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Business First Bancshares, Inc., Announces Financial Results for Q1 2024
Source: Nasdaq GlobeNewswire / 25 Apr 2024 15:09:08 America/Chicago
BATON ROUGE, La., April 25, 2024 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended March 31, 2024, including net income available to common shareholders of $12.2 million or $0.48 per diluted common share, decreases of $2.3 million and $0.09, respectively, compared to the linked quarter ended December 31, 2023. On a non-GAAP basis, core net income for the quarter ended March 31, 2024, which excludes certain income and expenses, was $12.8 million or $0.50 per diluted common share, decreases of $4.0 million and $0.16, respectively, from the linked quarter.
“We didn’t earn as much in the first quarter as I would have liked,” said Jude Melville, president and CEO, “but we did accomplish core foundational work that will lead to greater earnings power over the course of the year. We improved the funding side of our balance sheet, achieving stability in non-interest bearing accounts, increasing liquidity though the raising of core deposits, and paying down debt. We deepened the production side of our house by acquiring and integrating Waterstone, a Loan Service Provider that facilitates SBA production for banks around the country. And we grew loans at a healthy, normalized rate, further diversifying our credit exposure by product type and geography.”
On Tuesday, April 23, 2024, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the first quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on May 31, 2024, or as soon thereafter as practicable, to the shareholders of record as of May 15, 2024.
Quarterly Highlights
- Deposit Growth. Deposits increased $324.0 million or 6.17%, 24.82% annualized, for the quarter ended March 31, 2024, compared to the linked quarter. During the quarter ended March 31, 2024, noninterest-bearing deposits remained stable with a decrease of $4.0 million or 0.31% and interest-bearing deposits increased $328.0 million or 8.30%, compared to the linked quarter. Highlighting quarterly deposit growth were the Capital and Dallas markets with $55.8 million and $45.5 million, respectively. The Capital and Dallas markets opened 758 and 296 new accounts during the quarter. All new deposit generations for Business First had a weighted average rate of 4.32% as of March 31, 2024, a decrease of 0.29% from the linked quarter.
- Loan Growth. Loans held for investment increased $96.1 million or 1.92%, 7.74% annualized, from the linked quarter. Loan growth was mostly attributable to the $68.1 million increase in the commercial and industrial (C&I) portfolio. Business First continued the trend of reducing construction and development (C&D) portfolio exposure, with a decrease of $7.8 million from the linked quarter. The loan to deposit ratio decreased from 95.12% to 91.32% from the linked quarter.
- Waterstone LSP Acquisition. On January 31, 2024, Business First acquired Waterstone LSP, a company which provides other financial institutions nationwide comprehensive support and lending solutions under the Small Business Administration (SBA) 7(a) loan program.
Statement of Financial Condition
Loans
Loans held for investment increased $96.1 million or 1.92%, 7.74% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the C&I portfolio of $68.1 million and in the residential real estate portfolio of $34.6 million, offset by a $7.8 million reduction in the C&D portfolio.
The Dallas Fort Worth region produced 43.75% of net loan growth from the linked quarter based on unpaid principal balance, while the Southwest Louisiana region produced 28.55% and Capital region produced 14.47%. Based on unpaid principal balances, Texas-based loans represent approximately 37% of the overall loan portfolio as of March 31, 2024.
Credit Quality
The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets increased from 0.34% and 0.28%, respectively, at December 31, 2023, to 0.43% and 0.34% at March 31, 2024. The increase was attributable to an additional $4.6 million in nonaccrual loans, largely comprised of two lending relationships.
Securities
The securities portfolio decreased $6.7 million or 0.76%, from the linked quarter. The increase was driven by negative fair value adjustments of $6.4 million. The securities portfolio, based on estimated fair value, represented 13.04% of total assets as of March 31, 2024.
Deposits
Deposits increased $324.0 million or 6.17%, 24.82% annualized, for the quarter ended March 31, 2024, compared to the linked quarter. During the quarter ended March 31, 2024, noninterest-bearing deposits remained stable with a decrease of $4.0 million or 0.31% compared to the linked quarter and interest-bearing deposits increased $328.0 million or 8.30%, with certificate of deposit (CD) accounts declining $31.4 million or 2.41%.
The Capital and Dallas markets led the franchise with $55.8 million and $45.5 million in deposit growth. The Capital and Dallas markets opened 758 and 296 new accounts, respectively, during the quarter. All new deposit generations for Business First had a weighted average rate of 4.32% as of March 31, 2024, a decrease of 0.29% from the linked quarter.
Money market accounts increased $448.8 million or 33.41% from the linked quarter with a total portfolio weighted average of 4.10%, up slightly from 4.07% at December 31, 2023. However, lower rate demand deposit accounts of $32.0 million were also opened in connection with these money market accounts during the quarter ended March 31, 2024. This represented an 18.43% increase from the linked quarter and an increase of 28.23% from the last twelve months beginning April 1, 2023.
New money market account openings in March 2024 totaled $94.0 million with a weighted average rate of 4.29% as of March 31, 2024, compared to $84.0 million in new account openings during February 2024 with a weighted average rate of 5.03% as of February 29, 2024. Money market account balances increased from $1.34 billion as of December 31, 2023, to $1.79 billion as of March 31, 2024.
Borrowings
Borrowings decreased $204.7 million or 32.24%, from the linked quarter due to a full repayment of the $300.0 million Federal Reserve’s Bank Term Funding Program (BFTP) in March 2024. The repayment was funded through additional advances from the Federal Home Loan Bank (FHLB) of approximately $100.0 million, brokered CDs of $52.0 million and the remaining $148.0 million from cash.
Shareholders’ Equity
Accumulated other comprehensive income (AOCI) decreased $5.0 million during the first quarter due to negative after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $22.64 at March 31, 2024, compared to $22.58 at December 31, 2023. On a non-GAAP basis, tangible book value per common share decreased slightly from $18.62 at December 31, 2023, to $18.61 at March 31, 2024.
Results of Operations
Net Interest Income
For the quarter ended March 31, 2024, net interest income totaled $51.5 million, compared to $53.8 million from the linked quarter. Loan and interest-earning asset yields of 6.88% and 6.18%, respectively, increased one basis point each compared to 6.87% and 6.17% from the linked quarter. Both ratios were negatively impacted by $1.1 million less in loan discount accretion. Net interest margin and net interest spread were 3.32% and 2.36% compared to 3.50% and 2.53%, respectively, for the linked quarter. The overall cost of funds, which include noninterest-bearing deposits, increased from 2.79% to 3.00% or 21 basis points, from the linked quarter due to higher cost deposits and less average noninterest bearing deposits; however, ending noninterest bearing deposits only decreased $4.0 million from the linked quarter.
Non-GAAP net interest income (excluding loan discount accretion of $0.8 million) totaled $50.7 million for the quarter ended March 31, 2024, compared to $51.8 million (excluding loan discount accretion of $1.9 million) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.8 million) were 3.27% and 2.31%, respectively, for the quarter ended March 31, 2024, compared to 3.38% and 2.40% (excluding loan discount accretion of $1.9 million) for the linked quarter. Excluding loan discount accretion, loan yields increased nine basis points to 6.81% from 6.72%, and interest earnings asset yields increased eight basis points to 6.13% from 6.05%, compared to the linked quarter.
Provision for Credit Losses
During the quarter ended March 31, 2024, Business First recorded a provision for credit losses of $1.2 million, compared to $119,000 from the linked quarter. The current quarter’s reserve increased largely due to loan growth.
Other Income
For the quarter ended March 31, 2024, other income increased $2.9 million or 46.36%, compared to the linked quarter. The net increase was largely attributable to a $2.5 million loss on sale of securities due to Business First’s security repositioning initiative and a $1.0 million loss in equity investment income which both occurred during the linked quarter, partially offset by a $735,000 reduction in back-to-back customer swap fee income compared to the linked quarter.
Other Expenses
For the quarter ended March 31, 2024, other expenses increased by $2.8 million or 7.07%, compared to the linked quarter. The net increase was attributable to a $2.8 million increase in salaries and employee benefits compared to the linked quarter. The increase was largely associated with the Waterstone LSP acquisition, bonus-related expenses and cost of living adjustments.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.74% and 8.51% for the quarter ended March 31, 2024, compared to 0.88% and 10.54%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 0.77% and 8.92% for the quarter ended March 31, 2024, compared to 1.03% and 12.27%, respectively, for the linked quarter.
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on
Thursday, April 25, 2024, at 4:00 p.m. Central Time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 5574541, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/kqiwvpsh. On the day of the presentation, the corresponding slide presentation will be available to view on the b1BANK website at https://www.b1bank.com/shareholder-info.About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.7 billion in assets, $6.1 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP “core” measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Business First’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.
Special Note Regarding Forward-Looking Statements
Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.
Additional Information
For additional information about Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.
No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Misty Albrecht
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com
Business First Bancshares, Inc. Selected Financial Information (Unaudited) Three Months Ended March 31, December 31, March 31, (Dollars in thousands) 2024 2023 2023 Balance Sheet Ratios Loans (HFI) to Deposits 91.32 % 95.12 % 99.94 % Shareholders' Equity to Assets Ratio 9.69 % 9.78 % 9.50 % Loans Receivable Held for Investment (HFI) Commercial $ 1,426,957 $ 1,358,838 $ 1,239,333 Real Estate: Commercial 2,215,889 2,217,928 2,055,500 Construction 662,013 669,798 787,634 Residential 717,007 682,394 659,967 Total Real Estate 3,594,909 3,570,120 3,503,101 Consumer and Other 66,973 63,827 60,626 Total Loans (Held for Investment) $ 5,088,839 $ 4,992,785 $ 4,803,060 Allowance for Loan Losses Balance, Beginning of Period $ 40,414 $ 41,129 $ 38,178 CECL Adoption/Implementation - - 2,660 Charge-offs – Quarterly (533 ) (1,039 ) (2,278 ) Recoveries – Quarterly 141 152 103 Provision for Loan Losses – Quarterly 1,143 172 3,167 Balance, End of Period $ 41,165 $ 40,414 $ 41,830 Allowance for Loan Losses to Total Loans (HFI) 0.81 % 0.81 % 0.87 % Allowance for Credit Losses to Total Loans (HFI) (1) 0.88 % 0.88 % 0.95 % Net Charge-offs (Recoveries) to Average Quarterly Total Loans 0.01 % 0.02 % 0.05 % Remaining Loan Purchase Discount $ 11,411 $ 12,286 $ 19,234 Nonperforming Assets Nonperforming Loans: Nonaccrual Loans $ 20,778 $ 16,943 $ 16,952 Loans Past Due 90 Days or More 855 127 127 Total Nonperforming Loans 21,633 17,070 17,079 Other Nonperforming Assets: Other Real Estate Owned 1,339 1,685 1,365 Other Nonperforming Assets - - 57 Total Other Nonperforming Assets 1,339 1,685 1,422 Total Nonperforming Assets $ 22,972 $ 18,755 $ 18,501 Nonperforming Loans to Total Loans (HFI) 0.43 % 0.34 % 0.36 % Nonperforming Assets to Total Assets 0.34 % 0.28 % 0.29 % (1) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments.
Business First Bancshares, Inc. Selected Financial Information (Unaudited) Three Months Ended March 31, December 31, March 31, (Dollars in thousands, except per share data) 2024 2023 2023 Per Share Data Basic Earnings per Common Share $ 0.49 $ 0.58 $ 0.55 Diluted Earnings per Common Share 0.48 0.57 0.54 Dividends per Common Share 0.14 0.14 0.12 Book Value per Common Share 22.64 22.58 20.77 Average Common Shares Outstanding 25,127,187 25,116,688 24,979,955 Average Diluted Common Shares Outstanding 25,429,194 25,333,913 25,222,308 End of Period Common Shares Outstanding 25,485,383 25,351,809 25,319,520 Annualized Performance Ratios Return to Common Shareholders on Average Assets (1) 0.74 % 0.88 % 0.91 % Return to Common Shareholders on Average Common Equity (1) 8.51 % 10.54 % 10.73 % Net Interest Margin (1) 3.32 % 3.50 % 3.75 % Net Interest Spread (1) 2.36 % 2.53 % 2.96 % Efficiency Ratio (2) 69.80 % 63.36 % 63.27 % Total Quarterly/Year-to-Date Average Assets $ 6,667,527 $ 6,494,861 $ 6,123,063 Total Quarterly/Year-to-Date Average Common Equity 577,643 544,628 516,659 Other Expenses Salaries and Employee Benefits $ 25,416 $ 22,609 $ 23,176 Occupancy and Bank Premises 2,514 2,387 2,297 Depreciation and Amortization 1,676 1,647 1,710 Data Processing 2,579 2,490 1,485 FDIC Assessment Fees 828 841 933 Legal and Other Professional Fees 866 833 613 Advertising and Promotions 1,145 1,052 1,148 Utilities and Communications 674 700 721 Ad Valorem Shares Tax 900 265 965 Directors' Fees 282 262 269 Other Real Estate Owned Expenses and Write-Downs 37 504 130 Merger and Conversion-Related Expenses 340 63 103 Other 5,265 6,061 5,129 Total Other Expenses $ 42,522 $ 39,714 $ 38,679 Other Income Service Charges on Deposit Accounts $ 2,439 $ 2,470 $ 2,281 Loss on Sales of Securities (1 ) (2,503 ) (1 ) Debit Card and ATM Fee Income 1,776 1,793 1,570 Bank-Owned Life Insurance Income 579 572 524 Gain on Sales of Loans 139 546 611 Mortgage Origination Income 69 47 74 Fees and Brokerage Commission 1,937 1,710 1,813 Gain on Sales of Other Real Estate Owned 63 338 209 Loss on Disposal of Other Assets - (1 ) (5 ) Gain on Sale of Branch - 13 - Gain on Extinguishment of Debt - - - Swap Fee Income 229 964 6 Pass-Through Income (Loss) from Other Investments 294 (1,028 ) 173 Other 1,862 1,492 1,133 Total Other Income $ 9,386 $ 6,413 $ 8,388 (1) Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365/366 day count convention. (2) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities.
Business First Bancshares, Inc. Consolidated Balance Sheets (Unaudited) March 31, December 31, March 31, (Dollars in thousands) 2024 2023 2023 Assets Cash and Due From Banks $ 185,906 $ 226,110 $ 159,767 Federal Funds Sold 211,292 151,134 104,250 Securities Available for Sale, at Fair Values 872,903 879,571 903,945 Mortgage Loans Held for Sale 77 835 423 Loans and Lease Receivable 5,088,839 4,992,785 4,803,060 Allowance for Loan Losses (41,165 ) (40,414 ) (41,830 ) Net Loans and Lease Receivable 5,047,674 4,952,371 4,761,230 Premises and Equipment, Net 68,716 69,480 64,065 Accrued Interest Receivable 29,326 29,916 25,446 Other Equity Securities 34,940 33,942 36,739 Other Real Estate Owned 1,339 1,685 1,365 Cash Value of Life Insurance 100,056 96,478 94,755 Deferred Taxes, Net 26,800 27,323 28,680 Goodwill 91,527 88,391 88,543 Core Deposit and Customer Intangibles 11,372 11,895 13,517 Other Assets 13,630 15,419 7,256 Total Assets $ 6,695,558 $ 6,584,550 $ 6,289,981 Liabilities Deposits Noninterest-Bearing $ 1,295,050 $ 1,299,090 $ 1,475,782 Interest-Bearing 4,277,700 3,949,700 3,330,396 Total Deposits 5,572,750 5,248,790 4,806,178 Securities Sold Under Agreements to Repurchase 17,207 18,885 16,669 Federal Funds Purchased - - 14,622 Bank Term Funding Program - 300,000 310,000 Federal Home Loan Bank Borrowings 308,206 211,198 395,134 Subordinated Debt 99,933 99,990 110,596 Subordinated Debt - Trust Preferred Securities 5,000 5,000 5,000 Accrued Interest Payable 3,930 14,841 3,513 Other Liabilities 39,498 41,587 30,579 Total Liabilities 6,046,524 5,940,291 5,692,291 Shareholders' Equity Preferred Stock 71,930 71,930 71,930 Common Stock 25,485 25,352 25,320 Additional Paid-In Capital 398,511 397,447 394,677 Retained Earnings 224,742 216,115 173,761 Accumulated Other Comprehensive Loss (71,634 ) (66,585 ) (67,998 ) Total Shareholders' Equity 649,034 644,259 597,690 Total Liabilities and Shareholders' Equity $ 6,695,558 $ 6,584,550 $ 6,289,981
Business First Bancshares, Inc. Consolidated Statements of Income (Unaudited) Three Months Ended March 31, December 31, March 31, (Dollars in thousands) 2024 2023 2023 Interest Income: Interest and Fees on Loans $ 85,947 $ 85,761 $ 73,768 Interest and Dividends on Securities 5,599 5,193 4,782 Interest on Federal Funds Sold and Due From Banks 4,465 3,711 942 Total Interest Income 96,011 94,665 79,492 Interest Expense: Interest on Deposits 38,029 34,190 18,928 Interest on Borrowings 6,451 6,715 7,815 Total Interest Expense 44,480 40,905 26,743 Net Interest Income 51,531 53,760 52,749 Provision for Credit Losses 1,186 119 3,222 Net Interest Income After Provision for Credit Losses 50,345 53,641 49,527 Other Income: Service Charges on Deposit Accounts 2,439 2,470 2,281 Loss on Sales of Securities (1 ) (2,503 ) (1 ) Gain on Sales of Loans 139 546 611 Other Income 6,809 5,900 5,497 Total Other Income 9,386 6,413 8,388 Other Expenses: Salaries and Employee Benefits 25,416 22,609 23,176 Occupancy and Equipment Expense 5,357 5,301 5,001 Merger and Conversion-Related Expense 340 63 103 Other Expenses 11,409 11,741 10,399 Total Other Expenses 42,522 39,714 38,679 Income Before Income Taxes 17,209 20,340 19,236 Provision for Income Taxes 3,639 4,516 4,211 Net Income 13,570 15,824 15,025 Preferred Stock Dividends 1,350 1,350 1,350 Net Income Available to Common Shareholders $ 12,220 $ 14,474 $ 13,675
Business First Bancshares, Inc. Consolidated Net Interest Margin (Unaudited) Three Months Ended March 31, 2024 December 31, 2023 March 31, 2023 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 $ 5,026,937 $ 85,947 6.88 % $ 4,949,954 $ 85,761 6.87 % $ 4,719,906 $ 73,768 6.34 % Securities 888,933 5,599 2.53 % 865,372 5,193 2.38 % 927,491 4,782 2.09 % Interest-Bearing Deposit in Other Banks 330,260 4,465 5.44 % 271,004 3,711 5.43 % 57,478 942 6.65 % Total Interest-Earning Assets 6,246,130 96,011 6.18 % 6,086,330 94,665 6.17 % 5,704,875 79,492 5.65 % Allowance for Loan Losses (40,526 ) (40,996 ) (41,533 ) Noninterest-Earning Assets 461,923 449,527 459,721 Total Assets $ 6,667,527 $ 96,011 $ 6,494,861 $ 94,665 $ 6,123,063 $ 79,492 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 4,072,600 $ 38,029 3.76 % $ 3,816,474 $ 34,190 3.55 % $ 3,339,493 $ 18,928 2.30 % Subordinated Debt 99,972 1,356 5.46 % 100,009 1,320 5.24 % 110,647 1,389 5.09 % Subordinated Debt - Trust Preferred Securities 5,000 113 9.09 % 5,000 113 8.97 % 5,000 98 7.95 % Bank Term Funding Program 260,440 2,788 4.31 % 300,000 3,202 4.23 % 34,444 380 4.47 % Advances from Federal Home Loan Bank (FHLB) 223,501 2,094 3.77 % 213,280 1,947 3.62 % 517,934 5,842 4.57 % Other Borrowings 16,116 100 2.50 % 20,772 133 2.54 % 20,886 106 2.06 % Total Interest-Bearing Liabilities 4,677,629 44,480 3.82 % 4,455,535 40,905 3.64 % 4,028,404 26,743 2.69 % Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits $ 1,282,815 $ 1,368,452 $ 1,473,186 Other Liabilities 57,510 54,316 32,884 Total Noninterest-Bearing Liabilities 1,340,325 1,422,768 1,506,070 Shareholders' Equity: Common Shareholders' Equity 577,643 544,628 516,659 Preferred Equity 71,930 71,930 71,930 Total Shareholders' Equity 649,573 616,558 588,589 Total Liabilities and Shareholders' Equity $ 6,667,527 $ 6,494,861 $ 6,123,063 Net Interest Spread 2.36 % 2.53 % 2.96 % Net Interest Income $ 51,531 $ 53,760 $ 52,749 Net Interest Margin 3.32 % 3.50 % 3.75 % Overall Cost of Funds 3.00 % 2.79 % 1.97 % NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365/366 day count convention.
Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) Three Months Ended March 31, December 31, March 31, (Dollars in thousands, except per share data) 2024 2023 2023 Interest Income: Interest income $ 96,011 $ 94,665 $ 79,492 Core interest income 96,011 94,665 79,492 Interest Expense: Interest expense 44,480 40,905 26,743 Core interest expense 44,480 40,905 26,743 Provision for Credit Losses:(b) Provision for credit losses 1,186 119 3,222 Core provision expense 1,186 119 3,222 Other Income: Other income 9,386 6,413 8,388 Gain on former bank premises and equipment (50 ) - - Loss on sale of securities 1 2,503 1 Gain on sale of branch - (13 ) - Core other income 9,337 8,903 8,389 Other Expense: Other expense 42,522 39,714 38,679 Acquisition-related expenses (2) (715 ) (63 ) (103 ) Write-down on former bank premises - (432 ) - Core other expense 41,807 39,219 38,576 Pre-Tax Income:(a) Pre-tax income 17,209 20,340 19,236 Gain on former bank premises and equipment (50 ) - - Loss on sale of securities 1 2,503 1 Gain on sale of branch - (13 ) - Acquisition-related expenses (2) 715 63 103 Write-down on former bank premises - 432 - Core pre-tax income 17,875 23,325 19,340 Provision for Income Taxes:(1) Provision for income taxes 3,639 4,516 4,211 Tax on gain on former bank premises and equipment (11 ) - - Tax on loss on sale of securities 0 529 - Tax on gain on sale of branch - (3 ) - Tax on acquisition-related expenses (2) 89 1 6 Tax on write-down on former bank premises - 91 - Core provision for income taxes 3,717 5,134 4,217 Preferred Dividends: Preferred dividends 1,350 1,350 1,350 Core preferred dividends 1,350 1,350 1,350 Net Income Available to Common Shareholders: Net income available to common shareholders 12,220 14,474 13,675 Gain on former bank premises and equipment, net of tax (39 ) - - Loss on sale of securities, net of tax 1 1,974 1 Gain on sale of branch, net of tax - (10 ) - Acquisition-related expenses (2), net of tax 626 62 97 Write-down on former bank premises, net of tax - 341 - Core net income available to common shareholders $ 12,808 $ 16,841 $ 13,773 Pre-tax, pre-provision earnings available to common shareholders (a+b) $ 18,395 $ 20,459 $ 22,458 Gain on former bank premises and equipment (50 ) - - Loss on sale of securities 1 2,503 1 Gain on sale of branch - (13 ) - Acquisition-related expenses (2) 715 63 103 Write-down on former premises - 432 - Core pre-tax, pre-provision earnings $ 19,061 $ 23,444 $ 22,562 Average Diluted Common Shares Outstanding 25,429,194 25,333,913 25,222,308 Diluted Earnings Per Common Share: Diluted earnings per common share $ 0.48 $ 0.57 $ 0.54 Gain on former bank premises and equipment, net of tax (0.00 ) - - Loss on sale of securities, net of tax 0.00 0.08 - Gain on sale of branch, net of tax - - - Acquisition-related expenses (2), net of tax 0.02 - 0.01 Write-down on former premises, net of tax - 0.01 - Core diluted earnings per common share $ 0.50 $ 0.66 $ 0.55 Pre-tax, pre-provision profit diluted earnings per common share $ 0.72 $ 0.81 $ 0.89 Gain on former bank premises and equipment (0.00 ) - - Loss on sale of securities 0.00 0.10 - Gain on sale of branch - - - Acquisition-related expenses (2) 0.03 - - Write-down on former premises - 0.02 - Core pre-tax, pre-provision diluted earnings per common share $ 0.75 $ 0.93 $ 0.89 (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2024 and 2023. These rates approximated the marginal tax rates. (2) Includes merger and conversion-related expenses and salary and employee benefits.
Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) March 31, December 31, March 31, (Dollars in thousands, except per share data) 2024 2023 2023 Total Shareholders' (Common) Equity: Total shareholders' equity $ 649,034 $ 644,259 $ 597,690 Preferred stock (71,930 ) (71,930 ) (71,930 ) Total common shareholders' equity 577,104 572,329 525,760 Goodwill (91,527 ) (88,391 ) (88,543 ) Core deposit and customer intangible (11,372 ) (11,895 ) (13,517 ) Total tangible common equity $ 474,205 $ 472,043 $ 423,700 Total Assets: Total assets $ 6,695,558 $ 6,584,550 $ 6,289,981 Goodwill (91,527 ) (88,391 ) (88,543 ) Core deposit and customer intangible (11,372 ) (11,895 ) (13,517 ) Total tangible assets $ 6,592,659 $ 6,484,264 $ 6,187,921 Common shares outstanding 25,485,383 25,351,809 25,319,520 Book value per common share $ 22.64 $ 22.58 $ 20.77 Tangible book value per common share $ 18.61 $ 18.62 $ 16.73 Common equity to total assets 8.62 % 8.69 % 8.36 % Tangible common equity to tangible assets 7.19 % 7.28 % 6.85 % Business First Bancshares, Inc. Non-GAAP Measures (Unaudited) Three Months Ended March 31, December 31, March 31, (Dollars in thousands, except per share data) 2024 2023 2023 Total Quarterly Average Assets $ 6,667,527 $ 6,494,861 $ 6,123,063 Total Quarterly Average Common Equity $ 577,643 $ 544,628 $ 516,659 Net Income Available to Common Shareholders: Net income available to common shareholders $ 12,220 $ 14,474 $ 13,675 Gain on former bank premises and equipment, net of tax (39 ) - - Loss on sale of securities, net of tax 1 1,974 1 Gain on sale of branch, net of tax - (10 ) - Acquisition-related expenses, net of tax 626 62 97 Write-down on former bank premises, net of tax - 341 - Core net income available to common shareholders $ 12,808 $ 16,841 $ 13,773 Return to common shareholders on average assets (annualized) (2) 0.74 % 0.88 % 0.91 % Core return on average assets (annualized) (2) 0.77 % 1.03 % 0.91 % Return to common shareholders on average common equity (annualized) (2) 8.51 % 10.54 % 10.73 % Core return on average common equity (annualized) (2) 8.92 % 12.27 % 10.81 % Interest Income: Interest income $ 96,011 $ 94,665 $ 79,492 Core interest income 96,011 94,665 79,492 Interest Expense: Interest expense 44,480 40,905 26,743 Core interest expense 44,480 40,905 26,743 Other Income: Other income 9,386 6,413 8,388 Gain on former bank premises and equipment (50 ) - - Loss on sale of securities 1 2,503 1 Gain on sale of branch - (13 ) - Core other income 9,337 8,903 8,389 Other Expense: Other expense 42,522 39,714 38,679 Acquisition-related expenses (715 ) (63 ) (103 ) Write-down on former bank premises - (432 ) - Core other expense $ 41,807 $ 39,219 $ 38,576 Efficiency Ratio: Other expense (a) $ 42,522 $ 39,714 $ 38,679 Core other expense (c) $ 41,807 $ 39,219 $ 38,576 Net interest and other income (1) (b) $ 60,918 $ 62,676 $ 61,138 Core net interest and other income (1) (d) $ 60,868 $ 62,663 $ 61,138 Efficiency ratio (a/b) 69.80 % 63.36 % 63.27 % Core efficiency ratio (c/d) 68.68 % 62.59 % 63.10 % Total Average Interest-Earnings Assets $ 6,246,130 $ 6,086,330 $ 5,704,875 Net Interest Income: Net interest income $ 51,531 $ 53,760 $ 52,749 Loan discount accretion (785 ) (1,921 ) (2,912 ) Net interest income excluding loan discount accretion $ 50,746 $ 51,839 $ 49,837 Net interest margin (2) 3.32 % 3.50 % 3.75 % Net interest margin excluding loan discount accretion (2) 3.27 % 3.38 % 3.54 % Net interest spread (2) 2.36 % 2.53 % 2.96 % Net interest spread excluding loan discount accretion (2) 2.31 % 2.40 % 2.75 % (1) Excludes gains/losses on sales of securities. (2) Calculated utilizing an Actual/365/366 day count convention. 
- Deposit Growth. Deposits increased $324.0 million or 6.17%, 24.82% annualized, for the quarter ended March 31, 2024, compared to the linked quarter. During the quarter ended March 31, 2024, noninterest-bearing deposits remained stable with a decrease of $4.0 million or 0.31% and interest-bearing deposits increased $328.0 million or 8.30%, compared to the linked quarter. Highlighting quarterly deposit growth were the Capital and Dallas markets with $55.8 million and $45.5 million, respectively. The Capital and Dallas markets opened 758 and 296 new accounts during the quarter. All new deposit generations for Business First had a weighted average rate of 4.32% as of March 31, 2024, a decrease of 0.29% from the linked quarter.