• Business First Bancshares, Inc., Announces Financial Results for Fiscal Year 2021 and Q4 2021

    المصدر: Nasdaq GlobeNewswire / 25 يناير 2022 16:01:01   America/New_York

    BATON ROUGE, La., Jan. 25, 2022 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the year ended December 31, 2021, including net income of $52.1 million, or $2.53 per diluted share, an increase of $22.1 million and $0.89, respectively, from the prior year ended December 31, 2020. The increase was largely impacted by a $9.2 million pre-tax gain on sale of Small Business Administration (SBA) Paycheck Protection Program (PPP) loans during the second quarter of 2021 and pre-tax net interest income of $8.2 million realized in 2021 related to SBA PPP loans. On a non-GAAP basis, core net income for the year ended December 31, 2021, which excludes certain income and expenses, was $53.9 million, or $2.61 per diluted share, increases of $16.5 million and $0.56, respectively, from prior year ended December 31, 2020.

    For the quarter ended December 31, 2021, Business First reported net income of $12.1 million, or $0.59 per diluted share, increases of $1.8 million and $0.09, respectively, from the quarter ended September 30, 2021. On a non-GAAP basis, core net income for the quarter ended December 31, 2021, which excludes certain income and expenses, was $11.7 million, or $0.57 per diluted share, an increase of $0.8 million and $0.04, respectively, from the quarter ended September 30, 2021.

    “Given all that has occurred over the past few years in our company and across the country the fourth quarter of 2021 was the most “normal” quarter we’ve had in some time,” said Jude Melville, president and CEO. “We are adding clarity and visibility to our story: an entrepreneurial company steadily building core profitability, adding employees, clients and product capability, and diversifying risk across an expanding footprint. We enter 2022 eager to close our pending merger with Texas Citizens Bank in Houston, continue building upon our foundational investment in Dallas-Fort Worth and grow our market share across Louisiana.”

    On January 24, 2022, Business First’s board of directors declared a quarterly dividend based upon financial performance for the fourth quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of February 15, 2022. The dividend will be paid on February 28, 2022, or as soon thereafter as practicable.

    Quarterly Highlights

    • Loan Growth. Total loans held for investment at December 31, 2021, were $3.2 billion, an increase of $123.4 million compared to September 30, 2021, or 4.02% for the quarter and 16.10% annualized. Excluding the decrease in SBA PPP loans, total loans held for investment increased from the quarter ended September 30, 2021, by 4.18%, or 16.71% annualized. Loan growth in Dallas, Tx. (28.6%), greater New Orleans (63.4%), and the Baton Rouge/Capital Region (36.1%) markets accounted for 128.1% of the quarterly loan growth, offset by normal net maturities and payoffs in Business First’s other markets.
    • Stable Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets slightly improved from 0.37% and 0.45%, respectively, at September 30, 2021, to 0.31% and 0.41% at December 31, 2021. The nonperforming asset ratio has decreased from the prior quarter due to asset sales.
    • Banking Center Sale. Business First regularly evaluates its Banking Center network in search of optimization opportunities and closed two Banking Centers during Q4 2021, one in Minden, La, and a second by sale in Oak Grove, La., on October 1, 2021. The Banking Center sale resulted in a pre-tax gain on sale of $492,000.
    • Texas Citizens Bancorp, Inc. Acquisition. On October 20, 2021, Business First executed a definitive agreement to acquire Texas Citizens Bancshares, Inc. (TCBI), the parent bank holding company for Texas Citizens Bank, National Association, based in Pasadena, Tx. As of December 31, 2021, TCBI had consolidated total assets of $547.2 million, loans of $359.0 million, and deposits of $482.8 million.

    Financial Condition

    December 31, 2021, Compared to September 31, 2021

    Loans

    Loans held for investment increased $123.4 million, or 4.02% (16.10% annualized), for the quarter ended December 31, 2021. The increase was largely attributable to loan originations in our construction and land and nonfarm, nonresidential real estate portfolios which were $83.7 million and $32.7 million, respectively. Year to date loan growth was 6.63%, inclusive of SBA PPP loans. As of December 31, 2021, SBA PPP loans with an unpaid principal balance of $5.4 million remained outstanding, compared to $8.9 million as of September 30, 2021.

    Excluding the net decrease in SBA PPP loans, total loans held for investment increased for the quarter ended December 31, 2021, by 4.18%, or 16.71% annualized. Year to date loan growth was 19.00% excluding SBA PPP loans.

    Credit Quality

    Nonperforming loans as a percentage of total loans held for investment decreased from 0.45% as of September 30, 2021, to 0.41% as of December 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.37% as of September 30, 2021, to 0.31% as of December 31, 2021.

    Total Shareholders’ Equity

    Book value per common share was $21.24 at December 31, 2021, compared to $21.11 at September 30, 2021. On a non-GAAP basis, tangible book value per share was $17.71 at December 31, 2021, compared to $17.53 at September 30, 2021.  

    December 31, 2021, Compared to December 31, 2020

    Loans

    Total loans held for investment increased by $198.3 million compared to December 31, 2020, or 6.63 %. Excluding SBA PPP loans, loans increased $508.3 million, or 19.00%.

    Credit Quality

    Nonperforming loans as a percentage of total loans held for investment increased from 0.35% as of December 31, 2020, to 0.41% as of December 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.48% as of December 31, 2020, to 0.31% as of December 31, 2021, largely due to the sales of nonperforming assets.

    Total Shareholders’ Equity

    Book value per common share was $21.24 at December 31, 2021, compared to $19.88 at December 31, 2020. On a non-GAAP basis, tangible book value per share was $17.71 at December 31, 2021, compared to $16.80 at December 31, 2020.

    Results of Operations

    Fourth Quarter 2021 Compared to Third Quarter 2021

    Net Income and Diluted Earnings Per Share

    For the quarter ended December 31, 2021, net income was $12.1 million, or $0.59 per diluted share, compared to net income of $10.3 million, or $0.50 per diluted share, for the quarter ended September 31, 2021. The increase, $1.8 million and $0.09, respectively, was largely attributable to a $1.1 million increase in pre-tax net interest income and a $455,000 increase in pre-tax gains on sales of securities for the quarter ended December 31, 2021.

    On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended December 31, 2021, was $11.7 million, or $0.57 per diluted share, compared to core net income of $10.9 million, or $0.53 per diluted share, for the quarter ended September 30, 2021. Notable noncore events impacting earnings for the quarter ended December 31, 2021, included $444,000 in gains on sale of securities and a $492,000 gain on sale of the Oak Grove Banking Center within other income, and $266,000 of expenses attributable to acquisition-related expenses, compared to $211,000 in occupancy and bank premises expenses attributable to hurricane damages (primarily related to Ida, 2021), $145,000 in acquisition-related expenses and $392,000 in losses on sales of former premises and equipment within other income, for the quarter ended September 30, 2021.

    Interest Income

    For the quarter ended December 31, 2021, net interest income totaled $38.3 million and net interest margin and net interest spread were 3.57% and 3.38%, respectively, compared to $37.3 million, 3.71% and 3.51% for the quarter ended September 30, 2021. The average yield on total interest-earning assets was 3.93% for the quarter ended December 31, 2021, compared to 4.14% for the quarter ended September 30, 2021. The increase in interest income was largely attributable to loan growth during the fourth quarter. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.93% for the quarter ended December 31, 2021, compared to 5.11% for the quarter ended September 30, 2021, due to lower-yielding new originations.

    Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.42% and 3.24%, respectively, for the quarter ended December 31, 2021, compared to 3.56% and 3.36% (excluding loan discount accretion of $1.5 million) for the quarter ended September 30, 2021.   

    Interest Expense

    For the quarter ended December 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by six basis points, from 0.44% to 0.38%, compared to the quarter ended September 30, 2021, due to a combination of increased noninterest deposits and lower yielding interest-bearing deposits.

    Other Income

    For the quarter ended December 31, 2021, other income was higher by $627,000 compared to the quarter ended September 30, 2021. The increase was largely attributable to increases on gains of securities of $455,000, fees and brokerage commissions of $386,000, gains on sales of other real estate owned of $523,000, and gain on sale of the Oak Grove Banking Center of $492,000, offset by a reduction of other income of $1.3 million.

    Other Expenses

    For the quarter ended December 31, 2021, other expense decreased by $152,000 compared to the quarter ended September 30, 2021.

    Provision for Loan Losses

    During the quarter ended December 31, 2021, Business First recorded a provision for loan losses of $1.3 million, compared to $1.1 million for the quarter ended September 30, 2021. The reserve for the quarter ended December 31, 2021, was driven primarily by the improvement in the qualitative factors (attributed to the general economy and energy sector), offset by reserves for new loan growth.

    Return on Assets and Equity

    Return on average assets and equity, each on an annualized basis, were 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021, compared to 0.95% and 9.47%, respectively, for the quarter ended September 30, 2021.

    Fourth Quarter 2021 Compared to Fourth Quarter 2020

    Net Income and Diluted Earnings Per Share

    For the quarter ended December 31, 2021, net income was $12.1 million, or $0.59 per diluted share, compared to net income of $13.8 million, or $0.67 per diluted share, for the quarter ended December 31, 2020. The decreases in net income and diluted earnings per share were largely attributable to lower interest income related to a reduction of SBA PPP loan fees and discount accretion, as well as the $4.2 million gains on sales of loans under the Main Street Lending Program (Main Street) which occurred in December 2020, offset by the reduction of $2.4 million loss on early extinguishment of Federal Home Loan Bank (FHLB) debt which occurred in December 2020 and a decrease in the provision for loan losses of $834,000.

    On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended December 31, 2021, was $11.7 million, or $0.57 per diluted share, compared to core net income of $14.1 million, or $0.68 per diluted share, for the quarter ended December 31, 2020. Notable noncore events impacting earnings for the quarter ended December 31, 2021, included $444,000 gains on sale of securities and a $492,000 gain on sale of the Oak Grove Banking Center within other income, and $266,000 of expenses attributable to acquisition-related expenses, compared to the incurrence of $568,000 in acquisition-related expenses and $158,000 in gains attributed to former bank premises and equipment in other income for the quarter ended December 31, 2020.

    Interest Income

    For the quarter ended December 31, 2021, net interest income totaled $38.3 million and net interest margin and net interest spread were 3.57% and 3.38%, respectively, compared to $39.6 million, 4.26% and 4.03% for the quarter ended December 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.93% for the quarter ended December 31, 2021, compared to 5.59% for the quarter ended December 31, 2020. The decrease in interest income was largely attributable to lower fees and interest income from lower SBA PPP loan balances.

    Average yield on total interest-earning assets, net interest margin, and net interest spread were negatively impacted for the quarter ended December 31, 2021, by lower yielding loans and securities, offset partially by lower deposit and borrowing costs.

    Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.42% and 3.24%, respectively, for the quarter ended December 31, 2021, compared to 3.99% and 3.75% (excluding loan discount accretion of $2.6 million) for the quarter ended December 31, 2020.

    Interest Expense

    For the quarter ended December 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 15 basis points, from 0.53% to 0.38%, compared to the quarter ended December 31, 2020. The decrease in cost of funds was primarily attributable to an overall reduction in interest rates on deposit offerings and reduction in FHLB advance balances, offset by an increase associated with higher subordinated debt balances.

    Other Income

    For the quarter ended December 31, 2021, the decrease in other income of $2.6 million was largely attributable to the $4.2 million gains on sales of Main Street loans which occurred during December 2020, offset by an increase in gains on sales of securities of $429,000 and $1.3 million in fees and brokerage commissions, compared to the quarter ended December 31, 2020.

    Other Expenses

    For the quarter ended December 31, 2021, the decrease in other expense was $187,000 compared to December 31, 2020. Notable changes include a net increase in salaries and employee benefits of $2.4 million, offset by a reduction of other expenses attributable to a reduction of $2.4 million on loss of early extinguishment of FHLB debt.

    Provision for Loan Losses

    During the quarter ended December 31, 2021, Business First recorded a provision for loan losses of $1.3 million compared to $2.1 million for the quarter ended December 31, 2020. The reserve for the quarter ended December 31, 2020, was impacted by $450,000 in net charge-offs and the impact of the COVID-19 pandemic on the qualitative factors at the time.

    Return on Assets and Equity

    Return on average assets and return on average equity, each on an annualized basis, were 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021, from 1.37% and 13.86%, respectively, for the quarter ended December 31, 2020.

    About Business First Bancshares, Inc.

    Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $4.7 billion in assets, $6.2 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $1.0 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas, Texas area, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a three-time recipient of Baton Rouge Business Report’s “Best Places to Work in Baton Rouge.” Visit b1BANK.com for more information.  

    Non-GAAP Financial Measures

    This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.

    Special Note Regarding Forward-Looking Statements

    Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. Actual results will also be significantly impacted by the effects of the ongoing COVID-19 pandemic, including, among other effects: the impact of the public health crisis; the extent and duration of closures of businesses, including our Banking Centers, vendors and customers; the operation of financial markets; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; the adequacy of our allowance for loan losses in relation to potential losses in our loan portfolio; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.

    Additional Information

    For additional information on Business First and the TCBI merger, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.

    Misty Albrecht
    b1BANK
    225.286.7879
    Misty.Albrecht@b1BANK.com


    Business First Bancshares, Inc.
    Selected Financial Information
    (Unaudited)
     For the Quarter Ended
     December 31,September 30,December 31,
    (Dollars in thousands) 2021  2021  2020 
        
    Balance Sheet Ratios   
        
    Loans (HFI) to Deposits 78.23% 81.37% 82.71%
    Shareholders' Equity to Assets Ratio 9.17% 9.77% 9.85%
        
    Loans Receivable Held for Investment   
        
    Commercial (1)$721,385 $723,077 $886,325 
    Real Estate:   
    Construction and Land 548,528  464,808  403,065 
    Farmland 87,463  85,898  55,883 
    1-4 Family Residential 467,699  464,462  468,650 
    Multi-Family Residential 97,508  107,551  95,707 
    Nonfarm Nonresidential 1,144,426  1,111,771  971,603 
    Total Real Estate 2,345,624  2,234,490  1,994,908 
    Consumer and Other (1) 122,599  108,669  110,122 
    Total Loans (Held for Investment)$3,189,608 $3,066,236 $2,991,355 
        
    Allowance for Loan Losses   
        
    Balance, Beginning of Period$28,146 $26,702 $20,340 
    Charge-offs – Quarterly (385) (81) (715)
    Recoveries – Quarterly 51  378  265 
    Provision for Loan Losses – Quarterly 1,300  1,147  2,134 
    Balance, End of Period$29,112 $28,146 $22,024 
        
    Allowance for Loan Losses to Total Loans (HFI) 0.91% 0.92% 0.74%
    Net Charge-offs (Recoveries) to Average Total Loans 0.01% -0.01% 0.01%
        
    Remaining Loan Purchase Discount$27,573 $29,390 $35,580 
        
    Nonperforming Assets   
        
    Nonperforming Loans:   
    Nonaccrual Loans (2)$12,868 $12,622 $9,063 
    Loans Past Due 90 Days or More (2) 222  1,030  1,523 
    Total Nonperforming Loans 13,090  13,652  10,586 
    Other Nonperforming Assets:   
    Other Real Estate Owned 1,427  2,152  9,051 
    Other Nonperforming Assets -  675  402 
    Total Other Nonperforming Assets 1,427  2,827  9,453 
    Total Nonperforming Assets$14,517 $16,479 $20,039 
        
    Nonperforming Loans to Total Loans (HFI) 0.41% 0.45% 0.35%
    Nonperforming Assets to Total Assets 0.31% 0.37% 0.48%
        
    (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $5.4 million of the commercial portfolio as of December 31, 2021.
    SBA PPP loans accounted for $9.7 million of the commercial portfolio as of September 30, 2021.
    SBA PPP loans accounted for $313.9 million and $1.6 million of the commercial
    and consumer portfolios, respectively, as of December 31, 2020.
        
    (2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.
        


    Business First Bancshares, Inc.
    Selected Financial Information
    (Unaudited)
          
     Three Months EndedYear Ended
     December 31,September 30,December 31,December 31,December 31,
    (Dollars in thousands, except per share data)20212021202020212020
          
    Per Share Data     
          
    Basic Earnings per Common Share$0.59 $0.51 $0.67 $2.54 $1.65 
    Diluted Earnings per Common Share 0.59  0.50  0.67  2.53  1.64 
    Dividends per Common Share 0.12  0.12  0.10  0.46  0.40 
    Book Value per Common Share 21.24  21.11  19.88  21.24  19.88 
          
          
    Average Common Shares Outstanding 20,299,704  20,384,879  20,590,239  20,502,249  18,169,599 
    Average Diluted Shares Outstanding 20,462,317  20,513,838  20,726,648  20,634,281  18,243,445 
    End of Period Common Shares Outstanding 20,400,349  20,383,504  20,621,437  20,400,349  20,621,437 
          
          
    Annualized Performance Ratios     
          
    Return on Average Assets 1.05% 0.95% 1.37% 1.18% 0.88%
    Return on Average Equity 11.20% 9.47% 13.86% 12.25% 8.42%
    Net Interest Margin 3.57% 3.71% 4.26% 3.84% 4.06%
    Net Interest Spread 3.38% 3.51% 4.03% 3.65% 3.77%
    Efficiency Ratio (1) 65.55% 67.73% 60.27% 61.84% 67.75%
          
    Total Quarterly/Year-to-Date Average Assets$4,584,460 $4,353,885 $4,029,660 $4,403,670 $3,426,120 
    Total Quarterly/Year-to-Date Average Equity 430,834  435,400  399,332  425,692  356,339 
          
    Other Expenses     
          
    Salaries and Employee Benefits$17,355 $16,791 $14,908 $65,825 $57,394 
    Occupancy and Bank Premises 1,522  1,629  1,525  7,238  5,349 
    Depreciation and Amortization 793  1,720  1,338  5,792  4,334 
    Data Processing 2,032  1,994  1,967  8,137  5,506 
    FDIC Assessment Fees 668  581  595  2,194  1,608 
    Legal and Other Professional Fees 480  553  626  2,679  2,118 
    Advertising and Promotions 999  612  645  2,712  1,605 
    Utilities and Communications 586  678  617  2,475  2,368 
    Ad Valorem Shares Tax 449  675  850  2,499  2,348 
    Directors' Fees 207  201  173  790  464 
    Other Real Estate Owned Expenses and Write-Downs 76  103  132  736  607 
    Merger and Conversion-Related Expenses 266  145  548  515  3,978 
    Other 3,982  3,885  5,678  15,469  13,314 
    Total Other Expenses$29,415 $29,567 $29,602 $117,061 $100,993 
          
    Other Income     
          
    Service Charges on Deposit Accounts$1,800 $1,763 $1,672 $6,813 $5,358 
    Gain (Loss) on Sales of Securities 444  (11) 15  378  135 
    Debit Card and ATM Fee Income 1,554  1,532  1,555  6,199  4,320 
    Bank-Owned Life Insurance Income 367  356  251  1,396  940 
    Gain on Sales of Loans 3  93  4,413  10,117  4,597 
    Mortgage Origination Income 169  227  208  866  572 
    Fees and Brokerage Commission 1,721  1,335  433  5,015  970 
    Gain (Loss) on Sales of Other Real Estate Owned (35) (558) 199  (1,122) 227 
    Gain (Loss) on Disposal of Other Assets (9) 14  51  112  (576)
    Gain on Sale of Branch 492  -  -  492  - 
    Pass-Through Income from SBIC Partnerships 555  405  170  2,615  2,538 
    Other (86) 1,192  580  2,901  2,483 
    Total Other Income$6,975 $6,348 $9,547 $35,782 $21,564 
          
    (1) Non-GAAP: Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities. 
          


    Business First Bancshares, Inc.
    Consolidated Balance Sheets
    (Unaudited)
        
     December 31,September 30,December 31,
    (Dollars in thousands) 2021  2021  2020 
        
    Assets   
        
    Cash and Due From Banks$68,375 $81,361 $149,131 
    Federal Funds Sold 227,044  4,646  174,152 
    Securities Available for Sale, at Fair Values 1,021,061  1,034,491  640,605 
    Mortgage Loans Held for Sale 1,200  1,498  969 
    Loans and Lease Receivable 3,189,608  3,066,236  2,991,355 
    Allowance for Loan Losses (29,112) (28,146) (22,024)
    Net Loans and Lease Receivable 3,160,496  3,038,090  2,969,331 
    Premises and Equipment, Net 58,155  56,611  58,593 
    Accrued Interest Receivable 19,597  19,025  23,895 
    Other Equity Securities 16,619  15,259  12,693 
    Other Real Estate Owned 1,427  2,152  9,051 
    Cash Value of Life Insurance 60,380  59,085  45,030 
    Deferred Taxes, Net 8,822  5,618  5,858 
    Goodwill 59,894  60,062  53,862 
    Core Deposit and Customer Intangibles 12,203  12,835  9,734 
    Other Assets 11,105  14,484  7,456 
        
    Total Assets$4,726,378 $4,405,217 $4,160,360 
        
        
    Liabilities   
        
    Deposits   
    Noninterest-Bearing$1,291,036 $1,201,791 $1,164,139 
    Interest-Bearing 2,786,247  2,566,330  2,452,540 
    Total Deposits 4,077,283  3,768,121  3,616,679 
        
    Securities Sold Under Agreements to Repurchase 19,121  27,195  21,825 
    Fed Funds Purchased -  16,087  - 
    Short-Term Borrowings 20  20  5,020 
    Long-Term Borrowings -  -  6,000 
    Subordinated Debt 81,427  81,427  25,000 
    Subordinated Debt - Trust Preferred Securities 5,000  5,000  5,000 
    Federal Home Loan Bank Borrowings 82,022  48,002  43,145 
    Accrued Interest Payable 1,354  1,835  2,499 
    Other Liabilities 26,783  27,309  25,229 
        
    Total Liabilities 4,293,010  3,974,996  3,750,397 
        
    Shareholders' Equity   
        
    Common Stock 20,400  20,384  20,621 
    Additional Paid-In Capital 292,271  291,847  299,540 
    Retained Earnings 121,874  112,243  79,174 
    Accumulated Other Comprehensive Income (1,177) 5,747  10,628 
        
    Total Shareholders' Equity 433,368  430,221  409,963 
        
    Total Liabilities and Shareholders' Equity$4,726,378 $4,405,217 $4,160,360 
        



    Business First Bancshares, Inc.
    Consolidated Statements of Income
    (Unaudited)
           
      Three Months Ended Year Ended
     December 31,September 30,December 31, December 31,December 31,
    (Dollars in thousands)2021
    		20212020
    		 2021
    		2020
           
    Interest Income:      
    Interest and Fees on Loans$38,337 $37,900 $41,762  $156,791 $140,459 
    Interest and Dividends on Securities 3,904  3,598  2,572   13,520  9,121 
    Interest on Federal Funds Sold and Due From Banks 50  36  53   127  175 
    Total Interest Income 42,291  41,534  44,387   170,438  149,755 
           
    Interest Expense:      
    Interest on Deposits 2,645  3,060  3,736   12,183  17,562 
    Interest on Borrowings 1,302  1,180  1,067   4,371  4,547 
    Total Interest Expense 3,947  4,240  4,803   16,554  22,109 
           
    Net Interest Income 38,344  37,294  39,584   153,884  127,646 
           
    Provision for Loan Losses: 1,300  1,147  2,134   8,047  11,435 
           
    Net Interest Income After Provision for Loan Losses 37,044  36,147  37,450   145,837  116,211 
           
    Other Income:      
    Service Charges on Deposit Accounts 1,800  1,763  1,672   6,813  5,358 
    Gain (Loss) on Sales of Securities 444  (11) 15   378  135 
    Gain on Sales of Loans 3  93  4,413   10,117  4,597 
    Other Income 4,728  4,503  3,447   18,474  11,474 
    Total Other Income 6,975  6,348  9,547   35,782  21,564 
           
    Other Expenses:      
    Salaries and Employee Benefits 17,355  16,791  14,908   65,825  57,394 
    Occupancy and Equipment Expense 3,857  3,912  3,373   15,750  11,380 
    Merger and Conversion-Related Expense 266  145  548   515  3,978 
    Other Expenses 7,937  8,719  10,773   34,971  28,241 
    Total Other Expenses 29,415  29,567  29,602   117,061  100,993 
           
    Income Before Income Taxes: 14,604  12,928  17,395   64,558  36,782 
           
    Provision for Income Taxes: 2,536  2,617  3,561   12,422  6,788 
           
    Net Income:$12,068 $10,311 $13,834  $52,136 $29,994 
           


    Business First Bancshares, Inc.
    Consolidated Net Interest Margin
    (Unaudited)
                
     Three Months Ended
     December 31, 2021 September 30, 2021 December 31, 2020
    (Dollars in thousands)Average
    Outstanding
    Balance    		Interest Earned /
    Interest Paid    		Average
    Yield / Rate    		 Average
    Outstanding
    Balance    		Interest Earned /
    Interest Paid    		Average
    Yield / Rate    		 Average
    Outstanding
    Balance    		Interest Earned /
    Interest Paid    		Average
    Yield / Rate
                
    Assets           
                
    Interest-Earning Assets:           
    Total Loans (Excluding SBA PPP)$3,106,477 $38,3184.93% $2,948,491 $37,6665.11% $2,685,093 $37,5095.59%
    SBA PPP Loans 7,733  191.00%  10,150  2349.24%  365,058  4,2534.66%
    Securities Available for Sale 1,041,437  3,9041.50%  946,950  3,5981.52%  603,192  2,5721.71%
    Interest-Bearing Deposit in Other Banks 143,488  500.14%  110,472  360.13%  61,485  530.34%
    Total Interest-Earning Assets 4,299,135  42,2913.93%  4,016,063  41,5344.14%  3,714,828  44,3874.78%
    Allowance for Loan Losses (28,379)    (27,409)    (21,020)  
    Noninterest-Earning Assets 313,704     365,231     335,852   
    Total Assets$4,584,460 $42,291  $4,353,885 $41,534  $4,029,660 $44,387 
                
                
    Liabilities and Shareholders' Equity           
                
    Interest-Bearing Liabilities:           
    Interest-Bearing Deposits$2,653,041 $2,6450.40% $2,566,766 $3,0600.48% $2,313,511 $3,7360.65%
    Subordinated Debt 81,427  1,0265.04%  81,427  1,0265.04%  25,000  4226.75%
    Subordinated Debt - Trust Preferred Securities 5,000  423.36%  5,000  423.36%  5,000  423.36%
    Advances from Federal Home Loan Bank (FHLB) 83,374  2291.10%  36,015  1061.18%  105,640  4071.54%
    Paycheck Protection Program Liquidity Facility (PPPLF) -  -0.00%  -  -0.00%  79,450  700.35%
    Other Borrowings 25,774  50.08%  26,350  60.09%  37,605  1261.34%
    Total Interest-Bearing Liabilities 2,848,616  3,9470.55%  2,715,558  4,2400.62%  2,566,206  4,8030.75%
                
    Noninterest-Bearing Liabilities:           
    Noninterest-Bearing Deposits$1,276,279    $1,172,752    $1,033,593   
    Other Liabilities 28,731     30,175     30,529   
    Total Noninterest-Bearing Liabilities 1,305,010     1,202,927     1,064,122   
    Shareholders' Equity 430,834     435,400     399,332   
    Total Liabilities and Shareholders' Equity$4,584,460    $4,353,885    $4,029,660   
                
    Net Interest Spread  3.38%   3.51%   4.03%
    Net Interest Income $38,344   $37,294   $39,584 
    Net Interest Margin  3.57%   3.71%   4.26%
                
    Overall Cost of Funds  0.38%   0.44%   0.53%
                
    NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.
                


    Business First Bancshares, Inc.           
    Consolidated Net Interest Margin           
    (Unaudited)           
                
     Year Ended          
     December 31, 2021 December 31, 2020
    (Dollars in thousands)Average
    Outstanding
    Balance    		 Interest Earned /
    Interest Paid    		Average
    Yield / Rate    		 Average
    Outstanding
    Balance    		 Interest Earned /
    Interest Paid    		Average
    Yield / Rate
                
    Assets           
                
    Interest-Earning Assets:           
    Total Loans (Excluding SBA PPP)$2,878,306 $148,6385.16% $2,342,034 $131,2085.60%
    SBA PPP Loans158,714 8,1535.14% 271,388 9,2513.41%
    Securities Available for Sale870,282 13,5201.55% 483,976 9,1211.88%
    Interest-Bearing Deposit in Other Banks104,471 1270.12% 48,345 1750.36%
    Total Interest-Earning Assets4,011,773 170,4384.25% 3,145,743 149,7554.76%
    Allowance for Loan Losses(26,132)    (16,540)   
    Noninterest-Earning Assets418,029     296,917    
    Total Assets$4,403,670 $170,438   $3,426,120 $149,755  
                
                
    Liabilities and Shareholders' Equity           
                
    Interest-Bearing Liabilities:           
    Interest-Bearing Deposits$2,604,825 $12,1830.47% $1,978,295 $17,5620.89%
    Subordinated Debt68,183 3,5265.17% 25,000 1,6886.75%
    Subordinated Debt - Trust Preferred Securities5,000 1683.36% 3,341 1213.62%
    Advances from Federal Home Loan Bank (FHLB)47,325 5541.17% 113,999 1,9451.71%
    Paycheck Protection Program Liquidity Facility (PPPLF)- -0.00% 65,857 2370.36%
    Other Borrowings27,182 1230.45% 43,286 5561.28%
    Total Interest-Bearing Liabilities2,752,515 16,5540.60% 2,229,778 22,1090.99%
                
    Noninterest-Bearing Liabilities:           
    Noninterest-Bearing Deposits1,196,970     812,332    
    Other Liabilities28,493     27,671    
    Total Noninterest-Bearing Liabilities1,225,463     840,003    
    Shareholders' Equity425,692     356,339    
    Total Liabilities and Shareholders' Equity$4,403,670     $3,426,120    
                
    Net Interest Spread   3.65%    3.77%
    Net Interest Income  $153,884     $127,646  
    Net Interest Margin   3.84%    4.06%
                
    Overall Cost of Funds   0.42%    0.73%
                
    NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.           
                



    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)202120212020 20212020
             
    Interest Income:        
    Interest income$42,291 $41,534 $44,387  $170,438 $149,755 
    Core interest income 42,291  41,534 44,387  170,438  149,755 
    Interest Expense:        
    Interest expense 3,947  4,240 4,803  16,554  22,109 
    Core interest expense 3,947  4,240 4,803  16,554  22,109 
    Provision for Loan Losses: (b)        
    Provision for loan losses 1,300  1,147 2,134  8,047  11,435 
    Core provision expense 1,300  1,147 2,134  8,047  11,435 
    Other Income:        
    Other income 6,975  6,348 9,547  35,782  21,564 
    (Gains) 1osses on former bank premises and equipment 78  392 (158) 1,010  351 
    (Gains) 1osses on sale of securities (444) 11 (15) (378) (135)
    (Gains) on sale of branch (492) - -  (492) - 
    Core other income 6,117  6,751 9,374  35,922  21,780 
    Other Expense:        
    Other expense 29,415  29,567 29,602  117,061  100,993 
    Acquisition-related expenses (2) (266) (145)(568) (515) (9,559)
    Stock option exercises - excess taxes (founder's grants) -  - -  -  (71)
    Occupancy and bank premises - hurricane repair (57) (211)-  (1,556) - 
    Core other expense 29,092  29,211 29,034  114,990  91,363 
    Pre-Tax Income: (a)        
    Pre-tax income 14,604  12,928 17,395  64,558  36,782 
    (Gains) 1osses on former bank premises and equipment 78  392 (158) 1,010  351 
    (Gains) 1osses on sale of securities (444) 11 (15) (378) (135)
    (Gains) on sale of branch (492) - -  (492) - 
    Acquisition-related expenses (2) 266  145 568  515  9,559 
    Stock option exercises - excess taxes (founder's grants) -  - -  -  71 
    Occupancy and bank premises - hurricane repair 57  211 -  1,556  - 
    Core pre-tax income 14,069  13,687 17,790  66,769  46,628 
    Provision for Income Taxes: (1)        
    Provision for income taxes 2,536  2,617 3,561  12,422  6,788 
    Tax on (gains) losses on former bank premises and equipment 16  82 (33) 211  74 
    Tax on (gains) losses on sale of securities (93) 2 (3) (79) (28)
    Tax on (gains) on sale of branch (138) - -  (138) - 
    Tax on acquisition-related expenses (2) 62  24 120  108  1,727 
    Tax on stock option exercises (founder's grants) -  - -  -  601 
    Tax on occupancy and bank premises - hurricane repair 12  44 -  326  - 
    Core provision for income taxes 2,395  2,769 3,645  12,850  9,162 
    Net Income:        
    Net income 12,068  10,311 13,834  52,136  29,994 
    (Gains) losses on former bank premises and equipment, net of tax 62  310 (125) 799  277 
    (Gains) losses on sale of securities, net of tax (351) 9 (12) (299) (107)
    (Gains) on sale of branch (354) - -  (354) - 
    Acquisition-related expenses (2), net of tax 204  121 448  407  7,832 
    Stock option exercises (founder's grants), net of tax -  - -  -  (530)
    Occupancy and bank premises - hurricane repair, net of tax 45  167 -  1,230  - 
    Core net income$11,674 $10,918 $14,145  $53,919 $37,466 
             
    Pre-tax, pre-provision earnings (a+b)$15,904 $14,075 $19,529  $72,605 $48,217 
    (Gains) losses on former bank premises and equipment 78  392 (158) 1,010  351 
    (Gains) losses on sale of securities (444) 11 (15) (378) (135)
    (Gains) on sale of branch (492) - -  (492) - 
    Acquisition-related expenses (2) 266  145 568  515  9,559 
    Stock option exercises (founder's grants) -  - -  -  71 
    Occupancy and bank premises - hurricane repair 57  211 -  1,556  - 
    Core pre-tax, pre-provision earnings$15,369 $14,834 $19,924  $74,816 $58,063 
             
    Average Diluted Shares Outstanding 20,462,317  20,513,838 20,726,648  20,634,281  18,243,445 
             
    Diluted Earnings Per Share:        
    Diluted earnings per share$0.59 $0.50 $0.67  $2.53 $1.64 
    (Gains) losses on former bank premises and equipment, net of tax (0.00) 0.01 (0.01) 0.04  0.02 
    (Gains) losses on sale of securities, net of tax (0.01) 0.00 -  (0.02) (0.01)
    (Gains) on sale of branch (0.02) - -  (0.02) - 
    Acquisition-related expenses (2), net of tax 0.01  0.01 0.02  0.02  0.43 
    Stock option exercises (founder's grants), net of tax -  - -  -  (0.03)
    Occupancy and bank premises - hurricane repair, net of tax 0.00  0.01 -  0.06  - 
    Core diluted earnings per share$0.57 $0.53 $0.68  $2.61 $2.05 
             
    Pre-tax, pre-provision profit diluted earnings per share$0.78 $0.69 $0.94  $3.52 $2.64 
    (Gains) losses on former bank premises and equipment 0.00  0.01 (0.01) 0.05  0.02 
    (Gains) losses on sale of securities (0.02) 0.00 -  (0.02) (0.01)
    (Gains) on sale of branch (0.02) - -  (0.02) - 
    Acquisition-related expenses (2) 0.01  0.01 0.03  0.02  0.52 
    Stock option exercises (founder's grants) -  - -  -  0.00 
    Occupancy and bank premises - hurricane repair 0.00  0.01 -  0.08  - 
    Core pre-tax, pre-provision diluted earnings per share$0.75 $0.72 $0.96  $3.63 $3.17 
             
    (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.00% for 2021 and 2020. These rates approximated the marginal tax rates.
    (2) Includes merger and conversion-related expenses and salary and employee benefits.
             


    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)202120212020 20212020
           
           
    Total Quarterly/Year-to-Date Average Assets$4,584,460 $4,353,885 $4,029,660  $4,403,670 $3,426,120 
    Total Quarterly/Year-to-Date Average Equity$430,834 $435,400 $399,332  $425,692 $356,339 
           
    Net Income:      
    Net income$12,068 $10,311 $13,834  $52,136 $29,994 
    (Gains) losses on former bank premises and equipment, net of tax 62  310  (125)  799  277 
    (Gains) losses on sale of securities, net of tax (351) 9  (12)  (299) (107)
    (Gains) on sale of branch, net of tax (354) -  -   (354) - 
    Acquisition-related expenses (2), net of tax 204  121  448   407  7,832 
    Stock option exercises (founder's grants), net of tax -  -  -   -  (530)
    Occupancy and bank premises - hurricane repair, net of tax 45  167  -   1,230  - 
    Core net income$11,674 $10,918 $14,145  $53,919 $37,466 
           
    Return on average assets 1.05% 0.95% 1.37%  1.18% 0.88%
    Core return on average assets 1.02% 1.00% 1.40%  1.22% 1.09%
    Return on equity 11.20% 9.47% 13.86%  12.25% 8.42%
    Core return on average equity 10.84% 10.03% 14.17%  12.67% 10.51%
           
    Interest Income:      
    Interest income$42,291 $41,534 $44,387  $170,438 $149,755 
    Core interest income 42,291  41,534  44,387   170,438  149,755 
    Interest Expense:      
    Interest expense 3,947  4,240  4,803   16,554  22,109 
    Core interest expense 3,947  4,240  4,803   16,554  22,109 
    Other Income:      
    Other income 6,975  6,348  9,547   35,782  21,564 
    (Gains) losses on former bank premises and equipment 78  392  (158)  1,010  351 
    (Gains) losses on sale of securities (444) 11  (15)  (378) (135)
    (Gains) on sale of branch (492) -  -   (492) - 
    Core other income 6,117  6,751  9,374   35,922  21,780 
    Other Expense:      
    Other expense 29,415  29,567  29,602   117,061  100,993 
    Acquisition-related expenses (266) (145) (568)  (515) (9,559)
    Stock option exercises - excess taxes (founder's grants) -  -  -   -  (71)
    Occupancy and bank premises - hurricane repair (57) (211) -   (1,556) - 
    Core other expense$29,092 $29,211 $29,034  $114,990 $91,363 
           
    Efficiency Ratio:      
    Other expense (a)$29,415 $29,567 $29,602  $117,061 $100,993 
    Core other expense (c)$29,092 $29,211 $29,034  $114,990 $91,363 
    Net interest and other income (1) (b)$44,875 $43,653 $49,116  $189,288 $149,075 
    Core net interest and other income (1) (d)$44,461 $44,045 $48,958  $189,806 $149,426 
    Efficiency ratio (a/b) 65.55% 67.73% 60.27%  61.84% 67.75%
    Core efficiency ratio (c/d) 65.43% 66.32% 59.30%  60.58% 61.14%
           
    Total Average Interest-Earnings Assets$4,299,135 $4,016,063 $3,714,828  $4,011,773 $3,145,743 
           
    Net Interest Income:       
    Net interest income$38,344 $37,294 $39,584  $153,884 $127,646 
    Loan discount accretion (1,559) (1,511) (2,567)  (7,750) (6,592)
    Net interest income excluding loan discount accretion$36,785 $35,783 $37,017  $146,134 $121,054 
           
    Net interest margin (2) 3.57% 3.71% 4.26%  3.84% 4.06%
    Net interest margin excluding loan discount accretion (2) 3.42% 3.56% 3.99%  3.64% 3.85%
    Net interest spread 3.38% 3.51% 4.03%  3.65% 3.77%
    Net interest spread excluding loan discount accretion 3.24% 3.36% 3.75%  3.45% 3.56%
           
    (1) Excludes gains/losses on sales of securities.
    (2) Calculated utilizing a 30/360 day count convention.
           


    Business First Bancshares, Inc.
    Non-GAAP Measures
    (Unaudited)
        
        
     December 31,September 30,December 31,
    (Dollars in thousands, except per share data) 2021  2021  2020 
        
    Total Shareholders' (Common) Equity:   
    Total shareholders' equity$433,368 $430,221 $409,963 
    Goodwill (59,894) (60,062) (53,862)
    Core deposit and customer intangible (12,203) (12,835) (9,734)
    Total tangible common equity$361,271 $357,324 $346,367 
        
        
    Total Assets:   
    Total assets$4,726,378 $4,405,217 $4,160,360 
    Goodwill (59,894) (60,062) (53,862)
    Core deposit and customer intangible (12,203) (12,835) (9,734)
    Total tangible assets$4,654,281 $4,332,320 $4,096,764 
        
    Common shares outstanding 20,400,349  20,383,504  20,621,437 
        
    Book value per common share$21.24 $21.11 $19.88 
    Tangible book value per common share$17.71 $17.53 $16.80 
    Common equity to total assets 9.17% 9.77% 9.85%
    Tangible common equity to tangible assets 7.76% 8.25% 8.45%
        

     


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