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Business First Bancshares, Inc., Announces Financial

Business First Bancshares, Inc., Announces Financial

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 On the day of the presentation, the corresponding slide presentation will be available to view on the b1BANK website at

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,
2024
    March 31,
2024
    June 30,
2023
 
                   
Balance 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,
2024
March 31,
2024
June 30,
2023
June 30,
2024
June 30,
2023
           
Per 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,
2024
    March 31,
2024
    June 30,
2023
      June 30,
2024
    June 30,
2023
 
                                 
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 )
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,
2024
    March 31,
2024
    June 30,
2023
 
                   
Assets                  
                   
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,
2024
March 31,
2024
June 30,
2023
June 30,
2024
June 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
Balance
Interest
Earned/
Interest
Paid
Average
Yield/
Rate
    Average
Outstanding
Balance
  Interest
Earned/
Interest
Paid
Average
Yield/
Rate
    Average
Outstanding
Balance
  Interest
Earned/
Interest
Paid
Average
Yield/
Rate
Assets
Interest Earning Assets:
                   
Total Loans $ 5,153,642   $ 90,604 7.07 %   $ 5,026,937   $ 85,947 6.88 %   $ 4,861,783   $ 79,223 6.54 %
Securities       
Interest-Bearing
  891,384     5,933 2.68 %     888,933     5,599 2.53 %     916,421     5,097 2.23 %
Deposit in Other
Banks
  246,590     3,333 5.44 %     330,260     4,465 5.44 %     117,086     1,528 5.23 %
Total Interest
Earning Assets
  6,291,616     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
Assets
  461,007         461,923           421,376      
Total Assets $ 6,711,173   $ 99,870     $ 6,667,527   $ 96,011     $ 6,274,656   $ 85,848  
Liabilities and
Shareholders’ Equity
                                             
Interest-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
Securities
    5,000     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’
Equity
    655,114         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
Balance
Interest Earned/
Interest Paid
Average Yield/
Rate
    Average Outstanding 
Balance
  Interest Earned/
Interest Paid
Average Yield/
Rate
Assets                  
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’
Equity
                     
                       
Interest-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 Securities        
   5,000     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
Liabilities
  1,339,702             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,
2024
    March 31,
2024
    June 30,
2023
    June 30,
2024
    June 30,
2023
 
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  
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,
2024
March 31,
2024
June 30,
2023
June 30,
2024
June 30,
2023
Core 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,
2024
March 31,
2024
June 30,
2023
June 30,
2024
June 30,
2023
                         
Average 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,
2024
March 31,
2024
June 30,
2023
Total 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, 
2024
March 31,
2024
June 30,
2023
June 30,
2024
June 30,
2023
                               
Total 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,
2024
March 31,
2024
June 30,
2023
June 30,
2024
June 30,
2023
Efficiency 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
[email protected]

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