ex_141447.htm

FOR IMMEDIATE RELEASE

Misty Albrecht

April 23, 2019

Business First Bank

Misty.Albrecht@b1BANK.com

EX-99.1 2 ex_141447.htm EXHIBIT 99.1 ex_141447.htm

Exhibit 99.1

BUSINESS FIRST BANCSHARES, INC., ANNOUNCES FINANCIAL RESULTS FOR Q1 2019

Baton Rouge, LA (April 23, 2019) – 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.

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

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.
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.