• Business First Bancshares, Inc., Announces Financial Results for Q2 2022

    Source: Nasdaq GlobeNewswire / 26 Jul 2022 15:01:01   America/Chicago

    BATON ROUGE, La., July 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 June 30, 2022, including net income of $13.8 million or $0.61 per diluted share, increases of $5.0 million and $0.20, respectively, from the quarter ended March 31, 2022. On a non-GAAP basis, core net income for the quarter ended June 30, 2022, which excludes certain income and expenses, was $14.6 million or $0.64 per diluted share, increases of $4.3 million and $0.15, respectively, from the quarter ended March 31, 2022.

    ”Our second quarter results demonstrate strengthening returns on investments our team has made over the past few years,” said Jude Melville, president and CEO. “Strong and diversified organic growth across our footprint, positive momentum towards integration of our recent Houston partnership, and a continued prioritized focus on asset quality combined to produce record levels of performance and profitability. We are monitoring developments in the broader economy but feel confident we are well positioned to continue executing on our strategic plan while also supporting our clients and partners as they do the same.”

    On July 26, 2022, Business First’s board of directors declared a quarterly dividend based upon financial performance for the second quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of August 15, 2022. The dividend will be paid on August 31, 2022, or as soon thereafter as practicable.

    Quarterly Highlights

    • Strong Loan Growth. Total loans held for investment at June 30, 2022, were $4.1 billion, an increase of $365.2 million compared to March 31, 2022, or 9.74% for the quarter. Based on unpaid principal balances, 37.1% of loan growth for the quarter ended June 30, 2022, was attributable to our Dallas, Texas market, 29.0% to the New Orleans market, and 26.4% to the northern Louisiana market (largely attributable to agricultural lending). As of June 30, 2022, approximately 32% of Business First’s loan portfolio resides in Texas based on unpaid principal balances.
    • Expansion of Net Interest Margin. For the quarter ended June 30, 2022, net interest income totaled $49.6 million and net interest margin and net interest spread were 3.98% and 3.79%, respectively, compared to $40.5 million, 3.51% and 3.35% for the quarter ended March 31, 2022. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.6 million) were 3.77% and 3.59%, respectively, for the quarter ended June 30, 2022, compared to 3.43% and 3.27% (excluding loan discount accretion of $920,000) for the quarter ended March 31, 2022. Non-GAAP net interest margin and spread rose due to the recent increase in interest rates.
    • Solid Return on Assets and Equity. Return on average assets and equity, each on an annualized basis, were 1.02% and 12.22%, respectively, for the quarter ended June 30, 2022, compared to 0.71% and 7.83%, respectively, for the quarter ended March 31, 2022.
    • Overall Credit Quality Remains Stable. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets increased from 0.29% and 0.23%, respectively, at March 31, 2022, to 0.42% and 0.33% at June 30, 2022. This change is largely due to a to a single nonfarm nonresidential commercial loan with an outstanding balance of $6.3 million being transferred to nonaccrual at the beginning of the second quarter. This occurred because of a delay in the hurricane-related insurance settlement process. The insurance proceeds were received in July 2022 and the loan was repaid in full. This loan negatively impacted our nonperforming loans to total loans held for investment ratio by 16 basis points and our nonperforming assets to total assets ratio by 12 basis points.

    Financial Condition

    June 30, 2022, Compared to March 31, 2022

    Loans

    Loans held for investment increased $365.2 million or 9.74% for the quarter ended June 30, 2022.

    Credit Quality

    Nonperforming loans as a percentage of total loans held for investment increased from 0.29% as of March 31, 2022, to 0.42% as of June 30, 2022. Nonperforming assets as a percentage of total assets increased from 0.23% as of March 31, 2022, to 0.33% as of June 30, 2022. The increases were largely attributable to a single nonfarm nonresidential commercial loan with an outstanding balance of $6.3 million, which was paid in full in July 2022.

    Total Shareholders’ Equity

    Book value per common share was $19.73 at June 30, 2022, compared to $20.25 at March 31, 2022. The decrease was largely attributable to the $23.0 million decrease in accumulated other comprehensive income (loss) related to unrealized losses on Business First’s available for sale investment portfolio.

    On a non-GAAP basis, tangible book value per share was $15.13 at June 30, 2022, compared to $15.57 at March 31, 2022.

    June 30, 2022, Compared to June 30, 2021

    Loans

    Total loans held for investment increased by $1.3 billion or 44.09% compared to June 30, 2021. Excluding loans acquired from Texas Citizens on March 1, 2022, loans increased $912.5 million or 31.96%.

    Credit Quality

    Nonperforming loans as a percentage of total loans held for investment increased from 0.40% as of June 30, 2021, to 0.42% as of June 30, 2022, largely due to the increase in nonaccrual loans, attributable to a single nonfarm nonresidential commercial loan with an outstanding balance of $6.3 million, which was paid in full in July 2022. Nonperforming assets as a percentage of total assets decreased from 0.42% as of June 30, 2021, to 0.33% as of June 30, 2022, largely due to the increase in total assets.

    Total Shareholders’ Equity

    Book value per common share was $19.73 at June 30, 2022, compared to $20.78 at June 30, 2021. On a non-GAAP basis, tangible book value per share was $15.13 at June 30, 2022, compared to $17.24 at June 30, 2021. Tangible book value per share was negatively impacted by a decrease in accumulated other comprehensive income (loss) of $69.6 million attributable to fair value adjustments on Business First’s available for sale investment portfolio.

    Results of Operations

    Second Quarter 2022 Compared to First Quarter 2022

    Net Income and Diluted Earnings Per Share

    For the quarter ended June 30, 2022, net income was $13.8 million, or $0.61 per diluted share, compared to net income of $8.7 million or $0.41 per diluted share, for the quarter ended March 31, 2022, increases of $5.0 million and $0.20, respectively. The increases were largely attributable to an increase in net interest income of $9.1 million (partially attributable to a full quarter of the Texas Citizens acquisition), offset by increases of $1.3 million in provision for loan losses and $2.7 million in other expenses.

    On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2022, was $14.6 million or $0.64 per diluted share, compared to core net income of $10.3 million or $0.49 per diluted share, for the quarter ended March 31, 2022. Notable noncore events impacting earnings for the quarter ended June 30, 2022, included $708,000 of acquisition-related expenses, and $270,000 of expenses attributable to storm repairs, compared to $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 storm repairs, for the quarter ended March 31, 2022.

    Interest Income

    For the quarter ended June 30, 2022, net interest income totaled $49.6 million and net interest margin and net interest spread were 3.98% and 3.79%, respectively, compared to $40.5 million, 3.51% and 3.35% for the quarter ended March 31, 2022. The average yield on total interest-earning assets was 4.33% for the quarter ended June 30, 2022, compared to 3.83% for the quarter ended March 31, 2022. The average yield on the loan portfolio (excluding Small Business Administration (SBA) Paycheck Protection Program (PPP) loans) was 5.10% for the quarter ended June 30, 2022, compared to 4.75% for the quarter ended March 31, 2022. The increases were largely attributable to loan growth and interest rate increases, as well as an increase of $1.7 million in loan discount accretion for the quarter ended June 30, 2022.

    Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.6 million) were 3.77% and 3.59%, respectively, for the quarter ended June 30, 2022, compared to 3.43% and 3.27% (excluding loan discount accretion of $920,000) for the quarter ended March 31, 2022.

    Interest Expense

    For the quarter ended June 30, 2022, overall cost of funds (which includes noninterest-bearing deposits) increased by three basis points, from 0.33% to 0.36%, compared to the quarter ended March 31, 2022, due to increased rates and growth on interest-bearing deposits.

    Other Income

    For the quarter ended June 30, 2022, other income increased by $1.1 million compared to the quarter ended March 31, 2022. The increase was largely attributable to a $717,000 loss on disposal of other assets which occurred during the quarter ended March 31, 2022.

    Other Expenses

    For the quarter ended June 30, 2022, other expense increased by $2.7 million compared to the quarter ended March 31, 2022. The increase was largely attributable to increases in salaries and benefits of $1.7 million, mostly due to excess bonus payments of $463,000 and $1.1 million in salaries of two additional months of increased headcount as a result of the Texas Citizens acquisition compared to the quarter ended March 31, 2022.

    Provision for Loan Losses

    During the quarter ended June 30, 2022, Business First recorded a provision for loan losses of $2.9 million, compared to $1.6 million for the quarter ended March 31, 2022. The reserve for the quarter ended June 30, 2022, was driven primarily by new loan growth.

    Return on Assets and Equity

    Return on average assets and equity, each on an annualized basis, were 1.02% and 12.22%, respectively, for the quarter ended June 30, 2022, compared to 0.71% and 7.83%, respectively, for the quarter ended March 31, 2022.

    Second Quarter 2022 Compared to Second Quarter 2021

    Net Income and Diluted Earnings Per Share

    For the quarter ended June 30, 2022, net income was $13.8 million or $0.61 per diluted share, compared to net income of $17.4 million or $0.84 per diluted share, for the quarter ended June 30, 2021. Although net interest income increased by $11.6 million (partially attributed to the larger balance sheet resulting from the Texas Citizens acquisition and the inclusion of only two months of the larger balance sheet as a result of the Pedestal transaction on May 1, 2021), this was offset by the $10.0 million gain on sale during the quarter ended June 30, 2021 (mainly attributable to the SBA PPP portfolio loan sale) and the $4.7 million increase in salaries and benefits, during the quarter ended June 30, 2022 (largely attributable to the acquisition of Texas Citizens on March 1, 2022, and additional staffing, mostly production, over the past year).

    On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2022, was $14.6 million or $0.64 per diluted share, compared to core net income of $18.7 million or $0.90 per diluted share, for the quarter ended June 30, 2021. Notable noncore events impacting earnings for the quarter ended June 30, 2022, included $708,000 of expenses attributable to acquisition-related expenses, and $270,000 of expenses attributable to storm repairs, compared to $938,000 in occupancy and bank premises expenses attributable to storm damage and $540,000 losses on sales of former premises and equipment within other income for the quarter ended June 30, 2021.

    Interest Income

    For the quarter ended June 30, 2022, net interest income totaled $49.6 million and net interest margin and net interest spread were 3.98% and 3.79%, respectively, compared to $37.9 million, 3.87% and 3.68% for the quarter ended June 30, 2021. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.10% for the quarter ended June 30, 2022, compared to 5.13% for the quarter ended June 30, 2021. The quarter ended June 30, 2022, included additional loan discount accretion of $1.0 million, while the quarter ended June 30, 2021, included $3.0 million additional interest income related to SBA PPP loans.

    Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.6 million) were 3.77% and 3.59%, respectively, for the quarter ended June 30, 2022, compared to 3.71% and 3.52% (excluding loan discount accretion of $1.6 million) for the quarter ended June 30, 2021.

    Interest Expense

    For the quarter ended June 30, 2022, overall cost of funds (which includes noninterest-bearing deposits) decreased by nine basis points, from 0.45% to 0.36%, compared to the quarter ended June 30, 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 average subordinated debt balances.

    Other Income

    For the quarter ended June 30, 2022, the decrease in other income of $10.1 million, compared to the quarter ended June 30, 2021, was attributable to the $10.0 million gain on sale, largely related to the SBA PPP loan portfolio sale which occurred during the quarter ended June 30, 2021.

    Other Expenses

    For the quarter ended June 30, 2022, the increase in other expense of $5.5 million compared to the quarter ended March 31, 2021 was largely attributable to the $4.7 million increase in salaries and benefits mainly associated with the acquisition of Texas Citizens on March 1, 2022, and additional production staffing which occurred over the past year.

    Provision for Loan Losses

    During the quarter ended June 30, 2022, Business First recorded a provision for loan losses of $2.9 million compared to $2.2 million for the quarter ended June 30, 2021. The reserve for the quarter ended June 30, 2021, was affected by the impact of the COVID-19 pandemic on the qualitative factors at the time, while the reserve for the quarter ended June 30, 2022, was impacted due to new loan growth.

    Return on Assets and Equity

    Return on average assets and return on average equity, each on an annualized basis, were 1.02% and 12.22%, respectively, for the quarter ended June 30, 2022, from 1.58% and 16.57%, respectively, for the quarter ended June 30, 2021.

    About Business First Bancshares, Inc.

    Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $5.5 billion in assets, $6.2 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 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.


    Business First Bancshares, Inc.  
    Selected Financial Information  
    (Unaudited)  
     For the Quarter Ended  
     June 30,March 31,June 30,  
    (Dollars in thousands) 2022  2022  2021   
          
    Balance Sheet Ratios     
          
    Loans (HFI) to Deposits 88.31% 80.48% 76.66%  
    Shareholders' Equity to Assets Ratio 8.05% 8.52% 9.97%  
          
    Loans Receivable Held for Investment (HFI)     
          
    Commercial (1)$949,631 $817,093 $660,691   
    Real Estate:     
    Construction and Land 642,260  581,661  454,055   
    Farmland 174,723  149,270  77,133   
    1-4 Family Residential 521,747  485,067  459,037   
    Multi-Family Residential 97,901  109,773  89,796   
    Nonfarm Nonresidential 1,605,691  1,481,046  1,002,707   
    Total Real Estate 3,042,322  2,806,817  2,082,728   
    Consumer and Other 121,773  124,588  111,467   
    Total Loans (Held for Investment)$4,113,726 $3,748,498 $2,854,886   
          
    Allowance for Loan Losses     
          
    Balance, Beginning of Period$29,245 $29,112 $25,251   
    Charge-offs – Quarterly (99) (1,668) (861)  
    Recoveries – Quarterly 226  184  71   
    Provision for Loan Losses – Quarterly 2,945  1,617  2,241   
    Balance, End of Period$32,317 $29,245 $26,702   
          
    Allowance for Loan Losses to Total Loans (HFI) 0.79% 0.78% 0.94%  
    Net Charge-offs to Average Total Loans 0.00% 0.04% 0.03%  
          
    Remaining Loan Purchase Discount$37,903 $40,623 $30,900   
          
    Nonperforming Assets     
          
    Nonperforming Loans:     
    Nonaccrual Loans (2)$16,777 $10,784 $10,568   
    Loans Past Due 90 Days or More (2) 324  26  893   
    Total Nonperforming Loans 17,101  10,810  11,461   
    Other Nonperforming Assets:     
    Other Real Estate Owned 990  1,369  5,890   
    Other Nonperforming Assets 84  84  665   
    Total Other Nonperforming Assets 1,074  1,453  6,555   
    Total Nonperforming Assets$18,175 $12,263 $18,016   
          
    Nonperforming Loans to Total Loans (HFI) 0.42% 0.29% 0.40%  
    Nonperforming Assets to Total Assets 0.33% 0.23% 0.42%  
          
    (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $3.2 million 
    of the commercial portfolio as of June 30, 2022.     
    SBA PPP loans accounted for $6.0 million of the commercial portfolio as of March 31, 2022.  
    SBA PPP loans accounted for $25.7 million of the commercial portfolio as of June 30, 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 Six Months Ended 
     June 30,March 31,June 30, June 30,June 30, 
    (Dollars in thousands, except per share data) 2022  2022  2021   2022  2021  
            
    Per Share Data       
            
    Basic Earnings per Common Share$0.61 $0.42 $0.84  $1.03 $1.44  
    Diluted Earnings per Common Share 0.61  0.41  0.84   1.03  1.43  
    Dividends per Common Share 0.12  0.12  0.12   0.24  0.22  
    Book Value per Common Share 19.73  20.25  20.78   19.73  20.78  
            
            
    Average Common Shares Outstanding 22,459,603  21,019,716  20,707,313   21,746,793  20,664,857  
    Average Diluted Shares Outstanding 22,656,174  21,162,482  20,827,786   21,916,641  20,783,135  
    End of Period Common Shares Outstanding 22,579,451  22,564,607  20,740,759   22,579,451  20,740,759  
            
            
    Annualized Performance Ratios       
            
    Return on Average Assets 1.02% 0.71% 1.58%  0.87% 1.37% 
    Return on Average Equity 12.22% 7.83% 16.57%  10.03% 14.23% 
    Net Interest Margin 3.98% 3.51% 3.87%  3.75% 4.05% 
    Net Interest Spread 3.79% 3.35% 3.68%  3.58% 3.87% 
    Efficiency Ratio (1) 64.32% 72.67% 56.03%  68.08% 57.45% 
            
    Total Quarterly Average Assets$5,371,639 $4,920,105 $4,399,911  $5,145,872 $4,338,170  
    Total Quarterly Average Equity 450,431  446,003  420,640   448,216  418,267  
            
    Other Expenses       
            
    Salaries and Employee Benefits$21,408 $19,703 $16,753  $41,111 $31,679  
    Occupancy and Bank Premises 2,422  2,052  2,276   4,474  4,087  
    Depreciation and Amortization 1,734  1,569  1,475   3,303  2,833  
    Data Processing 1,886  2,116  2,288   4,002  4,111  
    FDIC Assessment Fees 661  743  436   1,404  945  
    Legal and Other Professional Fees 735  543  905   1,278  1,646  
    Advertising and Promotions 703  531  624   1,234  1,101  
    Utilities and Communications 822  779  636   1,601  1,211  
    Ad Valorem Shares Tax 812  813  675   1,625  1,375  
    Directors' Fees 212  202  194   414  382  
    Other Real Estate Owned Expenses and Write-Downs 35  14  178   49  557  
    Merger and Conversion-Related Expenses 615  811  94   1,426  104  
    Other 4,352  3,844  4,371   8,196  7,602  
    Total Other Expenses$36,397 $33,720 $30,905  $70,117 $57,633  
            
    Other Income       
            
    Service Charges on Deposit Accounts$2,086 $1,805 $1,683  $3,891 $3,250  
    Losses on Sales of Securities (8) (31) (50)  (39) (55) 
    Debit Card and ATM Fee Income 1,657  1,501  1,777   3,158  3,113  
    Bank-Owned Life Insurance Income 475  369  355   844  673  
    Gain on Sales of Loans 186  65  10,042   251  10,021  
    Mortgage Origination Income 161  209  241   370  470  
    Fees and Brokerage Commission 1,749  1,835  1,416   3,584  1,959  
    Gain (Loss) on Sales of Other Real Estate Owned 10  8  (575)  18  (529) 
    Gain (Loss) on Disposal of Other Assets -  (717) (9)  (717) 108  
    Pass-Through Income from SBIC Partnerships 52  115  1,602   167  1,655  
    Other 653  737  683   1,390  1,348  
    Total Other Income$7,021 $5,896 $17,165  $12,917 $22,013  
            
    (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) 
         
     June 30,March 31,June 30, 
    (Dollars in thousands) 2022  2022  2021  
         
    Assets    
         
    Cash and Due From Banks$154,694 $282,074 $130,769  
    Federal Funds Sold 10,817  67,822  232,391  
    Securities Available for Sale, at Fair Values 934,676  961,358  882,802  
    Loans Held for Sale -  13,559  -  
    Mortgage Loans Held for Sale 170  1,354  1,834  
    Loans and Lease Receivable 4,113,726  3,748,498  2,854,886  
    Allowance for Loan Losses (32,317) (29,245) (26,702) 
    Net Loans and Lease Receivable 4,081,409  3,719,253  2,828,184  
    Premises and Equipment, Net 64,307  63,003  57,576  
    Accrued Interest Receivable 22,142  20,146  20,841  
    Other Equity Securities 30,302  23,034  14,043  
    Other Real Estate Owned 990  1,369  5,890  
    Cash Value of Life Insurance 88,370  72,896  60,703  
    Deferred Taxes, Net 29,576  23,040  4,652  
    Goodwill 88,842  89,911  60,062  
    Core Deposit and Customer Intangibles 15,093  15,617  13,271  
    Other Assets 8,995  7,799  10,941  
         
    Total Assets$5,530,383 $5,362,235 $4,323,959  
         
         
    Liabilities    
         
    Deposits    
    Noninterest-Bearing$1,698,114 $1,544,197 $1,175,624  
    Interest-Bearing 2,960,049  3,113,541  2,548,599  
    Total Deposits 4,658,163  4,657,738  3,724,223  
         
    Securities Sold Under Agreements to Repurchase 18,477  23,345  25,837  
    Short-Term Borrowings 5,020  20  20  
    Subordinated Debt 111,055  111,209  81,427  
    Subordinated Debt - Trust Preferred Securities 5,000  5,000  5,000  
    Federal Home Loan Bank Borrowings 254,011  79,957  28,023  
    Accrued Interest Payable 708  895  1,938  
    Other Liabilities 32,490  27,234  26,485  
         
    Total Liabilities 5,084,924  4,905,398  3,892,953  
         
    Shareholders' Equity    
         
    Common Stock 22,579  22,565  20,741  
    Additional Paid-In Capital 346,382  345,858  299,014  
    Retained Earnings 139,232  128,168  104,382  
    Accumulated Other Comprehensive Income (Loss) (62,734) (39,754) 6,869  
         
    Total Shareholders' Equity 445,459  456,837  431,006  
         
    Total Liabilities and Shareholders' Equity$5,530,383 $5,362,235 $4,323,959  


    Business First Bancshares, Inc. 
    Consolidated Statements of Income 
    (Unaudited) 
            
      Three Months Ended Six Months Ended 
     June 30,March 31,June 30, June 30,June 30, 
    (Dollars in thousands) 2022  2022  2021   2022  2021  
            
    Interest Income:       
    Interest and Fees on Loans$49,639 $40,183 $39,135  $89,822 $80,554  
    Interest and Dividends on Securities 4,143  3,844  3,189   7,987  5,991  
    Interest on Federal Funds Sold and Due From Banks 232  95  27   327  68  
    Total Interest Income 54,014  44,122  42,351   98,136  86,613  
            
    Interest Expense:       
    Interest on Deposits 2,557  2,263  3,235   4,820  6,478  
    Interest on Borrowings 1,895  1,384  1,171   3,279  1,889  
    Total Interest Expense 4,452  3,647  4,406   8,099  8,367  
            
    Net Interest Income 49,562  40,475  37,945   90,037  78,246  
            
    Provision for Loan Losses: 2,945  1,617  2,241   4,562  5,600  
            
    Net Interest Income After Provision for Loan Losses 46,617  38,858  35,704   85,475  72,646  
            
    Other Income:       
    Service Charges on Deposit Accounts 2,086  1,805  1,683   3,891  3,250  
    Gain (Loss) on Sales of Securities (8) (31) (50)  (39) (55) 
    Gain on Sales of Loans 186  65  10,042   251  10,021  
    Other Income 4,757  4,057  5,490   8,814  8,797  
    Total Other Income 7,021  5,896  17,165   12,917  22,013  
            
    Other Expenses:       
    Salaries and Employee Benefits 21,408  19,703  16,753   41,111  31,679  
    Occupancy and Equipment Expense 4,914  4,413  4,264   9,327  7,981  
    Merger and Conversion-Related Expense 615  811  94   1,426  104  
    Other Expenses 9,460  8,793  9,794   18,253  17,869  
    Total Other Expenses 36,397  33,720  30,905   70,117  57,633  
            
    Income Before Income Taxes: 17,241  11,034  21,964   28,275  37,026  
            
    Provision for Income Taxes: 3,484  2,303  4,536   5,787  7,269  
            
    Net Income:$13,757 $8,731 $17,428  $22,488 $29,757  


    Business First Bancshares, Inc. 
    Consolidated Net Interest Margin 
    (Unaudited) 
                 
                 
     Three Months Ended 
     June 30, 2022 March 31, 2022 June 30, 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)$3,890,470 $49,6285.10% $3,382,325 $40,1744.75% $2,814,593 $36,1165.13% 
    SBA PPP Loans 4,429  111.00%  3,725  91.00%  242,015  3,0194.99% 
    Securities 966,960  4,1431.71%  1,005,252  3,8441.53%  801,268  3,1891.59% 
    Interest-Bearing Deposit in Other Banks 122,175  2320.76%  221,148  950.17%  62,693  270.17% 
    Total Interest-Earning Assets 4,984,034  54,0144.33%  4,612,450  44,1223.83%  3,920,569  42,3514.32% 
    Allowance for Loan Losses (29,945)    (29,260)    (26,032)   
    Noninterest-Earning Assets 417,550     336,915     505,374    
    Total Assets$5,371,639 $54,014  $4,920,105 $44,122  $4,399,911 $42,351  
                 
                 
    Liabilities and Shareholders' Equity            
                 
    Interest-Bearing Liabilities:            
    Interest-Bearing Deposits$2,981,613 $2,5570.34% $2,882,838 $2,2630.31% $2,615,241 $3,2350.49% 
    Subordinated Debt 111,107  1,3004.68%  91,354  1,1154.88%  81,427  1,0154.99% 
    Subordinated Debt - Trust Preferred Securities 5,000  524.16%  5,000  423.36%  5,000  433.44% 
    Advances from Federal Home Loan Bank (FHLB) 171,224  5061.18%  80,375  2231.11%  32,887  1081.31% 
    Other Borrowings 28,260  370.52%  19,666  40.08%  24,909  50.08% 
    Total Interest-Bearing Liabilities 3,297,204  4,4520.54%  3,079,233  3,6470.47%  2,759,464  4,4060.64% 
                 
    Noninterest-Bearing Liabilities:            
    Noninterest-Bearing Deposits$1,596,174    $1,370,015    $1,191,900    
    Other Liabilities 27,830     24,854     27,907    
    Total Noninterest-Bearing Liabilities 1,624,004     1,394,869     1,219,807    
    Shareholders' Equity 450,431     446,003     420,640    
    Total Liabilities and Shareholders' Equity$5,371,639    $4,920,105    $4,399,911    
                 
    Net Interest Spread  3.79%   3.35%   3.68% 
    Net Interest Income $49,562   $40,475   $37,945  
    Net Interest Margin  3.98%   3.51%   3.87% 
                 
    Overall Cost of Funds  0.36%` 0.33%   0.45% 
                 
    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)   
               
               
     Six Months Ended   
     June 30, 2022  June 30, 2021  
     Average    Average    
     OutstandingInterest Earned /Average  OutstandingInterest Earned /Average  
    (Dollars in thousands)BalanceInterest PaidYield / Rate  BalanceInterest PaidYield / Rate  
               
    Assets          
               
    Interest-Earning Assets:          
    Total Loans (Excluding SBA PPP)$3,636,393$89,8024.94% $2,729,130$72,6545.32% 
    SBA PPP Loans4,077201.00% 308,4877,9005.12% 
    Securities986,1077,9871.62% 746,3725,9911.61% 
    Interest-Bearing Deposit in Other Banks171,6623270.38% 81,963680.17% 
    Total Interest-Earning Assets4,798,23998,1364.09% 3,865,95286,6134.48% 
    Allowance for Loan Losses(29,602)    (24,371)    
    Noninterest-Earning Assets377,235    496,589    
    Total Assets$5,145,872$98,136   $4,338,170$86,613   
               
               
    Liabilities and Shareholders' Equity          
               
    Interest-Bearing Liabilities:          
    Interest-Bearing Deposits$2,932,228$4,8200.33% $2,599,751$6,4780.50% 
    Subordinated Debt101,2312,4154.77% 54,9391,4745.37% 
    Subordinated Debt - Trust Preferred Securities5,000943.76% 5,000853.40% 
    Advances from Federal Home Loan Bank (FHLB)125,8007291.16% 34,9542191.25% 
    Other Borrowings23,964410.34% 28,3021110.78% 
    Total Interest-Bearing Liabilities3,188,2238,0990.51% 2,722,9468,3670.61% 
               
    Noninterest-Bearing Liabilities:          
    Noninterest-Bearing Deposits1,483,095    1,169,425    
    Other Liabilities26,338    27,532    
    Total Noninterest-Bearing Liabilities1,509,433    1,196,957    
    Shareholders' Equity448,216    418,267    
    Total Liabilities and Shareholders' Equity$5,145,872    $4,338,170    
               
    Net Interest Spread  3.58%   3.87% 
    Net Interest Income $90,037    $78,246   
    Net Interest Margin  3.75%   4.05% 
               
    Overall Cost of Funds  0.35%   0.43% 
               
    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 Six Months Ended  
     June 30,March 31,June 30, June 30,June 30,  
    (Dollars in thousands, except per share data) 2022  2022  2021   2022  2021   
             
    Interest Income:        
    Interest income$54,014 $44,122 $42,351  $98,136 $86,613   
    Core interest income 54,014  44,122  42,351   98,136  86,613   
    Interest Expense:        
    Interest expense 4,452  3,647  4,406   8,099  8,367   
    Core interest expense 4,452  3,647  4,406   8,099  8,367   
    Provision for Loan Losses: (b)        
    Provision for loan losses 2,945  1,617  2,241   4,562  5,600   
    Core provision expense 2,945  1,617  2,241   4,562  5,600   
    Other Income:        
    Other income 7,021  5,896  17,165   12,917  22,013   
    Losses on former bank premises and equipment -  717  540   717  540   
    Losses on sale of securities 8  31  50   39  55   
    Core other income 7,029  6,644  17,755   13,673  22,608   
    Other Expense:        
    Other expense 36,397  33,720  30,905   70,117  57,633   
    Acquisition-related expenses (2) (708) (811) (94)  (1,519) (104)  
    Occupancy and bank premises - storm repair (270) (231) (938)  (501) (1,288)  
    Core other expense 35,419  32,678  29,873   68,097  56,241   
    Pre-Tax Income: (a)        
    Pre-tax income 17,241  11,034  21,964   28,275  37,026   
    Losses on former bank premises and equipment -  717  540   717  540   
    Losses on sale of securities 8  31  50   39  55   
    Acquisition-related expenses (2) 708  811  94   1,519  104   
    Occupancy and bank premises - storm repair 270  231  938   501  1,288   
    Core pre-tax income 18,227  12,824  23,586   31,051  39,013   
    Provision for Income Taxes: (1)        
    Provision for income taxes 3,484  2,303  4,536   5,787  7,269   
    Tax on losses on former bank premises and equipment -  151  113   151  113   
    Tax on losses on sale of securities 2  7  11   9  12   
    Tax on acquisition-related expenses (2) 126  48  20   174  22   
    Tax on occupancy and bank premises - storm repair 57  49  197   106  271   
    Core provision for income taxes 3,669  2,558  4,877   6,227  7,687   
    Net Income:        
    Net income 13,757  8,731  17,428   22,488  29,757   
    Losses on former bank premises and equipment, net of tax -  566  427   566  427   
    Losses on sale of securities, net of tax 6  24  39   30  43   
    Acquisition-related expenses (2), net of tax 582  763  74   1,345  82   
    Occupancy and bank premises - storm repair, net of tax 213  182  741   395  1,018   
    Core net income$14,558 $10,266 $18,709  $24,824 $31,327   
             
    Pre-tax, pre-provision earnings (a+b)$20,186 $12,651 $24,205  $32,837  42,626   
    Losses on former bank premises and equipment -  717  540   717  540   
    Losses on sale of securities 8  31  50   39  55   
    Acquisition-related expenses (2) 708  811  94   1,519  104   
    Occupancy and bank premises - storm repair 270  231  938   501  1,288   
    Core pre-tax, pre-provision earnings$21,172 $14,441 $25,827  $35,613 $44,613   
             
    Average Diluted Shares Outstanding 22,656,174  21,162,482  20,827,786   21,916,641  20,783,135   
             
    Diluted Earnings Per Share:        
    Diluted earnings per share$0.61 $0.41 $0.84  $1.03 $1.43   
    Losses on former bank premises and equipment, net of tax -  0.03  0.02   0.03  0.02   
    Losses on sale of securities, net of tax 0.00  0.00  0.00   0.00  0.00   
    Acquisition-related expenses (2), net of tax 0.02  0.04  0.00   0.06  0.00   
    Occupancy and bank premises -storm repair, net of tax 0.01  0.01  0.04   0.02  0.06   
    Core diluted earnings per share$0.64 $0.49 $0.90  $1.14 $1.51   
             
    Pre-tax, pre-provision profit diluted earnings per share$0.89 $0.60 $1.16  $1.50 $2.05   
    Losses on former bank premises and equipment -  0.03  0.03   0.03  0.03   
    Losses on sale of securities 0.00  0.00  0.00   0.00  0.00   
    Acquisition-related expenses (2) 0.03  0.04  0.00   0.07  0.01   
    Occupancy and bank premises - storm repair 0.01  0.01  0.05   0.02  0.06   
    Core pre-tax, pre-provision diluted earnings per share$0.93 $0.68 $1.24  $1.62 $2.15   
             
    (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 Six Months Ended 
     June 30,March 31,June 30, June 30,June 30, 
    (Dollars in thousands, except per share data) 2022  2022  2021   2022  2021  
            
            
    Total Quarterly Average Assets$5,371,639 $4,920,105 $4,399,911  $5,145,872 $4,338,170  
    Total Quarterly Average Equity$450,431 $446,003 $420,640  $448,216 $418,267  
            
    Net Income:       
    Net income$13,757 $8,731 $17,428  $22,488 $29,757  
    Losses on former bank premises and equipment, net of tax -  566  427   566  427  
    Losses on sale of securities, net of tax 6  24  39   30  43  
    Acquisition-related expenses, net of tax 582  763  74   1,345  82  
    Occupancy and bank premises - storm repair, net of tax 213  182  741   395  1,018  
    Core net income$14,558 $10,266 $18,709  $24,824 $31,327  
            
    Return on average assets 1.02% 0.71% 1.58%  0.87% 1.37% 
    Core return on average assets 1.08% 0.83% 1.70%  0.96% 1.44% 
    Return on equity 12.22% 7.83% 16.57%  10.03% 14.23% 
    Core return on average equity 12.93% 9.21% 17.79%  11.08% 14.98% 
            
    Interest Income:       
    Interest income$54,014 $44,122 $42,351  $98,136 $86,613  
    Core interest income 54,014  44,122  42,351   98,136  86,613  
    Interest Expense:       
    Interest expense 4,452  3,647  4,406   8,099  8,367  
    Core interest expense 4,452  3,647  4,406   8,099  8,367  
    Other Income:       
    Other income 7,021  5,896  17,165   12,917  22,013  
    Losses on former bank premises and equipment -  717  540   717  540  
    Losses on sale of securities 8  31  50   39  55  
    Core other income 7,029  6,644  17,755   13,673  22,608  
    Other Expense:       
    Other expense 36,397  33,720  30,905   70,117  57,633  
    Acquisition-related expenses (708) (811) (94)  (1,519) (104) 
    Occupancy and bank premises - storm repair (270) (231) (938)  (501) (1,288) 
    Core other expense$35,419 $32,678 $29,873  $68,097 $56,241  
            
    Efficiency Ratio:       
    Other expense (a)$36,397 $33,720 $30,905  $70,117 $57,633  
    Core other expense (c)$35,419 $32,678 $29,873  $68,097 $56,241  
    Net interest and other income (1) (b)$56,591 $46,402 $55,160  $102,993 $100,314  
    Core net interest and other income (1) (d)$56,591 $47,119 $55,700  $103,710 $100,854  
    Efficiency ratio (a/b) 64.32% 72.67% 56.03%  68.08% 57.45% 
    Core efficiency ratio (c/d) 62.59% 69.35% 53.63%  65.66% 55.76% 
            
    Total Average Interest-Earnings Assets$4,984,034 $4,612,450 $3,920,569  $4,798,239 $3,865,952  
            
    Net Interest Income:        
    Net interest income$49,562 $40,475 $37,945  $90,037 $78,246  
    Loan discount accretion (2,588) (920) (1,617)  (3,508) (4,680) 
    Net interest income excluding loan discount accretion$46,974 $39,555 $36,328  $86,529 $73,566  
            
    Net interest margin (2) 3.98% 3.51% 3.87%  3.75% 4.05% 
    Net interest margin excluding loan discount accretion (2) 3.77% 3.43% 3.71%  3.61% 3.81% 
    Net interest spread 3.79% 3.35% 3.68%  3.58% 3.87% 
    Net interest spread excluding loan discount accretion 3.59% 3.27% 3.52%  3.44% 3.62% 
            
    (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) 
         
         
     June 30,March 31,June 30, 
    (Dollars in thousands, except per share data) 2022  2022  2021  
         
    Total Shareholders' (Common) Equity:    
    Total shareholders' equity$445,459 $456,837 $431,006  
    Goodwill (88,842) (89,911) (60,062) 
    Core deposit and customer intangible (15,093) (15,617) (13,271) 
    Total tangible common equity$341,524 $351,309 $357,673  
         
         
    Total Assets:    
    Total assets$5,530,383 $5,362,235 $4,323,959  
    Goodwill (88,842) (89,911) (60,062) 
    Core deposit and customer intangible (15,093) (15,617) (13,271) 
    Total tangible assets$5,426,448 $5,256,707 $4,250,626  
         
    Common shares outstanding 22,579,451  22,564,607  20,740,759  
         
    Book value per common share$19.73 $20.25 $20.78  
    Tangible book value per common share$15.13 $15.57 $17.24  
    Common equity to total assets 8.05% 8.52% 9.97% 
    Tangible common equity to tangible assets 6.29% 6.68% 8.41% 
         

    Misty Albrecht
    b1BANK
    225.286.7879
    Misty.Albrecht@b1BANK.com


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