BATON ROUGE, La., Jan. 23, 2025 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended December 31, 2024. Business First reported net income available to common shareholders of $15.1 million or $0.51 per diluted common share, decreases of $1.4 million and $0.14, respectively, compared to the linked quarter ended September 30, 2024. On a non-GAAP basis, core net income for the quarter ended December 31, 2024, which excludes certain income and expenses, was $19.5 million or $0.66 per diluted common share, an increase of $2.2 million and decrease of $0.02, from the linked quarter. The quarter ended December 31, 2024, included the consummation of the Oakwood Bancshares, Inc. (Oakwood) transaction.
For the year ended December 31, 2024, Business First reported net income available to common stockholders of $59.7 million or $2.26 per diluted common share, decreases of $5.9 million and $0.34, respectively, from the prior year ended December 31, 2023. On a non-GAAP basis, core net income for the year ended December 31, 2024, which excludes certain income and expenses, was $65.7 million or $2.49 per diluted common share, decreases of $0.6 million and $0.13, respectively, from prior year ended December 31, 2023.
"I'm pleased to report the fourth quarter of 2024 positively reflected our year as a whole," said Jude Melville, chairman, president and CEO of Business First Bancshares. "Solid fundamental performance led to productive growth, increasing diversification of revenue sources, healthy asset quality, successful incorporation of new team members, and expansion of our client base, all of which point to an exciting 2025 in which we anticipate not only meeting but growing stakeholder expectations."
On Thursday, January 23, 2025, Business First's board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the fourth quarter in the amount of $0.14 per share of common stock. The preferred and common dividends will be paid on February 28, 2025, or as soon thereafter as practicable, to the shareholders of record as of February 15, 2025.
Quarterly Highlights
- Net Interest Margin (NIM) Expansion. For the quarter ended December 31, 2024, net interest income totaled $65.7 million and net interest margin and net interest spread were 3.61% and 2.77%, respectively, compared to $56.1 million, 3.51% and 2.54% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.0 million) were 3.56% and 2.72% for the quarter ended December 31, 2024, compared to 3.46% and 2.50% (excluding loan discount accretion of $0.7 million) for the linked quarter. The increase was driven by a reduction in Business First's overall cost of funding.
- Noninterest Income Investments. Business First again demonstrated increasing revenue from noninterest income sources. For the quarter ended December 31, 2024, the customer swap business produced revenue of $1.3 million, an increase of $0.4 million when compared to the linked quarter, along with continued progress in many of the other noninterest income revenue streams.
- Strong Deposit Growth. During the quarter ended December 31, 2024, deposits increased $870.4 million or 15.43%, 61.38% annualized, compared to the linked quarter. Excluding ending December 31, 2024 deposit balances from Oakwood, organic deposit growth was $156.8 million or 2.78%, 11.06% annualized.
- Measured Loan Growth. Loans held for investment increased $761.3 million or 14.58%, 58.02% annualized, from the linked quarter. Excluding ending December 31, 2024 loan balances from Oakwood, organic loan growth was $62.8 million or 1.20%, 4.79% annualized.
- Oakwood Acquisition. On October 1, 2024, Business First closed its previously announced acquisition of Oakwood and its wholly-owned subsidiary, Oakwood Bank. Oakwood had approximately $863.6 million of total assets, $700.2 million of loans, and $741.3 million of deposits as of September 30, 2024. Business First does not anticipate material synergies to be reflected in its earnings until after conversion in the fourth quarter.
- Consistent Core Performance. Return to common shareholders on average assets, on an annualized basis, was 0.78% for the quarter ended December 31, 2024, or 1.00% on a non-GAAP basis, with the difference largely attributable to the exclusion of acquisition-related costs, including $4.8 million provision expense for the Oakwood loan portfolio.
Statement of Financial Condition
Loans
Loans held for investment increased $761.3 million or 14.58%, 58.02% annualized, from the linked quarter. Excluding ending December 31, 2024 loan balances from Oakwood, organic loan growth was $62.8 million or 1.20%, 4.79% annualized. For the year ended December 31, 2024, organic loan growth was $291.0 million or 5.83%. Organic loan growth for the quarter was highlighted by a $54.3 million or 3.63% increase in the commercial and industrial (C&I) portfolio and $20.8 million or 2.80% in the residential real estate portfolio, as well as a reduction of $31.9 million or 4.87% in the construction and development (C&D) portfolio.
Organic production for the quarter was led by the Capital, Southwest, and New Orleans Louisiana regions which accounted for all of the net loan growth from the linked quarter based on unpaid principal balance. Based on unpaid principal balances, Texas-based loans represented approximately 41% of the overall loan portfolio as of December 31, 2024, with the 6% increase from linked quarter attributed to the Oakwood acquisition.
Credit Quality
Credit quality metrics remain solid, with improvement during the quarter from the acquisition of the Oakwood portfolio as well as in the organic portfolio through resolution of nonaccrual loans. The ratio of nonperforming loans compared to loans held for investment decreased 8 basis points to 0.42% at December 31, 2024, while the ratio of nonperforming assets compared to total assets decreased 1 basis point to 0.39%. The decreases were attributable to the acquired loans from the Oakwood portfolio and the $1.1 million decrease in nonperforming loans compared to the linked quarter.
Securities
The securities portfolio decreased $22.5 million, or 2.46%, from the linked quarter, impacted by $21.4 million in negative fair value adjustments. The securities portfolio, based on estimated fair value, represented 11.37% of total assets as of December 31, 2024.
Deposits
Deposits increased $870.4 million or 15.43%, 61.38% annualized, for the quarter ended December 31, 2024, compared to the linked quarter. Excluding ending December 31, 2024 deposit balances from Oakwood, organic deposit growth was $156.8 million or 2.78%, 11.06% annualized. For the year ended December 31, 2024, organic deposit growth was $548.9 million or 10.46%.
Organic deposit growth for the quarter was highlighted by increases in money market accounts and noninterest bearing accounts, with increases of $51.8 million or 2.49% and $33.3 million or 2.79%, respectively, compared to the linked quarter.
Borrowings
Borrowings decreased $10.3 million, or 2.09%, from the linked quarter due primarily to a reduction in short-term Federal Home Loan Bank advances.
Shareholders' Equity
Shareholders' equity increased $99.9 million, of which $103.8 million was due to the acquisition of Oakwood, during the quarter ended December 31, 2024. Accumulated other comprehensive income (AOCI) decreased $16.9 million, or 36.52%, during the fourth quarter due to negative after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $24.62 at December 31, 2024, compared to $24.59 at September 30, 2024. On a non-GAAP basis, tangible book value per common share decreased from $20.60 at September 30, 2024, to $19.92 at December 31, 2024 due largely to the decreases in AOCI which accounted for $0.57 of the decrease.
Results of Operations
Net Interest Income
For the quarter ended December 31, 2024, net interest income totaled $65.7 million, compared to $56.1 million from the linked quarter. Loan and interest-earning asset yields of 7.05% and 6.38%, decreased 7 and 4 basis points, respectively, compared to 7.12% and 6.42% from the linked quarter due to recent decline in the interest rate environment. However, net interest margin and net interest spread were 3.61% and 2.77% compared to 3.51% and 2.54% for the linked quarter. The overall cost of funds, which included noninterest-bearing deposits, declined 14 bps from 3.07% from the linked quarter to 2.93% for the quarter ended December 31, 2024 due to the interest rate environment, along with decisive deposit rate management.
Non-GAAP net interest income (excluding loan discount accretion of $1.0 million) totaled $64.7 million for the quarter ended December 31, 2024, compared to $55.4 million (excluding loan discount accretion of $0.7 million) for the linked quarter. Non- GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.0 million) were 3.56% and 2.72%, respectively, for the quarter ended December 31, 2024, compared to 3.46% and 2.50% (excluding loan discount accretion of $0.7 million) for the linked quarter. Excluding loan discount accretion, loan yields decreased 9 basis points to 6.98% from 7.07%, and interest earnings asset yields decreased 5 basis points to 6.33% from 6.38%, compared to the linked quarter.
Provision for Credit Losses
During the quarter ended December 31, 2024, Business First recorded a provision for credit losses of $6.7 million, compared to $1.7 million from the linked quarter. The current quarter's reserve growth was largely associated with a $4.8 million increase due to the initial acquisition of Oakwood, along with loan growth, net charge-offs, offset by slight improvements in the economic forecasts.
Other Income
For the quarter ended December 31, 2024, other income increased $1.1 million or 10.05%, compared to the linked quarter. The net increase was largely attributable to a a $351,000 increase in swap fee income, $311,000 increase in bank owned life insurance due to a benefit payout and the addition of Oakwood, and $205,000 increase in debit card and ATM fee income.
Other Expenses
For the quarter ended December 31, 2024, other expenses increased by $7.1 million or 16.77%, compared to the linked quarter. The increase was largely attributable to expenses associated with the acquisition of Oakwood, approximately $4.8 million, along with increases in advertising and promotions, $653,000, salaries and employee benefits (excluding Oakwood), $533,000, and ad valorem/shareholders taxes, $457,000.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.78% and 8.23% for the quarter ended December 31, 2024, compared to 0.97% and 10.76%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.00% and 10.58% for the quarter ended December 31, 2024, compared to 1.01% and 11.23%, respectively, for the linked quarter.
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Thursday, January 23, 2025, at 4:00 p.m. Central Time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 3805642, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/t4dk4pym. On the day of the presentation, the corresponding slide presentation will be available to view on the b1BANK 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 $7.9 billion in assets, $6.9 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 Texas 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.
| Business First Bancshares, Inc. | |||||||||
| Selected Financial Information | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| December 31, | September 30, | December 31, | |||||||
| (Dollars in thousands) | 2024 | 2024 | 2023 | ||||||
| Balance Sheet Ratios | |||||||||
| Loans (HFI) to Deposits | 91.86 | % | 92.54 | % | 95.12 | % | |||
| Shareholders' Equity to Assets Ratio | 10.18 | % | 10.15 | % | 9.78 | % | |||
| Loans Receivable Held for Investment (HFI) | |||||||||
| Commercial | $ | 1,868,675 | $ | 1,496,480 | $ | 1,358,838 | |||
| Real Estate: | |||||||||
| Commercial | 2,483,223 | 2,256,370 | 2,217,928 | ||||||
| Construction | 670,502 | 654,353 | 669,798 | ||||||
| Residential | 884,533 | 743,878 | 682,394 | ||||||
| Total Real Estate | 4,038,258 | 3,654,601 | 3,570,120 | ||||||
| Consumer and Other | 74,466 | 69,037 | 63,827 | ||||||
| Total Loans (Held for Investment) | $ | 5,981,399 | $ | 5,220,118 | $ | 4,992,785 | |||
| Allowance for Loan Losses | |||||||||
| Balance, Beginning of Period | $ | 42,154 | $ | 41,412 | $ | 41,129 | |||
| Oakwood - PCD ALLL | 8,410 | - | - | ||||||
| Charge-offs - Quarterly | (2,290 | ) | (1,424 | ) | (1,039 | ) | |||
| Recoveries - Quarterly | 654 | 295 | 152 | ||||||
| Provision for Loan Losses - Quarterly | 5,912 | 1,871 | 172 | ||||||
| Balance, End of Period | $ | 54,840 | $ | 42,154 | $ | 40,414 | |||
| Allowance for Loan Losses to Total Loans (HFI) | 0.92 | % | 0.81 | % | 0.81 | % | |||
| Allowance for Credit Losses to Total Loans (HFI) (1) | 0.98 | % | 0.86 | % | 0.88 | % | |||
| Net Charge-offs (Recoveries) to Average Quarterly Total Loans | 0.03 | % | 0.02 | % | 0.02 | % | |||
| Remaining Loan Purchase Discount | $ | 12,121 | $ | 9,003 | $ | 12,286 | |||
| Nonperforming Assets | |||||||||
| Nonperforming Loans: | |||||||||
| Nonaccrual Loans | $ | 24,147 | $ | 25,874 | $ | 16,943 | |||
| Loans Past Due 90 Days or More | 860 | 185 | 127 | ||||||
| Total Nonperforming Loans | 25,007 | 26,059 | 17,070 | ||||||
| Other Nonperforming Assets: | |||||||||
| Other Real Estate Owned | 5,529 | 1,787 | 1,685 | ||||||
| Other Nonperforming Assets | - | - | - | ||||||
| Total Other Nonperforming Assets | 5,529 | 1,787 | 1,685 | ||||||
| Total Nonperforming Assets | $ | 30,536 | $ | 27,846 | $ | 18,755 | |||
| Nonperforming Loans to Total Loans (HFI) | 0.42 | % | 0.50 | % | 0.34 | % | |||
| Nonperforming Assets to Total Assets | 0.39 | % | 0.40 | % | 0.28 | % | |||
| (1) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments. | |||||||||
| Business First Bancshares, Inc. | ||||||||||||||||
| Selected Financial Information | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three Months Ended | Year Ended | |||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||
| (Dollars in thousands, except per share data) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Per Share Data | ||||||||||||||||
| Basic Earnings per Common Share | $ | 0.52 | $ | 0.65 | $ | 0.58 | $ | 2.27 | $ | 2.62 | ||||||
| Diluted Earnings per Common Share | 0.51 | 0.65 | 0.57 | 2.26 | 2.59 | |||||||||||
| Dividends per Common Share | 0.14 | 0.14 | 0.14 | 0.56 | 0.50 | |||||||||||
| Book Value per Common Share | 24.62 | 24.59 | 22.58 | 24.62 | 22.58 | |||||||||||
| Average Common Shares Outstanding | 29,311,111 | 25,289,094 | 25,116,688 | 26,253,846 | 25,079,106 | |||||||||||
| Average Diluted Common Shares Outstanding | 29,520,781 | 25,440,247 | 25,333,913 | 26,452,084 | 25,296,200 | |||||||||||
| End of Period Common Shares Outstanding | 29,552,358 | 25,519,501 | 25,351,809 | 29,552,358 | 25,351,809 | |||||||||||
| Annualized Performance Ratios | ||||||||||||||||
| Return to Common Shareholders on Average Assets (1) | 0.78 | % | 0.97 | % | 0.88 | % | 0.86 | % | 1.04 | % | ||||||
| Return to Common Shareholders on Average Common Equity (1) | 8.23 | % | 10.76 | % | 10.54 | % | 9.54 | % | 12.36 | % | ||||||
| Net Interest Margin (1) | 3.61 | % | 3.51 | % | 3.50 | % | 3.48 | % | 3.62 | % | ||||||
| Net Interest Spread (1) | 2.77 | % | 2.54 | % | 2.53 | % | 2.55 | % | 2.72 | % | ||||||
| Efficiency Ratio (2) | 63.91 | % | 63.45 | % | 63.36 | % | 65.42 | % | 61.61 | % | ||||||
| Total Quarterly/Year-to-Date Average Assets | $ | 7,721,338 | $ | 6,788,644 | $ | 6,494,861 | $ | 6,973,735 | $ | 6,341,880 | ||||||
| Total Quarterly/Year-to-Date Average Common Equity | 731,820 | 610,018 | 544,628 | 625,914 | 530,956 | |||||||||||
| Other Expenses | ||||||||||||||||
| Salaries and Employee Benefits | $ | 28,101 | $ | 24,877 | $ | 22,609 | $ | 103,917 | $ | 90,611 | ||||||
| Occupancy and Bank Premises | 3,166 | 2,630 | 2,387 | 10,944 | 9,518 | |||||||||||
| Depreciation and Amortization | 2,278 | 1,844 | 1,647 | 7,540 | 6,767 | |||||||||||
| Data Processing | 3,856 | 2,881 | 2,490 | 11,957 | 9,034 | |||||||||||
| FDIC Assessment Fees | 1,009 | 887 | 841 | 3,598 | 3,645 | |||||||||||
| Legal and Other Professional Fees | 975 | 873 | 833 | 3,756 | 3,173 | |||||||||||
| Advertising and Promotions | 1,710 | 1,057 | 1,052 | 4,878 | 4,628 | |||||||||||
| Utilities and Communications | 775 | 716 | 700 | 2,883 | 2,899 | |||||||||||
| Ad Valorem Shares Tax | 1,357 | 900 | 265 | 4,057 | 3,160 | |||||||||||
| Directors' Fees | 290 | 245 | 262 | 1,085 | 1,079 | |||||||||||
| Other Real Estate Owned Expenses and Write-Downs | 182 | 11 | 504 | 301 | 687 | |||||||||||
| Merger and Conversion-Related Expenses | 168 | 319 | 63 | 1,236 | 236 | |||||||||||
| Other | 5,703 | 5,210 | 6,061 | 21,500 | 21,265 | |||||||||||
| Total Other Expenses | $ | 49,570 | $ | 42,450 | $ | 39,714 | $ | 177,652 | $ | 156,702 | ||||||
| Other Income | ||||||||||||||||
| Service Charges on Deposit Accounts | $ | 2,878 | $ | 2,723 | $ | 2,470 | $ | 10,577 | $ | 9,704 | ||||||
| Gain (Loss) on Sales of Securities | 21 | (13 | ) | (2,503 | ) | 7 | (2,565 | ) | ||||||||
| Debit Card and ATM Fee Income | 2,069 | 1,864 | 1,793 | 7,659 | 6,590 | |||||||||||
| Bank-Owned Life Insurance Income | 990 | 679 | 572 | 2,875 | 2,247 | |||||||||||
| Gain on Sales of Loans | 252 | 122 | 546 | 2,973 | 1,972 | |||||||||||
| Mortgage Origination Income | 36 | 98 | 47 | 238 | 285 | |||||||||||
| Fees and Brokerage Commission | 2,063 | 1,968 | 1,710 | 7,844 | 7,247 | |||||||||||
| Gain (Loss) on Sales of Other Real Estate Owned | 40 | (16 | ) | 338 | 89 | 646 | ||||||||||
| Loss on Disposal of Other Assets | - | - | (1 | ) | (15 | ) | (15 | ) | ||||||||
| Gain on Sale of Branch | - | - | 13 | - | 945 | |||||||||||
| Gain on Extinguishment of Debt | - | - | - | - | 1,458 | |||||||||||
| Swap Fee Income | 1,288 | 937 | 964 | 2,739 | 964 | |||||||||||
| Pass-Through Income (Loss) from Other Investments | 186 | 335 | (1,028 | ) | 1,208 | 1,946 | ||||||||||
| Other | 2,034 | 2,077 | 1,492 | 7,999 | 5,218 | |||||||||||
| Total Other Income | $ | 11,857 | $ | 10,774 | $ | 6,413 | $ | 44,193 | $ | 36,642 | ||||||
| (1) Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an actual 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) | 2024 | 2024 | 2023 | ||||||
| Assets | |||||||||
| Cash and Due From Banks | $ | 319,098 | $ | 213,199 | $ | 226,110 | |||
| Federal Funds Sold | 197,669 | 169,980 | 151,134 | ||||||
| Securities Purchased under Agreements to Resell | 50,835 | 25,879 | - | ||||||
| Securities Available for Sale, at Fair Values | 893,549 | 916,091 | 879,571 | ||||||
| Mortgage Loans Held for Sale | 717 | - | 835 | ||||||
| Loans and Lease Receivable | 5,981,399 | 5,220,118 | 4,992,785 | ||||||
| Allowance for Loan Losses | (54,840 | ) | (42,154 | ) | (40,414 | ) | |||
| Net Loans and Lease Receivable | 5,926,559 | 5,177,964 | 4,952,371 | ||||||
| Premises and Equipment, Net | 81,953 | 67,617 | 69,480 | ||||||
| Accrued Interest Receivable | 35,872 | 32,547 | 29,916 | ||||||
| Other Equity Securities | 41,100 | 39,555 | 33,942 | ||||||
| Other Real Estate Owned | 5,529 | 1,787 | 1,685 | ||||||
| Cash Value of Life Insurance | 117,645 | 101,362 | 96,478 | ||||||
| Deferred Taxes, Net | 29,591 | 20,852 | 27,323 | ||||||
| Goodwill | 121,572 | 91,527 | 88,391 | ||||||
| Core Deposit and Customer Intangibles | 17,252 | 10,326 | 11,895 | ||||||
| Other Assets | 18,149 | 19,963 | 15,419 | ||||||
| Total Assets | $ | 7,857,090 | $ | 6,888,649 | $ | 6,584,550 | |||
| Liabilities | |||||||||
| Deposits | |||||||||
| Noninterest-Bearing | $ | 1,357,045 | $ | 1,190,942 | $ | 1,299,090 | |||
| Interest-Bearing | 5,154,286 | 4,450,004 | 3,949,700 | ||||||
| Total Deposits | 6,511,331 | 5,640,946 | 5,248,790 | ||||||
| Securities Sold Under Agreements to Repurchase | 22,621 | 21,529 | 18,885 | ||||||
| Bank Term Funding Program | - | - | 300,000 | ||||||
| Federal Home Loan Bank Borrowings | 355,875 | 367,202 | 211,198 | ||||||
| Subordinated Debt | 99,760 | 99,818 | 99,990 | ||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 5,000 | 5,000 | ||||||
| Accrued Interest Payable | 5,969 | 3,752 | 14,841 | ||||||
| Other Liabilities | 57,068 | 50,878 | 41,587 | ||||||
| Total Liabilities | 7,057,624 | 6,189,125 | 5,940,291 | ||||||
| Shareholders' Equity | |||||||||
| Preferred Stock | 71,930 | 71,930 | 71,930 | ||||||
| Common Stock | 29,552 | 25,520 | 25,352 | ||||||
| Additional Paid-In Capital | 500,024 | 398,237 | 397,447 | ||||||
| Retained Earnings | 260,958 | 249,981 | 216,115 | ||||||
| Accumulated Other Comprehensive Loss | (62,998 | ) | (46,144 | ) | (66,585 | ) | |||
| Total Shareholders' Equity | 799,466 | 699,524 | 644,259 | ||||||
| Total Liabilities and Shareholders' Equity | $ | 7,857,090 | $ | 6,888,649 | $ | 6,584,550 | |||
| 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) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||
| Interest Income: | ||||||||||||||
| Interest and Fees on Loans | $ | 104,697 | $ | 93,307 | $ | 85,761 | $ | 374,555 | $ | 323,327 | ||||
| Interest and Dividends on Securities | 7,310 | 6,417 | 5,193 | 25,259 | 20,125 | |||||||||
| Interest on Federal Funds Sold and Due From Banks | 4,135 | 3,017 | 3,711 | 14,950 | 9,875 | |||||||||
| Total Interest Income | 116,142 | 102,741 | 94,665 | 414,764 | 353,327 | |||||||||
| Interest Expense: | ||||||||||||||
| Interest on Deposits | 44,862 | 41,303 | 34,190 | 165,094 | 106,908 | |||||||||
| Interest on Borrowings | 5,551 | 5,324 | 6,715 | 22,287 | 31,290 | |||||||||
| Total Interest Expense | 50,413 | 46,627 | 40,905 | 187,381 | 138,198 | |||||||||
| Net Interest Income | 65,729 | 56,114 | 53,760 | 227,383 | 215,129 | |||||||||
| Provision for Credit Losses | 6,712 | 1,665 | 119 | 10,873 | 4,483 | |||||||||
| Net Interest Income After Provision for Credit Losses | 59,017 | 54,449 | 53,641 | 216,510 | 210,646 | |||||||||
| Other Income: | ||||||||||||||
| Service Charges on Deposit Accounts | 2,878 | 2,723 | 2,470 | 10,577 | 9,704 | |||||||||
| Gain (Loss) on Sales of Securities | 21 | (13 | ) | (2,503 | ) | 7 | (2,565 | ) | ||||||
| Gain on Sales of Loans | 252 | 122 | 546 | 2,973 | 1,972 | |||||||||
| Other Income | 8,706 | 7,942 | 5,900 | 30,636 | 27,531 | |||||||||
| Total Other Income | 11,857 | 10,774 | 6,413 | 44,193 | 36,642 | |||||||||
| Other Expenses: | ||||||||||||||
| Salaries and Employee Benefits | 28,101 | 24,877 | 22,609 | 103,917 | 90,611 | |||||||||
| Occupancy and Equipment Expense | 7,087 | 5,828 | 5,301 | 23,989 | 20,859 | |||||||||
| Merger and Conversion-Related Expense | 168 | 319 | 63 | 1,236 | 236 | |||||||||
| Other Expenses | 14,214 | 11,426 | 11,741 | 48,510 | 44,996 | |||||||||
| Total Other Expenses | 49,570 | 42,450 | 39,714 | 177,652 | 156,702 | |||||||||
| Income Before Income Taxes | 21,304 | 22,773 | 20,340 | 83,051 | 90,586 | |||||||||
| Provision for Income Taxes | 4,816 | 4,930 | 4,516 | 17,944 | 19,543 | |||||||||
| Net Income | 16,488 | 17,843 | 15,824 | 65,107 | 71,043 | |||||||||
| Preferred Stock Dividends | 1,350 | 1,351 | 1,350 | 5,401 | 5,401 | |||||||||
| Net Income Available to Common Shareholders | $ | 15,138 | $ | 16,492 | $ | 14,474 | $ | 59,706 | $ | 65,642 | ||||
| Business First Bancshares, Inc. | |||||||||||||||||||||||
| Consolidated Net Interest Margin | |||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||
| December 31, 2024 | September 30, 2024 | December 31, 2023 | |||||||||||||||||||||
| (Dollars in thousands) | Average Outstanding Balance | Interest Earned / Interest Paid | Average Yield / Rate | Average Outstanding Balance | Interest Earned / Interest Paid | Average Yield / Rate | Average Outstanding Balance | Interest Earned / Interest Paid | Average Yield / Rate | ||||||||||||||
| Assets | |||||||||||||||||||||||
| Interest-Earning Assets: | |||||||||||||||||||||||
| Total Loans | $ | 5,911,183 | $ | 104,697 | 7.05 | % | $ | 5,212,948 | $ | 93,307 | 7.12 | % | $ | 4,949,954 | $ | 85,761 | 6.87 | % | |||||
| Securities | 980,566 | 7,310 | 2.97 | % | 924,012 | 6,417 | 2.76 | % | 865,372 | 5,193 | 2.38 | % | |||||||||||
| Interest-Bearing Deposit in Other Banks | 346,035 | 4,135 | 4.75 | % | 227,035 | 3,017 | 5.29 | % | 271,004 | 3,711 | 5.43 | % | |||||||||||
| Total Interest-Earning Assets | 7,237,784 | 116,142 | 6.38 | % | 6,363,995 | 102,741 | 6.42 | % | 6,086,330 | 94,665 | 6.17 | % | |||||||||||
| Allowance for Loan Losses | (52,130 | ) | (41,554 | ) | (40,996 | ) | |||||||||||||||||
| Noninterest-Earning Assets | 535,684 | 466,203 | 449,527 | ||||||||||||||||||||
| Total Assets | $ | 7,721,338 | $ | 116,142 | $ | 6,788,644 | $ | 102,741 | $ | 6,494,861 | $ | 94,665 | |||||||||||
| Liabilities and Shareholders' Equity | |||||||||||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||||||||||
| Interest-Bearing Deposits | $ | 5,053,759 | $ | 44,862 | 3.53 | % | $ | 4,308,780 | $ | 41,303 | 3.81 | % | $ | 3,816,474 | $ | 34,190 | 3.55 | % | |||||
| Subordinated Debt | 99,797 | 1,331 | 5.31 | % | 99,854 | 1,353 | 5.39 | % | 100,009 | 1,320 | 5.24 | % | |||||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 107 | 8.51 | % | 5,000 | 114 | 9.07 | % | 5,000 | 113 | 8.97 | % | |||||||||||
| Bank Term Funding Program | - | - | 0.00 | % | - | - | 0.00 | % | 300,000 | 3,202 | 4.23 | % | |||||||||||
| Advances from Federal Home Loan Bank (FHLB) | 373,236 | 3,975 | 4.24 | % | 347,476 | 3,723 | 4.26 | % | 213,280 | 1,947 | 3.62 | % | |||||||||||
| Other Borrowings | 21,569 | 138 | 2.55 | % | 20,971 | 134 | 2.54 | % | 20,772 | 133 | 2.54 | % | |||||||||||
| Total Interest-Bearing Liabilities | 5,553,361 | 50,413 | 3.61 | % | 4,782,081 | 46,627 | 3.88 | % | 4,455,535 | 40,905 | 3.64 | % | |||||||||||
| Noninterest-Bearing Liabilities: | |||||||||||||||||||||||
| Noninterest-Bearing Deposits | 1,292,623 | $ | 1,269,282 | $ | 1,368,452 | ||||||||||||||||||
| Other Liabilities | 71,604 | 55,333 | 54,316 | ||||||||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,364,227 | 1,324,615 | 1,422,768 | ||||||||||||||||||||
| Shareholders' Equity: | |||||||||||||||||||||||
| Common Shareholders' Equity | 731,820 | 610,018 | 544,628 | ||||||||||||||||||||
| Preferred Equity | 71,930 | 71,930 | 71,930 | ||||||||||||||||||||
| Total Shareholders' Equity | 803,750 | 681,948 | 616,558 | ||||||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 7,721,338 | $ | 6,788,644 | $ | 6,494,861 | |||||||||||||||||
| Net Interest Spread | 2.77 | % | 2.54 | % | 2.53 | % | |||||||||||||||||
| Net Interest Income | $ | 65,729 | $ | 56,114 | $ | 53,760 | |||||||||||||||||
| Net Interest Margin | 3.61 | % | 3.51 | % | 3.50 | % | |||||||||||||||||
| Overall Cost of Funds | 2.93 | % | 3.07 | % | 2.79 | % | |||||||||||||||||
| NOTE: Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an Actual/365/366 day count convention. | |||||||||||||||||||||||
| Business First Bancshares, Inc. | |||||||||||||||
| Consolidated Net Interest Margin | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Year Ended | |||||||||||||||
| December 31, 2024 | December 31, 2023 | ||||||||||||||
| (Dollars in thousands) | Average Outstanding Balance | Interest Earned / Interest Paid | Average Yield / Rate | Average Outstanding Balance | Interest Earned / Interest Paid | Average Yield / Rate | |||||||||
| Assets | |||||||||||||||
| Interest-Earning Assets: | |||||||||||||||
| Total Loans | $ | 5,327,466 | $ | 374,555 | 7.03 | % | $ | 4,859,637 | $ | 323,327 | 6.65 | % | |||
| Securities | 921,393 | 25,259 | 2.74 | % | 898,771 | 20,125 | 2.24 | % | |||||||
| Interest-Bearing Deposit in Other Banks | 287,474 | 14,950 | 5.20 | % | 180,997 | 9,875 | 5.46 | % | |||||||
| Total Interest-Earning Assets | 6,536,333 | 414,764 | 6.35 | % | 5,939,405 | 353,327 | 5.95 | % | |||||||
| Allowance for Loan Losses | (43,931 | ) | (41,665 | ) | |||||||||||
| Noninterest-Earning Assets | 481,333 | 444,140 | |||||||||||||
| Total Assets | $ | 6,973,735 | $ | 414,764 | $ | 6,341,880 | $ | 353,327 | |||||||
| Liabilities and Shareholders' Equity | |||||||||||||||
| Interest-Bearing Liabilities: | |||||||||||||||
| Interest-Bearing Deposits | $ | 4,427,233 | $ | 165,094 | 3.73 | % | $ | 3,566,216 | $ | 106,908 | 3.00 | % | |||
| Subordinated Debt | 99,884 | 5,394 | 5.40 | % | 105,369 | 5,323 | 5.05 | % | |||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 447 | 8.94 | % | 5,000 | 430 | 8.60 | % | |||||||
| Bank Term Funding Program | 64,754 | 2,788 | 4.31 | % | 253,706 | 11,313 | 4.46 | % | |||||||
| Advances from Federal Home Loan Bank (FHLB) | 317,462 | 13,164 | 4.15 | % | 329,726 | 13,702 | 4.16 | % | |||||||
| Other Borrowings | 19,464 | 494 | 2.54 | % | 21,825 | 522 | 2.39 | % | |||||||
| Total Interest-Bearing Liabilities | 4,933,797 | 187,381 | 3.80 | % | 4,281,842 | 138,198 | 3.23 | % | |||||||
| Noninterest-Bearing Liabilities: | |||||||||||||||
| Noninterest-Bearing Deposits | 1,285,445 | 1,412,979 | |||||||||||||
| Other Liabilities | 56,649 | 44,173 | |||||||||||||
| Total Noninterest-Bearing Liabilities | 1,342,094 | 1,457,152 | |||||||||||||
| Shareholders' Equity: | |||||||||||||||
| Common Shareholders' Equity | 625,914 | 530,956 | |||||||||||||
| Preferred Equity | 71,930 | 71,930 | |||||||||||||
| Total Shareholders' Equity | 697,844 | 602,886 | |||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 6,973,735 | $ | 6,341,880 | |||||||||||
| Net Interest Spread | 2.55 | % | 2.72 | % | |||||||||||
| Net Interest Income | $ | 227,383 | $ | 215,129 | |||||||||||
| Net Interest Margin | 3.48 | % | 3.62 | % | |||||||||||
| Overall Cost of Funds | 3.01 | % | 2.43 | % | |||||||||||
| NOTE: Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an Actual/365/366 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) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Interest Income: | ||||||||||||||||
| Interest income | $ | 116,142 | $ | 102,741 | $ | 94,665 | $ | 414,764 | $ | 353,327 | ||||||
| Core interest income | 116,142 | 102,741 | 94,665 | 414,764 | 353,327 | |||||||||||
| Interest Expense: | ||||||||||||||||
| Interest expense | 50,413 | 46,627 | 40,905 | 187,381 | 138,198 | |||||||||||
| Core interest expense | 50,413 | 46,627 | 40,905 | 187,381 | 138,198 | |||||||||||
| Provision for Credit Losses: (b) | ||||||||||||||||
| Provision for credit losses | 6,712 | 1,665 | 119 | 10,873 | 4,483 | |||||||||||
| CECL Oakwood impact (3) | (4,824 | ) | - | - | (4,824 | ) | - | |||||||||
| Core provision expense | 1,888 | 1,665 | 119 | 6,049 | 4,483 | |||||||||||
| Other Income: | ||||||||||||||||
| Other income | 11,857 | 10,774 | 6,413 | 44,193 | 36,642 | |||||||||||
| Gain on former bank premises and equipment | - | - | - | (50 | ) | - | ||||||||||
| (Gain) loss on sale of securities | (21 | ) | 13 | 2,503 | (7 | ) | 2,565 | |||||||||
| Gain on sale of branch | - | - | (13 | ) | - | (945 | ) | |||||||||
| Gain on extinguishment of debt | - | - | - | - | (1,458 | ) | ||||||||||
| Core other income | 11,836 | 10,787 | 8,903 | 44,136 | 36,804 | |||||||||||
| Other Expense: | ||||||||||||||||
| Other expense | 49,570 | 42,450 | 39,714 | 177,652 | 156,702 | |||||||||||
| Acquisition-related expenses (2) | (168 | ) | (319 | ) | (63 | ) | (1,621 | ) | (236 | ) | ||||||
| Write-down on former bank premises | - | - | (432 | ) | - | (432 | ) | |||||||||
| Core conversion expenses | (463 | ) | (511 | ) | - | (974 | ) | - | ||||||||
| Core other expense | 48,939 | 41,620 | 39,219 | 175,057 | 156,034 | |||||||||||
| Pre-Tax Income: (a) | ||||||||||||||||
| Pre-tax income | 21,304 | 22,773 | 20,340 | 83,051 | 90,586 | |||||||||||
| CECL Oakwood impact (3) | 4,824 | - | - | 4,824 | - | |||||||||||
| Gain on former bank premises and equipment | - | - | - | (50 | ) | - | ||||||||||
| (Gain) loss on sale of securities | (21 | ) | 13 | 2,503 | (7 | ) | 2,565 | |||||||||
| Gain on sale of branch | - | - | (13 | ) | - | (945 | ) | |||||||||
| Gain on extinguishment of debt | - | - | - | - | (1,458 | ) | ||||||||||
| Acquisition-related expenses (2) | 168 | 319 | 63 | 1,621 | 236 | |||||||||||
| Write-down on former bank premises | - | - | 432 | - | 432 | |||||||||||
| Core conversion expenses | 463 | 511 | - | 974 | - | |||||||||||
| Core pre-tax income | 26,738 | 23,616 | 23,325 | 90,413 | 91,416 | |||||||||||
| Provision for Income Taxes: (1) | ||||||||||||||||
| Provision for income taxes | 4,816 | 4,930 | 4,516 | 17,944 | 19,543 | |||||||||||
| Tax on CECL Oakwood impact (3) | 1,019 | - | - | 1,019 | - | |||||||||||
| Tax on gain on former bank premises and equipment | - | - | - | (11 | ) | - | ||||||||||
| Tax on (gain) loss on sale of securities | (4 | ) | 3 | 529 | (1 | ) | 542 | |||||||||
| Tax on gain on sale of branch | - | - | (3 | ) | - | (200 | ) | |||||||||
| Tax on gain on extinguishment of debt | - | - | - | - | (308 | ) | ||||||||||
| Tax on acquisition-related expenses (2) | 6 | - | 1 | 97 | 21 | |||||||||||
| Tax on write-down on former bank premises | - | 91 | - | 91 | ||||||||||||
| Tax on core conversion expenses | 97 | 108 | - | 205 | - | |||||||||||
| Core provision for income taxes | 5,934 | 5,041 | 5,134 | 19,252 | 19,689 | |||||||||||
| Preferred Dividends: | ||||||||||||||||
| Preferred dividends | 1,350 | 1,351 | 1,350 | 5,401 | 5,401 | |||||||||||
| Core preferred dividends | 1,350 | 1,351 | 1,350 | 5,401 | 5,401 | |||||||||||
| Net Income Available to Common Shareholders: | ||||||||||||||||
| Net income available to common shareholders | 15,138 | 16,492 | 14,474 | 59,706 | 65,642 | |||||||||||
| CECL Oakwood impact (3), net of tax | 3,805 | - | - | 3,805 | - | |||||||||||
| Gain on former bank premises and equipment, net of tax | - | - | - | (39 | ) | - | ||||||||||
| (Gain) loss on sale of securities, net of tax | (17 | ) | 10 | 1,974 | (6 | ) | 2,023 | |||||||||
| Gain on sale of branch, net of tax | - | - | (10 | ) | - | (745 | ) | |||||||||
| Gain on extinguishment of debt, net of tax | - | - | - | - | (1,150 | ) | ||||||||||
| Acquisition-related expenses (2), net of tax | 162 | 319 | 62 | 1,524 | 215 | |||||||||||
| Write-down on former bank premises, net of tax | - | - | 341 | - | 341 | |||||||||||
| Core conversion expenses, net of tax | 366 | 403 | - | 769 | - | |||||||||||
| Core net income available to common shareholders | $ | 19,454 | $ | 17,224 | $ | 16,841 | $ | 65,759 | $ | 66,326 | ||||||
| Pre-tax, pre-provision earnings available to common shareholders (a+b) | $ | 28,016 | $ | 24,438 | $ | 20,459 | $ | 93,924 | $ | 95,069 | ||||||
| CECL Oakwood impact (3) | 4,824 | $ | - | $ | - | 4,824 | $ | - | ||||||||
| Gain on former bank premises and equipment | - | - | - | (50 | ) | - | ||||||||||
| (Gain) loss on sale of securities | (21 | ) | 13 | 2,503 | (7 | ) | 2,565 | |||||||||
| Gain on sale of branch | - | - | (13 | ) | - | (945 | ) | |||||||||
| Gain on extinguishment of debt | - | - | - | - | (1,458 | ) | ||||||||||
| Acquisition-related expenses (2) | 168 | 319 | 63 | 1,621 | 236 | |||||||||||
| Write-down on former premises | - | - | 432 | - | 432 | |||||||||||
| Core conversion expenses | 463 | 511 | - | 974 | - | |||||||||||
| Core pre-tax, pre-provision earnings | $ | 33,450 | $ | 25,281 | $ | 23,444 | $ | 101,286 | $ | 95,899 | ||||||
| Average Diluted Common Shares Outstanding | 29,520,781 | 25,440,247 | 25,333,913 | 26,452,084 | 25,296,200 | |||||||||||
| Diluted Earnings Per Common Share: | ||||||||||||||||
| Diluted earnings per common share | $ | 0.51 | $ | 0.65 | $ | 0.57 | $ | 2.26 | $ | 2.59 | ||||||
| CECL Oakwood impact (3), net of tax | 0.13 | $ | - | $ | - | 0.14 | $ | - | ||||||||
| Gain on former bank premises and equipment, net of tax | - | - | - | (0.00 | ) | - | ||||||||||
| (Gain) loss on sale of securities, net of tax | (0.00 | ) | 0.00 | 0.08 | (0.00 | ) | 0.08 | |||||||||
| Gain on sale of branch, net of tax | - | - | - | - | (0.03 | ) | ||||||||||
| Gain on extinguishment of debt, net of tax | - | - | - | - | (0.04 | ) | ||||||||||
| Acquisition-related expenses (2), net of tax | 0.01 | 0.01 | - | 0.06 | 0.01 | |||||||||||
| Write-down on former premises, net of tax | - | - | 0.01 | - | 0.01 | |||||||||||
| Core conversion expenses, net of tax | 0.01 | 0.02 | - | 0.03 | - | |||||||||||
| Core diluted earnings per common share | $ | 0.66 | $ | 0.68 | $ | 0.66 | $ | 2.49 | $ | 2.62 | ||||||
| Pre-tax, pre-provision profit diluted earnings per common share | $ | 0.95 | $ | 0.96 | $ | 0.81 | $ | 3.55 | $ | 3.76 | ||||||
| CECL Oakwood impact (3) | 0.16 | - | - | 0.18 | - | |||||||||||
| Gain on former bank premises and equipment | - | - | - | (0.00 | ) | - | ||||||||||
| (Gain) loss on sale of securities | (0.00 | ) | 0.00 | 0.10 | (0.00 | ) | 0.10 | |||||||||
| Gain on sale of branch | - | - | - | - | (0.04 | ) | ||||||||||
| Gain on extinguishment of debt | - | - | - | - | (0.06 | ) | ||||||||||
| Acquisition-related expenses (2) | 0.01 | 0.01 | - | 0.06 | 0.01 | |||||||||||
| Write-down on former premises, net of tax | - | - | 0.02 | - | 0.02 | |||||||||||
| Core conversion expenses | 0.02 | 0.02 | - | 0.04 | - | |||||||||||
| Core pre-tax, pre-provision diluted earnings per common share | $ | 1.14 | $ | 0.99 | $ | 0.93 | $ | 3.83 | $ | 3.79 | ||||||
| (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2024 and 2023. These rates approximated the marginal tax rates. | ||||||||||||||||
| (2) Includes merger and conversion-related expenses and salary and employee benefits. | ||||||||||||||||
| (3) CECL non-purchased credit deteriorated (PCD) provision/unfunded commitment expense attributable to Oakwood. | ||||||||||||||||
| Business First Bancshares, Inc. | |||||||||
| Non-GAAP Measures | |||||||||
| (Unaudited) | |||||||||
| December 31, | September 30, | December 31, | |||||||
| (Dollars in thousands, except per share data) | 2024 | 2024 | 2023 | ||||||
| Total Shareholders' (Common) Equity: | |||||||||
| Total shareholders' equity | $ | 799,466 | $ | 699,524 | $ | 644,259 | |||
| Preferred stock | (71,930 | ) | (71,930 | ) | (71,930 | ) | |||
| Total common shareholders' equity | 727,536 | 627,594 | 572,329 | ||||||
| Goodwill | (121,572 | ) | (91,527 | ) | (88,391 | ) | |||
| Core deposit and customer intangible | (17,252 | ) | (10,326 | ) | (11,895 | ) | |||
| Total tangible common equity | $ | 588,712 | $ | 525,741 | $ | 472,043 | |||
| Total Assets: | |||||||||
| Total assets | $ | 7,857,090 | $ | 6,888,649 | $ | 6,584,550 | |||
| Goodwill | (121,572 | ) | (91,527 | ) | (88,391 | ) | |||
| Core deposit and customer intangible | (17,252 | ) | (10,326 | ) | (11,895 | ) | |||
| Total tangible assets | $ | 7,718,266 | $ | 6,786,796 | $ | 6,484,264 | |||
| Common shares outstanding | 29,552,358 | 25,519,501 | 25,351,809 | ||||||
| Book value per common share | $ | 24.62 | $ | 24.59 | $ | 22.58 | |||
| Tangible book value per common share | $ | 19.92 | $ | 20.60 | $ | 18.62 | |||
| Common equity to total assets | 9.26 | % | 9.11 | % | 8.69 | % | |||
| Tangible common equity to tangible assets | 7.63 | % | 7.75 | % | 7.28 | % | |||
| 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) | 2024 | 2024 | 2023 | 2024 | 2023 | |||||||||||
| Total Quarterly Average Assets | $ | 7,721,338 | $ | 6,788,644 | $ | 6,494,861 | $ | 6,973,735 | $ | 6,341,880 | ||||||
| Total Quarterly Average Common Equity | $ | 731,820 | $ | 610,018 | $ | 544,628 | $ | 625,914 | $ | 530,956 | ||||||
| Net Income Available to Common Shareholders: | ||||||||||||||||
| Net income available to common shareholders | $ | 15,138 | $ | 16,492 | $ | 14,474 | $ | 59,706 | $ | 65,642 | ||||||
| CECL Oakwood impact (3), net of tax | 3,805 | - | - | 3,805 | - | |||||||||||
| Gain on former bank premises and equipment, net of tax | - | - | - | (39 | ) | - | ||||||||||
| (Gain) loss on sale of securities, net of tax | (17 | ) | 10 | 1,974 | (6 | ) | 2,023 | |||||||||
| Gain on sale of branch, net of tax | - | - | (10 | ) | - | (745 | ) | |||||||||
| Gain on extinguishment of debt, net of tax | - | - | - | - | (1,150 | ) | ||||||||||
| Acquisition-related expenses, net of tax | 162 | 319 | 62 | 1,524 | 215 | |||||||||||
| Write-down on former bank premises, net of tax | - | - | 341 | - | 341 | |||||||||||
| Core conversion expenses, net of tax | 366 | 403 | - | 769 | - | |||||||||||
| Core net income available to common shareholders | $ | 19,454 | $ | 17,224 | $ | 16,841 | $ | 65,759 | $ | 66,326 | ||||||
| Return to common shareholders on average assets (annualized) (2) | 0.78 | % | 0.97 | % | 0.88 | % | 0.86 | % | 1.04 | % | ||||||
| Core return on average assets (annualized) (2) | 1.00 | % | 1.01 | % | 1.03 | % | 0.94 | % | 1.05 | % | ||||||
| Return to common shareholders on average common equity (annualized) (2) | 8.23 | % | 10.76 | % | 10.54 | % | 9.54 | % | 12.36 | % | ||||||
| Core return on average common equity (annualized) (2) | 10.58 | % | 11.23 | % | 12.27 | % | 10.51 | % | 12.49 | % | ||||||
| Interest Income: | ||||||||||||||||
| Interest income | $ | 116,142 | $ | 102,741 | $ | 94,665 | $ | 414,764 | $ | 353,327 | ||||||
| Core interest income | 116,142 | 102,741 | 94,665 | 414,764 | 353,327 | |||||||||||
| Interest Expense: | ||||||||||||||||
| Interest expense | 50,413 | 46,627 | 40,905 | 187,381 | 138,198 | |||||||||||
| Core interest expense | 50,413 | 46,627 | 40,905 | 187,381 | 138,198 | |||||||||||
| Other Income: | ||||||||||||||||
| Other income | 11,857 | 10,774 | 6,413 | 44,193 | 36,642 | |||||||||||
| Gain on former bank premises and equipment | - | - | - | (50 | ) | - | ||||||||||
| (Gain) loss on sale of securities | (21 | ) | 13 | 2,503 | (7 | ) | 2,565 | |||||||||
| Gain on sale of branch | - | - | (13 | ) | - | (945 | ) | |||||||||
| Gain on extinguishment of debt | - | - | - | - | (1,458 | ) | ||||||||||
| Core other income | 11,836 | 10,787 | 8,903 | 44,136 | 36,804 | |||||||||||
| Other Expense: | ||||||||||||||||
| Other expense | 49,570 | 42,450 | 39,714 | 177,652 | 156,702 | |||||||||||
| Acquisition-related expenses | (168 | ) | (319 | ) | (63 | ) | (1,621 | ) | (236 | ) | ||||||
| Write-down on former bank premises | - | - | (432 | ) | - | (432 | ) | |||||||||
| Core conversion expenses | (463 | ) | (511 | ) | - | (974 | ) | - | ||||||||
| Core other expense | $ | 48,939 | $ | 41,620 | $ | 39,219 | $ | 175,057 | $ | 156,034 | ||||||
| Efficiency Ratio: | ||||||||||||||||
| Other expense (a) | $ | 49,570 | $ | 42,450 | $ | 39,714 | $ | 177,652 | $ | 156,702 | ||||||
| Core other expense (c) | $ | 48,939 | $ | 41,620 | $ | 39,219 | $ | 175,057 | $ | 156,034 | ||||||
| Net interest and other income (1) (b) | $ | 77,565 | $ | 66,901 | $ | 62,676 | $ | 271,569 | $ | 254,336 | ||||||
| Core net interest and other income (1) (d) | $ | 77,565 | $ | 66,901 | $ | 62,663 | $ | 271,519 | $ | 251,933 | ||||||
| Efficiency ratio (a/b) | 63.91 | % | 63.45 | % | 63.36 | % | 65.42 | % | 61.61 | % | ||||||
| Core efficiency ratio (c/d) | 63.09 | % | 62.21 | % | 62.59 | % | 64.47 | % | 61.93 | % | ||||||
| Total Average Interest-Earnings Assets | $ | 7,237,784 | $ | 6,363,995 | $ | 6,086,330 | $ | 6,536,333 | $ | 5,939,405 | ||||||
| Net Interest Income: | ||||||||||||||||
| Net interest income | $ | 65,729 | $ | 56,114 | $ | 53,760 | $ | 227,383 | $ | 215,129 | ||||||
| Loan discount accretion | (997 | ) | (705 | ) | (1,921 | ) | (4,182 | ) | (9,311 | ) | ||||||
| Net interest income excluding loan discount accretion | $ | 64,732 | $ | 55,409 | $ | 51,839 | $ | 223,201 | $ | 205,818 | ||||||
| Net interest margin (2) | 3.61 | % | 3.51 | % | 3.50 | % | 3.48 | % | 3.62 | % | ||||||
| Net interest margin excluding loan discount accretion (2) | 3.56 | % | 3.46 | % | 3.38 | % | 3.41 | % | 3.47 | % | ||||||
| Net interest spread (2) | 2.77 | % | 2.54 | % | 2.53 | % | 2.55 | % | 2.72 | % | ||||||
| Net interest spread excluding loan discount accretion (2) | 2.72 | % | 2.50 | % | 2.40 | % | 2.48 | % | 2.56 | % | ||||||
| (1) Excludes gains/losses on sales of securities. | ||||||||||||||||
| (2) Calculated utilizing an actual day count convention. | ||||||||||||||||
| (3) CECL non-PCD provision/unfunded commitment expense attributable to Oakwood. | ||||||||||||||||
Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com
