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Business First Bancshares, Inc., Announces Financial Results for Q1 2024

2024-04-25 16:09 ET - News Release

BATON ROUGE, La., April 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 March 31, 2024, including net income available to common shareholders of $12.2 million or $0.48 per diluted common share, decreases of $2.3 million and $0.09, respectively, compared to the linked quarter ended December 31, 2023. On a non-GAAP basis, core net income for the quarter ended March 31, 2024, which excludes certain income and expenses, was $12.8 million or $0.50 per diluted common share, decreases of $4.0 million and $0.16, respectively, from the linked quarter.

“We didn’t earn as much in the first quarter as I would have liked,” said Jude Melville, president and CEO, “but we did accomplish core foundational work that will lead to greater earnings power over the course of the year. We improved the funding side of our balance sheet, achieving stability in non-interest bearing accounts, increasing liquidity though the raising of core deposits, and paying down debt. We deepened the production side of our house by acquiring and integrating Waterstone, a Loan Service Provider that facilitates SBA production for banks around the country.  And we grew loans at a healthy, normalized rate, further diversifying our credit exposure by product type and geography.”

On Tuesday, April 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 first quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on May 31, 2024, or as soon thereafter as practicable, to the shareholders of record as of May 15, 2024.

Quarterly Highlights

  • Deposit Growth. Deposits increased $324.0 million or 6.17%, 24.82% annualized, for the quarter ended March 31, 2024, compared to the linked quarter. During the quarter ended March 31, 2024, noninterest-bearing deposits remained stable with a decrease of $4.0 million or 0.31% and interest-bearing deposits increased $328.0 million or 8.30%, compared to the linked quarter. Highlighting quarterly deposit growth were the Capital and Dallas markets with $55.8 million and $45.5 million, respectively. The Capital and Dallas markets opened 758 and 296 new accounts during the quarter. All new deposit generations for Business First had a weighted average rate of 4.32% as of March 31, 2024, a decrease of 0.29% from the linked quarter.

  • Loan Growth. Loans held for investment increased $96.1 million or 1.92%, 7.74% annualized, from the linked quarter. Loan growth was mostly attributable to the $68.1 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 $7.8 million from the linked quarter. The loan to deposit ratio decreased from 95.12% to 91.32% from the linked quarter.

  • Waterstone LSP Acquisition. On January 31, 2024, Business First acquired Waterstone LSP, a company which provides other financial institutions nationwide comprehensive support and lending solutions under the Small Business Administration (SBA) 7(a) loan program.

Statement of Financial Condition

Loans

Loans held for investment increased $96.1 million or 1.92%, 7.74% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the C&I portfolio of $68.1 million and in the residential real estate portfolio of $34.6 million, offset by a $7.8 million reduction in the C&D portfolio.

The Dallas Fort Worth region produced 43.75% of net loan growth from the linked quarter based on unpaid principal balance, while the Southwest Louisiana region produced 28.55% and Capital region produced 14.47%. Based on unpaid principal balances, Texas-based loans represent approximately 37% of the overall loan portfolio as of March 31, 2024.

Credit Quality

The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets increased from 0.34% and 0.28%, respectively, at December 31, 2023, to 0.43% and 0.34% at March 31, 2024. The increase was attributable to an additional $4.6 million in nonaccrual loans, largely comprised of two lending relationships.

Securities

The securities portfolio decreased $6.7 million or 0.76%, from the linked quarter. The increase was driven by negative fair value adjustments of $6.4 million. The securities portfolio, based on estimated fair value, represented 13.04% of total assets as of March 31, 2024.  

Deposits

Deposits increased $324.0 million or 6.17%, 24.82% annualized, for the quarter ended March 31, 2024, compared to the linked quarter. During the quarter ended March 31, 2024, noninterest-bearing deposits remained stable with a decrease of $4.0 million or 0.31% compared to the linked quarter and interest-bearing deposits increased $328.0 million or 8.30%, with certificate of deposit (CD) accounts declining $31.4 million or 2.41%.

The Capital and Dallas markets led the franchise with $55.8 million and $45.5 million in deposit growth. The Capital and Dallas markets opened 758 and 296 new accounts, respectively, during the quarter. All new deposit generations for Business First had a weighted average rate of 4.32% as of March 31, 2024, a decrease of 0.29% from the linked quarter.

Money market accounts increased $448.8 million or 33.41% from the linked quarter with a total portfolio weighted average of 4.10%, up slightly from 4.07% at December 31, 2023. However, lower rate demand deposit accounts of $32.0 million were also opened in connection with these money market accounts during the quarter ended March 31, 2024. This represented an 18.43% increase from the linked quarter and an increase of 28.23% from the last twelve months beginning April 1, 2023.

New money market account openings in March 2024 totaled $94.0 million with a weighted average rate of 4.29% as of March 31, 2024, compared to $84.0 million in new account openings during February 2024 with a weighted average rate of 5.03% as of February 29, 2024. Money market account balances increased from $1.34 billion as of December 31, 2023, to $1.79 billion as of March 31, 2024.

Borrowings

Borrowings decreased $204.7 million or 32.24%, from the linked quarter due to a full repayment of the $300.0 million Federal Reserve’s Bank Term Funding Program (BFTP) in March 2024. The repayment was funded through additional advances from the Federal Home Loan Bank (FHLB) of approximately $100.0 million, brokered CDs of $52.0 million and the remaining $148.0 million from cash.

Shareholders’ Equity

Accumulated other comprehensive income (AOCI) decreased $5.0 million during the first quarter due to negative after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $22.64 at March 31, 2024, compared to $22.58 at December 31, 2023. On a non-GAAP basis, tangible book value per common share decreased slightly from $18.62 at December 31, 2023, to $18.61 at March 31, 2024.

Results of Operations

Net Interest Income

For the quarter ended March 31, 2024, net interest income totaled $51.5 million, compared to $53.8 million from the linked quarter. Loan and interest-earning asset yields of 6.88% and 6.18%, respectively, increased one basis point each compared to 6.87% and 6.17% from the linked quarter. Both ratios were negatively impacted by $1.1 million less in loan discount accretion. Net interest margin and net interest spread were 3.32% and 2.36% compared to 3.50% and 2.53%, respectively, for the linked quarter. The overall cost of funds, which include noninterest-bearing deposits, increased from 2.79% to 3.00% or 21 basis points, from the linked quarter due to higher cost deposits and less average noninterest bearing deposits; however, ending noninterest bearing deposits only decreased $4.0 million from the linked quarter.

Non-GAAP net interest income (excluding loan discount accretion of $0.8 million) totaled $50.7 million for the quarter ended March 31, 2024, compared to $51.8 million (excluding loan discount accretion of $1.9 million) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.8 million) were 3.27% and 2.31%, respectively, for the quarter ended March 31, 2024, compared to 3.38% and 2.40% (excluding loan discount accretion of $1.9 million) for the linked quarter. Excluding loan discount accretion, loan yields increased nine basis points to 6.81% from 6.72%, and interest earnings asset yields increased eight basis points to 6.13% from 6.05%, compared to the linked quarter.

Provision for Credit Losses

During the quarter ended March 31, 2024, Business First recorded a provision for credit losses of $1.2 million, compared to $119,000 from the linked quarter. The current quarter’s reserve increased largely due to loan growth.

Other Income

For the quarter ended March 31, 2024, other income increased $2.9 million or 46.36%, compared to the linked quarter. The net increase was largely attributable to a $2.5 million loss on sale of securities due to Business First’s security repositioning initiative and a $1.0 million loss in equity investment income which both occurred during the linked quarter, partially offset by a $735,000 reduction in back-to-back customer swap fee income compared to the linked quarter.

Other Expenses

For the quarter ended March 31, 2024, other expenses increased by $2.8 million or 7.07%, compared to the linked quarter. The net increase was attributable to a $2.8 million increase in salaries and employee benefits compared to the linked quarter. The increase was largely associated with the Waterstone LSP acquisition, bonus-related expenses and cost of living adjustments.

Return on Assets and Common Equity

Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.74% and 8.51% for the quarter ended March 31, 2024, compared to 0.88% and 10.54%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 0.77% and 8.92% for the quarter ended March 31, 2024, compared to 1.03% and 12.27%, respectively, for the linked quarter.

Conference Call and Webcast

Executive management will host a conference call and webcast to discuss results on
Thursday, April 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 5574541, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/kqiwvpsh. 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.


Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com                                                            

 

Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
 Three Months Ended
 March 31,December 31,March 31,
(Dollars in thousands) 2024  2023  2023 
    
Balance Sheet Ratios       
    
Loans (HFI) to Deposits 91.32% 95.12% 99.94%
Shareholders' Equity to Assets Ratio 9.69% 9.78% 9.50%
    
Loans Receivable Held for Investment (HFI)         
    
Commercial$1,426,957 $1,358,838 $1,239,333 
Real Estate:  
Commercial 2,215,889  2,217,928  2,055,500 
Construction 662,013  669,798  787,634 
Residential 717,007  682,394  659,967 
Total Real Estate 3,594,909  3,570,120  3,503,101 
Consumer and Other 66,973  63,827  60,626 
Total Loans (Held for Investment)$5,088,839 $4,992,785 $4,803,060 
    
Allowance for Loan Losses       
    
Balance, Beginning of Period$40,414 $41,129 $38,178 
CECL Adoption/Implementation -  -  2,660 
Charge-offs – Quarterly (533) (1,039) (2,278)
Recoveries – Quarterly 141  152  103 
Provision for Loan Losses – Quarterly 1,143  172  3,167 
Balance, End of Period$41,165 $40,414 $41,830 
    
Allowance for Loan Losses to Total Loans (HFI) 0.81% 0.81% 0.87%
Allowance for Credit Losses to Total Loans (HFI) (1) 0.88% 0.88% 0.95%
Net Charge-offs (Recoveries) to Average Quarterly Total Loans 0.01% 0.02% 0.05%
    
Remaining Loan Purchase Discount$11,411 $12,286 $19,234 
    
Nonperforming Assets       
    
Nonperforming Loans: 
Nonaccrual Loans$20,778 $16,943 $16,952 
Loans Past Due 90 Days or More 855  127  127 
Total Nonperforming Loans 21,633  17,070  17,079 
Other Nonperforming Assets: 
Other Real Estate Owned 1,339  1,685  1,365 
Other Nonperforming Assets -  -  57 
Total Other Nonperforming Assets 1,339  1,685  1,422 
Total Nonperforming Assets$22,972 $18,755 $18,501 
    
Nonperforming Loans to Total Loans (HFI) 0.43% 0.34% 0.36%
Nonperforming Assets to Total Assets 0.34% 0.28% 0.29%
    
(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
 March 31,December 31,March 31,
(Dollars in thousands, except per share data) 2024  2023  2023 
    
Per Share Data   
    
Basic Earnings per Common Share$0.49 $0.58 $0.55 
Diluted Earnings per Common Share 0.48  0.57  0.54 
Dividends per Common Share 0.14  0.14  0.12 
Book Value per Common Share 22.64  22.58  20.77 
    
    
Average Common Shares Outstanding 25,127,187  25,116,688  24,979,955 
Average Diluted Common Shares Outstanding 25,429,194  25,333,913  25,222,308 
End of Period Common Shares Outstanding 25,485,383  25,351,809  25,319,520 
    
    
Annualized Performance Ratios   
    
Return to Common Shareholders on Average Assets (1) 0.74% 0.88% 0.91%
Return to Common Shareholders on Average Common Equity (1) 8.51% 10.54% 10.73%
Net Interest Margin (1) 3.32% 3.50% 3.75%
Net Interest Spread (1) 2.36% 2.53% 2.96%
Efficiency Ratio (2) 69.80% 63.36% 63.27%
    
Total Quarterly/Year-to-Date Average Assets$6,667,527 $6,494,861 $6,123,063 
Total Quarterly/Year-to-Date Average Common Equity 577,643  544,628  516,659 
    
Other Expenses   
    
Salaries and Employee Benefits$25,416 $22,609 $23,176 
Occupancy and Bank Premises 2,514  2,387  2,297 
Depreciation and Amortization 1,676  1,647  1,710 
Data Processing 2,579  2,490  1,485 
FDIC Assessment Fees 828  841  933 
Legal and Other Professional Fees 866  833  613 
Advertising and Promotions 1,145  1,052  1,148 
Utilities and Communications 674  700  721 
Ad Valorem Shares Tax 900  265  965 
Directors' Fees 282  262  269 
Other Real Estate Owned Expenses and Write-Downs 37  504  130 
Merger and Conversion-Related Expenses 340  63  103 
Other 5,265  6,061  5,129 
Total Other Expenses$42,522 $39,714 $38,679 
    
Other Income   
    
Service Charges on Deposit Accounts$2,439 $2,470 $2,281 
Loss on Sales of Securities (1) (2,503) (1)
Debit Card and ATM Fee Income 1,776  1,793  1,570 
Bank-Owned Life Insurance Income 579  572  524 
Gain on Sales of Loans 139  546  611 
Mortgage Origination Income 69  47  74 
Fees and Brokerage Commission 1,937  1,710  1,813 
Gain on Sales of Other Real Estate Owned 63  338  209 
Loss on Disposal of Other Assets -  (1) (5)
Gain on Sale of Branch -  13  - 
Gain on Extinguishment of Debt -  -  - 
Swap Fee Income 229  964  6 
Pass-Through Income (Loss) from Other Investments 294  (1,028) 173 
Other 1,862  1,492  1,133 
 Total Other Income$9,386 $6,413 $8,388 
    
    
(1) Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365/366 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)
    
 March 31,December 31,March 31,
(Dollars in thousands) 2024  2023  2023 
    
Assets   
    
Cash and Due From Banks$185,906 $226,110 $159,767 
Federal Funds Sold 211,292  151,134  104,250 
Securities Available for Sale, at Fair Values 872,903  879,571  903,945 
Mortgage Loans Held for Sale 77  835  423 
Loans and Lease Receivable 5,088,839  4,992,785  4,803,060 
Allowance for Loan Losses (41,165) (40,414) (41,830)
Net Loans and Lease Receivable 5,047,674  4,952,371  4,761,230 
Premises and Equipment, Net 68,716  69,480  64,065 
Accrued Interest Receivable 29,326  29,916  25,446 
Other Equity Securities 34,940  33,942  36,739 
Other Real Estate Owned 1,339  1,685  1,365 
Cash Value of Life Insurance 100,056  96,478  94,755 
Deferred Taxes, Net 26,800  27,323  28,680 
Goodwill 91,527  88,391  88,543 
Core Deposit and Customer Intangibles 11,372  11,895  13,517 
Other Assets 13,630  15,419  7,256 
    
Total Assets$6,695,558 $6,584,550 $6,289,981 
    
    
Liabilities     
    
Deposits   
Noninterest-Bearing$1,295,050 $1,299,090 $1,475,782 
Interest-Bearing 4,277,700  3,949,700  3,330,396 
Total Deposits 5,572,750  5,248,790  4,806,178 
    
Securities Sold Under Agreements to Repurchase 17,207  18,885  16,669 
Federal Funds Purchased -  -  14,622 
Bank Term Funding Program -  300,000  310,000 
Federal Home Loan Bank Borrowings 308,206  211,198  395,134 
Subordinated Debt 99,933  99,990  110,596 
Subordinated Debt - Trust Preferred Securities 5,000  5,000  5,000 
Accrued Interest Payable 3,930  14,841  3,513 
Other Liabilities 39,498  41,587  30,579 
    
Total Liabilities 6,046,524  5,940,291  5,692,291 
    
Shareholders' Equity       
    
Preferred Stock 71,930  71,930  71,930 
Common Stock 25,485  25,352  25,320 
Additional Paid-In Capital 398,511  397,447  394,677 
Retained Earnings 224,742  216,115  173,761 
Accumulated Other Comprehensive Loss (71,634) (66,585) (67,998)
    
Total Shareholders' Equity 649,034  644,259  597,690 
    
Total Liabilities and Shareholders' Equity$6,695,558 $6,584,550 $6,289,981 
    

 




Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
     
 Three Months Ended 
 March 31,December 31,March 31,
(Dollars in thousands) 2024  2023  2023  
     
Interest Income:   
Interest and Fees on Loans$85,947 $85,761 $73,768  
Interest and Dividends on Securities 5,599  5,193  4,782  
Interest on Federal Funds Sold and Due From Banks 4,465  3,711  942  
Total Interest Income 96,011  94,665  79,492  
     
Interest Expense:   
Interest on Deposits 38,029  34,190  18,928  
Interest on Borrowings 6,451  6,715  7,815  
Total Interest Expense 44,480  40,905  26,743  
     
Net Interest Income 51,531  53,760  52,749  
     
Provision for Credit Losses 1,186  119  3,222  
     
Net Interest Income After Provision for Credit Losses 50,345  53,641  49,527  
     
Other Income:   
Service Charges on Deposit Accounts 2,439  2,470  2,281  
Loss on Sales of Securities (1) (2,503) (1) 
Gain on Sales of Loans 139  546  611  
Other Income 6,809  5,900  5,497  
Total Other Income 9,386  6,413  8,388  
     
Other Expenses:   
Salaries and Employee Benefits 25,416  22,609  23,176  
Occupancy and Equipment Expense 5,357  5,301  5,001  
Merger and Conversion-Related Expense 340  63  103  
Other Expenses 11,409  11,741  10,399  
Total Other Expenses 42,522  39,714  38,679  
     
Income Before Income Taxes 17,209  20,340  19,236  
     
Provision for Income Taxes 3,639  4,516  4,211  
     
Net Income 13,570  15,824  15,025  
     
Preferred Stock Dividends 1,350  1,350  1,350  
     
Net Income Available to Common Shareholders$12,220 $14,474 $13,675  
     

 





Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
            
            
 Three Months Ended
 March 31, 2024 December 31, 2023 March 31, 2023
 Average   Average   Average  
 OutstandingInterest Earned/Average OutstandingInterest Earned/Average OutstandingInterest Earned/Average
(Dollars in thousands)BalanceInterest PaidYield / RateBalanceInterest PaidYield / RateBalanceInterest PaidYield / Rate
            
Assets           
            
Interest-Earning Assets:         
Total Loans$5,026,937 $85,9476.88% $4,949,954 $85,7616.87% $4,719,906 $73,7686.34%
Securities 888,933  5,5992.53%  865,372  5,1932.38%  927,491  4,7822.09%
Interest-Bearing Deposit in Other Banks 330,260  4,4655.44%  271,004  3,7115.43%  57,478  9426.65%
Total Interest-Earning Assets 6,246,130  96,0116.18%  6,086,330  94,6656.17%  5,704,875  79,4925.65%
Allowance for Loan Losses (40,526)    (40,996)    (41,533)  
Noninterest-Earning Assets 461,923     449,527     459,721   
Total Assets$6,667,527 $96,011  $6,494,861 $94,665  $6,123,063 $79,492 
            
            
Liabilities and Shareholders' Equity               
            
Interest-Bearing Liabilities:         
Interest-Bearing Deposits$4,072,600 $38,0293.76% $3,816,474 $34,1903.55% $3,339,493 $18,9282.30%
Subordinated Debt 99,972  1,3565.46%  100,009  1,3205.24%  110,647  1,3895.09%
Subordinated Debt - Trust Preferred Securities 5,000  1139.09%  5,000  1138.97%  5,000  987.95%
Bank Term Funding Program 260,440  2,7884.31%  300,000  3,2024.23%  34,444  3804.47%
Advances from Federal Home Loan Bank (FHLB) 223,501  2,0943.77%  213,280  1,9473.62%  517,934  5,8424.57%
Other Borrowings 16,116  1002.50%  20,772  1332.54%  20,886  1062.06%
Total Interest-Bearing Liabilities 4,677,629  44,4803.82%  4,455,535  40,9053.64%  4,028,404  26,7432.69%
            
Noninterest-Bearing Liabilities:         
Noninterest-Bearing Deposits$1,282,815    $1,368,452    $1,473,186   
Other Liabilities 57,510     54,316     32,884   
Total Noninterest-Bearing Liabilities 1,340,325     1,422,768     1,506,070   
Shareholders' Equity:          
    Common Shareholders' Equity 577,643     544,628     516,659   
    Preferred Equity 71,930     71,930     71,930   
Total Shareholders' Equity 649,573     616,558     588,589   
Total Liabilities and Shareholders' Equity$6,667,527    $6,494,861    $6,123,063   
            
Net Interest Spread 2.36%   2.53%   2.96%
Net Interest Income$51,531   $53,760   $52,749 
Net Interest Margin 3.32%   3.50%   3.75%
            
Overall Cost of Funds 3.00%   2.79%   1.97%
            
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365/366 day count convention.
            

 




Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
     
 Three Months Ended 
 March 31,December 31,March 31,
(Dollars in thousands, except per share data) 2024  2023  2023  
     
Interest Income:   
Interest income$96,011 $94,665 $79,492  
Core interest income 96,011  94,665  79,492  
Interest Expense:   
Interest expense 44,480  40,905  26,743  
Core interest expense 44,480  40,905  26,743  
Provision for Credit Losses:(b) 
Provision for credit losses 1,186  119  3,222  
Core provision expense 1,186  119  3,222  
Other Income:   
Other income 9,386  6,413  8,388  
Gain on former bank premises and equipment (50) -  -  
Loss on sale of securities 1  2,503  1  
Gain on sale of branch -  (13) -  
Core other income 9,337  8,903  8,389  
Other Expense:   
Other expense 42,522  39,714  38,679  
Acquisition-related expenses (2) (715) (63) (103) 
Write-down on former bank premises -  (432) -  
Core other expense 41,807  39,219  38,576  
Pre-Tax Income:(a)  
Pre-tax income 17,209  20,340  19,236  
Gain on former bank premises and equipment (50) -  -  
Loss on sale of securities 1  2,503  1  
Gain on sale of branch -  (13) -  
Acquisition-related expenses (2) 715  63  103  
Write-down on former bank premises -  432  -  
Core pre-tax income 17,875  23,325  19,340  
Provision for Income Taxes:(1) 
Provision for income taxes 3,639  4,516  4,211  
Tax on gain on former bank premises and equipment (11) -  -  
Tax on loss on sale of securities 0  529  -  
Tax on gain on sale of branch -  (3) -  
Tax on acquisition-related expenses (2) 89  1  6  
Tax on write-down on former bank premises -  91  -  
Core provision for income taxes 3,717  5,134  4,217  
Preferred Dividends:  
Preferred dividends 1,350  1,350  1,350  
Core preferred dividends 1,350  1,350  1,350  
Net Income Available to Common Shareholders:
Net income available to common shareholders 12,220  14,474  13,675  
Gain on former bank premises and equipment, net of tax (39) -  -  
Loss on sale of securities, net of tax 1  1,974  1  
Gain on sale of branch, net of tax -  (10) -  
Acquisition-related expenses (2), net of tax 626  62  97  
Write-down on former bank premises, net of tax -  341  -  
Core net income available to common shareholders$12,808 $16,841 $13,773  
     
Pre-tax, pre-provision earnings available to common shareholders (a+b)$18,395 $20,459 $22,458  
Gain on former bank premises and equipment (50) -  -  
Loss on sale of securities 1  2,503  1  
Gain on sale of branch -  (13) -  
Acquisition-related expenses (2) 715  63  103  
Write-down on former premises -  432  -  
Core pre-tax, pre-provision earnings$19,061 $23,444 $22,562  
     
Average Diluted Common Shares Outstanding 25,429,194  25,333,913  25,222,308  
     
Diluted Earnings Per Common Share:
Diluted earnings per common share$0.48 $0.57 $0.54  
Gain on former bank premises and equipment, net of tax (0.00) -  -  
Loss on sale of securities, net of tax 0.00  0.08  -  
Gain on sale of branch, net of tax -  -  -  
Acquisition-related expenses (2), net of tax 0.02  -  0.01  
Write-down on former premises, net of tax -  0.01  -  
Core diluted earnings per common share$0.50 $0.66 $0.55  
     
Pre-tax, pre-provision profit diluted earnings per common share$0.72 $0.81 $0.89  
Gain on former bank premises and equipment (0.00) -  -  
Loss on sale of securities 0.00  0.10  -  
Gain on sale of branch -  -  -  
Acquisition-related expenses (2) 0.03  -  -  
Write-down on former premises -  0.02  -  
Core pre-tax, pre-provision diluted earnings per common share$0.75 $0.93 $0.89  
     
(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)
    
    
 March 31,December 31,March 31,
(Dollars in thousands, except per share data) 2024  2023  2023 
    
Total Shareholders' (Common) Equity:
Total shareholders' equity$649,034 $644,259 $597,690 
Preferred stock (71,930) (71,930) (71,930)
Total common shareholders' equity 577,104  572,329  525,760 
Goodwill (91,527) (88,391) (88,543)
Core deposit and customer intangible (11,372) (11,895) (13,517)
Total tangible common equity$474,205 $472,043 $423,700 
    
    
Total Assets:  
Total assets$6,695,558 $6,584,550 $6,289,981 
Goodwill (91,527) (88,391) (88,543)
Core deposit and customer intangible (11,372) (11,895) (13,517)
Total tangible assets$6,592,659 $6,484,264 $6,187,921 
    
Common shares outstanding 25,485,383  25,351,809  25,319,520 
    
Book value per common share$22.64 $22.58 $20.77 
Tangible book value per common share$18.61 $18.62 $16.73 
Common equity to total assets 8.62% 8.69% 8.36%
Tangible common equity to tangible assets 7.19% 7.28% 6.85%

 


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
     
 Three Months Ended 
 March 31,December 31,March 31,
(Dollars in thousands, except per share data) 2024  2023  2023  
     
     
Total Quarterly Average Assets$6,667,527 $6,494,861 $6,123,063  
Total Quarterly Average Common Equity$577,643 $544,628 $516,659  
     
Net Income Available to Common Shareholders:
Net income available to common shareholders$12,220 $14,474 $13,675  
Gain on former bank premises and equipment, net of tax (39) -  -  
Loss on sale of securities, net of tax 1  1,974  1  
Gain on sale of branch, net of tax -  (10) -  
Acquisition-related expenses, net of tax 626  62  97  
Write-down on former bank premises, net of tax -  341  -  
Core net income available to common shareholders$12,808 $16,841 $13,773  
     
Return to common shareholders on average assets (annualized) (2) 0.74% 0.88% 0.91% 
Core return on average assets (annualized) (2) 0.77% 1.03% 0.91% 
Return to common shareholders on average common equity (annualized) (2) 8.51% 10.54% 10.73% 
Core return on average common equity (annualized) (2) 8.92% 12.27% 10.81% 
     
Interest Income:   
Interest income$96,011 $94,665 $79,492  
Core interest income 96,011  94,665  79,492  
Interest Expense:   
Interest expense 44,480  40,905  26,743  
Core interest expense 44,480  40,905  26,743  
Other Income:   
Other income 9,386  6,413  8,388  
Gain on former bank premises and equipment (50) -  -  
Loss on sale of securities 1  2,503  1  
Gain on sale of branch -  (13) -  
Core other income 9,337  8,903  8,389  
Other Expense:   
Other expense 42,522  39,714  38,679  
Acquisition-related expenses (715) (63) (103) 
Write-down on former bank premises -  (432) -  
Core other expense$41,807 $39,219 $38,576  
     
Efficiency Ratio:   
Other expense (a)$42,522 $39,714 $38,679  
Core other expense (c)$41,807 $39,219 $38,576  
Net interest and other income (1) (b)$60,918 $62,676 $61,138  
Core net interest and other income (1) (d)$60,868 $62,663 $61,138  
Efficiency ratio (a/b) 69.80% 63.36% 63.27% 
Core efficiency ratio (c/d) 68.68% 62.59% 63.10% 
     
Total Average Interest-Earnings Assets$6,246,130 $6,086,330 $5,704,875  
     
Net Interest Income:  
Net interest income$51,531 $53,760 $52,749  
Loan discount accretion (785) (1,921) (2,912) 
Net interest income excluding loan discount accretion$50,746 $51,839 $49,837  
     
Net interest margin (2) 3.32% 3.50% 3.75% 
Net interest margin excluding loan discount accretion (2) 3.27% 3.38% 3.54% 
Net interest spread (2) 2.36% 2.53% 2.96% 
Net interest spread excluding loan discount accretion (2) 2.31% 2.40% 2.75% 
     
(1) Excludes gains/losses on sales of securities.
(2) Calculated utilizing an Actual/365/366 day count convention.
     

 

 

 


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