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Business First Bancshares, Inc., Announces Financial Results for Q2 2024
المصدر: Nasdaq GlobeNewswire / 25 يوليو 2024 16:01:01 America/New_York
BATON ROUGE, La., July 25, 2024 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended June 30, 2024, including net income available to common shareholders of $15.9 million or $0.62 per diluted common share, increases of $3.6 million and $0.14, respectively, compared to the linked quarter ended March 31, 2024. On a non-GAAP basis, core net income for the quarter ended June 30, 2024, which excludes certain income and expenses, was $16.3 million or $0.64 per diluted common share, increases of $3.5 million and $0.14, respectively, from the linked quarter.
“I am encouraged by our company's performance in the second quarter,” said Jude Melville, president and CEO, “Our bankers' hard work and focus paid off in quarter-over- quarter improvement in earnings, net interest margin, noninterest income, loan and deposit mix and capital accretion. We look forward to continuing that hard work over the course of 2024.”
On Thursday, July 25, 2024, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the second quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on August 31, 2024, or as soon thereafter as practicable, to the shareholders of record as of August 15, 2024.
Quarterly Highlights
- Net Interest Margin (NIM) Expansion. For the quarter ended June 30, 2024, net interest income totaled $54.0 million and net interest margin and net interest spread were 3.45% and 2.47%, respectively, compared to $51.5 million, 3.32% and 2.36% from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.7 million) were 3.34% and 2.37%, respectively, for the quarter ended June 30, 2024, compared to 3.27% and 2.31% (excluding loan discount accretion of $0.8 million) for the linked quarter.
- Noninterest Income Investments. Noninterest income for the quarter ended June 30, 2024, increased $2.8 million or 29.73% from the linked quarter. Significant drivers for the quarter were increased loan sale activity, largely related to a $1.9 million gain on sale from a newly originated USDA loan, as well as increased origination and sale of Small Business Administration (SBA) loans, due to the first quarter acquisition of Waterstone LSP. Additionally, continued progress in the newly formed customer swap business along with improved revenue in service charge fees and debit card and ATM fees improved financial results.
- Deposits. During the quarter ended June 30, 2024, noninterest-bearing deposits increased $15.2 million or 1.17% and money market accounts increased $130.1 million or 7.26%. Deposits decreased $9.1 million or 0.16%, 0.66% annualized, for the quarter ended June 30, 2024, compared to the linked quarter. The decrease in interest-bearing deposits was attributable to strategic reductions of $75.1 million of brokered deposits with a weighted average rate of 5.16%.
- Loan Growth. Loans held for investment increased $74.0 million or 1.45%, 5.85% annualized, from the linked quarter. Loan growth was mostly attributable to the $93.4 million increase in the commercial and industrial (C&I) portfolio. Business First continued the trend of reducing construction and development (C&D) portfolio exposure, with a decrease of $24.6 million from the linked quarter.
- Oakwood Acquisition. On April 25, 2024, Business First announced that it entered into a definitive agreement to acquire Oakwood Bancshares, Inc. (Oakwood) and its wholly-owned subsidiary, Oakwood Bank. Oakwood had approximately $839.7 million of total assets as of March 31, 2024.
Statement of Financial Condition
Loans
Loans held for investment increased $74.0 million or 1.45%, 5.85% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the C&I portfolio of $93.4 million, offset by a $24.6 million reduction in the C&D portfolio.
The North Louisiana region produced 59.57% of net loan growth from the linked quarter based on unpaid principal balance, while the Capital region produced 21.49% and Bayou region produced 20.93%. Based on unpaid principal balances, Texas-based loans represent approximately 36% of the overall loan portfolio as of June 30, 2024.
Credit Quality
Credit quality remained stable during the quarter ended June 30, 2024, compared to the linked quarter. The ratio of nonperforming loans compared to loans held for investment remained unchanged at 0.43% at June 30, 2024, while the ratio of nonperforming assets compared to total assets slightly increased from 0.34% to 0.36% at June 30, 2024. The increase was attributable to increases of $644,000 in other real estate owned and $730,000 in nonperforming loans.
Securities
The securities portfolio increased $2.1 million or 0.25%, from the linked quarter, impacted by $4.9 million in positive fair value adjustments. The securities portfolio, based on estimated fair value, represented 13.05% of total assets as of June 30, 2024.
Deposits
Deposits decreased $9.1 million or 0.16%, 0.66% annualized, for the quarter ended June 30, 2024, compared to the linked quarter. During the quarter ended June 30, 2024, noninterest-bearing deposits increased $15.2 million or 1.17%. The increase in noninterest bearing deposits was attributable to $39.1 million in new account originations as of June 30, 2024. The North Louisiana region produced 37.8% of the new account balances, followed by the Dallas-Fort Worth region and Southwest Louisiana region with 26.3% and 11.5%, respectively.
Interest-bearing deposits decreased $24.2 million or 0.57%, compared to the linked quarter. The decrease in interest-bearing deposits was attributable to strategic reductions of $75.1 million of brokered deposits with a weighted average rate of 5.16%.
Money market accounts increased $130.1 million or 7.26% from the linked quarter. The increase in money market balances was attributable to $138.8 million in new account originations with a weighted average rate of 4.88% as of June 30, 2024. The Southwest Louisiana region produced 44.2% of the new account balances, followed by the Texas regions and Southeast Louisiana region with 21.6% and 17.0%, respectively.
Borrowings
Borrowings decreased $1.8 million or 0.42%, from the linked quarter.
Shareholders’ Equity
Accumulated other comprehensive income (AOCI) increased $3.9 million during the second quarter due to positive after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $23.24 at June 30, 2024, compared to $22.64 at March 31, 2024. On a non-GAAP basis, tangible book value per common share increased from $18.61 at March 31, 2024, to $19.22 at June 30, 2024.
Results of Operations
Net Interest Income
For the quarter ended June 30, 2024, net interest income totaled $54.0 million, compared to $51.5 million from the linked quarter. Loan and interest-earning asset yields of 7.07% and 6.38%, respectively, increased 19 and 20 basis points, respectively, compared to 6.88% and 6.18% from the linked quarter. Both ratios were impacted positively by a $900,000 increase in loan discount accretion. Net interest margin and net interest spread were 3.45% and 2.47% compared to 3.32% and 2.36%, respectively, for the linked quarter. The overall cost of funds, which include noninterest- bearing deposits, increased from 3.00% to 3.07% or 7 basis points, from the linked quarter due to higher cost deposits.
Non-GAAP net interest income (excluding loan discount accretion of $1.7 million) totaled $52.3 million for the quarter ended June 30, 2024, compared to $50.7 million (excluding loan discount accretion of $0.8 million) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.7 million) were 3.34% and 2.37%, respectively, for the quarter ended June 30, 2024, compared to 3.27% and 2.31% (excluding loan discount accretion of $0.8 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 13 basis points to 6.94% from 6.81%, and interest earnings asset yields increased 15 basis points to 6.28% from 6.13%, compared to the linked quarter.
Provision for Credit Losses
During the quarter ended June 30, 2024, Business First recorded a provision for credit losses of $1.3 million, compared to $1.2 million from the linked quarter. The current quarter’s reserve was largely attributable to loan growth and net charge-offs, partially offset by reductions due to changes in the portfolio mix.
Other Income
For the quarter ended June 30, 2024, other income increased $2.8 million or 29.73%, compared to the linked quarter. The net increase was largely attributable to a $2.3 million increase in gain on sales of loans attributable to increased sales of SBA loans and a $1.9 million gain from the sale of a large USDA loan during the quarter ended June 30, 2024 compared to the linked quarter.
Other Expenses
For the quarter ended June 30, 2024, other expenses increased by $588,000 or 1.38%, compared to the linked quarter. The increase was attributable to marginal increases in several categories.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.95% and 10.94% for the quarter ended June 30, 2024, compared to 0.74% and 8.51%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 0.98% and 11.22% for the quarter ended June 30, 2024, compared to 0.77% and 8.92%, respectively, for the linked quarter.
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Thursday, July 25, 2024, at 4:00 p.m. Central Time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 9962250, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/8tfqtsaw. On the day of the presentation, the corresponding slide presentation will be available to view on the b1BANK website at https://www.b1bank.com/shareholder-info.About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.7 billion in assets, $6.1 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP “core” measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition- related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Business First’s core business. These non- GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.Special Note Regarding Forward-Looking Statements
Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.Additional Information
For additional information about Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.Additional Information and Where to Find It
This communication is being made with respect to the proposed transaction involving BFST and Oakwood. This material is not a solicitation of any vote or approval of the Oakwood shareholders and is not a substitute for the proxy statement/prospectus or any other documents that BFST and Oakwood may send to their respective shareholders in connection with the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities.In connection with the proposed transaction between BFST and Oakwood, BFST has filed with the SEC a Registration Statement on Form S-4 (the “Registration Statement”), which will include a proxy statement of Oakwood and a prospectus of BFST, as well as other relevant documents concerning the proposed transaction. Before making any voting or investment decisions, investors and shareholders are urged to read carefully the Registration Statement and the proxy statement/prospectus regarding the proposed transaction, as well as any other relevant documents filed with the SEC and any amendments or supplements to those documents, because they will contain important information. Oakwood will mail the proxy statement/prospectus to its shareholders. Shareholders are also urged to carefully review and consider BFST’s public filings with the SEC, including, but not limited to, its proxy statements, its Annual Reports on Form 10-K, its Quarterly Reports on Form 10- Q, and its Current Reports on Form 8-K. Copies of the Registration Statement and proxy statement/prospectus and other filings incorporated by reference therein, as well as other filings containing information about BFST, may be obtained, free of charge, as they become available at the SEC’s website at www.sec.gov. You will also be able to obtain these documents, when they are filed, free of charge, from BFST at www.b1BANK.com. Copies of the proxy statement/prospectus can also be obtained, when they become 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.
Participants in the Solicitation
BFST, Oakwood and certain of their respective directors, executive officers and employees may, under the SEC’s rules, be deemed to be participants in the solicitation of proxies of Oakwood’s shareholders in connection with the proposed transaction.
Information about BFST’s directors and executive officers is available in its definitive proxy statement relating to its 2024 annual meeting of shareholders, which was filed with the SEC on April 10, 2024, and other documents filed by BFST with the SEC. Other information regarding the persons who may, under the SEC’s rules, be deemed to be participants in the solicitation of proxies of Oakwood’s shareholders in connection with the proposed transaction, and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus regarding the proposed transaction 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)Three Months Ended (Dollars in thousands) June 30,
2024March 31,
2024June 30,
2023Balance Sheet Ratios Loans (HFI) to Deposits 92.80% 91.32% 97.69% Shareholders' Equity to Assets Ratio 9.91% 9.69% 9.31% Loans Receivable Held for Investment (HFI) Commercial $ 1,520,392 $ 1,426,957 $ 1,309,222 Real Estate: Commercial 2,198,119 2,215,889 2,132,044 Construction 637,466 662,013 719,080 Residential 743,876 717,007 675,462 Total Real Estate 3,579,461 3,594,909 3,526,586 Consumer and Other 62,999 66,973 62,929 Total Loans (Held for Investment) $ 5,162,852 $ 5,088,839 $ 4,898,737 Allowance for Loan Losses
Balance, Beginning of Period $ 41,165 $ 40,414 $ 41,830 Charge-Offs - Quarterly (1,426 ) (533 ) (689 ) Recoveries - Quarterly 91 141 104 Provision for Loan Losses - Quarterly 1,582 1,143 768 Balance, End of Period $ 41,412 $ 41,165 $ 42,013 Allowance for Loan Losses to Total Loans (HFI) 0.80% 0.81% 0.86% Allowance for Credit Losses to Total Loans (HFI)/(1) 0.86% 0.88% 0.93% Net Charge-Offs (Recoveries) to Average Quarterly Total Loans 0.03% 0.01% 0.01% Remaining Loan Purchase Discount $ 9,690 $ 11,411 $ 17,171 Nonperforming Assets
Nonperforming Nonaccrual Loans $ 21,008 $ 20,778 $ 17,006 Loans Past Due 90 Days or More 1,355 855 468 Total Nonperforming Loans 22,363 21,633 17,474 Other Nonperforming Assets: Other Real Estate Owned 1,983 1,339 1,587 Other Nonperforming Assets — — 29 Total other Nonperforming Assets 1,983 1,339 1,616 Total Nonperforming Assets $ 24,346 $ 22,972 $ 19,090 Nonperforming Loans to Total Loans (HFI) 0.43% 0.43% 0.36% Nonperforming Loans to Total Assets 0.36% 0.34% 0.30% (1) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments. Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)Three Months Ended Six Months Ended
(Dollars in thousands, except per share data)June 30,
2024March 31,
2024June 30,
2023June 30,
2024June 30,
2023Per Share Data Basic Earnings per Common Share $ 0.63 $ 0.49 $ 0.73 $ 1.11 $ 1.28 Diluted Earnings per Common Share 0.62 0.48 0.73 1.10 1.27 Dividends per Common Share 0.14 0.14 0.12 0.28 0.24 Book Value per Common Share 23.24 22.64 20.87 23.24 20.87 Average Common Shares Outstanding 25,265,495 25,127,187 25,101,683 25,196,079 25,041,124 Average Diluted Common Shares Outstanding 25,395,614 25,429,194 25,333,372 25,412,142 25,278,145 End of Period Common Shares Outstanding 25,502,175 25,485,383 25,344,168 25,502,175 25,344,168 Annualized Performance Ratios Return to Common Shareholders on Average Assets (1) 0.95% 0.74% 1.18% 0.84% 1.04% Return to Common Shareholders on Average Common Equity (1) 10.94% 8.51% 13.99%
9.73%12.39% Net Interest Margin (1) 3.45% 3.32% 3.63% 3.39% 3.69% Net Interest Spread (1) 2.47% 2.36% 2.75% 2.42% 2.85% Efficiency Ratio (2) 65.14% 69.80% 60.76% 67.37% 61.97% Total Quarterly/Year-to-Date Average Assets $ 6,711,173 $ 6,667,527 $ 6,274,656 $ 6,689,350 $ 6,198,860 Total Quarterly/Year-to-Date Average Common Equity 583,184 577,643 527,325 580,414 521,992 Other Expenses
Salaries and Employee Benefits $ 25,523 $ 25,416 $ 22,339 $ 50,939 $ 45,515 Occupancy and Bank Premises 2,634 2,514 2,406 5,148 4,703 Depreciation and Amortization 1,742 1,676 1,720 3,418 3,430 Data Processing 2,641 2,579 3,035 5,220 4,520 FDIC Assessment Fees 874 828 1,092 1,702 2,025 Legal and Other Professional Fees 1,042 866 961 1,908 1,574 Advertising and Promotions 966 1,145 1,226 2,111 2,374 Utilities and Communications 718 674 720 1,392 1,441 Ad Valorem Shares Tax 900 900 965 1,800 1,930 Directors' Fees 268 282 270 550 539 Other Real Estate Owned Expenses and Write- Downs 71 37 39 108 169 Merger and Conversion-Related Expenses 409 340 68 749 171 Other 5,322 5,265 4,861 10,587 9,990 Total Other Expenses $ 43,110 $ 42,522 $ 39,702 $ 85,632 $ 78,381 Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)Three Months Ended Six Months Ended (Dollars in thousands, except per share data) June 30,
2024March 31,
2024June 30,
2023June 30,
2024June 30,
2023Other Income Service Charges on Deposit Accounts $ 2,537 $ 2,439 $ 2,413 $ 4,976 $ 4,694 Loss on Sales of Securities — (1 ) (61 ) (1 ) (62 ) Debit Card and ATM Fee Income 1,950 1,776 1,646 3,726 3,216 Bank-Owned Life Insurance Income 627 579 547 1,206 1,071 Gain on Sales of Loans 2,460 139 494 2,599 1,105 Mortgage Origination Income 35 69 56 104 130 Fees and Brokerage Commission 1,875 1,937 1,791 3,812 3,604 Gain on Sales of Other Real Estate Owned 2 63 14 65 223 Gain/(Loss) on Disposal of Other Assets (15 ) — 14 (15 ) 9 Gain on Sale of Branch — — — — — Gain on Extinguishment of Debt — — 941 — 941 Swap Fee Income 285 229 7 514 13 Pass-Through Income from Other Investments 392 294 2,812 686 2,985 Other 2,028 1,862 1,284 3,890 2,417 Total Other Income $ 12,176 $ 9,386 $ 11,958 $ 21,562 $ 20,346 (1) Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an actual day count convention. (2) Noninterest expense (excluding provision for loan losses) divided by noninterest income (excluding security sales gains/losses) plus net interest income less gain/loss on sales of securities. Business First Bancshares, Inc.
Consolidated Balance Sheets
(Unaudited)(Dollars in thousands) June 30,
2024March 31,
2024June 30,
2023Assets Cash and Due From Banks $ 208,051 $ 185,906 $ 180,972 Federal Funds Sold 113,587 211,292 173,850 Securities Available for Sale, at Fair Values 875,048 872,903 877,774 Mortgage Loans Held for Sale 680 77 435 Loans and Lease Receivable 5,162,852 5,088,839 4,898,737 Allowance for Loan Losses (41,412 ) (41,165 ) (42,013 ) Net Loans and Lease Receivable 5,121,440 5,047,674 4,856,724 Premises and Equipment, Net 68,545 68,716 63,037 Accrued Interest Receivable 30,617 29,326 26,861 Other Equity Securities 38,805 34,940 34,824 Other Real Estate Owned 1,983 1,339 1,587 Cash Value of Life Insurance 100,684 100,056 95,302 Deferred Taxes, Net 25,888 26,800 31,553 Goodwill 91,527 91,527 88,543 Core Deposit and Customer Intangibles 10,849 11,372 12,993 Other Assets 16,185 13,630 10,194 Total Assets $ 6,703,889 $ 6,695,558 $ 6,454,649 Liabilities
Deposits Noninterest-Bearing $ 1,310,204 $ 1,295,050 $ 1,429,376 Interest-Bearing 4,253,466 4,277,700 3,585,067 Total Deposits 5,563,670 5,572,750 5,014,443 Securities Sold Under Agreements to Repurchase 18,445 17,207 23,230 Bank Term Funding Program — — 300,000 Federal Home Loan Bank Borrowings 305,208 308,206 362,162 Subordinated Debt 99,875 99,933 103,822 Subordinated Debt - Trust Preferred Securities 5,000 5,000 5,000 Accrued Interest Payable 4,517 3,930 7,666 Other Liabilities 42,644 39,498 37,358 Total Liabilities 6,039,359 6,046,524 839,238 Shareholders' Equity Preferred Stock 71,930 71,930 71,930 Common Stock 25,502 25,485 25,344 Additional Paid-In Capital 397,851 398,511 395,875 Retained Earnings 237,031 224,742 189,115 Accumulated Other Comprehensive Loss (67,784 ) (71,634 ) (81,296 ) Total Shareholders' Equity 664,530 649,034 600,968 Total Liabilities and Shareholders' Equity $ 6,703,889 $ 6,695,558 $ 6,454,649 Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)Three Months Ended Six Months Ended (Dollars in thousands) June 30,
2024March 31,
2024June 30,
2023June 30,
2024June 30,
2023
Interest Income:Interest and Fees on Loans $ 90,604 $ 85,947 $ 79,223 $ 176,551 $ 152,991 Interest and Dividends on Securities 5,933 5,599 5,097 11,532 9,879 Interest on Federal Funds Sold and Due From Banks 3,333 4,465 1,528 7,798 2,470 Total Interest Income 99,870 96,011 85,848 195,881 165,340
Interest Expense:Interest on Deposits 40,900 38,029 23,680 78,929 42,608 Interest on Borrowings 4,961 6,451 8,842 11,412 16,657 Total Interest Expense 45,861 44,480 32,522 90,341 59,265 Net Interest Income 54,009 51,531 53,326 105,540 106,075 Provision for Credit Losses 1,310 1,186 538 2,496 3,760 Net Interest Income After Provision for Credit Losses 52,699 50,345 52,788 103,044 102,315 — Other Income: Service Charges on Deposit Accounts 2,537 2,439 2,413 4,976 4,694 Loss on Sales of Securities — (1 ) (61 ) (1 ) (62 ) Gain on Sales of Loans 2,460 139 494 2,599 1,105 Other Income 7,179 6,809 9,112 13,988 14,609 Total Other Income 12,176 9,386 11,958 21,562 20,346 Other Expenses: Salaries and Employee Benefits 25,523 25,416 22,339 50,939 45,515 Occupancy and Equipment Expense 5,717 5,357 5,112 11,074 10,113 Merger and Conversion-Related Expense 409 340 68 749 171 Other Expenses 11,461 11,409 12,183 22,870 22,582 Total Other Expenses 43,110 42,522 39,702 85,632 78,381 Income Before Income Taxes 21,765 17,209 25,044 38,974 44,280 Provision for Income Taxes 4,559 3,639 5,305 8,198 9,516 Net Income 17,206 13,570 19,739 30,776 34,764 Preferred Stock Dividends 1,350 1,350 1,350 2,700 2,700 Net Income Available to Common Shareholders $ 15,856 $ 12,220 $ 18,389 $ 28,076 $ 32,064 Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)Three Months Ended June 30, 2024 March 31, 2024 June 30, 2023
(Dollars in thousands)Average
Outstanding
BalanceInterest
Earned/
Interest
PaidAverage
Yield/
RateAverage
Outstanding
BalanceInterest
Earned/
Interest
PaidAverage
Yield/
RateAverage
Outstanding
BalanceInterest
Earned/
Interest
PaidAverage
Yield/
RateAssets
Interest Earning Assets:Total Loans $ 5,153,642 $ 90,604 7.07 % $ 5,026,937 $ 85,947 6.88 % $ 4,861,783 $ 79,223 6.54 % Securities
Interest-Bearing891,384 5,933 2.68 % 888,933 5,599 2.53 % 916,421 5,097 2.23 % Deposit in Other
Banks246,590 3,333 5.44 % 330,260 4,465 5.44 % 117,086 1,528 5.23 % Total Interest
Earning Assets6,291,616 99,870 6.38 % 6,246,130 96,011 6.18 % 5,895,290 85,848 5.84 % Allowance for Loan
Losses(41,450) (40,526 ) (42,010 ) Noninterest- Earning
Assets461,007 461,923 421,376 Total Assets $ 6,711,173 $ 99,870 $ 6,667,527 $ 96,011 $ 6,274,656 $ 85,848 Liabilities and
Shareholders' EquityInterest-Bearing
Liabilities:Interest-Bearing
Deposits$ 4,268,207 $ 40,900 3.85 % $ 4,072,600 $ 38,029 3.76 % $ 3,405,221 $ 23,680 2.79 % Subordinated Debt 99,913 1,354 5.45 % 99,972 1,356 5.46 % 108,619 1,251 4.62 % Subordinated Debt - Trust Preferred
Securities5,000 113 9.09 % 5,000 113 9.09 % 5,000 108 8.66 % Bank Term Funding
Program— — — % 260,440 2,788 4.31 % 384,816 4,309 4.49 % Advances from Federal Home Loan
Bank (FHLB)324,691 3,372 4.18 % 223,501 2,094 3.77 % 298,324 3,038 4.08 % Other Borrowings 19,164 122 2.56 % 16,116 100 2.50 % 22,109 136 2.47 % Total Interest-
Bearing Liabilities$ 4,716,975 $ 45,861 3.91 % $ 4,677,629 $ 44,480 3.82 % $ 4,224,089 $ 32,522 3.09 % Noninterest-Bearing
Liabilities:Noninterest-Bearing
Deposits$ 1,297,085 $ 1,282,815 $ 1,410,983 Other Liabilities 41,999 57,510 40,329 Total Noninterest- Bearing Liabilities 1,339,084 1,340,325 1,451,312 Shareholders' Equity: Common Shareholders' Equity 583,184 577,643 527,325 Preferred Equity 71,930 71,930 71,930 Total Shareholders'
Equity655,114 649,573 599,255 Total Liabilities and
Shareholders'
Equity$ 6,711,173 $ 6,667,527 $ 6,274,656 Net Interest Spread 2.47 % 2.36 % 2.75 % Net Interest Income $ 54,009 $ 51,531 $ 53,326 Net Interest Margin 3.45 % 3.32 % 3.63 % Overall Cost of Funds 3.07 % 3.00 % 2.31 % Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention. Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)Six Months Ended (Dollars in thousands) June 30, 2024 June 30, 2023 Average Outstanding
BalanceInterest Earned/
Interest PaidAverage Yield/
RateAverage Outstanding
BalanceInterest Earned/
Interest PaidAverage Yield/
RateAssets Interest Earning Assets: Total Loans $ 5,090,289 $ 176,551 6.97 % $ 4,790,843 $ 152,991 6.44 % Securities 890,158 11,532 2.61 % 921,958 9,879 2.16 % Interest-Bearing Deposit in Other Banks 288,426 7,798 5.44 % 87,282 2,470 5.71 % Total Interest Earning Assets 6,268,873 195,881 6.28 % 5,800,083 165,340 5.75 % Allowance for Loan Losses (40,988 ) (41,772 ) Noninterest- Earning Assets 461,465 440,549 Total Assets $ 6,689,350 $ 195,881 $ 6,198,860 $ 165,340 Liabilities and Shareholders'
EquityInterest-Bearing Liabilities: Interest-Bearing Deposits $ 4,170,406 $ 78,929 3.81 % $ 3,372,358 $ 42,608 2.55 % Subordinated Debt 99,942 2,710 5.45 % 109,634 2,640 4.86 % Subordinated Debt - Trust
Preferred Securities5,000 226 9.09 % 5,000 206 8.31 % Bank Term Funding Program 130,220 2,788 4.31 % 207,411 4,689 4.56 % Advances from Federal Home
Loan Bank (FHLB)274,096 5,466 4.01 % 410,348 8,880 4.36 % Other Borrowings 17,640 222 2.53 % 21,502 242 2.27 % Total Interest-Bearing
Liabilities$ 4,697,304 $ 90,341 3.87 % $ 4,126,253 $ 59,265 2.90 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits $ 1,289,948 $ 1,442,084 Other Liabilities 49,754 36,601 Total Noninterest-Bearing
Liabilities1,339,702 1,478,685 Shareholders' Equity: Common Shareholders' Equity 580,414 521,992 Preferred Equity 71,930 71,930 Total Shareholders' Equity 652,344 593,922 Total Liabilities and
Shareholders' Equity$ 6,689,350 $ 6,198,860 Net Interest Spread 2.42 % 2.85 % Net Interest Income $ 105,540 $ 106,075 Net Interest Margin 3.39 % 3.69 % Overall Cost of Funds 3.03 % 2.15 % Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention. Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)Three Months Ended Six Months Ended (Dollars in thousands, except per share data) June 30,
2024March 31,
2024June 30,
2023June 30,
2024June 30,
2023Interest Income: Interest income $ 99,870 $ 96,011 $ 85,848 $ 195,881 $ 165,340 Core interest income 99,870 96,011 85,848 195,881 165,340 Interest Expense: Interest expense 45,861 44,480 32,522 90,341 59,265 Core interest expense 45,861 44,480 32,522 90,341 59,265 Provision for Credit
Losses: (b)Provision for credit losses 1,310 1,186 538 2,496 3,760 Core provision expense 1,310 1,186 538 2,496 3,760 Other Income: Other income 12,176 9,386 11,958 21,562 20,346 Losses on former bank premises and equipment — (50 ) — (50 ) — Losses on sale of securities — 1 61 1 62 Gain on extinguishment of debt — — (941 ) — (941 ) Core other income 12,176 9,337 11,078 21,513 19,467 Other Expense: Other expense 43,110 42,522 39,702 85,632 78,381 Acquisition-related expenses (2) (419) (715 ) (68 ) (1,134 ) (171 ) Occupancy and bank premises - storm repair — — — — — Core other expense 42,691 41,807 39,634 84,498 78,210 Pre-Tax Income: (a) 21,765 Pre-tax income 17,209 25,044 38,974 44,280 Losses on former bank premises and equipment — (50 ) — (50 ) — Losses on sale of securities — 1 61 1 62 Gain on extinguishment of debt — — (941 ) — (941 ) Acquisition-related expenses (2) 419 715 68 1,134 171 Occupancy and bank premises - storm repair — — — — — Core pre-tax income 22,184 17,875 24,232 40,059 43,572 Provision for Income Taxes: (1) Provision for income taxes 4,559 3,639 5,305 8,198 9,516 Tax on losses on former bank premises and equipment — (11 ) — (11 ) — Tax on losses on sale of securities — — 13 — 13 Gain on extinguishment of debt — — (199 ) — (199 Tax on acquisition- related expenses (2) 2 89 14 91 20 Tax on occupancy and bank premises - storm repair — — — — — Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) Three Months Ended Six Months Ended (Dollars in thousands, except per share data) June 30,
2024March 31,
2024June 30,
2023June 30,
2024June 30,
2023Core provision for income taxes 4,561 3,717 5,133 8,278 9,350 Preferred Dividends: Preferred dividends 1,350 1,350 1,350 2,700 2,700 Core preferred dividends 1,350 1,350 1,350 2,700 2,700 Net Income Available to Common Shareholders: Net income available to common shareholders 15,856 12,220 18,389 28,076 32,064 Losses on former bank premises and equipment, net of tax — (39 ) — (39 ) — Losses on sale of securities, net of tax — 1 48 1 49 Gain on extinguishment of debt, net of tax — — (742 ) — (742 ) Acquisition-related expenses (2), net of tax 417 626 54 1,043 151 Occupancy and bank premises - storm repair, net of tax — — — — — Core net income available to common shareholders $ 16,273 $ 12,808 $ 17,749 $ 29,081 $ 31,522 Pre-tax, pre-provision earnings available to common shareholders (a+b) $ 23,075 $ 18,395 $ 25,582 $ 41,470 $ 48,040 Losses on former bank premises and equipment — (50 ) — (50 ) — Loss on sale of securities — 1 61 1 62 Gain on extinguishment of debt — — (941 ) — (941 ) Acquisition-related expenses (2) 419 715 68 1,134 171 Occupancy and bank premises - storm repair — — — — — Core pre-tax, pre- provision earnings $ 23,494 $ 19,061 $ 24,770 $ 42,555 $ 47,332 Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) Three Months Ended Six Months Ended (Dollars in thousands, except per share data) June 30,
2024March 31,
2024June 30,
2023June 30,
2024June 30,
2023Average Diluted Common Shares Outstanding 25,395,614 25,429,194 25,333,372 25,412,142 25,278,145 Diluted Earnings Per Common Share: Diluted earnings per common share $ 0.62 $ 0.48 $ 0.73 $ 1.10 $ 1.27 Losses on former bank premises and equipment, net of tax — — — — — Loss on sale of securities, net of tax — — — — — Gain on extinguishment of debt, net of tax — — (0.03 ) — (0.03 ) Acquisition-related expenses (2), net of tax 0.02 0.02 — 0.04 0.01 Occupancy and bank premises -storm repair, net of tax — — — — — Core diluted earnings per common share $ 0.64 $ 0.50 $ 0.70 $ 1.14 $ 1.25 Pre-tax, pre-provision profit diluted earnings per common share $ 0.91 $ 0.72 $ 1.01 $ 1.63 $ 1.90 Losses on former bank premises and equipment — — — — — Loss on sale of securities — — — — — Gain on extinguishment of debt — — (0.04 ) — (0.04 ) Acquisition-related expenses (2) 0.02 0.03 0.01 0.04 0.01 Occupancy and bank premises - storm repair — — — — — Core pre-tax, pre- provision diluted earnings per common share $ 0.93 $ 0.75 $ 0.98 $ 1.67 $ 1.87 (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2024 and 2023. 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) (Dollars in thousands, except per share data) June 30,
2024March 31,
2024June 30,
2023Total Shareholders' (Common) Equity: Total shareholders' equity $ 664,530 $ 649,034 $ 600,968 Preferred stock (71,930 ) (71,930 ) (71,930 ) Total common shareholders' equity 592,600 577,104 529,038 Goodwill (91,527 ) (91,527 ) (88,543 ) Core deposit and customer intangible (10,849 ) (11,372 ) (12,993 ) Total tangible common equity $ 490,224 $ 474,205 $ 427,502 Total Assets: Total assets $ 6,703,889 $ 6,695,558 $ 6,454,649 Goodwill (91,527 ) (91,527 ) (88,543 ) Core deposit and customer intangible (10,849 ) (11,372 ) (12,993 ) Total tangible assets $ 6,601,513 $ 6,592,659 $ 6,353,113 Common shares outstanding 25,502,175 25,485,383 25,344,168 Book value per common share $ 23.24 $ 22.64 $ 20.87 Tangible book value per common share $ 19.22 $ 18.61 $ 16.87 Common equity to total assets 8.84 % 8.62 % 8.20 % Tangible common equity to tangible assets 7.43 % 7.19 % 6.73 % Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) Three Months Ended Six Months Ended (Dollars in thousands, except per share data) June 30,
2024March 31,
2024June 30,
2023June 30,
2024June 30,
2023Total Quarterly Average Assets $ 6,711,173 $ 6,667,527 $ 6,274,656 $ 6,689,350 $ 6,198,860 Total Quarterly Average Common Equity $ 583,184 $ 577,643 $ 527,325 $ 580,414 $ 521,992 Net Income Available to Common Shareholders: Net income available to common shareholders $ 15,856 $ 12,220 $ 18,389 $ 28,076 $ 32,064 Gain on former bank premises and equipment, net of tax — (39 ) — (39 ) — Loss on sale of securities, net of tax — 1 48 1 49 Gain on sale of branch, net of tax — — (742 ) — (742 ) Acquisition-related expenses, net of tax 417 626 54 1,043 151 Write-down on former bank premises, net of tax — — — — — Core net income available to common shareholders $ 16,273 $ 12,808 $ 17,749 $ 29,081 $ 31,522 Return to common shareholders on average assets (annualized) (2) 0.95 % 0.74 % 1.18 % 0.84 % 1.04 % Core return on average assets (annualized) (2) 0.98 % 0.77 % 1.13 % 0.87 % 1.03 % Return to common shareholders on average common equity (annualized) (2) 10.94 % 8.51 % 13.99 % 9.73 % 12.39 % Core return on average common equity (annualized) (2) 11.22 % 8.92 % 13.50 % 10.08 % 12.18 % Interest Income: Interest income $ 99,870 $ 96,011 $ 85,848 $ 195,881 $ 165,340 Core interest income 99,870 96,011 85,848 195,881 165,340 Interest Expense: Interest expense 45,861 44,480 32,522 90,341 59,265 Core interest expense 45,861 44,480 32,522 90,341 59,265 Other Income: Other income 12,176 9,386 11,958 21,562 20,346 Gain on former bank premises and equipment — (50 ) — (50 ) — Loss on sale of securities — 1 61 1 62 Gain on sale of branch — — (941 ) — (941 ) Core other income 12,176 9,337 11,078 21,513 19,467 Other Expense: Other expense 43,110 42,522 39,702 85,632 78,381 Acquisition-related expenses (419 ) (715 ) (68 ) (1,134 ) (171 ) Write-down on former bank premises — — — — — Core other expense $ 42,691 $ 41,807 $ 39,634 $ 84,498 $ 78,210 Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) Three Months Ended Six Months Ended
(Dollars in thousands, except per share data)June 30,
2024March 31,
2024June 30,
2023June 30,
2024June 30,
2023Efficiency Ratio: Other expense (a) $ 43,110 $ 42,522 $ 39,702 $ 85,632 $ 78,381 Core other expense (c) $ 42,691 $ 41,807 $ 39,634 $ 84,498 $ 78,210 Net interest and other income (1) (b) $ 66,185 $ 60,918 $ 65,345 $ 127,103 $ 126,483 Core net interest and other income (1) (d) $ 66,185 $ 60,868 $ 64,404 $ 127,053 $ 125,542 Efficiency ratio (a/b) 65.14 % 69.80 % 60.76 % 67.37 % 61.97 % Core efficiency ratio (c/d) 64.50 % 68.68 % 61.54 % 66.51 % 62.30 % Total Average Interest-Earnings Assets $ 6,291,616 $ 6,246,130 $ 5,895,290 $ 6,268,873 $ 5,800,083 Net Interest Income: Net interest income $ 54,009 $ 51,531 $ 53,326 $ 105,540 $ 106,075 Loan discount accretion $ (1,695) $ (785 ) $ (2,059 ) $ (2,480 ) $ (4,971 ) Net interest income excluding loan discount accretion $ 52,314 $ 50,746 $ 51,267 $ 103,060 $ $ 101,104 Net interest margin (2) 3.45 % 3.32 % 3.63 % 3.39 % 3.69 % Net interest margin excluding loan discount accretion (2) 3.34 % 3.27 % 3.49 % 3.31 % 3.52 % Net interest spread (2) 2.47 % 2.36 % 2.75 % 2.42 % 2.85 % Net interest spread excluding loan discount accretion (2) 2.37 % 2.31 % 2.61 % 2.34 % 2.68 % (1) Excludes gains/losses on sales of securities.
(2) Calculated utilizing an actual day count convention.Contact:
Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com
