UNITED STATES

SECURITIES AND EXCHANGE COMMMISSION

Washington, D.C. 20549

 


 

FORM 8-K

 


 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 29, 2020

 


 

BUSINESS FIRST BANCSHARES, INC.

(Exact name of registrant as specified in its charter)

 


 

Louisiana

333-200112

20-5340628

(State of incorporation)

(Commission File Number)

(I.R.S. Employer Identification No.)

     

500 Laurel Street, Suite 101

Baton Rouge, Louisiana

 

70801

(Address of principal executive offices)

 

(Zip code)

     

Registrant’s telephone number, including area code: (225) 248-7600

 


 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Exchange Act:

 

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $1.00 per share

BFST 

NASDAQ Global Select Market 

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company     ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

         ☒

 



 

 

 

2.02

Results of Operations and Financial Condition.

 

On July 29, 2020, Business First Bancshares, Inc. (“Business First”), the parent company of b1BANK, issued a press release announcing financial results for the quarter ended June 30, 2020. The release also announced that the Board of Directors of Business First declared a cash dividend on July 23, 2020, in the amount of $0.10 to the shareholders of record of Business First as of August 15, 2020. The dividend is to be paid on August 31, 2020, or as soon as practicable thereafter. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.

 

The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.

 

7.01

Regulation FD Disclosure


On July 29, 2020, Business First made available the supplemental information prepared for use with the press release.

 

The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.

 

9.01

Financial Statements and Exhibits.

 

(d)

Exhibits.

 

Exhibit No.

 

Description of Exhibit

99.1

 

Press Release of Business First Bancshares, Inc., dated July 29, 2020.

99.2   Business First Bancshares, Inc. Investor Presentation, Q2 2020 Results.

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Dated: July 29, 2020

 

  Business First bancshares, inc.
     
     
 

  By:

/s/ David R. Melville, III
   

David R. Melville, III

   

President and Chief Executive Officer

     

 

 
ex_195799.htm

Exhibit 99.1

 

 

 

 

FOR IMMEDIATE RELEASE Misty Albrecht
July 29, 2020 b1BANK
  225.286.7879
  Misty.Albrecht@b1BANK.com

 

 

 

BUSINESS FIRST BANCSHARES, INC., ANNOUNCES FINANCIAL RESULTS FOR Q2 2020

 

 

Baton Rouge, La. (July 29, 2020) – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended June 30, 2020, including net income of $2.1 million, or $0.11 per diluted share, decreases of $4.8 million and $0.39, respectively, from the quarter ended June 30, 2019. On a non-GAAP basis, core net income for the quarter ended June 30, 2020, which excludes certain income and expenses, was $7.4 million, or $0.41 per diluted share, an increase of $748,000 and decrease of $0.07, respectively, from the quarter ended June 30, 2019. Both net income and diluted earnings per share were adversely impacted for the quarter ended June 30, 2020, by additional provision for loan losses associated with the sustained pressure on the general economy caused by the COVID-19 pandemic and acquisition-related expenses.

 

“The second quarter was simultaneously the most challenging, and in many ways, the most rewarding period we’ve experienced as a company,” said Jude Melville, president and CEO. “We stood with our clients during an economic crisis, we consummated a transformative merger during a time of market crisis, and we took care of our people in the midst of a health crisis. I could not be prouder of our team. We’ll continue to do our part as our region’s leading community bank as we recover together in the coming months.”

 

On July 23, 2020, Business First’s board of directors declared a quarterly dividend based upon financial performance for the second quarter in the amount of $0.10 per share, same as the prior quarter, to the common shareholders of record as of August 15, 2020. The dividend will be paid on August 31, 2020, or as soon thereafter as practicable.

 

Quarterly Highlights

 

 

Successful Acquisition and Conversion of Pedestal Bancshares Inc. Business First acquired Pedestal Bancshares Inc. (Pedestal), with approximately $1.4 billion in assets, $935.8 million in gross loans, and $1.2 billion in deposits, on May 1, 2020. The conversion of data processing was successfully completed during the weekend of May 23, 2020.

 

 


b1BANK.com

 

 

 

 

COVID-19 Related Matters. Business First proactively assisted, and continues to assist, customers by deferring principal and/or interest payments on approximately 2,600 loans with an outstanding balance of $938.5 million as of June 30, 2020. Approximately $223.0 million of the deferrals were interest-only as of June 30, 2020. Additionally, Business First has funded approximately 2,800 loans with an aggregate outstanding balance of $395.4 million under the Small Business Administration (SBA) Paycheck Protection Program (PPP), of which $86.1 million were acquired in the Pedestal acquisition. Business First also recorded $5.4 million of provision expense, of which a significant portion was associated with the continued impact the COVID-19 pandemic caused on the general economy.

 

 

Stable Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from 0.57% and 0.59%, respectively, at March 31, 2020, to 0.39% and 0.49% at June 30, 2020. The decreases were attributable to the increased size of the loan portfolio, including SBA PPP loans, and total assets associated with the acquisition of Pedestal on May 1, 2020.

 

 

Net Interest Margin and Spread. Net interest margin and spread were negatively impacted due to the full effect of the federal funds rate cuts of 150 basis points during the month of March and lower-yielding SBA PPP loans, offset by a reduction in cost of funds, increased loan discount, deposit premium, and Federal Home Loan Bank (FHLB) premium accretion, and a higher-yielding loan portfolio due to the Pedestal acquisition, compared to the quarter ended March 31, 2020. Net interest margin and net interest spread were 3.89% and 3.59%, respectively, for the quarter ended June 30, 2020, compared to 3.93% and 3.55% for the quarter ended March 31, 2020. Excluding loan discount accretion, net interest margin and spread were 3.71% and 3.41%, respectively, for the quarter ended June 30, 2020, compared to 3.88% and 3.49% for the quarter ended March 31, 2020.

 

 

Loan Growth. Total loans held for investment at June 30, 2020, were $3.0 billion, an increase of $1.2 billion compared to March 31, 2020. Loan growth was significantly impacted by the acquisition of Pedestal and origination of SBA PPP loans. Net organic loan growth, excluding the Pedestal acquisition and SBA PPP originated loans, was 3.22% annualized for the quarter ended June 30, 2020.

 

 


 

b1BANK.com 

 

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Financial Condition

 

June 30, 2020, Compared to March 31, 2020

 

 

Loans

 

Total loans held for investment increased by $1.2 billion compared to March 31, 2020. The increase was largely attributable to the $893.3 million in net loans acquired from Pedestal, including $86.1 million of SBA PPP loans, and $309.3 million of SBA PPP loans originated by Business First. Excluding the Pedestal acquisition and SBA PPP originations, net organic loan growth was $20.8 million for the quarter ended June 30, 2020, or 3.22% annualized.

 

Consistent with the quarter ended March 31, 2020, Business First’s unfunded commitments remained constant throughout the quarter ended June 30, 2020, excluding the increase attributable to the acquisition of Pedestal. Business First has not identified any unusual customer usage of unfunded commitments since the beginning of the COVID 19-panademic in March 2020.

 

Credit Quality

 

Nonperforming loans as a percentage of total loans held for investment decreased from 0.57% as of March 31, 2020, to 0.39% as of June 30, 2020. Nonperforming assets as a percentage of total assets decreased from 0.59% as of March 31, 2020, to 0.49% as of June 30, 2020. The decreases were attributable to an increase in overall total loans held for investment and total assets from the acquisition of Pedestal during the quarter ended June 30, 2020.

 

Total Shareholders Equity

 

Book value per common share was $18.69 at June 30, 2020, compared to $21.58 at March 31, 2020. The decreases were attributable to the initial book value dilution caused by the acquisition of Pedestal during the quarter ended June 30, 2020.

 

 


 

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June 30, 2020, Compared to June 30, 2019

 

 

Loans

 

Total loans held for investment increased by $1.4 billion compared to June 30, 2019, or 82.3%, due primarily to the acquisition of Pedestal and origination of SBA PPP loans during the quarter ended June 30, 2020.

 

Credit Quality

 

Nonperforming loans as a percentage of total loans held for investment decreased from 0.61% as of June 30, 2019, to 0.39% as of June 30, 2020. Nonperforming assets as a percentage of total assets decreased from 0.58% as of June 30, 2019, to 0.49% as of June 30, 2020. The decreases were attributable to an increase in overall total loans held for investment and total assets from the acquisition of Pedestal during the quarter ended June 30, 2020.

 

Total Shareholders Equity

 

Book value per common share was $18.69 at June 30, 2020, compared to $20.77 at June 30, 2019. The decreases were attributable to the initial book value dilution caused by the acquisition of Pedestal during the quarter ended June 30, 2020.

 

Results of Operations

 

Second Quarter 2020 Compared to First Quarter 2020

 

Net Income and Diluted Earnings Per Share

 

For the quarter ended June 30, 2020, net income was $2.1 million, or $0.11 per diluted share, compared to net income of $4.5 million, or $0.34 per diluted share, for the quarter ended March 31, 2020. The decreases were largely attributable to the increase in the provision for loan losses, due to the COVID-19 pandemic’s sustained impact on the general economy, and increase in acquisition-related expenses, offset by increases in investment income from Small Business Investment Companies (SBICs) and interest income from SBA PPP loans.

 

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2020, was $7.4 million, or $0.41 per diluted share, compared to core net income of $5.0 million, or $0.37 per diluted share, for the quarter ended March 31, 2020. Notable events impacting earnings for the quarter ended June 30, 2020, included the incurrence of $6.6 million in acquisition-related expenses, compared to the incurrence of $1.2 million in acquisition-related expenses for the quarter ended March 31, 2020, and $530,000 reduction in income tax expense due to stock option exercises.

 

 


 

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Interest Income

 

For the quarter ended June 30, 2020, net interest income totaled $30.9 million and net interest margin and net interest spread were 3.89% and 3.59%, respectively, compared to $20.2 million, 3.93% and 3.55% for the quarter ended March 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.61% for the quarter ended June 30, 2020, compared to 5.55% for the quarter ended March 31, 2020. The average yield on total interest-earning assets was 4.65% for the quarter ended June 30, 2020, compared to 5.06% for the quarter ended March 31, 2020.

 

Net interest margin and net interest spread were positively impacted for the quarter ended June 30, 2020, by additional loan discount, deposit premium, and FHLB premium accretion, an overall higher-yielding loan portfolio from the Pedestal acquisition, and reduction in the overall cost of funds (which includes noninterest-bearing deposits), offset by the full impact of the federal funds rate cuts of 150 basis points during March 2020. The average loan yield (excluding SBA PPP loans) was also impacted by the same factors, excluding the impact of deposit and FHLB premium accretion and cost of funds.

 

The average yield on total interest-earning assets was negatively impacted for the quarter ended June 30, 2020, due to lower-yielding SBA PPP loans which were originated during the quarter.

 

Net interest margin and net interest spread (excluding loan discount accretion of $1.5 million) were 3.71% and 3.41%, respectively, for the quarter ended June 3o, 2020, compared to 3.88% and 3.49% (excluding loan discount accretion of $290,000) for the quarter ended March 31, 2020.

 

Interest Expense

 

For the quarter ended June 30, 2020, overall cost of funds (which includes noninterest-bearing deposits) decreased by 43 basis points, from 1.20% to 0.77%, compared to the quarter ended March 31, 2020. The decrease in cost of funds was partially attributable to the accretion of deposit premium and FHLB premium associated with the Pedestal acquisition ($551,000), but largely attributable to an overall reduction in interest rates on deposit offerings and the lower-yielding deposit portfolio acquired from Pedestal.

 

 


 

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Other Income

 

For the quarter ended June 30, 2020, other income was impacted by an additional $1.2 million in SBIC investment income and additional increases in other categories largely attributable to the Pedestal acquisition, compared to the quarter ended March 31, 2020.

 

Other Expense

 

For the quarter ended June 30, 2020, the increases were largely attributable to the Pedestal acquisition, compared to the quarter ended March 31, 2020.

 

Provision for Loan Losses

 

During the quarter ended June 30, 2020, Business First recorded a provision for loan losses of $5.4 million, compared to $1.4 million for the quarter ended March 31, 2020. The reserve for the quarter ended June 30, 2020, was impacted significantly by the sustained impact on the general economy of the COVID-19 pandemic. The increase related to the COVID-19 pandemic was recorded through a qualitative adjustment.

 

Return on Assets and Equity

 

Return on average assets and equity, each on an annualized basis, were 0.23% and 2.35%, respectively, for the quarter ended June 30, 2020, compared to 0.80% and 6.31%, respectively, for the quarter ended March 31, 2020. Both returns were significantly impacted by the provision for loan loss and acquisition-related expenses recorded for the quarter ended June 30, 2020.

 

Second Quarter 2020 Compared to Second Quarter 2019

 

Net Income and Diluted Earnings Per Share

 

For the quarter ended June 30, 2020, net income was $2.1 million, or $0.11 per diluted share, compared to net income of $6.8 million, or $0.50 per diluted share, for the quarter ended June 30, 2020. The decreases in net income and diluted earnings per share were largely attributable to increased provision for loan losses and additional expenses associated with the acquisition of Pedestal on May 1, 2020, offset by increases in net interest income and other income related to the acquisition of Pedestal for the quarter ended June 30, 2020.

 

 


 

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On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2020, was $7.4 million, or $0.41 per diluted share, compared to core net income of $6.6 million, or $0.48 per diluted share, for the quarter ended June 30, 2019. Notable events impacting earnings for the quarter ended June 30, 2020, included the incurrence of $6.6 million in acquisition-related expenses, compared to the incurrence of $436,000 in acquisition-related expenses and a $593,000 gain associated with the sale of a banking center for the quarter ended June 30, 2019.

 

Interest Income

 

For the quarter ended June 30, 2020, net interest income totaled $30.9 million and net interest margin and net interest spread were 3.89% and 3.59%, respectively, compared to $20.2 million, 4.19% and 3.75% for the quarter ended June 30, 2019. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.61% for the quarter ended June 30, 2020, compared to 5.96% for the quarter ended June 30, 2019. The average yield on total interest-earning assets was 4.65% for the quarter ended June 30, 2020, compared to 5.37% for the quarter ended June 30, 2019.

 

Average loan yield (excluding SBA PPP loans), average yield on total interest-earning assets, net interest margin, and net interest spread were impacted for the quarter ended June 30, 2020, by the federal funds rate cuts of 225 basis points which occurred throughout the second half of 2019 and first quarter of 2020. The average yield on total interest-earning assets was also impacted by the lower-yielding SBA PPP loans originated during the quarter ended June 30, 2020.

 

Net interest margin and net interest spread (excluding loan discount accretion of $1.5 million) were 3.71% and 3.41%, respectively, for the quarter ended June 30, 2020, compared to 4.02% and 3.58% (excluding loan discount accretion of $826,000) for the quarter ended June 30, 2019.

 

Interest Expense

 

For the quarter ended June 30, 2020, overall cost of funds (which includes noninterest-bearing deposits) decreased by 49 basis point, from 1.26% to 0.77%, compared to the quarter ended June 30, 2019. The decrease in cost of funds was partially attributable to the accretion of deposit and FHLB premiums associated with the Pedestal acquisition ($551,000), but largely attributable to an overall reduction in interest rates on deposit offerings and the lower-yielding deposit portfolio acquired from Pedestal.

 

 


 

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Other Income

 

For the quarter ended June 30, 2020, the increase was largely attributable to the acquisition of Pedestal, partially offset by the $593,000 gain on sale of a banking center during the quarter ended June 30, 2019.

 

Other Expense

 

For the quarter ended June 30, 2020, the increase was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020.

 

Provision for Loan Losses

 

During the quarter ended June 30, 2020, Business First recorded a provision for loan losses of $5.4 million compared to $1.3 million for the quarter ended June 30, 2019. The reserve for the quarter ended June 30, 2020, was impacted significantly by the sustained impact on the general economy of the COVID-19 pandemic.

 

Return on Assets and Equity

 

Return on average assets and return on average equity, each on an annualized basis, were 0.23% and 2.35%, respectively, for the quarter ended June 30, 2020, from 1.30% and 10.13%, respectively, for the quarter ended June 30, 2019. Both returns were significantly impacted by the provision for loan loss and acquisition-related expenses recorded for the quarter ended June 30, 2020, in addition to a lower net interest margin for the quarter ended June 30, 2020.

 

About Business First Bancshares, Inc.

Business First Bancshares, Inc., through its banking subsidiary b1BANK, formerly known as Business First Bank, operates 48 banking centers in markets across Louisiana and in the Dallas, Texas area. b1BANK 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”) 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, 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.

 

 


 

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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 branches, 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, 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.

 

 


 

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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.

 

 


 

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Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

 

   

June 30,

   

March 31,

   

June 30,

 

(Dollars in thousands)

 

2020

   

2020

   

2019

 
                         

Balance Sheet Ratios

                       
                         

Loans (HFI) to Deposits

    92.12 %     98.26 %     96.46 %

Shareholders' Equity to Assets Ratio

    9.75 %     12.33 %     12.88 %
                         

Loans Receivable Held for Investment

                       
                         

Commercial (1)

  $ 1,026,596     $ 431,992     $ 411,256  

Real Estate:

                       

Construction and Land

    333,675       260,836       227,102  

Farmland

    57,498       53,900       47,245  

1-4 Family Residential

    495,827       295,876       278,610  

Multi-Family Residential

    59,213       32,859       38,698  

Nonfarm Nonresidential

    914,601       623,114       561,149  

Total Real Estate

    1,860,814       1,266,585       1,152,804  

Consumer (1)

    107,402       72,803       78,513  

Total Loans

  $ 2,994,812     $ 1,771,380     $ 1,642,573  
                         

Allowance for Loan Losses

                       
                         

Balance, Beginning of Period

  $ 13,319     $ 12,124     $ 11,818  

Charge-offs – Quarterly

    (98 )     (194 )     (1,565 )

Recoveries – Quarterly

    51       22       48  

Provision for Loan Losses – Quarterly

    5,443       1,367       1,302  

Balance, End of Period

  $ 18,715     $ 13,319     $ 11,603  
                         

Allowance for Loan Losses to Total Loans (HFI)

    0.62 %     0.75 %     0.71 %

Net Charge-offs (Recoveries) to Average Total Loans

    0.00 %     0.01 %     0.09 %
                         

Remaining Loan Purchase Discount

  $ 44,302     $ 3,246     $ 3,536  
                         

Nonperforming Assets

                       
                         

Nonperforming Loans:

                       

Nonaccrual Loans (2)

  $ 11,433     $ 9,301     $ 9,363  

Loans Past Due 90 Days or More (2)

    317       834       727  

Total Nonperforming Loans

    11,750       10,135       10,090  

Other Nonperforming Assets:

                       

Other Real Estate Owned

    7,642       3,281       2,324  

Other Nonperforming Assets

    179       11       6  

Total Other Nonperforming Assets

    7,821       3,292       2,330  

Total Nonperforming Assets

  $ 19,571     $ 13,427     $ 12,420  
                         

Nonperforming Loans to Total Loans (HFI)

    0.39 %     0.57 %     0.61 %

Nonperforming Assets to Total Assets

    0.49 %     0.59 %     0.58 %

 

(1) Small Business Adminstration "SBA" Paycheck Protection Program "PPP" loans accounted for $389.9 million and $5.5 million of the Commercial and Consumer portfolios, respectively, as of June 30, 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.

 

 


 

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Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

 

   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

March 31,

   

June 30,

   

June 30,

   

June 30,

 

(Dollars in thousands, except per share data)

 

2020

   

2020

   

2019

   

2020

   

2019

 
                                         

Per Share Data

                                       
                                         

Basic Earnings per Common Share

  $ 0.11     $ 0.34     $ 0.51     $ 0.42     $ 0.94  

Diluted Earnings per Common Share

    0.11       0.34       0.50       0.42       0.91  

Dividends per Common Share

    0.10       0.10       0.10       0.20       0.18  

Book Value per Common Share

    18.69       21.58       20.77       18.69       20.77  
                                         
                                         

Average Common Shares Outstanding

    18,108,068       13,313,154       13,361,482       15,710,611       13,324,725  

Average Diluted Shares Outstanding

    18,121,958       13,367,276       13,740,937       15,776,376       13,704,180  

End of Period Common Shares Outstanding

    20,667,237       13,067,987       13,361,482       20,667,237       13,361,482  
                                         
                                         

Annualized Performance Ratios

                                       
                                         

Return on Average Assets

    0.23 %     0.80 %     1.30 %     0.46 %     1.20 %

Return on Average Equity

    2.35 %     6.31 %     10.13 %     4.13 %     9.38 %

Net Interest Margin

    3.89 %     3.93 %     4.19 %     3.91 %     4.11 %

Net Interest Spread

    3.59 %     3.55 %     3.75 %     3.57 %     3.69 %

Efficiency Ratio (1)

    77.40 %     72.39 %     59.85 %     75.44 %     61.96 %
                                         

Total Quarterly/Year-to-Date Average Assets

  $ 3,496,074     $ 2,244,584     $ 2,102,692     $ 2,870,329     $ 2,089,188  

Total Quarterly/Year-to-Date Average Equity

    349,634       285,338     $ 270,262       317,486       266,493  
                                         

Other Expenses

                                       
                                         

Salaries and Employee Benefits

  $ 17,621     $ 9,435     $ 8,756     $ 27,056     $ 17,308  

Occupancy and Bank Premises

    1,370       1,060       1,079       2,430       2,182  

Depreciation and Amortization

    1,073       601       633       1,674       1,261  

Data Processing

    1,055       652       576       1,707       1,192  

FDIC Assessment Fees

    272       147       248       419       398  

Legal and Other Professional Fees

    543       394       353       937       671  

Advertising and Promotions

    334       306       279       640       606  

Utilities and Communications

    645       317       323       962       621  

Ad Valorem Shares Tax

    450       375       345       825       690  

Directors' Fees

    100       74       125       174       330  

Other Real Estate Owned Expenses and Write-Downs

    51       253       72       304       99  

Merger and Conversion-Related Expenses

    1,726       1,148       235       2,874       (19 )

Other

    2,557       1,881       1,553       4,438       3,028  

Total Other Expenses

  $ 27,797     $ 16,643     $ 14,577     $ 44,440     $ 28,367  
                                         

Other Income

                                       
                                         

Service Charges on Deposit Accounts

  $ 1,163     $ 931     $ 1,034     $ 2,094     $ 1,972  

Gain on Sales of Securities

    -       25       58       25       58  

Debit card and ATM Fee Income

    959       407       492       1,366       937  

Bank-Owned Life Insurance Income

    255       197       174       452       342  

Gain on Sales of Loans

    7       177       91       184       91  

Mortgage Origination Income

    126       115       98       241       188  

Brokerage Commission

    236       20       9       256       43  

Correspondent Bank Income

    32       109       17       141       225  

Rental Income

    15       31       165       46       329  

Gain on Sale of Banking Center

    -       -       593       -       593  

Gain (loss) on Sales of Other Real Estate Owned

    (19 )     151       5       132       (51 )

Pass-through Income from SBIC Partnerships

    1,624       380       1,266       2,004       1,266  

Other

    598       261       217       859       537  

Total Other Income

  $ 4,996     $ 2,804     $ 4,219     $ 7,800     $ 6,530  

 

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

 

 


 

b1BANK.com

 

12

 

Business First Bancshares, Inc.

Consolidated Balance Sheets

(Unaudited)

 

   

June 30,

   

March 31,

   

June 30,

 

(Dollars in thousands)

 

2020

   

2020

   

2019

 
                         

Assets

                       
                         

Cash and Due From Banks

  $ 116,021     $ 80,109     $ 64,043  

Federal Funds Sold

    40,329       29,135       20,809  

Securities Available for Sale, at Fair Values

    583,118       275,115       294,981  

Mortgage Loans Held for Sale

    456       868       443  

Loans and Lease Receivable

    2,994,812       1,771,380       1,642,573  

Allowance for Loan Losses

    (18,715 )     (13,319 )     (11,603 )

Net Loans and Lease Receivable

    2,976,097       1,758,061       1,630,970  

Premises and Equipment, Net

    63,959       29,656       27,577  

Accrued Interest Receivable

    33,844       7,724       7,957  

Other Equity Securities

    18,681       11,721       11,717  

Other Real Estate Owned

    7,642       3,281       2,324  

Cash Value of Life Insurance

    44,542       32,765       32,223  

Deferred Taxes, Net

    6,858       1,800       2,527  

Goodwill

    53,649       48,495       48,503  

Core Deposit Intangible

    10,389       6,471       7,139  

Other Assets

    5,553       2,461       2,395  
                         

Total Assets

  $ 3,961,138     $ 2,287,662     $ 2,153,608  
                         
                         

Liabilities

                       
                         

Deposits:

                       

Noninterest-Bearing

  $ 985,537     $ 417,534     $ 394,848  

Interest-Bearing

    2,265,485       1,385,274       1,308,054  

Total Deposits

    3,251,022       1,802,808       1,702,902  
                         

Securities Sold Under Agreements to Repurchase

    25,391       14,728       16,096  

Short-Term Borrowings

    6,145       5,000       -  

Long-Term Borrowings

    7,797       -       -  
Payroll Protection Program Liquidity Facility     107,076       -       -  

Subordinated Debt

    25,000       25,000       25,000  

Trust Preferred Securities

    5,000       -       -  

Federal Home Loan Bank Borrowings

    118,177       138,000       108,000  

Accrued Interest Payable

    3,920       1,573       1,924  

Other Liabilities

    25,274       18,523       22,217  
                         

Total Liabilities

    3,574,802       2,005,632       1,876,139  
                         

Shareholders' Equity

                       
                         

Common Stock

    20,667       13,068       13,361  

Additional Paid-In Capital

    297,606       206,966       213,823  

Retained Earnings

    59,850       59,859       48,087  

Accumulated Other Comprehensive Income

    8,213       2,137       2,198  
                         

Total Shareholders' Equity

    386,336       282,030       277,469  
                         

Total Liabilities and Shareholders' Equity

  $ 3,961,138     $ 2,287,662     $ 2,153,608  

 

 


 

b1BANK.com

 

13

 

Business First Bancshares, Inc.

Consolidated Statements of Income

(Unaudited)

 

   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

March 31,

   

June 30,

   

June 30,

   

June 30,

 

(Dollars in thousands)

 

2020

   

2020

   

2019

   

2020

   

2019

 
                                         

Interest Income:

                                       

Interest and Fees on Loans

  $ 34,636     $ 24,143     $ 23,870     $ 58,779     $ 46,293  

Interest and Dividends on Securities

    2,175       1,731       1,829       3,906       3,703  

Interest on Federal Funds Sold and Due From Banks

    80       142       197       222       487  

Total Interest Income

    36,891       26,016       25,896       62,907       50,483  
                                         

Interest Expense:

                                       

Interest on Deposits

    4,795       4,686       5,038       9,481       9,795  

Interest on Borrowings

    1,177       1,119       665       2,296       1,375  

Total Interest Expense

    5,972       5,805       5,703       11,777       11,170  
                                         

Net Interest Income

    30,919       20,211       20,193       51,130       39,313  
                                         

Provision for Loan Losses

    5,443       1,367       1,302       6,810       1,935  
                                         

Net Interest Income After Provision for Loan Losses

    25,476       18,844       18,891       44,320       37,378  
                                         

Other Income:

                                       

Service Charges on Deposit Accounts

    1,163       931       1,034       2,094       1,972  

Gain on Sales of Securities

    -       25       58       25       58  

Other Income

    3,833       1,848       3,127       5,681       4,500  

Total Other Income

    4,996       2,804       4,219       7,800       6,530  
                                         

Other Expenses:

                                       

Salaries and Employee Benefits

    17,621       9,435       8,756       27,056       17,308  

Occupancy and Equipment Expense

    2,888       1,891       1,884       4,779       3,778  

Merger and Conversion-Related Expense

    1,726       1,148       235       2,874       (19 )

Other Expenses

    5,562       4,169       3,702       9,731       7,300  

Total Other Expenses

    27,797       16,643       14,577       44,440       28,367  
                                         

Income Before Income Taxes

    2,675       5,005       8,533       7,680       15,541  
                                         

Provision for Income Taxes

    623       506       1,690       1,129       3,039  
                                         

Net Income

  $ 2,052     $ 4,499     $ 6,843     $ 6,551     $ 12,502  

 

 


 

b1BANK.com

 

14

 

Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

 

   

Three Months Ended

 
   

June 30, 2020

   

March 31, 2020

   

June 30, 2019

 
   

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 (Excluding SBA PPP)

  $ 2,304,438     $ 32,306       5.61 %   $ 1,740,189     $ 24,143       5.55 %   $ 1,602,087     $ 23,870       5.96 %

SBA PPP Loans

    321,127       2,330       2.90 %     -     $ -       0.00 %     -       -       0.00 %

Securities Available for Sale

    481,422       2,175       1.81 %     286,660       1,731       2.42 %     303,232       1,829       2.41 %

Interest-Bearing Deposit in Other Banks

    69,169       80       0.46 %     28,754       142       1.98 %     23,716       197       3.32 %

Total Interest-Earning Assets

    3,176,156       36,891       4.65 %     2,055,603       26,016       5.06 %     1,929,035       25,896       5.37 %

Allowance for Loan Losses

    (13,606 )                     (12,203 )                     (11,702 )                

Noninterest-Earning Assets

    333,524                       201,184                       185,359                  

Total Assets

  $ 3,496,074     $ 36,891             $ 2,244,584     $ 26,016             $ 2,102,692     $ 25,896          
                                                                         
                                                                         

Liabilities and Shareholders' Equity

                                                                       
                                                                         

Interest-Bearing Liabilities:

                                                                       

Interest-Bearing Deposits

  $ 1,994,680     $ 4,795       0.96 %   $ 1,342,213     $ 4,686       1.40 %   $ 1,335,630     $ 5,038       1.51 %

Subordinated Debt

    25,000       422       6.75 %     25,000       422       6.75 %     25,000       429       6.86 %

Advances from Federal Home Loan Bank ("FHLB")

    129,441       526       1.63 %     98,323       497       2.02 %     36,856       224       2.43 %

Payroll Protection Program Liquidity Facility ("PPPLF")

    76,902       72       0.37 %     -       -       0.00 %     -       -       0.00 %

Other Borrowings

    36,308       157       1.73 %     67,125       200       1.19 %     14,390       12       0.33 %

Total Interest-Bearing Liabilities

    2,262,331       5,972       1.06 %     1,532,661       5,805       1.52 %     1,411,876       5,703       1.62 %
                                                                         

Noninterest-Bearing Liabilities:

                                                                       

Noninterest-Bearing Deposits

  $ 852,608                     $ 406,035                     $ 396,793                  

Other Liabilities

    31,501                       20,550                       23,761                  

Total Noninterest-Bearing Liabilities

    884,109                       426,585                       420,554                  

Shareholders' Equity

    349,634                       285,338                       270,262                  

Total Liabilities and Shareholders' Equity

  $ 3,496,074                     $ 2,244,584                     $ 2,102,692                  
                                                                         

Net Interest Spread

                    3.59 %                     3.55 %                     3.75 %

Net Interest Income

          $ 30,919                     $ 20,211                     $ 20,193          

Net Interest Margin

                    3.89 %                     3.93 %                     4.19 %
                                                                         

Overall Cost of Funds

                    0.77 %                     1.20 %                     1.26 %

 

NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.

 

 


 

b1BANK.com

 

15

 

Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

 

   

Six Months Ended

 
   

June 30, 2020

   

June 30, 2019

 
   

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 (Excluding SBA PPP)

  $ 2,022,313     $ 56,449       5.58 %   $ 1,575,988     $ 46,293       5.87 %

SBA PPP Loans

    160,564       2,330       2.90 %     -       -       0.00 %

Securities Available for Sale

    384,041       3,906       2.03 %     306,501       3,703       2.42 %

Interest-Bearing Deposit in Other Banks

    48,962       222       0.91 %     31,897       487       3.05 %

Total Interest-Earning Assets

    2,615,879       62,907       4.81 %     1,914,386       50,483       5.27 %

Allowance for Loan Losses

    (12,905 )                     (11,546 )                

Noninterest-Earning Assets

    267,355                       186,348                  

Total Assets

  $ 2,870,329     $ 62,907             $ 2,089,188     $ 50,483          
                                                 
                                                 

Liabilities and Shareholders' Equity

                                               
                                                 

Interest-Bearing Liabilities:

                                               

Interest-Bearing Deposits

  $ 1,668,446     $ 9,481       1.14 %   $ 1,335,522     $ 9,795       1.47 %

Subordinated Debt

    25,000       844       6.75 %     25,000       845       6.76 %

Advances from Federal Home Loan Bank ("FHLB")

    113,882       1,023       1.80 %     37,191       505       2.72 %

Payroll Protection Program Liquidity Facility ("PPPLF")

    38,451       72       0.37 %     -       -       0.00 %

Other Borrowings

    51,717       357       1.38 %     13,436       25       0.37 %

Total Interest-Bearing Liabilities

    1,897,496       11,777       1.24 %     1,411,149       11,170       1.58 %
                                                 

Noninterest-Bearing Liabilities:

                                               

Noninterest-Bearing Deposits

    629,321                       395,304                  

Other Liabilities

    26,026                       16,242                  

Total Noninterest-Bearing Liabilities

    655,347                       411,546                  

Shareholders' Equity

    317,486                       266,493                  

Total Liabilities and Shareholders' Equity

  $ 2,870,329                     $ 2,089,188                  
                                                 

Net Interest Spread

                    3.57 %                     3.69 %

Net Interest Income

          $ 51,130                     $ 39,313          

Net Interest Margin

                    3.91 %                     4.11 %
                                                 

Overall Cost of Funds

                    0.93 %                     1.24 %

 

NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention.

 

 


 

b1BANK.com

 

16

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

 

   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

March 31,

   

June 30,

   

June 30,

   

June 30,

 

(Dollars in thousands, except per share data)

 

2020

   

2020

   

2019

   

2020

   

2019

 
                                         

Interest Income:

                                       

Interest income

  $ 36,891     $ 26,016     $ 25,896     $ 62,907     $ 50,483  

Core interest income

    36,891       26,016       25,896       62,907       50,483  

Interest Expense:

                                       

Interest expense

    5,972       5,805       5,703       11,777       11,170  

Core interest expense

    5,972       5,805       5,703       11,777       11,170  

Provision for Loan Losses: (b)

                                       

Provision for loan losses

    5,443       1,367       1,302       6,810       1,935  

Core provision expense

    5,443       1,367       1,302       6,810       1,935  

Other Income:

                                       

Other income

    4,996       2,804       4,219       7,800       6,530  

Sale of impaired credit

    -       -       (91 )     -       (91 )

(Gains) losses on former bank premises and equipment

    -       (126 )     -       (126 )     -  

(Gains) on sale of securities

    -       (25 )     (58 )     (25 )     (58 )

(Gains) on sale of banking center

    -       -       (593 )     -       (593 )

Core other income

    4,996       2,653       3,477       7,649       5,788  

Other Expense:

                                       

Other expense

    27,797       16,643       14,577       44,440       28,367  

Acquisition-related expenses (2)

    (6,573 )     (1,212 )     (436 )     (7,785 )     (386 )

Stock option exercises - excess taxes

    -       (71 )     -       (71 )     -  

Core other expense

    21,224       15,360       14,141       36,584       27,981  

Pre-Tax Income: (a)

                                       

Pre-tax income

    2,675       5,005       8,533       7,680       15,541  

Sale of impaired credit

    -       -       (91 )     -       (91 )

(Gains) losses on former bank premises and equipment

    -       (126 )     -       (126 )     -  

(Gains) on sale of securities

    -       (25 )     (58 )     (25 )     (58 )

(Gains) on sale of banking center

    -       -       (593 )     -       (593 )

Acquisition-related expenses (2)

    6,573       1,212       436       7,785       386  

Stock option exercises - excess taxes

    -       71       -       71       -  

Core pre-tax income

    9,248       6,137       8,227       15,385       15,185  

Provision for Income Taxes: (1)

                                       

Provision for income taxes

    623       506       1,690       1,129       3,039  

Tax on sale of impaired credit

    -       -       (19 )     -       (19 )

Tax on (gains) on former bank premises and equipment

    -       (26 )     -       (26 )     -  

Tax on (gains) on sale of securities

    -       (5 )     (12 )     (5 )     (12 )

Tax on sale of banking center

    -       -       (125 )     -       (125 )

Tax on acquisition-related expenses (2)

    1,275       91       91       1,366       75  

Tax on stock option exercises

    -       601       -       601       -  

Core provision for income taxes

    1,898       1,167       1,625       3,065       2,958  

Net Income:

                                       

Net income

    2,052       4,499       6,843       6,551       12,502  

Sale of impaired credit, net of tax

    -       -       (72 )     -       (72 )

(Gains) losses on former bank premises and equipment , net of tax

    -       (100 )     -       (100 )     -  

(Gains) on sale of securities, net of tax

    -       (20 )     (46 )     (20 )     (46 )

(Gains) on sale of banking center, net of tax

    -       -       (468 )     -       (468 )

Acquisition-related expenses (2), net of tax

    5,298       1,121       345       6,419       311  

Stock option exercises, net of tax

    -       (530 )     -       (530 )     -  

Core net income

  $ 7,350     $ 4,970     $ 6,602     $ 12,320     $ 12,227  
                                         

Pre-tax, pre-provision earnings (a+b)

  $ 8,118     $ 6,372     $ 9,835     $ 14,490     $ 17,476  

Sale of impaired credit

    -       -       (91 )     -       (91 )

(Gains) losses on former bank premises and equipment

    -       (126 )     -       (126 )     -  

(Gains) on sale of securities

    -       (25 )     (58 )     (25 )     (58 )

(Gains) on sale of banking center

    -       -       (593 )     -       (593 )

Acquisition-related expenses (2)

    6,573       1,212       436       7,785       386  

Stock option exercises

    -       71       -       71       -  

Core pre-tax, pre-provision earnings

  $ 14,691     $ 7,504     $ 9,529     $ 22,195     $ 17,120  
                                         

Average Diluted Shares Outstanding

    18,121,958       13,367,276       13,740,937       15,776,376       13,704,180  
                                         

Diluted Earnings Per Share:

                                       

Diluted earnings per share

  $ 0.11     $ 0.34     $ 0.50     $ 0.42     $ 0.91  

Sale of impaired credit, net of tax

    -       -       (0.01 )     -       (0.01 )

(Gains) losses on former bank premises and equipment , net of tax

    -       (0.01 )     -       (0.01 )     -  

(Gains) on sale of securities, net of tax

    -       (0.00 )     (0.00 )     (0.00 )     (0.00 )

(Gains) on sale of banking center

    -       -       (0.04 )     -       (0.03 )

Acquisition-related expenses (2), net of tax

    0.30       0.08       0.03       0.40       0.02  

Stock option exercises

    -       (0.04 )     -       (0.03 )     -  

Core diluted earnings per share

  $ 0.41     $ 0.37     $ 0.48     $ 0.78     $ 0.89  
                                         

Pre-tax, pre-provision profit diluted earnings per share

  $ 0.45     $ 0.48     $ 0.72     $ 0.92     $ 1.28  

Sale of impaired credit

    -       -       (0.01 )     -       (0.01 )

(Gains) losses on former bank premises and equipment

    -       (0.01 )     -       (0.01 )     -  

(Gains) on sale of securities

    -       (0.00 )     (0.00 )     (0.00 )     (0.00 )

(Gains) on sale of banking center

            -       (0.05 )     -       (0.05 )

Acquisition-related expenses (2)

    0.36       0.09       0.03       0.50       0.03  

Stock option exercises

    -       0.00       -       0.00       -  

Core pre-tax, pre-provision diluted earnings per share

  $ 0.81     $ 0.56     $ 0.69     $ 1.41     $ 1.25  

 

(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21% for 2020 and 2019. These rates approximated the marginal tax rates.

(2) Includes merger and conversion-related expenses and salary and employee benefits.

 

 


 

b1BANK.com

 

17

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

 

   

Three Months Ended

   

Six Months Ended

 
   

June 30,

   

March 31,

   

June 30,

   

June 30,

   

June 30,

 

(Dollars in thousands, except per share data)

 

2020

   

2020

   

2019

   

2020

   

2019

 
                                         
                                         

Total Quarterly/Year-to-Date Average Assets

  $ 3,496,074     $ 2,244,584     $ 2,102,692     $ 2,870,329     $ 2,089,188  

Total Quarterly/Year-to-Date Average Equity

  $ 349,634     $ 285,338     $ 270,262     $ 317,486     $ 266,493  
                                         

Net Income:

                                       

Net income

  $ 2,052     $ 4,499     $ 6,843     $ 6,551     $ 12,502  

Sale of impaired credit, net of tax

    -       -       (72 )     -       (72 )

(Gains) losses on former bank premises and equipment , net of tax

    -       (100 )     -       (100 )     -  

(Gains) on sale of securities, net of tax

    -       (20 )     (46 )     (20 )     (46 )

(Gains) on sale of banking center, net of tax

    -       -       (468 )     -       (468 )

Acquisition-related expenses (2), net of tax

    5,298       1,121       345       6,419       311  

Stock option exercises, net of tax

    -       (530 )     -       (530 )     -  

Core net income

  $ 7,350     $ 4,970     $ 6,602     $ 12,320     $ 12,227  
                                         

Return on average assets

    0.23 %     0.80 %     1.30 %     0.46 %     1.20 %

Core return on average assets

    0.84 %     0.89 %     1.26 %     0.86 %     1.17 %

Return on equity

    2.35 %     6.31 %     10.13 %     4.13 %     9.38 %

Core return on average equity

    8.41 %     6.97 %     9.77 %     7.76 %     9.18 %
                                         

Interest Income:

                                       

Interest income

  $ 36,891     $ 26,016     $ 25,896     $ 62,907     $ 50,483  

Core interest income

    36,891       26,016       25,896       62,907       50,483  

Interest Expense:

                                       

Interest expense

    5,972       5,805       5,703       11,777       11,170  

Core interest expense

    5,972       5,805       5,703       11,777       11,170  

Other Income:

                                       

Other income

    4,996       2,804       4,219       7,800       6,530  

Sale of impaired credit

    -       -       (91 )     -       (91 )

(Gains) losses on former bank premises and equipment

    -       (126 )     -       (126 )     -  

(Gains) on sale of securities

    -       (25 )     (58 )     (25 )     (58 )

(Gains) on sale of banking center

    -       -       (593 )     -       (593 )

Core other income

    4,996       2,653       3,477       7,649       5,788  

Other Expense:

                                       

Other expense

    27,797       16,643       14,577       44,440       28,367  

Acquisition-related expenses

    (6,573 )     (1,212 )     (436 )     (7,785 )     (386 )

Stock option exercises - excess taxes

    -       (71 )     -       (71 )     -  

Core other expense

  $ 21,224     $ 15,360     $ 14,141     $ 36,584     $ 27,981  
                                         

Efficiency Ratio:

                                       

Other expense (a)

  $ 27,797     $ 16,643     $ 14,577     $ 44,440     $ 28,367  

Core other expense (c)

  $ 21,224     $ 15,360     $ 14,141     $ 36,584     $ 27,981  

Net interest and other income (1) (b)

  $ 35,915     $ 22,990     $ 24,354     $ 58,905     $ 45,785  

Core net interest and other income (1) (d)

  $ 35,915     $ 22,864     $ 23,670     $ 58,779     $ 45,101  

Efficiency ratio (a/b)

    77.40 %     72.39 %     59.85 %     75.44 %     61.96 %

Core efficiency ratio (c/d)

    59.10 %     67.18 %     59.74 %     62.24 %     62.04 %
                                         

Total Average Interest-Earnings Assets

  $ 3,176,156     $ 2,055,603     $ 1,929,035     $ 2,615,879     $ 1,914,386  
                                         

Net Interest Income:

                                       

Net interest income

  $ 30,919     $ 20,211     $ 20,193       51,130     $ 39,313  

Loan discount accretion

    (1,465 )     (290 )     (826 )     (1,755 )     (1,258 )

Net interest income excluding loan discount accretion

  $ 29,454     $ 19,921     $ 19,367     $ 49,375     $ 38,055  
                                         

Net interest margin (2)

    3.89 %     3.93 %     4.19 %     3.91 %     4.11 %

Net interest margin excluding loan discount accretion (2)

    3.71 %     3.88 %     4.02 %     3.78 %     3.98 %

Net interest spread

    3.59 %     3.55 %     3.75 %     3.57 %     3.69 %

Net interest spread excluding loan discount accretion

    3.41 %     3.49 %     3.58 %     3.43 %     3.56 %

 

(1) Excludes gains/losses on sales of securities.

(2) Calculated utilizing a 30/360 day count convention.

 

 


 

b1BANK.com

 

18

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

 

   

June 30,

   

March 31,

   

June 30,

 

(Dollars in thousands, except per share data)

 

2020

   

2020

   

2019

 
                         

Total Shareholders' (Common) Equity:

                       

Total shareholders' equity

  $ 386,336     $ 282,030     $ 277,469  

Goodwill

    (53,649 )     (48,495 )     (48,503 )

Core deposit intangible

    (10,389 )     (6,471 )     (7,139 )

Total tangible common equity

  $ 322,298     $ 227,064     $ 221,827  
                         
                         

Total Assets:

                       

Total assets

  $ 3,961,138     $ 2,287,662     $ 2,153,608  

Goodwill

    (53,649 )     (48,495 )     (48,503 )

Core deposit intangible

    (10,389 )     (6,471 )     (7,139 )

Total tangible assets

  $ 3,897,100     $ 2,232,696     $ 2,097,966  
                         

Common shares outstanding

    20,667,237       13,067,987       13,361,482  
                         

Book value per common share

  $ 18.69     $ 21.58     $ 20.77  

Tangible book value per common share

  $ 15.59     $ 17.38     $ 16.60  

Common equity to total assets

    9.75 %     12.33 %     12.88 %

Tangible common equity to tangible assets

    8.27 %     10.17 %     10.57 %

 

 


 

b1BANK.com

 

 

19
Image Exhibit

Exhibit 99.2