Exhibit 99.1

 

 

 

 

FOR IMMEDIATE RELEASE					Misty Albrecht
October 22, 2018					Business First Bank
					225.286.7879
					Misty.Albrecht@b1BANK.com

 

 

 

BUSINESS FIRST BANCSHARES, INC., ANNOUNCES FINANCIAL RESULTS FOR Q3 2018

 

 

Baton Rouge, LA – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of Business First Bank, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended September 30, 2018, including record quarterly net income of $3.9 million, or $0.33 per diluted share, which reflected increases of $2.2 million and $0.10, respectively, from the quarter ended September 30, 2017. Core net income, which excludes noncore income and expenses, was $4.4 million, or $0.37 per diluted share, which reflected increases of $3.0 million and $0.17, respectively, from the quarter ended September 30, 2017.

 

“Our third quarter results demonstrate on a number of fronts the value our company continues to build,” said Jude Melville, President and CEO. “I am extremely proud of our team’s ability to produce annualized quarterly loan growth of 20 percent while expanding net interest margin, improving credit quality and successfully converting our recent acquisition of MBL Bank.”

 

“Although healthy competition for deposit accounts is anticipated to pressure net interest margin and spread for the foreseeable future, our team views the current environment as an opportunity to strengthen and grow client relationships by offering responsive service and a robust product set.”

 

On October 18, 2018, 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 November 15, 2018, consistent with the prior quarter. The dividend will be paid on November 30, 2018, or as soon thereafter as practicable.

 

 

Quarterly Highlights

 

●

Strong Loan Growth and Improved Credit Quality. Total loans held for investment at September 30, 2018, were $1.3 billion, an increase of $63.9 million compared to the quarter ended June 30, 2018, and $322.7 compared to the quarter ended December 31, 2017. Net organic loan growth was $63.9 million, or 20.7% annualized, for the quarter ended September 30, 2018. Year-to-date net organic loan growth was $130.5 million, or 14.9% annualized as of September 30, 2018. The ratio of nonperforming loans to total loans held for investment was 0.89% as of September 30, 2018, compared to 1.14% and 1.30%, respectively, as of June 30, 2018, and December 31, 2017.

 

●

Higher Net Income and Shareholder Return. Net income for the quarter was $3.9 million, an increase of $2.2 million, or 131.9%, from the quarter ended September 30, 2017. Net interest income was $15.6 million, an increase of $5.1 million, or 48.4%, from the quarter ended September 30, 2017. Diluted earnings per share were $0.33, return on average assets was 0.94%, and return on average equity was 7.37%, compared to $0.23, 0.57% and 5.61%, respectively, from the quarter ended September 30, 2017. Core net income, which excludes noncore income and expenses, was $4.4 million, increased $3.0 million from the quarter ended September 30, 2017, which resulted in core earnings per diluted share of $0.37, an 85.0% increase compared to $0.20 for the quarter ended September 30, 2017. As adjusted, core return on average assets was 1.06% and core return on average equity was 8.37%, compared to 0.50% and 4.91%, respectively, for the quarter ended September 30, 2017.

 

●

Net Interest Margin Expansion. Net interest margin and net interest spread were 4.05% and 3.70%, respectively, compared to 3.98% and 3.70% for the quarter ended June 30, 2018, and 3.82% and 3.56%, respectively, for the quarter ended September 30, 2017.

 

●

MBL Bank Conversion. Successfully completed the MBL Bank system conversion in July without disruption to business operations or customers.

 

●

Strategic Banking Center Closure. In September, Business First closed a banking center in Baton Rouge, Louisiana, to increase future operating efficiencies.

 

Financial Condition

 

As of September 30, 2018, Business First had total assets of $1.7 billion, total loans of $1.3 billion, total deposits of $1.4 billion, and total shareholders’ equity of $213.0 million, compared to $1.6 billion, $1.2 billion, $1.3 billion, and $210.6 million, respectively, as of June 30, 2018.

 

 

Nonperforming loans as a percent of total loans held for investment decreased from 1.14% as of June 30, 2018, to 0.89% as of September 30, 2018. Nonperforming assets as a percent of total assets decreased from 0.93% as of June 30, 2018, to 0.80% as of September 30, 2018. The decreases were mainly attributed to improved credit quality.

 

Book value per common share was $18.46 at September 30, 2018, compared to $18.26 at June 30, 2018. Tangible book value per common share was $15.30 at September 30, 2018, compared to $15.07 at June 30, 2018.

 

Results of Operations

For the quarter ended September 30, 2018, net income was $3.9 million, or $0.34 per basic share and $0.33 per diluted share, compared to net income of $1.7 million, or $0.24 per basic share and $0.23 per diluted share, for the quarter ended September 30, 2017. Return on average assets, on an annualized basis, increased to 0.94% for the quarter ended September 30, 2018, from 0.57% for the quarter ended September 30, 2017. Return on average equity, on an annualized basis, increased to 7.37% for the quarter ended September 30, 2018, as compared to 5.61% for the quarter ended September 30, 2017. The increase in net income for the quarter ended September 30, 2018, compared to the same period in 2017, can primarily be attributed to the acquisition of Minden Bancorp, Inc., growth of the loan portfolio, and the enactment of the Tax Cuts and Jobs Act which lowered the effective corporate tax rate. In comparison to the quarter ended June 30, 2018, basic and diluted earnings per share remained constant, return on average assets increased, and return on average equity decreased.

 

Notable noncore events impacting earnings included the incurrence of $509,000 in noninterest expenses related to acquisition-related activities and $139,000 related to losses associated with the closure of a banking center for the quarter ended September 30, 2018, and the sale of a participation interest in an impaired credit acquired from American Gateway in 2015, which resulted in a $317,000 increase in interest income for the quarter ended September 30, 2017. Core net income, which excludes noncore income and expenses, for the quarter ended September 30, 2018, was $4.4 million, or $0.37 per diluted share, compared to core net income of $1.5 million, or $0.20 per diluted share, in the quarter ended September 30, 2017. As adjusted, core return on average assets and core return on average equity, in each case on an annualized basis, were 1.06% and 8.37%, respectively, for the quarter ended September 30, 2018, compared to 0.50% and 4.91%, respectively, for the quarter ended September 30, 2017. As adjusted, in comparison to the quarter ended June 30, 2018, basic and diluted earnings per share remained constant, return on average assets increased, and return on average equity decreased.

 

 

For the quarter ended September 30, 2018, net interest income totaled $15.6 million, and net interest margin and net interest spread were 4.05% and 3.70%, respectively, compared to $15.0 million, 3.98%, and 3.70% for the quarter ended June 30, 2018, and $10.5 million, 3.82%, and 3.56%, respectively, for the quarter ended September 30, 2017. Net interest margin and net interest spread (excluding loan discount accretion of $268,000) were 3.98% and 3.63%, respectively, for the quarter ended September 30, 2018, compared to 3.89% and 3.61% (excluding loan discount accretion of $342,000) for the quarter ended June 30, 2018, and 3.66% and 3.40% (excluding loan discount accretion of $441,000), respectively, for the quarter ended September 30, 2017. The average yield on the loan portfolio was 5.65% for the quarter ended September 30, 2018, compared to 5.46% for the quarter ended June 30, 2018, and 5.08% for the quarter ended September 30, 2017, and the average yield on total interest-earning assets was 5.01% for the quarter ended September 30, 2018, compared to 4.81% for the quarter ended June 30, 2017, and 4.50% for the quarter ended September 30, 2017.

 

Certain metrics discussed above were impacted during the quarter ended September 30, 2017, by the sale of a participation interest in an impaired credit acquired from American Gateway in 2015. Excluding the effect of this transaction, for the quarter ended September 30, 2017, net interest income was $10.2 million, net interest margin and net interest spread were 3.70% and 3.45%, respectively, and average yield on the loan portfolio and on total interest-earning assets were 4.94% and 4.39%, respectively.

 

For the quarter ended September 30, 2018, overall cost of funds (which includes noninterest-bearing deposits) increased by 15 basis points compared to the quarter ended June 30, 2018, and 31 basis points compared to the quarter ended September 30, 2017. Due to the continued impact of new loan growth and competitive deposit pricing, management continues to anticipate, and actively manage, pressure on net interest margin and net interest spread.

 

During the quarter ended September 30, 2018, Business First recorded a provision for loan losses of $503,000, compared to $247,000 for the quarter ended September 30, 2017. The higher provision for the quarter ended September 30, 2018, compared to the same period in 2017 was generally attributable to overall loan growth and partially offset by increased credit quality.

 

 

Banking Centers

As of September 30, 2018, Business First operated out of 17 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 (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, 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 17 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.

Consolidated Balance Sheets

(Unaudited)

 

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2018				2018				2018				2017				2017
Assets
Cash and Due from Banks		$	45,941			$	45,861			$	37,627			$	107,591			$	36,210
Federal Funds Sold			5,934				32,522				11,730				8,820				2,971
Securities Available for Sale, at Fair Values			243,585				252,139				262,988				179,148				186,149
Mortgage Loans Held for Sale			280				-				147				201				332
Loans and Lease Receivable			1,297,959				1,234,031				1,191,450				975,284				937,776
Allowance for Loan Losses			(10,273	)			(9,756	)			(9,647	)			(8,765	)			(9,241	)
Net Loans and Lease Receivable			1,287,686				1,224,275				1,181,803				966,519				928,535
Premises and Equipment, Net			10,022				10,537				10,424				8,780				8,974
Accrued Interest Receivable			5,188				5,268				4,700				4,110				3,518
Other Equity Securities			10,339				10,064				9,381				8,627				8,595
Other Real Estate Owned			1,824				1,273				1,282				227				267
Cash Value of Life Insurance			24,442				24,275				24,109				23,200				23,039
Deferred Taxes, Net			4,359				3,888				4,155				3,005				4,627
Goodwill			32,427				32,552				32,816				6,824				6,824
Core Deposit Intangible			4,103				4,234				4,366				2,003				2,072
Other Assets			2,065				2,319				2,185				2,201				1,718
Total Assets		$	1,678,195			$	1,649,207			$	1,587,713			$	1,321,256			$	1,213,831
Liabilities
Deposits:
Noninterest Bearing		$	311,170			$	305,314			$	297,845			$	264,646			$	268,520
Interest Bearing			1,042,901				1,024,179				1,009,893				790,887				746,574
Total Deposits			1,354,071				1,329,493				1,307,738				1,055,533				1,015,094
Securities Sold Under Agreements to Repurchase			14,310				13,604				15,434				1,939				2,926
Short-Term Borrowings			862				862				862				862				862
Long-Term Borrowings			2,400				2,700				2,700				2,700				2,700
Federal Home Loan Bank Borrowings			85,000				85,000				75,000				75,000				65,474
Accrued Interest Payable			1,336				1,197				1,104				890				902
Other Liabilities			7,255				5,722				4,881				4,397				5,814
Total Liabilities			1,465,234				1,438,578				1,407,719				1,141,321				1,093,772
Shareholders' Equity
Common Stock			11,534				11,533				10,272				10,232				6,933
Additional Paid-In Capital			171,345				171,193				144,441				144,172				85,136
Retained Earnings			35,460				32,483				29,666				27,175				28,380
Accumulated Other Comprehensive Loss			(5,378	)			(4,580	)			(4,385	)			(1,644	)			(390	)
Total Shareholders' Equity			212,961				210,629				179,994				179,935				120,059
Total Liabilities and Shareholders' Equity		$	1,678,195			$	1,649,207			$	1,587,713			$	1,321,256			$	1,213,831

 

 

Business First Bancshares, Inc.

Consolidated Statements of Income

(Unaudited)

 

		Quarter Ended																				Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(Dollars in thousands)		2018				2018				2018				2017				2017				2018				2017
Interest Income:
Interest and Fees on Loans		$	17,777			$	16,549			$	15,676			$	12,544			$	11,433			$	50,002			$	34,972
Interest and Dividends on Securities			1,386				1,414				1,423				957				953				4,223				2,872
Interest on Federal Funds Sold and Due From Banks			162				128				127				171				38				417				85
Total Interest Income			19,325				18,091				17,226				13,672				12,424				54,642				37,929
Interest Expense:
Interest on Deposits			3,127				2,555				2,298				1,814				1,665				7,980				4,514
Interest on Borrowings			562				560				428				269				226				1,550				632
Total Interest Expense			3,689				3,115				2,726				2,083				1,891				9,530				5,146
Net Interest Income			15,636				14,976				14,500				11,589				10,533				45,112				32,783
Provision for Loan Losses			503				474				474				2,330				247				1,451				1,907
Net Interest Income After Provision for Loan Losses			15,133				14,502				14,026				9,259				10,286				43,661				30,876
Other Income:
Service Charges on Deposit Accounts			695				636				610				530				542				1,941				1,579
Gain (Loss) on Sales of Securities			-				-				-				-				31				-				31
Other Income			852				1,370				1,125				943				668				3,347				2,535
Total Other Income			1,547				2,006				1,735				1,473				1,241				5,288				4,145
Other Expenses:
Salaries and Employee Benefits			7,190				6,524				6,704				5,542				5,559				20,418				15,940
Occupancy and Equipment Expense			1,522				1,402				1,418				1,322				1,139				4,342				3,498
Other Expenses			3,158				4,099				3,822				2,844				2,516				11,079				7,656
Total Other Expenses			11,870				12,025				11,944				9,708				9,214				35,839				27,094
Income Before Income Taxes			4,810				4,483				3,817				1,024				2,313				13,110				7,927
Provision for Income Taxes			910				845				709				1,886				631				2,464				2,217
Net Income		$	3,900			$	3,638			$	3,108			$	(862	)		$	1,682			$	10,646			$	5,710

 

 

Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

 

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands)		2018				2018				2018				2017				2017
Balance Sheet Ratios
Gross Loans (HFI) to Deposits			95.88	%			92.82	%			91.12	%			92.42	%			92.42	%
Shareholders' Equity to Assets Ratio			12.69	%			12.77	%			11.34	%			13.62	%			9.89	%
Tangible Common Equity to Tangible Assets			10.75	%			10.78	%			9.21	%			13.04	%			9.23	%
Loans Receivable Held for Investment
Commercial		$	317,889			$	298,967			$	290,427			$	254,427			$	261,478
Real Estate:
Construction and Land			196,404				204,099				191,220				143,535				121,377
Farmland			26,882				15,173				14,498				10,480				10,469
1-4 Family Residential			234,690				224,986				218,623				157,505				145,911
Multifamily Residential			22,109				22,511				25,884				20,717				19,750
Nonfarm Nonresidential			432,306				399,166				390,478				337,699				331,053
Total Real Estate			912,391				865,935				840,703				669,936				628,560
Consumer			67,679				69,129				60,320				50,921				47,738
Total Loans		$	1,297,959			$	1,234,031			$	1,191,450			$	975,284			$	937,776
Allowance for Loan Losses
Balance, Beginning of Period		$	9,756			$	9,647			$	8,765			$	9,241			$	9,177
Charge-Offs-Quarterly			(33	)			(397	)			(23	)			(2,845	)			(217	)
Recoveries-Quarterly			47				32				431				39				34
Provision for Loan Losses - Quarterly			503				474				474				2,330				247
Balance, End of Period		$	10,273			$	9,756			$	9,647			$	8,765			$	9,241
Allowance for Loan Losses to Total Loans (HFI)			0.79	%			0.79	%			0.81	%			0.90	%			0.99	%
Net Charge-Offs (Recoveries) to Average Total Loans			0.00	%			0.03	%			-0.03	%			0.29	%			0.02	%
Nonperforming Assets
Nonperforming Loans
Nonaccrual Loans		$	11,341			$	13,884			$	15,030			$	12,535			$	13,269
Loans Past Due 90 Days or More			256				130				114				132				194
Total Nonperforming Loans			11,597				14,014				15,144				12,667				13,463
Other Nonperforming Assets
Other Real Estate Owned			1,824				1,273				1,282				227				267
Other Nonperforming Assets			11				36				13				-				-
Total Other Nonperforming Assets			1,835				1,309				1,295				227				267
Total Nonperforming Assets		$	13,432			$	15,323			$	16,439			$	12,894			$	13,730
Nonperforming Loans to Total Loans			0.89	%			1.14	%			1.27	%			1.30	%			1.44	%
Nonperforming Assets to Total Assets			0.80	%			0.93	%			1.04	%			0.98	%			1.13	%

 

 

Business First Bancshares, Inc.

Selected Financial Information

(Unaudited)

 

		Quarter Ended																				Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(Dollars in thousands, except per share data)		2018				2018				2018				2017				2017				2018				2017
Per Share Data
Basic Earnings Per Common Share		$	0.34			$	0.34			$	0.30			$	(0.09	)		$	0.24			$	0.99			$	0.82
Diluted Earnings Per Common Share			0.33				0.33				0.29				(0.08	)			0.23				0.95				0.78
Dividends Per Common Share			0.08				0.08				0.06				0.06				0.06				0.22				0.17
Book Value Per Common Share			18.46				18.26				17.52				17.58				17.32				18.46				17.32
Tangible Book Value Per Common Share			15.30				15.07				13.90				16.72				16.03				15.30				16.03
Average Common Shares Outstanding			11,533,374				10,607,369				10,232,933				9,828,645				6,932,570				10,795,989				6,926,684
Average Diluted Shares Outstanding			11,993,734				11,064,638				10,578,755				10,174,467				7,315,352				11,256,349				7,309,466
End of Period Common Shares Outstanding			11,533,721				11,533,171				10,271,931				10,232,495				6,932,570				11,533,721				6,932,570
Annualized Performance Ratios
Return on Average Assets			0.94	%			0.90	%			0.77	%			-0.26	%			0.57	%			0.87	%			0.65	%
Return on Average Equity			7.37	%			7.75	%			6.94	%			-1.89	%			5.61	%			7.45	%			6.51	%
Net Interest Margin			4.05	%			3.98	%			3.97	%			3.87	%			3.82	%			4.00	%			4.06	%
Net Interest Spread			3.70	%			3.70	%			3.75	%			3.57	%			3.56	%			3.72	%			3.84	%
Efficiency Ratio			69.08	%			70.81	%			73.57	%			74.32	%			78.46	%			71.11	%			73.43	%
Other Operating Expenses
Salaries and Employee Benefits		$	7,190			$	6,524			$	6,704			$	5,542			$	5,559			$	20,418			$	15,940
Occupancy and Bank Premises			914				861				857				810				617				2,632				1,864
Depreciation and Amortization			417				407				422				338				351				1,246				1,119
Data Processing			395				355				410				392				385				1,160				1,145
FDIC Assessment Fees			221				331				393				235				202				945				568
Legal and Other Professional Fees			328				509				402				217				358				1,239				942
Advertising and Promotions			290				298				229				259				271				817				934
Utilities and Communications			294				269				272				248				242				835				733
Ad Valorem Shares Tax			321				322				322				309				165				965				495
Directors' Fees			93				92				159				83				76				344				317
Other Real Estate Owned Expenses and Write-Downs			-				7				2				7				4				9				43
Merger and Conversion Related Expenses			138				415				512				-				-				1,065				-
Other			1,269				1,635				1,260				1,268				984				4,164				2,994
Total Other Expenses		$	11,870			$	12,025			$	11,944			$	9,708			$	9,214			$	35,839			$	27,094

 

 

Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

 

 

		Quarter Ended
		September 30, 2018												June 30, 2018												September 30, 2017
		Average				Interest								Average				Interest								Average				Interest
(Dollars in		Outstanding				Earned /				Average				Outstanding				Earned/				Average				Outstanding				Earned/				Average
thousands)		Balance				Interest Paid				Yield / Rate				Balance				Interest Paid				Yield / Rate				Balance				Interest Paid				Yield / Rate
Assets
Interest-Earning Assets
Total Loans		$	1,258,060			$	17,777				5.65	%		$	1,212,977			$	16,549				5.46	%		$	899,739			$	11,433				5.08	%
Securities Available for Sale			253,902				1,386				2.18	%			263,108				1,414				2.15	%			193,509				953				1.97	%
Interest-Bearing Deposit in Other Banks			31,858				162				2.03	%			29,204				128				1.75	%			11,125				38				1.37	%
Total Interest-Earning Assets			1,543,820				19,325				5.01	%			1,505,289				18,091				4.81	%			1,104,373				12,424				4.50	%
Allowance for Loan Losses			(9,945	)											(9,638	)											(9,121	)
Noninterest-Earning Assets			132,242												128,544												92,301
Total Assets		$	1,666,117			$	19,325							$	1,624,195			$	18,091							$	1,187,553			$	12,424
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities
Interest-Bearing Deposits		$	1,028,412			$	3,127				1.22	%		$	1,014,520			$	2,555				1.01	%		$	735,371			$	1,665				0.91	%
Advances from Federal Home Loan Bank ("FHLB")			85,000				506				2.38	%			94,222				507				2.15	%			65,710				182				1.11	%
Other Borrowings			17,484				56				1.28	%			16,220				53				1.31	%			6,609				44				2.66	%
Total Interest-Bearing Liabilities			1,130,896				3,689				1.30	%			1,124,962				3,115				1.11	%			807,690				1,891				0.94	%
Noninterest-Bearing Liabilities
Noninterest-Bearing Deposits			315,111												306,042												253,866
Other Liabilities			8,479												5,427												6,068
Total Noninterest-Bearing Liabilities			323,590												311,469												259,934
Shareholders' Equity			211,631												187,764												119,929
Total Liabilities and Shareholders' Equity		$	1,666,117											$	1,624,195											$	1,187,553
Net Interest Spread											3.70	%											3.70	%											3.56	%
Net Interest Income						$	15,636											$	14,976											$	10,533
Net Interest Margin											4.05	%											3.98	%											3.82	%

 

 

Business First Bancshares, Inc.

Consolidated Net Interest Margin

(Unaudited)

 

 

		For the Nine Months Ended September 30,
		2018												2017
		Average												Average
		Outstanding				Interest Earned /				Average				Outstanding				Interest Earned /				Average
(Dollars in thousands)		Balance				Interest Paid				Yield / Rate				Balance				Interest Paid				Yield / Rate
Assets
Interest-Earning Assets
Total Loans		$	1,216,395			$	50,002				5.48	%		$	867,036			$	34,972				5.38	%
Securities Available for Sale			254,035				4,223				2.22	%			197,759				2,872				1.94	%
Interest-Bearing Deposit in Other Banks			32,899				417				1.69	%			10,897				85				1.04	%
Total Interest-Earning Assets			1,503,329				54,642				4.85	%			1,075,692				37,929				4.70	%
Allowance for Loan Losses			(9,516	)											(8,545	)
Noninterest-Earning Assets			141,209												98,178
Total Assets		$	1,635,022			$	54,642							$	1,165,325			$	37,929
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities
Interest-Bearing Deposits		$	1,022,982			$	7,980				1.04	%		$	723,796			$	4,514				0.83	%
Advances from Federal Home Loan Bank ("FHLB")			84,777				1,387				2.18	%			65,268				508				1.04	%
Other Borrowings			18,478				163				1.18	%			6,705				124				2.47	%
Total Interest-Bearing Liabilities			1,126,237				9,530				1.13	%			795,769				5,146				0.86	%
Noninterest-Bearing Liabilities
Noninterest-Bearing Deposits			309,526												246,516
Other Liabilities			8,604												6,101
Total Noninterest-Bearing Liabilities			318,130												252,617
Shareholders' Equity			190,655												116,939
Total Liabilities and Shareholders' Equity		$	1,635,022											$	1,165,325
Net Interest Spread											3.72	%											3.84	%
Net Interest Income						$	45,112											$	32,783
Net Interest Margin											4.00	%											4.06	%

 

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

 

 

		September 30,				June 30,				March 31,				December 31,				September 30,
(Dollars in thousands, except per share data)		2018				2018				2018				2017				2017
Tangible Common Equity
Total Shareholders' Equity		$	212,961			$	210,629			$	179,994			$	179,935			$	120,059
Adjustments:
Goodwill			(32,427	)			(32,552	)			(32,816	)			(6,824	)			(6,824	)
Core Deposit and Other Intangibles			(4,103	)			(4,234	)			(4,366	)			(2,003	)			(2,072	)
Total Tangible Common Equity		$	176,431			$	173,843			$	142,812			$	171,108			$	111,163
Tangible Assets
Total Assets		$	1,678,195			$	1,649,207			$	1,587,713			$	1,321,256			$	1,213,831
Adjustments:
Goodwill			(32,427	)			(32,552	)			(32,816	)			(6,824	)			(6,824	)
Core Deposit and Other Intangibles			(4,103	)			(4,234	)			(4,366	)			(2,003	)			(2,072	)
Total Tangible Assets		$	1,641,665			$	1,612,421			$	1,550,531			$	1,312,429			$	1,204,935
Common Shares Outstanding			11,533,721				11,533,171				10,271,931				10,232,495				6,932,570
Book Value Per Common Share		$	18.46			$	18.26			$	17.52			$	17.58			$	17.32
Tangible Book Value Per Common Share		$	15.30			$	15.07			$	13.90			$	16.72			$	16.03
Common Equity to Total Assets			12.69	%			12.77	%			11.34	%			13.62	%			9.89	%
Tangible Common Equity to Tangible Assets			10.75	%			10.78	%			9.21	%			13.04	%			9.23	%

 

 

Business First Bancshares, Inc.

Non-GAAP Measures

(Unaudited)

 

 

		Quarter Ended																				Nine Months Ended
		September 30,				June 30,				March 31,				December 31,				September 30,				September 30,				September 30,
(Dollars in thousands, except per share data)		2018				2018				2018				2017				2017				2018				2017
Core Net Income
Net Income		$	3,900			$	3,638			$	3,108			$	(862	)		$	1,682			$	10,646			$	5,710
Adjustments (net of tax):
Sale of Participation Interest in Impaired Credit			-				-				-				-				(209	)			-				(1,815	)
Employee Share Awards-NASDAQ Listing			-				93				-				-				-				93				-
Gains/Losses on Former Bank Premises and Equipment			110				-				-				-				-				110				-
Acquisition-Related Expenses			419				347				457				129				-				1,223				-
Core Net Income		$	4,429			$	4,078			$	3,565			$	(733	)		$	1,473			$	12,072			$	3,895
Average Common Shares Outstanding			11,533,374				10,607,369				10,232,933				9,828,645				6,932,570				10,795,989				6,926,684
Average Diluted Shares Outstanding			11,993,734				11,064,638				10,578,755				10,174,467				7,315,352				11,256,349				7,309,466
Core Earnings Per Share - Basic		$	0.38			$	0.38			$	0.35			$	(0.07	)		$	0.21			$	1.12			$	0.56
Core Earnings Per Share - Diluted		$	0.37			$	0.37			$	0.34			$	(0.07	)		$	0.20			$	1.07			$	0.53
Total Quarterly / Year-to-Date Average Assets		$	1,666,117			$	1,624,195			$	1,614,750			$	1,303,175			$	1,187,553			$	1,635,022			$	1,165,325
Total Quarterly / Year-to-Date Average Equity		$	211,631			$	187,764			$	179,098			$	182,905			$	119,929			$	190,655			$	116,939
Core Return on Average Assets			1.06	%			1.00	%			0.88	%			-0.22	%			0.50	%			0.98	%			0.45	%
Core Return on Average Equity			8.37	%			8.69	%			7.96	%			-1.60	%			4.91	%			8.44	%			4.44	%
Core Efficiency Ratio			65.31	%			67.67	%			70.42	%			73.33	%			80.64	%			67.75	%			79.35	%
Net Interest Income
Net Interest Income		$	15,636			$	14,976			$	14,500			$	11,589			$	10,533			$	45,112			$	32,783
Adjustments:
Discount Accretion			268				342				385				545				441				995				3,591
Net Interest Income Excluding Loan Discount Accretion		$	15,368			$	14,634			$	14,115			$	11,044			$	10,092			$	44,117			$	29,192
Total Average Interest-Earnings Assets		$	1,543,820			$	1,505,289			$	1,460,878			$	1,197,415			$	1,104,373			$	1,503,329			$	1,075,692
Net Interest Margin Excluding Loan Discount Accretion			3.98	%			3.89	%			3.86	%			3.69	%			3.66	%			3.91	%			3.62	%
Net Interest Spread Excluding Loan Discount Accretion			3.63	%			3.61	%			3.64	%			3.39	%			3.40	%			3.63	%			3.40	%