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

Globe Newswire 25-Jan-2023 4:01 PM

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

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

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

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

Quarterly Highlights

  • Solid Loan Growth. Total loans held for investment at December 31, 2022, were $4.6 billion, an increase of $176.3 million compared to September 30, 2022, or 3.98% for the quarter, 15.79% annualized. Based on unpaid principal balances, 44.1% of loan growth for the quarter ended December 31, 2022, was attributable to our Dallas Fort Worth region, 31.2% to the Houston region, 19.7% to the Capital region, and 13.6% to the Greater New Orleans region. As of December 31, 2022, approximately 35% of Business First's loan portfolio resides in Texas based on unpaid principal balance.
  • Management of Net Interest Margin. For the quarter ended December 31, 2022, net interest income totaled $56.1 million and net interest margin and net interest spread were 4.06% and 3.43%, respectively, compared to $53.5 million, 4.01% and 3.65% for the quarter ended September 30, 2022. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $4.2 million) were 3.75% and 3.13%, respectively, for the quarter ended December 31, 2022, compared to 3.88% and 3.52% (excluding loan discount accretion of $1.7 million) for the quarter ended September 30, 2022. Net interest margin excluding loan discount accretion declined from the linked quarter due to a $650,000 acceleration of interest income from full repayment of a nonaccrual loan in July 2022, which accounted for approximately five basis points of the decrease, as well as increased deposit and Federal Home Loan Bank (FHLB) short-term fundings costs during the fourth quarter of 2022, which were mostly offset by increased loan offering rates, repricing, and volume.
  • Solid Return on Assets and Equity. Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.12% and 13.56%, respectively, for the quarter ended December 31, 2022, compared to 0.96% and 12.37%, respectively, for the quarter ended September 30, 2022. Non-GAAP core return on average assets and common equity, each on an annualized basis, were 1.10% and 13.37%, respectively, for the quarter ended December 31, 2022, compared to 1.14% and 14.68%, respectively, for the quarter ended September 30, 2022.
  • Overall Credit Quality Remains Stable. Ratios of nonperforming loans to loans held for investment and nonperforming assets to total assets remained steady at 0.25% and 0.21%, respectively at December 31, 2022, and September 30, 2022.
  • Common Stock Issuance. Business First completed an issuance of 2,500,000 shares of common stock in an underwritten public offering at a public offering price of $20.00 per share on October 17, 2022.

Statement of Financial Condition

Loans

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

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

Credit Quality

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

Securities

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

Deposits

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

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

Borrowings

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

Shareholders' Equity

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

Results of Operations

Net Interest Income

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

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

Provision for Loan Losses

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

Other Income

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

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

Other Expenses

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

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

Return on Assets and Common Equity

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

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

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

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

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

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

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

Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com


Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
 For the Quarter Ended
 December 31,September 30,December 31,
(Dollars in thousands)202220222021
    
Balance Sheet Ratios   
    
Loans (HFI) to Deposits 95.56% 96.59% 78.23%
Shareholders' Equity to Assets Ratio 9.69% 8.75% 9.17%
    
Loans Receivable Held for Investment (HFI)   
    
Commercial (1)$1,090,343 $1,012,778 $721,385 
Real Estate:   
Construction and Land 722,074  636,869  548,528 
Farmland 193,587  190,829  87,463 
1-4 Family Residential 557,741  545,880  467,699 
Multi-Family Residential 98,637  102,056  97,508 
Nonfarm Nonresidential 1,826,819  1,823,408  1,144,426 
Total Real Estate 3,398,858  3,299,042  2,345,624 
Consumer and Other 116,975  118,080  122,599 
Total Loans (Held for Investment)$4,606,176 $4,429,900 $3,189,608 
    
Allowance for Loan Losses   
    
Balance, Beginning of Period$35,201 $32,317 $28,146 
Charge-offs – Quarterly (387) (667) (385)
Recoveries – Quarterly 313  278  51 
Provision for Loan Losses – Quarterly 3,051  3,273  1,300 
Balance, End of Period$38,178 $35,201 $29,112 
    
Allowance for Loan Losses to Total Loans (HFI) 0.83% 0.79% 0.91%
Net Charge-offs (Recoveries) to Average Quarterly Total Loans 0.00% 0.01% 0.01%
    
Remaining Loan Purchase Discount$27,000 $36,089 $27,573 
    
Nonperforming Assets   
    
Nonperforming Loans:   
Nonaccrual Loans (2)$11,054 $9,843 $12,868 
Loans Past Due 90 Days or More (2) 335  1,121  222 
Total Nonperforming Loans 11,389  10,964  13,090 
Other Nonperforming Assets:   
Other Real Estate Owned 1,372  840  1,427 
Other Nonperforming Assets 62  180  - 
Total Other Nonperforming Assets 1,434  1,020  1,427 
Total Nonperforming Assets$12,823 $11,984 $14,517 
    
Nonperforming Loans to Total Loans (HFI) 0.25% 0.25% 0.41%
Nonperforming Assets to Total Assets 0.21% 0.21% 0.31%
    
(1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $2.8 million
of the commercial portfolio as of December 31, 2022.   
SBA PPP loans accounted for $3.0 million of the commercial portfolio as of September 30, 2022.
SBA PPP loans accounted for $5.4 million of the commercial portfolio as of December 31, 2021.
    
(2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if
the Company does not expect to receive payment in full, as the Company is currently accreting interest income
over the expected life of the loans.   
    


Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
       
 Three Months Ended Year Ended
 December 31,September 30,December 31, December 31,December 31,
(Dollars in thousands, except per share data)202220222021 20222021
       
Per Share Data      
       
Basic Earnings per Common Share$0.68 $0.61 $0.59  $2.34 $2.54 
Diluted Earnings per Common Share 0.67  0.61  0.59   2.32  2.53 
Dividends per Common Share 0.12  0.12  0.12   0.48  0.46 
Book Value per Common Share 20.25  19.29  21.24   20.25  21.24 
       
       
Average Common Shares Outstanding 24,542,120  22,468,939  20,299,704   22,633,478  20,502,249 
Average Diluted Common Shares Outstanding 24,757,143  22,650,640  20,462,317   22,817,493  20,634,281 
End of Period Common Shares Outstanding 25,110,313  22,605,136  20,400,349   25,110,313  20,400,349 
       
       
Annualized Performance Ratios      
       
Return to Common Shareholders on Average Assets (1) 1.12% 0.96% 1.04%  0.97% 1.18%
Return to Common Shareholders on Average Common Equity (1) 13.56% 12.37% 11.11%  11.59% 12.25%
Net Interest Margin (1) 4.06% 4.01% 3.54%  3.92% 3.84%
Net Interest Spread (1) 3.43% 3.65% 3.35%  3.57% 3.65%
Efficiency Ratio (2) 59.60% 66.47% 65.55%  65.26% 61.84%
       
Total Quarterly/YTD Average Assets$5,899,972 $5,702,312 $4,584,460  $5,473,508 $4,403,670 
Total Quarterly/YTD Average Common Equity 486,338  442,778  430,834   456,388  425,692 
       
Other Expenses      
       
Salaries and Employee Benefits$22,205 $21,906 $17,355  $85,222 $65,825 
Occupancy and Bank Premises 2,285  2,485  1,522   9,244  7,238 
Depreciation and Amortization 1,700  1,850  793   6,853  5,792 
Data Processing 2,201  2,155  2,032   8,358  8,137 
FDIC Assessment Fees 611  839  668   2,854  2,194 
Legal and Other Professional Fees 462  619  480   2,359  2,679 
Advertising and Promotions 1,571  1,144  999   3,949  2,712 
Utilities and Communications 759  833  586   3,193  2,475 
Ad Valorem Shares Tax 962  813  449   3,400  2,499 
Directors' Fees 270  288  207   972  790 
Other Real Estate Owned Expenses and Write-Downs 11  133  76   193  736 
Merger and Conversion-Related Expenses 138  3,244  266   4,808  515 
Other 5,171  4,637  3,982   18,004  15,469 
Total Other Expenses$38,346 $40,946 $29,415  $149,409 $117,061 
       
Other Income      
       
Service Charges on Deposit Accounts$2,265 $2,116 $1,800  $8,272 $6,813 
(Loss)/Gain on Sales of Securities (2) (7) 444   (48) 378 
Debit Card and ATM Fee Income 1,582  1,667  1,554   6,407  6,199 
Bank-Owned Life Insurance Income 526  561  367   1,931  1,396 
Gain on Sales of Loans 59  264  3   574  10,117 
Mortgage Origination Income 105  57  169   532  866 
Fees and Brokerage Commission 1,760  1,620  1,721   6,964  5,015 
Gain (Loss) on Sales of Other Real Estate Owned 3  12  (35)  33  (1,122)
Gain (Loss) on Disposal of Other Assets (1) 1  (9)  (717) 112 
Gain on Sale of Branch -  -  492   -  492 
Pass-Through Income from Other Investments 608  572  555   1,347  2,615 
Other 1,373  1,252  (86)  4,015  2,901 
Total Other Income$8,278 $8,115 $6,975  $29,310 $35,782 
       
       
(1) Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention.
(2) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities.
       


Business First Bancshares, Inc.
Consolidated Balance Sheets
(Unaudited)
    
 December 31,September 30,December 31,
(Dollars in thousands) 2022  2022  2021 
    
Assets   
    
Cash and Due From Banks$152,740 $152,671 $68,375 
Federal Funds Sold 15,606  11,137  227,044 
Securities Available for Sale, at Fair Values 890,751  884,960  1,021,061 
Mortgage Loans Held for Sale 304  545  1,200 
Loans and Lease Receivable 4,606,176  4,429,900  3,189,608 
Allowance for Loan Losses (38,178) (35,201) (29,112)
Net Loans and Lease Receivable 4,567,998  4,394,699  3,160,496 
Premises and Equipment, Net 63,177  63,765  58,155 
Accrued Interest Receivable 25,666  22,454  19,597 
Other Equity Securities 37,467  39,390  16,619 
Other Real Estate Owned 1,372  840  1,427 
Cash Value of Life Insurance 91,958  88,743  60,380 
Deferred Taxes, Net 31,194  36,691  8,822 
Goodwill 88,543  88,543  59,894 
Core Deposit and Customer Intangibles 14,042  14,567  12,203 
Other Assets 9,642  7,686  11,105 
    
Total Assets$5,990,460 $5,806,691 $4,726,378 
    
    
Liabilities   
    
Deposits   
Noninterest-Bearing$1,549,381 $1,613,310 $1,291,036 
Interest-Bearing 3,270,964  2,972,795  2,786,247 
Total Deposits 4,820,345  4,586,105  4,077,283 
    
Securities Sold Under Agreements to Repurchase 20,208  22,072  19,121 
Fed Funds Purchased 14,057  -  - 
Short-Term Borrowings 9  5,009  20 
Subordinated Debt 110,749  110,902  81,427 
Subordinated Debt - Trust Preferred Securities 5,000  5,000  5,000 
Federal Home Loan Bank Borrowings 410,100  534,059  82,022 
Accrued Interest Payable 2,092  1,023  1,354 
Other Liabilities 27,419  34,519  26,783 
    
Total Liabilities 5,409,979  5,298,689  4,293,010 
    
Shareholders' Equity   
    
Preferred Stock 71,930  72,010  - 
Common Stock 25,110  22,605  20,400 
Additional Paid-In Capital 393,690  347,721  292,271 
Retained Earnings 163,955  150,336  121,874 
Accumulated Other Comprehensive Income (Loss) (74,204) (84,670) (1,177)
    
Total Shareholders' Equity 580,481  508,002  433,368 
    
Total Liabilities and Shareholders' Equity$5,990,460 $5,806,691 $4,726,378 
    


Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
       
  Three Months Ended Year Ended
 December 31,September 30,December 31, December 31,December 31,
(Dollars in thousands) 2022  2022  2021  2022  2021
       
Interest Income:      
Interest and Fees on Loans$69,364 $58,846 $38,337 $218,032 $156,791
Interest and Dividends on Securities 4,316  4,200  3,904  16,503  13,520
Interest on Federal Funds Sold and Due From Banks 825  427  50  1,579  127
Total Interest Income 74,505  63,473  42,291  236,114  170,438
       
Interest Expense:      
Interest on Deposits 13,307  6,286  2,645  24,413  12,183
Interest on Borrowings 5,138  3,707  1,302  12,124  4,371
Total Interest Expense 18,445  9,993  3,947  36,537  16,554
       
Net Interest Income 56,060  53,480  38,344  199,577  153,884
       
Provision for Loan Losses: 3,051  3,273  1,300  10,886  8,047
       
Net Interest Income After Provision for Loan Losses 53,009  50,207  37,044  188,691  145,837
       
Other Income:      
Service Charges on Deposit Accounts 2,265  2,116  1,800  8,272  6,813
(Loss)/Gain on Sales of Securities (2) (7) 444  (48) 378
Gain on Sales of Loans 59  264  3  574  10,117
Other Income 5,956  5,742  4,728  20,512  18,474
Total Other Income 8,278  8,115  6,975  29,310  35,782
       
Other Expenses:      
Salaries and Employee Benefits 22,205  21,906  17,355  85,222  65,825
Occupancy and Equipment Expense 4,918  5,122  3,857  19,367  15,750
Merger and Conversion-Related Expense 138  3,244  266  4,808  515
Other Expenses 11,085  10,674  7,937  40,012  34,971
Total Other Expenses 38,346  40,946  29,415  149,409  117,061
       
Income Before Income Taxes: 22,941  17,376  14,604  68,592  64,558
       
Provision for Income Taxes: 4,974  3,576  2,536  14,337  12,422
       
Net Income: 17,967  13,800  12,068  54,255  52,136
       
Preferred Stock Dividends: (1,350) -  -  (1,350) -
       
Net Income Available to Common Shareholders$16,617 $13,800 $12,068 $52,905 $52,136
       


Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
            
            
 Three Months Ended
 December 31, 2022 September 30, 2022 December 31, 2021
 Average   Average   Average  
 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)$4,516,794 $69,3576.09% $4,278,184 $58,8395.46% $3,106,477 $38,3184.89%
SBA PPP Loans 2,849  70.99%  2,953  70.99%  7,733  190.99%
Securities 901,236  4,3161.90%  951,479  4,2001.75%  1,041,437  3,9041.49%
Interest-Bearing Deposit in Other Banks 62,013  8255.28%  54,730  4273.10%  143,488  500.14%
Total Interest-Earning Assets 5,482,892  74,5055.39%  5,287,346  63,4734.76%  4,299,135  42,2913.90%
Allowance for Loan Losses (35,951)    (33,215)    (28,379)  
Noninterest-Earning Assets 453,031     448,181     313,704   
Total Assets$5,899,972 $74,505  $5,702,312 $63,473  $4,584,460 $42,291 
            
            
Liabilities and Shareholders' Equity           
            
Interest-Bearing Liabilities:           
Interest-Bearing Deposits$3,157,513 $13,3071.67% $3,009,565 $6,2860.83% $2,653,041 $2,6450.40%
Subordinated Debt 110,800  1,3634.88%  110,953  1,3324.76%  81,427  1,0265.00%
Subordinated Debt - Trust Preferred Securities 5,000  856.74%  5,000  685.40%  5,000  423.33%
Advances from Federal Home Loan Bank (FHLB) 436,233  3,5553.23%  396,267  2,1942.20%  83,374  2291.09%
First National Bankers Bank Line of Credit 1,667  307.14%  5,000  705.55%  -  -0.00%
Other Borrowings 25,815  1051.61%  22,381  430.76%  25,774  50.08%
Total Interest-Bearing Liabilities 3,737,028  18,4451.96%  3,549,166  9,9931.12%  2,848,616  3,9470.55%
            
Noninterest-Bearing Liabilities:           
Noninterest-Bearing Deposits$1,567,507    $1,626,055    $1,276,279   
Other Liabilities 37,138     60,310     28,731   
Total Noninterest-Bearing Liabilities 1,604,645     1,686,365     1,305,010   
Shareholders' Equity:           
Common Shareholders' Equity 486,338     442,778     430,834   
Preferred Equity 71,961     24,003     -   
Total Shareholder's Equity 558,299     466,781     430,834   
Total Liabilities and Shareholders' Equity$5,899,972    $5,702,312    $4,584,460   
            
Net Interest Spread  3.43%   3.65%   3.35%
Net Interest Income $56,060   $53,480   $38,344 
Net Interest Margin  4.06%   4.01%   3.54%
            
Overall Cost of Funds  1.38%` 0.77%   0.38%
            
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention.
            


Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
        
        
 Year Ended
 December 31, 2022 December 31, 2021
 Average   Average  
 OutstandingInterest Earned /Average OutstandingInterest Earned /Average
(Dollars in thousands)BalanceInterest PaidYield / Rate BalanceInterest PaidYield / Rate
        
Assets       
        
Interest-Earning Assets:       
Total Loans (Excluding SBA PPP)$4,016,947 $217,9975.43% $2,878,306 $148,6385.16%
SBA PPP Loans 3,489  351.00%  158,714  8,1535.14%
Securities 956,232  16,5031.73%  870,282  13,5201.55%
Interest-Bearing Deposit in Other Banks 115,016  1,5791.37%  104,471  1270.12%
Total Interest-Earning Assets 5,091,684  236,1144.64%  4,011,773  170,4384.25%
Allowance for Loan Losses (32,093)    (26,132)  
Noninterest-Earning Assets 413,917     418,029   
Total Assets$5,473,508 $236,114  $4,403,670 $170,438 
        
        
Liabilities and Shareholders' Equity       
        
Interest-Bearing Liabilities:       
Interest-Bearing Deposits$3,007,882 $24,4130.81% $2,604,825 $12,1830.47%
Subordinated Debt 106,054  5,1084.82%  68,183  3,5265.17%
Subordinated Debt - Trust Preferred Securities 5,000  2474.94%  5,000  1683.36%
Advances from Federal Home Loan Bank (FHLB) 271,025  6,4792.39%  47,325  5541.17%
First National Bankers Bank Line of Credit 2,500  1214.84%  -  -0.00%
Other Borrowings 23,197  1690.73%  27,182  1230.45%
Total Interest-Bearing Liabilities 3,415,658  36,5371.07%  2,752,515  16,5540.60%
        
Noninterest-Bearing Liabilities:       
Noninterest-Bearing Deposits 1,539,938     1,196,970   
Other Liabilities 37,533     28,493   
Total Noninterest-Bearing Liabilities 1,577,471     1,225,463   
Shareholders' Equity:       
Common Shareholders' Equity 456,388     425,692   
Preferred Equity 23,991     -   
Total Shareholder's Equity 480,379     425,692   
Total Liabilities and Shareholders' Equity$5,473,508    $4,403,670   
        
Net Interest Spread  3.57%   3.65%
Net Interest Income $199,577   $153,884 
Net Interest Margin  3.92%   3.84%
        
Overall Cost of Funds  0.74%   0.42%
        
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention.
        


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
       
 Three Months Ended Year Ended
 December 31,September 30,December 31,December 31,December 31,
(Dollars in thousands, except per share data) 2022  2022  2021   2022  2021 
       
Interest Income:      
Interest income$74,505 $63,473 $42,291  $236,114 $170,438 
Core interest income 74,505  63,473  42,291   236,114  170,438 
Interest Expense:      
Interest expense 18,445  9,993  3,947   36,537  16,554 
Core interest expense 18,445  9,993  3,947   36,537  16,554 
Provision for Loan Losses: (b)      
Provision for loan losses 3,051  3,273  1,300   10,886  8,047 
Core provision expense 3,051  3,273  1,300   10,886  8,047 
Other Income:      
Other income 8,278  8,115  6,975   29,310  35,782 
Losses on former bank premises and equipment -  -  78   717  1,010 
Losses/(Gains) on sale of securities 2  7  (444)  48  (378)
Gain on sale of branch -  -  (492)  -  (492)
Insurance reimbursement of storm expenditures (422) (265) -   (687) - 
Core other income 7,858  7,857  6,117   29,388  35,922 
Other Expense:      
Other expense 38,346  40,946  29,415   149,409  117,061 
Acquisition-related expenses (2) (138) (3,521) (266)  (5,178) (515)
Occupancy and bank premises - storm repair -  -  (57)  (501) (1,556)
Core other expense 38,208  37,425  29,092   143,730  114,990 
Pre-Tax Income: (a)      
Pre-tax income 22,941  17,376  14,604   68,592  64,558 
Losses on former bank premises and equipment -  -  78   717  1,010 
Losses/(Gains) on sale of securities 2  7  (444)  48  (378)
Insurance reimbursment of storm expenditures (422) (265) -   (687) - 
Gain on sale of branch -  -  (492)  -  (492)
Acquisition-related expenses (2) 138  3,521  266   5,178  515 
Occupancy and bank premises - storm repair -  -  57   501  1,556 
Core pre-tax income 22,659  20,639  14,069   74,349  66,769 
Provision for Income Taxes: (1)      
Provision for income taxes 4,974  3,576  2,536   14,337  12,422 
Tax on losses on former bank premises and equipment -  -  16   151  211 
Tax on losses/(gains) on sale of securities -  1  (93)  10  (79)
Tax on insurance reimbursement of storm expenditures (89) (55) -   (144) - 
Tax on sale of branch -  -  (138)  -  (138)
Tax on acquisition-related expenses (2) 29  739  62   942  108 
Tax on occupancy and bank premises - storm repair -  -  12   106  326 
Core provision for income taxes 4,914  4,261  2,395   15,402  12,850 
Net Income Available to Common Shareholders:      
Net income available to common shareholders 16,617  13,800  12,068   52,905  52,136 
Losses on former bank premises and equipment, net of tax -  -  62   566  799 
Losses/(Gains) on sale of securities, net of tax 2  6  (351)  38  (299)
Insurance reimbursement of storm expenditures, net of tax (333) (210) -   (543) - 
(Gains) on sale of branch -  -  (354)  -  (354)
Acquisition-related expenses (2), net of tax 109  2,782  204   4,236  407 
Occupancy and bank premises - storm repair, net of tax -  -  45   395  1,230 
Core net income available to common shareholders$16,395 $16,378 $11,674  $57,597 $53,919 
       
Pre-tax, pre-provision earnings available to common shareholders (a+b)$25,992 $20,649 $15,904  $79,478 $72,605 
Losses on former bank premises and equipment -  -  78   717  1,010 
Loss/(Gain) on sale of securities 2  7  (444)  48  (378)
Insurance reimbursement of storm expenditures (422) (265) -   (687) - 
(Gains) on sale of branch -  -  (492)  -  (492)
Acquisition-related expenses (2) 138  3,521  266   5,178  515 
Occupancy and bank premises - storm repair -  -  57   501  1,556 
Core pre-tax, pre-provision earnings$25,710 $23,912 $15,369  $85,235 $74,816 
       
Average Diluted Common Shares Outstanding 24,757,143  22,650,640  20,462,317   22,817,493  20,634,281 
       
Diluted Earnings Per Common Share:      
Diluted earnings per common share$0.67 $0.61 $0.59  $2.32 $2.53 
Losses on former bank premises and equipment, net of tax -  -  (0.00)  0.02  0.04 
Loss/(Gain) on sale of securities, net of tax 0.00  0.00  (0.01)  0.00  (0.02)
Insurance reimbursement of storm expenditures, net of tax (0.01) (0.01) 0.00   (0.02) - 
(Gains) on sale of branch, net of tax -  -  (0.02)  -  (0.02)
Acquisition-related expenses (2), net of tax 0.00  0.12  0.01   0.19  0.02 
Occupancy and bank premises -storm repair, net of tax -  -  -   0.02  0.06 
Core diluted earnings per common share$0.66 $0.72 $0.57  $2.52 $2.61 
       
Pre-tax, pre-provision profit diluted earnings per common share$1.05 $0.91 $0.78  $3.48 $3.52 
Losses on former bank premises and equipment -  -  0.00   0.03  0.05 
Loss/(Gain) on sale of securities 0.00  0.00  (0.02)  0.00  (0.02)
Insurance reimbursement of storm expenditures (0.02) (0.01) 0.00   (0.03) - 
(Gains) on sale of branch -  -  (0.02)  -  (0.02)
Acquisition-related expenses (2) 0.01  0.16  0.01   0.23  0.02 
Occupancy and bank premises - storm repair -  -  -   0.03  0.08 
Core pre-tax, pre-provision diluted earnings per common share$1.04 $1.06 $0.75  $3.74 $3.63 
       
(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 Year Ended
 December 31,September 30,December 31, December 31,December 31,
(Dollars in thousands, except per share data)202220222021 20222021
       
       
Total Quarterly/YTD Average Assets$5,899,972 $5,702,312 $4,584,460  $5,473,508 $4,403,670 
Total Quarterly/YTD Average Common Equity$486,338 $442,778 $430,834  $456,388 $425,692 
       
Net Income Available to Common Shareholders:      
Net income available to common shareholders$16,617 $13,800 $12,068  $52,905 $52,136 
Losses on former bank premises and equipment, net of tax -  -  62   566  799 
Losses/(Gains) on sale of securities, net of tax 2  6  (351)  38  (299)
Insurance reimbursement of storm expenditures, net of tax (333) (210) -   (543) - 
(Gains) on sale of branch, net of tax -  -  (354)  -  (354)
Acquisition-related expenses, net of tax 109  2,782  204   4,236  407 
Occupancy and bank premises - storm repair, net of tax -  -  45   395  1,230 
Core net income available to common shareholders$16,395 $16,378 $11,674  $57,597 $53,919 
       
Return to common shareholders on average assets (annualized) (2) 1.12% 0.96% 1.04%  0.97% 1.18%
Core return on average assets (annualized) (2) 1.10% 1.14% 1.01%  1.05% 1.22%
Return to common shareholders on average common equity (annualized) (2) 13.56% 12.37% 11.11%  11.59% 12.25%
Core return on average common equity (annualized) (2) 13.37% 14.68% 10.75%  12.62% 12.67%
       
Interest Income:      
Interest income$74,505 $63,473 $42,291  $236,114 $170,438 
Core interest income 74,505  63,473  42,291   236,114  170,438 
Interest Expense:      
Interest expense 18,445  9,993  3,947   36,537  16,554 
Core interest expense 18,445  9,993  3,947   36,537  16,554 
Other Income:      
Other income 8,278  8,115  6,975   29,310  35,782 
Losses on former bank premises and equipment -  -  78   717  1,010 
Loss/(Gain) on sale of securities 2  7  (444)  48  (378)
Gain on sale of branch -  -  (492)  -  (492)
Insurance reimbursement of storm expenditures (422) (265) -   (687) - 
Core other income 7,858  7,857  6,117   29,388  35,922 
Other Expense:      
Other expense 38,346  40,946  29,415   149,409  117,061 
Acquisition-related expenses (138) (3,521) (266)  (5,178) (515)
Occupancy and bank premises - storm repair -  -  (57)  (501) (1,556)
Core other expense$38,208 $37,425 $29,092  $143,730 $114,990 
       
Efficiency Ratio:      
Other expense (a)$38,346 $40,946 $29,415  $149,409 $117,061 
Core other expense (c)$38,208 $37,425 $29,092  $143,730 $114,990 
Net interest and other income (1) (b)$64,340 $61,602 $44,875  $228,935 $189,288 
Core net interest and other income (1) (d)$63,918 $61,337 $44,461  $228,965 $189,806 
Efficiency ratio (a/b) 59.60% 66.47% 65.55%  65.26% 61.84%
Core efficiency ratio (c/d) 59.78% 61.02% 65.43%  62.77% 60.58%
       
Total Average Interest-Earnings Assets$5,482,892 $5,287,346 $4,299,135  $5,091,684 $4,011,773 
       
Net Interest Income:       
Net interest income$56,060 $53,480 $38,344  $199,577 $153,884 
Loan discount accretion (4,212) (1,712) (1,559)  (9,432) (7,750)
Net interest income excluding loan discount accretion$51,848 $51,768 $36,785  $190,145 $146,134 
       
Net interest margin (2) 4.06% 4.01% 3.54%  3.92% 3.84%
Net interest margin excluding loan discount accretion (2) 3.75% 3.88% 3.39%  3.73% 3.64%
Net interest spread (2) 3.43% 3.65% 3.35%  3.57% 3.65%
Net interest spread excluding loan discount accretion (2) 3.13% 3.52% 3.21%  3.38% 3.45%
       
(1) Excludes gains/losses on sales of securities.      
(2) Calculated utilizing an Actual/365 day count convention.      
       


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
    
    
 December 31,September 30,December 31,
(Dollars in thousands, except per share data)202220222021
    
Total Shareholders' (Common) Equity:   
Total shareholders' equity$580,481 $508,002 $433,368 
Preferred stock (71,930) (72,010) - 
Total common shareholders' equity 508,551  435,992  433,368 
Goodwill (88,543) (88,543) (59,894)
Core deposit and customer intangible (14,042) (14,567) (12,203)
Total tangible common equity$405,966 $332,882 $361,271 
    
    
Total Assets:   
Total assets$5,990,460 $5,806,691 $4,726,378 
Goodwill (88,543) (88,543) (59,894)
Core deposit and customer intangible (14,042) (14,567) (12,203)
Total tangible assets$5,887,875 $5,703,581 $4,654,281 
    
Common shares outstanding 25,110,313  22,605,136  20,400,349 
    
Book value per common share$20.25 $19.29 $21.24 
Tangible book value per common share$16.17 $14.73 $17.71 
Common equity to total assets 8.49% 7.51% 9.17%
Tangible common equity to tangible assets 6.89% 5.84% 7.76%

 

 

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