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Business First Bancshares, Inc., Announces Financial Results for Q2 2022

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Business First Bancshares, Inc.
Business First Bancshares, Inc.

BATON ROUGE, La., July 26, 2022 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended June 30, 2022, including net income of $13.8 million or $0.61 per diluted share, increases of $5.0 million and $0.20, respectively, from the quarter ended March 31, 2022. On a non-GAAP basis, core net income for the quarter ended June 30, 2022, which excludes certain income and expenses, was $14.6 million or $0.64 per diluted share, increases of $4.3 million and $0.15, respectively, from the quarter ended March 31, 2022.

”Our second quarter results demonstrate strengthening returns on investments our team has made over the past few years,” said Jude Melville, president and CEO. “Strong and diversified organic growth across our footprint, positive momentum towards integration of our recent Houston partnership, and a continued prioritized focus on asset quality combined to produce record levels of performance and profitability. We are monitoring developments in the broader economy but feel confident we are well positioned to continue executing on our strategic plan while also supporting our clients and partners as they do the same.”

On July 26, 2022, Business First’s board of directors declared a quarterly dividend based upon financial performance for the second quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of August 15, 2022. The dividend will be paid on August 31, 2022, or as soon thereafter as practicable.

Quarterly Highlights

  • Strong Loan Growth. Total loans held for investment at June 30, 2022, were $4.1 billion, an increase of $365.2 million compared to March 31, 2022, or 9.74% for the quarter. Based on unpaid principal balances, 37.1% of loan growth for the quarter ended June 30, 2022, was attributable to our Dallas, Texas market, 29.0% to the New Orleans market, and 26.4% to the northern Louisiana market (largely attributable to agricultural lending). As of June 30, 2022, approximately 32% of Business First’s loan portfolio resides in Texas based on unpaid principal balances.

  • Expansion of Net Interest Margin. For the quarter ended June 30, 2022, net interest income totaled $49.6 million and net interest margin and net interest spread were 3.98% and 3.79%, respectively, compared to $40.5 million, 3.51% and 3.35% for the quarter ended March 31, 2022. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.6 million) were 3.77% and 3.59%, respectively, for the quarter ended June 30, 2022, compared to 3.43% and 3.27% (excluding loan discount accretion of $920,000) for the quarter ended March 31, 2022. Non-GAAP net interest margin and spread rose due to the recent increase in interest rates.

  • Solid Return on Assets and Equity. Return on average assets and equity, each on an annualized basis, were 1.02% and 12.22%, respectively, for the quarter ended June 30, 2022, compared to 0.71% and 7.83%, respectively, for the quarter ended March 31, 2022.

  • Overall Credit Quality Remains Stable. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets increased from 0.29% and 0.23%, respectively, at March 31, 2022, to 0.42% and 0.33% at June 30, 2022. This change is largely due to a to a single nonfarm nonresidential commercial loan with an outstanding balance of $6.3 million being transferred to nonaccrual at the beginning of the second quarter. This occurred because of a delay in the hurricane-related insurance settlement process. The insurance proceeds were received in July 2022 and the loan was repaid in full. This loan negatively impacted our nonperforming loans to total loans held for investment ratio by 16 basis points and our nonperforming assets to total assets ratio by 12 basis points.

Financial Condition

June 30, 2022, Compared to March 31, 2022

Loans

Loans held for investment increased $365.2 million or 9.74% for the quarter ended June 30, 2022.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment increased from 0.29% as of March 31, 2022, to 0.42% as of June 30, 2022. Nonperforming assets as a percentage of total assets increased from 0.23% as of March 31, 2022, to 0.33% as of June 30, 2022. The increases were largely attributable to a single nonfarm nonresidential commercial loan with an outstanding balance of $6.3 million, which was paid in full in July 2022.

Total Shareholders’ Equity

Book value per common share was $19.73 at June 30, 2022, compared to $20.25 at March 31, 2022. The decrease was largely attributable to the $23.0 million decrease in accumulated other comprehensive income (loss) related to unrealized losses on Business First’s available for sale investment portfolio.

On a non-GAAP basis, tangible book value per share was $15.13 at June 30, 2022, compared to $15.57 at March 31, 2022.

June 30, 2022, Compared to June 30, 2021

Loans

Total loans held for investment increased by $1.3 billion or 44.09% compared to June 30, 2021. Excluding loans acquired from Texas Citizens on March 1, 2022, loans increased $912.5 million or 31.96%.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment increased from 0.40% as of June 30, 2021, to 0.42% as of June 30, 2022, largely due to the increase in nonaccrual loans, attributable to a single nonfarm nonresidential commercial loan with an outstanding balance of $6.3 million, which was paid in full in July 2022. Nonperforming assets as a percentage of total assets decreased from 0.42% as of June 30, 2021, to 0.33% as of June 30, 2022, largely due to the increase in total assets.

Total Shareholders’ Equity

Book value per common share was $19.73 at June 30, 2022, compared to $20.78 at June 30, 2021. On a non-GAAP basis, tangible book value per share was $15.13 at June 30, 2022, compared to $17.24 at June 30, 2021. Tangible book value per share was negatively impacted by a decrease in accumulated other comprehensive income (loss) of $69.6 million attributable to fair value adjustments on Business First’s available for sale investment portfolio.

Results of Operations

Second Quarter 2022 Compared to First Quarter 2022

Net Income and Diluted Earnings Per Share

For the quarter ended June 30, 2022, net income was $13.8 million, or $0.61 per diluted share, compared to net income of $8.7 million or $0.41 per diluted share, for the quarter ended March 31, 2022, increases of $5.0 million and $0.20, respectively. The increases were largely attributable to an increase in net interest income of $9.1 million (partially attributable to a full quarter of the Texas Citizens acquisition), offset by increases of $1.3 million in provision for loan losses and $2.7 million in other expenses.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2022, was $14.6 million or $0.64 per diluted share, compared to core net income of $10.3 million or $0.49 per diluted share, for the quarter ended March 31, 2022. Notable noncore events impacting earnings for the quarter ended June 30, 2022, included $708,000 of acquisition-related expenses, and $270,000 of expenses attributable to storm repairs, compared to $717,000 losses in disposals of former bank premises and equipment in other income, $811,000 of expenses attributable to acquisition-related expenses, and $231,000 of expenses attributable to storm repairs, for the quarter ended March 31, 2022.

Interest Income

For the quarter ended June 30, 2022, net interest income totaled $49.6 million and net interest margin and net interest spread were 3.98% and 3.79%, respectively, compared to $40.5 million, 3.51% and 3.35% for the quarter ended March 31, 2022. The average yield on total interest-earning assets was 4.33% for the quarter ended June 30, 2022, compared to 3.83% for the quarter ended March 31, 2022. The average yield on the loan portfolio (excluding Small Business Administration (SBA) Paycheck Protection Program (PPP) loans) was 5.10% for the quarter ended June 30, 2022, compared to 4.75% for the quarter ended March 31, 2022. The increases were largely attributable to loan growth and interest rate increases, as well as an increase of $1.7 million in loan discount accretion for the quarter ended June 30, 2022.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.6 million) were 3.77% and 3.59%, respectively, for the quarter ended June 30, 2022, compared to 3.43% and 3.27% (excluding loan discount accretion of $920,000) for the quarter ended March 31, 2022.

Interest Expense

For the quarter ended June 30, 2022, overall cost of funds (which includes noninterest-bearing deposits) increased by three basis points, from 0.33% to 0.36%, compared to the quarter ended March 31, 2022, due to increased rates and growth on interest-bearing deposits.

Other Income

For the quarter ended June 30, 2022, other income increased by $1.1 million compared to the quarter ended March 31, 2022. The increase was largely attributable to a $717,000 loss on disposal of other assets which occurred during the quarter ended March 31, 2022.

Other Expenses

For the quarter ended June 30, 2022, other expense increased by $2.7 million compared to the quarter ended March 31, 2022. The increase was largely attributable to increases in salaries and benefits of $1.7 million, mostly due to excess bonus payments of $463,000 and $1.1 million in salaries of two additional months of increased headcount as a result of the Texas Citizens acquisition compared to the quarter ended March 31, 2022.

Provision for Loan Losses

During the quarter ended June 30, 2022, Business First recorded a provision for loan losses of $2.9 million, compared to $1.6 million for the quarter ended March 31, 2022. The reserve for the quarter ended June 30, 2022, was driven primarily by new loan growth.

Return on Assets and Equity

Return on average assets and equity, each on an annualized basis, were 1.02% and 12.22%, respectively, for the quarter ended June 30, 2022, compared to 0.71% and 7.83%, respectively, for the quarter ended March 31, 2022.

Second Quarter 2022 Compared to Second Quarter 2021

Net Income and Diluted Earnings Per Share

For the quarter ended June 30, 2022, net income was $13.8 million or $0.61 per diluted share, compared to net income of $17.4 million or $0.84 per diluted share, for the quarter ended June 30, 2021. Although net interest income increased by $11.6 million (partially attributed to the larger balance sheet resulting from the Texas Citizens acquisition and the inclusion of only two months of the larger balance sheet as a result of the Pedestal transaction on May 1, 2021), this was offset by the $10.0 million gain on sale during the quarter ended June 30, 2021 (mainly attributable to the SBA PPP portfolio loan sale) and the $4.7 million increase in salaries and benefits, during the quarter ended June 30, 2022 (largely attributable to the acquisition of Texas Citizens on March 1, 2022, and additional staffing, mostly production, over the past year).

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2022, was $14.6 million or $0.64 per diluted share, compared to core net income of $18.7 million or $0.90 per diluted share, for the quarter ended June 30, 2021. Notable noncore events impacting earnings for the quarter ended June 30, 2022, included $708,000 of expenses attributable to acquisition-related expenses, and $270,000 of expenses attributable to storm repairs, compared to $938,000 in occupancy and bank premises expenses attributable to storm damage and $540,000 losses on sales of former premises and equipment within other income for the quarter ended June 30, 2021.

Interest Income

For the quarter ended June 30, 2022, net interest income totaled $49.6 million and net interest margin and net interest spread were 3.98% and 3.79%, respectively, compared to $37.9 million, 3.87% and 3.68% for the quarter ended June 30, 2021. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.10% for the quarter ended June 30, 2022, compared to 5.13% for the quarter ended June 30, 2021. The quarter ended June 30, 2022, included additional loan discount accretion of $1.0 million, while the quarter ended June 30, 2021, included $3.0 million additional interest income related to SBA PPP loans.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.6 million) were 3.77% and 3.59%, respectively, for the quarter ended June 30, 2022, compared to 3.71% and 3.52% (excluding loan discount accretion of $1.6 million) for the quarter ended June 30, 2021.

Interest Expense

For the quarter ended June 30, 2022, overall cost of funds (which includes noninterest-bearing deposits) decreased by nine basis points, from 0.45% to 0.36%, compared to the quarter ended June 30, 2021. The decrease in cost of funds was primarily attributable to an overall reduction in interest rates on deposit offerings and increase in noninterest-bearing deposits, offset by an increase associated with higher average subordinated debt balances.

Other Income

For the quarter ended June 30, 2022, the decrease in other income of $10.1 million, compared to the quarter ended June 30, 2021, was attributable to the $10.0 million gain on sale, largely related to the SBA PPP loan portfolio sale which occurred during the quarter ended June 30, 2021.

Other Expenses

For the quarter ended June 30, 2022, the increase in other expense of $5.5 million compared to the quarter ended March 31, 2021 was largely attributable to the $4.7 million increase in salaries and benefits mainly associated with the acquisition of Texas Citizens on March 1, 2022, and additional production staffing which occurred over the past year.

Provision for Loan Losses

During the quarter ended June 30, 2022, Business First recorded a provision for loan losses of $2.9 million compared to $2.2 million for the quarter ended June 30, 2021. The reserve for the quarter ended June 30, 2021, was affected by the impact of the COVID-19 pandemic on the qualitative factors at the time, while the reserve for the quarter ended June 30, 2022, was impacted due to new loan growth.

Return on Assets and Equity

Return on average assets and return on average equity, each on an annualized basis, were 1.02% and 12.22%, respectively, for the quarter ended June 30, 2022, from 1.58% and 16.57%, respectively, for the quarter ended June 30, 2021.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $5.5 billion in assets, $6.2 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 three-time recipient of Baton Rouge Business Report’s “Best Places to Work in Baton Rouge.” Visit b1BANK.com for more information.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP “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.


Business First Bancshares, Inc.

 

 

Selected Financial Information

 

 

(Unaudited)

 

 

 

For the Quarter Ended

 

 

 

June 30,

March 31,

June 30,

 

 

(Dollars in thousands)

 

2022

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

Balance Sheet Ratios

 

 

 

 

 

 

 

 

 

 

 

Loans (HFI) to Deposits

 

88.31

%

 

80.48

%

 

76.66

%

 

 

Shareholders' Equity to Assets Ratio

 

8.05

%

 

8.52

%

 

9.97

%

 

 

 

 

 

 

 

 

Loans Receivable Held for Investment (HFI)

 

 

 

 

 

 

 

 

 

 

 

Commercial (1)

$

949,631

 

$

817,093

 

$

660,691

 

 

 

Real Estate:

 

 

 

 

 

Construction and Land

 

642,260

 

 

581,661

 

 

454,055

 

 

 

Farmland

 

174,723

 

 

149,270

 

 

77,133

 

 

 

1-4 Family Residential

 

521,747

 

 

485,067

 

 

459,037

 

 

 

Multi-Family Residential

 

97,901

 

 

109,773

 

 

89,796

 

 

 

Nonfarm Nonresidential

 

1,605,691

 

 

1,481,046

 

 

1,002,707

 

 

 

Total Real Estate

 

3,042,322

 

 

2,806,817

 

 

2,082,728

 

 

 

Consumer and Other

 

121,773

 

 

124,588

 

 

111,467

 

 

 

Total Loans (Held for Investment)

$

4,113,726

 

$

3,748,498

 

$

2,854,886

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

 

 

Balance, Beginning of Period

$

29,245

 

$

29,112

 

$

25,251

 

 

 

Charge-offs – Quarterly

 

(99

)

 

(1,668

)

 

(861

)

 

 

Recoveries – Quarterly

 

226

 

 

184

 

 

71

 

 

 

Provision for Loan Losses – Quarterly

 

2,945

 

 

1,617

 

 

2,241

 

 

 

Balance, End of Period

$

32,317

 

$

29,245

 

$

26,702

 

 

 

 

 

 

 

 

 

Allowance for Loan Losses to Total Loans (HFI)

 

0.79

%

 

0.78

%

 

0.94

%

 

 

Net Charge-offs to Average Total Loans

 

0.00

%

 

0.04

%

 

0.03

%

 

 

 

 

 

 

 

 

Remaining Loan Purchase Discount

$

37,903

 

$

40,623

 

$

30,900

 

 

 

 

 

 

 

 

 

Nonperforming Assets

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Loans:

 

 

 

 

 

Nonaccrual Loans (2)

$

16,777

 

$

10,784

 

$

10,568

 

 

 

Loans Past Due 90 Days or More (2)

 

324

 

 

26

 

 

893

 

 

 

Total Nonperforming Loans

 

17,101

 

 

10,810

 

 

11,461

 

 

 

Other Nonperforming Assets:

 

 

 

 

 

Other Real Estate Owned

 

990

 

 

1,369

 

 

5,890

 

 

 

Other Nonperforming Assets

 

84

 

 

84

 

 

665

 

 

 

Total Other Nonperforming Assets

 

1,074

 

 

1,453

 

 

6,555

 

 

 

Total Nonperforming Assets

$

18,175

 

$

12,263

 

$

18,016

 

 

 

 

 

 

 

 

 

Nonperforming Loans to Total Loans (HFI)

 

0.42

%

 

0.29

%

 

0.40

%

 

 

Nonperforming Assets to Total Assets

 

0.33

%

 

0.23

%

 

0.42

%

 

 

 

 

 

 

 

 

(1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $3.2 million

 

of the commercial portfolio as of June 30, 2022.

 

 

 

 

 

SBA PPP loans accounted for $6.0 million of the commercial portfolio as of March 31, 2022.

 

 

SBA PPP loans accounted for $25.7 million of the commercial portfolio as of June 30, 2021.

 

 

 

 

 

 

 

 

(2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if

 

the Company does not expect to receive payment in full, as the Company is currently accreting interest income

 

over the expected life of the loans.

 

 

 

 

 


Business First Bancshares, Inc.

 

Selected Financial Information

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

March 31,

June 30,

 

June 30,

June 30,

 

(Dollars in thousands, except per share data)

 

2022

 

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings per Common Share

$

0.61

 

$

0.42

 

$

0.84

 

 

$

1.03

 

$

1.44

 

 

Diluted Earnings per Common Share

 

0.61

 

 

0.41

 

 

0.84

 

 

 

1.03

 

 

1.43

 

 

Dividends per Common Share

 

0.12

 

 

0.12

 

 

0.12

 

 

 

0.24

 

 

0.22

 

 

Book Value per Common Share

 

19.73

 

 

20.25

 

 

20.78

 

 

 

19.73

 

 

20.78

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Common Shares Outstanding

 

22,459,603

 

 

21,019,716

 

 

20,707,313

 

 

 

21,746,793

 

 

20,664,857

 

 

Average Diluted Shares Outstanding

 

22,656,174

 

 

21,162,482

 

 

20,827,786

 

 

 

21,916,641

 

 

20,783,135

 

 

End of Period Common Shares Outstanding

 

22,579,451

 

 

22,564,607

 

 

20,740,759

 

 

 

22,579,451

 

 

20,740,759

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

1.02

%

 

0.71

%

 

1.58

%

 

 

0.87

%

 

1.37

%

 

Return on Average Equity

 

12.22

%

 

7.83

%

 

16.57

%

 

 

10.03

%

 

14.23

%

 

Net Interest Margin

 

3.98

%

 

3.51

%

 

3.87

%

 

 

3.75

%

 

4.05

%

 

Net Interest Spread

 

3.79

%

 

3.35

%

 

3.68

%

 

 

3.58

%

 

3.87

%

 

Efficiency Ratio (1)

 

64.32

%

 

72.67

%

 

56.03

%

 

 

68.08

%

 

57.45

%

 

 

 

 

 

 

 

 

 

Total Quarterly Average Assets

$

5,371,639

 

$

4,920,105

 

$

4,399,911

 

 

$

5,145,872

 

$

4,338,170

 

 

Total Quarterly Average Equity

 

450,431

 

 

446,003

 

 

420,640

 

 

 

448,216

 

 

418,267

 

 

 

 

 

 

 

 

 

 

Other Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Employee Benefits

$

21,408

 

$

19,703

 

$

16,753

 

 

$

41,111

 

$

31,679

 

 

Occupancy and Bank Premises

 

2,422

 

 

2,052

 

 

2,276

 

 

 

4,474

 

 

4,087

 

 

Depreciation and Amortization

 

1,734

 

 

1,569

 

 

1,475

 

 

 

3,303

 

 

2,833

 

 

Data Processing

 

1,886

 

 

2,116

 

 

2,288

 

 

 

4,002

 

 

4,111

 

 

FDIC Assessment Fees

 

661

 

 

743

 

 

436

 

 

 

1,404

 

 

945

 

 

Legal and Other Professional Fees

 

735

 

 

543

 

 

905

 

 

 

1,278

 

 

1,646

 

 

Advertising and Promotions

 

703

 

 

531

 

 

624

 

 

 

1,234

 

 

1,101

 

 

Utilities and Communications

 

822

 

 

779

 

 

636

 

 

 

1,601

 

 

1,211

 

 

Ad Valorem Shares Tax

 

812

 

 

813

 

 

675

 

 

 

1,625

 

 

1,375

 

 

Directors' Fees

 

212

 

 

202

 

 

194

 

 

 

414

 

 

382

 

 

Other Real Estate Owned Expenses and Write-Downs

 

35

 

 

14

 

 

178

 

 

 

49

 

 

557

 

 

Merger and Conversion-Related Expenses

 

615

 

 

811

 

 

94

 

 

 

1,426

 

 

104

 

 

Other

 

4,352

 

 

3,844

 

 

4,371

 

 

 

8,196

 

 

7,602

 

 

Total Other Expenses

$

36,397

 

$

33,720

 

$

30,905

 

 

$

70,117

 

$

57,633

 

 

 

 

 

 

 

 

 

 

Other Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Charges on Deposit Accounts

$

2,086

 

$

1,805

 

$

1,683

 

 

$

3,891

 

$

3,250

 

 

Losses on Sales of Securities

 

(8

)

 

(31

)

 

(50

)

 

 

(39

)

 

(55

)

 

Debit Card and ATM Fee Income

 

1,657

 

 

1,501

 

 

1,777

 

 

 

3,158

 

 

3,113

 

 

Bank-Owned Life Insurance Income

 

475

 

 

369

 

 

355

 

 

 

844

 

 

673

 

 

Gain on Sales of Loans

 

186

 

 

65

 

 

10,042

 

 

 

251

 

 

10,021

 

 

Mortgage Origination Income

 

161

 

 

209

 

 

241

 

 

 

370

 

 

470

 

 

Fees and Brokerage Commission

 

1,749

 

 

1,835

 

 

1,416

 

 

 

3,584

 

 

1,959

 

 

Gain (Loss) on Sales of Other Real Estate Owned

 

10

 

 

8

 

 

(575

)

 

 

18

 

 

(529

)

 

Gain (Loss) on Disposal of Other Assets

 

-

 

 

(717

)

 

(9

)

 

 

(717

)

 

108

 

 

Pass-Through Income from SBIC Partnerships

 

52

 

 

115

 

 

1,602

 

 

 

167

 

 

1,655

 

 

Other

 

653

 

 

737

 

 

683

 

 

 

1,390

 

 

1,348

 

 

Total Other Income

$

7,021

 

$

5,896

 

$

17,165

 

 

$

12,917

 

$

22,013

 

 

 

 

 

 

 

 

 

 

(1) Non-GAAP: Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest

 

 

income less gain/loss on sales of securities.

 

 

 

 

 

 

 


Business First Bancshares, Inc.

 

Consolidated Balance Sheets

 

(Unaudited)

 

 

 

 

 

 

 

June 30,

March 31,

June 30,

 

(Dollars in thousands)

 

2022

 

 

2022

 

 

2021

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

$

154,694

 

$

282,074

 

$

130,769

 

 

Federal Funds Sold

 

10,817

 

 

67,822

 

 

232,391

 

 

Securities Available for Sale, at Fair Values

 

934,676

 

 

961,358

 

 

882,802

 

 

Loans Held for Sale

 

-

 

 

13,559

 

 

-

 

 

Mortgage Loans Held for Sale

 

170

 

 

1,354

 

 

1,834

 

 

Loans and Lease Receivable

 

4,113,726

 

 

3,748,498

 

 

2,854,886

 

 

Allowance for Loan Losses

 

(32,317

)

 

(29,245

)

 

(26,702

)

 

Net Loans and Lease Receivable

 

4,081,409

 

 

3,719,253

 

 

2,828,184

 

 

Premises and Equipment, Net

 

64,307

 

 

63,003

 

 

57,576

 

 

Accrued Interest Receivable

 

22,142

 

 

20,146

 

 

20,841

 

 

Other Equity Securities

 

30,302

 

 

23,034

 

 

14,043

 

 

Other Real Estate Owned

 

990

 

 

1,369

 

 

5,890

 

 

Cash Value of Life Insurance

 

88,370

 

 

72,896

 

 

60,703

 

 

Deferred Taxes, Net

 

29,576

 

 

23,040

 

 

4,652

 

 

Goodwill

 

88,842

 

 

89,911

 

 

60,062

 

 

Core Deposit and Customer Intangibles

 

15,093

 

 

15,617

 

 

13,271

 

 

Other Assets

 

8,995

 

 

7,799

 

 

10,941

 

 

 

 

 

 

 

Total Assets

$

5,530,383

 

$

5,362,235

 

$

4,323,959

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Deposits

 

 

 

 

Noninterest-Bearing

$

1,698,114

 

$

1,544,197

 

$

1,175,624

 

 

Interest-Bearing

 

2,960,049

 

 

3,113,541

 

 

2,548,599

 

 

Total Deposits

 

4,658,163

 

 

4,657,738

 

 

3,724,223

 

 

 

 

 

 

 

Securities Sold Under Agreements to Repurchase

 

18,477

 

 

23,345

 

 

25,837

 

 

Short-Term Borrowings

 

5,020

 

 

20

 

 

20

 

 

Subordinated Debt

 

111,055

 

 

111,209

 

 

81,427

 

 

Subordinated Debt - Trust Preferred Securities

 

5,000

 

 

5,000

 

 

5,000

 

 

Federal Home Loan Bank Borrowings

 

254,011

 

 

79,957

 

 

28,023

 

 

Accrued Interest Payable

 

708

 

 

895

 

 

1,938

 

 

Other Liabilities

 

32,490

 

 

27,234

 

 

26,485

 

 

 

 

 

 

 

Total Liabilities

 

5,084,924

 

 

4,905,398

 

 

3,892,953

 

 

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

 

 

Common Stock

 

22,579

 

 

22,565

 

 

20,741

 

 

Additional Paid-In Capital

 

346,382

 

 

345,858

 

 

299,014

 

 

Retained Earnings

 

139,232

 

 

128,168

 

 

104,382

 

 

Accumulated Other Comprehensive Income (Loss)

 

(62,734

)

 

(39,754

)

 

6,869

 

 

 

 

 

 

 

Total Shareholders' Equity

 

445,459

 

 

456,837

 

 

431,006

 

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

5,530,383

 

$

5,362,235

 

$

4,323,959

 

 


Business First Bancshares, Inc.

 

Consolidated Statements of Income

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

June 30,

March 31,

June 30,

 

June 30,

June 30,

 

(Dollars in thousands)

 

2022

 

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

Interest Income:

 

 

 

 

 

 

 

Interest and Fees on Loans

$

49,639

 

$

40,183

 

$

39,135

 

 

$

89,822

 

$

80,554

 

 

Interest and Dividends on Securities

 

4,143

 

 

3,844

 

 

3,189

 

 

 

7,987

 

 

5,991

 

 

Interest on Federal Funds Sold and Due From Banks

 

232

 

 

95

 

 

27

 

 

 

327

 

 

68

 

 

Total Interest Income

 

54,014

 

 

44,122

 

 

42,351

 

 

 

98,136

 

 

86,613

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

Interest on Deposits

 

2,557

 

 

2,263

 

 

3,235

 

 

 

4,820

 

 

6,478

 

 

Interest on Borrowings

 

1,895

 

 

1,384

 

 

1,171

 

 

 

3,279

 

 

1,889

 

 

Total Interest Expense

 

4,452

 

 

3,647

 

 

4,406

 

 

 

8,099

 

 

8,367

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

49,562

 

 

40,475

 

 

37,945

 

 

 

90,037

 

 

78,246

 

 

 

 

 

 

 

 

 

 

Provision for Loan Losses:

 

2,945

 

 

1,617

 

 

2,241

 

 

 

4,562

 

 

5,600

 

 

 

 

 

 

 

 

 

 

Net Interest Income After Provision for Loan Losses

 

46,617

 

 

38,858

 

 

35,704

 

 

 

85,475

 

 

72,646

 

 

 

 

 

 

 

 

 

 

Other Income:

 

 

 

 

 

 

 

Service Charges on Deposit Accounts

 

2,086

 

 

1,805

 

 

1,683

 

 

 

3,891

 

 

3,250

 

 

Gain (Loss) on Sales of Securities

 

(8

)

 

(31

)

 

(50

)

 

 

(39

)

 

(55

)

 

Gain on Sales of Loans

 

186

 

 

65

 

 

10,042

 

 

 

251

 

 

10,021

 

 

Other Income

 

4,757

 

 

4,057

 

 

5,490

 

 

 

8,814

 

 

8,797

 

 

Total Other Income

 

7,021

 

 

5,896

 

 

17,165

 

 

 

12,917

 

 

22,013

 

 

 

 

 

 

 

 

 

 

Other Expenses:

 

 

 

 

 

 

 

Salaries and Employee Benefits

 

21,408

 

 

19,703

 

 

16,753

 

 

 

41,111

 

 

31,679

 

 

Occupancy and Equipment Expense

 

4,914

 

 

4,413

 

 

4,264

 

 

 

9,327

 

 

7,981

 

 

Merger and Conversion-Related Expense

 

615

 

 

811

 

 

94

 

 

 

1,426

 

 

104

 

 

Other Expenses

 

9,460

 

 

8,793

 

 

9,794

 

 

 

18,253

 

 

17,869

 

 

Total Other Expenses

 

36,397

 

 

33,720

 

 

30,905

 

 

 

70,117

 

 

57,633

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes:

 

17,241

 

 

11,034

 

 

21,964

 

 

 

28,275

 

 

37,026

 

 

 

 

 

 

 

 

 

 

Provision for Income Taxes:

 

3,484

 

 

2,303

 

 

4,536

 

 

 

5,787

 

 

7,269

 

 

 

 

 

 

 

 

 

 

Net Income:

$

13,757

 

$

8,731

 

$

17,428

 

 

$

22,488

 

$

29,757

 

 


Business First Bancshares, Inc.

 

Consolidated Net Interest Margin

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

June 30, 2022

 

March 31, 2022

 

June 30, 2021

 

 

Average

 

 

 

Average

 

 

 

Average

 

 

 

 

Outstanding

Interest Earned /

Average

 

Outstanding

Interest Earned /

Average

 

Outstanding

Interest Earned /

Average

 

(Dollars in thousands)

Balance

Interest Paid

Yield / Rate

 

Balance

Interest Paid

Yield / Rate

 

Balance

Interest Paid

Yield / Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Total Loans (Excluding SBA PPP)

$

3,890,470

 

$

49,628

5.10

%

 

$

3,382,325

 

$

40,174

4.75

%

 

$

2,814,593

 

$

36,116

5.13

%

 

SBA PPP Loans

 

4,429

 

 

11

1.00

%

 

 

3,725

 

 

9

1.00

%

 

 

242,015

 

 

3,019

4.99

%

 

Securities

 

966,960

 

 

4,143

1.71

%

 

 

1,005,252

 

 

3,844

1.53

%

 

 

801,268

 

 

3,189

1.59

%

 

Interest-Bearing Deposit in Other Banks

 

122,175

 

 

232

0.76

%

 

 

221,148

 

 

95

0.17

%

 

 

62,693

 

 

27

0.17

%

 

Total Interest-Earning Assets

 

4,984,034

 

 

54,014

4.33

%

 

 

4,612,450

 

 

44,122

3.83

%

 

 

3,920,569

 

 

42,351

4.32

%

 

Allowance for Loan Losses

 

(29,945

)

 

 

 

 

(29,260

)

 

 

 

 

(26,032

)

 

 

 

Noninterest-Earning Assets

 

417,550

 

 

 

 

 

336,915

 

 

 

 

 

505,374

 

 

 

 

Total Assets

$

5,371,639

 

$

54,014

 

 

$

4,920,105

 

$

44,122

 

 

$

4,399,911

 

$

42,351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

$

2,981,613

 

$

2,557

0.34

%

 

$

2,882,838

 

$

2,263

0.31

%

 

$

2,615,241

 

$

3,235

0.49

%

 

Subordinated Debt

 

111,107

 

 

1,300

4.68

%

 

 

91,354

 

 

1,115

4.88

%

 

 

81,427

 

 

1,015

4.99