Business First Bancshares, Inc. has announced the acquisition of Waterstone LSP, LLC, a move that is set to expand its offerings and strengthen its position in the market. Business First Bancshares, Inc. (NASDAQ: BFST) serves as the holding company for B1Bank, and the acquisition is expected to enhance the bank's ability to provide Small Business Administration (SBA) loan programs to its clients.
Jude Melville, President and CEO of B1Bank, expressed enthusiasm about the acquisition, stating, "With the integration of Waterstone, we look forward to more seamlessly providing SBA-focused alternatives to our core bank clients while also equipping our community bank partners around the country to more comprehensively serve their clients."
Mark Danford, President and CEO of Waterstone, also commented on the merger, noting, "This merger will provide both teams with opportunities to expand into new markets and provide our clients with additional finance options."
Waterstone, headquartered in Katy, Texas, specializes in offering SBA lending services to community banks and small businesses, including planning, pre-qualification, packaging, closing and disbursements, servicing, and liquidations.
The acquisition is set to see Waterstone operate as a subsidiary of B1Bank, reporting through Chief Administrative Officer, Jerry Vascocu. Vascocu expressed excitement about the expansion of the line of products and services offered through the financial institutions group (FIG).
According to the press release, Alston & Bird, LLP acted as the legal advisor to B1Bank, while Brunini, Grantham, Grower & Hewes, PLLC advised Waterstone.
Business First Bancshares, Inc., through its banking subsidiary B1Bank, currently has $6.6 billion in assets, as of December 31, 2023, and operates banking centers and loan production offices in markets across Louisiana and the Dallas and Houston, Texas areas. It provides commercial and personal banking products and services, including commercial loans, letters of credit, working capital lines and equipment financing, and treasury management services.
The company's shares have moved 1.1% in response to the announcement and are now trading at a price of $22.8.
The company's full 8-K submission is available here.
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (k) | $76,195 | $103,467 | $149,755 | $170,438 | $236,114 | $333,167 |
| Revenue Growth | n/a | 35.79% | 44.74% | 13.81% | 38.53% | 41.1% |
| Interest Income (k) | $62,229 | $80,198 | $127,646 | $153,884 | $199,577 | $217,429 |
| Operating Margins | 23% | 28% | 25% | 38% | 28% | 28% |
| Net Margins | 18% | 23% | 20% | 31% | 23% | 22% |
| Net Income (k) | $14,091 | $23,772 | $30,000 | $52,100 | $54,300 | $73,231 |
| Depreciation & Amort. (k) | $1,172 | $1,588 | $3,164 | $4,163 | $4,818 | $4,722 |
| Earnings Per Share | $1.22 | $1.74 | $1.64 | $2.53 | $2.32 | $2.72 |
| EPS Growth | n/a | 42.62% | -5.75% | 54.27% | -8.3% | 17.24% |
| Diluted Shares (k) | 11,546 | 13,671 | 18,243 | 20,634 | 22,817 | 25,289 |
| Free Cash Flow (k) | $18,357 | $20,459 | $26,369 | $52,472 | $61,796 | $76,222 |
| Capital Expenditures | $919 | $3,959 | $2,970 | $3,971 | $7,781 | $6,306 |
Business First Bancshares has rapidly growing revenues and increasing reinvestment in the business and decent net margins with a stable trend. Additionally, the company's financial statements display a strong EPS growth trend and positive cash flows.
