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CST: 17/08/2019 08:46:33   

Business First Bancshares, Inc., Announces Financial Results for Q2 2019

23 Days ago

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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