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Business First Bancshares, Inc., Announces Financial Results for Q1 2021

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BATON ROUGE, La., April 22, 2021 (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 March 31, 2021, including net income of $12.3 million, or $0.59 per diluted share, a decrease of $1.5 million and $0.08, respectively, from prior quarter ended December 31, 2020. On a non-GAAP basis, core net income for the quarter ended March 31, 2021, which excludes certain income and expenses, was $12.6 million, or $0.61 per diluted share, a decrease of $1.5 million and $0.07, respectively, from prior quarter ended December 31, 2020.

“2021 has gotten off to a fast start for b1BANK,” said Jude Melville, president and CEO. “Growth in our earnings power reflects successful integration of the significant merger we conducted in 2020, the additions to our board speak to our credibility as active participants in our community, and continued strong asset quality and stable NIM demonstrate our focus on the health of our portfolio even during a time of significant expansion. We’re especially excited about our acquisition of SSW and the capability that partnership gives us to more thoroughly serve our clients in the coming years.”

On April 22, 2021, Business First’s board of directors declared a quarterly dividend based upon financial performance for the first quarter in the amount of $0.12 per share, an increase of $0.02 from the prior quarter, to the common shareholders of record as of May 15, 2021. The dividend will be paid on May 31, 2021, or as soon thereafter as practicable.

Quarterly Highlights

  • Smith Shellnut Wilson, LLC (SSW) Acquisition. On March 22, 2021, Business First, through b1BANK, entered into a definitive agreement to acquire SSW, a registered investment advisor with approximately $3.5 billion in assets under management, specializing in managing investment portfolios for corporations, foundations and individuals. The acquisition of SSW was subsequently completed on April 1, 2021.

  • Subordinated Debt Issuance. On March 26, 2021, Business First issued $52.5 million in aggregate principal amount of its 4.250% fixed-to-floating subordinated notes due 2031. The subordinated notes were issued to certain qualified institutional buyers and institutional accredited investors in a private placement transaction that was exempt from registration under the Securities Act of 1933, as amended.

  • Corporate Actions. Business First and b1BANK appointed John Ducrest, former Commissioner of the Louisiana Office of Financial Institutions (OFI) and immediate former Commissioner of Securities for the state of Louisiana, and Drew Brees, former quarterback of the New Orleans Saints, to their respective boards of directors during the quarter ended March 31, 2021.

  • Small Business Administration (SBA) Paycheck Protection Program (PPP), Round 2. Business First has funded approximately 1,500 loans with an aggregate outstanding principal balance of $188.5 million under round 2 of the SBA PPP. Additionally, Business First will recognize approximately $8.6 million in fees associated with origination of these loans over their lives.

  • Net Interest Margin and Spread. Net interest margin decreased from 4.26% for the quarter ended December 31, 2020, to 4.23% for the quarter ended March 31, 2021, while net interest spread increased from 4.03% to 4.06% for the quarters ended December 31, 2020, and March 31, 2021, respectively. Excluding loan discount accretion, non-GAAP net interest margin and spread were 3.91% and 3.73%, respectively, for the quarter ended March 31, 2021, compared to 3.99% and 3.75% for the quarter ended December 31, 2020.

Financial Condition

March 31, 2021, Compared to December 31, 2020

Loans

Loans held for investment increased $50.6 million, or 1.69 % (6.77 % annualized), for the quarter ended March 31, 2021. The increase was largely attributable to a net increase in SBA PPP loans (round 2) within the commercial portfolio of $71.9 million. Excluding the net increase in SBA PPP loans, total loans held for investment declined for the quarter ended March 31, 2021, by (0.74) %, or (2.96) % annualized. As of March 31, 2021, SBA PPP loans with a principal balance of $385.9 million remain outstanding.

Business First has not identified any unusual customer usage of unfunded commitments since the beginning of the COVID-19 pandemic in March 2020.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment increased from 0.35% as of December 31, 2020, to 0.44% as of March 31, 2021. Nonperforming assets as a percentage of total assets increased from 0.48% as of December 31, 2020, to 0.52% as of March 31, 2021. The increase in both metrics was largely attributable to a single, energy-related loan with an outstanding balance of $1.9 million migrating to nonaccrual during the quarter ended March 31, 2021.

Cash and Securities Available for Sale

Cash, including federal funds sold, and securities available for sale increased by $137.6 million and $80.6 million, respectively, from the quarter ended December 31, 2020. The increases were largely attributable to the subordinated debt issuance on March 26, 2021, (which increased cash by approximately $41.4 million after repaying existing Business First outstanding debt), SBA PPP forgiveness reimbursements ($118.1 million), and increased municipal deposits ($85.4 million) which occurred during the quarter ended March 31, 2021.

Subordinated Debt

On March 26, 2021, Business First successfully completed a private placement of $52.5 million in aggregate principal amount of its 4.250% fixed-to-floating subordinated notes due 2031, callable by Business First beginning March 2026. The notes qualify for Tier 2 capital treatment for Business First for regulatory capital purposes.

Total Shareholders’ Equity

Book value per common share was $20.03 at March 31, 2021, compared to $19.88 at December 31, 2020. On a non-GAAP basis, tangible book value per share was $16.99 at March 31, 2021, compared to $16.80 at December 31, 2020. The increase was largely attributable to net income for the quarter less dividends distributed based on Q4 2020 performance.

March 31, 2021, Compared to March 31, 2020

Loans

Total loans held for investment increased by $1.3 billion compared to March 31, 2020, or 71.73%, due primarily to the acquisition of Pedestal and origination of SBA PPP loans.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 0.57% as of March 31, 2020, to 0.44% as of March 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.59% as of March 31, 2020, to 0.52% as of March 31, 2021. The decreases were largely attributable to an increase in overall total loans held for investment and total assets from the acquisition of Pedestal and SBA PPP activity.

Total Shareholders’ Equity

Book value per common share was $20.03 at March 31, 2021, compared to $21.58 at March 31, 2020. On a non-GAAP basis, tangible book value per share was $16.99 at March 31, 2021, compared to $17.38 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.

Results of Operations

First Quarter 2021 Compared to Fourth Quarter 2020

Net Income and Diluted Earnings Per Share

For the quarter ended March 31, 2021, net income was $12.3 million, or $0.59 per diluted share, compared to net income of $13.8 million, or $0.67 per diluted share, for the quarter ended December 31, 2020. The decreases, $1.5 million and $0.08, respectively, were largely attributable to a reduction in gain on sale of loans, primarily attributable to the $4.4 million gain recognized from sales of loans originated under the Main Street Lending Program in the quarter ended December 31, 2020, offset by decreases in other expense due to extinguishment of Federal Home Loan Bank (FHLB) borrowings, of $2.4 million, and $842,000 in interest expense.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2021, was $12.6 million, or $0.61 per diluted share, compared to core net income of $14.1 million, or $0.68 per diluted share, for the quarter ended December 31, 2020. Notable noncore events impacting earnings for the quarter ended March 31, 2021, included the incurrence of $350,000 in occupancy and bank premises expenses attributable to hurricane damage, compared to the incurrence of $568,000 in acquisition-related expenses and $158,000 in gains attributed to former bank premises and equipment in other income for the quarter ended December 31, 2020.

Interest Income

For the quarter ended March 31, 2021, net interest income totaled $40.3 million and net interest margin and net interest spread were 4.23% and 4.06%, respectively, compared to $39.6 million, 4.26% and 4.03% for the quarter ended December 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.53% for the quarter ended March 31, 2021, compared to 5.59% for the quarter ended December 31, 2020. The average yield on total interest-earning assets was 4.65% for the quarter ended March 31, 2021, compared to 4.78% for the quarter ended December 31, 2020. The reduction in interest income was largely attributable to less days and lower yields, $1.0 million less interest income attributable to non-SBA PPP loans, offset by additional accelerated recognition of SBA PPP net loan origination fees due to forgiveness, $0.7 million, for the quarter ended March 31, 2021.

Net interest margin and net interest spread were positively impacted for the quarter ended March 31, 2021, by an additional $496,000 in loan discount accretion, 5 and 6 basis points, respectively, and an additional $777,000 in SBA PPP origination fees, 8 and 9 basis points, respectively, and a reduction in the overall cost of funds (which includes noninterest-bearing deposits).

The average loan yield (excluding SBA PPP loans) was impacted by the origination of loans at lower rates than payoffs during the quarter.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $3.1 million) were 3.91% and 3.73%, respectively, for the quarter ended March 31, 2021, compared to 3.99% and 3.75% (excluding loan discount accretion of $2.6 million) for the quarter ended December 31, 2020.

Interest Expense

For the quarter ended March 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 12 basis points, from 0.53% to 0.41%, compared to the quarter ended December 31, 2020. The decrease in cost of funds was largely attributable to the continuous repricing of maturing certificates of deposit, as well as the repricing of selected non-maturity deposits, and the impact of Business First’s extinguishment of certain FHLB borrowings in December 2020.

Other Income

For the quarter ended December 31, 2020, other income was impacted by a $4.4 million increase in gain on sale of loans primarily associated with the Main Street Lending Program, which accounted for the majority of the $4.5 million decrease in other income during the quarter ended March 31, 2021.

Other Expenses

For the quarter ended December 31, 2020, other expenses were impacted by a loss on early extinguishment of FHLB borrowings, resulting in a net loss of $2.4 million, which accounted for the majority of the $2.6 million decrease in other expense during the quarter ended March 31, 2021.

Provision for Loan Losses

During the quarter ended March 31, 2021, Business First recorded a provision for loan losses of $3.4 million, compared to $2.1 million for the quarter ended December 31, 2020. The increase for the quarter ended March 31, 2021, was driven primarily by the additional reserves ($1. 4 million) required on a $1.9 million energy-related loan which was transferred to nonaccrual during the quarter, as well as additional reserves necessary on acquired loans.

Return on Assets and Equity

Return on average assets and equity, each on an annualized basis, were 1.15% and 11.86%, respectively, for the quarter ended March 31, 2021, compared to 1.37% and 13.86%, respectively, for the quarter ended December 31, 2020. Both returns were negatively impacted by lower net income for the quarter ended March 31, 2021.

First Quarter 2021 Compared to First Quarter 2020

Net Income and Diluted Earnings Per Share

For the quarter ended March 31, 2021, net income was $12.3 million, or $0.59 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 increases in net income and diluted earnings per share were largely attributable to the increases in net interest income and other income related to the acquisition of Pedestal on May 1, 2020, as well as the SBA PPP loans and lower costs of funds, offset by increases in the provision for loan losses and additional expenses associated with the acquisition of Pedestal.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2021, was $12.6 million, or $0.61 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 noncore events impacting earnings for the quarter ended March 31, 2021, included the incurrence of $350,000 in occupancy and bank premises expenses attributable to hurricane damage, compared to the incurrence of $126,000 in gains associated with the disposal of former bank premises and equipment in other income and $1.2 million in acquisition-related expenses during the quarter ended March 31, 2020.

Interest Income

For the quarter ended March 31, 2021, net interest income totaled $40.3 million and net interest margin and net interest spread were 4.23% and 4.06%, respectively, compared to 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 5.53% for the quarter ended March 31, 2021, compared to 5.55% for the quarter ended March 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was positively impacted for the quarter ended March 31, 2021, by an additional $2.8 million in loan discount accretion, which accounted for 42 basis points. The increase in interest income was largely attributable to higher average balances due to the Pedestal acquisition, origination of SBA PPP loans, and larger loan purchase discount accretion.

Average yield on total interest-earning assets, net interest margin, and net interest spread were impacted for the quarter ended March 31, 2021, by the federal funds rate cuts of 150 basis points, which occurred late in the first quarter of 2020, as well as the subsequent impacts of the COVID-19 pandemic on the yield curve.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $3.1 million) were 3.91% and 3.73%, respectively, for the quarter ended March 31, 2021, 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 March 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 79 basis points, from 1.20% to 0.41%, compared to the quarter ended March 31, 2020. The decrease in cost of funds was partially attributable to the accretion of deposit and FHLB premiums associated with the Pedestal acquisition, $715,000 or 8 basis points, and the strategic extinguishment of FHLB advances which occurred in the quarter ended December 31, 2020, but primarily 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 March 31, 2021, the increase in other income was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020, compared to the quarter ended March 31, 2020.

Other Expenses

For the quarter ended March 31, 2021, the increase in other expense was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020, compared to the quarter ended March 31, 2020.

Provision for Loan Losses

During the quarter ended March 31, 2021, Business First recorded a provision for loan losses of $3.4 million compared to $1.4 million for the quarter ended March 31, 2020. The increase for the quarter ended March 31, 2021, was impacted by the additional reserves ($1.4 million) required on a $1.9 million energy-related loan which was transferred to nonaccrual during the quarter, as well as additional reserves necessary on acquired loans.

Return on Assets and Equity

Return on average assets and return on average equity, each on an annualized basis, were 1.15% and 11.86%, respectively, for the quarter ended March 31, 2021, from 0.80% and 6.31%, respectively, for the quarter ended March 31, 2020. Both returns were positively impacted by higher net income for the quarter ended March 31, 2021.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., through its banking subsidiary b1BANK operates 43 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 First’s 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 management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP 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.). 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 Company’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. 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 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 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.

Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com


Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

March 31,

December 31,

March 31,

(Dollars in thousands)

2021

2020

2020

Balance Sheet Ratios

Loans (HFI) to Deposits

78.83

%

82.71

%

98.26

%

Shareholders' Equity to Assets Ratio

9.38

%

9.85

%

12.33

%

Loans Receivable Held for Investment

Commercial (1)

$

962,099

$

886,325

$

431,992

Real Estate:

Construction and Land

418,234

403,065

260,836

Farmland

52,861

55,883

53,900

1-4 Family Residential

460,907

468,650

295,876

Multi-Family Residential

77,390

95,707

32,859

Nonfarm Nonresidential

966,416

971,603

623,114

Total Real Estate

1,975,808

1,994,908

1,266,585

Consumer (1)

104,071

110,122

72,803

Total Loans (Held for Investment)

$

3,041,978

$

2,991,355

$

1,771,380

Allowance for Loan Losses

Balance, Beginning of Period

$

22,024

$

20,340

$

12,124

Charge-offs – Quarterly

(309

)

(715

)

(194

)

Recoveries – Quarterly

177

265

22

Provision for Loan Losses – Quarterly

3,359

2,134

1,367

Balance, End of Period

$

25,251

$

22,024

$

13,319

Allowance for Loan Losses to Total Loans (HFI)

0.83

%

0.74

%

0.75

%

Net Charge-offs (Recoveries) to Average Total Loans

0.00

%

0.01

%

0.01

%

Remaining Loan Purchase Discount

$

32,517

$

35,580

$

3,246

Nonperforming Assets

Nonperforming Loans:

Nonaccrual Loans (2)

$

11,956

$

9,063

$

9,301

Loans Past Due 90 Days or More (2)

1,479

1,523

834

Total Nonperforming Loans

13,435

10,586

10,135

Other Nonperforming Assets:

Other Real Estate Owned

8,851

9,051

3,281

Other Nonperforming Assets:

623

402

11

Total Other Nonperforming Assets

9,474

9,453

3,292

Total Nonperforming Assets

$

22,909

$

20,039

$

13,427

Nonperforming Loans to Total Loans (HFI)

0.44

%

0.35

%

0.57

%

Nonperforming Assets to Total Assets

0.52

%

0.48

%

0.59

%

(1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $385.8 million and $0.1 million of the Commercial and Consumer portfolios, respectively, as of March 31, 2021. SBA PPP loans accounted for $313.9 million and $1.6 million of the Commercial and Consumer portfolios, respectively, as of December 31, 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

March 31,

December 31,

March 31,

(Dollars in thousands, except per share data)

2021

2020

2020

Per Share Data

Basic Earnings per Common Share

$

0.60

$

0.67

$

0.34

Diluted Earnings per Common Share

0.59

0.67

$

0.34

Dividends per Common Share

0.10

0.10

0.10

Book Value per Common Share

20.03

19.88

21.58

Average Common Shares Outstanding

20,621,930

20,590,239

13,313,154

Average Diluted Shares Outstanding

20,738,013

20,726,648

13,367,276

End of Period Common Shares Outstanding

20,804,753

20,621,437

13,067,987

Annualized Performance Ratios

Return on Average Assets

1.15

%

1.37

%

0.80

%

Return on Average Equity

11.86

%

13.86

%

6.31

%

Net Interest Margin

4.23

%

4.26

%

3.93

%

Net Interest Spread

4.06

%

4.03

%

3.55

%

Efficiency Ratio (1)

59.40

%

60.27

%

72.39

%

Total Quarterly/Year-to-Date Average Assets

$

4,276,430

$

4,029,660

$

2,244,584

Total Quarterly/Year-to-Date Average Equity

415,896

399,332

285,338

Other Expenses

Salaries and Employee Benefits

$

14,926

$

14,908

$

9,435

Occupancy and Bank Premises

1,811

1,525

1,060

Depreciation and Amortization

1,593

1,338

601

Data Processing

1,823

1,967

652

FDIC Assessment Fees

509

595

147

Legal and Other Professional Fees

741

626

394

Advertising and Promotions

477

645

306

Utilities and Communications

575

617

317

Ad Valorem Shares Tax

700

850

375

Directors' Fees

188

173

74

Other Real Estate Owned Expenses and Write-Downs

379

132

253

Merger and Conversion-Related Expenses

10

548

1,148

Other

3,231

5,678

1,881

Total Other Expenses

$

26,963

$

29,602

$

16,643

Other Income

Service Charges on Deposit Accounts

$

1,567

$

1,672

$

931

Gain (Loss) on Sales of Securities

(5

)

15

25

Debit card and ATM Fee Income

1,336

1,555

407

Bank-Owned Life Insurance Income

318

251

197

Gain (Loss) on Sales of Loans

(21

)

4,413

177

Mortgage Origination Income

229

208

115

Brokerage Commission

543

433

20

Correspondent Bank Income

143

49

109

Participation Fee Income

247

114

68

Gain on Sales of Other Real Estate Owned

46

199

151

Gain on Disposal of Other Assets

117

51

14

Pass-through Income from SBIC Partnerships

53

170

380

Other

510

417

210

Total Other Income

$

5,083

$

9,547

$

2,804

(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)

March 31,

December 31,

March 31,

(Dollars in thousands)

2021

2020

2020

Assets

Cash and Due From Banks

$

355,257

$

149,131

$

80,109

Federal Funds Sold

105,595

174,152

29,135

Securities Available for Sale, at Fair Values

721,224

640,605

275,115

Mortgage Loans Held for Sale

2,298

969

868

Loans and Lease Receivable

3,041,978

2,991,355

1,771,380

Allowance for Loan Losses

(25,251

)

(22,024

)

(13,319

)

Net Loans and Lease Receivable

3,016,727

2,969,331

1,758,061

Premises and Equipment, Net

57,931

58,593

29,656

Accrued Interest Receivable

25,910

23,895

7,724

Other Equity Securities

12,584

12,693

11,721

Other Real Estate Owned

8,851

9,051

3,281

Cash Value of Life Insurance

60,348

45,030

32,765

Deferred Taxes, Net

5,536

5,858

1,800

Goodwill

53,753

53,862

48,495

Core Deposit Intangible

9,406

9,734

6,471

Other Assets

8,166

7,456

2,461

Total Assets

$

4,443,586

$

4,160,360

$

2,287,662

Liabilities

Deposits

Noninterest-Bearing

$

1,186,625

$

1,164,139

$

417,534

Interest-Bearing

2,672,109

2,452,540

1,385,274

Total Deposits

3,858,734

3,616,679

1,802,808

Securities Sold Under Agreements to Repurchase

21,419

21,825

14,728

Short-Term Borrowings

20

5,020

5,000

Long-Term Borrowings

-

6,000

-

Subordinated Debt

77,500

25,000

25,000

Subordinated Debt - Trust Preferred Securities

5,000

5,000

-

Federal Home Loan Bank Borrowings

33,073

43,145

138,000

Accrued Interest Payable

1,941

2,499

1,573

Other Liabilities

29,198

25,229

18,523

Total Liabilities

4,026,885

3,750,397

2,005,632

Shareholders' Equity

Common Stock

20,805

20,621

13,068

Additional Paid-In Capital

300,282

299,540

206,966

Retained Earnings

89,441

79,174

59,859

Accumulated Other Comprehensive Income

6,173

10,628

2,137

Total Shareholders' Equity

416,701

409,963

282,030

Total Liabilities and Shareholders' Equity

$

4,443,586

$

4,160,360

$

2,287,662


Business First Bancshares, Inc.

Consolidated Statements of Income

(Unaudited)

Three Months Ended

March 31,

December 31,

March 31,

(Dollars in thousands)

2021

2020

2020

Interest Income:

Interest and Fees on Loans

$

41,419

$

41,762

$

24,143

Interest and Dividends on Securities

2,802

2,572

1,731

Interest on Federal Funds Sold and Due From Banks

41

53

142

Total Interest Income

44,262

44,387

26,016

Interest Expense:

Interest on Deposits

3,243

3,736

4,686

Interest on Borrowings

718

1,067

1,119

Total Interest Expense

3,961

4,803

5,805

Net Interest Income

40,301

39,584

20,211

Provision for Loan Losses:

3,359

2,134

1,367

Net Interest Income After Provision for Loan Losses

36,942

37,450

18,844

Other Income:

Service Charges on Deposit Accounts

1,567

1,672

931

Gain (Loss) on Sales of Securities

(5

)

15

25

Gain (Loss) on Sales of Loans

(21

)

4,413

177

Other Income

3,542

3,447

1,671

Total Other Income

5,083

9,547

2,804

Other Expenses:

Salaries and Employee Benefits

14,926

14,908

9,435

Occupancy and Equipment Expense

3,717

3,373

1,891

Merger and Conversion-Related Expense

10

548

1,148

Other Expenses

8,310

10,773

4,169

Total Other Expenses

26,963

29,602

16,643

Income Before Income Taxes:

15,062

17,395

5,005

Provision for Income Taxes:

2,733

3,561

506

Net Income:

$

12,329

$

13,834

$

4,499


Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

Three Months Ended

March 31, 2021

December 31, 2020

March 31, 2020

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)

$

2,643,668

$

36,538

5.53

%

$

2,685,093

$

37,509

5.59

%

$

1,740,189

$

24,143

5.55

%

SBA PPP Loans

374,958

4,881

5.21

%

365,058

$

4,253

4.66

%

-

-

0.00

%

Securities Available for Sale

691,476

2,802

1.62

%

603,192

2,572

1.71

%

286,660

1,731

2.42

%

Interest-Bearing Deposit in Other Banks

101,233

41

0.16

%

61,485

53

0.34

%

28,754

142

1.98

%

Total Interest-Earning Assets

3,811,335

44,262

4.65

%

3,714,828

44,387

4.78

%

2,055,603

26,016

5.06

%

Allowance for Loan Losses

(22,709

)

(21,020

)

(12,203

)

Noninterest-Earning Assets

487,804

335,852

201,184

Total Assets

$

4,276,430

$

44,262

$

4,029,660

$

44,387

$

2,244,584

$

26,016

Liabilities and Shareholders' Equity

Interest-Bearing Liabilities:

Interest-Bearing Deposits

$

2,584,263

$

3,243

0.50

%

$

2,313,511

$

3,736

0.65

%

$

1,342,213

$

4,686

1.40

%

Subordinated Debt

28,450

459

6.45

%

25,000

422

6.75

%

25,000

422

6.75

%

Subordinated Debt - Trust Preferred Securities

5,000

42

3.36

%

5,000

42

3.36

%

-

-

0.00

%

Advances from Federal Home Loan Bank (FHLB)

37,022

111

1.20

%

105,640

407

1.54

%

98,323

497

2.02

%

Paycheck Protection Program Liquidity Facility (PPPLF)

-

-

0.00

%

79,450

70

0.35

%

-

-

0.00

%

Other Borrowings

31,696

106

1.34

%

37,605

126

1.34

%

67,125

200

1.19

%

Total Interest-Bearing Liabilities

2,686,431

3,961

0.59

%

2,566,206

4,803

0.75

%

1,532,661

5,805

1.52

%

Noninterest-Bearing Liabilities:

Noninterest-Bearing Deposits

$

1,146,950

$

1,033,593

$

406,035

Other Liabilities

27,153

30,529

20,550

Total Noninterest-Bearing Liabilities

1,174,103

1,064,122

426,585

Shareholders' Equity:

415,896

399,332

285,338

Total Liabilities and Shareholders' Equity

$

4,276,430

$

4,029,660

$

2,244,584

Net Interest Spread

4.06

%

4.03

%

3.55

%

Net Interest Income

$

40,301

$

39,584

$

20,211

Net Interest Margin

4.23

%

4.26

%

3.93

%

Overall Cost of Funds

0.41

%

0.53

%

1.20

%

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

March 31,

December 31,

March 31,

(Dollars in thousands, except per share data)

2021

2020

2020

Interest Income:

Interest income

$

44,262

$

44,387

$

26,016

Core interest income

44,262

44,387

26,016

Interest Expense:

Interest expense

3,961

4,803

5,805

Core interest expense

3,961

4,803

5,805

Provision for Loan Losses: (b)

Provision for loan losses

3,359

2,134

1,367

Core provision expense

3,359

2,134

1,367

Other Income:

Other income

5,083

9,547

2,804

(Gains) 1osses on former bank premises and equipment

-

(158

)

(126

)

(Gains) 1osses on sale of securities

5

(15

)

(25

)

Core other income

5,088

9,374

2,653

Other Expense:

Other expense

26,963

29,602

16,643

Acquisition-related expenses (2)

(10

)

(568

)

(1,212

)

Stock option exercises - excess taxes (founder's grants)

-

-

(71

)

Occupancy and bank premises - hurricane repair

(350

)

-

-

Core other expense

26,603

29,034

15,360

Pre-Tax Income: (a)

Pre-tax income

15,062

17,395

5,005

(Gains) 1osses on former bank premises and equipment

-

(158

)

(126

)

(Gains) 1osses on sale of securities

5

(15

)

(25

)

Acquisition-related expenses (2)

10

568

1,212

Stock option exercises - excess taxes (founder's grants)

-

-

71

Occupancy and bank premises - hurricane repair

350

-

-

Core pre-tax income

15,427

17,790

6,137

Provision for Income Taxes: (1)

Provision for income taxes

2,733

3,561

506

Tax on (gains) on former bank premises and equipment

-

(33

)

(26

)

Tax on (gains) on sale of securities

1

(3

)

(5

)

Tax on acquisition-related expenses (2)

2

120

91

Tax on stock option exercises (founder's grants)

-

-

602

Tax on occupancy and bank premises - hurricane repair

74

-

-

Core provision for income taxes

2,810

3,645

1,168

Net Income:

Net income

12,329

13,834

4,499

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

-

(125

)

(100

)

Losses (Gains) on sale of securities, net of tax

4

(12

)

(20

)

Acquisition-related expenses (2), net of tax

8

448

1,121

Stock option exercises, net of tax (founder's grants)

-

-

(531

)

Occupancy and bank premises - hurricane repair, net of tax

277

-

-

Core net income

$

12,618

$

14,145

$

4,969

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

$

18,421

$

19,529

$

6,372

(Gains) losses on former bank premises and equipment

-

(158

)

(126

)

(Gains) losses on sale of securities

5

(15

)

(25

)

Acquisition-related expenses (2)

10

568

1,212

Stock option exercises (founder's grants)

-

-

71

Occupancy and bank premises - hurricane repair

350

-

-

Core pre-tax, pre-provision earnings

$

18,786

$

19,924

$

7,504

Average Diluted Shares Outstanding

20,738,013

20,726,648

13,367,276

Diluted Earnings Per Share:

Diluted earnings per share

$

0.59

$

0.67

$

0.34

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

-

(0.01

)

(0.01

)

(Gains) losses on sale of securities, net of tax

0.00

(0.00

)

(0.00

)

Acquisition-related expenses (2), net of tax

0.00

0.02

0.08

Stock option exercises (founder's grants)

-

-

(0.04

)

Occupancy and bank premises - hurricane repair, net of tax

0.02

-

-

Core diluted earnings per share

$

0.61

$

0.68

$

0.37

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

$

0.89

$

0.94

$

0.48

(Gains) losses on former bank premises and equipment

-

(0.01

)

(0.01

)

(Gains) losses on sale of securities

0.00

(0.00

)

(0.00

)

Acquisition-related expenses (2)

0.00

0.03

0.09

Stock option exercises (founder's grants)

-

-

0.01

Occupancy and bank premises - hurricane repair

0.02

-

-

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

$

0.91

$

0.96

$

0.56

(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21% for 2021 and 2020. 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

March 31,

December 31,

March 31,

(Dollars in thousands, except per share data)

2021

2020

2020

Total Quarterly/Year-to-Date Average Assets

$

4,276,430

$

4,029,660

$

2,244,584

Total Quarterly/Year-to-Date Average Equity

$

415,896

$

399,332

$

285,338

Net Income:

Net income

$

12,329

$

13,834

$

4,499

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

-

(125

)

(100

)

(Gains) losses on sale of securities, net of tax

4

(12

)

(20

)

Acquisition-related expenses (2), net of tax

8

448

1,121

Stock option exercises, net of tax (founder's grants)

-

-

(531

)

Occupancy and bank premises - hurricane repair, net of tax

277

-

-

Core net income

$

12,618

$

14,145

$

4,969

Return on average assets

1.15

%

1.37

%

0.80

%

Core return on average assets

1.18

%

1.40

%

0.89

%

Return on equity

11.86

%

13.86

%

6.31

%

Core return on average equity

12.14

%

14.17

%

6.97

%

Interest Income:

Interest income

$

44,262

$

44,387

$

26,016

Core interest income

44,262

44,387

26,016

Interest Expense:

Interest expense

3,961

4,803

5,805

Core interest expense

3,961

4,803

5,805

Other Income:

Other income

5,083

9,547

2,804

(Gains) losses on former bank premises and equipment

-

(158

)

(126

)

(Gains) losses on sale of securities

5

(15

)

(25

)

Core other income

5,088

9,374

2,653

Other Expense:

Other expense

26,963

29,602

16,643

Acquisition-related expenses

(10

)

(568

)

(1,212

)

Stock option exercises - excess taxes (founder's grants)

-

-

(71

)

Occupancy and bank premises - hurricane repair

(350

)

-

-

Core other expense

$

26,603

$

29,034

$

15,360

Efficiency Ratio:

Other expense (a)

$

26,963

$

29,602

$

16,643

Core other expense (c)

$

26,603

$

29,034

$

15,360

Net interest and other income (1) (b)

$

45,389

$

49,116

$

22,990

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

$

45,389

$

48,958

$

22,864

Efficiency ratio (a/b)

59.40

%

60.27

%

72.39

%

Core efficiency ratio (c/d)

58.61

%

59.30

%

67.18

%

Total Average Interest-Earnings Assets

$

3,811,335

$

3,714,828

$

2,055,603

Net Interest Income:

Net interest income

$

40,301

$

39,584

$

20,211

Loan discount accretion

(3,063

)

(2,567

)

(290

)

Net interest income excluding loan discount accretion

$

37,238

$

37,017

$

19,921

Net interest margin (2)

4.23

%

4.26

%

3.93

%

Net interest margin excluding loan discount accretion (2)

3.91

%

3.99

%

3.88

%

Net interest spread

4.06

%

4.03

%

3.55

%

Net interest spread excluding loan discount accretion

3.73

%

3.75

%

3.49

%

(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)


March 31,

December 31,

March 31,

(Dollars in thousands, except per share data)

2021

2020

2020

Total Shareholders' (Common) Equity:

Total shareholders' equity

$

416,701

$

409,963

$

282,030

Goodwill

(53,753

)

(53,862

)

(48,495

)

Core deposit intangible

(9,406

)

(9,734

)

(6,471

)

Total tangible common equity

$

353,542

$

346,367

$

227,064

Total Assets:

Total assets

$

4,443,586

$

4,160,360

$

2,287,662

Goodwill

(53,753

)

(53,862

)

(48,495

)

Core deposit intangible

(9,406

)

(9,734

)

(6,471

)

Total tangible assets

$

4,380,427

$

4,096,764

$

2,232,696

Common shares outstanding

20,804,753

20,621,437

13,067,987

Book value per common share

$

20.03

$

19.88

$

21.58

Tangible book value per common share

$

16.99

$

16.80

$

17.38

Common equity to total assets

9.38

%

9.85

%

12.33

%

Tangible common equity to tangible assets

8.07

%

8.45

%

10.17

%