Business First Bancshares, Inc., Announces Financial Results For Q1 2019
BATON ROUGE, La., April 23, 2019 /PRNewswire/ -- 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 March 31, 2019, including record quarterly net income of $5.7 million, or $0.41 per diluted share, increases of $2.6 million and $0.12, respectively, from the quarter ended March 31, 2018. Core net income, which excludes noncore income and expenses, was $5.6 million, or $0.41 per diluted share, which reflects increases of $2.1 million and $0.07, respectively, from the quarter ended March 31, 2018.
"I am very pleased with our performance to begin 2019," said Jude Melville, President and CEO. "In this challenging rate environment, our team has remained focused and disciplined on loan growth, margin and spread without sacrificing the Bank's credit quality and underwriting standards."
"The addition of Richland State Bank to the existing Business First franchise was evident in our first quarter results, and we are excited about the value our combined franchises will continue to generate for our shareholders and customers in the future."
On April 23, 2019, Business First's board of directors declared a quarterly dividend based upon financial performance for the quarter in the amount of $0.10 per share to the common shareholders of record as of May 15, 2019, an increase of $0.02, or 25% from the prior quarter. The dividend will be paid on May 31, 2019, or as soon thereafter as practicable.
Quarterly Highlights
- Higher Shareholder Returns. Diluted earnings per share were $0.41, annualized return on average assets was 1.09%, and annualized return on average equity was 8.62%, compared to $0.28, 0.75% and 6.03%, respectively, from the quarter ended December 31, 2018. Core earnings per diluted share were $0.41, compared to $0.38 for the quarter ended December 31, 2018. As adjusted, annualized core return on average assets was 1.08% and annualized core return on average equity was 8.57%, compared to 1.03% and 8.23%, respectively, from the quarter ended December 31, 2018.
- Robust Loan Growth. Total loans held for investment at March 31, 2019, were $1.6 billion, an increase of $57.7 million compared to December 31, 2018. Annualized organic loan growth for the quarter ended March 31, 2019, was 15.1%, compared to 10.6% organic loan growth for the quarter ended December 31, 2018.
- Improved Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets decreased from 0.89% and 0.74%, respectively, at December 31, 2018, to 0.84% and 0.71% at March 31, 2019.
- Healthy Net Interest Margin. Net interest margin and net interest spread were 4.01% and 3.61%, respectively, for the quarter ended March 31, 2019, compared to 4.07% and 3.70% for the quarter ended December 31, 2018. The decrease was attributed to fewer calendar days in the quarter and the subordinated debt issuance in December 2018, which increased our cost of funds and has not yet been fully deployed by Business First.
Financial Condition
March 31, 2019, Compared to December 31, 2018
Balance Sheet
As of March 31, 2019, Business First had total assets of $2.1 billion, total loans of $1.6 billion, total deposits of $1.7 billion and total shareholders' equity of $269.1 million, compared to $2.1 billion, $1.5 billion, $1.7 billion and $260.1 million, respectively, as of December 31, 2018.
Book value per common share was $20.14 at March 31, 2019, compared to $19.68 at December 31, 2018. Tangible book value per common share was $15.86 at March 31, 2019, compared to $15.34 at December 31, 2018.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from 0.89% as of December 31, 2018, to 0.84% as of March 31, 2019. Nonperforming assets as a percentage of total assets decreased from 0.74% as of December 31, 2018, to 0.71% as of March 31, 2019.
March 31, 2019, Compared to March 31, 2018
Balance Sheet
As of March 31, 2019, Business First had total assets of $2.1 billion, total loans of $1.6 billion, total deposits of $1.7 billion and total shareholders' equity of $269.1 million, compared to $1.6 billion, $1.2 billion, $1.3 billion and $180.0 million, respectively, as of March 31, 2018.
Book value per common share was $20.14 at March 31, 2019, compared to $17.52 at March 31, 2018. Tangible book value per common share was $15.86 at March 31, 2019, compared to $13.90 at March 31, 2018.
Credit Quality
Nonperforming loans as a percentage of total loans held for investment decreased from 1.27% as of March 31, 2018, to 0.84% as of March 31, 2019. Nonperforming assets as a percentage of total assets decreased from 1.04% as of March 31, 2018, to 0.71% as of March 31, 2019. 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
First Quarter 2019 Compared to Fourth Quarter 2018
Net Income and Diluted Earnings Per Share
For the quarter ended March 31, 2019, net income was $5.7 million, or $0.41 per diluted share, compared to net income of $3.4 million, or $0.28 per diluted share, for the quarter ended December 31, 2018.
Core net income, which excludes noncore income and expenses, for the quarter ended March 31, 2019, was $5.6 million, or $0.41 per diluted share, compared to core net income of $4.7 million, or $0.38 per diluted share, for the quarter ended December 31, 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.
Return on Assets and Equity
Return on average assets and equity, each on an annualized basis, increased to 1.09% and 8.62%, respectively, for the quarter ended March 31, 2019, compared to 0.75% and 6.03%, respectively, for the quarter ended December 31, 2018. The increases were largely due to the growth in net interest income.
As adjusted, core return on average assets and core return on average equity, each on an annualized basis, were 1.08% and 8.57%, respectively, for the quarter ended March 31, 2019, compared to 1.03% and 8.23%, respectively, for the quarter ended December 31, 2018.
Interest Income
For the quarter ended March 31, 2019, net interest income totaled $19.1 million and net interest margin and net interest spread were 4.01% and 3.61%, respectively, compared to $17.1 million, 4.07% and 3.70% for the quarter ended December 31, 2018. Net interest margin and spread were negatively impacted due to the subordinated debt issuance in December 2018, and fewer calendar days in the quarter.
Net interest margin and net interest spread (excluding loan discount accretion of $432,000) were 3.92% and 3.52%, respectively, for the quarter ended March 31, 2019, compared to 4.01% and 3.63% (excluding loan discount accretion of $283,000) for the quarter ended December 31, 2018.
The average yield on the loan portfolio was 5.79% for the quarter ended March 31, 2019, compared to 5.72% for the quarter ended December 31, 2018. The average yield on total interest-earning assets was 5.16% for the quarter ended March 31, 2019, compared to 5.13% for the quarter ended December 31, 2018.
Interest Expense
For the quarter ended March 31, 2019, overall cost of funds (which includes noninterest-bearing deposits) increased by nine basis points compared to the quarter ended December 31, 2018. The increase was largely driven by the issuance of subordinated debt in December 2018.
Provision for Loan Losses
During the quarter ended March 31, 2019, Business First recorded a provision for loan losses of $633,000, compared to $939,000 for the quarter ended December 31, 2018. The reserve for the quarter ended December 31, 2018, was negatively impacted by a single, previously identified, impaired loan.
First Quarter 2019 Compared to First Quarter 2018
Net Income and Diluted Earnings Per Share
For the quarter ended March 31, 2019, net income was $5.7 million, or $0.41 per diluted share, compared to net income of $3.1 million, or $0.29 per diluted share, for the quarter ended March 31, 2018. The increase in net income and diluted earnings per share is attributed to the overall growth and efficiency of Business First over the past 12 months.
Core net income, which excludes noncore income and expenses, for the quarter ended March 31, 2019, was $5.6 million, or $0.41 per diluted share, compared to core net income of $3.6 million, or $0.34 per diluted share, for the quarter ended March 31, 2018. Notable noncore events impacting earnings included the incurrence of $512,000 in noninterest expenses related to acquisition-related activities for the quarter ended March 31, 2018.
Return on Assets and Equity
Return on average assets and return on average equity, each on an annualized basis, increased to 1.09% and 8.62%, respectively, for the quarter ended March 31, 2019, from 0.77% and 6.94%, respectively, for the quarter ended March 31, 2018.
As adjusted, core return on average assets and core return on average equity, each on an annualized basis, were 1.08% and 8.57%, respectively, for the quarter ended March 31, 2019, compared to 0.88% and 7.96%, respectively, for the quarter ended March 31, 2018.
Interest Income
For the quarter ended March 31, 2019, net interest income totaled $19.1 million and net interest margin and net interest spread were 4.01% and 3.61%, respectively, compared to $14.5 million, 3.97% and 3.75% for the quarter ended March 31, 2018.
Net interest margin and net interest spread (excluding loan discount accretion of $432,000) were 3.92% and 3.52%, respectively, for the quarter ended March 31, 2019, compared to 3.86% and 3.64% (excluding loan discount accretion of $385,000) for the quarter ended March 31, 2018. As previously mentioned, the issuance of subordinated debt in December 2018 negatively impacted the net interest margin and spread for the quarter ended March 31, 2019.
The average yield on the loan portfolio was 5.79% for the quarter ended March 31, 2019, compared to 5.32% for the quarter ended March 31, 2018. The average yield on total interest-earning assets was 5.16% for the quarter ended March 31, 2019, compared to 4.72% for the quarter ended March 31, 2018.
Interest Expense
For the quarter ended March 31, 2019, overall cost of funds (which includes noninterest-bearing deposits) increased by 45 basis points compared to the quarter ended March 31, 2018. The increase is largely attributed to an overall increase in interest rates over the past 12 months and the issuance of subordinated debt in December 2018.
Provision for Loan Losses
During the quarter ended March 31, 2019, Business First recorded a provision for loan losses of $633,000, compared to $474,000 for the quarter ended March 31, 2018.
About Business First Bancshares, Inc.
Business First Bancshares, Inc., through its banking subsidiary Business First Bank, operates 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."
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.
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 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 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) |
|||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
(Dollars in thousands) |
2019 |
2018 |
2018 |
2018 |
2018 |
Balance Sheet Ratios |
|||||
Loans (HFI) to Deposits |
90.93% |
88.15% |
95.86% |
92.82% |
91.11% |
Shareholdersʼ Equity to Assets Ratio |
12.81% |
12.41% |
12.69% |
12.77% |
11.34% |
Tangible Common Equity to Tangible Assets (Non-GAAP) |
10.37% |
9.95% |
10.75% |
10.78% |
9.21% |
Loans Receivable Held for Investment |
|||||
Commercial |
$ 389,855 |
$ 363,640 |
$ 317,889 |
$ 298,967 |
$ 290,427 |
Real Estate: |
|||||
Construction and Land |
211,888 |
211,054 |
196,404 |
204,099 |
191,220 |
Farmland |
44,066 |
45,989 |
26,882 |
15,173 |
14,498 |
1-4 Family Residential |
275,610 |
270,583 |
234,690 |
224,986 |
218,623 |
Multi-Family Residential |
39,548 |
39,273 |
22,109 |
22,511 |
25,884 |
Nonfarm Nonresidential |
550,103 |
518,660 |
432,306 |
399,166 |
390,478 |
Total Real Estate |
1,121,215 |
1,085,559 |
912,391 |
865,935 |
840,703 |
Consumer |
75,112 |
79,270 |
67,679 |
69,129 |
60,320 |
Total Loans |
$ 1,586,182 |
$ 1,528,469 |
$ 1,297,959 |
$ 1,234,031 |
$ 1,191,450 |
Allowance for Loan Losses |
|||||
Balance, Beginning of Period |
$ 11,220 |
$ 10,273 |
$ 9,756 |
$ 9,647 |
$ 8,765 |
Charge-Offs – Quarterly |
(57) |
(19) |
(33) |
(397) |
(23) |
Recoveries – Quarterly |
22 |
27 |
47 |
32 |
431 |
Provision for Loan Losses – Quarterly |
633 |
939 |
503 |
474 |
474 |
Balance, End of Period |
$ 11,818 |
$ 11,220 |
$ 10,273 |
$ 9,756 |
$ 9,647 |
Allowance for Loan Losses to Total Loans (HFI) |
0.75% |
0.73% |
0.79% |
0.79% |
0.81% |
Net Charge-Offs (Recoveries) to Average Total Loans |
0.00% |
0.00% |
0.00% |
0.03% |
-0.03% |
Nonperforming Assets |
|||||
Nonperforming Loans: |
|||||
Nonaccrual Loans |
$ 13,183 |
$ 11,691 |
$ 11,341 |
$ 13,884 |
$ 15,030 |
Loans Past Due 90 Days or More |
77 |
1,876 |
256 |
130 |
114 |
Total Nonperforming Loans |
13,260 |
13,567 |
11,597 |
14,014 |
15,144 |
Other Nonperforming Assets: |
|||||
Other Real Estate Owned |
1,683 |
1,909 |
1,824 |
1,273 |
1,282 |
Other Nonperforming Assets |
11 |
11 |
11 |
36 |
13 |
Total Other Nonperforming Assets |
1,694 |
1,920 |
1,835 |
1,309 |
1,295 |
Total Nonperforming Assets |
$ 14,954 |
$ 15,487 |
$ 13,432 |
$ 15,323 |
$ 16,439 |
Nonperforming Loans to Total Loans (HFI) |
0.84% |
0.89% |
0.89% |
1.14% |
1.27% |
Nonperforming Assets to Total Assets |
0.71% |
0.74% |
0.80% |
0.93% |
1.04% |
Business First Bancshares, Inc. |
||||||
Selected Financial Information |
||||||
(Unaudited) |
||||||
Quarter Ended |
||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
||
(Dollars in thousands, except per share data) |
2019 |
2018 |
2018 |
2018 |
2018 |
|
Per Share Data |
||||||
Basic Earnings per Common Share |
$ 0.43 |
$ 0.28 |
$ 0.34 |
$ 0.34 |
$ 0.30 |
|
Diluted Earnings per Common Share |
0.41 |
0.28 |
0.33 |
0.33 |
0.29 |
|
Dividends per Common Share |
0.08 |
0.08 |
0.08 |
0.08 |
0.06 |
|
Book Value per Common Share |
20.14 |
19.68 |
18.46 |
18.26 |
17.52 |
|
Tangible Book Value per Common Share (Non-GAAP) |
15.86 |
15.34 |
15.30 |
15.07 |
13.90 |
|
Average Common Shares Outstanding |
13,287,560 |
12,099,659 |
11,533,374 |
10,607,369 |
10,232,933 |
|
Average Diluted Shares Outstanding |
13,653,125 |
12,521,017 |
11,993,734 |
11,064,638 |
10,578,755 |
|
End of Period Common Shares Outstanding |
13,361,482 |
13,213,280 |
11,533,721 |
11,533,171 |
10,271,931 |
|
Annualized Performance Ratios |
||||||
Return on Average Assets |
1.09% |
0.75% |
0.94% |
0.90% |
0.77% |
|
Return on Average Equity |
8.62% |
6.03% |
7.37% |
7.75% |
6.94% |
|
Net Interest Margin |
4.01% |
4.07% |
4.05% |
3.98% |
3.97% |
|
Net Interest Spread |
3.61% |
3.70% |
3.70% |
3.70% |
3.75% |
|
Efficiency Ratio (1) |
64.35% |
73.51% |
69.08% |
70.81% |
73.57% |
|
Other Operating Expenses |
||||||
Salaries and Employee Benefits |
$ 8,552 |
$ 7,444 |
$ 7,190 |
$ 6,524 |
$ 6,704 |
|
Occupancy and Bank Premises |
1,103 |
877 |
914 |
861 |
857 |
|
Depreciation and Amortization |
628 |
484 |
417 |
407 |
422 |
|
Data Processing |
616 |
397 |
395 |
355 |
410 |
|
FDIC Assessment Fees |
150 |
276 |
221 |
331 |
393 |
|
Legal and Other Professional Fees |
318 |
456 |
328 |
509 |
402 |
|
Advertising and Promotions |
327 |
422 |
290 |
298 |
229 |
|
Utilities and Communications |
298 |
238 |
294 |
269 |
272 |
|
Ad Valorem Shares Tax |
345 |
170 |
321 |
322 |
322 |
|
Directorsʼ Fees |
205 |
92 |
93 |
92 |
159 |
|
Other Real Estate Owned Expenses and Write-Downs |
27 |
- |
- |
7 |
2 |
|
Merger- and Conversion-Related Expenses |
(254) |
1,959 |
138 |
415 |
512 |
|
Other |
1,475 |
1,594 |
1,269 |
1,635 |
1,260 |
|
Total Other Expenses |
$ 13,790 |
$ 14,409 |
$ 11,870 |
$ 12,025 |
$ 11,944 |
|
(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) |
|||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
(Dollars in thousands) |
2019 |
2018 |
2018 |
2018 |
2018 |
Assets |
|||||
Cash and Due From Banks |
$ 52,606 |
$ 96,072 |
$ 45,941 |
$ 45,861 |
$ 37,627 |
Federal Funds Sold |
30,093 |
41,836 |
5,934 |
32,522 |
11,730 |
Securities Available for Sale, at Fair Values |
304,122 |
309,516 |
243,585 |
252,139 |
262,988 |
Mortgage Loans Held for Sale |
753 |
58 |
280 |
- |
147 |
Loans and Lease Receivable |
1,586,182 |
1,528,469 |
1,297,959 |
1,234,031 |
1,191,450 |
Allowance for Loan Losses |
(11,818) |
(11,220) |
(10,273) |
(9,756) |
(9,647) |
Net Loans and Lease Receivable |
1,574,364 |
1,517,249 |
1,287,686 |
1,224,275 |
1,181,803 |
Premises and Equipment, Net |
27,014 |
15,114 |
10,022 |
10,537 |
10,424 |
Accrued Interest Receivable |
7,054 |
8,223 |
5,188 |
5,268 |
4,700 |
Other Equity Securities |
8,508 |
9,282 |
10,339 |
10,064 |
9,381 |
Other Real Estate Owned |
1,683 |
1,909 |
1,824 |
1,273 |
1,282 |
Cash Value of Life Insurance |
32,050 |
31,882 |
24,442 |
24,275 |
24,109 |
Deferred Taxes, Net |
3,077 |
3,848 |
4,359 |
3,888 |
4,155 |
Goodwill |
49,534 |
49,488 |
32,427 |
32,552 |
32,816 |
Core Deposit Intangible |
7,655 |
7,885 |
4,103 |
4,234 |
4,366 |
Other Assets |
2,887 |
2,534 |
2,065 |
2,319 |
2,185 |
Total Assets |
$ 2,101,400 |
$ 2,094,896 |
$ 1,678,195 |
$ 1,649,207 |
$ 1,587,713 |
Liabilities |
|||||
Deposits: |
|||||
Noninterest-Bearing |
$ 396,775 |
$ 382,354 |
$ 311,170 |
$ 305,314 |
$ 297,845 |
Interest-Bearing |
1,347,608 |
1,351,580 |
1,042,901 |
1,024,179 |
1,009,893 |
Total Deposits |
1,744,383 |
1,733,934 |
1,354,071 |
1,329,493 |
1,307,738 |
Securities Sold Under Agreements to Repurchase |
11,070 |
12,229 |
14,310 |
13,604 |
15,434 |
Short-Term Borrowings |
- |
- |
862 |
862 |
862 |
Long-Term Borrowings |
- |
- |
2,400 |
2,700 |
2,700 |
Subordinated Debt |
25,000 |
25,000 |
- |
- |
- |
Federal Home Loan Bank Borrowings |
30,000 |
55,000 |
85,000 |
85,000 |
75,000 |
Accrued Interest Payable |
2,039 |
1,374 |
1,336 |
1,197 |
1,104 |
Other Liabilities |
19,764 |
7,301 |
7,255 |
5,722 |
4,881 |
Total Liabilities |
1,832,256 |
1,834,838 |
1,465,234 |
1,438,578 |
1,407,719 |
Shareholdersʼ Equity |
|||||
Common Stock |
13,361 |
13,213 |
11,534 |
11,533 |
10,272 |
Additional Paid-In Capital |
213,537 |
212,332 |
171,345 |
171,193 |
144,441 |
Retained Earnings |
42,576 |
37,982 |
35,460 |
32,483 |
29,666 |
Accumulated Other Comprehensive Loss |
(330) |
(3,469) |
(5,378) |
(4,580) |
(4,385) |
Total Shareholdersʼ Equity |
269,144 |
260,058 |
212,961 |
210,629 |
179,994 |
Total Liabilities and Shareholdersʼ Equity |
$ 2,101,400 |
$ 2,094,896 |
$ 1,678,195 |
$ 1,649,207 |
$ 1,587,713 |
Business First Bancshares, Inc. |
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Consolidated Statements of Income |
||||||
(Unaudited) |
||||||
Quarter Ended |
||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
||
(Dollars in thousands) |
2019 |
2018 |
2018 |
2018 |
2018 |
|
Interest Income: |
||||||
Interest and Fees on Loans |
$ 22,423 |
$ 19,778 |
$ 17,777 |
$ 16,549 |
$ 15,676 |
|
Interest and Dividends on Securities |
1,874 |
1,611 |
1,386 |
1,414 |
1,423 |
|
Interest on Federal Funds Sold and Due From Banks |
290 |
164 |
162 |
128 |
127 |
|
Total Interest Income |
24,587 |
21,553 |
19,325 |
18,091 |
17,226 |
|
Interest Expense: |
||||||
Interest on Deposits |
4,757 |
3,853 |
3,127 |
2,555 |
2,298 |
|
Interest on Borrowings |
710 |
583 |
562 |
560 |
428 |
|
Total Interest Expense |
5,467 |
4,436 |
3,689 |
3,115 |
2,726 |
|
Net Interest Income |
19,120 |
17,117 |
15,636 |
14,976 |
14,500 |
|
Provision for Loan Losses |
633 |
939 |
503 |
474 |
474 |
|
Net Interest Income After Provision for Loan Losses |
18,487 |
16,178 |
15,133 |
14,502 |
14,026 |
|
Other Income: |
||||||
Service Charges on Deposit Accounts |
938 |
869 |
695 |
636 |
610 |
|
Gain (Loss) on Sales of Securities |
- |
7 |
- |
- |
- |
|
Other Income |
1,373 |
1,615 |
852 |
1,370 |
1,125 |
|
Total Other Income |
2,311 |
2,491 |
1,547 |
2,006 |
1,735 |
|
Other Expenses: |
||||||
Salaries and Employee Benefits |
8,552 |
7,444 |
7,190 |
6,524 |
6,704 |
|
Occupancy and Equipment Expense |
1,894 |
1,523 |
1,522 |
1,402 |
1,418 |
|
Other Expenses |
3,344 |
5,442 |
3,158 |
4,099 |
3,822 |
|
Total Other Expenses |
13,790 |
14,409 |
11,870 |
12,025 |
11,944 |
|
Income Before Income Taxes |
7,008 |
4,260 |
4,810 |
4,483 |
3,817 |
|
Provision for Income Taxes |
1,349 |
815 |
910 |
845 |
709 |
|
Net Income |
$ 5,659 |
$ 3,445 |
$ 3,900 |
$ 3,638 |
$ 3,108 |
|
Business First Bancshares, Inc. |
|||||||||||
Consolidated Net Interest Margin |
|||||||||||
(Unaudited) |
|||||||||||
Quarter Ended |
|||||||||||
March 31, 2019 |
December 31, 2018 |
March 31, 2018 |
|||||||||
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 |
$ 1,549,887 |
$ 22,423 |
5.79% |
$ 1,383,526 |
$ 19,778 |
5.72% |
$ 1,178,146 |
$ 15,676 |
5.32% |
||
Securities Available for Sale |
309,768 |
1,874 |
2.42% |
270,511 |
1,611 |
2.38% |
245,098 |
1,423 |
2.32% |
||
Interest-Bearing Deposit in Other Banks |
45,215 |
290 |
2.57% |
27,203 |
164 |
2.41% |
37,634 |
127 |
1.35% |
||
Total Interest-Earning Assets |
1,904,870 |
24,587 |
5.16% |
1,681,240 |
21,553 |
5.13% |
1,460,878 |
17,226 |
4.72% |
||
Allowance for Loan Losses |
(11,390) |
(10,451) |
(8,965) |
||||||||
Noninterest-Earning Assets |
182,203 |
156,809 |
162,837 |
||||||||
Total Assets |
$ 2,075,683 |
$ 24,587 |
$ 1,827,598 |
$ 21,553 |
$ 1,614,750 |
$ 17,226 |
|||||
Liabilities and Shareholdersʼ Equity |
|||||||||||
Interest-Bearing Liabilities |
|||||||||||
Interest-Bearing Deposits |
$ 1,335,413 |
$ 4,757 |
1.42% |
$ 1,138,786 |
$ 3,853 |
1.35% |
$ 1,026,014 |
$ 2,298 |
0.90% |
||
Subordinated Debt |
25,000 |
416 |
6.66% |
8,333 |
69 |
3.31% |
- |
- |
0.00% |
||
Advances from Federal Home Loan Bank ("FHLB") |
37,527 |
281 |
3.00% |
82,419 |
462 |
2.24% |
75,108 |
373 |
1.99% |
||
Other Borrowings |
12,482 |
13 |
0.42% |
11,466 |
52 |
1.81% |
21,729 |
55 |
1.01% |
||
Total Interest-Bearing Liabilities |
1,410,422 |
5,467 |
1.55% |
1,241,004 |
4,436 |
1.43% |
1,122,851 |
2,726 |
0.97% |
||
Noninterest-Bearing Liabilities |
|||||||||||
Noninterest-Bearing Deposits |
393,816 |
349,915 |
307,424 |
||||||||
Other Liabilities |
8,764 |
8,183 |
5,377 |
||||||||
Total Noninterest-Bearing Liabilities |
402,580 |
358,098 |
312,801 |
||||||||
Shareholdersʼ Equity |
262,681 |
228,496 |
179,098 |
||||||||
Total Liabilities and Shareholdersʼ Equity |
$ 2,075,683 |
$ 1,827,598 |
$ 1,614,750 |
||||||||
Net Interest Spread |
3.61% |
3.70% |
3.75% |
||||||||
Net Interest Income |
$ 19,120 |
$ 17,117 |
$ 14,500 |
||||||||
Net Interest Margin |
4.01% |
4.07% |
3.97% |
||||||||
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing a 30/360 day count convention. |
|||||||||||
Business First Bancshares, Inc. |
|||||
Non-GAAP Measures |
|||||
(Unaudited) |
|||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
|
(Dollars in thousands, except per share data) |
2019 |
2018 |
2018 |
2018 |
2018 |
Tangible Common Equity |
|||||
Total Shareholdersʼ Equity |
$ 269,144 |
$ 260,058 |
$ 212,961 |
$ 210,629 |
$ 179,994 |
Adjustments: |
|||||
Goodwill |
(49,534) |
(49,488) |
(32,427) |
(32,552) |
(32,816) |
Core Deposit and Other Intangibles |
(7,655) |
(7,885) |
(4,103) |
(4,234) |
(4,366) |
Total Tangible Common Equity |
$ 211,955 |
$ 202,685 |
$ 176,431 |
$ 173,843 |
$ 142,812 |
Tangible Assets |
|||||
Total Assets |
$ 2,101,400 |
$ 2,094,896 |
$ 1,678,195 |
$ 1,649,207 |
$ 1,587,713 |
Adjustments: |
|||||
Goodwill |
(49,534) |
(49,488) |
(32,427) |
(32,552) |
(32,816) |
Core Deposit and Other Intangibles |
(7,655) |
(7,885) |
(4,103) |
(4,234) |
(4,366) |
Total Tangible Assets |
$ 2,044,211 |
$ 2,037,523 |
$ 1,641,665 |
$ 1,612,421 |
$ 1,550,531 |
Common Shares Outstanding |
13,361,482 |
13,213,280 |
11,533,721 |
11,533,171 |
10,271,931 |
Book Value per Common Share |
$ 20.14 |
$ 19.68 |
$ 18.46 |
$ 18.26 |
$ 17.52 |
Tangible Book Value per Common Share |
$ 15.86 |
$ 15.34 |
$ 15.30 |
$ 15.07 |
$ 13.90 |
Common Equity to Total Assets |
12.81% |
12.41% |
12.69% |
12.77% |
11.34% |
Tangible Common Equity to Tangible Assets |
10.37% |
9.95% |
10.75% |
10.78% |
9.21% |
Business First Bancshares, Inc. |
||||||||
Non-GAAP Measures |
||||||||
(Unaudited) |
||||||||
Quarter Ended |
||||||||
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
||||
(Dollars in thousands, except per share data) |
2019 |
2018 |
2018 |
2018 |
2018 |
|||
Core Net Income |
||||||||
Net Income |
$ 5,659 |
$ 3,445 |
$ 3,900 |
$ 3,638 |
$ 3,108 |
|||
Adjustments: (1) |
||||||||
Income |
||||||||
Sale of Participation Interest in Impaired Credit |
- |
(87) |
- |
- |
- |
|||
Tax Impact |
- |
18 |
- |
- |
- |
|||
(Gains) Losses on Former Bank Premises and Equipment |
- |
(494) |
139 |
- |
- |
|||
Tax Impact |
- |
104 |
(29) |
- |
- |
|||
(Gains) Losses on Sale of Securities |
- |
(7) |
- |
- |
- |
|||
Tax Impact |
- |
1 |
- |
- |
- |
|||
Expense |
||||||||
Employee Share Awards – NASDAQ Listing |
- |
- |
- |
118 |
- |
|||
Tax Impact |
- |
- |
- |
(25) |
- |
|||
Acquisition-Related Expenses |
(50) |
2,132 |
509 |
415 |
512 |
|||
Tax Impact |
16 |
(410) |
(90) |
(68) |
(55) |
|||
Core Net Income |
$ 5,625 |
$ 4,702 |
$ 4,429 |
$ 4,078 |
$ 3,565 |
|||
Average Common Shares Outstanding |
13,287,560 |
12,099,659 |
11,533,374 |
10,607,369 |
10,232,933 |
|||
Average Diluted Shares Outstanding |
13,653,125 |
12,521,017 |
11,993,734 |
11,064,638 |
10,578,755 |
|||
Core Earnings per Share – Basic |
$ 0.42 |
$ 0.39 |
$ 0.38 |
$ 0.38 |
$ 0.35 |
|||
Core Earnings per Share – Diluted |
$ 0.41 |
$ 0.38 |
$ 0.37 |
$ 0.37 |
$ 0.34 |
|||
Total Quarterly/Year-to-Date Average Assets |
$ 2,075,683 |
$ 1,827,598 |
$ 1,666,117 |
$ 1,624,195 |
$ 1,614,750 |
|||
Total Quarterly/Year-to-Date Average Equity |
$ 262,681 |
$ 228,496 |
$ 211,631 |
$ 187,764 |
$ 179,098 |
|||
Core Return on Average Assets |
1.08% |
1.03% |
1.06% |
1.00% |
0.88% |
|||
Core Return on Average Equity |
8.57% |
8.23% |
8.37% |
8.69% |
7.96% |
|||
Core Efficiency Ratio |
||||||||
Noninterest Expense |
13,790 |
14,409 |
11,870 |
12,025 |
11,944 |
|||
Core Adjustments |
50 |
(2,132) |
(509) |
(533) |
(512) |
|||
Net Interest and Noninterest Income (2) |
21,431 |
19,601 |
17,183 |
16,982 |
16,235 |
|||
Core Adjustments |
- |
(581) |
139 |
- |
- |
|||
Core Efficiency Ratio |
64.58% |
64.55% |
65.59% |
67.67% |
70.42% |
|||
Net Interest Income |
||||||||
Net Interest Income |
$ 19,120 |
$ 17,117 |
$ 15,636 |
$ 14,976 |
$ 14,500 |
|||
Adjustments: |
||||||||
Discount Accretion |
(432) |
(283) |
(268) |
(342) |
(385) |
|||
Net Interest Income Excluding Loan Discount Accretion |
$ 18,688 |
$ 16,834 |
$ 15,368 |
$ 14,634 |
$ 14,115 |
|||
Total Average Interest-Earnings Assets |
$ 1,904,870 |
$ 1,681,240 |
$ 1,543,820 |
$ 1,505,289 |
$ 1,460,878 |
|||
Net Interest Margin Excluding Loan Discount Accretion (3) |
3.92% |
4.01% |
3.98% |
3.89% |
3.86% |
|||
Net Interest Spread Excluding Loan Discount Accretion |
3.52% |
3.63% |
3.63% |
3.61% |
3.64% |
|||
(1) Tax rates utilized, exclusive of certain nondeductible acquisition-related expenses, were 21% for 2019 and 2018. These rates approximated the marginal tax rates. |
||||||||
(2) Excludes gains/losses on sales of securities. |
||||||||
(3) Calculated utilizing a 30/360 day count convention. |
||||||||
SOURCE Business First Bancshares, Inc.
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