• 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,
    2024
    June 30,
    2024
    September 30,
    2023
         
    Balance 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,
    2024
    June 30,
    2024
    September 30,
    2023
     September 30,
    2024
    September 30,
    2023
            
    Per 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,
    2024
    June 30,
    2024
    September 30,
    2023
         
    Assets    
         
    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 EndedNine Months Ended
    (Dollars in thousands) September 30,
    2024
    June 30,
    2024
    September 30,
    2023
    September 30,
    2024
    September 30,
    2023
           
    Interest 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 BalanceInterest Earned/Interest PaidAverage Yield/Rate Average Outstanding BalanceInterest Earned/Interest PaidAverage Yield/Rate Average Outstanding BalanceInterest Earned/Interest PaidAverage 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 BalanceInterest Earned/Interest PaidAverage Yield/Rate Average Outstanding BalanceInterest Earned/Interest PaidAverage 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,
    2024
    June 30,
    2024
    September 30,
    2023
     September 30,
    2024
    September 30,
    2023
           
    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 
    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,
    2024
    June 30,
    2024
    September 30,
    2023
        
    Total 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,
    2024
    June 30,
    2024
    September 30,
    2023
     September 30,
    2024
    September 30,
    2023
           
    Total 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


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