Business First Bancshares, Inc. Announces Financial Results For Q3 2018
BATON ROUGE, La., Oct. 22, 2018 /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 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 |
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 |
$ 1,258,060 |
$ 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% |
|
SOURCE Business First Bancshares, Inc.
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