Yahoo Finance Business First Bancshares Inc (BFST) Q1 2024 Earnings Call Transcript Highlights: Key Financial ...
Core ROAA: 0.77%
Core ROAE: 8.9%
Core EPS: $0.50
GAAP Net Income: $12.2 million
GAAP EPS: $0.48 per share
Non-GAAP Core Net Income: $12.8 million
Non-GAAP Core EPS: $0.50 per share
Core Net Interest Margin: 3.27%
Loan Growth: 8% annualized
Deposit Growth: 24% annualized
Non-Interest Income: $9.3 million (core)
Total Loans for Investment: Increased by $96.1 million (7.7% annualized)
Total Deposits: Increased by $324 million
Release Date: April 25, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q & A Highlights
Q: Can you provide details on the margin performance this quarter and its impact going forward? A: Gregory Robertson, CFO, explained that the core net interest margin was down due to strong deposit production and higher volume impacting the margin. He noted improvements in March, suggesting a stabilization that could be a good starting point for Q2. The company aims for a core NIM around 350 basis points in a higher rate environment.
Q: What are the expectations for liquidity and loan-to-deposit ratios moving forward? A: Gregory Robertson mentioned that Business First aims to maintain a loan-to-deposit ratio around 93% for the year, with continued high single-digit loan growth and more normalized deposit growth rates.
Q: How will the recent acquisition impact the expense base and future earnings? A: Gregory Robertson indicated that the core non-interest expense of $41.8 million in Q1 is a good baseline, expecting a modest sequential increase of 2-3% each quarter. The acquisition is seen as accretive to earnings, particularly from 2024 onwards.
Q: Can you discuss the customer base and cultural fit of the Oakwood Bank acquisition? A: Gregory Robertson and Jude Melville, CEO, highlighted the similarity in customer base and focus between Business First and Oakwood, noting minimal client overlap but similar client types. They emphasized cultural alignment and the strategic fit of the acquisition.
Q: What are the strategic goals for Business First Bancshares following the Oakwood acquisition? A: Jude Melville discussed reaching a size of approximately $7.5 billion in assets, enhancing geographic and credit risk diversification, and preparing for regulatory thresholds as the bank approaches $10 billion in assets. The acquisition aligns with these strategic goals by expanding the bank's presence and capabilities in Texas.
Q: How does Business First Bancshares plan to integrate and retain key personnel from Oakwood Bank post-acquisition? A: Jude Melville emphasized the importance of cultural fit and shared values in retaining top talent. He mentioned retention agreements and the bank's track record of successfully integrating teams from previous acquisitions, ensuring that new team members feel they can thrive within the expanded organization.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.
