BATON ROUGE, La., Jan. 29, 2019 /PRNewswire/ — Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of Business First Bank, Baton Rouge, Louisiana, today announced its unaudited 2018 full-year net income of $14.1 million, or $1.22 per diluted share, increases of $9.2 million and $0.61, respectively, from the prior year. Core net income, which excludes noncore income and expenses, was $16.8 million, or $1.45 per diluted share, which reflects increases of $13.6 million and $1.06, respectively, from the prior year. 

Business First Bank logo (PRNewsfoto/Business First Bank)

Net income for the quarter ended December 31, 2018, was $3.4 million, or $0.28 per diluted share, which reflects increases of $4.3 million and $0.36, respectively, from the quarter ended December 31, 2017. Core net income was $4.7 million, or $0.38 per diluted share, which reflects increases of $5.4 million and $0.45, respectively, from the quarter ended December 31, 2017. 

«Fourth quarter results were a strong way to finish a very successful year,» said Jude Melville, president and CEO. «In each quarter over the course of the year, our team increased core earnings, increased net interest margin and demonstrated an improved core efficiency ratio. In the fourth quarter, we did so while integrating new teammates with the closing of our Richland State Bank partnership.»

«2018 was a transformative year for our company, and we look forward to building on the momentum we’ve generated to maximize value on behalf of our clients and our shareholders over the course of 2019.»

On January 24, 2019, Business First’s board of directors declared a quarterly dividend based upon financial performance for the quarter in the amount of $0.08 per share to the common shareholders of record as of February 15, 2019, consistent with the prior quarter. The dividend will be paid on February 28, 2019, or as soon thereafter as practicable.

Quarterly Highlights

  • Successful Acquisition of Richland State Bancorp, Inc. The acquisition was completed on December 1, 2018, and included total assets of $313.5 million, loans of $194.3 million and total deposits of $289.6 million.
  • Solid Loan Growth. Total loans held for investment at December 31, 2018, were $1.5 billion, an increase of $230.5 million compared to September 30, 2018, and an increase of $553.2 compared to December 31, 2017. Net organic loan growth was $39.5 million, or 10.6% annualized, for the quarter ended December 31, 2018. Annual net organic loan growth for full-year 2018 was $170.0 million, or 12.5%.
  • Net Interest Margin Expansion. Net interest margin and net interest spread were 4.07% and 3.70%, respectively, compared to 4.05% and 3.70% for the quarter ended September 30, 2018, and to 3.87% and 3.57%, respectively, for the quarter ended December 31, 2017.
  • Increased Provision for Loan Losses. The provision for loan losses was $939,000 for the quarter ended December 31, 2018, an increase of $436,000, or 86.7%, compared to the $503,000 recorded for the quarter ended September 30, 2018. The net increase, $0.02 per diluted share after-tax, is directly attributable to a single, previously identified (fourth quarter of 2017), impaired loan for which the facts and circumstances have continued to evolve over time.

Financial Condition

December 31, 2018, Compared to September 30, 2018

Balance Sheet

As of December 31, 2018, Business First had total assets of $2.1 billion, total loans of $1.5 billion, total deposits of $1.7 billion and total shareholders’ equity of $260.1 million, compared to $1.7 billion, $1.3 billion, $1.4 billion and $213.0 million, respectively, as of September 30, 2018.

Book value per common share was $19.68 at December 31, 2018, compared to $18.46 at September 30, 2018. Tangible book value per common share was $15.34 at December 31, 2018, compared to $15.30 at September 30, 2018.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment remained constant from 0.89% as of September 30, 2018, to 0.89% as of December 31, 2018. Nonperforming assets as a percentage of total assets decreased from 0.80% as of September 30, 2018, to 0.74% as of December 31, 2018.

December 31, 2018, Compared to December 31, 2017

Balance Sheet

As of December 31, 2018, Business First had total assets of $2.1 billion, total loans of $1.5 billion, total deposits of $1.7 billion and total shareholders’ equity of $260.1 million, compared to $1.3 billion, $975.3 million, $1.1 billion and $180.0 million, respectively, as of December 31, 2017.

Book value per common share was $19.68 at December 31, 2018, compared to $17.58 at December 31, 2017. Tangible book value per common share was $15.34 at December 31, 2018, compared to $16.72 at December 31, 2017. Tangible book value decreased from December 31, 2017, due to the acquisitions of Richland State Bancorp, Inc., and Minden Bancorp, Inc., in 2018.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 1.30% as of December 31, 2017, to 0.89% as of December 31, 2018. Nonperforming assets as a percentage of total assets decreased from 0.98% as of December 31, 2017, to 0.74% as of December 31, 2018. The decreases were mainly attributed to improved credit quality in relation to the size of the loan portfolio and total assets of Business First.

Results of Operations

Fourth Quarter 2018 Compared to Third Quarter 2018

Net Income and Diluted Earnings Per Share

For the quarter ended December 31, 2018, net income was $3.4 million, or $0.28 per diluted share, compared to net income of $3.9 million, or $0.33 per diluted share, for the quarter ended September 30, 2018. The reduction in net income was generally attributed to acquisition-related costs and the increase in the provision for loan losses.

Core net income, which excludes noncore income and expenses, for the quarter ended December 31, 2018, was $4.7 million, or $0.38 per diluted share, compared to core net income of $4.4 million, or $0.37 per diluted share, for the quarter ended September 30, 2018. Notable noncore events impacting earnings included the incurrence of $2.1 million in noninterest expenses related to acquisition-related activities and $588,000 related to gains associated with banking center, investment and impaired loan sales for the quarter ended December 31, 2018. The quarter ended September 30, 2018, was impacted by acquisition-related expenses of $509,000 and $139,000 associated with a loss related to the closure of a banking center.

Return on Assets and Equity

Return on average assets and equity, each on an annualized basis, decreased to 0.75% and 6.03%, respectively, for the quarter ended December 31, 2018, compared to 0.94% and 7.37%, respectively, for the quarter ended September 30, 2018. The decrease was largely driven by acquisition-related costs.

As adjusted, core return on average assets and core return on average equity, each on an annualized basis, were 1.03% and 8.23%, respectively, for the quarter ended December 30, 2018, compared to 1.06% and 8.37%, respectively, for the quarter ended September 30, 2018. Both metrics were negatively impacted by the increase in the provision for loan losses, which impacted core return on average assets and average equity (after tax) by .07% and .60%, respectively, for the quarter.

Interest Income

For the quarter ended December 31, 2018, net interest income totaled $17.1 million and net interest margin and net interest spread were 4.07% and 3.70%, respectively, compared to $15.6 million, 4.05% and 3.70% for the quarter ended September 30, 2018.

Net interest margin and net interest spread (excluding loan discount accretion of $283,000) were 4.01% and 3.63%, respectively, for the quarter ended December 31, 2018, compared to 3.98% and 3.63% (excluding loan discount accretion of $268,000) for the quarter ended September 30, 2018.

The average yield on the loan portfolio was 5.72% for the quarter ended December 31, 2018, compared to 5.65% for the quarter ended September 30, 2018. The average yield on total interest-earning assets was 5.13% for the quarter ended December 31, 2018, compared to 5.01% for the quarter ended September 30, 2018.

Interest Expense

For the quarter ended December 31, 2018, overall cost of funds (which includes noninterest-bearing deposits) increased by 10 basis points compared to the quarter ended September 30, 2018. 

Provision for Loan Losses

During the quarter ended December 31, 2018, Business First recorded a provision for loan losses of $939,000 compared to $503,000 for the quarter ended September 30, 2018. The net increase in the provision was driven by a single, previously identified, impaired loan.

Fourth Quarter 2018 Compared to Fourth Quarter 2017

Net Income and Diluted Earnings Per Share

For the quarter ended December 31, 2018, net income was $3.4 million, or $0.28 per diluted share, compared to net income of $(862,000), or $(0.08) per diluted share, for the quarter ended December 31, 2017. The quarter ended December 31, 2017, was negatively impacted by a large provision for loan losses and a write-down of deferred tax assets due to the federal tax reform.

Core net income, which excludes noncore income and expenses, for the quarter ended December 31, 2018, was $4.7 million, or $0.38 per diluted share, compared to core net income of $(733,000), or $(0.07) per diluted share, for the quarter ended December 31, 2017. Notable noncore events impacting earnings included the incurrence of $2.1 million in noninterest expenses related to acquisition-related activities and $588,000 related to gains associated with banking center, investment and impaired loan sales for the quarter ended December 31, 2018. The quarter ended December 31, 2017, was impacted by acquisition-related expenses of $129,000.

Return on Assets and Equity

Return on average assets and return on average equity, each on an annualized basis, increased to 0.75% and 6.03%, respectively, for the quarter ended December 31, 2018, from (0.26)% and (1.89)%, respectively, for the quarter ended December 31, 2017.  

As adjusted, core return on average assets and core return on average equity, each on an annualized basis, were 1.03% and 8.23%, respectively, for the quarter ended December 30, 2018, compared to (0.22)% and (1.60)%, respectively, for the quarter ended December 30, 2017.  

Interest Income

For the quarter ended December 31, 2018, net interest income totaled $17.1 million and net interest margin and net interest spread were 4.07% and 3.70%, respectively, compared to $11.6 million, 3.87% and 3.57% for the quarter ended December 31, 2017.

Net interest margin and net interest spread (excluding loan discount accretion of $283,000) were 4.01% and 3.63%, respectively, for the quarter ended December 31, 2018, compared to 3.69% and 3.39% (excluding loan discount accretion of $545,000) for the quarter ended December 31, 2017.

The average yield on the loan portfolio was 5.72% for the quarter ended December 31, 2018, compared to 5.22% for the quarter ended December 31, 2017. The average yield on total interest-earning assets was 5.13% for the quarter ended December 31, 2018, compared to 4.57% for the quarter ended December 31, 2017.

Interest Expense

For the quarter ended December 31, 2018, overall cost of funds (which includes noninterest-bearing deposits) increased by 37 basis points compared to the quarter ended December 31, 2017. 

Provision for Loan Losses

During the quarter ended December 31, 2018, Business First recorded a provision for loan losses of $939,000 compared to $2.3 million for the quarter ended December 31, 2017. Both quarters were impacted by large provisions for loan losses.

Banking Centers

As of January 29, 2019, Business First operates out of 25 full-service banking centers in markets across Louisiana and in Dallas, Texas.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures (e.g., referenced as «core» or «tangible») intended to supplement, not substitute for, comparable GAAP measures. These measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, impaired loan sales and acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., through its banking subsidiary Business First Bank, operates in 25 banking centers in markets across Louisiana and in Dallas, Texas. Business First Bank provides commercial and personal banking, treasury management and wealth solutions services to small to midsize businesses and their owners and employees. Visit www.b1BANK.com for more information. Business First’s common stock is traded on the NASDAQ Global Select Market under the symbol «BFST.»

Special Note Regarding Forward-Looking Statements

Certain statements contained in this release may not be based on historical facts and are «forward-looking statements» within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as «anticipate,» «believe,» «estimate,» «expect,» «may,» «might,» «will,» «would,» «could» or «intend.» We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.

Additional Information

For additional information on Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission, or SEC, free of charge by using the SEC’s EDGAR service on the SEC’s website at www.sec.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 100, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.

No Offer or Solicitation

This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of the Company. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.

Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

(Dollars in thousands)

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

December 31,

2017

Balance Sheet Ratios

Gross Loans (HFI) to Deposits

88.15%

95.86%

92.82%

91.11%

92.40%

Shareholders’ Equity to Assets Ratio

12.41%

12.69%

12.77%

11.34%

13.62%

Tangible Common Equity to Tangible Assets (Non-GAAP)

9.95%

10.75%

10.78%

9.21%

13.04%

Loans Receivable Held for Investment

Commercial

$       363,640

$        317,889

$    298,967

$    290,427

$       254,427

Real Estate:

Construction and Land

211,054

196,404

204,099

191,220

143,535

Farmland

45,989

26,882

15,173

14,498

10,480

1-4 Family Residential

270,583

234,690

224,986

218,623

157,505

Multi-family Residential

39,273

22,109

22,511

25,884

20,717

Nonfarm Nonresidential

518,660

432,306

399,166

390,478

337,699

Total Real Estate

1,085,559

912,391

865,935

840,703

669,936

Consumer

79,270

67,679

69,129

60,320

50,921

Total Loans

$    1,528,469

$     1,297,959

$ 1,234,031

$ 1,191,450

$       975,284

Allowance for Loan Losses

Balance, Beginning of Period

$         10,273

$            9,756

$        9,647

$        8,765

$           9,241

Charge-offs – Quarterly

(19)

(33)

(397)

(23)

(2,845)

Recoveries – Quarterly

27

47

32

431

39

Provision for Loan Losses – Quarterly

939

503

474

474

2,330

Balance, End of Period

$         11,220

$          10,273

$        9,756

$        9,647

$           8,765

Allowance for Loan Losses to Total Loans (HFI)

0.73%

0.79%

0.79%

0.81%

0.90%

Net Charge-offs (Recoveries) to Average Total Loans

0.00%

0.00%

0.03%

-0.03%

0.29%

Nonperforming Assets

Nonperforming Loans

Nonaccrual Loans

$         11,691

$          11,341

$      13,884

$      15,030

$         12,535

Loans Past Due 90 Days or More

1,876

256

130

114

132

Total Nonperforming Loans

13,567

11,597

14,014

15,144

12,667

Other Nonperforming Assets

Other Real Estate Owned

1,909

1,824

1,273

1,282

227

Other Nonperforming Assets

11

11

36

13

Total Other Nonperforming Assets

1,920

1,835

1,309

1,295

227

Total Nonperforming Assets

$         15,487

$          13,432

$      15,323

$      16,439

$         12,894

Nonperforming Loans to Total Loans

0.89%

0.89%

1.14%

1.27%

1.30%

Nonperforming Assets to Total Assets

0.74%

0.80%

0.93%

1.04%

0.98%

 

Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

Quarter Ended

Year Ended

(Dollars in thousands, except per share data)

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

December 31,

2017

December 31,

2018

December 31,

2017

Per Share Data

Basic Earnings per Common Share

$             0.28

$              0.34

$          0.34

$          0.30

$           (0.09)

$             1.27

$             0.63

Diluted Earnings per Common Share

0.28

0.33

0.33

0.29

(0.08)

1.22

0.61

Dividends per Common Share

0.08

0.08

0.08

0.06

0.06

0.30

0.23

Book Value per Common Share

19.68

18.46

18.26

17.52

17.58

19.68

17.58

Tangible Book Value per Common Share (Non-GAAP)

15.34

15.30

15.07

13.90

16.72

15.34

16.72

Average Common Shares Outstanding

12,099,659

11,533,374

10,607,369

10,232,933

9,828,645

11,124,585

7,658,137

Average Diluted Shares Outstanding

12,521,017

11,993,734

11,064,638

10,578,755

10,174,467

11,545,943

8,003,822

End of Period Common Shares Outstanding

13,213,280

11,533,721

11,533,171

10,271,931

10,232,495

13,213,280

10,232,495

Annualized Performance Ratios

Return on Average Assets

0.75%

0.94%

0.90%

0.77%

-0.26%

0.84%

0.40%

Return on Average Equity

6.03%

7.37%

7.75%

6.94%

-1.89%

7.04%

3.68%

Net Interest Margin

4.07%

4.05%

3.98%

3.97%

3.87%

4.02%

4.01%

Net Interest Spread

3.70%

3.70%

3.70%

3.75%

3.57%

3.71%

3.77%

Efficiency Ratio (1)

73.51%

69.08%

70.81%

73.57%

74.32%

71.78%

73.66%

Other Operating Expenses

Salaries and Employee Benefits

$           7,444

$            7,190

$        6,524

$        6,704

$           5,542

$         27,862

$         21,482

Occupancy and Bank Premises

877

914

861

857

810

3,509

2,674

Depreciation and Amortization

484

417

407

422

338

1,730

1,457

Data Processing

397

395

355

410

392

1,557

1,537

FDIC Assessment Fees

276

221

331

393

235

1,221

803

Legal and Other Professional Fees

456

328

509

402

217

1,695

1,159

Advertising and Promotions

422

290

298

229

259

1,239

1,193

Utilities and Communications

238

294

269

272

248

1,073

981

Ad Valorem Shares Tax

170

321

322

322

309

1,135

804

Directors’ Fees

92

93

92

159

83

436

400

Other Real Estate Owned Expenses and Write-Downs

7

2

7

9

50

Merger- and Conversion-Related Expenses

1,959

138

415

512

3,024

129

Other

1,594

1,269

1,635

1,260

1,268

5,758

4,133

Total Other Expenses

$         14,409

$          11,870

$      12,025

$      11,944

$           9,708

$         50,248

$         36,802

(1) – Noninterest expense divided by noninterest income plus net interest income less gain/loss on sales of securities.

 

Business First Bancshares, Inc.

Consolidated Balance Sheets

(Unaudited)

(Dollars in thousands)

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

December 31,

2017

Assets

Cash and Due From Banks

$         96,072

$          45,941

$      45,861

$      37,627

$       107,591

Federal Funds Sold

41,836

5,934

32,522

11,730

8,820

Securities Available for Sale, at Fair Values

309,516

243,585

252,139

262,988

179,148

Mortgage Loans Held for Sale

58

280

147

201

Loans and Lease Receivable

1,528,469

1,297,959

1,234,031

1,191,450

975,284

Allowance for Loan Losses

(11,220)

(10,273)

(9,756)

(9,647)

(8,765)

Net Loans and Lease Receivable

1,517,249

1,287,686

1,224,275

1,181,803

966,519

Premises and Equipment, Net

15,114

10,022

10,537

10,424

8,780

Accrued Interest Receivable

8,223

5,188

5,268

4,700

4,110

Other Equity Securities

9,282

10,339

10,064

9,381

8,627

Other Real Estate Owned

1,909

1,824

1,273

1,282

227

Cash Value of Life Insurance

31,882

24,442

24,275

24,109

23,200

Deferred Taxes, Net

3,848

4,359

3,888

4,155

3,005

Goodwill

49,488

32,427

32,552

32,816

6,824

Core Deposit Intangible

7,885

4,103

4,234

4,366

2,003

Other Assets

2,534

2,065

2,319

2,185

2,201

Total Assets

$    2,094,896

$     1,678,195

$ 1,649,207

$ 1,587,713

$    1,321,256

Liabilities

Deposits:

Noninterest-Bearing

$       382,354

$        311,170

$    305,314

$    297,845

$       264,646

Interest-Bearing

1,351,580

1,042,901

1,024,179

1,009,893

790,887

Total Deposits

1,733,934

1,354,071

1,329,493

1,307,738

1,055,533

Securities Sold Under Agreements to Repurchase

12,229

14,310

13,604

15,434

1,939

Short-Term Borrowings

862

862

862

862

Long-Term Borrowings

2,400

2,700

2,700

2,700

Subordinated Debt

25,000

Federal Home Loan Bank Borrowings

55,000

85,000

85,000

75,000

75,000

Accrued Interest Payable

1,374

1,336

1,197

1,104

890

Other Liabilities

7,301

7,255

5,722

4,881

4,397

Total Liabilities

1,834,838

1,465,234

1,438,578

1,407,719

1,141,321

Shareholders’ Equity

Common Stock

13,213

11,534

11,533

10,272

10,232

Additional Paid-In Capital

212,332

171,345

171,193

144,441

144,172

Retained Earnings

37,982

35,460

32,483

29,666

27,175

Accumulated Other Comprehensive Loss

(3,469)

(5,378)

(4,580)

(4,385)

(1,644)

Total Shareholders’ Equity

260,058

212,961

210,629

179,994

179,935

Total Liabilities and Shareholders’ Equity

$    2,094,896

$     1,678,195

$ 1,649,207

$ 1,587,713

$    1,321,256

 

Business First Bancshares, Inc.

Consolidated Statements of Income

(Unaudited)

Quarter Ended

Year Ended

(Dollars in thousands)

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

December 31,

2017

December 31,

2018

December 31,

2017

Interest Income:

Interest and Fees on Loans

$         19,778

$          17,777

$ 16,549

$   15,676

$         12,544

$         69,780

$         47,516

Interest and Dividends on Securities

1,611

1,386

1,414

1,423

957

5,834

3,829

Interest on Federal Funds Sold and Due From Banks

164

162

128

127

171

581

256

Total Interest Income

21,553

19,325

18,091

17,226

13,672

76,195

51,601

Interest Expense:

Interest on Deposits

3,853

3,127

2,555

2,298

1,814

11,833

6,328

Interest on Borrowings

583

562

560

428

269

2,133

901

Total Interest Expense

4,436

3,689

3,115

2,726

2,083

13,966

7,229

Net Interest Income

17,117

15,636

14,976

14,500

11,589

62,229

44,372

Provision for Loan Losses

939

503

474

474

2,330

2,390

4,237

Net Interest Income After Provision for Loan Losses

16,178

15,133

14,502

14,026

9,259

59,839

40,135

Other Income:

Service Charges on Deposit Accounts

869

695

636

610

530

2,810

2,109

Gain (Loss) on Sales of Securities

7

7

31

Other Income

1,615

852

1,370

1,125

943

4,962

3,478

Total Other Income

2,491

1,547

2,006

1,735

1,473

7,779

5,618

Other Expenses:

Salaries and Employee Benefits

7,444

7,190

6,524

6,704

5,542

27,862

21,482

Occupancy and Equipment Expense

1,523

1,522

1,402

1,418

1,322

5,865

4,820

Other Expenses

5,442

3,158

4,099

3,822

2,844

16,521

10,500

Total Other Expenses

14,409

11,870

12,025

11,944

9,708

50,248

36,802

Income Before Income Taxes

4,260

4,810

4,483

3,817

1,024

17,370

8,951

Provision for Income Taxes

815

910

845

709

1,886

3,279

4,103

Net Income

$           3,445

$            3,900

$   3,638

$     3,108

$            (862)

$         14,091

$           4,848

 

Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

Quarter Ended

December 31, 2018

September 30, 2018

December 31, 2017

(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

$   1,383,526

$               19,778

5.72%

$   1,258,060

$               17,777

5.65%

$      961,627

$               12,544

5.22%

Securities Available for Sale

270,511

1,611

2.38%

253,902

1,386

2.18%

187,565

957

2.04%

Interest-Bearing Deposit in Other Banks

27,203

164

2.41%

31,858

162

2.03%

48,223

171

1.42%

Total Interest-Earning Assets

1,681,240

21,553

5.13%

1,543,820

19,325

5.01%

1,197,415

13,672

4.57%

Allowance for Loan Losses

(10,451)

(9,945)

(9,455)

Noninterest-Earning Assets

156,809

132,242

115,215

Total Assets

$   1,827,598

$               21,553

$   1,666,117

$               19,325

$   1,303,175

$               13,672

Liabilities and Shareholders’ Equity

Interest-Bearing Liabilities

Interest-Bearing Deposits

$   1,138,786

$                 3,853

1.35%

$   1,028,412

$                 3,127

1.22%

$      761,671

$                 1,814

0.95%

Advances from Federal Home Loan Bank («FHLB»)

82,419

462

2.24%

85,000

506

2.38%

66,249

229

1.38%

Other Borrowings

19,799

121

2.44%

17,484

56

1.28%

6,323

40

2.53%

Total Interest-Bearing Liabilities

1,241,004

4,436

1.43%

1,130,896

3,689

1.30%

834,243

2,083

1.00%

Noninterest-Bearing Liabilities

Noninterest-Bearing Deposits

349,915

315,111

279,511

Other Liabilities

8,183

8,479

6,516

Total Noninterest-Bearing Liabilities

358,098

323,590

286,027

Shareholders’ Equity

228,496

211,631

182,905

Total Liabilities and Shareholders’ Equity

$   1,827,598

$   1,666,117

$   1,303,175

Net Interest Spread

3.70%

3.70%

3.57%

Net Interest Income

$               17,117

$               15,636

$               11,589

Net Interest Margin

4.07%

4.05%

3.87%

 

Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

For the Year Ended December 31,

2018

2017

(Dollars in thousands)

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

$   1,258,178

$               69,780

5.55%

$      890,683

$               47,516

5.33%

Securities Available for Sale

258,153

5,834

2.26%

195,211

3,829

1.96%

Interest-Bearing Deposit in Other Banks

31,475

581

1.85%

20,229

256

1.27%

Total Interest-Earning Assets

1,547,806

76,195

4.92%

1,106,123

51,601

4.67%

Allowance for Loan Losses

(9,749)

(8,773)

Noninterest-Earning Assets

144,120

102,438

Total Assets

$   1,682,177

$               76,195

$   1,199,788

$               51,601

Liabilities and Shareholders’ Equity

Interest-Bearing Liabilities

Interest-Bearing Deposits

$   1,051,932

$               11,833

1.12%

$      733,264

$                 6,328

0.86%

Advances from Federal Home Loan Bank («FHLB»)

84,187

1,849

2.20%

65,513

737

1.12%

Other Borrowings

19,849

284

1.43%

6,609

164

2.48%

Total Interest-Bearing Liabilities

1,155,968

13,966

1.21%

805,386

7,229

0.90%

Noninterest-Bearing Liabilities

Noninterest-Bearing Deposits

319,623

254,765

Other Liabilities

6,393

7,891

Total Noninterest-Bearing Liabilities

326,016

262,656

Shareholders’ Equity

200,193

131,746

Total Liabilities and Shareholders’ Equity

$   1,682,177

$   1,199,788

Net Interest Spread

3.71%

3.77%

Net Interest Income

$               62,229

$               44,372

Net Interest Margin

4.02%

4.01%

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

(Dollars in thousands, except per share data)

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

December 31,

2017

Tangible Common Equity

Total Shareholders’ Equity

$       260,058

$        212,961

$    210,629

$    179,994

$       179,935

Adjustments:

Goodwill

(49,488)

(32,427)

(32,552)

(32,816)

(6,824)

Core Deposit and Other Intangibles

(7,885)

(4,103)

(4,234)

(4,366)

(2,003)

Total Tangible Common Equity

$       202,685

$        176,431

$    173,843

$    142,812

$       171,108

Tangible Assets

Total Assets

$    2,094,896

$     1,678,195

$ 1,649,207

$ 1,587,713

$    1,321,256

Adjustments:

Goodwill

(49,488)

(32,427)

(32,552)

(32,816)

(6,824)

Core Deposit and Other Intangibles

(7,885)

(4,103)

(4,234)

(4,366)

(2,003)

Total Tangible Assets

$    2,037,523

$     1,641,665

$ 1,612,421

$ 1,550,531

$    1,312,429

Common Shares Outstanding

13,213,280

11,533,721

11,533,171

10,271,931

10,232,495

Book Value per Common Share

$           19.68

$            18.46

$        18.26

$        17.52

$           17.58

Tangible Book Value per Common Share

$           15.34

$            15.30

$        15.07

$        13.90

$           16.72

Common Equity to Total Assets

12.41%

12.69%

12.77%

11.34%

13.62%

Tangible Common Equity to Tangible Assets

9.95%

10.75%

10.78%

9.21%

13.04%

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

Quarter Ended

Year Ended

(Dollars in thousands, except per share data)

December 31,

2018

September 30,

2018

June 30,

2018

March 31,

2018

December 31,

2017

December 31,

2018

December 31,

2017

Core Net Income

Net Income

$           3,445

$            3,900

$        3,638

$        3,108

$            (862)

$         14,091

$           4,848

Adjustments: (1)

Income

Sale of Participation Interest in Impaired Credit 

(87)

(87)

(2,750)

   Tax Impact

18

18

935

(Gains) Losses on Former Bank Premises and Equipment 

(494)

139

(355)

   Tax Impact

104

(29)

75

(Gains) Losses on Sale of Securities

(7)

(7)

(31)

   Tax Impact

1

1

11

Expense

Employee Share Awards – NASDAQ Listing 

118

118

   Tax Impact

(25)

(25)

Acquisition-Related Expenses 

2,132

509

415

512

129

3,568

129

   Tax Impact

(410)

(90)

(68)

(55)

(623)

Core Net Income

$           4,702

$            4,429

$        4,078

$        3,565

$            (733)

$         16,774

$           3,142

Average Common Shares Outstanding

12,099,659

11,533,374

10,607,369

10,232,933

9,828,645

11,124,585

7,658,137

Average Diluted Shares Outstanding

12,521,017

11,993,734

11,064,638

10,578,755

10,174,467

11,545,943

8,003,822

Core Earnings per Share – Basic

$             0.39

$              0.38

$          0.38

$          0.35

$           (0.07)

$             1.51

$             0.41

Core Earnings per Share – Diluted

$             0.38

$              0.37

$          0.37

$          0.34

$           (0.07)

$             1.45

$             0.39

Total Quarterly/Year-to-Date Average Assets

$    1,827,598

$     1,666,117

$ 1,624,195

$ 1,614,750

$    1,303,175

$    1,682,177

$    1,199,788

Total Quarterly/Year-to-Date Average Equity

$       228,496

$        211,631

$    187,764

$    179,098

$       182,905

$       200,193

$       131,746

Core Return on Average Assets

1.03%

1.06%

1.00%

0.88%

-0.22%

1.00%

0.26%

Core Return on Average Equity

8.23%

8.37%

8.69%

7.96%

-1.60%

8.38%

2.38%

Core Efficiency Ratio

Noninterest Expense

14,409

11,870

12,025

11,944

9,708

50,248

36,802

      Core Adjustments

(2,132)

(509)

(533)

(512)

(129)

(3,686)

(129)

   Net Interest and Noninterest Income (2)

19,601

17,183

16,982

16,235

13,062

70,001

49,959

      Core Adjustments

(581)

139

(442)

(2,750)

        Core Efficiency Ratio 

64.55%

65.59%

67.67%

70.42%

73.33%

66.94%

77.68%

Net Interest Income 

   Net Interest Income

$         17,117

$          15,636

$      14,976

$      14,500

$         11,589

$         62,229

$         44,372

     Adjustments:

        Discount Accretion

(283)

(268)

(342)

(385)

(545)

(1,278)

(4,135)

     Net Interest Income Excluding Loan Discount Accretion

$         16,834

$          15,368

$      14,634

$      14,115

$         11,044

$         60,951

$         40,237

   Total Average Interest-Earnings Assets

$    1,681,240

$     1,543,820

$ 1,505,289

$ 1,460,878

$    1,197,415

$    1,547,806

$    1,106,123

   Net Interest Margin Excluding Loan Discount Accretion

4.01%

3.98%

3.89%

3.86%

3.69%

3.94%

3.64%

   Net Interest Spread Excluding Loan Discount Accretion

3.63%

3.63%

3.61%

3.64%

3.39%

3.63%

3.39%

(1) Tax rates, exclusive of certain nondeductible acquisition-related expenses, utilized were 21% and 34%, respectively, for 2018 and 2017. These rates approximated the marginal tax rates.

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

 

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SOURCE Business First Bancshares, Inc.