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Business First Bancshares, Inc., Announces Financial Results for Fiscal Year 2021 and Q4 2021
ソース: Nasdaq GlobeNewswire / 25 1 2022 15:01:01 America/Chicago
BATON ROUGE, La., Jan. 25, 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 year ended December 31, 2021, including net income of $52.1 million, or $2.53 per diluted share, an increase of $22.1 million and $0.89, respectively, from the prior year ended December 31, 2020. The increase was largely impacted by a $9.2 million pre-tax gain on sale of Small Business Administration (SBA) Paycheck Protection Program (PPP) loans during the second quarter of 2021 and pre-tax net interest income of $8.2 million realized in 2021 related to SBA PPP loans. On a non-GAAP basis, core net income for the year ended December 31, 2021, which excludes certain income and expenses, was $53.9 million, or $2.61 per diluted share, increases of $16.5 million and $0.56, respectively, from prior year ended December 31, 2020.
For the quarter ended December 31, 2021, Business First reported net income of $12.1 million, or $0.59 per diluted share, increases of $1.8 million and $0.09, respectively, from the quarter ended September 30, 2021. On a non-GAAP basis, core net income for the quarter ended December 31, 2021, which excludes certain income and expenses, was $11.7 million, or $0.57 per diluted share, an increase of $0.8 million and $0.04, respectively, from the quarter ended September 30, 2021.
“Given all that has occurred over the past few years in our company and across the country the fourth quarter of 2021 was the most “normal” quarter we’ve had in some time,” said Jude Melville, president and CEO. “We are adding clarity and visibility to our story: an entrepreneurial company steadily building core profitability, adding employees, clients and product capability, and diversifying risk across an expanding footprint. We enter 2022 eager to close our pending merger with Texas Citizens Bank in Houston, continue building upon our foundational investment in Dallas-Fort Worth and grow our market share across Louisiana.”
On January 24, 2022, Business First’s board of directors declared a quarterly dividend based upon financial performance for the fourth quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of February 15, 2022. The dividend will be paid on February 28, 2022, or as soon thereafter as practicable.
Quarterly Highlights
- Loan Growth. Total loans held for investment at December 31, 2021, were $3.2 billion, an increase of $123.4 million compared to September 30, 2021, or 4.02% for the quarter and 16.10% annualized. Excluding the decrease in SBA PPP loans, total loans held for investment increased from the quarter ended September 30, 2021, by 4.18%, or 16.71% annualized. Loan growth in Dallas, Tx. (28.6%), greater New Orleans (63.4%), and the Baton Rouge/Capital Region (36.1%) markets accounted for 128.1% of the quarterly loan growth, offset by normal net maturities and payoffs in Business First’s other markets.
- Stable Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets slightly improved from 0.37% and 0.45%, respectively, at September 30, 2021, to 0.31% and 0.41% at December 31, 2021. The nonperforming asset ratio has decreased from the prior quarter due to asset sales.
- Banking Center Sale. Business First regularly evaluates its Banking Center network in search of optimization opportunities and closed two Banking Centers during Q4 2021, one in Minden, La, and a second by sale in Oak Grove, La., on October 1, 2021. The Banking Center sale resulted in a pre-tax gain on sale of $492,000.
- Texas Citizens Bancorp, Inc. Acquisition. On October 20, 2021, Business First executed a definitive agreement to acquire Texas Citizens Bancshares, Inc. (TCBI), the parent bank holding company for Texas Citizens Bank, National Association, based in Pasadena, Tx. As of December 31, 2021, TCBI had consolidated total assets of $547.2 million, loans of $359.0 million, and deposits of $482.8 million.
Financial Condition
December 31, 2021, Compared to September 31, 2021
Loans
Loans held for investment increased $123.4 million, or 4.02% (16.10% annualized), for the quarter ended December 31, 2021. The increase was largely attributable to loan originations in our construction and land and nonfarm, nonresidential real estate portfolios which were $83.7 million and $32.7 million, respectively. Year to date loan growth was 6.63%, inclusive of SBA PPP loans. As of December 31, 2021, SBA PPP loans with an unpaid principal balance of $5.4 million remained outstanding, compared to $8.9 million as of September 30, 2021.
Excluding the net decrease in SBA PPP loans, total loans held for investment increased for the quarter ended December 31, 2021, by 4.18%, or 16.71% annualized. Year to date loan growth was 19.00% excluding SBA PPP loans.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from 0.45% as of September 30, 2021, to 0.41% as of December 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.37% as of September 30, 2021, to 0.31% as of December 31, 2021.
Total Shareholders’ Equity
Book value per common share was $21.24 at December 31, 2021, compared to $21.11 at September 30, 2021. On a non-GAAP basis, tangible book value per share was $17.71 at December 31, 2021, compared to $17.53 at September 30, 2021.
December 31, 2021, Compared to December 31, 2020
Loans
Total loans held for investment increased by $198.3 million compared to December 31, 2020, or 6.63 %. Excluding SBA PPP loans, loans increased $508.3 million, or 19.00%.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment increased from 0.35% as of December 31, 2020, to 0.41% as of December 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.48% as of December 31, 2020, to 0.31% as of December 31, 2021, largely due to the sales of nonperforming assets.
Total Shareholders’ Equity
Book value per common share was $21.24 at December 31, 2021, compared to $19.88 at December 31, 2020. On a non-GAAP basis, tangible book value per share was $17.71 at December 31, 2021, compared to $16.80 at December 31, 2020.
Results of Operations
Fourth Quarter 2021 Compared to Third Quarter 2021
Net Income and Diluted Earnings Per Share
For the quarter ended December 31, 2021, net income was $12.1 million, or $0.59 per diluted share, compared to net income of $10.3 million, or $0.50 per diluted share, for the quarter ended September 31, 2021. The increase, $1.8 million and $0.09, respectively, was largely attributable to a $1.1 million increase in pre-tax net interest income and a $455,000 increase in pre-tax gains on sales of securities for the quarter ended December 31, 2021.
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended December 31, 2021, was $11.7 million, or $0.57 per diluted share, compared to core net income of $10.9 million, or $0.53 per diluted share, for the quarter ended September 30, 2021. Notable noncore events impacting earnings for the quarter ended December 31, 2021, included $444,000 in gains on sale of securities and a $492,000 gain on sale of the Oak Grove Banking Center within other income, and $266,000 of expenses attributable to acquisition-related expenses, compared to $211,000 in occupancy and bank premises expenses attributable to hurricane damages (primarily related to Ida, 2021), $145,000 in acquisition-related expenses and $392,000 in losses on sales of former premises and equipment within other income, for the quarter ended September 30, 2021.
Interest Income
For the quarter ended December 31, 2021, net interest income totaled $38.3 million and net interest margin and net interest spread were 3.57% and 3.38%, respectively, compared to $37.3 million, 3.71% and 3.51% for the quarter ended September 30, 2021. The average yield on total interest-earning assets was 3.93% for the quarter ended December 31, 2021, compared to 4.14% for the quarter ended September 30, 2021. The increase in interest income was largely attributable to loan growth during the fourth quarter. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.93% for the quarter ended December 31, 2021, compared to 5.11% for the quarter ended September 30, 2021, due to lower-yielding new originations.
Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.42% and 3.24%, respectively, for the quarter ended December 31, 2021, compared to 3.56% and 3.36% (excluding loan discount accretion of $1.5 million) for the quarter ended September 30, 2021.
Interest Expense
For the quarter ended December 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by six basis points, from 0.44% to 0.38%, compared to the quarter ended September 30, 2021, due to a combination of increased noninterest deposits and lower yielding interest-bearing deposits.
Other Income
For the quarter ended December 31, 2021, other income was higher by $627,000 compared to the quarter ended September 30, 2021. The increase was largely attributable to increases on gains of securities of $455,000, fees and brokerage commissions of $386,000, gains on sales of other real estate owned of $523,000, and gain on sale of the Oak Grove Banking Center of $492,000, offset by a reduction of other income of $1.3 million.
Other Expenses
For the quarter ended December 31, 2021, other expense decreased by $152,000 compared to the quarter ended September 30, 2021.
Provision for Loan Losses
During the quarter ended December 31, 2021, Business First recorded a provision for loan losses of $1.3 million, compared to $1.1 million for the quarter ended September 30, 2021. The reserve for the quarter ended December 31, 2021, was driven primarily by the improvement in the qualitative factors (attributed to the general economy and energy sector), offset by reserves for new loan growth.
Return on Assets and Equity
Return on average assets and equity, each on an annualized basis, were 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021, compared to 0.95% and 9.47%, respectively, for the quarter ended September 30, 2021.
Fourth Quarter 2021 Compared to Fourth Quarter 2020
Net Income and Diluted Earnings Per Share
For the quarter ended December 31, 2021, net income was $12.1 million, or $0.59 per diluted share, compared to net income of $13.8 million, or $0.67 per diluted share, for the quarter ended December 31, 2020. The decreases in net income and diluted earnings per share were largely attributable to lower interest income related to a reduction of SBA PPP loan fees and discount accretion, as well as the $4.2 million gains on sales of loans under the Main Street Lending Program (Main Street) which occurred in December 2020, offset by the reduction of $2.4 million loss on early extinguishment of Federal Home Loan Bank (FHLB) debt which occurred in December 2020 and a decrease in the provision for loan losses of $834,000.
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended December 31, 2021, was $11.7 million, or $0.57 per diluted share, compared to core net income of $14.1 million, or $0.68 per diluted share, for the quarter ended December 31, 2020. Notable noncore events impacting earnings for the quarter ended December 31, 2021, included $444,000 gains on sale of securities and a $492,000 gain on sale of the Oak Grove Banking Center within other income, and $266,000 of expenses attributable to acquisition-related expenses, compared to the incurrence of $568,000 in acquisition-related expenses and $158,000 in gains attributed to former bank premises and equipment in other income for the quarter ended December 31, 2020.
Interest Income
For the quarter ended December 31, 2021, net interest income totaled $38.3 million and net interest margin and net interest spread were 3.57% and 3.38%, respectively, compared to $39.6 million, 4.26% and 4.03% for the quarter ended December 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.93% for the quarter ended December 31, 2021, compared to 5.59% for the quarter ended December 31, 2020. The decrease in interest income was largely attributable to lower fees and interest income from lower SBA PPP loan balances.
Average yield on total interest-earning assets, net interest margin, and net interest spread were negatively impacted for the quarter ended December 31, 2021, by lower yielding loans and securities, offset partially by lower deposit and borrowing costs.
Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.42% and 3.24%, respectively, for the quarter ended December 31, 2021, compared to 3.99% and 3.75% (excluding loan discount accretion of $2.6 million) for the quarter ended December 31, 2020.
Interest Expense
For the quarter ended December 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 15 basis points, from 0.53% to 0.38%, compared to the quarter ended December 31, 2020. The decrease in cost of funds was primarily attributable to an overall reduction in interest rates on deposit offerings and reduction in FHLB advance balances, offset by an increase associated with higher subordinated debt balances.
Other Income
For the quarter ended December 31, 2021, the decrease in other income of $2.6 million was largely attributable to the $4.2 million gains on sales of Main Street loans which occurred during December 2020, offset by an increase in gains on sales of securities of $429,000 and $1.3 million in fees and brokerage commissions, compared to the quarter ended December 31, 2020.
Other Expenses
For the quarter ended December 31, 2021, the decrease in other expense was $187,000 compared to December 31, 2020. Notable changes include a net increase in salaries and employee benefits of $2.4 million, offset by a reduction of other expenses attributable to a reduction of $2.4 million on loss of early extinguishment of FHLB debt.
Provision for Loan Losses
During the quarter ended December 31, 2021, Business First recorded a provision for loan losses of $1.3 million compared to $2.1 million for the quarter ended December 31, 2020. The reserve for the quarter ended December 31, 2020, was impacted by $450,000 in net charge-offs and 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 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021, from 1.37% and 13.86%, respectively, for the quarter ended December 31, 2020.
About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $4.7 billion in assets, $6.2 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, Texas area, 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 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 the Company’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. Actual results will also be significantly impacted by the effects of the ongoing COVID-19 pandemic, including, among other effects: the impact of the public health crisis; the extent and duration of closures of businesses, including our Banking Centers, vendors and customers; the operation of financial markets; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; the adequacy of our allowance for loan losses in relation to potential losses in our loan portfolio; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. 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 on Business First and the TCBI merger, 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.
Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.comBusiness First Bancshares, Inc. Selected Financial Information (Unaudited) For the Quarter Ended December 31, September 30, December 31, (Dollars in thousands) 2021 2021 2020 Balance Sheet Ratios Loans (HFI) to Deposits 78.23 % 81.37 % 82.71 % Shareholders' Equity to Assets Ratio 9.17 % 9.77 % 9.85 % Loans Receivable Held for Investment Commercial (1) $ 721,385 $ 723,077 $ 886,325 Real Estate: Construction and Land 548,528 464,808 403,065 Farmland 87,463 85,898 55,883 1-4 Family Residential 467,699 464,462 468,650 Multi-Family Residential 97,508 107,551 95,707 Nonfarm Nonresidential 1,144,426 1,111,771 971,603 Total Real Estate 2,345,624 2,234,490 1,994,908 Consumer and Other (1) 122,599 108,669 110,122 Total Loans (Held for Investment) $ 3,189,608 $ 3,066,236 $ 2,991,355 Allowance for Loan Losses Balance, Beginning of Period $ 28,146 $ 26,702 $ 20,340 Charge-offs – Quarterly (385 ) (81 ) (715 ) Recoveries – Quarterly 51 378 265 Provision for Loan Losses – Quarterly 1,300 1,147 2,134 Balance, End of Period $ 29,112 $ 28,146 $ 22,024 Allowance for Loan Losses to Total Loans (HFI) 0.91 % 0.92 % 0.74 % Net Charge-offs (Recoveries) to Average Total Loans 0.01 % -0.01 % 0.01 % Remaining Loan Purchase Discount $ 27,573 $ 29,390 $ 35,580 Nonperforming Assets Nonperforming Loans: Nonaccrual Loans (2) $ 12,868 $ 12,622 $ 9,063 Loans Past Due 90 Days or More (2) 222 1,030 1,523 Total Nonperforming Loans 13,090 13,652 10,586 Other Nonperforming Assets: Other Real Estate Owned 1,427 2,152 9,051 Other Nonperforming Assets - 675 402 Total Other Nonperforming Assets 1,427 2,827 9,453 Total Nonperforming Assets $ 14,517 $ 16,479 $ 20,039 Nonperforming Loans to Total Loans (HFI) 0.41 % 0.45 % 0.35 % Nonperforming Assets to Total Assets 0.31 % 0.37 % 0.48 % (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $5.4 million of the commercial portfolio as of December 31, 2021. SBA PPP loans accounted for $9.7 million of the commercial portfolio as of September 30, 2021. SBA PPP loans accounted for $313.9 million and $1.6 million of the commercial and consumer portfolios, respectively, as of December 31, 2020. (2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. Business First Bancshares, Inc. Selected Financial Information (Unaudited) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, (Dollars in thousands, except per share data) 2021 2021 2020 2021 2020 Per Share Data Basic Earnings per Common Share $ 0.59 $ 0.51 $ 0.67 $ 2.54 $ 1.65 Diluted Earnings per Common Share 0.59 0.50 0.67 2.53 1.64 Dividends per Common Share 0.12 0.12 0.10 0.46 0.40 Book Value per Common Share 21.24 21.11 19.88 21.24 19.88 Average Common Shares Outstanding 20,299,704 20,384,879 20,590,239 20,502,249 18,169,599 Average Diluted Shares Outstanding 20,462,317 20,513,838 20,726,648 20,634,281 18,243,445 End of Period Common Shares Outstanding 20,400,349 20,383,504 20,621,437 20,400,349 20,621,437 Annualized Performance Ratios Return on Average Assets 1.05 % 0.95 % 1.37 % 1.18 % 0.88 % Return on Average Equity 11.20 % 9.47 % 13.86 % 12.25 % 8.42 % Net Interest Margin 3.57 % 3.71 % 4.26 % 3.84 % 4.06 % Net Interest Spread 3.38 % 3.51 % 4.03 % 3.65 % 3.77 % Efficiency Ratio (1) 65.55 % 67.73 % 60.27 % 61.84 % 67.75 % Total Quarterly/Year-to-Date Average Assets $ 4,584,460 $ 4,353,885 $ 4,029,660 $ 4,403,670 $ 3,426,120 Total Quarterly/Year-to-Date Average Equity 430,834 435,400 399,332 425,692 356,339 Other Expenses Salaries and Employee Benefits $ 17,355 $ 16,791 $ 14,908 $ 65,825 $ 57,394 Occupancy and Bank Premises 1,522 1,629 1,525 7,238 5,349 Depreciation and Amortization 793 1,720 1,338 5,792 4,334 Data Processing 2,032 1,994 1,967 8,137 5,506 FDIC Assessment Fees 668 581 595 2,194 1,608 Legal and Other Professional Fees 480 553 626 2,679 2,118 Advertising and Promotions 999 612 645 2,712 1,605 Utilities and Communications 586 678 617 2,475 2,368 Ad Valorem Shares Tax 449 675 850 2,499 2,348 Directors' Fees 207 201 173 790 464 Other Real Estate Owned Expenses and Write-Downs 76 103 132 736 607 Merger and Conversion-Related Expenses 266 145 548 515 3,978 Other 3,982 3,885 5,678 15,469 13,314 Total Other Expenses $ 29,415 $ 29,567 $ 29,602 $ 117,061 $ 100,993 Other Income Service Charges on Deposit Accounts $ 1,800 $ 1,763 $ 1,672 $ 6,813 $ 5,358 Gain (Loss) on Sales of Securities 444 (11 ) 15 378 135 Debit Card and ATM Fee Income 1,554 1,532 1,555 6,199 4,320 Bank-Owned Life Insurance Income 367 356 251 1,396 940 Gain on Sales of Loans 3 93 4,413 10,117 4,597 Mortgage Origination Income 169 227 208 866 572 Fees and Brokerage Commission 1,721 1,335 433 5,015 970 Gain (Loss) on Sales of Other Real Estate Owned (35 ) (558 ) 199 (1,122 ) 227 Gain (Loss) on Disposal of Other Assets (9 ) 14 51 112 (576 ) Gain on Sale of Branch 492 - - 492 - Pass-Through Income from SBIC Partnerships 555 405 170 2,615 2,538 Other (86 ) 1,192 580 2,901 2,483 Total Other Income $ 6,975 $ 6,348 $ 9,547 $ 35,782 $ 21,564 (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) December 31, September 30, December 31, (Dollars in thousands) 2021 2021 2020 Assets Cash and Due From Banks $ 68,375 $ 81,361 $ 149,131 Federal Funds Sold 227,044 4,646 174,152 Securities Available for Sale, at Fair Values 1,021,061 1,034,491 640,605 Mortgage Loans Held for Sale 1,200 1,498 969 Loans and Lease Receivable 3,189,608 3,066,236 2,991,355 Allowance for Loan Losses (29,112 ) (28,146 ) (22,024 ) Net Loans and Lease Receivable 3,160,496 3,038,090 2,969,331 Premises and Equipment, Net 58,155 56,611 58,593 Accrued Interest Receivable 19,597 19,025 23,895 Other Equity Securities 16,619 15,259 12,693 Other Real Estate Owned 1,427 2,152 9,051 Cash Value of Life Insurance 60,380 59,085 45,030 Deferred Taxes, Net 8,822 5,618 5,858 Goodwill 59,894 60,062 53,862 Core Deposit and Customer Intangibles 12,203 12,835 9,734 Other Assets 11,105 14,484 7,456 Total Assets $ 4,726,378 $ 4,405,217 $ 4,160,360 Liabilities Deposits Noninterest-Bearing $ 1,291,036 $ 1,201,791 $ 1,164,139 Interest-Bearing 2,786,247 2,566,330 2,452,540 Total Deposits 4,077,283 3,768,121 3,616,679 Securities Sold Under Agreements to Repurchase 19,121 27,195 21,825 Fed Funds Purchased - 16,087 - Short-Term Borrowings 20 20 5,020 Long-Term Borrowings - - 6,000 Subordinated Debt 81,427 81,427 25,000 Subordinated Debt - Trust Preferred Securities 5,000 5,000 5,000 Federal Home Loan Bank Borrowings 82,022 48,002 43,145 Accrued Interest Payable 1,354 1,835 2,499 Other Liabilities 26,783 27,309 25,229 Total Liabilities 4,293,010 3,974,996 3,750,397 Shareholders' Equity Common Stock 20,400 20,384 20,621 Additional Paid-In Capital 292,271 291,847 299,540 Retained Earnings 121,874 112,243 79,174 Accumulated Other Comprehensive Income (1,177 ) 5,747 10,628 Total Shareholders' Equity 433,368 430,221 409,963 Total Liabilities and Shareholders' Equity $ 4,726,378 $ 4,405,217 $ 4,160,360
Business First Bancshares, Inc. Consolidated Statements of Income (Unaudited) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, (Dollars in thousands) 2021 2021 2020 2021 2020 Interest Income: Interest and Fees on Loans $ 38,337 $ 37,900 $ 41,762 $ 156,791 $ 140,459 Interest and Dividends on Securities 3,904 3,598 2,572 13,520 9,121 Interest on Federal Funds Sold and Due From Banks 50 36 53 127 175 Total Interest Income 42,291 41,534 44,387 170,438 149,755 Interest Expense: Interest on Deposits 2,645 3,060 3,736 12,183 17,562 Interest on Borrowings 1,302 1,180 1,067 4,371 4,547 Total Interest Expense 3,947 4,240 4,803 16,554 22,109 Net Interest Income 38,344 37,294 39,584 153,884 127,646 Provision for Loan Losses: 1,300 1,147 2,134 8,047 11,435 Net Interest Income After Provision for Loan Losses 37,044 36,147 37,450 145,837 116,211 Other Income: Service Charges on Deposit Accounts 1,800 1,763 1,672 6,813 5,358 Gain (Loss) on Sales of Securities 444 (11 ) 15 378 135 Gain on Sales of Loans 3 93 4,413 10,117 4,597 Other Income 4,728 4,503 3,447 18,474 11,474 Total Other Income 6,975 6,348 9,547 35,782 21,564 Other Expenses: Salaries and Employee Benefits 17,355 16,791 14,908 65,825 57,394 Occupancy and Equipment Expense 3,857 3,912 3,373 15,750 11,380 Merger and Conversion-Related Expense 266 145 548 515 3,978 Other Expenses 7,937 8,719 10,773 34,971 28,241 Total Other Expenses 29,415 29,567 29,602 117,061 100,993 Income Before Income Taxes: 14,604 12,928 17,395 64,558 36,782 Provision for Income Taxes: 2,536 2,617 3,561 12,422 6,788 Net Income: $ 12,068 $ 10,311 $ 13,834 $ 52,136 $ 29,994 Business First Bancshares, Inc. Consolidated Net Interest Margin (Unaudited) Three Months Ended December 31, 2021 September 30, 2021 December 31, 2020 (Dollars in thousands) Average
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BalanceInterest Earned /
Interest PaidAverage
Yield / RateAssets Interest-Earning Assets: Total Loans (Excluding SBA PPP) $ 3,106,477 $ 38,318 4.93 % $ 2,948,491 $ 37,666 5.11 % $ 2,685,093 $ 37,509 5.59 % SBA PPP Loans 7,733 19 1.00 % 10,150 234 9.24 % 365,058 4,253 4.66 % Securities Available for Sale 1,041,437 3,904 1.50 % 946,950 3,598 1.52 % 603,192 2,572 1.71 % Interest-Bearing Deposit in Other Banks 143,488 50 0.14 % 110,472 36 0.13 % 61,485 53 0.34 % Total Interest-Earning Assets 4,299,135 42,291 3.93 % 4,016,063 41,534 4.14 % 3,714,828 44,387 4.78 % Allowance for Loan Losses (28,379 ) (27,409 ) (21,020 ) Noninterest-Earning Assets 313,704 365,231 335,852 Total Assets $ 4,584,460 $ 42,291 $ 4,353,885 $ 41,534 $ 4,029,660 $ 44,387 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 2,653,041 $ 2,645 0.40 % $ 2,566,766 $ 3,060 0.48 % $ 2,313,511 $ 3,736 0.65 % Subordinated Debt 81,427 1,026 5.04 % 81,427 1,026 5.04 % 25,000 422 6.75 % Subordinated Debt - Trust Preferred Securities 5,000 42 3.36 % 5,000 42 3.36 % 5,000 42 3.36 % Advances from Federal Home Loan Bank (FHLB) 83,374 229 1.10 % 36,015 106 1.18 % 105,640 407 1.54 % Paycheck Protection Program Liquidity Facility (PPPLF) - - 0.00 % - - 0.00 % 79,450 70 0.35 % Other Borrowings 25,774 5 0.08 % 26,350 6 0.09 % 37,605 126 1.34 % Total Interest-Bearing Liabilities 2,848,616 3,947 0.55 % 2,715,558 4,240 0.62 % 2,566,206 4,803 0.75 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits $ 1,276,279 $ 1,172,752 $ 1,033,593 Other Liabilities 28,731 30,175 30,529 Total Noninterest-Bearing Liabilities 1,305,010 1,202,927 1,064,122 Shareholders' Equity 430,834 435,400 399,332 Total Liabilities and Shareholders' Equity $ 4,584,460 $ 4,353,885 $ 4,029,660 Net Interest Spread 3.38 % 3.51 % 4.03 % Net Interest Income $ 38,344 $ 37,294 $ 39,584 Net Interest Margin 3.57 % 3.71 % 4.26 % Overall Cost of Funds 0.38 % 0.44 % 0.53 % 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. Consolidated Net Interest Margin (Unaudited) Year Ended December 31, 2021 December 31, 2020 (Dollars in thousands) Average
Outstanding
BalanceInterest Earned /
Interest PaidAverage
Yield / RateAverage
Outstanding
BalanceInterest Earned /
Interest PaidAverage
Yield / RateAssets Interest-Earning Assets: Total Loans (Excluding SBA PPP) $ 2,878,306 $ 148,638 5.16 % $ 2,342,034 $ 131,208 5.60 % SBA PPP Loans 158,714 8,153 5.14 % 271,388 9,251 3.41 % Securities Available for Sale 870,282 13,520 1.55 % 483,976 9,121 1.88 % Interest-Bearing Deposit in Other Banks 104,471 127 0.12 % 48,345 175 0.36 % Total Interest-Earning Assets 4,011,773 170,438 4.25 % 3,145,743 149,755 4.76 % Allowance for Loan Losses (26,132 ) (16,540 ) Noninterest-Earning Assets 418,029 296,917 Total Assets $ 4,403,670 $ 170,438 $ 3,426,120 $ 149,755 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 2,604,825 $ 12,183 0.47 % $ 1,978,295 $ 17,562 0.89 % Subordinated Debt 68,183 3,526 5.17 % 25,000 1,688 6.75 % Subordinated Debt - Trust Preferred Securities 5,000 168 3.36 % 3,341 121 3.62 % Advances from Federal Home Loan Bank (FHLB) 47,325 554 1.17 % 113,999 1,945 1.71 % Paycheck Protection Program Liquidity Facility (PPPLF) - - 0.00 % 65,857 237 0.36 % Other Borrowings 27,182 123 0.45 % 43,286 556 1.28 % Total Interest-Bearing Liabilities 2,752,515 16,554 0.60 % 2,229,778 22,109 0.99 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits 1,196,970 812,332 Other Liabilities 28,493 27,671 Total Noninterest-Bearing Liabilities 1,225,463 840,003 Shareholders' Equity 425,692 356,339 Total Liabilities and Shareholders' Equity $ 4,403,670 $ 3,426,120 Net Interest Spread 3.65 % 3.77 % Net Interest Income $ 153,884 $ 127,646 Net Interest Margin 3.84 % 4.06 % Overall Cost of Funds 0.42 % 0.73 % 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 Year Ended December 31, September 30, December 31, December 31, December 31, (Dollars in thousands, except per share data) 2021 2021 2020 2021 2020 Interest Income: Interest income $ 42,291 $ 41,534 $ 44,387 $ 170,438 $ 149,755 Core interest income 42,291 41,534 44,387 170,438 149,755 Interest Expense: Interest expense 3,947 4,240 4,803 16,554 22,109 Core interest expense 3,947 4,240 4,803 16,554 22,109 Provision for Loan Losses: (b) Provision for loan losses 1,300 1,147 2,134 8,047 11,435 Core provision expense 1,300 1,147 2,134 8,047 11,435 Other Income: Other income 6,975 6,348 9,547 35,782 21,564 (Gains) 1osses on former bank premises and equipment 78 392 (158 ) 1,010 351 (Gains) 1osses on sale of securities (444 ) 11 (15 ) (378 ) (135 ) (Gains) on sale of branch (492 ) - - (492 ) - Core other income 6,117 6,751 9,374 35,922 21,780 Other Expense: Other expense 29,415 29,567 29,602 117,061 100,993 Acquisition-related expenses (2) (266 ) (145 ) (568 ) (515 ) (9,559 ) Stock option exercises - excess taxes (founder's grants) - - - - (71 ) Occupancy and bank premises - hurricane repair (57 ) (211 ) - (1,556 ) - Core other expense 29,092 29,211 29,034 114,990 91,363 Pre-Tax Income: (a) Pre-tax income 14,604 12,928 17,395 64,558 36,782 (Gains) 1osses on former bank premises and equipment 78 392 (158 ) 1,010 351 (Gains) 1osses on sale of securities (444 ) 11 (15 ) (378 ) (135 ) (Gains) on sale of branch (492 ) - - (492 ) - Acquisition-related expenses (2) 266 145 568 515 9,559 Stock option exercises - excess taxes (founder's grants) - - - - 71 Occupancy and bank premises - hurricane repair 57 211 - 1,556 - Core pre-tax income 14,069 13,687 17,790 66,769 46,628 Provision for Income Taxes: (1) Provision for income taxes 2,536 2,617 3,561 12,422 6,788 Tax on (gains) losses on former bank premises and equipment 16 82 (33 ) 211 74 Tax on (gains) losses on sale of securities (93 ) 2 (3 ) (79 ) (28 ) Tax on (gains) on sale of branch (138 ) - - (138 ) - Tax on acquisition-related expenses (2) 62 24 120 108 1,727 Tax on stock option exercises (founder's grants) - - - - 601 Tax on occupancy and bank premises - hurricane repair 12 44 - 326 - Core provision for income taxes 2,395 2,769 3,645 12,850 9,162 Net Income: Net income 12,068 10,311 13,834 52,136 29,994 (Gains) losses on former bank premises and equipment, net of tax 62 310 (125 ) 799 277 (Gains) losses on sale of securities, net of tax (351 ) 9 (12 ) (299 ) (107 ) (Gains) on sale of branch (354 ) - - (354 ) - Acquisition-related expenses (2), net of tax 204 121 448 407 7,832 Stock option exercises (founder's grants), net of tax - - - - (530 ) Occupancy and bank premises - hurricane repair, net of tax 45 167 - 1,230 - Core net income $ 11,674 $ 10,918 $ 14,145 $ 53,919 $ 37,466 Pre-tax, pre-provision earnings (a+b) $ 15,904 $ 14,075 $ 19,529 $ 72,605 $ 48,217 (Gains) losses on former bank premises and equipment 78 392 (158 ) 1,010 351 (Gains) losses on sale of securities (444 ) 11 (15 ) (378 ) (135 ) (Gains) on sale of branch (492 ) - - (492 ) - Acquisition-related expenses (2) 266 145 568 515 9,559 Stock option exercises (founder's grants) - - - - 71 Occupancy and bank premises - hurricane repair 57 211 - 1,556 - Core pre-tax, pre-provision earnings $ 15,369 $ 14,834 $ 19,924 $ 74,816 $ 58,063 Average Diluted Shares Outstanding 20,462,317 20,513,838 20,726,648 20,634,281 18,243,445 Diluted Earnings Per Share: Diluted earnings per share $ 0.59 $ 0.50 $ 0.67 $ 2.53 $ 1.64 (Gains) losses on former bank premises and equipment, net of tax (0.00 ) 0.01 (0.01 ) 0.04 0.02 (Gains) losses on sale of securities, net of tax (0.01 ) 0.00 - (0.02 ) (0.01 ) (Gains) on sale of branch (0.02 ) - - (0.02 ) - Acquisition-related expenses (2), net of tax 0.01 0.01 0.02 0.02 0.43 Stock option exercises (founder's grants), net of tax - - - - (0.03 ) Occupancy and bank premises - hurricane repair, net of tax 0.00 0.01 - 0.06 - Core diluted earnings per share $ 0.57 $ 0.53 $ 0.68 $ 2.61 $ 2.05 Pre-tax, pre-provision profit diluted earnings per share $ 0.78 $ 0.69 $ 0.94 $ 3.52 $ 2.64 (Gains) losses on former bank premises and equipment 0.00 0.01 (0.01 ) 0.05 0.02 (Gains) losses on sale of securities (0.02 ) 0.00 - (0.02 ) (0.01 ) (Gains) on sale of branch (0.02 ) - - (0.02 ) - Acquisition-related expenses (2) 0.01 0.01 0.03 0.02 0.52 Stock option exercises (founder's grants) - - - - 0.00 Occupancy and bank premises - hurricane repair 0.00 0.01 - 0.08 - Core pre-tax, pre-provision diluted earnings per share $ 0.75 $ 0.72 $ 0.96 $ 3.63 $ 3.17 (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.00% for 2021 and 2020. These rates approximated the marginal tax rates. (2) Includes merger and conversion-related expenses and salary and employee benefits. Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, (Dollars in thousands, except per share data) 2021 2021 2020 2021 2020 Total Quarterly/Year-to-Date Average Assets $ 4,584,460 $ 4,353,885 $ 4,029,660 $ 4,403,670 $ 3,426,120 Total Quarterly/Year-to-Date Average Equity $ 430,834 $ 435,400 $ 399,332 $ 425,692 $ 356,339 Net Income: Net income $ 12,068 $ 10,311 $ 13,834 $ 52,136 $ 29,994 (Gains) losses on former bank premises and equipment, net of tax 62 310 (125 ) 799 277 (Gains) losses on sale of securities, net of tax (351 ) 9 (12 ) (299 ) (107 ) (Gains) on sale of branch, net of tax (354 ) - - (354 ) - Acquisition-related expenses (2), net of tax 204 121 448 407 7,832 Stock option exercises (founder's grants), net of tax - - - - (530 ) Occupancy and bank premises - hurricane repair, net of tax 45 167 - 1,230 - Core net income $ 11,674 $ 10,918 $ 14,145 $ 53,919 $ 37,466 Return on average assets 1.05 % 0.95 % 1.37 % 1.18 % 0.88 % Core return on average assets 1.02 % 1.00 % 1.40 % 1.22 % 1.09 % Return on equity 11.20 % 9.47 % 13.86 % 12.25 % 8.42 % Core return on average equity 10.84 % 10.03 % 14.17 % 12.67 % 10.51 % Interest Income: Interest income $ 42,291 $ 41,534 $ 44,387 $ 170,438 $ 149,755 Core interest income 42,291 41,534 44,387 170,438 149,755 Interest Expense: Interest expense 3,947 4,240 4,803 16,554 22,109 Core interest expense 3,947 4,240 4,803 16,554 22,109 Other Income: Other income 6,975 6,348 9,547 35,782 21,564 (Gains) losses on former bank premises and equipment 78 392 (158 ) 1,010 351 (Gains) losses on sale of securities (444 ) 11 (15 ) (378 ) (135 ) (Gains) on sale of branch (492 ) - - (492 ) - Core other income 6,117 6,751 9,374 35,922 21,780 Other Expense: Other expense 29,415 29,567 29,602 117,061 100,993 Acquisition-related expenses (266 ) (145 ) (568 ) (515 ) (9,559 ) Stock option exercises - excess taxes (founder's grants) - - - - (71 ) Occupancy and bank premises - hurricane repair (57 ) (211 ) - (1,556 ) - Core other expense $ 29,092 $ 29,211 $ 29,034 $ 114,990 $ 91,363 Efficiency Ratio: Other expense (a) $ 29,415 $ 29,567 $ 29,602 $ 117,061 $ 100,993 Core other expense (c) $ 29,092 $ 29,211 $ 29,034 $ 114,990 $ 91,363 Net interest and other income (1) (b) $ 44,875 $ 43,653 $ 49,116 $ 189,288 $ 149,075 Core net interest and other income (1) (d) $ 44,461 $ 44,045 $ 48,958 $ 189,806 $ 149,426 Efficiency ratio (a/b) 65.55 % 67.73 % 60.27 % 61.84 % 67.75 % Core efficiency ratio (c/d) 65.43 % 66.32 % 59.30 % 60.58 % 61.14 % Total Average Interest-Earnings Assets $ 4,299,135 $ 4,016,063 $ 3,714,828 $ 4,011,773 $ 3,145,743 Net Interest Income: Net interest income $ 38,344 $ 37,294 $ 39,584 $ 153,884 $ 127,646 Loan discount accretion (1,559 ) (1,511 ) (2,567 ) (7,750 ) (6,592 ) Net interest income excluding loan discount accretion $ 36,785 $ 35,783 $ 37,017 $ 146,134 $ 121,054 Net interest margin (2) 3.57 % 3.71 % 4.26 % 3.84 % 4.06 % Net interest margin excluding loan discount accretion (2) 3.42 % 3.56 % 3.99 % 3.64 % 3.85 % Net interest spread 3.38 % 3.51 % 4.03 % 3.65 % 3.77 % Net interest spread excluding loan discount accretion 3.24 % 3.36 % 3.75 % 3.45 % 3.56 % (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) December 31, September 30, December 31, (Dollars in thousands, except per share data) 2021 2021 2020 Total Shareholders' (Common) Equity: Total shareholders' equity $ 433,368 $ 430,221 $ 409,963 Goodwill (59,894 ) (60,062 ) (53,862 ) Core deposit and customer intangible (12,203 ) (12,835 ) (9,734 ) Total tangible common equity $ 361,271 $ 357,324 $ 346,367 Total Assets: Total assets $ 4,726,378 $ 4,405,217 $ 4,160,360 Goodwill (59,894 ) (60,062 ) (53,862 ) Core deposit and customer intangible (12,203 ) (12,835 ) (9,734 ) Total tangible assets $ 4,654,281 $ 4,332,320 $ 4,096,764 Common shares outstanding 20,400,349 20,383,504 20,621,437 Book value per common share $ 21.24 $ 21.11 $ 19.88 Tangible book value per common share $ 17.71 $ 17.53 $ 16.80 Common equity to total assets 9.17 % 9.77 % 9.85 % Tangible common equity to tangible assets 7.76 % 8.25 % 8.45 % 
