Document

Baton Rouge, La. (July 25, 2024) – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended June 30, 2024, including net income available to common shareholders of $15.9 million or $0.62 per diluted common share, increases of $3.6 million and $0.14, respectively, compared to the linked quarter ended March 31, 2024. On a non-GAAP basis, core net income for the quarter ended June 30, 2024, which excludes certain income and expenses, was $16.3 million or $0.64 per diluted common share, increases of $3.5 million and $0.14, respectively, from the linked quarter.

On Thursday, July 25, 2024, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the second quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on August 31, 2024, or as soon thereafter as practicable, to the shareholders of record as of August 15, 2024.

•Net Interest Margin (NIM) Expansion. For the quarter ended June 30, 2024, net interest income totaled $54.0 million and net interest margin and net interest spread were 3.45% and 2.47%, respectively, compared to $51.5 million, 3.32% and 2.36% from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.7 million) were 3.34% and 2.37%, respectively, for the quarter ended June 30, 2024, compared to 3.27% and 2.31% (excluding loan discount accretion of $0.8 million) for the linked quarter.

•Noninterest Income Investments. Noninterest income for the quarter ended June 30, 2024, increased $2.8 million or 29.73% from the linked quarter. Significant drivers for the quarter were increased loan sale activity, largely related to a $1.9 million gain on sale from a newly originated USDA loan, as well as increased origination and sale of Small Business Administration (SBA) loans, due to the first quarter acquisition of Waterstone LSP. Additionally, continued progress in the newly formed customer swap business along with improved revenue in service charge fees and debit card and ATM fees improved financial results.

Deposits decreased $9.1 million or 0.16%, 0.66% annualized, for the quarter ended June 30, 2024, compared to the linked quarter. During the quarter ended June 30, 2024, noninterest-bearing deposits increased $15.2 million or 1.17%. The increase in noninterest bearing deposits was attributable to $39.1 million in new account originations as of June 30, 2024. The North Louisiana region produced 37.8% of the new account balances, followed by the Dallas-Fort Worth region and Southwest Louisiana region with 26.3% and 11.5%, respectively.

For the quarter ended June 30, 2024, net interest income totaled $54.0 million, compared to $51.5 million from the linked quarter. Loan and interest-earning asset yields of 7.07% and 6.38%, respectively, increased 19 and 20 basis points, respectively, compared to 6.88% and 6.18% from the linked quarter. Both ratios were impacted positively by a $900,000 increase in loan discount accretion. Net interest margin and net interest spread were 3.45% and 2.47% compared to 3.32% and 2.36%, respectively, for the linked quarter. The overall cost of funds, which include noninterest-bearing deposits, increased from 3.00% to 3.07% or 7 basis points, from the linked quarter due to higher cost deposits.

Non-GAAP net interest income (excluding loan discount accretion of $1.7 million) totaled $52.3 million for the quarter ended June 30, 2024, compared to $50.7 million (excluding loan discount accretion of $0.8 million) from the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.7 million) were 3.34% and 2.37%, respectively, for the quarter ended June 30, 2024, compared to 3.27% and 2.31% (excluding loan discount accretion of $0.8 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 13 basis points to 6.94% from 6.81%, and interest earnings asset yields increased 15 basis points to 6.28% from 6.13%, compared to the linked quarter.

Executive management will host a conference call and webcast to discuss results on Thursday, July 25, 2024, at 4:00 p.m. Central Time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 9962250, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/8tfqtsaw. On the day of the presentation, the corresponding slide presentation will be available to view on the b1BANK website at https://www.b1bank.com/shareholder-info.

Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.7 billion in assets, $6.1 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas and Houston, Texas areas, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.

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. “Core” 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 “core” measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. 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 Business First’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.

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. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.

For additional information about Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (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.

This communication is being made with respect to the proposed transaction involving BFST and Oakwood. This material is not a solicitation of any vote or approval of the Oakwood shareholders and is not a substitute for the proxy statement/prospectus or any other documents that BFST and Oakwood may send to their respective shareholders in connection with the proposed transaction. This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities.

In connection with the proposed transaction between BFST and Oakwood, BFST has filed with the SEC a Registration Statement on Form S-4 (the “Registration Statement”), which will include a proxy statement of Oakwood and a prospectus of BFST, as well as other relevant documents concerning the proposed transaction. Before making any voting or investment decisions, investors and shareholders are urged to read carefully the Registration Statement and the proxy statement/prospectus regarding the proposed transaction, as well as any other relevant documents filed with the SEC and any amendments or supplements to those documents, because they will contain important information. Oakwood will mail the proxy statement/prospectus to its shareholders. Shareholders are also urged to carefully review and consider BFST’s public filings with the SEC, including, but not limited to, its proxy statements, its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, and its Current Reports on Form 8-K. Copies of the Registration Statement and proxy statement/prospectus and other filings incorporated by reference therein, as well as other filings containing information about BFST, may be obtained, free of charge, as they become available at the SEC’s website at www.sec.gov. You will also be able to obtain these documents, when they are filed, free of charge, from BFST at www.b1BANK.com. Copies of the proxy statement/prospectus can also be obtained, when they become available, free of charge, by directing a request to Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, LA 70801, Attention: Corporate Secretary, Telephone: 225-248-7600.

BFST, Oakwood and certain of their respective directors, executive officers and employees may, under the SEC’s rules, be deemed to be participants in the solicitation of proxies of Oakwood’s shareholders in connection with the proposed transaction. Information about BFST’s directors and executive officers is available in its definitive proxy statement relating to its 2024 annual meeting of shareholders, which was filed with the SEC on April 10, 2024, and other documents filed by BFST with the SEC. Other information regarding the persons who may, under the SEC’s rules, be deemed to be participants in the solicitation of proxies of Oakwood’s shareholders in connection with the proposed transaction, and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus regarding the proposed transaction and other relevant materials to be filed with the SEC when they become available. Free copies of these documents may be obtained as described in the preceding paragraph.


Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)

	Three Months Ended
(Dollars in thousands)	June 30, 2024			March 31, 2024			June 30, 2023

Balance Sheet Ratios

Loans (HFI) to Deposits	92.80		%	91.32		%	97.69		%
Shareholders' Equity to Assets Ratio	9.91		%	9.69		%	9.31		%

Loans Receivable Held for Investment (HFI)

Commercial	$	1,520,392		$	1,426,957		$	1,309,222
Real Estate:
Commercial	2,198,119			2,215,889			2,132,044
Construction	637,466			662,013			719,080
Residential	743,876			717,007			675,462
Total Real Estate	3,579,461			3,594,909			3,526,586
Consumer and Other	62,999			66,973			62,929
Total Loans (Held for Investment)	$	5,162,852		$	5,088,839		$	4,898,737

Allowance for Loan Losses

Balance, Beginning of Period	$	41,165		$	40,414		$	41,830
Charge-Offs - Quarterly	(1,426)			(533)			(689)
Recoveries - Quarterly	91			141			104
Provision for Loan Losses - Quarterly	1,582			1,143			768
Balance, End of Period	$	41,412		$	41,165		$	42,013

Allowance for Loan Losses to Total Loans (HFI)	0.80		%	0.81		%	0.86		%
Allowance for Credit Losses to Total Loans (HFI)/(1)	0.86		%	0.88		%	0.93		%
Net Charge-Offs (Recoveries) to Average Quarterly Total Loans	0.03		%	0.01		%	0.01		%

Remaining Loan Purchase Discount	$	9,690		$	11,411		$	17,171

Nonperforming Assets

Nonperforming
Nonaccrual Loans	$	21,008		$	20,778		$	17,006
Loans Past Due 90 Days or More	1,355			855			468
Total Nonperforming Loans	22,363			21,633			17,474
Other Nonperforming Assets:
Other Real Estate Owned	1,983			1,339			1,587
Other Nonperforming Assets	—			—			29
Total other Nonperforming Assets	1,983			1,339			1,616
Total Nonperforming Assets	$	24,346		$	22,972		$	19,090

Nonperforming Loans to Total Loans (HFI)	0.43		%	0.43		%	0.36		%
Nonperforming Loans to Total Assets	0.36		%	0.34		%	0.30		%

(1) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments.


Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)

	Three Months Ended									Six Months Ended
(Dollars in thousands, except per share data)	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023

Per Share Data

Basic Earnings per Common Share	$	0.63		$	0.49		$	0.73		$	1.11		$	1.28
Diluted Earnings per Common Share	0.62			0.48			0.73			1.10			1.27
Dividends per Common Share	0.14			0.14			0.12			0.28			0.24
Book Value per Common Share	23.24			22.64			20.87			23.24			20.87

Average Common Shares Outstanding	25,265,495			25,127,187			25,101,683			25,196,079			25,041,124
Average Diluted Common Shares Outstanding	25,395,614			25,429,194			25,333,372			25,412,142			25,278,145
End of Period Common Shares Outstanding	25,502,175			25,485,383			25,344,168			25,502,175			25,344,168

Annualized Performance Ratios

Return to Common Shareholders on Average Assets (1)	0.95		%	0.74		%	1.18		%	0.84		%	1.04		%
Return to Common Shareholders on Average Common Equity (1)	10.94		%	8.51		%	13.99		%	9.73		%	12.39		%
Net Interest Margin (1)	3.45		%	3.32		%	3.63		%	3.39		%	3.69		%
Net Interest Spread (1)	2.47		%	2.36		%	2.75		%	2.42		%	2.85		%
Efficiency Ratio (2)	65.14		%	69.80		%	60.76		%	67.37		%	61.97		%

Total Quarterly/Year-to-Date Average Assets	$	6,711,173		$	6,667,527		$	6,274,656		$	6,689,350		$	6,198,860
Total Quarterly/Year-to-Date Average Common Equity	583,184			577,643			527,325			580,414			521,992

Other Expenses

Salaries and Employee Benefits	$	25,523		$	25,416		$	22,339		$	50,939		$	45,515
Occupancy and Bank Premises	2,634			2,514			2,406			5,148			4,703
Depreciation and Amortization	1,742			1,676			1,720			3,418			3,430
Data Processing	2,641			2,579			3,035			5,220			4,520
FDIC Assessment Fees	874			828			1,092			1,702			2,025
Legal and Other Professional Fees	1,042			866			961			1,908			1,574
Advertising and Promotions	966			1,145			1,226			2,111			2,374
Utilities and Communications	718			674			720			1,392			1,441
Ad Valorem Shares Tax	900			900			965			1,800			1,930
Directors' Fees	268			282			270			550			539
Other Real Estate Owned Expenses and Write-Downs	71			37			39			108			169
Merger and Conversion-Related Expenses	409			340			68			749			171
Other	5,322			5,265			4,861			10,587			9,990
Total Other Expenses	$	43,110		$	42,522		$	39,702		$	85,632		$	78,381


Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)

	Three Months Ended						Six Months Ended
(Dollars in thousands, except per share data)	June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023

Other Income

Service Charges on Deposit Accounts	$	2,537	$	2,439	$	2,413	$	4,976	$	4,694
Loss on Sales of Securities	—		(1)		(61)		(1)		(62)
Debit Card and ATM Fee Income	1,950		1,776		1,646		3,726		3,216
Bank-Owned Life Insurance Income	627		579		547		1,206		1,071
Gain on Sales of Loans	2,460		139		494		2,599		1,105
Mortgage Origination Income	35		69		56		104		130
Fees and Brokerage Commission	1,875		1,937		1,791		3,812		3,604
Gain on Sales of Other Real Estate Owned	2		63		14		65		223
Gain/(Loss) on Disposal of Other Assets	(15)		—		14		(15)		9
Gain on Sale of Branch	—		—		—		—		—
Gain on Extinguishment of Debt	—		—		941		—		941
Swap Fee Income	285		229		7		514		13
Pass-Through Income from Other Investments	392		294		2,812		686		2,985
Other	2,028		1,862		1,284		3,890		2,417
Total Other Income	$	12,176	$	9,386	$	11,958	$	21,562	$	20,346

(1) Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an actual day count convention.
(2) Noninterest expense (excluding provision for loan losses) divided by noninterest income (excluding security sales gains/losses) plus net interest income less gain/loss on sales of securities.


Business First Bancshares, Inc.
Consolidated Balance Sheets
(Unaudited)


(Dollars in thousands)	June 30, 2024		March 31, 2024		June 30, 2023

Assets

Cash and Due From Banks	$	208,051	$	185,906	$	180,972
Federal Funds Sold	113,587		211,292		173,850
Securities Available for Sale, at Fair Values	875,048		872,903		877,774
Mortgage Loans Held for Sale	680		77		435
Loans and Lease Receivable	5,162,852		5,088,839		4,898,737
Allowance for Loan Losses	(41,412)		(41,165)		(42,013)
Net Loans and Lease Receivable	5,121,440		5,047,674		4,856,724
Premises and Equipment, Net	68,545		68,716		63,037
Accrued Interest Receivable	30,617		29,326		26,861
Other Equity Securities	38,805		34,940		34,824
Other Real Estate Owned	1,983		1,339		1,587
Cash Value of Life Insurance	100,684		100,056		95,302
Deferred Taxes, Net	25,888		26,800		31,553
Goodwill	91,527		91,527		88,543
Core Deposit and Customer Intangibles	10,849		11,372		12,993
Other Assets	16,185		13,630		10,194

Total Assets	$	6,703,889	$	6,695,558	$	6,454,649

Liabilities

Deposits
Noninterest-Bearing	$	1,310,204	$	1,295,050	$	1,429,376
Interest-Bearing	4,253,466		4,277,700		3,585,067
Total Deposits	5,563,670		5,572,750		5,014,443

Securities Sold Under Agreements to Repurchase	18,445		17,207		23,230
Bank Term Funding Program	—		—		300,000
Federal Home Loan Bank Borrowings	305,208		308,206		362,162
Subordinated Debt	99,875		99,933		103,822
Subordinated Debt - Trust Preferred Securities	5,000		5,000		5,000
Accrued Interest Payable	4,517		3,930		7,666
Other Liabilities	42,644		39,498		37,358

Total Liabilities	6,039,359		6,046,524		839,238

Shareholders' Equity

Preferred Stock	71,930		71,930		71,930
Common Stock	25,502		25,485		25,344
Additional Paid-In Capital	397,851		398,511		395,875
Retained Earnings	237,031		224,742		189,115
Accumulated Other Comprehensive Loss	(67,784)		(71,634)		(81,296)

Total Shareholders' Equity	664,530		649,034		600,968

Total Liabilities and Shareholders' Equity	$	6,703,889	$	6,695,558	$	6,454,649


Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)

	Three Months Ended						Six Months Ended
(Dollars in thousands)	June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023

Interest Income:
Interest and Fees on Loans	$	90,604	$	85,947	$	79,223	$	176,551	$	152,991
Interest and Dividends on Securities	5,933		5,599		5,097		11,532		9,879
Interest on Federal Funds Sold and Due From Banks	3,333		4,465		1,528		7,798		2,470
Total Interest Income	99,870		96,011		85,848		195,881		165,340

Interest Expense:
Interest on Deposits	40,900		38,029		23,680		78,929		42,608
Interest on Borrowings	4,961		6,451		8,842		11,412		16,657
Total Interest Expense	45,861		44,480		32,522		90,341		59,265

Net Interest Income	54,009		51,531		53,326		105,540		106,075

Provision for Credit Losses	1,310		1,186		538		2,496		3,760

Net Interest Income After Provision for Credit Losses	52,699		50,345		52,788		103,044		102,315
	—
Other Income:
Service Charges on Deposit Accounts	2,537		2,439		2,413		4,976		4,694
Loss on Sales of Securities	—		(1)		(61)		(1)		(62)
Gain on Sales of Loans	2,460		139		494		2,599		1,105
Other Income	7,179		6,809		9,112		13,988		14,609
Total Other Income	12,176		9,386		11,958		21,562		20,346

Other Expenses:
Salaries and Employee Benefits	25,523		25,416		22,339		50,939		45,515
Occupancy and Equipment Expense	5,717		5,357		5,112		11,074		10,113
Merger and Conversion-Related Expense	409		340		68		749		171
Other Expenses	11,461		11,409		12,183		22,870		22,582
Total Other Expenses	43,110		42,522		39,702		85,632		78,381

Income Before Income Taxes	21,765		17,209		25,044		38,974		44,280

Provision for Income Taxes	4,559		3,639		5,305		8,198		9,516

Net Income	17,206		13,570		19,739		30,776		34,764

Preferred Stock Dividends	1,350		1,350		1,350		2,700		2,700

Net Income Available to Common Shareholders	$	15,856	$	12,220	$	18,389	$	28,076	$	32,064


Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)

	Three Months Ended
	June 30, 2024						March 31, 2024						June 30, 2023
(Dollars in thousands)	Average Outstanding Balance		Interest Earned/Interest Paid		Average Yield/Rate		Average Outstanding Balance		Interest Earned/Interest Paid		Average Yield/Rate		Average Outstanding Balance		Interest Earned/Interest Paid		Average Yield/Rate

Assets
Interest Earning Assets:
Total Loans	$	5,153,642	$	90,604	7.07	%	$	5,026,937	$	85,947	6.88	%	$	4,861,783	$	79,223	6.54	%
Securities	891,384		5,933		2.68	%	888,933		5,599		2.53	%	916,421		5,097		2.23	%
Interest-Bearing Deposit in Other Banks	246,590		3,333		5.44	%	330,260		4,465		5.44	%	117,086		1,528		5.23	%
Total Interest Earning Assets	6,291,616		99,870		6.38	%	6,246,130		96,011		6.18	%	5,895,290		85,848		5.84	%
Allowance for Loan Losses	(41,450)						(40,526)						(42,010)
Noninterest- Earning Assets	461,007						461,923						421,376
Total Assets	$	6,711,173	$	99,870			$	6,667,527	$	96,011			$	6,274,656	$	85,848

Liabilities and Shareholders' Equity

Interest-Bearing Liabilities:
Interest-Bearing Deposits	$	4,268,207	$	40,900	3.85	%	$	4,072,600	$	38,029	3.76	%	$	3,405,221	$	23,680	2.79	%
Subordinated Debt	99,913		1,354		5.45	%	99,972		1,356		5.46	%	108,619		1,251		4.62	%
Subordinated Debt - Trust Preferred Securities	5,000		113		9.09	%	5,000		113		9.09	%	5,000		108		8.66	%
Bank Term Funding Program	—		—		—	%	260,440		2,788		4.31	%	384,816		4,309		4.49	%
Advances from Federal Home Loan Bank (FHLB)	324,691		3,372		4.18	%	223,501		2,094		3.77	%	298,324		3,038		4.08	%
Other Borrowings	19,164		122		2.56	%	16,116		100		2.50	%	22,109		136		2.47	%
Total Interest-Bearing Liabilities	$	4,716,975	$	45,861	3.91	%	$	4,677,629	$	44,480	3.82	%	$	4,224,089	$	32,522	3.09	%

Noninterest-Bearing Liabilities:
Noninterest-Bearing Deposits	$	1,297,085					$	1,282,815					$	1,410,983
Other Liabilities	41,999						57,510						40,329
Total Noninterest-Bearing Liabilities	1,339,084						1,340,325						1,451,312
Shareholders' Equity:
Common Shareholders' Equity	583,184						577,643						527,325
Preferred Equity	71,930						71,930						71,930
Total Shareholders' Equity	655,114						649,573						599,255
Total Liabilities and Shareholders' Equity	$	6,711,173					$	6,667,527					$	6,274,656

Net Interest Spread					2.47	%					2.36	%					2.75	%
Net Interest Income			$	54,009					$	51,531					$	53,326
Net Interest Margin					3.45	%					3.32	%					3.63	%

Overall Cost of Funds					3.07	%					3.00	%					2.31	%
Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention.


Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)

	Six Months Ended
(Dollars in thousands)	June 30, 2024						June 30, 2023
	Average Outstanding Balance		Interest Earned/Interest Paid		Average Yield/Rate		Average Outstanding Balance		Interest Earned/Interest Paid		Average Yield/Rate
Assets

Interest Earning Assets:
Total Loans	$	5,090,289	$	176,551	6.97	%	$	4,790,843	$	152,991	6.44	%
Securities	890,158		11,532		2.61	%	921,958		9,879		2.16	%
Interest-Bearing Deposit in Other Banks	288,426		7,798		5.44	%	87,282		2,470		5.71	%
Total Interest Earning Assets	6,268,873		195,881		6.28	%	5,800,083		165,340		5.75	%
Allowance for Loan Losses	(40,988)						(41,772)
Noninterest- Earning Assets	461,465						440,549
Total Assets	$	6,689,350	$	195,881			$	6,198,860	$	165,340


Liabilities and Shareholders' Equity

Interest-Bearing Liabilities:
Interest-Bearing Deposits	$	4,170,406	$	78,929	3.81	%	$	3,372,358	$	42,608	2.55	%
Subordinated Debt	99,942		2,710		5.45	%	109,634		2,640		4.86	%
Subordinated Debt - Trust Preferred Securities	5,000		226		9.09	%	5,000		206		8.31	%
Bank Term Funding Program	130,220		2,788		4.31	%	207,411		4,689		4.56	%
Advances from Federal Home Loan Bank (FHLB)	274,096		5,466		4.01	%	410,348		8,880		4.36	%
Other Borrowings	17,640		222		2.53	%	21,502		242		2.27	%
Total Interest-Bearing Liabilities	$	4,697,304	$	90,341	3.87	%	$	4,126,253	$	59,265	2.90	%

Noninterest-Bearing Liabilities:
Noninterest-Bearing Deposits	$	1,289,948					$	1,442,084
Other Liabilities	49,754						36,601
Total Noninterest-Bearing Liabilities	1,339,702						1,478,685
Shareholders' Equity:
Common Shareholders' Equity	580,414						521,992
Preferred Equity	71,930						71,930
Total Shareholders' Equity	652,344						593,922
Total Liabilities and Shareholders' Equity	$	6,689,350					$	6,198,860

Net Interest Spread					2.42	%					2.85	%
Net Interest Income			$	105,540					$	106,075
Net Interest Margin					3.39	%					3.69	%

Overall Cost of Funds					3.03	%					2.15	%

Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention.


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)

	Three Months Ended						Six Months Ended
(Dollars in thousands, except per share data)	June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023

Interest Income:
Interest income	$	99,870	$	96,011	$	85,848	$	195,881	$	165,340
Core interest income	99,870		96,011		85,848		195,881		165,340
Interest Expense:
Interest expense	45,861		44,480		32,522		90,341		59,265
Core interest expense	45,861		44,480		32,522		90,341		59,265
Provision for Credit Losses: (b)
Provision for credit losses	1,310		1,186		538		2,496		3,760
Core provision expense	1,310		1,186		538		2,496		3,760
Other Income:
Other income	12,176		9,386		11,958		21,562		20,346
Losses on former bank premises and equipment	—		(50)		—		(50)		—
Losses on sale of securities	—		1		61		1		62
Gain on extinguishment of debt	—		—		(941)		—		(941)
Core other income	12,176		9,337		11,078		21,513		19,467
Other Expense:
Other expense	43,110		42,522		39,702		85,632		78,381
Acquisition-related expenses (2)	(419)		(715)		(68)		(1,134)		(171)
Occupancy and bank premises - storm repair	—		—		—		—		—
Core other expense	42,691		41,807		39,634		84,498		78,210
Pre-Tax Income: (a)
Pre-tax income	21,765		17,209		25,044		38,974		44,280
Losses on former bank premises and equipment	—		(50)		—		(50)		—
Losses on sale of securities	—		1		61		1		62
Gain on extinguishment of debt	—		—		(941)		—		(941)
Acquisition-related expenses (2)	419		715		68		1,134		171
Occupancy and bank premises - storm repair	—		—		—		—		—
Core pre-tax income	22,184		17,875		24,232		40,059		43,572
Provision for Income Taxes: (1)
Provision for income taxes	4,559		3,639		5,305		8,198		9,516
Tax on losses on former bank premises and equipment	—		(11)		—		(11)		—
Tax on losses on sale of securities	—		—		13		—		13
Gain on extinguishment of debt	—		—		(199)		—		(199)
Tax on acquisition-related expenses (2)	2		89		14		91		20
Tax on occupancy and bank premises - storm repair	—		—		—		—		—


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)

	Three Months Ended						Six Months Ended
(Dollars in thousands, except per share data)	June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023
Core provision for income taxes	4,561		3,717		5,133		8,278		9,350

Preferred Dividends:
Preferred dividends	1,350		1,350		1,350		2,700		2,700
Core preferred dividends	1,350		1,350		1,350		2,700		2,700
Net Income Available to Common Shareholders:
Net income available to common shareholders	15,856		12,220		18,389		28,076		32,064
Losses on former bank premises and equipment, net of tax	—		(39)		—		(39)		—
Losses on sale of securities, net of tax	—		1		48		1		49
Gain on extinguishment of debt, net of tax	—		—		(742)		—		(742)
Acquisition-related expenses (2), net of tax	417		626		54		1,043		151
Occupancy and bank premises - storm repair, net of tax	—		—		—		—		—
Core net income available to common shareholders	$	16,273	$	12,808	$	17,749	$	29,081	$	31,522
Pre-tax, pre-provision earnings available to common shareholders (a+b)	$	23,075	$	18,395	$	25,582	$	41,470	$	48,040
Losses on former bank premises and equipment	—		(50)		—		(50)		—
Loss on sale of securities	—		1		61		1		62
Gain on extinguishment of debt	—		—		(941)		—		(941)
Acquisition-related expenses (2)	419		715		68		1,134		171
Occupancy and bank premises - storm repair	—		—		—		—		—
Core pre-tax, pre-provision earnings	$	23,494	$	19,061	$	24,770	$	42,555	$	47,332


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)

	Three Months Ended						Six Months Ended
(Dollars in thousands, except per share data)	June 30, 2024		March 31, 2024		June 30, 2023		June 30, 2024		June 30, 2023

Average Diluted Common Shares Outstanding	25,395,614		25,429,194		25,333,372		25,412,142		25,278,145

Diluted Earnings Per Common Share:
Diluted earnings per common share	$	0.62	$	0.48	$	0.73	$	1.10	$	1.27
Losses on former bank premises and equipment, net of tax	—		—		—		—		—
Loss on sale of securities, net of tax	—		—		—		—		—
Gain on extinguishment of debt, net of tax	—		—		(0.03)		—		(0.03)
Acquisition-related expenses (2), net of tax	0.02		0.02		—		0.04		0.01
Occupancy and bank premises -storm repair, net of tax	—		—		—		—		—
Core diluted earnings per common share	$	0.64	$	0.50	$	0.70	$	1.14	$	1.25

Pre-tax, pre-provision profit diluted earnings per common share	$	0.91	$	0.72	$	1.01	$	1.63	$	1.90
Losses on former bank premises and equipment	—		—		—		—		—
Loss on sale of securities	—		—		—		—		—
Gain on extinguishment of debt	—		—		(0.04)		—		(0.04)
Acquisition-related expenses (2)	0.02		0.03		0.01		0.04		0.01
Occupancy and bank premises - storm repair	—		—		—		—		—
Core pre-tax, pre-provision diluted earnings per common share	$	0.93	$	0.75	$	0.98	$	1.67	$	1.87

(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2024 and 2023. These rates approximated the marginal tax rates.
(2) Includes merger and conversion-related expenses and salary and employee benefits.


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)


(Dollars in thousands, except per share data)	June 30, 2024			March 31, 2024			June 30, 2023

Total Shareholders' (Common) Equity:
Total shareholders' equity	$	664,530		$	649,034		$	600,968
Preferred stock	(71,930)			(71,930)			(71,930)
Total common shareholders' equity	592,600			577,104			529,038
Goodwill	(91,527)			(91,527)			(88,543)
Core deposit and customer intangible	(10,849)			(11,372)			(12,993)
Total tangible common equity	$	490,224		$	474,205		$	427,502


Total Assets:
Total assets	$	6,703,889		$	6,695,558		$	6,454,649
Goodwill	(91,527)			(91,527)			(88,543)
Core deposit and customer intangible	(10,849)			(11,372)			(12,993)
Total tangible assets	$	6,601,513		$	6,592,659		$	6,353,113

Common shares outstanding	25,502,175			25,485,383			25,344,168

Book value per common share	$	23.24		$	22.64		$	20.87
Tangible book value per common share	$	19.22		$	18.61		$	16.87
Common equity to total assets	8.84		%	8.62		%	8.20		%
Tangible common equity to tangible assets	7.43		%	7.19		%	6.73		%


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)

	Three Months Ended									Six Months Ended
(Dollars in thousands, except per share data)	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023

Total Quarterly Average Assets	$	6,711,173		$	6,667,527		$	6,274,656		$	6,689,350		$	6,198,860
Total Quarterly Average Common Equity	$	583,184		$	577,643		$	527,325		$	580,414		$	521,992

Net Income Available to Common Shareholders:
Net income available to common shareholders	$	15,856		$	12,220		$	18,389		$	28,076		$	32,064
Gain on former bank premises and equipment, net of tax	—			(39)			—			(39)			—
Loss on sale of securities, net of tax	—			1			48			1			49
Gain on sale of branch, net of tax	—			—			(742)			—			(742)
Acquisition-related expenses, net of tax	417			626			54			1,043			151
Write-down on former bank premises, net of tax	—			—			—			—			—
Core net income available to common shareholders	$	16,273		$	12,808		$	17,749		$	29,081		$	31,522

Return to common shareholders on average assets (annualized) (2)	0.95		%	0.74		%	1.18		%	0.84		%	1.04		%
Core return on average assets (annualized) (2)	0.98		%	0.77		%	1.13		%	0.87		%	1.03		%
Return to common shareholders on average common equity (annualized) (2)	10.94		%	8.51		%	13.99		%	9.73		%	12.39		%
Core return on average common equity (annualized) (2)	11.22		%	8.92		%	13.50		%	10.08		%	12.18		%

Interest Income:
Interest income	$	99,870		$	96,011		$	85,848		$	195,881		$	165,340
Core interest income	99,870			96,011			85,848			195,881			165,340
Interest Expense:
Interest expense	45,861			44,480			32,522			90,341			59,265
Core interest expense	45,861			44,480			32,522			90,341			59,265
Other Income:
Other income	12,176			9,386			11,958			21,562			20,346
Gain on former bank premises and equipment	—			(50)			—			(50)			—
Loss on sale of securities	—			1			61			1			62
Gain on sale of branch	—			—			(941)			—			(941)
Core other income	12,176			9,337			11,078			21,513			19,467
Other Expense:
Other expense	43,110			42,522			39,702			85,632			78,381
Acquisition-related expenses	(419)			(715)			(68)			(1,134)			(171)
Write-down on former bank premises	—			—			—			—			—
Core other expense	$	42,691		$	41,807		$	39,634		$	84,498		$	78,210


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)

	Three Months Ended									Six Months Ended
(Dollars in thousands, except per share data)	June 30, 2024			March 31, 2024			June 30, 2023			June 30, 2024			June 30, 2023

Efficiency Ratio:
Other expense (a)	$	43,110		$	42,522		$	39,702		$	85,632		$	78,381
Core other expense (c)	$	42,691		$	41,807		$	39,634		$	84,498		$	78,210
Net interest and other income (1) (b)	$	66,185		$	60,918		$	65,345		$	127,103		$	126,483
Core net interest and other income (1) (d)	$	66,185		$	60,868		$	64,404		$	127,053		$	125,542
Efficiency ratio (a/b)	65.14		%	69.80		%	60.76		%	67.37		%	61.97		%
Core efficiency ratio (c/d)	64.50		%	68.68		%	61.54		%	66.51		%	62.30		%

Total Average Interest-Earnings Assets	$	6,291,616		$	6,246,130		$	5,895,290		$	6,268,873		$	5,800,083

Net Interest Income:
Net interest income	$	54,009		$	51,531		$	53,326		$	105,540		$	106,075
Loan discount accretion	$	(1,695)		$	(785)		$	(2,059)		$	(2,480)		$	(4,971)
Net interest income excluding loan discount accretion	$	52,314		$	50,746		$	51,267		$	103,060		$	101,104

Net interest margin (2)	3.45		%	3.32		%	3.63		%	3.39		%	3.69		%
Net interest margin excluding loan discount accretion (2)	3.34		%	3.27		%	3.49		%	3.31		%	3.52		%
Net interest spread (2)	2.47		%	2.36		%	2.75		%	2.42		%	2.85		%
Net interest spread excluding loan discount accretion (2)	2.37		%	2.31		%	2.61		%	2.34		%	2.68		%

(1) Excludes gains/losses on sales of securities.
(2) Calculated utilizing an actual day count convention.


FOR IMMEDIATE RELEASE			Misty Albrecht
July 25, 2024			b1BANK
			225.286.7879
			Misty.Albrecht@b1BANK.com


			500 Laurel Street
			Baton Rouge, LA 70801
			Phone: 877.614.7600