Business First Bancshares, Inc., Announces Financial Results for Fiscal Year 2021 and Q4 2021

·27 min read

BATON ROUGE, La., Jan. 25, 2022 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the year ended December 31, 2021, including net income of $52.1 million, or $2.53 per diluted share, an increase of $22.1 million and $0.89, respectively, from the prior year ended December 31, 2020. The increase was largely impacted by a $9.2 million pre-tax gain on sale of Small Business Administration (SBA) Paycheck Protection Program (PPP) loans during the second quarter of 2021 and pre-tax net interest income of $8.2 million realized in 2021 related to SBA PPP loans. On a non-GAAP basis, core net income for the year ended December 31, 2021, which excludes certain income and expenses, was $53.9 million, or $2.61 per diluted share, increases of $16.5 million and $0.56, respectively, from prior year ended December 31, 2020.

For the quarter ended December 31, 2021, Business First reported net income of $12.1 million, or $0.59 per diluted share, increases of $1.8 million and $0.09, respectively, from the quarter ended September 30, 2021. On a non-GAAP basis, core net income for the quarter ended December 31, 2021, which excludes certain income and expenses, was $11.7 million, or $0.57 per diluted share, an increase of $0.8 million and $0.04, respectively, from the quarter ended September 30, 2021.

“Given all that has occurred over the past few years in our company and across the country the fourth quarter of 2021 was the most “normal” quarter we’ve had in some time,” said Jude Melville, president and CEO. “We are adding clarity and visibility to our story: an entrepreneurial company steadily building core profitability, adding employees, clients and product capability, and diversifying risk across an expanding footprint. We enter 2022 eager to close our pending merger with Texas Citizens Bank in Houston, continue building upon our foundational investment in Dallas-Fort Worth and grow our market share across Louisiana.”

On January 24, 2022, Business First’s board of directors declared a quarterly dividend based upon financial performance for the fourth quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of February 15, 2022. The dividend will be paid on February 28, 2022, or as soon thereafter as practicable.

Quarterly Highlights

  • Loan Growth. Total loans held for investment at December 31, 2021, were $3.2 billion, an increase of $123.4 million compared to September 30, 2021, or 4.02% for the quarter and 16.10% annualized. Excluding the decrease in SBA PPP loans, total loans held for investment increased from the quarter ended September 30, 2021, by 4.18%, or 16.71% annualized. Loan growth in Dallas, Tx. (28.6%), greater New Orleans (63.4%), and the Baton Rouge/Capital Region (36.1%) markets accounted for 128.1% of the quarterly loan growth, offset by normal net maturities and payoffs in Business First’s other markets.

  • Stable Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets slightly improved from 0.37% and 0.45%, respectively, at September 30, 2021, to 0.31% and 0.41% at December 31, 2021. The nonperforming asset ratio has decreased from the prior quarter due to asset sales.

  • Banking Center Sale. Business First regularly evaluates its Banking Center network in search of optimization opportunities and closed two Banking Centers during Q4 2021, one in Minden, La, and a second by sale in Oak Grove, La., on October 1, 2021. The Banking Center sale resulted in a pre-tax gain on sale of $492,000.

  • Texas Citizens Bancorp, Inc. Acquisition. On October 20, 2021, Business First executed a definitive agreement to acquire Texas Citizens Bancshares, Inc. (TCBI), the parent bank holding company for Texas Citizens Bank, National Association, based in Pasadena, Tx. As of December 31, 2021, TCBI had consolidated total assets of $547.2 million, loans of $359.0 million, and deposits of $482.8 million.

Financial Condition

December 31, 2021, Compared to September 31, 2021

Loans

Loans held for investment increased $123.4 million, or 4.02% (16.10% annualized), for the quarter ended December 31, 2021. The increase was largely attributable to loan originations in our construction and land and nonfarm, nonresidential real estate portfolios which were $83.7 million and $32.7 million, respectively. Year to date loan growth was 6.63%, inclusive of SBA PPP loans. As of December 31, 2021, SBA PPP loans with an unpaid principal balance of $5.4 million remained outstanding, compared to $8.9 million as of September 30, 2021.

Excluding the net decrease in SBA PPP loans, total loans held for investment increased for the quarter ended December 31, 2021, by 4.18%, or 16.71% annualized. Year to date loan growth was 19.00% excluding SBA PPP loans.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 0.45% as of September 30, 2021, to 0.41% as of December 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.37% as of September 30, 2021, to 0.31% as of December 31, 2021.

Total Shareholders’ Equity

Book value per common share was $21.24 at December 31, 2021, compared to $21.11 at September 30, 2021. On a non-GAAP basis, tangible book value per share was $17.71 at December 31, 2021, compared to $17.53 at September 30, 2021.

December 31, 2021, Compared to December 31, 2020

Loans

Total loans held for investment increased by $198.3 million compared to December 31, 2020, or 6.63 %. Excluding SBA PPP loans, loans increased $508.3 million, or 19.00%.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment increased from 0.35% as of December 31, 2020, to 0.41% as of December 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.48% as of December 31, 2020, to 0.31% as of December 31, 2021, largely due to the sales of nonperforming assets.

Total Shareholders’ Equity

Book value per common share was $21.24 at December 31, 2021, compared to $19.88 at December 31, 2020. On a non-GAAP basis, tangible book value per share was $17.71 at December 31, 2021, compared to $16.80 at December 31, 2020.

Results of Operations

Fourth Quarter 2021 Compared to Third Quarter 2021

Net Income and Diluted Earnings Per Share

For the quarter ended December 31, 2021, net income was $12.1 million, or $0.59 per diluted share, compared to net income of $10.3 million, or $0.50 per diluted share, for the quarter ended September 31, 2021. The increase, $1.8 million and $0.09, respectively, was largely attributable to a $1.1 million increase in pre-tax net interest income and a $455,000 increase in pre-tax gains on sales of securities for the quarter ended December 31, 2021.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended December 31, 2021, was $11.7 million, or $0.57 per diluted share, compared to core net income of $10.9 million, or $0.53 per diluted share, for the quarter ended September 30, 2021. Notable noncore events impacting earnings for the quarter ended December 31, 2021, included $444,000 in gains on sale of securities and a $492,000 gain on sale of the Oak Grove Banking Center within other income, and $266,000 of expenses attributable to acquisition-related expenses, compared to $211,000 in occupancy and bank premises expenses attributable to hurricane damages (primarily related to Ida, 2021), $145,000 in acquisition-related expenses and $392,000 in losses on sales of former premises and equipment within other income, for the quarter ended September 30, 2021.

Interest Income

For the quarter ended December 31, 2021, net interest income totaled $38.3 million and net interest margin and net interest spread were 3.57% and 3.38%, respectively, compared to $37.3 million, 3.71% and 3.51% for the quarter ended September 30, 2021. The average yield on total interest-earning assets was 3.93% for the quarter ended December 31, 2021, compared to 4.14% for the quarter ended September 30, 2021. The increase in interest income was largely attributable to loan growth during the fourth quarter. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.93% for the quarter ended December 31, 2021, compared to 5.11% for the quarter ended September 30, 2021, due to lower-yielding new originations.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.42% and 3.24%, respectively, for the quarter ended December 31, 2021, compared to 3.56% and 3.36% (excluding loan discount accretion of $1.5 million) for the quarter ended September 30, 2021.

Interest Expense

For the quarter ended December 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by six basis points, from 0.44% to 0.38%, compared to the quarter ended September 30, 2021, due to a combination of increased noninterest deposits and lower yielding interest-bearing deposits.

Other Income

For the quarter ended December 31, 2021, other income was higher by $627,000 compared to the quarter ended September 30, 2021. The increase was largely attributable to increases on gains of securities of $455,000, fees and brokerage commissions of $386,000, gains on sales of other real estate owned of $523,000, and gain on sale of the Oak Grove Banking Center of $492,000, offset by a reduction of other income of $1.3 million.

Other Expenses

For the quarter ended December 31, 2021, other expense decreased by $152,000 compared to the quarter ended September 30, 2021.

Provision for Loan Losses

During the quarter ended December 31, 2021, Business First recorded a provision for loan losses of $1.3 million, compared to $1.1 million for the quarter ended September 30, 2021. The reserve for the quarter ended December 31, 2021, was driven primarily by the improvement in the qualitative factors (attributed to the general economy and energy sector), offset by reserves for new loan growth.

Return on Assets and Equity

Return on average assets and equity, each on an annualized basis, were 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021, compared to 0.95% and 9.47%, respectively, for the quarter ended September 30, 2021.

Fourth Quarter 2021 Compared to Fourth Quarter 2020

Net Income and Diluted Earnings Per Share

For the quarter ended December 31, 2021, net income was $12.1 million, or $0.59 per diluted share, compared to net income of $13.8 million, or $0.67 per diluted share, for the quarter ended December 31, 2020. The decreases in net income and diluted earnings per share were largely attributable to lower interest income related to a reduction of SBA PPP loan fees and discount accretion, as well as the $4.2 million gains on sales of loans under the Main Street Lending Program (Main Street) which occurred in December 2020, offset by the reduction of $2.4 million loss on early extinguishment of Federal Home Loan Bank (FHLB) debt which occurred in December 2020 and a decrease in the provision for loan losses of $834,000.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended December 31, 2021, was $11.7 million, or $0.57 per diluted share, compared to core net income of $14.1 million, or $0.68 per diluted share, for the quarter ended December 31, 2020. Notable noncore events impacting earnings for the quarter ended December 31, 2021, included $444,000 gains on sale of securities and a $492,000 gain on sale of the Oak Grove Banking Center within other income, and $266,000 of expenses attributable to acquisition-related expenses, compared to the incurrence of $568,000 in acquisition-related expenses and $158,000 in gains attributed to former bank premises and equipment in other income for the quarter ended December 31, 2020.

Interest Income

For the quarter ended December 31, 2021, net interest income totaled $38.3 million and net interest margin and net interest spread were 3.57% and 3.38%, respectively, compared to $39.6 million, 4.26% and 4.03% for the quarter ended December 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.93% for the quarter ended December 31, 2021, compared to 5.59% for the quarter ended December 31, 2020. The decrease in interest income was largely attributable to lower fees and interest income from lower SBA PPP loan balances.

Average yield on total interest-earning assets, net interest margin, and net interest spread were negatively impacted for the quarter ended December 31, 2021, by lower yielding loans and securities, offset partially by lower deposit and borrowing costs.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.42% and 3.24%, respectively, for the quarter ended December 31, 2021, compared to 3.99% and 3.75% (excluding loan discount accretion of $2.6 million) for the quarter ended December 31, 2020.

Interest Expense

For the quarter ended December 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 15 basis points, from 0.53% to 0.38%, compared to the quarter ended December 31, 2020. The decrease in cost of funds was primarily attributable to an overall reduction in interest rates on deposit offerings and reduction in FHLB advance balances, offset by an increase associated with higher subordinated debt balances.

Other Income

For the quarter ended December 31, 2021, the decrease in other income of $2.6 million was largely attributable to the $4.2 million gains on sales of Main Street loans which occurred during December 2020, offset by an increase in gains on sales of securities of $429,000 and $1.3 million in fees and brokerage commissions, compared to the quarter ended December 31, 2020.

Other Expenses

For the quarter ended December 31, 2021, the decrease in other expense was $187,000 compared to December 31, 2020. Notable changes include a net increase in salaries and employee benefits of $2.4 million, offset by a reduction of other expenses attributable to a reduction of $2.4 million on loss of early extinguishment of FHLB debt.

Provision for Loan Losses

During the quarter ended December 31, 2021, Business First recorded a provision for loan losses of $1.3 million compared to $2.1 million for the quarter ended December 31, 2020. The reserve for the quarter ended December 31, 2020, was impacted by $450,000 in net charge-offs and the impact of the COVID-19 pandemic on the qualitative factors at the time.

Return on Assets and Equity

Return on average assets and return on average equity, each on an annualized basis, were 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021, from 1.37% and 13.86%, respectively, for the quarter ended December 31, 2020.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $4.7 billion in assets, $6.2 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $1.0 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas, Texas area, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a three-time recipient of Baton Rouge Business Report’s “Best Places to Work in Baton Rouge.” Visit b1BANK.com for more information.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP 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 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, including those factors specified in our Annual Report on Form 10-K and other public filings. Actual results will also be significantly impacted by the effects of the ongoing COVID-19 pandemic, including, among other effects: the impact of the public health crisis; the extent and duration of closures of businesses, including our Banking Centers, vendors and customers; the operation of financial markets; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; the adequacy of our allowance for loan losses in relation to potential losses in our loan portfolio; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. 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 and the TCBI merger, 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.

Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com


Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

For the Quarter Ended

December 31,

September 30,

December 31,

(Dollars in thousands)

2021

2021

2020

Balance Sheet Ratios

Loans (HFI) to Deposits

78.23

%

81.37

%

82.71

%

Shareholders' Equity to Assets Ratio

9.17

%

9.77

%

9.85

%

Loans Receivable Held for Investment

Commercial (1)

$

721,385

$

723,077

$

886,325

Real Estate:

Construction and Land

548,528

464,808

403,065

Farmland

87,463

85,898

55,883

1-4 Family Residential

467,699

464,462

468,650

Multi-Family Residential

97,508

107,551

95,707

Nonfarm Nonresidential

1,144,426

1,111,771

971,603

Total Real Estate

2,345,624

2,234,490

1,994,908

Consumer and Other (1)

122,599

108,669

110,122

Total Loans (Held for Investment)

$

3,189,608

$

3,066,236

$

2,991,355

Allowance for Loan Losses

Balance, Beginning of Period

$

28,146

$

26,702

$

20,340

Charge-offs – Quarterly

(385

)

(81

)

(715

)

Recoveries – Quarterly

51

378

265

Provision for Loan Losses – Quarterly

1,300

1,147

2,134

Balance, End of Period

$

29,112

$

28,146

$

22,024

Allowance for Loan Losses to Total Loans (HFI)

0.91

%

0.92

%

0.74

%

Net Charge-offs (Recoveries) to Average Total Loans

0.01

%

-0.01

%

0.01

%

Remaining Loan Purchase Discount

$

27,573

$

29,390

$

35,580

Nonperforming Assets

Nonperforming Loans:

Nonaccrual Loans (2)

$

12,868

$

12,622

$

9,063

Loans Past Due 90 Days or More (2)

222

1,030

1,523

Total Nonperforming Loans

13,090

13,652

10,586

Other Nonperforming Assets:

Other Real Estate Owned

1,427

2,152

9,051

Other Nonperforming Assets

-

675

402

Total Other Nonperforming Assets

1,427

2,827

9,453

Total Nonperforming Assets

$

14,517

$

16,479

$

20,039

Nonperforming Loans to Total Loans (HFI)

0.41

%

0.45

%

0.35

%

Nonperforming Assets to Total Assets

0.31

%

0.37

%

0.48

%

(1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loans accounted for $5.4 million of the commercial portfolio as of December 31, 2021.

SBA PPP loans accounted for $9.7 million of the commercial portfolio as of September 30, 2021.

SBA PPP loans accounted for $313.9 million and $1.6 million of the commercial

and consumer portfolios, respectively, as of December 31, 2020.

(2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.


Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

(Dollars in thousands, except per share data)

2021

2021

2020

2021

2020

Per Share Data

Basic Earnings per Common Share

$

0.59

$

0.51

$

0.67

$

2.54

$

1.65

Diluted Earnings per Common Share

0.59

0.50

0.67

2.53

1.64

Dividends per Common Share

0.12

0.12

0.10

0.46

0.40

Book Value per Common Share

21.24

21.11

19.88

21.24

19.88

Average Common Shares Outstanding

20,299,704

20,384,879

20,590,239

20,502,249

18,169,599

Average Diluted Shares Outstanding

20,462,317

20,513,838

20,726,648

20,634,281

18,243,445

End of Period Common Shares Outstanding

20,400,349

20,383,504

20,621,437

20,400,349

20,621,437

Annualized Performance Ratios

Return on Average Assets

1.05

%

0.95

%

1.37

%

1.18

%

0.88

%

Return on Average Equity

11.20

%

9.47

%

13.86

%

12.25

%

8.42

%

Net Interest Margin

3.57

%

3.71

%

4.26

%

3.84

%

4.06

%

Net Interest Spread

3.38

%

3.51

%

4.03

%

3.65

%

3.77

%

Efficiency Ratio (1)

65.55

%

67.73

%

60.27

%

61.84

%

67.75

%

Total Quarterly/Year-to-Date Average Assets

$

4,584,460

$

4,353,885

$

4,029,660

$

4,403,670

$

3,426,120

Total Quarterly/Year-to-Date Average Equity

430,834

435,400

399,332

425,692

356,339

Other Expenses

Salaries and Employee Benefits

$

17,355

$

16,791

$

14,908

$

65,825

$

57,394

Occupancy and Bank Premises

1,522

1,629

1,525

7,238

5,349

Depreciation and Amortization

793

1,720

1,338

5,792

4,334

Data Processing

2,032

1,994

1,967

8,137

5,506

FDIC Assessment Fees

668

581

595

2,194

1,608

Legal and Other Professional Fees

480

553

626

2,679

2,118

Advertising and Promotions

999

612

645

2,712

1,605

Utilities and Communications

586

678

617

2,475

2,368

Ad Valorem Shares Tax

449

675

850

2,499

2,348

Directors' Fees

207

201

173

790

464

Other Real Estate Owned Expenses and Write-Downs

76

103

132

736

607

Merger and Conversion-Related Expenses

266

145

548

515

3,978

Other

3,982

3,885

5,678

15,469

13,314

Total Other Expenses

$

29,415

$

29,567

$

29,602

$

117,061

$

100,993

Other Income

Service Charges on Deposit Accounts

$

1,800

$

1,763

$

1,672

$

6,813

$

5,358

Gain (Loss) on Sales of Securities

444

(11

)

15

378

135

Debit Card and ATM Fee Income

1,554

1,532

1,555

6,199

4,320

Bank-Owned Life Insurance Income

367

356

251

1,396

940

Gain on Sales of Loans

3

93

4,413

10,117

4,597

Mortgage Origination Income

169

227

208

866

572

Fees and Brokerage Commission

1,721

1,335

433

5,015

970

Gain (Loss) on Sales of Other Real Estate Owned

(35

)

(558

)

199

(1,122

)

227

Gain (Loss) on Disposal of Other Assets

(9

)

14

51

112

(576

)

Gain on Sale of Branch

492

-

-

492

-

Pass-Through Income from SBIC Partnerships

555

405

170

2,615

2,538

Other

(86

)

1,192

580

2,901

2,483

Total Other Income

$

6,975

$

6,348

$

9,547

$

35,782

$

21,564

(1) Non-GAAP: Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities.


Business First Bancshares, Inc.

Consolidated Balance Sheets

(Unaudited)

December 31,

September 30,

December 31,

(Dollars in thousands)

2021

2021

2020

Assets

Cash and Due From Banks

$

68,375

$

81,361

$

149,131

Federal Funds Sold

227,044

4,646

174,152

Securities Available for Sale, at Fair Values

1,021,061

1,034,491

640,605

Mortgage Loans Held for Sale

1,200

1,498

969

Loans and Lease Receivable

3,189,608

3,066,236

2,991,355

Allowance for Loan Losses

(29,112

)

(28,146

)

(22,024

)

Net Loans and Lease Receivable

3,160,496

3,038,090

2,969,331

Premises and Equipment, Net

58,155

56,611

58,593

Accrued Interest Receivable

19,597

19,025

23,895

Other Equity Securities

16,619

15,259

12,693

Other Real Estate Owned

1,427

2,152

9,051

Cash Value of Life Insurance

60,380

59,085

45,030

Deferred Taxes, Net

8,822

5,618

5,858

Goodwill

59,894

60,062

53,862

Core Deposit and Customer Intangibles

12,203

12,835

9,734

Other Assets

11,105

14,484

7,456

Total Assets

$

4,726,378

$

4,405,217

$

4,160,360

Liabilities

Deposits

Noninterest-Bearing

$

1,291,036

$

1,201,791

$

1,164,139

Interest-Bearing

2,786,247

2,566,330

2,452,540

Total Deposits

4,077,283

3,768,121

3,616,679

Securities Sold Under Agreements to Repurchase

19,121

27,195

21,825

Fed Funds Purchased

-

16,087

-

Short-Term Borrowings

20

20

5,020

Long-Term Borrowings

-

-

6,000

Subordinated Debt

81,427

81,427

25,000

Subordinated Debt - Trust Preferred Securities

5,000

5,000

5,000

Federal Home Loan Bank Borrowings

82,022

48,002

43,145

Accrued Interest Payable

1,354

1,835

2,499

Other Liabilities

26,783

27,309

25,229

Total Liabilities

4,293,010

3,974,996

3,750,397

Shareholders' Equity

Common Stock

20,400

20,384

20,621

Additional Paid-In Capital

292,271

291,847

299,540

Retained Earnings

121,874

112,243

79,174

Accumulated Other Comprehensive Income

(1,177

)

5,747

10,628

Total Shareholders' Equity

433,368

430,221

409,963

Total Liabilities and Shareholders' Equity

$

4,726,378

$

4,405,217

$

4,160,360



Business First Bancshares, Inc.

Consolidated Statements of Income

(Unaudited)

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

December 31,

(Dollars in thousands)

2021

2021

2020

2021

2020

Interest Income:

Interest and Fees on Loans

$

38,337

$

37,900

$

41,762

$

156,791

$

140,459

Interest and Dividends on Securities

3,904

3,598

2,572

13,520

9,121

Interest on Federal Funds Sold and Due From Banks

50

36

53

127

175

Total Interest Income

42,291

41,534

44,387

170,438

149,755

Interest Expense:

Interest on Deposits

2,645

3,060

3,736

12,183

17,562

Interest on Borrowings

1,302

1,180

1,067

4,371

4,547

Total Interest Expense

3,947

4,240

4,803

16,554

22,109

Net Interest Income

38,344

37,294

39,584

153,884

127,646

Provision for Loan Losses:

1,300

1,147

2,134

8,047

11,435

Net Interest Income After Provision for Loan Losses

37,044

36,147

37,450

145,837

116,211

Other Income:

Service Charges on Deposit Accounts

1,800

1,763

1,672

6,813

5,358

Gain (Loss) on Sales of Securities

444

(11

)

15

378

135

Gain on Sales of Loans

3

93

4,413

10,117

4,597

Other Income

4,728

4,503

3,447

18,474

11,474

Total Other Income

6,975

6,348

9,547

35,782

21,564

Other Expenses:

Salaries and Employee Benefits

17,355

16,791

14,908

65,825

57,394

Occupancy and Equipment Expense

3,857

3,912

3,373

15,750

11,380

Merger and Conversion-Related Expense

266

145

548

515

3,978

Other Expenses

7,937

8,719

10,773

34,971

28,241

Total Other Expenses

29,415

29,567

29,602

117,061

100,993

Income Before Income Taxes:

14,604

12,928

17,395

64,558

36,782

Provision for Income Taxes:

2,536

2,617

3,561

12,422

6,788

Net Income:

$

12,068

$

10,311

$

13,834

$

52,136

$

29,994


Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

Three Months Ended

December 31, 2021

September 30, 2021

December 31, 2020

(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 (Excluding SBA PPP)

$

3,106,477

$

38,318

4.93

%

$

2,948,491

$

37,666

5.11

%

$

2,685,093

$

37,509

5.59

%

SBA PPP Loans

7,733

19

1.00

%

10,150

234

9.24

%

365,058

4,253

4.66

%

Securities Available for Sale

1,041,437

3,904

1.50

%

946,950

3,598

1.52

%

603,192

2,572

1.71

%

Interest-Bearing Deposit in Other Banks

143,488

50

0.14

%

110,472

36

0.13

%

61,485

53

0.34

%

Total Interest-Earning Assets

4,299,135

42,291

3.93

%

4,016,063

41,534

4.14

%

3,714,828

44,387

4.78

%

Allowance for Loan Losses

(28,379

)

(27,409

)

(21,020

)

Noninterest-Earning Assets

313,704

365,231

335,852

Total Assets

$

4,584,460

$

42,291

$

4,353,885

$

41,534

$

4,029,660

$

44,387

Liabilities and Shareholders' Equity

Interest-Bearing Liabilities:

Interest-Bearing Deposits

$

2,653,041

$

2,645

0.40

%

$

2,566,766

$

3,060

0.48

%

$

2,313,511

$

3,736

0.65

%

Subordinated Debt

81,427

1,026

5.04

%

81,427

1,026

5.04

%

25,000

422

6.75

%

Subordinated Debt - Trust Preferred Securities

5,000

42

3.36

%

5,000

42

3.36

%

5,000

42

3.36

%

Advances from Federal Home Loan Bank (FHLB)

83,374

229

1.10

%

36,015

106

1.18

%

105,640

407

1.54

%

Paycheck Protection Program Liquidity Facility (PPPLF)

-

-

0.00

%

-

-

0.00

%

79,450

70

0.35

%

Other Borrowings

25,774

5

0.08

%

26,350

6

0.09

%

37,605

126

1.34

%

Total Interest-Bearing Liabilities

2,848,616

3,947

0.55

%

2,715,558

4,240

0.62

%

2,566,206

4,803

0.75

%

Noninterest-Bearing Liabilities:

Noninterest-Bearing Deposits

$

1,276,279

$

1,172,752

$

1,033,593

Other Liabilities

28,731

30,175

30,529

Total Noninterest-Bearing Liabilities

1,305,010

1,202,927

1,064,122

Shareholders' Equity

430,834

435,400

399,332

Total Liabilities and Shareholders' Equity

$

4,584,460

$

4,353,885

$

4,029,660

Net Interest Spread

3.38...

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