15 unchanged sentences
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2024 and 2023, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2024, in conformity with accounting principles generally accepted in the United States of America.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 1, 2024, expressed an unqualified opinion thereon.
+Added: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Company’s internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated March 7, 2025, expressed an opinion that the Company had not maintained effective internal control over financial reporting as of December 31, 2024.
Change in Accounting Principle
−Removed: As discussed in Notes 1 and 7 to the consolidated financial statements, effective January 1, 2023, the Company changed its method of accounting for credit losses due to the adoption of Accounting Standards Codification Topic 326, Financial Instruments – Credit Losses.
+Added: As discussed in Notes 1 and 7 to the financial statements, effective January 1, 2023, the Company changed its method of accounting for credit losses due to the adoption of Accounting Standards Codification Topic 326, Financial Instruments – Credit Losses.
Basis for Opinion
14 unchanged sentences
Allowance for Credit Losses
−Removed: As described in Note 1 and Note 7 to the consolidated financial statements, the Company’s allowance for loan losses is a component of the allowance for credit losses.
−Removed: and was $40.4 million as of December 31, 2023.
+Added: As described in Note 1 and Note 7 to the consolidated financial statements, the Company’s allowance for loan losses is a component of the allowance for credit losses and was $54.8 million as of December 31, 2024.
The allowance for loan losses is estimated utilizing forward-looking expected loss models which consider a variety of factors affecting lifetime credit losses.
Loans sharing risk characteristics are grouped into pools to estimate expected credit losses.
−Removed: The Company incorporates forecasted economic scenarios over a reasonable and supportable forecast period, currently one year, which incorporates Company and peer historical losses.
+Added: The Company incorporates forecasted economic scenarios over a reasonable and supportable forecast period which incorporates Company and peer historical losses.
Loss estimates also consider qualitative factors affecting credit losses not reflected in the model.
We identified the allowance for loan losses as a critical audit matter.
−Removed: The principal considerations for that determination included the high degree of judgment and subjectivity relating to assumptions used in the model, such as management’s determination of the reasonable and supportable economic forecast and the use of the qualitative factor adjustments.
+Added: The principal considerations for that determination included the high degree of judgment and subjectivity relating to assumptions used in the model, such as management’s use of qualitative factor adjustments related to economic conditions.
Auditing these assumptions required a high degree of auditor effort, specialized skills and knowledge, and significant auditor judgment.
The primary procedures we performed to address this critical audit matter included:
−Removed: We obtained an understanding of the Company’s model and process for determining the allowance for loan losses, and evaluated the design and tested the operating effectiveness of controls relating to the allowance for loan losses, including:
−Removed: Controls over the completeness and accuracy of data input into the model used to determine the allowance for loan losses, and
−Removed: Controls over management’s review and approval of the allowance for loan losses, including management’s determination of a reasonable and supportable economic forecast and qualitative factor adjustments applied within the qualitative framework to address risks not already incorporated within the model.
−Removed: We evaluated management’s determination of reasonable and supportable economic forecasts, including comparing the factors to independent sources, as well as involving our internal specialists in testing the application of forecasts in the model calculation.
−Removed: We evaluated the reasonableness and adequacy of management’s qualitative factor adjustment framework (including substantively testing management’s identification of risks not already incorporated within the model), the application of qualitative factor adjustments within the framework, and the completeness and accuracy of data utilized in development of the qualitative factor adjustments.
−Removed: We evaluated the mathematical accuracy of the allowance for loan losses, including the mathematical application of the reasonable and supportable economic forecasts and qualitative adjustments on the loans sharing risk characteristics grouped into pools.
−Removed: /s/ FORVIS, LLP
+Added: ◦ We obtained an understanding of the Company’s model and process for determining the allowance for loan losses and evaluated the design and tested the operating effectiveness of controls relating to the allowance for loan losses, including controls over management’s review and approval of qualitative factor adjustments related to economic conditions applied within the qualitative framework to address risks not already incorporated within the model.
+Added: ◦ We evaluated the reasonableness and adequacy of management’s qualitative factor adjustments related to economic conditions and the completeness and accuracy of data utilized in development of such qualitative factor adjustments.
+Added: /s/ Forvis Mazars, LLP
We have served as the Company’s auditor since 2019.
7 unchanged sentences
(2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
−Removed: In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2023, based on criteria established in Internal Control – Integrated Framework:
−Removed: (2013) issued by COSO.
−Removed: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of December 31, 2023 and 2022, and for each of the three years in the period ended December 31 2023, and our report dated March 1, 2024, expressed an unqualified opinion on those consolidated financial statements.
+Added: A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.
+Added: The following material weakness has been identified and included in management’s assessment.
+Added: The Company did not have effective information technology general controls (ITGCs) supporting the Company’s internal control over financial reporting related to change management segregation of duties as described in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A.
+Added: This material weakness was considered in determining the nature, timing, and extent of auditing procedures applied in our audit of the Company’s consolidated financial statements, and this report does not affect our report dated March 7, 2025, on those consolidated financial statements.
+Added: In our opinion, because of the effect of the material weakness described above on the achievement of the objectives of the control criteria, Business First Bancshares, Inc.
+Added: has not maintained effective internal control over financial reporting as of December 31, 2024, based on criteria established in Internal Control – Integrated Framework:
+Added: (2013) issued by the COSO.
+Added: We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated financial statements of the Company as of December 31, 2024 and 2023, and for each of the three years in the period ended December 31, 2024, and our report dated March 7, 2025, expressed an unqualified opinion on those financial statements.
Basis for Opinion
−Removed: The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report on Internal Control over Financial Reporting.
+Added: The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Annual Report.
Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit.
6 unchanged sentences
We believe that our audit provides a reasonable basis for our opinion.
−Removed: Definitions and Limitations of Internal Control o ver Financial Reporting
+Added: As described in Management’s Report on Internal Control over Financial Reporting, the scope of management’s assessment of internal control over financial reporting as of December 31, 2024, has excluded Oakwood Bancshares, Inc.
+Added: (“Oakwood’) acquired on October 1, 2024.
+Added: We have also excluded Oakwood from the scope of our audit of internal control over financial reporting.
+Added: Oakwood represented 11.0% percent of consolidated total assets as of December 31, 2024.
+Added: Definitions and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of reliable financial statements for external purposes in accordance with generally accepted accounting principles.
4 unchanged sentences
Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.
−Removed: /s/ FORVIS, LLP
+Added: /s/ Forvis Mazars, LLP
Fort Worth, Texas
5 unchanged sentences
Cash and Due from Banks $ 319,098 $ 226,110
−Removed: $ 226,110 $ 152,740
Federal Funds Sold 197,669 151,134
−Removed: 151,134 15,606
+Added: Securities Purchased Under Agreements to Resell 50,835 -
Securities Available for Sale, at Fair Values (Amortized Cost of $ 973,423 at December 31, 2024 and $ 963,978 at December 31, 2023)
4 unchanged sentences
Premises and Equipment, Net 81,953 69,480
−Removed: 69,480 63,177
Accrued Interest Receivable 35,872 29,916
−Removed: 29,916 25,666
Other Equity Securities 41,100 33,942
−Removed: 33,942 37,467
Other Real Estate Owned 5,529 1,685
Cash Value of Life Insurance 117,645 96,478
−Removed: 96,478 91,958
Deferred Taxes 29,591 27,323
−Removed: 27,323 31,194
−Removed: 88,391 88,543
+Added: Goodwill 121,572 88,391
Core Deposit and Customer Intangible 17,252 11,895
−Removed: 11,895 14,042
−Removed: $ 6,584,550 $ 5,990,460
+Added: Other Assets 18,149 15,419
+Added: Total Assets $ 7,857,090 $ 6,584,550
Noninterest Bearing $ 1,357,045 $ 1,299,090
−Removed: $ 1,299,090 $ 1,549,381
Interest Bearing 5,154,286 3,949,700
−Removed: 3,949,700 3,270,964
Total Deposits 6,511,331 5,248,790
−Removed: 5,248,790 4,820,345
−Removed: Federal Funds Purchased
Securities Sold Under Agreements to Repurchase 22,621 18,885
−Removed: 18,885 20,208
Bank Term Funding Program - 300,000
Federal Home Loan Bank Borrowings 355,875 211,198
−Removed: 211,198 410,100
Subordinated Debt 99,760 99,990
−Removed: 99,990 110,749
Subordinated Debt - Trust Preferred Securities 5,000 5,000
1 unchanged sentence
Other Liabilities 57,068 41,587
−Removed: 41,587 27,428
Total Liabilities 7,057,624 5,940,291
−Removed: 5,940,291 5,409,979
Commitments and Contingencies (See Notes 19 and 22)
9 unchanged sentences
Additional Paid-in Capital 500,024 397,447
−Removed: 397,447 393,690
Retained Earnings 260,958 216,115
−Removed: 216,115 163,955
Accumulated Other Comprehensive Loss ( 62,998 ) ( 66,585 )
−Removed: ( 66,585 ) ( 74,204 )
Total Shareholders' Equity 799,466 644,259
−Removed: 644,259 580,481
Total Liabilities and Shareholders' Equity $ 7,857,090 $ 6,584,550
−Removed: $ 6,584,550 $ 5,990,460
The accompanying notes are an integral part of these financial statements.
4 unchanged sentences
Years Ended December 31,
+Added: 2024 2023 2022
Interest Income:
15 unchanged sentences
Gain on Sales of Loans 2,973 1,972 574
+Added: Other Income 30,636 27,531 20,512
Total Other Income 44,193 36,642 29,310
6 unchanged sentences
Provision for Income Taxes 17,944 19,543 14,337
+Added: Net Income 65,107 71,043 54,255
Preferred Stock Dividends 5,401 5,401 1,350
1 unchanged sentence
Earnings Per Common Share:
+Added: Basic $ 2.27 $ 2.62 $ 2.34
+Added: Diluted $ 2.26 $ 2.59 $ 2.32
The accompanying notes are an integral part of these financial statements.
4 unchanged sentences
Years Ended December 31,
+Added: 2024 2023 2022
Consolidated Net Income $ 65,107 $ 71,043 $ 54,255
12 unchanged sentences
(Dollars in thousands, except per share data)
+Added: Stock Additional
+Added: Capital Retained
+Added: Earnings Accumulated
Comprehensive
+Added: Income (Loss) Total
Shareholders'
−Removed: Income (Loss)
Balances at December 31, 2021 $ - $ 20,400 $ 292,271 $ 121,874 $ ( 1,177 ) $ 433,368
−Removed: $ - $ 20,621 $ 299,540 $ 79,174 $ 10,628 $ 409,963
Comprehensive Income:
−Removed: - - - 52,136 - 52,136
+Added: Net Income - - - 54,255 - 54,255
Other Comprehensive Loss - - - - ( 73,027 ) ( 73,027 )
−Removed: - - - - ( 11,805 ) ( 11,805 )
−Removed: Cash Dividends Declared, $ 0.46 Per Share
+Added: Cash Dividends Declared on Preferred Stock, $ 18.75 Per Share
- - - ( 1,350 ) - ( 1,350 )
−Removed: Stock Issuance
+Added: Cash Dividends Declared on Common Stock, $ 0.48 Per Share
- - - ( 10,824 ) - ( 10,824 )
+Added: Preferred Stock Issuance, Net of Issuance Costs 71,930 - - - - 71,930
+Added: Stock Issuance, Net of Issuance Costs - 4,636 98,899 - - 103,535
Stock Based Compensation Cost - 119 3,577 - - 3,696
−Removed: - 97 2,764 - - 2,861
Surrendered Shares of Options Exercised - ( 45 ) ( 1,057 ) - - ( 1,102 )
−Removed: - ( 105 ) ( 2,887 ) - - ( 2,992 )
−Removed: Stock Repurchase
−Removed: - ( 475 ) ( 10,448 ) - - ( 10,923 )
Balances at December 31, 2022 71,930 25,110 393,690 163,955 ( 74,204 ) 580,481
−Removed: - 20,400 292,271 121,874 ( 1,177 ) 433,368
+Added: Cumulative Effect of Change in Accounting Principle for Credit Losses - - - ( 827 ) - ( 827 )
Comprehensive Income:
−Removed: - - - 54,255 - 54,255
−Removed: Other Comprehensive Loss
−Removed: - - - - ( 73,027 ) ( 73,027 )
+Added: Net Income - - - 71,043 - 71,043
+Added: Other Comprehensive Income - - - - 7,619 7,619
Cash Dividends Declared on Preferred Stock, $ 75.00 Per Share
2 unchanged sentences
- - - ( 12,655 ) - ( 12,655 )
−Removed: Preferred Stock Issuance, Net of Issuance Costs
−Removed: 71,930 - - - - 71,930
−Removed: Stock Issuance, Net of Issuance Costs
−Removed: - 4,636 98,899 - - 103,535
Stock Based Compensation Cost - 242 3,757 - - 3,999
−Removed: - 119 3,577 - - 3,696
−Removed: Surrendered Shares of Options Exercised
−Removed: - ( 45 ) ( 1,057 ) - - ( 1,102 )
Balances at December 31, 2023 71,930 25,352 397,447 216,115 ( 66,585 ) 644,259
−Removed: 71,930 25,110 393,690 163,955 ( 74,204 ) 580,481
−Removed: Cumulative Effect of Change in Accounting Principle for Credit Losses
−Removed: - - - ( 827 ) - ( 827 )
Comprehensive Income:
−Removed: - - - 71,043 - 71,043
+Added: Net Income - - - 65,107 - 65,107
Other Comprehensive Income - - - - 3,587 3,587
−Removed: - - - - 7,619 7,619
Cash Dividends Declared on Preferred Stock, $ 75.00 Per Share
2 unchanged sentences
- - - ( 14,863 ) - ( 14,863 )
+Added: Stock Issuance, Net of Issuance Costs - 3,973 99,805 - - 103,778
Stock Based Compensation Cost - 227 2,772 - - 2,999
−Removed: - 242 3,757 - - 3,999
Balances at December 31, 2024 $ 71,930 $ 29,552 $ 500,024 $ 260,958 $ ( 62,998 ) $ 799,466
−Removed: $ 71,930 $ 25,352 $ 397,447 $ 216,115 $ ( 66,585 ) $ 644,259
The accompanying notes are an integral part of these financial statements.
4 unchanged sentences
Years Ended December 31,
+Added: 2024 2023 2022
Cash Flows From Operating Activities:
11 unchanged sentences
Increase in Cash Value of Life Insurance ( 2,875 ) ( 2,247 ) ( 1,931 )
−Removed: Deferred Income Tax Expense (Benefit)
+Added: Deferred Income Tax Benefit ( 962 ) ( 2,052 ) ( 1,368 )
Gain on Sale of Branch - ( 945 ) -
Changes in Assets and Liabilities:
−Removed: (Increase) Decrease in Accrued Interest Receivable
+Added: Increase in Accrued Interest Receivable ( 3,079 ) ( 4,250 ) ( 3,466 )
(Increase) Decrease in Other Assets 9 ( 1,683 ) 6,075
6 unchanged sentences
Proceeds from Paydowns of Securities Available for Sale 67,864 53,916 95,019
−Removed: Net Cash Received (Paid) in Acquisition
+Added: Net Cash Received in Acquisition 96,824 - 163,460
Net Cash Paid in Sale of Branch - ( 14,506 ) -
3 unchanged sentences
Proceeds from Death Benefit of Cash Value of Life Insurance 813 - 499
−Removed: Proceeds from Sale of SBA PPP Loans
Net Increase in Loans ( 294,941 ) ( 379,073 ) ( 1,070,354 )
2 unchanged sentences
Proceeds from Sales of Other Real Estate 621 1,240 682
+Added: Net Increase in Securities Purchased Under Agreements to Resell ( 50,835 ) - -
Net (Increase) Decrease in Federal Funds Sold ( 43,957 ) ( 135,528 ) 211,438
1 unchanged sentence
Years Ended December 31,
+Added: 2024 2023 2022
Cash Flows From Financing Activities:
3 unchanged sentences
Net Advances (Repayments) on Federal Home Loan Bank Borrowings 122,488 ( 198,902 ) 327,203
−Removed: Net Proceeds on Bank Term Funding Program
+Added: Net Proceeds (Repayments) on Bank Term Funding Program ( 300,000 ) 300,000 -
Net Proceeds (Repayments) from Short Term Borrowings - - ( 11 )
−Removed: Net Repayments from Long Term Borrowings
−Removed: Proceeds from Issuance of Subordinated Debt
Repayment of Subordinated Debt - ( 8,900 ) -
1 unchanged sentence
Proceeds from Issuance of Preferred Stock, Net of Issuance Costs - - 71,930
−Removed: Proceeds from Issuance of Common Stock, Net of Issuance Costs
+Added: Net Proceeds (Costs) from Issuance of Common Stock ( 31 ) - 48,492
Surrendered Shares of Options Exercised - - ( 1,102 )
−Removed: Repurchase of Common Stock
Payment of Dividends on Preferred Stock ( 5,401 ) ( 5,401 ) ( 1,350 )
1 unchanged sentence
Net Cash Provided by Financing Activities 326,499 502,084 715,309
−Removed: Net Increase (Decrease) in Cash and Cash Equivalents
+Added: Net Increase in Cash and Cash Equivalents 92,988 73,370 84,365
Cash and Cash Equivalents at Beginning of Period 226,110 152,740 68,375
15 unchanged sentences
Net Identifiable Assets Acquired Over Liabilities Assumed $ 73,774 $ - $ 26,394
−Removed: Subordinated Debt Issued as Part of Consideration of Smith Shellnut Wilson
The accompanying notes are an integral part of these financial statements.
4 unchanged sentences
The accounting principles followed by Business First Bancshares, Inc.
−Removed: and its wholly-owned subsidiary, b1BANK (the “Bank”), and the Bank’s wholly-owned subsidiaries, Business First Insurance, LLC and Smith Shellnut Wilson, LLC (“SSW”) are those which are generally practiced within the banking industry.
+Added: and its two wholly-owned subsidiaries, b1BANK (the “Bank”), and Coastal Commerce Statutory Trust, I;
+Added: and the Bank’s wholly-owned subsidiaries, Business First Insurance, LLC, Smith Shellnut Wilson, LLC (“SSW”), Waterstone LSP, LLC ("Waterstone"), and b1 Securities, LLC ("b1Securities") are those which are generally practiced within the banking industry.
The methods of applying those principles conform with generally accepted accounting principles (“GAAP”) and have been applied on a consistent basis.
2 unchanged sentences
The consolidated financial statements include the accounts of Business First Bancshares, Inc.
−Removed: and its wholly-owned subsidiary, b1BANK, and the Bank’s wholly-owned subsidiaries, Business First Insurance, LLC and SSW (collectively, the “Company”).
+Added: and its wholly-owned subsidiary, b1BANK, and the Bank’s wholly-owned subsidiaries, Business First Insurance, LLC, SSW, Waterstone and b1Securities (collectively, the “Company”).
All significant intercompany balances and transactions have been eliminated.
+Added: The Company has a single reportable operating segment called Community Banking.
+Added: Our chief executive officer is our chief operating decision maker.
+Added: Our chief executive officer reviews net income on a routine basis to make decisions about allocating capital and personnel throughout the Company, as well as the composition of the balance sheet.
+Added: See the Consolidated Statements of Income, Consolidated Statements of Financial Condition, and Note 18 for information utilized to assess performance of the reportable operating segment.
Nature of Operations
2 unchanged sentences
The Company is also regulated by the Federal Reserve and is subject to periodic examinations.
−Removed: On March 22, 2021, the Company, through b1BANK, entered into a definitive agreement to acquire SSW, a registered investment advisor with approximately $ 3.5 billion in assets under management, specializing in managing investment portfolios for corporations, foundations and individuals.
−Removed: The acquisition of SSW was consummated on April 1, 2021.
−Removed: At March 31, 2021, SSW reported $ 3.6 million in total assets and $ 2.3 million in total liabilities.
On March 1, 2022, the Company completed the acquisition of Texas Citizens Bancorp, Inc.
2 unchanged sentences
At February 28, 2022 , TCBI reported $ 534.2 million in total assets, $ 349.5 million in loans and $ 477.2 million in deposits.
+Added: On January 31, 2024, the Company completed the acquisition, through b1BANK, of Waterstone, headquartered in Katy, Texas.
+Added: Waterstone offers community banks and small businesses a range of SBA lending services including planning, pre-qualification, packaging, closing and disbursements, servicing and liquidations.
+Added: Upon consummation of the acquisition, we paid $ 3.3 million in cash to the former owners of Waterstone.
+Added: On October 1, 2024, the Company completed the acquisition of Oakwood Bancshares, Inc.
+Added: (“Oakwood”), the parent bank holding company for Oakwood Bank, located in the Dallas, Texas region.
+Added: The company issued 3,973,134 shares of its common stock to the former shareholders of Oakwood.
+Added: At September 30, 2024 , Oakwood reported $ 863.6 million in total assets, $ 700.2 million in loans and $ 741.3 million in deposits.
Preparation of financial statements in conformity with U.S.
5 unchanged sentences
Factors that may cause sensitivity to the aforementioned estimates include but are not limited to:
−Removed: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, economic conditions in the Company’s markets, and changes in applicable banking regulations.
+Added: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, economic conditions
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: in the Company’s markets, and changes in applicable banking regulations.
Actual results may ultimately differ from estimates.
6 unchanged sentences
However, the amount of the change that is reasonably possible cannot be estimated.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Acquisition Accounting
23 unchanged sentences
Loans are stated at principal amounts outstanding, adjusted for deferred fees, costs and fair value adjustments, in the case of acquired loans, less the allowance for loan losses.
−Removed: Interest on loans is accrued daily based on the principal outstanding.
+Added: Interest on loans is accrued daily based on the principal
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Deferred fees, costs and fair value adjustments for acquired loans are recognized as an adjustment to yield over the life of the loan.
4 unchanged sentences
Prior to January 1, 2023, the Bank classified loans as impaired when it was probable the Bank would be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Acquired Loans
19 unchanged sentences
The allowance recorded for credit losses utilizes forward-looking expected loss models to consider a variety of factors affecting lifetime credit losses.
−Removed: These factors include loan and borrower characteristics, such as internal risk ratings, delinquency status, collateral type and available valuation information, and the remaining term of the loan, adjusted for expected prepayments, with loans sharing risk characteristics grouped into pools to estimate expected losses.
+Added: These factors include loan and borrower characteristics, such as internal risk ratings, delinquency status, collateral type and available valuation information, and the remaining term of the loan, adjusted for
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: expected prepayments, with loans sharing risk characteristics grouped into pools to estimate expected losses.
Where loans do not exhibit similar risk characteristics, an individual analysis is performed to consider expected credit losses.
5 unchanged sentences
The allowance for credit losses on loans included allowance allocations calculated in accordance with ASC Topic 310 , “Receivables” and allowance allocations calculated in accordance with ASC Topic 450, “Contingencies.”
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Allowance for loans acquired with credit deterioration
12 unchanged sentences
The results of the analysis are evaluated quarterly to confirm that credit loss estimates are appropriate for the securities portfolio.
−Removed: Based on our assessments, expected credit losses on the investment securities portfolio as of December 31, 2023, was negligible and therefore, no allowance for credit loss was recorded related to our investment securities.
+Added: Based on our assessments, expected credit losses on the investment securities portfolio as of December 31, 2024 and 2023 , was negligible and therefore, no allowance for credit loss was recorded related to our investment securities.
Prior to the adoption of ASU 2016-13 , declines in the fair value of available-for-sale securities below their cost that were deemed to be other than temporary were reflected in earnings as realized losses.
In estimating other-than-temporary impairment losses prior to January 1, 2023 , management considered, among other things, (i) the length of time and the extent to which the fair value had been less than cost, (ii) the financial condition and near-term prospects of the issuer and (iii) the intent and our ability to retain our investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Accrued Interest
12 unchanged sentences
Costs of major additions and improvements are capitalized and expensed over their estimated depreciable lives.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other Real Estate Owned
18 unchanged sentences
The provision for income taxes is based on amounts reported in the statement of income after exclusion of nontaxable income such as interest on state and municipal securities.
−Removed: Also, certain items of income and expense are recognized in different time periods for financial statement purposes than for income tax purposes.
+Added: Also, certain items of income and expense are recognized in
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: different time periods for financial statement purposes than for income tax purposes.
Thus, provisions for deferred taxes are recorded in recognition of such temporary differences.
9 unchanged sentences
Any interest and penalties assessed by income taxing authorities are not significant, and are included in other expenses in these financial statements, as applicable.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Stock Based Compensation
−Removed: As described in Note 16, the Company has issued stock options, stock grants and restricted stock awards which incorporate stock-based compensation.
+Added: As described in Note 16 , the Company has issued stock options, stock grants, phantom stock awards (settled only in cash), and restricted stock awards which incorporate stock-based compensation.
The Company has adopted a fair value-based method of accounting for these awards.
17 unchanged sentences
Accounting Standards Adopted in 2024
−Removed: Effective January 1, 2023, the Company adopted ASU 2016 - 13, Financial Instrument – Credit Losses (Topic 326 ), Measurement of Credit Losses on Financial Instruments related to the impairment of financial instruments.
−Removed: This guidance, commonly referred to as Current Expected Credit Loss (“CECL”), changes impairment recognition to a model that is based on expected losses rather than incurred losses.
−Removed: The allowance for credit losses is established for current expected credit losses on the Company’s loan portfolio, including unfunded credit commitments.
−Removed: Prior to January 1, 2023, the allowance for credit losses was established based on an incurred loss model.
−Removed: Upon the adoption of CECL, certain loan classification and segmentation categories were changed to align with the requirements of the standard and more effectively model the CECL estimate.
−Removed: The updated CECL segmentation is reflected in the disclosures beginning January 1, 2023, and prior period classifications have been adjusted to reflect CECL segmentations.
−Removed: Results from periods prior to January 1, 2023, are presented using the previously applicable GAAP.
−Removed: Upon adoption of the guidance on January 1, 2023, the Company recognized an $ 827,000 reduction to retained earnings, after recording the related deferred tax asset adjustment at our effective tax rate.
−Removed: The Company and b1BANK are subject to various regulatory capital requirements.
−Removed: Although the federal banking regulatory agencies have provided relief for an initial capital decrease at adoption of the CECL standard, the Company did not opt into the relief as the impact of adoption was not significant to the Company’s regulatory capital.
−Removed: The adoption of this guidance did not have a material impact on the Company’s available-for-sale securities as most of this portfolio consists of U.S.
−Removed: treasury and agency securities as well as highly rated residential agency mortgage-backed, corporate, and municipal securities.
−Removed: However, any subsequent estimated credit losses are required to be recognized through an allowance for credit losses associated with the applicable securities.
+Added: 2023-07, "Segment Reporting (Topic 280):
+Added: Improvements to Reportable Segment Disclosures." ASU No.
+Added: 2023-07, "Segment Reporting (Topic 280):
+Added: Improvements to Reportable Segment Disclosures." ASU 2023-07 requires public business entities, including those with one reportable segment, to disclose additional disaggregated information
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: The Company also adopted ASU 2022 - 02, Financial Instruments – Credit Losses (Topic 326 ), Troubled Debt Restructurings and Vintage Disclosures on January 1, 2023.
−Removed: The standard modifies the criteria for identification of troubled debt restructurings as well as enhancing disclosure requirements.
−Removed: Additionally, the guidance requires vintage table disclosures and presentation of gross write-offs during the current period by year of origination for financing receivables within scope of the standard.
−Removed: The implementation of the standard did not have a material impact of the identification of troubled debt restructurings and the vintage and charge-off disclosures have been presented in the footnotes below.
+Added: about a reportable se gment’s income and expenses in both interim and annual periods.
+Added: 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.
+Added: 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.
+Added: 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.
+Added: The adoption of this standard did not have a material impact on the consolidated financial statements and disclosur es.
Accounting Standards Not Yet Adopted
2023 - 09, “ Income Taxes (Topic 740 ) :
−Removed: Improvements to Income Tax Disclosures.
−Removed: ” ASU 2023 - 09 requires public business entities to disclose additional information in specified categories with respect to the rate reconciliation for federal, state and foreign income taxes.
+Added: Improvements to Income Tax Disclosures.” ASU 2023-09 requires public business entities to disclose additional information in specified categories with respect to the rate reconciliation for federal, state and foreign income taxes.
In addition, the updates also require more details about reconciling items in the rate reconciliation in some categories if items meet a quantitative threshold.
4 unchanged sentences
Certain reclassifications may have been made to the prior years’ financial statements in order to conform to the classifications adopted for reporting in 2024 .
−Removed: Specifically for the adoption of CECL, prior to January 1, 2023, the allowance for credit losses was established based on an incurred loss model.
−Removed: Upon adoption of ASU 2016 - 13 (i.e.
−Removed: ASC 326 ), certain loan classification and segmentation categories were changed to align with the requirements of the standard and more effectively model the CECL estimate.
−Removed: The updated CECL segmentation is reflected in the disclosures beginning January 1, 2023.
−Removed: Results from periods prior to January 1, 2023 are presented using the previously applicable GAAP.
These reclassifications have no material effect on previously reported shareholders’ equity or net income.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 3 – Mergers and Acquisitions –
5 unchanged sentences
At February 28, 2022, TCBI reported $ 534.2 million in total assets, $ 349.5 million in loans and $ 477.2 million in deposits.
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table reflects the consideration paid for TCBI’s net assets and the identifiable assets purchased and liabilities assumed at their fair values as of March 1, 2022.
14 unchanged sentences
Core Deposit Intangible 3,875
+Added: Other Assets 14,731
+Added: Total Assets 535,385
+Added: Deposits 477,277
+Added: Borrowings 30,708
Other Liabilities 1,006
2 unchanged sentences
Goodwill Resulting from Merger $ 28,649
−Removed: The Company has recorded approximately $ 236,000 and $ 5.2 million of acquisition-related costs within merger and conversion-related expenses and salaries and benefits for the years ended December 31, 2023 and 2022, respectively.
−Removed: The following is a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed presented above.
−Removed: Cash and Cash Equivalents:
−Removed: The carrying amount of these assets was a reasonable estimate of fair value based on the short-term nature of these assets.
+Added: Oakwood Bancshares, Inc.
+Added: On October 1, 2024, the Company consummated the merger of Oakwood Bancshares, Inc.
+Added: (“Oakwood”), headquartered in the Dallas, Texas region, with and into the Company, pursuant to the terms of that certain Agreement and Plan of Reorganization (the “Oakwood Reorganization Agreement”), dated as of April 25, 2024, by and between the Company and Oakwood.
+Added: Also on October 1, 2024, Oakwood's wholly owned banking subsidiary, Oakwood Bank, was merged with and into b1BANK.
+Added: Pursuant to the terms of the Oakwood Reorganization Agreement, upon consummation of the Oakwood acquisition, the Company issued 3,973,134 shares of its common stock to the former shareholders of Oakwood.
+Added: At September 30, 2024, Oakwood reported $ 863.6 million in total assets, $ 700.2 million in loans and $ 741.3 million in deposits.
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: The following table reflects the consideration paid for Oakwood's net assets and the identifiable assets purchased and liabilities assumed at their fair values as of October 1, 2024.
+Added: Cost and Allocation of Purchase Price for Oakwood Bancshares, Inc.
+Added: (Dollars in thousands, except per share data)
+Added: Purchase Price:
+Added: Shares Issued to Oakwood's Shareholders on October 1, 2024 3,973,134
+Added: Closing Stock Price on September 30, 2024 $ 25.67
+Added: Total Stock Issued $ 101,990
+Added: Partial Shares Paid in Cash 10
+Added: Other Consideration, Including Equity Awards 1,819
+Added: Total Purchase Price $ 103,819
+Added: Net Assets Acquired:
+Added: Cash and Cash Equivalents $ 102,691
Securities Available for Sale 15,996
+Added: Loans and Leases Receivable, Net of Allowance 687,456
+Added: Premises and Equipment, Net 16,175
+Added: Cash Value of Life Insurance 16,105
+Added: Core Deposit Intangible 7,640
+Added: Other Assets 9,320
+Added: Total Assets 855,383
+Added: Deposits 742,347
+Added: Borrowings 22,189
+Added: Other Liabilities 17,073
+Added: Total Liabilities 781,609
+Added: Net Assets Acquired 73,774
+Added: Goodwill Resulting from Merger $ 30,045
+Added: The Company has recorded approximately $ 1.6 million and $ 236,000 of acquisition-related costs within merger and conversion-related expenses and salaries and benefits for the years ended December 31, 2024 and 2023, respectively.
+Added: The following is a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed presented above.
+Added: Cash and Cash Equivalents:
+Added: The carrying amount of these assets was a reasonable estimate of fair value based on the short-term nature of these assets.
+Added: Securities Available for Sale:
Fair values for securities were based on quoted market prices, where available.
5 unchanged sentences
The discount rate did not include an explicit factor for credit losses, as that was included within the estimated cash flows.
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: As discussed in Note 1, acquired loans are evaluated as either PCD or non-PCD at acquisition, based upon management's assessment of whether or not a loan has experienced more than insignificant credit deterioration since origination.
+Added: This evaluation is completed by management using a variety of factors, including individual loan characteristics as well as industry type and collateral evaluation, among other factors.
+Added: At acquisition, management designated loans with a fair value of $ 146.9 million as PCD.
+Added: The fair value was inclusive of an $ 8.4 million PCD allowance and $ 2.3 million non-credit fair value discount from the acquired contractual value.
+Added: The remainder of the Oakwood loan portfolio, with a fair value of $ 540.6 million at acquisition included a non-credit fair value discount of $ 2.0 million from the acquired contractual value.
Core Deposit Intangible ( “ CDI ” ):
4 unchanged sentences
Fair values for borrowings were based on estimated market rates over the remaining terms of the subordinated debt issuances.
−Removed: Pro forma tables for TCBI were impractical to include due to the cost versus benefit of including such disclosures.
−Removed: Smith Shellnut Wilson, LLC
−Removed: On April 1, 2021, the Company consummated the acquisition, through b1BANK, of SSW, headquartered in Ridgeland, Mississippi, pursuant to the terms of the definitive agreement dated as of March 22, 2021.
−Removed: Pursuant to the terms of the agreement, upon consummation of the acquisition, the Company paid $ 7.3 million in cash and issued $ 3.9 million in subordinated debt, which is further described in Note 11, to the former owners of SSW.
−Removed: At March 31, 2021, SSW reported $ 3.6 million in total assets and $ 2.3 million in total liabilities.
−Removed: As part of the acquisition, the Company recorded $ 6.5 million in goodwill and $ 4.3 million in customer intangibles to be amortized over a 10 year period.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: Pro forma tables for TCBI and Oakwood were impractical to include due to the cost versus benefit of including such disclosures.
+Added: Waterstone LSP, LLC
+Added: On January 31, 2024, the Company consummated the acquisition, through b1BANK, of Waterstone, headquartered in Katy, Texas.
+Added: Waterstone offers community banks and small businesses a range of SBA lending services including planning, pre-qualification, packaging, closing and disbursements, servicing and liquidation.
+Added: Upon consummation of the acquisition, the Company paid $ 3.3 million in cash to the former owners of Waterstone.
Note 4 – Earnings per Common Share –
2 unchanged sentences
Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company.
−Removed: 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.
−Removed: 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.
+Added: The potential common shares that may be issued by the Company relate to outstanding stock options, unvested restricted stock awards (“RSAs”), unvested restricted stock units ("RSUs") and performance shares, excluding any that were antidilutive.
+Added: In addition, nonvested share-based payment awards that
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: 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.
Years Ended December 31,
+Added: 2024 2023 2022
(Dollars in thousands, except per share data)
+Added: Net Income $ 65,107 $ 71,043 $ 54,255
Preferred Stock Dividends 5,401 5,401 1,350
5 unchanged sentences
Diluted Earnings Per Common Share From Net Income Available to Common Shares $ 2.26 $ 2.59 $ 2.32
−Removed: Note 5 – Cash and Due From Bank –
+Added: Note 5 – Cash and Due From Banks –
The Bank is required to maintain funds in cash or on deposit with the Federal Reserve Bank.
The Bank had no required reserves as of December 31, 2024 and 2023.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 6 – Securities –
3 unchanged sentences
Treasury Securities $ 17,631 $ - $ 956 $ 16,675
−Removed: $ 17,690 $ - $ 1,451 $ 16,239
Government Agencies 10,164 - 576 9,588
−Removed: 10,258 - 848 9,410
Corporate Securities 47,855 348 3,038 45,165
−Removed: 49,609 - 5,770 43,839
Mortgage-Backed Securities 584,321 542 47,125 537,738
−Removed: 555,148 976 49,814 506,310
Municipal Securities 313,452 23 29,092 284,383
−Removed: 331,273 298 27,798 303,773
Total Securities Available for Sale $ 973,423 $ 913 $ 80,787 $ 893,549
−Removed: $ 963,978 $ 1,274 $ 85,681 $ 879,571
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
1 unchanged sentence
Treasury Securities $ 17,690 $ - $ 1,451 $ 16,239
−Removed: $ 32,783 $ - $ 2,668 $ 30,115
Government Agencies 10,258 - 848 9,410
−Removed: 50,288 - 2,916 47,372
Corporate Securities 49,609 - 5,770 43,839
−Removed: 48,475 25 2,496 46,004
Mortgage-Backed Securities 555,148 976 49,814 506,310
−Removed: 506,671 267 55,213 451,725
Municipal Securities 331,273 298 27,798 303,773
−Removed: 347,382 11 31,858 315,535
Total Securities Available for Sale $ 963,978 $ 1,274 $ 85,681 $ 879,571
−Removed: $ 985,599 $ 303 $ 95,151 $ 890,751
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following tables present a summary of securities with gross unrealized losses and fair values at December 31, 2024 and 2023, aggregated by investment category and length of time in a continued unrealized loss position.
1 unchanged sentence
December 31, 2024
−Removed: Less Than 12 Months
−Removed: 12 Months or Greater
+Added: Less Than 12 Months 12 Months or Greater Total
(Dollars in thousands)
Treasury Securities $ - $ - $ 16,675 $ 956 $ 16,675 $ 956
−Removed: $ - $ - $ 16,239 $ 1,451 $ 16,239 $ 1,451
Government Agencies - - 9,588 576 9,588 576
−Removed: - - 9,410 848 9,410 848
Corporate Securities 4,262 132 28,894 2,906 33,156 3,038
−Removed: 7,529 362 36,106 5,408 43,635 5,770
Mortgage-Backed Securities 151,443 3,618 341,347 43,507 492,790 47,125
−Removed: 21,436 895 375,891 48,919 397,327 49,814
Municipal Securities 33,240 686 240,768 28,406 274,008 29,092
−Removed: 8,013 63 270,467 27,735 278,480 27,798
Total Securities Available for Sale $ 188,945 $ 4,436 $ 637,272 $ 76,351 $ 826,217 $ 80,787
−Removed: $ 36,978 $ 1,320 $ 708,113 $ 84,361 $ 745,091 $ 85,681
December 31, 2023
−Removed: Less Than 12 Months
−Removed: 12 Months or Greater
+Added: Less Than 12 Months 12 Months or Greater Total
(Dollars in thousands)
Treasury Securities $ - $ - $ 16,239 $ 1,451 $ 16,239 $ 1,451
−Removed: $ 9,702 $ 374 $ 20,413 $ 2,294 $ 30,115 $ 2,668
Government Agencies - - 9,410 848 9,410 848
−Removed: 24,405 595 22,967 2,321 47,372 2,916
Corporate Securities 7,529 362 36,106 5,408 43,635 5,770
−Removed: 19,564 1,359 6,385 1,137 25,949 2,496
Mortgage-Backed Securities 21,436 895 375,891 48,919 397,327 49,814
−Removed: 115,692 7,473 324,043 47,740 439,735 55,213
Municipal Securities 8,013 63 270,467 27,735 278,480 27,798
−Removed: 143,035 10,206 131,944 21,652 274,979 31,858
Total Securities Available for Sale $ 36,978 $ 1,320 $ 708,113 $ 84,361 $ 745,091 $ 85,681
−Removed: $ 312,398 $ 20,007 $ 505,752 $ 75,144 $ 818,150 $ 95,151
−Removed: As of December 31, 2023, 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.
−Removed: This determination is based on the Company’s analysis of the underlying risk characteristics including credit ratings, historical loss experience, and other qualitative factors.
−Removed: 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.
−Removed: Therefore, the Company has determined the unrealized losses are due to changes in market interest rates compared to rates when the securities were acquired.
−Removed: For the period ended December 31, 2022, management evaluated securities for other than temporary impairment.
−Removed: Consideration was given to the extent and length of time the fair value had been below cost, the reasons for the decline in value, and the Company’s intent to sell a security or whether it was more likely than not that the Company would be required to sell the security before the recovery of its amortized cost.
−Removed: The Company utilized a process to identify securities that could potentially have a credit impairment that was other than temporary.
−Removed: The process involved evaluating each security for impairment by monitoring credit performance, collateral type, collateral geography, loan-to-value ratios, credit scores, loss severity levels, pricing levels, downgrades by rating agencies, cash flow projections and other factors as indicators of potential credit issues.
−Removed: The Company determined no other than temporary impairment existed at December 31, 2022.
+Added: As of December 31, 2024 and 2023, 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.
+Added: This determination is based on the Company’s analysis of the underlying risk characteristics including credit ratings,
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: historical loss experience, and other qualitative factors.
+Added: 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.
+Added: 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 December 31, 2024 by contractual maturity are shown below.
2 unchanged sentences
Less Than One Year $ 28,943 $ 28,658
−Removed: $ 17,287 $ 17,126
One to Five Years 184,587 173,167
−Removed: 181,791 171,117
Over Five to Ten Years 358,681 328,897
−Removed: 384,160 349,660
Over Ten Years 401,212 362,827
−Removed: 380,740 341,668
Total Securities Available for Sale $ 973,423 $ 893,549
−Removed: $ 963,978 $ 879,571
Securities available for sale with a fair value of $ 385.4 million and $ 629.7 million, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law as of December 31, 2024 and 2023.
2 unchanged sentences
There were $ 14,000 , $ 2.6 million and $ 57,000 realized gross losses from sales or redemptions of securities for the years ended December 31, 2024, 2023 and 2022, respectively.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Other Equity Securities and VIEs
3 unchanged sentences
The Company also has investments of $ 302,000 in TIB National Association, $ 562,000 in Bankers Insurance, LLC, and $ 2.2 million in First National Banker’s Bank at both December 31, 2024 and 2023.
−Removed: The Company also had an investment in Senior Housing Crime Prevention Foundation stock of $ 501,000 at December 31, 2022.
These investments are carried at cost, less any impairment, due to the lack of a quoted market price and a ready market for these types of investments.
3 unchanged sentences
The Company is not the primary beneficiary and does not hold a controlling interest in the VIEs as it does not have the power to direct the activities that most significantly impact the VIEs’ economic performance.
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Small Business Investment Companies (“SBIC”) and financial technology (“Fintech”) funds at December 31, 2024 and 2023 are summarized below.
6 unchanged sentences
Bluehenge Capital Secured Debt SBIC II, L.P.
−Removed: New Louisiana Agnel Fund 2, LLC
+Added: New Louisiana Angel Fund 2, LLC 49 49
Pharos Capital Partners IV-A, L.P.
16 unchanged sentences
Real estate loans:
−Removed: $ 2,217,928 $ 2,020,406
−Removed: 669,798 722,074
−Removed: 682,394 656,378
+Added: Commercial $ 2,483,223 $ 2,217,928
+Added: Construction 670,502 669,798
+Added: Residential 884,533 682,394
Total real estate loans 4,038,258 3,570,120
−Removed: 3,570,120 3,398,858
−Removed: 1,358,838 1,153,873
+Added: Commercial 1,868,675 1,358,838
Consumer and other 74,466 63,827
−Removed: 63,827 53,445
Total loans held for investment 5,981,399 4,992,785
−Removed: 4,992,785 4,606,176
Allowance for loan losses ( 54,840 ) ( 40,414 )
−Removed: ( 40,414 ) ( 38,178 )
−Removed: $ 4,952,371 $ 4,567,998
+Added: Net loans $ 5,926,559 $ 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 December 31, 2024 and 2023.
−Removed: Commercial and agricultural loans are pledged against the Federal Reserve Banks’ discount window as of December 31, 2023.
−Removed: Net deferred loan origination fees were $ 12.6 million and $ 13.1 million at December 31, 2023 and 2022, respectively, and are netted in their respective loan categories above.
+Added: Commercial and agricultural loans are pledged against the Federal Reserve Banks’ discount window as of December 31, 2024 and 2023.
+Added: Net deferred loan origination fees were $ 12.6 million at both December 31, 2024 and 2023, 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.
2 unchanged sentences
The unpaid principal balances of mortgages and other loans serviced for others were approximately $ 747.0 million and $ 723.5 million at December 31, 2024 and 2023, respectively.
−Removed: The Company has servicing rights of $ 1.1 million and $ 1.7 million recorded at December 31, 2023 and 2022, respectively, which are recorded within other assets.
+Added: The Company has servicing rights of $ 832,000 and $ 1.1 million recorded at December 31, 2024 and 2023, respectively, which are 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.
32 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.
+Added: The following tables set forth, as of December 31, 2024 and 2023, the balance of the allowance for credit losses by loan portfolio segment.
+Added: 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.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: The following table sets forth, as of December 31, 2023, the balance of the allowance for credit losses by loan portfolio segment.
−Removed: 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.
Allowance for Credit Losses and Recorded Investment in Loans Receivable
3 unchanged sentences
Beginning Balance $ 17,676 $ 6,596 $ 5,485 $ 10,424 $ 233 $ 40,414
−Removed: $ 14,702 $ 5,768 $ 5,354 $ 11,721 $ 633 $ 38,178
+Added: Adjustment for Oakwood on PCD Loans 4,013 1,420 374 2,603 - 8,410
+Added: Charge-offs 263 ( 2,261 ) ( 297 ) ( 986 ) ( 2,392 ) ( 5,673 )
+Added: Recoveries 86 515 14 236 329 1,180
+Added: Provision 1,422 892 2,460 3,390 2,345 10,509
+Added: Ending Balance $ 23,460 $ 7,162 $ 8,036 $ 15,667 $ 515 $ 54,840
+Added: Reserve for Unfunded Credit Commitments:
+Added: Beginning Balance $ 206 $ 1,546 $ 177 $ 1,372 $ 23 $ 3,324
+Added: Provision (Recovery) 22 ( 235 ) 181 393 3 364
+Added: Ending Balance $ 228 $ 1,311 $ 358 $ 1,765 $ 26 $ 3,688
+Added: Total Allowance for Credit Losses $ 23,688 $ 8,473 $ 8,394 $ 17,432 $ 541 $ 58,528
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: December 31, 2023
+Added: (Dollars in thousands)
+Added: Allowance for Loan Losses:
+Added: Beginning Balance $ 14,702 $ 5,768 $ 5,354 $ 11,721 $ 633 $ 38,178
Adoption of ASU 2016-13 4,823 933 ( 365 ) ( 2,483 ) ( 248 ) 2,660
−Removed: 4,823 933 ( 365 ) ( 2,483 ) ( 248 ) 2,660
Beginning Balance After Adoption 19,525 6,701 4,989 9,238 385 40,838
−Removed: 19,525 6,701 4,989 9,238 385 40,838
−Removed: ( 2,049 ) ( 36 ) ( 42 ) ( 2,813 ) ( 1,489 ) ( 6,429 )
−Removed: 26 1 18 672 327 1,044
+Added: Charge-offs ( 2,049 ) ( 36 ) ( 42 ) ( 2,813 ) ( 1,489 ) ( 6,429 )
+Added: Recoveries 26 1 18 672 327 1,044
Provision (Recovery) 174 ( 70 ) 520 3,327 1,010 4,961
−Removed: 174 ( 70 ) 520 3,327 1,010 4,961
Ending Balance $ 17,676 $ 6,596 $ 5,485 $ 10,424 $ 233 $ 40,414
−Removed: $ 17,676 $ 6,596 $ 5,485 $ 10,424 $ 233 $ 40,414
Reserve for Unfunded Credit Commitments:
Beginning Balance $ 220 $ 137 $ 13 $ 229 $ 6 $ 605
−Removed: $ 220 $ 137 $ 13 $ 229 $ 6 $ 605
Adoption of ASU 2016-13 116 2,113 190 657 121 3,197
−Removed: 116 2,113 190 657 121 3,197
Beginning Balance After Adoption 336 2,250 203 886 127 3,802
−Removed: 336 2,250 203 886 127 3,802
Provision (Recovery) ( 130 ) ( 704 ) ( 26 ) 486 ( 104 ) ( 478 )
−Removed: ( 130 ) ( 704 ) ( 26 ) 486 ( 104 ) ( 478 )
Ending Balance $ 206 $ 1,546 $ 177 $ 1,372 $ 23 $ 3,324
−Removed: $ 206 $ 1,546 $ 177 $ 1,372 $ 23 $ 3,324
Total Allowance for Credit Losses $ 17,882 $ 8,142 $ 5,662 $ 11,796 $ 256 $ 43,738
−Removed: $ 17,882 $ 8,142 $ 5,662 $ 11,796 $ 256 $ 43,738
Included within the above allowance are loans which management has individually evaluated to determine an allowance for credit losses.
The following table summarizes, by segment, the loan balance and specific allowance allocation for those loans which have been individually evaluated.
−Removed: December 31, 2023
−Removed: January 1, 2023
−Removed: Specific Allocations
−Removed: Specific Allocations
−Removed: (Dollars in thousands)
−Removed: Real estate loans:
−Removed: $ 883 $ - $ 3,008 $ 1,915
−Removed: 2,334 513 1,424 513
−Removed: 1,533 - 1,558 3
−Removed: Total real estate loans
−Removed: 4,750 513 5,990 2,431
−Removed: - - 6,096 1,779
−Removed: Consumer and other
−Removed: $ 4,750 $ 513 $ 12,086 $ 4,210
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: The following table sets forth, as of December 31, 2022 ( prior to the adoption of ASU 2016 - 13 ), the balance of the allowance for credit losses by portfolio segment, disaggregated by impairment methodology, which is then further segregated by amounts evaluated for impairment collectively and individually.
−Removed: 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.
−Removed: December 31, 2022
+Added: December 31, 2024 January 1, 2023
+Added: Loan Balance Specific Allocations Loan Balance Specific Allocations
(Dollars in thousands)
−Removed: Allowance for Loan Losses:
−Removed: Beginning Balance
−Removed: $ 10,515 $ 4,498 $ 4,565 $ 9,016 $ 518 $ 29,112
−Removed: ( 51 ) ( 16 ) ( 191 ) ( 2,139 ) ( 424 ) ( 2,821 )
−Removed: 50 25 20 739 167 1,001
−Removed: 4,188 1,261 960 4,105 372 10,886
−Removed: Ending Balance
−Removed: $ 14,702 $ 5,768 $ 5,354 $ 11,721 $ 633 $ 38,178
−Removed: Ending Balance:
−Removed: Individually Evaluated for Impairment
−Removed: $ 59 $ 21 $ 99 $ 2,020 $ 15 $ 2,214
−Removed: Collectively Evaluated for Impairment
−Removed: $ 14,643 $ 5,747 $ 5,255 $ 9,701 $ 618 $ 35,964
−Removed: Purchased Credit Impaired
−Removed: $ - $ - $ - $ - $ - $ -
−Removed: Loans Receivable:
−Removed: Ending Balance
−Removed: $ 2,020,406 $ 722,074 $ 656,378 $ 1,153,873 $ 53,445 $ 4,606,176
−Removed: Ending Balance:
−Removed: Individually Evaluated for Impairment
−Removed: $ 3,053 $ 992 $ 4,028 $ 6,442 $ 192 $ 14,707
−Removed: Collectively Evaluated for Impairment
−Removed: $ 1,989,831 $ 720,129 $ 637,195 $ 1,141,957 $ 52,570 $ 4,541,682
−Removed: Purchased Credit Impaired
−Removed: $ 27,522 $ 953 $ 15,155 $ 5,474 $ 683 $ 49,787
+Added: Real estate loans:
+Added: Commercial $ 42,407 $ 3,529 $ 883 $ -
+Added: Construction 11,777 975 2,334 513
+Added: Residential 11,012 519 1,533 -
+Added: Total real estate loans 65,196 5,023 4,750 513
+Added: Commercial 99,234 2,505 - -
+Added: Consumer and other - - - -
+Added: Total $ 164,430 $ 7,528 $ 4,750 $ 513
Credit Quality Indicators
8 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: The following table sets forth the credit quality indicators, disaggregated by loan segment, as of December 31, 2023:
+Added: The following tables set forth the credit quality indicators, disaggregated by loan segment, as of December 31, 2024 and 2023:
December 31, 2024
−Removed: (Risk Grade 10-45)
−Removed: Special Mention
−Removed: (Risk Grade 50)
−Removed: (Risk Grade 60)
−Removed: (Risk Grade 70)
−Removed: (Risk Grade 80)
−Removed: Current Period Charge- offs
+Added: (Risk Grade 10-45) Special Mention
+Added: (Risk Grade 50) Substandard
+Added: (Risk Grade 60) Doubtful
+Added: (Risk Grade 70) Loss
+Added: (Risk Grade 80) Total Current Period Charge- offs
(Dollars in thousands)
Originated in 2024 $ 300,564 $ - $ 15,271 $ - $ - $ 315,835 $ -
−Removed: $ 228,902 $ - $ 84 $ - $ - $ 228,986 $ -
Originated in 2023 223,301 22,051 135 - - 245,487 -
−Removed: 751,649 1,909 - - - 753,558 -
Originated in 2022 752,449 40,646 - - - 793,095 2
−Removed: 427,269 6,103 492 - - 433,864 357
Originated in 2021 400,133 5,861 470 - - 406,464 -
−Removed: 151,848 3,551 8 - - 155,407 -
Originated in 2020 147,800 1,853 635 - - 150,288 5
−Removed: 149,946 5,556 372 932 - 156,806 1,447
Originated Prior to 2020 508,370 4,779 6,557 851 - 520,557 ( 270 )
−Removed: 379,503 1,313 7,970 335 - 389,121 245
−Removed: 99,723 226 237 - - 100,186 -
+Added: Revolving 50,813 195 480 - - 51,488 -
Revolving Loans Converted to Term 9 - - - - 9 -
−Removed: - - - - - - -
Total Real Estate:
−Removed: $ 2,188,840 $ 18,658 $ 9,163 $ 1,267 $ - $ 2,217,928 $ 2,049
+Added: Commercial $ 2,383,439 $ 75,385 $ 23,548 $ 851 $ - $ 2,483,223 $ ( 263 )
Originated in 2024 $ 203,537 $ - $ 402 $ - $ - $ 203,939 $ -
−Removed: $ 131,617 $ - $ - $ - $ - $ 131,617 $ -
Originated in 2023 86,505 - 586 - - 87,091 46
−Removed: 322,032 647 62 - - 322,741 -
Originated in 2022 176,301 2,886 2,188 - - 181,375 278
−Removed: 85,438 2,601 1,229 - - 89,268 -
Originated in 2021 86,514 - 3,522 - - 90,036 1,937
−Removed: 22,515 31 16 - - 22,562 -
Originated in 2020 26,646 - 14 - - 26,660 -
−Removed: 19,402 - 1,675 - - 21,077 1
Originated Prior to 2020 23,696 154 1,990 - - 25,840 -
−Removed: 20,180 413 588 345 - 21,526 35
−Removed: 60,612 395 - - - 61,007 -
+Added: Revolving 54,990 396 - - - 55,386 -
Revolving Loans Converted to Term 175 - - - - 175 -
−Removed: - - - - - - -
Total Real Estate:
−Removed: $ 661,796 $ 4,087 $ 3,570 $ 345 $ - $ 669,798 $ 36
+Added: Construction $ 658,364 $ 3,436 $ 8,702 $ - $ - $ 670,502 $ 2,261
Originated in 2024 $ 80,126 $ - $ 225 $ - $ - $ 80,351 $ 2
−Removed: $ 76,662 $ - $ - $ - $ - $ 76,662 $ -
Originated in 2023 102,618 175 244 - - 103,037 3
−Removed: 170,229 433 410 14 - 171,086 -
Originated in 2022 228,784 1,179 1,200 8 - 231,171 12
−Removed: 98,329 - 708 - - 99,037 11
Originated in 2021 145,072 205 - - - 145,277 1
−Removed: 68,281 386 520 57 - 69,244 1
Originated in 2020 69,222 315 555 9 - 70,101 2
−Removed: 54,902 1,112 1,061 119 - 57,194 22
Originated Prior to 2020 133,993 1,122 6,170 234 - 141,519 73
−Removed: 97,716 1,230 6,000 299 - 105,245 7
−Removed: 103,252 - 654 - - 103,906 1
+Added: Revolving 111,452 167 1,091 - - 112,710 204
Revolving Loans Converted to Term 367 - - - - 367 -
−Removed: 20 - - - - 20 -
Total Real Estate:
−Removed: $ 669,391 $ 3,161 $ 9,353 $ 489 $ - $ 682,394 $ 42
+Added: Residential $ 871,634 $ 3,163 $ 9,485 $ 251 $ - $ 884,533 $ 297
Originated in 2024 $ 399,093 $ 223 $ 4,308 $ - $ - $ 403,624 $ 1
−Removed: $ 303,160 $ 1,439 $ 709 $ - $ - $ 305,308 $ -
Originated in 2023 286,436 1,385 2,301 - - 290,122 76
−Removed: 267,678 698 1,196 - - 269,572 247
Originated in 2022 235,534 8,471 1,611 - - 245,616 459
−Removed: 136,291 5,483 928 16 - 142,718 25
Originated in 2021 178,248 2,562 1,684 - - 182,494 276
−Removed: 48,990 448 921 42 - 50,401 49
Originated in 2020 81,809 41 707 - - 82,557 97
−Removed: 21,137 584 640 231 - 22,592 1,632
Originated Prior to 2020 100,096 2,526 629 300 - 103,551 77
−Removed: 61,166 3,843 341 251 - 65,601 658
−Removed: 499,642 2,128 573 28 - 502,371 202
+Added: Revolving 546,947 10,771 2,671 - - 560,389 -
Revolving Loans Converted to Term 322 - - - - 322 -
−Removed: 275 - - - - 275 -
Total Commercial $ 1,828,485 $ 25,979 $ 13,911 $ 300 $ - $ 1,868,675 $ 986
−Removed: $ 1,338,339 $ 14,623 $ 5,308 $ 568 $ - $ 1,358,838 $ 2,813
Consumer and Other
Originated in 2024 $ 12,084 $ - $ 8 $ - $ - $ 12,092 $ 32
−Removed: $ 11,245 $ - $ - $ - $ - $ 11,245 $ 8
Originated in 2023 7,118 - 33 - - 7,151 84
−Removed: 7,219 - 27 - - 7,246 78
Originated in 2022 4,646 - 18 - - 4,664 427
−Removed: 3,372 - 55 - - 3,427 29
Originated in 2021 2,195 - 49 - - 2,244 4
−Removed: 1,850 - 88 - - 1,938 11
Originated in 2020 1,183 - 60 - - 1,243 31
−Removed: 2,359 - 40 - - 2,399 18
Originated Prior to 2020 22,352 - 64 - - 22,416 40
−Removed: 18,280 - 92 - - 18,372 61
−Removed: 18,814 100 160 - - 19,074 1,284
+Added: Revolving 24,474 - 137 - - 24,611 1,774
Revolving Loans Converted to Term 45 - - - - 45 -
−Removed: 126 - - - - 126 -
Total Consumer and Other $ 74,097 $ - $ 369 $ - $ - $ 74,466 $ 2,392
−Removed: $ 63,265 $ 100 $ 462 $ - $ - $ 63,827 $ 1,489
−Removed: $ 4,921,631 $ 40,629 $ 27,856 $ 2,669 $ - $ 4,992,785 $ 6,429
+Added: Total Loans $ 5,816,019 $ 107,963 $ 56,015 $ 1,402 $ - $ 5,981,399 $ 5,673
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: The following table sets forth the credit quality indicators, disaggregated by loan segment, as of December 31, 2022 ( prior to the adoption of ASU 2016 - 13 ):
December 31, 2023
−Removed: (Risk Grade 10-45)
−Removed: Special Mention (Risk Grade 50)
−Removed: (Risk Grade 60)
−Removed: (Risk Grade 70)
+Added: (Risk Grade 10-45) Special Mention
+Added: (Risk Grade 50) Substandard
+Added: (Risk Grade 60) Doubtful
+Added: (Risk Grade 70) Loss
+Added: (Risk Grade 80) Total Current Period Charge- offs
(Dollars in thousands)
−Removed: Real Estate Loans:
−Removed: $ 1,972,611 $ 35,054 $ 10,478 $ 2,263 $ 2,020,406
−Removed: 716,071 3,496 2,157 350 722,074
−Removed: 643,763 3,780 7,925 910 656,378
−Removed: Total Real Estate Loans
−Removed: 3,332,445 42,330 20,560 3,523 3,398,858
−Removed: 1,137,555 6,646 6,960 2,712 1,153,873
+Added: Originated in 2023 $ 228,902 $ - $ 84 $ - $ - $ 228,986 $ -
+Added: Originated in 2022 751,649 1,909 - - - 753,558 -
+Added: Originated in 2021 427,269 6,103 492 - - 433,864 357
+Added: Originated in 2020 151,848 3,551 8 - - 155,407 -
+Added: Originated in 2019 149,946 5,556 372 932 - 156,806 1,447
+Added: Originated Prior to 2019 379,503 1,313 7,970 335 - 389,121 245
+Added: Revolving 99,723 226 237 - - 100,186 -
+Added: Revolving Loans Converted to Term - - - - - - -
+Added: Total Real Estate:
+Added: Commercial $ 2,188,840 $ 18,658 $ 9,163 $ 1,267 $ - $ 2,217,928 $ 2,049
+Added: Originated in 2023 $ 131,617 $ - $ - $ - $ - $ 131,617 $ -
+Added: Originated in 2022 322,032 647 62 - - 322,741 -
+Added: Originated in 2021 85,438 2,601 1,229 - - 89,268 -
+Added: Originated in 2020 22,515 31 16 - - 22,562 -
+Added: Originated in 2019 19,402 - 1,675 - - 21,077 1
+Added: Originated Prior to 2019 20,180 413 588 345 - 21,526 35
+Added: Revolving 60,612 395 - - - 61,007 -
+Added: Revolving Loans Converted to Term - - - - - - -
+Added: Total Real Estate:
+Added: Construction $ 661,796 $ 4,087 $ 3,570 $ 345 $ - $ 669,798 $ 36
+Added: Originated in 2023 $ 76,662 $ - $ - $ - $ - $ 76,662 $ -
+Added: Originated in 2022 170,229 433 410 14 - 171,086 -
+Added: Originated in 2021 98,329 - 708 - - 99,037 11
+Added: Originated in 2020 68,281 386 520 57 - 69,244 1
+Added: Originated in 2019 54,902 1,112 1,061 119 - 57,194 22
+Added: Originated Prior to 2019 97,716 1,230 6,000 299 - 105,245 7
+Added: Revolving 103,252 - 654 - - 103,906 1
+Added: Revolving Loans Converted to Term 20 - - - - 20 -
+Added: Total Real Estate:
+Added: Residential $ 669,391 $ 3,161 $ 9,353 $ 489 $ - $ 682,394 $ 42
+Added: Originated in 2023 $ 303,160 $ 1,439 $ 709 $ - $ - $ 305,308 $ -
+Added: Originated in 2022 267,678 698 1,196 - - 269,572 247
+Added: Originated in 2021 136,291 5,483 928 16 - 142,718 25
+Added: Originated in 2020 48,990 448 921 42 - 50,401 49
+Added: Originated in 2019 21,137 584 640 231 - 22,592 1,632
+Added: Originated Prior to 2019 61,166 3,843 341 251 - 65,601 658
+Added: Revolving 499,642 2,128 573 28 - 502,371 202
+Added: Revolving Loans Converted to Term 275 - - - - 275 -
+Added: Total Commercial $ 1,338,339 $ 14,623 $ 5,308 $ 568 $ - $ 1,358,838 $ 2,813
Consumer and Other
−Removed: 53,041 - 404 - 53,445
−Removed: $ 4,523,041 $ 48,976 $ 27,924 $ 6,235 $ 4,606,176
+Added: Originated in 2023 $ 11,245 $ - $ - $ - $ - $ 11,245 $ 8
+Added: Originated in 2022 7,219 - 27 - - 7,246 78
+Added: Originated in 2021 3,372 - 55 - - 3,427 29
+Added: Originated in 2020 1,850 - 88 - - 1,938 11
+Added: Originated in 2019 2,359 - 40 - - 2,399 18
+Added: Originated Prior to 2019 18,280 - 92 - - 18,372 61
+Added: Revolving 18,814 100 160 - - 19,074 1,284
+Added: Revolving Loans Converted to Term 126 - - - - 126 -
+Added: Total Consumer and Other $ 63,265 $ 100 $ 462 $ - $ - $ 63,827 $ 1,489
+Added: Total Loans $ 4,921,631 $ 40,629 $ 27,856 $ 2,669 $ - $ 4,992,785 $ 6,429
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The above classifications follow regulatory guidelines and can generally be described as follows:
8 unchanged sentences
The Bank considers all loans more than 90 days past due as nonperforming loans.
−Removed: The following tables provide an analysis of the aging of loans and leases as of December 31, 2023 and December 31, 2022.
−Removed: For the year ended December 31, 2022, past due and nonaccrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as prior to the adoption of CECL, the Company accreted interest income over the expected life of the loans.
−Removed: With the adoption of CECL and deconstruction of acquired impaired accounting, those amounts are no longer excluded for the period ended December 31, 2023.
+Added: The following tables provide an analysis of the aging of loans and leases as of December 31, 2024 and 2023.
All loans greater than 90 days past due are generally placed on nonaccrual status.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Aged Analysis of Past Due Loans Receivable
1 unchanged sentence
(Dollars in thousands)
−Removed: Total Loans Receivable
−Removed: Recorded Investment Over
+Added: Current Total Loans Receivable Recorded Investment Over
90 Days Past Due
1 unchanged sentence
Real Estate Loans:
−Removed: $ 240 $ 536 $ 2,954 $ 3,730 $ 2,214,198 $ 2,217,928 $ 44
−Removed: 279 1,320 3,198 4,797 665,001 669,798 -
−Removed: 1,792 1,207 4,058 7,057 675,337 682,394 20
+Added: Commercial $ 6,688 $ 303 $ 3,035 $ 10,026 $ 2,473,197 $ 2,483,223 $ -
+Added: Construction 1,700 594 4,600 6,894 663,608 670,502 -
+Added: Residential 2,631 786 5,174 8,591 875,942 884,533 482
Total Real Estate Loans 11,019 1,683 12,809 25,511 4,012,747 4,038,258 482
−Removed: 2,311 3,063 10,210 15,584 3,554,536 3,570,120 64
−Removed: 1,101 71 1,622 2,794 1,356,044 1,358,838 52
+Added: Commercial 8,741 1,075 7,674 17,490 1,851,185 1,868,675 240
Consumer and Other 177 48 262 487 73,979 74,466 138
−Removed: 280 252 188 720 63,107 63,827 11
−Removed: $ 3,692 $ 3,386 $ 12,020 $ 19,098 $ 4,973,687 $ 4,992,785 $ 127
+Added: Total $ 19,937 $ 2,806 $ 20,745 $ 43,488 $ 5,937,911 $ 5,981,399 $ 860
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
December 31, 2023
(Dollars in thousands)
−Removed: Total Loans Receivable Recorded Investment Over
+Added: Past Due 60-89 Days
+Added: Past Due Greater
+Added: Past Due Total
+Added: Past Due Current Total Loans Receivable Recorded Investment Over
90 Days Past Due and Still Accruing
Real Estate Loans:
−Removed: $ 1,491 $ 210 $ 1,681 $ 3,382 $ 2,017,024 $ 2,020,406 $ 98
−Removed: 320 41 638 999 721,075 722,074 -
−Removed: 1,590 423 1,781 3,794 652,584 656,378 -
+Added: Commercial $ 240 $ 536 $ 2,954 $ 3,730 $ 2,214,198 $ 2,217,928 $ 44
+Added: Construction 279 1,320 3,198 4,797 665,001 669,798 -
+Added: Residential 1,792 1,207 4,058 7,057 675,337 682,394 20
Total Real Estate Loans 2,311 3,063 10,210 15,584 3,554,536 3,570,120 64
−Removed: 3,401 674 4,100 8,175 3,390,683 3,398,858 98
−Removed: 1,183 1,934 2,186 5,303 1,148,570 1,153,873 222
+Added: Commercial 1,101 71 1,622 2,794 1,356,044 1,358,838 52
Consumer and Other 280 252 188 720 63,107 63,827 11
−Removed: 295 28 182 505 52,940 53,445 15
−Removed: $ 4,879 $ 2,636 $ 6,468 $ 13,983 $ 4,592,193 $ 4,606,176 $ 335
+Added: Total $ 3,692 $ 3,386 $ 12,020 $ 19,098 $ 4,973,687 $ 4,992,785 $ 127
The Bank seeks to assist customers that are experiencing financial difficulty by renegotiating loans within lending regulations and guidelines.
2 unchanged sentences
During the periods ended December 31, 2024 and 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 statements.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: Upon adoption of ASU 2016 - 13, the Company eliminated the pooling of purchased impaired credit loans.
−Removed: As a result, $ 7.0 million of purchased credit deterioration loans were recognized as non-accrual loans as of January 1, 2023.
−Removed: The following table presents non-accrual loans by segment as of December 31, 2023, January 1, 2023, and December 31, 2022, respectively.
+Added: The following table presents non-accrual loans by segment as of December 31, 2024 and 2023, respectively.
+Added: 2024 December 31,
(Dollars in thousands)
Real Estate Loans:
−Removed: $ 3,280 $ 5,847 $ 2,644
−Removed: 3,543 2,421 992
−Removed: 7,352 6,518 4,080
+Added: Commercial $ 3,621 $ 3,280
+Added: Construction 5,251 3,543
+Added: Residential 7,078 7,352
Total Real Estate Loans 15,950 14,175
−Removed: 14,175 14,786 7,716
−Removed: 2,395 3,045 3,150
+Added: Commercial 8,039 2,395
Consumer and Other 158 373
−Removed: $ 16,943 $ 18,088 $ 11,054
−Removed: Accrued interest receivable of $ 4.2 million and $ 5.4 million was outstanding as of December 31, 2023, and December 31, 2022, 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.
+Added: Total $ 24,147 $ 16,943
+Added: Accrued interest receivable of $ 3.4 million and $ 4.2 million was outstanding as of December 31, 2024 and 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.
These loans are no longer within their deferral periods.
The accrued interest on the loans is due at their maturity.
−Removed: At December 31, 2023 and December 31, 2022, accrued interest receivable on loans was $ 25.2 million and $ 21.2 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.
+Added: At December 31, 2024 and 2023, accrued interest receivable on loans was $ 30.9 million and $ 25.2 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 8 – Premises and Equipment –
1 unchanged sentence
(Dollars in thousands)
+Added: Land $ 7,619 $ 7,545
Buildings and Leasehold Improvements 65,388 56,513
5 unchanged sentences
The provision for depreciation and amortization attributable to bank premises and equipment charged to operating expenses was $ 5.3 million, $ 4.7 million and $ 4.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 9 - Goodwill and Other Intangible Assets –
1 unchanged sentence
The carrying amount of goodwill as of December 31, 2024 and 2023 was $ 121.6 million and $ 88.4 million, respectively.
+Added: In 2024, the increase of $ 33.2 million in goodwill was due to the acquisitions of Waterstone and Oakwood.
In 2023, goodwill was reduced by $ 153,000 due to the sale of the Leesville branch.
−Removed: In 2022, the increase of $ 28.6 million in goodwill was the result of the acquisition of TCBI.
The Company performed the required annual goodwill impairment test as of October 1, 2024.
6 unchanged sentences
Adjustment for Sale of Branch - ( 50 )
−Removed: Acquired in TCBI Acquisition
+Added: Acquired in Oakwood Acquisition 7,640 -
Accumulated Amortization ( 11,438 ) ( 9,155 )
Net Carrying Amount $ 17,252 $ 11,895
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Amortization expense on the core deposit and customer intangible assets totaled approximately $ 2.3 million, $ 2.1 million and $ 2.0 million during the years ended December 31, 2024, 2023 and 2022, respectively.
1 unchanged sentence
(Dollars in thousands)
+Added: Thereafter 5,145
Total Core Deposit and Customer Intangible $ 17,252
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 10 – Deposits –
13 unchanged sentences
At December 31, 2024 and 2023, total deposits for the top three customer relationships was approximately $ 211.3 million and $ 168.3 million, respectively, which represented 3.2 % and 3.2 % of total deposits, respectively.
−Removed: Brokered and reciprocal deposits were approximately $ 1.0 billion and $ 550.2 million at December 31, 2023 and 2022, respectively.
+Added: Brokered and reciprocal deposits were approximately $ 1.2 billion and $ 1.0 billion at December 31, 2024 and 2023, respectively.
Included in these brokered and reciprocal deposits are public fund deposits of approximately $ 155.0 million and $ 145.9 million at December 31, 2024 and 2023, respectively.
Other public fund deposits were approximately $ 603.2 million and $ 511.6 million at December 31, 2024 and 2023, respectively.
+Added: Note 11 – Borrowings –
+Added: The Bank had outstanding advances from the FHLB of $ 355.9 million and $ 211.2 million at December 31, 2024 and 2023, respectively, consisting of:
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: Note 11 – Borrowings –
−Removed: The Bank had outstanding advances from the FHLB of $ 211.2 million and $ 410.1 million at December 31, 2023 and 2022, respectively, consisting of:
One fixed rate loan with an original principal balance of $ 60.0 million.
1 unchanged sentence
Principal and interest payments are due monthly and the loan matures in November 2026.
−Removed: One fixed rate loan of $ 875,000 at both December 31, 2023, and December 31, 2022, that was acquired during the TCBI acquisition, with interest at 4.88 % paid monthly.
+Added: One fixed rate loan of $ 875,000 at both December 31, 2024 and 2023, that was acquired during the TCBI acquisition, with interest at 4.88 % paid monthly.
Principal is due at maturity in April 2025.
−Removed: One fixed rate loan of $ 25.0 million at December 31, 2023, with interest at 4.89 % paid monthly.
+Added: One fixed rate loan of $ 25.0 million at both December 31, 2024 and 2023, with interest at 4.89 % paid monthly.
Principal is due at maturity in July 2025.
−Removed: One fixed rate loan of $ 25.0 million at December 31, 2023, with interest at 4.65 % paid monthly.
+Added: One fixed rate loan of $ 25.0 million at both December 31, 2024 and 2023, with interest at 4.65 % paid monthly.
Principal is due at maturity in January 2026.
−Removed: One fixed rate loan of $ 25.0 million at December 31, 2023, with interest at 4.56 % paid monthly.
+Added: One fixed rate loan of $ 25.0 million at both December 31, 2024 and 2023, with interest at 4.56 % paid monthly.
Principal is due at maturity in July 2026.
−Removed: One fixed rate loan of $ 25.0 million at December 31, 2023, with interest at 4.13 % paid monthly.
+Added: One fixed rate loan of $ 25.0 million at both December 31, 2024 and 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.
−Removed: One fixed rate loan of $ 25.0 million at December 31, 2023, with interest at 3.92 % paid monthly.
+Added: One fixed rate loan of $ 25.0 million at both December 31, 2024 and 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.
−Removed: One fixed rate loan of $ 25.0 million at December 31, 2023, with interest at 3.72 % paid monthly.
+Added: One fixed rate loan of $ 25.0 million at both December 31, 2024 and 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.
−Removed: One fixed rate loan of $ 25.0 million at December 31, 2023, with interest at 3.57 % paid monthly.
+Added: One fixed rate loan of $ 25.0 million at both December 31, 2024 and 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.
+Added: One fixed rate loan with an original principal balance of $ 10.0 million.
+Added: The loan was made in 2020 and was acquired during the Oakwood acquisition.
+Added: The balance at December 31, 2024 was $ 1.7 million, with interest at 0.52 %.
+Added: Principal and interest payments are due monthly and the loan matures in October 2025.
One fixed rate loan of $ 25.0 million at December 31, 2024, with interest at 4.84 % paid monthly.
−Removed: Principal is due at maturity in October 2027.
−Removed: This advance had put options beginning in October 2023 and was paid off in October 2023.
−Removed: One short term, seven -day, fixed rate loan of $ 262.0 million at December 31, 2022, with interest at 4.55 %.
−Removed: Principal and interest was due, paid and renewed, at maturity in January 2023.
−Removed: This loan was rolled into the $ 230.0 million short term, overnight, fixed rate loan outstanding at March 31, 2023, which was paid off during the second quarter of 2023.
+Added: Principal is due at maturity in December 2026.
+Added: One fixed rate loan of $ 25.0 million at December 31, 2024, with interest at 4.78 % paid monthly.
+Added: Principal is due at maturity in September 2027.
+Added: One fixed rate loan of $ 25.0 million at December 31, 2024, with interest at 4.73 % paid monthly.
+Added: Principal is due at maturity in March 2028.
+Added: One fixed rate loan of $ 25.0 million at December 31, 2024, with interest at 4.69 % paid monthly.
+Added: Principal is due at maturity in September 2028.
+Added: One short term, fifteen-day , fixed rate loan of $ 55.0 million at December 31, 2024, with interest at 4.38 %.
+Added: Principal and interest was due, paid and rolled into a $ 30.0 million renewal, at maturity in January 2025.
These advances are collateralized by the Company’s investment in FHLB stock and a blanket lien on qualifying loans in the Bank’s loan portfolio.
3 unchanged sentences
Total available lines of credit as of December 31, 2024 and 2023 were $ 160.0 million and $ 145.0 million, respectively.
−Removed: The Company purchased $ 14.1 million on these lines at December 31, 2022 and was not in a purchased position on these lines at December 31, 2023.
−Removed: The Company had a line of credit with First National Banker’s Bank (“FNBB”) and was allowed to borrow on a revolving basis up to $ 5.0 million.
−Removed: This line of credit, established on November 3, 2021, was secured by a pledge of and security interest in the common stock of the Bank and established for general corporate purposes.
−Removed: The Company drew down the full amount in 2022 and did not have a balance on the line of credit at December 31, 2021.
−Removed: The line of credit carried a variable interest rate equal to the Wall Street Journal Prime Rate with a minimum rate of 3.50 %, and matured in November 2022.
−Removed: This FNBB line was paid in full at maturity, and was not renewed, in November, 2022.
+Added: The Company was not in a purchased position on these lines at December 31, 2024 and 2023.
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: On March 12, 2023, the Federal Reserve launched the Bank Term Funding Program (“BTFP”), which offers loans to banks with a term of up to one year.
−Removed: The loans are secured by pledging the banks’ U.S.
+Added: On March 12, 2023, the Federal Reserve launched the Bank Term Funding Program (“BTFP”), which offered loans to banks with a term of up to one year .
+Added: The loans were secured by pledging the banks’ U.S.
treasuries, agency securities, agency mortgage-backed securities, and any other qualifying assets.
−Removed: These pledged securities will be valued at par for collateral purposes.
+Added: These pledged securities were valued at par for collateral purposes.
The Bank participated in the BTFP and had outstanding debt of $ 300.0 million at December 31, 2023.
−Removed: These loans bear a fixed interest rate of 4.38 % and mature on March 22, 2024.
+Added: These loans bore a fixed interest rate of 4.38 % and matured on March 22, 2024, at which time the Bank repaid them in full.
In December 2018, the Company issued subordinated notes in the amount of $ 25.0 million.
1 unchanged sentence
The balance outstanding at both December 31, 2024 and 2023 was $ 25.0 million.
−Removed: The subordinated notes were issued for the purpose of paying off the long term advance and line of credit with FNBB, for general corporate purposes and to provide Tier 2 capital.
+Added: The subordinated notes were issued for the purpose of paying off a long term advance and line of credit with First National Bankers Bank, for general corporate purposes and to provide Tier 2 capital.
The subordinated notes are redeemable by the Company at its option beginning in 2028.
10 unchanged sentences
The subordinated notes are redeemable by the Company at its option beginning in 2026.
−Removed: On April 1, 2021, the Company, through b1BANK, consummated the acquisition of SSW as discussed in Note 3.
+Added: On April 1, 2021, the Company, through b1BANK, consummated the acquisition of SSW.
Under the terms of the acquisition, the Company issued $ 3.9 million in subordinated debt to the former owners of SSW.
7 unchanged sentences
The Company recognized a $ 1.5 million gain on the extinguishment of this debt during 2023.
−Removed: These notes carried an aggregate $ 1.1 million and $ 2.9 million fair value adjustment, respectively, as of December 31, 2023 and 2022.
−Removed: Note 12 – Securities Sold Under Agreements to Repurchase –
−Removed: At December 31, 2023 and 2022, the Bank had sold various investment securities with an agreement to repurchase these securities at various times within one year.
+Added: These notes carried an aggregate $ 833,000 and $ 1.1 million fair value adjustment, respectively, as of December 31, 2024 and 2023.
+Added: Note 12 – Securities Purchased and Sold Under Agreements to Resell and Repurchase –
+Added: During the year ended December 31, 2024, the Bank entered into an agreement to purchase investment securities with the intention to resell those securities at various times throughout the year.
+Added: At December 31, 2024, the Bank purchased $ 50.8 million at a rate of 5.1 % and maturing in 2025.
+Added: At December 31, 2024 and 2023, the Bank had also sold various investment securities with an agreement to repurchase these securities at various times within one year.
These securities generally remain under the Bank’s control and are included in securities available for sale.
−Removed: These pledged securities have coupon rates ranging from 0.9 % to 8.0 % and maturity dates ranging from 2025 to 2041.
−Removed: The related liability to repurchase these securities was $ 18.9 million and $ 20.2 million at December 31, 2023 and 2022, respectively.
+Added: These pledged securities
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: have coupon rates ranging from 0.9 % to 8.0 % and maturity dates ranging from 2025 to 2041.
+Added: The related liability to repurchase these securities was $ 22.6 million and $ 18.9 million at December 31, 2024 and 2023, respectively.
Note 13 – Income Taxes –
The consolidated provision (credit) for income taxes consists of the following at December 31, 2024, 2023 and 2022:
+Added: 2024 2023 2022
(Dollars in thousands)
3 unchanged sentences
The provision (credit) for federal income taxes differs from the amount computed by applying federal statutory rates to income from operations as indicated in the following analysis at December 31, 2024, 2023 and 2022:
+Added: 2024 2023 2022
(Dollars in thousands)
3 unchanged sentences
Goodwill Write-off for Branch Sale - 32 -
+Added: State Taxes 928 695 226
+Added: Other - Net 97 ( 216 ) 381
Total Provision for Income Taxes $ 17,944 $ 19,543 $ 14,337
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The components of the deferred tax assets and liabilities are as follows:
(Dollars in thousands)
+Added: State NOL $ 2,634 $ 2,885
State NOL Valuation Allowance ( 2,634 ) ( 2,885 )
5 unchanged sentences
Deferred Compensation 3,227 2,231
+Added: Stock Awards 1,012 1,277
+Added: Reserve for Unfunded Commitments 779 702
+Added: Credit Card Rewards 509 93
+Added: Other 1,146 361
Deferred Tax Assets 46,517 38,689
1 unchanged sentence
Core Deposit Intangible 3,645 2,513
+Added: Depreciation 3,727 2,409
Acquired Securities Difference in Basis 868 1,209
+Added: Other 710 833
Deferred Tax Liabilities 16,926 11,366
Net Deferred Tax Asset $ 29,591 $ 27,323
−Removed: The Company acquired certain deferred tax attributes and liabilities as a result of a merger during 2015, including a net operating loss (“NOL”) carryforward of $ 287,000 and alternative minimum tax (“AMT”) credit carryforwards of $ 984,000 .
−Removed: The Company is limited in the amount it may deduct against current taxable income each year.
−Removed: As of December 31, 2023 the NOL carryforward was $ 28,737 and expires in 2033.
−Removed: The AMT credit carryforward was exhausted in 2019.
−Removed: Additionally, the Company acquired certain deferred tax attributes and liabilities as a result of the 2022 TCBI acquisition, including a federal NOL carryforward of $ 8.8 million and a federal charitable contribution carryforward of $ 229,000 .
+Added: The Company acquired certain deferred tax attributes and liabilities as a result of the TCBI acquisition in 2022 and Oakwood acquisition in 2024, including a federal net operating loss (“NOL”) carryforward of $ 8.8 million and $ 4.2 million , respectively, and a federal charitable contribution carryforward of $ 229,000 and $ 99,000 .
The amount of the NOL carryforward the Company is allowed to deduct against current taxable income each year is limited, and the Company may not offset more than 80% of taxable income in any year.
8 unchanged sentences
Balance at Beginning of Year $ ( 66,585 ) $ ( 74,204 )
−Removed: Other Comprehensive Income (Loss) on AFS Investment Securities
−Removed: Before Reclassifications - Net of Tax
+Added: Other Comprehensive Income on AFS Investment Securities Before Reclassifications - Net of Tax 3,570 10,258
Other Comprehensive Income (Loss) on Equity Method Investments - Net of Tax 11 ( 616 )
−Removed: Reclassification Adjustment for Gains (Losses) on Sale of AFS Investment Securities
−Removed: Realized - Net of Tax
−Removed: Other Comprehensive Income (Loss)
+Added: Reclassification Adjustment for Gains (Losses) on Sale of AFS Investment Securities Realized - Net of Tax 6 ( 2,023 )
+Added: Other Comprehensive Income 3,587 7,619
Balance at End of Year $ ( 62,998 ) $ ( 66,585 )
5 unchanged sentences
The Company paid quarterly common stock dividends totaling $ 0.56 per share and $ 0.50 per share for the years ended December 31, 2024 and 2023, respectively, based upon quarterly financial performance.
−Removed: The Company paid full quarterly preferred stock dividends totaling $ 75.00 per share for the year ended December 31, 2023 and, $ 18.75 per share for the year ended December 31, 2022, following issuance of the preferred stock on September 1, 2022.
+Added: The Company paid full quarterly preferred stock dividends totaling $ 75.00 per share for both years ended December 31, 2024 and 2023.
Common Stock Repurchase Plan
−Removed: On October 22, 2020, the Company’s board of directors approved a resolution authorizing management to repurchase shares of its common stock with an aggregate purchase price of up to $ 30.0 million from time to time, subject to certain limitations and conditions.
−Removed: The stock repurchase program expired on December 31, 2021.
−Removed: The stock repurchase program did not obligate the Company to repurchase any shares of its common stock.
−Removed: The Company repurchased $ 10.9 million and $ 798,000 of shares for the years ended December 31, 2021 and 2020, respectively.
On May 23, 2023, the Company’s board of directors approved a resolution authorizing management to repurchase shares of its common stock with an aggregate purchase price of up to $ 30.0 million from time to time, subject to certain limitations and conditions.
6 unchanged sentences
The preferred stock has a perpetual term and may not be redeemed, except under certain circumstances, under the first five years of issuance.
−Removed: The preferred stock is non-convertible and dividends equivalent to $ 75.00 per share and $ 18.75 per share were paid during the years ended December 31, 2023 and 2022, respectively.
+Added: The preferred stock is non-convertible and dividends equivalent to $ 75.00 per share were paid during both years ended December 31, 2024 and 2023.
BUSINESS FIRST BANCSHARES, INC.
14 unchanged sentences
Business First Bancshares, Inc.
−Removed: (Consolidated)
−Removed: Adequacy Purposes
+Added: (Consolidated) Actual For Capital
+Added: Adequacy Purposes To Be Well
Capitalized Under
1 unchanged sentence
Action Provisions
+Added: Amount Ratio Amount Ratio Amount Ratio
(Dollars in thousands)
12 unchanged sentences
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: b1BANK Actual For Capital
+Added: Adequacy Purposes To Be Well
Capitalized Under
Prompt Corrective
−Removed: Adequacy Purposes
Action Provisions
+Added: Amount Ratio Amount Ratio Amount Ratio
(Dollars in thousands)
11 unchanged sentences
Equity Incentive Plan
−Removed: The Company previously granted options to its employees under its 2006 Stock Option Plan which expired on December 22, 2016.
+Added: In 2006, the Company’s board of directors adopted the 2006 Stock Option Plan, pursuant to which the Company was permitted to issue stock options to purchase up to 450,000 shares of the Company’s common stock, all of which could be issued as either incentive stock options under Section 422A of the Internal Revenue Code of 1986, as amended, or non-qualified stock options.
+Added: In January 2007, the Company’s board of directors adopted an amendment to the 2006 Stock Option Plan, which increased the number of available shares under the plan from 450,000 to 1,500,000 .
+Added: The 2006 Stock Option Plan expired on December 22, 2016, however, there are still 12,400 fully vested and outstanding options that remain unexercised as of December 31, 2024.
On June 29, 2017, the Company’s shareholders approved its 2017 Equity Incentive Plan (the “2017 Plan”).
−Removed: The Plan provides for the grant of various types of equity grants and awards, including incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares and other stock-based awards to eligible participants, which includes the Company’s employees, directors and consultants.
−Removed: During the year ended December 31, 2022, Company shareholders approved an additional 400,000 shares to be reserved for future awards under the Plan.
−Removed: In addition, the number of shares issuable under the Plan were increased by 143,908 shares as a result of the assumption of options to purchase shares of TCBI common stock that were converted into options to purchase shares of Company common stock upon the TCBI acquisition on March 1, 2022.
+Added: The 2017 Plan provided for the grant of various types of equity grants and awards, including incentive stock options, nonstatutory stock options, stock appreciation rights, restricted stock, restricted stock units, performance units, performance shares and other stock-based awards to eligible participants, which includes the Company’s employees, directors and consultants.
+Added: On June 23, 2022, the Company's shareholders approved an additional 400,000 shares to be reserved for future awards under the 2017 Plan.
+Added: In addition, the number of shares issuable under the 2017 Plan was increased by 143,908 shares as a result of the assumption of options to purchase shares of TCBI common stock that were converted into options to purchase shares of Company common stock upon the TCBI acquisition on March 1, 2022.
+Added: As of May 23, 2024, there will be no future awards made under the 2017 Plan.
+Added: On May 22, 2024, the Company’s shareholders approved the Business First Bancshares, Inc.
+Added: 2024 Equity Incentive Plan (the “2024 Plan”).
+Added: The authorized share pool under the 2024 Plan is comprised of 645,000 shares, plus any shares that were available for issuance under the 2017 Plan and any underlying awards outstanding under the 2017 Plan as of the effective date of the 2024 Plan that were terminated or cancelled without having been unexercised or forfeited, cancelled, or repurchased by the Company.
+Added: In addition, the number of shares issuable under the 2024 Plan was increased by 207,293 shares as a result of the conversion of Oakwood stock options to Company stock options due to
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: the Oakwood acquisition on October 1, 2024.
In total, the 2024 Plan has reserved 852,293 shares of common stock for grant, award or issuance to eligible participants, all of which may be subject to incentive stock option treatment.
The Plan is administered by the Compensation Committee of the Company’s board of directors, which determines, within the provisions of the 2024 Plan, those eligible participants to whom, and the times at which, grants and awards will be made.
−Removed: As of December 31, 2023, 745,620 awards have been granted under the Plan and 298,288 shares of common stock remain available for grant.
+Added: As of December 31, 2024, there were 160,336 shares of common stock issued pursuant to awards and grants under the 2024 Plan to the Company’s employees, directors or consultants, of which 152,084 shares are subject to outstanding and unexercised awards and grants, and 484,664 shares of common stock remain available for grant.
Restricted Stock Awards
7 unchanged sentences
The $ 1.1 million of unrecognized share-based compensation at December 31, 2024 is expected to be recognized over a weighted average period of 0.6 years.
+Added: The table below summarizes the restricted stock award activity for the period presented.
+Added: Year Ended December 31, 2024 Year Ended December 31, 2023 Year Ended December 31, 2022
+Added: Shares Weighted Average
+Added: Grant Date Fair Value Shares Weighted Average
+Added: Grant Date Fair Value Shares Weighted Average
+Added: Grant Date Fair Value
+Added: Balance, at Beginning of Period 231,036 $ 21.43 131,624 $ 24.45 94,245 $ 21.60
+Added: Granted 207,501 22.43 280,101 20.29 141,646 26.34
+Added: Forfeited ( 6,903 ) 21.66 ( 2,738 ) 19.51 ( 6,709 ) 27.13
+Added: Earned and Issued ( 205,703 ) 21.99 ( 177,951 ) 16.97 ( 97,558 ) 24.20
+Added: Balance, at End of Period 225,931 $ 21.83 231,036 $ 21.43 131,624 $ 24.45
+Added: Restricted Stock Units
+Added: The Company issues restricted share units to certain key officers and executive officers.
+Added: The Company issues a.) restricted share units that vest after the end of a three-year performance period, based on satisfaction of performance conditions set for in the restricted share unit agreements, or b.) shares which vest ratably over a three-year service period.
+Added: Recipients do not possess voting or investment power over the common stock underlying such units until vesting.
+Added: The grant date fair value of these restricted share units is the same as the value of the corresponding number of shares of common stock.
+Added: For the year ended December 31, 2024, the Company recognized $ 115,000 in compensation costs related to restricted stock units.
+Added: At December 31, 2024, unrecognized share-based compensation associated with these units totaled $ 4.4 million.
+Added: The $ 4.4 million of unrecognized share-based compensation at December 31, 2024 is expected to be recognized over a weighted average period of 2.4 years.
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: The table below summarizes the restricted stock award activity for the period presented.
Year Ended December 31, 2024
−Removed: Year Ended December 31, 2022
+Added: (Dollars in thousands, except per share data)
+Added: Shares Weighted Average
+Added: Purchase Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Weighted Average Grant Date Fair Value
+Added: Balance, at Beginning of Period - $ - - $ - $ -
+Added: Granted 158,547 - 2.36 4,075 28.53
+Added: Forfeited - - - - -
+Added: Earned and Issued - - - - -
+Added: Balance, at End of Period 158,547 $ - 2.36 4,075 $ 28.53
+Added: End of Period Vested and Expected to Vest 158,547 $ - 2.36 $ 4,075 $ 28.53
+Added: Ending Exercisable - - - -
+Added: Phantom Stock
+Added: The Company issues phantom stock awards to certain key officers and employees.
+Added: The awards are subject to a vesting period of three years and are paid out in cash upon vesting.
+Added: The amount paid per vesting period is calculated as the number of vested “share equivalents” multiplied by the closing market price of a share of the Company’s common stock on the vesting date.
+Added: Share equivalents are calculated on the date of grant as the total award’s dollar value is divided by the closing market price of a share of the Company’s common stock on the grant date.
+Added: The liability for these awards is recorded within other liabilities.
+Added: During the year ended December 31, 2024, the Company issued share equivalents of phantom stock which vest in three equal installments over the requisite service period.
+Added: For the year ended December 31, 2024, the Company recognized $ 9,000 in compensation costs related to phantom stock.
+Added: At December 31, 2024, unrecognized share-based compensation associated with these units totaled $ 275,000 .
+Added: The $ 275,000 of unrecognized share-based compensation at December 31, 2024 is expected to be recognized over a weighted average period of 2.4 years.
Year Ended December 31, 2024
−Removed: Weighted Average
−Removed: Weighted Average
−Removed: Weighted Average
−Removed: Grant Date Fair Value
−Removed: Grant Date Fair Value
−Removed: Grant Date Fair Value
+Added: (Dollars in thousands, except per share data)
+Added: Shares Weighted Average
+Added: Purchase Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value Weighted Average Grant Date Fair Value
Balance, at Beginning of Period - $ - - $ - $ -
−Removed: 131,624 $ 24.45 94,245 $ 21.60 53,756 $ 24.49
−Removed: 280,101 20.29 141,646 26.34 111,687 20.73
−Removed: ( 2,738 ) 19.51 ( 6,709 ) 27.13 ( 989 ) 24.11
+Added: Granted 11,030 - 2.36 283 28.60
+Added: Forfeited - - - - -
Earned and Issued - - - - -
−Removed: ( 177,951 ) 16.97 ( 97,558 ) 24.20 ( 70,209 ) 22.43
Balance, at End of Period 11,030 $ - 2.36 283 $ 28.60
−Removed: 231,036 $ 21.43 131,624 $ 24.45 94,245 $ 21.60
−Removed: During the years ended December 31, 2022 and 2021, the Company issued a total of 11,700 and 7,301 shares of common stock, respectively, to non-employee directors as compensation for their board service.
−Removed: There were 2,442 shares issued during the year ended December 31, 2023 to employees.
−Removed: The shares were issued with weighted average grant date fair values of $ 20.48 per shares for the year ended December 31, 2023, $ 23.08 per share for the year ended December 31, 2022, and $ 23.35 per share for the year ended December 31, 2021.
−Removed: The total stock-based compensation expense was determined based upon the market value of the Company’s common stock at the grant date applied to the total number of shares granted.
−Removed: These grants resulted in an expense of $ 50,000 for the year ended December 31, 2023 and director fees expense of $ 120,000 and $ 276,000 for the years ended December 31, 2022 and 2021, respectively.
+Added: End of Period Vested and Expected to Vest 11,030 $ - 2.36 $ 283 $ 28.60
+Added: Ending Exercisable - - - -
Stock Options
−Removed: In 2006, the Company established a stock option plan with 1,500,000 shares available to be granted as options under the plan.
−Removed: Under the provisions of the plan, the option price cannot be less than the fair value of the underlying common stock as of the option grant date, and the maximum option term cannot exceed ten years.
−Removed: The 2006 Stock Option Plan expired on December 22, 2016 and the Company is no longer permitted to issue additional stock options under this plan.
−Removed: However, the Company did grant 143,908 stock option awards under the 2017 Equity Incentive Plan to former TCBI employees in conjunction with the acquisition during the year ended December 31, 2022.
−Removed: The Company used the Black-Scholes option pricing model to estimate the calculated value of the various share-based awards for the year ended December 31, 2023.
+Added: As of December 31, 2024, the Company had 179,969 outstanding and 174,055 vested and exercisable stock options, all of which have been issued to our executive officers and key personnel and remain subject to the terms and conditions of the 2006 Stock Option Plan, 2017 Plan and 2024 Plan until they are exercised or forfeited.
+Added: As of December 31, 2024, the weighted average exercise price of the stock options was $ 21.74 .
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following is an analysis of the activity related to the stock options:
Years Ended December 31,
−Removed: Weighted Average
−Removed: Weighted Average
−Removed: Weighted Average
−Removed: Exercise Price
−Removed: Exercise Price
+Added: 2024 2023 2022
+Added: Options Weighted Average
+Added: Exercise Price Number of
+Added: Options Weighted Average
+Added: Exercise Price Number of
+Added: Options Weighted Average
Exercise Price
Outstanding Options, at Beginning of Period 120,608 $ 18.59 130,924 $ 18.59 113,547 $ 17.06
−Removed: 130,924 $ 18.59 113,547 $ 17.06 385,300 $ 14.67
−Removed: - - 143,908 22.01 - -
−Removed: ( 7,500 ) 17.11 ( 67,060 ) 19.93 ( 261,753 ) 13.62
+Added: Granted 207,293 22.91 0 - 143,908 22
+Added: Exercised ( 137,375 ) 19.25 ( 7,500 ) 17.11 ( 67,060 ) 19.93
Forfeited or Expired ( 10,557 ) 22.02 ( 2,816 ) 22.38 ( 59,471 ) 22.45
−Removed: ( 2,816 ) 22.38 ( 59,471 ) 22.45 ( 10,000 ) 15.00
Outstanding Options, at End of Period 179,969 $ 21.77 120,608 $ 18.59 130,924 $ 18.59
−Removed: 120,608 $ 18.59 130,924 $ 18.59 113,547 $ 17.06
Exercisable, at End of Period 174,055 $ 21.74 111,032 $ 18.24 118,958 $ 18.18
−Removed: 111,032 $ 18.24 118,958 $ 18.18 113,547 $ 17.06
−Removed: At December 31, 2023, options for 111,032 shares at a weighted average exercise price of $ 18.24 were vested and exercisable.
−Removed: The aggregate intrinsic value of both exercisable and outstanding awards at December 31, 2023 and 2022 is $ 731,000 and $ 472,000 with a weighted average remaining contractual life of 1.9 years and 2.9 years, respectively.
−Removed: BUSINESS FIRST BANCSHARES, INC.
−Removed: AND SUBSIDIARIES
−Removed: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: The aggregate intrinsic value of outstanding awards at December 31, 2024 and 2023 is $ 707,000 and $ 731,000 with a weighted average remaining contractual life of 3.7 years and 1.9 years, respectively.
Note 17 – Employee Benefit Plans –
7 unchanged sentences
The expense related to the deferred compensation agreements was $ 766,000 , $ 586,000 and $ 507,000 for the years ended December 31, 2024, 2023 and 2022, respectively.
+Added: BUSINESS FIRST BANCSHARES, INC.
+Added: AND SUBSIDIARIES
+Added: NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 18 – Other Income and Expenses –
−Removed: An analysis of Other Income is as follows for the years ended December 31, 2023, 2022 and 2021:
+Added: An analysis of Other Income for the Company's single reportable operating segment is as follows for the years ended December 31, 2024, 2023 and 2022:
+Added: 2024 2023 2022
(Dollars in thousands)
6 unchanged sentences
Swap Fee Income 2,739 964 -
+Added: Other 8,311 6,134 3,863
Total Other Income $ 30,636 $ 27,531 $ 20,512
−Removed: An analysis of Other Expenses is as follows for the years ended December 31, 2023, 2022 and 2021:
+Added: An analysis of Other Expenses for the Company's single reportable operating segment is as follows for the years ended December 31, 2024, 2023 and 2022:
+Added: 2024 2023 2022
(Dollars in thousands)
4 unchanged sentences
Directors' Fees 1,085 1,079 972
+Added: Insurance 2,025 2,028 1,655
Legal and Professional Fees 3,756 3,173 2,359
3 unchanged sentences
Merger and Conversion Costs 1,236 236 4,808
+Added: Other 13,193 13,971 12,414
Total Other Expenses $ 49,746 $ 45,232 $ 44,820
3 unchanged sentences
These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet.
+Added: The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby and commercial letters of credit is represented by the contractual amount of those instruments.
+Added: The Bank’s policy for obtaining collateral, and the nature of such collateral, is essentially the same as that involved in making commitments to extend credit.
+Added: The Bank uses the same credit policies in making such
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby and commercial letters of credit is represented by the contractual amount of those instruments.
−Removed: The Bank’s policy for obtaining collateral, and the nature of such collateral, is essentially the same as that involved in making commitments to extend credit.
−Removed: 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.
+Added: 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 $ 1.4 billion and standby and commercial letters of credit of approximately $ 50.0 million at December 31, 2024.
−Removed: As discussed in Note 7, we have a reserve for unfunded loan commitments of $ 3.3 million and $ 605,000 at December 31, 2023 and 2022, respectively.
+Added: As discussed in Note 7, we had a reserve for unfunded loan commitments of $ 3.7 million and $ 3.3 million at December 31, 2024 and 2023, respectively.
Note 20 – Concentrations of Credit –
37 unchanged sentences
(“Bluehenge”), Bluehenge Capital Secured Debt SBIC II, L.P.
−Removed: (“Bluehenge II”), New Louisiana Angel Fund 2, LLC (“New Louisiana”) and Pharos Capital Partners IV-A, L.P.
+Added: (“Bluehenge II”), New Louisiana Angel Fund 2, LLC (“New Louisiana”), Pharos Capital Partners IV-A, L.P.
+Added: (“Pharos”) and Valesco Fund III, LP ("Valesco III").
As part of the TCBI acquisition, the Bank acquired investments in and committed to invest further in Bluehenge Capital Secured Debt SBIC, L.P.
−Removed: (included with prior Bluehenge investments), Valesco Fund II, LP (“Valesco II”), Valesco Fund III, LP (“Valesco III”), and GP Capital Partners, LP (“GP Capital”).
+Added: (included with prior Bluehenge investments), Valesco Fund II, LP (“Valesco II”) and GP Capital Partners, LP (“GP Capital”).
Details of these commitments at December 31, 2024 are below.
Total Capital
−Removed: Capital Called
−Removed: Remaining Unfunded Capital Commitment
+Added: Commitment Capital Called Remaining Unfunded Capital Commitment
+Added: McLarty $ 2,000 $ 1,802 $ 198
+Added: McLarty II 2,500 2,222 278
Firmament III 2,500 1,873 627
+Added: Firmament IV 2,500 891 1,609
+Added: Bluehenge 2,500 2,312 188
+Added: Bluehenge II 2,500 1,574 926
New Louisiana 50 50 -
+Added: Pharos 1,000 685 315
+Added: Valesco II 1,000 795 205
+Added: Valesco III 2,000 452 1,548
+Added: GP Capital 1,000 736 264
+Added: $ 19,550 $ 13,392 $ 6,158
Fintech Fund Commitment
The Company has agreed to invest in certain Fintech funds.
−Removed: As part of the TCBI acquisition, the Company acquired investments in and committed to invest further in any remaining unfunded capital commitments in Work America Capital Fund I, LP and SBRE I, LLC.
+Added: As part of the TCBI acquisition, the Company acquired an investment in Work America Capital Fund I, LP and SBRE I, LLC.
During the year ended December 31, 2023, SBRE I, LLC was fully redeemed.
1 unchanged sentence
Total Capital
−Removed: Capital Called
−Removed: Remaining Unfunded
+Added: Commitment Capital Called Remaining Unfunded
Capital Commitment
5 unchanged sentences
Work America Capital Fund I, LP 700 700 -
+Added: $ 7,200 $ 4,988 $ 2,212
BUSINESS FIRST BANCSHARES, INC.
4 unchanged sentences
The outstanding letters of credit as of December 31, 2024 are as follows:
−Removed: Twelve letters of credit totaling $ 93.2 million expire in January 2024.
−Removed: Four letters of credit totaling $ 162.7 million expire in February 2024.
−Removed: One letter of credit of $ 403,000 expires in March 2024.
−Removed: Eleven letters of credit totaling $ 28.9 million expire in April 2024.
−Removed: Nine letters of credit totaling $ 7.1 million expire in May 2024.
−Removed: Two letters of credit totaling $ 4.6 million expire in June 2024.
−Removed: Two letters of credit totaling $ 3.4 million expire in August 2024.
−Removed: One letter of credit of $ 251,000 expires in September 2024.
−Removed: Two letters of credit totaling $ 675,000 expire in November 2024.
+Added: Fifteen letters of credit totaling $ 119.9 million expire in January 2025.
+Added: Seven letters of credit totaling $ 175.8 million expire in February 2025.
+Added: Two letters of credit totaling $ 508,000 expire in March 2025.
+Added: One letter of credit of $ 216,000 expires in May 2025.
+Added: Three letters of credit totaling $ 26.3 million expire in August 2025.
+Added: Two letters of credit totaling $ 2.5 million expire in September 2025.
+Added: Two letters of credit totaling $ 464,000 expire in October 2025.
+Added: Three letters of credit totaling $ 1.2 million expire in November 2025.
One letter of credit of $ 329,000 expires in December 2025.
14 unchanged sentences
• Level 3 – Includes unobservable inputs and should be used only when observable inputs are unavailable.
+Added: Recurring Basis
+Added: Fair values of investment securities available for sale were primarily measured using information from a third-party pricing service.
+Added: This pricing service provides information by utilizing evaluated pricing models supported with market
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: Recurring Basis
−Removed: Fair values of investment securities available for sale were primarily measured using information from a third -party pricing service.
−Removed: This pricing service provides information by utilizing evaluated pricing models supported with market data information.
+Added: data information.
Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data from market research publications.
2 unchanged sentences
The Company did not record any liabilities at fair value for which measurement of the fair value was made on a recurring basis.
+Added: Fair Value Level 1 Level 2 Level 3
(Dollars in thousands)
2 unchanged sentences
Treasury Securities $ 16,675 $ - $ 16,675 $ -
−Removed: $ 16,239 $ - $ 16,239 $ -
Government Agency Securities 9,588 - 9,588 -
−Removed: 9,410 - 9,410 -
Corporate Securities 45,165 - 32,665 12,500
−Removed: 43,839 - 35,871 7,968
Mortgage-Backed Securities 537,738 - 537,738 -
−Removed: 506,310 - 506,310 -
Municipal Securities 284,383 - 259,666 24,717
−Removed: 303,773 - 282,926 20,847
Loans Held for Sale 717 - 717 -
−Removed: $ 880,406 $ - $ 851,591 $ 28,815
+Added: Total $ 894,266 $ - $ 857,049 $ 37,217
December 31, 2023
1 unchanged sentence
Treasury Securities $ 16,239 $ - $ 16,239 $ -
−Removed: $ 30,115 $ - $ 30,115 $ -
Government Agency Securities 9,410 - 9,410 -
−Removed: 47,372 - 47,372 -
Corporate Securities 43,839 - 35,871 7,968
−Removed: 46,004 - 27,004 19,000
Mortgage-Backed Securities 506,310 - 506,310 -
−Removed: 451,725 - 451,725 -
Municipal Securities 303,773 - 282,926 20,847
−Removed: 315,535 - 280,767 34,768
Loans Held for Sale 835 - 835 -
−Removed: $ 891,055 $ - $ 837,287 $ 53,768
+Added: Total $ 880,406 $ - $ 851,591 $ 28,815
+Added: The Company reviews fair value hierarchy classifications on a quarterly basis.
+Added: Changes in the Company’s ability to observe inputs to the valuation may cause reclassification of certain assets or liabilities within the fair value hierarchy.
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
−Removed: The Company reviews fair value hierarchy classifications on a quarterly basis.
−Removed: Changes in the Company’s ability to observe inputs to the valuation may cause reclassification of certain assets or liabilities within the fair value hierarchy.
−Removed: The tables below provide a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, for the year ended December 31, 2023.
+Added: The tables below provide a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, for the years ended December 31, 2024 and 2023.
+Added: Securities Corporate
(Dollars in thousands)
Balance at December 31, 2022 $ 34,768 $ 19,000
−Removed: $ 34,768 $ 19,000
Realized Gains (Losses) Included in Net Income - -
Unrealized Losses Included in Other Comprehensive Loss ( 2,228 ) ( 1,532 )
−Removed: ( 2,228 ) ( 1,532 )
+Added: Purchases - -
Maturities, Prepayments, and Calls ( 1,798 ) -
1 unchanged sentence
Transfers Out of Level 3 ( 9,895 ) ( 9,500 )
−Removed: ( 9,895 ) ( 9,500 )
Balance at December 31, 2023 $ 20,847 $ 7,968
−Removed: $ 20,847 $ 7,968
+Added: Realized Gains (Losses) Included in Net Income - -
+Added: Unrealized Gains (Losses) Included in Other Comprehensive Loss ( 2,339 ) 782
+Added: Purchases 9,938 5,000
+Added: Maturities, Prepayments, and Calls ( 3,729 ) ( 1,250 )
+Added: Transfers Into Level 3 - -
+Added: Transfers Out of Level 3 - -
+Added: Balance at December 31, 2024 $ 24,717 $ 12,500
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 December 31, 2024.
+Added: Fair Value Valuation
+Added: Technique Unobservable
+Added: Inputs Range of
(Dollars in thousands)
December 31, 2024
−Removed: Municipal Securities
−Removed: $ 20,847 Present Value of Expected Future Cash Flow Model
−Removed: Liquidity Premium
−Removed: Corporate Securities
−Removed: 7,968 Present Value of Expected Future Cash Flow Model
−Removed: Liquidity Premium
+Added: Municipal Securities $ 24,717 Present Value of Expected Future Cash Flow Model Liquidity Premium 1 %
+Added: Corporate Securities 12,500 Present Value of Expected Future Cash Flow Model Liquidity Premium 2 %
Nonrecurring Basis
3 unchanged sentences
Impaired loans are Level 3 assets measured using appraisals from external parties of the collateral less any prior liens and adjusted for estimated selling costs.
−Removed: Adjustments may be made by management based on a customized internally developed discounting matrix.
−Removed: Repossessed assets are initially recorded at fair value less estimated cost to sell, which is generally 10 %.
−Removed: The fair value of repossessed assets is based on property appraisals and an analysis of similar properties available.
−Removed: As such, the Bank records repossessed assets as Level 3.
+Added: Adjustments may be made by management based on a
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: customized internally developed discounting matrix.
+Added: Repossessed assets are initially recorded at fair value less estimated cost to sell, which is generally 10 %.
+Added: The fair value of repossessed assets is based on property appraisals and an analysis of similar properties available.
+Added: As such, the Bank records repossessed assets as Level 3.
+Added: Fair Value Level 1 Level 2 Level 3
(Dollars in thousands)
December 31, 2024
−Removed: Impaired/Individually Evaluated Loans
−Removed: $ 4,750 $ - $ - $ 4,750
+Added: Individually Evaluated Loans $ 62,138 $ - $ - $ 62,138
Other Nonperforming Assets 5,529 - - 5,529
−Removed: 1,685 - - 1,685
−Removed: $ 6,435 $ - $ - $ 6,435
+Added: Total $ 67,667 $ - $ - $ 67,667
December 31, 2023
−Removed: Impaired Loans
−Removed: $ 16,816 $ - $ - $ 16,816
+Added: Individually Evaluated Loans $ 4,750 $ - $ - $ 4,750
Other Nonperforming Assets 1,685 - - 1,685
−Removed: 1,434 - - 1,434
−Removed: $ 18,250 $ - $ - $ 18,250
+Added: Total $ 6,435 $ - $ - $ 6,435
Fair Value Financial Instruments
9 unchanged sentences
Cash and Short-Term Investments – For those short-term instruments, the carrying amount is a reasonable estimate of fair value.
+Added: Securities Purchased Under Agreements to Resell - The carrying amount approximates its fair value.
Securities – Fair value of securities is based on quoted market prices.
7 unchanged sentences
The fair value of fixed-maturity certificates of deposit is estimated using discounted cash flow analyses, with interest rates currently offered for deposits of similar remaining maturities.
−Removed: Borrowings – The fair value of FHLB advances and other long-term borrowings is estimated using the rates currently offered for advances of similar maturities.
−Removed: The carrying amount of short-term borrowings maturing within ninety days approximates the fair value.
−Removed: 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.
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: Borrowings – The fair value of FHLB advances and other long-term borrowings is estimated using the rates currently offered for advances of similar maturities.
+Added: The carrying amount of short-term borrowings maturing within ninety days approximates the fair value.
+Added: 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 December 31, 2024 and 2023 are as follows:
+Added: Fair Value Level 1 Level 2 Level 3
(Dollars in thousands)
2 unchanged sentences
Cash and Short-Term Investments $ 516,767 $ 516,767 $ 516,767 $ - $ -
−Removed: $ 377,244 $ 377,244 $ 377,244 $ - $ -
−Removed: 879,571 879,571 - 850,756 28,815
+Added: Securities Purchased Under Agreements to Resell 50,835 50,835 - 50,835 -
+Added: Securities 893,549 893,549 - 856,332 37,217
Loans Held for Sale 717 717 - 717 -
−Removed: 835 835 - 835 -
−Removed: 4,952,371 4,849,503 - - 4,849,503
+Added: Loans - Net 5,926,559 5,832,326 - - 5,832,326
Cash Value of BOLI 117,645 117,645 - 117,645 -
−Removed: 96,478 96,478 - 96,478 -
Other Equity Securities 41,100 41,100 - - 41,100
−Removed: 33,942 33,942 - - 33,942
−Removed: $ 6,340,441 $ 6,237,573 $ 377,244 $ 948,069 $ 4,912,260
+Added: Total $ 7,547,172 $ 7,452,939 $ 516,767 $ 1,025,529 $ 5,910,643
Financial Liabilities:
−Removed: $ 5,248,790 $ 5,243,326 $ - $ - $ 5,243,326
−Removed: 635,073 613,464 - 613,464 -
−Removed: $ 5,883,863 $ 5,856,790 $ - $ 613,464 $ 5,243,326
+Added: Deposits $ 6,511,331 $ 6,513,709 $ - $ - $ 6,513,709
+Added: Borrowings 483,256 465,834 - 465,834 -
+Added: Total $ 6,994,587 $ 6,979,543 $ - $ 465,834 $ 6,513,709
December 31, 2023
1 unchanged sentence
Cash and Short-Term Investments $ 377,244 $ 377,244 $ 377,244 $ - $ -
−Removed: $ 168,346 $ 168,346 $ 168,346 $ - $ -
−Removed: 890,751 890,751 - 836,983 53,768
+Added: Securities 879,571 879,571 - 850,756 28,815
Loans Held for Sale 835 835 - 835 -
−Removed: 304 304 - 304 -
−Removed: 4,567,998 4,443,577 - - 4,443,577
+Added: Loans - Net 4,952,371 4,849,503 - - 4,849,503
Cash Value of BOLI 96,478 96,478 - 96,478 -
−Removed: 91,958 91,958 - 91,958 -
Other Equity Securities 33,942 33,942 - - 33,942
−Removed: 37,467 37,467 - - 37,467
−Removed: $ 5,756,824 $ 5,632,403 $ 168,346 $ 929,245 $ 4,534,812
+Added: Total $ 6,340,441 $ 6,237,573 $ 377,244 $ 948,069 $ 4,912,260
Financial Liabilities:
−Removed: $ 4,820,345 $ 4,810,263 $ - $ - $ 4,810,263
−Removed: 560,114 544,564 - 544,564 -
−Removed: $ 5,380,459 $ 5,354,827 $ - $ 544,564 $ 4,810,263
−Removed: Note 25 – Litigation and Contingencies –
−Removed: In the normal course of business, the Bank is involved in various legal proceedings.
−Removed: In the opinion of management and counsel, the disposition or ultimate resolution of such proceedings would not have a material adverse effect on the Bank’s financial statements.
−Removed: Note 26 – Subsequent Events –
−Removed: The Company acquired Waterstone LSP, LLC ("Waterstone") on January 31, 2024.
−Removed: Waterstone works with community banks and small business owners to implement and manage the SBA's loan programs.
+Added: Deposits $ 5,248,790 $ 5,243,326 $ - $ - $ 5,243,326
+Added: Borrowings 635,073 613,464 - 613,464 -
+Added: Total $ 5,883,863 $ 5,856,790 $ - $ 613,464 $ 5,243,326
BUSINESS FIRST BANCSHARES, INC.
1 unchanged sentence
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
+Added: Note 25 – Litigation and Contingencies –
+Added: In the normal course of business, the Bank is involved in various legal proceedings.
+Added: In the opinion of management and counsel, the disposition or ultimate resolution of such proceedings would not have a material adverse effect on the Bank’s financial statements.
Note 26 – Financial Statements – Parent Company Only –
4 unchanged sentences
(Dollars in thousands)
−Removed: $ 12,382 $ 35,684
+Added: Cash $ 9,165 $ 12,382
Investment in Subsidiaries 870,003 714,971
−Removed: 714,971 641,491
Fintech Funds 4,850 3,924
+Added: Goodwill 5,603 5,704
Income Taxes Receivable 13,482 10,840
−Removed: $ 749,431 $ 696,492
−Removed: Accrued Interest Payable
+Added: Other Assets 1,313 1,610
+Added: Total Assets $ 904,416 $ 749,431
Subordinated Debt $ 99,760 $ 99,990
−Removed: 99,990 110,749
Subordinated Debt - Trust Preferred Securities 5,155 5,155
1 unchanged sentence
Total Liabilities 104,950 105,172
−Removed: 105,172 116,011
Shareholders' Equity:
Preferred Stock 71,930 71,930
−Removed: 71,930 71,930
−Removed: 25,352 25,110
+Added: Common Stock 29,552 25,352
Additional Paid-in Capital 500,024 397,447
−Removed: 397,447 393,690
Retained Earnings 260,958 216,115
−Removed: 216,115 163,955
−Removed: Accumulated Other Comprehensive Income (Loss)
−Removed: ( 66,585 ) ( 74,204 )
+Added: Accumulated Other Comprehensive Loss ( 62,998 ) ( 66,585 )
Total Shareholders' Equity 799,466 644,259
−Removed: 644,259 580,481
Total Liabilities and Shareholders' Equity $ 904,416 $ 749,431
−Removed: $ 749,431 $ 696,492
BUSINESS FIRST BANCSHARES, INC.
4 unchanged sentences
(Dollars in thousands)
+Added: 2024 2023 2022
Dividend Income From Subsidiaries $ 26,000 $ 13,000 $ 10,000
Interest Income 13 19 13
+Added: Other Income 448 1,147 43
Interest Expense 5,841 5,753 5,477
5 unchanged sentences
Equity in Undistributed Net Income of Subsidiaries 47,638 66,673 53,373
+Added: Net Income 65,107 71,043 54,255
Preferred Stock Dividends 5,401 5,401 1,350
3 unchanged sentences
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.