• Business First Bancshares, Inc., Announces Financial Results for Q1 2023

    Source: Nasdaq GlobeNewswire / 27 Apr 2023 16:01:08   America/New_York

    BATON ROUGE, La., April 27, 2023 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (Nasdaq: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended March 31, 2023, including net income available to common shareholders of $13.7 million, or $0.54 per diluted common share, decreases of $2.9 million and $0.13, respectively, from the linked quarter, and increases of $5.0 million and $0.13, respectively, from the quarter ended March 31, 2022. On a non-GAAP basis, core net income for the quarter ended March 31, 2023, which excludes certain income and expenses, was $13.8 million, or $0.55 per diluted common share, decreases of $2.6 million and $0.11, respectively, from the linked quarter, and increases of $3.5 million and $0.06, respectively, from the quarter ended March 31, 2022.

    “With over 100,000 clients spread out over diverse MSAs, a successful record of growing organically and through acquisition, and a history of taking care of clients through multiple years of crises, we have laid the foundation of a franchise built to last,” said b1BANK President & CEO Jude Melville. “Our first quarter results both demonstrate our resilience as a company and illustrate opportunities to continue improving efficiency, profitability and capital allocation over the coming years. We are here for our partners as we together navigate the current uncertainty and are positioned to help them thrive once the economy heals.”

     On April 27, 2023, 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 first quarter in the amount of $0.12 per share, same as the prior quarter. The preferred and common dividends will be paid on May 31, 2023, or as soon thereafter as practicable, to the shareholders of record as of May 15, 2023.

    Quarterly Highlights

    • Return on Assets and Equity. Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.91% and 10.73%, respectively, for the quarter ended March 31, 2023, compared to 1.12% and 13.56%, respectively, for the linked quarter, and 0.72% and 7.94% for the quarter ended March 31, 2022. Non-GAAP core return on average assets and common equity, each on an annualized basis, were 0.91% and 10.81%, respectively, for the quarter ended March 31, 2023, compared to 1.10% and 13.37%, respectively, for the linked quarter, and 0.85% and 9.33% for the quarter ended March 31, 2022.
    • Shareholder Value. Total shareholders’ equity increased $17.2 million from the linked quarter due to $6.2 million improvement in accumulated other comprehensive income (AOCI) and $13.7 million in net income available to common shareholders, offset by $3.0 million in common dividends. Book value per share increased $0.52, or 2.53%, and non-GAAP tangible book value per share increased $0.56, or 3.51% from the linked quarter. AOCI has improved $16.7 million from its low of $(84.7) million at September 30, 2022, to $(68.0) million as of March 31, 2023.
    • Deposits. Branch deposits remained stable, increasing $2.4 million from the linked quarter, with new account openings continuing to outpace 2022 trends. Other corporate deposits (comprised of financial institution group (FIG), brokered, and listed certificates of deposits) decreased $16.6 million from the linked quarter. Overall, total deposits decreased $14.2 million or 0.29%, 1.19% annualized, for the quarter ended March 31, 2023, due to a $29.0 million decrease in the financial institutions group (FIG) deposit base.   As of March 31, 2023, Business First held approximately 103,020 deposit accounts with an average balance of approximately $46,650, of which $1.5 billion or 30.65% were uninsured by the FDIC. Excluding public funds, which are secured by securities or Federal Home Loan Bank (FHLB) letters of credit, the unsecured deposit total is approximately $1.0 billion, or 21.33% of total deposits.
    • Access to Liquidity. As of March 31, 2023, Business First had approximately $1.8 billion of primary and secondary liquidity. On April 11, 2023, Business First opened lines of credit through the Federal Reserve Discount Window totaling $949.5 million, increasing current liquidity to approximately $2.7 billion.
    • Credit Quality. Credit performance remains strong from linked quarter and year-over-year comparisons. The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets were 0.29% and 0.23%, respectively, at March 31, 2022, 0.25% and 0.21%, respectively, at December 31, 2022, and 0.36% and 0.29% at March 31, 2023. The increases for the quarter ended March 31, 2023, were attributable to accounting guidance no longer applicable which previously excluded certain acquired impaired loans from nonperforming ratios.
    • ASU 2016-13 Adoption (i.e., Current Expected Credit Loss). On January 1st, 2023, Business First adopted the Current Expected Credit Loss (CECL) model. The adoption of CECL increased the allowance for loan losses and reserve for unfunded commitments, collectively called the allowance for credit losses, by $2.7 million and $3.2 million, respectively. The increases were offset by a $4.8 million reclassification of loan discount to allowance for loan losses for previously acquired impaired loans, resulting in a net $1.1 million pre-tax decrease to shareholder’s equity on the date of adoption.

    Statement of Financial Condition

    Loans

    Loans held for investment increased $196.9 million or 4.27%, 17.33% annualized, from the linked quarter. Loan growth from the linked quarter was attributed to originations in the commercial, $85.5 million, real estate construction, $65.6 million, and real estate commercial, $35.1 million, portfolios. Approximately $60.7 million of the $65.6 million growth, 92.56%, in the real estate construction portfolio was attributable to fundings associated with commitments made in 2022. These three loan portfolios accounted for 94.53% of the loan growth for the quarter ended March 31, 2023.

    The Dallas Fort Worth region produced 53.52% of total loan growth from the linked quarter based on unpaid principal balance, while Business First also continued to originate growth from several other key strategic markets, 14.62% from the Greater New Orleans region and 13.82% from the Houston region. Based on unpaid principal balances, Texas-based loans represent approximately 37% of the overall loan portfolio as of March 31, 2023.

    Credit Quality

    The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets increased from 0.25% and 0.21%, respectively, at December 31, 2022, to 0.36% and 0.29% at March 31, 2023. The increases were attributable to accounting guidance no longer applicable, which previously excluded certain acquired impaired loans from nonperforming ratios.

    During the quarter ended March 31, 2023, Business First resolved a lending relationship which resulted in a $1.9 million charge-off attributable to previously acquired impaired loans. Prior to the adoption of CECL on January 1, 2023, the $1.9 million individual allowance for loan loss reserve was within the loans’ amortized cost basis, as a loan discount. Business First’s resolution of the loans resulted in a net gain of $190,000 compared to the amortized cost basis as of the quarter ended December 31, 2022. Excluding the $1.9 million charge-off on the acquired impaired loan relationship, charge-offs on non-acquired loans were low and consistent with historical percentages.

    Securities

    The securities portfolio increased $13.2 million or 1.48%, from the linked quarter. The increase was the net impact of positive fair value adjustments, $7.9 million, and the remainder of the increase was attributable to net security purchases during the quarter.

    Deposits

    Deposits decreased $14.2 million or 0.29%, 1.19% annualized, for the quarter ended March 31, 2023; however, branch deposits remained stable, increasing $2.4 million from the linked quarter, with new account openings continuing to outpace 2022 trends. Other corporate deposits decreased $16.6 million from the linked quarter, with the FIG deposit base decreasing $29.0 million.

    Noninterest-bearing deposits decreased $73.6 million or 4.75%, and interest-bearing deposits increased $59.4 million or 1.82%, compared to the linked quarter. The net growth in interest-bearing deposits was attributable to growth in the certificate of deposit (CD) portfolio of $181.3 million compared to a decrease in transactional accounts of $121.9 million, of which $37.5 million of the decrease was attributable to the FIG deposit base. A significant portion of the transactional deposit decrease was attributable to existing client relationships transitioning funds to the CD portfolio.

    As of March 31, 2023, Business First held approximately 103,020 deposit accounts with an average balance of approximately $46,650, of which $1.5 billion or 30.65% were uninsured by the FDIC. Excluding public funds, which are secured by securities or Federal Home Loan Bank (FHLB) letters of credit, the unsecured deposit total is approximately $1.0 billion, or 21.33% of total deposits.

    Borrowings

    Borrowings increased $291.9 million or 52.11%, from the linked quarter, largely to fund loan growth. During March 2023, Business First utilized the Bank Term Funding Program (BTFP) offered by the Federal Reserve to pay off some of the outstanding short-term seven-day rolling FHLB borrowings which were priced at approximately 5.00%. On March 24, 2023, Business First executed a $310 million fixed one-year loan at 4.38% through the BTFP. The Bank chose to utilize this source of funding due to its lower yield and the ability to prepay the loan without penalty compared to FHLB borrowings. On April 11, 2023, Business First opened two new lines of credit for additional contingent liquidity, totaling $949.5 million, through the Federal Reserve discount window. As of April 27, 2023, Business First has not yet drawn on either of the lines of credit.

    Shareholders’ Equity

    AOCI improved $6.2 million due to favorable after-tax fair value changes in the securities portfolio, improving $16.7 million from the low of $(84.7) million at September 30, 2022. Book value per common share was $20.77 at March 31, 2023, compared to $20.25 at December 31, 2022, increasing $0.52 or 2.53% from the linked quarter. On a non-GAAP basis, tangible book value per common share was $16.73 at March 31, 2023, compared to $16.17 at December 31, 2022, increasing $0.56 or 3.51% from the linked quarter.

    Results of Operations

    Net Interest Income

    For the quarter ended March 31, 2023, net interest income totaled $52.7 million, compared to $56.1 million from the linked quarter, and was supported by strong loan and interest-earning asset yields of 6.34% and 5.65%, respectively, compared to 6.09% and 5.39%, respectively, from the linked quarter. Net interest margin and net interest spread were 3.75% and 2.96%, respectively, compared to 4.06% and 3.43%, respectively, for the linked quarter. Interest income for the quarter ended December 31, 2022, included $1.3 million of additional loan discount accretion due to a large, acquired loan payoff and accelerated accretion from the purchased impaired portfolio. Overall costs of funds, which include noninterest-bearing deposits, increased from 1.38% to 1.97% or 59 basis points, from the linked quarter.

    Non-GAAP net interest income totaled $49.8 million for the quarter ended March 31, 2023, compared to $51.8 million from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $2.9 million) were 3.54% and 2.75%, respectively, for the quarter ended March 31, 2023, compared to 3.75% and 3.13% (excluding loan discount accretion of $4.2 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 37 basis points from 5.72% to 6.09% and interest earning asset yields increased 35 basis points from 5.09% to 5.44%, compared to the linked quarter. The compression of net interest margin and net interest spread was largely attributed to the continued increases in funding costs during the quarter ended March 31, 2023.

    Provision for Credit Losses

    During the quarter ended March 31, 2023, Business First recorded a provision for credit losses of $3.2 million, compared to $3.1 million for the linked quarter. The provision for credit losses for the quarter ended March 31, 2023, was impacted by the resolution of an acquired impaired lending relationship in March 2023, which resulted in a charge-off of $1.9 million. Prior to implementation of CECL, the credit reserve was embedded within the loan discount. The charge-off was offset by reserves on new loan originations during the quarter and application of qualitative factors within the CECL model.

    Other Income

    For the quarter ended March 31, 2023, other income increased $110,000, or 1.33%, compared to the linked quarter. The net increase was largely attributable to a $552,000 increase in gain on sales of loans during the quarter from SBA loans and loan participations, offset by $435,000 less income from equity investments. Year-over-year, other income increased $2.5 million or 42.27%, partially attributable to the successful integration of Texas Citizens on March 1, 2023. On a non-GAAP basis, other income increased $1.7 million or 26.23%, after removing the $717,000 loss on disposal of former premises and equipment and $31,000 loss on sales of securities which occurred during the quarter ended March 31, 2022.

    Other Expenses

    For the quarter ended March 31, 2023, other expenses increased by $333,000, or 0.87%, compared to the linked quarter. The net increase was largely attributable to a $971,000 increase in salaries and expenses (salary increases and payroll taxes) and $322,000 increase in estimated FDIC premiums (rate increases will become effective for the quarter ended March 31, 2023). These were offset by reductions in data processing of $716,000, largely due to approximately $453,000 credit adjustments from prior period overbillings, and advertising and promotions of $423,000.

    Return on Assets and Common Equity

    Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.91% and 10.73%, respectively, for the quarter ended March 31, 2023, compared to 1.12% and 13.56%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 0.91% and 10.81%, respectively, for the quarter ended December 31, 2022, compared to 1.10% and 13.37%, respectively, for the linked quarter.

    Conference Call and Webcast

    Executive management will host a conference call and webcast to discuss results on Thursday, April 27, at 4:30 p.m. CDT. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 8276536, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/x6vwyp8q. The corresponding slide presentation can be accessed the day of the presentation on b1BANK’s 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 $6.3 billion in assets, $6.5 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.


     
    Business First Bancshares, Inc.
    Selected Financial Information
    (Unaudited)
     Three Months Ended
     March 31,December 31,March 31,
    (Dollars in thousands) 2023  2022  2022 
        
    Balance Sheet Ratios   
        
    Loans (HFI) to Deposits 99.94% 95.56% 80.48%
    Shareholders' Equity to Assets Ratio 9.50% 9.69% 8.52%
        
    Loans Receivable Held for Investment (HFI)   
        
    Commercial$1,239,333 $1,153,873 $891,063 
    Real Estate:   
    Commercial 2,055,500  2,020,406  1,630,316 
    Construction 787,634  722,074  581,661 
    Residential 659,967  656,378  594,840 
    Total Real Estate 3,503,101  3,398,858  2,806,817 
    Consumer and Other 60,626  53,445  50,618 
    Total Loans (Held for Investment)$4,803,060 $4,606,176 $3,748,498 
        
    Allowance for Loan Losses   
        
    Balance, Beginning of Period$38,178 $35,201 $29,112 
    CECL Adoption/Implementation 2,660 $- $- 
    Charge-offs – Quarterly (2,278) (387) (1,668)
    Recoveries – Quarterly 103  313  184 
    Provision for Loan Losses – Quarterly 3,167  3,051  1,617 
    Balance, End of Period$41,830 $38,178 $29,245 
        
    Allowance for Loan Losses to Total Loans (HFI) 0.87% 0.83% 0.78%
    Allowance for Credit Losses to Total Loans (HFI) (2) 0.95% 0.84% 0.80%
    Net Charge-offs (Recoveries) to Average Quarterly Total Loans 0.05% 0.00% 0.04%
        
    Remaining Loan Purchase Discount$19,234 $27,000 $40,623 
        
    Nonperforming Assets   
        
    Nonperforming Loans:   
    Nonaccrual Loans (1)$16,952 $11,054 $10,784 
    Loans Past Due 90 Days or More (1) 127  335  26 
    Total Nonperforming Loans 17,079  11,389  10,810 
    Other Nonperforming Assets:   
    Other Real Estate Owned 1,365  1,372  1,369 
    Other Nonperforming Assets 57  62  84 
    Total Other Nonperforming Assets 1,422  1,434  1,453 
    Total Nonperforming Assets$18,501 $12,823 $12,263 
        
    Nonperforming Loans to Total Loans (HFI) 0.36% 0.25% 0.29%
    Nonperforming Assets to Total Assets 0.29% 0.21% 0.23%
        
        
    (1) 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 was currently accreting interest income over the expected life of the loans for periods ended December 31, 2022, and March 31, 2022, in accordance with ASC 310-30.
     
    (2) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments
        


    Business First Bancshares, Inc.
    Selected Financial Information
    (Unaudited)
        
     Three Months Ended
     March 31,December 31,March 31,
    (Dollars in thousands, except per share data) 2023  2022  2022 
        
    Per Share Data   
        
    Basic Earnings per Common Share$0.55 $0.68 $0.42 
    Diluted Earnings per Common Share 0.54  0.67  0.41 
    Dividends per Common Share 0.12  0.12  0.12 
    Book Value per Common Share 20.77  20.25  20.25 
        
        
    Average Common Shares Outstanding 24,979,955  24,542,120  21,019,716 
    Average Diluted Common Shares Outstanding 25,222,308  24,757,143  21,162,482 
    End of Period Common Shares Outstanding 25,319,520  25,110,313  22,564,607 
        
        
    Annualized Performance Ratios   
        
    Return to Common Shareholders on Average Assets (1) 0.91% 1.12% 0.72%
    Return to Common Shareholders on Average Common Equity (1) 10.73% 13.56% 7.94%
    Net Interest Margin (1) 3.75% 4.06% 3.56%
    Net Interest Spread (1) 2.96% 3.43% 3.40%
    Efficiency Ratio (2) 63.27% 59.60% 72.67%
        
    Total Quarterly Average Assets$6,123,063 $5,899,972 $4,920,105 
    Total Quarterly Average Common Equity 516,659  486,338  446,003 
        
    Other Expenses   
        
    Salaries and Employee Benefits$23,176 $22,205 $19,703 
    Occupancy and Bank Premises 2,297  2,285  2,052 
    Depreciation and Amortization 1,710  1,700  1,569 
    Data Processing 1,485  2,201  2,116 
    FDIC Assessment Fees 933  611  743 
    Legal and Other Professional Fees 613  462  543 
    Advertising and Promotions 1,148  1,571  531 
    Utilities and Communications 721  759  779 
    Ad Valorem Shares Tax 965  962  813 
    Directors' Fees 269  270  202 
    Other Real Estate Owned Expenses and Write-Downs 130  11  14 
    Merger and Conversion-Related Expenses 103  138  811 
    Other 5,129  5,171  3,844 
    Total Other Expenses$38,679 $38,346 $33,720 
        
    Other Income   
        
    Service Charges on Deposit Accounts$2,281 $2,265 $1,805 
    (Loss) on Sales of Securities (1) (2) (31)
    Debit Card and ATM Fee Income 1,570  1,582  1,501 
    Bank-Owned Life Insurance Income 524  526  369 
    Gain on Sales of Loans 611  59  65 
    Mortgage Origination Income 74  105  209 
    Fees and Brokerage Commission 1,813  1,760  1,835 
    Gain on Sales of Other Real Estate Owned 209  3  8 
    (Loss) on Disposal of Other Assets (5) (1) (717)
    Pass-Through Income from Other Investments 173  608  115 
    Other 1,139  1,373  737 
    Total Other Income$8,388 $8,278 $5,896 
        
        
    (1) Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention.
    (2) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities.
        


    Business First Bancshares, Inc.
    Consolidated Balance Sheets
    (Unaudited)
        
     March 31,December 31,March 31,
    (Dollars in thousands) 2023  2022  2022 
        
    Assets   
        
    Cash and Due From Banks$159,767 $152,740 $282,074 
    Federal Funds Sold 104,250  15,606  67,822 
    Securities Available for Sale, at Fair Values 903,945  890,751  961,358 
    Loans Held for Sale -  -  13,559 
    Mortgage Loans Held for Sale 423  304  1,354 
    Loans and Lease Receivable 4,803,060  4,606,176  3,748,498 
    Allowance for Loan Losses (41,830) (38,178) (29,245)
    Net Loans and Lease Receivable 4,761,230  4,567,998  3,719,253 
    Premises and Equipment, Net 64,065  63,177  63,003 
    Accrued Interest Receivable 25,446  25,666  20,146 
    Other Equity Securities 36,739  37,467  23,034 
    Other Real Estate Owned 1,365  1,372  1,369 
    Cash Value of Life Insurance 94,755  91,958  72,896 
    Deferred Taxes, Net 28,680  31,194  23,040 
    Goodwill 88,543  88,543  89,911 
    Core Deposit and Customer Intangibles 13,517  14,042  15,617 
    Other Assets 7,256  9,642  7,799 
        
    Total Assets$6,289,981 $5,990,460 $5,362,235 
        
        
    Liabilities   
        
    Deposits   
    Noninterest-Bearing$1,475,782 $1,549,381 $1,544,197 
    Interest-Bearing 3,330,396  3,270,964  3,113,541 
    Total Deposits 4,806,178  4,820,345  4,657,738 
        
    Securities Sold Under Agreements to Repurchase 16,669  20,208  23,345 
    Fed Funds Purchased 14,622  14,057  - 
    Short-Term Borrowings 9  9  20 
    Bank Term Funding Program 310,000  -  - 
    Federal Home Loan Bank Borrowings 395,134  410,100  79,957 
    Subordinated Debt 110,596  110,749  111,209 
    Subordinated Debt - Trust Preferred Securities 5,000  5,000  5,000 
    Accrued Interest Payable 3,513  2,092  895 
    Other Liabilities 30,570  27,419  27,234 
        
    Total Liabilities 5,692,291  5,409,979  4,905,398 
        
    Shareholders' Equity   
        
    Preferred Stock 71,930  71,930  - 
    Common Stock 25,320  25,110  22,565 
    Additional Paid-In Capital 394,677  393,690  345,858 
    Retained Earnings 173,761  163,955  128,168 
    Accumulated Other Comprehensive Income (Loss) (67,998) (74,204) (39,754)
        
    Total Shareholders' Equity 597,690  580,481  456,837 
        
    Total Liabilities and Shareholders' Equity$6,289,981 $5,990,460 $5,362,235 
        


    Business First Bancshares, Inc.
    Consolidated Statements of Income
    (Unaudited)
        
     Three Months Ended
     March 31,December 31,March 31,
    (Dollars in thousands) 2023  2022  2022 
        
    Interest Income:   
    Interest and Fees on Loans$73,768 $69,364 $40,183 
    Interest and Dividends on Securities 4,782  4,316  3,844 
    Interest on Federal Funds Sold and Due From Banks 942  825  95 
    Total Interest Income 79,492  74,505  44,122 
        
    Interest Expense:   
    Interest on Deposits 18,928  13,307  2,263 
    Interest on Borrowings 7,815  5,138  1,384 
    Total Interest Expense 26,743  18,445  3,647 
        
    Net Interest Income 52,749  56,060  40,475 
        
    Provision for Credit Losses: 3,222  3,051  1,617 
        
    Net Interest Income After Provision for Loan Losses 49,527  53,009  38,858 
        
    Other Income:   
    Service Charges on Deposit Accounts 2,281  2,265  1,805 
    (Loss) on Sales of Securities (1) (2) (31)
    Gain on Sales of Loans 611  59  65 
    Other Income 5,497  5,956  4,057 
    Total Other Income 8,388  8,278  5,896 
        
    Other Expenses:   
    Salaries and Employee Benefits 23,176  22,205  19,703 
    Occupancy and Equipment Expense 5,001  4,918  4,413 
    Merger and Conversion-Related Expense 103  138  811 
    Other Expenses 10,399  11,085  8,793 
    Total Other Expenses 38,679  38,346  33,720 
        
    Income Before Income Taxes: 19,236  22,941  11,034 
        
    Provision for Income Taxes: 4,211  4,974  2,303 
        
    Net Income: 15,025  17,967  8,731 
        
    Preferred Stock Dividends: (1,350) (1,350) - 
        
    Net Income Available to Common Shareholders$13,675 $16,617 $8,731 
        


    Business First Bancshares, Inc.
    Consolidated Net Interest Margin
    (Unaudited)
                
                
     Three Months Ended
     March 31, 2023 December 31, 2022 March 31, 2022
    (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$4,719,906 $73,7686.34% $4,519,643 $69,3646.09% $3,386,050 $40,1834.81%
    Securities 927,491  4,7822.09%  901,236  4,3161.90%  1,005,252  3,8441.55%
    Interest-Bearing Deposit in Other Banks 57,478  9426.65%  62,013  8255.28%  221,148  950.17%
    Total Interest-Earning Assets 5,704,875  79,4925.65%  5,482,892  74,5055.39%  4,612,450  44,1223.88%
    Allowance for Loan Losses (41,533)    (35,951)    (29,260)  
    Noninterest-Earning Assets 459,721     453,031     336,915   
    Total Assets$6,123,063 $79,492  $5,899,972 $74,505  $4,920,105 $44,122 
                
                
    Liabilities and Shareholders' Equity           
                
    Interest-Bearing Liabilities:           
    Interest-Bearing Deposits$3,339,493 $18,9282.30% $3,157,513 $13,3071.67% $2,882,838 $2,2630.32%
    Subordinated Debt 110,647  1,3895.09%  110,800  1,3634.88%  91,354  1,1154.95%
    Subordinated Debt - Trust Preferred Securities 5,000  987.95%  5,000  856.74%  5,000  423.41%
    Bank Term Funding Program 34,444  3804.47%  -  -0.00%  -  -0.00%
    Advances from Federal Home Loan Bank (FHLB) 517,934  5,8424.57%  436,233  3,5553.23%  80,375  2231.13%
    First National Bankers Bank Line of Credit -  -0.00%  1,667  307.14%  -  -0.00%
    Other Borrowings 20,895  1062.06%  25,815  1051.61%  19,666  40.08%
    Total Interest-Bearing Liabilities 4,028,413  26,7432.69%  3,737,028  18,4451.96%  3,079,233  3,6470.48%
                
    Noninterest-Bearing Liabilities:           
    Noninterest-Bearing Deposits$1,473,186    $1,567,507    $1,370,015   
    Other Liabilities 32,875     37,138     24,854   
    Total Noninterest-Bearing Liabilities 1,506,061     1,604,645     1,394,869   
    Shareholders' Equity:           
    Common Shareholders' Equity 516,659     486,338     446,003   
    Preferred Equity 71,930     71,961     -   
    Total Shareholder's Equity 588,589     558,299     446,003   
    Total Liabilities and Shareholders' Equity$6,123,063    $5,899,972    $4,920,105   
                
    Net Interest Spread  2.96%   3.43%   3.40%
    Net Interest Income $52,749   $56,060   $40,475 
    Net Interest Margin  3.75%   4.06%   3.56%
                
    Overall Cost of Funds  1.97%` 1.38%   0.33%
                
    NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 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) 2023  2022  2022 
        
    Interest Income:   
    Interest income$79,492 $74,505 $44,122 
    Core interest income 79,492  74,505  44,122 
    Interest Expense:   
    Interest expense 26,743  18,445  3,647 
    Core interest expense 26,743  18,445  3,647 
    Provision for Credit Losses: (b)   
    Provision for credit losses 3,222  3,051  1,617 
    Core provision expense 3,222  3,051  1,617 
    Other Income:   
    Other income 8,388  8,278  5,896 
    Losses on former bank premises and equipment -  -  717 
    Losses on sale of securities 1  2  31 
    Insurance reimbursement of storm expenditures -  (422) - 
    Core other income 8,389  7,858  6,644 
    Other Expense:   
    Other expense 38,679  38,346  33,720 
    Acquisition-related expenses (2) (103) (138) (811)
    Occupancy and bank premises - storm repair -  -  (231)
    Core other expense 38,576  38,208  32,678 
    Pre-Tax Income: (a)   
    Pre-tax income 19,236  22,941  11,034 
    Losses on former bank premises and equipment -  -  717 
    Losses on sale of securities 1  2  31 
    Insurance reimbursment of storm expenditures -  (422) - 
    Acquisition-related expenses (2) 103  138  811 
    Occupancy and bank premises - storm repair -  -  231 
    Core pre-tax income 19,340  22,659  12,824 
    Provision for Income Taxes: (1)   
    Provision for income taxes 4,211  4,974  2,303 
    Tax on losses on former bank premises and equipment -  -  151 
    Tax on losses on sale of securities -  -  7 
    Tax on insurance reimbursement of storm expenditures -  (89) - 
    Tax on acquisition-related expenses (2) 6  29  48 
    Tax on occupancy and bank premises - storm repair -  -  49 
    Core provision for income taxes 4,217  4,914  2,558 
    Preferred Dividends   
    Preferred dividends 1,350  1,350  - 
    Core preferred dividends 1,350  1,350  - 
    Net Income Available to Common Shareholders:   
    Net income available to common shareholders 13,675  16,617  8,731 
    Losses on former bank premises and equipment, net of tax -  -  566 
    Losses on sale of securities, net of tax 1  2  24 
    Insurance reimbursement of storm expenditures, net of tax -  (333) - 
    Acquisition-related expenses (2), net of tax 97  109  763 
    Occupancy and bank premises - storm repair, net of tax -  -  182 
    Core net income available to common shareholders$13,773 $16,395 $10,266 
        
    Pre-tax, pre-provision earnings available to common shareholders (a+b)$22,458 $25,992 $12,651 
    Losses on former bank premises and equipment -  -  717 
    Loss/(Gain) on sale of securities 1  2  31 
    Insurance reimbursement of storm expenditures -  (422) - 
    Acquisition-related expenses (2) 103  138  811 
    Occupancy and bank premises - storm repair -  -  231 
    Core pre-tax, pre-provision earnings$22,562 $25,710 $14,441 
        
    Average Diluted Common Shares Outstanding 25,222,308  24,757,143  21,162,482 
        
    Diluted Earnings Per Common Share:   
    Diluted earnings per common share$0.54 $0.67 $0.41 
    Losses on former bank premises and equipment, net of tax -  -  0.03 
    Loss/(Gain) on sale of securities, net of tax 0.00  0.00  0.00 
    Insurance reimbursement of storm expenditures, net of tax -  (0.01) - 
    Acquisition-related expenses (2), net of tax 0.01  0.00  0.04 
    Occupancy and bank premises -storm repair, net of tax -  -  0.01 
    Core diluted earnings per common share$0.55 $0.66 $0.49 
        
    Pre-tax, pre-provision profit diluted earnings per common share$0.89 $1.05 $0.60 
    Losses on former bank premises and equipment -  -  0.03 
    Loss/(Gain) on sale of securities 0.00  0.00  0.00 
    Insurance reimbursement of storm expenditures -  (0.02) - 
    Acquisition-related expenses (2) 0.00  0.01  0.04 
    Occupancy and bank premises - storm repair -  -  0.01 
    Core pre-tax, pre-provision diluted earnings per common share$0.89 $1.04 $0.68 
        
    (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.00% for 2023 and 2022. 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)
        
     March 31,December 31,March 31,
    (Dollars in thousands, except per share data) 2023  2022  2022 
        
    Total Shareholders' (Common) Equity:   
    Total shareholders' equity$597,690 $580,481 $456,837 
    Preferred stock (71,930) (71,930) - 
    Total common shareholders' equity 525,760  508,551  456,837 
    Goodwill (88,543) (88,543) (89,911)
    Core deposit and customer intangible (13,517) (14,042) (15,617)
    Total tangible common equity$423,700 $405,966 $351,309 
        
        
    Total Assets:   
    Total assets$6,289,981 $5,990,460 $5,362,235 
    Goodwill (88,543) (88,543) (89,911)
    Core deposit and customer intangible (13,517) (14,042) (15,617)
    Total tangible assets$6,187,921 $5,887,875 $5,256,707 
        
    Common shares outstanding 25,319,520  25,110,313  22,564,607 
        
    Book value per common share$20.77 $20.25 $20.25 
    Tangible book value per common share$16.73 $16.17 $15.57 
    Common equity to total assets 8.36% 8.49% 8.52%
    Tangible common equity to tangible assets 6.85% 6.89% 6.68%
        


    Business First Bancshares, Inc.
    Non-GAAP Measures
    (Unaudited)
        
     Three Months Ended
     March 31,December 31,March 31,
    (Dollars in thousands, except per share data) 2023  2022  2022 
        
        
    Total Quarterly Average Assets$6,123,063 $5,899,972 $4,920,105 
    Total Quarterly Average Common Equity$516,659 $486,338 $446,003 
        
    Net Income Available to Common Shareholders:   
    Net income available to common shareholders$13,675 $16,617 $8,731 
    Losses on former bank premises and equipment, net of tax -  -  566 
    Losses on sale of securities, net of tax 1  2  24 
    Insurance reimbursement of storm expenditures, net of tax -  (333) - 
    Acquisition-related expenses, net of tax 97  109  763 
    Occupancy and bank premises - storm repair, net of tax -  -  182 
    Core net income available to common shareholders$13,773 $16,395 $10,266 
        
    Return to common shareholders on average assets (annualized) (2) 0.91% 1.12% 0.72%
    Core return on average assets (annualized) (2) 0.91% 1.10% 0.85%
    Return to common shareholders on average common equity (annualized) (2) 10.73% 13.56% 7.94%
    Core return on average common equity (annualized) (2) 10.81% 13.37% 9.33%
        
    Interest Income:   
    Interest income$79,492 $74,505 $44,122 
    Core interest income 79,492  74,505  44,122 
    Interest Expense:   
    Interest expense 26,743  18,445  3,647 
    Core interest expense 26,743  18,445  3,647 
    Other Income:   
    Other income 8,388  8,278  5,896 
    Losses on former bank premises and equipment -  -  717 
    Loss on sale of securities 1  2  31 
    Insurance reimbursement of storm expenditures -  (422) - 
    Core other income 8,389  7,858  6,644 
    Other Expense:   
    Other expense 38,679  38,346  33,720 
    Acquisition-related expenses (103) (138) (811)
    Occupancy and bank premises - storm repair -  -  (231)
    Core other expense$38,576 $38,208 $32,678 
        
    Efficiency Ratio:   
    Other expense (a)$38,679 $38,346 $33,720 
    Core other expense (c)$38,576 $38,208 $32,678 
    Net interest and other income (1) (b)$61,138 $64,340 $46,402 
    Core net interest and other income (1) (d)$61,138 $63,918 $47,119 
    Efficiency ratio (a/b) 63.27% 59.60% 72.67%
    Core efficiency ratio (c/d) 63.10% 59.78% 69.35%
        
    Total Average Interest-Earnings Assets$5,704,875 $5,482,892 $4,612,450 
        
    Net Interest Income:    
    Net interest income$52,749 $56,060 $40,475 
    Loan discount accretion (2,912) (4,212) (920)
    Net interest income excluding loan discount accretion$49,837 $51,848 $39,555 
        
    Net interest margin (2) 3.75% 4.06% 3.56%
    Net interest margin excluding loan discount accretion (2) 3.54% 3.75% 3.48%
    Net interest spread (2) 2.96% 3.43% 3.40%
    Net interest spread excluding loan discount accretion (2) 2.75% 3.13% 3.32%
        
    (1) Excludes gains/losses on sales of securities.
    (2) Calculated utilizing an Actual/365 day count convention.
        


    Misty Albrecht
    b1BANK
    225.286.7879
    Misty.Albrecht@b1BANK.com


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