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Business First Bancshares, Inc., Announces Financial Results for Fiscal Year 2023 and Q4 2023
Source: Nasdaq GlobeNewswire / 23 Jan 2024 16:01:20 America/New_York
BATON ROUGE, La., Jan. 23, 2024 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the year ended December 31, 2023, including net income available to common shareholders of $65.6 million or $2.59 per diluted common share, increases of $12.7 million and $0.27, respectively, from the prior year ended December 31, 2022. On a non-GAAP basis, core net income for the year ended December 31, 2023, which excludes certain income and expenses, was $66.3 million or $2.62 per diluted common share, increases of $8.7 million and $0.10, respectively, from prior year ended December 31, 2022.
For the quarter ended December 31, 2023, Business First reported net income available to common shareholders of $14.5 million, or $0.57 per diluted common share, decreases of $4.6 million and $0.19, respectively, from the quarter ended September 30, 2023. On a non-GAAP basis, core net income for the quarter ended December 31, 2023, which excludes certain income and expenses, was $16.8 million or $0.66 per diluted common share, decreases of $1.1 million and $0.05, respectively, compared to the linked quarter.
“There have been very few years in our company’s life of which I’ve been prouder than I am of the year 2023,” said Jude Melville, president and CEO. “As our country generally, and banking specifically, faced the challenge of navigating swiftly moving economic currents, our team was a source of stability, performing consistently and well for our clients and our investors. We are a stronger organization and better bankers than we were at the beginning of the year, and I am excited to see that improvement continue over the course of 2024.”
On Tuesday, January 23, 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 fourth quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on February 28, 2024, or as soon thereafter as practicable, to the shareholders of record as of February 15, 2024.
Quarterly Highlights
- Return on Assets and Equity. Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.88% and 10.54% for the quarter ended December 31, 2023, compared to 1.17% and 14.16%, respectively, for the linked quarter. Non-GAAP core return on average assets and common equity, each on an annualized basis, were 1.03% and 12.27% for the quarter ended December 31, 2023, compared to 1.10% and 13.32%, respectively, for the linked quarter.
- Credit Quality. The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets remained stable at 0.34% and 0.28% at December 31, 2023, increasing slightly from 0.33% and 0.27%, respectively, at September 30, 2023, due to an increase in nonaccrual loans.
- Security/Balance Sheet Repositioning. During the fourth quarter, Business First executed a balance sheet repositioning related to its available-for-sale (AFS) security portfolio. Business First sold $71.5 million or approximately 8.13% of the December 31, 2023, portfolio, in treasury, agency and municipal securities, with a weighted average book yield of 1.98%. Business First redeployed the proceeds into agency securities with an average book yield of 5.17%, locking in higher yields while keeping duration consistent with the overall portfolio weighted average life. The repositioning resulted in a loss of $2.5 million with an estimated earn back of 1.1 years as of December 31, 2023.
- Net Interest Margin. For the quarter ended December 31, 2023, net interest income totaled $53.8 million and net interest margin and net interest spread were 3.50% and 2.53%, respectively, compared to $55.3 million, 3.61% and 2.68% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.9 million) were 3.38% and 2.40%, respectively, for the quarter ended December 31, 2023, compared to 3.46% and 2.53% (excluding loan discount accretion of $2.4 million) for the linked quarter.
Statement of Financial Condition
Loans
Loans held for investment increased $72.5 million or 1.47%, 5.85% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the commercial and industrial (C&I) portfolio of $26.5 million and in the commercial real estate portfolio of $89.1 million, offset by a $39.0 million reduction in the construction and development (C&D) portfolio. Annual loan growth for fiscal year 2023, was $386.6 million or 8.39%.
The Dallas Fort Worth region produced 50.64% of net loan growth from the linked quarter based on unpaid principal balance, while the Greater New Orleans region produced 37.68%. Based on unpaid principal balances, Texas-based loans represent approximately 37% of the overall loan portfolio as of December 31, 2023.
Credit Quality
The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets remained stable at 0.34% and 0.28% at December 31, 2023, increasing slightly from 0.33% and 0.27%, respectively, at September 30, 2023, due to an increase in nonaccrual loans.
Securities
The securities portfolio increased $29.9 million or 3.51%, from the linked quarter. The increase was driven by positive fair value adjustments of $35.1 million. The securities portfolio, based on estimated fair value, represented 13.36% of total assets as of December 31, 2023.
During the fourth quarter, Business First executed a balance sheet repositioning related to its available-for-sale (“AFS”) security portfolio. Business First sold $71.5 million, or approximately 8.13% of the December 31, 2023, portfolio, in treasury, agency, and municipal securities, with a weighted average book yield of 1.98%. Business First re-deployed the proceeds into agency securities with an average book yield of 5.17%, locking in higher yields while keeping duration consistent with the overall portfolio weighted average life. The repositioning resulted in a loss of $2.5 million with an estimated earn back of 1.1 years as of December 31, 2023.
Deposits
Deposits increased $58.1 million or 1.12%, 4.44% annualized, for the quarter ended December 31, 2023. Annual deposit growth for fiscal year 2023, was $428.4 million or 8.89%.
During the quarter ended December 31, 2023, noninterest-bearing deposits decreased $113.3 million or 8.02% and interest-bearing deposits increased $171.4 million or 4.54%, compared to the linked quarter, with certificate of deposit (CD) accounts declining $75.3 million or 5.47%. Money market accounts increased $160.3 million or 13.55% from the linked quarter.
Borrowings
Borrowings decreased $7.4 million or 1.16%, from the linked quarter due to a decline in repurchase agreements and repayments on a Federal Home Loan Bank (FHLB) term loan.
Shareholders’ Equity
Accumulated other comprehensive income (AOCI) improved $27.7 million during the fourth quarter due to positive after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $22.58 at December 31, 2023, compared to $21.01 at September 30, 2023, due to continued earnings growth and positive securities fair value adjustments. On a non-GAAP basis, tangible book value per common share increased to $18.62 at December 31, 2023, compared to $17.03 at September 30, 2023.
Results of Operations
Net Interest Income
For the quarter ended December 31, 2023, net interest income totaled $53.8 million, compared to $55.3 million from the linked quarter. Loan and interest-earning asset yields of 6.87% and 6.17%, respectively, increased 3 basis points and 7 basis points, respectively, compared to 6.84% and 6.10% from the linked quarter. Net interest margin and net interest spread were 3.50% and 2.53% compared to 3.61% and 2.68%, respectively, for the linked quarter. The overall cost of funds, which include noninterest-bearing deposits, increased from 2.59% to 2.79% or 20 basis points, from the linked quarter due to higher cost deposits and $30.8 million less in average noninterest bearing deposits.
Non-GAAP net interest income (excluding loan discount accretion of $1.9 million) totaled $51.8 million for the quarter ended December 31, 2023, compared to $52.9 million (excluding loan discount accretion of $2.4 million) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.9 million) were 3.38% and 2.40%, respectively, for the quarter ended December 31, 2023, compared to 3.46% and 2.53% (excluding loan discount accretion of $2.4 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 8 basis points to 6.72% from 6.64%, and interest earnings asset yields increased 11 basis points to 6.05% from 5.94%, compared to the linked quarter.
Provision for Credit Losses
During the quarter ended December 31, 2023, Business First recorded a provision for credit losses of $119,000, compared to $604,000 for the linked quarter. The current quarter’s reserve decreased largely due to adjustments associated with various qualitative factors.
Other Income
For the quarter ended December 31, 2023, other income decreased $3.5 million or 35.11%, compared to the linked quarter. The net decrease was largely attributable to a $2.5 million loss on sale of securities due to Business First’s security repositioning initiative, a $1.0 million loss in equity investment income, and a $919,000 gain related to a branch sale which occurred during the linked quarter, partially offset by $964,000 of back-to-back customer swap fee income which occurred during the quarter.
Other Expenses
For the quarter ended December 31, 2023, other expenses increased by $1.1 million or 2.87%, compared to the linked quarter. The net increase was largely attributable to $654,000 in customer fraud/operational losses within other expense, $490,000 in other real estate owned expenses ($432,000 was related to a former bank premises), and an additional $466,000 in data processing costs compared to the linked quarter, offset by a reduction of $700,000 to the ad valorem shares tax expense.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.88% and 10.54% for the quarter ended December 31, 2023, compared to 1.17% and 14.16%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.03% and 12.27% for the quarter ended December 31, 2023, compared to 1.10% and 13.32%, respectively, for the linked quarter.
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on
Tuesday, January 23, 2024, at 4:30 p.m. Central time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 4061156, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/gctma4g8. The corresponding slide presentation can be assessed the day of the presentation on b1BANK’s 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 $6.6 billion in assets, $6.0 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 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 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.
Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.comBusiness First Bancshares, Inc. Selected Financial Information (Unaudited) Three Months Ended December 31, September 30, December 31, (Dollars in thousands) 2023 2023 2022 Balance Sheet Ratios Loans (HFI) to Deposits 95.12 % 94.79 % 95.56 % Shareholders' Equity to Assets Ratio 9.78 % 9.31 % 9.69 % Loans Receivable Held for Investment (HFI) Commercial (1) $ 1,358,838 $ 1,332,384 $ 1,153,873 Real Estate: Commercial 2,217,928 2,128,855 2,020,406 Construction 669,798 708,835 722,074 Residential 682,394 686,921 656,378 Total Real Estate 3,570,120 3,524,611 3,398,858 Consumer and Other 63,827 63,278 53,445 Total Loans (Held for Investment) $ 4,992,785 $ 4,920,273 $ 4,606,176 Allowance for Loan Losses Balance, Beginning of Period $ 41,129 $ 42,013 $ 35,201 Charge-offs – Quarterly (1,039 ) (2,423 ) (387 ) Recoveries – Quarterly 152 685 313 Provision for Loan Losses – Quarterly 172 854 3,051 Balance, End of Period $ 40,414 $ 41,129 $ 38,178 Allowance for Loan Losses to Total Loans (HFI) 0.81 % 0.84 % 0.83 % Allowance for Credit Losses to Total Loans (HFI) (2) 0.88 % 0.90 % 0.84 % Net Charge-offs (Recoveries) to Average Quarterly Total Loans 0.02 % 0.04 % 0.00 % Remaining Loan Purchase Discount $ 12,286 $ 14,752 $ 27,000 Nonperforming Assets Nonperforming Loans: Nonaccrual Loans (1) $ 16,943 $ 16,029 $ 11,054 Loans Past Due 90 Days or More (1) 127 247 335 Total Nonperforming Loans 17,070 16,276 11,389 Other Nonperforming Assets: Other Real Estate Owned 1,685 1,558 1,372 Other Nonperforming Assets - - 62 Total Other Nonperforming Assets 1,685 1,558 1,434 Total Nonperforming Assets $ 18,755 $ 17,834 $ 12,823 Nonperforming Loans to Total Loans (HFI) 0.34 % 0.33 % 0.25 % Nonperforming Assets to Total Assets 0.28 % 0.27 % 0.21 % (1) 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 was currently accreting interest income over the expected life of the loans for the period ended December 31, 2023, in accordance with ASC 310-30. (2) 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 Year Ended December 31, September 30, December 31, December 31, December 31, (Dollars in thousands, except per share data) 2023 2023 2022 2023 2022 Per Share Data Basic Earnings per Common Share $ 0.58 $ 0.76 $ 0.68 $ 2.62 $ 2.34 Diluted Earnings per Common Share 0.57 0.76 0.67 2.59 2.32 Dividends per Common Share 0.14 0.12 0.12 0.50 0.48 Book Value per Common Share 22.58 21.01 20.25 22.58 20.25 Average Common Shares Outstanding 25,116,688 25,111,548 24,542,120 25,079,106 22,633,478 Average Diluted Common Shares Outstanding 25,333,913 25,288,660 24,757,143 25,296,200 22,817,493 End of Period Common Shares Outstanding 25,351,809 25,344,168 25,110,313 25,351,209 25,110,313 Annualized Performance Ratios Return to Common Shareholders on Average Assets (1) 0.88 % 1.17 % 1.12 % 1.04 % 0.97 % Return to Common Shareholders on Average Common Equity (1) 10.54 % 14.16 % 13.56 % 12.36 % 11.59 % Net Interest Margin (1) 3.50 % 3.61 % 4.06 % 3.62 % 3.92 % Net Interest Spread (1) 2.53 % 2.68 % 3.43 % 2.72 % 3.57 % Efficiency Ratio (2) 63.36 % 59.23 % 59.60 % 61.61 % 65.26 % Total Quarterly/Year-to-Date Average Assets $ 6,494,861 $ 6,474,935 $ 5,899,972 $ 6,341,880 $ 5,473,508 Total Quarterly/Year-to-Date Average Common Equity 544,628 535,211 486,338 530,956 456,388 Other Expenses Salaries and Employee Benefits $ 22,609 $ 22,487 $ 22,205 $ 90,611 $ 85,222 Occupancy and Bank Premises 2,387 2,428 2,285 9,518 9,244 Depreciation and Amortization 1,647 1,690 1,700 6,767 6,853 Data Processing 2,490 2,024 2,201 9,034 8,358 FDIC Assessment Fees 841 779 611 3,645 2,854 Legal and Other Professional Fees 833 766 462 3,173 2,359 Advertising and Promotions 1,052 1,202 1,571 4,628 3,949 Utilities and Communications 700 758 759 2,899 3,193 Ad Valorem Shares Tax 265 965 962 3,160 3,400 Directors' Fees 262 278 270 1,079 972 Other Real Estate Owned Expenses and Write-Downs 504 14 11 687 193 Merger and Conversion-Related Expenses 63 2 138 236 4,808 Other 6,061 5,214 5,171 21,265 18,004 Total Other Expenses $ 39,714 $ 38,607 $ 38,346 $ 156,702 $ 149,409 Other Income Service Charges on Deposit Accounts $ 2,470 $ 2,540 $ 2,265 $ 9,704 $ 8,272 Loss on Sales of Securities (2,503 ) - (2 ) (2,565 ) (48 ) Debit Card and ATM Fee Income 1,793 1,581 1,582 6,590 6,407 Bank-Owned Life Insurance Income 572 604 526 2,247 1,931 Gain on Sales of Loans 546 321 59 1,972 574 Mortgage Origination Income 47 108 105 285 532 Fees and Brokerage Commission 1,710 1,933 1,760 7,247 6,964 Gain on Sales of Other Real Estate Owned 338 85 3 646 33 Loss on Disposal of Other Assets (1 ) (23 ) (1 ) (15 ) (717 ) Gain on Sale of Branch 13 932 - 945 - Gain on Extinguishment of Debt - 517 - 1,458 - Swap Fee Income 964 - - 964 - Pass-Through Income (Loss) from Other Investments (1,028 ) (11 ) 608 1,946 1,347 Other 1,492 1,296 1,373 5,218 4,015 Total Other Income $ 6,413 $ 9,883 $ 8,278 $ 36,642 $ 29,310 (1) Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention. (2) 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) 2023 2023 2022 Assets Cash and Due From Banks $ 226,110 $ 191,461 $ 152,740 Federal Funds Sold 151,134 196,616 15,606 Securities Available for Sale, at Fair Values 879,571 849,704 890,751 Mortgage Loans Held for Sale 835 652 304 Loans and Lease Receivable 4,992,785 4,920,273 4,606,176 Allowance for Loan Losses (40,414 ) (41,129 ) (38,178 ) Net Loans and Lease Receivable 4,952,371 4,879,144 4,567,998 Premises and Equipment, Net 69,480 64,674 63,177 Accrued Interest Receivable 29,916 28,060 25,666 Other Equity Securities 33,942 32,591 37,467 Other Real Estate Owned 1,685 1,558 1,372 Cash Value of Life Insurance 96,478 95,906 91,958 Deferred Taxes, Net 27,323 34,660 31,194 Goodwill 88,391 88,391 88,543 Core Deposit and Customer Intangibles 11,895 12,418 14,042 Other Assets 15,419 12,946 9,642 Total Assets $ 6,584,550 $ 6,488,781 $ 5,990,460 Liabilities Deposits Noninterest-Bearing $ 1,299,090 $ 1,412,406 $ 1,549,381 Interest-Bearing 3,949,700 3,778,317 3,270,964 Total Deposits 5,248,790 5,190,723 4,820,345 Securities Sold Under Agreements to Repurchase 18,885 23,245 20,208 Federal Funds Purchased - - 14,057 Bank Term Funding Program 300,000 300,000 - Federal Home Loan Bank Borrowings 211,198 214,184 410,100 Subordinated Debt 99,990 100,048 110,749 Subordinated Debt - Trust Preferred Securities 5,000 5,000 5,000 Accrued Interest Payable 14,841 11,188 2,092 Other Liabilities 41,587 40,027 27,428 Total Liabilities 5,940,291 5,884,415 5,409,979 Shareholders' Equity Preferred Stock 71,930 71,930 71,930 Common Stock 25,352 25,344 25,110 Additional Paid-In Capital 397,447 396,121 393,690 Retained Earnings 216,115 205,207 163,955 Accumulated Other Comprehensive Loss (66,585 ) (94,236 ) (74,204 ) Total Shareholders' Equity 644,259 604,366 580,481 Total Liabilities and Shareholders' Equity $ 6,584,550 $ 6,488,781 $ 5,990,460
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) 2023 2023 2022 2023 2022 Interest Income: Interest and Fees on Loans $ 85,761 $ 84,575 $ 69,364 $ 323,327 $ 218,032 Interest and Dividends on Securities 5,193 5,053 4,316 20,125 16,503 Interest on Federal Funds Sold and Due From Banks 3,711 3,694 825 9,875 1,579 Total Interest Income 94,665 93,322 74,505 353,327 236,114 Interest Expense: Interest on Deposits 34,190 30,110 13,307 106,908 24,413 Interest on Borrowings 6,715 7,918 5,138 31,290 12,124 Total Interest Expense 40,905 38,028 18,445 138,198 36,537 Net Interest Income 53,760 55,294 56,060 215,129 199,577 Provision for Credit Losses 119 604 3,051 4,483 10,886 Net Interest Income After Provision for Credit Losses 53,641 54,690 53,009 210,646 188,691 Other Income: Service Charges on Deposit Accounts 2,470 2,540 2,265 9,704 8,272 Loss on Sales of Securities (2,503 ) - (2 ) (2,565 ) (48 ) Gain on Sales of Loans 546 321 59 1,972 574 Other Income 5,900 7,022 5,956 27,531 20,512 Total Other Income 6,413 9,883 8,278 36,642 29,310 Other Expenses: Salaries and Employee Benefits 22,609 22,487 22,205 90,611 85,222 Occupancy and Equipment Expense 5,301 5,445 4,918 20,859 19,367 Merger and Conversion-Related Expense 63 2 138 236 4,808 Other Expenses 11,741 10,673 11,085 44,996 40,012 Total Other Expenses 39,714 38,607 38,346 156,702 149,409 Income Before Income Taxes 20,340 25,966 22,941 90,586 68,592 Provision for Income Taxes 4,516 5,511 4,974 19,543 14,337 Net Income 15,824 20,455 17,967 71,043 54,255 Preferred Stock Dividends 1,350 1,351 1,350 5,401 1,350 Net Income Available to Common Shareholders $ 14,474 $ 19,104 $ 16,617 $ 65,642 $ 52,905
Business First Bancshares, Inc. Consolidated Net Interest Margin (Unaudited) Three Months Ended December 31, 2023 September 30, 2023 December 31, 2022 Average Average Average Outstanding Interest Earned / Average Outstanding Interest Earned / Average Outstanding Interest Earned / Average (Dollars in thousands) Balance Interest Paid Yield / Rate Balance Interest Paid Yield / Rate Balance Interest Paid Yield / Rate Assets Interest-Earning Assets: Total Loans $ 4,949,954 $ 85,761 6.87 % $ 4,906,917 $ 84,575 6.84 % $ 4,519,643 $ 69,364 6.09 % Securities 865,372 5,193 2.38 % 885,792 5,053 2.26 % 901,236 4,316 1.90 % Interest-Bearing Deposit in Other Banks 271,004 3,711 5.43 % 278,420 3,694 5.26 % 62,013 825 5.28 % Total Interest-Earning Assets 6,086,330 94,665 6.17 % 6,071,129 93,322 6.10 % 5,482,892 74,505 5.39 % Allowance for Loan Losses (40,996 ) (42,120 ) (35,951 ) Noninterest-Earning Assets 449,527 445,926 453,031 Total Assets $ 6,494,861 $ 94,665 $ 6,474,935 $ 93,322 $ 5,899,972 $ 74,505 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 3,816,474 $ 34,190 3.55 % $ 3,703,682 $ 30,110 3.23 % $ 3,157,513 $ 13,307 1.67 % Subordinated Debt 100,009 1,320 5.24 % 100,400 1,363 5.39 % 110,800 1,363 4.88 % Subordinated Debt - Trust Preferred Securities 5,000 113 8.97 % 5,000 111 8.81 % 5,000 85 6.74 % Bank Term Funding Program 300,000 3,202 4.23 % 300,000 3,422 4.53 % - - 0.00 % Advances from Federal Home Loan Bank (FHLB) 213,280 1,947 3.62 % 284,930 2,875 4.00 % 436,233 3,555 3.23 % First National Bankers Bank Line of Credit - - 0.00 % - - 0.00 % 1,667 30 7.14 % Other Borrowings 20,772 133 2.54 % 23,542 147 2.48 % 25,815 105 1.61 % Total Interest-Bearing Liabilities 4,455,535 40,905 3.64 % 4,417,554 38,028 3.42 % 3,737,028 18,445 1.96 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits $ 1,368,452 $ 1,399,293 $ 1,567,507 Other Liabilities 54,316 50,947 37,138 Total Noninterest-Bearing Liabilities 1,422,768 1,450,240 1,604,645 Shareholders' Equity: Common Shareholders' Equity 544,628 535,211 486,338 Preferred Equity 71,930 71,930 71,961 Total Shareholders' Equity 616,558 607,141 558,299 Total Liabilities and Shareholders' Equity $ 6,494,861 $ 6,474,935 $ 5,899,972 Net Interest Spread 2.53 % 2.68 % 3.43 % Net Interest Income $ 53,760 $ 55,294 $ 56,060 Net Interest Margin 3.50 % 3.61 % 4.06 % Overall Cost of Funds 2.79 % 2.59 % 1.38 % NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention.
Business First Bancshares, Inc. Consolidated Net Interest Margin (Unaudited) Year Ended December 31, 2023 December 31, 2022 Average Average Outstanding Interest Earned / Average Outstanding Interest Earned / Average (Dollars in thousands) Balance Interest Paid Yield / Rate Balance Interest Paid Yield / Rate Assets Interest-Earning Assets: Total Loans $ 4,859,637 $ 323,327 6.65 % $ 4,020,436 $ 218,032 5.42 % Securities 898,771 20,125 2.24 % 956,232 16,503 1.73 % Interest-Bearing Deposit in Other Banks 180,997 9,875 5.46 % 115,016 1,579 1.37 % Total Interest-Earning Assets 5,939,405 353,327 5.95 % 5,091,684 236,114 4.64 % Allowance for Loan Losses (41,665 ) (32,093 ) Noninterest-Earning Assets 444,140 413,917 Total Assets $ 6,341,880 $ 353,327 $ 5,473,508 $ 236,114 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 3,566,216 $ 106,908 3.00 % $ 3,007,882 $ 24,413 0.81 % Subordinated Debt 105,369 5,323 5.05 % 106,054 5,108 4.82 % Subordinated Debt - Trust Preferred Securities 5,000 430 8.60 % 5,000 247 4.94 % Bank Term Funding Program 253,706 11,313 4.46 % - - 0.00 % Advances from Federal Home Loan Bank (FHLB) 329,726 13,702 4.16 % 271,025 6,479 2.39 % First National Bankers Bank Line of Credit - - 0.00 % 2,500 121 4.84 % Other Borrowings 21,825 522 2.39 % 23,197 169 0.73 % Total Interest-Bearing Liabilities 4,281,842 138,198 3.23 % 3,415,658 36,537 1.07 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits 1,412,979 1,539,938 Other Liabilities 44,173 37,533 Total Noninterest-Bearing Liabilities 1,457,152 1,577,471 Shareholders' Equity: Common Shareholders' Equity 530,956 456,388 Preferred Equity 71,930 23,991 Total Shareholders' Equity 602,886 480,379 Total Liabilities and Shareholders' Equity $ 6,341,880 $ 5,473,508 Net Interest Spread 2.72 % 3.57 % Net Interest Income $ 215,129 $ 199,577 Net Interest Margin 3.62 % 3.92 % Overall Cost of Funds 2.43 % 0.74 % NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 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) 2023 2023 2022 2023 2022 Interest Income: Interest income $ 94,665 $ 93,322 $ 74,505 $ 353,327 $ 236,114 Core interest income 94,665 93,322 74,505 353,327 236,114 Interest Expense: Interest expense 40,905 38,028 18,445 138,198 36,537 Core interest expense 40,905 38,028 18,445 138,198 36,537 Provision for Credit Losses:(b) Provision for credit losses 119 604 3,051 4,483 10,886 Core provision expense 119 604 3,051 4,483 10,886 Other Income: Other income 6,413 9,883 8,278 36,642 29,310 Losses on former bank premises and equipment - - - - 717 Losses on sale of securities 2,503 - 2 2,565 48 Insurance reimbursement of storm expenditures - - (422 ) - (687 ) Gain on sale of branch (13 ) (932 ) - (945 ) - Gain on extinguishment of debt - (517 ) - (1,458 ) - Core other income 8,903 8,434 7,858 36,804 29,388 Other Expense: Other expense 39,714 38,607 38,346 156,702 149,409 Acquisition-related expenses (2) (63 ) (2 ) (138 ) (236 ) (5,178 ) Write-down on former bank premises (432 ) (432 ) Occupancy and bank premises - storm repair - - - - (501 ) Core other expense 39,219 38,605 38,208 156,034 143,730 Pre-Tax Income:(a) Pre-tax income 20,340 25,966 22,941 90,586 68,592 Losses on former bank premises and equipment - - - - 717 Losses on sale of securities 2,503 - 2 2,565 48 Insurance reimbursement of storm expenditures - - (422 ) - (687 ) Gain on sale of branch (13 ) (932 ) - (945 ) - Gain on extinguishment of debt - (517 ) - (1,458 ) - Acquisition-related expenses (2) 63 2 138 236 5,178 Write-down on former bank premises 432 432 Occupancy and bank premises - storm repair - - - - 501 Core pre-tax income 23,325 24,519 22,659 91,416 74,349 Provision for Income Taxes:(1) Provision for income taxes 4,516 5,511 4,974 19,543 14,337 Tax on losses on former bank premises and equipment - - - - 151 Tax on losses on sale of securities 529 - - 542 10 Tax on insurance reimbursement of storm expenditures - - (89 ) - (144 ) Tax on gain on sale of branch (3 ) (197 ) - (200 ) - Tax on gain on extinguishment of debt - (109 ) - (308 ) - Tax on acquisition-related expenses (2) 1 - 29 21 942 Tax on write-down on former bank premises 91 91 Tax on occupancy and bank premises - storm repair - - - - 106 Core provision for income taxes 5,134 5,205 4,914 19,689 15,402 Preferred Dividends: Preferred dividends 1,350 1,351 1,350 5,401 1,350 Core preferred dividends 1,350 1,351 1,350 5,401 1,350 Net Income Available to Common Shareholders: Net income available to common shareholders 14,474 19,104 16,617 65,642 52,905 Losses on former bank premises and equipment, net of tax - - - - 566 Losses on sale of securities, net of tax 1,974 - 2 2,023 38 Insurance reimbursement of storm expenditures, net of tax - - (333 ) - (543 ) Gain on sale of branch, net of tax (10 ) (735 ) - (745 ) - Gain on extinguishment of debt, net of tax - (408 ) - (1,150 ) - Acquisition-related expenses (2), net of tax 62 2 109 215 4,236 Write-down on former bank premises, net of tax 341 341 Occupancy and bank premises - storm repair, net of tax - - - - 395 Core net income available to common shareholders $ 16,841 $ 17,963 $ 16,395 $ 66,326 $ 57,597 Pre-tax, pre-provision earnings available to common shareholders (a+b) $ 20,459 $ 26,570 $ 25,992 $ 95,069 $ 79,478 Losses on former bank premises and equipment - - - - 717 Loss on sale of securities 2,503 - 2 2,565 48 Insurance reimbursement of storm expenditures - - (422 ) - (687 ) Gain on sale of branch (13 ) (932 ) - (945 ) - Gain on extinguishment of debt - (517 ) - (1,458 ) - Acquisition-related expenses (2) 63 2 138 236 5,178 Write-down on former premises 432 432 Occupancy and bank premises - storm repair - - - - 501 Core pre-tax, pre-provision earnings $ 23,444 $ 25,123 $ 25,710 $ 95,899 $ 85,235 Average Diluted Common Shares Outstanding 25,333,913 25,288,660 24,757,143 25,296,200 22,817,493 Diluted Earnings Per Common Share: Diluted earnings per common share $ 0.57 $ 0.76 $ 0.67 $ 2.59 $ 2.32 Losses on former bank premises and equipment, net of tax - - - - 0.02 Loss on sale of securities, net of tax 0.08 - - 0.08 - Insurance reimbursement of storm expenditures, net of tax - - (0.01 ) - (0.02 ) Gain on sale of branch, net of tax (0.00 ) (0.03 ) - (0.03 ) - Gain on extinguishment of debt, net of tax - (0.02 ) - (0.04 ) - Acquisition-related expenses (2), net of tax 0.00 - - 0.01 0.18 Write-down on former premises, net of tax 0.01 0.01 Occupancy and bank premises -storm repair, net of tax - - - - 0.02 Core diluted earnings per common share $ 0.66 $ 0.71 $ 0.66 $ 2.62 $ 2.52 Pre-tax, pre-provision profit diluted earnings per common share $ 0.81 $ 1.05 $ 1.05 $ 3.76 $ 3.48 Losses on former bank premises and equipment - - - - 0.03 Loss on sale of securities 0.10 - - 0.10 - Insurance reimbursement of storm expenditures - - (0.02 ) - (0.03 ) Gain on sale of branch (0.00 ) (0.04 ) - (0.04 ) - Gain on extinguishment of debt - (0.02 ) - (0.06 ) - Acquisition-related expenses (2) 0.00 - 0.01 0.01 0.23 Write-down on former premises 0.02 0.02 Occupancy and bank premises - storm repair - - - - 0.03 Core pre-tax, pre-provision diluted earnings per common share $ 0.93 $ 0.99 $ 1.04 $ 3.79 $ 3.74 (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2023 and 2022. 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) December 31, September 30, December 31, (Dollars in thousands, except per share data) 2023 2023 2022 Total Shareholders' (Common) Equity: Total shareholders' equity $ 644,259 $ 604,366 $ 580,481 Preferred stock (71,930 ) (71,930 ) (71,930 ) Total common shareholders' equity 572,329 532,436 508,551 Goodwill (88,391 ) (88,391 ) (88,543 ) Core deposit and customer intangible (11,895 ) (12,418 ) (14,042 ) Total tangible common equity $ 472,043 $ 431,627 $ 405,966 Total Assets: Total assets $ 6,584,550 $ 6,488,781 $ 5,990,460 Goodwill (88,391 ) (88,391 ) (88,543 ) Core deposit and customer intangible (11,895 ) (12,418 ) (14,042 ) Total tangible assets $ 6,484,264 $ 6,387,972 $ 5,887,875 Common shares outstanding 25,351,809 25,344,168 25,110,313 Book value per common share $ 22.58 $ 21.01 $ 20.25 Tangible book value per common share $ 18.62 $ 17.03 $ 16.17 Common equity to total assets 8.69 % 8.21 % 8.49 % Tangible common equity to tangible assets 7.28 % 6.76 % 6.89 %
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) 2023 2023 2022 2023 2022 Total Quarterly Average Assets $ 6,494,861 $ 6,474,935 $ 5,899,972 $ 6,341,880 $ 5,473,508 Total Quarterly Average Common Equity $ 544,628 $ 535,211 $ 486,338 $ 530,956 $ 456,388 Net Income Available to Common Shareholders: Net income available to common shareholders $ 14,474 $ 19,104 $ 16,617 $ 65,642 $ 52,905 Losses on former bank premises and equipment, net of tax - - - - 566 Losses on sale of securities, net of tax 1,974 - 2 2,023 38 Insurance reimbursement of storm expenditures, net of tax - - (333 ) - (543 ) Gain on sale of branch, net of tax (10 ) (735 ) - (745 ) - Gain on extinguishment of debt, net of tax - (408 ) - (1,150 ) - Acquisition-related expenses, net of tax 62 2 109 215 4,236 Write-down on former bank premises, net of tax 341 - - 341 - Occupancy and bank premises - storm repair, net of tax - - - - 395 Core net income available to common shareholders $ 16,841 $ 17,963 $ 16,395 $ 66,326 $ 57,597 Return to common shareholders on average assets (annualized) (2) 0.88 % 1.17 % 1.12 % 1.04 % 0.97 % Core return on average assets (annualized) (2) 1.03 % 1.10 % 1.10 % 1.05 % 1.05 % Return to common shareholders on average common equity (annualized) (2) 10.54 % 14.16 % 13.56 % 12.36 % 11.59 % Core return on average common equity (annualized) (2) 12.27 % 13.32 % 13.37 % 12.49 % 12.62 % Interest Income: Interest income $ 94,665 $ 93,322 $ 74,505 $ 353,327 $ 236,114 Core interest income 94,665 93,322 74,505 353,327 236,114 Interest Expense: Interest expense 40,905 38,028 18,445 138,198 36,537 Core interest expense 40,905 38,028 18,445 138,198 36,537 Other Income: Other income 6,413 9,883 8,278 36,642 29,310 Losses on former bank premises and equipment - - - - 717 Loss on sale of securities 2,503 - 2 2,565 48 Insurance reimbursement of storm expenditures - - (422 ) - (687 ) Gain on sale of branch (13 ) (932 ) - (945 ) - Gain on extinguishment of debt - (517 ) - (1,458 ) - Core other income 8,903 8,434 7,858 36,804 29,388 Other Expense: Other expense 39,714 38,607 38,346 156,702 149,409 Acquisition-related expenses (63 ) (2 ) (138 ) (236 ) (5,178 ) Write-down on former bank premises (432 ) - - (432 ) - Occupancy and bank premises - storm repair - - - - (501 ) Core other expense $ 39,219 $ 38,605 $ 38,208 $ 156,034 $ 143,730 Efficiency Ratio: Other expense (a) $ 39,714 $ 38,607 $ 38,346 $ 156,702 $ 149,409 Core other expense (c) $ 39,219 $ 38,605 $ 38,208 $ 156,034 $ 143,730 Net interest and other income (1) (b) $ 62,676 $ 65,177 $ 64,340 $ 254,336 $ 228,935 Core net interest and other income (1) (d) $ 62,663 $ 63,728 $ 63,918 $ 251,933 $ 228,965 Efficiency ratio (a/b) 63.36 % 59.23 % 59.60 % 61.61 % 65.26 % Core efficiency ratio (c/d) 62.59 % 60.58 % 59.78 % 61.93 % 62.77 % Total Average Interest-Earnings Assets $ 6,086,330 $ 6,071,129 $ 5,482,892 $ 5,939,405 $ 5,091,684 Net Interest Income: Net interest income $ 53,760 $ 55,294 $ 56,060 $ 215,129 $ 199,577 Loan discount accretion (1,921 ) (2,419 ) (4,212 ) (9,311 ) (9,432 ) Net interest income excluding loan discount accretion $ 51,839 $ 52,875 $ 51,848 $ 205,818 $ 190,145 Net interest margin (2) 3.50 % 3.61 % 4.06 % 3.62 % 3.92 % Net interest margin excluding loan discount accretion (2) 3.38 % 3.46 % 3.75 % 3.47 % 3.73 % Net interest spread (2) 2.53 % 2.68 % 3.43 % 2.72 % 3.57 % Net interest spread excluding loan discount accretion (2) 2.40 % 2.53 % 3.13 % 2.56 % 3.38 % (1) Excludes gains/losses on sales of securities. (2) Calculated utilizing an Actual/365 day count convention.
