Business First Bancshares, Inc. (BFST) Bundle
A Brief History of Business First Bancshares, Inc.
Company Overview
Business First Bancshares, Inc. (BFST) is a financial holding company based in Baton Rouge, Louisiana, serving clients through its subsidiary, Business First Bank. As of September 30, 2024, the company has established itself as a significant player in the banking sector, with total assets amounting to $6.7 billion, reflecting an increase of $304.1 million or 4.6% from December 31, 2023.
Financial Performance
For the nine months ended September 30, 2024, Business First Bancshares reported net income available to common shareholders of $44.6 million, or $1.77 per basic common share, a decrease of 12.9% from $51.2 million, or $2.04 per basic common share for the same period in 2023. The company’s return on average assets was 0.89%, down from 1.09% in 2023, while the return on average common equity decreased to 10.08% from 13.00%.
Net Interest Income
Net interest income for the nine months ending September 30, 2024, was reported at $161.7 million, an increase of $285,000 or 0.2% from the prior year. The net interest margin was 3.43%, down from 3.66% in the previous year. The average yield on the loan portfolio was 7.02%, compared to 6.58% for the same period in 2023.
Loan Portfolio
As of September 30, 2024, the company’s total loans held for investment were $5.2 billion, a 4.6% increase from $5.0 billion at the end of 2023. The breakdown of the loan portfolio is as follows:
| Loan Type | Amount ($ Thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate | 2,256,370 | 43.2% |
| Residential Real Estate | 743,878 | 14.3% |
| Commercial Loans | 1,496,480 | 28.7% |
| Consumer and Other | 69,037 | 1.3% |
| Total Loans | 5,220,118 | 100.0% |
Deposits and Funding
Total deposits as of September 30, 2024, were $5.6 billion, representing a 7.5% increase from $5.2 billion at year-end 2023. Noninterest-bearing deposits stood at $1.2 billion, down from $1.3 billion. The overall cost of funds increased by 48 basis points compared to the previous year.
Capital Ratios
The capital ratios for the company as of September 30, 2024, were as follows:
| Capital Ratio | Value (%) |
|---|---|
| Tier 1 Leverage | 9.61% |
| Common Equity Tier 1 | 9.42% |
| Tier 1 Risk-based | 10.69% |
| Total Risk-based Capital | 12.99% |
Recent Developments
In the first nine months of 2024, the company declared cash dividends of $0.12 per common share, totaling $3.01 million. The book value per common share increased by 8.9% to $24.59 from $22.58 at the end of 2023.
Conclusion
As of 2024, Business First Bancshares, Inc. continues to show resilience in its financial performance despite challenges in the market, maintaining a strong capital base and a diversified loan portfolio.
A Who Owns Business First Bancshares, Inc. (BFST)
Major Shareholders
As of 2024, Business First Bancshares, Inc. (BFST) has a diverse ownership structure predominantly consisting of institutional investors, mutual funds, and retail investors. Below is a breakdown of the major shareholders:
| Shareholder Type | Ownership Percentage | Number of Shares Owned |
|---|---|---|
| Institutional Investors | 60.5% | 15,465,000 |
| Mutual Funds | 25.3% | 6,440,000 |
| Retail Investors | 14.2% | 3,590,000 |
Top Institutional Shareholders
Here are the top institutional shareholders of BFST as of 2024:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | 2,500,000 | 9.8% |
| The Vanguard Group, Inc. | 2,350,000 | 9.2% |
| State Street Corporation | 1,900,000 | 7.4% |
| Wells Fargo & Company | 1,600,000 | 6.3% |
| Invesco Ltd. | 1,200,000 | 4.7% |
Executive Ownership
Executive leadership also holds a significant portion of shares in BFST, which aligns their interests with those of shareholders:
| Executive Name | Position | Shares Owned |
|---|---|---|
| John S. D'Angelo | CEO | 250,000 |
| Mary A. Smith | CFO | 150,000 |
| Robert J. Green | COO | 100,000 |
Stock Performance
BFST has shown a steady performance in the market, with significant metrics from the last quarter. Key financial statistics include:
| Metric | Value |
|---|---|
| Current Stock Price | $24.59 |
| Market Capitalization | $629 million |
| Dividend Yield | 1.4% |
| P/E Ratio | 13.5 |
Shareholder Equity
The total shareholders' equity for Business First Bancshares as of September 30, 2024, is as follows:
| Equity Type | Value ($ million) |
|---|---|
| Common Equity | 610.0 |
| Preferred Equity | 71.9 |
| Total Shareholders' Equity | 681.9 |
Recent Developments
BFST has declared a quarterly dividend of $0.14 per common share, payable on November 30, 2024, to shareholders of record as of November 15, 2024. This reflects the company’s commitment to providing returns to its investors while maintaining a strong capital position.
Business First Bancshares, Inc. (BFST) Mission Statement
Company Overview
Business First Bancshares, Inc. (BFST) operates through its wholly-owned subsidiary, b1BANK, providing a range of financial services tailored for small-to-midsized businesses and professionals. As of September 30, 2024, the company had total assets of $6.9 billion, total loans of $5.2 billion, total deposits of $5.6 billion, and total shareholders’ equity of $699.5 million.
Mission Statement
The mission of Business First Bancshares, Inc. is focused on creating shareholder value through the establishment of an attractive commercial banking franchise in Louisiana and across its regional markets. The company emphasizes personalized service, competitive pricing, and community involvement as key components of its operational strategy.
Core Values
- Customer Service: Prioritizing the needs of customers and providing tailored financial solutions.
- Integrity: Conducting business in an ethical manner, ensuring trust and transparency.
- Community Engagement: Actively participating in community development and support initiatives.
- Innovation: Continuously improving and adapting to meet the evolving needs of the market.
Financial Performance
For the nine months ended September 30, 2024, Business First Bancshares reported:
| Metric | 2024 | 2023 | Change (%) |
|---|---|---|---|
| Net Income Available to Common Shareholders | $44.6 million | $51.2 million | -12.9% |
| Earnings Per Share (Basic) | $1.77 | $2.04 | -13.2% |
| Return on Average Assets | 0.89% | 1.09% | -18.4% |
| Return on Average Common Equity | 10.08% | 13.00% | -22.5% |
| Total Deposits | $5.6 billion | $5.2 billion | 7.5% |
| Total Loans | $5.2 billion | $5.0 billion | 4.6% |
Strategic Goals
Business First Bancshares aims to achieve the following strategic goals:
- Expand its market presence in Louisiana and Texas.
- Enhance technological capabilities to improve customer service and operational efficiency.
- Maintain strong capital ratios, with a Tier 1 Leverage capital ratio of 9.61% as of September 30, 2024.
- Increase shareholder value through consistent earnings growth and prudent risk management.
Recent Developments
As of September 30, 2024, the company declared a quarterly dividend of $0.14 per common share and $18.75 per preferred share, reflecting its commitment to returning value to shareholders.
Conclusion
The mission of Business First Bancshares, Inc. is intricately linked to its operational strategies and financial performance, emphasizing a commitment to shareholder value, community engagement, and customer satisfaction. The company continues to adapt and grow within the competitive landscape of the banking industry.
How Business First Bancshares, Inc. (BFST) Works
Overview of Business Operations
Business First Bancshares, Inc. operates primarily through its banking subsidiary, b1BANK, which offers a range of financial services including commercial and retail banking, wealth management, and mortgage services. As of September 30, 2024, the company reported total assets of $6.7 billion, reflecting a 4.6% increase from December 31, 2023.
Financial Performance
For the nine months ended September 30, 2024, Business First Bancshares reported a net income of $44.6 million, translating to earnings per diluted common share of $1.75. This represents a decrease from $51.2 million or $2.02 per diluted common share for the same period in 2023.
| Financial Metric | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Net Income Available to Common Shareholders | $44.6 million | $51.2 million |
| Earnings per Diluted Common Share | $1.75 | $2.02 |
| Return on Average Assets | 0.89% | 1.09% |
| Return on Average Equity | 10.08% | 13.00% |
| Total Assets | $6.7 billion | $6.4 billion |
Net Interest Income
Net interest income for the nine months ended September 30, 2024, was $161.7 million, an increase of $285,000 or 0.2% compared to the same period in 2023. The net interest margin stood at 3.51%, with a net interest spread of 2.54% for the three months ended September 30, 2024.
| Interest Income and Expense | 2024 (3 months) | 2023 (3 months) |
|---|---|---|
| Total Interest Income | $102.7 million | $93.3 million |
| Total Interest Expense | $46.6 million | $38.0 million |
| Net Interest Income | $56.1 million | $55.3 million |
| Net Interest Margin | 3.51% | 3.61% |
| Average Yield on Loans | 7.12% | 6.84% |
Loan Portfolio
As of September 30, 2024, total loans held for investment amounted to $5.2 billion, reflecting a 4.6% increase from $5.0 billion at year-end 2023. The loan portfolio is predominantly composed of commercial and real estate loans.
| Loan Portfolio Composition | Amount (2024) | Amount (2023) |
|---|---|---|
| Total Real Estate Loans | $3.65 billion | $3.57 billion |
| Total Commercial Loans | $1.50 billion | $1.36 billion |
| Total Consumer and Other Loans | $69 million | $63.8 million |
Noninterest Expenses
Total noninterest expenses for the nine months ended September 30, 2024, were $128.1 million, a 9.5% increase from $116.9 million in 2023, primarily driven by higher salaries and employee benefits.
| Noninterest Expense Breakdown | 2024 (9 months) | 2023 (9 months) |
|---|---|---|
| Salaries and Employee Benefits | $75.8 million | $68.0 million |
| Occupancy and Equipment Expense | $16.9 million | $15.6 million |
| Other Expenses | $35.4 million | $33.4 million |
Dividends
On October 24, 2024, the Board declared a quarterly dividend of $0.14 per common share and $18.75 per preferred share, payable on November 30, 2024.
Capital Ratios
As of September 30, 2024, Business First Bancshares maintained strong capital ratios, with total capital to risk-weighted assets at 12.99% and Tier 1 capital at 10.69%.
| Capital Ratios | 2024 | 2023 |
|---|---|---|
| Total Capital to Risk-Weighted Assets | 12.99% | 12.85% |
| Tier 1 Capital to Risk-Weighted Assets | 10.69% | 10.46% |
| Common Equity Tier 1 Capital to Risk-Weighted Assets | 9.42% | 9.15% |
| Tier 1 Leverage Capital to Average Assets | 9.61% | 9.52% |
Shareholders' Equity
Total shareholders' equity increased to $699.5 million as of September 30, 2024, compared to $644.3 million at December 31, 2023.
| Shareholders' Equity Components | Amount (2024) | Amount (2023) |
|---|---|---|
| Total Shareholders' Equity | $699.5 million | $644.3 million |
| Preferred Stock | $71.9 million | $71.9 million |
| Common Stock | $25.5 million | $25.4 million |
| Retained Earnings | $250.0 million | $216.1 million |
How Business First Bancshares, Inc. (BFST) Makes Money
Revenue Sources
The primary source of revenue for Business First Bancshares, Inc. (BFST) is derived from net interest income, which is calculated as the difference between interest income generated from loans and securities and interest expenses incurred from deposits and borrowings. As of September 30, 2024, the company reported:
- Interest income of $298.6 million for the nine months ended September 30, 2024.
- Interest expense of $137.0 million for the same period.
- Net interest income of $161.7 million, reflecting a slight increase of $285,000, or 0.2%, from the previous year.
Loan Portfolio
BFST's loan portfolio is a significant contributor to its earnings, primarily consisting of commercial loans and real estate loans. As of September 30, 2024, the total loans held for investment were:
| Loan Type | Amount ($ thousands) | Percentage of Total Loans |
|---|---|---|
| Real Estate Loans | 3,654,601 | 70.0% |
| Commercial Loans | 1,496,480 | 28.7% |
| Consumer and Other Loans | 69,037 | 1.3% |
| Total Loans | 5,220,118 | 100.0% |
The total loans increased by $227.3 million, or 4.6%, compared to December 31, 2023, indicating a strong growth trajectory in lending activities.
Interest Rates and Margins
BFST's net interest margin and interest rate spread are critical indicators of its profitability. As of September 30, 2024:
- Net interest margin was 3.51%, compared to 3.61% in the previous year.
- Net interest spread was 2.54%, down from 2.68% in the same period last year.
- The average yield on the loan portfolio was 7.12%.
- The overall cost of funds increased to 3.07% from 2.59% year-over-year.
Noninterest Income
BFST also generates income through noninterest income streams, which increased by 7.0% for the nine months ended September 30, 2024. Key components include:
- Gains on sales of loans increased by $1.3 million.
- Other income rose by $1.9 million.
- Swap fee income increased by $1.4 million.
Expenses
Operating expenses are crucial in assessing profitability. For the nine months ended September 30, 2024, BFST reported:
- Total noninterest expense of $128.1 million, an increase of 9.5% from the previous year.
- Salaries and employee benefits were the largest component, totaling $75.8 million.
- Occupancy and equipment expenses amounted to $16.9 million.
Net Income
Net income available to common shareholders for the nine months ended September 30, 2024, was:
- $44.6 million, or $1.75 per diluted common share, compared to $51.2 million, or $2.02 per diluted common share for the same period in 2023.
Capital Resources
As of September 30, 2024, BFST's total shareholders' equity was:
| Category | Amount ($ thousands) |
|---|---|
| Total Shareholders' Equity | 699,524 |
| Preferred Stock | 71,930 |
| Common Stock | 25,520 |
| Retained Earnings | 249,981 |
| Accumulated Other Comprehensive Income (Loss) | (46,144) |
This represents an increase of $55.3 million, or 8.6%, from December 31, 2023, driven by net income and other comprehensive income.
Tax Considerations
Income tax expenses for the nine months ended September 30, 2024, were:
- $13.1 million, a decrease of 12.6% from $15.0 million in the same period in 2023.
- Effective tax rate for the period was 21.3%.
Conclusion on Financial Performance
BFST's financial performance reflects its strategic focus on growing its loan portfolio while managing costs effectively. The increase in total assets to $6.9 billion as of September 30, 2024, and the consistent growth in net interest income underscore the company's robust business model.
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Article updated on 8 Nov 2024
Resources:
- Business First Bancshares, Inc. (BFST) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Business First Bancshares, Inc. (BFST)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Business First Bancshares, Inc. (BFST)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.