GlobeNewswire Inc | Apr 22, 2021 04:01PM EDT

April 22, 2021

BATON ROUGE, La., April 22, 2021 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the quarter ended March 31, 2021, including net income of $12.3 million, or $0.59 per diluted share, a decrease of $1.5 million and $0.08, respectively, from prior quarter ended December 31, 2020. On a non-GAAP basis, core net income for the quarter ended March 31, 2021, which excludes certain income and expenses, was $12.6 million, or $0.61 per diluted share, a decrease of $1.5 million and $0.07, respectively, from prior quarter ended December 31, 2020.

2021 has gotten off to a fast start for b1BANK, said Jude Melville, president and CEO. Growth in our earnings power reflects successful integration of the significant merger we conducted in 2020, the additions to our board speak to our credibility as active participants in our community, and continued strong asset quality and stable NIM demonstrate our focus on the health of our portfolio even during a time of significant expansion. Were especially excited about our acquisition of SSW and the capability that partnership gives us to more thoroughly serve our clients in the coming years.

On April 22, 2021, Business Firsts board of directors declared a quarterly dividend based upon financial performance for the first quarter in the amount of $0.12 per share, an increase of $0.02 from the prior quarter, to the common shareholders of record as of May 15, 2021. The dividend will be paid on May 31, 2021, or as soon thereafter as practicable.

Quarterly Highlights

-- Smith Shellnut Wilson, LLC (SSW) Acquisition. On March 22, 2021, Business First, through b1BANK, entered into a definitive agreement to acquire SSW, a registered investment advisor with approximately $3.5 billion in assets under management, specializing in managing investment portfolios for corporations, foundations and individuals. The acquisition of SSW was subsequently completed on April 1, 2021. -- Subordinated Debt Issuance. On March 26, 2021, Business First issued $52.5 million in aggregate principal amount of its 4.250% fixed-to-floating subordinated notes due 2031. The subordinated notes were issued to certain qualified institutional buyers and institutional accredited investors in a private placement transaction that was exempt from registration under the Securities Act of 1933, as amended. -- Corporate Actions. Business First and b1BANK appointed John Ducrest, former Commissioner of the Louisiana Office of Financial Institutions (OFI) and immediate former Commissioner of Securities for the state of Louisiana, and Drew Brees, former quarterback of the New Orleans Saints, to their respective boards of directors during the quarter ended March 31, 2021. -- Small Business Administration (SBA) Paycheck Protection Program (PPP), Round 2. Business First has funded approximately 1,500 loans with an aggregate outstanding principal balance of $188.5 million under round 2 of the SBA PPP. Additionally, Business First will recognize approximately $8.6 million in fees associated with origination of these loans over their lives. -- Net Interest Margin and Spread. Net interest margin decreased from 4.26% for the quarter ended December 31, 2020, to 4.23% for the quarter ended March 31, 2021, while net interest spread increased from 4.03% to 4.06% for the quarters ended December 31, 2020, and March 31, 2021, respectively. Excluding loan discount accretion, non-GAAP net interest margin and spread were 3.91% and 3.73%, respectively, for the quarter ended March 31, 2021, compared to 3.99% and 3.75% for the quarter ended December 31, 2020.

Financial Condition

March 31, 2021, Compared to December 31, 2020

Loans

Loans held for investment increased $50.6 million, or 1.69 % (6.77 % annualized), for the quarter ended March 31, 2021. The increase was largely attributable to a net increase in SBA PPP loans (round 2) within the commercial portfolio of $71.9 million. Excluding the net increase in SBA PPP loans, total loans held for investment declined for the quarter ended March 31, 2021, by (0.74) %, or (2.96) % annualized. As of March 31, 2021, SBA PPP loans with a principal balance of $385.9 million remain outstanding.

Business First has not identified any unusual customer usage of unfunded commitments since the beginning of the COVID-19 pandemic in March 2020.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment increased from 0.35% as of December 31, 2020, to 0.44% as of March 31, 2021. Nonperforming assets as a percentage of total assets increased from 0.48% as of December 31, 2020, to 0.52% as of March 31, 2021. The increase in both metrics was largely attributable to a single, energy-related loan with an outstanding balance of $1.9 million migrating to nonaccrual during the quarter ended March 31, 2021.

Cash and Securities Available for Sale

Cash, including federal funds sold, and securities available for sale increased by $137.6 million and $80.6 million, respectively, from the quarter ended December 31, 2020. The increases were largely attributable to the subordinated debt issuance on March 26, 2021, (which increased cash by approximately $41.4 million after repaying existing Business First outstanding debt), SBA PPP forgiveness reimbursements ($118.1 million), and increased municipal deposits ($85.4 million) which occurred during the quarter ended March 31, 2021.

Subordinated Debt

On March 26, 2021, Business First successfully completed a private placement of $52.5 million in aggregate principal amount of its 4.250% fixed-to-floating subordinated notes due 2031, callable by Business First beginning March 2026. The notes qualify for Tier 2 capital treatment for Business First for regulatory capital purposes.

Total Shareholders Equity

Book value per common share was $20.03 at March 31, 2021, compared to $19.88 at December 31, 2020. On a non-GAAP basis, tangible book value per share was $16.99 at March 31, 2021, compared to $16.80 at December 31, 2020. The increase was largely attributable to net income for the quarter less dividends distributed based on Q4 2020 performance.

March 31, 2021, Compared to March 31, 2020

Loans

Total loans held for investment increased by $1.3 billion compared to March 31, 2020, or 71.73%, due primarily to the acquisition of Pedestal and origination of SBA PPP loans.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 0.57% as of March 31, 2020, to 0.44% as of March 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.59% as of March 31, 2020, to 0.52% as of March 31, 2021. The decreases were largely attributable to an increase in overall total loans held for investment and total assets from the acquisition of Pedestal and SBA PPP activity.

Total Shareholders Equity

Book value per common share was $20.03 at March 31, 2021, compared to $21.58 at March 31, 2020. On a non-GAAP basis, tangible book value per share was $16.99 at March 31, 2021, compared to $17.38 at March 31, 2020. The decreases were attributable to the initial book value dilution caused by the acquisition of Pedestal during the quarter ended June 30, 2020.

Results of Operations

First Quarter 2021 Compared to Fourth Quarter 2020

Net Income and Diluted Earnings Per Share

For the quarter ended March 31, 2021, net income was $12.3 million, or $0.59 per diluted share, compared to net income of $13.8 million, or $0.67 per diluted share, for the quarter ended December 31, 2020. The decreases, $1.5 million and $0.08, respectively, were largely attributable to a reduction in gain on sale of loans, primarily attributable to the $4.4 million gain recognized from sales of loans originated under the Main Street Lending Program in the quarter ended December 31, 2020, offset by decreases in other expense due to extinguishment of Federal Home Loan Bank (FHLB) borrowings, of $2.4 million, and $842,000 in interest expense.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2021, was $12.6 million, or $0.61 per diluted share, compared to core net income of $14.1 million, or $0.68 per diluted share, for the quarter ended December 31, 2020. Notable noncore events impacting earnings for the quarter ended March 31, 2021, included the incurrence of $350,000 in occupancy and bank premises expenses attributable to hurricane damage, compared to the incurrence of $568,000 in acquisition-related expenses and $158,000 in gains attributed to former bank premises and equipment in other income for the quarter ended December 31, 2020.

Interest Income

For the quarter ended March 31, 2021, net interest income totaled $40.3 million and net interest margin and net interest spread were 4.23% and 4.06%, respectively, compared to $39.6 million, 4.26% and 4.03% for the quarter ended December 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.53% for the quarter ended March 31, 2021, compared to 5.59% for the quarter ended December 31, 2020. The average yield on total interest-earning assets was 4.65% for the quarter ended March 31, 2021, compared to 4.78% for the quarter ended December 31, 2020. The reduction in interest income was largely attributable to less days and lower yields, $1.0 million less interest income attributable to non-SBA PPP loans, offset by additional accelerated recognition of SBA PPP net loan origination fees due to forgiveness, $0.7 million, for the quarter ended March 31, 2021.

Net interest margin and net interest spread were positively impacted for the quarter ended March 31, 2021, by an additional $496,000 in loan discount accretion, 5 and 6 basis points, respectively, and an additional $777,000 in SBA PPP origination fees, 8 and 9 basis points, respectively, and a reduction in the overall cost of funds (which includes noninterest-bearing deposits).

The average loan yield (excluding SBA PPP loans) was impacted by the origination of loans at lower rates than payoffs during the quarter.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $3.1 million) were 3.91% and 3.73%, respectively, for the quarter ended March 31, 2021, compared to 3.99% and 3.75% (excluding loan discount accretion of $2.6 million) for the quarter ended December 31, 2020.

Interest Expense

For the quarter ended March 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 12 basis points, from 0.53% to 0.41%, compared to the quarter ended December 31, 2020. The decrease in cost of funds was largely attributable to the continuous repricing of maturing certificates of deposit, as well as the repricing of selected non-maturity deposits, and the impact of Business Firsts extinguishment of certain FHLB borrowings in December 2020.

Other Income

For the quarter ended December 31, 2020, other income was impacted by a $4.4 million increase in gain on sale of loans primarily associated with the Main Street Lending Program, which accounted for the majority of the $4.5 million decrease in other income during the quarter ended March 31, 2021.

Other Expenses

For the quarter ended December 31, 2020, other expenses were impacted by a loss on early extinguishment of FHLB borrowings, resulting in a net loss of $2.4 million, which accounted for the majority of the $2.6 million decrease in other expense during the quarter ended March 31, 2021.

Provision for Loan Losses

During the quarter ended March 31, 2021, Business First recorded a provision for loan losses of $3.4 million, compared to $2.1 million for the quarter ended December 31, 2020. The increase for the quarter ended March 31, 2021, was driven primarily by the additional reserves ($1. 4 million) required on a $1.9 million energy-related loan which was transferred to nonaccrual during the quarter, as well as additional reserves necessary on acquired loans.

Return on Assets and Equity

Return on average assets and equity, each on an annualized basis, were 1.15% and 11.86%, respectively, for the quarter ended March 31, 2021, compared to 1.37% and 13.86%, respectively, for the quarter ended December 31, 2020. Both returns were negatively impacted by lower net income for the quarter ended March 31, 2021.

First Quarter 2021 Compared to First Quarter 2020

Net Income and Diluted Earnings Per Share

For the quarter ended March 31, 2021, net income was $12.3 million, or $0.59 per diluted share, compared to net income of $4.5 million, or $0.34 per diluted share, for the quarter ended March 31, 2020. The increases in net income and diluted earnings per share were largely attributable to the increases in net interest income and other income related to the acquisition of Pedestal on May 1, 2020, as well as the SBA PPP loans and lower costs of funds, offset by increases in the provision for loan losses and additional expenses associated with the acquisition of Pedestal.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended March 31, 2021, was $12.6 million, or $0.61 per diluted share, compared to core net income of $5.0 million, or $0.37 per diluted share, for the quarter ended March 31, 2020. Notable noncore events impacting earnings for the quarter ended March 31, 2021, included the incurrence of $350,000 in occupancy and bank premises expenses attributable to hurricane damage, compared to the incurrence of $126,000 in gains associated with the disposal of former bank premises and equipment in other income and $1.2 million in acquisition-related expenses during the quarter ended March 31, 2020.

Interest Income

For the quarter ended March 31, 2021, net interest income totaled $40.3 million and net interest margin and net interest spread were 4.23% and 4.06%, respectively, compared to compared to $20.2 million, 3.93% and 3.55% for the quarter ended March 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was 5.53% for the quarter ended March 31, 2021, compared to 5.55% for the quarter ended March 31, 2020. The average yield on the loan portfolio (excluding SBA PPP loans) was positively impacted for the quarter ended March 31, 2021, by an additional $2.8 million in loan discount accretion, which accounted for 42 basis points. The increase in interest income was largely attributable to higher average balances due to the Pedestal acquisition, origination of SBA PPP loans, and larger loan purchase discount accretion.

Average yield on total interest-earning assets, net interest margin, and net interest spread were impacted for the quarter ended March 31, 2021, by the federal funds rate cuts of 150 basis points, which occurred late in the first quarter of 2020, as well as the subsequent impacts of the COVID-19 pandemic on the yield curve.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $3.1 million) were 3.91% and 3.73%, respectively, for the quarter ended March 31, 2021, compared to 3.88% and 3.49% (excluding loan discount accretion of $290,000) for the quarter ended March 31, 2020.

Interest Expense

For the quarter ended March 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 79 basis points, from 1.20% to 0.41%, compared to the quarter ended March 31, 2020. The decrease in cost of funds was partially attributable to the accretion of deposit and FHLB premiums associated with the Pedestal acquisition, $715,000 or 8 basis points, and the strategic extinguishment of FHLB advances which occurred in the quarter ended December 31, 2020, but primarily attributable to an overall reduction in interest rates on deposit offerings and the lower-yielding deposit portfolio acquired from Pedestal.

Other Income

For the quarter ended March 31, 2021, the increase in other income was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020, compared to the quarter ended March 31, 2020.

Other Expenses

For the quarter ended March 31, 2021, the increase in other expense was largely attributable to the acquisition of Pedestal during the quarter ended June 30, 2020, compared to the quarter ended March 31, 2020.

Provision for Loan Losses

During the quarter ended March 31, 2021, Business First recorded a provision for loan losses of $3.4 million compared to $1.4 million for the quarter ended March 31, 2020. The increase for the quarter ended March 31, 2021, was impacted by the additional reserves ($1.4 million) required on a $1.9 million energy-related loan which was transferred to nonaccrual during the quarter, as well as additional reserves necessary on acquired loans.

Return on Assets and Equity

Return on average assets and return on average equity, each on an annualized basis, were 1.15% and 11.86%, respectively, for the quarter ended March 31, 2021, from 0.80% and 6.31%, respectively, for the quarter ended March 31, 2020. Both returns were positively impacted by higher net income for the quarter ended March 31, 2021.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., through its banking subsidiary b1BANK operates 43 banking centers in markets across Louisiana and in the Dallas, Texas area. b1BANK provides commercial and personal banking, treasury management and wealth solutions services to small to midsize businesses and their owners and employees. Visit www.b1BANK.com for more information. Business Firsts common stock is traded on the NASDAQ Global Select Market under the symbol BFST.

Non-GAAP Financial Measures

This press release includes certain non-GAAP financial measures (e.g., referenced as core) intended to supplement, not substitute for, comparable GAAP measures. These measures typically adjust income available to common shareholders for certain significant activities or transactions that, in managements opinion, can distort period-to-period comparisons of Business Firsts performance. Transactions that are typically excluded from non-GAAP 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.). 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 the Companys 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. Actual results will also be significantly impacted by the effects of the ongoing COVID-19 pandemic, including, among other effects: the impact of the public health crisis; the extent and duration of closures of businesses, including our branches, vendors and customers; the operation of financial markets; employment levels; market liquidity; the impact of various actions taken in response by the U.S. federal government, the Federal Reserve, other banking regulators, state and local governments; the adequacy of our allowance for loan losses in relation to potential losses in our loan portfolio; and the impact that all of these factors have on our borrowers, other customers, vendors and counterparties. 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 on Business First, you may obtain Business Firsts reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SECs EDGAR service on the SECs website at www.sec.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.

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 the Company. 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.

Misty Albrechtb1BANK225.286.7879Misty.Albrecht@b1BANK.com



Business First Bancshares, Inc.Selected Financial Information(Unaudited)

March 31, December 31, March 31,(Dollars in 2021 2020 2020thousands) Balance Sheet Ratios Loans (HFI) to 78.83 % 82.71 % 98.26 %DepositsShareholders'Equity to 9.38 % 9.85 % 12.33 %Assets Ratio LoansReceivable Held forInvestment Commercial (1) $ 962,099 $ 886,325 $ 431,992 Real Estate: Construction 260,836 and Land 418,234 403,065Farmland 53,900 52,861 55,8831-4 Family 295,876 Residential 460,907 468,650Multi-Family 32,859 Residential 77,390 95,707Nonfarm 623,114 Nonresidential 966,416 971,603Total Real 1,975,808 1,994,908 1,266,585 EstateConsumer (1) 72,803 104,071 110,122Total Loans(Held for $ 3,041,978 $ 2,991,355 $ 1,771,380 Investment) Allowance for Loan Losses Balance,Beginning of $ 22,024 $ 20,340 $ 12,124 PeriodCharge-offs ? ) ) )Quarterly (309 (715 (194Recoveries ? Quarterly 177 265 22Provision for Loan Losses ? 3,359 2,134 1,367 QuarterlyBalance, End $ 25,251 $ 22,024 $ 13,319 of Period Allowance forLoan Losses to 0.83 % 0.74 % 0.75 %Total Loans(HFI)NetCharge-offs(Recoveries) 0.00 % 0.01 % 0.01 %to AverageTotal Loans Remaining LoanPurchase $ 32,517 $ 35,580 $ 3,246 Discount Nonperforming Assets Nonperforming Loans:Nonaccrual $ 11,956 $ 9,063 $ 9,301 Loans (2)Loans Past Due 90 Days or 1,479 1,523 834 More (2)Total Nonperforming 13,435 10,586 10,135 LoansOtherNonperforming Assets:Other Real Estate Owned 8,851 9,051 3,281Other Nonperforming 623 402 11 Assets:Total Other Nonperforming 9,474 9,453 3,292 AssetsTotalNonperforming $ 22,909 $ 20,039 $ 13,427 Assets NonperformingLoans to Total 0.44 % 0.35 % 0.57 %Loans (HFI)NonperformingAssets to 0.52 % 0.48 % 0.59 %Total Assets (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loansaccounted for $385.8 millionand $0.1 million of the Commercial and Consumerportfolios, respectively, as of March 31, 2021. SBA PPP loans accounted for$313.9 million and $1.6 million of the Commercialand Consumer portfolios,respectively, as of December 31, 2020.(2) Past due and nonaccrual loan amounts exclude acquired impaired loans, evenif contractually past due or ifthe Company does not expect to receive paymentin full, as the Company is currently accreting interest incomeover theexpected life of the loans.

Business First Bancshares, Inc.Selected Financial Information(Unaudited)

Three Months Ended March 31, December 31, March 31,(Dollars inthousands, except 2021 2020 2020per share data) Per Share Data Basic Earnings per $ 0.60 $ 0.67 $ 0.34 Common ShareDiluted Earnings 0.59 0.67 $ 0.34 per Common ShareDividends per 0.10 0.10 0.10 Common ShareBook Value per 20.03 19.88 21.58 Common Share Average Common 20,621,930 20,590,239 13,313,154 Shares OutstandingAverage Diluted 20,738,013 20,726,648 13,367,276 Shares OutstandingEnd of PeriodCommon Shares 20,804,753 20,621,437 13,067,987 Outstanding Annualized Performance Ratios Return on Average 1.15 % 1.37 % 0.80 %AssetsReturn on Average 11.86 % 13.86 % 6.31 %EquityNet Interest 4.23 % 4.26 % 3.93 %MarginNet Interest 4.06 % 4.03 % 3.55 %SpreadEfficiency Ratio 59.40 % 60.27 % 72.39 %(1) Total Quarterly/Year-to-Date $ 4,276,430 $ 4,029,660 $ 2,244,584 Average AssetsTotal Quarterly/Year-to-Date 415,896 399,332 285,338 Average Equity Other Expenses Salaries and $ 14,926 $ 14,908 $ 9,435 Employee BenefitsOccupancy and Bank 1,811 1,525 1,060 PremisesDepreciation and 1,593 1,338 601 AmortizationData Processing 1,823 1,967 652 FDIC Assessment 509 595 147 FeesLegal and Other 741 626 394 Professional FeesAdvertising and 477 645 306 PromotionsUtilities and 575 617 317 CommunicationsAd Valorem Shares 700 850 375 TaxDirectors' Fees 188 173 74Other Real EstateOwned Expenses and 379 132 253 Write-DownsMerger and Conversion-Related 10 548 1,148 ExpensesOther 3,231 5,678 1,881 Total Other $ 26,963 $ 29,602 $ 16,643 Expenses Other Income Service Charges on $ 1,567 $ 1,672 $ 931 Deposit AccountsGain (Loss) on Sales of (5 ) 15 25 SecuritiesDebit card and ATM 1,336 1,555 407 Fee IncomeBank-Owned Life 318 251 197 Insurance IncomeGain (Loss) on (21 ) 4,413 177 Sales of LoansMortgage 229 208 115 Origination IncomeBrokerage 543 433 Commission 20Correspondent Bank 143 109 Income 49Participation Fee 247 114 Income 68Gain on Sales of Other Real Estate 46 199 151 OwnedGain on Disposal 117 of Other Assets 51 14Pass-through Income from SBIC 53 170 380 PartnershipsOther 510 417 210 Total Other $ 5,083 $ 9,547 $ 2,804 Income

(1) Noninterest expense (excluding provision for loan losses) divided bynoninterest income plus net interestincome less gain/loss on sales ofsecurities.



Business First Bancshares, Inc.Consolidated Balance Sheets(Unaudited)

March 31, December 31, March 31,(Dollars in 2021 2020 2020thousands) Assets Cash and Due From $ 355,257 $ 149,131 $ 80,109 BanksFederal Funds Sold 105,595 174,152 29,135 SecuritiesAvailable for Sale, 721,224 640,605 275,115 at Fair ValuesMortgage Loans Held 2,298 868 for Sale 969Loans and Lease 3,041,978 2,991,355 1,771,380 ReceivableAllowance for Loan (25,251 ) (22,024 ) (13,319 )LossesNet Loans and Lease 3,016,727 2,969,331 1,758,061 ReceivablePremises and 57,931 58,593 29,656 Equipment, NetAccrued Interest 25,910 23,895 7,724 ReceivableOther Equity 12,584 12,693 11,721 SecuritiesOther Real Estate 8,851 9,051 3,281 OwnedCash Value of Life 60,348 45,030 32,765 InsuranceDeferred Taxes, Net 5,536 5,858 1,800 Goodwill 53,753 53,862 48,495 Core Deposit 9,406 9,734 6,471 IntangibleOther Assets 8,166 7,456 2,461 Total Assets $ 4,443,586 $ 4,160,360 $ 2,287,662 Liabilities Deposits Noninterest-Bearing $ 1,186,625 $ 1,164,139 $ 417,534 Interest-Bearing 2,672,109 2,452,540 1,385,274 Total Deposits 3,858,734 3,616,679 1,802,808 Securities SoldUnder Agreements to 21,419 21,825 14,728 RepurchaseShort-Term 20 5,020 5,000 BorrowingsLong-Term 6,000 Borrowings - -Subordinated Debt 77,500 25,000 25,000 Subordinated Debt - Trust Preferred 5,000 5,000 - SecuritiesFederal Home Loan 33,073 43,145 138,000 Bank BorrowingsAccrued Interest 1,941 2,499 1,573 PayableOther Liabilities 29,198 25,229 18,523 Total Liabilities 4,026,885 3,750,397 2,005,632 Shareholders' Equity Common Stock 20,805 20,621 13,068 Additional Paid-In 300,282 299,540 206,966 CapitalRetained Earnings 89,441 79,174 59,859 Accumulated OtherComprehensive 6,173 10,628 2,137 Income Total Shareholders' 416,701 409,963 282,030 Equity Total Liabilitiesand Shareholders' $ 4,443,586 $ 4,160,360 $ 2,287,662 Equity

Business First Bancshares, Inc.Consolidated Statements of Income(Unaudited)

Three Months Ended March 31, December 31, March 31,(Dollars in 2021 2020 2020thousands) Interest Income: Interest and Fees $ 41,419 $ 41,762 $ 24,143on LoansInterest andDividends on 2,802 2,572 1,731SecuritiesInterest on Federal Funds Sold 41 53 142and Due From BanksTotal Interest 44,262 44,387 26,016Income Interest Expense: Interest on 3,243 3,736 4,686DepositsInterest on 718 1,067 1,119BorrowingsTotal Interest 3,961 4,803 5,805Expense Net Interest 40,301 39,584 20,211Income Provision for Loan 3,359 2,134 1,367Losses: Net InterestIncome After 36,942 37,450 18,844Provision for LoanLosses Other Income: Service Charges on 1,567 1,672 931Deposit AccountsGain (Loss) on Sales of (5 ) 15 25SecuritiesGain (Loss) on (21 ) 4,413 177Sales of LoansOther Income 3,542 3,447 1,671Total Other Income 5,083 9,547 2,804 Other Expenses: Salaries and 14,926 14,908 9,435Employee BenefitsOccupancy and 3,717 3,373 1,891Equipment ExpenseMerger and Conversion-Related 10 548 1,148ExpenseOther Expenses 8,310 10,773 4,169Total Other 26,963 29,602 16,643Expenses Income Before 15,062 17,395 5,005Income Taxes: Provision for 2,733 3,561 506Income Taxes: Net Income: $ 12,329 $ 13,834 $ 4,499

Business First Bancshares, Inc.Consolidated Net Interest Margin(Unaudited)

Three Months Ended March 31, 2021 December 31, 2020 March 31, 2020 Average Average Average Outstanding Interest Earned / Average Outstanding Interest Earned / Average Outstanding Interest Earned / Average(Dollars in thousands) Balance Interest Paid Yield / Balance Interest Paid Yield / Balance Interest Paid Yield / Rate Rate Rate Assets Interest-Earning Assets: Total Loans (Excluding SBA PPP) $ 2,643,668 $ 36,538 5.53 % $ 2,685,093 $ 37,509 5.59 % $ 1,740,189 $ 24,143 5.55 %SBA PPP Loans 374,958 4,881 5.21 % 365,058 $ 4,253 4.66 % 0.00 % - -Securities Available for Sale 691,476 2,802 1.62 % 603,192 2,572 1.71 % 286,660 1,731 2.42 %Interest-Bearing Deposit in 101,233 41 0.16 % 0.34 % 28,754 142 1.98 %Other Banks 61,485 53Total Interest-Earning Assets 3,811,335 44,262 4.65 % 3,714,828 44,387 4.78 % 2,055,603 26,016 5.06 %Allowance for Loan Losses (22,709 ) (21,020 ) (12,203 ) Noninterest-Earning Assets 487,804 335,852 201,184 Total Assets $ 4,276,430 $ 44,262 $ 4,029,660 $ 44,387 $ 2,244,584 $ 26,016 Liabilities and Shareholders' Equity Interest-Bearing Liabilities: Interest-Bearing Deposits $ 2,584,263 $ 3,243 0.50 % $ 2,313,511 $ 3,736 0.65 % $ 1,342,213 $ 4,686 1.40 %Subordinated Debt 28,450 459 6.45 % 422 6.75 % 25,000 422 6.75 % 25,000Subordinated Debt - Trust 5,000 42 3.36 % 3.36 % 0.00 %Preferred Securities 5,000 42 - -Advances from Federal Home Loan 37,022 111 1.20 % 105,640 407 1.54 % 98,323 497 2.02 %Bank (FHLB)Paycheck Protection Program 0.00 % 0.35 % 0.00 %Liquidity Facility (PPPLF) - - 79,450 70 - -Other Borrowings 31,696 106 1.34 % 126 1.34 % 67,125 200 1.19 % 37,605Total Interest-Bearing 2,686,431 3,961 0.59 % 2,566,206 4,803 0.75 % 1,532,661 5,805 1.52 %Liabilities Noninterest-Bearing Liabilities: Noninterest-Bearing Deposits $ 1,146,950 $ 1,033,593 $ 406,035 Other Liabilities 27,153 20,550 30,529Total Noninterest-Bearing 1,174,103 1,064,122 426,585 LiabilitiesShareholders' Equity: 415,896 399,332 285,338 Total Liabilities and $ 4,276,430 $ 4,029,660 $ 2,244,584 Shareholders' Equity Net Interest Spread 4.06 % 4.03 % 3.55 %Net Interest Income $ 40,301 $ 39,584 $ 20,211 Net Interest Margin 4.23 % 4.26 % 3.93 % Overall Cost of Funds 0.41 % 0.53 % 1.20 % NOTE: Average outstanding balances are determined utilizing monthly averagesand average yield/rate is calculated utilizing a 30/360 day countconvention.

Business First Bancshares, Inc.Non-GAAP Measures(Unaudited)

Three Months Ended March 31, December 31, March 31,(Dollars in thousands, except per 2021 2020 2020share data) Interest Income: Interest income $ 44,262 $ 44,387 $ 26,016 Core interest income 44,262 44,387 26,016 Interest Expense: Interest expense 3,961 4,803 5,805 Core interest expense 3,961 4,803 5,805 Provision for Loan Losses: (b) Provision for loan losses 3,359 2,134 1,367 Core provision expense 3,359 2,134 1,367 Other Income: Other income 5,083 9,547 2,804 (Gains) 1osses on former bank - (158 ) (126 )premises and equipment(Gains) 1osses on sale of securities 5 (15 ) (25 )Core other income 5,088 9,374 2,653 Other Expense: Other expense 26,963 29,602 16,643 Acquisition-related expenses (2) (10 ) (568 ) (1,212 )Stock option exercises - excess taxes - - (71 )(founder's grants)Occupancy and bank premises - (350 ) - - hurricane repairCore other expense 26,603 29,034 15,360 Pre-Tax Income: (a) Pre-tax income 15,062 17,395 5,005 (Gains) 1osses on former bank - (158 ) (126 )premises and equipment(Gains) 1osses on sale of securities 5 (15 ) (25 )Acquisition-related expenses (2) 10 568 1,212 Stock option exercises - excess taxes - - 71 (founder's grants)Occupancy and bank premises - 350 - - hurricane repairCore pre-tax income 15,427 17,790 6,137 Provision for Income Taxes: (1) Provision for income taxes 2,733 3,561 506 Tax on (gains) on former bank - (33 ) (26 )premises and equipmentTax on (gains) on sale of securities 1 (3 ) (5 )Tax on acquisition-related expenses 2 120 91 (2)Tax on stock option exercises - - 602 (founder's grants)Tax on occupancy and bank premises - 74 - - hurricane repairCore provision for income taxes 2,810 3,645 1,168 Net Income: Net income 12,329 13,834 4,499 (Gains) losses on former bank - (125 ) (100 )premises and equipment , net of taxLosses (Gains) on sale of securities, 4 (12 ) (20 )net of taxAcquisition-related expenses (2), net 8 448 1,121 of taxStock option exercises, net of tax - - (531 )(founder's grants)Occupancy and bank premises - 277 - - hurricane repair, net of taxCore net income $ 12,618 $ 14,145 $ 4,969 Pre-tax, pre-provision earnings (a+b) $ 18,421 $ 19,529 $ 6,372 (Gains) losses on former bank - (158 ) (126 )premises and equipment(Gains) losses on sale of securities 5 (15 ) (25 )Acquisition-related expenses (2) 10 568 1,212 Stock option exercises (founder's - - 71 grants)Occupancy and bank premises - 350 - - hurricane repairCore pre-tax, pre-provision earnings $ 18,786 $ 19,924 $ 7,504 Average Diluted Shares Outstanding 20,738,013 20,726,648 13,367,276 Diluted Earnings Per Share: Diluted earnings per share $ 0.59 $ 0.67 $ 0.34 (Gains) losses on former bank - (0.01 ) (0.01 )premises and equipment , net of tax(Gains) losses on sale of securities, 0.00 (0.00 ) (0.00 )net of taxAcquisition-related expenses (2), net 0.00 0.02 0.08 of taxStock option exercises (founder's - - (0.04 )grants)Occupancy and bank premises - 0.02 - - hurricane repair, net of taxCore diluted earnings per share $ 0.61 $ 0.68 $ 0.37 Pre-tax, pre-provision profit diluted $ 0.89 $ 0.94 $ 0.48 earnings per share(Gains) losses on former bank - (0.01 ) (0.01 )premises and equipment(Gains) losses on sale of securities 0.00 (0.00 ) (0.00 )Acquisition-related expenses (2) 0.00 0.03 0.09 Stock option exercises (founder's - - 0.01 grants)Occupancy and bank premises - 0.02 - - hurricane repairCore pre-tax, pre-provision diluted $ 0.91 $ 0.96 $ 0.56 earnings per share

(1) Tax rates, exclusive of certain nondeductible merger-related expenses andgoodwill, utilized were 21% for 2021 and 2020. These rates approximatedthemarginal tax rates.(2) Includes merger and conversion-related expenses and salary and employeebenefits.

Business First Bancshares, Inc.Non-GAAP Measures(Unaudited)

Three Months Ended March 31, December 31, March 31,(Dollars inthousands, except 2021 2020 2020per share data) Total Quarterly/Year-to-Date $ 4,276,430 $ 4,029,660 $ 2,244,584 Average AssetsTotal Quarterly/Year-to-Date $ 415,896 $ 399,332 $ 285,338 Average Equity Net Income: Net income $ 12,329 $ 13,834 $ 4,499 (Gains) losses onformer bank premises and - (125 ) (100 )equipment , net oftax(Gains) losses onsale of securities, 4 (12 ) (20 )net of taxAcquisition-relatedexpenses (2), net 8 448 1,121 of taxStock optionexercises, net of (531 )tax (founder's - -grants)Occupancy and bankpremises - 277 hurricane repair, - -net of taxCore net income $ 12,618 $ 14,145 $ 4,969 Return on average 1.15 % 1.37 % 0.80 %assetsCore return on 1.18 % 1.40 % 0.89 %average assetsReturn on equity 11.86 % 13.86 % 6.31 %Core return on 12.14 % 14.17 % 6.97 %average equity Interest Income: Interest income $ 44,262 $ 44,387 $ 26,016 Core interest 44,262 44,387 26,016 incomeInterest Expense: Interest expense 3,961 4,803 5,805 Core interest 3,961 4,803 5,805 expenseOther Income: Other income 5,083 9,547 2,804 (Gains) losses onformer bank (158 ) (126 )premises and -equipment(Gains) losses on 5 (15 ) (25 )sale of securitiesCore other income 5,088 9,374 2,653 Other Expense: Other expense 26,963 29,602 16,643 Acquisition-related (10 ) (568 ) (1,212 )expensesStock optionexercises - excess (71 )taxes (founder's - -grants)Occupancy and bank premises - (350 ) - - hurricane repairCore other expense $ 26,603 $ 29,034 $ 15,360 Efficiency Ratio: Other expense (a) $ 26,963 $ 29,602 $ 16,643 Core other expense $ 26,603 $ 29,034 $ 15,360 (c)Net interest andother income (1) $ 45,389 $ 49,116 $ 22,990 (b)Core net interestand other income $ 45,389 $ 48,958 $ 22,864 (1) (d)Efficiency ratio (a 59.40 % 60.27 % 72.39 %/b)Core efficiency 58.61 % 59.30 % 67.18 %ratio (c/d) Total AverageInterest-Earnings $ 3,811,335 $ 3,714,828 $ 2,055,603 Assets Net Interest Income:Net interest income $ 40,301 $ 39,584 $ 20,211 Loan discount (3,063 ) (2,567 ) (290 )accretionNet interest incomeexcluding loan $ 37,238 $ 37,017 $ 19,921 discount accretion Net interest margin 4.23 % 4.26 % 3.93 %(2)Net interest marginexcluding loan 3.91 % 3.99 % 3.88 %discount accretion(2)Net interest spread 4.06 % 4.03 % 3.55 %Net interest spreadexcluding loan 3.73 % 3.75 % 3.49 %discount accretion

(1) Excludes gains/losses on sales of securities.(2) Calculated utilizing a 30/360 day count convention.

Business First Bancshares, Inc.Non-GAAP Measures(Unaudited)

March 31, December 31, March 31,(Dollars inthousands, 2021 2020 2020except pershare data) TotalShareholders' (Common)Equity:Totalshareholders' $ 416,701 $ 409,963 $ 282,030 equityGoodwill ) ) ) (53,753 (53,862 (48,495Core deposit ) ) )intangible (9,406 (9,734 (6,471Totaltangible $ 353,542 $ 346,367 $ 227,064 common equity Total Assets: Total assets $ 4,443,586 $ 4,160,360 $ 2,287,662 Goodwill ) ) ) (53,753 (53,862 (48,495Core deposit ) ) )intangible (9,406 (9,734 (6,471Totaltangible $ 4,380,427 $ 4,096,764 $ 2,232,696 assets Common shares 20,804,753 20,621,437 13,067,987 outstanding Book value per common $ 20.03 $ 19.88 $ 21.58 shareTangible book value per $ 16.99 $ 16.80 $ 17.38 common shareCommon equityto total 9.38 % 9.85 % 12.33 %assetsTangiblecommon equity 8.07 % 8.45 % 10.17 %to tangibleassets