Business First Bancshares, Inc., Announces Financial Results For Q1 2022
Business First Bancshares reported unaudited results for Q1 2022, showing a net income of $8.7 million or $0.41 per diluted share, down from $12.1 million in Q4 2021. Core net income was $10.3 million or $0.49 per diluted share. Key highlights include a 25% annualized loan growth, completion of the Texas Citizens Bank acquisition, and stabilization in net interest margin at 3.51%. A quarterly dividend of $0.12 per share was declared. However, there were increases in expenses linked to the acquisition and salaries.
- Completed acquisition of Texas Citizens Bank, expanding market presence.
- Strong organic loan growth at 25% annualized rate.
- Stabilized net interest margin at 3.51%.
- Net income decreased by $3.3 million from previous quarter.
- Core net income also dropped by $1.4 million from previous quarter.
- Overall expenses increased by $3.6 million from prior quarter.
BATON ROUGE, La., April 26, 2022 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended March 31, 2022, including net income of
“Over the first quarter we completed both the acquisition of Texas Citizens Bank in Houston and organically grew overall loans across our pre-acquisition footprint at a strong
On April 26, 2022, Business First’s board of directors declared a quarterly dividend based upon financial performance for the first quarter in the amount of
Quarterly Highlights
- Completed Texas Citizens Acquisition. Business First completed its previously announced acquisition of Texas Citizens Bancorp, Inc. (Texas Citizens), based in Pasadena, Texas on March 1, 2022. As of February 28, 2022, Texas Citizens had consolidated total assets of
$534.2 million , loans of$349.5 million , and deposits of$477.2 million . - Strong Loan Growth. Business First continued its strong organic loan growth in Texas and New Orleans due to the investments made over the course of 2021. Total loans held for investment at March 31, 2022, were
$3.7 billion , an increase of$558.9 million compared to December 31, 2021, or17.52% for the quarter. Excluding the decrease in Small Business Administration (SBA) Paycheck Protection Program (PPP) loans and loans acquired from Texas Citizens on March 1, 2022, total loans held for investment increased from the quarter ended December 31, 2021, by6.43% or25.71% annualized, of which71.4% was attributable to Texas and18.4% from our New Orleans market based on unpaid principal balance. As of March 31, 2022, approximately31% of Business First’s loan portfolio resides in Texas based on unpaid principal balances. - Stabilized Net Interest Margin. For the quarter ended March 31, 2022, net interest income totaled
$40.5 million and net interest margin and net interest spread were3.51% and3.35% , respectively, compared to$38.3 million ,3.57% and3.38% for the quarter ended December 31, 2021. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of$920,000) were3.43% and3.27% , respectively, for the quarter ended March 31, 2022, compared to3.42% and3.24% (excluding loan discount accretion of$1.6 million ) for the quarter ended December 31, 2021. Non-GAAP net interest margin rose one basis point over the linked quarter despite the negative impact of two fewer days during the quarter ended March 31, 2022. - Continued Strong Credit Quality. Credit quality remained relatively stable from the linked quarter. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from
0.41% and0.31% , respectively, at December 31, 2021, to0.29% and0.23% at March 31, 2022. The reduction was partially attributable to charge-offs during the quarter ended March 31, 2022, and the addition of Texas Citizens. Excluding the charge-offs and the addition of Texas Citizens, credit quality slightly improved over the linked quarter.
Financial Condition
March 31, 2022, Compared to December 31, 2021
Loans
Loans held for investment increased
Excluding the net decrease in SBA PPP loans and loans acquired from Texas Citizens on March 1, 2022, total loans held for investment increased for the quarter ended March 31, 2022, by
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from
Total Shareholders’ Equity
Book value per common share was
On a non-GAAP basis, tangible book value per share was
March 31, 2022, Compared to March 31, 2021
Loans
Total loans held for investment increased by
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from
Total Shareholders’ Equity
Book value per common share was
Results of Operations
First Quarter 2022 Compared to Fourth Quarter 2021
Net Income and Diluted Earnings Per Share
For the quarter ended March 31, 2022, net income was
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2022, was
Interest Income
For the quarter ended March 31, 2022, net interest income totaled
Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of
Interest Expense
For the quarter ended March 31, 2022, overall cost of funds (which includes noninterest-bearing deposits) decreased by five basis points, from
Other Income
For the quarter ended March 31, 2022, other income was lower by
Other Expenses
For the quarter ended March 31, 2022, other expense increased by
Provision for Loan Losses
During the quarter ended March 31, 2022, Business First recorded a provision for loan losses of
Return on Assets and Equity
Return on average assets and equity, each on an annualized basis, were
First Quarter 2022 Compared to First Quarter 2021
Net Income and Diluted Earnings Per Share
For the quarter ended March 31, 2022, net income was
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2022, was
Interest Income
For the quarter ended March 31, 2022, net interest income totaled
Average yield on total interest-earning assets, net interest margin, and net interest spread were negatively impacted for the quarter ended March 31, 2022, compared to the quarter ended March 31, 2021, by lower yielding loans, including SBA PPP loans, and securities, offset partially by lower deposit and borrowing yields.
Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of
Interest Expense
For the quarter ended March 31, 2022, overall cost of funds (which includes noninterest-bearing deposits) decreased by eight basis points, from
Other Income
For the quarter ended March 31, 2022, the increase in other income of
Other Expenses
For the quarter ended March 31, 2022, the increase in other expense was
Provision for Loan Losses
During the quarter ended March 31, 2022, Business First recorded a provision for loan losses of
Return on Assets and Equity
Return on average assets and return on average equity, each on an annualized basis, were
About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has
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 | |||||||||
| March 31, | December 31, | March 31, | |||||||
| (Dollars in thousands) | 2022 | 2021 | 2021 | ||||||
| Balance Sheet Ratios | |||||||||
| Loans (HFI) to Deposits | 80.48 | % | 78.23 | % | 78.83 | % | |||
| Shareholders’ Equity to Assets Ratio | 8.52 | % | 9.17 | % | 9.38 | % | |||
| Loans Receivable Held for Investment | |||||||||
| Commercial (1) | $ | 817,093 | $ | 721,385 | $ | 962,099 | |||
| Real Estate: | |||||||||
| Construction and Land | 581,661 | 548,528 | 418,234 | ||||||
| Farmland | 149,270 | 87,463 | 52,861 | ||||||
| 1-4 Family Residential | 485,067 | 467,699 | 460,907 | ||||||
| Multi-Family Residential | 109,773 | 97,508 | 77,390 | ||||||
| Nonfarm Nonresidential | 1,481,046 | 1,144,426 | 966,416 | ||||||
| Total Real Estate | 2,806,817 | 2,345,624 | 1,975,808 | ||||||
| Consumer and Other (1) | 124,588 | 122,599 | 104,071 | ||||||
| Total Loans (Held for Investment) | $ | 3,748,498 | $ | 3,189,608 | $ | 3,041,978 | |||
| Allowance for Loan Losses | |||||||||
| Balance, Beginning of Period | $ | 29,112 | $ | 28,146 | $ | 22,024 | |||
| Charge-offs – Quarterly | (1,668 | ) | (385 | ) | (309 | ) | |||
| Recoveries – Quarterly | 184 | 51 | 177 | ||||||
| Provision for Loan Losses – Quarterly | 1,617 | 1,300 | 3,359 | ||||||
| Balance, End of Period | $ | 29,245 | $ | 29,112 | $ | 25,251 | |||
| Allowance for Loan Losses to Total Loans (HFI) | 0.78 | % | 0.91 | % | 0.83 | % | |||
| Net Charge-offs to Average Total Loans | 0.04 | % | 0.01 | % | 0.00 | % | |||
| Remaining Loan Purchase Discount | $ | 40,623 | $ | 27,573 | $ | 32,517 | |||
| Nonperforming Assets | |||||||||
| Nonperforming Loans: | |||||||||
| Nonaccrual Loans (2) | $ | 10,784 | $ | 12,868 | $ | 11,956 | |||
| Loans Past Due 90 Days or More (2) | 26 | 222 | 1,479 | ||||||
| Total Nonperforming Loans | 10,810 | 13,090 | 13,435 | ||||||
| Other Nonperforming Assets: | |||||||||
| Other Real Estate Owned | 1,369 | 1,427 | 8,851 | ||||||
| Other Nonperforming Assets | 84 | - | 623 | ||||||
| Total Other Nonperforming Assets | 1,453 | 1,427 | 9,474 | ||||||
| Total Nonperforming Assets | $ | 12,263 | $ | 14,517 | $ | 22,909 | |||
| Nonperforming Loans to Total Loans (HFI) | 0.29 | % | 0.41 | % | 0.44 | % | |||
| Nonperforming Assets to Total Assets | 0.23 | % | 0.31 | % | 0.52 | % | |||
| (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for | |||||||||
| of the commercial portfolio as of March 31, 2022. | |||||||||
| SBA PPP loans accounted for | |||||||||
| SBA PPP loans accounted for | |||||||||
| and consumer portfolios, respectively, as of March 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 | |||||||||
| March 31, | December 31, | March 31, | |||||||
| (Dollars in thousands, except per share data) | 2022 | 2021 | 2021 | ||||||
| Per Share Data | |||||||||
| Basic Earnings per Common Share | $ | 0.42 | $ | 0.59 | $ | 0.60 | |||
| Diluted Earnings per Common Share | 0.41 | 0.59 | 0.59 | ||||||
| Dividends per Common Share | 0.12 | 0.12 | 0.10 | ||||||
| Book Value per Common Share | 20.25 | 21.24 | 20.03 | ||||||
| Average Common Shares Outstanding | 21,019,716 | 20,299,704 | 20,621,930 | ||||||
| Average Diluted Shares Outstanding | 21,162,482 | 20,462,317 | 20,738,013 | ||||||
| End of Period Common Shares Outstanding | 22,564,607 | 20,400,349 | 20,804,753 | ||||||
| Annualized Performance Ratios | |||||||||
| Return on Average Assets | 0.71 | % | 1.05 | % | 1.15 | % | |||
| Return on Average Equity | 7.83 | % | 11.20 | % | 11.86 | % | |||
| Net Interest Margin | 3.51 | % | 3.57 | % | 4.23 | % | |||
| Net Interest Spread | 3.35 | % | 3.38 | % | 4.06 | % | |||
| Efficiency Ratio (1) | 72.67 | % | 66.07 | % | 59.19 | % | |||
| Total Quarterly Average Assets | $ | 4,920,105 | $ | 4,584,460 | $ | 4,276,430 | |||
| Total Quarterly Average Equity | 446,003 | 430,834 | 415,896 | ||||||
| Other Expenses | |||||||||
| Salaries and Employee Benefits | $ | 19,703 | $ | 17,355 | $ | 14,926 | |||
| Occupancy and Bank Premises | 2,052 | 1,522 | 1,811 | ||||||
| Depreciation and Amortization | 1,569 | 1,476 | 1,358 | ||||||
| Data Processing | 2,116 | 2,032 | 1,823 | ||||||
| FDIC Assessment Fees | 743 | 668 | 509 | ||||||
| Legal and Other Professional Fees | 543 | 480 | 741 | ||||||
| Advertising and Promotions | 531 | 999 | 477 | ||||||
| Utilities and Communications | 779 | 586 | 575 | ||||||
| Ad Valorem Shares Tax | 813 | 449 | 700 | ||||||
| Directors’ Fees | 202 | 207 | 188 | ||||||
| Other Real Estate Owned Expenses and Write-Downs | 14 | 76 | 379 | ||||||
| Merger and Conversion-Related Expenses | 811 | 266 | 10 | ||||||
| Other | 3,844 | 3,982 | 3,231 | ||||||
| Total Other Expenses | $ | 33,720 | $ | 30,098 | $ | 26,728 | |||
| Other Income | |||||||||
| Service Charges on Deposit Accounts | $ | 1,805 | $ | 1,800 | $ | 1,567 | |||
| Gain (Loss) on Sales of Securities | (31 | ) | 444 | (5 | ) | ||||
| Debit Card and ATM Fee Income | 1,501 | 1,554 | 1,336 | ||||||
| Bank-Owned Life Insurance Income | 369 | 367 | 318 | ||||||
| Gain on Sales of Loans | 65 | 3 | (21 | ) | |||||
| Mortgage Origination Income | 209 | 169 | 229 | ||||||
| Fees and Brokerage Commission | 1,835 | 1,721 | 543 | ||||||
| Gain (Loss) on Sales of Other Real Estate Owned | 8 | (35 | ) | 46 | |||||
| Gain (Loss) on Disposal of Other Assets | (717 | ) | (9 | ) | 117 | ||||
| Gain on Sale of Branch | - | 492 | - | ||||||
| Pass-Through Income from SBIC Partnerships | 115 | 555 | 53 | ||||||
| Other | 737 | 597 | 665 | ||||||
| Total Other Income | $ | 5,896 | $ | 7,658 | $ | 4,848 | |||
| (1) Non-GAAP: Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest | |||||||||
| income less gain/loss on sales of securities. | |||||||||
| Business First Bancshares, Inc. | |||||||||
| Consolidated Balance Sheets | |||||||||
| (Unaudited) | |||||||||
| March 31, | December 31, | March 31, | |||||||
| (Dollars in thousands) | 2022 | 2021 | 2021 | ||||||
| Assets | |||||||||
| Cash and Due From Banks | $ | 282,074 | $ | 68,375 | $ | 355,257 | |||
| Federal Funds Sold | 67,822 | 227,044 | 105,595 | ||||||
| Securities Available for Sale, at Fair Values | 961,358 | 1,021,061 | 721,224 | ||||||
| Loans Held for Sale | 13,559 | - | - | ||||||
| Mortgage Loans Held for Sale | 1,354 | 1,200 | 2,298 | ||||||
| Loans and Lease Receivable | 3,748,498 | 3,189,608 | 3,041,978 | ||||||
| Allowance for Loan Losses | (29,245 | ) | (29,112 | ) | (25,251 | ) | |||
| Net Loans and Lease Receivable | 3,719,253 | 3,160,496 | 3,016,727 | ||||||
| Premises and Equipment, Net | 63,003 | 58,155 | 57,931 | ||||||
| Accrued Interest Receivable | 20,146 | 19,597 | 25,910 | ||||||
| Other Equity Securities | 23,034 | 16,619 | 12,584 | ||||||
| Other Real Estate Owned | 1,369 | 1,427 | 8,851 | ||||||
| Cash Value of Life Insurance | 72,896 | 60,380 | 60,348 | ||||||
| Deferred Taxes, Net | 23,040 | 8,822 | 5,536 | ||||||
| Goodwill | 89,911 | 59,894 | 53,753 | ||||||
| Core Deposit and Customer Intangibles | 15,617 | 12,203 | 9,406 | ||||||
| Other Assets | 7,799 | 11,105 | 8,166 | ||||||
| Total Assets | $ | 5,362,235 | $ | 4,726,378 | $ | 4,443,586 | |||
| Liabilities | |||||||||
| Deposits | |||||||||
| Noninterest-Bearing | $ | 1,544,197 | $ | 1,291,036 | $ | 1,186,625 | |||
| Interest-Bearing | 3,113,541 | 2,786,247 | 2,672,109 | ||||||
| Total Deposits | 4,657,738 | 4,077,283 | 3,858,734 | ||||||
| Securities Sold Under Agreements to Repurchase | 23,345 | 19,121 | 21,419 | ||||||
| Short-Term Borrowings | 20 | 20 | 20 | ||||||
| Subordinated Debt | 111,209 | 81,427 | 77,500 | ||||||
| Subordinated Debt – Trust Preferred Securities | 5,000 | 5,000 | 5,000 | ||||||
| Federal Home Loan Bank Borrowings | 79,957 | 82,022 | 33,073 | ||||||
| Accrued Interest Payable | 895 | 1,354 | 1,941 | ||||||
| Other Liabilities | 27,234 | 26,783 | 29,198 | ||||||
| Total Liabilities | 4,905,398 | 4,293,010 | 4,026,885 | ||||||
| Shareholders' Equity | |||||||||
| Common Stock | 22,565 | 20,400 | 20,805 | ||||||
| Additional Paid-In Capital | 345,858 | 292,271 | 300,282 | ||||||
| Retained Earnings | 128,168 | 121,874 | 89,441 | ||||||
| Accumulated Other Comprehensive Income (Loss) | (39,754 | ) | (1,177 | ) | 6,173 | ||||
| Total Shareholders’ Equity | 456,837 | 433,368 | 416,701 | ||||||
| Total Liabilities and Shareholders’ Equity | $ | 5,362,235 | $ | 4,726,378 | $ | 4,443,586 | |||
| Business First Bancshares, Inc. | ||||||||
| Consolidated Statements of Income | ||||||||
| (Unaudited) | ||||||||
| Three Months Ended | ||||||||
| March 31, | December 31, | March 31, | ||||||
| (Dollars in thousands) | 2022 | 2021 | 2021 | |||||
| Interest Income: | ||||||||
| Interest and Fees on Loans | $ | 40,183 | $ | 38,337 | $ | 41,419 | ||
| Interest and Dividends on Securities | 3,844 | 3,904 | 2,802 | |||||
| Interest on Federal Funds Sold and Due From Banks | 95 | 50 | 41 | |||||
| Total Interest Income | 44,122 | 42,291 | 44,262 | |||||
| Interest Expense: | ||||||||
| Interest on Deposits | 2,263 | 2,645 | 3,243 | |||||
| Interest on Borrowings | 1,384 | 1,302 | 718 | |||||
| Total Interest Expense | 3,647 | 3,947 | 3,961 | |||||
| Net Interest Income | 40,475 | 38,344 | 40,301 | |||||
| Provision for Loan Losses: | 1,617 | 1,300 | 3,359 | |||||
| Net Interest Income After Provision for Loan Losses | 38,858 | 37,044 | 36,942 | |||||
| Other Income: | ||||||||
| Service Charges on Deposit Accounts | 1,805 | 1,800 | 1,567 | |||||
| Gain (Loss) on Sales of Securities | (31 | ) | 444 | (5 | ) | |||
| Gain (Loss) on Sales of Loans | 65 | 3 | (21 | ) | ||||
| Other Income | 4,057 | 5,411 | 3,307 | |||||
| Total Other Income | 5,896 | 7,658 | 4,848 | |||||
| Other Expenses: | ||||||||
| Salaries and Employee Benefits | 19,703 | 17,355 | 14,926 | |||||
| Occupancy and Equipment Expense | 4,413 | 3,857 | 3,717 | |||||
| Merger and Conversion-Related Expense | 811 | 266 | 10 | |||||
| Other Expenses | 8,793 | 8,620 | 8,075 | |||||
| Total Other Expenses | 33,720 | 30,098 | 26,728 | |||||
| Income Before Income Taxes: | 11,034 | 14,604 | 15,062 | |||||
| Provision for Income Taxes: | 2,303 | 2,536 | 2,733 | |||||
| Net Income: | $ | 8,731 | $ | 12,068 | $ | 12,329 | ||
| Business First Bancshares, Inc. | |||||||||||||||||||||||
| Consolidated Net Interest Margin | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||||||||||||||
| Average | Average | Average | |||||||||||||||||||||
| Outstanding | Interest Earned / | Average | Outstanding | Interest Earned / | Average | Outstanding | Interest Earned / | Average | |||||||||||||||
| (Dollars in thousands) | Balance | Interest Paid | Yield / Rate | Balance | Interest Paid | Yield / Rate | Balance | Interest Paid | Yield / Rate | ||||||||||||||
| Assets | |||||||||||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||||||
| Total Loans (Excluding SBA PPP) | $ | 3,382,325 | $ | 40,174 | 4.75 | % | $ | 3,106,477 | $ | 38,318 | 4.93 | % | $ | 2,643,668 | $ | 36,538 | 5.53 | % | |||||
| SBA PPP Loans | 3,725 | 9 | 1.00 | % | 7,733 | 19 | 1.00 | % | 374,958 | 4,881 | 5.21 | % | |||||||||||
| Securities Available for Sale | 1,005,252 | 3,844 | 1.53 | % | 1,041,437 | 3,904 | 1.50 | % | 691,476 | 2,802 | 1.62 | % | |||||||||||
| Interest-Bearing Deposit in Other Banks | 221,148 | 95 | 0.17 | % | 143,488 | 50 | 0.14 | % | 101,233 | 41 | 0.16 | % | |||||||||||
| Total Interest-Earning Assets | 4,612,450 | 44,122 | 3.83 | % | 4,299,135 | 42,291 | 3.93 | % | 3,811,335 | 44,262 | 4.65 | % | |||||||||||
| Allowance for Loan Losses | (29,260 | ) | (28,379 | ) | (22,709 | ) | |||||||||||||||||
| Noninterest-Earning Assets | 336,915 | 313,704 | 487,804 | ||||||||||||||||||||
| Total Assets | $ | 4,920,105 | $ | 44,122 | $ | 4,584,460 | $ | 42,291 | $ | 4,276,430 | $ | 44,262 | |||||||||||
| Liabilities and Shareholders’ Equity | |||||||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||
| Interest-Bearing Deposits | $ | 2,882,838 | $ | 2,263 | 0.31 | % | $ | 2,653,041 | $ | 2,645 | 0.40 | % | $ | 2,584,263 | $ | 3,243 | 0.50 | % | |||||
| Subordinated Debt | 91,354 | 1,115 | 4.88 | % | 81,427 | 1,026 | 5.04 | % | 28,450 | 459 | 6.45 | % | |||||||||||
| Subordinated Debt – Trust Preferred Securities | 5,000 | 42 | 3.36 | % | 5,000 | 42 | 3.36 | % | 5,000 | 42 | 3.36 | % | |||||||||||
| Advances from Federal Home Loan Bank (FHLB) | 80,375 | 223 | 1.11 | % | 83,374 | 229 | 1.10 | % | 37,022 | 111 | 1.20 | % | |||||||||||
| Other Borrowings | 19,666 | 4 | 0.08 | % | 25,774 | 5 | 0.08 | % | 31,696 | 106 | 1.34 | % | |||||||||||
| Total Interest-Bearing Liabilities | 3,079,233 | 3,647 | 0.47 | % | 2,848,616 | 3,947 | 0.55 | % | 2,686,431 | 3,961 | 0.59 | % | |||||||||||
| Noninterest-Bearing Liabilities: | |||||||||||||||||||||||
| Noninterest-Bearing Deposits | $ | 1,370,015 | $ | 1,276,279 | $ | 1,146,950 | |||||||||||||||||
| Other Liabilities | 24,854 | 28,731 | 27,153 | ||||||||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,394,869 | 1,305,010 | 1,174,103 | ||||||||||||||||||||
| Shareholders’ Equity | 446,003 | 430,834 | 415,896 | ||||||||||||||||||||
| Total Liabilities and Shareholders’ Equity | $ | 4,920,105 | $ | 4,584,460 | $ | 4,276,430 | |||||||||||||||||
| Net Interest Spread | 3.35 | % | 3.38 | % | 4.06 | % | |||||||||||||||||
| Net Interest Income | $ | 40,475 | $ | 38,344 | $ | 40,301 | |||||||||||||||||
| Net Interest Margin | 3.51 | % | 3.57 | % | 4.23 | % | |||||||||||||||||
| Overall Cost of Funds | 0.33 | % | 0.38 | % | 0.41 | % | |||||||||||||||||
| NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention. | |||||||||||||||||||||||
| Business First Bancshares, Inc. | |||||||||
| Non-GAAP Measures | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| (Dollars in thousands, except per share data) | 2022 | 2021 | 2021 | ||||||
| Interest Income: | |||||||||
| Interest income | $ | 44,122 | $ | 42,291 | $ | 44,262 | |||
| Core interest income | 44,122 | 42,291 | 44,262 | ||||||
| Interest Expense: | |||||||||
| Interest expense | 3,647 | 3,947 | 3,961 | ||||||
| Core interest expense | 3,647 | 3,947 | 3,961 | ||||||
| Provision for Loan Losses: (b) | |||||||||
| Provision for loan losses | 1,617 | 1,300 | 3,359 | ||||||
| Core provision expense | 1,617 | 1,300 | 3,359 | ||||||
| Other Income: | |||||||||
| Other income | 5,896 | 7,658 | 4,848 | ||||||
| Losses on former bank premises and equipment | 717 | 78 | - | ||||||
| (Gains) 1osses on sale of securities | 31 | (444 | ) | 5 | |||||
| (Gains) on sale of branch | - | (492 | ) | - | |||||
| Core other income | 6,644 | 6,800 | 4,853 | ||||||
| Other Expense: | |||||||||
| Other expense | 33,720 | 30,098 | 26,728 | ||||||
| Acquisition-related expenses (2) | (811 | ) | (266 | ) | (10 | ) | |||
| Occupancy and bank premises - hurricane repair | (231 | ) | (57 | ) | (350 | ) | |||
| Core other expense | 32,678 | 29,775 | 26,368 | ||||||
| Pre-Tax Income: (a) | |||||||||
| Pre-tax income | 11,034 | 14,604 | 15,062 | ||||||
| Losses on former bank premises and equipment | 717 | 78 | - | ||||||
| (Gains) 1osses on sale of securities | 31 | (444 | ) | 5 | |||||
| (Gains) on sale of branch | - | (492 | ) | - | |||||
| Acquisition-related expenses (2) | 811 | 266 | 10 | ||||||
| Occupancy and bank premises - hurricane repair | 231 | 57 | 350 | ||||||
| Core pre-tax income | 12,824 | 14,069 | 15,427 | ||||||
| Provision for Income Taxes: (1) | |||||||||
| Provision for income taxes | 2,303 | 2,536 | 2,733 | ||||||
| Tax on losses on former bank premises and equipment | 151 | 16 | - | ||||||
| Tax on (gains) losses on sale of securities | 7 | (93 | ) | 1 | |||||
| Tax on (gains) on sale of branch | - | (138 | ) | - | |||||
| Tax on acquisition-related expenses (2) | 48 | 62 | 2 | ||||||
| Tax on occupancy and bank premises – hurricane repair | 49 | 12 | 74 | ||||||
| Core provision for income taxes | 2,558 | 2,395 | 2,810 | ||||||
| Net Income: | |||||||||
| Net income | 8,731 | 12,068 | 12,329 | ||||||
| Losses on former bank premises and equipment, net of tax | 566 | 62 | - | ||||||
| (Gains) losses on sale of securities, net of tax | 24 | (351 | ) | 4 | |||||
| (Gains) on sale of branch | - | (354 | ) | - | |||||
| Acquisition-related expenses (2), net of tax | 763 | 204 | 8 | ||||||
| Occupancy and bank premises – hurricane repair, net of tax | 182 | 45 | 276 | ||||||
| Core net income | $ | 10,266 | $ | 11,674 | $ | 12,617 | |||
| Pre-tax, pre-provision earnings (a+b) | $ | 12,651 | $ | 15,904 | $ | 18,421 | |||
| Losses on former bank premises and equipment | 717 | 78 | - | ||||||
| (Gains) losses on sale of securities | 31 | (444 | ) | 5 | |||||
| (Gains) on sale of branch | - | (492 | ) | - | |||||
| Acquisition-related expenses (2) | 811 | 266 | 10 | ||||||
| Occupancy and bank premises – hurricane repair | 231 | 57 | 350 | ||||||
| Core pre-tax, pre-provision earnings | $ | 14,441 | $ | 15,369 | $ | 18,786 | |||
| Average Diluted Shares Outstanding | 21,162,482 | 20,462,317 | 20,738,013 | ||||||
| Diluted Earnings Per Share: | |||||||||
| Diluted earnings per share | $ | 0.41 | $ | 0.59 | $ | 0.59 | |||
| Losses on former bank premises and equipment, net of tax | 0.03 | 0.00 | - | ||||||
| (Gains) losses on sale of securities, net of tax | 0.00 | (0.01 | ) | 0.00 | |||||
| (Gains) on sale of branch | - | (0.02 | ) | - | |||||
| Acquisition-related expenses (2), net of tax | 0.04 | 0.01 | 0.00 | ||||||
| Occupancy and bank premises – hurricane repair, net of tax | 0.01 | 0.00 | 0.02 | ||||||
| Core diluted earnings per share | $ | 0.49 | $ | 0.57 | $ | 0.61 | |||
| Pre-tax, pre-provision profit diluted earnings per share | $ | 0.60 | $ | 0.78 | $ | 0.89 | |||
| Losses on former bank premises and equipment | 0.03 | 0.00 | - | ||||||
| (Gains) losses on sale of securities | 0.00 | (0.02 | ) | 0.00 | |||||
| (Gains) on sale of branch | - | (0.02 | ) | - | |||||
| Acquisition-related expenses (2) | 0.04 | 0.01 | 0.00 | ||||||
| Occupancy and bank premises – hurricane repair | 0.01 | 0.00 | 0.02 | ||||||
| Core pre-tax, pre-provision diluted earnings per share | $ | 0.68 | $ | 0.75 | $ | 0.91 | |||
| (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were | |||||||||
| the marginal tax rates. | |||||||||
| (2) Includes merger and conversion-related expenses and salary and employee benefits. | |||||||||
| Business First Bancshares, Inc. | |||||||||
| Non-GAAP Measures | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| March 31, | December 31, | March 31, | |||||||
| (Dollars in thousands, except per share data) | 2022 | 2021 | 2021 | ||||||
| Total Quarterly Average Assets | $ | 4,920,105 | $ | 4,584,460 | $ | 4,276,430 | |||
| Total Quarterly Average Equity | $ | 446,003 | $ | 430,834 | $ | 415,896 | |||
| Net Income: | |||||||||
| Net income | $ | 8,731 | $ | 12,068 | $ | 12,329 | |||
| Losses on former bank premises and equipment, net of tax | 566 | 62 | - | ||||||
| (Gains) losses on sale of securities, net of tax | 24 | (351 | ) | 4 | |||||
| (Gains) on sale of branch, net of tax | - | (354 | ) | - | |||||
| Acquisition-related expenses, net of tax | 763 | 204 | 8 | ||||||
| Occupancy and bank premises – hurricane repair, net of tax | 182 | 45 | 276 | ||||||
| Core net income | $ | 10,266 | $ | 11,674 | $ | 12,617 | |||
| Return on average assets | 0.71 | % | 1.05 | % | 1.15 | % | |||
| Core return on average assets | 0.83 | % | 1.02 | % | 1.18 | % | |||
| Return on equity | 7.83 | % | 11.20 | % | 11.86 | % | |||
| Core return on average equity | 9.21 | % | 10.84 | % | 12.14 | % | |||
| Interest Income: | |||||||||
| Interest income | $ | 44,122 | $ | 42,291 | $ | 44,262 | |||
| Core interest income | 44,122 | 42,291 | 44,262 | ||||||
| Interest Expense: | |||||||||
| Interest expense | 3,647 | 3,947 | 3,961 | ||||||
| Core interest expense | 3,647 | 3,947 | 3,961 | ||||||
| Other Income: | |||||||||
| Other income | 5,896 | 7,658 | 4,848 | ||||||
| Losses on former bank premises and equipment | 717 | 78 | - | ||||||
| (Gains) losses on sale of securities | 31 | (444 | ) | 5 | |||||
| (Gains) on sale of branch | - | (492 | ) | - | |||||
| Core other income | 6,644 | 6,800 | 4,853 | ||||||
| Other Expense: | |||||||||
| Other expense | 33,720 | 30,098 | 26,728 | ||||||
| Acquisition-related expenses | (811 | ) | (266 | ) | (10 | ) | |||
| Occupancy and bank premises - hurricane repair | (231 | ) | (57 | ) | (350 | ) | |||
| Core other expense | $ | 32,678 | $ | 29,775 | $ | 26,368 | |||
| Efficiency Ratio: | |||||||||
| Other expense (a) | $ | 33,720 | $ | 30,098 | $ | 26,728 | |||
| Core other expense (c) | $ | 32,678 | $ | 29,775 | $ | 26,368 | |||
| Net interest and other income (1) (b) | $ | 46,402 | $ | 45,558 | $ | 45,154 | |||
| Core net interest and other income (1) (d) | $ | 47,119 | $ | 45,144 | $ | 45,154 | |||
| Efficiency ratio (a/b) | 72.67 | % | 66.07 | % | 59.19 | % | |||
| Core efficiency ratio (c/d) | 69.35 | % | 65.96 | % | 58.40 | % | |||
| Total Average Interest-Earnings Assets | $ | 4,612,450 | $ | 4,299,135 | $ | 3,811,335 | |||
| Net Interest Income: | |||||||||
| Net interest income | $ | 40,475 | $ | 38,344 | $ | 40,301 | |||
| Loan discount accretion | (920 | ) | (1,559 | ) | (3,063 | ) | |||
| Net interest income excluding loan discount accretion | $ | 39,555 | $ | 36,785 | $ | 37,238 | |||
| Net interest margin (2) | 3.51 | % | 3.57 | % | 4.23 | % | |||
| Net interest margin excluding loan discount accretion (2) | 3.43 | % | 3.42 | % | 3.91 | % | |||
| Net interest spread | 3.35 | % | 3.38 | % | 4.06 | % | |||
| Net interest spread excluding loan discount accretion | 3.27 | % | 3.24 | % | 3.73 | % | |||
| (1) Excludes gains/losses on sales of securities. | |||||||||
| (2) Calculated utilizing a 30/360 day count convention. | |||||||||
| Business First Bancshares, Inc. | |||||||||
| Non-GAAP Measures | |||||||||
| (Unaudited) | |||||||||
| March 31, | December 31, | March 31, | |||||||
| (Dollars in thousands, except per share data) | 2022 | 2021 | 2021 | ||||||
| Total Shareholders’ (Common) Equity: | |||||||||
| Total shareholders' equity | $ | 456,837 | $ | 433,368 | $ | 416,701 | |||
| Goodwill | (89,911 | ) | (59,894 | ) | (53,753 | ) | |||
| Core deposit and customer intangible | (15,617 | ) | (12,203 | ) | (9,406 | ) | |||
| Total tangible common equity | $ | 351,309 | $ | 361,271 | $ | 353,542 | |||
| Total Assets: | |||||||||
| Total assets | $ | 5,362,235 | $ | 4,726,378 | $ | 4,443,586 | |||
| Goodwill | (89,911 | ) | (59,894 | ) | (53,753 | ) | |||
| Core deposit and customer intangible | (15,617 | ) | (12,203 | ) | (9,406 | ) | |||
| Total tangible assets | $ | 5,256,707 | $ | 4,654,281 | $ | 4,380,427 | |||
| Common shares outstanding | 22,564,607 | 20,400,349 | 20,804,753 | ||||||
| Book value per common share | $ | 20.25 | $ | 21.24 | $ | 20.03 | |||
| Tangible book value per common share | $ | 15.57 | $ | 17.71 | $ | 16.99 | |||
| Common equity to total assets | 8.52 | % | 9.17 | % | 9.38 | % | |||
| Tangible common equity to tangible assets | 6.68 | % | 7.76 | % | 8.07 | % | |||
FAQ
What are the Q1 2022 earnings for BFST?
What were the loan growth rates for BFST in Q1 2022?
When is the next dividend payment for BFST?
How did BFST's net interest margin perform in Q1 2022?
What was the impact of the Texas Citizens acquisition on BFST?
