• Business First Bancshares, Inc., Announces Financial Results For Q1 2022

    ソース: Nasdaq GlobeNewswire / 26 4 2022 15:01:01   America/Chicago

    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 $8.7 million or $0.41 per diluted share, decreases of $3.3 million and $0.18, respectively, from the quarter ended December 31, 2021. On a non-GAAP basis, core net income for the quarter ended March 31, 2022, which excludes certain income and expenses, was $10.3 million or $0.49 per diluted share, decreases of $1.4 million and $0.08, respectively, from the quarter ended December 31, 2021.

    “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 25% annualized rate,” said Jude Melville, president and CEO. “The investments we’ve made in personnel and systems over the past few quarters are beginning to show returns. We are excited that our combination of healthy growth, stabilization of net interest margin and continued strong credit metrics put us in a solid position to help our clients continue navigating the uncertain times we are experiencing as a country.”

    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 $0.12 per share, same as the prior quarter, to the common shareholders of record as of May 15, 2022. The dividend will be paid on May 31, 2022, or as soon thereafter as practicable.

    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, or 17.52% 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, by 6.43% or 25.71% annualized, of which 71.4% was attributable to Texas and 18.4% from our New Orleans market based on unpaid principal balance. As of March 31, 2022, approximately 31% 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 were 3.51% and 3.35%, respectively, compared to $38.3 million, 3.57% and 3.38% for the quarter ended December 31, 2021. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $920,000) were 3.43% and 3.27%, respectively, for the quarter ended March 31, 2022, compared to 3.42% and 3.24% (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% and 0.31%, respectively, at December 31, 2021, to 0.29% and 0.23% 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 $558.9 million or 17.52% for the quarter ended March 31, 2022. The increase was attributable to the acquisition of Texas Citizens on March 1, 2022, and new loan originations during the quarter.

    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 $226.9 million or 6.43% or 25.71% annualized.

    Credit Quality

    Nonperforming loans as a percentage of total loans held for investment decreased from 0.41% as of December 31, 2021, to 0.29% as of March 31, 2022. Nonperforming assets as a percentage of total assets decreased from 0.31% as of December 31, 2021, to 0.23% as of March 31, 2022. The reductions were partially attributable to charge-offs during the quarter ended March 31, 2022, and the addition of Texas Citizens. Excluding the charge-offs and Texas Citizens addition, credit quality slightly improved for the quarter ended March 31, 2022.

    Total Shareholders’ Equity

    Book value per common share was $20.25 at March 31, 2022, compared to $21.24 at December 31, 2021.

    On a non-GAAP basis, tangible book value per share was $15.57 at March 31, 2022, compared to $17.71 at December 31, 2021. Tangible book value per share was impacted by the acquisition of Texas Citizens on March 1, 2022, resulting in dilution of $0.55, and a decrease in accumulated other comprehensive income of $38.6 million attributable to fair value adjustments on Business First’s available for sale investment portfolio, resulting in dilution of $1.88.

    March 31, 2022, Compared to March 31, 2021

    Loans

    Total loans held for investment increased by $706.5 million or 23.23% compared to March 31, 2021. Excluding SBA PPP loans and loans acquired from Texas Citizens on March 1, 2022, loans increased $741.5 million, or 27.92%.

    Credit Quality

    Nonperforming loans as a percentage of total loans held for investment decreased from 0.44% as of March 31, 2021, to 0.29% as of March 31, 2022. Nonperforming assets as a percentage of total assets decreased from 0.52% as of March 31, 2021, to 0.23% as of March 31, 2022, largely due to the sales of nonperforming assets.

    Total Shareholders’ Equity

    Book value per common share was $20.25 at March 31, 2022, compared to $20.03 at March 31, 2021. On a non-GAAP basis, tangible book value per share was $15.57 at March 31, 2022, compared to $16.99 at March 31, 2021. Tangible book value per share was impacted by the acquisition of Texas Citizens on March 1, 2022, and more significantly by a decrease in accumulated other comprehensive income of $45.9 million attributable to fair value adjustments on Business First’s available-for-sale investment portfolio.

    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 $8.7 million, or $0.41 per diluted share, compared to net income of $12.1 million or $0.59 per diluted share, for the quarter ended December 31, 2021, decreases of $3.3 million and $0.18, respectively. The decrease was largely attributable to a $2.3 million increase in salaries and benefits (approximately $530,000 attributable to salaries of Texas Citizens, $114,000 related to production bonuses, and $360,000 related to bonus payments/taxes attributable to 2021), and a decrease in other income attributable to $708,000 losses on disposals of other assets on former premises and equipment during the quarter ended March 31, 2022. Further, a $492,000 gain on sale of the Oak Grove Banking Center, $444,000 gain on sales of securities, and $555,000 in Small Business Investment Company (SBIC) income occurred during the quarter ended December 31, 2021. These amounts were partially offset by a $2.1 million increase in net interest income during the quarter ended March 31, 2022.

    On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2022, was $10.3 million or $0.49 per diluted share, compared to core net income of $11.7 million or $0.57 per diluted share, for the quarter ended December 31, 2021. Notable noncore events impacting earnings for the quarter ended March 31, 2022, included $717,000 losses in disposals of former bank premises and equipment in other income, $811,000 of expenses attributable to acquisition-related expenses, and $231,000 of expenses attributable to hurricane repairs, compared to $444,000 in gains on sale of securities, a $492,000 gain on sale of the Oak Grove Banking Center, and $266,000 of expenses attributable to acquisition-related expenses, for the quarter ended December 31, 2021.

    Interest Income

    For the quarter ended March 31, 2022, net interest income totaled $40.5 million and net interest margin and net interest spread were 3.51% and 3.35%, respectively, compared to $38.3 million, 3.57% and 3.38% for the quarter ended December 31, 2021. The average yield on total interest-earning assets was 3.83% for the quarter ended March 31, 2022, compared to 3.93% for the quarter ended December 31, 2021. The increase in interest income was largely attributable to loan growth during the fourth quarter of 2021 and first quarter of 2022. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.75% for the quarter ended March 31, 2022, compared to 4.93% for the quarter ended December 31, 2021, largely due to two fewer days and $639,000 less discount accretion for the quarter ended March 31, 2022.

    Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $920,000) were 3.43% and 3.27%, respectively, for the quarter ended March 31, 2022, compared to 3.42% and 3.24% (excluding loan discount accretion of $1.6 million) for the quarter ended December 31, 2021.   

    Interest Expense

    For the quarter ended March 31, 2022, overall cost of funds (which includes noninterest-bearing deposits) decreased by five basis points, from 0.38% to 0.33%, compared to the quarter ended December 31, 2021, due to increased noninterest deposits, lower yielding interest-bearing deposits, and two fewer days.

    Other Income

    For the quarter ended March 31, 2022, other income was lower by $1.8 million compared to the quarter ended December 31, 2021. The decrease was largely attributable to a $708,000 increase on losses related to disposal of other assets of former premises and equipment during the quarter ended March 31, 2022, and the $492,000 gain on sale related to the sale of the Oak Grove Banking Center, $444,000 gain on sales of securities, and $440,000 decrease in SBIC income during the quarter ended December 31, 2021.

    Other Expenses

    For the quarter ended March 31, 2022, other expense increased by $3.6 million compared to the quarter ended December 31, 2021. The increase was largely attributable to increases in salaries and benefits, $2.3 million, merger and conversion-related expenses, $545,000, and occupancy and bank premises, $530,000. The majority of the increases were attributable to the acquisition of Texas Citizens on March 1, 2022; however, salaries and benefits also increased largely due to additional staffing and merit increases during the quarter ended March 31, 2022.

    Provision for Loan Losses

    During the quarter ended March 31, 2022, Business First recorded a provision for loan losses of $1.6 million, compared to $1.3 million for the quarter ended December 31, 2021. The reserve for the quarter ended December 31, 2021, was driven primarily by new loan growth and charge-offs recorded, partially offset by improvement in the qualitative factors (attributed to the general economy and energy sector).

    Return on Assets and Equity

    Return on average assets and equity, each on an annualized basis, were 0.71% and 7.83%, respectively, for the quarter ended March 31, 2022, compared to 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021.

    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 $8.7 million or $0.41 per diluted share, compared to net income of $12.3 million or $0.59 per diluted share, for the quarter ended March 31, 2021. The decreases in net income and diluted earnings per share were largely attributable to the $7.0 million increase in other expenses, partially offset by $1.0 million in additional other income and $1.7 million less in provision for loan losses.  

    On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2022, was $10.3 million or $0.49 per diluted share, compared to core net income of $12.6 million or $0.61 per diluted share, for the quarter ended March 31, 2021. Notable noncore events impacting earnings for the quarter ended March 31, 2022, included $717,000 in losses on disposals of former bank premises and equipment in other income, $811,000 of expenses attributable to acquisition-related expenses, and $231,000 of expenses attributable to hurricane repairs, compared to the incurrence of $350,000 in losses attributed to former bank premises and equipment in other expenses for the quarter ended March 31, 2021.

    Interest Income

    For the quarter ended March 31, 2022, net interest income totaled $40.5 million and net interest margin and net interest spread were 3.51% and 3.35%, respectively, compared to $40.3 million, 4.23% and 4.06% for the quarter ended March 31, 2021. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.75% for the quarter ended March 31, 2022, compared to 5.53% for the quarter ended March 31, 2021. The quarter ended March 21, 2021, included additional loan discount accretion of $2.1 million. Excluding SBA PPP interest income and loan discount accretion, loan interest income increased $5.8 million from the prior year quarter.

    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 $920,000) were 3.43% and 3.27%, respectively, for the quarter ended March 31, 2022, compared to 3.91% and 3.73% (excluding loan discount accretion of $3.1 million) for the quarter ended March 31, 2021.

    Interest Expense

    For the quarter ended March 31, 2022, overall cost of funds (which includes noninterest-bearing deposits) decreased by eight basis points, from 0.41% to 0.33%, compared to the quarter ended March 31, 2021. The decrease in cost of funds was primarily attributable to an overall reduction in interest rates on deposit offerings and increase in noninterest-bearing deposits, offset by an increase associated with higher subordinated debt balances.

    Other Income

    For the quarter ended March 31, 2022, the increase in other income of $1.0 million, compared to the quarter ended March 31, 2021, was largely attributable to the $1.3 million increase in fees and brokerage commissions related to the acquisition of Smith Shellnut Wilson, LLC on April 1, 2021, and a $238,000 increase in service charges for deposit accounts, offset by a $834,000 increase on losses on disposal of other assets mainly attributable to former premises and equipment.

    Other Expenses

    For the quarter ended March 31, 2022, the increase in other expense was $7.0 million compared to the quarter ended March 31, 2021. Notable increases include an increase in salaries and employee benefits of $4.8 million, attributable to an increase in employees, including the acquisition of Texas Citizens on March 1, 2022, merger and conversion-related expense increase of $801,000 attributable to the Texas Citizens acquisition, and other expenses increase of $613,000.

    Provision for Loan Losses

    During the quarter ended March 31, 2022, Business First recorded a provision for loan losses of $1.6 million compared to $3.4 million for the quarter ended March 31, 2021. The reserve for the quarter ended March 31, 2021, was affected by the impact of the COVID-19 pandemic on the qualitative factors at the time.

    Return on Assets and Equity

    Return on average assets and return on average equity, each on an annualized basis, were 0.71% and 7.83%, respectively, for the quarter ended March 31, 2022, from 1.15% and 11.86%, respectively, for the quarter ended March 31, 2021.   

    About Business First Bancshares, Inc.

    Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $5.4 billion in assets, $5.7 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $1.0 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a three-time recipient of Baton Rouge Business Report’s “Best Places to Work in Baton Rouge.” Visit b1BANK.com for more information.  

    Non-GAAP Financial Measures

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

    Special Note Regarding Forward-Looking Statements

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

    Additional Information

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

    No Offer or Solicitation

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

    Misty Albrecht
    b1BANK
    225.286.7879
    Misty.Albrecht@b1BANK.com


    Business First Bancshares, Inc.
    Selected Financial Information
    (Unaudited)
     For the Quarter Ended
     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 $6.0 million
    of the commercial portfolio as of March 31, 2022.   
    SBA PPP loans accounted for $5.4 million of the commercial portfolio as of December 31, 2021. 
    SBA PPP loans accounted for $385.8 million and $0.1 million of the commercial  
    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  
     OutstandingInterest Earned /Average OutstandingInterest Earned /Average OutstandingInterest Earned /Average
    (Dollars in thousands)BalanceInterest PaidYield / Rate BalanceInterest PaidYield / Rate BalanceInterest PaidYield / Rate
                
    Assets           
                
    Interest-Earning Assets:           
    Total Loans (Excluding SBA PPP)$3,382,325 $40,1744.75% $3,106,477 $38,3184.93% $2,643,668 $36,5385.53%
    SBA PPP Loans 3,725  91.00%  7,733  191.00%  374,958  4,8815.21%
    Securities Available for Sale 1,005,252  3,8441.53%  1,041,437  3,9041.50%  691,476  2,8021.62%
    Interest-Bearing Deposit in Other Banks 221,148  950.17%  143,488  500.14%  101,233  410.16%
    Total Interest-Earning Assets 4,612,450  44,1223.83%  4,299,135  42,2913.93%  3,811,335  44,2624.65%
    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 $2,2630.31% $2,653,041 $2,6450.40% $2,584,263 $3,2430.50%
    Subordinated Debt 91,354  1,1154.88%  81,427  1,0265.04%  28,450  4596.45%
    Subordinated Debt – Trust Preferred Securities 5,000  423.36%  5,000  423.36%  5,000  423.36%
    Advances from Federal Home Loan Bank (FHLB) 80,375  2231.11%  83,374  2291.10%  37,022  1111.20%
    Other Borrowings 19,666  40.08%  25,774  50.08%  31,696  1061.34%
    Total Interest-Bearing Liabilities 3,079,233  3,6470.47%  2,848,616  3,9470.55%  2,686,431  3,9610.59%
                
    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 21.00% for 2022 and 2021. These rates approximated
    the marginal tax rates.   
    (2) Includes merger and conversion-related expenses and salary and employee benefits.  
        


    Business First Bancshares, Inc.
    Non-GAAP Measures
    (Unaudited)
        
     Three Months Ended
     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%
        

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