growth from the linked quarter based on unpaid principal balance, while the Greater New Orleans region produced 37.68%. Based on unpaid principal balances, Texas-based loans represent approximately 37% of the overall loan portfolio as of December 31, 2023.
Credit Quality
The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets remained stable at 0.34% and 0.28% at December 31, 2023, increasing slightly from 0.33% and 0.27%, respectively, at September 30, 2023, due to an increase in nonaccrual loans.
Securities
The securities portfolio increased $29.9 million or 3.51%, from the linked quarter. The increase was driven by positive fair value adjustments of $35.1 million. The securities portfolio, based on estimated fair value, represented 13.36% of total assets as of December 31, 2023.
During the fourth quarter, Business First executed a balance sheet repositioning related to its available-for-sale (“AFS”) security portfolio. Business First sold $71.5 million, or approximately 8.13% of the December 31, 2023, portfolio, in treasury, agency, and municipal securities, with a weighted average book yield of 1.98%. Business First re-deployed the proceeds into agency securities with an average book yield of 5.17%, locking in higher yields while keeping duration consistent with the overall portfolio weighted average life. The repositioning resulted in a loss of $2.5 million with an estimated earn back of 1.1 years as of December 31, 2023.
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Deposits
Deposits increased $58.1 million or 1.12%, 4.44% annualized, for the quarter ended December 31, 2023. Annual deposit growth for fiscal year 2023, was $428.4 million or 8.89%.
During the quarter ended December 31, 2023, noninterest-bearing deposits decreased $113.3 million or 8.02% and interest-bearing deposits increased $171.4 million or 4.54%, compared to the linked quarter, with certificate of deposit (CD) accounts declining $75.3 million or 5.47%. Money market accounts increased $160.3 million or 13.55% from the linked quarter.
Borrowings
Borrowings decreased $7.4 million or 1.16%, from the linked quarter due to a decline in repurchase agreements and repayments on a Federal Home Loan Bank (FHLB) term loan.
Shareholders’ Equity
Accumulated other comprehensive income (AOCI) improved $27.7 million during the fourth quarter due to positive after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $22.58 at December 31, 2023, compared to $21.01 at September 30, 2023, due to continued earnings growth and positive securities fair value adjustments. On a non-GAAP basis, tangible book value per common share increased to $18.62 at December 31, 2023, compared to $17.03 at September 30, 2023.
Results of Operations
Net Interest Income
For the quarter ended December 31, 2023, net interest income totaled $53.8 million, compared to $55.3 million from the linked quarter. Loan and interest-earning asset yields of 6.87% and 6.17%, respectively, increased 3 basis points and 7 basis points, respectively, compared to 6.84% and 6.10% from the linked quarter. Net interest margin and net interest spread were 3.50% and 2.53% compared to 3.61% and 2.68%, respectively, for the linked quarter. The overall cost of funds, which include noninterest-bearing deposits, increased from 2.59% to 2.79% or 20 basis points, from the linked quarter due to higher cost deposits and $30.8 million less in average noninterest bearing deposits.
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Non-GAAP net interest income (excluding loan discount accretion of $1.9 million) totaled $51.8 million for the quarter ended December 31, 2023, compared to $52.9 million (excluding loan discount accretion of $2.4 million) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.9 million) were 3.38% and 2.40%, respectively, for the quarter ended December 31, 2023, compared to 3.46% and 2.53% (excluding loan discount accretion of $2.4 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 8 basis points to 6.72% from 6.64%, and interest earnings asset yields increased 11 basis points to 6.05% from 5.94%, compared to the linked quarter.
Provision for Credit Losses
During the quarter ended December 31, 2023, Business First recorded a provision for credit losses of $119,000, compared to $604,000 for the linked quarter. The current quarter’s reserve decreased largely due to adjustments associated with various qualitative factors.
Other Income
For the quarter ended December 31, 2023, other income decreased $3.5 million or 35.11%, compared to the linked quarter. The net decrease was largely attributable to a $2.5 million loss on sale of securities due to Business First’s security repositioning initiative, a $1.0 million loss in equity investment income, and a $919,000 gain related to a branch sale which occurred during the linked quarter, partially offset by $964,000 of back-to-back customer swap fee income which occurred during the quarter.
Other Expenses
For the quarter ended December 31, 2023, other expenses increased by $1.1 million or 2.87%, compared to the linked quarter. The net increase was largely attributable to $654,000 in customer fraud/operational losses within other expense, $490,000 in other real estate owned expenses ($432,000 was related to a former bank premises), and an additional $466,000 in data processing costs compared to the linked quarter, offset by a reduction of $700,000 to the ad valorem shares tax expense.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.88% and 10.54% for the quarter ended December 31, 2023, compared to 1.17% and 14.16%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.03% and 12.27% for the quarter ended December 31, 2023, compared to 1.10% and 13.32%, respectively, for the linked quarter.
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Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Tuesday, January 23, 2024, at 4:30 p.m. Central time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 4061156, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/gctma4g8. The corresponding slide presentation can be assessed the day of the presentation on b1BANK’s website at https://www.b1bank.com/shareholder-info.
About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.6 billion in assets, $6.0 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP “core” measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Business First’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.
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Special Note Regarding Forward-Looking Statements
Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.
Additional Information
For additional information about Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.
No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
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| Business First Bancshares, Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Information | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, | September 30, | December 31, | |||||||
| (Dollars in thousands) | 2023 | 2023 | 2022 | ||||||
| Balance Sheet Ratios | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Loans (HFI) to Deposits | 95.12 | % | 94.79 | % | 95.56 | % | |||
| Shareholders' Equity to Assets Ratio | 9.78 | % | 9.31 | % | 9.69 | % | |||
| Loans Receivable Held for Investment (HFI) | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Commercial (1) | $ | 1,358,838 | $ | 1,332,384 | $ | 1,153,873 | |||
| Real Estate: | |||||||||
| Commercial | 2,217,928 | 2,128,855 | 2,020,406 | ||||||
| Construction | 669,798 | 708,835 | 722,074 | ||||||
| Residential | 682,394 | 686,921 | 656,378 | ||||||
| Total Real Estate | 3,570,120 | 3,524,611 | 3,398,858 | ||||||
| Consumer and Other | 63,827 | 63,278 | 53,445 | ||||||
| Total Loans (Held for Investment) | $ | 4,992,785 | $ | 4,920,273 | $ | 4,606,176 | |||
| Allowance for Loan Losses | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Balance, Beginning of Period | $ | 41,129 | $ | 42,013 | $ | 35,201 | |||
| Charge-offs – Quarterly | (1,039 | ) | (2,423 | ) | (387 | ) | |||
| Recoveries – Quarterly | 152 | 685 | 313 | ||||||
| Provision for Loan Losses – Quarterly | 172 | 854 | 3,051 | ||||||
| Balance, End of Period | $ | 40,414 | $ | 41,129 | $ | 38,178 | |||
| Allowance for Loan Losses to Total Loans (HFI) | 0.81 | % | 0.84 | % | 0.83 | % | |||
| Allowance for Credit Losses to Total Loans (HFI) (2) | 0.88 | % | 0.90 | % | 0.84 | % | |||
| Net Charge-offs (Recoveries) to Average Quarterly Total Loans | 0.02 | % | 0.04 | % | 0.00 | % | |||
| Remaining Loan Purchase Discount | $ | 12,286 | $ | 14,752 | $ | 27,000 | |||
| Nonperforming Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Nonperforming Loans: | |||||||||
| Nonaccrual Loans (1) | $ | 16,943 | $ | 16,029 | $ | 11,054 | |||
| Loans Past Due 90 Days or More (1) | 127 | 247 | 335 | ||||||
| Total Nonperforming Loans | 17,070 | 16,276 | 11,389 | ||||||
| Other Nonperforming Assets: | |||||||||
| Other Real Estate Owned | 1,685 | 1,558 | 1,372 | ||||||
| Other Nonperforming Assets | - | - | 62 | ||||||
| Total Other Nonperforming Assets | 1,685 | 1,558 | 1,434 | ||||||
| Total Nonperforming Assets | $ | 18,755 | $ | 17,834 | $ | 12,823 | |||
| Nonperforming Loans to Total Loans (HFI) | 0.34 | % | 0.33 | % | 0.25 | % | |||
| Nonperforming Assets to Total Assets | 0.28 | % | 0.27 | % | 0.21 | % | |||
| (1) 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 was currently accreting interest income over the expected life of the loans for the period ended December 31, 2023, in accordance with ASC 310-30. | |||||||||
| --- | |||||||||
| (2) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments. |
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| Business First Bancshares, Inc. | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Information | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, | September 30, | December 31, | December 31, | December 31, | |||||||||||
| (Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Per Share Data | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Basic Earnings per Common Share | $ | 0.58 | $ | 0.76 | $ | 0.68 | $ | 2.62 | $ | 2.34 | |||||
| Diluted Earnings per Common Share | 0.57 | 0.76 | 0.67 | 2.59 | 2.32 | ||||||||||
| Dividends per Common Share | 0.14 | 0.12 | 0.12 | 0.50 | 0.48 | ||||||||||
| Book Value per Common Share | 22.58 | 21.01 | 20.25 | 22.58 | 20.25 | ||||||||||
| Average Common Shares Outstanding | 25,116,688 | 25,111,548 | 24,542,120 | 25,079,106 | 22,633,478 | ||||||||||
| Average Diluted Common Shares Outstanding | 25,333,913 | 25,288,660 | 24,757,143 | 25,296,200 | 22,817,493 | ||||||||||
| End of Period Common Shares Outstanding | 25,351,809 | 25,344,168 | 25,110,313 | 25,351,209 | 25,110,313 | ||||||||||
| Annualized Performance Ratios | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Return to Common Shareholders on Average Assets (1) | 0.88 | % | 1.17 | % | 1.12 | % | 1.04 | % | 0.97 | % | |||||
| Return to Common Shareholders on Average Common Equity (1) | 10.54 | % | 14.16 | % | 13.56 | % | 12.36 | % | 11.59 | % | |||||
| Net Interest Margin (1) | 3.50 | % | 3.61 | % | 4.06 | % | 3.62 | % | 3.92 | % | |||||
| Net Interest Spread (1) | 2.53 | % | 2.68 | % | 3.43 | % | 2.72 | % | 3.57 | % | |||||
| Efficiency Ratio (2) | 63.36 | % | 59.23 | % | 59.60 | % | 61.61 | % | 65.26 | % | |||||
| Total Quarterly/Year-to-Date Average Assets | $ | 6,494,861 | $ | 6,474,935 | $ | 5,899,972 | $ | 6,341,880 | $ | 5,473,508 | |||||
| Total Quarterly/Year-to-Date Average Common Equity | 544,628 | 535,211 | 486,338 | 530,956 | 456,388 | ||||||||||
| Other Expenses | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and Employee Benefits | $ | 22,609 | $ | 22,487 | $ | 22,205 | $ | 90,611 | $ | 85,222 | |||||
| Occupancy and Bank Premises | 2,387 | 2,428 | 2,285 | 9,518 | 9,244 | ||||||||||
| Depreciation and Amortization | 1,647 | 1,690 | 1,700 | 6,767 | 6,853 | ||||||||||
| Data Processing | 2,490 | 2,024 | 2,201 | 9,034 | 8,358 | ||||||||||
| FDIC Assessment Fees | 841 | 779 | 611 | 3,645 | 2,854 | ||||||||||
| Legal and Other Professional Fees | 833 | 766 | 462 | 3,173 | 2,359 | ||||||||||
| Advertising and Promotions | 1,052 | 1,202 | 1,571 | 4,628 | 3,949 | ||||||||||
| Utilities and Communications | 700 | 758 | 759 | 2,899 | 3,193 | ||||||||||
| Ad Valorem Shares Tax | 265 | 965 | 962 | 3,160 | 3,400 | ||||||||||
| Directors' Fees | 262 | 278 | 270 | 1,079 | 972 | ||||||||||
| Other Real Estate Owned Expenses and Write-Downs | 504 | 14 | 11 | 687 | 193 | ||||||||||
| Merger and Conversion-Related Expenses | 63 | 2 | 138 | 236 | 4,808 | ||||||||||
| Other | 6,061 | 5,214 | 5,171 | 21,265 | 18,004 | ||||||||||
| Total Other Expenses | $ | 39,714 | $ | 38,607 | $ | 38,346 | $ | 156,702 | $ | 149,409 | |||||
| Other Income | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Service Charges on Deposit Accounts | $ | 2,470 | $ | 2,540 | $ | 2,265 | $ | 9,704 | $ | 8,272 | |||||
| Loss on Sales of Securities | (2,503 | ) | - | (2 | ) | (2,565 | ) | (48 | ) | ||||||
| Debit Card and ATM Fee Income | 1,793 | 1,581 | 1,582 | 6,590 | 6,407 | ||||||||||
| Bank-Owned Life Insurance Income | 572 | 604 | 526 | 2,247 | 1,931 | ||||||||||
| Gain on Sales of Loans | 546 | 321 | 59 | 1,972 | 574 | ||||||||||
| Mortgage Origination Income | 47 | 108 | 105 | 285 | 532 | ||||||||||
| Fees and Brokerage Commission | 1,710 | 1,933 | 1,760 | 7,247 | 6,964 | ||||||||||
| Gain on Sales of Other Real Estate Owned | 338 | 85 | 3 | 646 | 33 | ||||||||||
| Loss on Disposal of Other Assets | (1 | ) | (23 | ) | (1 | ) | (15 | ) | (717 | ) | |||||
| Gain on Sale of Branch | 13 | 932 | - | 945 | - | ||||||||||
| Gain on Extinguishment of Debt | - | 517 | - | 1,458 | - | ||||||||||
| Swap Fee Income | 964 | - | - | 964 | - | ||||||||||
| Pass-Through Income (Loss) from Other Investments | (1,028 | ) | (11 | ) | 608 | 1,946 | 1,347 | ||||||||
| Other | 1,492 | 1,296 | 1,373 | 5,218 | 4,015 | ||||||||||
| Total Other Income | $ | 6,413 | $ | 9,883 | $ | 8,278 | $ | 36,642 | $ | 29,310 | |||||
| (1) Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention. | |||||||||||||||
| --- | |||||||||||||||
| (2) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities. |
10
| Business First Bancshares, Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Consolidated Balance Sheets | |||||||||
| (Unaudited) | |||||||||
| December 31, | September 30, | December 31, | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Dollars in thousands) | 2023 | 2023 | 2022 | ||||||
| Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Cash and Due From Banks | $ | 226,110 | $ | 191,461 | $ | 152,740 | |||
| Federal Funds Sold | 151,134 | 196,616 | 15,606 | ||||||
| Securities Available for Sale, at Fair Values | 879,571 | 849,704 | 890,751 | ||||||
| Mortgage Loans Held for Sale | 835 | 652 | 304 | ||||||
| Loans and Lease Receivable | 4,992,785 | 4,920,273 | 4,606,176 | ||||||
| Allowance for Loan Losses | (40,414 | ) | (41,129 | ) | (38,178 | ) | |||
| Net Loans and Lease Receivable | 4,952,371 | 4,879,144 | 4,567,998 | ||||||
| Premises and Equipment, Net | 69,480 | 64,674 | 63,177 | ||||||
| Accrued Interest Receivable | 29,916 | 28,060 | 25,666 | ||||||
| Other Equity Securities | 33,942 | 32,591 | 37,467 | ||||||
| Other Real Estate Owned | 1,685 | 1,558 | 1,372 | ||||||
| Cash Value of Life Insurance | 96,478 | 95,906 | 91,958 | ||||||
| Deferred Taxes, Net | 27,323 | 34,660 | 31,194 | ||||||
| Goodwill | 88,391 | 88,391 | 88,543 | ||||||
| Core Deposit and Customer Intangibles | 11,895 | 12,418 | 14,042 | ||||||
| Other Assets | 15,419 | 12,946 | 9,642 | ||||||
| Total Assets | $ | 6,584,550 | $ | 6,488,781 | $ | 5,990,460 | |||
| Liabilities | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Deposits | |||||||||
| Noninterest-Bearing | $ | 1,299,090 | $ | 1,412,406 | $ | 1,549,381 | |||
| Interest-Bearing | 3,949,700 | 3,778,317 | 3,270,964 | ||||||
| Total Deposits | 5,248,790 | 5,190,723 | 4,820,345 | ||||||
| Securities Sold Under Agreements to Repurchase | 18,885 | 23,245 | 20,208 | ||||||
| Federal Funds Purchased | - | - | 14,057 | ||||||
| Bank Term Funding Program | 300,000 | 300,000 | - | ||||||
| Federal Home Loan Bank Borrowings | 211,198 | 214,184 | 410,100 | ||||||
| Subordinated Debt | 99,990 | 100,048 | 110,749 | ||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 5,000 | 5,000 | ||||||
| Accrued Interest Payable | 14,841 | 11,188 | 2,092 | ||||||
| Other Liabilities | 41,587 | 40,027 | 27,428 | ||||||
| Total Liabilities | 5,940,291 | 5,884,415 | 5,409,979 | ||||||
| Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Preferred Stock | 71,930 | 71,930 | 71,930 | ||||||
| Common Stock | 25,352 | 25,344 | 25,110 | ||||||
| Additional Paid-In Capital | 397,447 | 396,121 | 393,690 | ||||||
| Retained Earnings | 216,115 | 205,207 | 163,955 | ||||||
| Accumulated Other Comprehensive Loss | (66,585 | ) | (94,236 | ) | (74,204 | ) | |||
| Total Shareholders' Equity | 644,259 | 604,366 | 580,481 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 6,584,550 | $ | 6,488,781 | $ | 5,990,460 |
11
| 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) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest and Fees on Loans | $ | 85,761 | $ | 84,575 | $ | 69,364 | $ | 323,327 | $ | 218,032 | ||||
| Interest and Dividends on Securities | 5,193 | 5,053 | 4,316 | 20,125 | 16,503 | |||||||||
| Interest on Federal Funds Sold and Due From Banks | 3,711 | 3,694 | 825 | 9,875 | 1,579 | |||||||||
| Total Interest Income | 94,665 | 93,322 | 74,505 | 353,327 | 236,114 | |||||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest on Deposits | 34,190 | 30,110 | 13,307 | 106,908 | 24,413 | |||||||||
| Interest on Borrowings | 6,715 | 7,918 | 5,138 | 31,290 | 12,124 | |||||||||
| Total Interest Expense | 40,905 | 38,028 | 18,445 | 138,198 | 36,537 | |||||||||
| Net Interest Income | 53,760 | 55,294 | 56,060 | 215,129 | 199,577 | |||||||||
| Provision for Credit Losses | 119 | 604 | 3,051 | 4,483 | 10,886 | |||||||||
| Net Interest Income After Provision for Credit Losses | 53,641 | 54,690 | 53,009 | 210,646 | 188,691 | |||||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Service Charges on Deposit Accounts | 2,470 | 2,540 | 2,265 | 9,704 | 8,272 | |||||||||
| Loss on Sales of Securities | (2,503 | ) | - | (2 | ) | (2,565 | ) | (48 | ) | |||||
| Gain on Sales of Loans | 546 | 321 | 59 | 1,972 | 574 | |||||||||
| Other Income | 5,900 | 7,022 | 5,956 | 27,531 | 20,512 | |||||||||
| Total Other Income | 6,413 | 9,883 | 8,278 | 36,642 | 29,310 | |||||||||
| Other Expenses: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and Employee Benefits | 22,609 | 22,487 | 22,205 | 90,611 | 85,222 | |||||||||
| Occupancy and Equipment Expense | 5,301 | 5,445 | 4,918 | 20,859 | 19,367 | |||||||||
| Merger and Conversion-Related Expense | 63 | 2 | 138 | 236 | 4,808 | |||||||||
| Other Expenses | 11,741 | 10,673 | 11,085 | 44,996 | 40,012 | |||||||||
| Total Other Expenses | 39,714 | 38,607 | 38,346 | 156,702 | 149,409 | |||||||||
| Income Before Income Taxes | 20,340 | 25,966 | 22,941 | 90,586 | 68,592 | |||||||||
| Provision for Income Taxes | 4,516 | 5,511 | 4,974 | 19,543 | 14,337 | |||||||||
| Net Income | 15,824 | 20,455 | 17,967 | 71,043 | 54,255 | |||||||||
| Preferred Stock Dividends | 1,350 | 1,351 | 1,350 | 5,401 | 1,350 | |||||||||
| Net Income Available to Common Shareholders | $ | 14,474 | $ | 19,104 | $ | 16,617 | $ | 65,642 | $ | 52,905 |
12
| Business First Bancshares, Inc. | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Net Interest Margin | ||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, 2023 | September 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
| 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 | $ | 4,949,954 | $ | 85,761 | 6.87 | % | $ | 4,906,917 | $ | 84,575 | 6.84 | % | $ | 4,519,643 | $ | 69,364 | 6.09 | % | ||||||
| Securities | 865,372 | 5,193 | 2.38 | % | 885,792 | 5,053 | 2.26 | % | 901,236 | 4,316 | 1.90 | % | ||||||||||||
| Interest-Bearing Deposit in Other Banks | 271,004 | 3,711 | 5.43 | % | 278,420 | 3,694 | 5.26 | % | 62,013 | 825 | 5.28 | % | ||||||||||||
| Total Interest-Earning Assets | 6,086,330 | 94,665 | 6.17 | % | 6,071,129 | 93,322 | 6.10 | % | 5,482,892 | 74,505 | 5.39 | % | ||||||||||||
| Allowance for Loan Losses | (40,996 | ) | (42,120 | ) | (35,951 | ) | ||||||||||||||||||
| Noninterest-Earning Assets | 449,527 | 445,926 | 453,031 | |||||||||||||||||||||
| Total Assets | $ | 6,494,861 | $ | 94,665 | $ | 6,474,935 | $ | 93,322 | $ | 5,899,972 | $ | 74,505 | ||||||||||||
| Liabilities and Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||
| Interest-Bearing Deposits | $ | 3,816,474 | $ | 34,190 | 3.55 | % | $ | 3,703,682 | $ | 30,110 | 3.23 | % | $ | 3,157,513 | $ | 13,307 | 1.67 | % | ||||||
| Subordinated Debt | 100,009 | 1,320 | 5.24 | % | 100,400 | 1,363 | 5.39 | % | 110,800 | 1,363 | 4.88 | % | ||||||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 113 | 8.97 | % | 5,000 | 111 | 8.81 | % | 5,000 | 85 | 6.74 | % | ||||||||||||
| Bank Term Funding Program | 300,000 | 3,202 | 4.23 | % | 300,000 | 3,422 | 4.53 | % | - | - | 0.00 | % | ||||||||||||
| Advances from Federal Home Loan Bank (FHLB) | 213,280 | 1,947 | 3.62 | % | 284,930 | 2,875 | 4.00 | % | 436,233 | 3,555 | 3.23 | % | ||||||||||||
| First National Bankers Bank Line of Credit | - | - | 0.00 | % | - | - | 0.00 | % | 1,667 | 30 | 7.14 | % | ||||||||||||
| Other Borrowings | 20,772 | 133 | 2.54 | % | 23,542 | 147 | 2.48 | % | 25,815 | 105 | 1.61 | % | ||||||||||||
| Total Interest-Bearing Liabilities | 4,455,535 | 40,905 | 3.64 | % | 4,417,554 | 38,028 | 3.42 | % | 3,737,028 | 18,445 | 1.96 | % | ||||||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||||||||||
| Noninterest-Bearing Deposits | $ | 1,368,452 | $ | 1,399,293 | $ | 1,567,507 | ||||||||||||||||||
| Other Liabilities | 54,316 | 50,947 | 37,138 | |||||||||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,422,768 | 1,450,240 | 1,604,645 | |||||||||||||||||||||
| Shareholders' Equity: | ||||||||||||||||||||||||
| Common Shareholders' Equity | 544,628 | 535,211 | 486,338 | |||||||||||||||||||||
| Preferred Equity | 71,930 | 71,930 | 71,961 | |||||||||||||||||||||
| Total Shareholders' Equity | 616,558 | 607,141 | 558,299 | |||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 6,494,861 | $ | 6,474,935 | $ | 5,899,972 | ||||||||||||||||||
| Net Interest Spread | 2.53 | % | 2.68 | % | 3.43 | % | ||||||||||||||||||
| Net Interest Income | $ | 53,760 | $ | 55,294 | $ | 56,060 | ||||||||||||||||||
| Net Interest Margin | 3.50 | % | 3.61 | % | 4.06 | % | ||||||||||||||||||
| Overall Cost of Funds | 2.79 | % | 2.59 | % | 1.38 | % | ||||||||||||||||||
| NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention. | ||||||||||||||||||||||||
| --- |
13
| Business First Bancshares, Inc. | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Net Interest Margin | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Year Ended | ||||||||||||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| December 31, 2023 | December 31, 2022 | |||||||||||||||
| 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 | $ | 4,859,637 | $ | 323,327 | 6.65 | % | $ | 4,020,436 | $ | 218,032 | 5.42 | % | ||||
| Securities | 898,771 | 20,125 | 2.24 | % | 956,232 | 16,503 | 1.73 | % | ||||||||
| Interest-Bearing Deposit in Other Banks | 180,997 | 9,875 | 5.46 | % | 115,016 | 1,579 | 1.37 | % | ||||||||
| Total Interest-Earning Assets | 5,939,405 | 353,327 | 5.95 | % | 5,091,684 | 236,114 | 4.64 | % | ||||||||
| Allowance for Loan Losses | (41,665 | ) | (32,093 | ) | ||||||||||||
| Noninterest-Earning Assets | 444,140 | 413,917 | ||||||||||||||
| Total Assets | $ | 6,341,880 | $ | 353,327 | $ | 5,473,508 | $ | 236,114 | ||||||||
| Liabilities and Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest-Bearing Liabilities: | ||||||||||||||||
| Interest-Bearing Deposits | $ | 3,566,216 | $ | 106,908 | 3.00 | % | $ | 3,007,882 | $ | 24,413 | 0.81 | % | ||||
| Subordinated Debt | 105,369 | 5,323 | 5.05 | % | 106,054 | 5,108 | 4.82 | % | ||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 430 | 8.60 | % | 5,000 | 247 | 4.94 | % | ||||||||
| Bank Term Funding Program | 253,706 | 11,313 | 4.46 | % | - | - | 0.00 | % | ||||||||
| Advances from Federal Home Loan Bank (FHLB) | 329,726 | 13,702 | 4.16 | % | 271,025 | 6,479 | 2.39 | % | ||||||||
| First National Bankers Bank Line of Credit | - | - | 0.00 | % | 2,500 | 121 | 4.84 | % | ||||||||
| Other Borrowings | 21,825 | 522 | 2.39 | % | 23,197 | 169 | 0.73 | % | ||||||||
| Total Interest-Bearing Liabilities | 4,281,842 | 138,198 | 3.23 | % | 3,415,658 | 36,537 | 1.07 | % | ||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||
| Noninterest-Bearing Deposits | 1,412,979 | 1,539,938 | ||||||||||||||
| Other Liabilities | 44,173 | 37,533 | ||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,457,152 | 1,577,471 | ||||||||||||||
| Shareholders' Equity: | ||||||||||||||||
| Common Shareholders' Equity | 530,956 | 456,388 | ||||||||||||||
| Preferred Equity | 71,930 | 23,991 | ||||||||||||||
| Total Shareholders' Equity | 602,886 | 480,379 | ||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 6,341,880 | $ | 5,473,508 | ||||||||||||
| Net Interest Spread | 2.72 | % | 3.57 | % | ||||||||||||
| Net Interest Income | $ | 215,129 | $ | 199,577 | ||||||||||||
| Net Interest Margin | 3.62 | % | 3.92 | % | ||||||||||||
| Overall Cost of Funds | 2.43 | % | 0.74 | % | ||||||||||||
| NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention. | ||||||||||||||||
| --- |
14
| 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) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest income | $ | 94,665 | $ | 93,322 | $ | 74,505 | $ | 353,327 | $ | 236,114 | |||||
| Core interest income | 94,665 | 93,322 | 74,505 | 353,327 | 236,114 | ||||||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest expense | 40,905 | 38,028 | 18,445 | 138,198 | 36,537 | ||||||||||
| Core interest expense | 40,905 | 38,028 | 18,445 | 138,198 | 36,537 | ||||||||||
| Provision for Credit Losses: (b) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Provision for credit losses | 119 | 604 | 3,051 | 4,483 | 10,886 | ||||||||||
| Core provision expense | 119 | 604 | 3,051 | 4,483 | 10,886 | ||||||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other income | 6,413 | 9,883 | 8,278 | 36,642 | 29,310 | ||||||||||
| Losses on former bank premises and equipment | - | - | - | - | 717 | ||||||||||
| Losses on sale of securities | 2,503 | - | 2 | 2,565 | 48 | ||||||||||
| Insurance reimbursement of storm expenditures | - | - | (422 | ) | - | (687 | ) | ||||||||
| Gain on sale of branch | (13 | ) | (932 | ) | - | (945 | ) | - | |||||||
| Gain on extinguishment of debt | - | (517 | ) | - | (1,458 | ) | - | ||||||||
| Core other income | 8,903 | 8,434 | 7,858 | 36,804 | 29,388 | ||||||||||
| Other Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense | 39,714 | 38,607 | 38,346 | 156,702 | 149,409 | ||||||||||
| Acquisition-related expenses (2) | (63 | ) | (2 | ) | (138 | ) | (236 | ) | (5,178 | ) | |||||
| Write-down on former bank premises | (432 | ) | (432 | ) | |||||||||||
| Occupancy and bank premises - storm repair | - | - | - | - | (501 | ) | |||||||||
| Core other expense | 39,219 | 38,605 | 38,208 | 156,034 | 143,730 | ||||||||||
| Pre-Tax Income: (a) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Pre-tax income | 20,340 | 25,966 | 22,941 | 90,586 | 68,592 | ||||||||||
| Losses on former bank premises and equipment | - | - | - | - | 717 | ||||||||||
| Losses on sale of securities | 2,503 | - | 2 | 2,565 | 48 | ||||||||||
| Insurance reimbursement of storm expenditures | - | - | (422 | ) | - | (687 | ) | ||||||||
| Gain on sale of branch | (13 | ) | (932 | ) | - | (945 | ) | - | |||||||
| Gain on extinguishment of debt | - | (517 | ) | - | (1,458 | ) | - | ||||||||
| Acquisition-related expenses (2) | 63 | 2 | 138 | 236 | 5,178 | ||||||||||
| Write-down on former bank premises | 432 | 432 | |||||||||||||
| Occupancy and bank premises - storm repair | - | - | - | - | 501 | ||||||||||
| Core pre-tax income | 23,325 | 24,519 | 22,659 | 91,416 | 74,349 | ||||||||||
| Provision for Income Taxes: (1) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Provision for income taxes | 4,516 | 5,511 | 4,974 | 19,543 | 14,337 | ||||||||||
| Tax on losses on former bank premises and equipment | - | - | - | - | 151 | ||||||||||
| Tax on losses on sale of securities | 529 | - | - | 542 | 10 | ||||||||||
| Tax on insurance reimbursement of storm expenditures | - | - | (89 | ) | - | (144 | ) | ||||||||
| Tax on gain on sale of branch | (3 | ) | (197 | ) | - | (200 | ) | - | |||||||
| Tax on gain on extinguishment of debt | - | (109 | ) | - | (308 | ) | - | ||||||||
| Tax on acquisition-related expenses (2) | 1 | - | 29 | 21 | 942 | ||||||||||
| Tax on write-down on former bank premises | 91 | 91 | |||||||||||||
| Tax on occupancy and bank premises - storm repair | - | - | - | - | 106 | ||||||||||
| Core provision for income taxes | 5,134 | 5,205 | 4,914 | 19,689 | 15,402 | ||||||||||
| Preferred Dividends: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Preferred dividends | 1,350 | 1,351 | 1,350 | 5,401 | 1,350 | ||||||||||
| Core preferred dividends | 1,350 | 1,351 | 1,350 | 5,401 | 1,350 | ||||||||||
| Net Income Available to Common Shareholders: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net income available to common shareholders | 14,474 | 19,104 | 16,617 | 65,642 | 52,905 | ||||||||||
| Losses on former bank premises and equipment, net of tax | - | - | - | - | 566 | ||||||||||
| Losses on sale of securities, net of tax | 1,974 | - | 2 | 2,023 | 38 | ||||||||||
| Insurance reimbursement of storm expenditures, net of tax | - | - | (333 | ) | - | (543 | ) | ||||||||
| Gain on sale of branch, net of tax | (10 | ) | (735 | ) | - | (745 | ) | - | |||||||
| Gain on extinguishment of debt, net of tax | - | (408 | ) | - | (1,150 | ) | - | ||||||||
| Acquisition-related expenses (2), net of tax | 62 | 2 | 109 | 215 | 4,236 | ||||||||||
| Write-down on former bank premises, net of tax | 341 | 341 | |||||||||||||
| Occupancy and bank premises - storm repair, net of tax | - | - | - | - | 395 | ||||||||||
| Core net income available to common shareholders | $ | 16,841 | $ | 17,963 | $ | 16,395 | $ | 66,326 | $ | 57,597 | |||||
| Pre-tax, pre-provision earnings available to common shareholders (a+b) | $ | 20,459 | $ | 26,570 | $ | 25,992 | $ | 95,069 | $ | 79,478 | |||||
| Losses on former bank premises and equipment | - | - | - | - | 717 | ||||||||||
| Loss on sale of securities | 2,503 | - | 2 | 2,565 | 48 | ||||||||||
| Insurance reimbursement of storm expenditures | - | - | (422 | ) | - | (687 | ) | ||||||||
| Gain on sale of branch | (13 | ) | (932 | ) | - | (945 | ) | - | |||||||
| Gain on extinguishment of debt | - | (517 | ) | - | (1,458 | ) | - | ||||||||
| Acquisition-related expenses (2) | 63 | 2 | 138 | 236 | 5,178 | ||||||||||
| Write-down on former premises | 432 | 432 | |||||||||||||
| Occupancy and bank premises - storm repair | - | - | - | - | 501 | ||||||||||
| Core pre-tax, pre-provision earnings | $ | 23,444 | $ | 25,123 | $ | 25,710 | $ | 95,899 | $ | 85,235 | |||||
| Average Diluted Common Shares Outstanding | 25,333,913 | 25,288,660 | 24,757,143 | 25,296,200 | 22,817,493 | ||||||||||
| Diluted Earnings Per Common Share: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Diluted earnings per common share | $ | 0.57 | $ | 0.76 | $ | 0.67 | $ | 2.59 | $ | 2.32 | |||||
| Losses on former bank premises and equipment, net of tax | - | - | - | - | 0.02 | ||||||||||
| Loss on sale of securities, net of tax | 0.08 | - | - | 0.08 | - | ||||||||||
| Insurance reimbursement of storm expenditures, net of tax | - | - | (0.01 | ) | - | (0.02 | ) | ||||||||
| Gain on sale of branch, net of tax | (0.00 | ) | (0.03 | ) | - | (0.03 | ) | - | |||||||
| Gain on extinguishment of debt, net of tax | - | (0.02 | ) | - | (0.04 | ) | - | ||||||||
| Acquisition-related expenses (2), net of tax | 0.00 | - | - | 0.01 | 0.18 | ||||||||||
| Write-down on former premises, net of tax | 0.01 | 0.01 | |||||||||||||
| Occupancy and bank premises -storm repair, net of tax | - | - | - | - | 0.02 | ||||||||||
| Core diluted earnings per common share | $ | 0.66 | $ | 0.71 | $ | 0.66 | $ | 2.62 | $ | 2.52 | |||||
| Pre-tax, pre-provision profit diluted earnings per common share | $ | 0.81 | $ | 1.05 | $ | 1.05 | $ | 3.76 | $ | 3.48 | |||||
| Losses on former bank premises and equipment | - | - | - | - | 0.03 | ||||||||||
| Loss on sale of securities | 0.10 | - | - | 0.10 | - | ||||||||||
| Insurance reimbursement of storm expenditures | - | - | (0.02 | ) | - | (0.03 | ) | ||||||||
| Gain on sale of branch | (0.00 | ) | (0.04 | ) | - | (0.04 | ) | - | |||||||
| Gain on extinguishment of debt | - | (0.02 | ) | - | (0.06 | ) | - | ||||||||
| Acquisition-related expenses (2) | 0.00 | - | 0.01 | 0.01 | 0.23 | ||||||||||
| Write-down on former premises | 0.02 | 0.02 | |||||||||||||
| Occupancy and bank premises - storm repair | - | - | - | - | 0.03 | ||||||||||
| Core pre-tax, pre-provision diluted earnings per common share | $ | 0.93 | $ | 0.99 | $ | 1.04 | $ | 3.79 | $ | 3.74 | |||||
| (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2023 and 2022. These rates approximated the marginal tax rates. | |||||||||||||||
| --- | |||||||||||||||
| (2) Includes merger and conversion-related expenses and salary and employee benefits. |
15
| Business First Bancshares, Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Measures | |||||||||
| (Unaudited) | |||||||||
| December 31, | September 30, | December 31, | |||||||
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| (Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | ||||||
| Total Shareholders' (Common) Equity: | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Total shareholders' equity | $ | 644,259 | $ | 604,366 | $ | 580,481 | |||
| Preferred stock | (71,930 | ) | (71,930 | ) | (71,930 | ) | |||
| Total common shareholders' equity | 572,329 | 532,436 | 508,551 | ||||||
| Goodwill | (88,391 | ) | (88,391 | ) | (88,543 | ) | |||
| Core deposit and customer intangible | (11,895 | ) | (12,418 | ) | (14,042 | ) | |||
| Total tangible common equity | $ | 472,043 | $ | 431,627 | $ | 405,966 | |||
| Total Assets: | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Total assets | $ | 6,584,550 | $ | 6,488,781 | $ | 5,990,460 | |||
| Goodwill | (88,391 | ) | (88,391 | ) | (88,543 | ) | |||
| Core deposit and customer intangible | (11,895 | ) | (12,418 | ) | (14,042 | ) | |||
| Total tangible assets | $ | 6,484,264 | $ | 6,387,972 | $ | 5,887,875 | |||
| Common shares outstanding | 25,351,809 | 25,344,168 | 25,110,313 | ||||||
| Book value per common share | $ | 22.58 | $ | 21.01 | $ | 20.25 | |||
| Tangible book value per common share | $ | 18.62 | $ | 17.03 | $ | 16.17 | |||
| Common equity to total assets | 8.69 | % | 8.21 | % | 8.49 | % | |||
| Tangible common equity to tangible assets | 7.28 | % | 6.76 | % | 6.89 | % |
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) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Total Quarterly Average Assets | $ | 6,494,861 | $ | 6,474,935 | $ | 5,899,972 | $ | 6,341,880 | $ | 5,473,508 | |||||
| Total Quarterly Average Common Equity | $ | 544,628 | $ | 535,211 | $ | 486,338 | $ | 530,956 | $ | 456,388 | |||||
| Net Income Available to Common Shareholders: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net income available to common shareholders | $ | 14,474 | $ | 19,104 | $ | 16,617 | $ | 65,642 | $ | 52,905 | |||||
| Losses on former bank premises and equipment, net of tax | - | - | - | - | 566 | ||||||||||
| Losses on sale of securities, net of tax | 1,974 | - | 2 | 2,023 | 38 | ||||||||||
| Insurance reimbursement of storm expenditures, net of tax | - | - | (333 | ) | - | (543 | ) | ||||||||
| Gain on sale of branch, net of tax | (10 | ) | (735 | ) | - | (745 | ) | - | |||||||
| Gain on extinguishment of debt, net of tax | - | (408 | ) | - | (1,150 | ) | - | ||||||||
| Acquisition-related expenses, net of tax | 62 | 2 | 109 | 215 | 4,236 | ||||||||||
| Write-down on former bank premises, net of tax | 341 | - | - | 341 | - | ||||||||||
| Occupancy and bank premises - storm repair, net of tax | - | - | - | - | 395 | ||||||||||
| Core net income available to common shareholders | $ | 16,841 | $ | 17,963 | $ | 16,395 | $ | 66,326 | $ | 57,597 | |||||
| Return to common shareholders on average assets (annualized) (2) | 0.88 | % | 1.17 | % | 1.12 | % | 1.04 | % | 0.97 | % | |||||
| Core return on average assets (annualized) (2) | 1.03 | % | 1.10 | % | 1.10 | % | 1.05 | % | 1.05 | % | |||||
| Return to common shareholders on average common equity (annualized) (2) | 10.54 | % | 14.16 | % | 13.56 | % | 12.36 | % | 11.59 | % | |||||
| Core return on average common equity (annualized) (2) | 12.27 | % | 13.32 | % | 13.37 | % | 12.49 | % | 12.62 | % | |||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest income | $ | 94,665 | $ | 93,322 | $ | 74,505 | $ | 353,327 | $ | 236,114 | |||||
| Core interest income | 94,665 | 93,322 | 74,505 | 353,327 | 236,114 | ||||||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest expense | 40,905 | 38,028 | 18,445 | 138,198 | 36,537 | ||||||||||
| Core interest expense | 40,905 | 38,028 | 18,445 | 138,198 | 36,537 | ||||||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other income | 6,413 | 9,883 | 8,278 | 36,642 | 29,310 | ||||||||||
| Losses on former bank premises and equipment | - | - | - | - | 717 | ||||||||||
| Loss on sale of securities | 2,503 | - | 2 | 2,565 | 48 | ||||||||||
| Insurance reimbursement of storm expenditures | - | - | (422 | ) | - | (687 | ) | ||||||||
| Gain on sale of branch | (13 | ) | (932 | ) | - | (945 | ) | - | |||||||
| Gain on extinguishment of debt | - | (517 | ) | - | (1,458 | ) | - | ||||||||
| Core other income | 8,903 | 8,434 | 7,858 | 36,804 | 29,388 | ||||||||||
| Other Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense | 39,714 | 38,607 | 38,346 | 156,702 | 149,409 | ||||||||||
| Acquisition-related expenses | (63 | ) | (2 | ) | (138 | ) | (236 | ) | (5,178 | ) | |||||
| Write-down on former bank premises | (432 | ) | - | - | (432 | ) | - | ||||||||
| Occupancy and bank premises - storm repair | - | - | - | - | (501 | ) | |||||||||
| Core other expense | $ | 39,219 | $ | 38,605 | $ | 38,208 | $ | 156,034 | $ | 143,730 | |||||
| Efficiency Ratio: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense (a) | $ | 39,714 | $ | 38,607 | $ | 38,346 | $ | 156,702 | $ | 149,409 | |||||
| Core other expense (c) | $ | 39,219 | $ | 38,605 | $ | 38,208 | $ | 156,034 | $ | 143,730 | |||||
| Net interest and other income (1) (b) | $ | 62,676 | $ | 65,177 | $ | 64,340 | $ | 254,336 | $ | 228,935 | |||||
| Core net interest and other income (1) (d) | $ | 62,663 | $ | 63,728 | $ | 63,918 | $ | 251,933 | $ | 228,965 | |||||
| Efficiency ratio (a/b) | 63.36 | % | 59.23 | % | 59.60 | % | 61.61 | % | 65.26 | % | |||||
| Core efficiency ratio (c/d) | 62.59 | % | 60.58 | % | 59.78 | % | 61.93 | % | 62.77 | % | |||||
| Total Average Interest-Earnings Assets | $ | 6,086,330 | $ | 6,071,129 | $ | 5,482,892 | $ | 5,939,405 | $ | 5,091,684 | |||||
| Net Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net interest income | $ | 53,760 | $ | 55,294 | $ | 56,060 | $ | 215,129 | $ | 199,577 | |||||
| Loan discount accretion | (1,921 | ) | (2,419 | ) | (4,212 | ) | (9,311 | ) | (9,432 | ) | |||||
| Net interest income excluding loan discount accretion | $ | 51,839 | $ | 52,875 | $ | 51,848 | $ | 205,818 | $ | 190,145 | |||||
| Net interest margin (2) | 3.50 | % | 3.61 | % | 4.06 | % | 3.62 | % | 3.92 | % | |||||
| Net interest margin excluding loan discount accretion (2) | 3.38 | % | 3.46 | % | 3.75 | % | 3.47 | % | 3.73 | % | |||||
| Net interest spread (2) | 2.53 | % | 2.68 | % | 3.43 | % | 2.72 | % | 3.57 | % | |||||
| Net interest spread excluding loan discount accretion (2) | 2.40 | % | 2.53 | % | 3.13 | % | 2.56 | % | 3.38 | % | |||||
| (1) Excludes gains/losses on sales of securities. | |||||||||||||||
| --- | |||||||||||||||
| (2) Calculated utilizing an Actual/365 day count convention. |
Image Exhibit
Exhibit 99.2
