• Business First Bancshares, Inc., Announces Financial Results for Q2 2024

    来源: Nasdaq GlobeNewswire / 25 7月 2024 16:01:01   America/New_York

    BATON ROUGE, La., July 25, 2024 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended June 30, 2024, including net income available to common shareholders of $15.9 million or $0.62 per diluted common share, increases of $3.6 million and $0.14, respectively, compared to the linked quarter ended March 31, 2024. On a non-GAAP basis, core net income for the quarter ended June 30, 2024, which excludes certain income and expenses, was $16.3 million or $0.64 per diluted common share, increases of $3.5 million and $0.14, respectively, from the linked quarter.

    “I am encouraged by our company's performance in the second quarter,” said Jude Melville, president and CEO, “Our bankers' hard work and focus paid off in quarter-over- quarter improvement in earnings, net interest margin, noninterest income, loan and deposit mix and capital accretion. We look forward to continuing that hard work over the course of 2024.”

    On Thursday, July 25, 2024, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the second quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on August 31, 2024, or as soon thereafter as practicable, to the shareholders of record as of August 15, 2024.

    Quarterly Highlights

    • Net Interest Margin (NIM) Expansion. For the quarter ended June 30, 2024, net interest income totaled $54.0 million and net interest margin and net interest spread were 3.45% and 2.47%, respectively, compared to $51.5 million, 3.32% and 2.36% from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.7 million) were 3.34% and 2.37%, respectively, for the quarter ended June 30, 2024, compared to 3.27% and 2.31% (excluding loan discount accretion of $0.8 million) for the linked quarter.
    • Noninterest Income Investments. Noninterest income for the quarter ended June 30, 2024, increased $2.8 million or 29.73% from the linked quarter. Significant drivers for the quarter were increased loan sale activity, largely related to a $1.9 million gain on sale from a newly originated USDA loan, as well as increased origination and sale of Small Business Administration (SBA) loans, due to the first quarter acquisition of Waterstone LSP. Additionally, continued progress in the newly formed customer swap business along with improved revenue in service charge fees and debit card and ATM fees improved financial results.
    • Deposits. During the quarter ended June 30, 2024, noninterest-bearing deposits increased $15.2 million or 1.17% and money market accounts increased $130.1 million or 7.26%. Deposits decreased $9.1 million or 0.16%, 0.66% annualized, for the quarter ended June 30, 2024, compared to the linked quarter. The decrease in interest-bearing deposits was attributable to strategic reductions of $75.1 million of brokered deposits with a weighted average rate of 5.16%.
    • Loan Growth. Loans held for investment increased $74.0 million or 1.45%, 5.85% annualized, from the linked quarter. Loan growth was mostly attributable to the $93.4 million increase in the commercial and industrial (C&I) portfolio. Business First continued the trend of reducing construction and development (C&D) portfolio exposure, with a decrease of $24.6 million from the linked quarter. 
    • Oakwood Acquisition. On April 25, 2024, Business First announced that it entered into a definitive agreement to acquire Oakwood Bancshares, Inc. (Oakwood) and its wholly-owned subsidiary, Oakwood Bank. Oakwood had approximately $839.7 million of total assets as of March 31, 2024.

    Statement of Financial Condition

    Loans

    Loans held for investment increased $74.0 million or 1.45%, 5.85% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the C&I portfolio of $93.4 million, offset by a $24.6 million reduction in the C&D portfolio.

    The North Louisiana region produced 59.57% of net loan growth from the linked quarter based on unpaid principal balance, while the Capital region produced 21.49% and Bayou region produced 20.93%. Based on unpaid principal balances, Texas-based loans represent approximately 36% of the overall loan portfolio as of June 30, 2024.

    Credit Quality

    Credit quality remained stable during the quarter ended June 30, 2024, compared to the linked quarter. The ratio of nonperforming loans compared to loans held for investment remained unchanged at 0.43% at June 30, 2024, while the ratio of nonperforming assets compared to total assets slightly increased from 0.34% to 0.36% at June 30, 2024. The increase was attributable to increases of $644,000 in other real estate owned and $730,000 in nonperforming loans.

    Securities

    The securities portfolio increased $2.1 million or 0.25%, from the linked quarter, impacted by $4.9 million in positive fair value adjustments. The securities portfolio, based on estimated fair value, represented 13.05% of total assets as of June 30, 2024.

    Deposits

    Deposits decreased $9.1 million or 0.16%, 0.66% annualized, for the quarter ended June 30, 2024, compared to the linked quarter. During the quarter ended June 30, 2024, noninterest-bearing deposits increased $15.2 million or 1.17%. The increase in noninterest bearing deposits was attributable to $39.1 million in new account originations as of June 30, 2024. The North Louisiana region produced 37.8% of the new account balances, followed by the Dallas-Fort Worth region and Southwest Louisiana region with 26.3% and 11.5%, respectively.

    Interest-bearing deposits decreased $24.2 million or 0.57%, compared to the linked quarter. The decrease in interest-bearing deposits was attributable to strategic reductions of $75.1 million of brokered deposits with a weighted average rate of 5.16%.

    Money market accounts increased $130.1 million or 7.26% from the linked quarter. The increase in money market balances was attributable to $138.8 million in new account originations with a weighted average rate of 4.88% as of June 30, 2024. The Southwest Louisiana region produced 44.2% of the new account balances, followed by the Texas regions and Southeast Louisiana region with 21.6% and 17.0%, respectively.

    Borrowings

    Borrowings decreased $1.8 million or 0.42%, from the linked quarter.

    Shareholders’ Equity

    Accumulated other comprehensive income (AOCI) increased $3.9 million during the second quarter due to positive after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $23.24 at June 30, 2024, compared to $22.64 at March 31, 2024. On a non-GAAP basis, tangible book value per common share increased from $18.61 at March 31, 2024, to $19.22 at June 30, 2024.

    Results of Operations

    Net Interest Income

    For the quarter ended June 30, 2024, net interest income totaled $54.0 million, compared to $51.5 million from the linked quarter. Loan and interest-earning asset yields of 7.07% and 6.38%, respectively, increased 19 and 20 basis points, respectively, compared to 6.88% and 6.18% from the linked quarter. Both ratios were impacted positively by a $900,000 increase in loan discount accretion. Net interest margin and net interest spread were 3.45% and 2.47% compared to 3.32% and 2.36%, respectively, for the linked quarter. The overall cost of funds, which include noninterest- bearing deposits, increased from 3.00% to 3.07% or 7 basis points, from the linked quarter due to higher cost deposits.

    Non-GAAP net interest income (excluding loan discount accretion of $1.7 million) totaled $52.3 million for the quarter ended June 30, 2024, compared to $50.7 million (excluding loan discount accretion of $0.8 million) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.7 million) were 3.34% and 2.37%, respectively, for the quarter ended June 30, 2024, compared to 3.27% and 2.31% (excluding loan discount accretion of $0.8 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 13 basis points to 6.94% from 6.81%, and interest earnings asset yields increased 15 basis points to 6.28% from 6.13%, compared to the linked quarter.

    Provision for Credit Losses

    During the quarter ended June 30, 2024, Business First recorded a provision for credit losses of $1.3 million, compared to $1.2 million from the linked quarter. The current quarter’s reserve was largely attributable to loan growth and net charge-offs, partially offset by reductions due to changes in the portfolio mix.

    Other Income

    For the quarter ended June 30, 2024, other income increased $2.8 million or 29.73%, compared to the linked quarter. The net increase was largely attributable to a $2.3 million increase in gain on sales of loans attributable to increased sales of SBA loans and a $1.9 million gain from the sale of a large USDA loan during the quarter ended June 30, 2024 compared to the linked quarter.

    Other Expenses

    For the quarter ended June 30, 2024, other expenses increased by $588,000 or 1.38%, compared to the linked quarter. The increase was attributable to marginal increases in several categories.

    Return on Assets and Common Equity

    Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.95% and 10.94% for the quarter ended June 30, 2024, compared to 0.74% and 8.51%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 0.98% and 11.22% for the quarter ended June 30, 2024, compared to 0.77% and 8.92%, respectively, for the linked quarter.

    Conference Call and Webcast
    Executive management will host a conference call and webcast to discuss results on Thursday, July 25, 2024, 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 9962250, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/8tfqtsaw. 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 $6.7 billion in assets, $6.1 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.

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

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

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

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

    Additional Information and Where to Find It
    This communication is being made with respect to the proposed transaction involving BFST and Oakwood. This material is not a solicitation of any vote or approval of the Oakwood shareholders and is not a substitute for the proxy statement/prospectus or any other documents that BFST and Oakwood may send to their respective shareholders in connection with the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities.

    In connection with the proposed transaction between BFST and Oakwood, BFST has filed with the SEC a Registration Statement on Form S-4 (the “Registration Statement”), which will include a proxy statement of Oakwood and a prospectus of BFST, as well as other relevant documents concerning the proposed transaction. Before making any voting or investment decisions, investors and shareholders are urged to read carefully the Registration Statement and the proxy statement/prospectus regarding the proposed transaction, as well as any other relevant documents filed with the SEC and any amendments or supplements to those documents, because they will contain important information. Oakwood will mail the proxy statement/prospectus to its shareholders. Shareholders are also urged to carefully review and consider BFST’s public filings with the SEC, including, but not limited to, its proxy statements, its Annual Reports on Form 10-K, its Quarterly Reports on Form 10- Q, and its Current Reports on Form 8-K. Copies of the Registration Statement and proxy statement/prospectus and other filings incorporated by reference therein, as well as other filings containing information about BFST, may be obtained, free of charge, as they become available at the SEC’s website at www.sec.gov. You will also be able to obtain these documents, when they are filed, free of charge, from BFST at www.b1BANK.com. Copies of the proxy statement/prospectus can also be obtained, when they become available, free of charge, by directing a request to Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, LA 70801, Attention: Corporate Secretary, Telephone: 225-248-7600.

    Participants in the Solicitation
    BFST, Oakwood and certain of their respective directors, executive officers and employees may, under the SEC’s rules, be deemed to be participants in the solicitation of proxies of Oakwood’s shareholders in connection with the proposed transaction.
    Information about BFST’s directors and executive officers is available in its definitive proxy statement relating to its 2024 annual meeting of shareholders, which was filed with the SEC on April 10, 2024, and other documents filed by BFST with the SEC. Other information regarding the persons who may, under the SEC’s rules, be deemed to be participants in the solicitation of proxies of Oakwood’s shareholders in connection with the proposed transaction, and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus regarding the proposed transaction and other relevant materials to be filed with the SEC when they become available. Free copies of these documents may be obtained as described in the preceding paragraph.

     
    Business First Bancshares, Inc.
    Selected Financial Information
    (Unaudited)
       
      Three Months Ended
    (Dollars in thousands) June 30,
    2024    		  March 31,
    2024    		  June 30,
    2023    		 
              
    Balance Sheet Ratios         
              
    Loans (HFI) to Deposits 92.80%  91.32%  97.69% 
    Shareholders' Equity to Assets Ratio 9.91%  9.69%  9.31% 
              
    Loans Receivable Held for Investment (HFI)         
              
    Commercial$        1,520,392 $        1,426,957 $        1,309,222 
    Real Estate:         
    Commercial 2,198,119
    		  2,215,889  2,132,044 
    Construction 637,466  662,013  719,080 
    Residential 743,876  717,007  675,462 
    Total Real Estate 3,579,461  3,594,909  3,526,586 
    Consumer and Other 62,999  66,973  62,929 
    Total Loans (Held for Investment)$        5,162,852 $        5,088,839 $        4,898,737 
           

    Allowance for Loan Losses

    Balance, Beginning of Period$41,165 $40,414 $41,830 
    Charge-Offs - Quarterly (1,426) (533) (689)
    Recoveries - Quarterly 91  141  104 
    Provision for Loan Losses - Quarterly 1,582  1,143  768 
    Balance, End of Period$41,412 $41,165 $42,013 
              
    Allowance for Loan Losses to Total Loans (HFI) 0.80%  0.81%  0.86% 
    Allowance for Credit Losses to Total Loans (HFI)/(1) 0.86%  0.88%  0.93% 
    Net Charge-Offs (Recoveries) to Average Quarterly Total Loans 0.03%  0.01%  0.01% 
              
    Remaining Loan Purchase Discount$9,690 $11,411 $17,171 
              

    Nonperforming Assets

    Nonperforming         
    Nonaccrual Loans$21,008 $20,778 $17,006 
    Loans Past Due 90 Days or More 1,355  855  468 
    Total Nonperforming Loans 22,363  21,633  17,474 
    Other Nonperforming Assets:         
    Other Real Estate Owned 1,983  1,339  1,587 
    Other Nonperforming Assets —  —  29 
    Total other Nonperforming Assets 1,983  1,339  1,616 
    Total Nonperforming Assets$24,346 $22,972 $19,090 
             
    Nonperforming Loans to Total Loans (HFI) 0.43%  0.43% 0.36% 
    Nonperforming Loans to Total Assets 0.36%  0.34% 0.30% 
             
    (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 EndedSix Months Ended


    (Dollars in thousands, except per share data)    		June 30,
    2024    		March 31,
    2024    		June 30,
    2023    		June 30,
    2024    		June 30,
    2023
          
    Per Share Data     
                    
    Basic Earnings per Common Share$        0.63 $        0.49 $        0.73 $        1.11 $        1.28 
    Diluted Earnings per Common Share 0.62  0.48  0.73  1.10  1.27 
    Dividends per Common Share 0.14  0.14  0.12  0.28  0.24 
    Book Value per Common Share 23.24  22.64  20.87  23.24  20.87 
                    
    Average Common Shares Outstanding 25,265,495  25,127,187  25,101,683  25,196,079  25,041,124 
    Average Diluted Common Shares Outstanding 25,395,614  25,429,194  25,333,372  25,412,142  25,278,145 
    End of Period Common Shares Outstanding 25,502,175  25,485,383  25,344,168  25,502,175  25,344,168 
                    
    Annualized Performance Ratios     
                    
    Return to Common Shareholders on Average Assets (1) 0.95%  0.74%  1.18%  0.84%  1.04% 
    Return to Common Shareholders on Average Common Equity (1) 10.94%  8.51%  13.99%  
    9.73%    		  12.39% 
    Net Interest Margin (1) 3.45%  3.32%  3.63%  3.39%  3.69% 
    Net Interest Spread (1) 2.47%  2.36%  2.75%  2.42%  2.85% 
    Efficiency Ratio (2) 65.14%  69.80%  60.76%  67.37%  61.97% 
                    
    Total Quarterly/Year-to-Date Average Assets$        6,711,173 $        6,667,527 $        6,274,656 $        6,689,350 $        6,198,860 
    Total Quarterly/Year-to-Date Average Common Equity 583,184  577,643  527,325  580,414  521,992 
     

    Other Expenses

                    
    Salaries and Employee Benefits$25,523 $25,416 $22,339 $50,939 $45,515 
    Occupancy and Bank Premises 2,634  2,514  2,406  5,148  4,703 
    Depreciation and Amortization 1,742  1,676  1,720  3,418  3,430 
    Data Processing 2,641  2,579  3,035  5,220  4,520 
    FDIC Assessment Fees 874  828  1,092  1,702  2,025 
    Legal and Other Professional Fees 1,042  866  961  1,908  1,574 
    Advertising and Promotions 966  1,145  1,226  2,111  2,374 
    Utilities and Communications 718  674  720  1,392  1,441 
    Ad Valorem Shares Tax 900  900  965  1,800  1,930 
    Directors' Fees 268  282  270  550  539 
    Other Real Estate Owned Expenses and Write- Downs 71  37  39  108  169 
    Merger and Conversion-Related Expenses 409  340  68  749  171 
    Other 5,322  5,265  4,861  10,587  9,990 
    Total Other Expenses$43,110 $42,522 $39,702 $85,632 $78,381 
     


     
    Business First Bancshares, Inc.
    Selected Financial Information
    (Unaudited)
     
      Three Months Ended  Six Months Ended 
    (Dollars in thousands, except per share data) June 30,
    2024    		  March 31,
    2024    		  June 30,
    2023    		   June 30,
    2024    		  June 30,
    2023    		 
                     
    Other Income                
                     
    Service Charges on Deposit Accounts$        2,537 $        2,439 $        2,413  $        4,976 $        4,694 
    Loss on Sales of Securities —  (1) (61)  (1) (62)
    Debit Card and ATM Fee Income 1,950  1,776  1,646   3,726  3,216 
    Bank-Owned Life Insurance Income 627  579  547   1,206  1,071 
    Gain on Sales of Loans 2,460  139  494   2,599  1,105 
    Mortgage Origination Income 35  69  56   104  130 
    Fees and Brokerage Commission 1,875  1,937  1,791   3,812  3,604 
    Gain on Sales of Other Real Estate Owned 2  63  14   65  223 
    Gain/(Loss) on Disposal of Other Assets (15) —  14   (15) 9 
    Gain on Sale of Branch —  —  —   —  — 
    Gain on Extinguishment of Debt —  —  941   —  941 
    Swap Fee Income 285  229  7   514  13 
    Pass-Through Income from Other Investments 392  294  2,812   686  2,985 
    Other 2,028  1,862  1,284   3,890  2,417 
    Total Other Income$        12,176 $        9,386 $        11,958  $        21,562 $        20,346 
     
    (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 (excluding security sales gains/losses) plus net interest income less gain/loss on sales of securities.
     


     
    Business First Bancshares, Inc.
    Consolidated Balance Sheets
    (Unaudited)
              
    (Dollars in thousands) June 30,
    2024    		  March 31,
    2024    		  June 30,
    2023    		 
              
    Assets         
              
    Cash and Due From Banks$208,051 $185,906 $180,972 
    Federal Funds Sold 113,587  211,292  173,850 
    Securities Available for Sale, at Fair Values 875,048  872,903  877,774 
    Mortgage Loans Held for Sale 680  77  435 
    Loans and Lease Receivable 5,162,852  5,088,839  4,898,737 
    Allowance for Loan Losses (41,412) (41,165) (42,013)
    Net Loans and Lease Receivable 5,121,440  5,047,674  4,856,724 
    Premises and Equipment, Net 68,545  68,716  63,037 
    Accrued Interest Receivable 30,617  29,326  26,861 
    Other Equity Securities 38,805  34,940  34,824 
    Other Real Estate Owned 1,983  1,339  1,587 
    Cash Value of Life Insurance 100,684  100,056  95,302 
    Deferred Taxes, Net 25,888  26,800  31,553 
    Goodwill 91,527  91,527  88,543 
    Core Deposit and Customer Intangibles 10,849  11,372  12,993 
    Other Assets 16,185  13,630  10,194 
    Total Assets$6,703,889 $6,695,558 $6,454,649 
     

    Liabilities

    Deposits         
    Noninterest-Bearing$1,310,204 $1,295,050 $1,429,376 
    Interest-Bearing 4,253,466  4,277,700  3,585,067 
    Total Deposits 5,563,670  5,572,750  5,014,443 


    Securities Sold Under Agreements to Repurchase18,445  17,207  23,230 
    Bank Term Funding Program—  —  300,000 
    Federal Home Loan Bank Borrowings305,208  308,206  362,162 
    Subordinated Debt99,875  99,933  103,822 
    Subordinated Debt - Trust Preferred Securities5,000  5,000  5,000 
    Accrued Interest Payable4,517  3,930  7,666 
    Other Liabilities42,644  39,498  37,358 
    Total Liabilities6,039,359  6,046,524  839,238 
        
    Shareholders' Equity   
        
    Preferred Stock 71,930  71,930  71,930 
    Common Stock 25,502  25,485  25,344 
    Additional Paid-In Capital 397,851  398,511  395,875 
    Retained Earnings 237,031  224,742  189,115 
    Accumulated Other Comprehensive Loss (67,784) (71,634) (81,296)
    Total Shareholders' Equity 664,530  649,034  600,968 
    Total Liabilities and Shareholders' Equity$6,703,889 $6,695,558 $6,454,649 


            

     
    Business First Bancshares, Inc.
    Consolidated Statements of Income
    (Unaudited)     
     
     Three Months EndedSix Months Ended
    (Dollars in thousands)June 30,
    2024    		March 31,
    2024    		June 30,
    2023    		June 30,
    2024    		June 30,
    2023


    Interest Income:    		     
    Interest and Fees on Loans$90,604$85,947 $79,223 $176,551 $152,991 
    Interest and Dividends on Securities 5,933 5,599  5,097  11,532  9,879 
    Interest on Federal Funds Sold and Due From Banks 3,333 4,465  1,528  7,798  2,470 
    Total Interest Income 99,870 96,011  85,848  195,881  165,340 


    Interest Expense:    		     
    Interest on Deposits 40,900 38,029  23,680  78,929  42,608 
    Interest on Borrowings 4,961 6,451  8,842  11,412  16,657 
    Total Interest Expense 45,861 44,480  32,522  90,341  59,265 
                   
    Net Interest Income 54,009 51,531  53,326  105,540  106,075 
                   
    Provision for Credit Losses 1,310 1,186  538  2,496  3,760 
                   
    Net Interest Income After Provision for Credit Losses
    		52,699
    		 50,345  52,788  103,044  102,315 
     —             
    Other Income:             
    Service Charges on Deposit Accounts 2,537 2,439  2,413  4,976  4,694 
    Loss on Sales of Securities — (1) (61) (1) (62)
    Gain on Sales of Loans 2,460 139  494  2,599  1,105 
    Other Income 7,179 6,809  9,112  13,988  14,609 
    Total Other Income 12,176 9,386  11,958  21,562  20,346 
          
    Other Expenses:     
    Salaries and Employee Benefits 25,523 25,416  22,339  50,939  45,515 
    Occupancy and Equipment Expense 5,717 5,357  5,112  11,074  10,113 
    Merger and Conversion-Related Expense 409 340  68  749  171 
    Other Expenses 11,461 11,409  12,183  22,870  22,582 
    Total Other Expenses 43,110 42,522  39,702  85,632  78,381 
                   
    Income Before Income Taxes 21,765 17,209  25,044  38,974  44,280 
                   
    Provision for Income Taxes 4,559 3,639  5,305  8,198  9,516 
                   
    Net Income 17,206 13,570  19,739  30,776  34,764 
                   
    Preferred Stock Dividends 1,350 1,350  1,350  2,700  2,700 
                   
    Net Income Available to Common Shareholders$15,856$12,220 $18,389 $28,076 $32,064 
     

                    

     
    Business First Bancshares, Inc.
    Consolidated Net Interest Margin
    (Unaudited)
      
     Three Months Ended
     June 30, 2024March 31, 2024June 30, 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$5,153,642 $90,6047.07% $5,026,937 $85,9476.88% $4,861,783 $79,2236.54%
    Securities       
    Interest-Bearing    		 891,384  5,9332.68%  888,933  5,5992.53%  916,421  5,0972.23%
    Deposit in Other
    Banks    		 246,590  3,3335.44%  330,260  4,4655.44%  117,086  1,5285.23%
    Total Interest
    Earning Assets    		 6,291,616  99,8706.38%  6,246,130  96,0116.18%  5,895,290  85,8485.84%
    Allowance for Loan
    Losses    		 (41,450)    (40,526)    (42,010)  
    Noninterest- Earning
    Assets    		 461,007    461,923     421,376   
    Total Assets$6,711,173 $99,870  $6,667,527 $96,011  $6,274,656 $85,848 


    Liabilities and
    Shareholders' Equity    		                       
    Interest-Bearing
    Liabilities:    		                   
    Interest-Bearing
    Deposits    		 $4,268,207 $40,9003.85% $4,072,600$38,0293.76% $3,405,221 $23,6802.79%
    Subordinated Debt        
    		  99,913  1,3545.45%  99,972 1,3565.46%  108,619  1,2514.62%
    Subordinated Debt -                       
    Trust Preferred
    Securities    		  5,000  1139.09%  5,000 1139.09%  5,000  1088.66%
    Bank Term Funding
    Program
    		  —  ——%  260,440 2,7884.31%  384,816  4,3094.49%
    Advances from                       
    Federal Home Loan
    Bank (FHLB)    		  324,691  3,3724.18%  223,501 2,0943.77%  298,324  3,0384.08%
    Other Borrowings  19,164  1222.56%  16,116 1002.50%  22,109  1362.47%
    Total Interest-
    Bearing Liabilities    		 $4,716,975 $45,8613.91% $4,677,629$44,4803.82% $4,224,089 $32,5223.09%
    Noninterest-Bearing
    Liabilities:    		        
    Noninterest-Bearing
    Deposits    		 $1,297,085   $1,282,815  $1,410,983   
    Other Liabilities  41,999    57,510   40,329   
    Total Noninterest- Bearing Liabilities  1,339,084    1,340,325   1,451,312   
    Shareholders' Equity:          
    Common Shareholders' Equity  583,184    577,643   527,325   
    Preferred Equity  71,930    71,930   71,930   
    Total Shareholders'
    Equity    		  655,114    649,573   599,255   
    Total Liabilities and
    Shareholders'
    Equity    		 $6,711,173   $6,667,527  $6,274,656   
    Net Interest Spread     2.47%   2.36%     2.75%
    Net Interest Income  $54,009  $51,531  $53,326  
    Net Interest Margin   3.45%   3.32%   3.63%
    Overall Cost of Funds   3.07%   3.00%   2.31%
    Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention.
     


     
    Business First Bancshares, Inc.
    Consolidated Net Interest Margin
    (Unaudited)
           
     Six Months Ended
    (Dollars in thousands) June 30, 2024     June 30, 2023 
     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$5,090,289 $176,551 6.97% $4,790,843 $152,9916.44%
    Securities 890,158  11,532 2.61%  921,958  9,8792.16%
    Interest-Bearing Deposit in Other Banks 288,426  7,798 5.44%  87,282  2,4705.71%
    Total Interest Earning Assets 6,268,873  195,881 6.28%  5,800,083  165,3405.75%
    Allowance for Loan Losses (40,988)    (41,772)  
    Noninterest- Earning Assets 461,465     440,549   
    Total Assets$6,689,350 $195,881    $6,198,860 $165,340 
     


    Liabilities and Shareholders'
    Equity    		           
                
    Interest-Bearing Liabilities:           
    Interest-Bearing Deposits               $ 4,170,406 $        78,9293.81% $        3,372,358$        42,6082.55%
    Subordinated Debt          99,942  2,7105.45%  109,634 2,6404.86%
    Subordinated Debt - Trust
    Preferred Securities            		  5,000  2269.09%  5,000 2068.31%
    Bank Term Funding Program          130,220  2,7884.31%  207,411 4,6894.56%
    Advances from Federal Home
    Loan Bank (FHLB)            		  274,096  5,4664.01%  410,348 8,8804.36%
    Other Borrowings          17,640  2222.53%  21,502 2422.27%
    Total Interest-Bearing
    Liabilities    		$  4,697,304 $        90,3413.87% $        4,126,253$        59,2652.90%
                   
    Noninterest-Bearing Liabilities:    
    Noninterest-Bearing Deposits$        1,289,948     $        1,442,084   
    Other Liabilities 49,754      36,601   
    Total Noninterest-Bearing
    Liabilities    		 1,339,702      1,478,685   
    Shareholders' Equity:      
    Common Shareholders' Equity 580,414     521,992  
    Preferred Equity 71,930     71,930  
    Total Shareholders' Equity 652,344     593,922  
    Total Liabilities and
    Shareholders' Equity    		$        6,689,350    $        6,198,860  
               
    Net Interest Spread  2.42%    2.85%
    Net Interest Income $        105,540  $        106,075 
    Net Interest Margin  3.39%  3.69%
             
    Overall Cost of Funds  3.03%  2.15%
             
    Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention.
     


     
    Business First Bancshares, Inc.
    Non-GAAP Measures
    (Unaudited)
      
     Three Months EndedSix Months Ended
    (Dollars in thousands, except per share data) June 30,
    2024    		  March 31,
    2024    		  June 30,
    2023    		  June 30,
    2024    		  June 30,
    2023    		 
    Interest Income: 
    Interest income$99,870 $96,011 $85,848 $195,881 $165,340 
    Core interest income 99,870  96,011  85,848  195,881  165,340 
    Interest Expense:               
    Interest expense 45,861  44,480  32,522  90,341  59,265 
    Core interest expense 45,861  44,480  32,522  90,341  59,265 
    Provision for Credit
    Losses: (b)    		               
    Provision for credit losses 1,310  1,186  538  2,496  3,760 
    Core provision expense 1,310  1,186  538  2,496  3,760 
    Other Income:               
    Other income 12,176  9,386  11,958  21,562  20,346 
    Losses on former bank premises and equipment —  (50) —  (50) — 
    Losses on sale of securities —  1  61  1  62 
    Gain on extinguishment of debt —  —  (941) —  (941)
    Core other income 12,176  9,337  11,078  21,513  19,467 
    Other Expense:               
    Other expense 43,110  42,522  39,702  85,632  78,381 
    Acquisition-related expenses (2) (419)  (715) (68) (1,134) (171)
    Occupancy and bank premises - storm repair —  —  —  —  — 
    Core other expense 42,691  41,807  39,634  84,498  78,210 
    Pre-Tax Income: (a) 21,765             
    Pre-tax income    17,209  25,044  38,974  44,280 
    Losses on former bank premises and equipment —  (50) —  (50) — 
    Losses on sale of securities —  1  61  1  62 
    Gain on extinguishment of debt —  —  (941) —  (941)
    Acquisition-related expenses (2) 419  715  68  1,134  171 
    Occupancy and bank premises - storm repair —  —  —  —  — 
    Core pre-tax income 22,184  17,875  24,232  40,059  43,572 
    Provision for Income Taxes: (1)      
    Provision for income taxes 4,559  3,639  5,305  8,198  9,516 
    Tax on losses on former bank premises and equipment —  (11) —  (11) — 
    Tax on losses on sale of securities —  —  13  —  13 
    Gain on extinguishment of debt —  —  (199) —  (199 
    Tax on acquisition- related expenses (2) 2  89  14  91  20 
    Tax on occupancy and bank premises - storm repair —  —  —  —  — 


    Business First Bancshares, Inc.
    Non-GAAP Measures
    (Unaudited)
     Three Months EndedSix Months Ended
    (Dollars in thousands, except per share data)June 30,
    2024    		March 31,
    2024    		June 30,
    2023    		June 30,
    2024    		June 30,
    2023
    Core provision for income taxes 4,561 3,717  5,133  8,278  9,350 
                   
    Preferred Dividends: 
    Preferred dividends 1,350 1,350  1,350  2,700  2,700 
    Core preferred dividends 1,350 1,350  1,350  2,700  2,700 
    Net Income Available to Common Shareholders:     
    Net income available to common shareholders 15,856 12,220  18,389  28,076  32,064 
    Losses on former bank premises and equipment, net of tax — (39) —  (39) — 
    Losses on sale of securities, net of tax — 1  48  1  49 
    Gain on extinguishment of debt, net of tax — —  (742) —  (742)
    Acquisition-related expenses (2), net of tax 417 626  54  1,043  151 
    Occupancy and bank premises - storm repair, net of tax — —  —  —  — 
    Core net income available to common shareholders$16,273$12,808 $17,749 $29,081 $31,522 
    Pre-tax, pre-provision earnings available to common shareholders (a+b)$23,075$18,395 $25,582 $41,470 $48,040 
    Losses on former bank premises and equipment — (50) —  (50) — 
    Loss on sale of securities — 1  61  1  62 
    Gain on extinguishment of debt — —  (941) —  (941)
    Acquisition-related expenses (2) 419 715  68  1,134  171 
    Occupancy and bank premises - storm repair — —  —  —  — 
    Core pre-tax, pre- provision earnings$23,494$19,061 $24,770 $42,555 $47,332 


    Business First Bancshares, Inc.
    Non-GAAP Measures 
    (Unaudited)
     Three Months EndedSix Months Ended
    (Dollars in thousands, except per share data)June 30,
    2024    		March 31,
    2024    		June 30,
    2023    		June 30,
    2024    		June 30,
    2023
                 
    Average Diluted Common Shares Outstanding 25,395,614  25,429,194 25,333,372  25,412,142 25,278,145 
                 
    Diluted Earnings Per Common Share:            
    Diluted earnings per common share$0.62$0.48$0.73 $1.10$1.27 
    Losses on former bank premises and equipment, net of tax — — —  — — 
    Loss on sale of securities, net of tax — — —  — — 
    Gain on extinguishment of debt, net of tax — — (0.03) — (0.03)
    Acquisition-related expenses (2), net of tax 0.02 0.02 —  0.04 0.01 
    Occupancy and bank premises -storm repair, net of tax — — —  — — 
    Core diluted earnings per common share$0.64$0.50$0.70 $1.14$1.25 
    Pre-tax, pre-provision profit diluted earnings per common share$0.91$0.72$1.01 $1.63$1.90 
    Losses on former bank premises and equipment — — —  — — 
    Loss on sale of securities — — —  — — 
    Gain on extinguishment of debt — — (0.04) — (0.04)
    Acquisition-related expenses (2) 0.02 0.03 0.01  0.04 0.01 
    Occupancy and bank premises - storm repair — — —  — — 
    Core pre-tax, pre- provision diluted earnings per common share$0.93$0.75$0.98 $1.67$1.87 

    (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.


    Business First Bancshares, Inc.
    Non-GAAP Measures
    (Unaudited)
     
    (Dollars in thousands, except per share data)June 30,
    2024    		March 31,
    2024    		June 30,
    2023
    Total Shareholders' (Common) Equity:         
    Total shareholders' equity$664,530 $649,034 $600,968 
    Preferred stock (71,930) (71,930) (71,930)
    Total common shareholders' equity 592,600  577,104  529,038 
    Goodwill (91,527) (91,527) (88,543)
    Core deposit and customer intangible (10,849) (11,372) (12,993)
    Total tangible common equity$490,224 $474,205 $427,502 
              
    Total Assets:         
    Total assets$ 6,703,889 $6,695,558 $6,454,649 
    Goodwill (91,527) (91,527) (88,543)
    Core deposit and customer intangible (10,849) (11,372) (12,993)
    Total tangible assets$6,601,513 $6,592,659 $6,353,113 
              
    Common shares outstanding 25,502,175  25,485,383  25,344,168 
              
    Book value per common share$23.24 $22.64 $20.87 
    Tangible book value per common share$19.22 $18.61 $16.87 
    Common equity to total assets 8.84% 8.62% 8.20%
    Tangible common equity to tangible assets 7.43% 7.19% 6.73%


    Business First Bancshares, Inc.
    Non-GAAP Measures 
    (Unaudited)
       
     Three Months Ended Six Months Ended
    (Dollars in thousands, except per share data)June 30, 
    2024    		March 31,
    2024    		June 30,
    2023    		June 30,
    2024    		June 30,
    2023
                    
    Total Quarterly Average Assets$6,711,173  $6,667,527 $6,274,656 $6,689,350 $6,198,860 
    Total Quarterly Average Common Equity$583,184 $577,643 $527,325 $580,414 $521,992 
                    
    Net Income Available to Common Shareholders:               
    Net income available to common shareholders$        15,856 $12,220 $18,389 $        28,076 $32,064 
    Gain on former bank premises and equipment, net of tax —  (39) —  (39) — 
    Loss on sale of securities, net of tax —  1  48  1  49 
    Gain on sale of branch, net of tax —  —  (742) —  (742)
    Acquisition-related expenses, net of tax 417  626  54  1,043  151 
    Write-down on former bank premises, net of tax —  —  —  —  — 
    Core net income available to common shareholders$        16,273 $12,808 $17,749 $        29,081 $31,522 
    Return to common shareholders on average assets (annualized) (2) 0.95% 0.74% 1.18% 0.84% 1.04%
    Core return on average assets (annualized) (2) 0.98% 0.77% 1.13% 0.87% 1.03%
    Return to common shareholders on average common equity (annualized) (2) 10.94% 8.51% 13.99% 9.73% 12.39%
    Core return on average common equity (annualized) (2) 11.22% 8.92% 13.50% 10.08% 12.18%
    Interest Income:     
    Interest income$        99,870 $96,011 $85,848 $        195,881 $165,340 
    Core interest income 99,870  96,011  85,848  195,881  165,340 
    Interest Expense:     
    Interest expense 45,861  44,480  32,522  90,341  59,265 
    Core interest expense 45,861  44,480  32,522  90,341  59,265 
    Other Income:     
    Other income 12,176  9,386  11,958  21,562  20,346 
    Gain on former bank premises and equipment —  (50) —  (50) — 
    Loss on sale of securities —  1  61  1  62 
    Gain on sale of branch —  —  (941) —  (941)
    Core other income 12,176  9,337  11,078  21,513  19,467 
    Other Expense:     
    Other expense 43,110  42,522  39,702  85,632  78,381 
    Acquisition-related expenses (419) (715) (68) (1,134) (171)
    Write-down on former bank premises —  —  —  —  — 
    Core other expense$        42,691 $41,807 $39,634 $        84,498 $78,210 


    Business First Bancshares, Inc.
    Non-GAAP Measures
    (Unaudited)
     Three Months EndedSix Months Ended

    (Dollars in thousands, except per share data)    		June 30,
    2024    		March 31,
    2024    		June 30,
    2023    		June 30,
    2024    		June 30,
    2023
    Efficiency Ratio:        
    Other expense (a)$43,110 $42,522 $39,702 $85,632 $78,381 
    Core other expense (c)$42,691 $41,807 $39,634 $84,498 $78,210 
    Net interest and other income (1) (b)$66,185 $60,918 $65,345 $127,103 $126,483 
    Core net interest and other income (1) (d)$66,185 $60,868 $64,404 $127,053 $125,542 
    Efficiency ratio (a/b) 65.14% 69.80% 60.76% 67.37% 61.97%
    Core efficiency ratio (c/d) 64.50% 68.68% 61.54% 66.51% 62.30%
    Total Average Interest-Earnings Assets$6,291,616 $6,246,130 $5,895,290 $6,268,873 $5,800,083 
    Net Interest Income:     
    Net interest income$54,009 $51,531 $53,326 $105,540 $106,075 
    Loan discount accretion$(1,695) $(785)$(2,059)$(2,480)$(4,971)
    Net interest income excluding loan discount accretion$52,314 $50,746 $51,267 $103,060$$101,104 
    Net interest margin (2) 3.45% 3.32% 3.63% 3.39% 3.69%
    Net interest margin excluding loan discount accretion (2) 3.34% 3.27% 3.49% 3.31% 3.52%
    Net interest spread (2) 2.47% 2.36% 2.75% 2.42% 2.85%
    Net interest spread excluding loan discount accretion (2) 2.37% 2.31% 2.61% 2.34% 2.68%

    (1) Excludes gains/losses on sales of securities.
    (2) Calculated utilizing an actual day count convention.

    Contact:

    Misty Albrecht
    b1BANK
    225.286.7879
    Misty.Albrecht@b1BANK.com


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