• Business First Bancshares, Inc., Announces Financial Results For Q2 2021

    Источник: Nasdaq GlobeNewswire / 26 июл 2021 16:01:01   America/New_York

    BATON ROUGE, La., July 26, 2021 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended June 30, 2021, including net income of $17.4 million, or $0.84 per diluted share, an increase of $5.1 million and $0.25, respectively, from the prior quarter ended March 31, 2021. On a non-GAAP basis, core net income for the quarter ended June 30, 2021, which excludes certain income and expenses, was $18.7 million, or $0.90 per diluted share, an increase of $6.1 million and $0.29, respectively, from prior quarter ended March 31, 2021.

    “Our second quarter results included a number of successes that bode well for our progress over the remainder of 2021,” said Jude Melville, president and CEO. “Business demand was strong, resulting in record loan growth.  This growth was driven primarily by our Dallas region which now accounts for approximately 18% of our company’s credit exposure. We sold the bulk of our SBA PPP portfolio, enabling us to re-position our go-forward asset mix and enhance our capital levels.  We continued to attract talented teammates, both lifting out a team of bankers in New Orleans and adding an LPO in Ruston.  These actions on top of integration of the Smith Shellnut Wilson, LLC investment management group give me confidence that our company is well positioned to continue building off this quarter’s momentum.”

    On July 22, 2021, Business First’s board of directors declared a quarterly dividend based upon financial performance for the second quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of August 15, 2021. The dividend will be paid on August 31, 2021, or as soon thereafter as practicable.

    Quarterly Highlights

    • Smith Shellnut Wilson, LLC (SSW) Acquisition. On April 1, 2021, Business First completed its acquisition of SSW and has substantially integrated the business as of June 30, 2021.
    • Loan Growth. Total loans held for investment at June 30, 2021, were $2.9 billion, a decrease of $187.1 million compared to March 31, 2021. The decrease was attributable to a net decrease in Small Business Administration (SBA) Paycheck Protection Program (PPP) loans within the commercial portfolio of $360.1 million, due to $116.5 million in forgiveness and a portfolio sale of $243.6 million in outstanding principal balance. Excluding the net decrease in SBA PPP loans, total loans held for investment increased for the quarter ended June 30, 2021, by 6.52%, or 26.06% annualized. The loan growth, excluding SBA PPP loans, was largely attributable to our Dallas, Tx. market.
    • Small Business Administration (SBA) Paycheck Protection Program (PPP) Portfolio Sale. Business First sold the majority of its SBA PPP loan portfolio on June 28, 2021, with an outstanding principal balance of $243.6 million, at par, recognizing the remaining net deferred fees and costs as a $9.2 million pre-tax gain on sale. At June 30, 2021, Business First’s remaining SBA PPP loan portfolio had an outstanding balance of $25.7 million.
    • New Loan Production Office (LPO) Activity. Business First opened a new LPO in Ruston, La. during the quarter ended June 30, 2021. Additionally, Business First hired five new producers during the quarter ended June 30, 2021, in the New Orleans market, with plans to open a new LPO in New Orleans/Metairie, La. in Q3 2021.  
    • Stock Repurchases. During the quarter ended June 30, 2021, Business First repurchased approximately 83,504 shares of its common stock at a weighted average cost of $23.03 per share, for a total cost of $1.9 million.

    Financial Condition

    June 30, 2021, Compared to March 31, 2021

    Loans

    Loans held for investment decreased $187.1 million, or 6.15% (24.60% annualized), for the quarter ended June 30, 2021. The decrease was attributable to a net decrease in SBA PPP loans within the commercial portfolio of $360.1 million due to $116.5 million in forgiveness and a portfolio sale of $243.6 million in outstanding principal balances. Year to date annualized loan growth was (9.12%), inclusive of SBA PPP loans. As of June 30, 2021, SBA PPP loans with an unpaid principal balance of $25.7 million remained outstanding.   

    Excluding the net decrease in SBA PPP loans, total loans held for investment increased for the quarter ended June 30, 2021, by 6.52%, or 26.06% annualized. Year to date annualized loan growth was 11.45% excluding SBA PPP loans.

    Credit Quality

    Nonperforming loans as a percentage of total loans held for investment decreased from 0.44% as of March 31, 2021, to 0.40% as of June 30, 2021. Nonperforming assets as a percentage of total assets decreased from 0.52% as of March 31, 2021, to 0.42% as of June 30, 2021. The decreases in nonperforming loans were partially attributable to charge-offs of $861,000. The decrease in nonperforming assets included the sale of three former banking centers which resulted in a $2.3 million balance decrease.

    Total Shareholders’ Equity

    Book value per common share was $20.78 at June 30, 2021, compared to $20.03 at March 31, 2021. On a non-GAAP basis, tangible book value per share was $17.24 at June 30, 2021, compared to $16.99 at March 31, 2021.  

    June 30, 2021, Compared to June 30, 2020

    Loans

    Total loans held for investment decreased by $139.9 million compared to June 30, 2020, or (4.67)%, primarily due to the forgiveness and portfolio sale of SBA PPP loans. Excluding SBA PPP loans, loans increased $229.7 million, or 8.84%.

    Credit Quality

    Nonperforming loans as a percentage of total loans held for investment increased from 0.39% as of June 30, 2020, to 0.40% as of June 30, 2021. Nonperforming assets as a percentage of total assets decreased from 0.49% as of June 30, 2020, to 0.42% as of June 30, 2021. The slight increase in the nonperforming loans as a percentage of total loans held for investment was due to the lower SBA PPP loan balance as of June 30, 2021, as nonperforming assets decreased $1.3 million since June 30, 2020.

    Total Shareholders’ Equity

    Book value per common share was $20.78 at June 30, 2021, compared to $18.69 at June 30, 2020. On a non-GAAP basis, tangible book value per share was $17.24 at June 30, 2021, compared to $15.59 at June 30, 2020, an increase of 10.58%.

    Results of Operations

    Second Quarter 2021 Compared to First Quarter 2021

    Net Income and Diluted Earnings Per Share

    For the quarter ended June 30, 2021, net income was $17.4 million, or $0.84 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 increases, $5.1 million and $0.25, respectively, were largely attributable to the $10.0 million gain on sale of loans, primarily attributable to a $9.2 million gain recognized upon the sale of SBA PPP loans with an outstanding principal balance of $243.6 million, $1.5 million increase in Small Business Investment Company (SBIC) equity investment income and an increase of $873,000 in brokerage commissions due to the acquisition of SSW, offset by increases in other expenses of $4.1 million and taxes of $1.8 million.

    On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2021, was $18.7 million, or $0.90 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 June 30, 2021, included $938,000 in occupancy and bank premises expenses attributable to hurricane damage and a $540,000 loss on sales of former premises and equipment within other income, compared to $350,000 in occupancy and bank premises expenses attributable to hurricane damage for the quarter ended March 31, 2021.

    Interest Income

    For the quarter ended June 30, 2021, net interest income totaled $37.9 million and net interest margin and net interest spread were 3.87% and 3.68%, 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 5.13% for the quarter ended June 30, 2021, compared to 5.53% for the quarter ended March 31, 2021. The average yield on total interest-earning assets was 4.32% for the quarter ended June 30, 2021, compared to 4.65% for the quarter ended March 31, 2021. The reduction in interest income was largely attributable to lower discount accretion on the acquired loan portfolio, a $1.4 million decrease, and less yield on the SBA PPP portfolio due to lower forgiveness caused by the $243.6 million portfolio sale during the quarter, as well as increased interest expense due to the full impact of subordinated debt issued during 2021.

    Net interest margin and net interest spread were negatively impacted for the quarter ended June 30, 2021, by $1.4 million less in loan discount accretion on the acquired loan portfolio, 15 basis points each, and $1.5 million less in SBA PPP origination fees, 16 basis points each, and an increase in the overall cost of funds (which includes noninterest-bearing deposits) due to the full impact of the 2021 subordinated debt issuances, six and seven basis points, respectively.  

    The average loan yield (excluding SBA PPP loans) was impacted by the origination of loans at lower rates than payoffs during the quarter, as well as lower loan discount accretion on the acquired loan portfolio.

    Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.71% and 3.52%, respectively, for the quarter ended June 30, 2021, 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 June 30, 2021, overall cost of funds (which includes noninterest-bearing deposits) increased by four basis points, from 0.41% to 0.45%, compared to the quarter ended March 31, 2021. The increase in cost of funds was largely attributable to the increased expense associated with the issuances of subordinated debt in 2021.

    Other Income

    For the quarter ended June 30, 2021, other income was impacted by a $10.0 million increase in gain on sale of loans, primarily associated with the $9.2 million gain on the sale of the SBA PPP portfolio, an increase of income from SBIC investments of $1.5 million, and an increase in brokerage commissions of $873,000 as result of the SSW acquisition, compared to the quarter ended March 31, 2021.

    Other Expenses

    For the quarter ended June 30, 2021, other expenses were impacted by additional salaries and employee benefits of $1.8 million, partially attributed to annual merit increases, the addition of new employees, including SSW, and $488,000 in payroll taxes on restricted stock grants, $465,000 increases in both occupancy and bank premises, impacted by $938,000 in hurricane damage expense, and data processing, respectively. The other expense category also increased $1.1 million, impacted by $477,000 in reserves for unfunded commitments.

    Provision for Loan Losses

    During the quarter ended June 30, 2021, Business First recorded a provision for loan losses of $2.2 million, compared to $3.4 million for the quarter ended March 31, 2021. The decrease for the quarter ended June 30, 2021, was driven primarily by the additional reserves ($1.4 million) required on a single energy-related loan which was transferred to nonaccrual during the quarter ended March 31, 2021.

    Return on Assets and Equity

    Return on average assets and equity, each on an annualized basis, were 1.58% and 16.57%, respectively, for the quarter ended June 30, 2021, compared to 1.15% and 11.86%, respectively, for the quarter ended March 31, 2021. Both returns were impacted by higher net income for the quarter ended June 30, 2021, mainly attributable to the gain on sale of the SBA PPP portfolio.

    Second Quarter 2021 Compared to Second Quarter 2020

    Net Income and Diluted Earnings Per Share

    For the quarter ended June 30, 2021, net income was $17.4 million, or $0.84 per diluted share, compared to net income of $2.1 million, or $0.11 per diluted share, for the quarter ended June 30, 2020. The increases in net income and diluted earnings per share were largely attributable to the increases in net interest income related to the acquisition of Pedestal on May 1, 2020, origination of SBA PPP loans, lower costs of funds, and decrease in the provision for loan losses, as well as a $9.2 million gain on sale resulting from the SBA PPP loan portfolio within other income.

    On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2021, was $18.7 million, or $0.90 per diluted share, compared to core net income of $7.4 million, or $0.41 per diluted share, for the quarter ended June 30, 2020. Notable noncore events impacting earnings for the quarter ended June 30, 2021, included $938,000 in occupancy and bank premises expenses attributable to hurricane damage and $540,000 losses on sales of former premises and equipment within other income, compared to $6.6 million in acquisition-related expenses incurred during the quarter ended June 30, 2020.

    Interest Income

    For the quarter ended June 30, 2021, net interest income totaled $37.9 million and net interest margin and net interest spread were 3.87% and 3.68%, respectively, compared to $30.9 million, 3.89% and 3.59% for the quarter ended June 30, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.13% for the quarter ended June 30, 2021, compared to 5.61% for the quarter ended June 30, 2020. The increase in interest income was largely attributable to higher average balances in loans, due to the Pedestal acquisition and origination of SBA PPP loans, and increase in securities due to the increase in deposits and excess cash.

    Average yield on total interest-earning assets, net interest margin, and net interest spread were negatively impacted for the quarter ended June 30, 2021, by lower yielding loans and securities, offset partially by lower deposit and borrowing costs.

    Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.71% and 3.52%, respectively, for the quarter ended June 30, 2021, compared to 3.71% and 3.41% (excluding loan discount accretion of $1.5 million) for the quarter ended June 30, 2020.

    Interest Expense

    For the quarter ended June 30, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 32 basis points, from 0.77% to 0.45%, compared to the quarter ended June 30, 2020. The decrease in cost of funds was primarily attributable to an overall reduction in interest rates on deposit offerings and reduction in FHLB advance balances, offset by an increase in subordinated debt balances.

    Other Income

    For the quarter ended June 30, 2021, the increase in other income was largely attributable to the gain on sale of loans of $10.0 million, generally attributable to the $9.2 million gain on the sale of the SBA PPP loan portfolio, as well as increases in debit card and ATM fee income, $818,000, and brokerage commissions, $1.2 million, compared to the quarter ended June 30, 2020.

    Other Expenses

    For the quarter ended June 30, 2021, the increase in other expense was largely attributable to the increase in occupancy and bank premises, data processing, and other expenses compared to the quarter ended June 30, 2020. Occupancy and bank premises expense was impacted by $938,000 in hurricane damage expenses for the quarter ended June 30, 2021, while data processing increased due to the volume from the Pedestal acquisition and organic growth. Other expenses increased due to increased consulting and business development costs and other miscellaneous expenses due to the expansion of Business First following the Pedestal acquisition on May 1, 2020, and various other items.

    Provision for Loan Losses

    During the quarter ended June 30, 2021, Business First recorded a provision for loan losses of $2.2 million compared to $5.4 million for the quarter ended June 30, 2020. The reserve for the quarter ended June 30, 2020, was impacted significantly by the estimated impact on the general economy of the COVID-19 pandemic at the time.

    Return on Assets and Equity

    Return on average assets and return on average equity, each on an annualized basis, were 1.58% and 16.57%, respectively, for the quarter ended June 30, 2021, from 0.23% and 2.35%, respectively, for the quarter ended June 30, 2020. Both returns were positively impacted by higher net income for the quarter ended June 30, 2021.

    About Business First Bancshares, Inc.
    Business First Bancshares, Inc., through its banking subsidiary b1BANK operates 43 full-service Banking Centers and one Loan Production Office in markets across Louisiana and in the Dallas, Texas area. b1BANK provides commercial and personal banking, treasury management and wealth solutions services to small to midsize businesses and their owners and employees. Visit www.b1BANK.com for more information. Business First’s common stock is traded on the NASDAQ Global Select Market under the symbol “BFST.”

    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 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 the Company’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. Actual results will also be significantly impacted by the effects of the ongoing COVID-19 pandemic, including, among other effects: the impact of the public health crisis; the extent and duration of closures of businesses, including our branches, vendors and customers; the operation of financial markets; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; the adequacy of our allowance for loan losses in relation to potential losses in our loan portfolio; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. 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 on 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.

    Misty Albrecht
    b1BANK
    225.286.7879
    Misty.Albrecht@b1BANK.com 


    Business First Bancshares, Inc.
    Selected Financial Information
    (Unaudited)
     For the Quarter Ended
     June 30,March 31,June 30,
    (Dollars in thousands) 2021  2021  2020 
        
    Balance Sheet Ratios   
        
    Loans (HFI) to Deposits 76.66% 78.83% 96.46%
    Shareholders' Equity to Assets Ratio 9.97% 9.38% 12.88%
        
    Loans Receivable Held for Investment   
        
    Commercial (1)$660,691 $962,099 $1,026,596 
    Real Estate:   
    Construction and Land 454,055  418,234  333,675 
    Farmland 77,133  52,861  57,498 
    1-4 Family Residential 459,037  460,907  495,827 
    Multi-Family Residential 89,796  77,390  59,213 
    Nonfarm Nonresidential 1,002,707  966,416  914,601 
    Total Real Estate 2,082,728  1,975,808  1,860,814 
    Consumer (1) 111,467  104,071  107,402 
    Total Loans (Held for Investment)$2,854,886 $3,041,978 $2,994,812 
        
    Allowance for Loan Losses   
        
    Balance, Beginning of Period$25,251 $22,024 $13,319 
    Charge-offs – Quarterly (861) (309) (98)
    Recoveries – Quarterly 71  177  51 
    Provision for Loan Losses – Quarterly 2,241  3,359  5,443 
    Balance, End of Period$26,702 $25,251 $18,715 
        
    Allowance for Loan Losses to Total Loans (HFI) 0.94% 0.83% 0.62%
    Net Charge-offs (Recoveries) to Average Total Loans 0.03% -0.00% 0.00%
        
    Remaining Loan Purchase Discount$30,900 $32,517 $44,302 
        
    Nonperforming Assets   
        
    Nonperforming Loans:   
    Nonaccrual Loans (2)$10,568 $11,956 $11,433 
    Loans Past Due 90 Days or More (2) 893  1,479  317 
    Total Nonperforming Loans 11,461  13,435  11,750 
    Other Nonperforming Assets:   
    Other Real Estate Owned 5,890  8,851  7,642 
    Other Nonperforming Assets: 665  623  179 
    Total Other Nonperforming Assets 6,555  9,474  7,821 
    Total Nonperforming Assets$18,016 $22,909 $19,571 
        
    Nonperforming Loans to Total Loans (HFI) 0.40% 0.44% 0.39%
    Nonperforming Assets to Total Assets 0.42% 0.52% 0.49%
        
    (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $25.7 million of the Commercial portfolio as of June 30, 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. SBA PPP loans accounted for $389.9 million and $5.5 million of the Commercial and Consumer portfolios, respectively, as of June 30, 2020.
       
    (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 EndedSix Months Ended
     June 30,March 31,June 30,June 30,June 30,
    (Dollars in thousands, except per share data)20212021202020212020
          
    Per Share Data     
          
    Basic Earnings per Common Share$0.84 $0.60 $0.11 $1.44 $0.42 
    Diluted Earnings per Common Share 0.84  0.59  0.11  1.43  0.42 
    Dividends per Common Share 0.12  0.10  0.10  0.22  0.20 
    Book Value per Common Share 20.78  20.03  18.69  20.78  18.69 
          
          
    Average Common Shares Outstanding 20,707,313  20,621,930  18,108,068  20,664,857  15,710,611 
    Average Diluted Shares Outstanding 20,827,786  20,738,013  18,121,958  20,783,135  15,776,376 
    End of Period Common Shares Outstanding 20,740,759  20,804,753  20,667,237  20,740,759  20,667,237 
          
          
    Annualized Performance Ratios     
          
    Return on Average Assets 1.58% 1.15% 0.23% 1.37% 0.46%
    Return on Average Equity 16.57% 11.86% 2.35% 14.23% 4.13%
    Net Interest Margin 3.87% 4.23% 3.89% 4.05% 3.91%
    Net Interest Spread 3.68% 4.06% 3.59% 3.87% 3.57%
    Efficiency Ratio (1) 56.20% 59.40% 77.40% 57.64% 75.44%
          
    Total Quarterly/Year-to-Date Average Assets$4,399,911 $4,276,430 $3,496,074 $4,338,170 $2,870,329 
    Total Quarterly/Year-to-Date Average Equity 420,640  415,896  349,634  418,267  317,486 
          
    Other Expenses     
          
    Salaries and Employee Benefits$16,753 $14,926 $17,621 $31,679 $27,056 
    Occupancy and Bank Premises 2,276  1,811  1,370  4,087  2,430 
    Depreciation and Amortization 1,686  1,593  1,073  3,279  1,674 
    Data Processing 2,288  1,823  1,055  4,111  1,707 
    FDIC Assessment Fees 436  509  272  945  419 
    Legal and Other Professional Fees 905  741  543  1,646  937 
    Advertising and Promotions 624  477  334  1,101  640 
    Utilities and Communications 636  575  645  1,211  962 
    Ad Valorem Shares Tax 675  700  450  1,375  825 
    Directors' Fees 194  188  100  382  174 
    Other Real Estate Owned Expenses and Write-Downs 178  379  51  557  304 
    Merger and Conversion-Related Expenses 94  10  1,726  104  2,874 
    Other 4,371  3,231  2,557  7,602  4,438 
    Total Other Expenses$31,116 $26,963 $27,797 $58,079 $44,440 
          
    Other Income     
          
    Service Charges on Deposit Accounts$1,683 $1,567 $1,163 $3,250 $2,094 
    Gain (Loss) on Sales of Securities (50) (5) -  (55) 25 
    Debit card and ATM Fee Income 1,777  1,336  959  3,113  1,366 
    Bank-Owned Life Insurance Income 355  318  255  673  452 
    Gain (Loss) on Sales of Loans 10,042  (21) 7  10,021  184 
    Mortgage Origination Income 241  229  126  470  241 
    Brokerage Commission 1,416  543  236  1,959  256 
    Correspondent Bank Income 123  143  32  266  141 
    Participation Fee Income 240  247  46  487  113 
    Gain (Loss) on Sales of Other Real Estate Owned (575) 46  (19) (529) 132 
    Gain (Loss) on Disposal of Other Assets (9) 117  -  108  - 
    Pass-through Income from SBIC Partnerships 1,602  53  1,624  1,655  2,004 
    Other 531  510  567  1,041  792 
     Total Other Income$17,376 $5,083 $4,996 $22,459 $7,800 
          
    (1) Non-GAAP: Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities. 
          


    Business First Bancshares, Inc.
    Consolidated Balance Sheets
    (Unaudited)
        
     June 30,March 31,June 30,
    (Dollars in thousands) 2021  2021  2020 
        
    Assets   
        
    Cash and Due From Banks$130,769 $355,257 $116,021 
    Federal Funds Sold 232,391  105,595  40,329 
    Securities Available for Sale, at Fair Values 882,802  721,224  583,118 
    Mortgage Loans Held for Sale 1,834  2,298  456 
    Loans and Lease Receivable 2,854,886  3,041,978  2,994,812 
    Allowance for Loan Losses (26,702) (25,251) (18,715)
    Net Loans and Lease Receivable 2,828,184  3,016,727  2,976,097 
    Premises and Equipment, Net 57,576  57,931  63,959 
    Accrued Interest Receivable 20,841  25,910  33,844 
    Other Equity Securities 14,043  12,584  18,681 
    Other Real Estate Owned 5,890  8,851  7,642 
    Cash Value of Life Insurance 60,703  60,348  44,542 
    Deferred Taxes, Net 4,652  5,536  6,858 
    Goodwill 60,062  53,753  53,649 
    Core Deposit and Customer Intangibles 13,271  9,406  10,389 
    Other Assets 10,941  8,166  5,553 
        
    Total Assets$4,323,959 $4,443,586 $3,961,138 
        
        
    Liabilities   
        
    Deposits   
    Noninterest-Bearing$1,175,624 $1,186,625 $985,537 
    Interest-Bearing 2,548,599  2,672,109  2,265,485 
    Total Deposits 3,724,223  3,858,734  3,251,022 
        
    Securities Sold Under Agreements to Repurchase 25,837  21,419  25,391 
    Short-Term Borrowings 20  20  6,145 
    Long-Term Borrowings -  -  7,797 
    Payroll Protection Program Liquidity Facility -  -  107,076 
    Subordinated Debt 81,427  77,500  25,000 
    Subordinated Debt - Trust Preferred Securities 5,000  5,000  5,000 
    Federal Home Loan Bank Borrowings 28,023  33,073  118,177 
    Accrued Interest Payable 1,938  1,941  3,920 
    Other Liabilities 26,485  29,198  25,274 
        
    Total Liabilities 3,892,953  4,026,885  3,574,802 
        
    Shareholders' Equity   
        
    Common Stock 20,741  20,805  20,667 
    Additional Paid-In Capital 299,014  300,282  297,606 
    Retained Earnings 104,382  89,441  59,850 
    Accumulated Other Comprehensive Income 6,869  6,173  8,213 
        
    Total Shareholders' Equity 431,006  416,701  386,336 
        
    Total Liabilities and Shareholders' Equity$4,323,959 $4,443,586 $3,961,138 
        


    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)202120212020 20212020
           
    Interest Income:      
    Interest and Fees on Loans$39,135 $41,419 $34,636 $80,554 $58,779
    Interest and Dividends on Securities 3,189  2,802  2,175  5,991  3,906
    Interest on Federal Funds Sold and Due From Banks 27  41  80  68  222
    Total Interest Income 42,351  44,262  36,891  86,613  62,907
           
    Interest Expense:      
    Interest on Deposits 3,235  3,243  4,795  6,478  9,481
    Interest on Borrowings 1,171  718  1,177  1,889  2,296
    Total Interest Expense 4,406  3,961  5,972  8,367  11,777
           
    Net Interest Income 37,945  40,301  30,919  78,246  51,130
           
    Provision for Loan Losses: 2,241  3,359  5,443  5,600  6,810
           
    Net Interest Income After Provision for Loan Losses 35,704  36,942  25,476  72,646  44,320
           
    Other Income:      
    Service Charges on Deposit Accounts 1,683  1,567  1,163  3,250  2,094
    Gain (Loss) on Sales of Securities (50) (5) -  (55) 25
    Gain (Loss) on Sales of Loans 10,042  (21) 7  10,021  184
    Other Income 5,701  3,542  3,826  9,243  5,497
    Total Other Income 17,376  5,083  4,996  22,459  7,800
           
    Other Expenses:      
    Salaries and Employee Benefits 16,753  14,926  17,621  31,679  27,056
    Occupancy and Equipment Expense 4,264  3,717  2,888  7,981  4,779
    Merger and Conversion-Related Expense 94  10  1,726  104  2,874
    Other Expenses 10,005  8,310  5,562  18,315  9,731
    Total Other Expenses 31,116  26,963  27,797  58,079  44,440
           
    Income Before Income Taxes: 21,964  15,062  2,675  37,026  7,680
           
    Provision for Income Taxes: 4,536  2,733  623  7,269  1,129
           
    Net Income:$17,428 $12,329 $2,052 $29,757 $6,551
           


    Business First Bancshares, Inc.
    Consolidated Net Interest Margin
    (Unaudited)
                
                
     Three Months Ended
     June 30, 2021 March 31, 2021 June 30, 2020
     Average   Average   Average  
     OutstandingInterest Earned /Average OutstandingInterest Earned /Average OutstandingInterest Earned /Average
    (Dollars in thousands)BalanceInterest PaidYield / Rate BalanceInterest PaidYield / Rate BalanceInterest PaidYield / Rate
                
    Assets           
                
    Interest-Earning Assets:           
    Total Loans (Excluding SBA PPP)$2,814,593 $36,1165.13% $2,643,668 $36,5385.53% $2,304,438 $32,3065.61%
    SBA PPP Loans 242,015  3,0194.99%  374,958 $4,8815.21%  321,127  2,3302.90%
    Securities Available for Sale 801,268  3,1891.59%  691,476  2,8021.62%  481,422  2,1751.81%
    Interest-Bearing Deposit in Other Banks 62,693  270.17%  101,233  410.16%  69,169  800.46%
    Total Interest-Earning Assets 3,920,569  42,3514.32%  3,811,335  44,2624.65%  3,176,156  36,8914.65%
    Allowance for Loan Losses (26,032)    (22,709)    (13,606)  
    Noninterest-Earning Assets 505,374     487,804     333,524   
    Total Assets$4,399,911 $42,351  $4,276,430 $44,262  $3,496,074 $36,891 
                
                
    Liabilities and Shareholders' Equity           
                
    Interest-Bearing Liabilities:           
    Interest-Bearing Deposits$2,615,241 $3,2350.49% $2,584,263 $3,2430.50% $1,994,680 $4,7950.96%
    Subordinated Debt 81,427  1,0154.99%  28,450  4596.45%  25,000  4226.75%
    Subordinated Debt - Trust Preferred Securities 5,000  433.44%  5,000  423.36%  3,333  80.96%
    Advances from Federal Home Loan Bank (FHLB) 32,887  1081.31%  37,022  1111.20%  129,441  5261.63%
    Paycheck Protection Program Liquidity Facility (PPPLF) -  -0.00%  -  -0.00%  76,902  720.37%
    Other Borrowings 24,909  50.08%  31,696  1061.34%  32,975  1491.81%
    Total Interest-Bearing Liabilities 2,759,464  4,4060.64%  2,686,431  3,9610.59%  2,262,331  5,9721.06%
                
    Noninterest-Bearing Liabilities:           
    Noninterest-Bearing Deposits$1,191,900    $1,146,950    $852,608   
    Other Liabilities 27,907     27,153     31,501   
    Total Noninterest-Bearing Liabilities 1,219,807     1,174,103     884,109   
    Shareholders' Equity: 420,640     415,896     349,634   
    Total Liabilities and Shareholders' Equity$4,399,911    $4,276,430    $3,496,074   
                
    Net Interest Spread  3.68%   4.06%   3.59%
    Net Interest Income $37,945   $40,301   $30,919 
    Net Interest Margin  3.87%   4.23%   3.89%
                
    Overall Cost of Funds  0.45%   0.41%   0.77%
                
    NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.    
                


    Business First Bancshares, Inc.
    Consolidated Net Interest Margin
    (Unaudited)
                
                
     Six Months Ended
     June 30, 2021 June 30, 2020
     Average     Average    
     Outstanding Interest Earned /Average  Outstanding Interest Earned /Average 
    (Dollars in thousands)Balance Interest PaidYield / Rate  Balance Interest PaidYield / Rate 
                
    Assets           
                
    Interest-Earning Assets:           
    Total Loans (Excluding SBA PPP)$2,729,130 $72,6545.32% $2,022,312 $56,4495.58%
    SBA PPP Loans308,487 7,9005.12% 160,564 2,3302.90%
    Securities Available for Sale746,372 5,9911.61% 384,041 3,9062.03%
    Interest-Bearing Deposit in Other Banks81,963 680.17% 48,962 2220.91%
    Total Interest-Earning Assets3,865,952 86,6134.48% 2,615,879 62,9074.81%
    Allowance for Loan Losses(24,371)    (12,905)   
    Noninterest-Earning Assets496,589     267,355    
    Total Assets$4,338,170 $86,613   $2,870,329 $62,907  
                
                
    Liabilities and Shareholders' Equity           
                
    Interest-Bearing Liabilities:           
    Interest-Bearing Deposits$2,599,751 $6,4780.50% $1,668,446 $9,4811.14%
    Subordinated Debt54,939 1,4745.37% 25,000 8446.75%
    Subordinated Debt - Trust Preferred Securities5,000 853.40% 1,667 80.96%
    Advances from Federal Home Loan Bank (FHLB)34,954 2191.25% 113,882 1,0231.80%
    Paycheck Protection Program Liquidity Facility (PPPLF)- -0.00% 38,451 720.37%
    Other Borrowings28,302 1110.78% 50,050 3491.39%
    Total Interest-Bearing Liabilities2,722,946 8,3670.61% 1,897,496 11,7771.24%
                
    Noninterest-Bearing Liabilities:           
    Noninterest-Bearing Deposits1,169,425     629,321    
    Other Liabilities27,532     26,026    
    Total Noninterest-Bearing Liabilities1,196,957     655,347    
    Shareholders' Equity418,267     317,486    
    Total Liabilities and Shareholders' Equity$4,338,170     $2,870,329    
                
    Net Interest Spread   3.87%     3.57% 
    Net Interest Income  $78,246     $51,130  
    Net Interest Margin   4.05%     3.91% 
                
    Overall Cost of Funds   0.43%     0.93% 
                
    NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.
                


    Business First Bancshares, Inc.
    Non-GAAP Measures
    (Unaudited)
           
     Three Months Ended Six Months Ended
     June 30,March 31,June 30, June 30,June 30,
    (Dollars in thousands, except per share data) 2021  2021  2020   2021  2020 
           
    Interest Income:      
    Interest income$42,351 $44,262 $36,891  $86,613 $62,907 
    Core interest income 42,351  44,262  36,891   86,613  62,907 
    Interest Expense:      
    Interest expense 4,406  3,961  5,972   8,367  11,777 
    Core interest expense 4,406  3,961  5,972   8,367  11,777 
    Provision for Loan Losses: (b)      
        Provision for loan losses 2,241  3,359  5,443   5,600  6,810 
        Core provision expense 2,241  3,359  5,443   5,600  6,810 
    Other Income:      
    Other income 17,376  5,083  4,996   22,459  7,800 
    (Gains) 1osses on former bank premises and equipment 540  -  -   540  (126)
    (Gains) 1osses on sale of securities 50  5  -   55  (25)
        Core other income 17,966  5,088  4,996   23,054  7,649 
    Other Expense:      
       Other expense 31,116  26,963  27,797   58,079  44,440 
    Acquisition-related expenses (2) (94) (10) (6,573)  (104) (7,785)
    Stock option exercises - excess taxes (founder's grants) -  -  -   -  (71)
       Occupancy and bank premises - hurricane repair (938) (350) -   (1,288) - 
       Core other expense 30,084  26,603  21,224  - 56,687  36,584 
    Pre-Tax Income: (a)      
       Pre-tax income 21,964  15,062  2,675   37,026  7,680 
    (Gains) 1osses on former bank premises and equipment 540  -  -   540  (126)
    (Gains) 1osses on sale of securities 50  5  -   55  (25)
    Acquisition-related expenses (2) 94  10  6,573   104  7,785 
    Stock option exercises - excess taxes (founder's grants) -  -  -   -  71 
       Occupancy and bank premises - hurricane repair 938  350  -   1,288  - 
       Core pre-tax income 23,586  15,427  9,248   39,013  15,385 
    Provision for Income Taxes: (1)      
       Provision for income taxes 4,536  2,733  623   7,269  1,129 
       Tax on (gains) losses on former bank premises and equipment 113  -  -   113  (26)
    Tax on (gains) losses on sale of securities 11  1  -   12  (5)
       Tax on acquisition-related expenses (2) 20  2  1,275   22  1,366 
       Tax on stock option exercises (founder's grants) -  -  -   -  601 
       Tax on occupancy and bank premises - hurricane repair 197  74  -   271  - 
       Core provision for income taxes 4,877  2,810  1,898   7,687  3,065 
    Net Income:      
       Net income 17,428  12,329  2,052   29,757  6,551 
    (Gains) losses on former bank premises and equipment , net of tax 427  -  -   427  (100)
    (Gains) losses on sale of securities, net of tax 39  4  -   43  (20)
    Acquisition-related expenses (2), net of tax 74  8  5,298   82  6,419 
    Stock option exercises, net of tax (founder's grants) -  -  -   -  (530)
    Occupancy and bank premises - hurricane repair, net of tax 741  277  -   1,018  - 
       Core net income$18,709 $12,618 $7,350  $31,327 $12,320 
           
    Pre-tax, pre-provision earnings (a+b)$24,205 $18,421 $8,118   $42,626 $14,490 
    (Gains) losses on former bank premises and equipment 540  -  -    540  (126)
    (Gains) losses on sale of securities 50  5  -    55  (25)
    Acquisition-related expenses (2) 94  10  6,573    104  7,785 
    Stock option exercises (founder's grants) -  -  -    -  71 
    Occupancy and bank premises - hurricane repair 938  350  -   1,288  - 
       Core pre-tax, pre-provision earnings$25,827 $18,786 $14,691   $44,613 $22,195 
           
            Average Diluted Shares Outstanding 20,827,786  20,738,013  18,121,958   20,783,135  15,776,376 
           
    Diluted Earnings Per Share:      
       Diluted earnings per share$0.84 $0.59 $0.11  $1.43 $0.42 
    (Gains) losses on former bank premises and equipment , net of tax 0.02  -  -   0.02  (0.01)
    (Gains) losses on sale of securities, net of tax 0.00  0.00  -   0.00  (0.00)
    Acquisition-related expenses (2), net of tax 0.00  0.00  0.30   0.00  0.40 
    Stock option exercises (founder's grants) -  -  -   -  (0.03)
    Occupancy and bank premises - hurricane repair, net of tax 0.04  0.02  -   0.06  - 
       Core diluted earnings per share$0.90 $0.61 $0.41  $1.51 $0.78 
           
       Pre-tax, pre-provision profit diluted earnings per share$1.16 $0.89 $0.45  $2.05 $0.92 
    (Gains) losses on former bank premises and equipment 0.03  -  -    0.03  (0.01)
    (Gains) losses on sale of securities 0.00  0.00  -    0.00  (0.00)
    Acquisition-related expenses (2) 0.00  0.00  0.36    0.01  0.50 
    Stock option exercises (founder's grants) -  -  -    -  0.00 
    Occupancy and bank premises - hurricane repair 0.05  0.02  -   0.06  - 
       Core pre-tax, pre-provision diluted earnings per share$1.24 $0.91 $0.81  $2.15 $1.41 
           
    (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21% for 2021 and 2020. These rates approximated the marginal tax rates.
           
    (2) Includes merger and conversion-related expenses and salary and employee benefits.    


    Business First Bancshares, Inc.
    Non-GAAP Measures
    (Unaudited)
           
     Three Months Ended Six Months Ended
     June 30,March 31,June 30, June 30,June 30,
    (Dollars in thousands, except per share data) 2021  2021  2020   2021  2020 
           
           
             Total Quarterly/Year-to-Date Average Assets$4,399,911 $4,276,430 $3,496,074  $4,338,170 $2,870,329 
             Total Quarterly/Year-to-Date Average Equity$420,640 $415,896 $349,634  $418,267 $317,486 
           
    Net Income:      
       Net income$17,428 $12,329 $2,052  $29,757 $6,551 
    (Gains) losses on former bank premises and equipment , net of tax 427  -  -   427  (100)
    (Gains) losses on sale of securities, net of tax 39  4  -   43  (20)
    Acquisition-related expenses (2), net of tax 74  8  5,298   82  6,419 
    Stock option exercises, net of tax (founder's grants) -  -  -   -  (530)
    Occupancy and bank premises - hurricane repair, net of tax 741  277  -   1,018  - 
       Core net income$18,709 $12,618 $7,350  $31,327 $12,320 
           
             Return on average assets 1.58% 1.15% 0.23%  1.37% 0.46%
             Core return on average assets 1.70% 1.18% 0.84%  1.44% 0.86%
             Return on equity 16.57% 11.86% 2.35%  14.23% 4.13%
             Core return on average equity 17.79% 12.14% 8.41%  14.98% 7.76%
           
    Interest Income:      
    Interest income$42,351 $44,262 $36,891  $86,613 $62,907 
    Core interest income 42,351  44,262  36,891   86,613  62,907 
    Interest Expense:      
    Interest expense 4,406  3,961  5,972   8,367  11,777 
    Core interest expense 4,406  3,961  5,972   8,367  11,777 
    Other Income:      
    Other income 17,376  5,083  4,996   22,459  7,800 
    (Gains) losses on former bank premises and equipment 540  -  -   540  (126)
    (Gains) losses on sale of securities 50  5  -   55  (25)
        Core other income 17,966  5,088  4,996   23,054  7,649 
    Other Expense:      
       Other expense 31,116  26,963  27,797   58,079  44,440 
    Acquisition-related expenses (94) (10) (6,573)  (104) (7,785)
    Stock option exercises - excess taxes (founder's grants) -  -  -   -  (71)
    Occupancy and bank premises - hurricane repair (938) (350) -   (1,288) - 
       Core other expense$30,084 $26,603 $21,224  $56,687 $36,584 
           
    Efficiency Ratio:      
    Other expense (a)$31,116 $26,963 $27,797   $58,079 $44,440 
    Core other expense (c)$30,084 $26,603 $21,224  $56,687 $36,584 
    Net interest and other income (1) (b)$55,371 $45,389 $35,915   $100,760 $58,905 
    Core net interest and other income (1) (d)$55,911 $45,389 $35,915  $101,300 $58,779 
    Efficiency ratio (a/b) 56.20% 59.40% 77.40%  57.64% 75.44%
    Core efficiency ratio (c/d) 53.81% 58.61% 59.10%  55.96% 62.24%
           
             Total Average Interest-Earnings Assets$3,920,569 $3,811,335 $3,176,156  $3,865,952 $2,615,879 
           
    Net Interest Income:       
             Net interest income$37,945 $40,301 $30,919  $78,246 $51,130 
             Loan discount accretion (1,617) (3,063) (1,465)  (4,680) (1,755)
             Net interest income excluding loan discount accretion$36,328 $37,238 $29,454   $73,566 $49,375 
           
    Net interest margin (2) 3.87% 4.23% 3.89%  4.05% 3.91%
    Net interest margin excluding loan discount accretion (2) 3.71% 3.91% 3.71%  3.81% 3.78%
             Net interest spread 3.68% 4.06% 3.59%  3.87% 3.57%
             Net interest spread excluding loan discount accretion 3.52% 3.73% 3.41%  3.62% 3.43%
           
    (1) Excludes gains/losses on sales of securities.      
    (2) Calculated utilizing a 30/360 day count convention.      


    Business First Bancshares, Inc.
    Non-GAAP Measures
    (Unaudited)
        
        
     June 30,March 31,June 30,
    (Dollars in thousands, except per share data) 2021  2021  2020 
        
    Total Shareholders' (Common) Equity:   
             Total shareholders' equity$431,006 $416,701 $386,336 
    Goodwill (60,062) (53,753) (53,649)
    Core deposit and customer intangible (13,271) (9,406) (10,389)
       Total tangible common equity$357,673 $353,542 $322,298 
        
        
    Total Assets:   
             Total assets$4,323,959 $4,443,586 $3,961,138 
    Goodwill (60,062) (53,753) (53,649)
    Core deposit and customer intangible (13,271) (9,406) (10,389)
       Total tangible assets$4,250,626 $4,380,427 $3,897,100 
        
    Common shares outstanding 20,740,759  20,804,753  20,667,237 
        
    Book value per common share$20.78 $20.03 $18.69 
    Tangible book value per common share$17.24 $16.99 $15.59 
    Common equity to total assets 9.97% 9.38% 9.75%
    Tangible common equity to tangible assets 8.41% 8.07% 8.27%
        

     


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