GlobeNewswire Inc | Jan 25, 2022 04:01PM EST

January 25, 2022

BATON ROUGE, La., Jan. 25, 2022 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, Baton Rouge, Louisiana, today announced its unaudited results for the year ended December 31, 2021, including net income of $52.1 million, or $2.53 per diluted share, an increase of $22.1 million and $0.89, respectively, from the prior year ended December 31, 2020. The increase was largely impacted by a $9.2 million pre-tax gain on sale of Small Business Administration (SBA) Paycheck Protection Program (PPP) loans during the second quarter of 2021 and pre-tax net interest income of $8.2 million realized in 2021 related to SBA PPP loans. On a non-GAAP basis, core net income for the year ended December 31, 2021, which excludes certain income and expenses, was $53.9 million, or $2.61 per diluted share, increases of $16.5 million and $0.56, respectively, from prior year ended December 31, 2020.

For the quarter ended December 31, 2021, Business First reported net income of $12.1 million, or $0.59 per diluted share, increases of $1.8 million and $0.09, respectively, from the quarter ended September 30, 2021. On a non-GAAP basis, core net income for the quarter ended December 31, 2021, which excludes certain income and expenses, was $11.7 million, or $0.57 per diluted share, an increase of $0.8 million and $0.04, respectively, from the quarter ended September 30, 2021.

Given all that has occurred over the past few years in our company and across the country the fourth quarter of 2021 was the most normal quarter weve had in some time, said Jude Melville, president and CEO. We are adding clarity and visibility to our story: an entrepreneurial company steadily building core profitability, adding employees, clients and product capability, and diversifying risk across an expanding footprint. We enter 2022 eager to close our pending merger with Texas Citizens Bank in Houston, continue building upon our foundational investment in Dallas-Fort Worth and grow our market share across Louisiana.

On January 24, 2022, Business Firsts board of directors declared a quarterly dividend based upon financial performance for the fourth quarter in the amount of $0.12 per share, same as the prior quarter, to the common shareholders of record as of February 15, 2022. The dividend will be paid on February 28, 2022, or as soon thereafter as practicable.

Quarterly Highlights

-- Loan Growth. Total loans held for investment at December 31, 2021, were $3.2 billion, an increase of $123.4 million compared to September 30, 2021, or 4.02% for the quarter and 16.10% annualized. Excluding the decrease in SBA PPP loans, total loans held for investment increased from the quarter ended September 30, 2021, by 4.18%, or 16.71% annualized. Loan growth in Dallas, Tx. (28.6%), greater New Orleans (63.4%), and the Baton Rouge/Capital Region (36.1%) markets accounted for 128.1% of the quarterly loan growth, offset by normal net maturities and payoffs in Business Firsts other markets. -- Stable Credit Quality. Ratios of nonperforming loans compared to loans held for investment and nonperforming assets compared to total assets slightly improved from 0.37% and 0.45%, respectively, at September 30, 2021, to 0.31% and 0.41% at December 31, 2021. The nonperforming asset ratio has decreased from the prior quarter due to asset sales. -- Banking Center Sale. Business First regularly evaluates its Banking Center network in search of optimization opportunities and closed two Banking Centers during Q4 2021, one in Minden, La, and a second by sale in Oak Grove, La., on October 1, 2021. The Banking Center sale resulted in a pre-tax gain on sale of $492,000. -- Texas Citizens Bancorp, Inc. Acquisition. On October 20, 2021, Business First executed a definitive agreement to acquire Texas Citizens Bancshares, Inc. (TCBI), the parent bank holding company for Texas Citizens Bank, National Association, based in Pasadena, Tx. As of December 31, 2021, TCBI had consolidated total assets of $547.2 million, loans of $359.0 million, and deposits of $482.8 million.

Financial Condition

December 31, 2021, Compared to September 31, 2021

Loans

Loans held for investment increased $123.4 million, or 4.02% (16.10% annualized), for the quarter ended December 31, 2021. The increase was largely attributable to loan originations in our construction and land and nonfarm, nonresidential real estate portfolios which were $83.7 million and $32.7 million, respectively. Year to date loan growth was 6.63%, inclusive of SBA PPP loans. As of December 31, 2021, SBA PPP loans with an unpaid principal balance of $5.4 million remained outstanding, compared to $8.9 million as of September 30, 2021.

Excluding the net decrease in SBA PPP loans, total loans held for investment increased for the quarter ended December 31, 2021, by 4.18%, or 16.71% annualized. Year to date loan growth was 19.00% excluding SBA PPP loans.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment decreased from 0.45% as of September 30, 2021, to 0.41% as of December 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.37% as of September 30, 2021, to 0.31% as of December 31, 2021.

Total Shareholders Equity

Book value per common share was $21.24 at December 31, 2021, compared to $21.11 at September 30, 2021. On a non-GAAP basis, tangible book value per share was $17.71 at December 31, 2021, compared to $17.53 at September 30, 2021.

December 31, 2021, Compared to December 31, 2020

Loans

Total loans held for investment increased by $198.3 million compared to December 31, 2020, or 6.63 %. Excluding SBA PPP loans, loans increased $508.3 million, or 19.00%.

Credit Quality

Nonperforming loans as a percentage of total loans held for investment increased from 0.35% as of December 31, 2020, to 0.41% as of December 31, 2021. Nonperforming assets as a percentage of total assets decreased from 0.48% as of December 31, 2020, to 0.31% as of December 31, 2021, largely due to the sales of nonperforming assets.

Total Shareholders Equity

Book value per common share was $21.24 at December 31, 2021, compared to $19.88 at December 31, 2020. On a non-GAAP basis, tangible book value per share was $17.71 at December 31, 2021, compared to $16.80 at December 31, 2020.

Results of Operations

Fourth Quarter 2021 Compared to Third Quarter 2021

Net Income and Diluted Earnings Per Share

For the quarter ended December 31, 2021, net income was $12.1 million, or $0.59 per diluted share, compared to net income of $10.3 million, or $0.50 per diluted share, for the quarter ended September 31, 2021. The increase, $1.8 million and $0.09, respectively, was largely attributable to a $1.1 million increase in pre-tax net interest income and a $455,000 increase in pre-tax gains on sales of securities for the quarter ended December 31, 2021.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended December 31, 2021, was $11.7 million, or $0.57 per diluted share, compared to core net income of $10.9 million, or $0.53 per diluted share, for the quarter ended September 30, 2021. Notable noncore events impacting earnings for the quarter ended December 31, 2021, included $444,000 in gains on sale of securities and a $492,000 gain on sale of the Oak Grove Banking Center within other income, and $266,000 of expenses attributable to acquisition-related expenses, compared to $211,000 in occupancy and bank premises expenses attributable to hurricane damages (primarily related to Ida, 2021), $145,000 in acquisition-related expenses and $392,000 in losses on sales of former premises and equipment within other income, for the quarter ended September 30, 2021.

Interest Income

For the quarter ended December 31, 2021, net interest income totaled $38.3 million and net interest margin and net interest spread were 3.57% and 3.38%, respectively, compared to $37.3 million, 3.71% and 3.51% for the quarter ended September 30, 2021. The average yield on total interest-earning assets was 3.93% for the quarter ended December 31, 2021, compared to 4.14% for the quarter ended September 30, 2021. The increase in interest income was largely attributable to loan growth during the fourth quarter. The average yield on the loan portfolio (excluding SBA PPP loans) was 4.93% for the quarter ended December 31, 2021, compared to 5.11% for the quarter ended September 30, 2021, due to lower-yielding new originations.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.42% and 3.24%, respectively, for the quarter ended December 31, 2021, compared to 3.56% and 3.36% (excluding loan discount accretion of $1.5 million) for the quarter ended September 30, 2021.

Interest Expense

For the quarter ended December 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by six basis points, from 0.44% to 0.38%, compared to the quarter ended September 30, 2021, due to a combination of increased noninterest deposits and lower yielding interest-bearing deposits.

Other Income

For the quarter ended December 31, 2021, other income was higher by $627,000 compared to the quarter ended September 30, 2021. The increase was largely attributable to increases on gains of securities of $455,000, fees and brokerage commissions of $386,000, gains on sales of other real estate owned of $523,000, and gain on sale of the Oak Grove Banking Center of $492,000, offset by a reduction of other income of $1.3 million.

Other Expenses

For the quarter ended December 31, 2021, other expense decreased by $152,000 compared to the quarter ended September 30, 2021.

Provision for Loan Losses

During the quarter ended December 31, 2021, Business First recorded a provision for loan losses of $1.3 million, compared to $1.1 million for the quarter ended September 30, 2021. The reserve for the quarter ended December 31, 2021, was driven primarily by the improvement in the qualitative factors (attributed to the general economy and energy sector), offset by reserves for new loan growth.

Return on Assets and Equity

Return on average assets and equity, each on an annualized basis, were 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021, compared to 0.95% and 9.47%, respectively, for the quarter ended September 30, 2021.

Fourth Quarter 2021 Compared to Fourth Quarter 2020

Net Income and Diluted Earnings Per Share

For the quarter ended December 31, 2021, net income was $12.1 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 in net income and diluted earnings per share were largely attributable to lower interest income related to a reduction of SBA PPP loan fees and discount accretion, as well as the $4.2 million gains on sales of loans under the Main Street Lending Program (Main Street) which occurred in December 2020, offset by the reduction of $2.4 million loss on early extinguishment of Federal Home Loan Bank (FHLB) debt which occurred in December 2020 and a decrease in the provision for loan losses of $834,000.

On a non-GAAP basis, core net income, which excludes certain income and expenses, for the quarter ended December 31, 2021, was $11.7 million, or $0.57 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 December 31, 2021, included $444,000 gains on sale of securities and a $492,000 gain on sale of the Oak Grove Banking Center within other income, and $266,000 of expenses attributable to acquisition-related expenses, 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 December 31, 2021, net interest income totaled $38.3 million and net interest margin and net interest spread were 3.57% and 3.38%, 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 4.93% for the quarter ended December 31, 2021, compared to 5.59% for the quarter ended December 31, 2020. The decrease in interest income was largely attributable to lower fees and interest income from lower SBA PPP loan balances.

Average yield on total interest-earning assets, net interest margin, and net interest spread were negatively impacted for the quarter ended December 31, 2021, by lower yielding loans and securities, offset partially by lower deposit and borrowing costs.

Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.6 million) were 3.42% and 3.24%, respectively, for the quarter ended December 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 December 31, 2021, overall cost of funds (which includes noninterest-bearing deposits) decreased by 15 basis points, from 0.53% to 0.38%, compared to the quarter ended December 31, 2020. The decrease in cost of funds was primarily attributable to an overall reduction in interest rates on deposit offerings and reduction in FHLB advance balances, offset by an increase associated with higher subordinated debt balances.

Other Income

For the quarter ended December 31, 2021, the decrease in other income of $2.6 million was largely attributable to the $4.2 million gains on sales of Main Street loans which occurred during December 2020, offset by an increase in gains on sales of securities of $429,000 and $1.3 million in fees and brokerage commissions, compared to the quarter ended December 31, 2020.

Other Expenses

For the quarter ended December 31, 2021, the decrease in other expense was $187,000 compared to December 31, 2020. Notable changes include a net increase in salaries and employee benefits of $2.4 million, offset by a reduction of other expenses attributable to a reduction of $2.4 million on loss of early extinguishment of FHLB debt.

Provision for Loan Losses

During the quarter ended December 31, 2021, Business First recorded a provision for loan losses of $1.3 million compared to $2.1 million for the quarter ended December 31, 2020. The reserve for the quarter ended December 31, 2020, was impacted by $450,000 in net charge-offs and the impact of the COVID-19 pandemic on the qualitative factors at the time.

Return on Assets and Equity

Return on average assets and return on average equity, each on an annualized basis, were 1.05% and 11.20%, respectively, for the quarter ended December 31, 2021, from 1.37% and 13.86%, respectively, for the quarter ended December 31, 2020.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $4.7 billion in assets, $6.2 billion in assets under management through b1BANKs affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $1.0 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and the Dallas, Texas area, providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a three-time recipient of Baton Rouge Business Reports Best Places to Work in Baton Rouge. Visit b1BANK.com for more information.

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 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.). 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 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 Banking Centers, 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 and the TCBI merger, 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.

Misty Albrechtb1BANK225.286.7879Misty.Albrecht@b1BANK.com

Business First Bancshares, Inc.Selected Financial Information(Unaudited) For the Quarter Ended December 31, September 30, December 31,(Dollars in thousands) 2021 2021 2020 Balance Sheet Ratios Loans (HFI) to Deposits 78.23 % 81.37 % 82.71 %Shareholders' Equity to Assets Ratio 9.17 % 9.77 % 9.85 % Loans Receivable Held for Investment Commercial (1) $ 721,385 $ 723,077 $ 886,325 Real Estate: Construction and Land 548,528 464,808 403,065 Farmland 87,463 85,898 55,883 1-4 Family Residential 467,699 464,462 468,650 Multi-Family Residential 97,508 107,551 95,707 Nonfarm Nonresidential 1,144,426 1,111,771 971,603 Total Real Estate 2,345,624 2,234,490 1,994,908 Consumer and Other (1) 122,599 108,669 110,122 Total Loans (Held for Investment) $ 3,189,608 $ 3,066,236 $ 2,991,355 Allowance for Loan Losses Balance, Beginning of Period $ 28,146 $ 26,702 $ 20,340 Charge-offs ? Quarterly (385 ) (81 ) (715 )Recoveries ? Quarterly 51 378 265 Provision for Loan Losses ? Quarterly 1,300 1,147 2,134 Balance, End of Period $ 29,112 $ 28,146 $ 22,024 Allowance for Loan Losses to Total 0.91 % 0.92 % 0.74 %Loans (HFI)Net Charge-offs (Recoveries) to Average 0.01 % -0.01 % 0.01 %Total Loans Remaining Loan Purchase Discount $ 27,573 $ 29,390 $ 35,580 Nonperforming Assets Nonperforming Loans: Nonaccrual Loans (2) $ 12,868 $ 12,622 $ 9,063 Loans Past Due 90 Days or More (2) 222 1,030 1,523 Total Nonperforming Loans 13,090 13,652 10,586 Other Nonperforming Assets: Other Real Estate Owned 1,427 2,152 9,051 Other Nonperforming Assets - 675 402 Total Other Nonperforming Assets 1,427 2,827 9,453 Total Nonperforming Assets $ 14,517 $ 16,479 $ 20,039 Nonperforming Loans to Total Loans 0.41 % 0.45 % 0.35 %(HFI)Nonperforming Assets to Total Assets 0.31 % 0.37 % 0.48 % (1) Small Business Administration (SBA) Paycheck Protection Program (PPP) loansaccounted for $5.4 million of the commercial portfolio as of December 31, 2021.SBA PPP loans accounted for $9.7 million of the commercial portfolio as ofSeptember 30, 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 Year Ended December 31, September 30, December 31, December 31, December 31,(Dollars inthousands, except 2021 2021 2020 2021 2020per share data) Per Share Data Basic Earnings per $ 0.59 $ 0.51 $ 0.67 $ 2.54 $ 1.65 Common ShareDiluted Earnings 0.59 0.50 0.67 2.53 1.64 per Common ShareDividends per 0.12 0.12 0.10 0.46 0.40 Common ShareBook Value per 21.24 21.11 19.88 21.24 19.88 Common Share Average Common 20,299,704 20,384,879 20,590,239 20,502,249 18,169,599 Shares OutstandingAverage Diluted 20,462,317 20,513,838 20,726,648 20,634,281 18,243,445 Shares OutstandingEnd of PeriodCommon Shares 20,400,349 20,383,504 20,621,437 20,400,349 20,621,437 Outstanding Annualized Performance Ratios Return on Average 1.05 % 0.95 % 1.37 % 1.18 % 0.88 %AssetsReturn on Average 11.20 % 9.47 % 13.86 % 12.25 % 8.42 %EquityNet Interest 3.57 % 3.71 % 4.26 % 3.84 % 4.06 %MarginNet Interest 3.38 % 3.51 % 4.03 % 3.65 % 3.77 %SpreadEfficiency Ratio 65.55 % 67.73 % 60.27 % 61.84 % 67.75 %(1) Total Quarterly/Year-to-Date $ 4,584,460 $ 4,353,885 $ 4,029,660 $ 4,403,670 $ 3,426,120 Average AssetsTotal Quarterly/Year-to-Date 430,834 435,400 399,332 425,692 356,339 Average Equity Other Expenses Salaries and $ 17,355 $ 16,791 $ 14,908 $ 65,825 $ 57,394 Employee BenefitsOccupancy and Bank 1,522 1,629 1,525 7,238 5,349 PremisesDepreciation and 793 1,720 1,338 5,792 4,334 AmortizationData Processing 2,032 1,994 1,967 8,137 5,506 FDIC Assessment 668 581 595 2,194 1,608 FeesLegal and Other 480 553 626 2,679 2,118 Professional FeesAdvertising and 999 612 645 2,712 1,605 PromotionsUtilities and 586 678 617 2,475 2,368 CommunicationsAd Valorem Shares 449 675 850 2,499 2,348 TaxDirectors' Fees 207 201 173 790 464 Other Real EstateOwned Expenses and 76 103 132 736 607 Write-DownsMerger andConversion-Related 266 145 548 515 3,978 ExpensesOther 3,982 3,885 5,678 15,469 13,314 Total Other $ 29,415 $ 29,567 $ 29,602 $ 117,061 $ 100,993 Expenses Other Income Service Charges on $ 1,800 $ 1,763 $ 1,672 $ 6,813 $ 5,358 Deposit AccountsGain (Loss) onSales of 444 (11 ) 15 378 135 SecuritiesDebit Card and ATM 1,554 1,532 1,555 6,199 4,320 Fee IncomeBank-Owned Life 367 356 251 1,396 940 Insurance IncomeGain on Sales of 3 93 4,413 10,117 4,597 LoansMortgage 169 227 208 866 572 Origination IncomeFees and Brokerage 1,721 1,335 433 5,015 970 CommissionGain (Loss) onSales of Other (35 ) (558 ) 199 (1,122 ) 227 Real Estate OwnedGain (Loss) onDisposal of Other (9 ) 14 51 112 (576 )AssetsGain on Sale of 492 - - 492 - BranchPass-ThroughIncome from SBIC 555 405 170 2,615 2,538 PartnershipsOther (86 ) 1,192 580 2,901 2,483 Total Other Income $ 6,975 $ 6,348 $ 9,547 $ 35,782 $ 21,564 (1) Non-GAAP: Noninterest expense (excluding provision for loan losses) dividedby noninterest income plus net interestincome less gain/loss on sales of securities.

Business First Bancshares, Inc.Consolidated Balance Sheets(Unaudited) December 31, September 30, December 31,(Dollars in thousands) 2021 2021 2020 Assets Cash and Due From Banks $ 68,375 $ 81,361 $ 149,131 Federal Funds Sold 227,044 4,646 174,152 Securities Available for Sale, 1,021,061 1,034,491 640,605 at Fair ValuesMortgage Loans Held for Sale 1,200 1,498 969 Loans and Lease Receivable 3,189,608 3,066,236 2,991,355 Allowance for Loan Losses (29,112 ) (28,146 ) (22,024 )Net Loans and Lease Receivable 3,160,496 3,038,090 2,969,331 Premises and Equipment, Net 58,155 56,611 58,593 Accrued Interest Receivable 19,597 19,025 23,895 Other Equity Securities 16,619 15,259 12,693 Other Real Estate Owned 1,427 2,152 9,051 Cash Value of Life Insurance 60,380 59,085 45,030 Deferred Taxes, Net 8,822 5,618 5,858 Goodwill 59,894 60,062 53,862 Core Deposit and Customer 12,203 12,835 9,734 IntangiblesOther Assets 11,105 14,484 7,456 Total Assets $ 4,726,378 $ 4,405,217 $ 4,160,360 Liabilities Deposits Noninterest-Bearing $ 1,291,036 $ 1,201,791 $ 1,164,139 Interest-Bearing 2,786,247 2,566,330 2,452,540 Total Deposits 4,077,283 3,768,121 3,616,679 Securities Sold Under 19,121 27,195 21,825 Agreements to RepurchaseFed Funds Purchased - 16,087 - Short-Term Borrowings 20 20 5,020 Long-Term Borrowings - - 6,000 Subordinated Debt 81,427 81,427 25,000 Subordinated Debt - Trust 5,000 5,000 5,000 Preferred SecuritiesFederal Home Loan Bank 82,022 48,002 43,145 BorrowingsAccrued Interest Payable 1,354 1,835 2,499 Other Liabilities 26,783 27,309 25,229 Total Liabilities 4,293,010 3,974,996 3,750,397 Shareholders' Equity Common Stock 20,400 20,384 20,621 Additional Paid-In Capital 292,271 291,847 299,540 Retained Earnings 121,874 112,243 79,174 Accumulated Other Comprehensive (1,177 ) 5,747 10,628 Income Total Shareholders' Equity 433,368 430,221 409,963 Total Liabilities and $ 4,726,378 $ 4,405,217 $ 4,160,360 Shareholders' Equity

Business First Bancshares, Inc.Consolidated Statements of Income(Unaudited) Three Months Ended Year Ended December 31, September December 31, December 31, December 31, 30,(Dollars in 2021 2021 2020 2021 2020thousands) Interest Income: Interest and Fees $ 38,337 $ 37,900 $ 41,762 $ 156,791 $ 140,459 on LoansInterest andDividends on 3,904 3,598 2,572 13,520 9,121 SecuritiesInterest onFederal Funds Sold 50 36 53 127 175 and Due From BanksTotal Interest 42,291 41,534 44,387 170,438 149,755 Income Interest Expense: Interest on 2,645 3,060 3,736 12,183 17,562 DepositsInterest on 1,302 1,180 1,067 4,371 4,547 BorrowingsTotal Interest 3,947 4,240 4,803 16,554 22,109 Expense Net Interest 38,344 37,294 39,584 153,884 127,646 Income Provision for Loan 1,300 1,147 2,134 8,047 11,435 Losses: Net InterestIncome After 37,044 36,147 37,450 145,837 116,211 Provision for LoanLosses Other Income: Service Charges on 1,800 1,763 1,672 6,813 5,358 Deposit AccountsGain (Loss) onSales of 444 (11 ) 15 378 135 SecuritiesGain on Sales of 3 93 4,413 10,117 4,597 LoansOther Income 4,728 4,503 3,447 18,474 11,474 Total Other Income 6,975 6,348 9,547 35,782 21,564 Other Expenses: Salaries and 17,355 16,791 14,908 65,825 57,394 Employee BenefitsOccupancy and 3,857 3,912 3,373 15,750 11,380 Equipment ExpenseMerger andConversion-Related 266 145 548 515 3,978 ExpenseOther Expenses 7,937 8,719 10,773 34,971 28,241 Total Other 29,415 29,567 29,602 117,061 100,993 Expenses Income Before 14,604 12,928 17,395 64,558 36,782 Income Taxes: Provision for 2,536 2,617 3,561 12,422 6,788 Income Taxes: Net Income: $ 12,068 $ 10,311 $ 13,834 $ 52,136 $ 29,994

Business First Bancshares, Inc.Consolidated Net Interest Margin(Unaudited) Three Months Ended December 31, 2021 September 30, 2021 December 31, 2020 Average Interest Average Average Interest Average Average Interest Average(Dollars in Outstanding Earned / Yield / Outstanding Earned / Yield / Outstanding Earned / Yield /thousands) Balance Interest Rate Balance Interest Rate Balance Interest Rate Paid Paid Paid Assets Interest-Earning Assets:Total Loans $ 3,106,477 $ 38,318 4.93 % $ 2,948,491 $ 37,666 5.11 % $ 2,685,093 $ 37,509 5.59 %(Excluding SBA PPP)SBA PPP Loans 7,733 19 1.00 % 10,150 234 9.24 % 365,058 4,253 4.66 %Securities 1,041,437 3,904 1.50 % 946,950 3,598 1.52 % 603,192 2,572 1.71 %Available for SaleInterest-BearingDeposit in Other 143,488 50 0.14 % 110,472 36 0.13 % 61,485 53 0.34 %BanksTotalInterest-Earning 4,299,135 42,291 3.93 % 4,016,063 41,534 4.14 % 3,714,828 44,387 4.78 %AssetsAllowance for Loan (28,379 ) (27,409 ) (21,020 ) LossesNoninterest-Earning 313,704 365,231 335,852 AssetsTotal Assets $ 4,584,460 $ 42,291 $ 4,353,885 $ 41,534 $ 4,029,660 $ 44,387 Liabilities andShareholders' Equity Interest-Bearing Liabilities:Interest-Bearing $ 2,653,041 $ 2,645 0.40 % $ 2,566,766 $ 3,060 0.48 % $ 2,313,511 $ 3,736 0.65 %DepositsSubordinated Debt 81,427 1,026 5.04 % 81,427 1,026 5.04 % 25,000 422 6.75 %Subordinated Debt -Trust Preferred 5,000 42 3.36 % 5,000 42 3.36 % 5,000 42 3.36 %SecuritiesAdvances fromFederal Home Loan 83,374 229 1.10 % 36,015 106 1.18 % 105,640 407 1.54 %Bank (FHLB)Paycheck ProtectionProgram Liquidity - - 0.00 % - - 0.00 % 79,450 70 0.35 %Facility (PPPLF)Other Borrowings 25,774 5 0.08 % 26,350 6 0.09 % 37,605 126 1.34 %TotalInterest-Bearing 2,848,616 3,947 0.55 % 2,715,558 4,240 0.62 % 2,566,206 4,803 0.75 %Liabilities Noninterest-Bearing Liabilities:Noninterest-Bearing $ 1,276,279 $ 1,172,752 $ 1,033,593 DepositsOther Liabilities 28,731 30,175 30,529 TotalNoninterest-Bearing 1,305,010 1,202,927 1,064,122 LiabilitiesShareholders' 430,834 435,400 399,332 EquityTotal Liabilitiesand Shareholders' $ 4,584,460 $ 4,353,885 $ 4,029,660 Equity Net Interest Spread 3.38 % 3.51 % 4.03 %Net Interest Income $ 38,344 $ 37,294 $ 39,584 Net Interest Margin 3.57 % 3.71 % 4.26 % Overall Cost of 0.38 % 0.44 % 0.53 %Funds NOTE: Average outstanding balances are determined utilizing monthly averagesand average yield/rate is calculated utilizing a 30/360 day count convention.

Business First Bancshares, Inc.Consolidated Net Interest Margin(Unaudited) Year Ended December 31, 2021 December 31, 2020 Average Interest Average Average Interest Average(Dollars in Outstanding Earned / Yield / Outstanding Earned / Yield /thousands) Balance Interest Rate Balance Interest Rate Paid Paid Assets Interest-Earning Assets:Total Loans $ 2,878,306 $ 148,638 5.16 % $ 2,342,034 $ 131,208 5.60 %(Excluding SBA PPP)SBA PPP Loans 158,714 8,153 5.14 % 271,388 9,251 3.41 %Securities 870,282 13,520 1.55 % 483,976 9,121 1.88 %Available for SaleInterest-BearingDeposit in Other 104,471 127 0.12 % 48,345 175 0.36 %BanksTotalInterest-Earning 4,011,773 170,438 4.25 % 3,145,743 149,755 4.76 %AssetsAllowance for Loan (26,132 ) (16,540 ) LossesNoninterest-Earning 418,029 296,917 AssetsTotal Assets $ 4,403,670 $ 170,438 $ 3,426,120 $ 149,755 Liabilities andShareholders' Equity Interest-Bearing Liabilities:Interest-Bearing $ 2,604,825 $ 12,183 0.47 % $ 1,978,295 $ 17,562 0.89 %DepositsSubordinated Debt 68,183 3,526 5.17 % 25,000 1,688 6.75 %Subordinated Debt -Trust Preferred 5,000 168 3.36 % 3,341 121 3.62 %SecuritiesAdvances fromFederal Home Loan 47,325 554 1.17 % 113,999 1,945 1.71 %Bank (FHLB)Paycheck ProtectionProgram Liquidity - - 0.00 % 65,857 237 0.36 %Facility (PPPLF)Other Borrowings 27,182 123 0.45 % 43,286 556 1.28 %TotalInterest-Bearing 2,752,515 16,554 0.60 % 2,229,778 22,109 0.99 %Liabilities Noninterest-Bearing Liabilities:Noninterest-Bearing 1,196,970 812,332 DepositsOther Liabilities 28,493 27,671 TotalNoninterest-Bearing 1,225,463 840,003 LiabilitiesShareholders' 425,692 356,339 EquityTotal Liabilitiesand Shareholders' $ 4,403,670 $ 3,426,120 Equity Net Interest Spread 3.65 % 3.77 %Net Interest Income $ 153,884 $ 127,646 Net Interest Margin 3.84 % 4.06 % Overall Cost of 0.42 % 0.73 %Funds 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 Year Ended December 31, September 30, December 31, December 31, December 31,(Dollars inthousands, except 2021 2021 2020 2021 2020per share data) Interest Income: Interest income $ 42,291 $ 41,534 $ 44,387 $ 170,438 $ 149,755 Core interest 42,291 41,534 44,387 170,438 149,755 incomeInterest Expense: Interest expense 3,947 4,240 4,803 16,554 22,109 Core interest 3,947 4,240 4,803 16,554 22,109 expenseProvision for Loan Losses: (b)Provision for loan 1,300 1,147 2,134 8,047 11,435 lossesCore provision 1,300 1,147 2,134 8,047 11,435 expenseOther Income: Other income 6,975 6,348 9,547 35,782 21,564 (Gains) 1osses onformer bank 78 392 (158 ) 1,010 351 premises andequipment(Gains) 1osses on (444 ) 11 (15 ) (378 ) (135 )sale of securities(Gains) on sale of (492 ) - - (492 ) - branchCore other income 6,117 6,751 9,374 35,922 21,780 Other Expense: Other expense 29,415 29,567 29,602 117,061 100,993 Acquisition-related (266 ) (145 ) (568 ) (515 ) (9,559 )expenses (2)Stock optionexercises - excess - - - - (71 )taxes (founder'sgrants)Occupancy and bankpremises - (57 ) (211 ) - (1,556 ) - hurricane repairCore other expense 29,092 29,211 29,034 114,990 91,363 Pre-Tax Income: (a) Pre-tax income 14,604 12,928 17,395 64,558 36,782 (Gains) 1osses onformer bank 78 392 (158 ) 1,010 351 premises andequipment(Gains) 1osses on (444 ) 11 (15 ) (378 ) (135 )sale of securities(Gains) on sale of (492 ) - - (492 ) - branchAcquisition-related 266 145 568 515 9,559 expenses (2)Stock optionexercises - excess - - - - 71 taxes (founder'sgrants)Occupancy and bankpremises - 57 211 - 1,556 - hurricane repairCore pre-tax income 14,069 13,687 17,790 66,769 46,628 Provision for Income Taxes: (1)Provision for 2,536 2,617 3,561 12,422 6,788 income taxesTax on (gains)losses on former 16 82 (33 ) 211 74 bank premises andequipmentTax on (gains)losses on sale of (93 ) 2 (3 ) (79 ) (28 )securitiesTax on (gains) on (138 ) - - (138 ) - sale of branchTax onacquisition-related 62 24 120 108 1,727 expenses (2)Tax on stock optionexercises - - - - 601 (founder's grants)Tax on occupancyand bank premises - 12 44 - 326 - hurricane repairCore provision for 2,395 2,769 3,645 12,850 9,162 income taxesNet Income: Net income 12,068 10,311 13,834 52,136 29,994 (Gains) losses onformer bankpremises and 62 310 (125 ) 799 277 equipment, net oftax(Gains) losses onsale of securities, (351 ) 9 (12 ) (299 ) (107 )net of tax(Gains) on sale of (354 ) - - (354 ) - branchAcquisition-relatedexpenses (2), net 204 121 448 407 7,832 of taxStock optionexercises - - - - (530 )(founder's grants),net of taxOccupancy and bankpremises - 45 167 - 1,230 - hurricane repair,net of taxCore net income $ 11,674 $ 10,918 $ 14,145 $ 53,919 $ 37,466 Pre-tax,pre-provision $ 15,904 $ 14,075 $ 19,529 $ 72,605 $ 48,217 earnings (a+b)(Gains) losses onformer bank 78 392 (158 ) 1,010 351 premises andequipment(Gains) losses on (444 ) 11 (15 ) (378 ) (135 )sale of securities(Gains) on sale of (492 ) - - (492 ) - branchAcquisition-related 266 145 568 515 9,559 expenses (2)Stock optionexercises - - - - 71 (founder's grants)Occupancy and bankpremises - 57 211 - 1,556 - hurricane repairCore pre-tax,pre-provision $ 15,369 $ 14,834 $ 19,924 $ 74,816 $ 58,063 earnings Average Diluted 20,462,317 20,513,838 20,726,648 20,634,281 18,243,445 Shares Outstanding Diluted Earnings Per Share:Diluted earnings $ 0.59 $ 0.50 $ 0.67 $ 2.53 $ 1.64 per share(Gains) losses onformer bankpremises and (0.00 ) 0.01 (0.01 ) 0.04 0.02 equipment, net oftax(Gains) losses onsale of securities, (0.01 ) 0.00 - (0.02 ) (0.01 )net of tax(Gains) on sale of (0.02 ) - - (0.02 ) - branchAcquisition-relatedexpenses (2), net 0.01 0.01 0.02 0.02 0.43 of taxStock optionexercises - - - - (0.03 )(founder's grants),net of taxOccupancy and bankpremises - 0.00 0.01 - 0.06 - hurricane repair,net of taxCore diluted $ 0.57 $ 0.53 $ 0.68 $ 2.61 $ 2.05 earnings per share Pre-tax,pre-provision $ 0.78 $ 0.69 $ 0.94 $ 3.52 $ 2.64 profit dilutedearnings per share(Gains) losses onformer bank 0.00 0.01 (0.01 ) 0.05 0.02 premises andequipment(Gains) losses on (0.02 ) 0.00 - (0.02 ) (0.01 )sale of securities(Gains) on sale of (0.02 ) - - (0.02 ) - branchAcquisition-related 0.01 0.01 0.03 0.02 0.52 expenses (2)Stock optionexercises - - - - 0.00 (founder's grants)Occupancy and bankpremises - 0.00 0.01 - 0.08 - hurricane repairCore pre-tax,pre-provision $ 0.75 $ 0.72 $ 0.96 $ 3.63 $ 3.17 diluted earningsper share (1) Tax rates, exclusive of certain nondeductible merger-related expenses andgoodwill, utilized were 21.00% 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 Year Ended December 31, September 30, December 31, December 31, December 31,(Dollars inthousands, except 2021 2021 2020 2021 2020per share data) Total Quarterly/Year-to-Date $ 4,584,460 $ 4,353,885 $ 4,029,660 $ 4,403,670 $ 3,426,120 Average AssetsTotal Quarterly/Year-to-Date $ 430,834 $ 435,400 $ 399,332 $ 425,692 $ 356,339 Average Equity Net Income: Net income $ 12,068 $ 10,311 $ 13,834 $ 52,136 $ 29,994 (Gains) losses onformer bankpremises and 62 310 (125 ) 799 277 equipment, net oftax(Gains) losses onsale of securities, (351 ) 9 (12 ) (299 ) (107 )net of tax(Gains) on sale of (354 ) - - (354 ) - branch, net of taxAcquisition-relatedexpenses (2), net 204 121 448 407 7,832 of taxStock optionexercises - - - - (530 )(founder's grants),net of taxOccupancy and bankpremises - 45 167 - 1,230 - hurricane repair,net of taxCore net income $ 11,674 $ 10,918 $ 14,145 $ 53,919 $ 37,466 Return on average 1.05 % 0.95 % 1.37 % 1.18 % 0.88 %assetsCore return on 1.02 % 1.00 % 1.40 % 1.22 % 1.09 %average assetsReturn on equity 11.20 % 9.47 % 13.86 % 12.25 % 8.42 %Core return on 10.84 % 10.03 % 14.17 % 12.67 % 10.51 %average equity Interest Income: Interest income $ 42,291 $ 41,534 $ 44,387 $ 170,438 $ 149,755 Core interest 42,291 41,534 44,387 170,438 149,755 incomeInterest Expense: Interest expense 3,947 4,240 4,803 16,554 22,109 Core interest 3,947 4,240 4,803 16,554 22,109 expenseOther Income: Other income 6,975 6,348 9,547 35,782 21,564 (Gains) losses onformer bank 78 392 (158 ) 1,010 351 premises andequipment(Gains) losses on (444 ) 11 (15 ) (378 ) (135 )sale of securities(Gains) on sale of (492 ) - - (492 ) - branchCore other income 6,117 6,751 9,374 35,922 21,780 Other Expense: Other expense 29,415 29,567 29,602 117,061 100,993 Acquisition-related (266 ) (145 ) (568 ) (515 ) (9,559 )expensesStock optionexercises - excess - - - - (71 )taxes (founder'sgrants)Occupancy and bankpremises - (57 ) (211 ) - (1,556 ) - hurricane repairCore other expense $ 29,092 $ 29,211 $ 29,034 $ 114,990 $ 91,363 Efficiency Ratio: Other expense (a) $ 29,415 $ 29,567 $ 29,602 $ 117,061 $ 100,993 Core other expense $ 29,092 $ 29,211 $ 29,034 $ 114,990 $ 91,363 (c)Net interest andother income (1) $ 44,875 $ 43,653 $ 49,116 $ 189,288 $ 149,075 (b)Core net interestand other income $ 44,461 $ 44,045 $ 48,958 $ 189,806 $ 149,426 (1) (d)Efficiency ratio (a 65.55 % 67.73 % 60.27 % 61.84 % 67.75 %/b)Core efficiency 65.43 % 66.32 % 59.30 % 60.58 % 61.14 %ratio (c/d) Total AverageInterest-Earnings $ 4,299,135 $ 4,016,063 $ 3,714,828 $ 4,011,773 $ 3,145,743 Assets Net Interest Income:Net interest income $ 38,344 $ 37,294 $ 39,584 $ 153,884 $ 127,646 Loan discount (1,559 ) (1,511 ) (2,567 ) (7,750 ) (6,592 )accretionNet interest incomeexcluding loan $ 36,785 $ 35,783 $ 37,017 $ 146,134 $ 121,054 discount accretion Net interest margin 3.57 % 3.71 % 4.26 % 3.84 % 4.06 %(2)Net interest marginexcluding loan 3.42 % 3.56 % 3.99 % 3.64 % 3.85 %discount accretion(2)Net interest spread 3.38 % 3.51 % 4.03 % 3.65 % 3.77 %Net interest spreadexcluding loan 3.24 % 3.36 % 3.75 % 3.45 % 3.56 %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) December 31, September 30, December 31,(Dollars in thousands, 2021 2021 2020 except per share data) Total Shareholders' (Common) Equity:Total shareholders' equity $ 433,368 $ 430,221 $ 409,963 Goodwill (59,894 ) (60,062 ) (53,862 )Core deposit and customer (12,203 ) (12,835 ) (9,734 )intangibleTotal tangible common equity $ 361,271 $ 357,324 $ 346,367 Total Assets: Total assets $ 4,726,378 $ 4,405,217 $ 4,160,360 Goodwill (59,894 ) (60,062 ) (53,862 )Core deposit and customer (12,203 ) (12,835 ) (9,734 )intangibleTotal tangible assets $ 4,654,281 $ 4,332,320 $ 4,096,764 Common shares outstanding 20,400,349 20,383,504 20,621,437 Book value per common share $ 21.24 $ 21.11 $ 19.88 Tangible book value per $ 17.71 $ 17.53 $ 16.80 common shareCommon equity to total 9.17 % 9.77 % 9.85 %assetsTangible common equity to 7.76 % 8.25 % 8.45 %tangible assets