What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2024-07-31 compared with 2024-05-02 · 155 added, 105 removed, 779 unchanged (25% of the section changed)

4 unchanged sentences

(Dollars in thousands, except per share data)

March 31, 2024

June 30, 2024

(Unaudited) December 31,

1 unchanged sentence

Federal Funds Sold 113,587 151,134

Securities Available for Sale, at Fair Values (Amortized Cost of $ 963,726 at March 31, 2024 and $ 963,978 at December 31, 2023)

Securities Available for Sale, at Fair Values (Amortized Cost of $ 960,990 at June 30, 2024 and $ 963,978 at December 31, 2023)

875,048 879,571

Mortgage Loans Held for Sale 680 835

Loans and Lease Receivable, Net of Allowance for Loan Losses of $ 41,165 at March 31, 2024 and $ 40,414 at December 31, 2023

Loans and Lease Receivable, Net of Allowance for Loan Losses of $ 41,412 at June 30, 2024 and $ 40,414 at December 31, 2023

5,121,440 4,952,371

24 unchanged sentences

5,000,000 Shares Authorized;

72,010 Shares ($ 1,000 Liquidation Preference) Issued at both March 31, 2024 and December 31, 2023, respectively

72,010 Shares ($ 1,000 Liquidation Preference) Issued at both June 30, 2024 and December 31, 2023, respectively

71,930 71,930

1 unchanged sentence

50,000,000 Shares Authorized;

25,485,383 and 25,351,809 Shares Issued and Outstanding at March 31, 2024 and December 31, 2023, respectively

25,502,175 and 25,351,809 Shares Issued and Outstanding at June 30, 2024 and December 31, 2023, respectively

25,502 25,352

10 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2024 2023 2024 2023

Interest Income:

36 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2024 2023 2024 2023

Consolidated Net Income $ 17,206 $ 19,739 $ 30,776 $ 34,764

10 unchanged sentences

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS ’ EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2024 AND 2023

FOR THE THREE MONTHS ENDED JUNE 30, 2024 AND 2023

(Dollars in thousands, except per share data)

5 unchanged sentences

Shareholders'

Balances at March 31, 2023 $ 71,930 $ 25,320 $ 394,677 $ 173,761 $ ( 67,998 ) $ 597,690

Comprehensive Income:

Net Income - - - 19,739 - 19,739

Other Comprehensive Loss - - - - ( 13,298 ) ( 13,298 )

Cash Dividends Declared on Preferred Stock, $ 18.75 Per Share

- - - ( 1,350 ) - ( 1,350 )

Cash Dividends Declared on Common Stock, $ 0.12 Per Share

- - - ( 3,035 ) - ( 3,035 )

Stock Based Compensation Cost - 24 1,198 - - 1,222

Balances at June 30, 2023 $ 71,930 $ 25,344 $ 395,875 $ 189,115 $ ( 81,296 ) $ 600,968

Balances at March 31, 2024 $ 71,930 $ 25,485 $ 398,511 $ 224,742 $ ( 71,634 ) $ 649,034

Comprehensive Income:

Net Income - - - 17,206 - 17,206

Other Comprehensive Income - - - - 3,850 3,850

Cash Dividends Declared on Preferred Stock, $ 18.75 Per Share

- - - ( 1,350 ) - ( 1,350 )

Cash Dividends Declared on Common Stock, $ 0.14 Per Share

- - - ( 3,567 ) - ( 3,567 )

Stock Issuance - - ( 31 ) - - ( 31 )

Stock Based Compensation Cost - 17 ( 629 ) - - ( 612 )

Balances at June 30, 2024 $ 71,930 $ 25,502 $ 397,851 $ 237,031 $ ( 67,784 ) $ 664,530

The accompanying notes are an integral part of these financial statements

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS ’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023

(Dollars in thousands, except per share data)

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Shareholders'

Balances at December 31, 2022 $ 71,930 $ 25,110 $ 393,690 $ 163,955 $ ( 74,204 ) $ 580,481

2 unchanged sentences

Net Income - - - 34,764 - 34,764

Other Comprehensive Income - - - - 6,206 6,206

Other Comprehensive Loss - - - - ( 7,092 ) ( 7,092 )

Cash Dividends Declared on Preferred Stock, $ 37.50 Per Share

3 unchanged sentences

Stock Based Compensation Cost - 234 2,185 - - 2,419

Balances at March 31, 2023 $ 71,930 $ 25,320 $ 394,677 $ 173,761 $ ( 67,998 ) $ 597,690

Balances at June 30, 2023 71,930 25,344 395,875 189,115 ( 81,296 ) 600,968

Balances at December 31, 2023 $ 71,930 $ 25,352 $ 397,447 $ 216,115 $ ( 66,585 ) $ 644,259

6 unchanged sentences

- - - ( 7,160 ) - ( 7,160 )

Stock Issuance - - ( 31 ) - - ( 31 )

Stock Based Compensation Cost - 150 435 - - 585

Balances at March 31, 2024 $ 71,930 $ 25,485 $ 398,511 $ 224,742 $ ( 71,634 ) $ 649,034

Balances at June 30, 2024 $ 71,930 $ 25,502 $ 397,851 $ 237,031 $ ( 67,784 ) $ 664,530

The accompanying notes are an integral part of these financial statements.

3 unchanged sentences

(Dollars in thousands)

For the Three Months Ended

For the Six Months Ended

Cash Flows From Operating Activities:

13 unchanged sentences

Changes in Assets and Liabilities:

Decrease in Accrued Interest Receivable 590 220

Decrease in Other Assets 1,994 2,386

Increase in Accrued Interest Receivable ( 701 ) ( 1,195 )

Increase in Other Assets ( 561 ) ( 552 )

Increase (Decrease) in Accrued Interest Payable ( 10,324 ) 5,574

Decrease in Other Liabilities ( 2,194 ) ( 100 )

Increase in Other Liabilities 1,224 6,908

Net Cash Provided by Operating Activities 22,667 48,741

9 unchanged sentences

Net Purchases of Premises and Equipment ( 1,444 ) ( 2,241 )

Loss on Disposal of Premises and Equipment 7 -

Proceeds from Sales of Other Real Estate 409 1,126

Net Increase in Federal Funds Sold ( 60,158 ) ( 88,644 )

Net (Increase) Decrease in Federal Funds Sold 37,547 ( 158,244 )

Net Cash Used in Investing Activities ( 139,285 ) ( 440,216 )

For the Three Months Ended

For the Six Months Ended

Cash Flows From Financing Activities:

Net Increase (Decrease) in Deposits 323,960 ( 14,167 )

Net Decrease in Securities Sold Under Agreements to Repurchase ( 1,678 ) ( 3,539 )

Net Increase in Federal Funds Purchased - 565

Net Increase in Deposits 314,880 194,098

Net Increase (Decrease) in Securities Sold Under Agreements to Repurchase ( 440 ) 3,022

Net Decrease in Federal Funds Purchased - ( 14,057 )

Net Advances (Repayments) on Federal Home Loan Bank Borrowings 94,010 ( 47,938 )

Net Proceeds (Repayments) on Bank Term Funding Program ( 300,000 ) 300,000

Repayment of Subordinated Debt - ( 5,700 )

Gain on Extinguishment of Debt - ( 941 )

Costs from Issuance of Common Stock ( 31 ) -

Payment of Dividends on Preferred Stock ( 2,700 ) ( 2,700 )

10 unchanged sentences

Supplemental Schedule for Noncash Investing and Financing Activities:

Change in the Unrealized Gain (Loss) on Securities Available for Sale $ ( 6,416 ) $ 8,002

Change in the Unrealized Loss on Securities Available for Sale $ ( 1,535 ) $ ( 7,549 )

Change in the Unrealized Gain (Loss) on Equity Securities $ 14 $ ( 1,443 )

Change in Deferred Tax Effect on the Unrealized (Gain) Loss on Securities Available for Sale $ 1,353 $ ( 1,662 )

Change in Deferred Tax Effect on the Unrealized Loss on Securities Available for Sale $ 322 $ 1,900

Transfer of Loans to Other Real Estate $ 642 $ 1,118

6 unchanged sentences

(the “Company”) and its two direct, wholly-owned subsidiaries, b1BANK (the “Bank”), and Coastal Commerce Statutory Trust I;

and the Bank’s wholly-owned subsidiaries, Business First Insurance, LLC, Smith Shellnut Wilson, LLC, and Waterstone LSP, LLC ("Waterstone").

and the Bank’s wholly-owned subsidiaries, Business First Insurance, LLC, Smith Shellnut Wilson, LLC, Waterstone LSP, LLC ("Waterstone"), and b1 Securities, LLC.

The Bank operates out of full-service banking centers and loan production offices in markets across Louisiana, the Dallas/Fort Worth metroplex and Houston, Texas.

17 unchanged sentences

Accounting Standards Not Yet Adopted

2023-07, "Segment Reporting (Topic 280):

Improvements to Reportable Segment Disclosures." ASU 2023-07 requires public business entities, including those with one reportable segment, to disclose additional disaggregated information about a reportable segment’s income and expenses in both interim and annual periods.

The standard requires disclosure of the title and position of the chief operating decision maker and an explanation of how the reported measure(s) of segment profit or loss are utilized in assessing segment performance allocating resources.

The update permits disclosure of additional measures of a segment’s profit and losses, if multiple measures are utilized by the chief operating decision maker to allocate resources and evaluate profitability.

Such measures, to the extent they are relevant but not in accordance with GAAP, shall be accompanied by appropriate disclosures and reconciliations to the appropriate reported GAAP amounts.

ASU 2023-07 is effective for the Company starting January 1, 2025, though early adoption is permitted.

Retrospective application is required upon adoption.

The Company is still evaluating the impact of the ASU on the consolidated financial statements and disclosures.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

2023-09, "Income Taxes (Topic 740):

7 unchanged sentences

These reclassifications have no material effect on previously reported shareholders’ equity or net income.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 3 – Mergers and Acquisitions –

3 unchanged sentences

As part of the acquisition, the Company recorded $ 3.1 million in goodwill.

The Company has recorded approximately $ 715,000 and $ 236,000 of acquisition-related costs within merger and conversion-related expenses and salaries and benefits for the three months ended March 31, 2024, and year ended December 31, 2023, respectively.

The Company has recorded approximately $ 1.1 million and $ 236,000 of acquisition-related costs within merger and conversion-related expenses and salaries and benefits for the six months ended June 30, 2024, and year ended December 31, 2023, respectively.

Note 4 – Earnings per Common Share –

3 unchanged sentences

The potential common shares that may be issued by the Company relate to outstanding stock options and unvested restricted stock awards (“RSAs”), excluding any that were antidilutive.

In addition, nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of EPS pursuant to the two-class method.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of EPS pursuant to the two-class method.

For the Three Months Ended

June 30, For the Six Months Ended

2024 2023 2024 2023

(Dollars in thousands, except per share data)

7 unchanged sentences

Diluted Earnings Per Common Share From Net Income Available to Common Shares $ 0.62 $ 0.73 $ 1.10 $ 1.27

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 5 – Securities –

The amortized cost and fair values of securities available for sale as of March 31, 2024, and December 31, 2023 are summarized as follows:

March 31, 2024

The amortized cost and fair values of securities available for sale as of June 30, 2024, and December 31, 2023 are summarized as follows:

June 30, 2024

(Dollars in thousands)

5 unchanged sentences

Total Securities Available for Sale $ 960,990 $ 1,088 $ 87,030 $ 875,048

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

6 unchanged sentences

Total Securities Available for Sale $ 963,978 $ 1,274 $ 85,681 $ 879,571

The following tables present a summary of securities with gross unrealized losses and fair values at March 31, 2024 and December 31, 2023, aggregated by investment category and length of time in a continued unrealized loss position.

The following tables present a summary of securities with gross unrealized losses and fair values at June 30, 2024 and December 31, 2023, aggregated by investment category and length of time in a continued unrealized loss position.

Due to the nature of these investments and current prevailing market prices, these unrealized losses are considered non-credit related.

March 31, 2024

June 30, 2024

Less Than 12 Months 12 Months or Greater Total

6 unchanged sentences

Total Securities Available for Sale $ 88,174 $ 826 $ 698,382 $ 86,204 $ 786,556 $ 87,030

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2023

7 unchanged sentences

Total Securities Available for Sale $ 36,978 $ 1,320 $ 708,113 $ 84,361 $ 745,091 $ 85,681

As of March 31, 2024, and December 31, 2023, respectively, no allowance for credit losses was recognized on available for sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to credit quality.

As of June 30, 2024, and December 31, 2023, respectively, no allowance for credit losses was recognized on available for sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to credit quality.

This determination is based on the Company’s analysis of the underlying risk characteristics including credit ratings, historical loss experience, and other qualitative factors.

Further, the securities continue to make principal and interest payments under their contractual terms and management does not have the intent to sell any of the securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of amortized cost basis.

Further, the securities continue to

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

make principal and interest payments under their contractual terms and management does not have the intent to sell any of the securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of amortized cost basis.

Therefore, the Company has determined the unrealized losses are due to changes in market interest rates compared to rates when the securities were acquired.

The amortized cost and fair values of securities available for sale as of March 31, 2024, by contractual maturity are shown below.

The amortized cost and fair values of securities available for sale as of June 30, 2024, by contractual maturity are shown below.

Actual maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties.

5 unchanged sentences

Total Securities Available for Sale $ 960,990 $ 875,048

Securities available for sale with a fair value of $ 612.2 million and $ 629.7 million, were pledged as collateral on public deposits and for other purposes as required or permitted by law as of March 31, 2024, and December 31, 2023, respectively.

At March 31, 2024 and December 31, 2023, accrued interest receivable on securities was $ 3.7 million and $ 4.7 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Securities available for sale with a fair value of $ 322.5 million and $ 629.7 million, were pledged as collateral on public deposits and for other purposes as required or permitted by law as of June 30, 2024, and December 31, 2023, respectively.

At June 30, 2024 and December 31, 2023, accrued interest receivable on securities was $ 4.8 million and $ 4.7 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

Note 6 – Loans and the Allowance for Loan Losses –

Loans receivable at March 31, 2024 and December 31, 2023 are summarized as follows:

Loans receivable at June 30, 2024 and December 31, 2023 are summarized as follows:

2024 December 31,

10 unchanged sentences

Net Loans $ 5,121,440 $ 4,952,371

The performing 1-4 family residential, multi-family residential, commercial real estate, and commercial loans, are pledged, under a blanket lien, as collateral securing advances from the FHLB at March 31, 2024 and December 31, 2023.

Commercial and agricultural loans are pledged against the Federal Reserve Banks’ (“FRB”) discount window as of March 31, 2024, and December 31, 2023.

Net deferred loan origination fees were $ 12.8 million and $ 12.6 million at March 31, 2024 and December 31, 2023, respectively, and are netted in their respective loan categories above.

Commercial and agricultural loans are pledged against the Federal Reserve Banks’ (“FRB”) discount window as of June 30, 2024, and December 31, 2023.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Net deferred loan origination fees were $ 13.2 million and $ 12.6 million at June 30, 2024 and December 31, 2023, respectively, and are netted in their respective loan categories above.

In addition to loans issued in the normal course of business, the Company considers overdrafts on customer deposit accounts to be loans and reclassifies overdrafts as loans in its consolidated balance sheets.

At March 31, 2024 and December 31, 2023, overdrafts of $ 4.5 million and $ 2.2 million, respectively, have been reclassified to loans.

At both June 30, 2024 and December 31, 2023, overdrafts of $ 2.2 million have been reclassified to loans.

The Bank is the lead lender on participations sold, without recourse, to other financial institutions which amounts are not included in the consolidated balance sheets.

The unpaid principal balances of mortgages and other loans serviced for others were approximately $ 693.0 million and $ 723.5 million at March 31, 2024 and December 31, 2023, respectively.

The Company had servicing rights of $ 928,000 and $ 1.1 million recorded as of March 31, 2024, and December 31, 2023, respectively, and is recorded within other assets.

The unpaid principal balances of mortgages and other loans serviced for others were approximately $ 741.1 million and $ 723.5 million at June 30, 2024 and December 31, 2023, respectively.

The Company had servicing rights of $ 1.1 million recorded at both June 30, 2024, and December 31, 2023, and is recorded within other assets.

The Bank grants loans and extensions of credit to individuals and a variety of businesses and corporations located in its general market areas throughout Louisiana and Texas.

9 unchanged sentences

The segmentation and disaggregation of the portfolio is part of the ongoing credit monitoring process.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Real Estate Portfolio Segment

12 unchanged sentences

Commercial Portfolio Segment

Commercial loans include general commercial and industrial, or C&I, loans, including commercial lines of credit, working capital loans, term loans, equipment financing, asset acquisition, expansion, and development loans, borrowing base loans, letters of credit and other loan products, primarily in the Company’s target markets that are underwritten based on the borrower’s ability to service the debt from income.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

borrowing base loans, letters of credit and other loan products, primarily in the Company’s target markets that are underwritten based on the borrower’s ability to service the debt from income.

Commercial loan risk is derived from the expectation that such loans generally are serviced principally from the operations of the business, and those operations may not be successful.

3 unchanged sentences

The risk is based on changes in the borrower’s financial condition, which could be affected by numerous factors, including divorce, job loss, illness or other personal hardship, and fluctuations in the value of the real estate or personal property securing the consumer loan, if any.

The following table sets forth, as of March 31, 2024, and December 31, 2023, the balance of the allowance for credit losses by loan portfolio segment.

The following table sets forth, as of June 30, 2024, and December 31, 2023, the balance of the allowance for credit losses by loan portfolio segment.

The allowance for credit losses allocated to each portfolio segment is not necessarily indicative of future losses in any particular portfolio segment and does not restrict the use of the allowance to absorb losses in other portfolio segments.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Allowance for Credit Losses and Recorded Investment in Loans Receivable

March 31, 2024

June 30, 2024

(Dollars in thousands)

40 unchanged sentences

The following table summarizes, by segment, the loan balance and specific allowance allocation for those loans which have been individually evaluated.

March 31, 2024 December 31, 2023

June 30, 2024 December 31, 2023

Loan Balance Specific Allocations Loan Balance Specific Allocations

18 unchanged sentences

When a loan has a risk grade of 70 or higher, a special assets officer monitors the loan on an on-going basis.

The following tables set forth the credit quality indicators, disaggregated by loan segment, as of March 31, 2024, and December 31, 2023:

The following tables set forth the credit quality indicators, disaggregated by loan segment, as of June 30, 2024, and December 31, 2023:

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2024

June 30, 2024

(Risk Grade 10-45) Special Mention

124 unchanged sentences

• Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable.

As of March 31, 2024, and December 31, 2023, loan balances outstanding more than 90 days past due and still accruing interest amounted to $ 855,000 and $ 127,000 , respectively.

As of March 31, 2024, and December 31, 2023, loan balances outstanding on nonaccrual status amounted to $ 20.8 million and $ 16.9 million, respectively.

As of June 30, 2024, and December 31, 2023, loan balances outstanding more than 90 days past due and still accruing interest amounted to $ 1.4 million and $ 127,000 , respectively.

As of June 30, 2024, and December 31, 2023, loan balances outstanding on nonaccrual status amounted to $ 21.0 million and $ 16.9 million, respectively.

The Bank considers all loans more than 90 days past due as nonperforming loans.

The following tables provide an analysis of the aging of loans and leases as of March 31, 2024, and December 31, 2023.

The following tables provide an analysis of the aging of loans and leases as of June 30, 2024, and December 31, 2023.

All loans greater than 90 days past due are generally placed on nonaccrual status.

Aged Analysis of Past Due Loans Receivable

March 31, 2024

June 30, 2024

(Dollars in thousands)

36 unchanged sentences

Total $ 3,692 $ 3,386 $ 12,020 $ 19,098 $ 4,973,687 $ 4,992,785 $ 127

The following table presents non-accrual loans by segment as of March 31, 2024, and December 31, 2023, respectively.

The following table presents non-accrual loans by segment as of June 30, 2024, and December 31, 2023, respectively.

2024 December 31,

11 unchanged sentences

Additionally, the Bank makes loan modifications with customers who have elected to work with external renegotiation agencies and these modifications provide solutions to customers’ entire unsecured debt structures.

During the periods ended March 31, 2024, and December 31, 2023, the concessions granted to certain borrowers included extending the payment due dates and offering below market contractual interest rates, and were not significant to the consolidated financial statement

Accrued interest receivable of $ 3.9 million and $ 4.2 million was outstanding as of March 31, 2024, and December 31, 2023, respectively, for all loan deferrals, primarily attributable to the COVID-19 pandemic and, to a much lesser extent, hurricanes which occurred in 2020 and 2021.

During the periods ended June 30, 2024, and December 31, 2023, the concessions granted to certain borrowers included extending the payment due dates and offering below market contractual interest rates, and were not significant to the consolidated financial statement

Accrued interest receivable of $ 4.2 million was outstanding at both June 30, 2024, and December 31, 2023, for all loan deferrals, primarily attributable to the COVID-19 pandemic and, to a much lesser extent, hurricanes which occurred in 2020 and 2021.

These loans are no longer within their deferral periods.

The accrued interest on the loans is due at their maturity.

At March 31, 2024 and December 31, 2023, accrued interest receivable on loans was $ 25.6 million and $ 25.2 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

At June 30, 2024 and December 31, 2023, accrued interest receivable on loans was $ 25.9 million and $ 25.2 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

BUSINESS FIRST BANCSHARES, INC.

10 unchanged sentences

The Company recognized a $ 1.5 million gain on the extinguishment of this debt during 2023.

These notes carried an aggregate $ 1.0 million and $ 1.1 million fair value adjustment as of March 31, 2024, and December 31, 2023, respectively.

These notes carried an aggregate $ 948,000 and $ 1.1 million fair value adjustment as of June 30, 2024, and December 31, 2023, respectively.

Note 8 – Bank Term Funding Program ( “ BTFP ” ) –

6 unchanged sentences

Note 9 – Federal Home Loan Bank ( “ FHLB ” ) Borrowings –

The Company had outstanding advances from the FHLB of $ 308.2 million and $ 211.2 million as of March 31, 2024, and December 31, 2023, respectively, consisting of:

The Company had outstanding advances from the FHLB of $ 305.2 million and $ 211.2 million as of June 30, 2024, and December 31, 2023, respectively, consisting of:

One fixed rate loan with an original principal balance of $ 60.0 million.

The loan was made in 2021 and the balance at March 31, 2024 and December 31, 2023 was $ 32.3 million and $ 35.3 million, respectively, with interest at 0.89 %.

The loan was made in 2021 and the balance at June 30, 2024 and December 31, 2023 was $ 29.3 million and $ 35.3 million, respectively, with interest at 0.89 %.

Principal and interest payments are due monthly and the loan matures in November 2026.

One fixed rate loan of $ 875,000 at both March 31, 2024, and December 31, 2023, that was acquired during the TCBI acquisition, with interest at 4.88 % paid monthly.

One fixed rate loan of $ 875,000 at both June 30, 2024, and December 31, 2023, that was acquired during the TCBI acquisition, with interest at 4.88 % paid monthly.

Principal is due at maturity in April 2025.

One fixed rate loan of $ 25.0 million at both March 31, 2024, and December 31, 2023, with interest at 4.89 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2024, and December 31, 2023, with interest at 4.89 % paid monthly.

Principal is due at maturity in July 2025.

One fixed rate loan of $ 25.0 million at both March 31, 2024, and December 31, 2023, with interest at 4.65 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2024, and December 31, 2023, with interest at 4.65 % paid monthly.

Principal is due at maturity in January 2026.

One fixed rate loan of $ 25.0 million at both March 31, 2024, and December 31, 2023, with interest at 4.56 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2024, and December 31, 2023, with interest at 4.56 % paid monthly.

Principal is due at maturity in July 2026.

One fixed rate loan of $ 25.0 million at both March 31, 2024, and December 31, 2023, with interest at 4.13 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2024, and December 31, 2023, with interest at 4.13 % paid monthly.

Principal is due at maturity in October 2028.

This advance has put options beginning in October 2024.

One fixed rate loan of $ 25.0 million at both March 31, 2024, and December 31, 2023, with interest at 3.92 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2024, and December 31, 2023, with interest at 3.92 % paid monthly.

Principal is due at maturity in October 2030.

This advance has put options beginning in October 2024.

One fixed rate loan of $ 25.0 million at both March 31, 2024, and December 31, 2023, with interest at 3.72 %paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2024, and December 31, 2023, with interest at 3.72 %paid monthly.

Principal is due at maturity in October 2033.

This advance has put options beginning in October 2024.

One fixed rate loan of $ 25.0 million at both March 31, 2024, and December 31, 2023, with interest at 3.57 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2024, and December 31, 2023, with interest at 3.57 % paid monthly.

Principal is due at maturity in October 2033.

This advance has put options beginning in October 2024.

One fixed rate loan of $ 25.0 million at March 31, 2024, with interest at 4.84 % paid monthly.

One fixed rate loan of $ 25.0 million at June 30, 2024, with interest at 4.84 % paid monthly.

Principal is due at maturity in December 2026.

2 unchanged sentences

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

One fixed rate loan of $ 25.0 million at March 31, 2024, with interest at 4.78 % paid monthly.

One fixed rate loan of $ 25.0 million at June 30, 2024, with interest at 4.78 % paid monthly.

Principal is due at maturity in September 2027.

One fixed rate loan of $ 25.0 million at March 31, 2024, with interest at 4.73 % paid monthly.

One fixed rate loan of $ 25.0 million at June 30, 2024, with interest at 4.73 % paid monthly.

Principal is due at maturity in March 2028.

One fixed rate loan of $ 25.0 million at March 31, 2024, with interest at 4.69 % paid monthly.

One fixed rate loan of $ 25.0 million at June 30, 2024, with interest at 4.69 % paid monthly.

Principal is due at maturity in September 2028.

The Company had an additional $ 1.2 billion remaining on the FHLB line availability at March 31, 2024.

The Company had an additional $ 1.2 billion remaining on the FHLB line availability at June 30, 2024.

Note 10 – Leases –

1 unchanged sentence

Certain leases provide for increases in minimum monthly rental payments as defined by the lease agreement.

Rental expense under these agreements was $ 1.5 million and $ 1.4 million for the three months ended March 31, 2024, and 2023, respectively.

At March 31, 2024, the Company had a weighted average lease term of 6.3 years and a weighted average discount rate of 3.28 %.

Rental expense under these agreements was $ 3.0 million and $ 2.8 million for the six months ended June 30, 2024, and 2023, respectively.

At June 30, 2024, the Company had a weighted average lease term of 6.1 years and a weighted average discount rate of 3.37 %.

Future minimum lease payments under these leases are as follows:

(Dollars in thousands)

April 1, 2024 through December 31, 2024 $ 3,432

July 1, 2024 through December 31, 2024 $ 2,379

January 1, 2025 through December 31, 2025 3,869

13 unchanged sentences

The Bank uses the same credit policies in making such commitments and conditional obligations as it does for instruments that are included in the balance sheet.

In the normal course of business, the Bank has made commitments to extend credit of approximately $ 1.2 billion at both March 31, 2024, and December 31, 2023, and standby and commercial letters of credit of approximately $ 48.9 million and $ 45.2 million at March 31, 2024 and December 31, 2023, respectively.

As discussed in Note 6, we have a reserve for unfunded loan commitments of $ 3.4 million and $ 3.3 million at March 31, 2024 and December 31, 2023, respectively.

In the normal course of business, the Bank has made commitments to extend credit of approximately $ 1.2 billion at both June 30, 2024, and December 31, 2023, and standby and commercial letters of credit of approximately $ 50.8 million and $ 45.2 million at June 30, 2024 and December 31, 2023, respectively.

As discussed in Note 6, we have a reserve for unfunded loan commitments of $ 3.1 million and $ 3.3 million at June 30, 2024 and December 31, 2023, respectively.

In the normal course of business, the Bank is involved in various legal proceedings.

21 unchanged sentences

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following tables present the balance of assets and liabilities measured on a recurring basis as of March 31, 2024, and December 31, 2023.

The following tables present the balance of assets and liabilities measured on a recurring basis as of June 30, 2024, and December 31, 2023.

The Company did not record any liabilities at fair value for which measurement of the fair value was made on a recurring basis.

1 unchanged sentence

(Dollars in thousands)

March 31, 2024

June 30, 2024

Available for Sale:

20 unchanged sentences

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The table below provides a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, as of March 31, 2024, and December 31, 2023.

The table below provides a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, as of June 30, 2024, and December 31, 2023.

Corporate Municipal

10 unchanged sentences

Realized Gains (Losses) Included in Net Income - -

Unrealized Gains (Losses) Included in Other Comprehensive Loss 19 ( 3,398 )

Unrealized Losses Included in Other Comprehensive Loss ( 50 ) ( 2,445 )

Purchases - 9,938

2 unchanged sentences

Transfers Out of Level 3 - -

Balance at March 31, 2024 $ 7,987 $ 26,307

The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at March 31, 2024.

Balance at June 30, 2024 $ 7,918 $ 25,843

Estimated Valuation Unobservable Range of

1 unchanged sentence

(Dollars in thousands)

March 31, 2024

June 30, 2024

Corporate Securities $ 7,918 Present Value of Expected Future Cash Flow Model Liquidity Premium 2 %

15 unchanged sentences

(Dollars in thousands)

March 31, 2024

June 30, 2024

Individually Evaluated Loans $ 10,340 $ - $ - $ 10,340

31 unchanged sentences

Commitments to Extend Credit and Standby and Commercial Letters of Credit – The fair values of commitments to extend credit and standby and commercial letters of credit do not differ significantly from the commitment amount and are therefore omitted from this disclosure.

The estimated approximate fair values of the Bank’s financial instruments as of March 31, 2024, and December 31, 2023 are as follows:

The estimated approximate fair values of the Bank’s financial instruments as of June 30, 2024, and December 31, 2023 are as follows:

Fair Value Level 1 Level 2 Level 3

(Dollars in thousands)

March 31, 2024

June 30, 2024

Financial Assets:

28 unchanged sentences

Total $ 5,883,863 $ 5,856,790 $ - $ 613,464 $ 5,243,326

Note 13– Subsequent Events –

On April 25, 2024, the Company and Oakwood Bancshares, Inc., a Texas corporation ("Oakwood"), entered into an Agreement and Plan of Reorganization, providing for the acquisition by the Company of Oakwood.

Oakwood had approximately $ 843.0 million of total assets, including $ 732.0 million of deposits and $ 654.0 million of loans, as of December 31, 2023.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements