Mergers and Acquisitions (Tables)

9 Months Ended

Sep. 30, 2015

Business Combinations [Abstract]

Cost of Acquisition and Allocation of Purchase Price

The following table provides the purchase price calculation as of the merger date and the identifiable assets purchased and the liabilities assumed at their estimated fair values. The purchase price calculation is an estimate, as the cash consideration to shareholders who have exercised their statutory rights of appraisal has not yet been finalized. The fair value measurements are subject to refinement for up to one year after the merger date based on additional information that may be obtained by us that existed as of the merger date.

Cost and Allocation of Purchase Price for American Gateway Financial Corporation (AGFC):

(Dollars in thousands, except per share data)

Purchase Price:
AGFC Shares Outstanding at March 31, 2015	217,944
Gross Business First Shares Issued for AGFC Shares	2,589,174
Exchange Ratio	11.88
Less: Shares Cashed Out Under Terms of Merger	698,186
Net Business First Shares to be Issued for AGFC Shares			1,890,988
Market Value per Share of Business First Stock			17.66
Aggregate Pro Forma Value of Business First Stock Issued in Merger		$	33,395
Aggregate Cash Consideration Paid in Merger			1,595
Cash Paid to Shareholders Exercising Appraisal Rights through September 30, 2015 *			9,419
Total Pro Forma Purchase Price		$	44,409
Net Assets Acquired:
Cash and Cash Equivalents		$	98,489
Securities Available for Sale			108,358
Loans and Leases Receivable			143,223
Premises and Equipment, Net			10,459
Cash Value of Life Insurance			4,326
Other Real Estate Owned			593
Core Deposit Intangible			2,762
Other Assets			3,381
Total Assets			371,591
Noninterest Bearing Deposits			80,865
Interest Bearing Deposits			202,442
Total Deposits			283,307
Borrowings			45,509
Other Liabilities			1,971
Total Liablilites			330,787
Net Assets Acquired			40,804
Goodwill Resulting from Merger		$	3,605

* - Unsettled Appraisal Rights Shares at September 30, 2015 was 53,094.

Summary of Unaudited Pro Forma Results of Operations

The following table provides the unaudited pro forma results of operations for the three and nine month periods ended September 30, 2015 and 2014, as if the acquisition occurred on January 1 of each year. These adjustments reflect the impact of certain purchase accounting fair value measurements, primarily comprised of AGFC’s loan, securities and deposit portfolios. The pro forma financial information is not necessarily indicative of the results of operations that would have occurred had the transaction been effected on the assumed date.

	For The Three Months				For The Nine Months
	Ended September 30,				Ended September 30,
	2015		2014		2015		2014
	(Dollars in thousands, except per share data)
Interest Income	$	10,923	$	9,951	$	30,336	$	30,026
Interest Expense		934		1,406		3,153		4,191
Net Interest Income		9,989		8,545		27,183		25,835
Provision for Loan Losses		150		450		450		950
Net Interest Income after Provision for Loan Losses		9,839		8,095		26,733		24,885
Noninterest Income		786		1,222		2,857		3,738
Noninterest Expense		9,365		7,417		25,039		22,903
Income Before Income Taxes		1,260		1,900		4,551		5,720
Income Tax Expense		358		364		1,298		1,088
Net Income	$	902	$	1,536	$	3,253	$	4,632
Earnings Per Common Share
Basic	$	0.13	$	0.21	$	0.45	$	0.65
Diluted	$	0.12	$	0.21	$	0.43	$	0.62