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Business First Bancshares, Inc., Announces Financial Results for Q2 2020

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  • BFST

BATON ROUGE, La., July 29, 2020 (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, 2020, including net income of $2.1 million, or $0.11 per diluted share, decreases of $4.8 million and $0.39, respectively, from the quarter ended June 30, 2019. On a non-GAAP basis, core net income for the quarter ended June 30, 2020, which excludes certain income and expenses, was $7.4 million, or $0.41 per diluted share, an increase of $748,000 and decrease of $0.07, respectively, from the quarter ended June 30, 2019. Both net income and diluted earnings per share were adversely impacted for the quarter ended June 30, 2020, by additional provision for loan losses associated with the sustained pressure on the general economy caused by the COVID-19 pandemic and acquisition-related expenses.

The second quarter was simultaneously the most challenging, and in many ways, the most rewarding period weve experienced as a company, said Jude Melville, president and CEO. We stood with our clients during an economic crisis, we consummated a transformative merger during a time of market crisis, and we took care of our people in the midst of a health crisis. I could not be prouder of our team. Well continue to do our part as our regions leading community bank as we recover together in the coming months.

On July 23, 2020, Business Firsts board of directors declared a quarterly dividend based upon financial performance for the second quarter in the amount of $0.10 per share, same as the prior quarter, to the common shareholders of record as of August 15, 2020. The dividend will be paid on August 31, 2020, or as soon thereafter as practicable.

Quarterly Highlights

  • Successful Acquisition and Conversion of Pedestal Bancshares Inc. Business First acquired Pedestal Bancshares Inc. (Pedestal), with approximately $1.4 billion in assets, $935.8 million in gross loans, and $1.2 billion in deposits, on May 1, 2020. The conversion of data processing was successfully completed during the weekend of May 23, 2020.

  • COVID-19 Related Matters. Business First proactively assisted, and continues to assist, customers by deferring principal and/or interest payments on approximately 2,600 loans with an outstanding balance of $938.5 million as of June 30, 2020.  Approximately $223.0 million of the deferrals were interest-only as of June 30, 2020.  Additionally, Business First has funded approximately 2,800 loans with an aggregate outstanding balance of $395.4 million under the Small Business Administration (SBA) Paycheck Protection Program (PPP), of which $86.1 million were acquired in the Pedestal acquisition. Business First also recorded $5.4 million of provision expense, of which a significant portion was associated with the continued impact the COVID-19 pandemic caused on the general economy.

  • Stable Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from 0.57% and 0.59%, respectively, at March 31, 2020, to 0.39% and 0.49% at June 30, 2020. The decreases were attributable to the increased size of the loan portfolio, including SBA PPP loans, and total assets associated with the acquisition of Pedestal on May 1, 2020.   

  • Net Interest Margin and Spread. Net interest margin and spread were negatively impacted due to the full effect of the federal funds rate cuts of 150 basis points during the month of March and lower-yielding SBA PPP loans, offset by a reduction in cost of funds, increased loan discount, deposit premium, and Federal Home Loan Bank (FHLB) premium accretion, and a higher-yielding loan portfolio due to the Pedestal acquisition, compared to the quarter ended March 31, 2020. Net interest margin and net interest spread were 3.89% and 3.59%, respectively, for the quarter ended June 30, 2020, compared to 3.93% and 3.55% for the quarter ended March 31, 2020. Excluding loan discount accretion, net interest margin and spread were 3.71% and 3.41%, respectively, for the quarter ended June 30, 2020, compared to 3.88% and 3.49% for the quarter ended March 31, 2020. 

  • Loan Growth. Total loans held for investment at June 30, 2020, were $3.0 billion, an increase of $1.2 billion compared to March 31, 2020. Loan growth was significantly impacted by the acquisition of Pedestal and origination of SBA PPP loans.  Net organic loan growth, excluding the Pedestal acquisition and SBA PPP originated loans, was 3.22% annualized for the quarter ended June 30, 2020.

Financial Condition

June 30, 2020, Compared to March 31, 2020

Loans

Total loans held for investment increased by $1.2 billion compared to March 31, 2020. The increase was largely attributable to the $893.3 million in net loans acquired from Pedestal, including $86.1 million of SBA PPP loans, and $309.3 million of SBA PPP loans originated by Business First. Excluding the Pedestal acquisition and SBA PPP originations, net organic loan growth was $20.8 million for the quarter ended June 30, 2020, or 3.22% annualized.

Consistent with the quarter ended March 31, 2020, Business Firsts unfunded commitments remained constant throughout the quarter ended June 30, 2020, excluding the increase attributable to the acquisition of Pedestal. Business First has not identified any unusual customer usage of unfunded commitments since the beginning of the COVID 19-panademic in March 2020.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 0.57% as of March 31, 2020, to 0.39% as of June 30, 2020. Nonperforming assets as a percentage of total assets decreased from 0.59% as of March 31, 2020, to 0.49% as of June 30, 2020. The decreases were attributable to an increase in overall total loans held for investment and total assets from the acquisition of Pedestal during the quarter ended June 30, 2020.

Total Shareholders Equity

Book value per common share was $18.69 at June 30, 2020, compared to $21.58 at March 31, 2020. The decreases were attributable to the initial book value dilution caused by the acquisition of Pedestal during the quarter ended June 30, 2020.

June 30, 2020, Compared to June 30, 2019

Loans

Total loans held for investment increased by $1.4 billion compared to June 30, 2019, or 82.3%, due primarily to the acquisition of Pedestal and origination of SBA PPP loans during the quarter ended June 30, 2020.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 0.61% as of June 30, 2019, to 0.39% as of June 30, 2020. Nonperforming assets as a percentage of total assets decreased from 0.58% as of June 30, 2019, to 0.49% as of June 30, 2020. The decreases were attributable to an increase in overall total loans held for investment and total assets from the acquisition of Pedestal during the quarter ended June 30, 2020.

Total Shareholders Equity

Book value per common share was $18.69 at June 30, 2020, compared to $20.77 at June 30, 2019. The decreases were attributable to the initial book value dilution caused by the acquisition of Pedestal during the quarter ended June 30, 2020.

Results of Operations

Second Quarter 2020 Compared to First Quarter 2020

Net Income and Diluted Earnings Per Share

For the quarter ended June 30, 2020, net income was $2.1 million, or $0.11 per diluted share, compared to net income of $4.5 million, or $0.34 per diluted share, for the quarter ended March 31, 2020. The decreases were largely attributable to the increase in the provision for loan losses, due to the COVID-19 pandemics sustained impact on the general economy, and increase in acquisition-related expenses, offset by increases in investment income from Small Business Investment Companies (SBICs) and interest income from SBA PPP loans.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2020, was $7.4 million, or $0.41 per diluted share, compared to core net income of $5.0 million, or $0.37 per diluted share, for the quarter ended March 31, 2020. Notable events impacting earnings for the quarter ended June 30, 2020, included the incurrence of $6.6 million in acquisition-related expenses, compared to the incurrence of $1.2 million in acquisition-related expenses for the quarter ended March 31, 2020, and $530,000 reduction in income tax expense due to stock option exercises.

Interest Income

For the quarter ended June 30, 2020, net interest income totaled $30.9 million and net interest margin and net interest spread were 3.89% and 3.59%, respectively, compared to $20.2 million, 3.93% and 3.55% for the quarter ended March 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.61% for the quarter ended June 30, 2020, compared to 5.55% for the quarter ended March 31, 2020. The average yield on total interest-earning assets was 4.65% for the quarter ended June 30, 2020, compared to 5.06% for the quarter ended March 31, 2020.  

Net interest margin and net interest spread were positively impacted for the quarter ended June 30, 2020, by additional loan discount, deposit premium, and FHLB premium accretion, an overall higher-yielding loan portfolio from the Pedestal acquisition, and reduction in the overall cost of funds (which includes noninterest-bearing deposits), offset by the full impact of the federal funds rate cuts of 150 basis points during March 2020. The average loan yield (excluding SBA PPP loans) was also impacted by the same factors, excluding the impact of deposit and FHLB premium accretion and cost of funds.

The average yield on total interest-earning assets was negatively impacted for the quarter ended June 30, 2020, due to lower-yielding SBA PPP loans which were originated during the quarter.

Net interest margin and net interest spread (excluding loan discount accretion of $1.5 million) were 3.71% and 3.41%, respectively, for the quarter ended June 30, 2020, compared to 3.88% and 3.49% (excluding loan discount accretion of $290,000) for the quarter ended March 31, 2020.

Interest Expense

For the quarter ended June 30, 2020, overall cost of funds (which includes noninterest-bearing deposits) decreased by 43 basis points, from 1.20% to 0.77%, compared to the quarter ended March 31, 2020. The decrease in cost of funds was partially attributable to the accretion of deposit premium and FHLB premium associated with the Pedestal acquisition ($551,000), but largely attributable to an overall reduction in interest rates on deposit offerings and the lower-yielding deposit portfolio acquired from Pedestal.

Other Income

For the quarter ended June 30, 2020, other income was impacted by an additional $1.2 million in SBIC investment income and additional increases in other categories largely attributable to the Pedestal acquisition, compared to the quarter ended March 31, 2020.

Other Expense

For the quarter ended June 30, 2020, the increases were largely attributable to the Pedestal acquisition, compared to the quarter ended March 31, 2020.

Provision for Loan Losses

During the quarter ended June 30, 2020, Business First recorded a provision for loan losses of $5.4 million, compared to $1.4 million for the quarter ended March 31, 2020. The reserve for the quarter ended June 30, 2020, was impacted significantly by the sustained impact on the general economy of the COVID-19 pandemic.  The increase related to the COVID-19 pandemic was recorded through a qualitative adjustment. 

Return on Assets and Equity

Return on average assets and equity, each on an annualized basis, were 0.23% and 2.35%, respectively, for the quarter ended June 30, 2020, compared to 0.80% and 6.31%, respectively, for the quarter ended March 31, 2020. Both returns were significantly impacted by the provision for loan loss and acquisition-related expenses recorded for the quarter ended June 30, 2020.

Second Quarter 2020 Compared to Second Quarter 2019

Net Income and Diluted Earnings Per Share

For the quarter ended June 30, 2020, net income was $2.1 million, or $0.11 per diluted share, compared to net income of $6.8 million, or $0.50 per diluted share, for the quarter ended June 30, 2020. The decreases in net income and diluted earnings per share were largely attributable to increased provision for loan losses and additional expenses associated with the acquisition of Pedestal on May 1, 2020, offset by increases in net interest income and other income related to the acquisition of Pedestal for the quarter ended June 30, 2020.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2020, was $7.4 million, or $0.41 per diluted share, compared to core net income of $6.6 million, or $0.48 per diluted share, for the quarter ended June 30, 2019. Notable events impacting earnings for the quarter ended June 30, 2020, included the incurrence of $6.6 million in acquisition-related expenses, compared to the incurrence of $436,000 in acquisition-related expenses and a $593,000 gain associated with the sale of a banking center for the quarter ended June 30, 2019.

Interest Income

For the quarter ended June 30, 2020, net interest income totaled $30.9 million and net interest margin and net interest spread were 3.89% and 3.59%, respectively, compared to $20.2 million, 4.19% and 3.75% for the quarter ended June 30, 2019. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.61% for the quarter ended June 30, 2020, compared to 5.96% for the quarter ended June 30, 2019. The average yield on total interest-earning assets was 4.65% for the quarter ended June 30, 2020, compared to 5.37% for the quarter ended June 30, 2019.

Average loan yield (excluding SBA PPP loans), average yield on total interest-earning assets, net interest margin, and net interest spread were impacted for the quarter ended June 30, 2020, by the federal funds rate cuts of 225 basis points which occurred throughout the second half of 2019 and first quarter of 2020. The average yield on total interest-earning assets was also impacted by the lower-yielding SBA PPP loans originated during the quarter ended June 30, 2020.

Net interest margin and net interest spread (excluding loan discount accretion of $1.5 million) were 3.71% and 3.41%, respectively, for the quarter ended June 30, 2020, compared to 4.02% and 3.58% (excluding loan discount accretion of $826,000) for the quarter ended June 30, 2019.

Interest Expense

For the quarter ended June 30, 2020, overall cost of funds (which includes noninterest-bearing deposits) decreased by 49 basis point, from 1.26% to 0.77%, compared to the quarter ended June 30, 2019. The decrease in cost of funds was partially attributable to the accretion of deposit and FHLB premiums associated with the Pedestal acquisition ($551,000), but largely attributable to an overall reduction in interest rates on deposit offerings and the lower-yielding deposit portfolio acquired from Pedestal.

Other Income

For the quarter ended June 30, 2020, the increase was largely attributable to the acquisition of Pedestal, partially offset by the $593,000 gain on sale of a banking center during the quarter ended June 30, 2019.

Other Expense

For the quarter ended June 30, 2020, the increase was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020.

Provision for Loan Losses

During the quarter ended June 30, 2020, Business First recorded a provision for loan losses of $5.4 million compared to $1.3 million for the quarter ended June 30, 2019. The reserve for the quarter ended June 30, 2020, was impacted significantly by the sustained impact on the general economy of the COVID-19 pandemic. 

Return on Assets and Equity

Return on average assets and return on average equity, each on an annualized basis, were 0.23% and 2.35%, respectively, for the quarter ended June 30, 2020, from 1.30% and 10.13%, respectively, for the quarter ended June 30, 2019. Both returns were significantly impacted by the provision for loan loss and acquisition-related expenses recorded for the quarter ended June 30, 2020, in addition to a lower net interest margin for the quarter ended June 30, 2020.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., through its banking subsidiary b1BANK, formerly known as Business First Bank, operates 48 banking centers in markets across Louisiana and in the Dallas, Texas area. b1BANK provides commercial and personal banking, treasury management and wealth solutions services to small to midsize businesses and their owners and employees. Visit www.b1BANK.com for more information. Business Firsts common stock is traded on the NASDAQ Global Select Market under the symbol BFST.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures (e.g., referenced as core) intended to supplement, not substitute for, comparable GAAP measures. These measures typically adjust income available to common shareholders for certain significant activities or transactions that, in managements opinion, can distort period-to-period comparisons of Business Firsts performance. Transactions that are typically excluded from non-GAAP measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, impaired loan sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). 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 the Companys 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. Actual results will also be significantly impacted by the effects of the ongoing COVID-19 pandemic, including, among other effects: the impact of the public health crisis; the extent and duration of closures of businesses, including our branches, vendors and customers; the operation of financial markets; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; the adequacy of our allowance for loan losses in relation to potential losses in our loan portfolio; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. 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 on Business First, you may obtain Business Firsts reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SECs EDGAR service on the SECs 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 the Company. 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)

 

 

 

 

 

 

 

June 30,

March 31,

June 30,

 

(Dollars in thousands)

 

2020

 

 

2020

 

 

2019

 

 

 

 

 

 

 

Balance Sheet Ratios

 

 

 

 

 

 

 

 

 

Loans (HFI) to Deposits

 

92.12%

 

 

98.26%

 

 

96.46%

 

 

Shareholders' Equity to Assets Ratio

 

9.75%

 

 

12.33%

 

 

12.88%

 

 

 

 

 

 

 

Loans Receivable Held for Investment

 

 

 

 

 

 

 

 

 

Commercial (1)

$

1,026,596

 

$

431,992

 

$

411,256

 

 

Real Estate:

 

 

 

 

Construction and Land

 

333,675

 

 

260,836

 

 

227,102

 

 

Farmland

 

57,498

 

 

53,900

 

 

47,245

 

 

1-4 Family Residential

 

495,827

 

 

295,876

 

 

278,610

 

 

Multi-Family Residential

 

59,213

 

 

32,859

 

 

38,698

 

 

Nonfarm Nonresidential

 

914,601

 

 

623,114

 

 

561,149

 

 

Total Real Estate

 

1,860,814

 

 

1,266,585

 

 

1,152,804

 

 

Consumer (1)

 

107,402

 

 

72,803

 

 

78,513

 

 

Total Loans

$

2,994,812

 

$

1,771,380

 

$

1,642,573

 

 

 

 

 

 

 

Allowance for Loan Losses

 

 

 

 

 

 

 

 

 

Balance, Beginning of Period

$

13,319

 

$

12,124

 

$

11,818

 

 

Charge-offs Quarterly

 

(98

)

 

(194

)

 

(1,565

)

 

Recoveries Quarterly

 

51

 

 

22

 

 

48

 

 

Provision for Loan Losses Quarterly

 

5,443

 

 

1,367

 

 

1,302

 

 

Balance, End of Period

$

18,715

 

$

13,319

 

$

11,603

 

 

 

 

 

 

 

Allowance for Loan Losses to Total Loans (HFI)

 

0.62%

 

 

0.75%

 

 

0.71%

 

 

Net Charge-offs (Recoveries) to Average Total Loans

 

0.00%

 

 

0.01%

 

 

0.09%

 

 

 

 

 

 

 

Remaining Loan Purchase Discount

$

44,302

 

$

3,246

 

$

3,536

 

 

 

 

 

 

 

Nonperforming Assets

 

 

 

 

 

 

 

 

 

Nonperforming Loans:

 

 

 

 

Nonaccrual Loans (2)

$

11,433

 

$

9,301

 

$

9,363

 

 

Loans Past Due 90 Days or More (2)

 

317

 

 

834

 

 

727

 

 

Total Nonperforming Loans

 

11,750

 

 

10,135

 

 

10,090

 

 

Other Nonperforming Assets:

 

 

 

 

Other Real Estate Owned

 

7,642

 

 

3,281

 

 

2,324

 

 

Other Nonperforming Assets

 

179

 

 

11

 

 

6

 

 

Total Other Nonperforming Assets

 

7,821

 

 

3,292

 

 

2,330

 

 

Total Nonperforming Assets

$

19,571

 

$

13,427

 

$

12,420

 

 

 

 

 

 

 

Nonperforming Loans to Total Loans (HFI)

 

0.39%

 

 

0.57%

 

 

0.61%

 

 

Nonperforming Assets to Total Assets

 

0.49%

 

 

0.59%

 

 

0.58%

 

 

 

 

 

 

 

(1) Small Business Administration "SBA" Paycheck Protection Program "PPP" loans accounted for $389.9 million and $5.5 million of the Commercial and Consumer portfolios, respectively, as of June 30, 2020.

 

 

 

 

 

(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)

 

2020

 

 

2020

 

 

2019

 

 

 

2020

 

 

2019

 

 

 

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings per Common Share

$

0.11

 

$

0.34

 

$

0.51

 

 

$

0.42

 

$

0.94

 

 

Diluted Earnings per Common Share

 

0.11

 

 

0.34

 

 

0.50

 

 

 

0.42

 

 

0.91

 

 

Dividends per Common Share

 

0.10

 

 

0.10

 

 

0.10

 

 

 

0.20

 

 

0.18

 

 

Book Value per Common Share

 

18.69

 

 

21.58

 

 

20.77

 

 

 

18.69

 

 

20.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Common Shares Outstanding

 

18,108,068

 

 

13,313,154

 

 

13,361,482

 

 

 

15,710,611

 

 

13,324,725

 

 

Average Diluted Shares Outstanding

 

18,121,958

 

 

13,367,276

 

 

13,740,937

 

 

 

15,776,376

 

 

13,704,180

 

 

End of Period Common Shares Outstanding

 

20,667,237

 

 

13,067,987

 

 

13,361,482

 

 

 

20,667,237

 

 

13,361,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Assets

 

0.23%

 

 

0.80%

 

 

1.30%

 

 

 

0.46%

 

 

1.20%

 

 

Return on Average Equity

 

2.35%

 

 

6.31%

 

 

10.13%

 

 

 

4.13%

 

 

9.38%

 

 

Net Interest Margin

 

3.89%

 

 

3.93%

 

 

4.19%

 

 

 

3.91%

 

 

4.11%

 

 

Net Interest Spread

 

3.59%

 

 

3.55%

 

 

3.75%

 

 

 

3.57%

 

 

3.69%

 

 

Efficiency Ratio (1)

 

77.40%

 

 

72.39%

 

 

59.85%

 

 

 

75.44%

 

 

61.96%

 

 

 

 

 

 

 

 

 

 

Total Quarterly/Year-to-Date Average Assets

$

3,496,074

 

$

2,244,584

 

$

2,102,692

 

 

$

2,870,329

 

$

2,089,188

 

 

Total Quarterly/Year-to-Date Average Equity

 

349,634

 

 

285,338

 

$

270,262

 

 

 

317,486

 

 

266,493

 

 

 

 

 

 

 

 

 

 

Other Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Employee Benefits

$

17,621

 

$

9,435

 

$

8,756

 

 

$

27,056

 

$

17,308

 

 

Occupancy and Bank Premises

 

1,370

 

 

1,060

 

 

1,079

 

 

 

2,430

 

 

2,182

 

 

Depreciation and Amortization

 

1,073

 

 

601

 

 

633

 

 

 

1,674

 

 

1,261

 

 

Data Processing

 

1,055

 

 

652

 

 

576

 

 

 

1,707

 

 

1,192

 

 

FDIC Assessment Fees

 

272

 

 

147

 

 

248

 

 

 

419

 

 

398

 

 

Legal and Other Professional Fees

 

543

 

 

394

 

 

353

 

 

 

937

 

 

671

 

 

Advertising and Promotions

 

334

 

 

306

 

 

279

 

 

 

640

 

 

606

 

 

Utilities and Communications

 

645

 

 

317

 

 

323

 

 

 

962

 

 

621

 

 

Ad Valorem Shares Tax

 

450

 

 

375

 

 

345

 

 

 

825

 

 

690

 

 

Directors' Fees

 

100

 

 

74

 

 

125

 

 

 

174

 

 

330

 

 

Other Real Estate Owned Expenses and Write-Downs

 

51

 

 

253

 

 

72

 

 

 

304

 

 

99

 

 

Merger and Conversion-Related Expenses

 

1,726

 

 

1,148

 

 

235

 

 

 

2,874

 

 

(19

)

 

Other

 

2,557

 

 

1,881

 

 

1,553

 

 

 

4,438

 

 

3,028

 

 

Total Other Expenses

$

27,797

 

$

16,643

 

$

14,577

 

 

$

44,440

 

$

28,367

 

 

 

 

 

 

 

 

 

 

Other Income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Charges on Deposit Accounts

$

1,163

 

$

931

 

$

1,034

 

 

 

 

2,094

 

$

1,972

 

 

Gain on Sales of Securities

 

-

 

 

25

 

 

58

 

 

 

 

25

 

 

58

 

 

Debit card and ATM Fee Income

 

959

 

 

407

 

 

492

 

 

 

1,366

 

 

937

 

 

Bank-Owned Life Insurance Income

 

255

 

 

197

 

 

174

 

 

 

452

 

 

342

 

 

Gain on Sales of Loans

 

7

 

 

177

 

 

91

 

 

 

184

 

 

91

 

 

Mortgage Origination Income

 

126

 

 

115

 

 

98

 

 

 

241

 

 

188

 

 

Brokerage Commission

 

236

 

 

20

 

 

9

 

 

 

256

 

 

43

 

 

Correspondent Bank Income

 

32

 

 

109

 

 

17

 

 

 

141

 

 

225

 

 

Rental Income

 

15

 

 

31

 

 

165

 

 

 

46

 

 

329

 

 

Gain on Sale of Banking Center

 

-

 

 

-

 

 

593

 

 

 

-

 

 

593

 

 

Gain (loss) on Sales of Other Real Estate Owned

 

(19

)

 

151

 

 

5

 

 

 

132

 

 

(51

)

 

Pass-through Income from SBIC Partnerships

 

1,624

 

 

380

 

 

1,266

 

 

 

2,004

 

 

1,266

 

 

Other

 

598

 

 

261

 

 

217

 

 

 

859

 

 

537

 

 

 Total Other Income

$

4,996

 

$

2,804

 

$

4,219

 

 

$

7,800

 

$

6,530

 

 

 

 

 

 

 

 

 

 

(1) 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)

 

2020

 

 

2020

 

 

2019

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

Cash and Due From Banks

$

116,021

 

$

80,109

 

$

64,043

 

 

Federal Funds Sold

 

40,329

 

 

29,135

 

 

20,809

 

 

Securities Available for Sale, at Fair Values

 

583,118

 

 

275,115

 

 

294,981

 

 

Mortgage Loans Held for Sale

 

456

 

 

868

 

 

443

 

 

Loans and Lease Receivable

 

2,994,812

 

 

1,771,380

 

 

1,642,573

 

 

Allowance for Loan Losses

 

(18,715

)

 

(13,319

)

 

(11,603

)

 

Net Loans and Lease Receivable

 

2,976,097

 

 

1,758,061

 

 

1,630,970

 

 

Premises and Equipment, Net

 

63,959

 

 

29,656

 

 

27,577

 

 

Accrued Interest Receivable

 

33,844

 

 

7,724

 

 

7,957

 

 

Other Equity Securities

 

18,681

 

 

11,721

 

 

11,717

 

 

Other Real Estate Owned

 

7,642

 

 

3,281

 

 

2,324

 

 

Cash Value of Life Insurance

 

44,542

 

 

32,765

 

 

32,223

 

 

Deferred Taxes, Net

 

6,858

 

 

1,800

 

 

2,527

 

 

Goodwill

 

53,649

 

 

48,495

 

 

48,503

 

 

Core Deposit Intangible

 

10,389

 

 

6,471

 

 

7,139

 

 

Other Assets

 

5,553

 

 

2,461

 

 

2,395

 

 

 

 

 

 

 

Total Assets

$

3,961,138

 

$

2,287,662

 

$

2,153,608

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

Noninterest-Bearing

$

985,537

 

$

417,534

 

$

394,848

 

 

Interest-Bearing

 

2,265,485

 

 

1,385,274

 

 

1,308,054

 

 

Total Deposits

 

3,251,022

 

 

1,802,808

 

 

1,702,902

 

 

 

 

 

 

 

Securities Sold Under Agreements to Repurchase

 

25,391

 

 

14,728

 

 

16,096

 

 

Short-Term Borrowings

 

6,145

 

 

5,000

 

 

-

 

 

Long-Term Borrowings

 

7,797

 

 

-

 

 

-

 

 

Payroll Protection Program Liquidity Facility

 

107,076

 

 

-

 

 

-

 

 

Subordinated Debt

 

25,000

 

 

25,000

 

 

25,000

 

 

Trust Preferred Securities

 

5,000

 

 

-

 

 

-

 

 

Federal Home Loan Bank Borrowings

 

118,177

 

 

138,000

 

 

108,000

 

 

Accrued Interest Payable

 

3,920

 

 

1,573

 

 

1,924

 

 

Other Liabilities

 

25,274

 

 

18,523

 

 

22,217

 

 

 

 

 

 

 

Total Liabilities

 

3,574,802

 

 

2,005,632

 

 

1,876,139

 

 

 

 

 

 

 

Shareholders' Equity

 

 

 

 

 

 

 

 

 

Common Stock

 

20,667

 

 

13,068

 

 

13,361

 

 

Additional Paid-In Capital

 

297,606

 

 

206,966

 

 

213,823

 

 

Retained Earnings

 

59,850

 

 

59,859

 

 

48,087

 

 

Accumulated Other Comprehensive Income

 

8,213

 

 

2,137

 

 

2,198

 

 

 

 

 

 

 

Total Shareholders' Equity

 

386,336

 

 

282,030

 

 

277,469

 

 

 

 

 

 

 

Total Liabilities and Shareholders' Equity

$

3,961,138

 

$

2,287,662

 

$

2,153,608

 

 

 

 

 

 

 



 

 

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)

2020

2020

2019

 

2020

2019

 

 

 

 

 

 

 

 

 

Interest Income:

 

 

 

 

 

 

 

Interest and Fees on Loans

$

34,636

$

24,143

$

23,870

 

$

58,779

$

46,293

 

 

Interest and Dividends on Securities

 

2,175

 

1,731

 

1,829

 

 

3,906

 

3,703

 

 

Interest on Federal Funds Sold and Due From Banks

 

80

 

142

 

197

 

 

222

 

487

 

 

Total Interest Income

 

36,891

 

26,016

 

25,896

 

 

62,907

 

50,483

 

 

 

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

 

Interest on Deposits

 

4,795

 

4,686

 

5,038

 

 

9,481

 

9,795

 

 

Interest on Borrowings

 

1,177

 

1,119

 

665

 

 

2,296

 

1,375

 

 

Total Interest Expense

 

5,972

 

5,805

 

5,703

 

 

11,777

 

11,170

 

 

 

 

 

 

 

 

 

 

Net Interest Income

 

30,919

 

20,211

 

20,193

 

 

51,130

 

39,313

 

 

 

 

 

 

 

 

 

 

Provision for Loan Losses

 

5,443

 

1,367

 

1,302

 

 

6,810

 

1,935

 

 

 

 

 

 

 

 

 

 

Net Interest Income After Provision for Loan Losses

 

25,476

 

18,844

 

18,891

 

 

44,320

 

37,378

 

 

 

 

 

 

 

 

 

 

Other Income:

 

 

 

 

 

 

 

Service Charges on Deposit Accounts

 

1,163

 

931

 

1,034

 

 

2,094

 

1,972

 

 

Gain on Sales of Securities

 

-

 

25

 

58

 

 

25

 

58

 

 

Other Income

 

3,833

 

1,848

 

3,127

 

 

5,681

 

4,500

 

 

Total Other Income

 

4,996

 

2,804

 

4,219

 

 

7,800

 

6,530

 

 

 

 

 

 

 

 

 

 

Other Expenses:

 

 

 

 

 

 

 

Salaries and Employee Benefits

 

17,621

 

9,435

 

8,756

 

 

27,056

 

17,308

 

 

Occupancy and Equipment Expense

 

2,888

 

1,891

 

1,884

 

 

4,779

 

3,778

 

 

Merger and Conversion-Related Expense

 

1,726

 

1,148

 

235

 

 

2,874

 

(19

)

 

Other Expenses

 

5,562

 

4,169

 

3,702

 

 

9,731

 

7,300

 

 

Total Other Expenses

 

27,797

 

16,643

 

14,577

 

 

44,440

 

28,367

 

 

 

 

 

 

 

 

 

 

Income Before Income Taxes

 

2,675

 

5,005

 

8,533

 

 

7,680

 

15,541

 

 

 

 

 

 

 

 

 

 

Provision for Income Taxes

 

623

 

506

 

1,690

 

 

1,129

 

3,039

 

 

 

 

 

 

 

 

 

 

Net Income

$

2,052

$

4,499

$

6,843

 

$

6,551

$

12,502

 

 

 

 

 

 

 

 

 

 


 

 

Business First Bancshares, Inc.

 

Consolidated Net Interest Margin

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

June 30, 2020

 

March 31, 2020

 

June 30, 2019

 

 

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)

$

2,304,438

 

$

32,306

5.61%

 

 

$

1,740,189

 

$

24,143

5.55%

 

 

$

1,602,087

 

$

23,870

5.96%

 

 

SBA PPP Loans

 

321,127

 

 

2,330

2.90%

 

 

 

-

 

$

-

0.00%

 

 

 

-

 

 

-

0.00%

 

 

Securities Available for Sale

 

481,422

 

 

2,175

1.81%

 

 

 

286,660

 

 

1,731

2.42%

 

 

 

303,232

 

 

1,829

2.41%

 

 

Interest-Bearing Deposit in Other Banks

 

69,169

 

 

80

0.46%

 

 

 

28,754

 

 

142

1.98%

 

 

 

23,716

 

 

197

3.32%

 

 

Total Interest-Earning Assets

 

3,176,156

 

 

36,891

4.65%

 

 

 

2,055,603

 

 

26,016

5.06%

 

 

 

1,929,035

 

 

25,896

5.37%

 

 

Allowance for Loan Losses

 

(13,606

)

 

 

 

 

(12,203

)

 

 

 

 

(11,702

)

 

 

 

Noninterest-Earning Assets

 

333,524

 

 

 

 

 

201,184

 

 

 

 

 

185,359

 

 

 

 

Total Assets

$

3,496,074

 

$

36,891

 

 

$

2,244,584

 

$

26,016

 

 

$

2,102,692

 

$

25,896

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders' Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

$

1,994,680

 

$

4,795

0.96%

 

 

$

1,342,213

 

$

4,686

1.40%

 

 

$

1,335,630

 

$

5,038

1.51%

 

 

Subordinated Debt

 

25,000

 

 

422

6.75%

 

 

 

25,000

 

 

422

6.75%

 

 

 

25,000

 

 

429

6.86%

 

 

Advances from Federal Home Loan Bank ("FHLB")

 

129,441

 

 

526

1.63%

 

 

 

98,323

 

 

497

2.02%

 

 

 

36,856

 

 

224

2.43%

 

 

Payroll Protection Program Liquidity Facility ("PPPLF")

 

76,902

 

 

72

0.37%

 

 

 

-

 

 

-

0.00%

 

 

 

-

 

 

-

0.00%

 

 

Other Borrowings

 

36,308

 

 

157

1.73%

 

 

 

67,125

 

 

200

1.19%

 

 

 

14,390

 

 

12

0.33%

 

 

Total Interest-Bearing Liabilities

 

2,262,331

 

 

5,972

1.06%

 

 

 

1,532,661

 

 

5,805

1.52%

 

 

 

1,411,876

 

 

5,703...

1.62% Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits$852,608 $406,035 $396,793 Other Liabilities 31,501 20,550 23,761 Total Noninterest-Bearing Liabilities 884,109 426,585 420,554 Shareholders' Equity 349,634 285,338 270,262 Total Liabilities and Shareholders' Equity$3,496,074 $2,244,584 $2,102,692 Net Interest Spread 3.59% 3.55% 3.75% Net Interest Income $30,919 $20,211 $20,193 Net Interest Margin 3.89% 3.93% 4.19% Overall Cost of Funds 0.77% 1.20% 1.26% NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.


Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

Six Months Ended

June 30, 2020

June 30, 2019

Average

Average

Outstanding

Interest Earned /

Average

Outstanding

Interest Earned /

Average

(Dollars in thousands)

Balance

Interest Paid

Yield / Rate

Balance

Interest Paid

Yield / Rate

Assets

Interest-Earning Assets:

Total Loans (Excluding SBA PPP)

$ 2,022,313

$ 56,449

5.58%

$ 1,575,988

$ 46,293

5.87%

SBA PPP Loans

160,564

2,330

2.90%

-

-

0.00%

Securities Available for Sale

384,041

3,906

2.03%

306,501

3,703

2.42%

Interest-Bearing Deposit in Other Banks

48,962

222

0.91%

31,897

487

3.05%

Total Interest-Earning Assets

2,615,879

62,907

4.81%

1,914,386

50,483

5.27%

Allowance for Loan Losses

(12,905)

(11,546)

Noninterest-Earning Assets

267,355

186,348

Total Assets

$ 2,870,329

$ 62,907

$ 2,089,188

$ 50,483

Liabilities and Shareholders' Equity

Interest-Bearing Liabilities:

Interest-Bearing Deposits

$ 1,668,446

$ 9,481

1.14%

$ 1,335,522

$ 9,795

1.47%

Subordinated Debt

25,000

844

6.75%

25,000

845

6.76%

Advances from Federal Home Loan Bank ("FHLB")

113,882

1,023

1.80%

37,191

505

2.72%

Payroll Protection Program Liquidity Facility ("PPPLF")

38,451

72

0.37%

-

-

0.00%

Other Borrowings

51,717

357

1.38%

13,436

25

0.37%

Total Interest-Bearing Liabilities

1,897,496

11,777

1.24%

1,411,149

11,170

1.58%

Noninterest-Bearing Liabilities:

Noninterest-Bearing Deposits

629,321

395,304

Other Liabilities

26,026

16,242

Total Noninterest-Bearing Liabilities

655,347

411,546

Shareholders' Equity

317,486

266,493

Total Liabilities and Shareholders' Equity

$ 2,870,329

$ 2,089,188

Net Interest Spread

3.57%

3.69%

Net Interest Income

$ 51,130

$ 39,313

Net Interest Margin

3.91%

4.11%

Overall Cost of Funds

0.93%

1.24%

NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.


Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(Dollars in thousands, except per share data)

2020

2020

2019

2020

2019

Interest Income:

Interest income

$

36,891

$

26,016

$

25,896

$

62,907

$

50,483

Core interest income

36,891

26,016

25,896

62,907

50,483

Interest Expense:

Interest expense

5,972

5,805

5,703

11,777

11,170

Core interest expense

5,972

5,805

5,703

11,777

11,170

Provision for Loan Losses: (b)

Provision for loan losses

5,443

1,367

1,302

6,810

1,935

Core provision expense

5,443

1,367

1,302

6,810

1,935

Other Income:

Other income

4,996

2,804

4,219

7,800

6,530

Sale of impaired credit

-

-

(91

)

-

(91

)

(Gains) losses on former bank premises and equipment

-

(126

)

-

(126

)

-

(Gains) on sale of securities

-

(25

)

(58

)

(25

)

(58

)

(Gains) on sale of banking center

-

-

(593

)

-

(593

)

Core other income

4,996

2,653

3,477

7,649

5,788

Other Expense:

Other expense

27,797

16,643

14,577

44,440

28,367

Acquisition-related expenses (2)

(6,573

)

(1,212

)

(436

)

(7,785

)

(386

)

Stock option exercises - excess taxes

-

(71

)

-

(71

)

-

Core other expense

21,224

15,360

14,141

36,584

27,981

Pre-Tax Income: (a)

Pre-tax income

2,675

5,005

8,533

7,680

15,541

Sale of impaired credit

-

-

(91

)

-

(91

)

(Gains) losses on former bank premises and equipment

-

(126

)

-

(126

)

-

(Gains) on sale of securities

-

(25

)

(58

)

(25

)

(58

)

(Gains) on sale of banking center

-

-

(593

)

-

(593

)

Acquisition-related expenses (2)

6,573

1,212

436

7,785

386

Stock option exercises - excess taxes

-

71

-

71

-

Core pre-tax income

9,248

6,137

8,227

15,385

15,185

Provision for Income Taxes: (1)

Provision for income taxes

623

506

1,690

1,129

3,039

Tax on sale of impaired credit

-

-

(19

)

-

(19

)

Tax on (gains) on former bank premises and equipment

-

(26

)

-

(26

)

-

Tax on (gains) on sale of securities

-

(5

)

(12

)

(5

)

(12

)

Tax on sale of banking center

-

-

(125

)

-

(125

)

Tax on acquisition-related expenses (2)

1,275

91

91

1,366

75

Tax on stock option exercises

-

601

-

601

-

Core provision for income taxes

1,898

1,167

1,625

3,065

2,958

Net Income:

Net income

2,052

4,499

6,843

6,551

12,502

Sale of impaired credit, net of tax

-

-

(72

)

-

(72

)

(Gains) losses on former bank premises and equipment , net of tax

-

(100

)

-

(100

)

-

(Gains) on sale of securities, net of tax

-

(20

)

(46

)

(20

)

(46

)

(Gains) on sale of banking center, net of tax

-

-

(468

)

-

(468

)

Acquisition-related expenses (2), net of tax

5,298

1,121

345

6,419

311

Stock option exercises, net of tax

-

(530

)

-

(530

)

-

Core net income

$

7,350

$

4,970

$

6,602

$

12,320

$

12,227

Pre-tax, pre-provision earnings (a+b)

$

8,118

$

6,372

$

9,835

$

14,490

$

17,476

Sale of impaired credit

-

-

(91

)

-

(91

)

(Gains) losses on former bank premises and equipment

-

(126

)

-

(126

)

-

(Gains) on sale of securities

-

(25

)

(58

)

(25

)

(58

)

(Gains) on sale of banking center

-

-

(593

)

-

(593

)

Acquisition-related expenses (2)

6,573

1,212

436

7,785

386

Stock option exercises

-

71

-

71

-

Core pre-tax, pre-provision earnings

$

14,691

$

7,504

$

9,529

$

22,195

$

17,120

Average Diluted Shares Outstanding

18,121,958

13,367,276

13,740,937

15,776,376

13,704,180

Diluted Earnings Per Share:

Diluted earnings per share

$

0.11

$

0.34

$

0.50

$

0.42

$

0.91

Sale of impaired credit, net of tax

-

-

(0.01

)

-

(0.01

)

(Gains) losses on former bank premises and equipment , net of tax

-

(0.01

)

-

(0.01

)

-

(Gains) on sale of securities, net of tax

-

(0.00

)

(0.00

)

(0.00

)

(0.00

)

(Gains) on sale of banking center

-

-

(0.04

)

-

(0.03

)

Acquisition-related expenses (2), net of tax

0.30

0.08

0.03

0.40

0.02

Stock option exercises

-

(0.04

)

-

(0.03

)

-

Core diluted earnings per share

$

0.41

$

0.37

$

0.48

$

0.78

$

0.89

Pre-tax, pre-provision profit diluted earnings per share

$

0.45

$

0.48

$

0.72

$

0.92

$

1.28

Sale of impaired credit

-

-

(0.01

)

-

(0.01

)

(Gains) losses on former bank premises and equipment

-

(0.01

)

-

(0.01

)

-

(Gains) on sale of securities

-

(0.00

)

(0.00

)

(0.00

)

(0.00

)

(Gains) on sale of banking center

-

(0.05

)

-

(0.05

)

Acquisition-related expenses (2)

0.36

0.09

0.03

0.50

0.03

Stock option exercises

-

0.00

-

0.00

-

Core pre-tax, pre-provision diluted earnings per share

$

0.81

$

0.56

$

0.69

$

1.41

$

1.25

(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21% for 2020 and 2019. 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)

Three Months Ended

Six Months Ended

June 30,

March 31,

June 30,

June 30,

June 30,

(Dollars in thousands, except per share data)

2020

2020

2019

2020

2019

Total Quarterly/Year-to-Date Average Assets

$

3,496,074

$

2,244,584

$

2,102,692

$

2,870,329

$

2,089,188

Total Quarterly/Year-to-Date Average Equity

$

349,634

$

285,338

$

270,262

$

317,486

$

266,493

Net Income:

Net income

$

2,052

$

4,499

$

6,843

$

6,551

$

12,502

Sale of impaired credit, net of tax

-

-

(72

)

-

(72

)

(Gains) losses on former bank premises and equipment , net of tax

-

(100

)

-

(100

)

-

(Gains) on sale of securities, net of tax

-

(20

)

(46

)

(20

)

(46

)

(Gains) on sale of banking center, net of tax

-

-

(468

)

-

(468

)

Acquisition-related expenses (2), net of tax

5,298

1,121

345

6,419

311

Stock option exercises, net of tax

-

(530

)

-

(530

)

-

Core net income

$

7,350

$

4,970

$

6,602

$

12,320

$

12,227

Return on average assets

0.23%

0.80%

1.30%

0.46%

1.20%

Core return on average assets

0.84%

0.89%

1.26%

0.86%

1.17%

Return on equity

2.35%

6.31%

10.13%

4.13%

9.38%

Core return on average equity

8.41%

6.97%

9.77%

7.76%

9.18%

Interest Income:

Interest income

$

36,891

$

26,016

$

25,896

$

62,907

$

50,483

Core interest income

36,891

26,016

25,896

62,907

50,483

Interest Expense:

Interest expense

5,972

5,805

5,703

11,777

11,170

Core interest expense

5,972

5,805

5,703

11,777

11,170

Other Income:

Other income

4,996

2,804

4,219

7,800

6,530

Sale of impaired credit

-

-

(91

)

-

(91

)

(Gains) losses on former bank premises and equipment

-

(126

)

-

(126

)

-

(Gains) on sale of securities

-

(25

)

(58

)

(25

)

(58

)

(Gains) on sale of banking center

-

-

(593

)

-

(593

)

Core other income

4,996

2,653

3,477

7,649

5,788

Other Expense:

Other expense

27,797

16,643

14,577

44,440

28,367

Acquisition-related expenses

(6,573

)

(1,212

)

(436

)

(7,785

)

(386

)

Stock option exercises - excess taxes

-

(71

)

-

(71

)

-

Core other expense

$

21,224

$

15,360

$

14,141

$

36,584

$

27,981

Efficiency Ratio:

Other expense (a)

$

27,797

$

16,643

$

14,577

$

44,440

$

28,367

Core other expense (c)

$

21,224

$

15,360

$

14,141

$

36,584

$

27,981

Net interest and other income (1) (b)

$

35,915

$

22,990

$

24,354

$

58,905

$

45,785

Core net interest and other income (1) (d)

$

35,915

$

22,864

$

23,670

$

58,779

$

45,101

Efficiency ratio (a/b)

77.40%

72.39%

59.85%

75.44%

61.96%

Core efficiency ratio (c/d)

59.10%

67.18%

59.74%

62.24%

62.04%

Total Average Interest-Earnings Assets

$

3,176,156

$

2,055,603

$

1,929,035

$

2,615,879

$

1,914,386

Net Interest Income:

Net interest income

$

30,919

$

20,211

$

20,193

51,130

$

39,313

Loan discount accretion

(1,465

)

(290

)

(826

)

(1,755

)

(1,258

)

Net interest income excluding loan discount accretion

$

29,454

$

19,921

$

19,367

$

49,375

$

38,055

Net interest margin (2)

3.89%

3.93%

4.19%

3.91%

4.11%

Net interest margin excluding loan discount accretion (2)

3.71%

3.88%

4.02%

3.78%

3.98%

Net interest spread

3.59%

3.55%

3.75%

3.57%

3.69%

Net interest spread excluding loan discount accretion

3.41%

3.49%

3.58%

3.43%

3.56%

(1) Excludes gains/losses on sales of securities.

(2) Calculated utilizing a 30/360 day count convention.


Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

June 30,

March 31,

June 30,

(Dollars in thousands, except per share data)

2020

2020

2019

Total Shareholders' (Common) Equity:

Total shareholders' equity

$

386,336

$

282,030

$

277,469

Goodwill

(53,649

)

(48,495

)

(48,503

)

Core deposit intangible

(10,389

)

(6,471

)

(7,139

)

Total tangible common equity

$

322,298

$

227,064

$

221,827

Total Assets:

Total assets

$

3,961,138

$

2,287,662

$

2,153,608

Goodwill

(53,649

)

(48,495

)

(48,503

)

Core deposit intangible

(10,389

)

(6,471

)

(7,139

)

Total tangible assets

$

3,897,100

$

2,232,696

$

2,097,966

Common shares outstanding

20,667,237

13,067,987

13,361,482

Book value per common share

$

18.69

$

21.58

$

20.77

Tangible book value per common share

$

15.59

$

17.38

$

16.60

Common equity to total assets

9.75%

12.33%

12.88%

Tangible common equity to tangible assets

8.27%

10.17%

10.57%

Misty Albrecht

b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com