Business First Bank(US:BFST)2023-11-01 16:00Financial Performance - Net income available to common shareholders was $51.2 million for the nine months ended September 30, 2023, an increase of $14.9 million, or 41.1%, from the same period in 2022[51]. - For the three months ended September 30, 2023, net income available to common shareholders was $19.1 million, or $0.76 per share, compared to $13.8 million, or $0.61 per share, for the same period in 2022[55]. - For the nine months ended September 30, 2023, net income available to common shareholders was $51.2 million, or $2.04 per basic share, compared to $36.3 million, or $1.65 per basic share, for the same period in 2022[62]. - Core net income available to common shareholders for Q3 2023 was $18.0 million, or $0.71 per diluted share, compared to $16.4 million, or $0.72 per diluted share in Q3 2022[198]. - For the nine months ended September 30, 2023, core net income available to common shareholders was $49.5 million, or $1.96 per diluted share, compared to $41.2 million, or $1.86 per diluted share for the same period in 2022[199]. Asset and Loan Growth - Total assets increased by $498.3 million, or 8.3%, to $6.5 billion as of September 30, 2023[49]. - Total loans held for investment rose by $314.1 million, or 6.8%, to $4.9 billion[50]. - Total loans increased to $4,829,537, with interest earned of $237,566, reflecting a yield of 6.58% for the nine months ended September 30, 2023[70]. - Average loans outstanding increased to $4,829,537 thousand for the nine months ended September 30, 2023, compared to $4,020,436 thousand for the year ended December 31, 2022, representing a growth of 20.1%[136]. Deposit Trends - Total deposits decreased by $370.4 million, or 7.7%, to $5.2 billion[51]. - Total deposits as of September 30, 2023, were $5.2 billion, an increase of $370.4 million, or 7.7%, compared to $4.8 billion as of December 31, 2022[152]. - Average deposits for the nine months ended September 30, 2023, were $4.9 billion, an increase of $362.8 million, or 8.0%, over the full year average for 2022[155]. Interest Income and Expense - Net interest income for the nine months ended September 30, 2023, was $161.4 million, an increase of $17.9 million, or 12.4%, from the same period in 2022[51]. - Net interest income for the three months ended September 30, 2023, totaled $55.3 million, with a net interest margin of 3.61%[64]. - Overall cost of funds increased by 182 basis points for the three months ended September 30, 2023, compared to the same period in 2022[64]. - Interest income for September 2023 was $93,322 thousand, a 47% increase from $63,473 thousand in September 2022[201]. - Interest expense rose significantly to $38,028 thousand in September 2023, compared to $9,993 thousand in September 2022, marking a 281% increase[201]. Noninterest Income and Expense - Noninterest income sources include service charges, debit card fees, and income from bank-owned life insurance, contributing to overall revenue growth[78]. - Total noninterest income increased by $1.8 million, or 21.8%, from the three months ended September 30, 2022, primarily due to a $424,000 increase in service charges, a $313,000 increase in fees and brokerage commissions, and a $932,000 gain from the sale of a banking center[79]. - Total noninterest expense decreased by $2.3 million, or 5.7%, from the three months ended September 30, 2022, mainly due to a reduction of $3.2 million in merger and conversion related expenses[85]. - For the nine months ended September 30, 2023, total noninterest expense increased by $5.9 million, or 5.3%, primarily attributed to a $5.0 million increase in salaries and employee benefits[86]. Credit Quality and Allowance for Loan Losses - Allowance for loan losses was 0.84% of total loans held for investment, compared to 0.83% as of December 31, 2022[52]. - Nonperforming loans to total loans held for investment ratio was 0.33%, compared to 0.25% as of December 31, 2022[52]. - The allowance for credit losses was $44.5 million, or 0.90% of total loans held for investment, as of September 30, 2023, compared to $38.8 million, or 0.84%, as of December 31, 2022[133]. - Total charge-offs for the nine months ended September 30, 2023, were $5,390 thousand, significantly higher than $2,821 thousand for the same period in 2022, reflecting an increase of 91.5%[136]. Capital Ratios - Capital ratios for Tier 1 Leverage, Common Equity Tier 1, Tier 1 Risk-based, and Total Risk-based Capital were 9.31%, 8.97%, 10.28%, and 12.71%, respectively[54]. - Total capital to risk-weighted assets ratio for the company was 12.71% as of September 30, 2023, slightly down from 12.75% as of December 31, 2022[174]. - Tier 1 capital to risk-weighted assets ratio increased to 10.28% as of September 30, 2023, compared to 10.07% as of December 31, 2022[174]. Market and Strategic Initiatives - The company plans to focus on market expansion and new product development to drive future growth[78]. - The company does not enter into leveraged derivatives or financial options to reduce interest rate risk, managing exposure primarily through balance sheet structuring[188]. - Interest rate risk is reviewed by the asset-liability committee, which considers various factors including earnings impact and regional economies[188].