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): October 26, 2023
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 October 26, 2023, Business First Bancshares, Inc. (“Business First”), the parent company of b1BANK, issued a press release announcing financial results for the quarter ended September 30, 2023. The release also announced that the Board of Directors of Business First declared a preferred dividend on October 26, 2023, 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 November 30, 2023, or as soon therefore as practicable, to the preferred shareholders of record as of November 15, 2023. Also, the board of directors declared a quarterly common dividend in the amount of $0.14. The dividend will be paid on November 30, 2023, or as soon therefore as practicable, to the common shareholders of record as of November 15, 2023. 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 October 26, 2023, 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 October 26, 2023. |
| 99.2 | Business First Bancshares, Inc. Investor Presentation, Q3 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: October 26, 2023
| BUSINESS FIRST BANCSHARES, INC. | |
|---|---|
| By: | /s/ David R. Melville, III |
| David R. Melville, III | |
| President and Chief Executive Officer |
ex_584917.htm
Exhibit 99.1
| 500 Laurel Street<br><br> <br>Baton Rouge, LA 70801<br><br> <br>Phone: 877.614.7600 | |
|---|---|
| FOR IMMEDIATE RELEASE<br><br> <br>October 26, 2023 | Misty Albrecht<br><br> <br>b1BANK<br><br> <br>225.286.7879<br><br> <br>Misty.Albrecht@b1BANK.com |
| --- | --- |
BUSINESS FIRST BANCSHARES, INC., ANNOUNCES FINANCIAL RESULTS FOR Q3 2023
Baton Rouge, La. (October 26, 2023) – Business First Bancshares, Inc. (Nasdaq: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended September 30, 2023, including net income available to common shareholders of $19.1 million, or $0.76 per diluted common share, increases of $0.7 million and $0.03, respectively, from the linked quarter, and increases of $5.3 million and $0.15, respectively, from the quarter ended September 30, 2022. On a non-GAAP basis, core net income for the quarter ended September 30, 2023, which excludes certain income and expenses, was $18.0 million, or $0.71 per diluted common share, increases of $0.2 million and $0.01, respectively, from the linked quarter, and an increase of $1.6 million and decrease of $0.01, respectively, from the quarter ended September 30, 2022.
“In the third quarter we again delivered solid fundamental shareholder-oriented operating performance,” said b1BANK President & CEO Jude Melville. “We increased per share tangible book value and per share core earnings by exercising cost discipline, protected our margin while strengthening our core deposit base, and continued maintaining excellent asset quality. We are pleased to be in position to increase our dividend for the fifth consecutive year, rewarding shareholders for sticking with us through uncertain times.”
On October 26, 2023, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the third quarter in the amount of $0.14 per share, an increase of $0.02 compared to prior quarter. The preferred and common dividends will be paid on November 30, 2023, or as soon thereafter as practicable, to the shareholders of record as of November 15, 2023.
Quarterly Highlights
| ● | Return on Assets and Equity. Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.17% and 14.16%, respectively, for the quarter ended September 30, 2023, compared to 1.18% and 13.99%, respectively, for the linked quarter. Non-GAAP core return on average assets and common equity, each on an annualized basis, were 1.10% and 13.32%, respectively, for the quarter ended September 30, 2023, compared to 1.13% and 13.50%, respectively, for the linked quarter. |
|---|---|
| ● | Credit Quality. Credit performance remains strong from the linked quarter. The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets were 0.33% and 0.27%, respectively, at September 30, 2023, compared to 0.36% and 0.30% at June 30, 2023. |
| --- | --- |
| ● | Net Interest Margin. For the quarter ended September 30, 2023, net interest income totaled $55.3 million and net interest margin and net interest spread were 3.61% and 2.68%, respectively, compared to $53.3 million, 3.63% and 2.75% for the quarter ended June 30, 2023. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.4 million) were 3.46% and 2.53%, respectively, for the quarter ended September 30, 2023, compared to 3.49% and 2.61% (excluding loan discount accretion of $2.1 million) for the quarter ended June 30, 2023. Compared to the linked quarter, net interest margin excluding loan discount accretion declined due to the cost of excess on-balance sheet liquidity. |
| --- | --- |
| ● | Deposits. Deposits increased $176.3 million or 3.52%, 13.95% annualized, for the quarter ended September 30, 2023, compared to the linked quarter. Excluding the $16.3 million of deposits transferred in connection with the sale of the Leesville Banking Center during the quarter, deposits increased $192.6 million or 3.84%, 15.24% annualized. |
| --- | --- |
| ● | Loans. Loans held for investment increased $21.5 million or 0.44%, 1.74% annualized, from the linked quarter. |
| --- | --- |
2
Statement of Financial Condition
Loans
Loans held for investment increased $21.5 million or 0.44%, 1.74% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributed to net growth in the commercial and industrial (C&I) portfolio of $23.2 million and in the residential real estate portfolio of $11.5 million, offset by a $10.2 million reduction in the construction and development (C&D) portfolio. Year-to-date loan growth through September 30, 2023, was $314.1 million, 6.82% or 9.12% annualized.
Based on unpaid principal balances, Texas-based loans represent approximately 37% of the overall loan portfolio as of September 30, 2023.
Credit Quality
The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets improved from 0.36% and 0.30%, respectively, at June 30, 2023, to 0.33% and 0.27% at September 30, 2023. The improvement was largely attributable to the resolution of two nonaccrual loans through current period charge-offs of $2.4 million. Both loans were previously assessed by management for credit losses and fully reserved. The reduction was offset by slight increases in nonaccrual relationships.
Securities
The securities portfolio decreased $28.1 million or 3.20%, from the linked quarter. The decrease was the impact of negative fair value adjustments, $16.4 million, and net security paydowns and maturities during the quarter. The securities portfolio, based on estimated fair value, represented 13.09% of total assets as of September 30, 2023.
Deposits
Deposits increased $176.3 million or 3.52%, 13.95% annualized, for the quarter ended September 30, 2023. The increase was primarily attributable to the $126.2 million growth in certificate of deposit (CD) portfolio. Excluding the $16.3 million of deposits transferred in connection with the sale of the Leesville Banking Center during the quarter, deposits increased $192.6 million or 3.84%, 15.24% annualized.
Noninterest-bearing deposits decreased $17.0 million or 1.19% and interest-bearing deposits increased $193.3 million or 5.39%, compared to the linked quarter. Transactional deposits, interest bearing deposits excluding CDs, increased $67.1 million, largely attributable to a $42.5 million increase in the financial institutions group’s (FIG) deposit portfolio.
3
Year-to-date deposit growth through September 30, 2023, was $370.4 million or 7.68%, or 10.27% annualized. Excluding brokered deposits of $250.4 million at December 31, 2022, and $460.4 million at September 30, 2023, and the $16.3 million of deposits transferred in connection with the Leesville banking center sale, deposit growth was $176.7 million or 3.87%, or 5.17% annualized through September 30, 2023.
Borrowings
Borrowings decreased $151.7 million, or 19.11%, from the linked quarter. Short-term Federal Home Loan Bank (FHLB) borrowings were replaced with interest bearing deposits. During the quarter, the bank extinguished the remaining $3.2 million balance of the $8.9 million subordinated debt redeemed on May 1, 2023. The extinguishment resulted in a $517,000 gain for the quarter ended September 30, 2023.
Shareholders’ Equity
Accumulated other comprehensive income (AOCI) decreased $12.9 million due to negative after-tax fair value adjustments in the securities portfolio. Book value per common share nonetheless increased to $21.01 at September 30, 2023, compared to $20.87 at June 30, 2023, due to continued earnings growth. On a non-GAAP basis, tangible book value per common share increased to $17.03 at September 30, 2023, compared to $16.87 at June 30, 2023.
Results of Operations
Net Interest Income
For the quarter ended June 30, 2023, net interest income totaled $55.3 million, compared to $53.3 million from the linked quarter. Loan and interest-earning asset yields of 6.84% and 6.10%, respectively, increased 30 basis points and 26 basis points, respectively, compared to 6.54% and 5.84% from the linked quarter. The increases were largely attributable to loan repricing and higher yields on new originations. Net interest margin and net interest spread were 3.61% and 2.68%, respectively, compared to 3.63% and 2.75%, respectively, for the linked quarter. The overall cost of funds, which include noninterest-bearing deposits, increased from 2.31% to 2.59% or 28 basis points, from the linked quarter due largely to higher cost deposits.
Non-GAAP net interest income (excluding loan discount accretion of $2.4 million) totaled $52.9 million for the quarter ended September 30, 2023, compared to $51.3 million (excluding loan discount accretion of $2.1 million) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.4 million) were 3.46% and 2.53%, respectively, for the quarter ended September 30, 2023, compared to 3.49% and 2.61% (excluding loan discount accretion of $2.1 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 28 basis points to 6.64% from 6.37% and interest earnings asset yields increased 24 basis points to 5.94% from 5.70%, compared to the linked quarter.
4
Provision for Credit Losses
During the quarter ended September 30, 2023, Business First recorded a provision for credit losses of $604,000, compared to $538,000 for the linked quarter. The current quarter’s reserve increased due to qualitative adjustments related to certain commercial real estate (CRE) portfolios and industry wide concerns about the CRE sector, partially offset by lower reserves for unfunded commitments due to declines in the related unfunded balances.
Other Income
For the quarter ended September 30, 2023, other income decreased $2.1 million or 17.35%, compared to the linked quarter. The net decrease was largely attributable to a $2.8 million decrease in equity investment income compared to the linked quarter, partially offset by a $932,000 gain on sale attributable to the Leesville Banking Center sale during the quarter.
Other Expenses
For the quarter ended September 30, 2023, other expenses decreased by $1.1 million, or 2.76%, compared to the linked quarter. The net decrease was largely attributable to a $1.0 million decrease in data processing charges, attributable to $508,000 of debit/credit card expense sharing incentives received, as well as $715,000 in additional data charges incurred during the linked quarter due to a billing error identified by our data processor which did not reoccur during the current quarter.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.17% and 14.16%, respectively, for the quarter ended September 30, 2023, compared to 1.18% and 13.99%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.10% and 13.32%, respectively, for the quarter ended September 30, 2022, compared to 1.13% and 13.50%, respectively, for the linked quarter.
5
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Thursday, October 26, at 4:30 p.m. CDT. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 4515523, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/87me6od9. The corresponding slide presentation can be accessed 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 $6.5 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.
6
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.
7
Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
| Three Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | |||||||
| (Dollars in thousands) | 2023 | 2023 | 2022 | ||||||
| Balance Sheet Ratios | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Loans (HFI) to Deposits | 94.79 | % | 97.69 | % | 96.59 | % | |||
| Shareholders' Equity to Assets Ratio | 9.31 | % | 9.31 | % | 8.75 | % | |||
| Loans Receivable Held for Investment (HFI) | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Commercial (1) | $ | 1,332,384 | $ | 1,309,222 | $ | 1,080,349 | |||
| Real Estate: | |||||||||
| Commercial | 2,128,855 | 2,132,044 | 2,014,237 | ||||||
| Construction | 708,835 | 719,080 | 636,869 | ||||||
| Residential | 686,921 | 675,462 | 647,936 | ||||||
| Total Real Estate | 3,524,611 | 3,526,586 | 3,299,042 | ||||||
| Consumer and Other | 63,278 | 62,929 | 50,509 | ||||||
| Total Loans (Held for Investment) | $ | 4,920,273 | $ | 4,898,737 | $ | 4,429,900 | |||
| Allowance for Loan Losses | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Balance, Beginning of Period | $ | 42,013 | $ | 41,830 | $ | 32,317 | |||
| Charge-offs – Quarterly | (2,423 | ) | (689 | ) | (667 | ) | |||
| Recoveries – Quarterly | 685 | 104 | 278 | ||||||
| Provision for Loan Losses – Quarterly | 854 | 768 | 3,273 | ||||||
| Balance, End of Period | $ | 41,129 | $ | 42,013 | $ | 35,201 | |||
| Allowance for Loan Losses to Total Loans (HFI) | 0.84 | % | 0.86 | % | 0.79 | % | |||
| Allowance for Credit Losses to Total Loans (HFI) (2) | 0.90 | % | 0.93 | % | 0.81 | % | |||
| Net Charge-offs to Average Quarterly Total Loans | 0.04 | % | 0.01 | % | 0.01 | % | |||
| Remaining Loan Purchase Discount | $ | 14,752 | $ | 17,171 | $ | 36,089 | |||
| Nonperforming Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Nonperforming Loans: | |||||||||
| Nonaccrual Loans (1) | $ | 16,029 | $ | 17,006 | $ | 9,843 | |||
| Loans Past Due 90 Days or More (1) | 247 | 468 | 1,121 | ||||||
| Total Nonperforming Loans | 16,276 | 17,474 | 10,964 | ||||||
| Other Nonperforming Assets: | |||||||||
| Other Real Estate Owned | 1,558 | 1,587 | 840 | ||||||
| Other Nonperforming Assets | - | 29 | 180 | ||||||
| Total Other Nonperforming Assets | 1,558 | 1,616 | 1,020 | ||||||
| Total Nonperforming Assets | $ | 17,834 | $ | 19,090 | $ | 11,984 | |||
| Nonperforming Loans to Total Loans (HFI) | 0.33 | % | 0.36 | % | 0.25 | % | |||
| Nonperforming Assets to Total Assets | 0.27 | % | 0.30 | % | 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 September 30, 2022, 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 | Nine Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
| (Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Per Share Data | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Basic Earnings per Common Share | $ | 0.76 | $ | 0.73 | $ | 0.61 | $ | 2.04 | $ | 1.65 | |||||
| Diluted Earnings per Common Share | 0.76 | 0.73 | 0.61 | 2.02 | 1.64 | ||||||||||
| Dividends per Common Share | 0.12 | 0.12 | 0.12 | 0.36 | 0.36 | ||||||||||
| Book Value per Common Share | 21.01 | 20.87 | 19.29 | 21.01 | 19.29 | ||||||||||
| Average Common Shares Outstanding | 25,111,548 | 25,101,683 | 22,468,939 | 25,064,856 | 21,990,273 | ||||||||||
| Average Diluted Common Shares Outstanding | 25,288,660 | 25,333,372 | 22,650,640 | 25,281,908 | 22,163,952 | ||||||||||
| End of Period Common Shares Outstanding | 25,344,168 | 25,344,168 | 22,605,136 | 25,344,168 | 22,605,136 | ||||||||||
| Annualized Performance Ratios | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Return to Common Shareholders on Average Assets (1) | 1.17 | % | 1.18 | % | 0.96 | % | 1.09 | % | 0.91 | % | |||||
| Return to Common Shareholders on Average Common Equity (1) | 14.16 | % | 13.99 | % | 12.37 | % | 13.00 | % | 10.87 | % | |||||
| Net Interest Margin (1) | 3.61 | % | 3.63 | % | 4.01 | % | 3.66 | % | 3.87 | % | |||||
| Net Interest Spread (1) | 2.68 | % | 2.75 | % | 3.65 | % | 2.79 | % | 3.62 | % | |||||
| Efficiency Ratio (2) | 59.23 | % | 60.76 | % | 66.47 | % | 61.04 | % | 67.48 | % | |||||
| Total Quarterly/Year-to-Date Average Assets | $ | 6,474,935 | $ | 6,274,656 | $ | 5,702,312 | $ | 6,290,886 | $ | 5,331,352 | |||||
| Total Quarterly/Year-to-Date Average Common Equity | 535,211 | 527,325 | 442,778 | 526,398 | 446,403 | ||||||||||
| Other Expenses | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and Employee Benefits | $ | 22,487 | $ | 22,339 | $ | 21,906 | $ | 68,002 | $ | 63,017 | |||||
| Occupancy and Bank Premises | 2,428 | 2,406 | 2,485 | 7,131 | 6,959 | ||||||||||
| Depreciation and Amortization | 1,690 | 1,720 | 1,850 | 5,120 | 5,153 | ||||||||||
| Data Processing | 2,024 | 3,035 | 2,155 | 6,544 | 6,157 | ||||||||||
| FDIC Assessment Fees | 779 | 1,092 | 839 | 2,804 | 2,243 | ||||||||||
| Legal and Other Professional Fees | 766 | 961 | 619 | 2,340 | 1,897 | ||||||||||
| Advertising and Promotions | 1,202 | 1,226 | 1,144 | 3,576 | 2,378 | ||||||||||
| Utilities and Communications | 758 | 720 | 833 | 2,199 | 2,434 | ||||||||||
| Ad Valorem Shares Tax | 965 | 965 | 813 | 2,895 | 2,438 | ||||||||||
| Directors' Fees | 278 | 270 | 288 | 817 | 702 | ||||||||||
| Other Real Estate Owned Expenses and Write-Downs | 14 | 39 | 133 | 183 | 182 | ||||||||||
| Merger and Conversion-Related Expenses | 2 | 68 | 3,244 | 173 | 4,670 | ||||||||||
| Other | 5,214 | 4,861 | 4,637 | 15,204 | 12,833 | ||||||||||
| Total Other Expenses | $ | 38,607 | $ | 39,702 | $ | 40,946 | $ | 116,988 | $ | 111,063 | |||||
| Other Income | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Service Charges on Deposit Accounts | $ | 2,540 | $ | 2,413 | $ | 2,116 | $ | 7,234 | $ | 6,007 | |||||
| Loss on Sales of Securities | - | (61 | ) | (7 | ) | (62 | ) | (46 | ) | ||||||
| Debit Card and ATM Fee Income | 1,581 | 1,646 | 1,667 | 4,797 | 4,825 | ||||||||||
| Bank-Owned Life Insurance Income | 604 | 547 | 561 | 1,675 | 1,405 | ||||||||||
| Gain on Sales of Loans | 321 | 494 | 264 | 1,426 | 515 | ||||||||||
| Mortgage Origination Income | 108 | 56 | 57 | 238 | 427 | ||||||||||
| Fees and Brokerage Commission | 1,933 | 1,791 | 1,620 | 5,537 | 5,204 | ||||||||||
| Gain on Sales of Other Real Estate Owned | 85 | 14 | 12 | 308 | 30 | ||||||||||
| Gain (Loss) on Disposal of Other Assets | (23 | ) | 14 | 1 | (14 | ) | (716 | ) | |||||||
| Gain on Sale of Branch | 932 | - | - | 932 | - | ||||||||||
| Gain on Extinguishment of Debt | 517 | 941 | - | 1,458 | - | ||||||||||
| Pass-Through Income (Loss) from Other Investments | (11 | ) | 2,812 | 572 | 2,974 | 739 | |||||||||
| Other | 1,296 | 1,291 | 1,252 | 3,726 | 2,642 | ||||||||||
| Total Other Income | $ | 9,883 | $ | 11,958 | $ | 8,115 | $ | 30,229 | $ | 21,032 |
(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.
9
Business First Bancshares, Inc.
Consolidated Balance Sheets
(Unaudited)
| September 30, | June 30, | September 30, | |||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands) | 2023 | 2023 | 2022 | ||||||
| Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Cash and Due From Banks | $ | 191,461 | $ | 180,972 | $ | 152,671 | |||
| Federal Funds Sold | 196,616 | 173,850 | 11,137 | ||||||
| Securities Available for Sale, at Fair Values | 849,704 | 877,774 | 884,960 | ||||||
| Mortgage Loans Held for Sale | 652 | 435 | 545 | ||||||
| Loans and Lease Receivable | 4,920,273 | 4,898,737 | 4,429,900 | ||||||
| Allowance for Loan Losses | (41,129 | ) | (42,013 | ) | (35,201 | ) | |||
| Net Loans and Lease Receivable | 4,879,144 | 4,856,724 | 4,394,699 | ||||||
| Premises and Equipment, Net | 64,674 | 63,037 | 63,765 | ||||||
| Accrued Interest Receivable | 28,060 | 26,861 | 22,454 | ||||||
| Other Equity Securities | 32,591 | 34,824 | 39,390 | ||||||
| Other Real Estate Owned | 1,558 | 1,587 | 840 | ||||||
| Cash Value of Life Insurance | 95,906 | 95,302 | 88,743 | ||||||
| Deferred Taxes, Net | 34,660 | 31,553 | 36,691 | ||||||
| Goodwill | 88,391 | 88,543 | 88,543 | ||||||
| Core Deposit and Customer Intangibles | 12,418 | 12,993 | 14,567 | ||||||
| Other Assets | 12,946 | 10,194 | 7,686 | ||||||
| Total Assets | $ | 6,488,781 | $ | 6,454,649 | $ | 5,806,691 | |||
| Liabilities | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Deposits | |||||||||
| Noninterest-Bearing | $ | 1,412,406 | $ | 1,429,376 | $ | 1,613,310 | |||
| Interest-Bearing | 3,778,317 | 3,585,067 | 2,972,795 | ||||||
| Total Deposits | 5,190,723 | 5,014,443 | 4,586,105 | ||||||
| Securities Sold Under Agreements to Repurchase | 23,245 | 23,230 | 22,072 | ||||||
| Federal Funds Purchased | - | - | - | ||||||
| Short-Term Borrowings | 9 | 9 | 5,009 | ||||||
| Bank Term Funding Program | 300,000 | 300,000 | - | ||||||
| Federal Home Loan Bank Borrowings | 214,184 | 362,162 | 534,059 | ||||||
| Subordinated Debt | 100,048 | 103,822 | 110,902 | ||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 5,000 | 5,000 | ||||||
| Accrued Interest Payable | 11,188 | 7,666 | 1,023 | ||||||
| Other Liabilities | 40,018 | 37,349 | 34,519 | ||||||
| Total Liabilities | 5,884,415 | 5,853,681 | 5,298,689 | ||||||
| Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Preferred Stock | 71,930 | 71,930 | 72,010 | ||||||
| Common Stock | 25,344 | 25,344 | 22,605 | ||||||
| Additional Paid-In Capital | 396,121 | 395,875 | 347,721 | ||||||
| Retained Earnings | 205,207 | 189,115 | 150,336 | ||||||
| Accumulated Other Comprehensive Loss | (94,236 | ) | (81,296 | ) | (84,670 | ) | |||
| Total Shareholders' Equity | 604,366 | 600,968 | 508,002 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 6,488,781 | $ | 6,454,649 | $ | 5,806,691 |
10
Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
| (Dollars in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest and Fees on Loans | $ | 84,575 | $ | 79,223 | $ | 58,846 | $ | 237,566 | $ | 148,668 | |||||
| Interest and Dividends on Securities | 5,053 | 5,097 | 4,200 | 14,932 | 12,187 | ||||||||||
| Interest on Federal Funds Sold and Due From Banks | 3,694 | 1,528 | 427 | 6,164 | 754 | ||||||||||
| Total Interest Income | 93,322 | 85,848 | 63,473 | 258,662 | 161,609 | ||||||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest on Deposits | 30,110 | 23,680 | 6,286 | 72,718 | 11,106 | ||||||||||
| Interest on Borrowings | 7,918 | 8,842 | 3,707 | 24,575 | 6,986 | ||||||||||
| Total Interest Expense | 38,028 | 32,522 | 9,993 | 97,293 | 18,092 | ||||||||||
| Net Interest Income | 55,294 | 53,326 | 53,480 | 161,369 | 143,517 | ||||||||||
| Provision for Credit Losses | 604 | 538 | 3,273 | 4,364 | 7,835 | ||||||||||
| Net Interest Income After Provision for Credit Losses | 54,690 | 52,788 | 50,207 | 157,005 | 135,682 | ||||||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Service Charges on Deposit Accounts | 2,540 | 2,413 | 2,116 | 7,234 | 6,007 | ||||||||||
| Loss on Sales of Securities | - | (61 | ) | (7 | ) | (62 | ) | (46 | ) | ||||||
| Gain on Sales of Loans | 321 | 494 | 264 | 1,426 | 515 | ||||||||||
| Other Income | 7,022 | 9,112 | 5,742 | 21,631 | 14,556 | ||||||||||
| Total Other Income | 9,883 | 11,958 | 8,115 | 30,229 | 21,032 | ||||||||||
| Other Expenses: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Salaries and Employee Benefits | 22,487 | 22,339 | 21,906 | 68,002 | 63,017 | ||||||||||
| Occupancy and Equipment Expense | 5,445 | 5,112 | 5,122 | 15,558 | 14,449 | ||||||||||
| Merger and Conversion-Related Expense | 2 | 68 | 3,244 | 173 | 4,670 | ||||||||||
| Other Expenses | 10,673 | 12,183 | 10,674 | 33,255 | 28,927 | ||||||||||
| Total Other Expenses | 38,607 | 39,702 | 40,946 | 116,988 | 111,063 | ||||||||||
| Income Before Income Taxes | 25,966 | 25,044 | 17,376 | 70,246 | 45,651 | ||||||||||
| Provision for Income Taxes | 5,511 | 5,305 | 3,576 | 15,027 | 9,363 | ||||||||||
| Net Income | 20,455 | 19,739 | 13,800 | 55,219 | 36,288 | ||||||||||
| Preferred Stock Dividends | (1,351 | ) | (1,350 | ) | - | (4,051 | ) | - | |||||||
| Net Income Available to Common Shareholders | $ | 19,104 | $ | 18,389 | $ | 13,800 | $ | 51,168 | $ | 36,288 |
11
Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Three Months Ended | ||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2023 | June 30, 2023 | September 30, 2022 | ||||||||||||||||||||||
| (Dollars in thousands) | Average<br><br> <br>Outstanding<br><br> <br>Balance | Interest Earned /<br><br> <br>Interest Paid | Average<br><br> <br>Yield / Rate | Average<br><br> <br>Outstanding<br><br> <br>Balance | Interest Earned /<br><br> <br>Interest Paid | Average<br><br> <br>Yield / Rate | Average<br><br> <br>Outstanding<br><br> <br>Balance | Interest Earned /<br><br> <br>Interest Paid | Average<br><br> <br>Yield / Rate | |||||||||||||||
| Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest-Earning Assets: | ||||||||||||||||||||||||
| Total Loans | $ | 4,906,917 | $ | 84,575 | 6.84 | % | $ | 4,861,783 | $ | 79,223 | 6.54 | % | $ | 4,281,137 | $ | 58,846 | 5.45 | % | ||||||
| Securities | 885,792 | 5,053 | 2.26 | % | 916,421 | 5,097 | 2.23 | % | 951,479 | 4,200 | 1.75 | % | ||||||||||||
| Interest-Bearing Deposit in Other Banks | 278,420 | 3,694 | 5.26 | % | 117,086 | 1,528 | 5.23 | % | 54,730 | 427 | 3.10 | % | ||||||||||||
| Total Interest-Earning Assets | 6,071,129 | 93,322 | 6.10 | % | 5,895,290 | 85,848 | 5.84 | % | 5,287,346 | 63,473 | 4.76 | % | ||||||||||||
| Allowance for Loan Losses | (42,120 | ) | (42,010 | ) | (33,215 | ) | ||||||||||||||||||
| Noninterest-Earning Assets | 445,926 | 421,376 | 448,181 | |||||||||||||||||||||
| Total Assets | $ | 6,474,935 | $ | 93,322 | $ | 6,274,656 | $ | 85,848 | $ | 5,702,312 | $ | 63,473 | ||||||||||||
| Liabilities and Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||
| Interest-Bearing Deposits | $ | 3,703,682 | $ | 30,110 | 3.23 | % | $ | 3,405,221 | $ | 23,680 | 2.79 | % | $ | 3,009,565 | $ | 6,286 | 0.83 | % | ||||||
| Subordinated Debt | 100,400 | 1,363 | 5.39 | % | 108,619 | 1,251 | 4.62 | % | 110,953 | 1,332 | 4.76 | % | ||||||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 111 | 8.81 | % | 5,000 | 108 | 8.66 | % | 5,000 | 68 | 5.40 | % | ||||||||||||
| Bank Term Funding Program | 300,000 | 3,422 | 4.53 | % | 384,816 | 4,309 | 4.49 | % | - | - | 0.00 | % | ||||||||||||
| Advances from Federal Home Loan Bank (FHLB) | 284,930 | 2,875 | 4.00 | % | 298,324 | 3,038 | 4.08 | % | 396,267 | 2,194 | 2.20 | % | ||||||||||||
| First National Bankers Bank Line of Credit | - | - | 0.00 | % | - | - | 0.00 | % | 5,000 | 70 | 5.55 | % | ||||||||||||
| Other Borrowings | 23,542 | 147 | 2.48 | % | 22,109 | 136 | 2.47 | % | 22,381 | 43 | 0.76 | % | ||||||||||||
| Total Interest-Bearing Liabilities | 4,417,554 | 38,028 | 3.42 | % | 4,224,089 | 32,522 | 3.09 | % | 3,549,166 | 9,993 | 1.12 | % | ||||||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||||||||||
| Noninterest-Bearing Deposits | $ | 1,399,293 | $ | 1,410,983 | $ | 1,626,055 | ||||||||||||||||||
| Other Liabilities | 50,947 | 40,329 | 60,310 | |||||||||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,450,240 | 1,451,312 | 1,686,365 | |||||||||||||||||||||
| Shareholders' Equity: | ||||||||||||||||||||||||
| Common Shareholders' Equity | 535,211 | 527,325 | 442,778 | |||||||||||||||||||||
| Preferred Equity | 71,930 | 71,930 | 24,003 | |||||||||||||||||||||
| Total Shareholders' Equity | 607,141 | 599,255 | 466,781 | |||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 6,474,935 | $ | 6,274,656 | $ | 5,702,312 | ||||||||||||||||||
| Net Interest Spread | 2.68 | % | 2.75 | % | 3.65 | % | ||||||||||||||||||
| Net Interest Income | $ | 55,294 | $ | 53,326 | $ | 53,480 | ||||||||||||||||||
| Net Interest Margin | 3.61 | % | 3.63 | % | 4.01 | % | ||||||||||||||||||
| Overall Cost of Funds | 2.59 | % | 2.31 | % | 0.77 | % |
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention.
12
Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
| Nine Months Ended | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, 2023 | September 30, 2022 | |||||||||||||||
| (Dollars in thousands) | Average<br><br> <br>Outstanding<br><br> <br>Balance | Interest Earned /<br><br> <br>Interest Paid | Average<br><br> <br>Yield / Rate | Average<br><br> <br>Outstanding<br><br> <br>Balance | Interest Earned /<br><br> <br>Interest Paid | Average<br><br> <br>Yield / Rate | ||||||||||
| Assets | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest-Earning Assets: | ||||||||||||||||
| Total Loans | $ | 4,829,537 | $ | 237,566 | 6.58 | % | $ | 3,854,023 | $ | 148,668 | 5.16 | % | ||||
| Securities | 909,901 | 14,932 | 2.19 | % | 974,566 | 12,187 | 1.67 | % | ||||||||
| Interest-Bearing Deposit in Other Banks | 150,995 | 6,164 | 5.46 | % | 132,685 | 754 | 0.76 | % | ||||||||
| Total Interest-Earning Assets | 5,890,433 | 258,662 | 5.87 | % | 4,961,274 | 161,609 | 4.36 | % | ||||||||
| Allowance for Loan Losses | (41,888 | ) | (30,806 | ) | ||||||||||||
| Noninterest-Earning Assets | 442,341 | 400,884 | ||||||||||||||
| Total Assets | $ | 6,290,886 | $ | 258,662 | $ | 5,331,352 | $ | 161,609 | ||||||||
| Liabilities and Shareholders' Equity | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest-Bearing Liabilities: | ||||||||||||||||
| Interest-Bearing Deposits | $ | 3,482,797 | $ | 72,718 | 2.79 | % | $ | 2,958,005 | $ | 11,106 | 0.50 | % | ||||
| Subordinated Debt | 106,555 | 4,003 | 5.02 | % | 104,471 | 3,746 | 4.79 | % | ||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 317 | 8.48 | % | 5,000 | 163 | 4.36 | % | ||||||||
| Bank Term Funding Program | 238,274 | 8,111 | 4.55 | % | - | - | 0.00 | % | ||||||||
| Advances from Federal Home Loan Bank (FHLB) | 368,542 | 11,755 | 4.26 | % | 215,955 | 2,923 | 1.81 | % | ||||||||
| First National Bankers Bank Line of Credit | - | - | 0.00 | % | 2,778 | 91 | 4.38 | % | ||||||||
| Other Borrowings | 22,177 | 389 | 2.35 | % | 22,325 | 63 | 0.38 | % | ||||||||
| Total Interest-Bearing Liabilities | 4,223,345 | 97,293 | 3.08 | % | 3,308,534 | 18,092 | 0.73 | % | ||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||
| Noninterest-Bearing Deposits | 1,427,821 | 1,530,748 | ||||||||||||||
| Other Liabilities | 41,392 | 37,666 | ||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,469,213 | 1,568,414 | ||||||||||||||
| Shareholders' Equity: | ||||||||||||||||
| Common Shareholders' Equity | 526,398 | 446,403 | ||||||||||||||
| Preferred Equity | 71,930 | 8,001 | ||||||||||||||
| Total Shareholders' Equity | 598,328 | 454,404 | ||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 6,290,886 | $ | 5,331,352 | ||||||||||||
| Net Interest Spread | 2.79 | % | 3.62 | % | ||||||||||||
| Net Interest Income | $ | 161,369 | $ | 143,517 | ||||||||||||
| Net Interest Margin | 3.66 | % | 3.87 | % | ||||||||||||
| Overall Cost of Funds | 2.30 | % | 0.50 | % |
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.
Non-GAAP Measures
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
| (Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest income | $ | 93,322 | $ | 85,848 | $ | 63,473 | $ | 258,662 | $ | 161,609 | |||||
| Core interest income | 93,322 | 85,848 | 63,473 | 258,662 | 161,609 | ||||||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest expense | 38,028 | 32,522 | 9,993 | 97,293 | 18,092 | ||||||||||
| Core interest expense | 38,028 | 32,522 | 9,993 | 97,293 | 18,092 | ||||||||||
| Provision for Credit Losses: (b) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Provision for credit losses | 604 | 538 | 3,273 | 4,364 | 7,835 | ||||||||||
| Core provision expense | 604 | 538 | 3,273 | 4,364 | 7,835 | ||||||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other income | 9,883 | 11,958 | 8,115 | 30,229 | 21,032 | ||||||||||
| Losses on former bank premises and equipment | - | - | - | - | 717 | ||||||||||
| Losses on sale of securities | - | 61 | 7 | 62 | 46 | ||||||||||
| Insurance reimbursement of storm expenditures | - | - | (265 | ) | - | (265 | ) | ||||||||
| Gain on sale of branch | (932 | ) | - | - | (932 | ) | - | ||||||||
| Gain on extinguishment of debt | (517 | ) | (941 | ) | - | (1,458 | ) | - | |||||||
| Core other income | 8,434 | 11,078 | 7,857 | 27,901 | 21,530 | ||||||||||
| Other Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense | 38,607 | 39,702 | 40,946 | 116,988 | 111,063 | ||||||||||
| Acquisition-related expenses (2) | (2 | ) | (68 | ) | (3,521 | ) | (173 | ) | (5,040 | ) | |||||
| Occupancy and bank premises - storm repair | - | - | - | - | (501 | ) | |||||||||
| Core other expense | 38,605 | 39,634 | 37,425 | 116,815 | 105,522 | ||||||||||
| Pre-Tax Income: (a) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Pre-tax income | 25,966 | 25,044 | 17,376 | 70,246 | 45,651 | ||||||||||
| Losses on former bank premises and equipment | - | - | - | - | 717 | ||||||||||
| Losses on sale of securities | - | 61 | 7 | 62 | 46 | ||||||||||
| Insurance reimbursement of storm expenditures | - | - | (265 | ) | - | (265 | ) | ||||||||
| Gain on sale of branch | (932 | ) | - | - | (932 | ) | - | ||||||||
| Gain on extinguishment of debt | (517 | ) | (941 | ) | - | (1,458 | ) | - | |||||||
| Acquisition-related expenses (2) | 2 | 68 | 3,521 | 173 | 5,040 | ||||||||||
| Occupancy and bank premises - storm repair | - | - | - | - | 501 | ||||||||||
| Core pre-tax income | 24,519 | 24,232 | 20,639 | 68,091 | 51,690 | ||||||||||
| Provision for Income Taxes: (1) | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Provision for income taxes | 5,511 | 5,305 | 3,576 | 15,027 | 9,363 | ||||||||||
| Tax on losses on former bank premises and equipment | - | - | - | - | 151 | ||||||||||
| Tax on losses on sale of securities | - | 13 | 1 | 13 | 10 | ||||||||||
| Tax on insurance reimbursement of storm expenditures | - | - | (55 | ) | - | (55 | ) | ||||||||
| Tax on gain on sale of branch | (197 | ) | - | - | (197 | ) | - | ||||||||
| Tax on gain on extinguishment of debt | (109 | ) | (199 | ) | - | (308 | ) | - | |||||||
| Tax on acquisition-related expenses (2) | - | 14 | 739 | 20 | 913 | ||||||||||
| Tax on occupancy and bank premises - storm repair | - | - | - | - | 106 | ||||||||||
| Core provision for income taxes | 5,205 | 5,133 | 4,261 | 14,555 | 10,488 | ||||||||||
| Preferred Dividends: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Preferred dividends | 1,351 | 1,350 | - | 4,051 | - | ||||||||||
| Core preferred dividends | 1,351 | 1,350 | - | 4,051 | - | ||||||||||
| Net Income Available to Common Shareholders: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net income available to common shareholders | 19,104 | 18,389 | 13,800 | 51,168 | 36,288 | ||||||||||
| Losses on former bank premises and equipment, net of tax | - | - | - | - | 566 | ||||||||||
| Losses on sale of securities, net of tax | - | 48 | 6 | 49 | 36 | ||||||||||
| Insurance reimbursement of storm expenditures, net of tax | - | - | (210 | ) | - | (210 | ) | ||||||||
| Gain on sale of branch, net of tax | (735 | ) | - | - | (735 | ) | - | ||||||||
| Gain on extinguishment of debt, net of tax | (408 | ) | (742 | ) | - | (1,150 | ) | - | |||||||
| Acquisition-related expenses (2), net of tax | 2 | 54 | 2,782 | 153 | 4,127 | ||||||||||
| Occupancy and bank premises - storm repair, net of tax | - | - | - | - | 395 | ||||||||||
| Core net income available to common shareholders | $ | 17,963 | $ | 17,749 | $ | 16,378 | $ | 49,485 | $ | 41,202 | |||||
| Pre-tax, pre-provision earnings available to common shareholders (a+b) | $ | 26,570 | $ | 25,582 | $ | 20,649 | $ | 74,610 | $ | 53,486 | |||||
| Losses on former bank premises and equipment | - | - | - | - | 717 | ||||||||||
| Loss on sale of securities | - | 61 | 7 | 62 | 46 | ||||||||||
| Insurance reimbursement of storm expenditures | - | - | (265 | ) | - | (265 | ) | ||||||||
| Gain on sale of branch | (932 | ) | - | - | (932 | ) | - | ||||||||
| Gain on extinguishment of debt | (517 | ) | (941 | ) | - | (1,458 | ) | - | |||||||
| Acquisition-related expenses (2) | 2 | 68 | 3,521 | 173 | 5,040 | ||||||||||
| Occupancy and bank premises - storm repair | - | - | - | - | 501 | ||||||||||
| Core pre-tax, pre-provision earnings | $ | 25,123 | $ | 24,770 | $ | 23,912 | $ | 72,455 | $ | 59,525 | |||||
| Average Diluted Common Shares Outstanding | 25,288,660 | 25,333,372 | 22,650,640 | 25,281,908 | 22,163,952 | ||||||||||
| Diluted Earnings Per Common Share: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Diluted earnings per common share | $ | 0.76 | $ | 0.73 | $ | 0.61 | $ | 2.02 | $ | 1.64 | |||||
| Losses on former bank premises and equipment, net of tax | - | - | - | - | 0.02 | ||||||||||
| Loss on sale of securities, net of tax | - | - | - | 0.00 | - | ||||||||||
| Insurance reimbursement of storm expenditures, net of tax | - | - | (0.01 | ) | - | (0.01 | ) | ||||||||
| Gain on sale of branch, net of tax | (0.03 | ) | - | - | (0.03 | ) | - | ||||||||
| Gain on extinguishment of debt, net of tax | (0.02 | ) | (0.03 | ) | - | (0.04 | ) | - | |||||||
| Acquisition-related expenses (2), net of tax | - | - | 0.12 | 0.01 | 0.19 | ||||||||||
| Occupancy and bank premises -storm repair, net of tax | - | - | - | - | 0.02 | ||||||||||
| Core diluted earnings per common share | $ | 0.71 | $ | 0.70 | $ | 0.72 | $ | 1.96 | $ | 1.86 | |||||
| Pre-tax, pre-provision profit diluted earnings per common share | $ | 1.05 | $ | 1.01 | $ | 0.91 | $ | 2.95 | $ | 2.41 | |||||
| Losses on former bank premises and equipment | - | - | - | - | 0.03 | ||||||||||
| Loss on sale of securities | - | - | - | - | - | ||||||||||
| Insurance reimbursement of storm expenditures | - | - | (0.01 | ) | - | (0.01 | ) | ||||||||
| Gain on sale of branch | (0.04 | ) | - | - | (0.04 | ) | - | ||||||||
| Gain on extinguishment of debt | (0.02 | ) | (0.04 | ) | - | (0.06 | ) | - | |||||||
| Acquisition-related expenses (2) | - | 0.01 | 0.16 | 0.01 | 0.23 | ||||||||||
| Occupancy and bank premises - storm repair | - | - | - | - | 0.03 | ||||||||||
| Core pre-tax, pre-provision diluted earnings per common share | $ | 0.99 | $ | 0.98 | $ | 1.06 | $ | 2.86 | $ | 2.69 |
(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.
14
Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
| September 30, | June 30, | September 30, | |||||||
|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | ||||||
| Total Shareholders' (Common) Equity: | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Total shareholders' equity | $ | 604,366 | $ | 600,968 | $ | 508,002 | |||
| Preferred stock | (71,930 | ) | (71,930 | ) | (72,010 | ) | |||
| Total common shareholders' equity | 532,436 | 529,038 | 435,992 | ||||||
| Goodwill | (88,391 | ) | (88,543 | ) | (88,543 | ) | |||
| Core deposit and customer intangible | (12,418 | ) | (12,993 | ) | (14,567 | ) | |||
| Total tangible common equity | $ | 431,627 | $ | 427,502 | $ | 332,882 | |||
| Total Assets: | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Total assets | $ | 6,488,781 | $ | 6,454,649 | $ | 5,806,691 | |||
| Goodwill | (88,391 | ) | (88,543 | ) | (88,543 | ) | |||
| Core deposit and customer intangible | (12,418 | ) | (12,993 | ) | (14,567 | ) | |||
| Total tangible assets | $ | 6,387,972 | $ | 6,353,113 | $ | 5,703,581 | |||
| Common shares outstanding | 25,344,168 | 25,344,168 | 22,605,136 | ||||||
| Book value per common share | $ | 21.01 | $ | 20.87 | $ | 19.29 | |||
| Tangible book value per common share | $ | 17.03 | $ | 16.87 | $ | 14.73 | |||
| Common equity to total assets | 8.21 | % | 8.20 | % | 7.51 | % | |||
| Tangible common equity to tangible assets | 6.76 | % | 6.73 | % | 5.84 | % |
15
Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||
| (Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
| Total Quarterly Average Assets | $ | 6,474,935 | $ | 6,274,656 | $ | 5,702,312 | $ | 6,290,886 | $ | 5,331,352 | |||||
| Total Quarterly Average Common Equity | $ | 535,211 | $ | 527,325 | $ | 442,778 | $ | 526,398 | $ | 446,403 | |||||
| Net Income Available to Common Shareholders: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net income available to common shareholders | $ | 19,104 | $ | 18,389 | $ | 13,800 | $ | 51,168 | $ | 36,288 | |||||
| Losses on former bank premises and equipment, net of tax | - | - | - | - | 566 | ||||||||||
| Losses on sale of securities, net of tax | - | 48 | 6 | 49 | 36 | ||||||||||
| Insurance reimbursement of storm expenditures, net of tax | - | - | (210 | ) | - | (210 | ) | ||||||||
| Gain on sale of branch, net of tax | (735 | ) | - | - | (735 | ) | - | ||||||||
| Gain on extinguishment of debt, net of tax | (408 | ) | (742 | ) | - | (1,150 | ) | - | |||||||
| Acquisition-related expenses, net of tax | 2 | 54 | 2,782 | 153 | 4,127 | ||||||||||
| Occupancy and bank premises - storm repair, net of tax | - | - | - | - | 395 | ||||||||||
| Core net income available to common shareholders | $ | 17,963 | $ | 17,749 | $ | 16,378 | $ | 49,485 | $ | 41,202 | |||||
| Return to common shareholders on average assets (annualized) (2) | 1.17 | % | 1.18 | % | 0.96 | % | 1.09 | % | 0.91 | % | |||||
| Core return on average assets (annualized) (2) | 1.10 | % | 1.13 | % | 1.14 | % | 1.05 | % | 1.03 | % | |||||
| Return to common shareholders on average common equity (annualized) (2) | 14.16 | % | 13.99 | % | 12.37 | % | 13.00 | % | 10.87 | % | |||||
| Core return on average common equity (annualized) (2) | 13.32 | % | 13.50 | % | 14.68 | % | 12.57 | % | 12.34 | % | |||||
| Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest income | $ | 93,322 | $ | 85,848 | $ | 63,473 | $ | 258,662 | $ | 161,609 | |||||
| Core interest income | 93,322 | 85,848 | 63,473 | 258,662 | 161,609 | ||||||||||
| Interest Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Interest expense | 38,028 | 32,522 | 9,993 | 97,293 | 18,092 | ||||||||||
| Core interest expense | 38,028 | 32,522 | 9,993 | 97,293 | 18,092 | ||||||||||
| Other Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other income | 9,883 | 11,958 | 8,115 | 30,229 | 21,032 | ||||||||||
| Losses on former bank premises and equipment | - | - | - | - | 717 | ||||||||||
| Loss on sale of securities | - | 61 | 7 | 62 | 46 | ||||||||||
| Insurance reimbursement of storm expenditures | - | - | (265 | ) | - | (265 | ) | ||||||||
| Gain on sale of branch | (932 | ) | - | - | (932 | ) | - | ||||||||
| Gain on extinguishment of debt | (517 | ) | (941 | ) | - | (1,458 | ) | - | |||||||
| Core other income | 8,434 | 11,078 | 7,857 | 27,901 | 21,530 | ||||||||||
| Other Expense: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense | 38,607 | 39,702 | 40,946 | 116,988 | 111,063 | ||||||||||
| Acquisition-related expenses | (2 | ) | (68 | ) | (3,521 | ) | (173 | ) | (5,040 | ) | |||||
| Occupancy and bank premises - storm repair | - | - | - | - | (501 | ) | |||||||||
| Core other expense | $ | 38,605 | $ | 39,634 | $ | 37,425 | $ | 116,815 | $ | 105,522 | |||||
| Efficiency Ratio: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Other expense (a) | $ | 38,607 | $ | 39,702 | $ | 40,946 | $ | 116,988 | $ | 111,063 | |||||
| Core other expense (c) | $ | 38,605 | $ | 39,634 | $ | 37,425 | $ | 116,815 | $ | 105,522 | |||||
| Net interest and other income (1) (b) | $ | 65,177 | $ | 65,345 | $ | 61,602 | $ | 191,660 | $ | 164,595 | |||||
| Core net interest and other income (1) (d) | $ | 63,728 | $ | 64,404 | $ | 61,337 | $ | 189,270 | $ | 165,047 | |||||
| Efficiency ratio (a/b) | 59.23 | % | 60.76 | % | 66.47 | % | 61.04 | % | 67.48 | % | |||||
| Core efficiency ratio (c/d) | 60.58 | % | 61.54 | % | 61.02 | % | 61.72 | % | 63.93 | % | |||||
| Total Average Interest-Earnings Assets | $ | 6,071,129 | $ | 5,895,290 | $ | 5,287,346 | $ | 5,890,433 | $ | 4,961,274 | |||||
| Net Interest Income: | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** | **** |
| Net interest income | $ | 55,294 | $ | 53,326 | $ | 53,480 | $ | 161,369 | $ | 143,517 | |||||
| Loan discount accretion | (2,419 | ) | (2,059 | ) | (1,712 | ) | (7,390 | ) | (5,220 | ) | |||||
| Net interest income excluding loan discount accretion | $ | 52,875 | $ | 51,267 | $ | 51,768 | $ | 153,979 | $ | 138,297 | |||||
| Net interest margin (2) | 3.61 | % | 3.63 | % | 4.01 | % | 3.66 | % | 3.87 | % | |||||
| Net interest margin excluding loan discount accretion (2) | 3.46 | % | 3.49 | % | 3.88 | % | 3.49 | % | 3.73 | % | |||||
| Net interest spread (2) | 2.68 | % | 2.75 | % | 3.65 | % | 2.79 | % | 3.62 | % | |||||
| Net interest spread excluding loan discount accretion (2) | 2.53 | % | 2.61 | % | 3.52 | % | 2.62 | % | 3.48 | % |
(1) Excludes gains/losses on sales of securities.
(2) Calculated utilizing an Actual/365 day count convention.
16
Image Exhibit
Exhibit 99.2
