The following is a summary of the Business First Bancshares, Inc. (BFST) Q2 2024 Earnings Call Transcript:
Financial Performance:
Reported Q2 GAAP net income and EPS available to common shareholders of $15.9 million and $0.62 respectively.
Adjusted non-GAAP net income and EPS were $16.3 million and $0.64, reflecting solid core operating results.
GAAP reported net interest margin was 3.45%, benefiting from $1.7 million in loan discount accretion. Core NIM, excluding accretion of 3.34%, also performed well.
Noted growth metrics, including a $1.9 million gain from a sale of a USDA guaranteed loan and loan discount accretion effects on earnings.
Business Progress:
Marked growth in core money market deposit accounts, which contributed to a strategic reduction in higher-cost brokered deposit balances.
Continuation of shift in loan composition, notably growth in C&I loans, balancing reductions in C&D and Investment CRE portfolios.
Forward steps towards pending Oakwood Bank acquisition with expected positive integration and sustained growth trajectories in core banking sectors.
Opportunities:
Strong pipeline for commercial lending, supported by strategic participation networks providing flexibility in banking operations and client service.
Continued diversification in banking products, including USDA loan sales and enhanced SBA loan functioning through the Waterstone acquisition.
Risks:
Potential pressures from economic and interest rate changes impacting loan repayment capabilities and deposit costs, along with the integration risks associated with the Oakwood acquisition.
More details: Business First Bancshares IR
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