Financial Performance - Total interest income for 2023 was $353.3 million, a 49.8% increase from $236.1 million in 2022[410]. - Net income for 2023 reached $71.0 million, up 30.9% from $54.3 million in 2022[411]. - Net interest income after provision for credit losses was $210.6 million, compared to $188.7 million in 2022, marking an increase of 11.6%[410]. - Total other income increased to $36.6 million in 2023 from $29.3 million in 2022, representing a growth of 24.0%[410]. - Earnings per common share (diluted) for 2023 was $2.59, compared to $2.32 in 2022, an increase of 11.6%[410]. - Other comprehensive income for 2023 was $7.6 million, compared to a loss of $73.0 million in 2022[411]. - Consolidated net income for 2023 was $71,043 million, an increase of 30.9% compared to $54,255 million in 2022[440]. - Net cash provided by operating activities rose to $92,427 million, up 32.8% from $69,577 million in the previous year[440]. - Income tax expense totaled $19.5 million, an increase of $5.2 million, or 36.3%, compared to $14.3 million for the same period in 2022[517]. - Basic earnings per common share increased to $2.62 in 2023 from $2.34 in 2022, reflecting a growth of 11.97%[541]. Loan and Credit Quality - The allowance for loan losses was $40.4 million as of December 31, 2023, reflecting a forward-looking expected loss model[401]. - The company reported a provision for credit losses of $4.5 million in 2023, down from $10.9 million in 2022[410]. - Provision for credit losses decreased to $4,483 million from $10,886 million, indicating improved credit quality[440]. - Nonaccrual loans totaled $16.9 million as of December 31, 2023, compared to $11.1 million in 2022, indicating a rise of 52.3%[555]. - The allowance for credit losses utilizes forward-looking expected loss models, considering various factors affecting lifetime credit losses[488]. Assets and Equity - Total assets increased to $6,584,550,000 as of December 31, 2023, compared to $5,990,460,000 at December 31, 2022, reflecting a growth of approximately 9.9%[432]. - Total shareholders' equity at the end of 2023 reached $644,259,000, up from $580,481,000 in 2022, indicating a year-over-year increase of 11%[414]. - The company’s retained earnings increased to $216,115,000 from $163,955,000, reflecting a growth of about 31.8%[432]. - The total allowance for credit losses was $43.738 million, representing 100.0% of the total[520]. Deposits and Funding - The net increase in deposits for 2023 was $444,780,000, significantly higher than the $265,827,000 increase in 2022[417]. - Total deposits increased to $5,248,790,000, a rise from $4,820,345,000, representing an increase of approximately 8.9%[432]. - The company had outstanding debt of $300.0 million under the BTFP program at December 31, 2023, with a fixed interest rate of 4.38%[524]. - Total commitments to extend credit amounted to $1.35 billion as of December 31, 2023, compared to $1.56 billion in 2022[553]. Acquisitions and Investments - The company completed the acquisition of SSW, a registered investment advisor with approximately $3.5 billion in assets under management, on April 1, 2021[418]. - The acquisition of Texas Citizens Bancorp, Inc. was completed on March 1, 2022, with the issuance of 2,069,532 shares and TCBI reporting total assets of $534.2 million, loans of $349.5 million, and deposits of $477.2 million[478]. - The Company recorded approximately $236,000 and $5.2 million in acquisition-related costs for the years ended December 31, 2023 and 2022, respectively[508]. - Goodwill resulting from the merger was $28.649 million[534]. Cash Management - The company reported a net cash provided by financing activities of $502,084,000 in 2023, down from $715,309,000 in 2022[417]. - The cash and cash equivalents at the end of 2023 were $226,110,000, compared to $152,740,000 at the end of 2022, marking a 48% increase[417]. - Net cash used in investing activities decreased to $521,141 million from $700,521 million, reflecting better cash management[440]. Regulatory and Compliance - The company maintained effective internal control over financial reporting as of December 31, 2023, according to the independent auditor's report[405]. - The company does not anticipate any material changes to critical accounting estimates in the near term[419]. - The Company does not believe it has taken any tax positions requiring additional tax liability as of December 31, 2023, and 2022[469]. Miscellaneous - The company is expanding its market presence in Louisiana and Texas, focusing on full-service banking centers and loan production offices[440]. - The Company adopted ASU 2016-13 on January 1, 2023, changing the allowance for credit losses to a model based on expected losses, resulting in an $827,000 reduction to retained earnings[474][487]. - The fair value of securities available for sale was recorded at $879,571,000, down from $890,751,000, indicating a decrease of approximately 1.9%[432].
Business First Bank(BFST) - 2023 Q4 - Annual Report