BATON ROUGE, La., July 24, 2019 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of Business First Bank, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended June 30, 2019, including record quarterly net income of $6.8 million, or $0.50 per diluted share, increases of $3.2 million and $0.17, respectively, from the quarter ended June 30, 2018. Core net income, which excludes noncore income and expenses, was $6.6 million, or $0.48 per diluted share, which reflects increases of $2.5 million and $0.11, respectively, from the quarter ended June 30, 2018. 

 “Our strong second quarter results continue to benefit from the synergies gained through our recent strategic acquisitions and return on internal investments,” said Jude Melville, President and CEO. “The team’s ability to generate robust loan growth with solid credit quality at attractive yields has been instrumental to our success in the first half of 2019.”

On July 23, 2019, Business First’s board of directors declared a quarterly dividend based upon financial performance for the quarter in the amount of $0.10 per share to the common shareholders of record as of August 15, 2019, same as the prior quarter. The dividend will be paid on August 31, 2019, or as soon thereafter as practicable.

Quarterly Highlights

• Higher Shareholder Returns.  Diluted earnings per share were $0.50, annualized return on average assets was 1.30%, and annualized return on average equity was 10.13%, compared to $0.41, 1.09% and 8.62%, respectively, from the quarter ended March 31, 2019. Core earnings per diluted share were $0.48, compared to $0.41 for the quarter ended March 31, 2019. As adjusted, annualized core return on average assets was 1.26% and annualized core return on average equity was 9.77%, compared to 1.08% and 8.57%, respectively, from the quarter ended March 31, 2019.
• Continued, Robust Loan Growth. Total loans held for investment at June 30, 2019 were $1.6 billion, an increase of $56.4 million compared to March 31, 2019. Annualized loan growth for the quarter ended June 30, 2019, was 14.2%, compared to 15.1% loan growth for the quarter ended March 31, 2019, and 14.9% year to date.
• Increased Net Interest Margin. Net interest margin and net interest spread were 4.19% and 3.75%, respectively, for the quarter ended June 30, 2019, compared to 4.01% and 3.61% for the quarter ended March 31, 2019. Excluding loan discount accretion, net interest margin and spread were 4.02% and 3.58%, respectively, for the quarter ended June 30, 2019, compared to 3.92% and 3.52% for the quarter ended March 31, 2019.
• Improved Credit Quality.  Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from 0.84% and 0.71%, respectively, at March 31, 2019, to 0.61% and 0.58% at June 30, 2019.  A portion of the improvement was attributable to the charge-off of a single, previously identified, impaired loan, but the majority was related to overall portfolio performance.
• Banking Center Sale.  Business First successfully sold a banking center located in Mangham, LA resulting in a gain on sale of $593,000 (including net reductions to goodwill and core deposit intangible of $1.3 million).

Financial Condition

June 30, 2019, Compared to March 31, 2019

Balance Sheet

As of June 30, 2019, Business First had total assets of $2.2 billion, total loans of $1.6 billion, total deposits of $1.7 billion and total shareholders’ equity of $277.5 million, compared to $2.1 billion, $1.6 billion, $1.7 billion and $269.1 million, respectively, as of March 31, 2019.

Book value per common share was $20.77 at June 30, 2019, compared to $20.14 at March 31, 2019. Tangible book value per common share was $16.60 at June 30, 2019, compared to $15.86 at March 31, 2019. 

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 0.84% as of March 31, 2019, to 0.61% as of June 30, 2019.  Nonperforming assets as a percentage of total assets decreased from 0.71% as of March 31, 2019, to 0.58% as of June 30, 2019. The decreases were partially attributable to the charge-off of the remaining balance ($1.5 million, of which $800,000 was previously reserved) of a single, previously identified, impaired loan; however, irrespective of the charge-off, both metrics improved from the prior quarter.

June 30, 2019, Compared to June 30, 2018

Balance Sheet

As of June 30, 2019, Business First had total assets of $2.2 billion, total loans of $1.6 billion, total deposits of $1.7 billion and total shareholders’ equity of $277.5 million, compared to $1.6 billion, $1.2 billion, $1.3 billion and $210.6 million, respectively, as of June 30, 2018.

Book value per common share was $20.77 at June 30, 2019, compared to $18.26 at June 30, 2018. Tangible book value per common share was $16.60 at June 30, 2019, compared to $15.07 at June 30, 2018.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 1.14% as of June 30, 2018, to 0.61% as of June 30, 2019. Nonperforming assets as a percentage of total assets decreased from 0.93% as of June 30, 2018, to 0.58% as of June 30, 2019. The decreases were mainly attributed to improved credit quality in relation to the size of the loan portfolio and total assets of Business First.

Results of Operations

Second Quarter 2019 Compared to First Quarter 2019

Net Income and Diluted Earnings Per Share

For the quarter ended June 30, 2019, net income was $6.8 million, or $0.50 per diluted share, compared to net income of $5.7 million, or $0.41 per diluted share, for the quarter ended March 31, 2019.

Core net income, which excludes noncore income and expenses, for the quarter ended June 30, 2019, was $6.6 million, or $0.48 per diluted share, compared to core net income of $5.6 million, or $0.41 per diluted share, for the quarter ended March 31, 2019. Notable noncore events impacting earnings included the incurrence of $436,000 in noninterest expenses related to acquisition-related activities and a $593,000 gain associated with the sale of a banking center for the quarter ended June 30, 2019.

Return on Assets and Equity

Return on average assets and equity, each on an annualized basis, increased to 1.30% and 10.13%, respectively, for the quarter ended June 30, 2019, compared to 1.09% and 8.62%, respectively, for the quarter ended March 31, 2019. The increases were largely attributed to growth in net interest income and noninterest income, mainly $1.3 million in Small Business Investment Company (SBIC) investment income (of which a large portion was attributable to dividends from a dividend recapitalization) and $593,000 from the sale of a banking center. 

As adjusted, core return on average assets and core return on average equity, each on an annualized basis, were 1.26% and 9.77%, respectively, for the quarter ended June 30, 2019, compared to 1.08% and 8.57%, respectively, for the quarter ended March 31, 2019.  

Interest Income

For the quarter ended June 30, 2019, net interest income totaled $20.2 million and net interest margin and net interest spread were 4.19% and 3.75%, respectively, compared to $19.1 million, 4.01% and 3.61% for the quarter ended March 31, 2019. The increase in net interest margin was largely attributable to an increase in loan discount accretion, an additional calendar day in the quarter, and higher yielding loans.

Net interest margin and net interest spread (excluding loan discount accretion of $826,000) were 4.02% and 3.58%, respectively, for the quarter ended June 30, 2019, compared to 3.92% and 3.52% (excluding loan discount accretion of $432,000) for the quarter ended March 31, 2019. Cash paydowns associated with an acquired impaired loan relationship accounted for $486,000 of the loan discount accretion for the quarter ended June 30, 2019. Additionally, the increase in net interest margin (excluding loan discount accretion) was partially attributable to an additional calendar day in the quarter but largely attributable to higher yielding loans.   

The average annualized yield on the loan portfolio was 5.96% for the quarter ended June 30, 2019, compared to 5.79% for the quarter ended March 31, 2019. The average annualized yield on total interest-earning assets was 5.37% for the quarter ended June 30, 2019, compared to 5.16% for the quarter ended March 31, 2019.

Interest Expense

For the quarter ended June 30, 2019, overall cost of funds (which includes noninterest-bearing deposits) increased by five basis points compared to the quarter ended March 31, 2019. 

Provision for Loan Losses

During the quarter ended June 30, 2019, Business First recorded a provision for loan losses of $1.3 million, compared to $633,000 for the quarter ended March 31, 2019. The reserve for the quarter ended June 30, 2019, was negatively impacted by the charge-off of the remaining balance of a single, previously identified, impaired loan.

Second Quarter 2019 Compared to Second Quarter 2018

Net Income and Diluted Earnings Per Share

For the quarter ended June 30, 2019, net income was $6.8 million, or $0.50 per diluted share, compared to net income of $3.6 million, or $0.33 per diluted share, for the quarter ended June 30, 2018. The increase in net income and diluted earnings per share was attributed to the overall growth and efficiency of Business First over the past 12 months, as well as the sale of a banking center and increased noninterest income associated with equity investments in SBICs.

Core net income, which excludes noncore income and expenses, for the quarter ended June 30, 2019, was $6.6 million, or $0.48 per diluted share, compared to core net income of $4.1 million, or $0.37 per diluted share, for the quarter ended June 30, 2018. Notable noncore events impacting earnings included the incurrence of $436,000 in noninterest expenses related to acquisition-related activities and a $593,000 gain associated with the sale of a banking center for the quarter ended June 30, 2019, and noninterest expenses of $415,000 related to acquisition-related activities and $118,000 associated with share awards granted to all nonexecutives in connection with Business First Bancshares, Inc.’s listing on NASDAQ for the quarter ended June 30, 2018.

Return on Assets and Equity

Return on average assets and return on average equity, each on an annualized basis, increased to 1.30% and 10.13%, respectively, for the quarter ended June 30, 2019, from 0.90% and 7.75%, respectively, for the quarter ended June 30, 2018.  

As adjusted, core return on average assets and core return on average equity, each on an annualized basis, were 1.26% and 9.77%, respectively, for the quarter ended June 30, 2019, compared to 1.00% and 8.69%, respectively, for the quarter ended June 30, 2018.  

Interest Income

For the quarter ended June 30, 2019, net interest income totaled $20.2 million and net interest margin and net interest spread were 4.19% and 3.75%, respectively, compared to $15.0 million, 3.98% and 3.70% for the quarter ended June 30, 2018.

Net interest margin and net interest spread (excluding loan discount accretion of $826,000) were 4.02% and 3.58%, respectively, for the quarter ended June 30, 2019, compared to 3.89% and 3.61% (excluding loan discount accretion of $342,000) for the quarter ended June 30, 2018. 

The average yield on the loan portfolio was 5.96% for the quarter ended June 30, 2019, compared to 5.46% for the quarter ended June 30, 2018. The average yield on total interest-earning assets was 5.37% for the quarter ended June 30, 2019, compared to 4.81% for the quarter ended June 30, 2018.

Interest Expense

For the quarter ended June 30, 2019, overall cost of funds (which includes noninterest-bearing deposits) increased by 39 basis points compared to the quarter ended June 30, 2018.  The increase was largely attributed to an overall increase in interest rates over the past 12 months and the issuance of $25 million of subordinated debt in December 2018.

Provision for Loan Losses

During the quarter ended June 30, 2019, Business First recorded a provision for loan losses of $1.3 million, compared to $474,000 for the quarter ended June 30, 2018.  As previously mentioned, the reserve for the quarter ended June 30, 2019, was negatively impacted by the charge-off of the remaining balance of a single, previously identified, impaired loan.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., through its banking subsidiary Business First Bank, operates in 25 banking centers in markets across Louisiana and in Dallas, Texas. Business First Bank 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. These 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, impaired loan sales and acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). 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. 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, or 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 the Company. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Misty Albrecht
Business First Bank
225.286.7879
Misty.Albrecht@b1BANK.com 

Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)		2019			2019			2018			2018			2018
Balance Sheet Ratios
Loans (HFI) to Deposits		96.46	%		90.93	%		88.15	%		95.86	%		92.82	%
Shareholders' Equity to Assets Ratio		12.88	%		12.81	%		12.41	%		12.69	%		12.77	%
Tangible Common Equity to Tangible Assets (Non-GAAP)		10.57	%		10.37	%		9.95	%		10.75	%		10.78	%
Loans Receivable Held for Investment
Commercial	$	411,256		$	389,855		$	363,640		$	317,889		$	298,967
Real Estate:
Construction and Land		227,102			211,888			211,054			196,404			204,099
Farmland		47,245			44,066			45,989			26,882			15,173
1-4 Family Residential		278,610			275,610			270,583			234,690			224,986
Multi-family Residential		38,698			39,548			39,273			22,109			22,511
Nonfarm Nonresidential		561,149			550,103			518,660			432,306			399,166
Total Real Estate		1,152,804			1,121,215			1,085,559			912,391			865,935
Consumer		78,513			75,112			79,270			67,679			69,129
Total Loans	$	1,642,573		$	1,586,182		$	1,528,469		$	1,297,959		$	1,234,031
Allowance for Loan Losses
Balance, Beginning of Period	$	11,818		$	11,220		$	10,273		$	9,756		$	9,647
Charge-offs – Quarterly		(1,565	)		(57	)		(19	)		(33	)		(397	)
Recoveries – Quarterly		48			22			27			47			32
Provision for Loan Losses – Quarterly		1,302			633			939			503			474
Balance, End of Period	$	11,603		$	11,818		$	11,220		$	10,273		$	9,756
Allowance for Loan Losses to Total Loans (HFI)		0.71	%		0.75	%		0.73	%		0.79	%		0.79	%
Net Charge-offs (Recoveries) to Average Total Loans		0.09	%		0.00	%		0.00	%		0.00	%		0.03	%
Nonperforming Assets
Nonperforming Loans:
Nonaccrual Loans	$	9,363		$	13,183		$	11,691		$	11,341		$	13,884
Loans Past Due 90 Days or More		727			77			1,876			256			130
Total Nonperforming Loans		10,090			13,260			13,567			11,597			14,014
Other Nonperforming Assets:
Other Real Estate Owned		2,324			1,683			1,909			1,824			1,273
Other Nonperforming Assets		6			11			11			11			36
Total Other Nonperforming Assets		2,330			1,694			1,920			1,835			1,309
Total Nonperforming Assets	$	12,420		$	14,954		$	15,487		$	13,432		$	15,323
Nonperforming Loans to Total Loans (HFI)		0.61	%		0.84	%		0.89	%		0.89	%		1.14	%
Nonperforming Assets to Total Assets		0.58	%		0.71	%		0.74	%		0.80	%		0.93	%

 

Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
	Quarter Ended																Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,				June 30,			June 30,
(Dollars in thousands, except per share data)		2019			2019			2018			2018			2018				2019			2018
Per Share Data
Basic Earnings per Common Share	$	0.51		$	0.43		$	0.28		$	0.34		$	0.34			$	0.94		$	0.65
Diluted Earnings per Common Share		0.50			0.41			0.28			0.33			0.33				0.91			0.62
Dividends per Common Share		0.10			0.08			0.08			0.08			0.08				0.18			0.14
Book Value per Common Share		20.77			20.14			19.68			18.46			18.26				20.77			18.26
Tangible Book Value per Common Share (Non-GAAP)		16.60			15.86			15.34			15.30			15.07				16.60			15.07
Average Common Shares Outstanding		13,361,482			13,287,560			12,099,659			11,533,374			10,607,369				13,324,725			10,421,185
Average Diluted Shares Outstanding		13,740,937			13,653,125			12,521,017			11,993,734			11,064,638				13,704,180			10,878,454
End of Period Common Shares Outstanding		13,361,482			13,361,482			13,213,280			11,533,721			11,533,171				13,361,482			11,533,171
Annualized Performance Ratios
Return on Average Assets		1.30	%		1.09	%		0.75	%		0.94	%		0.90	%			1.20	%		0.83	%
Return on Average Equity		10.13	%		8.62	%		6.03	%		7.37	%		7.75	%			9.38	%		7.35	%
Net Interest Margin		4.19	%		4.01	%		4.07	%		4.05	%		3.98	%			4.11	%		3.97	%
Net Interest Spread		3.75	%		3.61	%		3.70	%		3.70	%		3.70	%			3.69	%		3.72	%
Efficiency Ratio (1)		59.85	%		64.35	%		73.51	%		69.08	%		70.81	%			61.96	%		72.16	%
Other Operating Expenses
Salaries and Employee Benefits	$	8,756		$	8,552		$	7,444		$	7,190		$	6,524			$	17,308		$	13,228
Occupancy and Bank Premises		1,079			1,103			877			914			861				2,182			1,718
Depreciation and Amortization		633			628			484			417			407				1,261			829
Data Processing		576			616			397			395			355				1,192			765
FDIC Assessment Fees		248			150			276			221			331				398			724
Legal and Other Professional Fees		353			318			456			328			509				671			911
Advertising and Promotions		279			327			422			290			298				606			527
Utilities and Communications		323			298			238			294			269				621			541
Ad Valorem Shares Tax		345			345			170			321			322				690			644
Directors' Fees		125			205			92			93			92				330			251
Other Real Estate Owned Expenses and Write-Downs		72			27			-			-			7				99			9
Merger and Conversion-Related Expenses		235			(254	)		1,959			138			415				(19	)		927
Other		1,553			1,475			1,594			1,269			1,635				3,028			2,895
Total Other Expenses	$	14,577		$	13,790		$	14,409		$	11,870		$	12,025			$	28,367		$	23,969
(1) 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,			December 31,			September 30,			June 30,
(Dollars in thousands)		2019			2019			2018			2018			2018
Assets
Cash and Due From Banks	$	64,043		$	52,606		$	96,072		$	45,941		$	45,861
Federal Funds Sold		20,809			30,093			41,836			5,934			32,522
Securities Available for Sale, at Fair Values		294,981			304,122			309,516			243,585			252,139
Mortgage Loans Held for Sale		443			753			58			280			-
Loans and Lease Receivable		1,642,573			1,586,182			1,528,469			1,297,959			1,234,031
Allowance for Loan Losses		(11,603	)		(11,818	)		(11,220	)		(10,273	)		(9,756	)
Net Loans and Lease Receivable		1,630,970			1,574,364			1,517,249			1,287,686			1,224,275
Premises and Equipment, Net		27,577			27,014			15,114			10,022			10,537
Accrued Interest Receivable		7,957			7,054			8,223			5,188			5,268
Other Equity Securities		11,717			8,508			9,282			10,339			10,064
Other Real Estate Owned		2,324			1,683			1,909			1,824			1,273
Cash Value of Life Insurance		32,223			32,050			31,882			24,442			24,275
Deferred Taxes, Net		2,527			3,077			3,848			4,359			3,888
Goodwill		48,503			49,534			49,488			32,427			32,552
Core Deposit Intangible		7,139			7,655			7,885			4,103			4,234
Other Assets		2,395			2,887			2,534			2,065			2,319
Total Assets	$	2,153,608		$	2,101,400		$	2,094,896		$	1,678,195		$	1,649,207
Liabilities
Deposits:
Noninterest-Bearing	$	394,848		$	396,775		$	382,354		$	311,170		$	305,314
Interest-Bearing		1,308,054			1,347,608			1,351,580			1,042,901			1,024,179
Total Deposits		1,702,902			1,744,383			1,733,934			1,354,071			1,329,493
Securities Sold Under Agreements to Repurchase		16,096			11,070			12,229			14,310			13,604
Short-Term Borrowings		-			-			-			862			862
Long-Term Borrowings		-			-			-			2,400			2,700
Subordinated Debt		25,000			25,000			25,000			-			-
Federal Home Loan Bank Borrowings		108,000			30,000			55,000			85,000			85,000
Accrued Interest Payable		1,924			2,039			1,374			1,336			1,197
Other Liabilities		22,217			19,764			7,301			7,255			5,722
Total Liabilities		1,876,139			1,832,256			1,834,838			1,465,234			1,438,578
Shareholders' Equity
Common Stock		13,361			13,361			13,213			11,534			11,533
Additional Paid-In Capital		213,823			213,537			212,332			171,345			171,193
Retained Earnings		48,087			42,576			37,982			35,460			32,483
Accumulated Other Comprehensive Loss		2,198			(330	)		(3,469	)		(5,378	)		(4,580	)
Total Shareholders' Equity		277,469			269,144			260,058			212,961			210,629
Total Liabilities and Shareholders' Equity	$	2,153,608		$	2,101,400		$	2,094,896		$	1,678,195		$	1,649,207

 

Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
	Quarter Ended											Six Months Ended
	June 30,		March 31,		December 31,		September 30,		June 30,			June 30,		June 30,
(Dollars in thousands)		2019		2019		2018		2018		2018			2019		2018
Interest Income:
Interest and Fees on Loans	$	23,870	$	22,423	$	19,778	$	17,777	$	16,549		$	46,293	$	32,225
Interest and Dividends on Securities		1,829		1,874		1,611		1,386		1,414			3,703		2,837
Interest on Federal Funds Sold and Due From Banks		197		290		164		162		128			487		255
Total Interest Income		25,896		24,587		21,553		19,325		18,091			50,483		35,317
Interest Expense:
Interest on Deposits		5,038		4,757		3,853		3,127		2,555			9,795		4,853
Interest on Borrowings		665		710		583		562		560			1,375		988
Total Interest Expense		5,703		5,467		4,436		3,689		3,115			11,170		5,841
Net Interest Income		20,193		19,120		17,117		15,636		14,976			39,313		29,476
Provision for Loan Losses		1,302		633		939		503		474			1,935		948
Net Interest Income After Provision for Loan Losses		18,891		18,487		16,178		15,133		14,502			37,378		28,528
Other Income:
Service Charges on Deposit Accounts		1,034		938		869		695		636			1,972		1,246
Gain (Loss) on Sales of Securities		58		-		7		-		-			58		-
Other Income		3,127		1,373		1,615		852		1,370			4,500		2,495
Total Other Income		4,219		2,311		2,491		1,547		2,006			6,530		3,741
Other Expenses:
Salaries and Employee Benefits		8,756		8,552		7,444		7,190		6,524			17,308		13,228
Occupancy and Equipment Expense		1,884		1,894		1,523		1,522		1,402			3,778		2,820
Other Expenses		3,937		3,344		5,442		3,158		4,099			7,281		7,921
Total Other Expenses		14,577		13,790		14,409		11,870		12,025			28,367		23,969
Income Before Income Taxes		8,533		7,008		4,260		4,810		4,483			15,541		8,300
Provision for Income Taxes		1,690		1,349		815		910		845			3,039		1,554
Net Income	$	6,843	$	5,659	$	3,445	$	3,900	$	3,638		$	12,502	$	6,746

 

Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
	Quarter Ended
	June 30, 2019								December 31, 2018								June 30, 2018
	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	$	1,602,087		$	23,870	5.96	%		$	1,383,526		$	19,778	5.72	%		$	1,212,977		$	16,549	5.46	%
Securities Available for Sale		303,232			1,829	2.41	%			270,511			1,611	2.38	%			263,108			1,414	2.15	%
Interest-Bearing Deposit in Other Banks		23,716			197	3.32	%			27,203			164	2.41	%			29,204			128	1.75	%
Total Interest-Earning Assets		1,929,035			25,896	5.37	%			1,681,240			21,553	5.13	%			1,505,289			18,091	4.81	%
Allowance for Loan Losses		(11,702	)							(10,451	)							(9,638	)
Noninterest-Earning Assets		185,359								156,809								128,544
Total Assets	$	2,102,692		$	25,896				$	1,827,598		$	21,553				$	1,624,195		$	18,091
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities
Interest-Bearing Deposits	$	1,335,630		$	5,038	1.51	%		$	1,138,786		$	3,853	1.35	%		$	1,014,520		$	2,555	1.01	%
Subordinated Debt		25,000			429	6.86	%			8,333			69	3.31	%			-			-	0.00	%
Advances from Federal Home Loan Bank ("FHLB")		36,856			224	2.43	%			82,419			462	2.24	%			94,222			507	2.15	%
Other Borrowings		14,390			12	0.33	%			11,466			52	1.81	%			16,220			53	1.31	%
Total Interest-Bearing Liabilities		1,411,876			5,703	1.62	%			1,241,004			4,436	1.43	%			1,124,962			3,115	1.11	%
Noninterest-Bearing Liabilities
Noninterest-Bearing Deposits		396,793								349,915								306,042
Other Liabilities		23,761								8,183								5,427
Total Noninterest-Bearing Liabilities		420,554								358,098								311,469
Shareholders' Equity		270,262								228,496								187,764
Total Liabilities and Shareholders' Equity	$	2,102,692							$	1,827,598							$	1,624,195
Net Interest Spread						3.75	%							3.70	%							3.70	%
Net Interest Income				$	20,193							$	17,117							$	14,976
Net Interest Margin						4.19	%							4.07	%							3.98	%
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)
	For the Six Months Ended June 30,
		2019								2018
	Average								Average
	Outstanding			Interest Earned /		Average			Outstanding			Interest Earned /		Average
(Dollars in thousands)	Balance			Interest Paid		Yield / Rate			Balance			Interest Paid		Yield / Rate
Assets
Interest-Earning Assets
Total Loans	$	1,575,988		$	46,293	5.87	%		$	1,195,564		$	32,225	5.39	%
Securities Available for Sale		306,501			3,703	2.42	%			254,104			2,837	2.23	%
Interest-Bearing Deposit in Other Banks		31,897			487	3.05	%			33,419			255	1.53	%
Total Interest-Earning Assets		1,914,386			50,483	5.27	%			1,483,087			35,317	4.76	%
Allowance for Loan Losses		(11,546	)							(9,301	)
Noninterest-Earning Assets		186,348								145,688
Total Assets	$	2,089,188		$	50,483				$	1,619,474		$	35,317
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities
Interest-Bearing Deposits	$	1,335,522		$	9,795	1.47	%		$	1,020,266		$	4,853	0.95	%
Subordinated Debt		25,000			845	6.76	%			-			-	0.00	%
Advances from Federal Home Loan Bank ("FHLB")		37,191			505	2.72	%			84,665			880	2.08	%
Other Borrowings		13,436			25	0.37	%			18,975			108	1.14	%
Total Interest-Bearing Liabilities		1,411,149			11,170	1.58	%			1,123,906			5,841	1.04	%
Noninterest-Bearing Liabilities
Noninterest-Bearing Deposits		395,304								306,733
Other Liabilities		16,242								5,380
Total Noninterest-Bearing Liabilities		411,546								312,113
Shareholders' Equity		266,493								183,455
Total Liabilities and Shareholders' Equity	$	2,089,188							$	1,619,474
Net Interest Spread						3.69	%							3.72	%
Net Interest Income				$	39,313							$	29,476
Net Interest Margin						4.11	%							3.97	%
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)
	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands, except per share data)		2019			2019			2018			2018			2018
Tangible Common Equity
Total Shareholders' Equity	$	277,469		$	269,144		$	260,058		$	212,961		$	210,629
Adjustments:
Goodwill		(48,503	)		(49,534	)		(49,488	)		(32,427	)		(32,552	)
Core Deposit and Other Intangibles		(7,139	)		(7,655	)		(7,885	)		(4,103	)		(4,234	)
Total Tangible Common Equity	$	221,827		$	211,955		$	202,685		$	176,431		$	173,843
Tangible Assets
Total Assets	$	2,153,608		$	2,101,400		$	2,094,896		$	1,678,195		$	1,649,207
Adjustments:
Goodwill		(48,503	)		(49,534	)		(49,488	)		(32,427	)		(32,552	)
Core Deposit and Other Intangibles		(7,139	)		(7,655	)		(7,885	)		(4,103	)		(4,234	)
Total Tangible Assets	$	2,097,966		$	2,044,211		$	2,037,523		$	1,641,665		$	1,612,421
Common Shares Outstanding		13,361,482			13,361,482			13,213,280			11,533,721			11,533,171
Book Value per Common Share	$	20.77		$	20.14		$	19.68		$	18.46		$	18.26
Tangible Book Value per Common Share	$	16.60		$	15.86		$	15.34		$	15.30		$	15.07
Common Equity to Total Assets		12.88	%		12.81	%		12.41	%		12.69	%		12.77	%
Tangible Common Equity to Tangible Assets		10.57	%		10.37	%		9.95	%		10.75	%		10.78	%

 

Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
	Quarter Ended																Six Months Ended
	June 30,			March 31,			December 31,			September 30,			June 30,				June 30,			June 30,
(Dollars in thousands, except per share data)		2019			2019			2018			2018			2018				2019			2018
Core Net Income
Net Income	$	6,843		$	5,659		$	3,445		$	3,900		$	3,638			$	12,502		$	6,746
Adjustments: (1)
Income
Sale of Impaired Credit		(91	)		-			(87	)		-			-				(91	)		-
Tax Impact		19			-			18			-			-				19			-
(Gains) Losses on Former Bank Premises and Equipment		-			-			(494	)		139			-				-			-
Tax Impact		-			-			104			(29	)		-				-			-
(Gains) Losses on Sale of Securities		(58	)		-			(7	)		-			-				(58	)		-
Tax Impact		12			-			1			-			-				12			-
(Gains) Losses on Sale of Banking Center		(593	)		-			-			-			-				(593	)		-
Tax Impact		125			-			-			-			-				125			-
Expense
Employee Share Awards – NASDAQ Listing		-			-			-			-			118				-			118
Tax Impact		-			-			-			-			(25	)			-			(25	)
Acquisition-Related Expenses		436			(50	)		2,132			509			415				386			927
Tax Impact		(91	)		16			(410	)		(90	)		(68	)			(75	)		(123	)
Core Net Income	$	6,602		$	5,625		$	4,702		$	4,429		$	4,078			$	12,227		$	7,643
Average Common Shares Outstanding		13,361,482			13,287,560			12,099,659			11,533,374			10,607,369				13,324,725			10,421,185
Average Diluted Shares Outstanding		13,740,937			13,653,125			12,521,017			11,993,734			11,064,638				13,704,180			10,878,454
Earnings per Share - Basic	$	0.51		$	0.43		$	0.28		$	0.34		$	0.34			$	0.94		$	0.65
Earnings per Share - Diluted	$	0.50		$	0.41		$	0.28		$	0.33		$	0.33			$	0.91		$	0.62
Core Earnings per Share – Basic	$	0.49		$	0.42		$	0.39		$	0.38		$	0.38			$	0.92		$	0.73
Core Earnings per Share – Diluted	$	0.48		$	0.41		$	0.38		$	0.37		$	0.37			$	0.89		$	0.70
Total Quarterly/Year-to-Date Average Assets	$	2,102,692		$	2,075,683		$	1,827,598		$	1,666,117		$	1,624,195			$	2,089,188		$	1,619,474
Total Quarterly/Year-to-Date Average Equity	$	270,262		$	262,681		$	228,496		$	211,631		$	187,764			$	266,493		$	183,455
Return on Average Assets		1.30	%		1.09	%		0.75	%		0.94	%		0.90	%			1.20	%		0.83	%
Return on Average Equity		10.13	%		8.62	%		6.03	%		7.37	%		7.75	%			9.38	%		7.35	%
Core Return on Average Assets		1.26	%		1.08	%		1.03	%		1.06	%		1.00	%			1.17	%		0.94	%
Core Return on Average Equity		9.77	%		8.57	%		8.23	%		8.37	%		8.69	%			9.18	%		8.33	%
Core Efficiency Ratio
Noninterest Expense		14,577			13,790			14,409			11,870			12,025				28,367			23,969
Core Adjustments		(436	)		50			(2,132	)		(509	)		(533	)			(386	)		(1,045	)
Net Interest and Noninterest Income (2)		24,354			21,431			19,601			17,183			16,982				45,785			33,217
Core Adjustments		(684	)		-			(581	)		139			-				(684	)		-
Core Efficiency Ratio		59.74	%		64.58	%		64.55	%		65.59	%		67.67	%			62.04	%		69.01	%
Net Interest Income
Net Interest Income	$	20,193		$	19,120		$	17,117		$	15,636		$	14,976			$	39,313		$	29,476
Adjustments:
Discount Accretion		(826	)		(432	)		(283	)		(268	)		(342	)			(1,258	)		(727	)
Net Interest Income Excluding Loan Discount Accretion	$	19,367		$	18,688		$	16,834		$	15,368		$	14,634			$	38,055		$	28,749
Total Average Interest-Earnings Assets	$	1,929,035		$	1,904,870		$	1,681,240		$	1,543,820		$	1,505,289			$	1,914,386		$	1,483,087
Net Interest Margin Excluding Loan Discount Accretion (3)		4.02	%		3.92	%		4.01	%		3.98	%		3.89	%			3.98	%		3.88	%
Net Interest Spread Excluding Loan Discount Accretion		3.58	%		3.52	%		3.63	%		3.63	%		3.61	%			3.56	%		3.63	%
(1) Tax rates, exclusive of certain nondeductible acquisition-related expenses, utilized were 21% for 2019 and 2018. These rates approximated the marginal tax rates.
(2) Excludes gains/losses on sales of securities.
(3) Calculated utilizing a 30/360 day count convention.

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