Business First Bancshares, Inc., Announces Financial Results for Q3 2025
BATON ROUGE, La., Oct. 23, 2025 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended Sept. 30, 2025. Business First reported net income available to common shareholders of $21.5 million or $0.73 per diluted common share, increases of $0.8 million and $0.03, respectively, compared to the linked quarter ended June 30, 2025. On a non-GAAP basis, core net income for the quarter ended Sept. 30, 2025, which excludes certain income and expenses, was $21.2 million or $0.72 per diluted common share, increases of $1.7 million and $0.06 from the linked quarter.
"In the third quarter we delivered another quarter of consistent earnings growth for our shareholders leading to strong capital and tangible book value accretion," said Jude Melville, chairman, president, and CEO of Business First, "We also had the opportunity to again demonstrate solid operational execution with the successful conversion of former Oakwood Bank systems. We are focused on daily blocking and tackling, in particular that required to fulfill the promise of our current M&A projects, attainment of which will lead to continued improvement in financial performance over the coming quarters."
On Thursday, Oct. 23, 2025, Business First's board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the third quarter in the amount of $0.15 per share of common stock, a $0.01 increase from the linked quarter. The preferred and common dividends will be paid on Nov. 30, 2025, or as soon thereafter as practicable, to the shareholders of record as of Nov. 15, 2025.
Quarterly Highlights
Consistent Core Performance. Return to common shareholders on average assets, on an annualized basis, was 1.08% for the quarter ended Sept. 30, 2025, or 1.06% on a non-GAAP basis, compared to 1.07% or 1.01% on a non-GAAP basis for the linked quarter.
Continued Capital Growth. Common equity to total assets increased from 9.77% to 10.14%. Tangible common equity to tangible assets increased from 8.19% to 8.57%, 4.71% or 18.68% annualized, compared to the linked quarter. On a non-GAAP basis, tangible book value per common share increased to $22.63 as of Sept. 30, 2025, a $1.02 increase, 4.75% or 18.83% annualized, compared to the prior quarter. The increase was largely driven by earnings and accumulated other comprehensive income (AOCI) which accounted for $0.38 or 1.78% of the total 4.75% increase.
Stable Net Interest Margin (NIM). Net interest income totaled $69.3 million and net interest margin and net interest spread were 3.68% and 2.85%, respectively, compared to $67.0 million, 3.68% and 2.88% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.1 million) were 3.63% and 2.80% for the quarter ended Sept. 30, 2025, compared to 3.64% and 2.84% (excluding loan discount accretion of $0.8 million) for the linked quarter.
Corporate Actions. Business First's board of directors approved a $0.01 per common share increase to the quarterly dividend from $0.14 to $0.15 per common share beginning November 2025.
Oakwood Conversion. In September 2025, Business First successfully converted Oakwood Bank's core systems onto its platform, accomplishing its second system conversion over consecutive quarters.
Statement of Financial Condition
Loans
Loans held for investment decreased $26.6 million or 0.44%, 1.74% annualized. The commercial and commercial real estate portfolios decreased $40.2 million and $71.1 million, respectively, compared to the linked quarter. The construction and residential portfolios increased $38.6 million and $47.6 million compared to the linked quarter. Texas-based loans represented approximately 40% of the overall loan portfolio as of Sept. 30, 2025, based on unpaid principal balance.
Credit Quality
Credit quality metrics stabilized compared to the prior quarter. The ratio of loans past due 30 days or more, excluding nonaccrual, compared to total loans held for investment decreased from 0.89% to 0.27% at Sept. 30, 2025. The ratio of nonperforming loans compared to loans held for investment decreased 15 basis points (bps) to 0.82% at Sept. 30, 2025, while the ratio of nonperforming assets compared to total assets increased 7 bps to 0.83% compared to the linked quarter. The increase in the nonperforming assets ratio over the linked quarter was attributable to the transfer of some nonaccrual loans to other real estate owned. The commercial, residential real estate, commercial real estate and construction portfolios encompass approximately $21.9 million, $10.2 million, $9.0 million and $4.0 million respectively, of the $45.4 million nonaccrual balance at Sept. 30, 2025.
Securities
The securities portfolio increased $59.5 million, or 6.42%, from the linked quarter. This increase was impacted by $14.4 million in positive pre-tax fair value adjustments and the remainder attributed largely to purchases of mortgage-backed securities. The securities portfolio, based on estimated fair value, represented 12.40% of total assets as of Sept. 30, 2025. The newly purchased securities increased the book yield of the securities portfolio from 2.77% to 2.92% at Sept. 30, 2025.
Deposits
Deposits increased $87.2 million or 1.36%, 5.39% annualized, for the quarter ended Sept. 30, 2025, compared to the linked quarter. Average interest-bearing deposits increased $92.2 million, or 1.83%, and noninterest-bearing deposits increased $22.8 million or 1.76%, from the linked quarter.
Period-end interest bearing deposits increased $131.4 million or 2.62% and noninterest bearing deposits decreased $44.2 million or 3.13%. The increase in interest-bearing deposits was largely attributed to money market accounts, which experienced rate reductions of approximately 25 bps towards the end of the quarter.
Borrowings
Borrowings decreased $118.3 million or 19.29%, from the linked quarter due primarily to reductions in short-term Federal Home Loan Bank advances.
Shareholders' Equity
Shareholders' equity increased $30.0 million or 3.54% compared to the linked quarter. Accumulated other comprehensive income (AOCI) increased $11.3 million or 23.74%, during the quarter due to positive after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $27.23 at Sept. 30, 2025, compared to $26.23 at June 30, 2025, due to strong earnings and positive fair value adjustments in the securities portfolio. On a non-GAAP basis, tangible book value per common share increased from $21.61 at the linked quarter to $22.63 at Sept. 30, 2025, 4.75% or 18.83% annualized.
Results of Operations
Net Interest Income
For the quarter ended Sept. 30, 2025, net interest income totaled $69.3 million, compared to $67.0 million from the linked quarter. Loan yields increased 5 bps to 7.01% compared to 6.96% from the linked quarter, while the interest-bearing asset yield remained flat at 6.31%. Net interest margin and net interest spread were 3.68% and 2.85% compared to 3.68% and 2.88% for the linked quarter. The overall cost of funds, which included noninterest-bearing deposits, increased 3 bps from 2.78% to 2.81% for the quarter ended Sept. 30, 2025.
Non-GAAP net interest income (excluding loan discount accretion of $1.1 million) totaled $68.2 million for the quarter ended Sept. 30, 2025, compared to $66.3 million (excluding loan discount accretion of $0.8 million) for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.1 million) were 3.63% and 2.80%, respectively, for the quarter ended Sept. 30, 2025, compared to 3.64% and 2.84% (excluding loan discount accretion of $0.8 million) for the linked quarter.
Provision for Credit Losses
During the quarter ended Sept. 30, 2025, Business First recorded a provision for credit losses of $3.2 million, compared to $2.2 million from the linked quarter. The current quarter's reserve was largely impacted by an additional $1.5 million reserve on unfunded loan commitments and the remainder attributed to reserves on individually evaluated loans. At Sept. 30, 2025, the ratio of allowance for credit losses to loans held for investment ratio was 1.03%, compared to 1.02% for the linked quarter.
Other Income
For the quarter ended Sept. 30, 2025, other income decreased $2.7 million or 19.04%, compared to the linked quarter. The decrease was largely attributable to a $3.4 million gain on the Kaplan branch sale in the linked quarter, positively offset by a $414,000 increase related to other real estate owned and a $379,000 increase in equity investment income. Excluding the gain on the Kaplan branch sale and securities sale gains and losses, other income for Sept. 30, 2025, was $11.6 million compared to $11.1 million for the linked quarter, an increase of $492,000, or 4.43%.
Other Expenses
For the quarter ended Sept. 30, 2025, other expenses decreased $2.3 million or 4.54% compared to the linked quarter. The decrease was largely attributable to a $1.9 million tax credit the company recognized as an expense reduction within salaries and employee benefits. Excluding the tax credit recognized in the current quarter and merger-related and core conversion expenses recognized in both the current and linked quarters, other expenses were $49.3 million compared to $49.6 million for the linked quarter, a decrease of $345,000 or 0.70%.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.08% and 10.80% for the quarter ended Sept 30, 2025, compared to 1.07% and 10.87%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.06% and 10.65% for the quarter ended Sept. 30, 2025, compared to 1.01% and 10.23%, for the prior period quarter.
Conference Call and Webcast Executive management will host a conference call and webcast to discuss results on Thursday October 23, 2025, at 4:00 p.m. Central Time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 8427939, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/hvu86bo6. On the day of the presentation, the corresponding slide presentation will be available to view on the b1BANK website at https://www.b1bank.com/shareholder-info.
About Business First Bancshares, Inc. Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $8.0 billion in assets, $5.7 billion in assets under management through b1BANK's affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and Texas providing commercial and personal banking products and services. b1BANK is a 2024 Mastercard "Innovation Award" winner and multiyear winner of American Banker Magazine's "Best Banks to Work For." Visit b1BANK.com for more information.
Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures (e.g., referenced as "core" or "tangible") intended to supplement, not substitute for, comparable GAAP measures. "Core" measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management's opinion, can distort period-to-period comparisons of Business First's performance. Transactions that are typically excluded from non-GAAP "core" measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). "Tangible" measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Business First's core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.
Special Note Regarding Forward-Looking Statements Certain statements contained in this release may not be based on historical facts and are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as "anticipate," "believe," "estimate," "expect," "may," "might," "will," "would," "could," or "intend." We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.
Additional Information For additional information about Business First, you may obtain Business First's reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC's EDGAR service on the SEC's website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.
No Offer or Solicitation This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. Proxy statement/prospectus can also be obtained, when they become available, free of charge, by directing a request to Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, LA 70801, Attention: Corporate Secretary, Telephone: 225-248-7600.
Allowance for Credit Losses to Total Loans (HFI)/(1)
1.03
%
1.02
%
0.86
%
Net Charge-Offs (Recoveries) to Average Quarterly Total Loans
0.05
%
0.01
%
0.02
%
Remaining Loan Purchase Discount
$
8,943
$
10,099
$
9,003
Nonperforming Assets
Nonperforming
Nonaccrual Loans
$
45,362
$
56,377
$
25,874
Loans Past Due 90 Days or More
3,929
2,467
185
Total Nonperforming Loans
49,291
58,844
26,059
Other Nonperforming Assets:
Other Real Estate Owned
16,766
1,473
1,787
Other Nonperforming Assets
—
—
—
Total other Nonperforming Assets
16,766
1,473
1,787
Total Nonperforming Assets
$
66,057
$
60,317
$
27,846
Nonperforming Loans to Total Loans (HFI)
0.82
%
0.97
%
0.50
%
Nonperforming Assets to Total Assets
0.83
%
0.76
%
0.40
%
(1) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments.
Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
Three Months Ended
Nine Months Ended
(Dollars in thousands, except per share data)
September 30, 2025
June 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
Per Share Data
Basic Earnings per Common Share
$
0.73
$
0.70
$
0.65
$
2.09
$
1.77
Diluted Earnings per Common Share
0.73
0.70
0.65
2.08
1.75
Dividends per Common Share
0.14
0.14
0.14
0.42
0.42
Book Value per Common Share
27.23
26.23
24.59
27.23
24.59
Average Common Shares Outstanding
29,544,425
29,517,495
25,289,094
29,363,138
25,227,319
Average Diluted Common Shares Outstanding
29,656,639
29,586,975
25,440,247
29,495,049
25,421,746
End of Period Common Shares Outstanding
29,615,370
29,602,970
25,519,501
29,615,370
25,519,501
Annualized Performance Ratios
Return to Common Shareholders on Average Assets (1)
1.08
%
1.07
%
0.97
%
1.05
%
0.89
%
Return to Common Shareholders on Average Common Equity (1)
10.80
%
10.87
%
10.76
%
10.74
%
10.08
%
Net Interest Margin (1)
3.68
%
3.68
%
3.51
%
3.68
%
3.43
%
Net Interest Spread (1)
2.85
%
2.88
%
2.54
%
2.88
%
2.46
%
Efficiency Ratio (2)
60.45
%
62.83
%
63.45
%
62.37
%
66.02
%
Total Quarterly/Year-to-Date Average Assets
$
7,921,159
$
7,791,371
$
6,788,644
$
7,825,828
$
6,722,716
Total Quarterly/Year-to-Date Average Common Equity
790,148
765,884
610,018
764,959
590,354
Other Expenses
Salaries and Employee Benefits
$
27,613
$
28,317
$
24,877
$
85,427
$
75,816
Occupancy and Bank Premises
3,324
3,119
2,630
9,844
7,778
Depreciation and Amortization
2,036
2,076
1,844
6,264
5,262
Data Processing
3,972
5,321
2,881
12,529
8,101
FDIC Assessment Fees
988
861
887
3,033
2,589
Legal and Other Professional Fees
1,024
1,093
873
3,130
2,781
Advertising and Promotions
1,205
1,088
1,057
3,584
3,168
Utilities and Communications
767
743
716
2,243
2,108
Ad Valorem Shares Tax
1,125
1,125
900
3,375
2,700
Directors' Fees
261
193
245
733
795
Other Real Estate Owned Expenses and Write-Downs
355
27
11
405
119
Merger and Conversion-Related Expenses
477
210
319
937
1,068
Other
5,735
7,033
5,210
19,162
15,797
Total Other Expenses
$
48,882
$
51,206
$
42,450
$
150,666
$
128,082
Other Income
Service Charges on Deposit Accounts
$
2,565
$
2,633
$
2,723
$
8,058
$
7,699
Gain (Loss) on Sales of Securities
77
(47
)
(13
)
29
(14
)
Debit Card and ATM Fee Income
1,915
1,958
1,864
5,731
5,590
Bank-Owned Life Insurance Income
802
758
679
2,368
1,885
Gain on Sales of Loans
624
781
122
2,661
2,721
Mortgage Origination Income
122
55
98
287
202
Fees and Brokerage Commission
1,880
1,980
1,968
6,008
5,780
Gain (Loss) on Sales of Other Real Estate Owned
470
56
(16
)
258
49
Gain (Loss) on Disposal of Other Assets
—
—
—
155
(15
)
Gain on Extinguishment of Debt
—
—
—
630
—
Gain on Branch Sale
—
3,360
—
3,360
—
Swap Fee Income
1,065
808
937
2,612
1,451
Pass-Through Income (Loss) from Other Investments
133
(246
)
335
638
1,021
Other
2,018
2,319
2,077
6,517
5,966
Total Other Income
$
11,671
$
14,415
$
10,774
$
39,312
$
32,335
(1) Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an actual day count convention.
(2) Noninterest expense (excluding provision for loan losses) divided by noninterest income (excluding security sales gains/losses) plus net interest income less gain/loss on sales of securities.
Business First Bancshares, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)
September 30, 2025
June 30, 2025
September 30, 2024
Assets
Cash and Due From Banks
$
399,079
$
495,757
$
213,199
Federal Funds Sold
101,103
39,296
169,980
Securities Purchased under Agreements to Resell
25,518
25,433
25,879
Securities Available for Sale, at Fair Values
985,938
926,450
916,091
Mortgage Loans Held for Sale
433
677
—
Loans and Lease Receivable
6,021,055
6,047,650
5,220,118
Allowance for Loan Losses
(57,062
)
(58,496
)
(42,154
)
Net Loans and Lease Receivable
5,963,993
5,989,154
5,177,964
Premises and Equipment, Net
77,944
79,007
67,617
Accrued Interest Receivable
37,171
36,738
32,547
Other Equity Securities
44,313
48,736
39,555
Other Real Estate Owned
16,766
1,473
1,787
Cash Value of Life Insurance
119,509
118,707
101,362
Deferred Taxes, Net
21,433
25,222
20,852
Goodwill
121,146
121,146
91,527
Core Deposit and Customer Intangibles
15,136
15,775
10,326
Other Assets
24,380
24,723
19,963
Total Assets
$
7,953,862
$
7,948,294
$
6,888,649
Liabilities
Deposits
Noninterest-Bearing
$
1,366,558
$
1,410,708
$
1,190,942
Interest-Bearing
5,140,304
5,008,943
4,450,004
Total Deposits
6,506,862
6,419,651
5,640,946
Securities Sold Under Agreements to Repurchase
29,896
22,557
21,529
Federal Home Loan Bank Borrowings
367,408
492,946
367,202
Subordinated Debt
92,587
92,645
99,818
Subordinated Debt - Trust Preferred Securities
5,000
5,000
5,000
Accrued Interest Payable
4,064
4,829
3,752
Other Liabilities
69,605
62,226
50,878
Total Liabilities
7,075,422
7,099,854
6,189,125
Shareholders' Equity
Preferred Stock
71,930
71,930
71,930
Common Stock
29,615
29,603
25,520
Additional Paid-In Capital
503,325
502,046
398,237
Retained Earnings
309,999
292,629
249,981
Accumulated Other Comprehensive Loss
(36,429
)
(47,768
)
(46,144
)
Total Shareholders' Equity
878,440
848,440
699,524
Total Liabilities and Shareholders' Equity
$
7,953,862
$
7,948,294
$
6,888,649
Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
Three Months Ended
Nine Months Ended
(Dollars in thousands)
September 30, 2025
June 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
Interest Income:
Interest and Fees on Loans
$
106,662
$
104,028
$
93,307
$
313,682
$
269,858
Interest and Dividends on Securities
7,554
6,906
6,417
21,074
17,949
Interest on Federal Funds Sold and Due From Banks
4,472
3,916
3,017
12,475
10,815
Total Interest Income
118,688
114,850
102,741
347,231
298,622
Interest Expense:
Interest on Deposits
43,358
41,546
41,303
127,343
120,232
Interest on Borrowings
6,054
6,262
5,324
17,587
16,736
Total Interest Expense
49,412
47,808
46,627
144,930
136,968
Net Interest Income
69,276
67,042
56,114
202,301
161,654
—
Provision for Credit Losses
3,183
2,225
1,665
8,220
4,161
Net Interest Income After Provision for Credit Losses
66,093
64,817
54,449
194,081
157,493
Other Income:
Service Charges on Deposit Accounts
2,565
2,633
2,723
8,058
7,699
Gain (Loss) on Sales of Securities
77
(47
)
(13
)
29
(14
)
Gain on Sales of Loans
624
781
122
2,661
2,721
Other Income
8,405
11,048
7,942
28,564
21,930
Total Other Income
11,671
14,415
10,774
39,312
32,336
—
Other Expenses:
—
Salaries and Employee Benefits
27,613
28,317
24,877
85,427
75,816
Occupancy and Equipment Expense
7,284
7,162
5,828
21,802
16,902
Merger and Conversion-Related Expense
477
210
319
937
1,068
Other Expenses
13,508
15,517
11,426
42,500
34,296
Total Other Expenses
48,882
51,206
42,450
150,666
128,082
Income Before Income Taxes
28,882
28,026
22,773
82,727
61,747
Provision for Income Taxes
6,026
5,923
4,930
17,225
13,128
Net Income
22,856
22,103
17,843
65,502
48,619
Preferred Stock Dividends
1,351
1,350
1,351
4,051
4,051
Net Income Available to Common Shareholders
$
21,505
$
20,753
$
16,492
$
61,451
$
44,568
Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Three Months Ended
September 30, 2025
June 30, 2025
September 30, 2024
(Dollars in thousands)
Average Outstanding Balance
Interest Earned/Interest Paid
Average Yield/Rate
Average Outstanding Balance
Interest Earned/Interest Paid
Average Yield/Rate
Average Outstanding Balance
Interest Earned/Interest Paid
Average Yield/Rate
Assets
Interest Earning Assets:
Total Loans
$
6,036,622
$
106,662
7.01
%
$
5,995,490
$
104,028
6.96
%
$
5,212,948
$
93,307
7.12
%
Securities
978,502
7,554
3.06
%
937,099
6,906
2.96
%
924,012
6,263
2.70
%
Securities Purchased under Agreements to Resell
25,490
330
5.14
%
31,172
401
5.16
%
17,117
154
3.58
%
Interest-Bearing Deposit in Other Banks
419,413
4,142
3.92
%
336,138
3,515
4.19
%
209,918
3,017
5.72
%
Total Interest Earning Assets
7,460,027
118,688
6.31
%
7,299,899
114,850
6.31
%
6,363,995
102,741
6.42
%
Allowance for Loan Losses
(58,468
)
.
(56,934
)
.
(41,554
)
Noninterest- Earning Assets
519,600
548,406
466,203
Total Assets
$
7,921,159
$
118,688
$
7,791,371
$
114,850
$
6,788,644
$
102,741
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Deposits
5,122,136
43,358
3.36
%
5,029,981
41,546
3.31
%
4,308,780
41,303
3.81
%
Subordinated Debt
92,624
1,235
5.29
%
92,682
1,235
5.34
%
99,854
1,353
5.39
%
Subordinated Debt - Trust Preferred Securities
5,000
100
7.93
%
5,000
100
8.02
%
5,000
114
9.07
%
Advances from Federal Home Loan Bank (FHLB)
424,287
4,547
4.25
%
447,271
4,793
4.30
%
347,476
3,723
4.26
%
Other Borrowings
26,176
172
2.61
%
20,514
134
2.62
%
20,971
134
2.54
%
Total Interest-Bearing Liabilities
$
5,670,223
$
49,412
3.46
%
$
5,595,448
$
47,808
3.43
%
$
4,782,081
$
46,627
3.88
%
Noninterest-Bearing Liabilities:
Noninterest-Bearing Deposits
$
1,315,064
$
1,292,262
$
1,269,282
Other Liabilities
73,794
65,847
55,333
Total Noninterest-Bearing Liabilities
1,388,858
1,358,109
1,324,615
Shareholders' Equity:
Common Shareholders' Equity
790,148
765,884
610,018
Preferred Equity
71,930
71,930
71,930
Total Shareholders' Equity
862,078
837,814
681,948
Total Liabilities and Shareholders' Equity
$
7,921,159
$
7,791,371
$
6,788,644
Net Interest Spread
2.85
%
2.88
%
2.54
%
Net Interest Income
$
69,276
$
67,042
$
56,114
Net Interest Margin
3.68
%
3.68
%
3.51
%
Overall Cost of Funds
2.81
%
2.78
%
3.07
%
Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention.
Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
Nine Months Ended
(Dollars in thousands)
September 30, 2025
September 30, 2024
Average Outstanding Balance
Interest Earned/Interest Paid
Average Yield/Rate
Average Outstanding Balance
Interest Earned/Interest Paid
Average Yield/Rate
Assets
Interest Earning Assets:
Total Loans
$
6,001,647
$
313,682
6.99
%
$
5,131,474
$
269,858
7.02
%
Securities
946,961
21,074
2.98
%
901,525
17,795
2.64
%
Securities Purchased under Agreements to Resell
35,740
1,382
5.17
%
5,747
154
3.58
%
Interest-Bearing Deposit in Other Banks
361,760
11,093
4.10
%
262,068
10,815
5.51
%
Total Interest Earning Assets
7,346,108
347,231
6.32
%
6,300,814
298,622
6.33
%
Allowance for Loan Losses
(56,718
)
(41,178
)
Noninterest- Earning Assets
536,438
463,080
Total Assets
$
7,825,828
$
347,231
$
6,722,716
$
298,622
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Deposits
$
5,103,928
$
127,343
3.34
%
$
4,216,866
$
120,232
3.81
%
Subordinated Debt
94,169
3,732
5.30
%
99,913
4,063
5.43
%
Subordinated Debt - Trust Preferred Securities
5,000
299
8.00
%
5,000
340
9.08
%
Bank Term Funding Program
—
—
—
%
86,496
2,788
4.31
%
Advances from Federal Home Loan Bank (FHLB)
411,444
13,136
4.27
%
298,735
9,189
4.11
%
Other Borrowings
21,699
420
2.59
%
18,758
356
2.54
%
Total Interest-Bearing Liabilities
$
5,636,240
$
144,930
3.44
%
$
4,725,768
$
136,968
3.87
%
Noninterest-Bearing Liabilities:
Noninterest-Bearing Deposits
$
1,284,297
$
1,283,035
Other Liabilities
67,954
51,629
Total Noninterest-Bearing Liabilities
1,352,251
1,334,664
Shareholders' Equity:
Common Shareholders' Equity
764,959
590,354
Preferred Equity
71,930
71,930
Total Shareholders' Equity
836,889
662,284
Total Liabilities and Shareholders' Equity
$
7,825,381
$
6,722,716
Net Interest Spread
2.88
%
2.46
%
Net Interest Income
$
202,301
$
161,654
Net Interest Margin
3.68
%
3.43
%
Overall Cost of Funds
2.80
%
3.04
%
Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention.
Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
Three Months Ended
Nine Months Ended
(Dollars in thousands, except per share data)
September 30, 2025
June 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
Interest Income:
Interest income
$
118,688
$
114,850
$
102,741
$
347,231
$
298,622
Core interest income
118,688
114,850
102,741
347,231
298,622
Interest Expense:
Interest expense
49,412
47,808
46,627
144,930
136,968
Core interest expense
49,412
47,808
46,627
144,930
136,968
Provision for Credit Losses: (b)
Provision for credit losses
3,183
2,225
1,665
8,220
4,161
Core provision expense
3,183
2,225
1,665
8,220
4,161
Other Income:
Other income
11,671
14,415
10,774
39,312
32,336
Gain on former bank premises and equipment
—
—
—
(155
)
(50
)
(Gain) Loss on sale of securities
(77
)
47
13
(29
)
14
Gain on extinguishment of debt
—
—
—
(630
)
—
Gain on branch sale
—
(3,360
)
—
(3,360
)
Core other income
11,594
11,102
10,787
35,138
32,300
Other Expense:
Other expense
48,882
51,206
42,450
150,666
128,082
Acquisition-related expenses (2)
(1,157
)
(570
)
(319
)
(2,406
)
(1,453
)
Core conversion expenses
(439
)
(1,008
)
(511
)
(1,663
)
(511
)
Tax credit - ERC
1,997
1,997
Core other expense
49,283
49,628
41,620
148,594
126,118
Pre-Tax Income: (a)
Pre-tax income
28,882
28,026
22,773
82,727
61,747
Gain on former bank premises and equipment
—
—
—
(155
)
(50
)
(Gain) Loss on sale of securities
(77
)
47
13
(29
)
14
Gain on extinguishment of debt
—
—
—
(630
)
—
Gain on branch sale
—
(3,360
)
—
(3,360
)
—
Acquisition-related expenses (2)
1,157
570
319
2,406
1,453
Core conversion expenses
439
1,008
511
1,663
511
Tax credit - ERC
(1,997
)
—
—
(1,997
)
—
Core pre-tax income
28,404
26,291
23,616
80,625
63,675
Provision for Income Taxes: (1)
Provision for income taxes
6,026
5,923
4,930
17,225
13,128
Tax on gain on former bank premises and equipment
—
—
—
(33
)
(11
)
Tax on (gain) loss on sale of securities
(16
)
10
3
(6
)
3
Tax on gain on extinguishment of debt
—
—
—
(133
)
—
Tax on gain on branch sale
—
(833
)
(833
)
—
Tax on acquisition-related expenses (2)
157
103
—
403
91
Tax on core conversion expenses
93
213
108
352
108
Tax on tax credit - ERC
(422
)
—
—
(422
)
—
Core provision for income taxes
5,838
5,416
5,041
16,553
13,319
Preferred Dividends:
Preferred dividends
1,351
1,350
1,351
4,051
4,051
Core preferred dividends
1,351
1,350
1,351
4,051
4,051
Net income available to common shareholders
21,505
20,753
16,492
61,451
44,568
Gain on former bank premises and equipment, net of tax
—
—
—
(122
)
(39
)
(Gain) loss on sale of securities, net of tax
(61
)
37
10
(23
)
11
Gain on extinguishment of debt, net of tax
—
—
—
(497
)
—
Gain on branch sale, net of tax
—
(2,527
)
—
(2,527
)
—
Acquisition-related expenses (2), net of tax
1,000
467
319
2,003
1,362
Core conversion expenses, net of tax
346
795
403
1,311
403
Tax credit - ERC, net of tax
(1,575
)
—
—
(1,575
)
—
Core net income available to common shareholders
$
21,215
$
19,525
$
17,224
$
60,021
$
46,305
Pre-tax, Pre-provision Earnings Available to Common Shareholders (a+b)
$
32,065
$
30,251
$
24,438
$
90,947
$
65,908
Gain on former bank premises and equipment
—
—
—
(155
)
(50
)
(Gain) loss on sale of securities
(77
)
47
13
(29
)
14
Gain on extinguishment of debt
—
—
—
(630
)
—
Gain on branch sale
—
(3,360
)
—
(3,360
)
—
Acquisition-related expenses (2)
1,157
570
319
2,406
1,453
Core conversion expenses
439
1,008
511
1,663
511
Tax credit- ERC
(1,997
)
—
—
(1,997
)
—
Core pre-tax, pre-provision earnings
$
31,587
$
28,516
$
25,281
$
88,845
$
67,836
Average Diluted Common Shares Outstanding
29,656,639
29,586,975
25,440,247
29,495,049
25,421,746
Diluted Earnings Per Common Share
Diluted earnings per common share
$
0.73
$
0.70
$
0.65
$
2.08
$
1.75
Gain on former bank premises and equipment, net of tax
—
—
—
—
—
(Gain) loss on sale of securities, net of tax
—
—
—
—
—
Gain on extinguishment of debt, net of tax
—
—
—
(0.02
)
—
Gain on branch sale, net of tax
—
(0.09
)
—
(0.09
)
—
Acquisition-related expenses (2), net of tax
0.03
0.02
0.01
0.07
0.05
Core conversion expenses,net of tax
0.01
0.03
0.02
0.04
0.02
Tax credit - ERC, net of tax
(0.05
)
—
—
(0.05
)
—
Core diluted earnings per common share
$
0.72
$
0.66
$
0.68
$
2.03
$
1.82
Pre-tax, Pre-provision Diluted Earnings per Common Share
$
1.08
$
1.02
$
0.96
$
3.08
$
2.59
Gain on former bank premises and equipment
—
—
—
(0.01
)
—
(Gain) loss on sale of securities
—
—
—
—
—
Gain on extinguishment of debt
—
—
—
(0.02
)
—
Gain on branch sale
—
(0.11
)
—
(0.11
)
—
Acquisition-related expenses (2)
0.04
0.02
0.01
0.08
0.06
Core conversion expenses
0.02
0.03
0.02
0.06
0.02
Tax credit - ERC
(0.07
)
—
—
(0.07
)
—
Core pre-tax, pre-provision diluted earnings per common share
$
1.07
$
0.96
$
0.99
$
3.01
$
2.67
(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2025 and 2024. These rates approximated the marginal tax rates.
(2) Includes merger and conversion-related expenses and salary and employee benefits.
(3) CECL non-purchased credit deteriorated (PCD) provision/unfunded commitment expense attributable to the Oakwood acquisition.
Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
(Dollars in thousands, except per share data)
September 30, 2025
June 30, 2025
September 30, 2024
Total Shareholders' (Common) Equity:
Total shareholders' equity
$
878,440
$
848,440
$
699,524
Preferred stock
(71,930
)
(71,930
)
(71,930
)
Total common shareholders' equity
806,510
776,510
627,594
Goodwill
(121,146
)
(121,146
)
(91,527
)
Core deposit and customer intangible
(15,136
)
(15,775
)
(10,326
)
Total tangible common equity
$
670,228
$
639,589
$
525,741
Total Assets:
Total assets
$
7,953,862
$
7,948,294
$
6,888,649
Goodwill
(121,146
)
(121,146
)
(91,527
)
Core deposit and customer intangible
(15,136
)
(15,775
)
(10,326
)
Total tangible assets
$
7,817,580
$
7,811,373
$
6,786,796
Common shares outstanding
29,615,370
29,602,970
25,519,501
Book value per common share
$
27.23
$
26.23
$
24.59
Tangible book value per common share
$
22.63
$
21.61
$
20.60
Common equity to total assets
10.14
%
9.77
%
9.11
%
Tangible common equity to tangible assets
8.57
%
8.19
%
7.75
%
Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
Three Months Ended
Nine Months Ended
(Dollars in thousands, except per share data)
September 30, 2025
June 30, 2025
September 30, 2024
September 30, 2025
September 30, 2024
Total Quarterly Average Assets
$
7,921,159
$
7,791,371
$
6,788,644
$
7,825,828
$
6,722,716
Total Quarterly Average Common Equity
$
790,148
$
765,884
$
610,018
$
764,959
$
590,354
Net Income Available to Common Shareholders:
Net income available to common shareholders
$
21,505
$
20,753
$
16,492
$
61,451
$
44,568
CECL Oakwood impact (3), net of tax
—
—
—
(122
)
(39
)
Gain on former bank premises and equipment, net of tax
(61
)
37
10
(23
)
11
(Gain) loss on sale of securities, net of tax
—
—
—
(497
)
—
Gain on extinguishment of debt, net of tax
—
(2,527
)
—
(2,527
)
—
Acquisition-related expenses, net of tax
1,000
467
319
2,003
1,362
Gain on branch sale, net of tax
346
795
403
1,311
403
Core conversion expenses, net of tax
(1,575
)
—
—
(1,575
)
—
Core net income available to common shareholders
$
21,215
$
19,525
$
17,224
$
60,021
$
46,305
Return to common shareholders on average assets (annualized) (2)
1.08
%
1.07
%
0.97
%
1.05
%
0.89
%
Core return on average assets (annualized) (2)
1.06
%
1.01
%
1.01
%
1.03
%
0.92
%
Return to common shareholders on average common equity (annualized) (2)
10.80
%
10.87
%
10.76
%
10.74
%
10.08
%
Core return on average common equity (annualized) (2)
10.65
%
10.23
%
11.23
%
10.49
%
10.48
%
Interest Income:
Interest income
$
118,688
$
114,850
$
102,741
$
347,231
$
298,622
Core interest income
118,688
114,850
102,741
347,231
298,622
Interest Expense:
Interest expense
49,412
47,808
46,627
144,930
136,968
Core interest expense
49,412
47,808
46,627
144,930
136,968
Other Income:
Other income
11,671
14,415
10,774
39,312
32,336
Gain on former bank premises and equipment
—
—
—
(155
)
(50
)
Loss (Gain) on sale of securities
(77
)
47
13
(29
)
14
Gain on extinguishment of debt
—
—
—
(630
)
—
Gain on branch sale
—
(3,360
)
(3,360
)
—
Core other income
11,594
11,102
10,787
35,138
32,300
Other Expense:
Other expense
48,882
51,206
42,450
150,666
128,082
Acquisition-related expenses
(1,157
)
(570
)
(319
)
(2,406
)
(1,453
)
Core conversion expenses
(439
)
(1,008
)
(511
)
(1,663
)
(511
)
Tax credit - ERC
1,997
1,997
Core other expense
$
49,283
$
49,628
$
41,620
$
148,594
$
126,118
Efficiency Ratio:
Other expense (a)
$
48,882
$
51,206
$
42,450
$
150,666
$
128,082
Core other expense (c)
$
49,281
$
49,628
$
41,620
$
148,592
$
126,118
Net interest and other income (1) (b)
$
80,869
$
81,504
$
66,901
$
241,583
$
194,004
Core net interest and other income (1) (d)
$
80,869
$
78,144
$
66,901
$
237,438
$
193,954
Efficiency ratio (a/b)
60.45
%
62.83
%
63.45
%
62.37
%
66.02
%
Core efficiency ratio (c/d)
60.94
%
63.51
%
62.21
%
62.58
%
65.02
%
Total Average Interest-Earnings Assets
$
7,460,027
$
7,299,899
$
6,363,995
$
7,346,108
$
6,300,814
Net Interest Income:
Net interest income
$
69,276
$
67,042
$
56,114
$
202,301
$
161,654
Loan discount accretion
$
(1,111
)
$
(767
)
$
(705
)
$
(2,671
)
$
(3,185
)
Net interest income excluding loan discount accretion
$
68,165
$
66,275
$
55,409
$
199,630
$
158,469
Net interest margin (2)
3.68
%
3.68
%
3.51
%
3.68
%
3.43
%
Net interest margin excluding loan discount accretion (2)
3.63
%
3.64
%
3.46
%
3.63
%
3.36
%
Net interest spread (2)
2.85
%
2.88
%
2.54
%
2.88
%
2.46
%
Net interest spread excluding loan discount accretion (2)
2.80
%
2.84
%
2.50
%
2.83
%
2.39
%
(1) Excludes gains/losses on sales of securities.
(2) Calculated utilizing an actual day count convention.
(3) CECL non-PCD provision/unfunded commitment expense attributable to the Oakwood acquisition.
0.72
