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Business First Bancshares, Inc., Announces Financial Results for Q3 2024
ソース: Nasdaq GlobeNewswire / 24 10 2024 15:10:03 America/Chicago
BATON ROUGE, La., Oct. 24, 2024 (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, 2024, including net income available to common shareholders of $16.5 million or $0.65 per diluted common share, increases of $0.6 million and $0.03, respectively, compared to the linked quarter ended June 30, 2024. On a non-GAAP basis, core net income for the quarter ended September 30, 2024, which excludes certain income and expenses, was $17.2 million or $0.68 per diluted common share, increases of $1.0 million and $0.04, from the linked quarter.
"In the third quarter our team again demonstrated consistent improvement in fundamental performance,” said Jude Melville, chairman, president and CEO of Business First Bancshares. “Measured and productive growth, strengthened capital ratios, improved margins and increased income from newer non-spread-based lines of business, in addition to expense discipline of which I am especially proud, which positions us solidly to continue meeting our stakeholders’ expectations in coming quarters."
On Thursday, October 24, 2024, Business First’s board of directors declared a quarterly preferred 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%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the third quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on November 30, 2024, or as soon thereafter as practicable, to the shareholders of record as of November 15, 2024.
Quarterly Highlights
- Net Interest Margin (NIM) Expansion. For the quarter ended September 30, 2024, net interest income totaled $56.1 million and net interest margin and net interest spread were 3.51% and 2.54%, respectively, compared to $54.0 million, 3.45% and 2.47% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.7 million) were 3.46% and 2.50% for the quarter ended September 30, 2024, compared to 3.34% and 2.37% (excluding loan discount accretion of $1.7 million) for the linked quarter.
- Noninterest Income Investments. Business First continued to show signs of improvement in noninterest income revenue sources. For the quarter ended September 30, 2024, the newly formed customer swap business produced revenue of $0.9 million, an increase of $0.7 million when compared to the linked quarter.
- Measured Loan Growth. Loans held for investment increased $57.3 million or 1.11%, 4.41% annualized, from the linked quarter.
- Deposit Growth. During the quarter ended September 30, 2024, deposits increased $77.3 million or 1.39%, 5.53% annualized, compared to the linked quarter.
- Oakwood Acquisition. On October 1, 2024, Business First closed its previously announced acquisition of Oakwood Bancshares, Inc. (Oakwood) and its wholly-owned subsidiary, Oakwood Bank. Oakwood had approximately $863.6 million of total assets, $700.2 million of loans, and $741.3 million of deposits as of September 30, 2024.
- b1BANK President Appointment. N. Jerome “Jerry” Vascocu Jr. was promoted to the position of b1BANK president, effective October 16, 2024. Prior to his promotion to president of b1BANK, Jerry Vascocu served as b1BANK's executive vice president and chief administrative officer since joining the bank in 2022. Jude Melville, who previously served as president, retains the titles of chairman and chief executive officer of the bank.
Statement of Financial Condition
Loans
Loans held for investment increased $57.3 million or 1.11%, 4.41% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the commercial real estate portfolio of $58.3 million and $16.9 million in the C&D portfolio.
Production was led by the North Louisiana and New Orleans regions which accounted for approximately three-fourths of net loan growth from the linked quarter based on unpaid principal balance. Based on unpaid principal balances, Texas-based loans represent approximately 35% of the overall loan portfolio as of September 30, 2024, which was down from 36% from the linked quarter due to net paydowns in the quarter.
Credit Quality
Credit quality metrics remain solid, but some migration occurred during the quarter ended September 30, 2024, compared to the linked quarter. The ratio of nonperforming loans compared to loans held for investment increased 7 basis points to 0.50% at September 30, 2024, while the ratio of nonperforming assets compared to total assets increased 4 basis points to 0.40% at September 30, 2024. The increases were attributable to a $4.9 million increase in nonaccrual loans compared to the linked quarter.
Securities
The securities portfolio increased $41.0 million or 4.69%, from the linked quarter, impacted by $27.4 million in positive fair value adjustments. The securities portfolio, based on estimated fair value, represented 13.30% of total assets as of September 30, 2024.
Deposits
Deposits increased $77.3 million or 1.39%, 5.53% annualized, for the quarter ended September 30, 2024, compared to the linked quarter. During the same quarter, interest-bearing accounts drove the increase with $196.5 million in growth, offset by $119.3 million reduction in non-interest bearing accounts compared to the linked quarter.
The increase in interest-bearing deposits was largely attributable to a $160.8 million increase in money market accounts. The weighted average money market portfolio rate declined by 35 basis points from the linked quarter, from 4.22% to 3.87%.
Borrowings
Borrowings increased $65.0 million, or 15.17%, from the linked quarter due primarily to an additional short-term, 14-day Federal Home Loan Bank advance with a rate of 4.88% which matured on October 1, 2024, and was subsequently refinanced.
Shareholders’ Equity
Accumulated other comprehensive income (AOCI) increased $21.6 million, or 31.92%, during the third quarter due to positive after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $24.59 at September 30, 2024, compared to $23.24 at June 30, 2024, a 5.81% increase from the linked quarter. On a non-GAAP basis, tangible book value per common share increased from $19.22 at June 30, 2024, to $20.60 at September 30, 2024, a 7.18% increase from the linked quarter.
Results of Operations
Net Interest Income
For the quarter ended September 30, 2024, net interest income totaled $56.1 million, compared to $54.0 million from the linked quarter. Loan and interest-earning asset yields of 7.12% and 6.42%, respectively, increased 5 and 4 basis points, respectively, compared to 7.07% and 6.38% from the linked quarter. Both ratio increases were impacted by $1.0 million less in loan discount accretion. Net interest margin and net interest spread were 3.51% and 2.54% compared to 3.45% and 2.47% for the linked quarter. The overall cost of funds, which included noninterest-bearing deposits, remained stable at 3.07% from the linked quarter.
Non-GAAP net interest income (excluding loan discount accretion of $0.7 million) totaled $55.4 million for the quarter ended September 30, 2024, compared to $52.3 million (excluding loan discount accretion of $1.7 million) for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.7 million) were 3.46% and 2.50%, respectively, for the quarter ended September 30, 2024, compared to 3.34% and 2.37% (excluding loan discount accretion of $1.7 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 13 basis points to 7.07% from 6.94%, and interest earnings asset yields increased 10 basis points to 6.38% from 6.28%, compared to the linked quarter. Yield improvements were partially driven by Business First's increased production in its factoring portfolio.
Provision for Credit Losses
During the quarter ended September 30, 2024, Business First recorded a provision for credit losses of $1.7 million, compared to $1.3 million from the linked quarter. The current quarter’s reserve growth was largely attributable to net charge-offs, loan growth, changes in qualitative factors, and slight deterioration in the economic forecasts.
Other Income
For the quarter ended September 30, 2024, other income decreased $1.4 million or 11.51%, compared to the linked quarter. The net decrease was largely attributable to a $1.9 million gain on sale of a single, U.S. Small Business Administration (SBA) loan in the linked quarter, partially offset by an increase of $0.7 million in swap fee income for the quarter ended September 30, 2024.
Other Expenses
For the quarter ended September 30, 2024, other expenses decreased by $660,000 or 1.53%, compared to the linked quarter. The decrease was largely attributable to a $646,000 decrease in salaries and employee benefits due to lower self-insurance claims.
Excluding non-GAAP other expenses, Business First's core expenses decreased by $1.1 million from the linked quarter due to the previously mentioned $646,000 decrease in salaries and employee benefits and $511,000 in core conversion expenses attributable to Business First's core conversion scheduled for the second quarter of 2025.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.97% and 10.76% for the quarter ended September 30, 2024, compared to 0.95% and 10.94%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.01% and 11.23% for the quarter ended September 30, 2024, compared to 0.98% and 11.22%, respectively, for the linked quarter. Returns on equity for the current quarter were offset by the large increase in AOCI compared to the linked quarter. Excluding the $13.2 million average AOCI increase during the quarter, the non-GAAP return on common equity for the quarter improved to 11.48%.
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Thursday, October 24, 2024, at 4:00 p.m. Central Time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 5274174, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/a2ui6eo8. On the day of the presentation, the corresponding slide presentation will be available to view on the b1BANK 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 $6.9 billion in assets, $6.9 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 Texas, 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.
Business First Bancshares, Inc. Selected Financial Information (Unaudited) Three Months Ended (Dollars in thousands) September 30,
2024June 30,
2024September 30,
2023Balance Sheet Ratios Loans (HFI) to Deposits 92.54 % 92.80 % 94.79 % Shareholders' Equity to Assets Ratio 10.15 % 9.91 % 9.31 % Loans Receivable Held for Investment (HFI) Commercial $ 1,496,480 $ 1,520,392 $ 1,332,384 Real Estate: Commercial 2,256,370 2,198,119 2,128,855 Construction 654,353 637,466 708,835 Residential 743,878 743,876 686,921 Total Real Estate 3,654,601 3,579,461 3,524,611 Consumer and Other 69,037 62,999 63,278 Total Loans (Held for Investment) $ 5,220,118 $ 5,162,852 $ 4,920,273 Allowance for Loan Losses Balance, Beginning of Period $ 41,412 $ 41,165 $ 42,013 Charge-Offs - Quarterly (1,424 ) (1,426 ) (2,423 ) Recoveries - Quarterly 295 91 685 Provision for Loan Losses - Quarterly 1,871 1,582 854 Balance, End of Period $ 42,154 $ 41,412 $ 41,129 Allowance for Loan Losses to Total Loans (HFI) 0.81 % 0.80 % 0.84 % Allowance for Credit Losses to Total Loans (HFI)/(1) 0.86 % 0.86 % 0.90 % Net Charge-Offs (Recoveries) to Average Quarterly Total Loans 0.02 % 0.03 % 0.04 % Remaining Loan Purchase Discount $ 9,003 $ 9,690 $ 14,752 Nonperforming Assets Nonperforming Nonaccrual Loans $ 25,874 $ 21,008 $ 16,029 Loans Past Due 90 Days or More 185 1,355 247 Total Nonperforming Loans 26,059 22,363 16,276 Other Nonperforming Assets: Other Real Estate Owned 1,787 1,983 1,558 Other Nonperforming Assets — — — Total other Nonperforming Assets 1,787 1,983 1,558 Total Nonperforming Assets $ 27,846 $ 24,346 $ 17,834 Nonperforming Loans to Total Loans (HFI) 0.50 % 0.43 % 0.33 % Nonperforming Assets to Total Assets 0.40 % 0.36 % 0.27 % (1) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments. Business First Bancshares, Inc. Selected Financial Information (Unaudited) Three Months Ended Nine Months Ended (Dollars in thousands, except per share data) September 30,
2024June 30,
2024September 30,
2023September 30,
2024September 30,
2023Per Share Data Basic Earnings per Common Share $ 0.65 $ 0.63 $ 0.76 $ 1.77 $ 2.04 Diluted Earnings per Common Share 0.65 0.62 0.76 1.75 2.02 Dividends per Common Share 0.14 0.14 0.12 0.42 0.36 Book Value per Common Share 24.59 23.24 21.01 24.59 21.01 Average Common Shares Outstanding 25,289,094 25,265,495 25,111,548 25,227,319 25,064,856 Average Diluted Common Shares Outstanding 25,440,247 25,395,614 25,288,660 25,421,746 25,281,908 End of Period Common Shares Outstanding 25,519,501 25,502,175 25,344,168 25,519,501 25,344,168 Annualized Performance Ratios Return to Common Shareholders on Average Assets (1) 0.97 % 0.95 % 1.17 % 0.89 % 1.09 % Return to Common Shareholders on Average Common Equity (1) 10.76 % 10.94 % 14.16 % 10.08 % 13.00 % Net Interest Margin (1) 3.51 % 3.45 % 3.61 % 3.43 % 3.66 % Net Interest Spread (1) 2.54 % 2.47 % 2.68 % 2.46 % 2.79 % Efficiency Ratio (2) 63.45 % 65.14 % 59.23 % 66.02 % 61.04 % Total Quarterly/Year-to-Date Average Assets $ 6,788,644 $ 6,711,173 $ 6,474,935 $ 6,722,716 $ 6,290,886 Total Quarterly/Year-to-Date Average Common Equity 610,018 583,184 535,211 590,354 526,398 Other Expenses Salaries and Employee Benefits $ 24,877 $ 25,523 $ 22,487 $ 75,816 $ 68,002 Occupancy and Bank Premises 2,630 2,634 2,428 7,778 7,131 Depreciation and Amortization 1,844 1,742 1,690 5,262 5,120 Data Processing 2,881 2,641 2,024 8,101 6,544 FDIC Assessment Fees 887 874 779 2,589 2,804 Legal and Other Professional Fees 873 1,042 766 2,781 2,340 Advertising and Promotions 1,057 966 1,202 3,168 3,576 Utilities and Communications 716 718 758 2,108 2,199 Ad Valorem Shares Tax 900 900 965 2,700 2,895 Directors' Fees 245 268 278 795 817 Other Real Estate Owned Expenses and Write-Downs 11 71 14 119 183 Merger and Conversion-Related Expenses 319 409 2 1,068 173 Other 5,210 5,322 5,214 15,797 15,204 Total Other Expenses $ 42,450 $ 43,110 $ 38,607 $ 128,082 $ 116,988 Other Income Service Charges on Deposit Accounts $ 2,723 $ 2,537 $ 2,540 $ 7,699 $ 7,234 Loss on Sales of Securities (13 ) — — (14 ) (62 ) Debit Card and ATM Fee Income 1,864 1,950 1,581 5,590 4,797 Bank-Owned Life Insurance Income 679 627 604 1,885 1,675 Gain on Sales of Loans 122 2,460 321 2,721 1,426 Mortgage Origination Income 98 35 108 202 238 Fees and Brokerage Commission 1,968 1,875 1,933 5,780 5,537 Gain on Sales of Other Real Estate Owned (16 ) 2 85 49 308 Losses on Disposal of Other Assets — (15 ) (23 ) (15 ) (14 ) Gain on Sale of Branch — — 932 — 932 Gain on Extinguishment of Debt — — 517 — — Swap Fee Income 937 285 — 1,451 1,458 Pass-Through Income (Loss) from Other Investments 335 392 (11 ) 1,022 2,974 Other 2,077 2,028 1,296 5,966 3,726 Total Other Income $ 10,774 $ 12,176 $ 9,883 $ 32,336 $ 30,229 (1) Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an actual day count convention. (2) Noninterest expense (excluding provision for loan losses) divided by noninterest income (excluding security sales gains/losses) plus net interest income less gain/loss on sales of securities. Business First Bancshares, Inc. Consolidated Balance Sheets (Unaudited) (Dollars in thousands) September 30,
2024June 30,
2024September 30,
2023Assets Cash and Due From Banks $ 213,199 $ 208,051 $ 191,461 Federal Funds Sold 169,980 113,587 196,616 Securities Purchased under Agreements to Resell 25,879 — — Securities Available for Sale, at Fair Values 916,091 875,048 849,704 Mortgage Loans Held for Sale — 680 652 Loans and Lease Receivable 5,220,118 5,162,852 4,920,273 Allowance for Loan Losses (42,154 ) (41,412 ) (41,129 ) Net Loans and Lease Receivable 5,177,964 5,121,440 4,879,144 Premises and Equipment, Net 67,617 68,545 64,674 Accrued Interest Receivable 32,547 30,617 28,060 Other Equity Securities 39,555 38,805 32,591 Other Real Estate Owned 1,787 1,983 1,558 Cash Value of Life Insurance 101,362 100,684 95,906 Deferred Taxes, Net 20,852 25,888 34,660 Goodwill 91,527 91,527 88,391 Core Deposit and Customer Intangibles 10,326 10,849 12,418 Other Assets 19,963 16,185 12,946 Total Assets $ 6,888,649 $ 6,703,889 $ 6,488,781 Liabilities Deposits Noninterest-Bearing $ 1,190,942 $ 1,310,204 $ 1,412,406 Interest-Bearing 4,450,004 4,253,466 3,778,317 Total Deposits 5,640,946 5,563,670 5,190,723 Securities Sold Under Agreements to Repurchase 21,529 18,445 23,245 Bank Term Funding Program — — 300,009 Federal Home Loan Bank Borrowings 367,202 305,208 214,184 Subordinated Debt 99,818 99,875 100,048 Subordinated Debt - Trust Preferred Securities 5,000 5,000 5,000 Accrued Interest Payable 3,752 4,517 11,188 Other Liabilities 50,878 42,644 4,018 Total Liabilities 6,189,125 6,039,359 5,884,415 Shareholders' Equity Preferred Stock 71,930 71,930 71,930 Common Stock 25,520 25,502 25,344 Additional Paid-In Capital 398,237 397,851 396,121 Retained Earnings 249,981 237,031 205,207 Accumulated Other Comprehensive Loss (46,144 ) (67,784 ) (94,236 ) Total Shareholders' Equity 699,524 664,530 604,366 Total Liabilities and Shareholders' Equity $ 6,888,649 $ 6,703,889 $ 6,488,781 Business First Bancshares, Inc. Consolidated Statements of Income (Unaudited) Three Months Ended Nine Months Ended (Dollars in thousands) September 30,
2024June 30,
2024September 30,
2023September 30,
2024September 30,
2023Interest Income: Interest and Fees on Loans $ 93,307 $ 90,604 $ 84,575 $ 269,858 $ 237,566 Interest and Dividends on Securities 6,417 5,933 5,053 17,949 14,932 Interest on Federal Funds Sold and Due From Banks 3,017 3,333 3,694 10,815 6,164 Total Interest Income 102,741 99,870 93,322 298,622 258,662 Interest Expense: Interest on Deposits 41,303 40,900 30,110 120,232 72,718 Interest on Borrowings 5,324 4,961 7,918 16,736 24,575 Total Interest Expense 46,627 45,861 38,028 136,968 97,293 Net Interest Income 56,114 54,009 55,294 161,654 161,369 Provision for Credit Losses 1,665 1,310 604 4,161 4,364 Net Interest Income After Provision for Credit Losses 54,449 52,699 54,690 157,493 157,005 Other Income: Service Charges on Deposit Accounts 2,723 2,537 2,540 7,699 7,234 Loss on Sales of Securities (13 ) — — (14 ) (62 ) Gain on Sales of Loans 122 2,460 321 2,721 1,426 Other Income 7,942 7,179 7,022 21,930 21,631 Total Other Income 10,774 12,176 9,883 32,336 30,229 Other Expenses: Salaries and Employee Benefits 24,877 25,523 22,487 75,816 68,002 Occupancy and Equipment Expense 5,828 5,717 5,445 16,902 15,558 Merger and Conversion-Related Expense 319 409 2 1,068 173 Other Expenses 11,426 11,461 10,673 34,296 33,255 Total Other Expenses 42,450 43,110 38,607 128,082 116,988 Income Before Income Taxes 22,773 21,765 25,966 61,747 70,246 Provision for Income Taxes 4,930 4,559 5,511 13,128 15,027 Net Income 17,843 17,206 20,455 48,619 55,219 Preferred Stock Dividends 1,351 1,350 1,351 4,051 4,051 Net Income Available to Common Shareholders $ 16,492 $ 15,856 $ 19,104 $ 44,568 $ 51,168 Business First Bancshares, Inc. Consolidated Net Interest Margin (Unaudited) Three Months Ended September 30, 2024 June 30, 2024 September 30, 2023 (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 $ 5,212,948 $ 93,307 7.12 % $ 5,153,642 $ 90,604 7.07 % $ 4,906,917 $ 84,575 6.84 % Securities 924,012 6,417 2.76 % 891,384 5,933 2.68 % 885,792 5,053 2.26 % Interest-Bearing Deposit in Other Banks 227,035 3,017 5.29 % 246,590 3,333 5.44 % 278,420 3,694 5.26 % Total Interest Earning Assets 6,363,995 102,741 6.42 % 6,291,616 99,870 6.38 % 6,071,129 93,322 6.10 % Allowance for Loan Losses (41,554 ) (41,450 ) (42,120 ) Noninterest- Earning Assets 466,203 461,007 445,926 Total Assets $ 6,788,644 $ 102,741 $ 6,711,173 $ 99,870 $ 6,474,935 $ 93,322 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 4,308,780 $ 41,303 3.81 % $ 4,268,207 $ 40,900 3.85 % $ 3,703,682 $ 30,110 3.23 % Subordinated Debt 99,854 1,353 5.39 % 99,913 1,354 5.45 % 100,400 1,363 5.39 % Subordinated Debt - Trust Preferred Securities 5,000 114 9.07 % 5,000 113 9.09 % 5,000 111 8.81 % Bank Term Funding Program — — — % — — — % 300,000 3,422 4.53 % Advances from Federal Home Loan Bank (FHLB) 347,476 3,723 4.26 % 324,691 3,372 4.18 % 284,930 2,875 4.00 % Other Borrowings 20,971 134 2.54 % 19,164 122 2.56 % 23,542 147 2.48 % Total Interest-Bearing Liabilities $ 4,782,081 $ 46,627 3.88 % $ 4,716,975 $ 45,861 3.91 % $ 4,417,554 $ 38,028 3.42 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits $ 1,269,282 $ 1,297,085 $ 1,399,293 Other Liabilities 55,333 41,999 50,947 Total Noninterest-Bearing Liabilities 1,324,615 1,339,084 1,450,240 Shareholders' Equity: Common Shareholders' Equity 610,018 583,184 535,211 Preferred Equity 71,930 71,930 71,930 Total Shareholders' Equity 681,948 655,114 607,141 Total Liabilities and Shareholders' Equity $ 6,788,644 $ 6,711,173 $ 6,474,935 Net Interest Spread 2.54 % 2.47 % 2.68 % Net Interest Income $ 56,114 $ 54,009 $ 55,294 Net Interest Margin 3.51 % 3.45 % 3.61 % Overall Cost of Funds 3.07 % 3.07 % 2.59 % Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention. Business First Bancshares, Inc. Consolidated Net Interest Margin (Unaudited) Six Months Ended (Dollars in thousands) September 30, 2024 September 30, 2023 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 $ 5,131,474 $ 269,858 7.02 % $ 4,829,537 $ 237,566 6.58 % Securities 901,525 17,949 2.66 % 909,901 14,932 2.19 % Interest-Bearing Deposit in Other Banks 267,815 10,815 5.39 % 150,995 6,164 5.46 % Total Interest Earning Assets 6,300,814 298,622 6.33 % 5,890,433 258,662 5.87 % Allowance for Loan Losses (41,178 ) (41,888 ) Noninterest- Earning Assets 463,080 442,341 Total Assets $ 6,722,716 $ 298,622 $ 6,290,886 $ 258,662 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 4,216,866 $ 120,232 3.81 % $ 3,482,797 $ 72,718 2.79 % Subordinated Debt 99,913 4,063 5.43 % 106,555 4,003 5.02 % Subordinated Debt - Trust Preferred Securities 5,000 340 9.08 % 5,000 317 8.48 % Bank Term Funding Program 86,496 2,788 4.31 % 238,274 8,111 4.55 % Advances from Federal Home Loan Bank (FHLB) 298,735 9,189 4.11 % 368,542 11,755 4.26 % Other Borrowings 18,758 356 2.54 % 22,177 389 2.35 % Total Interest-Bearing Liabilities $ 4,725,768 $ 136,968 3.87 % $ 4,223,345 $ 97,293 3.08 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits $ 1,283,035 $ 1,427,821 Other Liabilities 51,629 41,392 Total Noninterest-Bearing Liabilities 1,334,664 1,469,213 Shareholders' Equity: Common Shareholders' Equity 590,354 526,398 Preferred Equity 71,930 71,930 Total Shareholders' Equity 662,284 598,328 Total Liabilities and Shareholders' Equity $ 6,722,716 $ 6,290,886 Net Interest Spread 2.46 % 2.79 % Net Interest Income $ 161,654 $ 161,369 Net Interest Margin 3.43 % 3.66 % Overall Cost of Funds 3.04 % 2.30 % Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention. Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) Three Months Ended Nine Months Ended (Dollars in thousands, except per share data) September 30,
2024June 30,
2024September 30,
2023September 30,
2024September 30,
2023Interest Income: Interest income $ 102,741 $ 99,870 $ 93,322 $ 298,622 $ 258,662 Core interest income 102,741 99,870 93,322 298,622 258,662 Interest Expense: Interest expense 46,627 45,861 38,028 136,968 97,293 Core interest expense 46,627 45,861 38,028 136,968 97,293 Provision for Credit Losses: (b) Provision for credit losses 1,665 1,310 604 4,161 4,364 Core provision expense 1,665 1,310 604 4,161 4,364 Other Income: Other income 10,774 12,176 9,883 32,336 30,229 Gain on former bank premises and equipment — — — (50 ) — Losses on sale of securities 13 — — 14 62 Gain on sale of branch — — (932 ) — (932 ) Gain on extinguishment of debt — — (517 ) — (1,458 ) Core other income 10,787 12,176 8,434 32,300 27,901 Other Expense: Other expense 42,450 43,110 38,607 128,082 116,988 Acquisition-related expenses (2) (319 ) (419 ) (2 ) (1,453 ) (173 ) Core conversion expenses (511 ) — — (511 ) — Core other expense 41,620 42,691 38,605 126,118 116,815 Pre-Tax Income: (a) Pre-tax income 22,773 21,765 25,966 61,747 70,246 Gain on former bank premises and equipment — — — (50 ) — Losses on sale of securities 13 — — 14 62 Gain on sale of branch — — (932 ) (932 ) Gain on extinguishment of debt — — (517 ) — (1,458 ) Acquisition-related expenses (2) 319 419 2 1,453 173 Core conversion expenses 511 — — 511 — Core pre-tax income 23,616 22,184 24,519 63,675 68,091 Provision for Income Taxes: (1) Provision for income taxes 4,930 4,559 5,511 13,128 15,027 Tax on losses on former bank premises and equipment — — — (11 ) — Tax on losses on sale of securities 3 — — 3 13 Tax on gain on sale of branch — — (197 ) — (197 ) Gain on extinguishment of debt — — (109 ) — (308 ) Tax on acquisition-related expenses (2) — 2 — 91 20 Tax on core conversion expenses 108 — — 108 — Core provision for income taxes 5,041 4,561 5,205 13,319 14,555 Preferred Dividends: Preferred dividends 1,351 1,350 1,351 4,051 4,051 Core preferred dividends 1,351 1,350 1,351 4,051 4,051 Net Income Available to Common Shareholders: Net income available to common shareholders 16,492 15,856 19,104 44,568 51,168 Losses on former bank premises and equipment, net of tax — — — (39 ) — Losses on sale of securities, net of tax 10 — — 11 49 Gain on sale of branch — (735 ) (735 ) Gain on extinguishment of debt, net of tax — — (408 ) — (1,150 ) Acquisition-related expenses (2), net of tax 319 417 2 1,362 153 Core conversion expenses, net of tax 403 — — 403 — Core net income available to common shareholders $ 17,224 $ 16,273 $ 17,963 $ 46,305 $ 49,485 Pre-tax, pre-provision earnings available to common shareholders (a+b) $ 24,438 $ 23,075 $ 26,570 $ 65,908 $ 74,610 Losses on former bank premises and equipment — — — (50 ) — Loss on sale of securities 13 — — 14 62 Gain on sale of branch — (932 ) (932 ) Gain on extinguishment of debt — — (517 ) — (1,458 ) Acquisition-related expenses (2) 319 419 2 1,453 173 Occupancy and bank premises - storm repair 511 — — 511 — Core pre-tax, pre-provision earnings $ 25,281 $ 23,494 $ 25,123 $ 67,836 $ 72,455 Average Diluted Common Shares Outstanding 25,440,247 23,395,614 25,288,660 25,421,746 25,281,908 Diluted Earnings Per Common Share: Diluted earnings per common share $ 0.65 $ 0.62 $ 0.76 $ 1.75 $ 2.02 Losses on former bank premises and equipment, net of tax — — — — — Loss on sale of securities, net of tax — — — — — Gain on sale of branch, net of tax — — (0.03 ) — (0.03 ) Gain on extinguishment of debt, net of tax — — (0.02 ) — (0.04 ) Acquisition-related expenses (2), net of tax 0.01 0.02 — 0.05 0.01 Core conversion expenses,net of tax 0.02 — — 0.02 — Core diluted earnings per common share $ 0.68 $ 0.64 $ 0.71 $ 1.82 $ 1.96 Pre-tax, pre-provision profit diluted earnings per common share $ 0.96 $ 0.91 $ 1.05 $ 2.59 $ 2.95 Losses on former bank premises and equipment — — — — — Loss on sale of securities — — — — — Gain on sale of branch — — (0.04 ) — (0.04 ) Gain on extinguishment of debt — — (0.02 ) — (0.06 ) Acquisition-related expenses (2) 0.01 0.02 — 0.06 0.01 Core converison expenses 0.02 — — 0.02 — Core pre-tax, pre-provision diluted earnings per common share $ 0.99 $ 0.93 $ 0.99 $ 2.67 $ 2.86 (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2024 and 2023. 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) (Dollars in thousands, except per share data) September 30,
2024June 30,
2024September 30,
2023Total Shareholders' (Common) Equity: Total shareholders' equity $ 699,524 $ 664,530 $ 604,366 Preferred stock (71,930 ) (71,930 ) (71,930 ) Total common shareholders' equity 627,594 592,600 532,436 Goodwill (91,527 ) (91,527 ) (88,391 ) Core deposit and customer intangible (10,326 ) (10,849 ) (12,418 ) Total tangible common equity $ 525,741 $ 490,224 $ 431,627 Total Assets: Total assets $ 6,888,649 $ 6,703,889 $ 6,488,781 Goodwill (91,527 ) (91,527 ) (88,391 ) Core deposit and customer intangible (10,326 ) (10,849 ) (12,418 ) Total tangible assets $ 6,786,796 $ 6,601,513 $ 6,387,972 Common shares outstanding 25,519,501 25,502,175 25,344,168 Book value per common share $ 24.59 $ 23.24 $ 21.01 Tangible book value per common share $ 20.60 $ 19.22 $ 17.03 Common equity to total assets 9.11 % 8.84 % 8.21 % Tangible common equity to tangible assets 7.75 % 7.43 % 6.76 % Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) Three Months Ended Nine Months Ended (Dollars in thousands, except per share data) September 30,
2024June 30,
2024September 30,
2023September 30,
2024September 30,
2023Total Quarterly Average Assets $ 6,788,644 $ 6,711,173 $ 6,474,935 $ 6,722,716 $ 6,290,886 Total Quarterly Average Common Equity $ 610,018 $ 583,184 $ 535,211 $ 590,354 $ 526,398 Net Income Available to Common Shareholders: Net income available to common shareholders $ 16,492 $ 15,856 $ 19,104 $ 44,568 $ 51,168 Gain on former bank premises and equipment, net of tax — — — (39 ) — Loss on sale of securities, net of tax 10 — — 11 49 Gain on sale of branch, net of tax — — (735 ) — (735 ) Gain on extinguishment of debt, net of tax — — (408 ) — (1,150 ) Acquisition-related expenses, net of tax 319 417 2 1,362 153 Core conversion expenses, net of tax 403 — — 403 — Core net income available to common shareholders $ 17,224 $ 16,273 $ 17,963 $ 46,305 $ 49,485 Return to common shareholders on average assets (annualized) (2) 0.97 % 0.95 % 1.17 % 0.89 % 1.09 % Core return on average assets (annualized) (2) 1.01 % 0.98 % 1.10 % 0.92 % 1.05 % Return to common shareholders on average common equity (annualized) (2) 10.76 % 10.94 % 14.16 % 10.08 % 13.00 % Core return on average common equity (annualized) (2) 11.23 % 11.22 % 13.32 % 10.48 % 12.57 % Interest Income: Interest income $ 102,741 $ 99,870 $ 93,322 $ 298,622 $ 258,662 Core interest income 102,741 99,870 93,322 298,622 258,662 Interest Expense: Interest expense 46,627 45,861 38,028 136,968 97,293 Core interest expense 46,627 45,861 38,028 136,968 97,293 Other Income: Other income 10,774 12,176 9,883 32,336 30,229 Gain on former bank premises and equipment — — — (50 ) — Loss on sale of securities 13 — — 14 62 Gain on sale of branch — — (932 ) — (932 ) Gain on extinguishment of debt — — (517 ) — — (1,458 ) Core other income 10,787 12,176 8,434 32,300 27,901 Other Expense: Other expense 42,450 43,110 38,607 128,082 116,988 Acquisition-related expenses (319 ) (419 ) (2 ) (1,453 ) (173 ) Core conversion expenses (511 ) — — (511 ) — Core other expense $ 41,620 $ 42,691 $ 38,605 $ 126,118 $ 116,815 Efficiency Ratio: Other expense (a) $ 42,450 $ 43,110 $ 38,607 $ 128,082 $ 116,988 Core other expense (c) $ 41,620 $ 42,691 $ 38,605 $ 126,118 $ 116,815 Net interest and other income (1) (b) $ 66,901 $ 66,185 $ 65,177 $ 194,004 $ 191,660 Core net interest and other income (1) (d) $ 66,901 $ 66,185 $ 63,728 $ 193,954 $ 189,270 Efficiency ratio (a/b) 63.45 % 65.14 % 59.23 % 66.02 % 61.04 % Core efficiency ratio (c/d) 62.21 % 64.50 % 60.58 % 65.02 % 61.72 % Total Average Interest-Earnings Assets $ 6,363,995 $ 6,291,616 $ 6,071,129 $ 6,300,814 $ 5,890,433 Net Interest Income: Net interest income $ 56,114 $ 54,009 $ 55,294 $ 161,654 $ 161,369 Loan discount accretion $ (705 ) $ (1,695 ) $ (2,419 ) $ (3,185 ) $ (7,390 ) Net interest income excluding loan discount accretion $ 55,409 $ 52,314 $ 52,875 $ 158,469 $ 153,979 Net interest margin (2) 3.51 % 3.45 % 3.61 % 3.43 % 3.66 % Net interest margin excluding loan discount accretion (2) 3.46 % 3.34 % 3.46 % 3.36 % 3.49 % Net interest spread (2) 2.54 % 2.47 % 2.68 % 2.46 % 2.79 % Net interest spread excluding loan discount accretion (2) 2.50 % 2.37 % 2.53 % 2.39 % 2.62 % (1) Excludes gains/losses on sales of securities. (2) Calculated utilizing an actual day count convention. Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com
- Net Interest Margin (NIM) Expansion. For the quarter ended September 30, 2024, net interest income totaled $56.1 million and net interest margin and net interest spread were 3.51% and 2.54%, respectively, compared to $54.0 million, 3.45% and 2.47% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.7 million) were 3.46% and 2.50% for the quarter ended September 30, 2024, compared to 3.34% and 2.37% (excluding loan discount accretion of $1.7 million) for the linked quarter.