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Business First Bancshares, Inc., Announces Financial Results for Fiscal Year 2019 and Q4 2019

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BATON ROUGE, La., Jan. 22, 2020 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the year ended December 31, 2019, including net income of $23.8 million, or $1.74 per diluted share, increases of $9.7 million and $0.52, respectively, from the prior year. Core net income for the year ended December 31, 2019, which excludes noncore income and expenses, was $24.6 million, or $1.80 per diluted share, which reflects increases of $7.8 million and $0.35, respectively, from the prior year.

“2019 was a year of successful transition for our company,” said Jude Melville, president and CEO. “We rebranded, we opened new locations in growth markets, we solidified relationships from our two most recent acquisitions and we increased core earnings per share year-over-year by almost 25%, while growing organically at a healthy, well capitalized rate and maintaining sound asset quality. I really couldn’t have asked for more from our team over the past year and we take the field just as excited about our opportunities in 2020 as we are celebratory of the year we had in 2019.”

On January 22, 2020, Business First’s board of directors declared a quarterly dividend based upon financial performance for the fourth quarter in the amount of $0.10 per share, same as the prior quarter, to the common shareholders of record as of February 15, 2020. The dividend will be paid on February 28, 2020, or as soon thereafter as practicable.

Quarterly Highlights

  • Improved Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from 0.70% and 0.64%, respectively, at September 30, 2019, to 0.53% and 0.58% at December 31, 2019. Nonperforming assets for the quarter ended December 31, 2019 were impacted by $566,000 in write-downs on other real estate owned properties; however, excluding this impact, credit quality still improved compared to prior quarter.

  • Loan Growth. Total loans held for investment at December 31, 2019, were $1.7 billion, an increase of $15.5 million compared to September 30, 2019. Loan growth was 3.7% (annualized) for the quarter ended December 31, 2019, and 11.9% for year ended December 31, 2019. Loan growth for the quarter was tempered due to higher than anticipated paydowns and delayed closings due to the holiday calendar.

  • Net Interest Margin and Spread. Net interest margin and spread were negatively impacted due to the federal funds rate cut of an additional 25 basis points during the quarter ended December 31, 2019. Net interest margin and net interest spread were 4.08% and 3.65%, respectively, for the quarter ended December 31, 2019, compared to 4.10% and 3.66% for the quarter ended September 30, 2019. Excluding loan discount accretion, net interest margin and spread were 3.92% and 3.49%, respectively, for the quarter ended December 31, 2019, compared to 3.99% and 3.55% for the quarter ended September 30, 2019.

  • Dallas Branch Network Expansion. Business First opened its second full-service banking center in the Dallas, Texas metropolitan area in December 2019.

Financial Condition

December 31, 2019, Compared to September 30, 2019

Balance Sheet

As of December 31, 2019, Business First had total assets of $2.3 billion, total loans of $1.7 billion, total deposits of $1.8 billion and total shareholders’ equity of $285.1 million, compared to $2.2 billion, $1.7 billion, $1.7 billion and $280.3 million, respectively, as of September 30, 2019.

Total loans held for investment increased by $15.5 million compared to September 30, 2019, or 3.7% annualized, for the quarter ended December 31, 2019. Loan growth was tempered during the quarter due to higher than anticipated payoffs and delayed closings due to the holiday calendar.

Book value per common share was $21.47 at December 31, 2019, compared to $21.12 at September 30, 2019. Tangible book value per common share was $17.31 at December 31, 2019, compared to $16.96 at September 30, 2019.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 0.70% as of September 30, 2019, to 0.53% as of December 31, 2019. Nonperforming assets as a percentage of total assets decreased from 0.64% as of September 30, 2019, to 0.58% as of December 31, 2019. A portion of the decrease in nonperforming assets was associated with $566,000 in write-downs on other real estate owned properties during the quarter ended December 31, 2019.

December 31, 2019, Compared to December 31, 2018

Balance Sheet

As of December 31, 2019, Business First had total assets of $2.3 billion, total loans of $1.7 billion, total deposits of $1.8 billion and total shareholders’ equity of $285.1 million, compared to $2.1 billion, $1.5 billion, $1.7 billion and $260.1 million, respectively, as of December 31, 2018. The balance sheet increases were largely attributable to organic growth in loans and funding sources.

Book value per common share was $21.47 at December 31, 2019, compared to $19.68 at December 31, 2018. Tangible book value per common share was $17.31 at December 31, 2019, compared to $15.34 at December 31, 2018.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 0.89% as of December 31, 2018, to 0.53% as of December 31, 2019. Nonperforming assets as a percentage of total assets decreased from 0.74% as of December 31, 2018, to 0.58% as of December 31, 2019. The decreases were mainly attributable to improved credit quality in relation to the size of the loan portfolio and total assets of Business First.

Results of Operations

Fourth Quarter 2019 Compared to Third Quarter 2019

Net Income and Diluted Earnings Per Share

For the quarter ended December 31, 2019, net income was $5.8 million, or $0.42 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 increase was largely attributable to additional interest and fee income on loans and a reduction in provision expense, offset by an adjustment to estimated income tax expense associated with the sale of the Mangham banking center and write-downs on other real estate owned properties.

Core net income, which excludes noncore income and expenses, for the quarter ended December 31, 2019, was $6.1 million, or $0.45 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 December 31, 2019, included the incurrence of $125,000 in losses associated with the disposal of former bank premises and equipment in noninterest income related to the rebranding of b1BANK and a $216,000 adjustment to estimated income tax expense associated with the sale of the Mangham banking center, compared to $594,000 in losses associated with the disposal of former bank premises and equipment in noninterest income and $288,000 of acquisition-related expenses in noninterest expense for the quarter ended September 30, 2019.

Return on Assets and Equity

Return on average assets and equity, each on an annualized basis, increased to 1.04% and 8.18%, respectively, for the quarter ended December 31, 2019, compared to 1.02% and 7.93%, respectively, for the quarter ended September 30, 2019.

As adjusted, core return on average assets and core return on average equity, each on an annualized basis, were 1.11% and 8.69%, respectively, for the quarter ended December 31, 2019, compared to 1.16% and 9.01%, respectively, for the quarter ended September 30, 2019.

Interest Income

For the quarter ended December 31, 2019, net interest income totaled $20.6 million and net interest margin and net interest spread were 4.08% and 3.65%, respectively, compared to $20.3 million, 4.10% and 3.66% for the quarter ended September 30, 2019.

Net interest margin and net interest spread (excluding loan discount accretion of $800,000) were 3.92% and 3.49%, respectively, for the quarter ended December 31, 2019, compared to 3.99% and 3.55% (excluding loan discount accretion of $544,000) for the quarter ended September 30, 2019. The ratios were negatively impacted by lower yielding loans due to the federal funds rate cut of 25 basis points at the end of October, offset by a reduction in cost of funds.

The average yield on the loan portfolio was 5.82% for the quarter ended December 31, 2019, compared to 5.87% for the quarter ended September 30, 2019. The average yield on total interest-earning assets was 5.28% for the quarter ended December 31, 2019, compared to 5.32% for the quarter ended September 30, 2019.

Interest Expense

For the quarter ended December 31, 2019, overall cost of funds (which includes noninterest-bearing deposits) decreased by four basis points, from 1.31% to 1.27%, compared to the quarter ended September 30, 2019. The decrease in cost of funds was largely attributable to an overall reduction in interest rates on Business First’s deposit offerings and increase in noninterest-bearing deposits, offset partially by an increase in interest rates on other borrowings.

Provision for Loan Losses

During the quarter ended December 31, 2019, Business First recorded a provision for loan losses of $192,000, compared to $479,000 for the quarter ended September 30, 2019. The reserve for the quarter ended December 31, 2019, was impacted by lower net loan growth.

Fourth Quarter 2019 Compared to Fourth Quarter 2018

Net Income and Diluted Earnings Per Share

For the quarter ended December 31, 2019, net income was $5.8 million, or $0.42 per diluted share, compared to net income of $3.4 million, or $0.28 per diluted share, for the quarter ended December 31, 2018. The increase in net income and diluted earnings per share resulted from the overall growth and improved efficiency of Business First over the past 12 months, mainly attributable to growth in net interest income and partially offset by increases in noninterest expenses and income taxes. Both the growth in net interest income and increase in noninterest expenses and income taxes were impacted by the acquisition of Richland State Bank which occurred in December 2018.

Core net income, which excludes noncore income and expenses, for the quarter ended December 31, 2019, was $6.1 million, or $0.45 per diluted share, compared to core net income of $4.7 million, or $0.38 per diluted share, for the quarter ended December 31, 2018. Notable noncore events impacting earnings for the quarter ended December 31, 2019, included the incurrence of $125,000 in losses associated with the disposal of former bank premises and equipment in noninterest income related to the rebranding of b1BANK and a $216,000 adjustment to estimated income tax expense associated with the sale of the Mangham banking center, compared to $2.1 million in noninterest expenses related to acquisition-related activities and $588,000 related to gains associated with former premises and equipment, investment and impaired loan sales for the quarter ended December 31, 2018.

Return on Assets and Equity

Return on average assets and return on average equity, each on an annualized basis, increased to 1.04% and 8.18%, respectively, for the quarter ended December 31, 2019, from 0.75% and 6.03%, respectively, for the quarter ended December 31, 2018.

As adjusted, core return on average assets and core return on average equity, each on an annualized basis, were 1.11% and 8.69%, respectively, for the quarter ended December 31, 2019, compared to 1.03% and 8.23%, respectively, for the quarter ended December 31, 2018.

Interest Income

For the quarter ended December 31, 2019, net interest income totaled $20.6 million and net interest margin and net interest spread were 4.08% and 3.65%, respectively, compared to $17.1 million, 4.07% and 3.70% for the quarter ended December 31, 2018.

Net interest margin and net interest spread (excluding loan discount accretion of $800,000) were 3.92% and 3.49%, respectively, for the quarter ended December 31, 2019, compared to 4.01% and 3.63% (excluding loan discount accretion of $283,000) for the quarter ended December 31, 2018. The reductions were largely attributable to the three federal funds rate cuts of 25 basis points which occurred throughout the second half of 2019.

The average yield on the loan portfolio was 5.82% for the quarter ended December 31, 2019, compared to 5.72% for the quarter ended December 31, 2018. The average yield on total interest-earning assets was 5.28% for the quarter ended December 31, 2019, compared to 5.13% for the quarter ended December 31, 2018.

Interest Expense

For the quarter ended December 31, 2019, overall cost of funds (which includes noninterest-bearing deposits) increased by 15 basis points, from 1.12% to 1.27%, compared to the quarter ended December 31, 2018. The increase was largely attributable to an overall increase in interest rates on interest-bearing deposits over the past 12 months and the issuance of subordinated debt in December 2018.

Provision for Loan Losses

During the quarter ended December 31, 2019, Business First recorded a provision for loan losses of $192,000, compared to $939,000 for the quarter ended December 31, 2018. The large provision for the quarter ended December 31, 2018 was attributable to a single loan.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., through its banking subsidiary b1BANK, formerly known as Business First Bank, operates 26 banking centers in markets across Louisiana and in the Dallas, Texas area. b1BANK provides commercial and personal banking, treasury management and wealth solutions services to small to midsize businesses and their owners and employees. Visit www.b1BANK.com for more information. Business First’s common stock is traded on the NASDAQ Global Select Market under the symbol “BFST.”

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. These measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, 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 Company’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.

Special Note Regarding Forward-Looking Statements

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

Additional Information

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

No Offer or Solicitation

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

Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands)

2019

2019

2019

2019

2018

Balance Sheet Ratios

Loans (HFI) to Deposits

95.97

%

97.77

%

96.46

%

90.93

%

88.15

%

Shareholders' Equity to Assets Ratio

12.54

%

12.62

%

12.88

%

12.81

%

12.41

%

Loans Receivable Held for Investment

Commercial

$

390,398

$

415,163

$

411,256

$

389,855

$

363,640

Real Estate:

Construction and Land

244,181

220,524

227,102

211,888

211,054

Farmland

48,681

45,809

47,245

44,066

45,989

1-4 Family Residential

293,142

281,413

278,610

275,610

270,583

Multi-Family Residential

36,454

31,448

38,698

39,548

39,273

Nonfarm Nonresidential

612,608

620,427

561,149

550,103

518,660

Total Real Estate

1,235,066

1,199,621

1,152,804

1,121,215

1,085,559

Consumer

84,801

79,943

78,513

75,112

79,270

Total Loans

$

1,710,265

$

1,694,727

$

1,642,573

$

1,586,182

$

1,528,469

Allowance for Loan Losses

Balance, Beginning of Period

$

12,090

$

11,603

$

11,818

$

11,220

$

10,273

Charge-offs – Quarterly

(190

)

(13

)

(1,565

)

(57

)

(19

)

Recoveries – Quarterly

32

21

48

22

27

Provision for Loan Losses – Quarterly

192

479

1,302

633

939

Balance, End of Period

$

12,124

$

12,090

$

11,603

$

11,818

$

11,220

Allowance for Loan Losses to Total Loans (HFI)

0.71

%

0.71

%

0.71

%

0.75

%

0.73

%

Net Charge-offs (Recoveries) to Average Total Loans

0.01

%

0.00

%

0.09

%

0.00

%

0.00

%

Nonperforming Assets

Nonperforming Loans:

Nonaccrual Loans

$

8,977

$

11,577

$

9,363

$

13,183

$

11,691

Loans Past Due 90 Days or More

72

277

727

77

1,876

Total Nonperforming Loans

9,049

11,854

10,090

13,260

13,567

Other Nonperforming Assets:

Other Real Estate Owned

4,036

2,326

2,324

1,683

1,909

Other Nonperforming Assets

160

5

6

11

11

Total Other Nonperforming Assets

4,196

2,331

2,330

1,694

1,920

Total Nonperforming Assets

$

13,245

$

14,185

$

12,420

$

14,954

$

15,487

Nonperforming Loans to Total Loans (HFI)

0.53

%

0.70

%

0.61

%

0.84

%

0.89

%

Nonperforming Assets to Total Assets

0.58

%

0.64

%

0.58

%

0.71

%

0.74

%


Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

Quarter Ended

Year Ended

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

(Dollars in thousands, except per share data)

2019

2019

2019

2019

2018

2019

2018

Per Share Data

Basic Earnings per Common Share

$

0.43

$

0.41

$

0.51

$

0.43

$

0.28

$

1.79

$

1.27

Diluted Earnings per Common Share

$

0.42

0.40

0.50

0.41

0.28

1.74

1.22

Dividends per Common Share

0.10

0.10

0.10

0.08

0.08

0.38

0.30

Book Value per Common Share

21.47

21.12

20.77

20.14

19.68

21.47

19.68

Tangible Book Value per Common Share (Non-GAAP)

17.31

16.96

16.60

15.86

15.34

17.31

15.34

Average Common Shares Outstanding

13,277,968

13,315,351

13,361,482

13,287,560

12,099,659

13,310,577

11,124,585

Average Diluted Shares Outstanding

13,638,168

13,669,370

13,740,937

13,653,125

12,521,017

13,670,777

11,545,943

End of Period Common Shares Outstanding

13,279,363

13,274,823

13,361,482

13,361,482

13,213,280

13,279,363

13,213,280

Annualized Performance Ratios

Return on Average Assets

1.04

%

1.02

%

1.30

%

1.09

%

0.75

%

1.11

%

0.84

%

Return on Average Equity

8.18

%

7.93

%

10.13

%

8.62

%

6.03

%

8.70

%

7.04

%

Net Interest Margin

4.08

%

4.10

%

4.19

%

4.01

%

4.07

%

4.10

%

4.02

%

Net Interest Spread

3.65

%

3.66

%

3.75

%

3.61

%

3.70

%

3.67

%

3.71

%

Efficiency Ratio (1)

66.50

%

67.16

%

59.85

%

64.35

%

73.51

%

64.37

%

71.78

%

Other Operating Expenses

Salaries and Employee Benefits

$

9,025

$

8,793

$

8,756

$

8,552

$

7,444

$

35,126

$

27,862

Occupancy and Bank Premises

920

1,230

1,079

1,103

877

4,332

3,509

Depreciation and Amortization

588

645

633

628

484

2,494

1,730

Data Processing

477

380

576

616

397

2,049

1,557

FDIC Assessment Fees

(15

)

(105

)

248

150

276

278

1,221

Legal and Other Professional Fees

302

346

353

318

456

1,319

1,695

Advertising and Promotions

385

544

279

327

422

1,535

1,239

Utilities and Communications

316

397

323

298

238

1,334

1,073

Ad Valorem Shares Tax

388

345

345

345

170

1,423

1,135

Directors' Fees

119

121

125

205

92

570

436

Other Real Estate Owned Expenses and Write-Downs

632

19

72

27

-

750

9

Merger and Conversion-Related Expenses

(1

)

350

235

(254

)

1,959

330

3,024

Other

2,067

1,813

1,553

1,475

1,594

6,908

5,758

Total Other Expenses

$

15,203

$

14,878

$

14,577

$

13,790

$

14,409

$

58,448

$

50,248

(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)

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands)

2019

2019

2019

2019

2018

Assets

Cash and Due From Banks

$

89,371

$

63,356

$

64,043

$

52,606

$

96,072

Federal Funds Sold

61,372

43,705

20,809

30,093

41,836

Securities Available for Sale, at Fair Values

278,193

288,231

294,981

304,122

309,516

Mortgage Loans Held for Sale

251

256

443

753

58

Loans and Lease Receivable

1,710,265

1,694,727

1,642,573

1,586,182

1,528,469

Allowance for Loan Losses

(12,124

)

(12,090

)

(11,603

)

(11,818

)

(11,220

)

Net Loans and Lease Receivable

1,698,141

1,682,637

1,630,970

1,574,364

1,517,249

Premises and Equipment, Net

29,280

27,092

27,577

27,014

15,114

Accrued Interest Receivable

8,025

7,513

7,957

7,054

8,223

Other Equity Securities

12,565

12,697

11,717

8,508

9,282

Other Real Estate Owned

4,036

2,326

2,324

1,683

1,909

Cash Value of Life Insurance

32,568

32,398

32,223

32,050

31,882

Deferred Taxes, Net

2,145

2,674

2,527

3,077

3,848

Goodwill

48,495

48,333

48,503

49,534

49,488

Core Deposit Intangible

6,694

6,916

7,139

7,655

7,885

Other Assets

2,699

2,706

2,395

2,887

2,534

Total Assets

$

2,273,835

$

2,220,840

$

2,153,608

$

2,101,400

$

2,094,896

Liabilities

Deposits:

Noninterest-Bearing

$

398,847

$

406,146

$

394,848

$

396,775

$

382,354

Interest-Bearing

1,383,163

1,327,244

1,308,054

1,347,608

1,351,580

Total Deposits

1,782,010

1,733,390

1,702,902

1,744,383

1,733,934

Securities Sold Under Agreements to Repurchase

67,989

31,037

16,096

11,070

12,229

Subordinated Debt

25,000

25,000

25,000

25,000

25,000

Federal Home Loan Bank Borrowings

93,000

128,000

108,000

30,000

55,000

Accrued Interest Payable

1,533

1,837

1,924

2,039

1,374

Other Liabilities

19,206

21,236

22,217

19,764

7,301

Total Liabilities

1,988,738

1,940,500

1,876,139

1,832,256

1,834,838

Shareholders' Equity

Common Stock

13,279

13,275

13,361

13,361

13,213

Additional Paid-In Capital

212,505

212,104

213,823

213,537

212,332

Retained Earnings

56,700

52,265

48,087

42,576

37,982

Accumulated Other Comprehensive Loss

2,613

2,696

2,198

(330

)

(3,469

)

Total Shareholders' Equity

285,097

280,340

277,469

269,144

260,058

Total Liabilities and Shareholders' Equity

$

2,273,835

$

2,220,840

$

2,153,608

$

2,101,400

$

2,094,896



Business First Bancshares, Inc.

Consolidated Statements of Income

(Unaudited)

Quarter Ended

Year Ended

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

(Dollars in thousands)

2019

2019

2019

2019

2018

2019

2018

Interest Income:

Interest and Fees on Loans

$

24,732

$

24,408

$

23,870

$

22,423

$

19,778

$

95,433

$

69,780

Interest and Dividends on Securities

1,739

1,783

1,829

1,874

1,611

7,225

5,834

Interest on Federal Funds Sold and Due From Banks

193

129

197

290

164

809

581

Total Interest Income

26,664

26,320

25,896

24,587

21,553

103,467

76,195

Interest Expense:

Interest on Deposits

4,908

5,050

5,038

4,757

3,853

19,753

11,833

Interest on Borrowings

1,129

1,012

665

710

583

3,516

2,133

Total Interest Expense

6,037

6,062

5,703

5,467

4,436

23,269

13,966

Net Interest Income

20,627

20,258

20,193

19,120

17,117

80,198

62,229

Provision for Loan Losses

192

479

1,302

633

939

2,606

2,390

Net Interest Income After Provision for Loan Losses

20,435

19,779

18,891

18,487

16,178

77,592

59,839

Other Income:

Service Charges on Deposit Accounts

1,028

1,035

1,034

938

869

4,035

2,810

Gain (Loss) on Sales of Securities

22

26

58

-

7

106

7

Other Income

1,206

861

3,127

1,373

1,615

6,567

4,962

Total Other Income

2,256

1,922

4,219

2,311

2,491

10,708

7,779

Other Expenses:

Salaries and Employee Benefits

9,025

8,793

8,756

8,552

7,444

35,126

27,862

Occupancy and Equipment Expense

1,715

2,135

1,884

1,894

1,523

7,628

5,865

Other Expenses

4,463

3,950

3,937

3,344

5,442

15,694

16,521

Total Other Expenses

15,203

14,878

14,577

13,790

14,409

58,448

50,248

Income Before Income Taxes

7,488

6,823

8,533

7,008

4,260

-

29,852

17,370

Provision for Income Taxes

1,729

1,312

1,690

1,349

815

6,080

3,279

Net Income

$

5,759

$

5,511

$

6,843

$

5,659

$

3,445

$

23,772

$

14,091



Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

Quarter Ended

December 31, 2019

September 30, 2019

December 31, 2018

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

$

1,698,947

$

24,732

5.82

%

$

1,664,283

$

24,408

5.87

%

$

1,383,526

$

19,778

5.72

%

Securities Available for Sale

290,034

1,739

2.40

%

297,121

1,783

2.40

%

270,511

1,611

2.38

%

Interest-Bearing Deposit in Other Banks

31,648

193

2.44

%

16,070

129

3.21

%

27,203

164

2.41

%

Total Interest-Earning Assets

2,020,629

26,664

5.28

%

1,977,474

26,320

5.32

%

1,681,240

21,553

5.13

%

Allowance for Loan Losses

(12,174

)

(11,783

)

(10,451

)

Noninterest-Earning Assets

200,727

191,068

156,809

Total Assets

$

2,209,182

$

26,664

$

2,156,759

$

26,320

$

1,827,598

$

21,553

Liabilities and Shareholders' Equity

Interest-Bearing Liabilities

Interest-Bearing Deposits

$

1,295,791

$

4,908

1.52

%

$

1,300,740

$

5,050

1.55

%

$

1,138,786

$

3,853

1.35

%

Subordinated Debt

25,000

422

6.75

%

25,000

422

6.75

%

8,333

69

3.31

%

Advances from Federal Home Loan Bank ("FHLB")

96,763

516

2.13

%

105,588

560

2.12

%

82,419

462

2.24

%

Other Borrowings

67,087

191

1.14

%

23,718

30

0.51

%

11,466

52

1.81

%

Total Interest-Bearing Liabilities

1,484,641

6,037

1.63

%

1,455,046

6,062

1.67

%

1,241,004

4,436

1.43

%

Noninterest-Bearing Liabilities

Noninterest-Bearing Deposits

$

419,231

398,748

349,915

Other Liabilities

23,721

24,937

8,183

Total Noninterest-Bearing Liabilities

442,952

423,685

358,098

Shareholders' Equity

281,589

278,028

228,496

Total Liabilities and Shareholders' Equity

$

2,209,182

$

2,156,759

$

1,827,598

Net Interest Spread

3.65

%

3.66

%

3.70

%

Net Interest Income

$

20,627

$

20,258

$

17,117

Net Interest Margin

4.08

%

4.10

%

4.07

%

Overall Cost of Funds

1.27

%

1.31

%

1.12

%

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



Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

For the Year Ended December 31,

2019

2018

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

$

1,628,803

$

95,433

5.86

%

$

1,258,178

$

69,780

5.55

%

Securities Available for Sale

300,038

7,225

2.41

%

258,153

5,834

2.26

%

Interest-Bearing Deposit in Other Banks

27,878

809

2.90

%

31,475

581

1.85

%

Total Interest-Earning Assets

1,956,719

103,467

5.29

%

1,547,806

76,195

4.92

%

Allowance for Loan Losses

(11,762

)

(9,749

)

Noninterest-Earning Assets

191,124

144,120

Total Assets

$

2,136,081

$

103,467

$

1,682,177

$

76,195

Liabilities and Shareholders' Equity

Interest-Bearing Liabilities

Interest-Bearing Deposits

$

1,316,896

$

19,753

1.50

%

$

1,051,932

$

11,833

1.12

%

Subordinated Debt

25,000

1,688

6.75

%

2,083

69

3.31

%

Advances from Federal Home Loan Bank ("FHLB")

69,183

1,581

2.29

%

84,187

1,849

2.20

%

Other Borrowings

29,419

247

0.84

%

17,766

215

1.21

%

Total Interest-Bearing Liabilities

1,440,498

23,269

1.62

%

1,155,968

13,966

1.21

%

Noninterest-Bearing Liabilities

Noninterest-Bearing Deposits

402,147

319,623

Other Liabilities

20,231

6,393

Total Noninterest-Bearing Liabilities

422,378

326,016

Shareholders' Equity

273,205

200,193

Total Liabilities and Shareholders' Equity

$

2,136,081

$

1,682,177

Net Interest Spread

3.67

%

3.71

%

Net Interest Income

$

80,198

$

62,229

Net Interest Margin

4.10

%

4.02

%

Overall Cost of Funds

1.26

%

0.95

%

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)

December 31,

September 30,

June 30,

March 31,

December 31,

(Dollars in thousands, except per share data)

2019

2019

2019

2019

2018

Tangible Common Equity

Total Shareholders' Equity

$

285,097

$

280,340

$

277,469

$

269,144

$

260,058

Adjustments:

Goodwill

(48,495

)

(48,333

)

(48,503

)

(49,534

)

(49,488

)

Core Deposit Intangible

(6,694

)

(6,916

)

(7,139

)

(7,655

)

(7,885

)

Total Tangible Common Equity

$

229,908

$

225,091

$

221,827

$

211,955

$

202,685

Tangible Assets

Total Assets

$

2,273,835

$

2,220,840

$

2,153,608

$

2,101,400

$

2,094,896

Adjustments:

Goodwill

(48,495

)

(48,333

)

(48,503

)

(49,534

)

(49,488

)

Core Deposit Intangible

(6,694

)

(6,916

)

(7,139

)

(7,655

)

(7,885

)

Total Tangible Assets

$

2,218,646

$

2,165,591

$

2,097,966

$

2,044,211

$

2,037,523

Common Shares Outstanding

13,279,363

13,274,823

13,361,482

13,361,482

13,213,280

Book Value per Common Share

$

21.47

$

21.12

$

20.77

$

20.14

$

19.68

Tangible Book Value per Common Share

$

17.31

$

16.96

$

16.60

$

15.86

$

15.34

Common Equity to Total Assets

12.54

%

12.62

%

12.88

%

12.81

%

12.41

%

Tangible Common Equity to Tangible Assets

10.36

%

10.39

%

10.57

%

10.37

%

9.95

%


Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

Quarter Ended

Year Ended

December 31,

September 30,

June 30,

March 31,

December 31,

December 31,

December 31,

(Dollars in thousands, except per share data)

2019

2019

2019

2019

2018

2019

2018

Core Net Income

Net Income

$

5,759

$

5,511

$

6,843

$

5,659

$

3,445

$

23,772

$

14,091

Adjustments: (1)

Noninterest Income

Sale of Impaired Credit

-

-

(91

)

-

(87

)

(91

)

(87

)

Tax Impact

-

-

19

-

18

19

18

(Gains) Losses on Former Bank Premises and Equipment

125

594

-

-

(494

)

719

(355

)

Tax Impact

(26

)

(125

)

-

-

104

(151

)

75

(Gains) Losses on Sale of Securities

(22

)

(26

)

(58

)

-

(7

)

(106

)

(7

)

Tax Impact

5

5

12

-

1

22

1

(Gains) Losses on Sale of Banking Center

-

12

(593

)

-

-

(581

)

-

Tax Impact

216

(3

)

125

-

-

338

-

Noninterest Expense

Early Lease Termination Penalty

-

87

-

-

-

87

-

Tax Impact

-

(18

)

-

-

-

(18

)

-

Employee Share Awards – NASDAQ Listing

-

-

-

-

-

-

118

Tax Impact

-

-

-

-

-

-

(25

)

Acquisition-Related Expenses (2)

76

288

436

(50

)

2,132

750

3,568

Tax Impact

(11

)

(60

)

(91

)

16

(410

)

(147

)

(623

)

Core Net Income

$

6,121

$

6,265

$

6,602

$

5,625

$

4,702

$

24,614

$

16,774

Average Common Shares Outstanding

13,277,968

13,315,351

13,361,482

13,287,560

12,099,659

13,310,577

11,124,585

Average Diluted Shares Outstanding

13,638,168

13,669,370

13,740,937

13,653,125

12,521,017

13,670,777

11,545,943

Earnings per Share - Basic

$

0.43

$

0.41

$

0.51

$

0.43

$

0.28

$

1.79

$

1.27

Earnings per Share - Diluted

$

0.42

$

0.40

$

0.50

$

0.41

$

0.28

$

1.74

$

1.22

Core Earnings per Share – Basic

$

0.46

$

0.47

$

0.49

$

0.42

$

0.39

$

1.85

$

1.51

Core Earnings per Share – Diluted

$

0.45

$

0.46

$

0.48

$

0.41

$

0.38

$

1.80

$

1.45

Total Quarterly/Year-to-Date Average Assets

$

2,209,182

$

2,156,759

$

2,102,692

$

2,075,683

$

1,827,598

$

2,136,081

$

1,682,177

Total Quarterly/Year-to-Date Average Equity

$

281,589

$

278,028

$

270,262

$

262,681

$

228,496

$

273,205

$

200,193

Return on Average Assets

1.04

%

1.02

%

1.30

%

1.09

%

0.75

%

1.11

%

0.84

%

Return on Average Equity

8.18

%

7.93

%

10.13

%

8.62

%

6.03

%

8.70

%

7.04

%

Core Return on Average Assets

1.11

%

1.16

%

1.26

%

1.08

%

1.03

%

1.15

%

1.00

%

Core Return on Average Equity

8.69

%

9.01

%

9.77

%

8.57

%

8.23

%

9.01

%

8.38

%

Core Efficiency Ratio

Noninterest Expense

15,203

14,878

14,577

13,790

14,409

58,448

50,248

Core Adjustments

(76

)

(375

)

(436

)

50

(2,132

)

(837

)

(3,686

)

Net Interest and Noninterest Income (3)

22,861

22,154

24,354

21,431

19,601

90,800

70,001

Core Adjustments

125

606

(684

)

-

(581

)

47

(442

)

Efficiency Ratio

66.50

%

67.16

%

59.85

%

64.35

%

73.51

%

64.37

%

71.78

%

Core Efficiency Ratio

65.81

%

63.72

%

59.74

%

64.58

%

64.55

%

63.42

%

66.94

%

Net Interest Income

Net Interest Income

$

20,627

$

20,258

$

20,193

$

19,120

$

17,117

$

80,198

$

62,229

Adjustments:

Loan Discount Accretion

(800

)

(544

)

(826

)

(432

)

(283

)

(2,602

)

(1,278

)

Net Interest Income Excluding Loan Discount Accretion

$

19,827

$

19,714

$

19,367

$

18,688

$

16,834

$

77,596

$

60,951

Total Average Interest-Earnings Assets

$

2,020,629

$

1,977,474

$

1,929,035

$

1,904,870

$

1,681,240

$

1,956,719

$

1,547,806

Net Interest Margin (4)

4.08

%

4.10

%

4.19

%

4.01

%

4.07

%

4.10

%

4.02

%

Net Interest Margin Excluding Loan Discount Accretion (4)

3.92

%

3.99

%

4.02

%

3.92

%

4.01

%

3.97

%

3.94

%

Net Interest Spread

3.65

%

3.66

%

3.75

%

3.61

%

3.70

%

3.67

%

3.71

%

Net Interest Spread Excluding Loan Discount Accretion

3.49

%

3.55

%

3.58

%

3.52

%

3.63

%

3.54

%

3.63

%

(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21% for 2019 and 2018. These rates approximated the marginal tax rates.

(2) Includes merger and conversion-related expenses and salary and employee benefits.

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

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

Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com