Business Context and Reporting Period
Business First Bancshares, Inc. (BFST) filed this Form 8-K on October 12, 2022, to disclose preliminary, unaudited financial results in connection with an underwritten public offering of common stock. The data covers the three and nine months ended September 30, 2022.
Key Financial Metrics
Balance Sheet (As of September 30, 2022)
| Metric | Value ($ Millions) | YTD Annualized Growth |
|---|---|---|
| Total Assets | 5,806.7 | 15% |
| Gross Loans (Held for Investment) | 4,429.9 | 37% |
| Total Deposits | 4,586.1 | 1% |
| Loan/Deposit Ratio | 96.6% | N/A |
Income Statement (Dollars in Millions)
| Metric | Three Months Ended Sept 30, 2022 | Nine Months Ended Sept 30, 2022 |
|---|---|---|
| Interest Income | 63.5 | 161.6 |
| Interest Expense | 10.0 | 18.1 |
| Net Interest Income | 53.5 | 143.5 |
| Total Noninterest Income | 8.1 | 21.0 |
| Total Noninterest Expense | 40.9 | 111.0 |
| Pre-tax, Pre-provision Earnings | 20.6 | 53.5 |
| Core Pre-tax, Provision Earnings (Non-GAAP) | 23.9 | 59.5 |
Performance Ratios (Three Months Ended Sept 30, 2022)
- Net Interest Margin: 4.05% (3.92% excluding loan discount accretion)
- Efficiency Ratio: 66.5% (61.0% on a core basis)
Material Changes and Unusual Items
The filing highlights significant year-to-date organic growth in Gross Loans (37%) compared to modest deposit growth (1%). The company reported specific adjustments to non-GAAP "Core" earnings:
- Q3 Adjustments: Included $3.521 million in acquisition-related expenses and $265,000 in storm expenditure reimbursements.
- YTD Adjustments: Included $5.040 million in acquisition-related expenses, $501,000 in occupancy/repairs, and various income adjustments related to storm reimbursements and asset dispositions.
The filing does not provide comparative financial data for the prior year periods to calculate specific period-over-period changes in revenue or profit.
Guidance, Outlook, and Risks
The financial results presented are preliminary and based on management estimates; they have not been audited or reviewed by the independent auditor, FORVIS, LLP. Actual results may differ materially.
Key Risks and Contingencies:
- Integration risks related to the acquisition of Texas Citizens Bancorp, Inc.
- Impact of the ongoing COVID-19 pandemic.
- Volatility in interest rates and market liquidity.
- Adequacy of the allowance for loan losses.
- General economic conditions in the U.S. and local market areas.
Investor Verification Checklist
- Verify the final audited Q3 2022 results once the 10-Q is filed, as current figures are preliminary.
- Confirm the final terms and proceeds of the underwritten public offering of common stock announced on October 12, 2022.
- Review the detailed reconciliation of Non-GAAP "Core" earnings to GAAP measures in the full investor presentation.
- Assess the impact of the 96.6% loan-to-deposit ratio on future liquidity and funding costs.
- Monitor the integration progress and expense run-rate of the Texas Citizens Bancorp acquisition.