Business First Bancshares, Inc., Announces Financial Results for Q2 2020

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BATON ROUGE, La., July 29, 2020 (GLOBE NEWSWIRE) — Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended June 30, 2020, including net income of $2.1 million, or $0.11 per diluted share, decreases of $4.8 million and $0.39, respectively, from the quarter ended June 30, 2019. On a non-GAAP basis, core net income for the quarter ended June 30, 2020, which excludes certain income and expenses, was $7.4 million, or $0.41 per diluted share, an increase of $748,000 and decrease of $0.07, respectively, from the quarter ended June 30, 2019. Both net income and diluted earnings per share were adversely impacted for the quarter ended June 30, 2020, by additional provision for loan losses associated with the sustained pressure on the general economy caused by the COVID-19 pandemic and acquisition-related expenses.

The second quarter was simultaneously the most challenging, and in many ways, the most rewarding period weve experienced as a company, said Jude Melville, president and CEO. We stood with our clients during an economic crisis, we consummated a transformative merger during a time of market crisis, and we took care of our people in the midst of a health crisis. I could not be prouder of our team. Well continue to do our part as our regions leading community bank as we recover together in the coming months.

On July 23, 2020, Business Firsts board of directors declared a quarterly dividend based upon financial performance for the second quarter in the amount of $0.10 per share, same as the prior quarter, to the common shareholders of record as of August 15, 2020. The dividend will be paid on August 31, 2020, or as soon thereafter as practicable.

Total loans held for investment increased by $1.2 billion compared to March 31, 2020. The increase was largely attributable to the $893.3 million in net loans acquired from Pedestal, including $86.1 million of SBA PPP loans, and $309.3 million of SBA PPP loans originated by Business First. Excluding the Pedestal acquisition and SBA PPP originations, net organic loan growth was $20.8 million for the quarter ended June 30, 2020, or 3.22% annualized.

Consistent with the quarter ended March 31, 2020, Business Firsts unfunded commitments remained constant throughout the quarter ended June 30, 2020, excluding the increase attributable to the acquisition of Pedestal. Business First has not identified any unusual customer usage of unfunded commitments since the beginning of the COVID 19-panademic in March 2020.

Nonperforming loans as a percentage of total loans held for investment decreased from 0.57% as of March 31, 2020, to 0.39% as of June 30, 2020. Nonperforming assets as a percentage of total assets decreased from 0.59% as of March 31, 2020, to 0.49% as of June 30, 2020. The decreases were attributable to an increase in overall total loans held for investment and total assets from the acquisition of Pedestal during the quarter ended June 30, 2020.

Book value per common share was $18.69 at June 30, 2020, compared to $21.58 at March 31, 2020. The decreases were attributable to the initial book value dilution caused by the acquisition of Pedestal during the quarter ended June 30, 2020.

Total loans held for investment increased by $1.4 billion compared to June 30, 2019, or 82.3%, due primarily to the acquisition of Pedestal and origination of SBA PPP loans during the quarter ended June 30, 2020.

Nonperforming loans as a percentage of total loans held for investment decreased from 0.61% as of June 30, 2019, to 0.39% as of June 30, 2020. Nonperforming assets as a percentage of total assets decreased from 0.58% as of June 30, 2019, to 0.49% as of June 30, 2020. The decreases were attributable to an increase in overall total loans held for investment and total assets from the acquisition of Pedestal during the quarter ended June 30, 2020.

Book value per common share was $18.69 at June 30, 2020, compared to $20.77 at June 30, 2019. The decreases were attributable to the initial book value dilution caused by the acquisition of Pedestal during the quarter ended June 30, 2020.

Results of Operations

Second Quarter 2020 Compared to First Quarter 2020

Net Income and Diluted Earnings Per Share

For the quarter ended June 30, 2020, net income was $2.1 million, or $0.11 per diluted share, compared to net income of $4.5 million, or $0.34 per diluted share, for the quarter ended March 31, 2020. The decreases were largely attributable to the increase in the provision for loan losses, due to the COVID-19 pandemics sustained impact on the general economy, and increase in acquisition-related expenses, offset by increases in investment income from Small Business Investment Companies (SBICs) and interest income from SBA PPP loans.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2020, was $7.4 million, or $0.41 per diluted share, compared to core net income of $5.0 million, or $0.37 per diluted share, for the quarter ended March 31, 2020. Notable events impacting earnings for the quarter ended June 30, 2020, included the incurrence of $6.6 million in acquisition-related expenses, compared to the incurrence of $1.2 million in acquisition-related expenses for the quarter ended March 31, 2020, and $530,000 reduction in income tax expense due to stock option exercises.

Interest Income

For the quarter ended June 30, 2020, net interest income totaled $30.9 million and net interest margin and net interest spread were 3.89% and 3.59%, respectively, compared to $20.2 million, 3.93% and 3.55% for the quarter ended March 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.61% for the quarter ended June 30, 2020, compared to 5.55% for the quarter ended March 31, 2020. The average yield on total interest-earning assets was 4.65% for the quarter ended June 30, 2020, compared to 5.06% for the quarter ended March 31, 2020.  

Net interest margin and net interest spread were positively impacted for the quarter ended June 30, 2020, by additional loan discount, deposit premium, and FHLB premium accretion, an overall higher-yielding loan portfolio from the Pedestal acquisition, and reduction in the overall cost of funds (which includes noninterest-bearing deposits), offset by the full impact of the federal funds rate cuts of 150 basis points during March 2020. The average loan yield (excluding SBA PPP loans) was also impacted by the same factors, excluding the impact of deposit and FHLB premium accretion and cost of funds.

The average yield on total interest-earning assets was negatively impacted for the quarter ended June 30, 2020, due to lower-yielding SBA PPP loans which were originated during the quarter.

Net interest margin and net interest spread (excluding loan discount accretion of $1.5 million) were 3.71% and 3.41%, respectively, for the quarter ended June 30, 2020, compared to 3.88% and 3.49% (excluding loan discount accretion of $290,000) for the quarter ended March 31, 2020.

Interest Expense

For the quarter ended June 30, 2020, overall cost of funds (which includes noninterest-bearing deposits) decreased by 43 basis points, from 1.20% to 0.77%, compared to the quarter ended March 31, 2020. The decrease in cost of funds was partially attributable to the accretion of deposit premium and FHLB premium associated with the Pedestal acquisition ($551,000), but largely attributable to an overall reduction in interest rates on deposit offerings and the lower-yielding deposit portfolio acquired from Pedestal.

Other Income

For the quarter ended June 30, 2020, other income was impacted by an additional $1.2 million in SBIC investment income and additional increases in other categories largely attributable to the Pedestal acquisition, compared to the quarter ended March 31, 2020.

Other Expense

For the quarter ended June 30, 2020, the increases were largely attributable to the Pedestal acquisition, compared to the quarter ended March 31, 2020.

Provision for Loan Losses

During the quarter ended June 30, 2020, Business First recorded a provision for loan losses of $5.4 million, compared to $1.4 million for the quarter ended March 31, 2020. The reserve for the quarter ended June 30, 2020, was impacted significantly by the sustained impact on the general economy of the COVID-19 pandemic.  The increase related to the COVID-19 pandemic was recorded through a qualitative adjustment. 

Return on Assets and Equity

Return on average assets and equity, each on an annualized basis, were 0.23% and 2.35%, respectively, for the quarter ended June 30, 2020, compared to 0.80% and 6.31%, respectively, for the quarter ended March 31, 2020. Both returns were significantly impacted by the provision for loan loss and acquisition-related expenses recorded for the quarter ended June 30, 2020.

Second Quarter 2020 Compared to Second Quarter 2019

Net Income and Diluted Earnings Per Share

For the quarter ended June 30, 2020, net income was $2.1 million, or $0.11 per diluted share, compared to net income of $6.8 million, or $0.50 per diluted share, for the quarter ended June 30, 2020. The decreases in net income and diluted earnings per share were largely attributable to increased provision for loan losses and additional expenses associated with the acquisition of Pedestal on May 1, 2020, offset by increases in net interest income and other income related to the acquisition of Pedestal for the quarter ended June 30, 2020.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended June 30, 2020, was $7.4 million, or $0.41 per diluted share, compared to core net income of $6.6 million, or $0.48 per diluted share, for the quarter ended June 30, 2019. Notable events impacting earnings for the quarter ended June 30, 2020, included the incurrence of $6.6 million in acquisition-related expenses, compared to the incurrence of $436,000 in acquisition-related expenses and a $593,000 gain associated with the sale of a banking center for the quarter ended June 30, 2019.

Interest Income

For the quarter ended June 30, 2020, net interest income totaled $30.9 million and net interest margin and net interest spread were 3.89% and 3.59%, respectively, compared to $20.2 million, 4.19% and 3.75% for the quarter ended June 30, 2019. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.61% for the quarter ended June 30, 2020, compared to 5.96% for the quarter ended June 30, 2019. The average yield on total interest-earning assets was 4.65% for the quarter ended June 30, 2020, compared to 5.37% for the quarter ended June 30, 2019.

Average loan yield (excluding SBA PPP loans), average yield on total interest-earning assets, net interest margin, and net interest spread were impacted for the quarter ended June 30, 2020, by the federal funds rate cuts of 225 basis points which occurred throughout the second half of 2019 and first quarter of 2020. The average yield on total interest-earning assets was also impacted by the lower-yielding SBA PPP loans originated during the quarter ended June 30, 2020.

Net interest margin and net interest spread (excluding loan discount accretion of $1.5 million) were 3.71% and 3.41%, respectively, for the quarter ended June 30, 2020, compared to 4.02% and 3.58% (excluding loan discount accretion of $826,000) for the quarter ended June 30, 2019.

Interest Expense

For the quarter ended June 30, 2020, overall cost of funds (which includes noninterest-bearing deposits) decreased by 49 basis point, from 1.26% to 0.77%, compared to the quarter ended June 30, 2019. The decrease in cost of funds was partially attributable to the accretion of deposit and FHLB premiums associated with the Pedestal acquisition ($551,000), but largely attributable to an overall reduction in interest rates on deposit offerings and the lower-yielding deposit portfolio acquired from Pedestal.

Other Income

For the quarter ended June 30, 2020, the increase was largely attributable to the acquisition of Pedestal, partially offset by the $593,000 gain on sale of a banking center during the quarter ended June 30, 2019.

Other Expense

For the quarter ended June 30, 2020, the increase was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020.

Provision for Loan Losses

During the quarter ended June 30, 2020, Business First recorded a provision for loan losses of $5.4 million compared to $1.3 million for the quarter ended June 30, 2019. The reserve for the quarter ended June 30, 2020, was impacted significantly by the sustained impact on the general economy of the COVID-19 pandemic. 

Return on Assets and Equity

Return on average assets and return on average equity, each on an annualized basis, were 0.23% and 2.35%, respectively, for the quarter ended June 30, 2020, from 1.30% and 10.13%, respectively, for the quarter ended June 30, 2019. Both returns were significantly impacted by the provision for loan loss and acquisition-related expenses recorded for the quarter ended June 30, 2020, in addition to a lower net interest margin for the quarter ended June 30, 2020.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., through its banking subsidiary b1BANK, formerly known as Business First Bank, operates 48 banking centers in markets across Louisiana and in the Dallas, Texas area. b1BANK 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 Firsts 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) 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 managements opinion, can distort period-to-period comparisons of Business Firsts 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, 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 Companys core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.

Special Note Regarding Forward-Looking Statements

Certain statements contained in this release may not be based on historical facts and are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as anticipate, believe, estimate, expect, may, might, will, would, could, or intend. We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. Actual results will also be significantly impacted by the effects of the ongoing COVID-19 pandemic, including, among other effects: the impact of the public health crisis; the extent and duration of closures of businesses, including our branches, vendors and customers; the operation of financial markets; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; the adequacy of our allowance for loan losses in relation to potential losses in our loan portfolio; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. 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 Firsts reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SECs EDGAR service on the SECs 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)  
         
  June 30, March 31, June 30,  
(Dollars in thousands)   2020     2020     2019    
         
Balance Sheet Ratios        
         
Loans (HFI) to Deposits   92.12%     98.26%     96.46%    
Shareholders’ Equity to Assets Ratio   9.75%     12.33%     12.88%    
         
Loans Receivable Held for Investment        
         
Commercial (1) $ 1,026,596   $ 431,992   $ 411,256    
Real Estate:        
Construction and Land   333,675     260,836     227,102    
Farmland   57,498     53,900     47,245    
1-4 Family Residential   495,827     295,876     278,610    
Multi-Family Residential   59,213     32,859     38,698    
Nonfarm Nonresidential   914,601     623,114     561,149    
Total Real Estate   1,860,814     1,266,585     1,152,804    
Consumer (1)   107,402     72,803     78,513    
Total Loans $ 2,994,812   $ 1,771,380   $ 1,642,573    
         
Allowance for Loan Losses        
         
Balance, Beginning of Period $ 13,319   $ 12,124   $ 11,818    
Charge-offs Quarterly   (98 )   (194 )   (1,565 )  
Recoveries Quarterly   51     22     48    
Provision for Loan Losses Quarterly   5,443     1,367     1,302    
Balance, End of Period $ 18,715   $ 13,319   $ 11,603    
         
Allowance for Loan Losses to Total Loans (HFI)   0.62%     0.75%     0.71%    
Net Charge-offs (Recoveries) to Average Total Loans   0.00%     0.01%     0.09%    
         
Remaining Loan Purchase Discount $ 44,302   $ 3,246   $ 3,536    
         
Nonperforming Assets        
         
Nonperforming Loans:        
Nonaccrual Loans (2) $ 11,433   $ 9,301   $ 9,363    
Loans Past Due 90 Days or More (2)   317     834     727    
Total Nonperforming Loans   11,750     10,135     10,090    
Other Nonperforming Assets:        
Other Real Estate Owned   7,642     3,281     2,324    
Other Nonperforming Assets   179     11     6    
Total Other Nonperforming Assets   7,821     3,292     2,330    
Total Nonperforming Assets $ 19,571   $ 13,427   $ 12,420    
         
Nonperforming Loans to Total Loans (HFI)   0.39%     0.57%     0.61%    
Nonperforming Assets to Total Assets   0.49%     0.59%     0.58%    
         
(1) Small Business Administration “SBA” Paycheck Protection Program “PPP” loans accounted for $389.9 million and $5.5 million of the Commercial and Consumer portfolios, respectively, as of June 30, 2020.
         
(2) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.
         
   
Business First Bancshares, Inc.  
Selected Financial Information  
(Unaudited)  
               
  Three Months Ended   Six Months Ended  
  June 30, March 31, June 30,   June 30, June 30,  
(Dollars in thousands, except per share data)   2020     2020     2019       2020     2019    
               
Per Share Data              
               
Basic Earnings per Common Share $ 0.11   $ 0.34   $ 0.51     $ 0.42   $ 0.94    
Diluted Earnings per Common Share   0.11     0.34     0.50       0.42     0.91    
Dividends per Common Share   0.10     0.10     0.10       0.20     0.18    
Book Value per Common Share   18.69     21.58     20.77       18.69     20.77    
               
               
Average Common Shares Outstanding   18,108,068     13,313,154     13,361,482       15,710,611     13,324,725    
Average Diluted Shares Outstanding   18,121,958     13,367,276     13,740,937       15,776,376     13,704,180    
End of Period Common Shares Outstanding   20,667,237     13,067,987     13,361,482       20,667,237     13,361,482    
               
               
Annualized Performance Ratios              
               
Return on Average Assets   0.23%     0.80%     1.30%       0.46%     1.20%    
Return on Average Equity   2.35%     6.31%     10.13%       4.13%     9.38%    
Net Interest Margin   3.89%     3.93%     4.19%       3.91%     4.11%    
Net Interest Spread   3.59%     3.55%     3.75%       3.57%     3.69%    
Efficiency Ratio (1)   77.40%     72.39%     59.85%       75.44%     61.96%    
               
Total Quarterly/Year-to-Date Average Assets $ 3,496,074   $ 2,244,584   $ 2,102,692     $ 2,870,329   $ 2,089,188    
Total Quarterly/Year-to-Date Average Equity   349,634     285,338   $ 270,262       317,486     266,493    
               
Other Expenses              
               
Salaries and Employee Benefits $ 17,621   $ 9,435   $ 8,756     $ 27,056   $ 17,308    
Occupancy and Bank Premises   1,370     1,060     1,079       2,430     2,182    
Depreciation and Amortization   1,073     601     633       1,674     1,261    
Data Processing   1,055     652     576       1,707     1,192    
FDIC Assessment Fees   272     147     248       419     398    
Legal and Other Professional Fees   543     394     353       937     671    
Advertising and Promotions   334     306     279       640     606    
Utilities and Communications   645     317     323       962     621    
Ad Valorem Shares Tax   450     375     345       825     690    
Directors’ Fees   100     74     125       174     330    
Other Real Estate Owned Expenses and Write-Downs   51     253     72       304     99    
Merger and Conversion-Related Expenses   1,726     1,148     235       2,874     (19 )  
Other   2,557     1,881     1,553       4,438     3,028    
Total Other Expenses $ 27,797   $ 16,643   $ 14,577     $ 44,440   $ 28,367    
               
Other Income              
               
Service Charges on Deposit Accounts $ 1,163   $ 931   $ 1,034         2,094   $ 1,972    
Gain on Sales of Securities       25     58         25     58    
Debit card and ATM Fee Income   959     407     492       1,366     937    
Bank-Owned Life Insurance Income   255     197     174       452     342    
Gain on Sales of Loans   7     177     91       184     91    
Mortgage Origination Income   126     115     98       241     188    
Brokerage Commission   236     20     9       256     43    
Correspondent Bank Income   32     109     17       141     225    
Rental Income   15     31     165       46     329    
Gain on Sale of Banking Center           593           593    
Gain (loss) on Sales of Other Real Estate Owned   (19 )   151     5       132     (51 )  
Pass-through Income from SBIC Partnerships   1,624     380     1,266       2,004     1,266    
Other   598     261     217       859     537    
 Total Other Income $ 4,996   $ 2,804   $ 4,219     $ 7,800   $ 6,530    
               
(1) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities.
               
   
Business First Bancshares, Inc.  
Consolidated Balance Sheets  
(Unaudited)  
         
  June 30, March 31, June 30,  
(Dollars in thousands)   2020     2020     2019    
         
Assets        
         
Cash and Due From Banks $ 116,021   $ 80,109   $ 64,043    
Federal Funds Sold   40,329     29,135     20,809    
Securities Available for Sale, at Fair Values   583,118     275,115     294,981    
Mortgage Loans Held for Sale   456     868     443    
Loans and Lease Receivable   2,994,812     1,771,380     1,642,573    
Allowance for Loan Losses   (18,715 )   (13,319 )   (11,603 )  
Net Loans and Lease Receivable   2,976,097     1,758,061     1,630,970    
Premises and Equipment, Net   63,959     29,656     27,577    
Accrued Interest Receivable   33,844     7,724     7,957    
Other Equity Securities   18,681     11,721     11,717    
Other Real Estate Owned   7,642     3,281     2,324    
Cash Value of Life Insurance   44,542     32,765     32,223    
Deferred Taxes, Net   6,858     1,800     2,527    
Goodwill   53,649     48,495     48,503    
Core Deposit Intangible   10,389     6,471     7,139    
Other Assets   5,553     2,461     2,395    
         
Total Assets $ 3,961,138   $ 2,287,662   $ 2,153,608    
         
         
Liabilities        
         
Deposits:        
Noninterest-Bearing $ 985,537   $ 417,534   $ 394,848    
Interest-Bearing   2,265,485     1,385,274     1,308,054    
Total Deposits   3,251,022     1,802,808     1,702,902    
         
Securities Sold Under Agreements to Repurchase   25,391     14,728     16,096    
Short-Term Borrowings   6,145     5,000        
Long-Term Borrowings   7,797            
Payroll Protection Program Liquidity Facility   107,076            
Subordinated Debt   25,000     25,000     25,000    
Trust Preferred Securities   5,000            
Federal Home Loan Bank Borrowings   118,177     138,000     108,000    
Accrued Interest Payable   3,920     1,573     1,924    
Other Liabilities   25,274     18,523     22,217    
         
Total Liabilities   3,574,802     2,005,632     1,876,139    
         
Shareholders’ Equity        
         
Common Stock   20,667     13,068     13,361    
Additional Paid-In Capital   297,606     206,966     213,823    
Retained Earnings   59,850     59,859     48,087    
Accumulated Other Comprehensive Income   8,213     2,137     2,198    
         
Total Shareholders’ Equity   386,336     282,030     277,469    
         
Total Liabilities and Shareholders’ Equity $ 3,961,138   $ 2,287,662   $ 2,153,608    
         
   
Business First Bancshares, Inc.  
Consolidated Statements of Income  
(Unaudited)  
               
    Three Months Ended   Six Months Ended  
  June 30, March 31, June 30,   June 30, June 30,  
(Dollars in thousands) 2020 2020 2019   2020 2019  
               
Interest Income:              
Interest and Fees on Loans $ 34,636 $ 24,143 $ 23,870   $ 58,779 $ 46,293    
Interest and Dividends on Securities   2,175   1,731   1,829     3,906   3,703    
Interest on Federal Funds Sold and Due From Banks   80   142   197     222   487    
Total Interest Income   36,891   26,016   25,896     62,907   50,483    
               
Interest Expense:              
Interest on Deposits   4,795   4,686   5,038     9,481   9,795    
Interest on Borrowings   1,177   1,119   665     2,296   1,375    
Total Interest Expense   5,972   5,805   5,703     11,777   11,170    
               
Net Interest Income   30,919   20,211   20,193     51,130   39,313    
               
Provision for Loan Losses   5,443   1,367   1,302     6,810   1,935    
               
Net Interest Income After Provision for Loan Losses   25,476   18,844   18,891     44,320   37,378    
               
Other Income:              
Service Charges on Deposit Accounts   1,163   931   1,034     2,094   1,972    
Gain on Sales of Securities     25   58     25   58    
Other Income   3,833   1,848   3,127     5,681   4,500    
Total Other Income   4,996   2,804   4,219     7,800   6,530    
               
Other Expenses:              
Salaries and Employee Benefits   17,621   9,435   8,756     27,056   17,308    
Occupancy and Equipment Expense   2,888   1,891   1,884     4,779   3,778    
Merger and Conversion-Related Expense   1,726   1,148   235     2,874   (19 )  
Other Expenses   5,562   4,169   3,702     9,731   7,300    
Total Other Expenses   27,797   16,643   14,577     44,440   28,367    
               
Income Before Income Taxes   2,675   5,005   8,533     7,680   15,541    
               
Provision for Income Taxes   623   506   1,690     1,129   3,039    
               
Net Income $ 2,052 $ 4,499 $ 6,843   $ 6,551 $ 12,502    
               
   
Business First Bancshares, Inc.  
Consolidated Net Interest Margin  
(Unaudited)  
                         
                         
  Three Months Ended  
  June 30, 2020   March 31, 2020   June 30, 2019  
  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 (Excluding SBA PPP) $ 2,304,438   $ 32,306 5.61%     $ 1,740,189   $ 24,143 5.55%     $ 1,602,087   $ 23,870 5.96%    
SBA PPP Loans   321,127     2,330 2.90%         $ 0.00%           0.00%    
Securities Available for Sale   481,422     2,175 1.81%       286,660     1,731 2.42%       303,232     1,829 2.41%    
Interest-Bearing Deposit in Other Banks   69,169     80 0.46%       28,754     142 1.98%       23,716     197 3.32%    
Total Interest-Earning Assets   3,176,156     36,891 4.65%       2,055,603     26,016 5.06%       1,929,035     25,896 5.37%    
Allowance for Loan Losses   (13,606 )         (12,203 )         (11,702 )      
Noninterest-Earning Assets   333,524           201,184           185,359        
Total Assets $ 3,496,074   $ 36,891     $ 2,244,584   $ 26,016     $ 2,102,692   $ 25,896    
                         
                         
Liabilities and Shareholders’ Equity                        
                         
Interest-Bearing Liabilities:                        
Interest-Bearing Deposits $ 1,994,680   $ 4,795 0.96%     $ 1,342,213   $ 4,686 1.40%     $ 1,335,630   $ 5,038 1.51%    
Subordinated Debt   25,000     422 6.75%       25,000     422 6.75%       25,000     429 6.86%    
Advances from Federal Home Loan Bank (“FHLB”)   129,441     526 1.63%       98,323     497 2.02%       36,856     224 2.43%    
Payroll Protection Program Liquidity Facility (“PPPLF”)   76,902     72 0.37%           0.00%           0.00%    
Other Borrowings   36,308     157 1.73%       67,125     200 1.19%       14,390     12 0.33%    
Total Interest-Bearing Liabilities   2,262,331     5,972 1.06%       1,532,661     5,805 1.52%       1,411,876     5,703…
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