• Business First Bancshares, Inc., Announces Financial Results for Q3 2021

    المصدر: Nasdaq GlobeNewswire / 21 أكتوبر 2021 07:31:01   America/New_York

    BATON ROUGE, La., Oct. 21, 2021 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended September 30, 2021, including net income of $10.3 million, or $0.50 per diluted share, a decrease of $7.1 million and $0.34, respectively, from the prior quarter ended June 30, 2021. On a non-GAAP basis, core net income for the quarter ended September 30, 2021, which excludes certain income and expenses, was $10.9 million, or $0.53 per diluted share, a decrease of $7.8 million and $0.37, respectively, from prior quarter ended June 30, 2021. The decrease was primarily attributable to the gain on sale recognized from the SBA PPP loan portfolio sale during the quarter ended June 30, 2021.

    “The investments we’ve made over the past few years continued to pay off in the third quarter,” said Jude Melville, president and CEO. “Record and diversified organic loan growth, success recruiting and retaining in a competitive jobs market and establishment of a new partnership with Texas Citizens Bank in Houston all illustrate the consistent strengthening of our brand and capacity to deliver for our partners in the region. Thank you to all of our employees and clients for sticking with us during Hurricane Ida and its aftermath. While we pray this will be the last major weather event to hit our footprint for some time to come, I am once again thankful to be part of such a resilient and supportive team.”   

    On October 20, 2021, Business First’s board of directors declared a quarterly dividend based upon financial performance for the third quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of November 15, 2021. The dividend will be paid on November 30, 2021, or as soon thereafter as practicable.

    Quarterly Highlights

    • Loan Growth. Total loans held for investment at September 30, 2021, were $3.1 billion, an increase of $211.4 million compared to June 30, 2021, or 7.40% for the quarter and 29.61% annualized. Excluding the decrease in Small Business Administration (SBA) Paycheck Protection Program (PPP) loans, total loans held for investment increased for the quarter ended September 30, 2021, by 8.04%, or 32.15% annualized. Loan growth in Dallas, Tx (36.0%), greater New Orleans (28.5%), and the Baton Rouge/capital region (23.3%) markets accounted for approximately 87.9% of quarterly loan growth.
    • New Loan Production Office (LPO) Activity. Business First opened an LPO in New Orleans/Metairie, La. (i.e., greater New Orleans area).  
    • Stock Repurchases. During the quarter ended September 30, 2021, Business First repurchased approximately 360,000 shares of its common stock at a weighted average price of $23.18 per share (including commissions), for a total cost of $8.4 million.
    • Efficiency Initiatives. Business First regularly evaluates its branch network in search of optimization opportunities and closed two branches recently, one in Minden, La, during Q3 2021, and a second by sale in Oak Grove, La, on October 1, 2021. Additionally, 11 interactive teller machines (ITMs) with fully functional video call centers, providing extended client hours, were launched during Q3 2021.   
    • 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, Texas. As of September 30, 2021, TCBI had consolidated total assets of $516.9 million, loans of $365.7 million, and deposits of $452.0 million.

    Financial Condition

    September 30, 2021, Compared to June 30, 2021

    Loans

    Loans held for investment increased $211.4 million, or 7.40% (29.61% annualized), for the quarter ended September 30, 2021. The increase was largely attributable to loan originations in our commercial and nonfarm, nonresidential real estate portfolios which were $62.4 million and $109.1 million, respectively. Year to date annualized loan growth was 3.34%, inclusive of SBA PPP loans. As of September 30, 2021, SBA PPP loans with an unpaid principal balance of $9.7 million remained outstanding, compared to $25.7 million as of June 30, 2021.

    Excluding the net decrease in SBA PPP loans, total loans held for investment increased for the quarter ended September 30, 2021, by 8.04%, or 32.15% annualized. Year to date annualized loan growth was 18.97% excluding SBA PPP loans.

    Credit Quality

    Nonperforming loans as a percentage of total loans held for investment increased from 0.40% as of June 30, 2021, to 0.45% as of September 30, 2021. Nonperforming assets as a percentage of total assets decreased from 0.42% as of June 30, 2021, to 0.37% as of September 30, 2021. The increase in the nonperforming loans ratio was largely attributable to $2.1 million increase in nonaccrual loans, mainly related to a single $1.5 million (commercial) loan.

    Total Shareholders’ Equity

    Book value per common share was $21.11 at September 30, 2021, compared to $20.78 at June 30, 2021. On a non-GAAP basis, tangible book value per share was $17.53 at September 30, 2021, compared to $17.24 at June 30, 2021.  

    September 30, 2021, Compared to September 30, 2020

    Loans

    Total loans held for investment decreased by $16.2 million compared to September 30, 2020, or (0.53) %, primarily due to the forgiveness and portfolio sale of SBA PPP loans. Excluding SBA PPP loans, loans increased $371.8 million, or 13.85%.

    Credit Quality

    Nonperforming loans as a percentage of total loans held for investment increased from 0.32% as of September 30, 2020, to 0.45% as of September 30, 2021. Nonperforming assets as a percentage of total assets decreased from 0.54% as of September 30, 2020, to 0.37% as of September 30, 2021. The increase in the nonperforming ratio was largely attributable to an increase in nonaccrual loans.

    Total Shareholders’ Equity

    Book value per common share was $21.11 at September 30, 2021, compared to $19.26 at September 30, 2020. On a non-GAAP basis, tangible book value per share was $17.53 at September 30, 2021, compared to $16.18 at September 30, 2020, an increase of 8.34%.

    Results of Operations

    Third Quarter 2021 Compared to Second Quarter 2021

    Net Income and Diluted Earnings Per Share

    For the quarter ended September 30, 2021, net income was $10.3 million, or $0.50 per diluted share, compared to net income of $17.4 million, or $0.84 per diluted share, for the quarter ended June 30, 2021. The decrease, $7.1 million and $0.34, respectively, was largely attributable to the $10.0 million gain on sale of loans recognized in the period ended June 30, 2021. The gain primarily related to a $9.2 million gain recognized upon the sale of SBA PPP loans with an outstanding principal balance of $243.6 million.

    On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended September 30, 2021, was $10.9 million, or $0.53 per diluted share, compared to core net income of $18.7 million, or $0.90 per diluted share, for the quarter ended June 30, 2021. Notable noncore events impacting earnings for the quarter ended September 30, 2021, included $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, compared to $938,000 in occupancy and bank premises expenses attributable to hurricane damage (related to Hurricanes Laura/Delta, 2020, but resolved in the current year) and a $540,000 loss on sales of former premises and equipment within other income, for the quarter ended June 30, 2021.

    Interest Income

    For the quarter ended September 30, 2021, net interest income totaled $37.3 million and net interest margin and net interest spread were 3.71% and 3.51%, respectively, compared to $37.9 million, 3.87% and 3.68% for the quarter ended June 30, 2021. The average yield on total interest-earning assets was 4.14% for the quarter ended September 30, 2021, compared to 4.32% for the quarter ended June 30, 2021. Net interest margin and net interest spread were largely impacted for the quarter ended September 30, 2021, by $2.2 million less in SBA PPP origination fees, or (22) basis points for each. The reduction in interest income was largely attributable to lower SBA PPP portfolio interest and fee income due to the $243.6 million portfolio sale during the quarter ended June 30, 2021, partially offset by interest and fee income due to loan growth and an additional day in the third quarter. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.11% for the quarter ended September 30, 2021, compared to 5.13% for the quarter ended June 30, 2021.

    Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.5 million) were 3.56% and 3.36%, respectively, for the quarter ended September 30, 2021, compared to 3.71% and 3.52% (excluding loan discount accretion of $1.6 million) for the quarter ended June 30, 2021.

    Interest Expense

    For the quarter ended September 30, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by one basis point, from 0.45% to 0.44%, compared to the quarter ended June 30, 2021.

    Other Income

    For the quarter ended September 30, 2021, other income was lower by $11.0 million. The reduction was primarily due to a $9.9 million gain on sale of loans recognized in the period ended June 30, 2021. Additionally, there was a reduction of Small Business Investment Company (SBIC) investment income of $1.2 million compared to the quarter ended June 30, 2021.

    Other Expenses

    For the quarter ended September 30, 2021, other expenses were lower by $1.5 million. The reduction was largely attributed to lower reserve for unfunded commitments, $586,000, and hurricane-related expenses within occupancy and bank premises, $765,000.

    Provision for Loan Losses

    During the quarter ended September 30, 2021, Business First recorded a provision for loan losses of $1.1 million, compared to $2.2 million for the quarter ended June 30, 2021. The decrease for the quarter ended September 30, 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 0.95% and 9.47%, respectively, for the quarter ended September 30, 2021, compared to 1.58% and 16.57%, respectively, for the quarter ended June 30, 2021. Both returns were impacted by higher net income for the quarter ended June 30, 2021, mainly attributable to the gain on sale of the SBA PPP portfolio.

    Third Quarter 2021 Compared to Third Quarter 2020

    Net Income and Diluted Earnings Per Share

    For the quarter ended September 30, 2021, net income was $10.3 million, or $0.50 per diluted share, compared to net income of $9.6 million, or $0.46 per diluted share, for the quarter ended September 30, 2020. The increases in net income and diluted earnings per share were largely attributable to a decrease in the provision for loan losses of $1.1 million, as increases in other income were largely offset with increases in other expenses.

    On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended September 30, 2021, was $10.9 million, or $0.53 per diluted share, compared to core net income of $11.0 million, or $0.53 per diluted share, for the quarter ended September 30, 2020. Notable noncore events impacting earnings for the quarter ended September 30, 2021, included $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, compared to $635,000 in losses on sales of former premises and equipment within other income and $1.2 million in acquisition-related expenses incurred during the quarter ended September 30, 2020.

    Interest Income

    For the quarter ended September 30, 2021, net interest income totaled $37.3 million and net interest margin and net interest spread were 3.71% and 3.51%, respectively, compared to $36.9 million, 4.06% and 3.81% for the quarter ended September 30, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.11% for the quarter ended September 30, 2021, compared to 5.65% for the quarter ended September 30, 2020. The increase in interest income was largely attributable to higher average balances in loans and securities, attributable to organic loan and deposit growth, offset by lower yielding new loans and securities.

    Average yield on total interest-earning assets, net interest margin, and net interest spread were negatively impacted for the quarter ended September 30, 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 $1.5 million) were 3.56% and 3.36%, respectively, for the quarter ended September 30, 2021, compared to 3.81% and 3.56% (excluding loan discount accretion of $2.3 million) for the quarter ended September 30, 2020.

    Interest Expense

    For the quarter ended September 30, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 19 basis points, from 0.63% to 0.44%, compared to the quarter ended September 30, 2020. The decrease in cost of funds was primarily attributable to an overall reduction in interest rates on deposit offerings and reduction in Federal Home Loan Bank (FHLB) advance balances, offset by an increase in subordinated debt balances.

    Other Income

    For the quarter ended September 30, 2021, the increase in other income, $2.1 million, was largely attributable to the $1.1 million increase in fees and brokerage commission, related to the Smith Shellnut Wilson, LLC. (SSW) acquisition which occurred in Q2 2021, as well as modest increases in gain on disposal of other assets, $641,000, debit card and ATM fee income, $133,000, and service charges, $171,000, partially offset by more losses on the sale of other real estate owned, $(454,000), compared to the quarter ended September 30, 2020.

    Other Expenses

    For the quarter ended September 30, 2021, the increase in other expense, $2.6 million, was largely attributable to the increase in salary and employee benefits, $1.4 million, as well as more modest increases in various other expenses, $687,000, depreciation and amortization, $398,000, advertising and promotions, $292,000, and occupancy and bank premises, $235,000, partially offset by a reduction in merger and conversion-related expenses, $(411,000), compared to the quarter ended September 30, 2020.

    Provision for Loan Losses

    During the quarter ended September 30, 2021, Business First recorded a provision for loan losses of $1.1 million compared to $2.5 million for the quarter ended September 30, 2020. The reserve for the quarter ended September 30, 2020, was impacted by the estimated impact on the general economy of the COVID-19 pandemic at the time.

    Return on Assets and Equity

    Return on average assets and return on average equity, each on an annualized basis, were 0.95% and 9.47%, respectively, for the quarter ended September 30, 2021, from 0.98% and 9.85%, respectively, for the quarter ended September 30, 2020.

    About Business First Bancshares, Inc.

    Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $4.4 billion in assets, $4.7 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 branches, vendors and customers; the operation of financial markets; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; the adequacy of our allowance for loan losses in relation to potential losses in our loan portfolio; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.

    Additional Information

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

    This report does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval with respect to the merger. No offer of securities shall be made except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended, and no offer to sell or solicitation of an offer to buy shall be made in any jurisdiction in which such offer or solicitation would be unlawful.

    In connection with the merger, Business First will file with the SEC a registration statement on Form S-4 (the “Registration Statement”) that will include a proxy statement of TCBI and a prospectus of Business First (the “Proxy Statement-Prospectus”), and Business First may file with the SEC other relevant documents concerning the merger. The definitive Proxy Statement-Prospectus will be mailed to the shareholders of TCBI. SHAREHOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT AND THE PROXY STATEMENT-PROSPECTUS REGARDING THE PROPOSED TRANSACTION CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BY BUSINESS FIRST, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THOSE DOCUMENTS, BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.

    Free copies of the Proxy Statement-Prospectus, as well as other filings containing information about Business First, may be obtained at the SEC’s Internet site (http://www.sec.gov), when they are filed by Business First. You will also be able to obtain these documents, when they are filed, free of charge, from Business First at www.b1bank.com. Copies of the Proxy Statement-Prospectus can also be obtained, when it becomes available, free of charge, by directing a request to Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, LA 70801, Attention: Corporate Secretary, Telephone: 225-248-7600 or to Texas Citizens Bancshares, Inc., 4949 Fairmont Parkway, Pasadena, TX 77505, Attention: Chairman and Chief Executive Officer, Telephone: 713-948-5727.

    Participants in the Solicitation

    Business First, Texas Citizens Bancshares, Inc. (TCBI) and certain of their directors, executive officers and employees may be deemed to be participants in the solicitation of proxies from the shareholders of TCBI in connection with the merger. Information about Business First’s directors and executive officers is available in its proxy statement for its 2021 annual meeting of shareholders, which was filed with the SEC on April 15, 2021. Information regarding all of the persons who may, under the rules of the SEC, be deemed participants in the proxy solicitation and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the Proxy Statement-Prospectus pertaining to the merger and other relevant materials to be filed with the SEC when they become available. Free copies of these documents may be obtained as described in the preceding paragraph.


    Business First Bancshares, Inc. 
    Selected Financial Information 
    (Unaudited) 
     For the Quarter Ended 
     September 30,June 30,September 30, 
    (Dollars in thousands)202120212020 
         
    Balance Sheet Ratios    
         
    Loans (HFI) to Deposits 81.37% 76.66% 95.25% 
    Shareholders' Equity to Assets Ratio 9.77% 9.97% 10.07% 
         
    Loans Receivable Held for Investment    
         
    Commercial (1)$723,077 $660,691 $1,015,173  
    Real Estate:    
    Construction and Land 464,808  454,055  334,100  
    Farmland 85,898  77,133  56,567  
    1-4 Family Residential 464,462  459,037  493,344  
    Multi-Family Residential 107,551  89,796  99,901  
    Nonfarm Nonresidential 1,111,771  1,002,707  970,197  
    Total Real Estate 2,234,490  2,082,728  1,954,109  
    Consumer and Other (1) 108,669  111,467  113,192  
    Total Loans (Held for Investment)$3,066,236 $2,854,886 $3,082,474  
         
    Allowance for Loan Losses    
         
    Balance, Beginning of Period$26,702 $25,251 $18,715  
    Charge-offs – Quarterly (81) (861) (956) 
    Recoveries – Quarterly 378  71  90  
    Provision for Loan Losses – Quarterly 1,147  2,241  2,491  
    Balance, End of Period$28,146 $26,702 $20,340  
         
    Allowance for Loan Losses to Total Loans (HFI) 0.92% 0.94% 0.66% 
    Net Charge-offs (Recoveries) to Average Total Loans -0.01% 0.03% 0.03% 
         
    Remaining Loan Purchase Discount$29,390 $30,900 $38,207  
         
    Nonperforming Assets    
         
    Nonperforming Loans:    
    Nonaccrual Loans (2)$12,622 $10,568 $7,988  
    Loans Past Due 90 Days or More (2) 1,030  893  1,986  
    Total Nonperforming Loans 13,652  11,461  9,974  
    Other Nonperforming Assets:    
    Other Real Estate Owned 2,152  5,890  10,994  
    Other Nonperforming Assets: 675  665  414  
    Total Other Nonperforming Assets 2,827  6,555  11,408  
    Total Nonperforming Assets$16,479 $18,016 $21,382  
         
    Nonperforming Loans to Total Loans (HFI) 0.45% 0.40% 0.32% 
    Nonperforming Assets to Total Assets 0.37% 0.42% 0.54% 
         
    (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $9.7 million
      of the commercial portfolio as of September 30, 2021.    
    SBA PPP loans accounted for $25.7 million of the commercial portfolio as of June 30, 2021. 
    SBA PPP loans accounted for $392.9 million and $4.8 million of the commercial  
     and consumer portfolios, respectively, as of September 30, 2020.   
         
    (2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if
     the Company does not expect to receive payment in full, as the Company is currently accreting interest income
    over the expected life of the loans.    
         


    Business First Bancshares, Inc. 
    Selected Financial Information 
    (Unaudited) 
           
     Three Months EndedNine Months Ended 
     September 30,June 30,September 30,September 30,September 30, 
    (Dollars in thousands, except per share data) 2021  2021  2020  2021  2020  
           
    Per Share Data      
           
    Basic Earnings per Common Share$0.51 $0.84 $0.47 $1.95 $0.93  
    Diluted Earnings per Common Share 0.50  0.84  0.46  1.94  0.93  
    Dividends per Common Share 0.12  0.12  0.10  0.34  0.30  
    Book Value per Common Share 21.11  20.78  19.26  21.11  19.26  
           
           
    Average Common Shares Outstanding 20,384,879  20,707,313  20,613,481  20,570,506  17,356,830  
    Average Diluted Shares Outstanding 20,513,838  20,827,786  20,704,444  20,692,344  17,409,821  
    End of Period Common Shares Outstanding 20,383,504  20,740,759  20,667,237  20,383,504  20,667,237  
           
           
    Annualized Performance Ratios      
           
    Return on Average Assets 0.95% 1.58% 0.98% 1.23% 0.67% 
    Return on Average Equity 9.47% 16.57% 9.85% 12.60% 6.30% 
    Net Interest Margin 3.71% 3.87% 4.06% 3.93% 3.97% 
    Net Interest Spread 3.51% 3.68% 3.81% 3.75% 3.66% 
    Efficiency Ratio (1) 67.73% 56.20% 65.65% 60.69% 71.42% 
           
    Total Quarterly/Year-to-Date Average Assets$4,353,885 $4,399,911 $3,933,631 $4,343,407 $3,224,940  
    Total Quarterly/Year-to-Date Average Equity 435,400  420,640  390,209  423,977  341,904  
           
    Other Expenses      
           
    Salaries and Employee Benefits$16,791 $16,753 $15,430 $48,470 $42,486  
    Occupancy and Bank Premises 1,629  2,276  1,394  5,716  3,824  
    Depreciation and Amortization 1,720  1,686  1,322  4,999  2,996  
    Data Processing 1,994  2,288  1,832  6,105  3,539  
    FDIC Assessment Fees 581  436  594  1,526  1,013  
    Legal and Other Professional Fees 553  905  555  2,199  1,492  
    Advertising and Promotions 612  624  320  1,713  960  
    Utilities and Communications 678  636  789  1,889  1,751  
    Ad Valorem Shares Tax 675  675  673  2,050  1,498  
    Directors' Fees 201  194  117  583  291  
    Other Real Estate Owned Expenses and Write-Downs 103  178  171  660  475  
    Merger and Conversion-Related Expenses 145  94  556  249  3,430  
    Other 3,885  4,371  3,198  11,487  7,636  
    Total Other Expenses$29,567 $31,116 $26,951 $87,646 $71,391  
           
    Other Income      
           
    Service Charges on Deposit Accounts$1,763 $1,683 $1,592 $5,013 $3,686  
    Gain (Loss) on Sales of Securities (11) (50) 95  (66) 120  
    Debit card and ATM Fee Income 1,532  1,777  1,399  4,645  2,765  
    Bank-Owned Life Insurance Income 356  355  237  1,029  689  
    Gain (Loss) on Sales of Loans 93  10,042  -  10,114  184  
    Mortgage Origination Income 227  241  123  697  364  
    Fees and Brokerage Commission 1,335  1,416  281  3,294  537  
    Correspondent Bank Income 10  123  45  276  186  
    Participation Fee Income 250  240  136  737  182  
    Gain (Loss) on Sales of Other Real Estate Owned (558) (575) (104) (1,087) 28  
    Gain (Loss) on Disposal of Other Assets 14  (9) (627) 122  (627) 
    Pass-through Income from SBIC Partnerships 405  1,602  364  2,060  2,368  
    Other 932  531  676  1,973  1,535  
    Total Other Income$6,348 $17,376 $4,217 $28,807 $12,017  
           
    (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) 
         
     September 30,June 30,September 30, 
    (Dollars in thousands) 2021  2021  2020  
         
    Assets    
         
    Cash and Due From Banks$81,361 $130,769 $103,894  
    Federal Funds Sold 4,646  232,391  8,395  
    Securities Available for Sale, at Fair Values 1,034,491  882,802  547,535  
    Mortgage Loans Held for Sale 1,498  1,834  671  
    Loans and Lease Receivable 3,066,236  2,854,886  3,082,474  
    Allowance for Loan Losses (28,146) (26,702) (20,340) 
    Net Loans and Lease Receivable 3,038,090  2,828,184  3,062,134  
    Premises and Equipment, Net 56,611  57,576  59,241  
    Accrued Interest Receivable 19,025  20,841  25,622  
    Other Equity Securities 15,259  14,043  15,641  
    Other Real Estate Owned 2,152  5,890  10,994  
    Cash Value of Life Insurance 59,085  60,703  44,779  
    Deferred Taxes, Net 5,618  4,652  5,829  
    Goodwill 60,062  60,062  53,627  
    Core Deposit and Customer Intangibles 12,835  13,271  10,061  
    Other Assets 14,484  10,941  6,247  
         
    Total Assets$4,405,217 $4,323,959 $3,954,670  
         
         
    Liabilities    
         
    Deposits    
    Noninterest-Bearing$1,201,791 $1,175,624 $945,485  
    Interest-Bearing 2,566,330  2,548,599  2,290,776  
    Total Deposits 3,768,121  3,724,223  3,236,261  
         
    Securities Sold Under Agreements to Repurchase 27,195  25,837  24,604  
    Fed Funds Purchased 16,087  -  -  
    Short-Term Borrowings 20  20  5,033  
    Long-Term Borrowings -  -  6,000  
    Payroll Protection Program Liquidity Facility -  -  107,076  
    Subordinated Debt 81,427  81,427  25,000  
    Subordinated Debt - Trust Preferred Securities 5,000  5,000  5,000  
    Federal Home Loan Bank Borrowings 48,002  28,023  117,950  
    Accrued Interest Payable 1,835  1,938  3,621  
    Other Liabilities 27,309  26,485  26,039  
         
    Total Liabilities 3,974,996  3,892,953  3,556,584  
         
    Shareholders' Equity    
         
    Common Stock 20,384  20,741  20,667  
    Additional Paid-In Capital 291,847  299,014  299,762  
    Retained Earnings 112,243  104,382  67,399  
    Accumulated Other Comprehensive Income 5,747  6,869  10,258  
         
    Total Shareholders' Equity 430,221  431,006  398,086  
         
    Total Liabilities and Shareholders' Equity$4,405,217 $4,323,959 $3,954,670  
         


    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) 2021  2021  2020  2021  2020 
            
    Interest Income:       
    Interest and Fees on Loans$37,900 $39,135 $39,918 $118,454 $98,697 
    Interest and Dividends on Securities 3,598  3,189  2,474  9,616  6,380 
    Interest on Federal Funds Sold and Due From Banks 36  27  69  77  291 
    Total Interest Income 41,534  42,351  42,461  128,147  105,368 
            
    Interest Expense:       
    Interest on Deposits 3,060  3,235  4,345  9,538  13,826 
    Interest on Borrowings 1,180  1,171  1,184  3,069  3,480 
    Total Interest Expense 4,240  4,406  5,529  12,607  17,306 
            
    Net Interest Income 37,294  37,945  36,932  115,540  88,062 
            
    Provision for Loan Losses: 1,147  2,241  2,491  6,747  9,301 
            
    Net Interest Income After Provision for Loan Losses 36,147  35,704  34,441  108,793  78,761 
            
    Other Income:       
    Service Charges on Deposit Accounts 1,763  1,683  1,592  5,013  3,686 
    Gain (Loss) on Sales of Securities (11) (50) 95  (66) 120 
    Gain (Loss) on Sales of Loans 93  10,042  -  10,114  184 
    Other Income 4,503  5,701  2,530  13,746  8,027 
    Total Other Income 6,348  17,376  4,217  28,807  12,017 
            
    Other Expenses:       
    Salaries and Employee Benefits 16,791  16,753  15,430  48,470  42,486 
    Occupancy and Equipment Expense 3,912  4,264  3,228  11,893  8,007 
    Merger and Conversion-Related Expense 145  94  556  249  3,430 
    Other Expenses 8,719  10,005  7,737  27,034  17,468 
    Total Other Expenses 29,567  31,116  26,951  87,646  71,391 
            
    Income Before Income Taxes: 12,928  21,964  11,707  49,954  19,387 
            
    Provision for Income Taxes: 2,617  4,536  2,098  9,886  3,227 
            
    Net Income:$10,311 $17,428 $9,609 $40,068 $16,160 
            


    Business First Bancshares, Inc. 
    Consolidated Net Interest Margin 
    (Unaudited) 
                 
                 
     Three Months Ended 
     September 30, 2021 June 30, 2021 September 30, 2020 
     Average   Average   Average   
     OutstandingInterest Earned /Average OutstandingInterest Earned /Average OutstandingInterest Earned /Average 
    (Dollars in thousands)BalanceInterest PaidYield / Rate BalanceInterest PaidYield / Rate BalanceInterest PaidYield / Rate 
                 
    Assets            
                 
    Interest-Earning Assets:            
    Total Loans (Excluding SBA PPP)$2,948,491 $37,6665.11% $2,814,593 $36,1165.13% $2,638,417 $37,2505.65% 
    SBA PPP Loans 10,150  2349.24%  242,015 $3,0194.99%  399,366  2,6682.67% 
    Securities Available for Sale 946,950  3,5981.52%  801,268  3,1891.59%  564,630  2,4741.75% 
    Interest-Bearing Deposit in Other Banks 110,472  360.13%  62,693  270.17%  33,970  690.81% 
    Total Interest-Earning Assets 4,016,063  41,5344.14%  3,920,569  42,3514.32%  3,636,383  42,4614.67% 
    Allowance for Loan Losses (27,409)    (26,032)    (19,329)   
    Noninterest-Earning Assets 365,231     505,374     316,577    
    Total Assets$4,353,885 $41,534  $4,399,911 $42,351  $3,933,631 $42,461  
                 
                 
    Liabilities and Shareholders' Equity            
                 
    Interest-Bearing Liabilities:            
    Interest-Bearing Deposits$2,566,766 $3,0600.48% $2,615,241 $3,2350.49% $2,262,774 $4,3450.77% 
    Subordinated Debt 81,427  1,0265.04%  81,427  1,0154.99%  25,000  4226.75% 
    Subordinated Debt - Trust Preferred Securities 5,000  423.36%  5,000  433.44%  5,000  453.60% 
    Advances from Federal Home Loan Bank (FHLB) 36,015  1061.18%  32,887  1081.31%  122,592  5151.68% 
    Paycheck Protection Program Liquidity Facility (PPPLF) -  -0.00%  -  -0.00%  107,076  950.35% 
    Other Borrowings 26,350  60.09%  24,909  50.08%  35,437  1071.21% 
    Total Interest-Bearing Liabilities 2,715,558  4,2400.62%  2,759,464  4,4060.64%  2,557,879  5,5290.86% 
                 
    Noninterest-Bearing Liabilities:            
    Noninterest-Bearing Deposits$1,172,752    $1,191,900    $957,090    
    Other Liabilities 30,175     27,907     28,453    
    Total Noninterest-Bearing Liabilities 1,202,927     1,219,807     985,543    
    Shareholders' Equity: 435,400     420,640     390,209    
    Total Liabilities and Shareholders' Equity$4,353,885    $4,399,911    $3,933,631    
                 
    Net Interest Spread  3.51%   3.68%   3.81% 
    Net Interest Income $37,294   $37,945   $36,932  
    Net Interest Margin  3.71%   3.87%   4.06% 
                 
    Overall Cost of Funds  0.44%   0.45%   0.63% 
                 
    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) 
             
             
     Nine Months Ended 
     September 30, 2021 September 30, 2020 
     Average   Average   
     OutstandingInterest Earned /Average OutstandingInterest Earned /Average 
    (Dollars in thousands)BalanceInterest PaidYield / Rate BalanceInterest PaidYield / Rate 
             
    Assets        
             
    Interest-Earning Assets:        
    Total Loans (Excluding SBA PPP)$ 2,802,246$ 110,3205.25% $ 2,227,681$ 93,6995.61% 
    SBA PPP Loans209,0418,1345.19% 240,1644,9982.77% 
    Securities Available for Sale813,2319,6161.58% 444,2376,3801.91% 
    Interest-Bearing Deposit in Other Banks91,466770.11% 43,9652910.88% 
    Total Interest-Earning Assets3,915,984128,1474.36% 2,956,047105,3684.75% 
    Allowance for Loan Losses(25,383)   (15,046)   
    Noninterest-Earning Assets452,806   283,939   
    Total Assets$ 4,343,407$ 128,147  $ 3,224,940$ 105,368  
             
             
    Liabilities and Shareholders' Equity        
             
    Interest-Bearing Liabilities:        
    Interest-Bearing Deposits$ 2,588,756$ 9,5380.49% $ 1,866,556$ 13,8260.99% 
    Subordinated Debt63,7682,4995.23% 25,0001,2666.75% 
    Subordinated Debt - Trust Preferred Securities5,0001273.39% 2,778793.79% 
    Advances from Federal Home Loan Bank (FHLB)35,3093251.23% 116,7851,5381.76% 
    Paycheck Protection Program Liquidity Facility (PPPLF)--0.00% 61,3261670.36% 
    Other Borrowings27,6511180.57% 45,1794301.27% 
    Total Interest-Bearing Liabilities2,720,48412,6070.62% 2,117,62417,3061.09% 
             
    Noninterest-Bearing Liabilities:        
    Noninterest-Bearing Deposits1,170,534   738,578   
    Other Liabilities28,412   26,834   
    Total Noninterest-Bearing Liabilities1,198,946   765,412   
    Shareholders' Equity423,977   341,904   
    Total Liabilities and Shareholders' Equity$ 4,343,407   $ 3,224,940   
             
    Net Interest Spread  3.75%   3.66% 
    Net Interest Income $ 115,540   $ 88,062  
    Net Interest Margin  3.93%   3.97% 
             
    Overall Cost of Funds  0.43%   0.81% 
             
    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 Nine Months Ended  
     September 30,June 30,September 30, September 30,September 30,  
    (Dollars in thousands, except per share data) 2021  2021  2020   2021  2020   
             
    Interest Income:        
    Interest income$41,534 $42,351 $42,461  $128,147 $105,368   
    Core interest income 41,534  42,351  42,461   128,147  105,368   
    Interest Expense:        
    Interest expense 4,240  4,406  5,529   12,607  17,306   
    Core interest expense 4,240  4,406  5,529   12,607  17,306   
    Provision for Loan Losses: (b)        
    Provision for loan losses 1,147  2,241  2,491   6,747  9,301   
    Core provision expense 1,147  2,241  2,491   6,747  9,301   
    Other Income:        
    Other income 6,348  17,376  4,217   28,807  12,017   
    (Gains) 1osses on former bank premises and equipment 392  540  635   932  509   
    (Gains) 1osses on sale of securities 11  50  (95)  66  (120)  
    Core other income 6,751  17,966  4,757   29,805  12,406   
    Other Expense:        
    Other expense 29,567  31,116  26,951   87,646  71,391   
    Acquisition-related expenses (2) (145) (94) (1,206)  (249) (8,991)  
    Stock option exercises - excess taxes (founder's grants) -  -  -   -  (71)  
    Occupancy and bank premises - hurricane repair (211) (938) -   (1,499) -   
    Core other expense 29,211  30,084  25,745 - 85,898  62,329   
    Pre-Tax Income: (a)        
    Pre-tax income 12,928  21,964  11,707   49,954  19,387   
    (Gains) 1osses on former bank premises and equipment 392  540  635   932  509   
    (Gains) 1osses on sale of securities 11  50  (95)  66  (120)  
    Acquisition-related expenses (2) 145  94  1,206   249  8,991   
    Stock option exercises - excess taxes (founder's grants) -  -  -   -  71   
    Occupancy and bank premises - hurricane repair 211  938  -   1,499  -   
    Core pre-tax income 13,687  23,586  13,453   52,700  28,838   
    Provision for Income Taxes: (1)        
    Provision for income taxes 2,617  4,536  2,098   9,886  3,227   
    Tax on (gains) losses on former bank premises and equipment 82  113  133   195  107   
    Tax on (gains) losses on sale of securities 2  11  (20)  14  (25)  
    Tax on acquisition-related expenses (2) 24  20  241   46  1,607   
    Tax on stock option exercises (founder's grants) -  -  -   -  601   
    Tax on occupancy and bank premises - hurricane repair 44  197  -   314  -   
    Core provision for income taxes 2,769  4,877  2,452   10,455  5,517   
    Net Income:        
    Net income 10,311  17,428  9,609   40,068  16,160   
    (Gains) losses on former bank premises and equipment , net of tax 310  427  502   737  402   
    (Gains) losses on sale of securities, net of tax 9  39  (75)  52  (95)  
    Acquisition-related expenses (2), net of tax 121  74  965   203  7,384   
    Stock option exercises, net of tax (founder's grants) -  -  -   -  (530)  
    Occupancy and bank premises - hurricane repair, net of tax 167  741  -   1,185  -   
    Core net income$10,918 $18,709 $11,001  $42,245 $23,321   
             
    Pre-tax, pre-provision earnings (a+b)$14,075 $24,205 $14,198  $56,701 $28,688   
    (Gains) losses on former bank premises and equipment 392  540  635   932  509   
    (Gains) losses on sale of securities 11  50  (95)  66  (120)  
    Acquisition-related expenses (2) 145  94  1,206   249  8,991   
    Stock option exercises (founder's grants) -  -  -   -  71   
    Occupancy and bank premises - hurricane repair 211  938  -   1,499  -   
    Core pre-tax, pre-provision earnings$14,834 $25,827 $15,944  $59,447 $38,139   
             
    Average Diluted Shares Outstanding 20,513,838  20,827,786  20,704,444   20,692,344  17,409,821   
             
    Diluted Earnings Per Share:        
    Diluted earnings per share$0.50 $0.84 $0.46  $1.94 $0.93   
    (Gains) losses on former bank premises and equipment , net of tax 0.01  0.02  0.02   0.04  0.02   
    (Gains) losses on sale of securities, net of tax 0.00  0.00  (0.00)  0.00  (0.01)  
    Acquisition-related expenses (2), net of tax 0.01  0.00  0.05   0.01  0.43   
    Stock option exercises (founder's grants) -  -  -   -  (0.03)  
    Occupancy and bank premises - hurricane repair, net of tax 0.01  0.04  -   0.06  -   
    Core diluted earnings per share$0.53 $0.90 $0.53  $2.05 $1.34   
             
    Pre-tax, pre-provision profit diluted earnings per share$0.69 $1.16 $0.69  $2.74 $1.65   
    (Gains) losses on former bank premises and equipment 0.01  0.03  0.03   0.05  0.03   
    (Gains) losses on sale of securities 0.00  0.00  (0.01)  0.00  (0.01)  
    Acquisition-related expenses (2) 0.01  0.00  0.06   0.01  0.52   
    Stock option exercises (founder's grants) -  -  -   -  0.00   
    Occupancy and bank premises - hurricane repair 0.01  0.05  -   0.07  -   
    Core pre-tax, pre-provision diluted earnings per share$0.72 $1.24 $0.77  $2.87 $2.19   
             
    (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21% 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 Nine Months Ended  
     September 30,June 30,September 30, September 30,September 30, 
    (Dollars in thousands, except per share data) 2021  2021  2020   2021  2020   
             
             
    Total Quarterly/Year-to-Date Average Assets$4,353,885 $4,399,911 $3,933,631  $4,343,407 $3,224,940   
    Total Quarterly/Year-to-Date Average Equity$435,400 $420,640 $390,209  $423,977 $341,904   
             
    Net Income:        
    Net income$10,311 $17,428 $9,609  $40,068 $16,160   
    (Gains) losses on former bank premises and equipment , net of tax 310  427  502   737  402   
    (Gains) losses on sale of securities, net of tax 9  39  (75)  52  (95)  
    Acquisition-related expenses (2), net of tax 121  74  965   203  7,384   
    Stock option exercises, net of tax (founder's grants) -  -  -   -  (530)  
    Occupancy and bank premises - hurricane repair, net of tax 167  741  -   1,185  -   
    Core net income$10,918 $18,709 $11,001  $42,245 $23,321   
             
    Return on average assets 0.95% 1.58% 0.98%  1.23% 0.67%  
    Core return on average assets 1.00% 1.70% 1.12%  1.30% 0.96%  
    Return on equity 9.47% 16.57% 9.85%  12.60% 6.30%  
    Core return on average equity 10.03% 17.79% 11.28%  13.29% 9.09%  
             
    Interest Income:        
    Interest income$41,534 $42,351 $42,461  $128,147 $105,368   
    Core interest income 41,534  42,351  42,461   128,147  105,368   
    Interest Expense:        
    Interest expense 4,240  4,406  5,529   12,607  17,306   
    Core interest expense 4,240  4,406  5,529   12,607  17,306   
    Other Income:        
    Other income 6,348  17,376  4,217   28,807  12,017   
    (Gains) losses on former bank premises and equipment 392  540  635   932  509   
    (Gains) losses on sale of securities 11  50  (95)  66  (120)  
    Core other income 6,751  17,966  4,757   29,805  12,406   
    Other Expense:        
    Other expense 29,567  31,116  26,951   87,646  71,391   
    Acquisition-related expenses (145) (94) (1,206)  (249) (8,991)  
    Stock option exercises - excess taxes (founder's grants) -  -  -   -  (71)  
    Occupancy and bank premises - hurricane repair (211) (938) -   (1,499) -   
    Core other expense$29,211 $30,084 $25,745  $85,898 $62,329   
             
    Efficiency Ratio:        
    Other expense (a)$29,567 $31,116 $26,951  $87,646 $71,391   
    Core other expense (c)$29,211 $30,084 $25,745  $85,898 $62,329   
    Net interest and other income (1) (b)$43,653 $55,371 $41,054  $144,413 $99,959   
    Core net interest and other income (1) (d)$44,045 $55,911 $41,689  $145,345 $100,468   
    Efficiency ratio (a/b) 67.73% 56.20% 65.65%  60.69% 71.42%  
    Core efficiency ratio (c/d) 66.32% 53.81% 61.75%  59.10% 62.04%  
             
    Total Average Interest-Earnings Assets$4,016,063 $3,920,569 $3,636,383  $3,915,984 $2,956,047   
             
    Net Interest Income:         
    Net interest income$37,294 $37,945 $36,932  $115,540 $88,062   
    Loan discount accretion (1,511) (1,617) (2,270)  (6,191) (4,025)  
    Net interest income excluding loan discount accretion$35,783 $36,328 $34,662  $109,349 $84,037   
             
    Net interest margin (2) 3.71% 3.87% 4.06%  3.93% 3.97%  
    Net interest margin excluding loan discount accretion (2) 3.56% 3.71% 3.81%  3.72% 3.79%  
    Net interest spread 3.51% 3.68% 3.81%  3.75% 3.66%  
    Net interest spread excluding loan discount accretion 3.36% 3.52% 3.56%  3.53% 3.48%  
             
    (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) 
         
         
     September 30,June 30,September 30, 
    (Dollars in thousands, except per share data)202120212020 
         
    Total Shareholders' (Common) Equity:    
    Total shareholders' equity$430,221 $431,006 $398,086  
    Goodwill (60,062) (60,062) (53,627) 
    Core deposit and customer intangible (12,835) (13,271) (10,061) 
    Total tangible common equity$357,324 $357,673 $334,398  
         
         
    Total Assets:    
    Total assets$4,405,217 $4,323,959 $3,954,670  
    Goodwill (60,062) (60,062) (53,627) 
    Core deposit and customer intangible (12,835) (13,271) (10,061) 
    Total tangible assets$4,332,320 $4,250,626 $3,890,982  
         
    Common shares outstanding 20,383,504  20,740,759  20,667,237  
         
    Book value per common share$21.11 $20.78 $19.26  
    Tangible book value per common share$17.53 $17.24 $16.18  
    Common equity to total assets 9.77% 9.97% 10.07% 
    Tangible common equity to tangible assets 8.25% 8.41% 8.59% 
         

    Misty Albrecht
    b1BANK
    225.286.7879
    Misty.Albrecht@b1BANK.com


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