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Business First Bancshares, Inc., Announces Financial Results For Q1 2022
Источник: Nasdaq GlobeNewswire / 26 апр 2022 15:01:01 America/Chicago
BATON ROUGE, La., April 26, 2022 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended March 31, 2022, including net income of $8.7 million or $0.41 per diluted share, decreases of $3.3 million and $0.18, respectively, from the quarter ended December 31, 2021. On a non-GAAP basis, core net income for the quarter ended March 31, 2022, which excludes certain income and expenses, was $10.3 million or $0.49 per diluted share, decreases of $1.4 million and $0.08, respectively, from the quarter ended December 31, 2021.
“Over the first quarter we completed both the acquisition of Texas Citizens Bank in Houston and organically grew overall loans across our pre-acquisition footprint at a strong 25% annualized rate,” said Jude Melville, president and CEO. “The investments we’ve made in personnel and systems over the past few quarters are beginning to show returns. We are excited that our combination of healthy growth, stabilization of net interest margin and continued strong credit metrics put us in a solid position to help our clients continue navigating the uncertain times we are experiencing as a country.”
On April 26, 2022, Business First’s board of directors declared a quarterly dividend based upon financial performance for the first quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of May 15, 2022. The dividend will be paid on May 31, 2022, or as soon thereafter as practicable.
Quarterly Highlights
- Completed Texas Citizens Acquisition. Business First completed its previously announced acquisition of Texas Citizens Bancorp, Inc. (Texas Citizens), based in Pasadena, Texas on March 1, 2022. As of February 28, 2022, Texas Citizens had consolidated total assets of $534.2 million, loans of $349.5 million, and deposits of $477.2 million.
- Strong Loan Growth. Business First continued its strong organic loan growth in Texas and New Orleans due to the investments made over the course of 2021. Total loans held for investment at March 31, 2022, were $3.7 billion, an increase of $558.9 million compared to December 31, 2021, or 17.52% for the quarter. Excluding the decrease in Small Business Administration (SBA) Paycheck Protection Program (PPP) loans and loans acquired from Texas Citizens on March 1, 2022, total loans held for investment increased from the quarter ended December 31, 2021, by 6.43% or 25.71% annualized, of which 71.4% was attributable to Texas and 18.4% from our New Orleans market based on unpaid principal balance. As of March 31, 2022, approximately 31% of Business First’s loan portfolio resides in Texas based on unpaid principal balances.
- Stabilized Net Interest Margin. For the quarter ended March 31, 2022, net interest income totaled $40.5 million and net interest margin and net interest spread were 3.51% and 3.35%, respectively, compared to $38.3 million, 3.57% and 3.38% for the quarter ended December 31, 2021. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $920,000) were 3.43% and 3.27%, respectively, for the quarter ended March 31, 2022, compared to 3.42% and 3.24% (excluding loan discount accretion of $1.6 million) for the quarter ended December 31, 2021. Non-GAAP net interest margin rose one basis point over the linked quarter despite the negative impact of two fewer days during the quarter ended March 31, 2022.
- Continued Strong Credit Quality. Credit quality remained relatively stable from the linked quarter. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from 0.41% and 0.31%, respectively, at December 31, 2021, to 0.29% and 0.23% at March 31, 2022. The reduction was partially attributable to charge-offs during the quarter ended March 31, 2022, and the addition of Texas Citizens. Excluding the charge-offs and the addition of Texas Citizens, credit quality slightly improved over the linked quarter.
Financial Condition
March 31, 2022, Compared to December 31, 2021
Loans
Loans held for investment increased $558.9 million or 17.52% for the quarter ended March 31, 2022. The increase was attributable to the acquisition of Texas Citizens on March 1, 2022, and new loan originations during the quarter.
Excluding the net decrease in SBA PPP loans and loans acquired from Texas Citizens on March 1, 2022, total loans held for investment increased for the quarter ended March 31, 2022, by $226.9 million or 6.43% or 25.71% annualized.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from 0.41% as of December 31, 2021, to 0.29% as of March 31, 2022. Nonperforming assets as a percentage of total assets decreased from 0.31% as of December 31, 2021, to 0.23% as of March 31, 2022. The reductions were partially attributable to charge-offs during the quarter ended March 31, 2022, and the addition of Texas Citizens. Excluding the charge-offs and Texas Citizens addition, credit quality slightly improved for the quarter ended March 31, 2022.
Total Shareholders’ Equity
Book value per common share was $20.25 at March 31, 2022, compared to $21.24 at December 31, 2021.
On a non-GAAP basis, tangible book value per share was $15.57 at March 31, 2022, compared to $17.71 at December 31, 2021. Tangible book value per share was impacted by the acquisition of Texas Citizens on March 1, 2022, resulting in dilution of $0.55, and a decrease in accumulated other comprehensive income of $38.6 million attributable to fair value adjustments on Business First’s available for sale investment portfolio, resulting in dilution of $1.88.
March 31, 2022, Compared to March 31, 2021
Loans
Total loans held for investment increased by $706.5 million or 23.23% compared to March 31, 2021. Excluding SBA PPP loans and loans acquired from Texas Citizens on March 1, 2022, loans increased $741.5 million, or 27.92%.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from 0.44% as of March 31, 2021, to 0.29% as of March 31, 2022. Nonperforming assets as a percentage of total assets decreased from 0.52% as of March 31, 2021, to 0.23% as of March 31, 2022, largely due to the sales of nonperforming assets.
Total Shareholders’ Equity
Book value per common share was $20.25 at March 31, 2022, compared to $20.03 at March 31, 2021. On a non-GAAP basis, tangible book value per share was $15.57 at March 31, 2022, compared to $16.99 at March 31, 2021. Tangible book value per share was impacted by the acquisition of Texas Citizens on March 1, 2022, and more significantly by a decrease in accumulated other comprehensive income of $45.9 million attributable to fair value adjustments on Business First’s available-for-sale investment portfolio.
Results of Operations
First Quarter 2022 Compared to Fourth Quarter 2021
Net Income and Diluted Earnings Per Share
For the quarter ended March 31, 2022, net income was $8.7 million, or $0.41 per diluted share, compared to net income of $12.1 million or $0.59 per diluted share, for the quarter ended December 31, 2021, decreases of $3.3 million and $0.18, respectively. The decrease was largely attributable to a $2.3 million increase in salaries and benefits (approximately $530,000 attributable to salaries of Texas Citizens, $114,000 related to production bonuses, and $360,000 related to bonus payments/taxes attributable to 2021), and a decrease in other income attributable to $708,000 losses on disposals of other assets on former premises and equipment during the quarter ended March 31, 2022. Further, a $492,000 gain on sale of the Oak Grove Banking Center, $444,000 gain on sales of securities, and $555,000 in Small Business Investment Company (SBIC) income occurred during the quarter ended December 31, 2021. These amounts were partially offset by a $2.1 million increase in net interest income during the quarter ended March 31, 2022.
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2022, was $10.3 million or $0.49 per diluted share, compared to core net income of $11.7 million or $0.57 per diluted share, for the quarter ended December 31, 2021. Notable noncore events impacting earnings for the quarter ended March 31, 2022, included $717,000 losses in disposals of former bank premises and equipment in other income, $811,000 of expenses attributable to acquisition-related expenses, and $231,000 of expenses attributable to hurricane repairs, compared to $444,000 in gains on sale of securities, a $492,000 gain on sale of the Oak Grove Banking Center, and $266,000 of expenses attributable to acquisition-related expenses, for the quarter ended December 31, 2021.
Interest Income
For the quarter ended March 31, 2022, net interest income totaled $40.5 million and net interest margin and net interest spread were 3.51% and 3.35%, respectively, compared to $38.3 million, 3.57% and 3.38% for the quarter ended December 31, 2021. The average yield on total interest-earning assets was 3.83% for the quarter ended March 31, 2022, compared to 3.93% for the quarter ended December 31, 2021. The increase in interest income was largely attributable to loan growth during the fourth quarter of 2021 and first quarter of 2022. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.75% for the quarter ended March 31, 2022, compared to 4.93% for the quarter ended December 31, 2021, largely due to two fewer days and $639,000 less discount accretion for the quarter ended March 31, 2022.
Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $920,000) were 3.43% and 3.27%, respectively, for the quarter ended March 31, 2022, compared to 3.42% and 3.24% (excluding loan discount accretion of $1.6 million) for the quarter ended December 31, 2021.
Interest Expense
For the quarter ended March 31, 2022, overall cost of funds (which includes noninterest-bearing deposits) decreased by five basis points, from 0.38% to 0.33%, compared to the quarter ended December 31, 2021, due to increased noninterest deposits, lower yielding interest-bearing deposits, and two fewer days.
Other Income
For the quarter ended March 31, 2022, other income was lower by $1.8 million compared to the quarter ended December 31, 2021. The decrease was largely attributable to a $708,000 increase on losses related to disposal of other assets of former premises and equipment during the quarter ended March 31, 2022, and the $492,000 gain on sale related to the sale of the Oak Grove Banking Center, $444,000 gain on sales of securities, and $440,000 decrease in SBIC income during the quarter ended December 31, 2021.
Other Expenses
For the quarter ended March 31, 2022, other expense increased by $3.6 million compared to the quarter ended December 31, 2021. The increase was largely attributable to increases in salaries and benefits, $2.3 million, merger and conversion-related expenses, $545,000, and occupancy and bank premises, $530,000. The majority of the increases were attributable to the acquisition of Texas Citizens on March 1, 2022; however, salaries and benefits also increased largely due to additional staffing and merit increases during the quarter ended March 31, 2022.
Provision for Loan Losses
During the quarter ended March 31, 2022, Business First recorded a provision for loan losses of $1.6 million, compared to $1.3 million for the quarter ended December 31, 2021. The reserve for the quarter ended December 31, 2021, was driven primarily by new loan growth and charge-offs recorded, partially offset by improvement in the qualitative factors (attributed to the general economy and energy sector).
Return on Assets and Equity
Return on average assets and equity, each on an annualized basis, were 0.71% and 7.83%, respectively, for the quarter ended March 31, 2022, compared to 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021.
First Quarter 2022 Compared to First Quarter 2021
Net Income and Diluted Earnings Per Share
For the quarter ended March 31, 2022, net income was $8.7 million or $0.41 per diluted share, compared to net income of $12.3 million or $0.59 per diluted share, for the quarter ended March 31, 2021. The decreases in net income and diluted earnings per share were largely attributable to the $7.0 million increase in other expenses, partially offset by $1.0 million in additional other income and $1.7 million less in provision for loan losses.
On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2022, was $10.3 million or $0.49 per diluted share, compared to core net income of $12.6 million or $0.61 per diluted share, for the quarter ended March 31, 2021. Notable noncore events impacting earnings for the quarter ended March 31, 2022, included $717,000 in losses on disposals of former bank premises and equipment in other income, $811,000 of expenses attributable to acquisition-related expenses, and $231,000 of expenses attributable to hurricane repairs, compared to the incurrence of $350,000 in losses attributed to former bank premises and equipment in other expenses for the quarter ended March 31, 2021.
Interest Income
For the quarter ended March 31, 2022, net interest income totaled $40.5 million and net interest margin and net interest spread were 3.51% and 3.35%, respectively, compared to $40.3 million, 4.23% and 4.06% for the quarter ended March 31, 2021. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.75% for the quarter ended March 31, 2022, compared to 5.53% for the quarter ended March 31, 2021. The quarter ended March 21, 2021, included additional loan discount accretion of $2.1 million. Excluding SBA PPP interest income and loan discount accretion, loan interest income increased $5.8 million from the prior year quarter.
Average yield on total interest-earning assets, net interest margin, and net interest spread were negatively impacted for the quarter ended March 31, 2022, compared to the quarter ended March 31, 2021, by lower yielding loans, including SBA PPP loans, and securities, offset partially by lower deposit and borrowing yields.
Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $920,000) were 3.43% and 3.27%, respectively, for the quarter ended March 31, 2022, compared to 3.91% and 3.73% (excluding loan discount accretion of $3.1 million) for the quarter ended March 31, 2021.
Interest Expense
For the quarter ended March 31, 2022, overall cost of funds (which includes noninterest-bearing deposits) decreased by eight basis points, from 0.41% to 0.33%, compared to the quarter ended March 31, 2021. The decrease in cost of funds was primarily attributable to an overall reduction in interest rates on deposit offerings and increase in noninterest-bearing deposits, offset by an increase associated with higher subordinated debt balances.
Other Income
For the quarter ended March 31, 2022, the increase in other income of $1.0 million, compared to the quarter ended March 31, 2021, was largely attributable to the $1.3 million increase in fees and brokerage commissions related to the acquisition of Smith Shellnut Wilson, LLC on April 1, 2021, and a $238,000 increase in service charges for deposit accounts, offset by a $834,000 increase on losses on disposal of other assets mainly attributable to former premises and equipment.
Other Expenses
For the quarter ended March 31, 2022, the increase in other expense was $7.0 million compared to the quarter ended March 31, 2021. Notable increases include an increase in salaries and employee benefits of $4.8 million, attributable to an increase in employees, including the acquisition of Texas Citizens on March 1, 2022, merger and conversion-related expense increase of $801,000 attributable to the Texas Citizens acquisition, and other expenses increase of $613,000.
Provision for Loan Losses
During the quarter ended March 31, 2022, Business First recorded a provision for loan losses of $1.6 million compared to $3.4 million for the quarter ended March 31, 2021. The reserve for the quarter ended March 31, 2021, was affected by the impact of the COVID-19 pandemic on the qualitative factors at the time.
Return on Assets and Equity
Return on average assets and return on average equity, each on an annualized basis, were 0.71% and 7.83%, respectively, for the quarter ended March 31, 2022, from 1.15% and 11.86%, respectively, for the quarter ended March 31, 2021.
About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $5.4 billion in assets, $5.7 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $1.0 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a three-time recipient of Baton Rouge Business Report’s “Best Places to Work in Baton Rouge.” Visit b1BANK.com for more information.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP “core” measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Business First’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.
Special Note Regarding Forward-Looking Statements
Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.
Additional Information
For additional information about Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.
No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.comBusiness First Bancshares, Inc. Selected Financial Information (Unaudited) For the Quarter Ended March 31, December 31, March 31, (Dollars in thousands) 2022 2021 2021 Balance Sheet Ratios Loans (HFI) to Deposits 80.48 % 78.23 % 78.83 % Shareholders’ Equity to Assets Ratio 8.52 % 9.17 % 9.38 % Loans Receivable Held for Investment Commercial (1) $ 817,093 $ 721,385 $ 962,099 Real Estate: Construction and Land 581,661 548,528 418,234 Farmland 149,270 87,463 52,861 1-4 Family Residential 485,067 467,699 460,907 Multi-Family Residential 109,773 97,508 77,390 Nonfarm Nonresidential 1,481,046 1,144,426 966,416 Total Real Estate 2,806,817 2,345,624 1,975,808 Consumer and Other (1) 124,588 122,599 104,071 Total Loans (Held for Investment) $ 3,748,498 $ 3,189,608 $ 3,041,978 Allowance for Loan Losses Balance, Beginning of Period $ 29,112 $ 28,146 $ 22,024 Charge-offs – Quarterly (1,668 ) (385 ) (309 ) Recoveries – Quarterly 184 51 177 Provision for Loan Losses – Quarterly 1,617 1,300 3,359 Balance, End of Period $ 29,245 $ 29,112 $ 25,251 Allowance for Loan Losses to Total Loans (HFI) 0.78 % 0.91 % 0.83 % Net Charge-offs to Average Total Loans 0.04 % 0.01 % 0.00 % Remaining Loan Purchase Discount $ 40,623 $ 27,573 $ 32,517 Nonperforming Assets Nonperforming Loans: Nonaccrual Loans (2) $ 10,784 $ 12,868 $ 11,956 Loans Past Due 90 Days or More (2) 26 222 1,479 Total Nonperforming Loans 10,810 13,090 13,435 Other Nonperforming Assets: Other Real Estate Owned 1,369 1,427 8,851 Other Nonperforming Assets 84 - 623 Total Other Nonperforming Assets 1,453 1,427 9,474 Total Nonperforming Assets $ 12,263 $ 14,517 $ 22,909 Nonperforming Loans to Total Loans (HFI) 0.29 % 0.41 % 0.44 % Nonperforming Assets to Total Assets 0.23 % 0.31 % 0.52 % (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $6.0 million of the commercial portfolio as of March 31, 2022. SBA PPP loans accounted for $5.4 million of the commercial portfolio as of December 31, 2021. SBA PPP loans accounted for $385.8 million and $0.1 million of the commercial and consumer portfolios, respectively, as of March 31, 2021. (2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. Business First Bancshares, Inc. Selected Financial Information (Unaudited) Three Months Ended March 31, December 31, March 31, (Dollars in thousands, except per share data) 2022 2021 2021 Per Share Data Basic Earnings per Common Share $ 0.42 $ 0.59 $ 0.60 Diluted Earnings per Common Share 0.41 0.59 0.59 Dividends per Common Share 0.12 0.12 0.10 Book Value per Common Share 20.25 21.24 20.03 Average Common Shares Outstanding 21,019,716 20,299,704 20,621,930 Average Diluted Shares Outstanding 21,162,482 20,462,317 20,738,013 End of Period Common Shares Outstanding 22,564,607 20,400,349 20,804,753 Annualized Performance Ratios Return on Average Assets 0.71 % 1.05 % 1.15 % Return on Average Equity 7.83 % 11.20 % 11.86 % Net Interest Margin 3.51 % 3.57 % 4.23 % Net Interest Spread 3.35 % 3.38 % 4.06 % Efficiency Ratio (1) 72.67 % 66.07 % 59.19 % Total Quarterly Average Assets $ 4,920,105 $ 4,584,460 $ 4,276,430 Total Quarterly Average Equity 446,003 430,834 415,896 Other Expenses Salaries and Employee Benefits $ 19,703 $ 17,355 $ 14,926 Occupancy and Bank Premises 2,052 1,522 1,811 Depreciation and Amortization 1,569 1,476 1,358 Data Processing 2,116 2,032 1,823 FDIC Assessment Fees 743 668 509 Legal and Other Professional Fees 543 480 741 Advertising and Promotions 531 999 477 Utilities and Communications 779 586 575 Ad Valorem Shares Tax 813 449 700 Directors’ Fees 202 207 188 Other Real Estate Owned Expenses and Write-Downs 14 76 379 Merger and Conversion-Related Expenses 811 266 10 Other 3,844 3,982 3,231 Total Other Expenses $ 33,720 $ 30,098 $ 26,728 Other Income Service Charges on Deposit Accounts $ 1,805 $ 1,800 $ 1,567 Gain (Loss) on Sales of Securities (31 ) 444 (5 ) Debit Card and ATM Fee Income 1,501 1,554 1,336 Bank-Owned Life Insurance Income 369 367 318 Gain on Sales of Loans 65 3 (21 ) Mortgage Origination Income 209 169 229 Fees and Brokerage Commission 1,835 1,721 543 Gain (Loss) on Sales of Other Real Estate Owned 8 (35 ) 46 Gain (Loss) on Disposal of Other Assets (717 ) (9 ) 117 Gain on Sale of Branch - 492 - Pass-Through Income from SBIC Partnerships 115 555 53 Other 737 597 665 Total Other Income $ 5,896 $ 7,658 $ 4,848 (1) Non-GAAP: Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities. Business First Bancshares, Inc. Consolidated Balance Sheets (Unaudited) March 31, December 31, March 31, (Dollars in thousands) 2022 2021 2021 Assets Cash and Due From Banks $ 282,074 $ 68,375 $ 355,257 Federal Funds Sold 67,822 227,044 105,595 Securities Available for Sale, at Fair Values 961,358 1,021,061 721,224 Loans Held for Sale 13,559 - - Mortgage Loans Held for Sale 1,354 1,200 2,298 Loans and Lease Receivable 3,748,498 3,189,608 3,041,978 Allowance for Loan Losses (29,245 ) (29,112 ) (25,251 ) Net Loans and Lease Receivable 3,719,253 3,160,496 3,016,727 Premises and Equipment, Net 63,003 58,155 57,931 Accrued Interest Receivable 20,146 19,597 25,910 Other Equity Securities 23,034 16,619 12,584 Other Real Estate Owned 1,369 1,427 8,851 Cash Value of Life Insurance 72,896 60,380 60,348 Deferred Taxes, Net 23,040 8,822 5,536 Goodwill 89,911 59,894 53,753 Core Deposit and Customer Intangibles 15,617 12,203 9,406 Other Assets 7,799 11,105 8,166 Total Assets $ 5,362,235 $ 4,726,378 $ 4,443,586 Liabilities Deposits Noninterest-Bearing $ 1,544,197 $ 1,291,036 $ 1,186,625 Interest-Bearing 3,113,541 2,786,247 2,672,109 Total Deposits 4,657,738 4,077,283 3,858,734 Securities Sold Under Agreements to Repurchase 23,345 19,121 21,419 Short-Term Borrowings 20 20 20 Subordinated Debt 111,209 81,427 77,500 Subordinated Debt – Trust Preferred Securities 5,000 5,000 5,000 Federal Home Loan Bank Borrowings 79,957 82,022 33,073 Accrued Interest Payable 895 1,354 1,941 Other Liabilities 27,234 26,783 29,198 Total Liabilities 4,905,398 4,293,010 4,026,885 Shareholders' Equity Common Stock 22,565 20,400 20,805 Additional Paid-In Capital 345,858 292,271 300,282 Retained Earnings 128,168 121,874 89,441 Accumulated Other Comprehensive Income (Loss) (39,754 ) (1,177 ) 6,173 Total Shareholders’ Equity 456,837 433,368 416,701 Total Liabilities and Shareholders’ Equity $ 5,362,235 $ 4,726,378 $ 4,443,586 Business First Bancshares, Inc. Consolidated Statements of Income (Unaudited) Three Months Ended March 31, December 31, March 31, (Dollars in thousands) 2022 2021 2021 Interest Income: Interest and Fees on Loans $ 40,183 $ 38,337 $ 41,419 Interest and Dividends on Securities 3,844 3,904 2,802 Interest on Federal Funds Sold and Due From Banks 95 50 41 Total Interest Income 44,122 42,291 44,262 Interest Expense: Interest on Deposits 2,263 2,645 3,243 Interest on Borrowings 1,384 1,302 718 Total Interest Expense 3,647 3,947 3,961 Net Interest Income 40,475 38,344 40,301 Provision for Loan Losses: 1,617 1,300 3,359 Net Interest Income After Provision for Loan Losses 38,858 37,044 36,942 Other Income: Service Charges on Deposit Accounts 1,805 1,800 1,567 Gain (Loss) on Sales of Securities (31 ) 444 (5 ) Gain (Loss) on Sales of Loans 65 3 (21 ) Other Income 4,057 5,411 3,307 Total Other Income 5,896 7,658 4,848 Other Expenses: Salaries and Employee Benefits 19,703 17,355 14,926 Occupancy and Equipment Expense 4,413 3,857 3,717 Merger and Conversion-Related Expense 811 266 10 Other Expenses 8,793 8,620 8,075 Total Other Expenses 33,720 30,098 26,728 Income Before Income Taxes: 11,034 14,604 15,062 Provision for Income Taxes: 2,303 2,536 2,733 Net Income: $ 8,731 $ 12,068 $ 12,329 Business First Bancshares, Inc. Consolidated Net Interest Margin (Unaudited) Three Months Ended March 31, 2022 December 31, 2021 March 31, 2021 Average Average Average Outstanding Interest Earned / Average Outstanding Interest Earned / Average Outstanding Interest Earned / Average (Dollars in thousands) Balance Interest Paid Yield / Rate Balance Interest Paid Yield / Rate Balance Interest Paid Yield / Rate Assets Interest-Earning Assets: Total Loans (Excluding SBA PPP) $ 3,382,325 $ 40,174 4.75 % $ 3,106,477 $ 38,318 4.93 % $ 2,643,668 $ 36,538 5.53 % SBA PPP Loans 3,725 9 1.00 % 7,733 19 1.00 % 374,958 4,881 5.21 % Securities Available for Sale 1,005,252 3,844 1.53 % 1,041,437 3,904 1.50 % 691,476 2,802 1.62 % Interest-Bearing Deposit in Other Banks 221,148 95 0.17 % 143,488 50 0.14 % 101,233 41 0.16 % Total Interest-Earning Assets 4,612,450 44,122 3.83 % 4,299,135 42,291 3.93 % 3,811,335 44,262 4.65 % Allowance for Loan Losses (29,260 ) (28,379 ) (22,709 ) Noninterest-Earning Assets 336,915 313,704 487,804 Total Assets $ 4,920,105 $ 44,122 $ 4,584,460 $ 42,291 $ 4,276,430 $ 44,262 Liabilities and Shareholders’ Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 2,882,838 $ 2,263 0.31 % $ 2,653,041 $ 2,645 0.40 % $ 2,584,263 $ 3,243 0.50 % Subordinated Debt 91,354 1,115 4.88 % 81,427 1,026 5.04 % 28,450 459 6.45 % Subordinated Debt – Trust Preferred Securities 5,000 42 3.36 % 5,000 42 3.36 % 5,000 42 3.36 % Advances from Federal Home Loan Bank (FHLB) 80,375 223 1.11 % 83,374 229 1.10 % 37,022 111 1.20 % Other Borrowings 19,666 4 0.08 % 25,774 5 0.08 % 31,696 106 1.34 % Total Interest-Bearing Liabilities 3,079,233 3,647 0.47 % 2,848,616 3,947 0.55 % 2,686,431 3,961 0.59 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits $ 1,370,015 $ 1,276,279 $ 1,146,950 Other Liabilities 24,854 28,731 27,153 Total Noninterest-Bearing Liabilities 1,394,869 1,305,010 1,174,103 Shareholders’ Equity 446,003 430,834 415,896 Total Liabilities and Shareholders’ Equity $ 4,920,105 $ 4,584,460 $ 4,276,430 Net Interest Spread 3.35 % 3.38 % 4.06 % Net Interest Income $ 40,475 $ 38,344 $ 40,301 Net Interest Margin 3.51 % 3.57 % 4.23 % Overall Cost of Funds 0.33 % 0.38 % 0.41 % NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention. Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) Three Months Ended March 31, December 31, March 31, (Dollars in thousands, except per share data) 2022 2021 2021 Interest Income: Interest income $ 44,122 $ 42,291 $ 44,262 Core interest income 44,122 42,291 44,262 Interest Expense: Interest expense 3,647 3,947 3,961 Core interest expense 3,647 3,947 3,961 Provision for Loan Losses: (b) Provision for loan losses 1,617 1,300 3,359 Core provision expense 1,617 1,300 3,359 Other Income: Other income 5,896 7,658 4,848 Losses on former bank premises and equipment 717 78 - (Gains) 1osses on sale of securities 31 (444 ) 5 (Gains) on sale of branch - (492 ) - Core other income 6,644 6,800 4,853 Other Expense: Other expense 33,720 30,098 26,728 Acquisition-related expenses (2) (811 ) (266 ) (10 ) Occupancy and bank premises - hurricane repair (231 ) (57 ) (350 ) Core other expense 32,678 29,775 26,368 Pre-Tax Income: (a) Pre-tax income 11,034 14,604 15,062 Losses on former bank premises and equipment 717 78 - (Gains) 1osses on sale of securities 31 (444 ) 5 (Gains) on sale of branch - (492 ) - Acquisition-related expenses (2) 811 266 10 Occupancy and bank premises - hurricane repair 231 57 350 Core pre-tax income 12,824 14,069 15,427 Provision for Income Taxes: (1) Provision for income taxes 2,303 2,536 2,733 Tax on losses on former bank premises and equipment 151 16 - Tax on (gains) losses on sale of securities 7 (93 ) 1 Tax on (gains) on sale of branch - (138 ) - Tax on acquisition-related expenses (2) 48 62 2 Tax on occupancy and bank premises – hurricane repair 49 12 74 Core provision for income taxes 2,558 2,395 2,810 Net Income: Net income 8,731 12,068 12,329 Losses on former bank premises and equipment, net of tax 566 62 - (Gains) losses on sale of securities, net of tax 24 (351 ) 4 (Gains) on sale of branch - (354 ) - Acquisition-related expenses (2), net of tax 763 204 8 Occupancy and bank premises – hurricane repair, net of tax 182 45 276 Core net income $ 10,266 $ 11,674 $ 12,617 Pre-tax, pre-provision earnings (a+b) $ 12,651 $ 15,904 $ 18,421 Losses on former bank premises and equipment 717 78 - (Gains) losses on sale of securities 31 (444 ) 5 (Gains) on sale of branch - (492 ) - Acquisition-related expenses (2) 811 266 10 Occupancy and bank premises – hurricane repair 231 57 350 Core pre-tax, pre-provision earnings $ 14,441 $ 15,369 $ 18,786 Average Diluted Shares Outstanding 21,162,482 20,462,317 20,738,013 Diluted Earnings Per Share: Diluted earnings per share $ 0.41 $ 0.59 $ 0.59 Losses on former bank premises and equipment, net of tax 0.03 0.00 - (Gains) losses on sale of securities, net of tax 0.00 (0.01 ) 0.00 (Gains) on sale of branch - (0.02 ) - Acquisition-related expenses (2), net of tax 0.04 0.01 0.00 Occupancy and bank premises – hurricane repair, net of tax 0.01 0.00 0.02 Core diluted earnings per share $ 0.49 $ 0.57 $ 0.61 Pre-tax, pre-provision profit diluted earnings per share $ 0.60 $ 0.78 $ 0.89 Losses on former bank premises and equipment 0.03 0.00 - (Gains) losses on sale of securities 0.00 (0.02 ) 0.00 (Gains) on sale of branch - (0.02 ) - Acquisition-related expenses (2) 0.04 0.01 0.00 Occupancy and bank premises – hurricane repair 0.01 0.00 0.02 Core pre-tax, pre-provision diluted earnings per share $ 0.68 $ 0.75 $ 0.91 (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.00% for 2022 and 2021. These rates approximated the marginal tax rates. (2) Includes merger and conversion-related expenses and salary and employee benefits. Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) Three Months Ended March 31, December 31, March 31, (Dollars in thousands, except per share data) 2022 2021 2021 Total Quarterly Average Assets $ 4,920,105 $ 4,584,460 $ 4,276,430 Total Quarterly Average Equity $ 446,003 $ 430,834 $ 415,896 Net Income: Net income $ 8,731 $ 12,068 $ 12,329 Losses on former bank premises and equipment, net of tax 566 62 - (Gains) losses on sale of securities, net of tax 24 (351 ) 4 (Gains) on sale of branch, net of tax - (354 ) - Acquisition-related expenses, net of tax 763 204 8 Occupancy and bank premises – hurricane repair, net of tax 182 45 276 Core net income $ 10,266 $ 11,674 $ 12,617 Return on average assets 0.71 % 1.05 % 1.15 % Core return on average assets 0.83 % 1.02 % 1.18 % Return on equity 7.83 % 11.20 % 11.86 % Core return on average equity 9.21 % 10.84 % 12.14 % Interest Income: Interest income $ 44,122 $ 42,291 $ 44,262 Core interest income 44,122 42,291 44,262 Interest Expense: Interest expense 3,647 3,947 3,961 Core interest expense 3,647 3,947 3,961 Other Income: Other income 5,896 7,658 4,848 Losses on former bank premises and equipment 717 78 - (Gains) losses on sale of securities 31 (444 ) 5 (Gains) on sale of branch - (492 ) - Core other income 6,644 6,800 4,853 Other Expense: Other expense 33,720 30,098 26,728 Acquisition-related expenses (811 ) (266 ) (10 ) Occupancy and bank premises - hurricane repair (231 ) (57 ) (350 ) Core other expense $ 32,678 $ 29,775 $ 26,368 Efficiency Ratio: Other expense (a) $ 33,720 $ 30,098 $ 26,728 Core other expense (c) $ 32,678 $ 29,775 $ 26,368 Net interest and other income (1) (b) $ 46,402 $ 45,558 $ 45,154 Core net interest and other income (1) (d) $ 47,119 $ 45,144 $ 45,154 Efficiency ratio (a/b) 72.67 % 66.07 % 59.19 % Core efficiency ratio (c/d) 69.35 % 65.96 % 58.40 % Total Average Interest-Earnings Assets $ 4,612,450 $ 4,299,135 $ 3,811,335 Net Interest Income: Net interest income $ 40,475 $ 38,344 $ 40,301 Loan discount accretion (920 ) (1,559 ) (3,063 ) Net interest income excluding loan discount accretion $ 39,555 $ 36,785 $ 37,238 Net interest margin (2) 3.51 % 3.57 % 4.23 % Net interest margin excluding loan discount accretion (2) 3.43 % 3.42 % 3.91 % Net interest spread 3.35 % 3.38 % 4.06 % Net interest spread excluding loan discount accretion 3.27 % 3.24 % 3.73 % (1) Excludes gains/losses on sales of securities. (2) Calculated utilizing a 30/360 day count convention. Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) March 31, December 31, March 31, (Dollars in thousands, except per share data) 2022 2021 2021 Total Shareholders’ (Common) Equity: Total shareholders' equity $ 456,837 $ 433,368 $ 416,701 Goodwill (89,911 ) (59,894 ) (53,753 ) Core deposit and customer intangible (15,617 ) (12,203 ) (9,406 ) Total tangible common equity $ 351,309 $ 361,271 $ 353,542 Total Assets: Total assets $ 5,362,235 $ 4,726,378 $ 4,443,586 Goodwill (89,911 ) (59,894 ) (53,753 ) Core deposit and customer intangible (15,617 ) (12,203 ) (9,406 ) Total tangible assets $ 5,256,707 $ 4,654,281 $ 4,380,427 Common shares outstanding 22,564,607 20,400,349 20,804,753 Book value per common share $ 20.25 $ 21.24 $ 20.03 Tangible book value per common share $ 15.57 $ 17.71 $ 16.99 Common equity to total assets 8.52 % 9.17 % 9.38 % Tangible common equity to tangible assets 6.68 % 7.76 % 8.07 %