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Business First Bancshares, Inc., Announces Financial Results for Fiscal Year 2023 and Q4 2023

2024-01-23 16:01 ET - News Release

BATON ROUGE, La., Jan. 23, 2024 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the year ended December 31, 2023, including net income available to common shareholders of $65.6 million or $2.59 per diluted common share, increases of $12.7 million and $0.27, respectively, from the prior year ended December 31, 2022. On a non-GAAP basis, core net income for the year ended December 31, 2023, which excludes certain income and expenses, was $66.3 million or $2.62 per diluted common share, increases of $8.7 million and $0.10, respectively, from prior year ended December 31, 2022.

For the quarter ended December 31, 2023, Business First reported net income available to common shareholders of $14.5 million, or $0.57 per diluted common share, decreases of $4.6 million and $0.19, respectively, from the quarter ended September 30, 2023. On a non-GAAP basis, core net income for the quarter ended December 31, 2023, which excludes certain income and expenses, was $16.8 million or $0.66 per diluted common share, decreases of $1.1 million and $0.05, respectively, compared to the linked quarter.

“There have been very few years in our company’s life of which I’ve been prouder than I am of the year 2023,” said Jude Melville, president and CEO. “As our country generally, and banking specifically, faced the challenge of navigating swiftly moving economic currents, our team was a source of stability, performing consistently and well for our clients and our investors.  We are a stronger organization and better bankers than we were at the beginning of the year, and I am excited to see that improvement continue over the course of 2024.”   

On Tuesday, January 23, 2024, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the fourth quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on February 28, 2024, or as soon thereafter as practicable, to the shareholders of record as of February 15, 2024.

Quarterly Highlights

  • Return on Assets and Equity. Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.88% and 10.54% for the quarter ended December 31, 2023, compared to 1.17% and 14.16%, respectively, for the linked quarter. Non-GAAP core return on average assets and common equity, each on an annualized basis, were 1.03% and 12.27% for the quarter ended December 31, 2023, compared to 1.10% and 13.32%, respectively, for the linked quarter.
  • Credit Quality. The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets remained stable at 0.34% and 0.28% at December 31, 2023, increasing slightly from 0.33% and 0.27%, respectively, at September 30, 2023, due to an increase in nonaccrual loans.
  • Security/Balance Sheet Repositioning. During the fourth quarter, Business First executed a balance sheet repositioning related to its available-for-sale (AFS) security portfolio. Business First sold $71.5 million or approximately 8.13% of the December 31, 2023, portfolio, in treasury, agency and municipal securities, with a weighted average book yield of 1.98%. Business First redeployed the proceeds into agency securities with an average book yield of 5.17%, locking in higher yields while keeping duration consistent with the overall portfolio weighted average life. The repositioning resulted in a loss of $2.5 million with an estimated earn back of 1.1 years as of December 31, 2023.
  • Net Interest Margin. For the quarter ended December 31, 2023, net interest income totaled $53.8 million and net interest margin and net interest spread were 3.50% and 2.53%, respectively, compared to $55.3 million, 3.61% and 2.68% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.9 million) were 3.38% and 2.40%, respectively, for the quarter ended December 31, 2023, compared to 3.46% and 2.53% (excluding loan discount accretion of $2.4 million) for the linked quarter.

Statement of Financial Condition

Loans

Loans held for investment increased $72.5 million or 1.47%, 5.85% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the commercial and industrial (C&I) portfolio of $26.5 million and in the commercial real estate portfolio of $89.1 million, offset by a $39.0 million reduction in the construction and development (C&D) portfolio. Annual loan growth for fiscal year 2023, was $386.6 million or 8.39%.

The Dallas Fort Worth region produced 50.64% of net loan growth from the linked quarter based on unpaid principal balance, while the Greater New Orleans region produced 37.68%. Based on unpaid principal balances, Texas-based loans represent approximately 37% of the overall loan portfolio as of December 31, 2023.  

Credit Quality

The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets remained stable at 0.34% and 0.28% at December 31, 2023, increasing slightly from 0.33% and 0.27%, respectively, at September 30, 2023, due to an increase in nonaccrual loans.

Securities

The securities portfolio increased $29.9 million or 3.51%, from the linked quarter. The increase was driven by positive fair value adjustments of $35.1 million. The securities portfolio, based on estimated fair value, represented 13.36% of total assets as of December 31, 2023.

During the fourth quarter, Business First executed a balance sheet repositioning related to its available-for-sale (“AFS”) security portfolio. Business First sold $71.5 million, or approximately 8.13% of the December 31, 2023, portfolio, in treasury, agency, and municipal securities, with a weighted average book yield of 1.98%. Business First re-deployed the proceeds into agency securities with an average book yield of 5.17%, locking in higher yields while keeping duration consistent with the overall portfolio weighted average life. The repositioning resulted in a loss of $2.5 million with an estimated earn back of 1.1 years as of December 31, 2023.

Deposits

Deposits increased $58.1 million or 1.12%, 4.44% annualized, for the quarter ended December 31, 2023. Annual deposit growth for fiscal year 2023, was $428.4 million or 8.89%.

During the quarter ended December 31, 2023, noninterest-bearing deposits decreased $113.3 million or 8.02% and interest-bearing deposits increased $171.4 million or 4.54%, compared to the linked quarter, with certificate of deposit (CD) accounts declining $75.3 million or 5.47%. Money market accounts increased $160.3 million or 13.55% from the linked quarter.

Borrowings

Borrowings decreased $7.4 million or 1.16%, from the linked quarter due to a decline in repurchase agreements and repayments on a Federal Home Loan Bank (FHLB) term loan.

Shareholders’ Equity

Accumulated other comprehensive income (AOCI) improved $27.7 million during the fourth quarter due to positive after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $22.58 at December 31, 2023, compared to $21.01 at September 30, 2023, due to continued earnings growth and positive securities fair value adjustments. On a non-GAAP basis, tangible book value per common share increased to $18.62 at December 31, 2023, compared to $17.03 at September 30, 2023.

Results of Operations

Net Interest Income

For the quarter ended December 31, 2023, net interest income totaled $53.8 million, compared to $55.3 million from the linked quarter. Loan and interest-earning asset yields of 6.87% and 6.17%, respectively, increased 3 basis points and 7 basis points, respectively, compared to 6.84% and 6.10% from the linked quarter. Net interest margin and net interest spread were 3.50% and 2.53% compared to 3.61% and 2.68%, respectively, for the linked quarter. The overall cost of funds, which include noninterest-bearing deposits, increased from 2.59% to 2.79% or 20 basis points, from the linked quarter due to higher cost deposits and $30.8 million less in average noninterest bearing deposits.

Non-GAAP net interest income (excluding loan discount accretion of $1.9 million) totaled $51.8 million for the quarter ended December 31, 2023, compared to $52.9 million (excluding loan discount accretion of $2.4 million) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.9 million) were 3.38% and 2.40%, respectively, for the quarter ended December 31, 2023, compared to 3.46% and 2.53% (excluding loan discount accretion of $2.4 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 8 basis points to 6.72% from 6.64%, and interest earnings asset yields increased 11 basis points to 6.05% from 5.94%, compared to the linked quarter.

Provision for Credit Losses

During the quarter ended December 31, 2023, Business First recorded a provision for credit losses of $119,000, compared to $604,000 for the linked quarter. The current quarter’s reserve decreased largely due to adjustments associated with various qualitative factors.

Other Income

For the quarter ended December 31, 2023, other income decreased $3.5 million or 35.11%, compared to the linked quarter. The net decrease was largely attributable to a $2.5 million loss on sale of securities due to Business First’s security repositioning initiative, a $1.0 million loss in equity investment income, and a $919,000 gain related to a branch sale which occurred during the linked quarter, partially offset by $964,000 of back-to-back customer swap fee income which occurred during the quarter.

Other Expenses

For the quarter ended December 31, 2023, other expenses increased by $1.1 million or 2.87%, compared to the linked quarter. The net increase was largely attributable to $654,000 in customer fraud/operational losses within other expense, $490,000 in other real estate owned expenses ($432,000 was related to a former bank premises), and an additional $466,000 in data processing costs compared to the linked quarter, offset by a reduction of $700,000 to the ad valorem shares tax expense.

Return on Assets and Common Equity

Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.88% and 10.54% for the quarter ended December 31, 2023, compared to 1.17% and 14.16%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.03% and 12.27% for the quarter ended December 31, 2023, compared to 1.10% and 13.32%, respectively, for the linked quarter.

Conference Call and Webcast

Executive management will host a conference call and webcast to discuss results on
Tuesday, January 23, 2024, at 4:30 p.m. Central time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 4061156, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/gctma4g8. The corresponding slide presentation can be assessed the day of the presentation on b1BANK’s website at https://www.b1bank.com/shareholder-info.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.6 billion in assets, $6.0 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.  

Non-GAAP Financial Measures

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

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.

Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com 


Business First Bancshares, Inc. 
Selected Financial Information 
(Unaudited) 
 Three Months Ended 
 December 31,September 30,December 31, 
(Dollars in thousands) 2023  2023  2022  
     
Balance Sheet Ratios    
     
Loans (HFI) to Deposits 95.12% 94.79% 95.56% 
Shareholders' Equity to Assets Ratio 9.78% 9.31% 9.69% 
     
Loans Receivable Held for Investment (HFI)    
     
Commercial (1)$1,358,838 $1,332,384 $1,153,873  
Real Estate:    
Commercial 2,217,928  2,128,855  2,020,406  
Construction 669,798  708,835  722,074  
Residential 682,394  686,921  656,378  
Total Real Estate 3,570,120  3,524,611  3,398,858  
Consumer and Other 63,827  63,278  53,445  
Total Loans (Held for Investment)$4,992,785 $4,920,273 $4,606,176  
     
Allowance for Loan Losses    
     
Balance, Beginning of Period$41,129 $42,013 $35,201  
Charge-offs – Quarterly (1,039) (2,423) (387) 
Recoveries – Quarterly 152  685  313  
Provision for Loan Losses – Quarterly 172  854  3,051  
Balance, End of Period$40,414 $41,129 $38,178  
     
Allowance for Loan Losses to Total Loans (HFI) 0.81% 0.84% 0.83% 
Allowance for Credit Losses to Total Loans (HFI) (2) 0.88% 0.90% 0.84% 
Net Charge-offs (Recoveries) to Average Quarterly Total Loans 0.02% 0.04% 0.00% 
     
Remaining Loan Purchase Discount$12,286 $14,752 $27,000  
     
Nonperforming Assets    
     
Nonperforming Loans:    
Nonaccrual Loans (1)$16,943 $16,029 $11,054  
Loans Past Due 90 Days or More (1) 127  247  335  
Total Nonperforming Loans 17,070  16,276  11,389  
Other Nonperforming Assets:    
Other Real Estate Owned 1,685  1,558  1,372  
Other Nonperforming Assets -  -  62  
Total Other Nonperforming Assets 1,685  1,558  1,434  
Total Nonperforming Assets$18,755 $17,834 $12,823  
     
Nonperforming Loans to Total Loans (HFI) 0.34% 0.33% 0.25% 
Nonperforming Assets to Total Assets 0.28% 0.27% 0.21% 
     
(1) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company was currently accreting interest income over the expected life of the loans for the period ended December 31, 2023, in accordance with ASC 310-30. 
(2) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments.
     



Business First Bancshares, Inc. 
Selected Financial Information 
(Unaudited) 
        
 Three Months Ended Year Ended 
 December 31,September 30,December 31, December 31,December 31, 
(Dollars in thousands, except per share data) 2023  2023  2022   2023  2022  
        
Per Share Data       
        
Basic Earnings per Common Share$0.58 $0.76 $0.68  $2.62 $2.34  
Diluted Earnings per Common Share 0.57  0.76  0.67   2.59  2.32  
Dividends per Common Share 0.14  0.12  0.12   0.50  0.48  
Book Value per Common Share 22.58  21.01  20.25   22.58  20.25  
        
        
Average Common Shares Outstanding 25,116,688  25,111,548  24,542,120   25,079,106  22,633,478  
Average Diluted Common Shares Outstanding 25,333,913  25,288,660  24,757,143   25,296,200  22,817,493  
End of Period Common Shares Outstanding 25,351,809  25,344,168  25,110,313   25,351,209  25,110,313  
        
        
Annualized Performance Ratios       
        
Return to Common Shareholders on Average Assets (1) 0.88% 1.17% 1.12%  1.04% 0.97% 
Return to Common Shareholders on Average Common Equity (1) 10.54% 14.16% 13.56%  12.36% 11.59% 
Net Interest Margin (1) 3.50% 3.61% 4.06%  3.62% 3.92% 
Net Interest Spread (1) 2.53% 2.68% 3.43%  2.72% 3.57% 
Efficiency Ratio (2) 63.36% 59.23% 59.60%  61.61% 65.26% 
        
Total Quarterly/Year-to-Date Average Assets$6,494,861 $6,474,935 $5,899,972  $6,341,880 $5,473,508  
Total Quarterly/Year-to-Date Average Common Equity 544,628  535,211  486,338   530,956  456,388  
        
Other Expenses       
        
Salaries and Employee Benefits$22,609 $22,487 $22,205  $90,611 $85,222  
Occupancy and Bank Premises 2,387  2,428  2,285   9,518  9,244  
Depreciation and Amortization 1,647  1,690  1,700   6,767  6,853  
Data Processing 2,490  2,024  2,201   9,034  8,358  
FDIC Assessment Fees 841  779  611   3,645  2,854  
Legal and Other Professional Fees 833  766  462   3,173  2,359  
Advertising and Promotions 1,052  1,202  1,571   4,628  3,949  
Utilities and Communications 700  758  759   2,899  3,193  
Ad Valorem Shares Tax 265  965  962   3,160  3,400  
Directors' Fees 262  278  270   1,079  972  
Other Real Estate Owned Expenses and Write-Downs 504  14  11   687  193  
Merger and Conversion-Related Expenses 63  2  138   236  4,808  
Other 6,061  5,214  5,171   21,265  18,004  
Total Other Expenses$39,714 $38,607 $38,346  $156,702 $149,409  
        
Other Income       
        
Service Charges on Deposit Accounts$2,470 $2,540 $2,265  $9,704 $8,272  
Loss on Sales of Securities (2,503) -  (2)  (2,565) (48) 
Debit Card and ATM Fee Income 1,793  1,581  1,582   6,590  6,407  
Bank-Owned Life Insurance Income 572  604  526   2,247  1,931  
Gain on Sales of Loans 546  321  59   1,972  574  
Mortgage Origination Income 47  108  105   285  532  
Fees and Brokerage Commission 1,710  1,933  1,760   7,247  6,964  
Gain on Sales of Other Real Estate Owned 338  85  3   646  33  
Loss on Disposal of Other Assets (1) (23) (1)  (15) (717) 
Gain on Sale of Branch 13  932  -   945  -  
Gain on Extinguishment of Debt -  517  -   1,458  -  
Swap Fee Income 964  -  -   964  -  
Pass-Through Income (Loss) from Other Investments (1,028) (11) 608   1,946  1,347  
Other 1,492  1,296  1,373   5,218  4,015  
 Total Other Income$6,413 $9,883 $8,278  $36,642 $29,310  
        
        
(1) Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention. 
(2) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities. 
        



Business First Bancshares, Inc. 
Consolidated Balance Sheets 
(Unaudited) 
     
 December 31,September 30,December 31, 
(Dollars in thousands) 2023  2023  2022  
     
Assets    
     
Cash and Due From Banks$226,110 $191,461 $152,740  
Federal Funds Sold 151,134  196,616  15,606  
Securities Available for Sale, at Fair Values 879,571  849,704  890,751  
Mortgage Loans Held for Sale 835  652  304  
Loans and Lease Receivable 4,992,785  4,920,273  4,606,176  
Allowance for Loan Losses (40,414) (41,129) (38,178) 
Net Loans and Lease Receivable 4,952,371  4,879,144  4,567,998  
Premises and Equipment, Net 69,480  64,674  63,177  
Accrued Interest Receivable 29,916  28,060  25,666  
Other Equity Securities 33,942  32,591  37,467  
Other Real Estate Owned 1,685  1,558  1,372  
Cash Value of Life Insurance 96,478  95,906  91,958  
Deferred Taxes, Net 27,323  34,660  31,194  
Goodwill 88,391  88,391  88,543  
Core Deposit and Customer Intangibles 11,895  12,418  14,042  
Other Assets 15,419  12,946  9,642  
     
Total Assets$6,584,550 $6,488,781 $5,990,460  
     
     
Liabilities    
     
Deposits    
Noninterest-Bearing$1,299,090 $1,412,406 $1,549,381  
Interest-Bearing 3,949,700  3,778,317  3,270,964  
Total Deposits 5,248,790  5,190,723  4,820,345  
     
Securities Sold Under Agreements to Repurchase 18,885  23,245  20,208  
Federal Funds Purchased -  -  14,057  
Bank Term Funding Program 300,000  300,000  -  
Federal Home Loan Bank Borrowings 211,198  214,184  410,100  
Subordinated Debt 99,990  100,048  110,749  
Subordinated Debt - Trust Preferred Securities 5,000  5,000  5,000  
Accrued Interest Payable 14,841  11,188  2,092  
Other Liabilities 41,587  40,027  27,428  
     
Total Liabilities 5,940,291  5,884,415  5,409,979  
     
Shareholders' Equity    
     
Preferred Stock 71,930  71,930  71,930  
Common Stock 25,352  25,344  25,110  
Additional Paid-In Capital 397,447  396,121  393,690  
Retained Earnings 216,115  205,207  163,955  
Accumulated Other Comprehensive Loss (66,585) (94,236) (74,204) 
     
Total Shareholders' Equity 644,259  604,366  580,481  
     
Total Liabilities and Shareholders' Equity$6,584,550 $6,488,781 $5,990,460  
     



Business First Bancshares, Inc. 
Consolidated Statements of Income 
(Unaudited) 
        
 Three Months Ended Year Ended 
 December 31,September 30,December 31, December 31,December 31, 
(Dollars in thousands) 2023  2023 2022   2023  2022  
        
Interest Income:       
Interest and Fees on Loans$85,761 $84,575$69,364  $323,327 $218,032  
Interest and Dividends on Securities 5,193  5,053 4,316   20,125  16,503  
Interest on Federal Funds Sold and Due From Banks 3,711  3,694 825   9,875  1,579  
Total Interest Income 94,665  93,322 74,505   353,327  236,114  
        
Interest Expense:       
Interest on Deposits 34,190  30,110 13,307   106,908  24,413  
Interest on Borrowings 6,715  7,918 5,138   31,290  12,124  
Total Interest Expense 40,905  38,028 18,445   138,198  36,537  
        
Net Interest Income 53,760  55,294 56,060   215,129  199,577  
        
Provision for Credit Losses 119  604 3,051   4,483  10,886  
        
Net Interest Income After Provision for Credit Losses 53,641  54,690 53,009   210,646  188,691  
        
Other Income:       
Service Charges on Deposit Accounts 2,470  2,540 2,265   9,704  8,272  
Loss on Sales of Securities (2,503) - (2)  (2,565) (48) 
Gain on Sales of Loans 546  321 59   1,972  574  
Other Income 5,900  7,022 5,956   27,531  20,512  
Total Other Income 6,413  9,883 8,278   36,642  29,310  
        
Other Expenses:       
Salaries and Employee Benefits 22,609  22,487 22,205   90,611  85,222  
Occupancy and Equipment Expense 5,301  5,445 4,918   20,859  19,367  
Merger and Conversion-Related Expense 63  2 138   236  4,808  
Other Expenses 11,741  10,673 11,085   44,996  40,012  
Total Other Expenses 39,714  38,607 38,346   156,702  149,409  
        
Income Before Income Taxes 20,340  25,966 22,941   90,586  68,592  
        
Provision for Income Taxes 4,516  5,511 4,974   19,543  14,337  
        
Net Income 15,824  20,455 17,967   71,043  54,255  
        
Preferred Stock Dividends 1,350  1,351 1,350   5,401  1,350  
        
Net Income Available to Common Shareholders$14,474 $19,104$16,617  $65,642 $52,905  
        



Business First Bancshares, Inc. 
Consolidated Net Interest Margin 
(Unaudited) 
             
             
 Three Months Ended 
 December 31, 2023 September 30, 2023 December 31, 2022 
 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$4,949,954 $85,7616.87% $4,906,917 $84,5756.84% $4,519,643 $69,3646.09% 
Securities 865,372  5,1932.38%  885,792  5,0532.26%  901,236  4,3161.90% 
Interest-Bearing Deposit in Other Banks 271,004  3,7115.43%  278,420  3,6945.26%  62,013  8255.28% 
Total Interest-Earning Assets 6,086,330  94,6656.17%  6,071,129  93,3226.10%  5,482,892  74,5055.39% 
Allowance for Loan Losses (40,996)    (42,120)    (35,951)   
Noninterest-Earning Assets 449,527     445,926     453,031    
Total Assets$6,494,861 $94,665  $6,474,935 $93,322  $5,899,972 $74,505  
             
             
Liabilities and Shareholders' Equity            
             
Interest-Bearing Liabilities:            
Interest-Bearing Deposits$3,816,474 $34,1903.55% $3,703,682 $30,1103.23% $3,157,513 $13,3071.67% 
Subordinated Debt 100,009  1,3205.24%  100,400  1,3635.39%  110,800  1,3634.88% 
Subordinated Debt - Trust Preferred Securities 5,000  1138.97%  5,000  1118.81%  5,000  856.74% 
Bank Term Funding Program 300,000  3,2024.23%  300,000  3,4224.53%  -  -0.00% 
Advances from Federal Home Loan Bank (FHLB) 213,280  1,9473.62%  284,930  2,8754.00%  436,233  3,5553.23% 
First National Bankers Bank Line of Credit -  -0.00%  -  -0.00%  1,667  307.14% 
Other Borrowings 20,772  1332.54%  23,542  1472.48%  25,815  1051.61% 
Total Interest-Bearing Liabilities 4,455,535  40,9053.64%  4,417,554  38,0283.42%  3,737,028  18,4451.96% 
             
Noninterest-Bearing Liabilities:            
Noninterest-Bearing Deposits$1,368,452    $1,399,293    $1,567,507    
Other Liabilities 54,316     50,947     37,138    
Total Noninterest-Bearing Liabilities 1,422,768     1,450,240     1,604,645    
Shareholders' Equity:            
    Common Shareholders' Equity 544,628     535,211     486,338    
    Preferred Equity 71,930     71,930     71,961    
Total Shareholders' Equity 616,558     607,141     558,299    
Total Liabilities and Shareholders' Equity$6,494,861    $6,474,935    $5,899,972    
             
Net Interest Spread  2.53%   2.68%   3.43% 
Net Interest Income $53,760   $55,294   $56,060  
Net Interest Margin  3.50%   3.61%   4.06% 
             
Overall Cost of Funds  2.79%   2.59%   1.38% 
             
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention.   
             



Business First Bancshares, Inc. 
Consolidated Net Interest Margin 
(Unaudited) 
         
         
 Year Ended 
 December 31, 2023 December 31, 2022 
 Average   Average   
 OutstandingInterest Earned /Average OutstandingInterest Earned /Average 
(Dollars in thousands)BalanceInterest PaidYield / Rate BalanceInterest PaidYield / Rate 
         
Assets        
         
Interest-Earning Assets:        
Total Loans$4,859,637 $323,3276.65% $4,020,436 $218,0325.42% 
Securities 898,771  20,1252.24%  956,232  16,5031.73% 
Interest-Bearing Deposit in Other Banks 180,997  9,8755.46%  115,016  1,5791.37% 
Total Interest-Earning Assets 5,939,405  353,3275.95%  5,091,684  236,1144.64% 
Allowance for Loan Losses (41,665)    (32,093)   
Noninterest-Earning Assets 444,140     413,917    
Total Assets$6,341,880 $353,327  $5,473,508 $236,114  
         
         
Liabilities and Shareholders' Equity        
         
Interest-Bearing Liabilities:        
Interest-Bearing Deposits$3,566,216 $106,9083.00% $3,007,882 $24,4130.81% 
Subordinated Debt 105,369  5,3235.05%  106,054  5,1084.82% 
Subordinated Debt - Trust Preferred Securities 5,000  4308.60%  5,000  2474.94% 
Bank Term Funding Program 253,706  11,3134.46%  -  -0.00% 
Advances from Federal Home Loan Bank (FHLB) 329,726  13,7024.16%  271,025  6,4792.39% 
First National Bankers Bank Line of Credit -  -0.00%  2,500  1214.84% 
Other Borrowings 21,825  5222.39%  23,197  1690.73% 
Total Interest-Bearing Liabilities 4,281,842  138,1983.23%  3,415,658  36,5371.07% 
         
Noninterest-Bearing Liabilities:        
Noninterest-Bearing Deposits 1,412,979     1,539,938    
Other Liabilities 44,173     37,533    
Total Noninterest-Bearing Liabilities 1,457,152     1,577,471    
Shareholders' Equity:        
    Common Shareholders' Equity 530,956     456,388    
    Preferred Equity 71,930     23,991    
Total Shareholders' Equity 602,886     480,379    
Total Liabilities and Shareholders' Equity$6,341,880    $5,473,508    
         
Net Interest Spread  2.72%   3.57% 
Net Interest Income $215,129   $199,577  
Net Interest Margin  3.62%   3.92% 
         
Overall Cost of Funds  2.43%   0.74% 
         
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention.
         



Business First Bancshares, Inc. 
Non-GAAP Measures 
(Unaudited) 
        
 Three Months Ended Year Ended 
 December 31,September 30,December 31,December 31,December 31, 
(Dollars in thousands, except per share data) 2023  2023  2022   2023  2022  
        
Interest Income:       
Interest income$94,665 $93,322 $74,505  $353,327 $236,114  
Core interest income 94,665  93,322  74,505   353,327  236,114  
Interest Expense:       
Interest expense 40,905  38,028  18,445   138,198  36,537  
Core interest expense 40,905  38,028  18,445   138,198  36,537  
Provision for Credit Losses:(b)       
Provision for credit losses 119  604  3,051   4,483  10,886  
Core provision expense 119  604  3,051   4,483  10,886  
Other Income:       
Other income 6,413  9,883  8,278   36,642  29,310  
Losses on former bank premises and equipment -  -  -   -  717  
Losses on sale of securities 2,503  -  2   2,565  48  
Insurance reimbursement of storm expenditures -  -  (422)  -  (687) 
Gain on sale of branch (13) (932) -   (945) -  
Gain on extinguishment of debt -  (517) -   (1,458) -  
Core other income 8,903  8,434  7,858   36,804  29,388  
Other Expense:       
Other expense 39,714  38,607  38,346   156,702  149,409  
Acquisition-related expenses (2) (63) (2) (138)  (236) (5,178) 
Write-down on former bank premises (432)    (432)  
Occupancy and bank premises - storm repair -  -  -   -  (501) 
Core other expense 39,219  38,605  38,208   156,034  143,730  
Pre-Tax Income:(a)       
Pre-tax income 20,340  25,966  22,941   90,586  68,592  
Losses on former bank premises and equipment -  -  -   -  717  
Losses on sale of securities 2,503  -  2   2,565  48  
Insurance reimbursement of storm expenditures -  -  (422)  -  (687) 
Gain on sale of branch (13) (932) -   (945) -  
Gain on extinguishment of debt -  (517) -   (1,458) -  
Acquisition-related expenses (2) 63  2  138   236  5,178  
Write-down on former bank premises 432     432   
Occupancy and bank premises - storm repair -  -  -   -  501  
Core pre-tax income 23,325  24,519  22,659   91,416  74,349  
Provision for Income Taxes:(1)       
Provision for income taxes 4,516  5,511  4,974   19,543  14,337  
Tax on losses on former bank premises and equipment -  -  -   -  151  
Tax on losses on sale of securities 529  -  -   542  10  
Tax on insurance reimbursement of storm expenditures -  -  (89)  -  (144) 
Tax on gain on sale of branch (3) (197) -   (200) -  
Tax on gain on extinguishment of debt -  (109) -   (308) -  
Tax on acquisition-related expenses (2) 1  -  29   21  942  
Tax on write-down on former bank premises 91     91   
Tax on occupancy and bank premises - storm repair -  -  -   -  106  
Core provision for income taxes 5,134  5,205  4,914   19,689  15,402  
Preferred Dividends:       
Preferred dividends 1,350  1,351  1,350   5,401  1,350  
Core preferred dividends 1,350  1,351  1,350   5,401  1,350  
Net Income Available to Common Shareholders:       
Net income available to common shareholders 14,474  19,104  16,617   65,642  52,905  
Losses on former bank premises and equipment, net of tax -  -  -   -  566  
Losses on sale of securities, net of tax 1,974  -  2   2,023  38  
Insurance reimbursement of storm expenditures, net of tax -  -  (333)  -  (543) 
Gain on sale of branch, net of tax (10) (735) -   (745) -  
Gain on extinguishment of debt, net of tax -  (408) -   (1,150) -  
Acquisition-related expenses (2), net of tax 62  2  109   215  4,236  
Write-down on former bank premises, net of tax 341     341   
Occupancy and bank premises - storm repair, net of tax -  -  -   -  395  
Core net income available to common shareholders$16,841 $17,963 $16,395  $66,326 $57,597  
        
Pre-tax, pre-provision earnings available to common shareholders (a+b)$20,459 $26,570 $25,992  $95,069 $79,478  
Losses on former bank premises and equipment -  -  -   -  717  
Loss on sale of securities 2,503  -  2   2,565  48  
Insurance reimbursement of storm expenditures -  -  (422)  -  (687) 
Gain on sale of branch (13) (932) -   (945) -  
Gain on extinguishment of debt -  (517) -   (1,458) -  
Acquisition-related expenses (2) 63  2  138   236  5,178  
Write-down on former premises 432     432   
Occupancy and bank premises - storm repair -  -  -   -  501  
Core pre-tax, pre-provision earnings$23,444 $25,123 $25,710  $95,899 $85,235  
        
Average Diluted Common Shares Outstanding 25,333,913  25,288,660  24,757,143   25,296,200  22,817,493  
        
Diluted Earnings Per Common Share:       
Diluted earnings per common share$0.57 $0.76 $0.67  $2.59 $2.32  
Losses on former bank premises and equipment, net of tax -  -  -   -  0.02  
Loss on sale of securities, net of tax 0.08  -  -   0.08  -  
Insurance reimbursement of storm expenditures, net of tax -  -  (0.01)  -  (0.02) 
Gain on sale of branch, net of tax (0.00) (0.03) -   (0.03) -  
Gain on extinguishment of debt, net of tax -  (0.02) -   (0.04) -  
Acquisition-related expenses (2), net of tax 0.00  -  -   0.01  0.18  
Write-down on former premises, net of tax 0.01     0.01   
Occupancy and bank premises -storm repair, net of tax -  -  -   -  0.02  
Core diluted earnings per common share$0.66 $0.71 $0.66  $2.62 $2.52  
        
Pre-tax, pre-provision profit diluted earnings per common share$0.81 $1.05 $1.05  $3.76 $3.48  
Losses on former bank premises and equipment -  -  -   -  0.03  
Loss on sale of securities 0.10  -  -   0.10  -  
Insurance reimbursement of storm expenditures -  -  (0.02)  -  (0.03) 
Gain on sale of branch (0.00) (0.04) -   (0.04) -  
Gain on extinguishment of debt -  (0.02) -   (0.06) -  
Acquisition-related expenses (2) 0.00  -  0.01   0.01  0.23  
Write-down on former premises 0.02     0.02   
Occupancy and bank premises - storm repair -  -  -   -  0.03  
Core pre-tax, pre-provision diluted earnings per common share$0.93 $0.99 $1.04  $3.79 $3.74  
        
(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2023 and 2022. These rates approximated the marginal tax rates. 
(2) Includes merger and conversion-related expenses and salary and employee benefits.      
        



Business First Bancshares, Inc. 
Non-GAAP Measures 
(Unaudited) 
     
     
 December 31,September 30,December 31, 
(Dollars in thousands, except per share data) 2023  2023  2022  
     
Total Shareholders' (Common) Equity:    
Total shareholders' equity$644,259 $604,366 $580,481  
Preferred stock (71,930) (71,930) (71,930) 
Total common shareholders' equity 572,329  532,436  508,551  
Goodwill (88,391) (88,391) (88,543) 
Core deposit and customer intangible (11,895) (12,418) (14,042) 
Total tangible common equity$472,043 $431,627 $405,966  
     
     
Total Assets:    
Total assets$6,584,550 $6,488,781 $5,990,460  
Goodwill (88,391) (88,391) (88,543) 
Core deposit and customer intangible (11,895) (12,418) (14,042) 
Total tangible assets$6,484,264 $6,387,972 $5,887,875  
     
Common shares outstanding 25,351,809  25,344,168  25,110,313  
     
Book value per common share$22.58 $21.01 $20.25  
Tangible book value per common share$18.62 $17.03 $16.17  
Common equity to total assets 8.69% 8.21% 8.49% 
Tangible common equity to tangible assets 7.28% 6.76% 6.89% 
     



Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
       
 Three Months Ended Year Ended
 December 31,September 30,December 31, December 31,December 31,
(Dollars in thousands, except per share data) 2023  2023  2022   2023  2022 
       
       
Total Quarterly Average Assets$6,494,861 $6,474,935 $5,899,972  $6,341,880 $5,473,508 
Total Quarterly Average Common Equity$544,628 $535,211 $486,338  $530,956 $456,388 
       
Net Income Available to Common Shareholders:      
Net income available to common shareholders$14,474 $19,104 $16,617  $65,642 $52,905 
Losses on former bank premises and equipment, net of tax -  -  -   -  566 
Losses on sale of securities, net of tax 1,974  -  2   2,023  38 
Insurance reimbursement of storm expenditures, net of tax -  -  (333)  -  (543)
Gain on sale of branch, net of tax (10) (735) -   (745) - 
Gain on extinguishment of debt, net of tax -  (408) -   (1,150) - 
Acquisition-related expenses, net of tax 62  2  109   215  4,236 
Write-down on former bank premises, net of tax 341  -  -   341  - 
Occupancy and bank premises - storm repair, net of tax -  -  -   -  395 
Core net income available to common shareholders$16,841 $17,963 $16,395  $66,326 $57,597 
       
Return to common shareholders on average assets (annualized) (2) 0.88% 1.17% 1.12%  1.04% 0.97%
Core return on average assets (annualized) (2) 1.03% 1.10% 1.10%  1.05% 1.05%
Return to common shareholders on average common equity (annualized) (2) 10.54% 14.16% 13.56%  12.36% 11.59%
Core return on average common equity (annualized) (2) 12.27% 13.32% 13.37%  12.49% 12.62%
       
Interest Income:      
Interest income$94,665 $93,322 $74,505  $353,327 $236,114 
Core interest income 94,665  93,322  74,505   353,327  236,114 
Interest Expense:      
Interest expense 40,905  38,028  18,445   138,198  36,537 
Core interest expense 40,905  38,028  18,445   138,198  36,537 
Other Income:      
Other income 6,413  9,883  8,278   36,642  29,310 
Losses on former bank premises and equipment -  -  -   -  717 
Loss on sale of securities 2,503  -  2   2,565  48 
Insurance reimbursement of storm expenditures -  -  (422)  -  (687)
Gain on sale of branch (13) (932) -   (945) - 
Gain on extinguishment of debt -  (517) -   (1,458) - 
Core other income 8,903  8,434  7,858   36,804  29,388 
Other Expense:      
Other expense 39,714  38,607  38,346   156,702  149,409 
Acquisition-related expenses (63) (2) (138)  (236) (5,178)
Write-down on former bank premises (432) -  -   (432) - 
Occupancy and bank premises - storm repair -  -  -   -  (501)
Core other expense$39,219 $38,605 $38,208  $156,034 $143,730 
       
Efficiency Ratio:      
Other expense (a)$39,714 $38,607 $38,346  $156,702 $149,409 
Core other expense (c)$39,219 $38,605 $38,208  $156,034 $143,730 
Net interest and other income (1) (b)$62,676 $65,177 $64,340  $254,336 $228,935 
Core net interest and other income (1) (d)$62,663 $63,728 $63,918  $251,933 $228,965 
Efficiency ratio (a/b) 63.36% 59.23% 59.60%  61.61% 65.26%
Core efficiency ratio (c/d) 62.59% 60.58% 59.78%  61.93% 62.77%
       
Total Average Interest-Earnings Assets$6,086,330 $6,071,129 $5,482,892  $5,939,405 $5,091,684 
       
Net Interest Income:       
Net interest income$53,760 $55,294 $56,060  $215,129 $199,577 
Loan discount accretion (1,921) (2,419) (4,212)  (9,311) (9,432)
Net interest income excluding loan discount accretion$51,839 $52,875 $51,848  $205,818 $190,145 
       
Net interest margin (2) 3.50% 3.61% 4.06%  3.62% 3.92%
Net interest margin excluding loan discount accretion (2) 3.38% 3.46% 3.75%  3.47% 3.73%
Net interest spread (2) 2.53% 2.68% 3.43%  2.72% 3.57%
Net interest spread excluding loan discount accretion (2) 2.40% 2.53% 3.13%  2.56% 3.38%
       
(1) Excludes gains/losses on sales of securities.      
(2) Calculated utilizing an Actual/365 day count convention.      
       

 




 


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