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Business First Bancshares, Inc. (BFST)

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Previous Close23.94
Open23.87
Bid24.11 x 1000
Ask24.30 x 1300
Day's Range23.87 - 24.35
52 Week Range10.00 - 24.87
Volume11,684
Avg. Volume40,690
Market Cap504.655M
Beta (5Y Monthly)0.89
PE Ratio (TTM)12.97
EPS (TTM)1.87
Earnings DateJul 27, 2021 - Aug 02, 2021
Forward Dividend & Yield0.48 (2.01%)
Ex-Dividend DateMay 13, 2021
1y Target Est28.13
  • Business First (BFST) Q1 Earnings and Revenues Top Estimates
    Zacks

    Business First (BFST) Q1 Earnings and Revenues Top Estimates

    Business First (BFST) delivered earnings and revenue surprises of 5.17% and 2.53%, respectively, for the quarter ended March 2021. Do the numbers hold clues to what lies ahead for the stock?

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

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

    BATON ROUGE, La., April 22, 2021 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended March 31, 2021, including net income of $12.3 million, or $0.59 per diluted share, a decrease of $1.5 million and $0.08, respectively, from prior quarter ended December 31, 2020. On a non-GAAP basis, core net income for the quarter ended March 31, 2021, which excludes certain income and expenses, was $12.6 million, or $0.61 per diluted share, a decrease of $1.5 million and $0.07, respectively, from prior quarter ended December 31, 2020. “2021 has gotten off to a fast start for b1BANK,” said Jude Melville, president and CEO. “Growth in our earnings power reflects successful integration of the significant merger we conducted in 2020, the additions to our board speak to our credibility as active participants in our community, and continued strong asset quality and stable NIM demonstrate our focus on the health of our portfolio even during a time of significant expansion. We’re especially excited about our acquisition of SSW and the capability that partnership gives us to more thoroughly serve our clients in the coming years.” On April 22, 2021, Business First’s board of directors declared a quarterly dividend based upon financial performance for the first quarter in the amount of $0.12 per share, an increase of $0.02 from the prior quarter, to the common shareholders of record as of May 15, 2021. The dividend will be paid on May 31, 2021, or as soon thereafter as practicable. Quarterly Highlights Smith Shellnut Wilson, LLC (SSW) Acquisition. On March 22, 2021, Business First, through b1BANK, entered into a definitive agreement to acquire SSW, a registered investment advisor with approximately $3.5 billion in assets under management, specializing in managing investment portfolios for corporations, foundations and individuals. The acquisition of SSW was subsequently completed on April 1, 2021.Subordinated Debt Issuance. On March 26, 2021, Business First issued $52.5 million in aggregate principal amount of its 4.250% fixed-to-floating subordinated notes due 2031. The subordinated notes were issued to certain qualified institutional buyers and institutional accredited investors in a private placement transaction that was exempt from registration under the Securities Act of 1933, as amended.Corporate Actions. Business First and b1BANK appointed John Ducrest, former Commissioner of the Louisiana Office of Financial Institutions (OFI) and immediate former Commissioner of Securities for the state of Louisiana, and Drew Brees, former quarterback of the New Orleans Saints, to their respective boards of directors during the quarter ended March 31, 2021. Small Business Administration (SBA) Paycheck Protection Program (PPP), Round 2. Business First has funded approximately 1,500 loans with an aggregate outstanding principal balance of $188.5 million under round 2 of the SBA PPP. Additionally, Business First will recognize approximately $8.6 million in fees associated with origination of these loans over their lives.Net Interest Margin and Spread. Net interest margin decreased from 4.26% for the quarter ended December 31, 2020, to 4.23% for the quarter ended March 31, 2021, while net interest spread increased from 4.03% to 4.06% for the quarters ended December 31, 2020, and March 31, 2021, respectively. Excluding loan discount accretion, non-GAAP net interest margin and spread were 3.91% and 3.73%, respectively, for the quarter ended March 31, 2021, compared to 3.99% and 3.75% for the quarter ended December 31, 2020. Financial Condition March 31, 2021, Compared to December 31, 2020 Loans Loans held for investment increased $50.6 million, or 1.69 % (6.77 % annualized), for the quarter ended March 31, 2021. The increase was largely attributable to a net increase in SBA PPP loans (round 2) within the commercial portfolio of $71.9 million. Excluding the net increase in SBA PPP loans, total loans held for investment declined for the quarter ended March 31, 2021, by (0.74) %, or (2.96) % annualized. As of March 31, 2021, SBA PPP loans with a principal balance of $385.9 million remain outstanding. Business First has not identified any unusual customer usage of unfunded commitments since the beginning of the COVID-19 pandemic in March 2020. Credit Quality Nonperforming loans as a percentage of total loans held for investment increased from 0.35% as of December 31, 2020, to 0.44% as of March 31, 2021. Nonperforming assets as a percentage of total assets increased from 0.48% as of December 31, 2020, to 0.52% as of March 31, 2021. The increase in both metrics was largely attributable to a single, energy-related loan with an outstanding balance of $1.9 million migrating to nonaccrual during the quarter ended March 31, 2021. Cash and Securities Available for Sale Cash, including federal funds sold, and securities available for sale increased by $137.6 million and $80.6 million, respectively, from the quarter ended December 31, 2020. The increases were largely attributable to the subordinated debt issuance on March 26, 2021, (which increased cash by approximately $41.4 million after repaying existing Business First outstanding debt), SBA PPP forgiveness reimbursements ($118.1 million), and increased municipal deposits ($85.4 million) which occurred during the quarter ended March 31, 2021. Subordinated Debt On March 26, 2021, Business First successfully completed a private placement of $52.5 million in aggregate principal amount of its 4.250% fixed-to-floating subordinated notes due 2031, callable by Business First beginning March 2026. The notes qualify for Tier 2 capital treatment for Business First for regulatory capital purposes. Total Shareholders’ Equity Book value per common share was $20.03 at March 31, 2021, compared to $19.88 at December 31, 2020. On a non-GAAP basis, tangible book value per share was $16.99 at March 31, 2021, compared to $16.80 at December 31, 2020. The increase was largely attributable to net income for the quarter less dividends distributed based on Q4 2020 performance. March 31, 2021, Compared to March 31, 2020 Loans Total loans held for investment increased by $1.3 billion compared to March 31, 2020, or 71.73%, due primarily to the acquisition of Pedestal and origination of SBA PPP loans. Credit Quality Nonperforming loans as a percentage of total loans held for investment decreased from 0.57% as of March 31, 2020, to 0.44% as of March 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.59% as of March 31, 2020, to 0.52% as of March 31, 2021. The decreases were largely attributable to an increase in overall total loans held for investment and total assets from the acquisition of Pedestal and SBA PPP activity. Total Shareholders’ Equity Book value per common share was $20.03 at March 31, 2021, compared to $21.58 at March 31, 2020. On a non-GAAP basis, tangible book value per share was $16.99 at March 31, 2021, compared to $17.38 at March 31, 2020. The decreases were attributable to the initial book value dilution caused by the acquisition of Pedestal during the quarter ended June 30, 2020. Results of Operations First Quarter 2021 Compared to Fourth Quarter 2020 Net Income and Diluted Earnings Per Share For the quarter ended March 31, 2021, net income was $12.3 million, or $0.59 per diluted share, compared to net income of $13.8 million, or $0.67 per diluted share, for the quarter ended December 31, 2020. The decreases, $1.5 million and $0.08, respectively, were largely attributable to a reduction in gain on sale of loans, primarily attributable to the $4.4 million gain recognized from sales of loans originated under the Main Street Lending Program in the quarter ended December 31, 2020, offset by decreases in other expense due to extinguishment of Federal Home Loan Bank (FHLB) borrowings, of $2.4 million, and $842,000 in interest expense. On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2021, was $12.6 million, or $0.61 per diluted share, compared to core net income of $14.1 million, or $0.68 per diluted share, for the quarter ended December 31, 2020. Notable noncore events impacting earnings for the quarter ended March 31, 2021, included the incurrence of $350,000 in occupancy and bank premises expenses attributable to hurricane damage, compared to the incurrence of $568,000 in acquisition-related expenses and $158,000 in gains attributed to former bank premises and equipment in other income for the quarter ended December 31, 2020. Interest Income For the quarter ended March 31, 2021, net interest income totaled $40.3 million and net interest margin and net interest spread were 4.23% and 4.06%, respectively, compared to $39.6 million, 4.26% and 4.03% for the quarter ended December 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.53% for the quarter ended March 31, 2021, compared to 5.59% for the quarter ended December 31, 2020. The average yield on total interest-earning assets was 4.65% for the quarter ended March 31, 2021, compared to 4.78% for the quarter ended December 31, 2020. The reduction in interest income was largely attributable to less days and lower yields, $1.0 million less interest income attributable to non-SBA PPP loans, offset by additional accelerated recognition of SBA PPP net loan origination fees due to forgiveness, $0.7 million, for the quarter ended March 31, 2021. Net interest margin and net interest spread were positively impacted for the quarter ended March 31, 2021, by an additional $496,000 in loan discount accretion, 5 and 6 basis points, respectively, and an additional $777,000 in SBA PPP origination fees, 8 and 9 basis points, respectively, and a reduction in the overall cost of funds (which includes noninterest-bearing deposits). The average loan yield (excluding SBA PPP loans) was impacted by the origination of loans at lower rates than payoffs during the quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $3.1 million) were 3.91% and 3.73%, respectively, for the quarter ended March 31, 2021, compared to 3.99% and 3.75% (excluding loan discount accretion of $2.6 million) for the quarter ended December 31, 2020. Interest Expense For the quarter ended March 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 12 basis points, from 0.53% to 0.41%, compared to the quarter ended December 31, 2020. The decrease in cost of funds was largely attributable to the continuous repricing of maturing certificates of deposit, as well as the repricing of selected non-maturity deposits, and the impact of Business First’s extinguishment of certain FHLB borrowings in December 2020. Other Income For the quarter ended December 31, 2020, other income was impacted by a $4.4 million increase in gain on sale of loans primarily associated with the Main Street Lending Program, which accounted for the majority of the $4.5 million decrease in other income during the quarter ended March 31, 2021. Other Expenses For the quarter ended December 31, 2020, other expenses were impacted by a loss on early extinguishment of FHLB borrowings, resulting in a net loss of $2.4 million, which accounted for the majority of the $2.6 million decrease in other expense during the quarter ended March 31, 2021. Provision for Loan Losses During the quarter ended March 31, 2021, Business First recorded a provision for loan losses of $3.4 million, compared to $2.1 million for the quarter ended December 31, 2020. The increase for the quarter ended March 31, 2021, was driven primarily by the additional reserves ($1. 4 million) required on a $1.9 million energy-related loan which was transferred to nonaccrual during the quarter, as well as additional reserves necessary on acquired loans. Return on Assets and Equity Return on average assets and equity, each on an annualized basis, were 1.15% and 11.86%, respectively, for the quarter ended March 31, 2021, compared to 1.37% and 13.86%, respectively, for the quarter ended December 31, 2020. Both returns were negatively impacted by lower net income for the quarter ended March 31, 2021. First Quarter 2021 Compared to First Quarter 2020 Net Income and Diluted Earnings Per Share For the quarter ended March 31, 2021, net income was $12.3 million, or $0.59 per diluted share, compared to net income of $4.5 million, or $0.34 per diluted share, for the quarter ended March 31, 2020. The increases in net income and diluted earnings per share were largely attributable to the increases in net interest income and other income related to the acquisition of Pedestal on May 1, 2020, as well as the SBA PPP loans and lower costs of funds, offset by increases in the provision for loan losses and additional expenses associated with the acquisition of Pedestal. On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2021, was $12.6 million, or $0.61 per diluted share, compared to core net income of $5.0 million, or $0.37 per diluted share, for the quarter ended March 31, 2020. Notable noncore events impacting earnings for the quarter ended March 31, 2021, included the incurrence of $350,000 in occupancy and bank premises expenses attributable to hurricane damage, compared to the incurrence of $126,000 in gains associated with the disposal of former bank premises and equipment in other income and $1.2 million in acquisition-related expenses during the quarter ended March 31, 2020. Interest Income For the quarter ended March 31, 2021, net interest income totaled $40.3 million and net interest margin and net interest spread were 4.23% and 4.06%, respectively, compared to compared to $20.2 million, 3.93% and 3.55% for the quarter ended March 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.53% for the quarter ended March 31, 2021, compared to 5.55% for the quarter ended March 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was positively impacted for the quarter ended March 31, 2021, by an additional $2.8 million in loan discount accretion, which accounted for 42 basis points. The increase in interest income was largely attributable to higher average balances due to the Pedestal acquisition, origination of SBA PPP loans, and larger loan purchase discount accretion. Average yield on total interest-earning assets, net interest margin, and net interest spread were impacted for the quarter ended March 31, 2021, by the federal funds rate cuts of 150 basis points, which occurred late in the first quarter of 2020, as well as the subsequent impacts of the COVID-19 pandemic on the yield curve. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $3.1 million) were 3.91% and 3.73%, respectively, for the quarter ended March 31, 2021, compared to 3.88% and 3.49% (excluding loan discount accretion of $290,000) for the quarter ended March 31, 2020. Interest Expense For the quarter ended March 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 79 basis points, from 1.20% to 0.41%, compared to the quarter ended March 31, 2020. The decrease in cost of funds was partially attributable to the accretion of deposit and FHLB premiums associated with the Pedestal acquisition, $715,000 or 8 basis points, and the strategic extinguishment of FHLB advances which occurred in the quarter ended December 31, 2020, but primarily attributable to an overall reduction in interest rates on deposit offerings and the lower-yielding deposit portfolio acquired from Pedestal. Other Income For the quarter ended March 31, 2021, the increase in other income was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020, compared to the quarter ended March 31, 2020. Other Expenses For the quarter ended March 31, 2021, the increase in other expense was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020, compared to the quarter ended March 31, 2020. Provision for Loan Losses During the quarter ended March 31, 2021, Business First recorded a provision for loan losses of $3.4 million compared to $1.4 million for the quarter ended March 31, 2020. The increase for the quarter ended March 31, 2021, was impacted by the additional reserves ($1.4 million) required on a $1.9 million energy-related loan which was transferred to nonaccrual during the quarter, as well as additional reserves necessary on acquired loans. Return on Assets and Equity Return on average assets and return on average equity, each on an annualized basis, were 1.15% and 11.86%, respectively, for the quarter ended March 31, 2021, from 0.80% and 6.31%, respectively, for the quarter ended March 31, 2020. Both returns were positively impacted by higher net income for the quarter ended March 31, 2021. About Business First Bancshares, Inc. Business First Bancshares, Inc., through its banking subsidiary b1BANK operates 43 banking centers in markets across Louisiana and in the Dallas, Texas area. b1BANK provides commercial and personal banking, treasury management and wealth solutions services to small to midsize businesses and their owners and employees. Visit www.b1BANK.com for more information. Business First’s common stock is traded on the NASDAQ Global Select Market under the symbol “BFST.” Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures (e.g., referenced as “core”) intended to supplement, not substitute for, comparable GAAP measures. These measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below. Special Note Regarding Forward-Looking Statements Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. Actual results will also be significantly impacted by the effects of the ongoing COVID-19 pandemic, including, among other effects: the impact of the public health crisis; the extent and duration of closures of businesses, including our branches, vendors and customers; the operation of financial markets; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; the adequacy of our allowance for loan losses in relation to potential losses in our loan portfolio; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release. Additional Information For additional information on Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.sec.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary. No Offer or Solicitation This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of the Company. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Misty Albrechtb1BANK225.286.7879Misty.Albrecht@b1BANK.com Business First Bancshares, Inc.Selected Financial Information(Unaudited) March 31,December 31,March 31,(Dollars in thousands)202120202020 Balance Sheet Ratios Loans (HFI) to Deposits78.83%82.71%98.26%Shareholders' Equity to Assets Ratio9.38%9.85%12.33% Loans Receivable Held for Investment Commercial (1)$962,099 $886,325 $431,992 Real Estate: Construction and Land 418,234 403,065 260,836 Farmland 52,861 55,883 53,900 1-4 Family Residential 460,907 468,650 295,876 Multi-Family Residential 77,390 95,707 32,859 Nonfarm Nonresidential 966,416 971,603 623,114 Total Real Estate 1,975,808 1,994,908 1,266,585 Consumer (1) 104,071 110,122 72,803 Total Loans (Held for Investment)$3,041,978 $2,991,355 $1,771,380 Allowance for Loan Losses Balance, Beginning of Period$22,024 $20,340 $12,124 Charge-offs – Quarterly (309) (715) (194)Recoveries – Quarterly 177 265 22 Provision for Loan Losses – Quarterly 3,359 2,134 1,367 Balance, End of Period$25,251 $22,024 $13,319 Allowance for Loan Losses to Total Loans (HFI)0.83%0.74%0.75%Net Charge-offs (Recoveries) to Average Total Loans0.00%0.01%0.01% Remaining Loan Purchase Discount $32,517 $35,580 $3,246 Nonperforming Assets Nonperforming Loans: Nonaccrual Loans (2)$11,956 $9,063 $9,301 Loans Past Due 90 Days or More (2) 1,479 1,523 834 Total Nonperforming Loans 13,435 10,586 10,135 Other Nonperforming Assets: Other Real Estate Owned 8,851 9,051 3,281 Other Nonperforming Assets: 623 402 11 Total Other Nonperforming Assets 9,474 9,453 3,292 Total Nonperforming Assets$22,909 $20,039 $13,427 Nonperforming Loans to Total Loans (HFI)0.44%0.35%0.57%Nonperforming Assets to Total Assets0.52%0.48%0.59% (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $385.8 million and $0.1 million of the Commercial and Consumer portfolios, respectively, as of March 31, 2021. SBA PPP loans accounted for $313.9 million and $1.6 million of the Commercial and Consumer portfolios, respectively, as of December 31, 2020.(2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. Business First Bancshares, Inc.Selected Financial Information(Unaudited) Three Months Ended March 31,December 31,March 31,(Dollars in thousands, except per share data)202120202020 Per Share Data Basic Earnings per Common Share$ 0.60 $ 0.67 $ 0.34 Diluted Earnings per Common Share 0.59 0.67 $ 0.34 Dividends per Common Share 0.10 0.10 0.10 Book Value per Common Share 20.03 19.88 21.58 Average Common Shares Outstanding 20,621,930 20,590,239 13,313,154 Average Diluted Shares Outstanding 20,738,013 20,726,648 13,367,276 End of Period Common Shares Outstanding 20,804,753 20,621,437 13,067,987 Annualized Performance Ratios Return on Average Assets1.15%1.37%0.80%Return on Average Equity11.86%13.86%6.31%Net Interest Margin4.23%4.26%3.93%Net Interest Spread4.06%4.03%3.55%Efficiency Ratio (1)59.40%60.27%72.39% Total Quarterly/Year-to-Date Average Assets$ 4,276,430 $ 4,029,660 $ 2,244,584 Total Quarterly/Year-to-Date Average Equity 415,896 399,332 285,338 Other Expenses Salaries and Employee Benefits$ 14,926 $ 14,908 $ 9,435 Occupancy and Bank Premises 1,811 1,525 1,060 Depreciation and Amortization 1,593 1,338 601 Data Processing 1,823 1,967 652 FDIC Assessment Fees 509 595 147 Legal and Other Professional Fees 741 626 394 Advertising and Promotions 477 645 306 Utilities and Communications 575 617 317 Ad Valorem Shares Tax 700 850 375 Directors' Fees 188 173 74 Other Real Estate Owned Expenses and Write-Downs 379 132 253 Merger and Conversion-Related Expenses 10 548 1,148 Other 3,231 5,678 1,881 Total Other Expenses$ 26,963 $ 29,602 $ 16,643 Other Income Service Charges on Deposit Accounts$ 1,567 $ 1,672 $ 931 Gain (Loss) on Sales of Securities (5) 15 25 Debit card and ATM Fee Income 1,336 1,555 407 Bank-Owned Life Insurance Income 318 251 197 Gain (Loss) on Sales of Loans (21) 4,413 177 Mortgage Origination Income 229 208 115 Brokerage Commission 543 433 20 Correspondent Bank Income 143 49 109 Participation Fee Income 247 114 68 Gain on Sales of Other Real Estate Owned 46 199 151 Gain on Disposal of Other Assets 117 51 14 Pass-through Income from SBIC Partnerships 53 170 380 Other 510 417 210 Total Other Income$ 5,083 $ 9,547 $ 2,804 (1) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities. Business First Bancshares, Inc.Consolidated Balance Sheets(Unaudited) March 31,December 31,March 31,(Dollars in thousands)202120202020 Assets Cash and Due From Banks$ 355,257 $ 149,131 $ 80,109 Federal Funds Sold 105,595 174,152 29,135 Securities Available for Sale, at Fair Values 721,224 640,605 275,115 Mortgage Loans Held for Sale 2,298 969 868 Loans and Lease Receivable 3,041,978 2,991,355 1,771,380 Allowance for Loan Losses (25,251) (22,024) (13,319)Net Loans and Lease Receivable 3,016,727 2,969,331 1,758,061 Premises and Equipment, Net 57,931 58,593 29,656 Accrued Interest Receivable 25,910 23,895 7,724 Other Equity Securities 12,584 12,693 11,721 Other Real Estate Owned 8,851 9,051 3,281 Cash Value of Life Insurance 60,348 45,030 32,765 Deferred Taxes, Net 5,536 5,858 1,800 Goodwill 53,753 53,862 48,495 Core Deposit Intangible 9,406 9,734 6,471 Other Assets 8,166 7,456 2,461 Total Assets$ 4,443,586 $ 4,160,360 $ 2,287,662 Liabilities Deposits Noninterest-Bearing$ 1,186,625 $ 1,164,139 $ 417,534 Interest-Bearing 2,672,109 2,452,540 1,385,274 Total Deposits 3,858,734 3,616,679 1,802,808 Securities Sold Under Agreements to Repurchase 21,419 21,825 14,728 Short-Term Borrowings 20 5,020 5,000 Long-Term Borrowings - 6,000 - Subordinated Debt 77,500 25,000 25,000 Subordinated Debt - Trust Preferred Securities 5,000 5,000 - Federal Home Loan Bank Borrowings 33,073 43,145 138,000 Accrued Interest Payable 1,941 2,499 1,573 Other Liabilities 29,198 25,229 18,523 Total Liabilities 4,026,885 3,750,397 2,005,632 Shareholders' Equity Common Stock 20,805 20,621 13,068 Additional Paid-In Capital 300,282 299,540 206,966 Retained Earnings 89,441 79,174 59,859 Accumulated Other Comprehensive Income 6,173 10,628 2,137 Total Shareholders' Equity 416,701 409,963 282,030 Total Liabilities and Shareholders' Equity$ 4,443,586 $ 4,160,360 $ 2,287,662 Business First Bancshares, Inc.Consolidated Statements of Income(Unaudited) Three Months Ended March 31, December 31,March 31,(Dollars in thousands)2021 20202020 Interest Income: Interest and Fees on Loans$ 41,419 $ 41,762$ 24,143Interest and Dividends on Securities 2,802 2,572 1,731Interest on Federal Funds Sold and Due From Banks 41 53 142Total Interest Income 44,262 44,387 26,016 Interest Expense: Interest on Deposits 3,243 3,736 4,686Interest on Borrowings 718 1,067 1,119Total Interest Expense 3,961 4,803 5,805 Net Interest Income 40,301 39,584 20,211 Provision for Loan Losses: 3,359 2,134 1,367 Net Interest Income After Provision for Loan Losses 36,942 37,450 18,844 Other Income: Service Charges on Deposit Accounts 1,567 1,672 931Gain (Loss) on Sales of Securities (5) 15 25Gain (Loss) on Sales of Loans (21) 4,413 177Other Income 3,542 3,447 1,671Total Other Income 5,083 9,547 2,804 Other Expenses: Salaries and Employee Benefits 14,926 14,908 9,435Occupancy and Equipment Expense 3,717 3,373 1,891Merger and Conversion-Related Expense 10 548 1,148Other Expenses 8,310 10,773 4,169Total Other Expenses 26,963 29,602 16,643 Income Before Income Taxes: 15,062 17,395 5,005 Provision for Income Taxes: 2,733 3,561 506 Net Income:$ 12,329 $ 13,834$ 4,499 Business First Bancshares, Inc.Consolidated Net Interest Margin(Unaudited) Three Months Ended March 31, 2021 December 31, 2020 March 31, 2020 Average Average Average OutstandingInterest Earned /Average OutstandingInterest Earned /Average OutstandingInterest Earned /Average(Dollars in thousands)BalanceInterest PaidYield / Rate BalanceInterest PaidYield / Rate BalanceInterest PaidYield / Rate Assets Interest-Earning Assets: Total Loans (Excluding SBA PPP)$ 2,643,668 $ 36,5385.53% $ 2,685,093 $ 37,5095.59% $ 1,740,189 $ 24,1435.55%SBA PPP Loans 374,958 4,8815.21% 365,058 $ 4,2534.66% - -0.00%Securities Available for Sale 691,476 2,8021.62% 603,192 2,5721.71% 286,660 1,7312.42%Interest-Bearing Deposit in Other Banks 101,233 410.16% 61,485 530.34% 28,754 1421.98%Total Interest-Earning Assets 3,811,335 44,2624.65% 3,714,828 44,3874.78% 2,055,603 26,0165.06%Allowance for Loan Losses (22,709) (21,020) (12,203) Noninterest-Earning Assets 487,804 335,852 201,184 Total Assets$ 4,276,430 $ 44,262 $ 4,029,660 $ 44,387 $ 2,244,584 $ 26,016 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-Bearing Deposits$ 2,584,263 $ 3,2430.50% $ 2,313,511 $ 3,7360.65% $ 1,342,213 $ 4,6861.40%Subordinated Debt 28,450 4596.45% 25,000 4226.75% 25,000 4226.75%Subordinated Debt - Trust Preferred Securities 5,000 423.36% 5,000 423.36% - -0.00%Advances from Federal Home Loan Bank (FHLB) 37,022 1111.20% 105,640 4071.54% 98,323 4972.02%Paycheck Protection Program Liquidity Facility (PPPLF) - -0.00% 79,450 700.35% - -0.00%Other Borrowings 31,696 1061.34% 37,605 1261.34% 67,125 2001.19%Total Interest-Bearing Liabilities 2,686,431 3,9610.59% 2,566,206 4,8030.75% 1,532,661 5,8051.52% Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits$ 1,146,950 $ 1,033,593 $ 406,035 Other Liabilities 27,153 30,529 20,550 Total Noninterest-Bearing Liabilities 1,174,103 1,064,122 426,585 Shareholders' Equity: 415,896 399,332 285,338 Total Liabilities and Shareholders' Equity$ 4,276,430 $ 4,029,660 $ 2,244,584 Net Interest Spread 4.06% 4.03% 3.55%Net Interest Income $ 40,301 $ 39,584 $ 20,211 Net Interest Margin 4.23% 4.26% 3.93% Overall Cost of Funds 0.41% 0.53% 1.20% NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention. Business First Bancshares, Inc.Non-GAAP Measures(Unaudited) Three Months Ended March 31,December 31,March 31,(Dollars in thousands, except per share data)202120202020 Interest Income: Interest income$44,262 $44,387 $26,016 Core interest income44,262 44,387 26,016 Interest Expense: Interest expense3,961 4,803 5,805 Core interest expense3,961 4,803 5,805 Provision for Loan Losses: (b) Provision for loan losses3,359 2,134 1,367 Core provision expense3,359 2,134 1,367 Other Income: Other income5,083 9,547 2,804 (Gains) 1osses on former bank premises and equipment - (158)(126)(Gains) 1osses on sale of securities5 (15)(25)Core other income5,088 9,374 2,653 Other Expense: Other expense26,963 29,602 16,643 Acquisition-related expenses (2)(10)(568)(1,212)Stock option exercises - excess taxes (founder's grants)- - (71)Occupancy and bank premises - hurricane repair(350)- - Core other expense26,603 29,034 15,360 Pre-Tax Income: (a) Pre-tax income15,062 17,395 5,005 (Gains) 1osses on former bank premises and equipment - (158)(126)(Gains) 1osses on sale of securities5 (15)(25)Acquisition-related expenses (2)10 568 1,212 Stock option exercises - excess taxes (founder's grants)- - 71 Occupancy and bank premises - hurricane repair350 - - Core pre-tax income15,427 17,790 6,137 Provision for Income Taxes: (1) Provision for income taxes2,733 3,561 506 Tax on (gains) on former bank premises and equipment - (33)(26)Tax on (gains) on sale of securities1 (3)(5)Tax on acquisition-related expenses (2)2 120 91 Tax on stock option exercises (founder's grants)- - 602 Tax on occupancy and bank premises - hurricane repair74 - - Core provision for income taxes2,810 3,645 1,168 Net Income: Net income12,329 13,834 4,499 (Gains) losses on former bank premises and equipment , net of tax- (125)(100)Losses (Gains) on sale of securities, net of tax4 (12)(20)Acquisition-related expenses (2), net of tax8 448 1,121 Stock option exercises, net of tax (founder's grants)- - (531)Occupancy and bank premises - hurricane repair, net of tax277 - - Core net income$12,618 $14,145 $4,969 Pre-tax, pre-provision earnings (a+b)$18,421 $19,529 $6,372 (Gains) losses on former bank premises and equipment - (158)(126)(Gains) losses on sale of securities5 (15)(25)Acquisition-related expenses (2)10 568 1,212 Stock option exercises (founder's grants)- - 71 Occupancy and bank premises - hurricane repair350 - - Core pre-tax, pre-provision earnings$18,786 $19,924 $7,504 Average Diluted Shares Outstanding20,738,013 20,726,648 13,367,276 Diluted Earnings Per Share: Diluted earnings per share$0.59 $0.67 $0.34 (Gains) losses on former bank premises and equipment , net of tax- (0.01)(0.01)(Gains) losses on sale of securities, net of tax0.00 (0.00)(0.00)Acquisition-related expenses (2), net of tax0.00 0.02 0.08 Stock option exercises (founder's grants)- - (0.04)Occupancy and bank premises - hurricane repair, net of tax0.02 - - Core diluted earnings per share$0.61 $0.68 $0.37 Pre-tax, pre-provision profit diluted earnings per share$0.89 $0.94 $0.48 (Gains) losses on former bank premises and equipment - (0.01)(0.01)(Gains) losses on sale of securities0.00 (0.00)(0.00)Acquisition-related expenses (2)0.00 0.03 0.09 Stock option exercises (founder's grants)- - 0.01 Occupancy and bank premises - hurricane repair0.02 - - Core pre-tax, pre-provision diluted earnings per share$0.91 $0.96 $0.56 (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21% for 2021 and 2020. These rates approximated the marginal tax rates.(2) Includes merger and conversion-related expenses and salary and employee benefits. Business First Bancshares, Inc.Non-GAAP Measures(Unaudited) Three Months Ended March 31,December 31,March 31,(Dollars in thousands, except per share data)202120202020 Total Quarterly/Year-to-Date Average Assets$ 4,276,430 $ 4,029,660 $ 2,244,584 Total Quarterly/Year-to-Date Average Equity$ 415,896 $ 399,332 $ 285,338 Net Income: Net income$ 12,329 $ 13,834 $ 4,499 (Gains) losses on former bank premises and equipment , net of tax - (125) (100)(Gains) losses on sale of securities, net of tax 4 (12) (20)Acquisition-related expenses (2), net of tax 8 448 1,121 Stock option exercises, net of tax (founder's grants) - - (531)Occupancy and bank premises - hurricane repair, net of tax 277 - - Core net income$ 12,618 $ 14,145 $ 4,969 Return on average assets1.15%1.37%0.80%Core return on average assets1.18%1.40%0.89%Return on equity 11.86%13.86%6.31%Core return on average equity12.14%14.17%6.97% Interest Income: Interest income$ 44,262 $ 44,387 $ 26,016 Core interest income 44,262 44,387 26,016 Interest Expense: Interest expense 3,961 4,803 5,805 Core interest expense 3,961 4,803 5,805 Other Income: Other income 5,083 9,547 2,804 (Gains) losses on former bank premises and equipment - (158) (126)(Gains) losses on sale of securities 5 (15) (25)Core other income 5,088 9,374 2,653 Other Expense: Other expense 26,963 29,602 16,643 Acquisition-related expenses (10) (568) (1,212)Stock option exercises - excess taxes (founder's grants) - - (71)Occupancy and bank premises - hurricane repair (350) - - Core other expense$ 26,603 $ 29,034 $ 15,360 Efficiency Ratio: Other expense (a)$ 26,963 $ 29,602 $ 16,643 Core other expense (c)$ 26,603 $ 29,034 $ 15,360 Net interest and other income (1) (b)$ 45,389 $ 49,116 $ 22,990 Core net interest and other income (1) (d)$ 45,389 $ 48,958 $ 22,864 Efficiency ratio (a/b)59.40%60.27%72.39%Core efficiency ratio (c/d)58.61%59.30%67.18% Total Average Interest-Earnings Assets$ 3,811,335 $ 3,714,828 $ 2,055,603 Net Interest Income: Net interest income$ 40,301 $ 39,584 $ 20,211 Loan discount accretion (3,063) (2,567) (290)Net interest income excluding loan discount accretion$ 37,238 $ 37,017 $ 19,921 Net interest margin (2)4.23%4.26%3.93%Net interest margin excluding loan discount accretion (2)3.91%3.99%3.88%Net interest spread4.06%4.03%3.55%Net interest spread excluding loan discount accretion3.73%3.75%3.49% (1) Excludes gains/losses on sales of securities. (2) Calculated utilizing a 30/360 day count convention. Business First Bancshares, Inc.Non-GAAP Measures(Unaudited) March 31,December 31,March 31,(Dollars in thousands, except per share data)202120202020 Total Shareholders' (Common) Equity: Total shareholders' equity$ 416,701 $ 409,963 $ 282,030 Goodwill (53,753) (53,862) (48,495)Core deposit intangible (9,406) (9,734) (6,471)Total tangible common equity$ 353,542 $ 346,367 $ 227,064 Total Assets: Total assets$ 4,443,586 $ 4,160,360 $ 2,287,662 Goodwill (53,753) (53,862) (48,495)Core deposit intangible (9,406) (9,734) (6,471)Total tangible assets$ 4,380,427 $ 4,096,764 $ 2,232,696 Common shares outstanding 20,804,753 20,621,437 13,067,987 Book value per common share$ 20.03 $ 19.88 $ 21.58 Tangible book value per common share$ 16.99 $ 16.80 $ 17.38 Common equity to total assets9.38%9.85%12.33%Tangible common equity to tangible assets8.07%8.45%10.17%