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

BATON ROUGE, La., April 26, 2022 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended March 31, 2022, including net income of $8.7 million or $0.41 per diluted share, decreases of $3.3 million and $0.18, respectively, from the quarter ended December 31, 2021. On a non-GAAP basis, core net income for the quarter ended March 31, 2022, which excludes certain income and expenses, was $10.3 million or $0.49 per diluted share, decreases of $1.4 million and $0.08, respectively, from the quarter ended December 31, 2021.

“Over the first quarter we completed both the acquisition of Texas Citizens Bank in Houston and organically grew overall loans across our pre-acquisition footprint at a strong 25% annualized rate,” said Jude Melville, president and CEO. “The investments we’ve made in personnel and systems over the past few quarters are beginning to show returns. We are excited that our combination of healthy growth, stabilization of net interest margin and continued strong credit metrics put us in a solid position to help our clients continue navigating the uncertain times we are experiencing as a country.”

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

Quarterly Highlights

• Completed Texas Citizens Acquisition. Business First completed its previously announced acquisition of Texas Citizens Bancorp, Inc. (Texas Citizens), based in Pasadena, Texas on March 1, 2022. As of February 28, 2022, Texas Citizens had consolidated total assets of $534.2 million, loans of $349.5 million, and deposits of $477.2 million.
• Strong Loan Growth. Business First continued its strong organic loan growth in Texas and New Orleans due to the investments made over the course of 2021. Total loans held for investment at March 31, 2022, were $3.7 billion, an increase of $558.9 million compared to December 31, 2021, or 17.52% for the quarter. Excluding the decrease in Small Business Administration (SBA) Paycheck Protection Program (PPP) loans and loans acquired from Texas Citizens on March 1, 2022, total loans held for investment increased from the quarter ended December 31, 2021, by 6.43% or 25.71% annualized, of which 71.4% was attributable to Texas and 18.4% from our New Orleans market based on unpaid principal balance. As of March 31, 2022, approximately 31% of Business First’s loan portfolio resides in Texas based on unpaid principal balances.
• Stabilized Net Interest Margin. For the quarter ended March 31, 2022, net interest income totaled $40.5 million and net interest margin and net interest spread were 3.51% and 3.35%, respectively, compared to $38.3 million, 3.57% and 3.38% for the quarter ended December 31, 2021. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $920,000) were 3.43% and 3.27%, respectively, for the quarter ended March 31, 2022, compared to 3.42% and 3.24% (excluding loan discount accretion of $1.6 million) for the quarter ended December 31, 2021. Non-GAAP net interest margin rose one basis point over the linked quarter despite the negative impact of two fewer days during the quarter ended March 31, 2022.
• Continued Strong Credit Quality. Credit quality remained relatively stable from the linked quarter. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from 0.41% and 0.31%, respectively, at December 31, 2021, to 0.29% and 0.23% at March 31, 2022. The reduction was partially attributable to charge-offs during the quarter ended March 31, 2022, and the addition of Texas Citizens. Excluding the charge-offs and the addition of Texas Citizens, credit quality slightly improved over the linked quarter.

Financial Condition

March 31, 2022, Compared to December 31, 2021

Loans

Loans held for investment increased $558.9 million or 17.52% for the quarter ended March 31, 2022. The increase was attributable to the acquisition of Texas Citizens on March 1, 2022, and new loan originations during the quarter.

Excluding the net decrease in SBA PPP loans and loans acquired from Texas Citizens on March 1, 2022, total loans held for investment increased for the quarter ended March 31, 2022, by $226.9 million or 6.43% or 25.71% annualized.

Credit Quality

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

Total Shareholders’ Equity

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

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

March 31, 2022, Compared to March 31, 2021

Loans

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

Credit Quality

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

Total Shareholders’ Equity

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

Results of Operations

First Quarter 2022 Compared to Fourth Quarter 2021

Net Income and Diluted Earnings Per Share

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

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

Interest Income

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

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

Interest Expense

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

Other Income

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

Other Expenses

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

Provision for Loan Losses

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

Return on Assets and Equity

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

First Quarter 2022 Compared to First Quarter 2021

Net Income and Diluted Earnings Per Share

For the quarter ended March 31, 2022, net income was $8.7 million or $0.41 per diluted share, compared to net income of $12.3 million or $0.59 per diluted share, for the quarter ended March 31, 2021. The decreases in net income and diluted earnings per share were largely attributable to the $7.0 million increase in other expenses, partially offset by $1.0 million in additional other income and $1.7 million less in provision for loan losses.  

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

Interest Income

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

Average yield on total interest-earning assets, net interest margin, and net interest spread were negatively impacted for the quarter ended March 31, 2022, compared to the quarter ended March 31, 2021, by lower yielding loans, including SBA PPP loans, and securities, offset partially by lower deposit and borrowing yields.

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

Interest Expense

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

Other Income

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

Other Expenses

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

Provision for Loan Losses

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

Return on Assets and Equity

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

About Business First Bancshares, Inc.

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

Non-GAAP Financial Measures

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

Special Note Regarding Forward-Looking Statements

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

Additional Information

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

No Offer or Solicitation

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

Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com

Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
	For the Quarter Ended
	March 31,			December 31,			March 31,
(Dollars in thousands)		2022			2021			2021
Balance Sheet Ratios
Loans (HFI) to Deposits		80.48	%		78.23	%		78.83	%
Shareholders’ Equity to Assets Ratio		8.52	%		9.17	%		9.38	%
Loans Receivable Held for Investment
Commercial (1)	$	817,093		$	721,385		$	962,099
Real Estate:
Construction and Land		581,661			548,528			418,234
Farmland		149,270			87,463			52,861
1-4 Family Residential		485,067			467,699			460,907
Multi-Family Residential		109,773			97,508			77,390
Nonfarm Nonresidential		1,481,046			1,144,426			966,416
Total Real Estate		2,806,817			2,345,624			1,975,808
Consumer and Other (1)		124,588			122,599			104,071
Total Loans (Held for Investment)	$	3,748,498		$	3,189,608		$	3,041,978
Allowance for Loan Losses
Balance, Beginning of Period	$	29,112		$	28,146		$	22,024
Charge-offs – Quarterly		(1,668	)		(385	)		(309	)
Recoveries – Quarterly		184			51			177
Provision for Loan Losses – Quarterly		1,617			1,300			3,359
Balance, End of Period	$	29,245		$	29,112		$	25,251
Allowance for Loan Losses to Total Loans (HFI)		0.78	%		0.91	%		0.83	%
Net Charge-offs to Average Total Loans		0.04	%		0.01	%		0.00	%
Remaining Loan Purchase Discount	$	40,623		$	27,573		$	32,517
Nonperforming Assets
Nonperforming Loans:
Nonaccrual Loans (2)	$	10,784		$	12,868		$	11,956
Loans Past Due 90 Days or More (2)		26			222			1,479
Total Nonperforming Loans		10,810			13,090			13,435
Other Nonperforming Assets:
Other Real Estate Owned		1,369			1,427			8,851
Other Nonperforming Assets		84			-			623
Total Other Nonperforming Assets		1,453			1,427			9,474
Total Nonperforming Assets	$	12,263		$	14,517		$	22,909
Nonperforming Loans to Total Loans (HFI)		0.29	%		0.41	%		0.44	%
Nonperforming Assets to Total Assets		0.23	%		0.31	%		0.52	%
(1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $6.0 million
of the commercial portfolio as of March 31, 2022.
SBA PPP loans accounted for $5.4 million of the commercial portfolio as of December 31, 2021.
SBA PPP loans accounted for $385.8 million and $0.1 million of the commercial
and consumer portfolios, respectively, as of March 31, 2021.
(2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if
the Company does not expect to receive payment in full, as the Company is currently accreting interest income
over the expected life of the loans.

Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
	Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands, except per share data)		2022			2021			2021
Per Share Data
Basic Earnings per Common Share	$	0.42		$	0.59		$	0.60
Diluted Earnings per Common Share		0.41			0.59			0.59
Dividends per Common Share		0.12			0.12			0.10
Book Value per Common Share		20.25			21.24			20.03
Average Common Shares Outstanding		21,019,716			20,299,704			20,621,930
Average Diluted Shares Outstanding		21,162,482			20,462,317			20,738,013
End of Period Common Shares Outstanding		22,564,607			20,400,349			20,804,753
Annualized Performance Ratios
Return on Average Assets		0.71	%		1.05	%		1.15	%
Return on Average Equity		7.83	%		11.20	%		11.86	%
Net Interest Margin		3.51	%		3.57	%		4.23	%
Net Interest Spread		3.35	%		3.38	%		4.06	%
Efficiency Ratio (1)		72.67	%		66.07	%		59.19	%
Total Quarterly Average Assets	$	4,920,105		$	4,584,460		$	4,276,430
Total Quarterly Average Equity		446,003			430,834			415,896
Other Expenses
Salaries and Employee Benefits	$	19,703		$	17,355		$	14,926
Occupancy and Bank Premises		2,052			1,522			1,811
Depreciation and Amortization		1,569			1,476			1,358
Data Processing		2,116			2,032			1,823
FDIC Assessment Fees		743			668			509
Legal and Other Professional Fees		543			480			741
Advertising and Promotions		531			999			477
Utilities and Communications		779			586			575
Ad Valorem Shares Tax		813			449			700
Directors’ Fees		202			207			188
Other Real Estate Owned Expenses and Write-Downs		14			76			379
Merger and Conversion-Related Expenses		811			266			10
Other		3,844			3,982			3,231
Total Other Expenses	$	33,720		$	30,098		$	26,728
Other Income
Service Charges on Deposit Accounts	$	1,805		$	1,800		$	1,567
Gain (Loss) on Sales of Securities		(31	)		444			(5	)
Debit Card and ATM Fee Income		1,501			1,554			1,336
Bank-Owned Life Insurance Income		369			367			318
Gain on Sales of Loans		65			3			(21	)
Mortgage Origination Income		209			169			229
Fees and Brokerage Commission		1,835			1,721			543
Gain (Loss) on Sales of Other Real Estate Owned		8			(35	)		46
Gain (Loss) on Disposal of Other Assets		(717	)		(9	)		117
Gain on Sale of Branch		-			492			-
Pass-Through Income from SBIC Partnerships		115			555			53
Other		737			597			665
Total Other Income	$	5,896		$	7,658		$	4,848
(1) Non-GAAP: Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest
income less gain/loss on sales of securities.

 

Business First Bancshares, Inc.
Consolidated Balance Sheets
(Unaudited)
	March 31,			December 31,			March 31,
(Dollars in thousands)		2022			2021			2021
Assets
Cash and Due From Banks	$	282,074		$	68,375		$	355,257
Federal Funds Sold		67,822			227,044			105,595
Securities Available for Sale, at Fair Values		961,358			1,021,061			721,224
Loans Held for Sale		13,559			-			-
Mortgage Loans Held for Sale		1,354			1,200			2,298
Loans and Lease Receivable		3,748,498			3,189,608			3,041,978
Allowance for Loan Losses		(29,245	)		(29,112	)		(25,251	)
Net Loans and Lease Receivable		3,719,253			3,160,496			3,016,727
Premises and Equipment, Net		63,003			58,155			57,931
Accrued Interest Receivable		20,146			19,597			25,910
Other Equity Securities		23,034			16,619			12,584
Other Real Estate Owned		1,369			1,427			8,851
Cash Value of Life Insurance		72,896			60,380			60,348
Deferred Taxes, Net		23,040			8,822			5,536
Goodwill		89,911			59,894			53,753
Core Deposit and Customer Intangibles		15,617			12,203			9,406
Other Assets		7,799			11,105			8,166
Total Assets	$	5,362,235		$	4,726,378		$	4,443,586
Liabilities
Deposits
Noninterest-Bearing	$	1,544,197		$	1,291,036		$	1,186,625
Interest-Bearing		3,113,541			2,786,247			2,672,109
Total Deposits		4,657,738			4,077,283			3,858,734
Securities Sold Under Agreements to Repurchase		23,345			19,121			21,419
Short-Term Borrowings		20			20			20
Subordinated Debt		111,209			81,427			77,500
Subordinated Debt – Trust Preferred Securities		5,000			5,000			5,000
Federal Home Loan Bank Borrowings		79,957			82,022			33,073
Accrued Interest Payable		895			1,354			1,941
Other Liabilities		27,234			26,783			29,198
Total Liabilities		4,905,398			4,293,010			4,026,885
Shareholders' Equity
Common Stock		22,565			20,400			20,805
Additional Paid-In Capital		345,858			292,271			300,282
Retained Earnings		128,168			121,874			89,441
Accumulated Other Comprehensive Income (Loss)		(39,754	)		(1,177	)		6,173
Total Shareholders’ Equity		456,837			433,368			416,701
Total Liabilities and Shareholders’ Equity	$	5,362,235		$	4,726,378		$	4,443,586

Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
				Three Months Ended
	March 31,			December 31,		March 31,
(Dollars in thousands)		2022			2021		2021
Interest Income:
Interest and Fees on Loans	$	40,183		$	38,337	$	41,419
Interest and Dividends on Securities		3,844			3,904		2,802
Interest on Federal Funds Sold and Due From Banks		95			50		41
Total Interest Income		44,122			42,291		44,262
Interest Expense:
Interest on Deposits		2,263			2,645		3,243
Interest on Borrowings		1,384			1,302		718
Total Interest Expense		3,647			3,947		3,961
Net Interest Income		40,475			38,344		40,301
Provision for Loan Losses:		1,617			1,300		3,359
Net Interest Income After Provision for Loan Losses		38,858			37,044		36,942
Other Income:
Service Charges on Deposit Accounts		1,805			1,800		1,567
Gain (Loss) on Sales of Securities		(31	)		444		(5	)
Gain (Loss) on Sales of Loans		65			3		(21	)
Other Income		4,057			5,411		3,307
Total Other Income		5,896			7,658		4,848
Other Expenses:
Salaries and Employee Benefits		19,703			17,355		14,926
Occupancy and Equipment Expense		4,413			3,857		3,717
Merger and Conversion-Related Expense		811			266		10
Other Expenses		8,793			8,620		8,075
Total Other Expenses		33,720			30,098		26,728
Income Before Income Taxes:		11,034			14,604		15,062
Provision for Income Taxes:		2,303			2,536		2,733
Net Income:	$	8,731		$	12,068	$	12,329

Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
	Three Months Ended
	March 31, 2022								December 31, 2021								March 31, 2021
	Average								Average								Average
	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 (Excluding SBA PPP)	$	3,382,325		$	40,174	4.75	%		$	3,106,477		$	38,318	4.93	%		$	2,643,668		$	36,538	5.53	%
SBA PPP Loans		3,725			9	1.00	%			7,733			19	1.00	%			374,958			4,881	5.21	%
Securities Available for Sale		1,005,252			3,844	1.53	%			1,041,437			3,904	1.50	%			691,476			2,802	1.62	%
Interest-Bearing Deposit in Other Banks		221,148			95	0.17	%			143,488			50	0.14	%			101,233			41	0.16	%
Total Interest-Earning Assets		4,612,450			44,122	3.83	%			4,299,135			42,291	3.93	%			3,811,335			44,262	4.65	%
Allowance for Loan Losses		(29,260	)							(28,379	)							(22,709	)
Noninterest-Earning Assets		336,915								313,704								487,804
Total Assets	$	4,920,105		$	44,122				$	4,584,460		$	42,291				$	4,276,430		$	44,262
Liabilities and Shareholders’ Equity
Interest-Bearing Liabilities:
Interest-Bearing Deposits	$	2,882,838		$	2,263	0.31	%		$	2,653,041		$	2,645	0.40	%		$	2,584,263		$	3,243	0.50	%
Subordinated Debt		91,354			1,115	4.88	%			81,427			1,026	5.04	%			28,450			459	6.45	%
Subordinated Debt – Trust Preferred Securities		5,000			42	3.36	%			5,000			42	3.36	%			5,000			42	3.36	%
Advances from Federal Home Loan Bank (FHLB)		80,375			223	1.11	%			83,374			229	1.10	%			37,022			111	1.20	%
Other Borrowings		19,666			4	0.08	%			25,774			5	0.08	%			31,696			106	1.34	%
Total Interest-Bearing Liabilities		3,079,233			3,647	0.47	%			2,848,616			3,947	0.55	%			2,686,431			3,961	0.59	%
Noninterest-Bearing Liabilities:
Noninterest-Bearing Deposits	$	1,370,015							$	1,276,279							$	1,146,950
Other Liabilities		24,854								28,731								27,153
Total Noninterest-Bearing Liabilities		1,394,869								1,305,010								1,174,103
Shareholders’ Equity		446,003								430,834								415,896
Total Liabilities and Shareholders’ Equity	$	4,920,105							$	4,584,460							$	4,276,430
Net Interest Spread						3.35	%							3.38	%							4.06	%
Net Interest Income				$	40,475							$	38,344							$	40,301
Net Interest Margin						3.51	%							3.57	%							4.23	%
Overall Cost of Funds						0.33	%							0.38	%							0.41	%
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.

Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
	Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands, except per share data)		2022			2021			2021
Interest Income:
Interest income	$	44,122		$	42,291		$	44,262
Core interest income		44,122			42,291			44,262
Interest Expense:
Interest expense		3,647			3,947			3,961
Core interest expense		3,647			3,947			3,961
Provision for Loan Losses: (b)
Provision for loan losses		1,617			1,300			3,359
Core provision expense		1,617			1,300			3,359
Other Income:
Other income		5,896			7,658			4,848
Losses on former bank premises and equipment		717			78			-
(Gains) 1osses on sale of securities		31			(444	)		5
(Gains) on sale of branch		-			(492	)		-
Core other income		6,644			6,800			4,853
Other Expense:
Other expense		33,720			30,098			26,728
Acquisition-related expenses (2)		(811	)		(266	)		(10	)
Occupancy and bank premises - hurricane repair		(231	)		(57	)		(350	)
Core other expense		32,678			29,775			26,368
Pre-Tax Income: (a)
Pre-tax income		11,034			14,604			15,062
Losses on former bank premises and equipment		717			78			-
(Gains) 1osses on sale of securities		31			(444	)		5
(Gains) on sale of branch		-			(492	)		-
Acquisition-related expenses (2)		811			266			10
Occupancy and bank premises - hurricane repair		231			57			350
Core pre-tax income		12,824			14,069			15,427
Provision for Income Taxes: (1)
Provision for income taxes		2,303			2,536			2,733
Tax on losses on former bank premises and equipment		151			16			-
Tax on (gains) losses on sale of securities		7			(93	)		1
Tax on (gains) on sale of branch		-			(138	)		-
Tax on acquisition-related expenses (2)		48			62			2
Tax on occupancy and bank premises – hurricane repair		49			12			74
Core provision for income taxes		2,558			2,395			2,810
Net Income:
Net income		8,731			12,068			12,329
Losses on former bank premises and equipment, net of tax		566			62			-
(Gains) losses on sale of securities, net of tax		24			(351	)		4
(Gains) on sale of branch		-			(354	)		-
Acquisition-related expenses (2), net of tax		763			204			8
Occupancy and bank premises – hurricane repair, net of tax		182			45			276
Core net income	$	10,266		$	11,674		$	12,617
Pre-tax, pre-provision earnings (a+b)	$	12,651		$	15,904		$	18,421
Losses on former bank premises and equipment		717			78			-
(Gains) losses on sale of securities		31			(444	)		5
(Gains) on sale of branch		-			(492	)		-
Acquisition-related expenses (2)		811			266			10
Occupancy and bank premises – hurricane repair		231			57			350
Core pre-tax, pre-provision earnings	$	14,441		$	15,369		$	18,786
Average Diluted Shares Outstanding		21,162,482			20,462,317			20,738,013
Diluted Earnings Per Share:
Diluted earnings per share	$	0.41		$	0.59		$	0.59
Losses on former bank premises and equipment, net of tax		0.03			0.00			-
(Gains) losses on sale of securities, net of tax		0.00			(0.01	)		0.00
(Gains) on sale of branch		-			(0.02	)		-
Acquisition-related expenses (2), net of tax		0.04			0.01			0.00
Occupancy and bank premises – hurricane repair, net of tax		0.01			0.00			0.02
Core diluted earnings per share	$	0.49		$	0.57		$	0.61
Pre-tax, pre-provision profit diluted earnings per share	$	0.60		$	0.78		$	0.89
Losses on former bank premises and equipment		0.03			0.00			-
(Gains) losses on sale of securities		0.00			(0.02	)		0.00
(Gains) on sale of branch		-			(0.02	)		-
Acquisition-related expenses (2)		0.04			0.01			0.00
Occupancy and bank premises – hurricane repair		0.01			0.00			0.02
Core pre-tax, pre-provision diluted earnings per share	$	0.68		$	0.75		$	0.91
(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.00% for 2022 and 2021. These rates approximated
the marginal tax rates.
(2) Includes merger and conversion-related expenses and salary and employee benefits.

Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
	Three Months Ended
	March 31,			December 31,			March 31,
(Dollars in thousands, except per share data)		2022			2021			2021
Total Quarterly Average Assets	$	4,920,105		$	4,584,460		$	4,276,430
Total Quarterly Average Equity	$	446,003		$	430,834		$	415,896
Net Income:
Net income	$	8,731		$	12,068		$	12,329
Losses on former bank premises and equipment, net of tax		566			62			-
(Gains) losses on sale of securities, net of tax		24			(351	)		4
(Gains) on sale of branch, net of tax		-			(354	)		-
Acquisition-related expenses, net of tax		763			204			8
Occupancy and bank premises – hurricane repair, net of tax		182			45			276
Core net income	$	10,266		$	11,674		$	12,617
Return on average assets		0.71	%		1.05	%		1.15	%
Core return on average assets		0.83	%		1.02	%		1.18	%
Return on equity		7.83	%		11.20	%		11.86	%
Core return on average equity		9.21	%		10.84	%		12.14	%
Interest Income:
Interest income	$	44,122		$	42,291		$	44,262
Core interest income		44,122			42,291			44,262
Interest Expense:
Interest expense		3,647			3,947			3,961
Core interest expense		3,647			3,947			3,961
Other Income:
Other income		5,896			7,658			4,848
Losses on former bank premises and equipment		717			78			-
(Gains) losses on sale of securities		31			(444	)		5
(Gains) on sale of branch		-			(492	)		-
Core other income		6,644			6,800			4,853
Other Expense:
Other expense		33,720			30,098			26,728
Acquisition-related expenses		(811	)		(266	)		(10	)
Occupancy and bank premises - hurricane repair		(231	)		(57	)		(350	)
Core other expense	$	32,678		$	29,775		$	26,368
Efficiency Ratio:
Other expense (a)	$	33,720		$	30,098		$	26,728
Core other expense (c)	$	32,678		$	29,775		$	26,368
Net interest and other income (1) (b)	$	46,402		$	45,558		$	45,154
Core net interest and other income (1) (d)	$	47,119		$	45,144		$	45,154
Efficiency ratio (a/b)		72.67	%		66.07	%		59.19	%
Core efficiency ratio (c/d)		69.35	%		65.96	%		58.40	%
Total Average Interest-Earnings Assets	$	4,612,450		$	4,299,135		$	3,811,335
Net Interest Income:
Net interest income	$	40,475		$	38,344		$	40,301
Loan discount accretion		(920	)		(1,559	)		(3,063	)
Net interest income excluding loan discount accretion	$	39,555		$	36,785		$	37,238
Net interest margin (2)		3.51	%		3.57	%		4.23	%
Net interest margin excluding loan discount accretion (2)		3.43	%		3.42	%		3.91	%
Net interest spread		3.35	%		3.38	%		4.06	%
Net interest spread excluding loan discount accretion		3.27	%		3.24	%		3.73	%
(1) Excludes gains/losses on sales of securities.
(2) Calculated utilizing a 30/360 day count convention.

Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
	March 31,			December 31,			March 31,
(Dollars in thousands, except per share data)		2022			2021			2021
Total Shareholders’ (Common) Equity:
Total shareholders' equity	$	456,837		$	433,368		$	416,701
Goodwill		(89,911	)		(59,894	)		(53,753	)
Core deposit and customer intangible		(15,617	)		(12,203	)		(9,406	)
Total tangible common equity	$	351,309		$	361,271		$	353,542
Total Assets:
Total assets	$	5,362,235		$	4,726,378		$	4,443,586
Goodwill		(89,911	)		(59,894	)		(53,753	)
Core deposit and customer intangible		(15,617	)		(12,203	)		(9,406	)
Total tangible assets	$	5,256,707		$	4,654,281		$	4,380,427
Common shares outstanding		22,564,607			20,400,349			20,804,753
Book value per common share	$	20.25		$	21.24		$	20.03
Tangible book value per common share	$	15.57		$	17.71		$	16.99
Common equity to total assets		8.52	%		9.17	%		9.38	%
Tangible common equity to tangible assets		6.68	%		7.76	%		8.07	%