Business First Bancshares, Inc., Announces Financial Results for Fiscal Year 2022 and Q4 2022
01/25/2023 - 04:01 PM
BATON ROUGE, La., Jan. 25, 2023 (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, 2022, including net income available to common shareholders of $52.9 million , or $2.32 per diluted common share, an increase of $0.8 million and decrease of $0.21 , respectively, from the prior year ended December 31, 2021. On a non-GAAP basis, core net income for the year ended December 31, 2022, which excludes certain income and expenses, was $57.6 million , or $2.52 per diluted common share, an increase of $3.7 million and decrease of $0.09 , respectively, from prior year ended December 31, 2021. The results for the year ended December 31, 2021, included a $9.2 million pre-tax gain on the sale of substantially all of the Small Business Administration (SBA) Paycheck Protection Program (PPP) loans. The sale increased diluted earnings per common share by $0.35 for the year.
For the quarter ended December 31, 2022, Business First reported net income available to common shareholders of $16.6 million , or $0.67 per diluted common share, increases of $2.8 million and $0.06 , respectively, from the quarter ended September 30, 2022. On a non-GAAP basis, core net income for the quarter ended December 31, 2022, which excludes certain income and expenses, was $16.4 million , unchanged from the linked quarter. On a per share basis, core net income was $0.66 per diluted common share for the current quarter, a decrease of $0.06 from the quarter ended September 30, 2022. The per share decrease was largely impacted by the issuance of 2,500,000 shares of common stock in an underwritten public offering at a public offering price of $20.00 per share during October 2022. Additionally, the Company paid a $1.4 million quarterly preferred dividend during the quarter ended December 31, 2022.
“2022 was a pivotal year for b1BANK, highlighted by record financial and operational performance,” said Jude Melville, president and CEO. “Long-term investments in personnel, technology and infrastructure are producing concrete returns. Asset quality remains solid. Our balance sheet has been fortified by the raising of over $120 million in preferred and common equity. These things lead us to be optimistic about our franchise’s potential in 2023 and beyond.”
On January 25, 2023, 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. The dividend will be paid on February 28, 2023, or as soon thereafter as practicable, to the common shareholders of record as of February 15, 2023. Additionally, the board of directors declared a quarterly 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% . The dividend will be paid on February 28, 2023, or as soon therefore as practicable, to the preferred shareholders of record as of February 15, 2023.
Quarterly Highlights
Solid Loan Growth . Total loans held for investment at December 31, 2022, were $4.6 billion , an increase of $176.3 million compared to September 30, 2022, or 3.98% for the quarter, 15.79% annualized. Based on unpaid principal balances, 44.1% of loan growth for the quarter ended December 31, 2022, was attributable to our Dallas Fort Worth region, 31.2% to the Houston region, 19.7% to the Capital region, and 13.6% to the Greater New Orleans region. As of December 31, 2022, approximately 35% of Business First’s loan portfolio resides in Texas based on unpaid principal balance.Management of Net Interest Margin. For the quarter ended December 31, 2022, net interest income totaled $56.1 million and net interest margin and net interest spread were 4.06% and 3.43% , respectively, compared to $53.5 million , 4.01% and 3.65% for the quarter ended September 30, 2022. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $4.2 million ) were 3.75% and 3.13% , respectively, for the quarter ended December 31, 2022, compared to 3.88% and 3.52% (excluding loan discount accretion of $1.7 million ) for the quarter ended September 30, 2022. Net interest margin excluding loan discount accretion declined from the linked quarter due to a $650,000 acceleration of interest income from full repayment of a nonaccrual loan in July 2022, which accounted for approximately five basis points of the decrease, as well as increased deposit and Federal Home Loan Bank (FHLB) short-term fundings costs during the fourth quarter of 2022, which were mostly offset by increased loan offering rates, repricing, and volume.Solid Return on Assets and Equity. Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.12% and 13.56% , respectively, for the quarter ended December 31, 2022, compared to 0.96% and 12.37% , respectively, for the quarter ended September 30, 2022. Non-GAAP core return on average assets and common equity, each on an annualized basis, were 1.10% and 13.37% , respectively, for the quarter ended December 31, 2022, compared to 1.14% and 14.68% , respectively, for the quarter ended September 30, 2022.Overall Credit Quality Remains Stable. Ratios of nonperforming loans to loans held for investment and nonperforming assets to total assets remained steady at 0.25% and 0.21% , respectively at December 31, 2022, and September 30, 2022.Common Stock Issuance. Business First completed an issuance of 2,500,000 shares of common stock in an underwritten public offering at a public offering price of $20.00 per share on October 17, 2022.Statement of Financial Condition
Loans
Loans held for investment increased $176.3 million or 3.98% , 15.79% annualized, for the quarter ended December 31, 2022. For the year ended December 31, 2022, loans held for investment increased $1.4 billion or 44.41% . Organic loan growth, which excludes the beginning book value of the acquired Texas Citizens loan portfolio, was $1.1 billion or 33.45% for the year ended December 31, 2022.
Loan growth from the linked quarter was attributed to originations in the real estate - construction and land portfolio, $85.2 million or 48.33% , and in the commercial portfolio, $77.6 million or 44.02% . Our Dallas Fort Worth region produced 44.1% of the total growth from the linked quarter based on unpaid principal balance, while we also continued to originate growth from several of our other key strategic markets, 31.2% from the Houston region, 19.7% from the Capital region, and 13.6% from the Greater New Orleans region. As of December 31, 2022, approximately 35% of Business First’s loan portfolio resides in Texas based on unpaid principal balances.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment and nonperforming assets as a percentage of total assets remained consistent with the linked quarter at 0.25% and 0.21% , respectively. Loans 90 days past due and accruing decreased $786,000 while nonaccrual loans increased $1.2 million , $900,000 of which was attributed to a single relationship for which Business First recorded a provision for loan losses of $550,000 during the quarter. We believe the credit circumstances of this relationship are isolated and not systemic to the rest of the loan portfolio.
Securities
The securities portfolio increased $5.8 million or 0.65% , from the linked quarter. The increase was the net impact of positive fair value adjustments, $13.4 million , and $23.3 million of purchases with tax equivalent yields between 4.4% and 6.7% during the quarter ended December 31, 2022, offset by security paydowns and maturities.
Deposits
Deposits increased $234.2 million or 5.11% , 20.26% annualized, for the quarter ended December 31, 2022. For the year ended December 31, 2022, deposits increased $743.1 million or 18.22% . Organic deposit growth, which excludes the deposits of the acquired Texas Citizens portfolio, was $265.8 million or 6.52% for the year ended December 31, 2022.
Noninterest-bearing deposits decreased $63.9 million or 3.96% , and interest-bearing deposits increased $298.2 million or 10.03% , compared to the linked quarter.
Borrowings
Borrowings decreased $116.9 million or 17.27% , from the linked quarter. The decrease was largely attributed to a reduction in short-term, seven-day FHLB borrowings. The linked quarter increase in deposits was the main driver of the paydown in short-term borrowings.
Shareholders’ Equity
In October 2022, Business First issued 2,500,000 shares of common stock in an underwritten public offering at a public offering price of $20.00 per share. After deducting underwriting discounts and commissions and estimated offering expenses, the Company expects the net proceeds of the offering to be approximately $46.8 million . Additionally, accumulated other comprehensive income increased $10.5 million due to favorable after-tax fair value changes in the securities portfolio. Book value per common share was $20.25 at December 31, 2022, compared to $19.29 at September 30, 2022. On a non-GAAP basis, tangible book value per common share was $16.17 at December 31, 2022, compared to $14.73 at September 30, 2022.
Results of Operations
Net Interest Income
For the quarter ended December 31, 2022, net interest income totaled $56.1 million and net interest margin and net interest spread were 4.06% and 3.43% , respectively, compared to $53.5 million , 4.01% and 3.65% for the quarter ended September 30, 2022. The quarter ended December 31, 2022, included additional loan discount accretion due to a large, acquired loan payoff and accelerated accretion from the purchased impaired portfolio. The quarter ended September 30, 2022, included additional interest income of approximately $650,000 associated with a nonaccrual loan that was paid in full during the quarter. Overall costs of funds, which includes noninterest bearing deposits, increased from 0.77% to 1.38% or 61 basis points, from the linked quarter.
Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $4.2 million ) were 3.75% and 3.13% , respectively, for the quarter ended December 31, 2022, compared to 3.88% and 3.52% (excluding loan discount accretion of $1.7 million ) for the quarter ended September 30, 2022. The average yield on the loan portfolio (excluding SBA PPP loans and loan discount accretion) was 5.72% compared to 5.30% from the linked quarter. The compression of both net interest margin and net interest spread were largely attributed to the continued increases in short-term rates during the quarter ended December 31, 2022, resulting in a 104 and 84 basis point increase in average cost in FHLB borrowings and interest-bearing deposits, respectively. Although increased fundings costs negatively impact our margin and spread, we were able to offset a significant amount of the compression through increased loan offering rates, repricing, and volume.
Provision for Loan Losses
During the quarter ended December 31, 2022, Business First recorded a provision for loan losses of $3.1 million , compared to $3.3 million for the quarter ended September 30, 2022. The provision for loan losses for the quarter ended December 31, 2022, was impacted by individual reserves of $1.4 million and $550,000 on two separate loan relationships. Reserves on these loans are due to individual credit circumstances which we do not believe are systemic to the remainder of our loan portfolio.
Other Income
For the quarter ended December 31, 2022, other income increased $163,000 , or 2.01% , compared to the quarter ended September 30, 2022. Notable variances included a $149,000 increase in service charges, $140,000 increase in fees and brokerage commissions, offset by a $205,000 reduction in gains on sales of loans due to less activity during the quarter ended December 31, 2022.
Non-GAAP other income was $422,000 lower than GAAP due to insurance recoveries attributed to salary expense and lost revenue from storm claims, compared to $265,000 of insurance recoveries for the quarter ended September 30, 2022.
Other Expenses
For the quarter ended December 31, 2022, other expense decreased by $2.6 million , or 6.35% , compared to the quarter ended September 30, 2022. The decrease was largely attributable to a $3.1 million decrease in merger and conversion-related expenses. Salaries and employee benefits increased marginally by $299,000 , advertising and promotions increased $427,000 due to deposit promotions and other advertising production costs, and other expense increased $534,000 largely attributed to loan collection costs and miscellaneous expenses.
Non-GAAP other expense was $138,000 lower than GAAP due to merger and conversion-related expenses attributed to the Texas Citizens acquisition for the quarter ended December 31, 2022, compared to $3.5 million of merger and conversion-related expenses for the quarter ended September 30, 2022.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.12% and 13.56% , respectively, for the quarter ended December 31, 2022, compared to 0.96% and 12.37% , respectively, for the quarter ended September 30, 2022. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.10% and 13.37% , respectively, for the quarter ended December 31, 2022, compared to 1.14% and 14.68% , respectively, for the quarter ended September 30, 2022.
Conference Call and Webcast
About Business First Bancshares, Inc. $6.0 billion in assets, $6.5 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
Special Note Regarding Forward-Looking Statements
Additional Information
No Offer or Solicitation
Misty Albrecht
Business First Bancshares, Inc. Selected Financial Information (Unaudited) For the Quarter Ended December 31, September 30, December 31, (Dollars in thousands) 2022 2022 2021 Balance Sheet Ratios Loans (HFI) to Deposits 95.56 % 96.59 % 78.23 % Shareholders’ Equity to Assets Ratio 9.69 % 8.75 % 9.17 % Loans Receivable Held for Investment (HFI) Commercial (1) $ 1,090,343 $ 1,012,778 $ 721,385 Real Estate: Construction and Land 722,074 636,869 548,528 Farmland 193,587 190,829 87,463 1-4 Family Residential 557,741 545,880 467,699 Multi-Family Residential 98,637 102,056 97,508 Nonfarm Nonresidential 1,826,819 1,823,408 1,144,426 Total Real Estate 3,398,858 3,299,042 2,345,624 Consumer and Other 116,975 118,080 122,599 Total Loans (Held for Investment) $ 4,606,176 $ 4,429,900 $ 3,189,608 Allowance for Loan Losses Balance, Beginning of Period $ 35,201 $ 32,317 $ 28,146 Charge-offs – Quarterly (387 ) (667 ) (385 ) Recoveries – Quarterly 313 278 51 Provision for Loan Losses – Quarterly 3,051 3,273 1,300 Balance, End of Period $ 38,178 $ 35,201 $ 29,112 Allowance for Loan Losses to Total Loans (HFI) 0.83 % 0.79 % 0.91 % Net Charge-offs (Recoveries) to Average Quarterly Total Loans 0.00 % 0.01 % 0.01 % Remaining Loan Purchase Discount $ 27,000 $ 36,089 $ 27,573 Nonperforming Assets Nonperforming Loans: Nonaccrual Loans (2) $ 11,054 $ 9,843 $ 12,868 Loans Past Due 90 Days or More (2) 335 1,121 222 Total Nonperforming Loans 11,389 10,964 13,090 Other Nonperforming Assets: Other Real Estate Owned 1,372 840 1,427 Other Nonperforming Assets 62 180 - Total Other Nonperforming Assets 1,434 1,020 1,427 Total Nonperforming Assets $ 12,823 $ 11,984 $ 14,517 Nonperforming Loans to Total Loans (HFI) 0.25 % 0.25 % 0.41 % Nonperforming Assets to Total Assets 0.21 % 0.21 % 0.31 % (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $2.8 million of the commercial portfolio as of December 31, 2022. SBA PPP loans accounted for $3.0 million of the commercial portfolio as of September 30, 2022. SBA PPP loans accounted for $5.4 million of the commercial portfolio as of December 31, 2021. (2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.
Business First Bancshares, Inc. Selected Financial Information (Unaudited) Three Months Ended Year Ended December 31, September 30, December 31, December 31, December 31, (Dollars in thousands, except per share data) 2022 2022 2021 2022 2021 Per Share Data Basic Earnings per Common Share $ 0.68 $ 0.61 $ 0.59 $ 2.34 $ 2.54 Diluted Earnings per Common Share 0.67 0.61 0.59 2.32 2.53 Dividends per Common Share 0.12 0.12 0.12 0.48 0.46 Book Value per Common Share 20.25 19.29 21.24 20.25 21.24 Average Common Shares Outstanding 24,542,120 22,468,939 20,299,704 22,633,478 20,502,249 Average Diluted Common Shares Outstanding 24,757,143 22,650,640 20,462,317 22,817,493 20,634,281 End of Period Common Shares Outstanding 25,110,313 22,605,136 20,400,349 25,110,313 20,400,349 Annualized Performance Ratios Return to Common Shareholders on Average Assets (1) 1.12 % 0.96 % 1.04 % 0.97 % 1.18 % Return to Common Shareholders on Average Common Equity (1) 13.56 % 12.37 % 11.11 % 11.59 % 12.25 % Net Interest Margin (1) 4.06 % 4.01 % 3.54 % 3.92 % 3.84 % Net Interest Spread (1) 3.43 % 3.65 % 3.35 % 3.57 % 3.65 % Efficiency Ratio (2) 59.60 % 66.47 % 65.55 % 65.26 % 61.84 % Total Quarterly/YTD Average Assets $ 5,899,972 $ 5,702,312 $ 4,584,460 $ 5,473,508 $ 4,403,670 Total Quarterly/YTD Average Common Equity 486,338 442,778 430,834 456,388 425,692 Other Expenses Salaries and Employee Benefits $ 22,205 $ 21,906 $ 17,355 $ 85,222 $ 65,825 Occupancy and Bank Premises 2,285 2,485 1,522 9,244 7,238 Depreciation and Amortization 1,700 1,850 793 6,853 5,792 Data Processing 2,201 2,155 2,032 8,358 8,137 FDIC Assessment Fees 611 839 668 2,854 2,194 Legal and Other Professional Fees 462 619 480 2,359 2,679 Advertising and Promotions 1,571 1,144 999 3,949 2,712 Utilities and Communications 759 833 586 3,193 2,475 Ad Valorem Shares Tax 962 813 449 3,400 2,499 Directors’ Fees 270 288 207 972 790 Other Real Estate Owned Expenses and Write-Downs 11 133 76 193 736 Merger and Conversion-Related Expenses 138 3,244 266 4,808 515 Other 5,171 4,637 3,982 18,004 15,469 Total Other Expenses $ 38,346 $ 40,946 $ 29,415 $ 149,409 $ 117,061 Other Income Service Charges on Deposit Accounts $ 2,265 $ 2,116 $ 1,800 $ 8,272 $ 6,813 (Loss)/Gain on Sales of Securities (2 ) (7 ) 444 (48 ) 378 Debit Card and ATM Fee Income 1,582 1,667 1,554 6,407 6,199 Bank-Owned Life Insurance Income 526 561 367 1,931 1,396 Gain on Sales of Loans 59 264 3 574 10,117 Mortgage Origination Income 105 57 169 532 866 Fees and Brokerage Commission 1,760 1,620 1,721 6,964 5,015 Gain (Loss) on Sales of Other Real Estate Owned 3 12 (35 ) 33 (1,122 ) Gain (Loss) on Disposal of Other Assets (1 ) 1 (9 ) (717 ) 112 Gain on Sale of Branch - - 492 - 492 Pass-Through Income from Other Investments 608 572 555 1,347 2,615 Other 1,373 1,252 (86 ) 4,015 2,901 Total Other Income $ 8,278 $ 8,115 $ 6,975 $ 29,310 $ 35,782 (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) 2022 2022 2021 Assets Cash and Due From Banks $ 152,740 $ 152,671 $ 68,375 Federal Funds Sold 15,606 11,137 227,044 Securities Available for Sale, at Fair Values 890,751 884,960 1,021,061 Mortgage Loans Held for Sale 304 545 1,200 Loans and Lease Receivable 4,606,176 4,429,900 3,189,608 Allowance for Loan Losses (38,178 ) (35,201 ) (29,112 ) Net Loans and Lease Receivable 4,567,998 4,394,699 3,160,496 Premises and Equipment, Net 63,177 63,765 58,155 Accrued Interest Receivable 25,666 22,454 19,597 Other Equity Securities 37,467 39,390 16,619 Other Real Estate Owned 1,372 840 1,427 Cash Value of Life Insurance 91,958 88,743 60,380 Deferred Taxes, Net 31,194 36,691 8,822 Goodwill 88,543 88,543 59,894 Core Deposit and Customer Intangibles 14,042 14,567 12,203 Other Assets 9,642 7,686 11,105 Total Assets $ 5,990,460 $ 5,806,691 $ 4,726,378 Liabilities Deposits Noninterest-Bearing $ 1,549,381 $ 1,613,310 $ 1,291,036 Interest-Bearing 3,270,964 2,972,795 2,786,247 Total Deposits 4,820,345 4,586,105 4,077,283 Securities Sold Under Agreements to Repurchase 20,208 22,072 19,121 Fed Funds Purchased 14,057 - - Short-Term Borrowings 9 5,009 20 Subordinated Debt 110,749 110,902 81,427 Subordinated Debt - Trust Preferred Securities 5,000 5,000 5,000 Federal Home Loan Bank Borrowings 410,100 534,059 82,022 Accrued Interest Payable 2,092 1,023 1,354 Other Liabilities 27,419 34,519 26,783 Total Liabilities 5,409,979 5,298,689 4,293,010 Shareholders’ Equity Preferred Stock 71,930 72,010 - Common Stock 25,110 22,605 20,400 Additional Paid-In Capital 393,690 347,721 292,271 Retained Earnings 163,955 150,336 121,874 Accumulated Other Comprehensive Income (Loss) (74,204 ) (84,670 ) (1,177 ) Total Shareholders’ Equity 580,481 508,002 433,368 Total Liabilities and Shareholders’ Equity $ 5,990,460 $ 5,806,691 $ 4,726,378
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) 2022 2022 2021 2022 2021 Interest Income: Interest and Fees on Loans $ 69,364 $ 58,846 $ 38,337 $ 218,032 $ 156,791 Interest and Dividends on Securities 4,316 4,200 3,904 16,503 13,520 Interest on Federal Funds Sold and Due From Banks 825 427 50 1,579 127 Total Interest Income 74,505 63,473 42,291 236,114 170,438 Interest Expense: Interest on Deposits 13,307 6,286 2,645 24,413 12,183 Interest on Borrowings 5,138 3,707 1,302 12,124 4,371 Total Interest Expense 18,445 9,993 3,947 36,537 16,554 Net Interest Income 56,060 53,480 38,344 199,577 153,884 Provision for Loan Losses: 3,051 3,273 1,300 10,886 8,047 Net Interest Income After Provision for Loan Losses 53,009 50,207 37,044 188,691 145,837 Other Income: Service Charges on Deposit Accounts 2,265 2,116 1,800 8,272 6,813 (Loss)/Gain on Sales of Securities (2 ) (7 ) 444 (48 ) 378 Gain on Sales of Loans 59 264 3 574 10,117 Other Income 5,956 5,742 4,728 20,512 18,474 Total Other Income 8,278 8,115 6,975 29,310 35,782 Other Expenses: Salaries and Employee Benefits 22,205 21,906 17,355 85,222 65,825 Occupancy and Equipment Expense 4,918 5,122 3,857 19,367 15,750 Merger and Conversion-Related Expense 138 3,244 266 4,808 515 Other Expenses 11,085 10,674 7,937 40,012 34,971 Total Other Expenses 38,346 40,946 29,415 149,409 117,061 Income Before Income Taxes: 22,941 17,376 14,604 68,592 64,558 Provision for Income Taxes: 4,974 3,576 2,536 14,337 12,422 Net Income: 17,967 13,800 12,068 54,255 52,136 Preferred Stock Dividends: (1,350 ) - - (1,350 ) - Net Income Available to Common Shareholders $ 16,617 $ 13,800 $ 12,068 $ 52,905 $ 52,136
Business First Bancshares, Inc. Consolidated Net Interest Margin (Unaudited) Three Months Ended December 31, 2022 September 30, 2022 December 31, 2021 Average Average Average Outstanding Interest Average Outstanding Interest Average Outstanding Interest 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 (Excluding SBA PPP) $ 4,516,794 $ 69,357 6.09 % $ 4,278,184 $ 58,839 5.46 % $ 3,106,477 $ 38,318 4.89 % SBA PPP Loans 2,849 7 0.99 % 2,953 7 0.99 % 7,733 19 0.99 % Securities 901,236 4,316 1.90 % 951,479 4,200 1.75 % 1,041,437 3,904 1.49 % Interest-Bearing Deposit in Other Banks 62,013 825 5.28 % 54,730 427 3.10 % 143,488 50 0.14 % Total Interest-Earning Assets 5,482,892 74,505 5.39 % 5,287,346 63,473 4.76 % 4,299,135 42,291 3.90 % Allowance for Loan Losses (35,951 ) (33,215 ) (28,379 ) Noninterest-Earning Assets 453,031 448,181 313,704 Total Assets $ 5,899,972 $ 74,505 $ 5,702,312 $ 63,473 $ 4,584,460 $ 42,291 Liabilities and Shareholders’ Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 3,157,513 $ 13,307 1.67 % $ 3,009,565 $ 6,286 0.83 % $ 2,653,041 $ 2,645 0.40 % Subordinated Debt 110,800 1,363 4.88 % 110,953 1,332 4.76 % 81,427 1,026 5.00 % Subordinated Debt - Trust Preferred Securities 5,000 85 6.74 % 5,000 68 5.40 % 5,000 42 3.33 % Advances from Federal Home Loan Bank (FHLB) 436,233 3,555 3.23 % 396,267 2,194 2.20 % 83,374 229 1.09 % First National Bankers Bank Line of Credit 1,667 30 7.14 % 5,000 70 5.55 % - - 0.00 % Other Borrowings 25,815 105 1.61 % 22,381 43 0.76 % 25,774 5 0.08 % Total Interest-Bearing Liabilities 3,737,028 18,445 1.96 % 3,549,166 9,993 1.12 % 2,848,616 3,947 0.55 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits $ 1,567,507 $ 1,626,055 $ 1,276,279 Other Liabilities 37,138 60,310 28,731 Total Noninterest-Bearing Liabilities 1,604,645 1,686,365 1,305,010 Shareholders’ Equity: Common Shareholders’ Equity 486,338 442,778 430,834 Preferred Equity 71,961 24,003 - Total Shareholder’s Equity 558,299 466,781 430,834 Total Liabilities and Shareholders’ Equity $ 5,899,972 $ 5,702,312 $ 4,584,460 Net Interest Spread 3.43 % 3.65 % 3.35 % Net Interest Income $ 56,060 $ 53,480 $ 38,344 Net Interest Margin 4.06 % 4.01 % 3.54 % Overall Cost of Funds 1.38 % ` 0.77 % 0.38 % 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, 2022 December 31, 2021 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 (Excluding SBA PPP) $ 4,016,947 $ 217,997 5.43 % $ 2,878,306 $ 148,638 5.16 % SBA PPP Loans 3,489 35 1.00 % 158,714 8,153 5.14 % Securities 956,232 16,503 1.73 % 870,282 13,520 1.55 % Interest-Bearing Deposit in Other Banks 115,016 1,579 1.37 % 104,471 127 0.12 % Total Interest-Earning Assets 5,091,684 236,114 4.64 % 4,011,773 170,438 4.25 % Allowance for Loan Losses (32,093 ) (26,132 ) Noninterest-Earning Assets 413,917 418,029 Total Assets $ 5,473,508 $ 236,114 $ 4,403,670 $ 170,438 Liabilities and Shareholders’ Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 3,007,882 $ 24,413 0.81 % $ 2,604,825 $ 12,183 0.47 % Subordinated Debt 106,054 5,108 4.82 % 68,183 3,526 5.17 % Subordinated Debt - Trust Preferred Securities 5,000 247 4.94 % 5,000 168 3.36 % Advances from Federal Home Loan Bank (FHLB) 271,025 6,479 2.39 % 47,325 554 1.17 % First National Bankers Bank Line of Credit 2,500 121 4.84 % - - 0.00 % Other Borrowings 23,197 169 0.73 % 27,182 123 0.45 % Total Interest-Bearing Liabilities 3,415,658 36,537 1.07 % 2,752,515 16,554 0.60 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits 1,539,938 1,196,970 Other Liabilities 37,533 28,493 Total Noninterest-Bearing Liabilities 1,577,471 1,225,463 Shareholders’ Equity: Common Shareholders’ Equity 456,388 425,692 Preferred Equity 23,991 - Total Shareholder’s Equity 480,379 425,692 Total Liabilities and Shareholders’ Equity $ 5,473,508 $ 4,403,670 Net Interest Spread 3.57 % 3.65 % Net Interest Income $ 199,577 $ 153,884 Net Interest Margin 3.92 % 3.84 % Overall Cost of Funds 0.74 % 0.42 % 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) 2022 2022 2021 2022 2021 Interest Income: Interest income $ 74,505 $ 63,473 $ 42,291 $ 236,114 $ 170,438 Core interest income 74,505 63,473 42,291 236,114 170,438 Interest Expense: Interest expense 18,445 9,993 3,947 36,537 16,554 Core interest expense 18,445 9,993 3,947 36,537 16,554 Provision for Loan Losses: (b) Provision for loan losses 3,051 3,273 1,300 10,886 8,047 Core provision expense 3,051 3,273 1,300 10,886 8,047 Other Income: Other income 8,278 8,115 6,975 29,310 35,782 Losses on former bank premises and equipment - - 78 717 1,010 Losses/(Gains) on sale of securities 2 7 (444 ) 48 (378 ) Gain on sale of branch - - (492 ) - (492 ) Insurance reimbursement of storm expenditures (422 ) (265 ) - (687 ) - Core other income 7,858 7,857 6,117 29,388 35,922 Other Expense: Other expense 38,346 40,946 29,415 149,409 117,061 Acquisition-related expenses (2) (138 ) (3,521 ) (266 ) (5,178 ) (515 ) Occupancy and bank premises - storm repair - - (57 ) (501 ) (1,556 ) Core other expense 38,208 37,425 29,092 143,730 114,990 Pre-Tax Income: (a) Pre-tax income 22,941 17,376 14,604 68,592 64,558 Losses on former bank premises and equipment - - 78 717 1,010 Losses/(Gains) on sale of securities 2 7 (444 ) 48 (378 ) Insurance reimbursment of storm expenditures (422 ) (265 ) - (687 ) - Gain on sale of branch - - (492 ) - (492 ) Acquisition-related expenses (2) 138 3,521 266 5,178 515 Occupancy and bank premises - storm repair - - 57 501 1,556 Core pre-tax income 22,659 20,639 14,069 74,349 66,769 Provision for Income Taxes: (1) Provision for income taxes 4,974 3,576 2,536 14,337 12,422 Tax on losses on former bank premises and equipment - - 16 151 211 Tax on losses/(gains) on sale of securities - 1 (93 ) 10 (79 ) Tax on insurance reimbursement of storm expenditures (89 ) (55 ) - (144 ) - Tax on sale of branch - - (138 ) - (138 ) Tax on acquisition-related expenses (2) 29 739 62 942 108 Tax on occupancy and bank premises - storm repair - - 12 106 326 Core provision for income taxes 4,914 4,261 2,395 15,402 12,850 Net Income Available to Common Shareholders: Net income available to common shareholders 16,617 13,800 12,068 52,905 52,136 Losses on former bank premises and equipment, net of tax - - 62 566 799 Losses/(Gains) on sale of securities, net of tax 2 6 (351 ) 38 (299 ) Insurance reimbursement of storm expenditures, net of tax (333 ) (210 ) - (543 ) - (Gains) on sale of branch - - (354 ) - (354 ) Acquisition-related expenses (2), net of tax 109 2,782 204 4,236 407 Occupancy and bank premises - storm repair, net of tax - - 45 395 1,230 Core net income available to common shareholders $ 16,395 $ 16,378 $ 11,674 $ 57,597 $ 53,919 Pre-tax, pre-provision earnings available to common shareholders (a+b) $ 25,992 $ 20,649 $ 15,904 $ 79,478 $ 72,605 Losses on former bank premises and equipment - - 78 717 1,010 Loss/(Gain) on sale of securities 2 7 (444 ) 48 (378 ) Insurance reimbursement of storm expenditures (422 ) (265 ) - (687 ) - (Gains) on sale of branch - - (492 ) - (492 ) Acquisition-related expenses (2) 138 3,521 266 5,178 515 Occupancy and bank premises - storm repair - - 57 501 1,556 Core pre-tax, pre-provision earnings $ 25,710 $ 23,912 $ 15,369 $ 85,235 $ 74,816 Average Diluted Common Shares Outstanding 24,757,143 22,650,640 20,462,317 22,817,493 20,634,281 Diluted Earnings Per Common Share: Diluted earnings per common share $ 0.67 $ 0.61 $ 0.59 $ 2.32 $ 2.53 Losses on former bank premises and equipment, net of tax - - (0.00 ) 0.02 0.04 Loss/(Gain) on sale of securities, net of tax 0.00 0.00 (0.01 ) 0.00 (0.02 ) Insurance reimbursement of storm expenditures, net of tax (0.01 ) (0.01 ) 0.00 (0.02 ) - (Gains) on sale of branch, net of tax - - (0.02 ) - (0.02 ) Acquisition-related expenses (2), net of tax 0.00 0.12 0.01 0.19 0.02 Occupancy and bank premises -storm repair, net of tax - - - 0.02 0.06 Core diluted earnings per common share $ 0.66 $ 0.72 $ 0.57 $ 2.52 $ 2.61 Pre-tax, pre-provision profit diluted earnings per common share $ 1.05 $ 0.91 $ 0.78 $ 3.48 $ 3.52 Losses on former bank premises and equipment - - 0.00 0.03 0.05 Loss/(Gain) on sale of securities 0.00 0.00 (0.02 ) 0.00 (0.02 ) Insurance reimbursement of storm expenditures (0.02 ) (0.01 ) 0.00 (0.03 ) - (Gains) on sale of branch - - (0.02 ) - (0.02 ) Acquisition-related expenses (2) 0.01 0.16 0.01 0.23 0.02 Occupancy and bank premises - storm repair - - - 0.03 0.08 Core pre-tax, pre-provision diluted earnings per common share $ 1.04 $ 1.06 $ 0.75 $ 3.74 $ 3.63 (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 Year Ended December 31, September 30, December 31, December 31, December 31, (Dollars in thousands, except per share data) 2022 2022 2021 2022 2021 Total Quarterly/YTD Average Assets $ 5,899,972 $ 5,702,312 $ 4,584,460 $ 5,473,508 $ 4,403,670 Total Quarterly/YTD Average Common Equity $ 486,338 $ 442,778 $ 430,834 $ 456,388 $ 425,692 Net Income Available to Common Shareholders: Net income available to common shareholders $ 16,617 $ 13,800 $ 12,068 $ 52,905 $ 52,136 Losses on former bank premises and equipment, net of tax - - 62 566 799 Losses/(Gains) on sale of securities, net of tax 2 6 (351 ) 38 (299 ) Insurance reimbursement of storm expenditures, net of tax (333 ) (210 ) - (543 ) - (Gains) on sale of branch, net of tax - - (354 ) - (354 ) Acquisition-related expenses, net of tax 109 2,782 204 4,236 407 Occupancy and bank premises - storm repair, net of tax - - 45 395 1,230 Core net income available to common shareholders $ 16,395 $ 16,378 $ 11,674 $ 57,597 $ 53,919 Return to common shareholders on average assets (annualized) (2) 1.12 % 0.96 % 1.04 % 0.97 % 1.18 % Core return on average assets (annualized) (2) 1.10 % 1.14 % 1.01 % 1.05 % 1.22 % Return to common shareholders on average common equity (annualized) (2) 13.56 % 12.37 % 11.11 % 11.59 % 12.25 % Core return on average common equity (annualized) (2) 13.37 % 14.68 % 10.75 % 12.62 % 12.67 % Interest Income: Interest income $ 74,505 $ 63,473 $ 42,291 $ 236,114 $ 170,438 Core interest income 74,505 63,473 42,291 236,114 170,438 Interest Expense: Interest expense 18,445 9,993 3,947 36,537 16,554 Core interest expense 18,445 9,993 3,947 36,537 16,554 Other Income: Other income 8,278 8,115 6,975 29,310 35,782 Losses on former bank premises and equipment - - 78 717 1,010 Loss/(Gain) on sale of securities 2 7 (444 ) 48 (378 ) Gain on sale of branch - - (492 ) - (492 ) Insurance reimbursement of storm expenditures (422 ) (265 ) - (687 ) - Core other income 7,858 7,857 6,117 29,388 35,922 Other Expense: Other expense 38,346 40,946 29,415 149,409 117,061 Acquisition-related expenses (138 ) (3,521 ) (266 ) (5,178 ) (515 ) Occupancy and bank premises - storm repair - - (57 ) (501 ) (1,556 ) Core other expense $ 38,208 $ 37,425 $ 29,092 $ 143,730 $ 114,990 Efficiency Ratio: Other expense (a) $ 38,346 $ 40,946 $ 29,415 $ 149,409 $ 117,061 Core other expense (c) $ 38,208 $ 37,425 $ 29,092 $ 143,730 $ 114,990 Net interest and other income (1) (b) $ 64,340 $ 61,602 $ 44,875 $ 228,935 $ 189,288 Core net interest and other income (1) (d) $ 63,918 $ 61,337 $ 44,461 $ 228,965 $ 189,806 Efficiency ratio (a/b) 59.60 % 66.47 % 65.55 % 65.26 % 61.84 % Core efficiency ratio (c/d) 59.78 % 61.02 % 65.43 % 62.77 % 60.58 % Total Average Interest-Earnings Assets $ 5,482,892 $ 5,287,346 $ 4,299,135 $ 5,091,684 $ 4,011,773 Net Interest Income: Net interest income $ 56,060 $ 53,480 $ 38,344 $ 199,577 $ 153,884 Loan discount accretion (4,212 ) (1,712 ) (1,559 ) (9,432 ) (7,750 ) Net interest income excluding loan discount accretion $ 51,848 $ 51,768 $ 36,785 $ 190,145 $ 146,134 Net interest margin (2) 4.06 % 4.01 % 3.54 % 3.92 % 3.84 % Net interest margin excluding loan discount accretion (2) 3.75 % 3.88 % 3.39 % 3.73 % 3.64 % Net interest spread (2) 3.43 % 3.65 % 3.35 % 3.57 % 3.65 % Net interest spread excluding loan discount accretion (2) 3.13 % 3.52 % 3.21 % 3.38 % 3.45 % (1) Excludes gains/losses on sales of securities. (2) Calculated utilizing an Actual/365 day count convention.
Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) December 31, September 30, December 31, (Dollars in thousands, except per share data) 2022 2022 2021 Total Shareholders’ (Common) Equity: Total shareholders’ equity $ 580,481 $ 508,002 $ 433,368 Preferred stock (71,930 ) (72,010 ) - Total common shareholders’ equity 508,551 435,992 433,368 Goodwill (88,543 ) (88,543 ) (59,894 ) Core deposit and customer intangible (14,042 ) (14,567 ) (12,203 ) Total tangible common equity $ 405,966 $ 332,882 $ 361,271 Total Assets: Total assets $ 5,990,460 $ 5,806,691 $ 4,726,378 Goodwill (88,543 ) (88,543 ) (59,894 ) Core deposit and customer intangible (14,042 ) (14,567 ) (12,203 ) Total tangible assets $ 5,887,875 $ 5,703,581 $ 4,654,281 Common shares outstanding 25,110,313 22,605,136 20,400,349 Book value per common share $ 20.25 $ 19.29 $ 21.24 Tangible book value per common share $ 16.17 $ 14.73 $ 17.71 Common equity to total assets 8.49 % 7.51 % 9.17 % Tangible common equity to tangible assets 6.89 % 5.84 % 7.76 %
