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Business First Bancshares, Inc., Announces Financial Results for Fiscal Year 2022 and Q4 2022

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

BATON ROUGE, La., Jan. 25, 2023 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the year ended December 31, 2022, including net income available to common shareholders of $52.9 million, or $2.32 per diluted common share, an increase of $0.8 million and decrease of $0.21, respectively, from the prior year ended December 31, 2021. On a non-GAAP basis, core net income for the year ended December 31, 2022, which excludes certain income and expenses, was $57.6 million, or $2.52 per diluted common share, an increase of $3.7 million and decrease of $0.09, respectively, from prior year ended December 31, 2021. The results for the year ended December 31, 2021, included a $9.2 million pre-tax gain on the sale of substantially all of the Small Business Administration (SBA) Paycheck Protection Program (PPP) loans. The sale increased diluted earnings per common share by $0.35 for the year.

For the quarter ended December 31, 2022, Business First reported net income available to common shareholders of $16.6 million, or $0.67 per diluted common share, increases of $2.8 million and $0.06, respectively, from the quarter ended September 30, 2022. On a non-GAAP basis, core net income for the quarter ended December 31, 2022, which excludes certain income and expenses, was $16.4 million, unchanged from the linked quarter. On a per share basis, core net income was $0.66 per diluted common share for the current quarter, a decrease of $0.06 from the quarter ended September 30, 2022. The per share decrease was largely impacted by the issuance of 2,500,000 shares of common stock in an underwritten public offering at a public offering price of $20.00 per share during October 2022. Additionally, the Company paid a $1.4 million quarterly preferred dividend during the quarter ended December 31, 2022.

“2022 was a pivotal year for b1BANK, highlighted by record financial and operational performance,” said Jude Melville, president and CEO. “Long-term investments in personnel, technology and infrastructure are producing concrete returns. Asset quality remains solid. Our balance sheet has been fortified by the raising of over $120 million in preferred and common equity. These things lead us to be optimistic about our franchise’s potential in 2023 and beyond.”

On January 25, 2023, Business First’s board of directors declared a quarterly dividend based upon financial performance for the fourth quarter in the amount of $0.12 per share, same as the prior quarter. The dividend will be paid on February 28, 2023, or as soon thereafter as practicable, to the common shareholders of record as of February 15, 2023. Additionally, the board of directors declared a quarterly dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. The dividend will be paid on February 28, 2023, or as soon therefore as practicable, to the preferred shareholders of record as of February 15, 2023.

Quarterly Highlights

  • Solid Loan Growth. Total loans held for investment at December 31, 2022, were $4.6 billion, an increase of $176.3 million compared to September 30, 2022, or 3.98% for the quarter, 15.79% annualized. Based on unpaid principal balances, 44.1% of loan growth for the quarter ended December 31, 2022, was attributable to our Dallas Fort Worth region, 31.2% to the Houston region, 19.7% to the Capital region, and 13.6% to the Greater New Orleans region. As of December 31, 2022, approximately 35% of Business First’s loan portfolio resides in Texas based on unpaid principal balance.

  • Management of Net Interest Margin. For the quarter ended December 31, 2022, net interest income totaled $56.1 million and net interest margin and net interest spread were 4.06% and 3.43%, respectively, compared to $53.5 million, 4.01% and 3.65% for the quarter ended September 30, 2022. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $4.2 million) were 3.75% and 3.13%, respectively, for the quarter ended December 31, 2022, compared to 3.88% and 3.52% (excluding loan discount accretion of $1.7 million) for the quarter ended September 30, 2022. Net interest margin excluding loan discount accretion declined from the linked quarter due to a $650,000 acceleration of interest income from full repayment of a nonaccrual loan in July 2022, which accounted for approximately five basis points of the decrease, as well as increased deposit and Federal Home Loan Bank (FHLB) short-term fundings costs during the fourth quarter of 2022, which were mostly offset by increased loan offering rates, repricing, and volume.

  • Solid Return on Assets and Equity. Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.12% and 13.56%, respectively, for the quarter ended December 31, 2022, compared to 0.96% and 12.37%, respectively, for the quarter ended September 30, 2022. Non-GAAP core return on average assets and common equity, each on an annualized basis, were 1.10% and 13.37%, respectively, for the quarter ended December 31, 2022, compared to 1.14% and 14.68%, respectively, for the quarter ended September 30, 2022.

  • Overall Credit Quality Remains Stable. Ratios of nonperforming loans to loans held for investment and nonperforming assets to total assets remained steady at 0.25% and 0.21%, respectively at December 31, 2022, and September 30, 2022.

  • Common Stock Issuance. Business First completed an issuance of 2,500,000 shares of common stock in an underwritten public offering at a public offering price of $20.00 per share on October 17, 2022.

Statement of Financial Condition

Loans

Loans held for investment increased $176.3 million or 3.98%, 15.79% annualized, for the quarter ended December 31, 2022. For the year ended December 31, 2022, loans held for investment increased $1.4 billion or 44.41%. Organic loan growth, which excludes the beginning book value of the acquired Texas Citizens loan portfolio, was $1.1 billion or 33.45% for the year ended December 31, 2022.

Loan growth from the linked quarter was attributed to originations in the real estate - construction and land portfolio, $85.2 million or 48.33%, and in the commercial portfolio, $77.6 million or 44.02%. Our Dallas Fort Worth region produced 44.1% of the total growth from the linked quarter based on unpaid principal balance, while we also continued to originate growth from several of our other key strategic markets, 31.2% from the Houston region, 19.7% from the Capital region, and 13.6% from the Greater New Orleans region. As of December 31, 2022, approximately 35% of Business First’s loan portfolio resides in Texas based on unpaid principal balances.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment and nonperforming assets as a percentage of total assets remained consistent with the linked quarter at 0.25% and 0.21%, respectively. Loans 90 days past due and accruing decreased $786,000 while nonaccrual loans increased $1.2 million, $900,000 of which was attributed to a single relationship for which Business First recorded a provision for loan losses of $550,000 during the quarter. We believe the credit circumstances of this relationship are isolated and not systemic to the rest of the loan portfolio.

Securities

The securities portfolio increased $5.8 million or 0.65%, from the linked quarter. The increase was the net impact of positive fair value adjustments, $13.4 million, and $23.3 million of purchases with tax equivalent yields between 4.4% and 6.7% during the quarter ended December 31, 2022, offset by security paydowns and maturities.

Deposits

Deposits increased $234.2 million or 5.11%, 20.26% annualized, for the quarter ended December 31, 2022. For the year ended December 31, 2022, deposits increased $743.1 million or 18.22%. Organic deposit growth, which excludes the deposits of the acquired Texas Citizens portfolio, was $265.8 million or 6.52% for the year ended December 31, 2022.

Noninterest-bearing deposits decreased $63.9 million or 3.96%, and interest-bearing deposits increased $298.2 million or 10.03%, compared to the linked quarter.

Borrowings

Borrowings decreased $116.9 million or 17.27%, from the linked quarter. The decrease was largely attributed to a reduction in short-term, seven-day FHLB borrowings. The linked quarter increase in deposits was the main driver of the paydown in short-term borrowings.

Shareholders’ Equity

In October 2022, Business First issued 2,500,000 shares of common stock in an underwritten public offering at a public offering price of $20.00 per share. After deducting underwriting discounts and commissions and estimated offering expenses, the Company expects the net proceeds of the offering to be approximately $46.8 million. Additionally, accumulated other comprehensive income increased $10.5 million due to favorable after-tax fair value changes in the securities portfolio. Book value per common share was $20.25 at December 31, 2022, compared to $19.29 at September 30, 2022. On a non-GAAP basis, tangible book value per common share was $16.17 at December 31, 2022, compared to $14.73 at September 30, 2022.

Results of Operations

Net Interest Income

For the quarter ended December 31, 2022, net interest income totaled $56.1 million and net interest margin and net interest spread were 4.06% and 3.43%, respectively, compared to $53.5 million, 4.01% and 3.65% for the quarter ended September 30, 2022. The quarter ended December 31, 2022, included additional loan discount accretion due to a large, acquired loan payoff and accelerated accretion from the purchased impaired portfolio. The quarter ended September 30, 2022, included additional interest income of approximately $650,000 associated with a nonaccrual loan that was paid in full during the quarter. Overall costs of funds, which includes noninterest bearing deposits, increased from 0.77% to 1.38% or 61 basis points, from the linked quarter.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $4.2 million) were 3.75% and 3.13%, respectively, for the quarter ended December 31, 2022, compared to 3.88% and 3.52% (excluding loan discount accretion of $1.7 million) for the quarter ended September 30, 2022. The average yield on the loan portfolio (excluding SBA PPP loans and loan discount accretion) was 5.72% compared to 5.30% from the linked quarter. The compression of both net interest margin and net interest spread were largely attributed to the continued increases in short-term rates during the quarter ended December 31, 2022, resulting in a 104 and 84 basis point increase in average cost in FHLB borrowings and interest-bearing deposits, respectively. Although increased fundings costs negatively impact our margin and spread, we were able to offset a significant amount of the compression through increased loan offering rates, repricing, and volume.

Provision for Loan Losses

During the quarter ended December 31, 2022, Business First recorded a provision for loan losses of $3.1 million, compared to $3.3 million for the quarter ended September 30, 2022. The provision for loan losses for the quarter ended December 31, 2022, was impacted by individual reserves of $1.4 million and $550,000 on two separate loan relationships. Reserves on these loans are due to individual credit circumstances which we do not believe are systemic to the remainder of our loan portfolio.

Other Income

For the quarter ended December 31, 2022, other income increased $163,000, or 2.01%, compared to the quarter ended September 30, 2022. Notable variances included a $149,000 increase in service charges, $140,000 increase in fees and brokerage commissions, offset by a $205,000 reduction in gains on sales of loans due to less activity during the quarter ended December 31, 2022.

Non-GAAP other income was $422,000 lower than GAAP due to insurance recoveries attributed to salary expense and lost revenue from storm claims, compared to $265,000 of insurance recoveries for the quarter ended September 30, 2022.

Other Expenses

For the quarter ended December 31, 2022, other expense decreased by $2.6 million, or 6.35%, compared to the quarter ended September 30, 2022. The decrease was largely attributable to a $3.1 million decrease in merger and conversion-related expenses. Salaries and employee benefits increased marginally by $299,000, advertising and promotions increased $427,000 due to deposit promotions and other advertising production costs, and other expense increased $534,000 largely attributed to loan collection costs and miscellaneous expenses.

Non-GAAP other expense was $138,000 lower than GAAP due to merger and conversion-related expenses attributed to the Texas Citizens acquisition for the quarter ended December 31, 2022, compared to $3.5 million of merger and conversion-related expenses for the quarter ended September 30, 2022.

Return on Assets and Common Equity

Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.12% and 13.56%, respectively, for the quarter ended December 31, 2022, compared to 0.96% and 12.37%, respectively, for the quarter ended September 30, 2022. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.10% and 13.37%, respectively, for the quarter ended December 31, 2022, compared to 1.14% and 14.68%, respectively, for the quarter ended September 30, 2022.

Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Thursday, January 26, at 8:00 a.m. Central time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 4870042, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/d55ub27o. The corresponding slide presentation can be assessed the day of the presentation on b1BANK’s website at https://www.b1bank.com/shareholder-info.

About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.0 billion in assets, $6.5 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.

Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP “core” measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Business First’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.

Special Note Regarding Forward-Looking Statements
Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.

Additional Information
For additional information about Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.

No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com


Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

 

For the Quarter Ended

 

December 31,

September 30,

December 31,

(Dollars in thousands)

2022

2022

2021

 

 

 

 

Balance Sheet Ratios

 

 

 

 

 

 

 

Loans (HFI) to Deposits

 

95.56

%

 

96.59

%

 

78.23

%

Shareholders’ Equity to Assets Ratio

 

9.69

%

 

8.75

%

 

9.17

%

 

 

 

 

Loans Receivable Held for Investment (HFI)

 

 

 

 

 

 

 

Commercial (1)

$

1,090,343

 

$

1,012,778

 

$

721,385

 

Real Estate:

 

 

 

Construction and Land

 

722,074

 

 

636,869

 

 

548,528

 

Farmland

 

193,587

 

 

190,829

 

 

87,463

 

1-4 Family Residential

 

557,741

 

 

545,880

 

 

467,699

 

Multi-Family Residential

 

98,637

 

 

102,056

 

 

97,508

 

Nonfarm Nonresidential

 

1,826,819

 

 

1,823,408

 

 

1,144,426

 

Total Real Estate

 

3,398,858

 

 

3,299,042

 

 

2,345,624

 

Consumer and Other

 

116,975

 

 

118,080

 

 

122,599

 

Total Loans (Held for Investment)

$

4,606,176

 

$

4,429,900

 

$

3,189,608

 

 

 

 

 

Allowance for Loan Losses

 

 

 

 

 

 

 

Balance, Beginning of Period

$

35,201

 

$

32,317

 

$

28,146

 

Charge-offs – Quarterly

 

(387

)

 

(667

)

 

(385

)

Recoveries – Quarterly

 

313

 

 

278

 

 

51

 

Provision for Loan Losses – Quarterly

 

3,051

 

 

3,273

 

 

1,300

 

Balance, End of Period

$

38,178

 

$

35,201

 

$

29,112

 

 

 

 

 

Allowance for Loan Losses to Total Loans (HFI)

 

0.83

%

 

0.79

%

 

0.91

%

Net Charge-offs (Recoveries) to Average Quarterly Total Loans

 

0.00

%

 

0.01

%

 

0.01

%

 

 

 

 

Remaining Loan Purchase Discount

$

27,000

 

$

36,089

 

$

27,573

 

 

 

 

 

Nonperforming Assets

 

 

 

 

 

 

 

Nonperforming Loans:

 

 

 

Nonaccrual Loans (2)

$

11,054

 

$

9,843

 

$

12,868

 

Loans Past Due 90 Days or More (2)

 

335

 

 

1,121

 

 

222

 

Total Nonperforming Loans

 

11,389

 

 

10,964

 

 

13,090

 

Other Nonperforming Assets:

 

 

 

Other Real Estate Owned

 

1,372

 

 

840

 

 

1,427

 

Other Nonperforming Assets

 

62

 

 

180

 

 

-

 

Total Other Nonperforming Assets

 

1,434

 

 

1,020

 

 

1,427

 

Total Nonperforming Assets

$

12,823

 

$

11,984

 

$

14,517

 

 

 

 

 

Nonperforming Loans to Total Loans (HFI)

 

0.25

%

 

0.25

%

 

0.41

%

Nonperforming Assets to Total Assets

 

0.21

%

 

0.21

%

 

0.31

%

 

 

 

 

(1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $2.8 million

of the commercial portfolio as of December 31, 2022.

 

 

 

SBA PPP loans accounted for $3.0 million of the commercial portfolio as of September 30, 2022.

SBA PPP loans accounted for $5.4 million of the commercial portfolio as of December 31, 2021.

 

 

 

 

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

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

over the expected life of the loans.

 

 

 

 

 

 

 


Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

September 30,

December 31,

 

December 31,

December 31,

(Dollars in thousands, except per share data)

2022

2022

2021

 

2022

2021

 

 

 

 

 

 

 

Per Share Data

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings per Common Share

$

0.68

 

$

0.61

 

$

0.59

 

 

$

2.34

 

$

2.54

 

Diluted Earnings per Common Share

 

0.67

 

 

0.61

 

 

0.59

 

 

 

2.32

 

 

2.53

 

Dividends per Common Share

 

0.12

 

 

0.12

 

 

0.12

 

 

 

0.48

 

 

0.46

 

Book Value per Common Share

 

20.25

 

 

19.29

 

 

21.24

 

 

 

20.25

 

 

21.24

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Common Shares Outstanding

 

24,542,120

 

 

22,468,939

 

 

20,299,704

 

 

 

22,633,478

 

 

20,502,249

 

Average Diluted Common Shares Outstanding

 

24,757,143

 

 

22,650,640

 

 

20,462,317

 

 

 

22,817,493

 

 

20,634,281

 

End of Period Common Shares Outstanding

 

25,110,313

 

 

22,605,136

 

 

20,400,349

 

 

 

25,110,313

 

 

20,400,349

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annualized Performance Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

Return to Common Shareholders on Average Assets (1)

 

1.12

%

 

0.96

%

 

1.04

%

 

 

0.97

%

 

1.18

%

Return to Common Shareholders on Average Common Equity (1)

 

13.56

%

 

12.37

%

 

11.11

%

 

 

11.59

%

 

12.25

%

Net Interest Margin (1)

 

4.06

%

 

4.01

%

 

3.54

%

 

 

3.92

%

 

3.84

%

Net Interest Spread (1)

 

3.43

%

 

3.65

%

 

3.35

%

 

 

3.57

%

 

3.65

%

Efficiency Ratio (2)

 

59.60

%

 

66.47

%

 

65.55

%

 

 

65.26

%

 

61.84

%

 

 

 

 

 

 

 

Total Quarterly/YTD Average Assets

$

5,899,972

 

$

5,702,312

 

$

4,584,460

 

 

$

5,473,508

 

$

4,403,670

 

Total Quarterly/YTD Average Common Equity

 

486,338

 

 

442,778

 

 

430,834

 

 

 

456,388

 

 

425,692

 

 

 

 

 

 

 

 

Other Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and Employee Benefits

$

22,205

 

$

21,906

 

$

17,355

 

 

$

85,222

 

$

65,825

 

Occupancy and Bank Premises

 

2,285

 

 

2,485

 

 

1,522

 

 

 

9,244

 

 

7,238

 

Depreciation and Amortization

 

1,700

 

 

1,850

 

 

793

 

 

 

6,853

 

 

5,792

 

Data Processing

 

2,201

 

 

2,155

 

 

2,032

 

 

 

8,358

 

 

8,137

 

FDIC Assessment Fees

 

611

 

 

839

 

 

668

 

 

 

2,854

 

 

2,194

 

Legal and Other Professional Fees

 

462

 

 

619

 

 

480

 

 

 

2,359

 

 

2,679

 

Advertising and Promotions

 

1,571

 

 

1,144

 

 

999

 

 

 

3,949

 

 

2,712

 

Utilities and Communications

 

759

 

 

833

 

 

586

 

 

 

3,193

 

 

2,475

 

Ad Valorem Shares Tax

 

962

 

 

813

 

 

449

 

 

 

3,400

 

 

2,499

 

Directors’ Fees

 

270

 

 

288

 

 

207

 

 

 

972

 

 

790

 

Other Real Estate Owned Expenses and Write-Downs

 

11

 

 

133

 

 

76

 

 

 

193

 

 

736

 

Merger and Conversion-Related Expenses

 

138

 

 

3,244

 

 

266

 

 

 

4,808

 

 

515

 

Other

 

5,171

 

 

4,637

 

 

3,982

 

 

 

18,004

 

 

15,469

 

Total Other Expenses

$

38,346

 

$

40,946

 

$

29,415

 

 

$

149,409

 

$

117,061

 

 

 

 

 

 

 

 

Other Income

 

 

 

 

 

 

 

 

 

 

 

 

 

Service Charges on Deposit Accounts

$

2,265

 

$

2,116

 

$

1,800

 

 

$

8,272

 

$

6,813

 

(Loss)/Gain on Sales of Securities

 

(2

)

 

(7

)

 

444

 

 

 

(48

)

 

378

 

Debit Card and ATM Fee Income

 

1,582

 

 

1,667

 

 

1,554

 

 

 

6,407

 

 

6,199

 

Bank-Owned Life Insurance Income

 

526

 

 

561

 

 

367

 

 

 

1,931

 

 

1,396

 

Gain on Sales of Loans

 

59

 

 

264

 

 

3

 

 

 

574

 

 

10,117

 

Mortgage Origination Income

 

105

 

 

57

 

 

169

 

 

 

532

 

 

866

 

Fees and Brokerage Commission

 

1,760

 

 

1,620

 

 

1,721

 

 

 

6,964

 

 

5,015

 

Gain (Loss) on Sales of Other Real Estate Owned

 

3

 

 

12

 

 

(35

)

 

 

33

 

 

(1,122

)

Gain (Loss) on Disposal of Other Assets

 

(1

)

 

1

 

 

(9

)

 

 

(717

)

 

112

 

Gain on Sale of Branch

 

-

 

 

-

 

 

492

 

 

 

-

 

 

492

 

Pass-Through Income from Other Investments

 

608

 

 

572

 

 

555

 

 

 

1,347

 

 

2,615

 

Other

 

1,373

 

 

1,252

 

 

(86

)

 

 

4,015

 

 

2,901

 

Total Other Income

$

8,278

 

$

8,115

 

$

6,975

 

 

$

29,310

 

$

35,782

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention.

(2) 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)

 

 

 

 

 

December 31,

September 30,

December 31,

(Dollars in thousands)

 

2022

 

 

2022

 

 

2021

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Cash and Due From Banks

$

152,740

 

$

152,671

 

$

68,375

 

Federal Funds Sold

 

15,606

 

 

11,137

 

 

227,044

 

Securities Available for Sale, at Fair Values

 

890,751

 

 

884,960

 

 

1,021,061

 

Mortgage Loans Held for Sale

 

304

 

 

545

 

 

1,200

 

Loans and Lease Receivable

 

4,606,176

 

 

4,429,900

 

 

3,189,608

 

Allowance for Loan Losses

 

(38,178

)

 

(35,201

)

 

(29,112

)

Net Loans and Lease Receivable

 

4,567,998

 

 

4,394,699

 

 

3,160,496

 

Premises and Equipment, Net

 

63,177

 

 

63,765

 

 

58,155

 

Accrued Interest Receivable

 

25,666

 

 

22,454

 

 

19,597

 

Other Equity Securities

 

37,467

 

 

39,390

 

 

16,619

 

Other Real Estate Owned

 

1,372

 

 

840

 

 

1,427

 

Cash Value of Life Insurance

 

91,958

 

 

88,743

 

 

60,380

 

Deferred Taxes, Net

 

31,194

 

 

36,691

 

 

8,822

 

Goodwill

 

88,543

 

 

88,543

 

 

59,894

 

Core Deposit and Customer Intangibles

 

14,042

 

 

14,567

 

 

12,203

 

Other Assets

 

9,642

 

 

7,686

 

 

11,105

 

 

 

 

 

Total Assets

$

5,990,460

 

$

5,806,691

 

$

4,726,378

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

Deposits

 

 

 

Noninterest-Bearing

$

1,549,381

 

$

1,613,310

 

$

1,291,036

 

Interest-Bearing

 

3,270,964

 

 

2,972,795

 

 

2,786,247

 

Total Deposits

 

4,820,345

 

 

4,586,105

 

 

4,077,283

 

 

 

 

 

Securities Sold Under Agreements to Repurchase

 

20,208

 

 

22,072

 

 

19,121

 

Fed Funds Purchased

 

14,057

 

 

-

 

 

-

 

Short-Term Borrowings

 

9

 

 

5,009

 

 

20

 

Subordinated Debt

 

110,749

 

 

110,902

 

 

81,427

 

Subordinated Debt - Trust Preferred Securities

 

5,000

 

 

5,000

 

 

5,000

 

Federal Home Loan Bank Borrowings

 

410,100

 

 

534,059

 

 

82,022

 

Accrued Interest Payable

 

2,092

 

 

1,023

 

 

1,354

 

Other Liabilities

 

27,419

 

 

34,519

 

 

26,783

 

 

 

 

 

Total Liabilities

 

5,409,979

 

 

5,298,689

 

 

4,293,010

 

 

 

 

 

Shareholders’ Equity

 

 

 

 

 

 

 

Preferred Stock

 

71,930

 

 

72,010

 

 

-

 

Common Stock

 

25,110

 

 

22,605

 

 

20,400

 

Additional Paid-In Capital

 

393,690

 

 

347,721

 

 

292,271

 

Retained Earnings

 

163,955

 

 

150,336

 

 

121,874

 

Accumulated Other Comprehensive Income (Loss)

 

(74,204

)

 

(84,670

)

 

(1,177

)

 

 

 

 

Total Shareholders’ Equity

 

580,481

 

 

508,002

 

 

433,368

 

 

 

 

 

Total Liabilities and Shareholders’ Equity

$

5,990,460

 

$

5,806,691

 

$

4,726,378

 

 

 

 

 


Business First Bancshares, Inc.

Consolidated Statements of Income

(Unaudited)

 

 

 

 

 

 

 

 

Three Months Ended

 

Year Ended

 

December 31,

September 30,

December 31,

 

December 31,

December 31,

(Dollars in thousands)

 

2022

 

 

2022

 

2021

 

 

2022

 

2021

 

 

 

 

 

 

 

Interest Income:

 

 

 

 

 

 

Interest and Fees on Loans

$

69,364

 

$

58,846

 

$

38,337

 

$

218,032

 

$

156,791

Interest and Dividends on Securities

 

4,316

 

 

4,200

 

 

3,904

 

 

16,503

 

 

13,520

Interest on Federal Funds Sold and Due From Banks

 

825

 

 

427

 

 

50

 

 

1,579

 

 

127

Total Interest Income

 

74,505

 

 

63,473

 

 

42,291

 

 

236,114

 

 

170,438

 

 

 

 

 

 

 

Interest Expense:

 

 

 

 

 

 

Interest on Deposits

 

13,307

 

 

6,286

 

 

2,645

 

 

24,413

 

 

12,183

Interest on Borrowings

 

5,138

 

 

3,707

 

 

1,302

 

 

12,124

 

 

4,371

Total Interest Expense

 

18,445

 

 

9,993

 

 

3,947

 

 

36,537

 

 

16,554

 

 

 

 

 

 

 

Net Interest Income

 

56,060

 

 

53,480

 

 

38,344

 

 

199,577

 

 

153,884

 

 

 

 

 

 

 

Provision for Loan Losses:

 

3,051

 

 

3,273

 

 

1,300

 

 

10,886

 

 

8,047

 

 

 

 

 

 

 

Net Interest Income After Provision for Loan Losses

 

53,009

 

 

50,207

 

 

37,044

 

 

188,691

 

 

145,837

 

 

 

 

 

 

 

Other Income:

 

 

 

 

 

 

Service Charges on Deposit Accounts

 

2,265

 

 

2,116

 

 

1,800

 

 

8,272

 

 

6,813

(Loss)/Gain on Sales of Securities

 

(2

)

 

(7

)

 

444

 

 

(48

)

 

378

Gain on Sales of Loans

 

59

 

 

264

 

 

3

 

 

574

 

 

10,117

Other Income

 

5,956

 

 

5,742

 

 

4,728

 

 

20,512

 

 

18,474

Total Other Income

 

8,278

 

 

8,115

 

 

6,975

 

 

29,310

 

 

35,782

 

 

 

 

 

 

 

Other Expenses:

 

 

 

 

 

 

Salaries and Employee Benefits

 

22,205

 

 

21,906

 

 

17,355

 

 

85,222

 

 

65,825

Occupancy and Equipment Expense

 

4,918

 

 

5,122

 

 

3,857

 

 

19,367

 

 

15,750

Merger and Conversion-Related Expense

 

138

 

 

3,244

 

 

266

 

 

4,808

 

 

515

Other Expenses

 

11,085

 

 

10,674

 

 

7,937

 

 

40,012

 

 

34,971

Total Other Expenses

 

38,346

 

 

40,946

 

 

29,415

 

 

149,409

 

 

117,061

 

 

 

 

 

 

 

Income Before Income Taxes:

 

22,941

 

 

17,376

 

 

14,604

 

 

68,592

 

 

64,558

 

 

 

 

 

 

 

Provision for Income Taxes:

 

4,974

 

 

3,576

 

 

2,536

 

 

14,337

 

 

12,422

 

 

 

 

 

 

 

Net Income:

 

17,967

 

 

13,800

 

 

12,068

 

 

54,255

 

 

52,136

 

 

 

 

 

 

 

Preferred Stock Dividends:

 

(1,350

)

 

-

 

 

-

 

 

(1,350

)

 

-

 

 

 

 

 

 

 

Net Income Available to Common Shareholders

$

16,617

 

$

13,800

 

$

12,068

 

$

52,905

 

$

52,136

 

 

 

 

 

 

 


Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

December 31, 2022

 

September 30, 2022

 

December 31, 2021

 

Average

 

 

 

Average

 

 

 

Average

 

 

 

Outstanding

Interest
Earned /

Average

 

Outstanding

Interest
Earned /

Average

 

Outstanding

Interest
Earned /

Average

(Dollars in thousands)

Balance

Interest Paid

Yield / Rate

 

Balance

Interest Paid

Yield / Rate

 

Balance

Interest Paid

Yield / Rate

 

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Earning Assets:

 

 

 

 

 

 

 

 

 

 

 

Total Loans (Excluding SBA PPP)

$

4,516,794

 

$

69,357

6.09

%

 

$

4,278,184

 

$

58,839

5.46

%

 

$

3,106,477

 

$

38,318

4.89

%

SBA PPP Loans

 

2,849

 

 

7

0.99

%

 

 

2,953

 

 

7

0.99

%

 

 

7,733

 

 

19

0.99

%

Securities

 

901,236

 

 

4,316

1.90

%

 

 

951,479

 

 

4,200

1.75

%

 

 

1,041,437

 

 

3,904

1.49

%

Interest-Bearing Deposit in Other Banks

 

62,013

 

 

825

5.28

%

 

 

54,730

 

 

427

3.10

%

 

 

143,488

 

 

50

0.14

%

Total Interest-Earning Assets

 

5,482,892

 

 

74,505

5.39

%

 

 

5,287,346

 

 

63,473

4.76

%

 

 

4,299,135

 

 

42,291

3.90

%

Allowance for Loan Losses

 

(35,951

)

 

 

 

 

(33,215

)

 

 

 

 

(28,379

)

 

 

Noninterest-Earning Assets

 

453,031

 

 

 

 

 

448,181

 

 

 

 

 

313,704

 

 

 

Total Assets

$

5,899,972

 

$

74,505

 

 

$

5,702,312

 

$

63,473

 

 

$

4,584,460

 

$

42,291

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Interest-Bearing Deposits

$

3,157,513

 

$

13,307

1.67

%

 

$

3,009,565

 

$

6,286

0.83

%

 

$

2,653,041

 

$

2,645

0.40

%

Subordinated Debt

 

110,800

 

 

1,363

4.88

%

 

 

110,953

 

 

1,332

4.76

%

 

 

81,427

 

 

1,026

5.00

%

Subordinated Debt - Trust Preferred Securities

 

5,000

 

 

85

6.74

%

 

 

5,000

 

 

68

5.40

%

 

 

5,000

 

 

42

3.33

%

Advances from Federal Home Loan Bank (FHLB)

 

436,233

 

 

3,555

3.23

%

 

 

396,267

 

 

2,194

2.20

%

 

 

83,374

 

 

229

1.09

%

First National Bankers Bank Line of Credit

 

1,667

 

 

30

7.14

%

 

 

5,000

 

 

70

5.55

%

 

 

-

 

 

-

0.00

%

Other Borrowings

 

25,815

 

 

105

1.61

%

 

 

22,381

 

 

43

0.76

%

 

 

25,774

 

 

5

0.08

%

Total Interest-Bearing Liabilities

 

3,737,028

 

 

18,445

1.96

%

 

 

3,549,166

 

 

9,993

1.12

%

 

 

2,848,616

 

 

3,947

0.55

%

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Noninterest-Bearing Deposits

$

1,567,507

 

 

 

 

$

1,626,055

 

 

 

 

$

1,276,279

 

 

 

Other Liabilities

 

37,138

 

 

 

 

 

60,310

 

 

 

 

 

28,731

 

 

 

Total Noninterest-Bearing Liabilities

 

1,604,645

 

 

 

 

 

1,686,365

 

 

 

 

 

1,305,010

 

 

 

Shareholders’ Equity:

 

 

 

 

 

 

 

 

 

 

 

Common Shareholders’ Equity

 

486,338

 

 

 

 

 

442,778

 

 

 

 

 

430,834

 

 

 

Preferred Equity

 

71,961

 

 

 

 

 

24,003

 

 

 

 

 

-

 

 

 

Total Shareholder’s Equity

 

558,299

 

 

 

 

 

466,781

 

 

 

 

 

430,834

 

 

 

Total Liabilities and Shareholders’ Equity

$

5,899,972

 

 

 

 

$

5,702,312

 

 

 

 

$

4,584,460

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Interest Spread