Business First Bancshares, Inc., Announces Financial Results for Q3 2022
Business First Bancshares, Inc., Announces Financial Results for Q3 2022
BATON ROUGE, La., Oct. 26, 2022 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended September 30, 2022, including net income of $13.8 million, or $0.61 per diluted share, no change from the quarter ended June 30, 2022. On a non-GAAP basis, core net income for the quarter ended September 30, 2022, which excludes certain income and expenses, was $16.4 million, or $0.72 per diluted share, increases of $1.8 million and $0.08, respectively, from the quarter ended June 30, 2022.
” Our third quarter results attest to the potential of a team working in concert over time,” said Jude Melville, president and CEO. “We continue to exhibit strong loan growth across our footprint while benefiting from historically positive asset quality. In addition to improved core operational profitability, we successfully added depth to our equity base, strengthening our balance sheet positioning as we prepare for the challenges and opportunities the next few quarters may hold.”
On October 26, 2022, Business First’s board of directors declared a quarterly dividend based upon financial performance for the third quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of November 15, 2022. The dividend will be paid on November 30, 2022, or as soon thereafter as practicable.
Quarterly Highlights
- Strong Loan Growth. Total loans held for investment at September 30, 2022, were $4.4 billion, an increase of $316.2 million compared to June 30, 2022, or 7.69% for the quarter. Based on unpaid principal balances, 48.4% of loan growth for the quarter ended September 30, 2022, was attributable to our Dallas market, 23.3% to the Northern Louisiana market, 12.2% to the Baton Rouge market, and 11.5% to the Houston market. As of September 30, 2022, approximately 34% of Business First’s loan portfolio resides in Texas based on unpaid principal balances.
- Expansion of Net Interest Margin. For the quarter ended September 30, 2022, net interest income totaled $53.5 million and net interest margin and net interest spread were 4.05% and 3.67%, respectively, compared to $49.6 million, 3.98% and 3.79% for the quarter ended June 30, 2022. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.7 million) were 3.92% and 3.54%, respectively, for the quarter ended September 30, 2022, compared to 3.77% and 3.59% (excluding loan discount accretion of $2.6 million) for the quarter ended June 30, 2022. Net interest margin rose due to continued increase in interest rates and loan growth, as well as $650,000 associated with a nonaccrual loan that was paid in full during the quarter, while the spread declined due to the increased cost of funding associated with the short-term yield curve.
- Solid Return on Assets and Equity. Return on average assets and common equity, each on an annualized basis, were 0.97% and 12.47%, respectively, for the quarter ended September 30, 2022, compared to 1.02% and 12.22%, respectively, for the quarter ended June 30, 2022. Non-GAAP return on average assets and common equity, each on an annualized basis, were 1.15% and 14.80%, respectively, for the quarter ended September 30, 2022, compared to 1.08% and 12.93%, respectively, for the quarter ended June 30, 2022.
- Overall Credit Quality Remains Stable. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from 0.42% and 0.33%, respectively, at June 30, 2022, to 0.25% and 0.21% at September 30, 2022. The reduction was largely due to a single nonfarm nonresidential commercial loan with an outstanding balance of $6.3 million being repaid in full during July 2022.
- Preferred Stock Issuance. Business First completed a private placement of $72.0 million of 7.50% fixed-to-floating rate non-cumulative perpetual preferred stock on September 1, 2022.
Financial Condition
September 30, 2022, Compared to June 30, 2022
Loans
Loans held for investment increased $316.2 million or 7.69%, 30.74% annualized, for the quarter ended September 30, 2022.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from 0.42% as of June 30, 2022, to 0.25% as of September 30, 2022. Nonperforming assets as a percentage of total assets decreased from 0.33% as of June 30, 2022, to 0.21% as of September 30, 2022. The decreases were largely attributable to a single nonfarm nonresidential commercial loan with an outstanding balance of $6.3 million being paid in full in July 2022.
Total Shareholders’ Equity
Book value per common share was $19.29 at September 30, 2022, compared to $19.73 at June 30, 2022. The decrease was largely attributable to the $21.9 million increase in accumulated other comprehensive losses related to unrealized losses on Business First’s available for sale investment portfolio.
On a non-GAAP basis, tangible book value per share was $14.73 at September 30, 2022, compared to $15.13 at June 30, 2022.
September 30, 2022, Compared to September 30, 2021
Loans
Total loans held for investment increased by $1.4 billion, or 44.47%, compared to September 30, 2021. Excluding loans acquired from Texas Citizens on March 1, 2022, loans increased $1.0 billion, or 33.08%.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from 0.45% as of September 30, 2021, to 0.25% as of September 30, 2022. Nonperforming assets as a percentage of total assets decreased from 0.37% as of September 30, 2021, to 0.21% as of September 30, 2022. Both ratio decreases were largely attributable to the increase in total loans and assets, as well as a $2.8 million decrease in nonaccrual loans.
Total Shareholders’ Equity
Book value per common share was $19.29 at September 30, 2022, compared to $21.11 at September 30, 2021. On a non-GAAP basis, tangible book value per share was $14.73 at September 30, 2022, compared to $17.53 at September 30, 2021. The decreases were largely attributable to the $90.4 million increase in the accumulated other comprehensive losses associated with the available for sale portfolio, which was driven by the change in the broader interest rate and economic environment.
Results of Operations
Third Quarter 2022 Compared to Second Quarter 2022
Net Income and Diluted Earnings Per Share
For the quarter ended September 30, 2022, and June 30, 2022, net income was $13.8 million, or $0.61 per diluted share. Net interest income increased by $3.9 million due to loan growth and interest rate increases, but was offset by $4.5 million in increased noninterest expense, largely attributable to increases of $2.6 million of merger and conversation-related expenses, $498,000 in salaries and employee benefits, and $441,000 in advertising and promotions during the quarter ended September 30, 2022.
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended September 30, 2022, was $16.4 million, or $0.72 per diluted share, compared to core net income of $14.6 million, or $0.64 per diluted share, for the quarter ended June 30, 2022. Notable noncore events impacting earnings for the quarter ended September 30, 2022, included $265,000 attributable to insurance reimbursements of storm expenses in other income and $3.5 million in acquisition-related expenses, compared to $708,000 of acquisition-related expenses and $270,000 of expenses attributable to storm repairs for the quarter ended June 30, 2022.
Interest Income
For the quarter ended September 30, 2022, net interest income totaled $53.5 million and net interest margin and net interest spread were 4.05% and 3.67%, respectively, compared to $49.6 million, 3.98% and 3.79% for the quarter ended June 30, 2022. The average yield on total interest-earning assets was 4.80% for the quarter ended September 30, 2022, compared to 4.33% for the quarter ended June 30, 2022. The average yield on the loan portfolio (excluding Small Business Administration (SBA) Paycheck Protection Program (PPP) loans) was 5.50% for the quarter ended September 30, 2022, compared to 5.10% for the quarter ended June 30, 2022. The quarter ended June 30, 2022, included additional loan discount accretion of $876,000, while 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.
Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.7 million) were 3.92% and 3.54%, respectively, for the quarter ended September 30, 2022, compared to 3.77% and 3.59% (excluding loan discount accretion of $2.6 million) for the quarter ended June 30, 2022. The additional interest income of approximately $650,000 associated with the nonaccrual loan that was paid off during the quarter accounted for approximately 5 bps of net interest margin.
Interest Expense
For the quarter ended September 30, 2022, overall cost of funds (which includes noninterest-bearing deposits) increased by 41 basis points, from 0.36% to 0.77%, compared to the quarter ended June 30, 2022, due to continued rate increases and growth in borrowings.
Other Income
For the quarter ended September 30, 2022, other income increased by $1.1 million compared to the quarter ended June 30, 2022. The increase was largely attributable to a $520,000 increase in equity investment income and a $265,000 reimbursement for storm expenditures from insurance, which occurred during the quarter ended September 30, 2022.
Other Expenses
For the quarter ended September 30, 2022, other expense increased by $4.5 million compared to the quarter ended June 30, 2022. The increase was largely attributable to a $2.6 million increase in merger and conversion-related expenses, $498,000 increase in salaries and employee benefits, and $441,000 increase in advertising and promotions, related to increased media spend and production costs, during the quarter ended September 30, 2022.
Provision for Loan Losses
During the quarter ended September 30, 2022, Business First recorded a provision for loan losses of $3.3 million, compared to $2.9 million for the quarter ended June 30, 2022. The reserves for both quarters ended September 30, 2022, and June 30, 2022, were driven primarily by new loan growth.
Return on Assets and Equity
Return on average assets and common equity, each on an annualized basis, were 0.97% and 12.47%, respectively, for the quarter ended September 30, 2022, compared to 1.02% and 12.22%, respectively, for the quarter ended June 30, 2022.
Third Quarter 2022 Compared to Third Quarter 2021
Net Income and Diluted Earnings Per Share
For the quarter ended September 30, 2022, net income was $13.8 million or $0.61 per diluted share, compared to net income of $10.3 million or $0.50 per diluted share, for the quarter ended September 30, 2021. Net interest income increased by $16.2 million (attributed to the larger balance sheet resulting from the Texas Citizens acquisition, as well as strong organic growth and recent increase in interest rates during the past six months), partially offset by a $2.1 million increase in provision for loan loss due to loan growth, $5.1 million increase in salaries and employee benefits (largely attributable to the acquisition of Texas Citizens and additional staffing, mostly loan production), and $3.1 million in merger and conversion-related expenses attributable to the Texas Citizens acquisition, during the quarter ended September 30, 2022.
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended September 30, 2022, was $16.4 million or $0.72 per diluted share, compared to core net income of $10.9 million or $0.53 per diluted share, for the quarter ended September 30, 2021. Notable noncore events impacting earnings for the quarter ended September 30, 2022, included $265,000 attributable to insurance reimbursements of storm expenses in other income and $3.5 million in acquisition-related expenses, compared to $211,000 in occupancy and bank premises expenses attributable to storm damages (primarily related to Ida, 2021), $145,000 in acquisition-related expenses and $392,000 in losses on sales of former premises and equipment within other income during the quarter ended September 30, 2021.
Interest Income
For the quarter ended September 30, 2022, net interest income totaled $53.5 million and net interest margin and net interest spread were 4.05% and 3.67%, respectively, compared to $37.3 million, 3.71% and 3.51% for the quarter ended September 30, 2021. The average yield on total interest-earning assets was 4.80% for the quarter ended September 30, 2022, compared to 4.14% for the quarter ended September 30, 2021. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.50% for the quarter ended September 30, 2022, compared to 5.11% for the quarter ended September 30, 2021.
Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.7 million) were 3.92% and 3.54%, respectively, for the quarter ended September 30, 2022, compared to 3.56% and 3.36% (excluding loan discount accretion of $1.5 million) for the quarter ended September 30, 2021.
Interest Expense
For the quarter ended September 30, 2022, overall cost of funds (which includes noninterest-bearing deposits) increased by 33 basis points, from 0.44% to 0.77%, compared to the quarter ended September 30, 2021. The increase in cost of funds was primarily attributable to an overall increase in interest rates on deposit offerings and higher average subordinated debt balances and Federal Home Loan Bank (FHLB) borrowings.
Other Income
For the quarter ended September 30, 2022, the increase in other income of $2.0 million, compared to the quarter ended September 30, 2021, was largely attributable to the $558,000 loss on other real estate owned (OREO) recorded during the quarter ended September 30, 2021, increase on service charges of $353,000 due to the acquisition of Texas Citizens on March 1, 2022, and organic deposit growth, and increase of $285,000 in fees and brokerage commission due to the increase in assets under management.
Other Expenses
For the quarter ended September 30, 2022, the increase in other expense of $11.6 million compared to the quarter ended September 30, 2021, was largely attributable to the $5.1 million increase in salaries and employee benefits associated with the acquisition of Texas Citizens on March 1, 2022, and additional loan production staffing which occurred over the past year, and $3.1 million in merger and conversion-related expenses associated with the acquisition of Texas Citizens.
Provision for Loan Losses
During the quarter ended September 30, 2022, Business First recorded a provision for loan losses of $3.3 million compared to $1.1 million for the quarter ended September 30, 2021.
Return on Assets and Equity
Return on average assets and return on average common equity, each on an annualized basis, were 0.97% and 12.47%, respectively, for the quarter ended September 30, 2022, from 0.95% and 9.47%, respectively, for the quarter ended September 30, 2021.
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Thursday, October 27, 2022, at 2:00 p.m. CDT. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 3389208, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/yawh3a5g. 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 $5.8 billion in assets, $6.3 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
[email protected]
| Business First Bancshares, Inc. | |||||||||
| Selected Financial Information | |||||||||
| (Unaudited) | |||||||||
| For the Quarter Ended | |||||||||
| September 30, | June 30, | September 30, | |||||||
| (Dollars in thousands) | 2022 | 2022 | 2021 | ||||||
| Balance Sheet Ratios | |||||||||
| Loans (HFI) to Deposits | 96.59 | % | 88.31 | % | 81.37 | % | |||
| Shareholders' Equity to Assets Ratio | 8.75 | % | 8.05 | % | 9.77 | % | |||
| Loans Receivable Held for Investment (HFI) | |||||||||
| Commercial (1) | $ | 1,012,778 | $ | 949,631 | $ | 723,077 | |||
| Real Estate: | |||||||||
| Construction and Land | 636,869 | 642,260 | 464,808 | ||||||
| Farmland | 190,829 | 174,723 | 85,898 | ||||||
| 1-4 Family Residential | 545,880 | 521,747 | 464,462 | ||||||
| Multi-Family Residential | 102,056 | 97,901 | 107,551 | ||||||
| Nonfarm Nonresidential | 1,823,408 | 1,605,691 | 1,111,771 | ||||||
| Total Real Estate | 3,299,042 | 3,042,322 | 2,234,490 | ||||||
| Consumer and Other | 118,080 | 121,773 | 108,669 | ||||||
| Total Loans (Held for Investment) | $ | 4,429,900 | $ | 4,113,726 | $ | 3,066,236 | |||
| Allowance for Loan Losses | |||||||||
| Balance, Beginning of Period | $ | 32,317 | $ | 29,245 | $ | 26,702 | |||
| Charge-offs – Quarterly | (667 | ) | (99 | ) | (81 | ) | |||
| Recoveries – Quarterly | 278 | 226 | 378 | ||||||
| Provision for Loan Losses – Quarterly | 3,273 | 2,945 | 1,147 | ||||||
| Balance, End of Period | $ | 35,201 | $ | 32,317 | $ | 28,146 | |||
| Allowance for Loan Losses to Total Loans (HFI) | 0.79 | % | 0.79 | % | 0.92 | % | |||
| Net Charge-offs (Recoveries) to Average Quarterly Total Loans | 0.01 | % | 0.00 | % | -0.01 | % | |||
| Remaining Loan Purchase Discount | $ | 36,089 | $ | 37,903 | $ | 29,390 | |||
| Nonperforming Assets | |||||||||
| Nonperforming Loans: | |||||||||
| Nonaccrual Loans (2) | $ | 9,843 | $ | 16,777 | $ | 12,622 | |||
| Loans Past Due 90 Days or More (2) | 1,121 | 324 | 1,030 | ||||||
| Total Nonperforming Loans | 10,964 | 17,101 | 13,652 | ||||||
| Other Nonperforming Assets: | |||||||||
| Other Real Estate Owned | 840 | 990 | 2,152 | ||||||
| Other Nonperforming Assets | 180 | 84 | 675 | ||||||
| Total Other Nonperforming Assets | 1,020 | 1,074 | 2,827 | ||||||
| Total Nonperforming Assets | $ | 11,984 | $ | 18,175 | $ | 16,479 | |||
| Nonperforming Loans to Total Loans (HFI) | 0.25 | % | 0.42 | % | 0.45 | % | |||
| Nonperforming Assets to Total Assets | 0.21 | % | 0.33 | % | 0.37 | % | |||
| (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $3.0 million of the commercial portfolio as of September 30, 2022. | |||||||||
| SBA PPP loans accounted for $3.2 million of the commercial portfolio as of June 30, 2022. | |||||||||
| SBA PPP loans accounted for $9.7 million of the commercial portfolio as of September 30, 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 | Nine Months Ended | |||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
| (Dollars in thousands, except per share data) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Per Share Data | ||||||||||||||||
| Basic Earnings per Common Share | $ | 0.61 | $ | 0.61 | $ | 0.51 | $ | 1.65 | $ | 1.95 | ||||||
| Diluted Earnings per Common Share | 0.61 | 0.61 | 0.50 | 1.64 | 1.94 | |||||||||||
| Dividends per Common Share | 0.12 | 0.12 | 0.12 | 0.36 | 0.34 | |||||||||||
| Book Value per Common Share | 22.47 | 19.73 | 21.11 | 22.47 | 21.11 | |||||||||||
| Average Common Shares Outstanding | 22,468,939 | 22,459,603 | 20,384,879 | 21,990,273 | 20,570,506 | |||||||||||
| Average Diluted Shares Outstanding | 22,650,640 | 22,656,174 | 20,513,838 | 22,163,952 | 20,692,344 | |||||||||||
| End of Period Common Shares Outstanding | 22,605,136 | 22,579,451 | 20,383,504 | 22,605,136 | 20,383,504 | |||||||||||
| Annualized Performance Ratios | ||||||||||||||||
| Return on Average Assets | 0.97 | % | 1.02 | % | 0.95 | % | 0.91 | % | 1.23 | % | ||||||
| Return on Average Common Equity | 12.47 | % | 12.22 | % | 9.47 | % | 10.84 | % | 12.60 | % | ||||||
| Net Interest Margin | 4.05 | % | 3.98 | % | 3.71 | % | 3.86 | % | 3.93 | % | ||||||
| Net Interest Spread | 3.67 | % | 3.79 | % | 3.51 | % | 3.61 | % | 3.75 | % | ||||||
| Efficiency Ratio (1) | 66.47 | % | 64.32 | % | 67.56 | % | 67.48 | % | 60.50 | % | ||||||
| Total Quarterly Average Assets | $ | 5,702,312 | $ | 5,371,639 | $ | 4,353,885 | $ | 5,331,352 | $ | 4,343,407 | ||||||
| Total Quarterly Average Common Equity | 442,778 | 450,431 | 435,400 | 446,403 | 423,977 | |||||||||||
| Other Expenses | ||||||||||||||||
| Salaries and Employee Benefits | $ | 21,906 | $ | 21,408 | $ | 16,791 | $ | 63,017 | $ | 48,470 | ||||||
| Occupancy and Bank Premises | 2,485 | 2,422 | 1,629 | 6,959 | 5,716 | |||||||||||
| Depreciation and Amortization | 1,850 | 1,734 | 1,483 | 5,153 | 4,316 | |||||||||||
| Data Processing | 2,155 | 1,886 | 1,994 | 6,157 | 6,105 | |||||||||||
| FDIC Assessment Fees | 839 | 661 | 581 | 2,243 | 1,526 | |||||||||||
| Legal and Other Professional Fees | 619 | 735 | 553 | 1,897 | 2,199 | |||||||||||
| Advertising and Promotions | 1,144 | 703 | 612 | 2,378 | 1,713 | |||||||||||
| Utilities and Communications | 833 | 822 | 678 | 2,434 | 1,889 | |||||||||||
| Ad Valorem Shares Tax | 813 | 812 | 675 | 2,438 | 2,050 | |||||||||||
| Directors' Fees | 288 | 212 | 201 | 702 | 583 | |||||||||||
| Other Real Estate Owned Expenses and Write-Downs | 133 | 35 | 103 | 182 | 660 | |||||||||||
| Merger and Conversion-Related Expenses | 3,244 | 615 | 145 | 4,670 | 249 | |||||||||||
| Other | 4,637 | 4,352 | 3,885 | 12,833 | 11,487 | |||||||||||
| Total Other Expenses | $ | 40,946 | $ | 36,397 | $ | 29,330 | $ | 111,063 | $ | 86,963 | ||||||
| Other Income | ||||||||||||||||
| Service Charges on Deposit Accounts | $ | 2,116 | $ | 2,086 | $ | 1,763 | $ | 6,007 | $ | 5,013 | ||||||
| Losses on Sales of Securities | (7 | ) | (8 | ) | (11 | ) | (46 | ) | (66 | ) | ||||||
| Debit Card and ATM Fee Income | 1,667 | 1,657 | 1,532 | 4,825 | 4,645 | |||||||||||
| Bank-Owned Life Insurance Income | 561 | 475 | 356 | 1,405 | 1,029 | |||||||||||
| Gain on Sales of Loans | 264 | 186 | 93 | 515 | 10,114 | |||||||||||
| Mortgage Origination Income | 57 | 161 | 227 | 427 | 697 | |||||||||||
| Fees and Brokerage Commission | 1,620 | 1,749 | 1,335 | 5,204 | 3,294 | |||||||||||
| Gain (Loss) on Sales of Other Real Estate Owned | 12 | 10 | (558 | ) | 30 | (1,087 | ) | |||||||||
| Gain (Loss) on Disposal of Other Assets | 1 | - | 14 | (716 | ) | 122 | ||||||||||
| Pass-Through Income from Other Investments | 572 | 52 | 398 | 739 | 2,053 | |||||||||||
| Other | 1,252 | 653 | 962 | 2,642 | 2,310 | |||||||||||
| Total Other Income | $ | 8,115 | $ | 7,021 | $ | 6,111 | $ | 21,032 | $ | 28,124 | ||||||
| (1) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities. | ||||||||||||||||
| Business First Bancshares, Inc. | |||||||||
| Consolidated Balance Sheets | |||||||||
| (Unaudited) | |||||||||
| September 30, | June 30, | September 30, | |||||||
| (Dollars in thousands) | 2022 | 2022 | 2021 | ||||||
| Assets | |||||||||
| Cash and Due From Banks | $ | 152,671 | $ | 154,694 | $ | 81,361 | |||
| Federal Funds Sold | 11,137 | 10,817 | 4,646 | ||||||
| Securities Available for Sale, at Fair Values | 884,960 | 934,676 | 1,034,491 | ||||||
| Mortgage Loans Held for Sale | 545 | 170 | 1,498 | ||||||
| Loans and Lease Receivable | 4,429,900 | 4,113,726 | 3,066,236 | ||||||
| Allowance for Loan Losses | (35,201 | ) | (32,317 | ) | (28,146 | ) | |||
| Net Loans and Lease Receivable | 4,394,699 | 4,081,409 | 3,038,090 | ||||||
| Premises and Equipment, Net | 63,765 | 64,307 | 56,611 | ||||||
| Accrued Interest Receivable | 22,454 | 22,142 | 19,025 | ||||||
| Other Equity Securities | 39,390 | 30,302 | 15,259 | ||||||
| Other Real Estate Owned | 840 | 990 | 2,152 | ||||||
| Cash Value of Life Insurance | 88,743 | 88,370 | 59,085 | ||||||
| Deferred Taxes, Net | 36,691 | 29,576 | 5,618 | ||||||
| Goodwill | 88,543 | 88,842 | 60,062 | ||||||
| Core Deposit and Customer Intangibles | 14,567 | 15,093 | 12,835 | ||||||
| Other Assets | 7,686 | 8,995 | 14,484 | ||||||
| Total Assets | $ | 5,806,691 | $ | 5,530,383 | $ | 4,405,217 | |||
| Liabilities | |||||||||
| Deposits | |||||||||
| Noninterest-Bearing | $ | 1,613,310 | $ | 1,698,114 | $ | 1,201,791 | |||
| Interest-Bearing | 2,972,795 | 2,960,049 | 2,566,330 | ||||||
| Total Deposits | 4,586,105 | 4,658,163 | 3,768,121 | ||||||
| Securities Sold Under Agreements to Repurchase | 22,072 | 18,477 | 27,195 | ||||||
| Fed Funds Purchased | - | - | 16,087 | ||||||
| Short-Term Borrowings | 5,009 | 5,020 | 20 | ||||||
| Subordinated Debt | 110,902 | 111,055 | 81,427 | ||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 5,000 | 5,000 | ||||||
| Federal Home Loan Bank Borrowings | 534,059 | 254,011 | 48,002 | ||||||
| Accrued Interest Payable | 1,023 | 708 | 1,835 | ||||||
| Other Liabilities | 34,519 | 32,490 | 27,309 | ||||||
| Total Liabilities | 5,298,689 | 5,084,924 | 3,974,996 | ||||||
| Shareholders' Equity | |||||||||
| Preferred Stock | 72,010 | - | - | ||||||
| Common Stock | 22,605 | 22,579 | 20,384 | ||||||
| Additional Paid-In Capital | 347,721 | 346,382 | 291,847 | ||||||
| Retained Earnings | 150,336 | 139,232 | 112,243 | ||||||
| Accumulated Other Comprehensive Income (Loss) | (84,670 | ) | (62,734 | ) | 5,747 | ||||
| Total Shareholders' Equity | 508,002 | 445,459 | 430,221 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 5,806,691 | $ | 5,530,383 | $ | 4,405,217 | |||
| Business First Bancshares, Inc. | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
| (Dollars in thousands) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Interest Income: | ||||||||||||||||
| Interest and Fees on Loans | $ | 58,846 | $ | 49,639 | $ | 37,900 | $ | 148,668 | $ | 118,454 | ||||||
| Interest and Dividends on Securities | 4,200 | 4,143 | 3,598 | 12,187 | 9,616 | |||||||||||
| Interest on Federal Funds Sold and Due From Banks | 427 | 232 | 36 | 754 | 77 | |||||||||||
| Total Interest Income | 63,473 | 54,014 | 41,534 | 161,609 | 128,147 | |||||||||||
| Interest Expense: | ||||||||||||||||
| Interest on Deposits | 6,286 | 2,557 | 3,060 | 11,106 | 9,538 | |||||||||||
| Interest on Borrowings | 3,707 | 1,895 | 1,180 | 6,986 | 3,069 | |||||||||||
| Total Interest Expense | 9,993 | 4,452 | 4,240 | 18,092 | 12,607 | |||||||||||
| Net Interest Income | 53,480 | 49,562 | 37,294 | 143,517 | 115,540 | |||||||||||
| Provision for Loan Losses: | 3,273 | 2,945 | 1,147 | 7,835 | 6,747 | |||||||||||
| Net Interest Income After Provision for Loan Losses | 50,207 | 46,617 | 36,147 | 135,682 | 108,793 | |||||||||||
| Other Income: | ||||||||||||||||
| Service Charges on Deposit Accounts | 2,116 | 2,086 | 1,763 | 6,007 | 5,013 | |||||||||||
| (Loss) on Sales of Securities | (7 | ) | (8 | ) | (11 | ) | (46 | ) | (66 | ) | ||||||
| Gain on Sales of Loans | 264 | 186 | 93 | 515 | 10,114 | |||||||||||
| Other Income | 5,742 | 4,757 | 4,266 | 14,556 | 13,063 | |||||||||||
| Total Other Income | 8,115 | 7,021 | 6,111 | 21,032 | 28,124 | |||||||||||
| Other Expenses: | ||||||||||||||||
| Salaries and Employee Benefits | 21,906 | 21,408 | 16,791 | 63,017 | 48,470 | |||||||||||
| Occupancy and Equipment Expense | 5,122 | 4,914 | 3,912 | 14,449 | 11,893 | |||||||||||
| Merger and Conversion-Related Expense | 3,244 | 615 | 145 | 4,670 | 249 | |||||||||||
| Other Expenses | 10,674 | 9,460 | 8,482 | 28,927 | 26,351 | |||||||||||
| Total Other Expenses | 40,946 | 36,397 | 29,330 | 111,063 | 86,963 | |||||||||||
| Income Before Income Taxes: | 17,376 | 17,241 | 12,928 | 45,651 | 49,954 | |||||||||||
| Provision for Income Taxes: | 3,576 | 3,484 | 2,617 | 9,363 | 9,886 | |||||||||||
| Net Income: | $ | 13,800 | $ | 13,757 | $ | 10,311 | $ | 36,288 | $ | 40,068 | ||||||
| Business First Bancshares, Inc. | ||||||||||||||||||||||||||
| Consolidated Net Interest Margin | ||||||||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||
| September 30, 2022 | June 30, 2022 | September 30, 2021 | ||||||||||||||||||||||||
| (Dollars in thousands) | Average Outstanding Balance | Interest Earned / Interest Paid | Average Yield / Rate | Average Outstanding Balance | Interest Earned / Interest Paid | Average Yield / Rate | Average Outstanding Balance | Interest Earned / Interest Paid | Average Yield / Rate | |||||||||||||||||
| Assets | ||||||||||||||||||||||||||
| Interest-Earning Assets: | ||||||||||||||||||||||||||
| Total Loans (Excluding SBA PPP) | $ | 4,278,184 | $ | 58,839 | 5.50 | % | $ | 3,890,470 | $ | 49,628 | 5.10 | % | $ | 2,948,491 | $ | 37,666 | 5.11 | % | ||||||||
| SBA PPP Loans | 2,953 | 7 | 1.00 | % | 4,429 | 11 | 1.00 | % | 10,150 | 234 | 9.24 | % | ||||||||||||||
| Securities | 951,479 | 4,200 | 1.77 | % | 966,960 | 4,143 | 1.71 | % | 946,950 | 3,598 | 1.52 | % | ||||||||||||||
| Interest-Bearing Deposit in Other Banks | 54,730 | 427 | 3.12 | % | 122,175 | 232 | 0.76 | % | 110,472 | 36 | 0.13 | % | ||||||||||||||
| Total Interest-Earning Assets | 5,287,346 | 63,473 | 4.80 | % | 4,984,034 | 54,014 | 4.33 | % | 4,016,063 | 41,534 | 4.14 | % | ||||||||||||||
| Allowance for Loan Losses | (33,215 | ) | (29,945 | ) | (27,409 | ) | ||||||||||||||||||||
| Noninterest-Earning Assets | 448,181 | 417,550 | 365,231 | |||||||||||||||||||||||
| Total Assets | $ | 5,702,312 | $ | 63,473 | $ | 5,371,639 | $ | 54,014 | $ | 4,353,885 | $ | 41,534 | ||||||||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||||||||
| Interest-Bearing Deposits | $ | 3,009,565 | $ | 6,286 | 0.84 | % | $ | 2,981,613 | $ | 2,557 | 0.34 | % | $ | 2,566,766 | $ | 3,060 | 0.48 | % | ||||||||
| Subordinated Debt | 110,953 | 1,332 | 4.80 | % | 111,107 | 1,300 | 4.68 | % | 81,427 | 1,026 | 5.04 | % | ||||||||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 68 | 5.44 | % | 5,000 | 52 | 4.16 | % | 5,000 | 42 | 3.36 | % | ||||||||||||||
| Advances from Federal Home Loan Bank (FHLB) | 396,267 | 2,194 | 2.21 | % | 171,224 | 506 | 1.18 | % | 36,015 | 106 | 1.18 | % | ||||||||||||||
| First National Bankers Bank Line of Credit | 5,000 | 70 | 5.60 | % | 3,333 | 21 | 2.52 | % | - | - | 0.00 | % | ||||||||||||||
| Other Borrowings | 22,381 | 43 | 0.77 | % | 24,927 | 16 | 0.26 | % | 26,350 | 6 | 0.09 | % | ||||||||||||||
| Total Interest-Bearing Liabilities | 3,549,166 | 9,993 | 1.13 | % | 3,297,204 | 4,452 | 0.54 | % | 2,715,558 | 4,240 | 0.62 | % | ||||||||||||||
| Noninterest-Bearing Liabilities: | ||||||||||||||||||||||||||
| Noninterest-Bearing Deposits | $ | 1,626,055 | $ | 1,596,174 | $ | 1,172,752 | ||||||||||||||||||||
| Other Liabilities | 60,310 | 27,830 | 30,175 | |||||||||||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,686,365 | 1,624,004 | 1,202,927 | |||||||||||||||||||||||
| Shareholders' Equity: | ||||||||||||||||||||||||||
| Common Shareholders' Equity | 442,778 | 450,431 | 435,400 | |||||||||||||||||||||||
| Preferred Equity | 24,003 | - | - | |||||||||||||||||||||||
| Total Shareholder's Equity | 466,781 | 450,431 | 435,400 | |||||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 5,702,312 | $ | 5,371,639 | $ | 4,353,885 | ||||||||||||||||||||
| Net Interest Spread | 3.67 | % | 3.79 | % | 3.51 | % | ||||||||||||||||||||
| Net Interest Income | $ | 53,480 | $ | 49,562 | $ | 37,294 | ||||||||||||||||||||
| Net Interest Margin | 4.05 | % | 3.98 | % | 3.71 | % | ||||||||||||||||||||
| Overall Cost of Funds | 0.77 | % | 0.36 | % | 0.44 | % | ||||||||||||||||||||
| 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) | |||||||||||||||
| Nine Months Ended | |||||||||||||||
| September 30, 2022 | September 30, 2021 | ||||||||||||||
| (Dollars in thousands) | Average Outstanding Balance | Interest Earned / Interest Paid | Average Yield / Rate | Average Outstanding Balance | Interest Earned / Interest Paid | Average Yield / Rate | |||||||||
| Assets | |||||||||||||||
| Interest-Earning Assets: | |||||||||||||||
| Total Loans (Excluding SBA PPP) | $ | 3,850,321 | $ | 148,640 | 5.15% | $ | 2,802,246 | $ | 110,320 | 5.25% | |||||
| SBA PPP Loans | 3,702 | 28 | 1.00% | 209,041 | 8,134 | 5.19% | |||||||||
| Securities | 974,566 | 12,187 | 1.67% | 813,231 | 9,616 | 1.58% | |||||||||
| Interest-Bearing Deposit in Other Banks | 132,685 | 754 | 0.76% | 91,466 | 77 | 0.11% | |||||||||
| Total Interest-Earning Assets | 4,961,274 | 161,609 | 4.34% | 3,915,984 | 128,147 | 4.36% | |||||||||
| Allowance for Loan Losses | (30,806 | ) | (25,383 | ) | |||||||||||
| Noninterest-Earning Assets | 400,884 | 452,806 | |||||||||||||
| Total Assets | $ | 5,331,352 | $ | 161,609 | $ | 4,343,407 | $ | 128,147 | |||||||
| Liabilities and Shareholders' Equity | |||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||
| Interest-Bearing Deposits | $ | 2,958,005 | $ | 11,106 | 0.50% | $ | 2,588,756 | $ | 9,538 | 0.49% | |||||
| Subordinated Debt | 104,471 | 3,746 | 4.78% | 63,768 | 2,499 | 5.23% | |||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 163 | 4.35% | 5,000 | 127 | 3.39% | |||||||||
| Advances from Federal Home Loan Bank (FHLB) | 215,955 | 2,923 | 1.80% | 35,309 | 325 | 1.23% | |||||||||
| First National Bankers Bank Line of Credit | 2,778 | 91 | 4.37% | - | - | 0.00% | |||||||||
| Other Borrowings | 22,325 | 63 | 0.38% | 27,651 | 118 | 0.57% | |||||||||
| Total Interest-Bearing Liabilities | 3,308,534 | 18,092 | 0.73% | 2,720,484 | 12,607 | 0.62% | |||||||||
| Noninterest-Bearing Liabilities: | |||||||||||||||
| Noninterest-Bearing Deposits | 1,530,748 | 1,170,534 | |||||||||||||
| Other Liabilities | 37,666 | 28,412 | |||||||||||||
| Total Noninterest-Bearing Liabilities | 1,568,414 | 1,198,946 | |||||||||||||
| Shareholders' Equity: | |||||||||||||||
| Common Shareholders' Equity | 446,403 | 423,977 | |||||||||||||
| Preferred Equity | 8,001 | - | |||||||||||||
| Total Shareholder's Equity | 454,404 | 423,977 | |||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 5,331,352 | $ | 4,343,407 | |||||||||||
| Net Interest Spread | 3.61% | 3.75% | |||||||||||||
| Net Interest Income | $ | 143,517 | $ | 115,540 | |||||||||||
| Net Interest Margin | 3.86% | 3.93% | |||||||||||||
| Overall Cost of Funds | 0.50% | 0.43% | |||||||||||||
| NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention. | |||||||||||||||
| Business First Bancshares, Inc. | ||||||||||||||||
| Non-GAAP Measures | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
| (Dollars in thousands, except per share data) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Interest Income: | ||||||||||||||||
| Interest income | $ | 63,473 | $ | 54,014 | $ | 41,534 | $ | 161,609 | $ | 128,147 | ||||||
| Core interest income | 63,473 | 54,014 | 41,534 | 161,609 | 128,147 | |||||||||||
| Interest Expense: | ||||||||||||||||
| Interest expense | 9,993 | 4,452 | 4,240 | 18,092 | 12,607 | |||||||||||
| Core interest expense | 9,993 | 4,452 | 4,240 | 18,092 | 12,607 | |||||||||||
| Provision for Loan Losses:(b) | ||||||||||||||||
| Provision for loan losses | 3,273 | 2,945 | 1,147 | 7,835 | 6,747 | |||||||||||
| Core provision expense | 3,273 | 2,945 | 1,147 | 7,835 | 6,747 | |||||||||||
| Other Income: | ||||||||||||||||
| Other income | 8,115 | 7,021 | 6,111 | 21,032 | 28,124 | |||||||||||
| Losses on former bank premises and equipment | - | - | 392 | 717 | 932 | |||||||||||
| Losses on sale of securities | 7 | 8 | 11 | 46 | 66 | |||||||||||
| Insurance reimbursement of storm expenditures | (265 | ) | - | - | (265 | ) | - | |||||||||
| Core other income | 7,857 | 7,029 | 6,514 | 21,530 | 29,122 | |||||||||||
| Other Expense: | ||||||||||||||||
| Other expense | 40,946 | 36,397 | 29,330 | 111,063 | 86,963 | |||||||||||
| Acquisition-related expenses (2) | (3,521 | ) | (708 | ) | (145 | ) | (5,040 | ) | (249 | ) | ||||||
| Occupancy and bank premises - storm repair | - | (270 | ) | (211 | ) | (501 | ) | (1,499 | ) | |||||||
| Core other expense | 37,425 | 35,419 | 28,974 | 105,522 | 85,215 | |||||||||||
| Pre-Tax Income:(a) | ||||||||||||||||
| Pre-tax income | 17,376 | 17,241 | 12,928 | 45,651 | 49,954 | |||||||||||
| Losses on former bank premises and equipment | - | - | 392 | 717 | 932 | |||||||||||
| Losses on sale of securities | 7 | 8 | 11 | 46 | 66 | |||||||||||
| Acquisition-related expenses (2) | 3,521 | 708 | 145 | 5,040 | 249 | |||||||||||
| Occupancy and bank premises - storm repair | - | 270 | 211 | 501 | 1,499 | |||||||||||
| Insurance reimbursment of storm expenditures | (265 | ) | - | - | (265 | ) | - | |||||||||
| Core pre-tax income | 20,639 | 18,227 | 13,687 | 51,690 | 52,700 | |||||||||||
| Provision for Income Taxes:(1) | ||||||||||||||||
| Provision for income taxes | 3,576 | 3,484 | 2,617 | 9,363 | 9,886 | |||||||||||
| Tax on losses on former bank premises and equipment | - | - | 82 | 151 | 195 | |||||||||||
| Tax on losses on sale of securities | 1 | 2 | 2 | 10 | 14 | |||||||||||
| Tax on acquisition-related expenses (2) | 739 | 126 | 24 | 913 | 46 | |||||||||||
| Tax on occupancy and bank premises - storm repair | - | 57 | 44 | 106 | 314 | |||||||||||
| Tax on insurance reimbursement of storm expenditures | (55 | ) | - | - | (55 | ) | - | |||||||||
| Core provision for income taxes | 4,261 | 3,669 | 2,769 | 10,488 | 10,455 | |||||||||||
| Net Income: | ||||||||||||||||
| Net income | 13,800 | 13,757 | 10,311 | 36,288 | 40,068 | |||||||||||
| Losses on former bank premises and equipment, net of tax | - | - | 310 | 566 | 737 | |||||||||||
| Losses on sale of securities, net of tax | 6 | 6 | 9 | 36 | 52 | |||||||||||
| Acquisition-related expenses (2), net of tax | 2,782 | 582 | 121 | 4,127 | 203 | |||||||||||
| Occupancy and bank premises - storm repair, net of tax | - | 213 | 167 | 395 | 1,185 | |||||||||||
| Insurance reimbursement of storm expenditures, net of tax | (210 | ) | - | - | (210 | ) | - | |||||||||
| Core net income | $ | 16,378 | $ | 14,558 | $ | 10,918 | $ | 41,202 | $ | 42,245 | ||||||
| Pre-tax, pre-provision earnings (a+b) | $ | 20,649 | $ | 20,186 | $ | 14,075 | $ | 53,486 | $ | 56,701 | ||||||
| Losses on former bank premises and equipment | - | - | 392 | 717 | 932 | |||||||||||
| Losses on sale of securities | 7 | 8 | 11 | 46 | 66 | |||||||||||
| Acquisition-related expenses (2) | 3,521 | 708 | 145 | 5,040 | 249 | |||||||||||
| Occupancy and bank premises - storm repair | - | 270 | 211 | 501 | 1,499 | |||||||||||
| Insurance reimbursement of storm expenditures | (265 | ) | - | - | (265 | ) | - | |||||||||
| Core pre-tax, pre-provision earnings | $ | 23,912 | $ | 21,172 | $ | 14,834 | $ | 59,525 | $ | 59,447 | ||||||
| Average Diluted Shares Outstanding | 22,650,640 | 22,656,174 | 20,513,838 | 22,163,952 | 20,692,344 | |||||||||||
| Diluted Earnings Per Share: | ||||||||||||||||
| Diluted earnings per share | $ | 0.61 | $ | 0.61 | $ | 0.50 | $ | 1.64 | $ | 1.94 | ||||||
| Losses on former bank premises and equipment, net of tax | - | - | 0.01 | 0.02 | 0.04 | |||||||||||
| Losses on sale of securities, net of tax | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||
| Acquisition-related expenses (2), net of tax | 0.12 | 0.02 | 0.01 | 0.19 | 0.01 | |||||||||||
| Occupancy and bank premises -storm repair, net of tax | - | 0.01 | 0.01 | 0.02 | 0.06 | |||||||||||
| Insurance reimbursement of storm expenditures, net of tax | (0.01 | ) | - | - | (0.01 | ) | - | |||||||||
| Core diluted earnings per share | $ | 0.72 | $ | 0.64 | $ | 0.53 | $ | 1.86 | $ | 2.05 | ||||||
| Pre-tax, pre-provision profit diluted earnings per share | $ | 0.91 | $ | 0.89 | $ | 0.69 | $ | 2.41 | $ | 2.74 | ||||||
| Losses on former bank premises and equipment | - | - | 0.01 | 0.03 | 0.05 | |||||||||||
| Losses on sale of securities | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||
| Acquisition-related expenses (2) | 0.16 | 0.03 | 0.01 | 0.23 | 0.01 | |||||||||||
| Occupancy and bank premises - storm repair | - | 0.01 | 0.01 | 0.03 | 0.07 | |||||||||||
| Insurance reimbursement of storm expenditures | (0.01 | ) | - | - | (0.01 | ) | - | |||||||||
| Core pre-tax, pre-provision diluted earnings per share | $ | 1.06 | $ | 0.93 | $ | 0.72 | $ | 2.69 | $ | 2.87 | ||||||
| (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.00% for 2022 and 2021. These rates approximated the marginal tax rates. | ||||||||||||||||
| (2) Includes merger and conversion-related expenses and salary and employee benefits. | ||||||||||||||||
| Business First Bancshares, Inc. | ||||||||||||||||
| Non-GAAP Measures | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||
| (Dollars in thousands, except per share data) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
| Total Quarterly Average Assets | $ | 5,702,312 | $ | 5,371,639 | $ | 4,353,885 | $ | 5,331,352 | $ | 4,343,407 | ||||||
| Total Quarterly Average Common Equity | $ | 442,778 | $ | 450,431 | $ | 435,400 | $ | 446,403 | $ | 423,977 | ||||||
| Net Income: | ||||||||||||||||
| Net income | $ | 13,800 | $ | 13,757 | $ | 10,311 | $ | 36,288 | $ | 40,068 | ||||||
| Losses on former bank premises and equipment, net of tax | - | - | 310 | 566 | 737 | |||||||||||
| Losses on sale of securities, net of tax | 6 | 6 | 9 | 36 | 52 | |||||||||||
| Acquisition-related expenses, net of tax | 2,782 | 582 | 121 | 4,127 | 203 | |||||||||||
| Occupancy and bank premises - storm repair, net of tax | - | 213 | 167 | 395 | 1,185 | |||||||||||
| Insurance reimbursement of storm expenditures, net of tax | (210 | ) | - | - | (210 | ) | - | |||||||||
| Core net income | $ | 16,378 | $ | 14,558 | $ | 10,918 | $ | 41,202 | $ | 42,245 | ||||||
| Return on average assets | 0.97 | % | 1.02 | % | 0.95 | % | 0.91 | % | 1.23 | % | ||||||
| Core return on average assets | 1.15 | % | 1.08 | % | 1.00 | % | 1.03 | % | 1.30 | % | ||||||
| Return on common equity | 12.47 | % | 12.22 | % | 9.47 | % | 10.84 | % | 12.60 | % | ||||||
| Core return on average common equity | 14.80 | % | 12.93 | % | 10.03 | % | 12.31 | % | 13.29 | % | ||||||
| Interest Income: | ||||||||||||||||
| Interest income | $ | 63,473 | $ | 54,014 | $ | 41,534 | $ | 161,609 | $ | 128,147 | ||||||
| Core interest income | 63,473 | 54,014 | 41,534 | 161,609 | 128,147 | |||||||||||
| Interest Expense: | ||||||||||||||||
| Interest expense | 9,993 | 4,452 | 4,240 | 18,092 | 12,607 | |||||||||||
| Core interest expense | 9,993 | 4,452 | 4,240 | 18,092 | 12,607 | |||||||||||
| Other Income: | ||||||||||||||||
| Other income | 8,115 | 7,021 | 6,111 | 21,032 | 28,124 | |||||||||||
| Losses on former bank premises and equipment | - | - | 392 | 717 | 932 | |||||||||||
| Losses on sale of securities | 7 | 8 | 11 | 46 | 66 | |||||||||||
| Insurance reimbursement of storm expenditures | (265 | ) | - | - | (265 | ) | ||||||||||
| Core other income | 7,857 | 7,029 | 6,514 | 21,530 | 29,122 | |||||||||||
| Other Expense: | ||||||||||||||||
| Other expense | 40,946 | 36,397 | 29,330 | 111,063 | 86,963 | |||||||||||
| Acquisition-related expenses | (3,521 | ) | (708 | ) | (145 | ) | (5,040 | ) | (249 | ) | ||||||
| Occupancy and bank premises - storm repair | - | (270 | ) | (211 | ) | (501 | ) | (1,499 | ) | |||||||
| Core other expense | $ | 37,425 | $ | 35,419 | $ | 28,974 | $ | 105,522 | $ | 85,215 | ||||||
| Efficiency Ratio: | ||||||||||||||||
| Other expense (a) | $ | 40,946 | $ | 36,397 | $ | 29,330 | $ | 111,063 | $ | 86,963 | ||||||
| Core other expense (c) | $ | 37,425 | $ | 35,419 | $ | 28,974 | $ | 105,522 | $ | 85,215 | ||||||
| Net interest and other income (1) (b) | $ | 61,602 | $ | 56,591 | $ | 43,416 | $ | 164,595 | $ | 143,730 | ||||||
| Core net interest and other income (1) (d) | $ | 61,337 | $ | 56,591 | $ | 43,808 | $ | 165,047 | $ | 144,662 | ||||||
| Efficiency ratio (a/b) | 66.47 | % | 64.32 | % | 67.56 | % | 67.48 | % | 60.50 | % | ||||||
| Core efficiency ratio (c/d) | 61.02 | % | 62.59 | % | 66.14 | % | 63.93 | % | 58.91 | % | ||||||
| Total Average Interest-Earnings Assets | $ | 5,287,346 | $ | 4,984,034 | $ | 4,016,063 | $ | 4,961,274 | $ | 3,915,984 | ||||||
| Net Interest Income: | ||||||||||||||||
| Net interest income | $ | 53,480 | $ | 49,562 | $ | 37,294 | $ | 143,517 | $ | 115,540 | ||||||
| Loan discount accretion | (1,712 | ) | (2,588 | ) | (1,511 | ) | (5,220 | ) | (6,191 | ) | ||||||
| Net interest income excluding loan discount accretion | $ | 51,768 | $ | 46,974 | $ | 35,783 | $ | 138,297 | $ | 109,349 | ||||||
| Net interest margin (2) | 4.05 | % | 3.98 | % | 3.71 | % | 3.86 | % | 3.93 | % | ||||||
| Net interest margin excluding loan discount accretion (2) | 3.92 | % | 3.77 | % | 3.56 | % | 3.72 | % | 3.72 | % | ||||||
| Net interest spread | 3.67 | % | 3.79 | % | 3.51 | % | 3.61 | % | 3.75 | % | ||||||
| Net interest spread excluding loan discount accretion | 3.54 | % | 3.59 | % | 3.36 | % | 3.47 | % | 3.53 | % | ||||||
| (1) Excludes gains/losses on sales of securities. | ||||||||||||||||
| (2) Calculated utilizing a 30/360 day count convention. | ||||||||||||||||
| Business First Bancshares, Inc. | |||||||||
| Non-GAAP Measures | |||||||||
| (Unaudited) | |||||||||
| September 30, | June 30, | September 30, | |||||||
| (Dollars in thousands, except per share data) | 2022 | 2022 | 2021 | ||||||
| Total Shareholders' (Common) Equity: | |||||||||
| Total shareholders' equity | $ | 508,002 | $ | 445,459 | $ | 430,221 | |||
| Preferred stock | (72,010 | ) | - | - | |||||
| Total common shareholders' equity | 435,992 | 445,459 | 430,221 | ||||||
| Goodwill | (88,543 | ) | (88,842 | ) | (60,062 | ) | |||
| Core deposit and customer intangible | (14,567 | ) | (15,093 | ) | (12,835 | ) | |||
| Total tangible common equity | $ | 332,882 | $ | 341,524 | $ | 357,324 | |||
| Total Assets: | |||||||||
| Total assets | $ | 5,806,691 | $ | 5,530,383 | $ | 4,405,217 | |||
| Goodwill | (88,543 | ) | (88,842 | ) | (60,062 | ) | |||
| Core deposit and customer intangible | (14,567 | ) | (15,093 | ) | (12,835 | ) | |||
| Total tangible assets | $ | 5,703,581 | $ | 5,426,448 | $ | 4,332,320 | |||
| Common shares outstanding | 22,605,136 | 22,579,451 | 20,383,504 | ||||||
| Book value per common share | $ | 19.29 | $ | 19.73 | $ | 21.11 | |||
| Tangible book value per common share | $ | 14.73 | $ | 15.13 | $ | 17.53 | |||
| Common equity to total assets | 7.51 | % | 8.05 | % | 9.77 | % | |||
| Tangible common equity to tangible assets | 5.84 | % | 6.29 | % | 8.25 | % | |||
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