Business First Bancshares, Inc. Announces Financial Results for Q2 2023
Business First Bancshares reports Q2 2023 results with net income of $18.4 million and announces dividends. Return on assets and equity increase. Credit quality remains stable. Deposits and loans show growth. Net interest income increases. Book value per common share rises.
Positive
Business First Bancshares reports net income of $18.4 million for Q2 2023, an increase of $4.7 million from the previous quarter. Return on assets and equity also increase. Deposits grow by $208.3 million, primarily driven by brokered deposits. Loans held for investment increase by $95.7 million. Net interest income increases to $53.3 million. Book value per common share increases to $20.87.
07/27/2023 - 04:01 PM
BATON ROUGE, La., July 27, 2023 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (Nasdaq: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended June 30, 2023, including net income available to common shareholders of $18.4 million , or $0.73 per diluted common share, increases of $4.7 million and $0.19 , respectively, from the linked quarter, and increases of $4.6 million and $0.12 , respectively, from the quarter ended June 30, 2022. On a non-GAAP basis, core net income for the quarter ended June 30, 2023, which excludes certain income and expenses, was $17.7 million , or $0.70 per diluted common share, increases of $4.0 million and $0.15 , respectively, from the linked quarter, and increases of $3.2 million and $0.06 , respectively, from the quarter ended June 30, 2022.
“In the second quarter we focused successfully on delivering fundamental shareholder-oriented performance,” said b1BANK President & CEO Jude Melville. “The period was marked by measured growth, increased ROE, stable credit quality, and increases in both linked quarter and year-over-year per share tangible book value and earnings. We have been busy blocking and tackling, and we’re seeing that effort pay off.”
On July 27, 2023, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50% . Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the second quarter in the amount of $0.12 per share, same as the prior quarter. The preferred and common dividends will be paid on August 31, 2023, or as soon thereafter as practicable, to the shareholders of record as of August 15, 2023.
Quarterly Highlights
Return on Assets and Equity. Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.18% and 13.99% , respectively, for the quarter ended June 30, 2023, compared to 0.91% and 10.73% , respectively, for the linked quarter. Non-GAAP core return on average assets and common equity, each on an annualized basis, were 1.13% and 13.50% , respectively, for the quarter ended June 30, 2023, compared to 0.91% and 10.81% , respectively, for the linked quarter.Credit Quality. Credit performance remains strong from the linked quarter. The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets were 0.36% and 0.30% , respectively, at June 30, 2023, compared to 0.36% and 0.29% at March 31, 2023.Net Interest Margin. For the quarter ended June 30, 2023, net interest income totaled $53.3 million and net interest margin and net interest spread were 3.63% and 2.75% , respectively, compared to $52.7 million , 3.75% and 2.96% for the quarter ended March 31, 2023. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.1 million ) were 3.49% and 2.51% , respectively, for the quarter ended June 30, 2023, compared to 3.54% and 2.75% (excluding loan discount accretion of $2.9 million ) for the quarter ended March 31, 2023. Compared to the linked quarter, net interest margin excluding loan discount accretion declined five basis points. Deposits . Deposits increased $208.3 million or 4.33% , 17.38% annualized, for the quarter ended June 30, 2023, compared to the linked quarter. The increase was impacted by $211.2 million in additional brokered deposits. Excluding brokered deposits, non-brokered deposits remained stable with a decrease of $2.9 million or 0.06% , 0.26% annualized. Branch deposits (which excludes mainly financial institutions group (FIG), brokered, and listed certificates of deposits) increased $1.9 million compared to the linked quarter.Loans. Loans held for investment increased $95.7 million or 1.99% , 7.99% annualized, from the linked quarter. Year-to-date loan growth through June 30, 2023, was $292.6 million , 6.35% or 12.81% annualized. Loan growth for the second quarter was largely driven by net growth in the commercial and industrial (C&I) and commercial real estate portfolios, offset by reductions in the construction and development (C&D) portfolio.Statement of Financial Condition
Loans
Loans held for investment increased $95.7 million or 1.99% , 7.99% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributed to originations in the C&I, $69.9 million , and commercial real estate, $76.5 million , portfolios, offset by a $68.6 million reduction in the C&D portfolio. Year-to-date loan growth through June 30, 2023, was $292.6 million , 6.35% , or 12.81% annualized.
The Dallas Fort Worth region produced 59.07% of net loan growth from the linked quarter based on unpaid principal balance, while the North Louisiana and Greater New Orleans regions produced 28.16% and 12.06% , respectively. Based on unpaid principal balances, Texas-based loans represent approximately 37% of the overall loan portfolio as of June 30, 2023.
Credit Quality
The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets remained stable from 0.36% and 0.29% , respectively, at March 31, 2023, to 0.36% and 0.30% at June 30, 2023.
Securities
The securities portfolio decreased $26.2 million or 2.90% , from the linked quarter. The decrease was the net impact of negative fair value adjustments, $14.9 million , and net security paydowns and maturities during the quarter. The securities portfolio, based on estimated fair value, represented 13.60% of total assets as of June 30, 2023.
Deposits
Deposits increased $208.3 million or 4.33% , 17.38% annualized, for the quarter ended June 30, 2023. The increase was primarily attributable to the $211.2 million growth in brokered deposits. Excluding the increase in brokered deposits, non brokered deposits remained stable with a decrease of $2.9 million or 0.06% , 0.26% annualized. Year-to-date deposit growth through June 30, 2023, was $194.1 million , 4.03% or 8.12% annualized. Excluding brokered deposits, year-to-date deposits decreased $17.1 million , 0.37% or 0.75% annualized through June 30, 2023, which includes a $40.9 million reduction in FIG deposits.
Noninterest-bearing deposits decreased $46.4 million or 3.14% and interest-bearing deposits increased $254.7 million or 7.65% , compared to the linked quarter. The net growth in interest-bearing deposits was attributable to growth in the certificate of deposit (CD) portfolio of $282.3 million compared to a decrease in transactional accounts of $27.6 million . Brokered deposits accounted for $211.2 million of the $282.3 million increase in the CD portfolio.
As of June 30, 2023, Business First held approximately 104,285 deposit accounts with an average balance of approximately $48,085 , of which $1.9 billion or 38.12% were estimated to be uninsured by the FDIC. The average deposit balance excluding brokered deposits was $43,672 per account. Excluding public funds, which are secured by securities or Federal Home Loan Bank (FHLB) letters of credit, the unsecured deposit total was approximately $1.5 billion or 29.26% of total deposits.
Borrowings
Borrowings decreased $57.8 million , or 6.78% , from the linked quarter, these borrowings were replaced with lower cost brokered deposits. Business First repaid $10.0 million in Bank Term Funding Program (BTFP) borrowings and $33.0 million of Federal Home Loan Bank (FHLB) borrowings, which were largely short term. On May 1, 2023, Business First redeemed an $8.9 million tranche of outstanding subordinated debt, of which $5.7 million was extinguished as of June 30, 2023. This resulted in a $941,000 gain on extinguishment of debt.
Shareholders’ Equity
Accumulated other comprehensive income (AOCI) decreased $13.3 million due to negative after-tax fair value changes in the securities portfolio. Book value per common share nonetheless still increased to $20.87 at June 30, 2023, compared to $20.77 at March 31, 2023, due to strong second quarter earnings. On a non-GAAP basis, tangible book value per common share increased to $16.87 at June 30, 2023, compared to $16.73 at March 31, 2023.
Results of Operations
Net Interest Income
For the quarter ended June 30, 2023, net interest income totaled $53.3 million , compared to $52.7 million from the linked quarter. Loan and interest-earning asset yields of 6.54% and 5.84% , respectively, increased 20 basis points and 19 basis points, respectively, compared to 6.34% and 5.65% from the linked quarter. The increases were largely attributable to loan repricing and higher yields on new originations. Net interest margin and net interest spread were 3.63% and 2.75% , respectively, compared to 3.75% and 2.96% , respectively, for the linked quarter. Interest income for the quarter ended March 31, 2023, included $853,000 of additional loan discount accretion due to a large, acquired loan payoff and accelerated accretion from the purchased impaired portfolio. Overall cost of funds, which include noninterest-bearing deposits, increased from 1.97% to 2.31% or 34 basis points, from the linked quarter due largely to higher cost deposits.
Non-GAAP net interest income (excluding loan discount accretion of $2.1 million ) totaled $51.3 million for the quarter ended June 30, 2023, compared to $49.8 million (excluding loan discount accretion of $2.9 million ) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.1 million ) were 3.49% and 2.51% , respectively, for the quarter ended June 30, 2023, compared to 3.54% and 2.75% (excluding loan discount accretion of $2.9 million ) for the linked quarter. Excluding loan discount accretion, loan yields increased 28 basis points from 6.09% to 6.37% and interest earnings asset yields increased 36 basis points from 5.44% to 5.70% , compared to the linked quarter.
Provision for Credit Losses
During the quarter ended June 30, 2023, Business First recorded a provision for credit losses of $538,000 , compared to $3.2 million for the linked quarter. The current quarter reserve was impacted by loan growth in loan portfolios with lower estimated loss rates and lower reserves for unfunded commitments due to lower unfunded balances. The provision for credit losses for the quarter ended March 31, 2023, included the resolution of an acquired impaired lending relationship in March 2023, which resulted in a charge-off of $1.9 million .
Other Income
For the quarter ended June 30, 2023, other income increased $3.6 million or 42.56% , compared to the linked quarter. The net increase was largely attributable to a $2.6 million increase in equity investment income and a $941,000 gain on extinguishment of debt.
Other Expenses
For the quarter ended June 30, 2023, other expenses increased by $1.0 million , or 2.65% , compared to the linked quarter. The net increase was largely attributable to a $1.6 million increase in data processing charges, offset by a reduction of $837,000 in salary and employee benefits. The increase in data processing costs was partially attributable to $453,000 of rebates received during the first quarter and $715,000 in charges paid in the second quarter attributed to an error identified by our data processor in their billing system.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.18% and 13.99% , respectively, for the quarter ended June 30, 2023, compared to 0.91% and 10.73% , respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.13% and 13.50% , respectively, for the quarter ended June 30, 2022, compared to 0.91% and 10.81% , respectively, for the linked quarter.
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Thursday, July 27, at 4:30 p.m. CDT. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 6772868, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/gm8qhso3 . The corresponding slide presentation can be accessed the day of the presentation on b1BANK’s website at https://www.b1bank.com/shareholder-info .
About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.5 billion in assets, $6.4 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP “core” measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Business First’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.
Special Note Regarding Forward-Looking Statements
Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.
Additional Information
For additional information about Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.
No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Misty Albrecht
Business First Bancshares, Inc. Selected Financial Information (Unaudited) Three Months Ended June 30, March 31, June 30, (Dollars in thousands) 2023 2023 2022 Balance Sheet Ratios Loans (HFI) to Deposits 97.69 % 99.94 % 88.31 % Shareholders' Equity to Assets Ratio 9.31 % 9.50 % 8.05 % Loans Receivable Held for Investment (HFI) Commercial (1) $ 1,309,222 $ 1,239,333 $ 1,019,997 Real Estate: Commercial 2,132,044 2,055,500 1,780,414 Construction 719,080 787,634 642,260 Residential 675,462 659,967 619,648 Total Real Estate 3,526,586 3,503,101 3,042,322 Consumer and Other 62,929 60,626 51,407 Total Loans (Held for Investment) $ 4,898,737 $ 4,803,060 $ 4,113,726 Allowance for Credit Losses Balance, Beginning of Period $ 41,830 $ 38,178 $ 29,245 CECL Adoption/Implementation - 2,660 - Charge-offs – Quarterly (689 ) (2,278 ) (99 ) Recoveries – Quarterly 104 103 226 Provision for Loan Losses – Quarterly 768 3,167 2,945 Balance, End of Period $ 42,013 $ 41,830 $ 32,317 Allowance for Loan Losses to Total Loans (HFI) 0.86 % 0.87 % 0.79 % Allowance for Credit Losses to Total Loans (HFI) (2) 0.93 % 0.95 % 0.80 % Net Charge-offs (Recoveries) to Average Quarterly Total Loans 0.01 % 0.05 % -0.00 % Remaining Loan Purchase Discount $ 17,171 $ 19,234 $ 37,903 Nonperforming Assets Nonperforming Loans: Nonaccrual Loans (1) $ 17,006 $ 16,952 $ 16,777 Loans Past Due 90 Days or More (1) 468 127 324 Total Nonperforming Loans 17,474 17,079 17,101 Other Nonperforming Assets: Other Real Estate Owned 1,587 1,365 990 Other Nonperforming Assets 29 57 84 Total Other Nonperforming Assets 1,616 1,422 1,074 Total Nonperforming Assets $ 19,090 $ 18,501 $ 18,175 Nonperforming Loans to Total Loans (HFI) 0.36 % 0.36 % 0.42 % Nonperforming Assets to Total Assets 0.30 % 0.29 % 0.33 % (1) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company was currently accreting interest income over the expected life of the loans for the period ended June 30, 2022, in accordance with ASC 310-30. (2) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments.
Business First Bancshares, Inc. Selected Financial Information (Unaudited) Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30, (Dollars in thousands, except per share data) 2023 2023 2022 2023 2022 Per Share Data Basic Earnings per Common Share $ 0.73 $ 0.55 $ 0.61 $ 1.28 $ 1.03 Diluted Earnings per Common Share $ 0.73 0.54 0.61 $ 1.27 1.03 Dividends per Common Share 0.12 0.12 0.12 0.24 0.24 Book Value per Common Share 20.87 20.77 19.73 20.87 19.73 Average Common Shares Outstanding 25,101,683 24,979,955 22,459,603 25,041,124 21,746,793 Average Diluted Common Shares Outstanding 25,333,372 25,222,308 22,656,174 25,278,145 21,916,641 End of Period Common Shares Outstanding 25,344,168 25,319,520 22,579,451 25,344,168 22,579,451 Annualized Performance Ratios Return to Common Shareholders on Average Assets (1) 1.18 % 0.91 % 1.03 % 1.04 % 0.88 % Return to Common Shareholders on Average Common Equity (1) 13.99 % 10.73 % 12.25 % 12.39 % 10.12 % Net Interest Margin (1) 3.63 % 3.75 % 3.99 % 3.69 % 3.78 % Net Interest Spread (1) 2.75 % 2.96 % 3.81 % 2.85 % 3.61 % Efficiency Ratio (2) 60.76 % 63.27 % 64.32 % 61.97 % 68.08 % Total Quarterly/Year-to-Date Average Assets $ 6,274,656 $ 6,123,063 $ 5,371,639 $ 6,198,860 $ 5,145,872 Total Quarterly/Year-to-Date Average Common Equity 527,325 516,659 450,431 521,992 448,216 Other Expenses Salaries and Employee Benefits $ 22,339 $ 23,176 $ 21,408 $ 45,515 $ 41,111 Occupancy and Bank Premises 2,406 2,297 2,422 4,703 4,474 Depreciation and Amortization 1,720 1,710 1,734 3,430 3,303 Data Processing 3,035 1,485 1,886 4,520 4,002 FDIC Assessment Fees 1,092 933 661 2,025 1,404 Legal and Other Professional Fees 961 613 735 1,574 1,278 Advertising and Promotions 1,226 1,148 703 2,374 1,234 Utilities and Communications 720 721 822 1,441 1,601 Ad Valorem Shares Tax 965 965 812 1,930 1,625 Directors' Fees 270 269 212 539 414 Other Real Estate Owned Expenses and Write-Downs 39 130 35 169 49 Merger and Conversion-Related Expenses 68 103 615 171 1,426 Other 4,861 5,129 4,352 9,990 8,196 Total Other Expenses $ 39,702 $ 38,679 $ 36,397 $ 78,381 $ 70,117 Other Income Service Charges on Deposit Accounts $ 2,413 $ 2,281 $ 2,086 $ 4,694 $ 3,891 Loss on Sales of Securities (61 ) (1 ) (8 ) (62 ) (39 ) Debit Card and ATM Fee Income 1,646 1,570 1,657 3,216 3,158 Bank-Owned Life Insurance Income 547 524 475 1,071 844 Gain on Sales of Loans 494 611 186 1,105 251 Mortgage Origination Income 56 74 161 130 370 Fees and Brokerage Commission 1,791 1,813 1,749 3,604 3,584 Gain on Sales of Other Real Estate Owned 14 209 10 223 18 Gain (Loss) on Disposal of Other Assets 14 (5 ) - 9 (717 ) Pass-Through Income from Other Investments 2,812 173 52 2,985 167 Gain on Extinguishement of Debt 941 - - 941 - Other 1,291 1,139 653 2,430 1,390 Total Other Income $ 11,958 $ 8,388 $ 7,021 $ 20,346 $ 12,917 (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) June 30, March 31, June 30, (Dollars in thousands) 2023 2023 2022 Assets Cash and Due From Banks $ 180,972 $ 159,767 $ 154,694 Federal Funds Sold 173,850 104,250 10,817 Securities Available for Sale, at Fair Values 877,774 903,945 934,676 Mortgage Loans Held for Sale 435 423 170 Loans and Lease Receivable 4,898,737 4,803,060 4,113,726 Allowance for Loan Losses (42,013 ) (41,830 ) (32,317 ) Net Loans and Lease Receivable 4,856,724 4,761,230 4,081,409 Premises and Equipment, Net 63,037 64,065 64,307 Accrued Interest Receivable 26,861 25,446 22,142 Other Equity Securities 34,824 36,739 30,302 Other Real Estate Owned 1,587 1,365 990 Cash Value of Life Insurance 95,302 94,755 88,370 Deferred Taxes, Net 31,553 28,680 29,576 Goodwill 88,543 88,543 88,842 Core Deposit and Customer Intangibles 12,993 13,517 15,093 Other Assets 10,194 7,256 8,995 Total Assets $ 6,454,649 $ 6,289,981 $ 5,530,383 Liabilities Deposits Noninterest-Bearing $ 1,429,376 $ 1,475,782 $ 1,698,114 Interest-Bearing 3,585,067 3,330,396 2,960,049 Total Deposits 5,014,443 4,806,178 4,658,163 Securities Sold Under Agreements to Repurchase 23,230 16,669 18,477 Federal Funds Purchased - 14,622 - Short-Term Borrowings 9 9 5,020 Bank Term Funding Program 300,000 310,000 - Federal Home Loan Bank Borrowings 362,162 395,134 254,011 Subordinated Debt 103,822 110,596 111,055 Subordinated Debt - Trust Preferred Securities 5,000 5,000 5,000 Accrued Interest Payable 7,666 3,513 708 Other Liabilities 37,349 30,570 32,490 Total Liabilities 5,853,681 5,692,291 5,084,924 Shareholders' Equity Preferred Stock 71,930 71,930 - Common Stock 25,344 25,320 22,579 Additional Paid-In Capital 395,875 394,677 346,382 Retained Earnings 189,115 173,761 139,232 Accumulated Other Comprehensive Loss (81,296 ) (67,998 ) (62,734 ) Total Shareholders' Equity 600,968 597,690 445,459 Total Liabilities and Shareholders' Equity $ 6,454,649 $ 6,289,981 $ 5,530,383
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) 2023 2023 2022 2023 2022 Interest Income: Interest and Fees on Loans $ 79,223 $ 73,768 $ 49,639 $ 152,991 $ 89,822 Interest and Dividends on Securities 5,097 4,782 4,143 9,879 7,987 Interest on Federal Funds Sold and Due From Banks 1,528 942 232 2,470 327 Total Interest Income 85,848 79,492 54,014 165,340 98,136 Interest Expense: Interest on Deposits 23,680 18,928 2,557 42,608 4,820 Interest on Borrowings 8,842 7,815 1,895 16,657 3,279 Total Interest Expense 32,522 26,743 4,452 59,265 8,099 Net Interest Income 53,326 52,749 49,562 106,075 90,037 Provision for Credit Losses 538 3,222 2,945 3,760 4,562 Net Interest Income After Provision for Credit Losses 52,788 49,527 46,617 102,315 85,475 Other Income: Service Charges on Deposit Accounts 2,413 2,281 2,086 4,694 3,891 Loss on Sales of Securities (61 ) (1 ) (8 ) (62 ) (39 ) Gain on Sales of Loans 494 611 186 1,105 251 Other Income 9,112 5,497 4,757 14,609 8,814 Total Other Income 11,958 8,388 7,021 20,346 12,917 Other Expenses: Salaries and Employee Benefits 22,339 23,176 21,408 45,515 41,111 Occupancy and Equipment Expense 5,112 5,001 4,914 10,113 9,327 Merger and Conversion-Related Expense 68 103 615 171 1,426 Other Expenses 12,183 10,399 9,460 22,582 18,253 Total Other Expenses 39,702 38,679 36,397 78,381 70,117 Income Before Income Taxes 25,044 19,236 17,241 44,280 28,275 Provision for Income Taxes 5,305 4,211 3,484 9,516 5,787 Net Income 19,739 15,025 13,757 34,764 22,488 Preferred Stock Dividends (1,350 ) (1,350 ) - (2,700 ) - Net Income Available to Common Shareholders $ 18,389 $ 13,675 $ 13,757 $ 32,064 $ 22,488
Business First Bancshares, Inc. Consolidated Net Interest Margin (Unaudited) Three Months Ended June 30, 2023 March 31, 2023 June 30, 2022 (Dollars in thousands) Average Interest Earned / Average Average Interest Earned / Average Average Interest Earned / Average Assets Interest-Earning Assets: Total Loans $ 4,861,783 $ 79,223 6.54 % $ 4,719,906 $ 73,768 6.34 % $ 3,894,899 $ 49,639 5.11 % Securities 916,421 5,097 2.23 % 927,491 4,782 2.09 % 966,960 4,143 1.72 % Interest-Bearing Deposit in Other Banks 117,086 1,528 5.23 % 57,478 942 6.65 % 122,175 232 0.76 % Total Interest-Earning Assets 5,895,290 85,848 5.84 % 5,704,875 79,492 5.65 % 4,984,034 54,014 4.35 % Allowance for Loan Losses (42,010 ) (41,533 ) (29,945 ) Noninterest-Earning Assets 421,376 459,721 417,550 Total Assets $ 6,274,656 $ 85,848 $ 6,123,063 $ 79,492 $ 5,371,639 $ 54,014 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 3,405,221 $ 23,680 2.79 % $ 3,339,493 $ 18,928 2.30 % $ 2,981,613 $ 2,557 0.34 % Subordinated Debt 108,619 1,251 4.62 % 110,647 1,389 5.09 % 111,107 1,300 4.69 % Subordinated Debt - Trust Preferred Securities 5,000 108 8.66 % 5,000 98 7.95 % 5,000 52 4.17 % Bank Term Funding Program 384,816 4,309 4.49 % 34,444 380 4.47 % - - 0.00 % Advances from Federal Home Loan Bank (FHLB) 298,324 3,038 4.08 % 517,934 5,842 4.57 % 171,224 506 1.19 % First National Bankers Bank Line of Credit - - 0.00 % - - 0.00 % 3,333 21 2.53 % Other Borrowings 22,109 136 2.47 % 20,895 106 2.06 % 24,927 16 0.26 % Total Interest-Bearing Liabilities 4,224,089 32,522 3.09 % 4,028,413 26,743 2.69 % 3,297,204 4,452 0.54 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits $ 1,410,983 $ 1,473,186 $ 1,596,174 Other Liabilities 40,329 32,875 27,830 Total Noninterest-Bearing Liabilities 1,451,312 1,506,061 1,624,004 Shareholders' Equity: Common Shareholders' Equity 527,325 516,659 450,431 Preferred Equity 71,930 71,930 - Total Shareholders' Equity 599,255 588,589 450,431 Total Liabilities and Shareholders' Equity $ 6,274,656 $ 6,123,063 $ 5,371,639 Net Interest Spread 2.75 % 2.96 % 3.81 % Net Interest Income $ 53,326 $ 52,749 $ 49,562 Net Interest Margin 3.63 % 3.75 % 3.99 % Overall Cost of Funds 2.31 % ` 1.97 % 0.36 % 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) Six Months Ended June 30, 2023 June 30, 2022 (Dollars in thousands) Average Interest Earned / Average Interest Earned / Average Assets Interest-Earning Assets: Total Loans $ 4,790,843 $ 152,991 6.44 % $ 3,640,470 $ 89,822 4.98 % Securities 921,958 9,879 2.16 % 986,107 7,987 1.63 % Interest-Bearing Deposit in Other Banks 87,282 2,470 5.71 % 171,662 327 0.38 % Total Interest-Earning Assets 5,800,083 165,340 5.75 % 4,798,239 98,136 4.12 % Allowance for Loan Losses (41,772 ) (29,602 ) Noninterest-Earning Assets 440,549 377,235 Total Assets $ 6,198,860 $ 165,340 $ 5,145,872 $ 98,136 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 3,372,358 $ 42,608 2.55 % $ 2,932,228 $ 4,820 0.33 % Subordinated Debt 109,634 2,640 4.86 % 101,231 2,415 4.81 % Subordinated Debt - Trust Preferred Securities 5,000 206 8.31 % 5,000 94 3.79 % Bank Term Funding Program 207,411 4,689 4.56 % - - 0.00 % Advances from Federal Home Loan Bank (FHLB) 410,348 8,880 4.36 % 125,800 729 1.17 % First National Bankers Bank Line of Credit - - 0.00 % 1,667 21 2.54 % Other Borrowings 21,502 242 2.27 % 22,297 20 0.18 % Total Interest-Bearing Liabilities 4,126,253 59,265 2.90 % 3,188,223 8,099 0.51 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits 1,442,084 1,483,095 Other Liabilities 36,601 26,338 Total Noninterest-Bearing Liabilities 1,478,685 1,509,433 Shareholders' Equity: Common Shareholders' Equity 521,992 448,216 Preferred Equity 71,930 - Total Shareholders' Equity 593,922 448,216 Total Liabilities and Shareholders' Equity $ 6,198,860 $ 5,145,872 Net Interest Spread 2.85 % 3.61 % Net Interest Income $ 106,075 $ 90,037 Net Interest Margin 3.69 % 3.78 % Overall Cost of Funds 2.15 % 0.35 % 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 Six Months Ended June 30, March 31, June 30, June 30, June 30, (Dollars in thousands, except per share data) 2023 2023 2022 2023 2022 Interest Income: Interest income $ 85,848 $ 79,492 $ 54,014 $ 165,340 $ 98,136 Core interest income 85,848 79,492 54,014 165,340 98,136 Interest Expense: Interest expense 32,522 26,743 4,452 59,265 8,099 Core interest expense 32,522 26,743 4,452 59,265 8,099 Provision for Credit Losses: (b) Provision for credit losses 538 3,222 2,945 3,760 4,562 Core provision expense 538 3,222 2,945 3,760 4,562 Other Income: Other income 11,958 8,388 7,021 20,346 12,917 Losses on former bank premises and equipment - - - - 717 Losses on sale of securities 61 1 8 62 39 Gain on extinguishment of debt (941 ) - - (941 ) - Core other income 11,078 8,389 7,029 19,467 13,673 Other Expense: Other expense 39,702 38,679 36,397 78,381 70,117 Acquisition-related expenses (2) (68 ) (103 ) (708 ) (171 ) (1,519 ) Occupancy and bank premises - storm repair - - (270 ) - (501 ) Core other expense 39,634 38,576 35,419 78,210 68,097 Pre-Tax Income: (a) Pre-tax income 25,044 19,236 17,241 44,280 28,275 Losses on former bank premises and equipment - - - - 717 Losses on sale of securities 61 1 8 62 39 Gain on extinguishment of debt (941 ) - - (941 ) - Acquisition-related expenses (2) 68 103 708 171 1,519 Occupancy and bank premises - storm repair - - 270 - 501 Core pre-tax income 24,232 19,340 18,227 43,572 31,051 Provision for Income Taxes: (1) Provision for income taxes 5,305 4,211 3,484 9,516 5,787 Tax on losses on former bank premises and equipment - - - - 151 Tax on losses on sale of securities 13 - 2 13 9 Gain on extinguishment of debt (199 ) - - (199 ) - Tax on acquisition-related expenses (2) 14 6 126 20 174 Tax on occupancy and bank premises - storm repair - - 57 - 106 Core provision for income taxes 5,133 4,217 3,669 9,350 6,227 Preferred Dividends: Preferred dividends 1,350 1,350 - 2,700 - Core preferred dividends 1,350 1,350 - 2,700 - Net Income Available to Common Shareholders: Net income available to common shareholders 18,389 13,675 13,757 32,064 22,488 Losses on former bank premises and equipment, net of tax - - - - 566 Losses on sale of securities, net of tax 48 1 6 49 30 Gain on extinguishment of debt, net of tax (742 ) - - (742 ) - Acquisition-related expenses (2), net of tax 54 97 582 151 1,345 Occupancy and bank premises - storm repair, net of tax - - 213 - 395 Core net income available to common shareholders $ 17,749 $ 13,773 $ 14,558 $ 31,522 $ 24,824 Pre-tax, pre-provision earnings available to common shareholders (a+b) $ 25,582 $ 22,458 $ 20,186 $ 48,040 $ 32,837 Losses on former bank premises and equipment - - - - 717 Loss on sale of securities 61 1 8 62 39 Gain on extinguishment of debt (941 ) - - (941 ) - Acquisition-related expenses (2) 68 103 708 171 1,519 Occupancy and bank premises - storm repair - - 270 - 501 Core pre-tax, pre-provision earnings $ 24,770 $ 22,562 $ 21,172 $ 47,332 $ 35,613 Average Diluted Common Shares Outstanding 25,333,372 25,222,308 22,656,174 25,278,145 21,916,641 Diluted Earnings Per Common Share: Diluted earnings per common share $ 0.73 $ 0.54 $ 0.61 $ 1.27 $ 1.03 Losses on former bank premises and equipment, net of tax - - - - 0.03 Loss on sale of securities, net of tax - - - - - Gain on extinguishment of debt, net of tax (0.03 ) - - (0.03 ) - Acquisition-related expenses (2), net of tax 0.00 0.01 0.02 0.01 0.06 Occupancy and bank premises -storm repair, net of tax - - 0.01 - 0.02 Core diluted earnings per common share $ 0.70 $ 0.55 $ 0.64 $ 1.25 $ 1.14 Pre-tax, pre-provision profit diluted earnings per common share $ 1.01 $ 0.89 $ 0.89 $ 1.90 $ 1.50 Losses on former bank premises and equipment - - - - 0.03 Loss on sale of securities - - - - - Gain on extinguishment of debt (0.04 ) - - (0.04 ) - Acquisition-related expenses (2) 0.01 - 0.03 0.01 0.07 Occupancy and bank premises - storm repair - - 0.01 - 0.02 Core pre-tax, pre-provision diluted earnings per common share $ 0.98 $ 0.89 $ 0.93 $ 1.87 $ 1.62 (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2023 and 2022. These rates approximated the marginal tax rates. (2) Includes merger and conversion-related expenses and salary and employee benefits.
Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) June 30, March 31, June 30, (Dollars in thousands, except per share data) 2023 2023 2022 Total Shareholders' (Common) Equity: Total shareholders' equity $ 600,968 $ 597,690 $ 445,459 Preferred stock (71,930 ) (71,930 ) - Total common shareholders' equity 529,038 525,760 445,459 Goodwill (88,543 ) (88,543 ) (88,842 ) Core deposit and customer intangible (12,993 ) (13,517 ) (15,093 ) Total tangible common equity $ 427,502 $ 423,700 $ 341,524 Total Assets: Total assets $ 6,454,649 $ 6,289,981 $ 5,530,383 Goodwill (88,543 ) (88,543 ) (88,842 ) Core deposit and customer intangible (12,993 ) (13,517 ) (15,093 ) Total tangible assets $ 6,353,113 $ 6,187,921 $ 5,426,448 Common shares outstanding 25,344,168 25,319,520 22,579,451 Book value per common share $ 20.87 $ 20.77 $ 19.73 Tangible book value per common share $ 16.87 $ 16.73 $ 15.13 Common equity to total assets 8.20 % 8.36 % 8.05 % Tangible common equity to tangible assets 6.73 % 6.85 % 6.29 %
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) 2023 2023 2022 2023 2022 Total Quarterly Average Assets $ 6,274,656 $ 6,123,063 $ 5,371,639 $ 6,198,860 $ 5,145,872 Total Quarterly Average Common Equity $ 527,325 $ 516,659 $ 450,431 $ 521,992 $ 448,216 Net Income Available to Common Shareholders: Net income available to common shareholders $ 18,389 $ 13,675 $ 13,757 $ 32,064 $ 22,488 Losses on former bank premises and equipment, net of tax - - - - 566 Losses on sale of securities, net of tax 48 1 6 49 30 Gain on extinguishment of debt (742 ) - - (742 ) - Acquisition-related expenses, net of tax 54 97 582 151 1,345 Occupancy and bank premises - storm repair, net of tax - - 213 - 395 Core net income available to common shareholders $ 17,749 $ 13,773 $ 14,558 $ 31,522 $ 24,824 Return to common shareholders on average assets (annualized) (2) 1.18 % 0.91 % 1.03 % 1.04 % 0.88 % Core return on average assets (annualized) (2) 1.13 % 0.91 % 1.09 % 1.03 % 0.97 % Return to common shareholders on average common equity (annualized) (2) 13.99 % 10.73 % 12.25 % 12.39 % 10.12 % Core return on average common equity (annualized) (2) 13.50 % 10.81 % 12.96 % 12.18 % 11.17 % Interest Income: Interest income $ 85,848 $ 79,492 $ 54,014 $ 165,340 $ 98,136 Core interest income 85,848 79,492 54,014 165,340 98,136 Interest Expense: Interest expense 32,522 26,743 4,452 59,265 8,099 Core interest expense 32,522 26,743 4,452 59,265 8,099 Other Income: Other income 11,958 8,388 7,021 20,346 12,917 Losses on former bank premises and equipment - - - - 717 Loss on sale of securities 61 1 8 62 39 Gain on extinguishment of debt (941 ) - - (941 ) - Core other income 11,078 8,389 7,029 19,467 13,673 Other Expense: Other expense 39,702 38,679 36,397 78,381 70,117 Acquisition-related expenses (68 ) (103 ) (708 ) (171 ) (1,519 ) Occupancy and bank premises - storm repair - - (270 ) - (501 ) Core other expense $ 39,634 $ 38,576 $ 35,419 $ 78,210 $ 68,097 Efficiency Ratio: Other expense (a) $ 39,702 $ 38,679 $ 36,397 $ 78,381 $ 70,117 Core other expense (c) $ 39,634 $ 38,576 $ 35,419 $ 78,210 $ 68,097 Net interest and other income (1) (b) $ 65,345 $ 61,138 $ 56,591 $ 126,483 $ 102,993 Core net interest and other income (1) (d) $ 64,404 $ 61,138 $ 56,591 $ 125,542 $ 103,710 Efficiency ratio (a/b) 60.76 % 63.27 % 64.32 % 61.97 % 68.08 % Core efficiency ratio (c/d) 61.54 % 63.10 % 62.59 % 62.30 % 65.66 % Total Average Interest-Earnings Assets $ 5,895,290 $ 5,704,875 $ 4,984,034 $ 5,800,083 $ 4,798,239 Net Interest Income: Net interest income $ 53,326 $ 52,749 $ 49,562 $ 106,075 $ 90,037 Loan discount accretion (2,059 ) (2,912 ) (2,588 ) (4,971 ) (3,508 ) Net interest income excluding loan discount accretion $ 51,267 $ 49,837 $ 46,974 $ 101,104 $ 86,529 Net interest margin (2) 3.63 % 3.75 % 3.99 % 3.69 % 3.78 % Net interest margin excluding loan discount accretion (2) 3.49 % 3.54 % 3.78 % 3.52 % 3.64 % Net interest spread (2) 2.75 % 2.96 % 3.81 % 2.85 % 3.61 % Net interest spread excluding loan discount accretion (2) 2.51 % 2.75 % 3.60 % 2.63 % 3.46 % (1) Excludes gains/losses on sales of securities. (2) Calculated utilizing an Actual/365 day count convention.
What is the net income of Business First Bancshares for Q2 2023?
Business First Bancshares reports net income of $18.4 million for Q2 2023.
What is the increase in deposits for Q2 2023?
Deposits increased by $208.3 million for Q2 2023, primarily driven by brokered deposits.
What is the increase in loans held for investment for Q2 2023?
Loans held for investment increased by $95.7 million for Q2 2023.
What is the net interest income for Q2 2023?
Net interest income is $53.3 million for Q2 2023.
What is the book value per common share at the end of Q2 2023?
Book value per common share is $20.87 at the end of Q2 2023.
