Business First Bank(BFST) - 2024 Q4 - Annual Report

Financial Performance - Net income available to common shareholders decreased to $59.7 million, a$ 5.9 million, or 9.0%, decrease from the year ended December 31, 2023[295]. - Core net income available to common shareholders for the year ended December 31, 2024 was $65.8 million, or$ 2.49 per diluted common share, compared to $66.3 million, or$ 2.62 per diluted common share for 2023[424]. - Net income available to common shareholders decreased to $59,706 thousand in 2024 from$ 65,642 thousand in 2023, a decline of 9%[480]. - Earnings per common share (diluted) decreased to $2.26 in 2024 from$ 2.59 in 2023, a decline of 13%[480]. - Pre-tax income for 2023 was $83,051, a decrease of 8.5% from$ 90,586 in 2022[425]. Asset Growth - Total assets increased to $7.9 billion, a$ 1.3 billion, or 19.3%, increase from December 31, 2023[286]. - Total assets grew to $6,973,735 thousand in 2024, compared to$ 6,341,880 thousand in 2023, indicating a growth of 10%[302]. - Total assets increased to $7.86 billion as of December 31, 2024, up from$ 6.58 billion in 2023, representing a growth of about 19.4%[476]. - Average assets increased to $7.0 billion in 2024 from$ 6.3 billion in 2023[390]. Loan Portfolio - Total loans held for investment reached $6.0 billion, a$ 988.6 million, or 19.8%, increase from December 31, 2023[295]. - Total loans increased to $5,327,466 thousand in 2024, up from$ 4,859,637 thousand in 2023, representing a growth of 9.6%[302]. - Total loans held for investment reached $5.98 billion as of December 31, 2024, compared to$ 4.99 billion as of December 31, 2023[340]. - Average loans outstanding for 2024 were $5,327,466 thousand, up from$ 4,859,637 thousand in 2023[355]. - Total loans, excluding mortgage loans held for sale, increased by $988.6 million, or 19.8%, to$ 6.0 billion as of December 31, 2024[325]. Deposit Growth - Total deposits rose to $6.5 billion, a$ 1.3 billion, or 24.1%, increase from December 31, 2023[295]. - Total deposits reached $6.5 billion as of December 31, 2024, marking an increase of$ 1.3 billion or 24.1% from $5.2 billion in 2023[367]. - Average deposits for the year ended December 31, 2024, were$ 5.7 billion, an increase of $733.5 million or 14.7% compared to$ 5.0 billion in 2023[369]. - Noninterest-bearing deposits increased to $1.4 billion as of December 31, 2024, up from$ 1.3 billion, representing a growth of $58.0 million or 4.5%[368]. Interest Income and Expense - Net interest income totaled$ 227.4 million, a $12.3 million, or 5.7%, increase from the year ended December 31, 2023[295]. - Interest income from loans increased to$ 374,555 thousand in 2024, up from $323,327 thousand in 2023, a growth of 16%[480]. - The average rate paid on total interest-bearing deposits rose from 3.00% in 2023 to 3.73% in 2024, driven by federal reserve interest rate hikes[369]. - Total interest-earning assets reached$ 6,536,333 thousand in 2024, an increase from $5,939,405 thousand in 2023, marking an 10.1% growth[302]. Noninterest Income and Expenses - Noninterest income for the year ended December 31, 2024 increased by$ 7.6 million, or 20.6%, to $44.2 million compared to$ 36.6 million in 2023[309]. - Total noninterest expense for the year ended December 31, 2024 increased by $21.0 million, or 13.4%, to$ 177.7 million compared to $156.7 million in 2023[317]. - Other income increased by$ 2.5 million, or 53.0%, for the year ended December 31, 2024 compared to the same period in 2023[314]. Credit Losses and Nonperforming Assets - The provision for credit losses rose to $10.9 million in 2024 from$ 4.5 million in 2023, primarily due to the acquisition of Oakwood[308]. - Nonperforming loans increased to $25.0 million as of December 31, 2024, from$ 17.1 million as of December 31, 2023[344]. - The allowance for credit losses at the end of 2024 was $58.5 million, representing 0.98% of total loans held for investment, an increase from$ 43.7 million or 0.88% in 2023[353]. - Total nonperforming assets reached $30,536 thousand in 2024, compared to$ 18,755 thousand in 2023, marking a 62.9% increase[345]. Capital and Equity - Total shareholders' equity increased to $799.5 million as of December 31, 2024, compared to$ 644.3 million as of December 31, 2023, an increase of $155.2 million, or 24.1%[394]. - Common equity to total assets improved to 9.3% in 2023 from 8.7% in 2022, reflecting a stronger capital position[433]. - The total allowance for credit losses increased to$ 58.528 million in 2024, up from $43.738 million in 2023, indicating a growth of 33.8%[359]. Acquisitions and Mergers - The acquisition of Waterstone was completed on January 31, 2024, for$ 3.3 million in cash[293]. - The merger with Oakwood was consummated on October 1, 2024, with Oakwood having total assets of $863.6 million[294]. - The company reported a CECL impact on the Oakwood acquisition of$ 4.8 million for the year ended December 31, 2024[424]. Regulatory and Compliance - The company reported a material weakness in internal control over financial reporting related to information technology general controls as of December 31, 2024[465]. - The company’s internal control over financial reporting was not effective as of December 31, 2024, based on the criteria established by COSO[466].