“In the third quarter we again delivered solid fundamental shareholder-oriented operating performance,” said b1BANK President & CEO
On
Quarterly Highlights
- Return on Assets and Equity. Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.17% and 14.16%, respectively, for the quarter ended
September 30, 2023 , compared to 1.18% and 13.99%, respectively, for the linked quarter. Non-GAAP core return on average assets and common equity, each on an annualized basis, were 1.10% and 13.32%, respectively, for the quarter endedSeptember 30, 2023 , compared to 1.13% and 13.50%, respectively, for the linked quarter. - Credit Quality. Credit performance remains strong from the linked quarter. The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets were 0.33% and 0.27%, respectively, at
September 30, 2023 , compared to 0.36% and 0.30% atJune 30, 2023 . - Net Interest Margin. For the quarter ended
September 30, 2023 , net interest income totaled$55.3 million and net interest margin and net interest spread were 3.61% and 2.68%, respectively, compared to$53.3 million , 3.63% and 2.75% for the quarter endedJune 30, 2023 . Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of$2.4 million ) were 3.46% and 2.53%, respectively, for the quarter endedSeptember 30, 2023 , compared to 3.49% and 2.61% (excluding loan discount accretion of$2.1 million ) for the quarter endedJune 30, 2023 . Compared to the linked quarter, net interest margin excluding loan discount accretion declined due to the cost of excess on-balance sheet liquidity. - Deposits. Deposits increased
$176.3 million or 3.52%, 13.95% annualized, for the quarter endedSeptember 30, 2023 , compared to the linked quarter. Excluding the$16.3 million of deposits transferred in connection with the sale of theLeesville Banking Center during the quarter, deposits increased$192.6 million or 3.84%, 15.24% annualized. - Loans. Loans held for investment increased
$21.5 million or 0.44%, 1.74% annualized, from the linked quarter.
Statement of Financial Condition
Loans
Loans held for investment increased
Based on unpaid principal balances,
Credit Quality
The ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets improved from 0.36% and 0.30%, respectively, at
Securities
The securities portfolio decreased
Deposits
Deposits increased
Noninterest-bearing deposits decreased
Year-to-date deposit growth through
Borrowings
Borrowings decreased
Shareholders’ Equity
Accumulated other comprehensive income (AOCI) decreased
Results of Operations
Net Interest Income
For the quarter ended
Non-GAAP net interest income (excluding loan discount accretion of
Provision for Credit Losses
During the quarter ended
Other Income
For the quarter ended
Other Expenses
For the quarter ended
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.17% and 14.16%, respectively, for the quarter ended
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on
About
Non-GAAP Financial Measures
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.
Special Note Regarding Forward-Looking Statements
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.
Additional Information
For additional information about Business First, you may obtain Business First’s reports that are filed with the
No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
Selected Financial Information | |||||||||
(Unaudited) | |||||||||
Three Months Ended | |||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | ||||||
Balance Sheet Ratios | |||||||||
Loans (HFI) to Deposits | 94.79 | % | 97.69 | % | 96.59 | % | |||
Shareholders' Equity to Assets Ratio | 9.31 | % | 9.31 | % | 8.75 | % | |||
Loans Receivable Held for Investment (HFI) | |||||||||
Commercial (1) | $ | 1,332,384 | $ | 1,309,222 | $ | 1,080,349 | |||
Real Estate: | |||||||||
Commercial | 2,128,855 | 2,132,044 | 2,014,237 | ||||||
Construction | 708,835 | 719,080 | 636,869 | ||||||
Residential | 686,921 | 675,462 | 647,936 | ||||||
3,524,611 | 3,526,586 | 3,299,042 | |||||||
Consumer and Other | 63,278 | 62,929 | 50,509 | ||||||
Total Loans (Held for Investment) | $ | 4,920,273 | $ | 4,898,737 | $ | 4,429,900 | |||
Allowance for Loan Losses | |||||||||
Balance, Beginning of Period | $ | 42,013 | $ | 41,830 | $ | 32,317 | |||
Charge-offs – Quarterly | (2,423 | ) | (689 | ) | (667 | ) | |||
Recoveries – Quarterly | 685 | 104 | 278 | ||||||
Provision for Loan Losses – Quarterly | 854 | 768 | 3,273 | ||||||
Balance, End of Period | $ | 41,129 | $ | 42,013 | $ | 35,201 | |||
Allowance for Loan Losses to Total Loans (HFI) | 0.84 | % | 0.86 | % | 0.79 | % | |||
Allowance for Credit Losses to Total Loans (HFI) (2) | 0.90 | % | 0.93 | % | 0.81 | % | |||
Net Charge-offs to Average Quarterly Total Loans | 0.04 | % | 0.01 | % | 0.01 | % | |||
Remaining Loan Purchase Discount | $ | 14,752 | $ | 17,171 | $ | 36,089 | |||
Nonperforming Assets | |||||||||
Nonperforming Loans: | |||||||||
Nonaccrual Loans (1) | $ | 16,029 | $ | 17,006 | $ | 9,843 | |||
Loans Past Due 90 Days or More (1) | 247 | 468 | 1,121 | ||||||
Total Nonperforming Loans | 16,276 | 17,474 | 10,964 | ||||||
Other Nonperforming Assets: | |||||||||
Other Real Estate Owned | 1,558 | 1,587 | 840 | ||||||
Other Nonperforming Assets | - | 29 | 180 | ||||||
Total Other Nonperforming Assets | 1,558 | 1,616 | 1,020 | ||||||
Total Nonperforming Assets | $ | 17,834 | $ | 19,090 | $ | 11,984 | |||
Nonperforming Loans to Total Loans (HFI) | 0.33 | % | 0.36 | % | 0.25 | % | |||
Nonperforming Assets to Total Assets | 0.27 | % | 0.30 | % | 0.21 | % | |||
(1) Past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company was currently accreting interest income over the expected life of the loans for the period ended | |||||||||
(2) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments. | |||||||||
Selected Financial Information | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
Per Share Data | ||||||||||||||||
Basic Earnings per Common Share | $ | 0.76 | $ | 0.73 | $ | 0.61 | $ | 2.04 | $ | 1.65 | ||||||
Diluted Earnings per Common Share | 0.76 | 0.73 | 0.61 | 2.02 | 1.64 | |||||||||||
Dividends per Common Share | 0.12 | 0.12 | 0.12 | 0.36 | 0.36 | |||||||||||
Book Value per Common Share | 21.01 | 20.87 | 19.29 | 21.01 | 19.29 | |||||||||||
Average Common Shares Outstanding | 25,111,548 | 25,101,683 | 22,468,939 | 25,064,856 | 21,990,273 | |||||||||||
Average Diluted Common Shares Outstanding | 25,288,660 | 25,333,372 | 22,650,640 | 25,281,908 | 22,163,952 | |||||||||||
End of Period Common Shares Outstanding | 25,344,168 | 25,344,168 | 22,605,136 | 25,344,168 | 22,605,136 | |||||||||||
Annualized Performance Ratios | ||||||||||||||||
Return to Common Shareholders on Average Assets (1) | 1.17 | % | 1.18 | % | 0.96 | % | 1.09 | % | 0.91 | % | ||||||
Return to Common Shareholders on Average Common Equity (1) | 14.16 | % | 13.99 | % | 12.37 | % | 13.00 | % | 10.87 | % | ||||||
Net Interest Margin (1) | 3.61 | % | 3.63 | % | 4.01 | % | 3.66 | % | 3.87 | % | ||||||
Net Interest Spread (1) | 2.68 | % | 2.75 | % | 3.65 | % | 2.79 | % | 3.62 | % | ||||||
Efficiency Ratio (2) | 59.23 | % | 60.76 | % | 66.47 | % | 61.04 | % | 67.48 | % | ||||||
Total Quarterly/Year-to-Date Average Assets | $ | 6,474,935 | $ | 6,274,656 | $ | 5,702,312 | $ | 6,290,886 | $ | 5,331,352 | ||||||
Total Quarterly/Year-to-Date Average Common Equity | 535,211 | 527,325 | 442,778 | 526,398 | 446,403 | |||||||||||
Other Expenses | ||||||||||||||||
Salaries and Employee Benefits | $ | 22,487 | $ | 22,339 | $ | 21,906 | $ | 68,002 | $ | 63,017 | ||||||
Occupancy and Bank Premises | 2,428 | 2,406 | 2,485 | 7,131 | 6,959 | |||||||||||
Depreciation and Amortization | 1,690 | 1,720 | 1,850 | 5,120 | 5,153 | |||||||||||
Data Processing | 2,024 | 3,035 | 2,155 | 6,544 | 6,157 | |||||||||||
FDIC Assessment Fees | 779 | 1,092 | 839 | 2,804 | 2,243 | |||||||||||
Legal and Other Professional Fees | 766 | 961 | 619 | 2,340 | 1,897 | |||||||||||
Advertising and Promotions | 1,202 | 1,226 | 1,144 | 3,576 | 2,378 | |||||||||||
Utilities and Communications | 758 | 720 | 833 | 2,199 | 2,434 | |||||||||||
Ad Valorem Shares Tax | 965 | 965 | 813 | 2,895 | 2,438 | |||||||||||
Directors' Fees | 278 | 270 | 288 | 817 | 702 | |||||||||||
Other Real Estate Owned Expenses and Write-Downs | 14 | 39 | 133 | 183 | 182 | |||||||||||
Merger and Conversion-Related Expenses | 2 | 68 | 3,244 | 173 | 4,670 | |||||||||||
Other | 5,214 | 4,861 | 4,637 | 15,204 | 12,833 | |||||||||||
Total Other Expenses | $ | 38,607 | $ | 39,702 | $ | 40,946 | $ | 116,988 | $ | 111,063 | ||||||
Other Income | ||||||||||||||||
Service Charges on Deposit Accounts | $ | 2,540 | $ | 2,413 | $ | 2,116 | $ | 7,234 | $ | 6,007 | ||||||
Loss on Sales of Securities | - | (61 | ) | (7 | ) | (62 | ) | (46 | ) | |||||||
Debit Card and ATM Fee Income | 1,581 | 1,646 | 1,667 | 4,797 | 4,825 | |||||||||||
Bank-Owned Life Insurance Income | 604 | 547 | 561 | 1,675 | 1,405 | |||||||||||
Gain on Sales of Loans | 321 | 494 | 264 | 1,426 | 515 | |||||||||||
Mortgage Origination Income | 108 | 56 | 57 | 238 | 427 | |||||||||||
1,933 | 1,791 | 1,620 | 5,537 | 5,204 | ||||||||||||
Gain on Sales of Other Real Estate Owned | 85 | 14 | 12 | 308 | 30 | |||||||||||
Gain (Loss) on Disposal of Other Assets | (23 | ) | 14 | 1 | (14 | ) | (716 | ) | ||||||||
Gain on Sale of Branch | 932 | - | - | 932 | - | |||||||||||
Gain on Extinguishment of Debt | 517 | 941 | - | 1,458 | - | |||||||||||
Pass-Through Income (Loss) from Other Investments | (11 | ) | 2,812 | 572 | 2,974 | 739 | ||||||||||
Other | 1,296 | 1,291 | 1,252 | 3,726 | 2,642 | |||||||||||
Total Other Income | $ | 9,883 | $ | 11,958 | $ | 8,115 | $ | 30,229 | $ | 21,032 | ||||||
(1) Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention. | ||||||||||||||||
(2) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities. | ||||||||||||||||
Consolidated Balance Sheets | |||||||||
(Unaudited) | |||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | ||||||
Assets | |||||||||
Cash and Due From Banks | $ | 191,461 | $ | 180,972 | $ | 152,671 | |||
Federal Funds Sold | 196,616 | 173,850 | 11,137 | ||||||
Securities Available for Sale, at Fair Values | 849,704 | 877,774 | 884,960 | ||||||
Mortgage Loans Held for Sale | 652 | 435 | 545 | ||||||
Loans and Lease Receivable | 4,920,273 | 4,898,737 | 4,429,900 | ||||||
Allowance for Loan Losses | (41,129 | ) | (42,013 | ) | (35,201 | ) | |||
Net Loans and Lease Receivable | 4,879,144 | 4,856,724 | 4,394,699 | ||||||
Premises and Equipment, Net | 64,674 | 63,037 | 63,765 | ||||||
Accrued Interest Receivable | 28,060 | 26,861 | 22,454 | ||||||
Other | 32,591 | 34,824 | 39,390 | ||||||
Other Real Estate Owned | 1,558 | 1,587 | 840 | ||||||
Cash Value of Life Insurance | 95,906 | 95,302 | 88,743 | ||||||
Deferred Taxes, Net | 34,660 | 31,553 | 36,691 | ||||||
88,391 | 88,543 | 88,543 | |||||||
Core Deposit and Customer Intangibles | 12,418 | 12,993 | 14,567 | ||||||
Other Assets | 12,946 | 10,194 | 7,686 | ||||||
Total Assets | $ | 6,488,781 | $ | 6,454,649 | $ | 5,806,691 | |||
Liabilities | |||||||||
Deposits | |||||||||
Noninterest-Bearing | $ | 1,412,406 | $ | 1,429,376 | $ | 1,613,310 | |||
Interest-Bearing | 3,778,317 | 3,585,067 | 2,972,795 | ||||||
Total Deposits | 5,190,723 | 5,014,443 | 4,586,105 | ||||||
Securities Sold Under Agreements to Repurchase | 23,245 | 23,230 | 22,072 | ||||||
Federal Funds Purchased | - | - | - | ||||||
Short-Term Borrowings | 9 | 9 | 5,009 | ||||||
Bank Term Funding Program | 300,000 | 300,000 | - | ||||||
Federal Home Loan Bank Borrowings | 214,184 | 362,162 | 534,059 | ||||||
Subordinated Debt | 100,048 | 103,822 | 110,902 | ||||||
Subordinated Debt - Trust Preferred Securities | 5,000 | 5,000 | 5,000 | ||||||
Accrued Interest Payable | 11,188 | 7,666 | 1,023 | ||||||
Other Liabilities | 40,018 | 37,349 | 34,519 | ||||||
Total Liabilities | 5,884,415 | 5,853,681 | 5,298,689 | ||||||
Shareholders' Equity | |||||||||
Preferred Stock | 71,930 | 71,930 | 72,010 | ||||||
Common Stock | 25,344 | 25,344 | 22,605 | ||||||
396,121 | 395,875 | 347,721 | |||||||
Retained Earnings | 205,207 | 189,115 | 150,336 | ||||||
Accumulated Other Comprehensive Loss | (94,236 | ) | (81,296 | ) | (84,670 | ) | |||
Total Shareholders' Equity | 604,366 | 600,968 | 508,002 | ||||||
Total Liabilities and Shareholders' Equity | $ | 6,488,781 | $ | 6,454,649 | $ | 5,806,691 | |||
Consolidated Statements of Income | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(Dollars in thousands) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
Interest Income: | ||||||||||||||||
Interest and Fees on Loans | $ | 84,575 | $ | 79,223 | $ | 58,846 | $ | 237,566 | $ | 148,668 | ||||||
Interest and Dividends on Securities | 5,053 | 5,097 | 4,200 | 14,932 | 12,187 | |||||||||||
Interest on Federal Funds Sold and Due From Banks | 3,694 | 1,528 | 427 | 6,164 | 754 | |||||||||||
Total Interest Income | 93,322 | 85,848 | 63,473 | 258,662 | 161,609 | |||||||||||
Interest Expense: | ||||||||||||||||
Interest on Deposits | 30,110 | 23,680 | 6,286 | 72,718 | 11,106 | |||||||||||
Interest on Borrowings | 7,918 | 8,842 | 3,707 | 24,575 | 6,986 | |||||||||||
Total Interest Expense | 38,028 | 32,522 | 9,993 | 97,293 | 18,092 | |||||||||||
Net Interest Income | 55,294 | 53,326 | 53,480 | 161,369 | 143,517 | |||||||||||
Provision for Credit Losses | 604 | 538 | 3,273 | 4,364 | 7,835 | |||||||||||
Net Interest Income After Provision for Credit Losses | 54,690 | 52,788 | 50,207 | 157,005 | 135,682 | |||||||||||
Other Income: | ||||||||||||||||
Service Charges on Deposit Accounts | 2,540 | 2,413 | 2,116 | 7,234 | 6,007 | |||||||||||
Loss on Sales of Securities | - | (61 | ) | (7 | ) | (62 | ) | (46 | ) | |||||||
Gain on Sales of Loans | 321 | 494 | 264 | 1,426 | 515 | |||||||||||
Other Income | 7,022 | 9,112 | 5,742 | 21,631 | 14,556 | |||||||||||
Total Other Income | 9,883 | 11,958 | 8,115 | 30,229 | 21,032 | |||||||||||
Other Expenses: | ||||||||||||||||
Salaries and Employee Benefits | 22,487 | 22,339 | 21,906 | 68,002 | 63,017 | |||||||||||
Occupancy and Equipment Expense | 5,445 | 5,112 | 5,122 | 15,558 | 14,449 | |||||||||||
Merger and Conversion-Related Expense | 2 | 68 | 3,244 | 173 | 4,670 | |||||||||||
Other Expenses | 10,673 | 12,183 | 10,674 | 33,255 | 28,927 | |||||||||||
Total Other Expenses | 38,607 | 39,702 | 40,946 | 116,988 | 111,063 | |||||||||||
Income Before Income Taxes | 25,966 | 25,044 | 17,376 | 70,246 | 45,651 | |||||||||||
Provision for Income Taxes | 5,511 | 5,305 | 3,576 | 15,027 | 9,363 | |||||||||||
Net Income | 20,455 | 19,739 | 13,800 | 55,219 | 36,288 | |||||||||||
Preferred Stock Dividends | (1,351 | ) | (1,350 | ) | - | (4,051 | ) | - | ||||||||
Net Income Available to Common Shareholders | $ | 19,104 | $ | 18,389 | $ | 13,800 | $ | 51,168 | $ | 36,288 | ||||||
Consolidated Net Interest Margin | ||||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
Average | Average | Average | ||||||||||||||||||||||||
Outstanding | Interest Earned / | Average | Outstanding | Interest Earned / | Average | Outstanding | Interest Earned / | Average | ||||||||||||||||||
(Dollars in thousands) | Balance | Interest Paid | Yield / Rate | Balance | Interest Paid | Yield / Rate | Balance | Interest Paid | Yield / Rate | |||||||||||||||||
Assets | ||||||||||||||||||||||||||
Interest-Earning Assets: | ||||||||||||||||||||||||||
Total Loans | $ | 4,906,917 | $ | 84,575 | 6.84 | % | $ | 4,861,783 | $ | 79,223 | 6.54 | % | $ | 4,281,137 | $ | 58,846 | 5.45 | % | ||||||||
Securities | 885,792 | 5,053 | 2.26 | % | 916,421 | 5,097 | 2.23 | % | 951,479 | 4,200 | 1.75 | % | ||||||||||||||
Interest-Bearing Deposit in Other Banks | 278,420 | 3,694 | 5.26 | % | 117,086 | 1,528 | 5.23 | % | 54,730 | 427 | 3.10 | % | ||||||||||||||
Total Interest-Earning Assets | 6,071,129 | 93,322 | 6.10 | % | 5,895,290 | 85,848 | 5.84 | % | 5,287,346 | 63,473 | 4.76 | % | ||||||||||||||
Allowance for Loan Losses | (42,120 | ) | (42,010 | ) | (33,215 | ) | ||||||||||||||||||||
Noninterest-Earning Assets | 445,926 | 421,376 | 448,181 | |||||||||||||||||||||||
Total Assets | $ | 6,474,935 | $ | 93,322 | $ | 6,274,656 | $ | 85,848 | $ | 5,702,312 | $ | 63,473 | ||||||||||||||
Liabilities and Shareholders' Equity | ||||||||||||||||||||||||||
Interest-Bearing Liabilities: | ||||||||||||||||||||||||||
Interest-Bearing Deposits | $ | 3,703,682 | $ | 30,110 | 3.23 | % | $ | 3,405,221 | $ | 23,680 | 2.79 | % | $ | 3,009,565 | $ | 6,286 | 0.83 | % | ||||||||
Subordinated Debt | 100,400 | 1,363 | 5.39 | % | 108,619 | 1,251 | 4.62 | % | 110,953 | 1,332 | 4.76 | % | ||||||||||||||
Subordinated Debt - Trust Preferred Securities | 5,000 | 111 | 8.81 | % | 5,000 | 108 | 8.66 | % | 5,000 | 68 | 5.40 | % | ||||||||||||||
Bank Term Funding Program | 300,000 | 3,422 | 4.53 | % | 384,816 | 4,309 | 4.49 | % | - | - | 0.00 | % | ||||||||||||||
Advances from | 284,930 | 2,875 | 4.00 | % | 298,324 | 3,038 | 4.08 | % | 396,267 | 2,194 | 2.20 | % | ||||||||||||||
First National Bankers | - | - | 0.00 | % | - | - | 0.00 | % | 5,000 | 70 | 5.55 | % | ||||||||||||||
Other Borrowings | 23,542 | 147 | 2.48 | % | 22,109 | 136 | 2.47 | % | 22,381 | 43 | 0.76 | % | ||||||||||||||
Total Interest-Bearing Liabilities | 4,417,554 | 38,028 | 3.42 | % | 4,224,089 | 32,522 | 3.09 | % | 3,549,166 | 9,993 | 1.12 | % | ||||||||||||||
Noninterest-Bearing Liabilities: | ||||||||||||||||||||||||||
Noninterest-Bearing Deposits | $ | 1,399,293 | $ | 1,410,983 | $ | 1,626,055 | ||||||||||||||||||||
Other Liabilities | 50,947 | 40,329 | 60,310 | |||||||||||||||||||||||
Total Noninterest-Bearing Liabilities | 1,450,240 | 1,451,312 | 1,686,365 | |||||||||||||||||||||||
Shareholders' Equity: | ||||||||||||||||||||||||||
Common Shareholders' Equity | 535,211 | 527,325 | 442,778 | |||||||||||||||||||||||
Preferred Equity | 71,930 | 71,930 | 24,003 | |||||||||||||||||||||||
Total Shareholders' Equity | 607,141 | 599,255 | 466,781 | |||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 6,474,935 | $ | 6,274,656 | $ | 5,702,312 | ||||||||||||||||||||
Net Interest Spread | 2.68 | % | 2.75 | % | 3.65 | % | ||||||||||||||||||||
Net Interest Income | $ | 55,294 | $ | 53,326 | $ | 53,480 | ||||||||||||||||||||
Net Interest Margin | 3.61 | % | 3.63 | % | 4.01 | % | ||||||||||||||||||||
Overall Cost of Funds | 2.59 | % | 2.31 | % | 0.77 | % | ||||||||||||||||||||
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention. | ||||||||||||||||||||||||||
Consolidated Net Interest Margin | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Nine Months Ended | |||||||||||||||||
Average | Average | ||||||||||||||||
Outstanding | Interest Earned / | Average | Outstanding | Interest Earned / | Average | ||||||||||||
(Dollars in thousands) | Balance | Interest Paid | Yield / Rate | Balance | Interest Paid | Yield / Rate | |||||||||||
Assets | |||||||||||||||||
Interest-Earning Assets: | |||||||||||||||||
Total Loans | $ | 4,829,537 | $ | 237,566 | 6.58 | % | $ | 3,854,023 | $ | 148,668 | 5.16 | % | |||||
Securities | 909,901 | 14,932 | 2.19 | % | 974,566 | 12,187 | 1.67 | % | |||||||||
Interest-Bearing Deposit in Other Banks | 150,995 | 6,164 | 5.46 | % | 132,685 | 754 | 0.76 | % | |||||||||
Total Interest-Earning Assets | 5,890,433 | 258,662 | 5.87 | % | 4,961,274 | 161,609 | 4.36 | % | |||||||||
Allowance for Loan Losses | (41,888 | ) | (30,806 | ) | |||||||||||||
Noninterest-Earning Assets | 442,341 | 400,884 | |||||||||||||||
Total Assets | $ | 6,290,886 | $ | 258,662 | $ | 5,331,352 | $ | 161,609 | |||||||||
Liabilities and Shareholders' Equity | |||||||||||||||||
Interest-Bearing Liabilities: | |||||||||||||||||
Interest-Bearing Deposits | $ | 3,482,797 | $ | 72,718 | 2.79 | % | $ | 2,958,005 | $ | 11,106 | 0.50 | % | |||||
Subordinated Debt | 106,555 | 4,003 | 5.02 | % | 104,471 | 3,746 | 4.79 | % | |||||||||
Subordinated Debt - Trust Preferred Securities | 5,000 | 317 | 8.48 | % | 5,000 | 163 | 4.36 | % | |||||||||
Bank Term Funding Program | 238,274 | 8,111 | 4.55 | % | - | - | 0.00 | % | |||||||||
Advances from | 368,542 | 11,755 | 4.26 | % | 215,955 | 2,923 | 1.81 | % | |||||||||
First National Bankers | - | - | 0.00 | % | 2,778 | 91 | 4.38 | % | |||||||||
Other Borrowings | 22,177 | 389 | 2.35 | % | 22,325 | 63 | 0.38 | % | |||||||||
Total Interest-Bearing Liabilities | 4,223,345 | 97,293 | 3.08 | % | 3,308,534 | 18,092 | 0.73 | % | |||||||||
Noninterest-Bearing Liabilities: | |||||||||||||||||
Noninterest-Bearing Deposits | 1,427,821 | 1,530,748 | |||||||||||||||
Other Liabilities | 41,392 | 37,666 | |||||||||||||||
Total Noninterest-Bearing Liabilities | 1,469,213 | 1,568,414 | |||||||||||||||
Shareholders' Equity: | |||||||||||||||||
Common Shareholders' Equity | 526,398 | 446,403 | |||||||||||||||
Preferred Equity | 71,930 | 8,001 | |||||||||||||||
Total Shareholders' Equity | 598,328 | 454,404 | |||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 6,290,886 | $ | 5,331,352 | |||||||||||||
Net Interest Spread | 2.79 | % | 3.62 | % | |||||||||||||
Net Interest Income | $ | 161,369 | $ | 143,517 | |||||||||||||
Net Interest Margin | 3.66 | % | 3.87 | % | |||||||||||||
Overall Cost of Funds | 2.30 | % | 0.50 | % | |||||||||||||
NOTE: Average outstanding balances are determined utilizing monthly averages and average yield/rate is calculated utilizing an Actual/365 day count convention. | |||||||||||||||||
Non-GAAP Measures | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
Interest Income: | ||||||||||||||||
Interest income | $ | 93,322 | $ | 85,848 | $ | 63,473 | $ | 258,662 | $ | 161,609 | ||||||
Core interest income | 93,322 | 85,848 | 63,473 | 258,662 | 161,609 | |||||||||||
Interest Expense: | ||||||||||||||||
Interest expense | 38,028 | 32,522 | 9,993 | 97,293 | 18,092 | |||||||||||
Core interest expense | 38,028 | 32,522 | 9,993 | 97,293 | 18,092 | |||||||||||
Provision for Credit Losses:(b) | ||||||||||||||||
Provision for credit losses | 604 | 538 | 3,273 | 4,364 | 7,835 | |||||||||||
Core provision expense | 604 | 538 | 3,273 | 4,364 | 7,835 | |||||||||||
Other Income: | ||||||||||||||||
Other income | 9,883 | 11,958 | 8,115 | 30,229 | 21,032 | |||||||||||
Losses on former bank premises and equipment | - | - | - | - | 717 | |||||||||||
Losses on sale of securities | - | 61 | 7 | 62 | 46 | |||||||||||
Insurance reimbursement of storm expenditures | - | - | (265 | ) | - | (265 | ) | |||||||||
Gain on sale of branch | (932 | ) | - | - | (932 | ) | - | |||||||||
Gain on extinguishment of debt | (517 | ) | (941 | ) | - | (1,458 | ) | - | ||||||||
Core other income | 8,434 | 11,078 | 7,857 | 27,901 | 21,530 | |||||||||||
Other Expense: | ||||||||||||||||
Other expense | 38,607 | 39,702 | 40,946 | 116,988 | 111,063 | |||||||||||
Acquisition-related expenses (2) | (2 | ) | (68 | ) | (3,521 | ) | (173 | ) | (5,040 | ) | ||||||
Occupancy and bank premises - storm repair | - | - | - | - | (501 | ) | ||||||||||
Core other expense | 38,605 | 39,634 | 37,425 | 116,815 | 105,522 | |||||||||||
Pre-Tax Income:(a) | ||||||||||||||||
Pre-tax income | 25,966 | 25,044 | 17,376 | 70,246 | 45,651 | |||||||||||
Losses on former bank premises and equipment | - | - | - | - | 717 | |||||||||||
Losses on sale of securities | - | 61 | 7 | 62 | 46 | |||||||||||
Insurance reimbursement of storm expenditures | - | - | (265 | ) | - | (265 | ) | |||||||||
Gain on sale of branch | (932 | ) | - | - | (932 | ) | - | |||||||||
Gain on extinguishment of debt | (517 | ) | (941 | ) | - | (1,458 | ) | - | ||||||||
Acquisition-related expenses (2) | 2 | 68 | 3,521 | 173 | 5,040 | |||||||||||
Occupancy and bank premises - storm repair | - | - | - | - | 501 | |||||||||||
Core pre-tax income | 24,519 | 24,232 | 20,639 | 68,091 | 51,690 | |||||||||||
Provision for Income Taxes:(1) | ||||||||||||||||
Provision for income taxes | 5,511 | 5,305 | 3,576 | 15,027 | 9,363 | |||||||||||
Tax on losses on former bank premises and equipment | - | - | - | - | 151 | |||||||||||
Tax on losses on sale of securities | - | 13 | 1 | 13 | 10 | |||||||||||
Tax on insurance reimbursement of storm expenditures | - | - | (55 | ) | - | (55 | ) | |||||||||
Tax on gain on sale of branch | (197 | ) | - | - | (197 | ) | - | |||||||||
Tax on gain on extinguishment of debt | (109 | ) | (199 | ) | - | (308 | ) | - | ||||||||
Tax on acquisition-related expenses (2) | - | 14 | 739 | 20 | 913 | |||||||||||
Tax on occupancy and bank premises - storm repair | - | - | - | - | 106 | |||||||||||
Core provision for income taxes | 5,205 | 5,133 | 4,261 | 14,555 | 10,488 | |||||||||||
Preferred Dividends: | ||||||||||||||||
Preferred dividends | 1,351 | 1,350 | - | 4,051 | - | |||||||||||
Core preferred dividends | 1,351 | 1,350 | - | 4,051 | - | |||||||||||
Net Income Available to Common Shareholders: | ||||||||||||||||
Net income available to common shareholders | 19,104 | 18,389 | 13,800 | 51,168 | 36,288 | |||||||||||
Losses on former bank premises and equipment, net of tax | - | - | - | - | 566 | |||||||||||
Losses on sale of securities, net of tax | - | 48 | 6 | 49 | 36 | |||||||||||
Insurance reimbursement of storm expenditures, net of tax | - | - | (210 | ) | - | (210 | ) | |||||||||
Gain on sale of branch, net of tax | (735 | ) | - | - | (735 | ) | - | |||||||||
Gain on extinguishment of debt, net of tax | (408 | ) | (742 | ) | - | (1,150 | ) | - | ||||||||
Acquisition-related expenses (2), net of tax | 2 | 54 | 2,782 | 153 | 4,127 | |||||||||||
Occupancy and bank premises - storm repair, net of tax | - | - | - | - | 395 | |||||||||||
Core net income available to common shareholders | $ | 17,963 | $ | 17,749 | $ | 16,378 | $ | 49,485 | $ | 41,202 | ||||||
Pre-tax, pre-provision earnings available to common shareholders (a+b) | $ | 26,570 | $ | 25,582 | $ | 20,649 | $ | 74,610 | $ | 53,486 | ||||||
Losses on former bank premises and equipment | - | - | - | - | 717 | |||||||||||
Loss on sale of securities | - | 61 | 7 | 62 | 46 | |||||||||||
Insurance reimbursement of storm expenditures | - | - | (265 | ) | - | (265 | ) | |||||||||
Gain on sale of branch | (932 | ) | - | - | (932 | ) | - | |||||||||
Gain on extinguishment of debt | (517 | ) | (941 | ) | - | (1,458 | ) | - | ||||||||
Acquisition-related expenses (2) | 2 | 68 | 3,521 | 173 | 5,040 | |||||||||||
Occupancy and bank premises - storm repair | - | - | - | - | 501 | |||||||||||
Core pre-tax, pre-provision earnings | $ | 25,123 | $ | 24,770 | $ | 23,912 | $ | 72,455 | $ | 59,525 | ||||||
Average Diluted Common Shares Outstanding | 25,288,660 | 25,333,372 | 22,650,640 | 25,281,908 | 22,163,952 | |||||||||||
Diluted Earnings Per Common Share: | ||||||||||||||||
Diluted earnings per common share | $ | 0.76 | $ | 0.73 | $ | 0.61 | $ | 2.02 | $ | 1.64 | ||||||
Losses on former bank premises and equipment, net of tax | - | - | - | - | 0.02 | |||||||||||
Loss on sale of securities, net of tax | - | - | - | 0.00 | - | |||||||||||
Insurance reimbursement of storm expenditures, net of tax | - | - | (0.01 | ) | - | (0.01 | ) | |||||||||
Gain on sale of branch, net of tax | (0.03 | ) | - | - | (0.03 | ) | - | |||||||||
Gain on extinguishment of debt, net of tax | (0.02 | ) | (0.03 | ) | - | (0.04 | ) | - | ||||||||
Acquisition-related expenses (2), net of tax | - | - | 0.12 | 0.01 | 0.19 | |||||||||||
Occupancy and bank premises -storm repair, net of tax | - | - | - | - | 0.02 | |||||||||||
Core diluted earnings per common share | $ | 0.71 | $ | 0.70 | $ | 0.72 | $ | 1.96 | $ | 1.86 | ||||||
Pre-tax, pre-provision profit diluted earnings per common share | $ | 1.05 | $ | 1.01 | $ | 0.91 | $ | 2.95 | $ | 2.41 | ||||||
Losses on former bank premises and equipment | - | - | - | - | 0.03 | |||||||||||
Loss on sale of securities | - | - | - | - | - | |||||||||||
Insurance reimbursement of storm expenditures | - | - | (0.01 | ) | - | (0.01 | ) | |||||||||
Gain on sale of branch | (0.04 | ) | - | - | (0.04 | ) | - | |||||||||
Gain on extinguishment of debt | (0.02 | ) | (0.04 | ) | - | (0.06 | ) | - | ||||||||
Acquisition-related expenses (2) | - | 0.01 | 0.16 | 0.01 | 0.23 | |||||||||||
Occupancy and bank premises - storm repair | - | - | - | - | 0.03 | |||||||||||
Core pre-tax, pre-provision diluted earnings per common share | $ | 0.99 | $ | 0.98 | $ | 1.06 | $ | 2.86 | $ | 2.69 | ||||||
(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2023 and 2022. These rates approximated the marginal tax rates. | ||||||||||||||||
(2) Includes merger and conversion-related expenses and salary and employee benefits. | ||||||||||||||||
Non-GAAP Measures | |||||||||
(Unaudited) | |||||||||
(Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | ||||||
Total Shareholders' (Common) Equity: | |||||||||
Total shareholders' equity | $ | 604,366 | $ | 600,968 | $ | 508,002 | |||
Preferred stock | (71,930 | ) | (71,930 | ) | (72,010 | ) | |||
Total common shareholders' equity | 532,436 | 529,038 | 435,992 | ||||||
(88,391 | ) | (88,543 | ) | (88,543 | ) | ||||
Core deposit and customer intangible | (12,418 | ) | (12,993 | ) | (14,567 | ) | |||
Total tangible common equity | $ | 431,627 | $ | 427,502 | $ | 332,882 | |||
Total Assets: | |||||||||
Total assets | $ | 6,488,781 | $ | 6,454,649 | $ | 5,806,691 | |||
(88,391 | ) | (88,543 | ) | (88,543 | ) | ||||
Core deposit and customer intangible | (12,418 | ) | (12,993 | ) | (14,567 | ) | |||
Total tangible assets | $ | 6,387,972 | $ | 6,353,113 | $ | 5,703,581 | |||
Common shares outstanding | 25,344,168 | 25,344,168 | 22,605,136 | ||||||
Book value per common share | $ | 21.01 | $ | 20.87 | $ | 19.29 | |||
Tangible book value per common share | $ | 17.03 | $ | 16.87 | $ | 14.73 | |||
Common equity to total assets | 8.21 | % | 8.20 | % | 7.51 | % | |||
Tangible common equity to tangible assets | 6.76 | % | 6.73 | % | 5.84 | % | |||
Non-GAAP Measures | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(Dollars in thousands, except per share data) | 2023 | 2023 | 2022 | 2023 | 2022 | |||||||||||
Total Quarterly Average Assets | $ | 6,474,935 | $ | 6,274,656 | $ | 5,702,312 | $ | 6,290,886 | $ | 5,331,352 | ||||||
Total Quarterly Average Common Equity | $ | 535,211 | $ | 527,325 | $ | 442,778 | $ | 526,398 | $ | 446,403 | ||||||
Net Income Available to Common Shareholders: | ||||||||||||||||
Net income available to common shareholders | $ | 19,104 | $ | 18,389 | $ | 13,800 | $ | 51,168 | $ | 36,288 | ||||||
Losses on former bank premises and equipment, net of tax | - | - | - | - | 566 | |||||||||||
Losses on sale of securities, net of tax | - | 48 | 6 | 49 | 36 | |||||||||||
Insurance reimbursement of storm expenditures, net of tax | - | - | (210 | ) | - | (210 | ) | |||||||||
Gain on sale of branch, net of tax | (735 | ) | - | - | (735 | ) | - | |||||||||
Gain on extinguishment of debt, net of tax | (408 | ) | (742 | ) | - | (1,150 | ) | - | ||||||||
Acquisition-related expenses, net of tax | 2 | 54 | 2,782 | 153 | 4,127 | |||||||||||
Occupancy and bank premises - storm repair, net of tax | - | - | - | - | 395 | |||||||||||
Core net income available to common shareholders | $ | 17,963 | $ | 17,749 | $ | 16,378 | $ | 49,485 | $ | 41,202 | ||||||
Return to common shareholders on average assets (annualized) (2) | 1.17 | % | 1.18 | % | 0.96 | % | 1.09 | % | 0.91 | % | ||||||
Core return on average assets (annualized) (2) | 1.10 | % | 1.13 | % | 1.14 | % | 1.05 | % | 1.03 | % | ||||||
Return to common shareholders on average common equity (annualized) (2) | 14.16 | % | 13.99 | % | 12.37 | % | 13.00 | % | 10.87 | % | ||||||
Core return on average common equity (annualized) (2) | 13.32 | % | 13.50 | % | 14.68 | % | 12.57 | % | 12.34 | % | ||||||
Interest Income: | ||||||||||||||||
Interest income | $ | 93,322 | $ | 85,848 | $ | 63,473 | $ | 258,662 | $ | 161,609 | ||||||
Core interest income | 93,322 | 85,848 | 63,473 | 258,662 | 161,609 | |||||||||||
Interest Expense: | ||||||||||||||||
Interest expense | 38,028 | 32,522 | 9,993 | 97,293 | 18,092 | |||||||||||
Core interest expense | 38,028 | 32,522 | 9,993 | 97,293 | 18,092 | |||||||||||
Other Income: | ||||||||||||||||
Other income | 9,883 | 11,958 | 8,115 | 30,229 | 21,032 | |||||||||||
Losses on former bank premises and equipment | - | - | - | - | 717 | |||||||||||
Loss on sale of securities | - | 61 | 7 | 62 | 46 | |||||||||||
Insurance reimbursement of storm expenditures | - | - | (265 | ) | - | (265 | ) | |||||||||
Gain on sale of branch | (932 | ) | - | - | (932 | ) | - | |||||||||
Gain on extinguishment of debt | (517 | ) | (941 | ) | - | (1,458 | ) | - | ||||||||
Core other income | 8,434 | 11,078 | 7,857 | 27,901 | 21,530 | |||||||||||
Other Expense: | ||||||||||||||||
Other expense | 38,607 | 39,702 | 40,946 | 116,988 | 111,063 | |||||||||||
Acquisition-related expenses | (2 | ) | (68 | ) | (3,521 | ) | (173 | ) | (5,040 | ) | ||||||
Occupancy and bank premises - storm repair | - | - | - | - | (501 | ) | ||||||||||
Core other expense | $ | 38,605 | $ | 39,634 | $ | 37,425 | $ | 116,815 | $ | 105,522 | ||||||
Efficiency Ratio: | ||||||||||||||||
Other expense (a) | $ | 38,607 | $ | 39,702 | $ | 40,946 | $ | 116,988 | $ | 111,063 | ||||||
Core other expense (c) | $ | 38,605 | $ | 39,634 | $ | 37,425 | $ | 116,815 | $ | 105,522 | ||||||
Net interest and other income (1) (b) | $ | 65,177 | $ | 65,345 | $ | 61,602 | $ | 191,660 | $ | 164,595 | ||||||
Core net interest and other income (1) (d) | $ | 63,728 | $ | 64,404 | $ | 61,337 | $ | 189,270 | $ | 165,047 | ||||||
Efficiency ratio (a/b) | 59.23 | % | 60.76 | % | 66.47 | % | 61.04 | % | 67.48 | % | ||||||
Core efficiency ratio (c/d) | 60.58 | % | 61.54 | % | 61.02 | % | 61.72 | % | 63.93 | % | ||||||
Total Average Interest-Earnings Assets | $ | 6,071,129 | $ | 5,895,290 | $ | 5,287,346 | $ | 5,890,433 | $ | 4,961,274 | ||||||
Net Interest Income: | ||||||||||||||||
Net interest income | $ | 55,294 | $ | 53,326 | $ | 53,480 | $ | 161,369 | $ | 143,517 | ||||||
Loan discount accretion | (2,419 | ) | (2,059 | ) | (1,712 | ) | (7,390 | ) | (5,220 | ) | ||||||
Net interest income excluding loan discount accretion | $ | 52,875 | $ | 51,267 | $ | 51,768 | $ | 153,979 | $ | 138,297 | ||||||
Net interest margin (2) | 3.61 | % | 3.63 | % | 4.01 | % | 3.66 | % | 3.87 | % | ||||||
Net interest margin excluding loan discount accretion (2) | 3.46 | % | 3.49 | % | 3.88 | % | 3.49 | % | 3.73 | % | ||||||
Net interest spread (2) | 2.68 | % | 2.75 | % | 3.65 | % | 2.79 | % | 3.62 | % | ||||||
Net interest spread excluding loan discount accretion (2) | 2.53 | % | 2.61 | % | 3.52 | % | 2.62 | % | 3.48 | % | ||||||
(1) Excludes gains/losses on sales of securities. | ||||||||||||||||
(2) Calculated utilizing an Actual/365 day count convention. | ||||||||||||||||
b1BANK
225.286.7879
Misty.Albrecht@b1BANK.com
Source:
2023 GlobeNewswire, Inc., source