Business First Bancshares, Inc., Announces Financial Results for Q3 2020
BATON ROUGE, La., Oct. 22, 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 September 30, 2020, including net income of $9.6 million, or $0.46 per diluted share, increases of $4.1 million and $0.06, respectively, from the quarter ended September 30, 2019. On a non-GAAP basis, core net income for the quarter ended September 30, 2020, which excludes certain income and expenses, was $11.0 million, or $0.53 per diluted share, an increase of $4.7 million and increase of $0.07, respectively, from the quarter ended September 30, 2019.
In our last earning report, I said 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. but I can now say that about the third quarter. In addition to weathering the ongoing health and related economic crises, our people were impacted over the past few weeks by landfall of not one but two hurricanes. Our performance in the quarter reflects a strength and resiliency that enables us to be there for our clients, and we are as committed as ever to continuing to be that stable resource in times of both plenty and need.
On October 22, 2020, Business Firsts board of directors declared a quarterly dividend based upon financial performance for the third quarter in the amount of $0.10 per share, same as the prior quarter, to the common shareholders of record as of November 15, 2020. The dividend will be paid on November 30, 2020, or as soon thereafter as practicable.
Also, on October 22, 2020, Business Firsts board of directors terminated its existing stock repurchase program, which was set to expire December 13, 2020, and adopted a new stock repurchase program. Under the new repurchase program, Business First may repurchase shares of its common stock with an aggregate purchase price of up to $30,000,000 until the programs expiration on December 31, 2021.
Quarterly Highlights
COVID-19 and Hurricane Related Matters. Business First proactively assisted, and continues to assist (when prudent), clients by deferring principal and/or interest payments. Business First had 245 loans and 290 loans with outstanding principal balances of $184.3 million and $85.0 million within the deferral periods related to the COVID-19 pandemic and Hurricane Laura, respectively, as of September 30, 2020. Of loans remaining in the deferral period, 167 qualifying loans to seasoned, highly rated customers with an outstanding balance of $149.4 million were strategically converted to interest only.
Additionally, Business First has funded approximately 2,800 loans with an aggregate outstanding balance of $397.7 million as of September 30, 2020, under the Small Business Administration (SBA) Paycheck Protection Program (PPP).
Strong Loan Growth. Total loans held for investment at September 30, 2020, were $3.1 billion, an increase of $87.7 million compared to June 30, 2020. Net loan growth was 2.93%, or 11.71 % annualized, for the quarter ended September 30, 2020.
Stable Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets remained stable from 0.39% and 0.49%, respectively, at June 30, 2020, to 0.32% and 0.54% at September 30, 2020.
Net Interest Margin and Spread. Net interest margin and spread increased from 3.89% and 3.59%, respectively, for the quarter ended June 30, 2020, to 4.06% and 3.81% for the quarter ended September 30, 2020. The increases were largely attributable to purchase accounting accretion (loans and deposits/borrowings), an additional day in the quarter, and repricing of time deposits upon maturity. Excluding loan discount accretion, net interest margin and spread were 3.81% and 3.56%, respectively, for the quarter ended September 30, 2020, compared to 3.71% and 3.41% for the quarter ended June 30, 2020.
Financial Condition
September 3 0 , 20 20 , Compared to June 3 0 , 20 20
Loans
Total loans held for investment increased by $87.7 million compared to June 30, 2020. The increase was largely attributable to growth within the multi-family residential and nonfarm nonresidential commercial real estate portfolios. Net loan growth for the quarter ended September 30, 2020, was 2.93% for the quarter, or 11.71% annualized.
Business Firsts unfunded commitments remained constant throughout the quarter ended September 30, 2020, after increasing during the quarter ended June 30, 2020, as a result of the acquisition of Pedestal. 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 decreased from 0.39% as of June 30, 2020, to 0.32% as of September 30, 2020. The decrease was partially attributable to net loan charge-offs which totaled $866,000, or three basis points, for the quarter ended September 30, 2020. Nonperforming assets as a percentage of total assets increased from 0.49% as of June 30, 2020, to 0.54% as of September 30, 2020. The increase was largely attributable to the transfer of former branches of Pedestal and b1BANK to other real estate owned, part of the strategic plan of the acquisition.
Total Shareholders Equity
Book value per common share was $19.26 at September 30, 2020, compared to $18.69 at June 30, 2020. On a non-GAAP basis, tangible book value per share was $16.18 at September 30, 2020, compared to $15.59 at June 30, 2020.
September 3 0 , 20 20 , Compared to September 30 , 201 9
Loans
Total loans held for investment increased by $1.4 billion compared to September 30, 2019, or 81.89%, 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 0.70% as of September 30, 2019, to 0.32% as of September 30, 2020. Nonperforming assets as a percentage of total assets decreased from 0.64% as of September 30, 2019, to 0.54% as of September 30, 2020. The decreases were largely 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, as well as a decrease in nonperforming loans, offset by an increase in other real estate owned.
T otal Shareholders Equity
Book value per common share was $19.26 at September 30, 2020, compared to $21.12 at September 30, 2019. On a non-GAAP basis, tangible book value per share was $16.18 at September 30, 2020, compared to $16.96 at September 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
Third Quarter 20 20 Compared to Second Quarter 20 20
Net Income and Diluted Earnings Per Share
For the quarter ended September 30, 2020, net income was $9.6 million, or $0.46 per diluted share, compared to net income of $2.1 million, or $0.11 per diluted share, for the quarter ended June 30, 2020. The increases were largely attributable to an increase in net interest income (primarily due to a full quarter of a larger balance sheet after the Pedestal acquisition), a decrease in the provision for loan losses and lower acquisition-related expenses (which includes costs recorded within salaries and employee benefits attributed to acquisitions, such as severance, stay bonus, etc.), offset by a decrease in other income, largely attributable to a reduction in investment income from Small Business Investment Companies (SBIC).
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended September 30, 2020, was $11.0 million, or $0.53 per diluted share, compared to core net income of $7.4 million, or $0.41 per diluted share, for the quarter ended June 30, 2020. Notable noncore events impacting earnings for the quarter ended September 30, 2020, included the incurrence of $1.2 million in acquisition-related expenses and $635,000 in losses attributed to losses on former bank premises and equipment in other income, largely attributable to branches planned to be closed in contemplation of the Pedestal acquisition, compared to the incurrence of $6.6 million in acquisition-related expenses for the quarter ended June 30, 2020.
Interest Income
For the quarter ended September 30, 2020, net interest income totaled $36.9 million and net interest margin and net interest spread were 4.06% and 3.81%, respectively, compared to $30.9 million, 3.89% and 3.59% for the quarter ended June 30, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.65% for the quarter ended September 30, 2020, compared to 5.61% for the quarter ended June 30, 2020. The average yield on total interest-earning assets was 4.67% for the quarter ended September 30, 2020, compared to 4.65% for the quarter ended June 30, 2020. The increase in interest income was largely attributable to higher average balances due to the Pedestal acquisition during the quarter ended June 30, 2020.
Net interest margin and net interest spread were positively impacted for the quarter ended September 30, 2020, by additional loan discount accretion, reduction in the overall cost of funds (which includes noninterest-bearing deposits) and an additional day in the quarter, offset by yield reductions in securities and SBA PPP loans.
The average loan yield (excluding SBA PPP loans) and total interest-earning assets was also impacted by additional loan discount and an additional day in the quarter.
Net interest margin and net interest spread (excluding loan discount accretion of $2.3 million) were 3.81% and 3.56%, respectively, for the quarter ended September 30, 2020, compared to 3.71% and 3.41% (excluding loan discount accretion of $1.5 million) for the quarter ended June 30, 2020.
Interest Expense
For the quarter ended September 30, 2020, overall cost of funds (which includes noninterest-bearing deposits) decreased by 14 basis points, from 0.77% to 0.63%, compared to the quarter ended June 30, 2020. The decrease in cost of funds was largely attributable to the repricing of time deposits upon maturity.
Other Income
For the quarter ended September 30, 2020, other income was impacted by a reduction of $1.3 million in SBIC investment income, partially offset by $869,000 increases in both the service charges on deposit accounts and debit card and ATM fee income associated with a full quarterly impact of the Pedestal accounts, as well as an insurance settlement of $390,000 within other income related to a prior charged-off loan, compared to the quarter ended June 30, 2020.
Other Expense
For the quarter ended September 30, 2020, the decreases were largely attributed to reductions in salaries and employee benefits, $2.2 million, and merger and conversion-related expenses, $1.2 million, both of which resulted from elevated expenses during the quarter ended June 30, 2020, attributable to the Pedestal acquisition, partially offset by increases in various other categories which were mainly attributable to the full quarterly impact of the Pedestal acquisition, as well as an increase in our FDIC assessments, $322,000, due to increased deposits attributable to the Pedestal acquisition and SBA PPP loan program, compared to the quarter ended June 30, 2020.
P rovision for Loan Loss es
During the quarter ended September 30, 2020, Business First recorded a provision for loan losses of $2.5 million, compared to $5.4 million for the quarter ended June 30, 2020. The reserve for the quarter ended September 30, 2020, was impacted by net charge-offs of $866,000, new net loan production, and the continued impact of the qualitative factors related to COVID-19.
Return on Assets and Equity
Return on average assets and equity, each on an annualized basis, were 0.98% and 9.85%, respectively, for the quarter ended September 30, 2020, compared to 0.23% and 2.35%, respectively, for the quarter ended June 30, 2020. Both returns were significantly impacted by additional provision for loan loss and acquisition-related expenses recorded during the quarter ended June 30, 2020.
Third Quarter 20 20 Compared to Third Quarter 201 9
Net Income and Diluted Earnings Per Share
For the quarter ended September 30, 2020, net income was $9.6 million, or $0.46 per diluted share, compared to net income of $5.5 million, or $0.40 per diluted share, for the quarter ended September 30, 2019. 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, offset by increases in the provision for loan losses associated with the COVID-19 pandemic in 2020 and additional expenses associated with the acquisition of Pedestal on May 1, 2020.
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended September 30, 2020, was $11.0 million, or $0.53 per diluted share, compared to core net income of $6.3 million, or $0.46 per diluted share, for the quarter ended September 30, 2019. Notable noncore events impacting earnings for the quarter ended September 30, 2020, included the incurrence of $1.2 million in acquisition-related expenses and $635,000 in losses attributed to losses on former bank premises and equipment in other income, compared to the incurrence of $288,000 in acquisition-related expenses and $594,000 losses on former bank premises and equipment in other income for the quarter ended September 30, 2019.
Interest Income
For the quarter ended September 30, 2020, net interest income totaled $36.9 million and net interest margin and net interest spread were 4.06% and 3.81%, respectively, compared to $20.3 million, 4.10% and 3.66% for the quarter ended September 30, 2019. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.65% for the quarter ended September 30, 2020, compared to 5.87% for the quarter ended September 30, 2019. The average yield on total interest-earning assets was 4.67% for the quarter ended September 30, 2020, compared to 5.32% for the quarter ended September 30, 2019. The increase in interest income was largely attributable to higher average balances due to the Pedestal acquisition and origination of SBA PPP loans during 2020.
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 September 30, 2020, by the federal funds rate cuts of 175 basis points, which occurred during the fourth quarter of 2019 through the 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 $2.3 million) were 3.81% and 3.56%, respectively, for the quarter ended September 30, 2020, compared to 3.99% and 3.55% (excluding loan discount accretion of $544,000) for the quarter ended September 30, 2019.
Interest Expense
For the quarter ended September 30, 2020, overall cost of funds (which includes noninterest-bearing deposits) decreased by 68 basis points, from 1.31% to 0.63%, compared to the quarter ended September 30, 2019. The decrease in cost of funds was partially attributable to the accretion of deposit and Federal Home Loan Bank (FHLB) premiums associated with the Pedestal acquisition, $796,000 or 11 basis points, 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 September 30, 2020, the increase was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020.
Other Expense
For the quarter ended September 30, 2020, the increase was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020.
Provision for Loan Loss es
During the quarter ended September 30, 2020, Business First recorded a provision for loan losses of $2.5 million compared to $479,000 for the quarter ended September 30, 2019. The reserve for the quarter ended September 30, 2020, was impacted by $866,000 in net charge-offs, higher net new loan growth and the impact of the COVID-19 pandemic on the qualitative factors within the allowance for loan and lease losses.
Return on Assets and Equity
Return on average assets and return on average equity, each on an annualized basis, were 0.98% and 9.85%, respectively, for the quarter ended September 30, 2020, from 1.02% and 7.93%, respectively, for the quarter ended September 30, 2019. Both returns were significantly impacted by the provision for loan loss and acquisition-related expenses recorded for the quarter ended September 30, 2020, in addition to a lower net interest margin for the quarter ended September 30, 2020.
About Business First Bancshares, Inc.
Business First Bancshares, Inc., through its banking subsidiary b1BANK, formerly known as Business First Bank, operates 42 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.
Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com
Business First Bancshares, Inc. |
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Selected Financial Information |
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(Unaudited) |
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| September 30, | June 30, | September 30, |
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(Dollars in thousands) | 2020 | 2020 | 2019 |
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Balance Sheet Ratios |
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Loans (HFI) to Deposits |
| 95.25% |
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| 92.12% |
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| 97.77% |
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Shareholders' Equity to Assets Ratio |
| 10.07% |
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| 9.75% |
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| 12.62% |
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Loans Receivable Held for Investment |
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Commercial (1) | $ | 1,015,173 |
| $ | 1,026,596 |
| $ | 415,163 |
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Real Estate: |
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Construction and Land |
| 334,100 |
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| 333,675 |
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| 220,524 |
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Farmland |
| 56,567 |
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| 57,498 |
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| 45,809 |
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1-4 Family Residential |
| 493,344 |
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| 495,827 |
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| 281,413 |
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Multi-Family Residential |
| 99,901 |
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| 59,213 |
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| 31,448 |
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Nonfarm Nonresidential |
| 970,197 |
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| 914,601 |
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| 620,427 |
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Total Real Estate |
| 1,954,109 |
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| 1,860,814 |
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| 1,199,621 |
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Consumer (1) |
| 113,192 |
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| 107,402 |
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| 79,943 |
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Total Loans [Held for Investment] | $ | 3,082,474 |
| $ | 2,994,812 |
| $ | 1,694,727 |
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Allowance for Loan Losses |
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Balance, Beginning of Period | $ | 18,715 |
| $ | 13,319 |
| $ | 11,603 |
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Charge-offs Quarterly |
| (956 | ) |
| (98 | ) |
| (13 | ) |
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Recoveries Quarterly |
| 90 |
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| 51 |
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| 21 |
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Provision for Loan Losses Quarterly |
| 2,491 |
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| 5,443 |
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| 479 |
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Balance, End of Period | $ | 20,340 |
| $ | 18,715 |
| $ | 12,090 |
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Allowance for Loan Losses to Total Loans (HFI) |
| 0.66% |
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| 0.62% |
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| 0.71% |
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Net Charge-offs (Recoveries) to Average Total Loans |
| 0.03% |
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| 0.00% |
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| -0.00 | % |
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Remaining Loan Purchase Discount | $ | 38,207 |
| $ | 44,302 |
| $ | 4,848 |
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Nonperforming Assets |
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Nonperforming Loans: |
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Nonaccrual Loans (2) | $ | 7,988 |
| $ | 11,433 |
| $ | 11,577 |
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Loans Past Due 90 Days or More (2) |
| 1,986 |
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| 317 |
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| 277 |
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Total Nonperforming Loans |
| 9,974 |
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| 11,750 |
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| 11,854 |
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Other Nonperforming Assets: |
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Other Real Estate Owned |
| 10,994 |
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| 7,642 |
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| 2,326 |
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Other Nonperforming Assets: |
| 414 |
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| 179 |
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| 5 |
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Total Other Nonperforming Assets |
| 11,408 |
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| 7,821 |
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| 2,331 |
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Total Nonperforming Assets | $ | 21,382 |
| $ | 19,571 |
| $ | 14,185 |
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Nonperforming Loans to Total Loans (HFI) |
| 0.32% |
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| 0.39% |
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| 0.70% |
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Nonperforming Assets to Total Assets |
| 0.54% |
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| 0.49% |
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| 0.64% |
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(1) Small Business Adminstration SBA Paycheck Protection Program PPP loans accounted for $392.9 million and $4.8 million of the Commercial and Consumer portfolios, respectively, as of September 30, 2020. |
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SBA PPP loans accounted for $389.9 million and $5.5 million of the Commercial and Consumer portfolios, respectively, as of June 30, 2020. |
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(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. |
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Business First Bancshares, Inc. |
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Selected Financial Information |
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(Unaudited) |
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| Three Months Ended | Nine Months Ended |
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| September 30, | June 30, | September 30, | September 30, | September 30, |
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(Dollars in thousands, except per share data) | 2020 | 2020 | 2019 | 2020 | 2019 |
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Per Share Data |
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Basic Earnings per Common Share | $ | 0.47 |
| $ | 0.11 |
| $ | 0.41 |
| $ | 0.93 |
| $ | 1.35 |
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Diluted Earnings per Common Share |
| 0.46 |
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| 0.11 |
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| 0.40 |
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| 0.93 |
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| 1.32 |
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Dividends per Common Share |
| 0.10 |
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| 0.10 |
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| 0.10 |
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| 0.30 |
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| 0.28 |
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Book Value per Common Share |
| 19.26 |
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| 18.69 |
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| 21.12 |
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| 19.26 |
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| 21.12 |
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Average Common Shares Outstanding |
| 20,613,481 |
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| 18,108,068 |
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| 13,315,351 |
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| 17,356,830 |
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| 13,321,566 |
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Average Diluted Shares Outstanding |
| 20,704,444 |
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| 18,121,958 |
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| 13,669,370 |
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| 17,409,821 |
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| 13,675,585 |
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End of Period Common Shares Outstanding |
| 20,667,237 |
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| 20,667,237 |
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| 13,274,823 |
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| 20,667,237 |
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| 13,274,823 |
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Annualized Performance Ratios |
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Return on Average Assets |
| 0.98% |
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| 0.23% |
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| 1.02% |
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| 0.67% |
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| 1.14% |
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Return on Average Equity |
| 9.85% |
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| 2.35% |
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| 7.93% |
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| 6.30% |
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| 8.88% |
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Net Interest Margin |
| 4.06% |
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| 3.89% |
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| 4.10% |
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| 3.97% |
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| 4.10% |
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Net Interest Spread |
| 3.81% |
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| 3.59% |
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| 3.66% |
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| 3.67% |
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| 3.68% |
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Efficiency Ratio (1) |
| 65.65% |
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| 77.40% |
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| 67.16% |
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| 71.42% |
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| 63.65% |
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Total Quarterly/Year-to-Date Average Assets | $ | 3,933,631 |
| $ | 3,496,074 |
| $ | 2,156,759 |
| $ | 3,224,940 |
| $ | 2,111,717 |
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Total Quarterly/Year-to-Date Average Equity |
| 390,209 |
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| 349,634 |
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| 278,028 |
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| 341,904 |
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| 270,380 |
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Other Expenses |
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
| ||||||||||
Salaries and Employee Benefits | $ | 15,430 |
| $ | 17,621 |
| $ | 8,793 |
| $ | 42,486 |
| $ | 26,101 |
|
|
Occupancy and Bank Premises |
| 1,394 |
|
| 1,370 |
|
| 1,230 |
|
| 3,824 |
|
| 3,412 |
|
|
Depreciation and Amortization |
| 1,322 |
|
| 1,073 |
|
| 645 |
|
| 2,996 |
|
| 1,906 |
|
|
Data Processing |
| 1,832 |
|
| 1,055 |
|
| 380 |
|
| 3,539 |
|
| 1,572 |
|
|
FDIC Assessment Fees |
| 594 |
|
| 272 |
|
| (105 | ) |
| 1,013 |
|
| 293 |
|
|
Legal and Other Professional Fees |
| 555 |
|
| 543 |
|
| 346 |
|
| 1,492 |
|
| 1,017 |
|
|
Advertising and Promotions |
| 320 |
|
| 334 |
|
| 544 |
|
| 960 |
|
| 1,150 |
|
|
Utilities and Communications |
| 789 |
|
| 645 |
|
| 397 |
|
| 1,751 |
|
| 1,018 |
|
|
Ad Valorem Shares Tax |
| 673 |
|
| 450 |
|
| 345 |
|
| 1,498 |
|
| 1,035 |
|
|
Directors' Fees |
| 117 |
|
| 100 |
|
| 121 |
|
| 291 |
|
| 451 |
|
|
Other Real Estate Owned Expenses and Write-Downs |
| 171 |
|
| 51 |
|
| 19 |
|
| 475 |
|
| 118 |
|
|
Merger and Conversion-Related Expenses |
| 556 |
|
| 1,726 |
|
| 350 |
|
| 3,430 |
|
| 331 |
|
|
Other |
| 3,198 |
|
| 2,557 |
|
| 1,813 |
|
| 7,636 |
|
| 4,841 |
|
|
Total Other Expenses | $ | 26,951 |
| $ | 27,797 |
| $ | 14,878 |
| $ | 71,391 |
| $ | 43,245 |
|
|
|
|
|
|
|
|
| ||||||||||
Other Income |
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
| ||||||||||
Service Charges on Deposit Accounts | $ | 1,592 |
| $ | 1,163 |
| $ | 1,035 |
| $ | 3,686 |
| $ | 3,007 |
|
|
Gain on Sales of Securities |
| 95 |
|
| - |
|
| 26 |
|
| 120 |
|
| 84 |
|
|
Debit card and ATM Fee Income |
| 1,399 |
|
| 959 |
|
| 460 |
|
| 2,765 |
|
| 1,397 |
|
|
Bank-Owned Life Insurance Income |
| 237 |
|
| 255 |
|
| 175 |
|
| 689 |
|
| 517 |
|
|
Gain on Sales of Loans |
| - |
|
| 7 |
|
| 24 |
|
| 184 |
|
| 115 |
|
|
Mortgage Origination Income |
| 123 |
|
| 126 |
|
| 120 |
|
| 364 |
|
| 308 |
|
|
Brokerage Commission |
| 281 |
|
| 236 |
|
| 15 |
|
| 537 |
|
| 58 |
|
|
Correspondent Bank Income |
| 45 |
|
| 32 |
|
| 118 |
|
| 186 |
|
| 343 |
|
|
Rental Income |
| 14 |
|
| 15 |
|
| 159 |
|
| 60 |
|
| 488 |
|
|
Gain (loss) on Sale of Banking Center |
| - |
|
| - |
|
| (12 | ) |
| - |
|
| 581 |
|
|
Gain (loss) on Sales of Other Real Estate Owned |
| (104 | ) |
| (19 | ) |
| 78 |
|
| 28 |
|
| 27 |
|
|
Loss on Disposal of Other Assets |
| (627 | ) |
| - |
|
| (650 | ) |
| (627 | ) |
| (650 | ) |
|
Pass-through Income from SBIC Partnerships |
| 364 |
|
| 1,624 |
|
| 138 |
|
| 2,368 |
|
| 1,404 |
|
|
Other |
| 798 |
|
| 598 |
|
| 236 |
|
| 1,657 |
|
| 773 |
|
|
Total Other Income | $ | 4,217 |
| $ | 4,996 |
| $ | 1,922 |
| $ | 12,017 |
| $ | 8,452 |
|
|
|
|
|
|
|
|
| ||||||||||
(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) |
| |||||||||
|
|
|
|
| ||||||
| September 30, | June 30, | September 30, |
| ||||||
(Dollars in thousands) | 2020 | 2020 | 2019 |
| ||||||
|
|
|
|
| ||||||
Assets |
|
|
|
| ||||||
|
|
|
|
| ||||||
Cash and Due From Banks | $ | 103,894 |
| $ | 116,021 |
| $ | 63,356 |
|
|
Federal Funds Sold |
| 8,395 |
|
| 40,329 |
|
| 43,705 |
|
|
Securities Available for Sale, at Fair Values |
| 547,535 |
|
| 583,118 |
|
| 288,231 |
|
|
Mortgage Loans Held for Sale |
| 671 |
|
| 456 |
|
| 256 |
|
|
Loans and Lease Receivable |
| 3,082,474 |
|
| 2,994,812 |
|
| 1,694,727 |
|
|
Allowance for Loan Losses |
| (20,340 | ) |
| (18,715 | ) |
| (12,090 | ) |
|
Net Loans and Lease Receivable |
| 3,062,134 |
|
| 2,976,097 |
|
| 1,682,637 |
|
|
Premises and Equipment, Net |
| 59,241 |
|
| 63,959 |
|
| 27,092 |
|
|
Accrued Interest Receivable |
| 25,622 |
|
| 33,844 |
|
| 7,513 |
|
|
Other Equity Securities |
| 15,641 |
|
| 18,681 |
|
| 12,697 |
|
|
Other Real Estate Owned |
| 10,994 |
|
| 7,642 |
|
| 2,326 |
|
|
Cash Value of Life Insurance |
| 44,779 |
|
| 44,542 |
|
| 32,398 |
|
|
Deferred Taxes, Net |
| 5,829 |
|
| 6,858 |
|
| 2,674 |
|
|
Goodwill |
| 53,627 |
|
| 53,649 |
|
| 48,333 |
|
|
Core Deposit Intangible |
| 10,061 |
|
| 10,389 |
|
| 6,916 |
|
|
Other Assets |
| 6,247 |
|
| 5,553 |
|
| 2,706 |
|
|
|
|
|
|
| ||||||
Total Assets | $ | 3,954,670 |
| $ | 3,961,138 |
| $ | 2,220,840 |
|
|
|
|
|
|
| ||||||
|
|
|
|
| ||||||
Liabilities |
|
|
|
| ||||||
|
|
|
|
| ||||||
Deposits: |
|
|
|
| ||||||
Noninterest-Bearing | $ | 945,485 |
| $ | 985,537 |
| $ | 406,146 |
|
|
Interest-Bearing |
| 2,290,776 |
|
| 2,265,485 |
|
| 1,327,244 |
|
|
Total Deposits |
| 3,236,261 |
|
| 3,251,022 |
|
| 1,733,390 |
|
|
|
|
|
|
| ||||||
Securities Sold Under Agreements to Repurchase |
| 24,604 |
|
| 25,391 |
|
| 31,037 |
|
|
Short-Term Borrowings |
| 5,033 |
|
| 6,145 |
|
| - |
|
|
Long-Term Borrowings |
| 6,000 |
|
| 7,797 |
|
| - |
|
|
Paycheck Protection Program Liquidity Facility |
| 107,076 |
|
| 107,076 |
|
| - |
|
|
Subordinated Debt |
| 25,000 |
|
| 25,000 |
|
| 25,000 |
|
|
Subordinated Debt -Trust Preferred Securities |
| 5,000 |
|
| 5,000 |
|
| - |
|
|
Federal Home Loan Bank Borrowings |
| 117,950 |
|
| 118,177 |
|
| 128,000 |
|
|
Accrued Interest Payable |
| 3,621 |
|
| 3,920 |
|
| 1,837 |
|
|
Other Liabilities |
| 26,039 |
|
| 25,274 |
|
| 21,236 |
|
|
|
|
|
|
| ||||||
Total Liabilities |
| 3,556,584 |
|
| 3,574,802 |
|
| 1,940,500 |
|
|
|
|
|
|
| ||||||
Shareholders' Equity |
|
|
|
| ||||||
|
|
|
|
| ||||||
Common Stock |
| 20,667 |
|
| 20,667 |
|
| 13,275 |
|
|
Additional Paid-In Capital |
| 299,762 |
|
| 297,606 |
|
| 212,104 |
|
|
Retained Earnings |
| 67,399 |
|
| 59,850 |
|
| 52,265 |
|
|
Accumulated Other Comprehensive Income |
| 10,258 |
|
| 8,213 |
|
| 2,696 |
|
|
|
|
|
|
| ||||||
Total Shareholders' Equity |
| 398,086 |
|
| 386,336 |
|
| 280,340 |
|
|
|
|
|
|
| ||||||
Total Liabilities and Shareholders' Equity | $ | 3,954,670 |
| $ | 3,961,138 |
| $ | 2,220,840 |
|
|
Business First Bancshares, Inc. |
| |||||||||||
Consolidated Statements of Income |
| |||||||||||
(Unaudited) |
| |||||||||||
|
|
|
|
|
|
|
| |||||
|
| Three Months Ended |
| Nine Months Ended |
| |||||||
| September 30, | June 30, | September 30, |
| September 30, | September 30, |
| |||||
(Dollars in thousands) | 2020 | 2020 | 2019 |
| 2020 | 2019 |
| |||||
|
|
|
|
|
|
|
| |||||
Interest Income: |
|
|
|
|
|
|
| |||||
Interest and Fees on Loans | $ | 39,918 | $ | 34,636 | $ | 24,408 |
| $ | 98,697 | $ | 70,701 |
|
Interest and Dividends on Securities |
| 2,474 |
| 2,175 |
| 1,783 |
|
| 6,380 |
| 5,486 |
|
Interest on Federal Funds Sold and Due From Banks |
| 69 |
| 80 |
| 129 |
|
| 291 |
| 616 |
|
Total Interest Income |
| 42,461 |
| 36,891 |
| 26,320 |
|
| 105,368 |
| 76,803 |
|
|
|
|
|
|
|
|
| |||||
Interest Expense: |
|
|
|
|
|
|
| |||||
Interest on Deposits |
| 4,345 |
| 4,795 |
| 5,050 |
|
| 13,826 |
| 14,845 |
|
Interest on Borrowings |
| 1,184 |
| 1,177 |
| 1,012 |
|
| 3,480 |
| 2,387 |
|
Total Interest Expense |
| 5,529 |
| 5,972 |
| 6,062 |
|
| 17,306 |
| 17,232 |
|
|
|
|
|
|
|
|
| |||||
Net Interest Income |
| 36,932 |
| 30,919 |
| 20,258 |
|
| 88,062 |
| 59,571 |
|
|
|
|
|
|
|
|
| |||||
Provision for Loan Losses: |
| 2,491 |
| 5,443 |
| 479 |
|
| 9,301 |
| 2,414 |
|
|
|
|
|
|
|
|
| |||||
Net Interest Income After Provision for Loan Losses |
| 34,441 |
| 25,476 |
| 19,779 |
|
| 78,761 |
| 57,157 |
|
|
|
|
|
|
|
|
| |||||
Other Income: |
|
|
|
|
|
|
| |||||
Service Charges on Deposit Accounts |
| 1,592 |
| 1,163 |
| 1,035 |
|
| 3,686 |
| 3,007 |
|
Gain on Sales of Securities |
| 95 |
| - |
| 26 |
|
| 120 |
| 84 |
|
Other Income |
| 2,530 |
| 3,833 |
| 861 |
|
| 8,211 |
| 5,361 |
|
Total Other Income |
| 4,217 |
| 4,996 |
| 1,922 |
|
| 12,017 |
| 8,452 |
|
|
|
|
|
|
|
|
| |||||
Other Expenses: |
|
|
|
|
|
|
| |||||
Salaries and Employee Benefits |
| 15,430 |
| 17,621 |
| 8,793 |
|
| 42,486 |
| 26,101 |
|
Occupancy and Equipment Expense |
| 3,228 |
| 2,888 |
| 2,135 |
|
| 8,007 |
| 5,913 |
|
Merger and Conversion-Related Expense |
| 556 |
| 1,726 |
| 235 |
|
| 3,430 |
| 331 |
|
Other Expenses |
| 7,737 |
| 5,562 |
| 3,715 |
|
| 17,468 |
| 10,900 |
|
Total Other Expenses |
| 26,951 |
| 27,797 |
| 14,878 |
|
| 71,391 |
| 43,245 |
|
|
|
|
|
|
|
|
| |||||
Income Before Income Taxes: |
| 11,707 |
| 2,675 |
| 6,823 | - |
| 19,387 |
| 22,364 |
|
|
|
|
|
|
|
|
| |||||
Provision for Income Taxes: |
| 2,098 |
| 623 |
| 1,312 |
|
| 3,227 |
| 4,351 |
|
|
|
|
|
|
|
|
| |||||
Net Income: | $ | 9,609 | $ | 2,052 | $ | 5,511 |
| $ | 16,160 | $ | 18,013 |
|
Business First Bancshares, Inc. |
| |||||||||||||||||||||||
Consolidated Net Interest Margin |
| |||||||||||||||||||||||
(Unaudited) |
| |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Three Months Ended |
| ||||||||||||||||||||||
| September 30, 2020 |
| June 30, 2020 |
| September 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) | $ | 2,638,417 |
| $ | 37,250 | 5.65 | % |
| $ | 2,304,438 |
| $ | 32,306 | 5.61 | % |
| $ | 1,664,283 |
| $ | 24,408 | 5.87 | % |
|
SBA PPP Loans |
| 399,366 |
|
| 2,668 | 2.67 | % |
|
| 321,127 |
| $ | 2,330 | 2.90 | % |
|
| - |
|
| - | 0.00 | % |
|
Securities Available for Sale |
| 564,630 |
|
| 2,474 | 1.75 | % |
|
| 481,422 |
|
| 2,175 | 1.81 | % |
|
| 297,121 |
|
| 1,783 | 2.40 | % |
|
Interest-Bearing Deposit in Other Banks |
| 33,970 |
|
| 69 | 0.81 | % |
|
| 69,169 |
|
| 80 | 0.46 | % |
|
| 16,070 |
|
| 129 | 3.21 | % |
|
Total Interest-Earning Assets |
| 3,636,383 |
|
| 42,461 | 4.67 | % |
|
| 3,176,156 |
|
| 36,891 | 4.65 | % |
|
| 1,977,474 |
|
| 26,320 | 5.32 | % |
|
Allowance for Loan Losses |
| (19,329 | ) |
|
|
|
| (13,606 | ) |
|
|
|
| (11,783 | ) |
|
|
| ||||||
Noninterest-Earning Assets |
| 316,577 |
|
|
|
|
| 333,524 |
|
|
|
|
| 191,068 |
|
|
|
| ||||||
Total Assets | $ | 3,933,631 |
| $ | 42,461 |
|
| $ | 3,496,074 |
| $ | 36,891 |
|
| $ | 2,156,759 |
| $ | 26,320 |
|
| |||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Interest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Interest-Bearing Deposits | $ | 2,262,774 |
| $ | 4,345 | 0.77 | % |
| $ | 1,994,680 |
| $ | 4,795 | 0.96 | % |
| $ | 1,300,740 |
| $ | 5,050 | 1.55 | % |
|
Subordinated Debt |
| 25,000 |
|
| 422 | 6.75 | % |
|
| 25,000 |
|
| 422 | 6.75 | % |
|
| 25,000 |
|
| 422 | 6.75 | % |
|
Subordinated Debt - Trust Preferred Securities |
| 5,000 |
|
| 45 | 3.60 | % |
|
| 3,333 |
|
| 34 | 4.08 | % |
|
| - |
|
| - | 0.00 | % |
|
Advances from Federal Home Loan Bank (FHLB) |
| 122,592 |
|
| 515 | 1.68 | % |
|
| 129,441 |
|
| 526 | 1.63 | % |
|
| 105,588 |
|
| 560 | 2.12 | % |
|
Paycheck Protection Program Liquidity Facility (PPPLF) |
| 107,076 |
|
| 95 | 0.35 | % |
|
| 76,902 |
|
| 72 | 0.37 | % |
|
| - |
|
| - | 0.00 | % |
|
Other Borrowings |
| 35,437 |
|
| 107 | 1.21 | % |
|
| 32,975 |
|
| 123 | 1.49 | % |
|
| 23,718 |
|
| 30 | 0.51 | % |
|
Total Interest-Bearing Liabilities |
| 2,557,879 |
|
| 5,529 | 0.86 | % |
|
| 2,262,331 |
|
| 5,972 | 1.06 | % |
|
| 1,455,046 |
|
| 6,062 | 1.67 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Noninterest-Bearing Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
Noninterest-Bearing Deposits | $ | 957,090 |
|
|
|
| $ | 852,608 |
|
|
|
|
| 398,748 |
|
|
|
| ||||||
Other Liabilities |
| 28,453 |
|
|
|
|
| 31,501 |
|
|
|
|
| 24,937 |
|
|
|
| ||||||
Total Noninterest-Bearing Liabilities |
| 985,543 |
|
|
|
|
| 884,109 |
|
|
|
|
| 423,685 |
|
|
|
| ||||||
Shareholders' Equity: |
| 390,209 |
|
| ||||||||||||||||||||
Business First Bancshares, Inc. | ||||||||
Consolidated Net Interest Margin | ||||||||
(Unaudited) | ||||||||
Nine Months Ended | ||||||||
September 30, 2020 | September 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) | $ 2,227,681 | $ 93,699 | 5.61% | $ 1,605,423 | $ 70,701 | 5.87% | ||
SBA PPP Loans | 240,164 | 4,998 | 2.77% | - | - | 0.00% | ||
Securities Available for Sale | 444,237 | 6,380 | 1.91% | 303,374 | 5,486 | 2.41% | ||
Interest-Bearing Deposit in Other Banks | 43,965 | 291 | 0.88% | 26,621 | 616 | 3.09% | ||
Total Interest-Earning Assets | 2,956,047 | 105,368 | 4.75% | 1,935,418 | 76,803 | 5.29% | ||
Allowance for Loan Losses | (15,046) | (11,625) | ||||||
Noninterest-Earning Assets | 283,939 | 187,924 | ||||||
Total Assets | $ 3,224,940 | $ 105,368 | $ 2,111,717 | $ 76,803 | ||||
Liabilities and Shareholders' Equity | ||||||||
Interest-Bearing Liabilities: | ||||||||
Interest-Bearing Deposits | $ 1,866,556 | $ 13,826 | 0.99% | $ 1,323,927 | $ 14,845 | 1.50% | ||
Subordinated Debt | 25,000 | 1,266 | 6.75% | 25,000 | 1,267 | 6.76% | ||
Subordinated Debt - Trust Preferred Securities | 2,778 | 79 | 3.79% | - | - | 0.00% | ||
Advances from Federal Home Loan Bank (FHLB) | 116,785 | 1,538 | 1.76% | 59,990 | 1,065 | 2.37% | ||
Paycheck Protection Program Liquidity Facility (PPPLF) | 61,326 | 167 | 0.36% | - | - | 0.00% | ||
Other Borrowings | 45,179 | 430 | 1.27% | 16,863 | 55 | 0.43% | ||
Total Interest-Bearing Liabilities | 2,117,624 | 17,306 | 1.09% | 1,425,780 | 17,232 | 1.61% | ||
Noninterest-Bearing Liabilities: | ||||||||
Noninterest-Bearing Deposits | 738,578 | 396,452 | ||||||
Other Liabilities | 26,834 | 19,105 | ||||||
Total Noninterest-Bearing Liabilities | 765,412 | 415,557 | ||||||
Shareholders' Equity: | 341,904 | 270,380 | ||||||
Total Liabilities and Shareholders' Equity | $ 3,224,940 | $ 2,111,717 | ||||||
Net Interest Spread | 3.66% | 3.68% | ||||||
Net Interest Income | $ 88,062 | $ 59,571 | ||||||
Net Interest Margin | 3.97% | 4.10% | ||||||
Overall Cost of Funds | 0.81% | 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. | |||||||||||||||||
Non-GAAP Measures | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Interest Income: | |||||||||||||||||
Interest income | $ | 42,461 | $ | 36,891 | $ | 26,320 | $ | 105,368 | $ | 76,803 | |||||||
Core interest income | 42,461 | 36,891 | 26,320 | 105,368 | 76,803 | ||||||||||||
Interest Expense: | |||||||||||||||||
Interest expense | 5,529 | 5,972 | 6,062 | 17,306 | 17,232 | ||||||||||||
Core interest expense | 5,529 | 5,972 | 6,062 | 17,306 | 17,232 | ||||||||||||
Provision for Loan Losses: (b) | |||||||||||||||||
Provision for loan losses | 2,491 | 5,443 | 479 | 9,301 | 2,414 | ||||||||||||
Core provision expense | 2,491 | 5,443 | 479 | 9,301 | 2,414 | ||||||||||||
Other Income: | |||||||||||||||||
Other income | 4,217 | 4,996 | 1,922 | 12,017 | 8,452 | ||||||||||||
Sale of impaired credit | - | - | - | - | (91 | ) | |||||||||||
(Gains) losses on former bank premises and equipment | 635 | - | 594 | 509 | 594 | ||||||||||||
(Gains) on sale of securities | (95 | ) | - | (26 | ) | (120 | ) | (84 | ) | ||||||||
(Gains) on sale of banking center | - | - | 12 | - | (581 | ) | |||||||||||
Core other income | 4,757 | 4,996 | 2,502 | 12,406 | 8,290 | ||||||||||||
Other Expense: | |||||||||||||||||
Other expense | 26,951 | 27,797 | 14,878 | 71,391 | 43,245 | ||||||||||||
Acquisition-related expenses (2) | (1,206 | ) | (6,573 | ) | (288 | ) | (8,991 | ) | (674 | ) | |||||||
Stock option exercises - excess taxes | - | - | - | (71 | ) | - | |||||||||||
Early lease termination | - | - | (87 | ) | - | (87 | ) | ||||||||||
Core other expense | 25,745 | 21,224 | 14,503 | 62,329 | 42,484 | ||||||||||||
Pre-Tax Income: (a) | |||||||||||||||||
Pre-tax income | 11,707 | 2,675 | 6,823 | 19,387 | 22,364 | ||||||||||||
Sale of impaired credit | - | - | - | - | (91 | ) | |||||||||||
(Gains) losses on former bank premises and equipment | 635 | - | 594 | 509 | 594 | ||||||||||||
(Gains) on sale of securities | (95 | ) | - | (26 | ) | (120 | ) | (84 | ) | ||||||||
(Gains) losses on sale of banking center | - | - | 12 | - | (581 | ) | |||||||||||
Acquisition-related expenses (2) | 1,206 | 6,573 | 288 | 8,991 | 674 | ||||||||||||
Stock option exercises - excess taxes | - | - | - | 71 | - | ||||||||||||
Early lease termination | - | - | 87 | - | 87 | ||||||||||||
Core pre-tax income | 13,453 | 9,248 | 7,778 | 28,838 | 22,963 | ||||||||||||
Provision for Income Taxes: (1) | |||||||||||||||||
Provision for income taxes | 2,098 | 623 | 1,312 | 3,227 | 4,351 | ||||||||||||
Tax on sale of impaired credit | - | - | - | - | (19 | ) | |||||||||||
Tax on (gains) on former bank premises and equipment | 133 | - | 125 | 107 | 125 | ||||||||||||
Tax on (gains) on sale of securities | (20 | ) | - | (5 | ) | (25 | ) | (18 | ) | ||||||||
Tax on sale of banking center | - | - | 3 | - | (122 | ) | |||||||||||
Tax on acquisition-related expenses (2) | 241 | 1,275 | 60 | 1,607 | 135 | ||||||||||||
Tax on stock option exercises | - | - | - | 601 | - | ||||||||||||
Tax on early lease termination | - | - | 18 | - | 18 | ||||||||||||
Core provision for income taxes | 2,452 | 1,898 | 1,513 | 5,517 | 4,470 | ||||||||||||
Net Income: | |||||||||||||||||
Net income | 9,609 | 2,052 | 5,511 | 16,160 | 18,013 | ||||||||||||
Sale of impaired credit, net of tax | - | - | - | - | (72 | ) | |||||||||||
(Gains) losses on former bank premises and equipment, net of tax | 502 | - | 469 | 402 | 469 | ||||||||||||
(Gains) on sale of securities, net of tax | (75 | ) | - | (21 | ) | (95 | ) | (66 | ) | ||||||||
(Gains) losses on sale of banking center, net of tax | - | - | 9 | - | (459 | ) | |||||||||||
Acquisition-related expenses (2), net of tax | 965 | 5,298 | 228 | 7,384 | 539 | ||||||||||||
Stock option exercises, net of tax | - | - | - | (530 | ) | - | |||||||||||
Early lease termination, net of tax | - | - | 69 | - | 69 | ||||||||||||
Core net income | $ | 11,001 | $ | 7,350 | $ | 6,265 | $ | 23,321 | $ | 18,493 | |||||||
Pre-tax, pre-provision earnings (a+b) | $ | 14,198 | $ | 8,118 | $ | 7,302 | $ | 28,688 | $ | 24,778 | |||||||
Sale of impaired credit | - | - | - | - | (91 | ) | |||||||||||
(Gains) losses on former bank premises and equipment | 635 | - | 594 | 509 | 594 | ||||||||||||
(Gains) on sale of securities | (95 | ) | - | (26 | ) | (120 | ) | (84 | ) | ||||||||
(Gains)/losses on sale of banking center | - | - | 12 | - | (581 | ) | |||||||||||
Acquisition-related expenses (2) | 1,206 | 6,573 | 288 | 8,991 | 674 | ||||||||||||
Stock option exercises | - | - | - | 71 | - | ||||||||||||
Early lease termination | 87 | 87 | |||||||||||||||
Core pre-tax, pre-provision earnings | $ | 15,944 | $ | 14,691 | $ | 8,257 | $ | 38,139 | $ | 25,377 | |||||||
Average Diluted Shares Outstanding | 20,704,444 | 18,121,958 | 13,669,370 | 17,409,821 | 13,675,585 | ||||||||||||
Diluted Earnings Per Share: | |||||||||||||||||
Diluted earnings per share | $ | 0.46 | $ | 0.11 | $ | 0.40 | $ | 0.93 | $ | 1.32 | |||||||
Sale of impaired credit, net of tax | - | - | - | - | (0.01 | ) | |||||||||||
(Gains) losses on former bank premises and equipment , net of tax | 0.02 | - | 0.03 | 0.02 | 0.03 | ||||||||||||
(Gains) on sale of securities, net of tax | (0.00 | ) | - | (0.00 | ) | (0.01 | ) | (0.01 | ) | ||||||||
(Gains) losses on sale of banking center | - | - | 0.00 | - | (0.03 | ) | |||||||||||
Acquisition-related expenses (2), net of tax | 0.05 | 0.30 | 0.02 | 0.43 | 0.04 | ||||||||||||
Stock option exercises | - | - | - | (0.03 | ) | - | |||||||||||
Early lease termination, net of tax | - | 0.01 | - | 0.01 | |||||||||||||
Core diluted earnings per share | $ | 0.53 | $ | 0.41 | $ | 0.46 | $ | 1.34 | $ | 1.35 | |||||||
Pre-tax, pre-provision profit diluted earnings per share | $ | 0.69 | $ | 0.45 | $ | 0.53 | $ | 1.65 | $ | 1.81 | |||||||
Sale of impaired credit | - | - | - | - | (0.01 | ) | |||||||||||
(Gains) losses on former bank premises and equipment | 0.03 | - | 0.04 | 0.03 | 0.04 | ||||||||||||
(Gains) on sale of securities | (0.01 | ) | - | (0.00 | ) | (0.01 | ) | (0.01 | ) | ||||||||
(Gains) losses on sale of banking center | 0.00 | - | (0.04 | ) | |||||||||||||
Acquisition-related expenses (2) | 0.06 | 0.36 | 0.02 | 0.52 | 0.05 | ||||||||||||
Stock option exercises | - | - | - | 0.00 | - | ||||||||||||
Early lease termination | - | 0.01 | - | 0.01 | |||||||||||||
Core pre-tax, pre-provision diluted earnings per share | $ | 0.77 | $ | 0.81 | $ | 0.60 | $ | 2.19 | $ | 1.86 | |||||||
(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 | Nine Months Ended | ||||||||||||||||
September 30, | June 30, | September 30, | September 30, | September 30, | |||||||||||||
(Dollars in thousands, except per share data) | 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||
Total Quarterly/Year-to-Date Average Assets | $ | 3,933,631 | $ | 3,496,074 | $ | 2,156,759 | $ | 3,224,940 | $ | 2,111,717 | |||||||
Total Quarterly/Year-to-Date Average Equity | $ | 390,209 | $ | 349,634 | $ | 278,028 | $ | 341,904 | $ | 270,380 | |||||||
Net Income: | |||||||||||||||||
Net income | $ | 9,609 | $ | 2,052 | $ | 5,511 | $ | 16,160 | $ | 18,013 | |||||||
Sale of impaired credit, net of tax | - | - | - | - | (72 | ) | |||||||||||
(Gains) losses on former bank premises and equipment , net of tax | 502 | - | 469 | 402 | 469 | ||||||||||||
(Gains) on sale of securities, net of tax | (75 | ) | - | (21 | ) | (95 | ) | (66 | ) | ||||||||
(Gains) losses on sale of banking center, net of tax | - | - | 9 | - | (459 | ) | |||||||||||
Acquisition-related expenses (2), net of tax | 965 | 5,298 | 228 | 7,384 | 539 | ||||||||||||
Stock option exercises, net of tax | - | - | - | (530 | ) | - | |||||||||||
Early lease termination, net of tax | 69 | - | 69 | ||||||||||||||
Core net income | $ | 11,001 | $ | 7,350 | $ | 6,265 | $ | 23,321 | $ | 18,493 | |||||||
Return on average assets | 0.98% | 0.23% | 1.02% | 0.67% | 1.14% | ||||||||||||
Core return on average assets | 1.12% | 0.84% | 1.16% | 0.96% | 1.17% | ||||||||||||
Return on equity | 9.85% | 2.35% | 7.93% | 6.30% | 8.88% | ||||||||||||
Core return on average equity | 11.28% | 8.41% | 9.01% | 9.09% | 9.12% | ||||||||||||
Interest Income: | |||||||||||||||||
Interest income | $ | 42,461 | $ | 36,891 | $ | 26,320 | $ | 105,368 | $ | 76,803 | |||||||
Core interest income | 42,461 | 36,891 | 26,320 | 105,368 | 76,803 | ||||||||||||
Interest Expense: | |||||||||||||||||
Interest expense | 5,529 | 5,972 | 6,062 | 17,306 | 17,232 | ||||||||||||
Core interest expense | 5,529 | 5,972 | 6,062 | 17,306 | 17,232 | ||||||||||||
Other Income: | |||||||||||||||||
Other income | 4,217 | 4,996 | 1,922 | 12,017 | 8,452 | ||||||||||||
Sale of impaired credit | - | - | - | - | (91 | ) | |||||||||||
(Gains) losses on former bank premises and equipment | 635 | - | 594 | 509 | 594 | ||||||||||||
(Gains) on sale of securities | (95 | ) | - | (26 | ) | (120 | ) | (84 | ) | ||||||||
(Gains) losses on sale of banking center | - | - | 12 | - | (581 | ) | |||||||||||
Core other income | 4,757 | 4,996 | 2,502 | 12,406 | 8,290 | ||||||||||||
Other Expense: | |||||||||||||||||
Other expense | 26,951 | 27,797 | 14,878 | 71,391 | 43,245 | ||||||||||||
Acquisition-related expenses | (1,206 | ) | (6,573 | ) | (288 | ) | (8,991 | ) | (674 | ) | |||||||
Stock option exercises - excess taxes | - | - | - | (71 | ) | - | |||||||||||
Early lease termination | (87 | ) | - | (87 | ) | ||||||||||||
Core other expense | $ | 25,745 | $ | 21,224 | $ | 14,503 | $ | 62,329 | $ | 42,484 | |||||||
Efficiency Ratio: | |||||||||||||||||
Other expense (a) | $ | 26,951 | $ | 27,797 | $ | 14,878 | $ | 71,391 | $ | 43,245 | |||||||
Core other expense (c) | $ | 25,745 | $ | 21,224 | $ | 14,503 | $ | 62,329 | $ | 42,484 | |||||||
Net interest and other income (1) (b) | $ | 41,054 | $ | 35,915 | $ | 22,154 | $ | 99,959 | $ | 67,939 | |||||||
Core net interest and other income (1) (d) | $ | 41,689 | $ | 35,915 | $ | 22,760 | $ | 100,468 | $ | 67,861 | |||||||
Efficiency ratio (a/b) | 65.65% | 77.40% | 67.16% | 71.42% | 63.65% | ||||||||||||
Core efficiency ratio (c/d) | 61.75% | 59.10% | 63.72% | 62.04% | 62.60% | ||||||||||||
Total Average Interest-Earnings Assets | $ | 3,636,383 | $ | 3,176,156 | $ | 1,977,474 | $ | 2,956,047 | $ | 1,935,418 | |||||||
Net Interest Income: | |||||||||||||||||
Net interest income | $ | 36,932 | $ | 30,919 | $ | 20,258 | 88,062 | $ | 59,571 | ||||||||
Loan discount accretion | (2,270 | ) | (1,465 | ) | (544 | ) | (4,025 | ) | (1,802 | ) | |||||||
Net interest income excluding loan discount accretion | $ | 34,662 | $ | 29,454 | $ | 19,714 | $ | 84,037 | $ | 57,769 | |||||||
Net interest margin (2) | 4.06% | 3.89% | 4.10% | 3.97% | 4.10% | ||||||||||||
Net interest margin excluding loan discount accretion (2) | 3.81% | 3.71% | 3.99% | 3.79% | 3.98% | ||||||||||||
Net interest spread | 3.81% | 3.59% | 3.66% | 3.66% | 3.68% | ||||||||||||
Net interest spread excluding loan discount accretion | 3.56% | 3.41% | 3.55% | 3.48% | 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) | ||||||||||
September 30, | June 30, | September 30, | ||||||||
(Dollars in thousands, except per share data) | 2020 | 2020 | 2019 | |||||||
Total Shareholders' (Common) Equity: | ||||||||||
Total shareholders' equity | $ | 398,086 | $ | 386,336 | $ | 280,340 | ||||
Goodwill | (53,627 | ) | (53,649 | ) | (48,333 | ) | ||||
Core deposit intangible | (10,061 | ) | (10,389 | ) | (6,916 | ) | ||||
Total tangible common equity | $ | 334,398 | $ | 322,298 | $ | 225,091 | ||||
Total Assets: | ||||||||||
Total assets | $ | 3,954,670 | $ | 3,961,138 | $ | 2,220,840 | ||||
Goodwill | (53,627 | ) | (53,649 | ) | (48,333 | ) | ||||
Core deposit intangible | (10,061 | ) | (10,389 | ) | (6,916 | ) | ||||
Total tangible assets | $ | 3,890,982 | $ | 3,897,100 | $ | 2,165,591 | ||||
Common shares outstanding | 20,667,237 | 20,667,237 | 13,274,823 | |||||||
Book value per common share | $ | 19.26 | $ | 18.69 | $ | 21.12 | ||||
Tangible book value per common share | $ | 16.18 | $ | 15.59 | $ | 16.96 | ||||
Common equity to total assets | 10.07% | 9.75% | 12.62% | |||||||
Tangible common equity to tangible assets | 8.59% | 8.27% | 10.39% | |||||||
