Director Day Rick D. purchased 1,500 shares, indicating insider confidence in NASDAQ:BFST.CEO Jude Melville highlighted significant operational improvements and balance sheet expansion in the fourth-quarter 2025 earnings call.BFST reported a net income of $21 million for the fourth quarter of 2025, with a full-year net income of $82.5 million.Business First Bancshares, Inc. (NASDAQ:BFST), the parent company of b1BANK, is a prominent player in the banking sector, focusing on growth and operational enhancemen ...

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Financial Performance - Business First (BFST) reported revenue of $83.09 million for the quarter ended December 2025, reflecting a 7.1% increase year-over-year [1] - Earnings per share (EPS) for the quarter was $0.79, up from $0.66 in the same quarter last year [1] - The reported revenue exceeded the Zacks Consensus Estimate of $81.5 million, resulting in a surprise of +1.95% [1] - The company achieved an EPS surprise of +9.72%, with the consensus EPS estimate being $0.72 [1] Key Metrics - Net Interest Margin stood at 3.7%, matching the two-analyst average estimate [4] - Efficiency Ratio was reported at 63.1%, higher than the average estimate of 60.7% based on two analysts [4] - Total Other Income reached $12.23 million, surpassing the two-analyst average estimate of $11.48 million [4] - Net Interest Income was reported at $70.86 million, compared to the average estimate of $69.13 million by two analysts [4] Stock Performance - Shares of Business First have returned +5.1% over the past month, outperforming the Zacks S&P 500 composite's +0.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

From a financial perspective, Melville said the company strengthened capital ratios over the past 12 months, with tangible common equity up 90 basis points and consolidated CET1 up 50 basis points year over year. He also said tangible book value grew 17.3%, the company began repurchasing shares for the first time in nearly six years, and it increased its common stock dividend for the seventh consecutive year.Other 2025 developments mentioned included closing three banking centers and opening one, expanding ...

Financial Data and Key Metrics Changes - The company reported a GAAP net income of $21.71 per share for the fourth quarter, with a core net income of $23.579 per share after excluding non-core items [10][11] - The core return on average assets (ROAA) was 1.16% for the fourth quarter, exceeding the stated goal of 1% [7][10] - Earnings per share (EPS) increased by 14% year-over-year, with a 20% improvement in the fourth quarter alone [8][10] - The tangible common equity ratio increased by 90 basis points, and consolidated CET1 capital rose by 50 basis points year-over-year [6] Business Line Data and Key Metrics Changes - Total loans held for investment increased by $168.4 million, or 11.1% annualized on a linked quarter basis, driven by improved demand and reduced paydowns [11] - Total deposits rose by $191.7 million, primarily due to a net increase in interest-bearing deposits [12] - The non-interest income for the fourth quarter was approximately $13.2 million, with swap fee revenue exceeding expectations [18][62] Market Data and Key Metrics Changes - Texas-based loans slightly declined from 39% of total loans, expected to decrease further to approximately 36% following the acquisition of Progressive Bank [12] - The company noted a balanced growth in loan production across different regions, particularly in Southwest and North Louisiana [27][66] Company Strategy and Development Direction - The company plans to focus on optimizing existing systems and deepening market presence rather than pursuing new major projects in 2026 [9][42] - There is an emphasis on sustainable ROAA, tangible book value accretion, and enhancing EPS through improved operational efficiency [9][44] - The company aims to deepen relationships with existing clients and enhance profitability before considering further M&A opportunities [43][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, indicating that 2026 could be even more fruitful following a pivotal 2025 [8][9] - The company is prepared to manage credit risks more effectively, learning from recent experiences with non-performing loans [30][33] - Management highlighted the importance of maintaining a balanced loan portfolio to mitigate concentration risks [33] Other Important Information - The company successfully completed two major core conversions and implemented new software platforms to enhance operational capabilities [4][5] - The acquisition of Progressive Bank is expected to contribute positively to the company's growth and operational efficiency [21] Q&A Session Summary Question: Insights on loan growth and outlook - Management noted that improved pipeline demand and reduced payoffs contributed to strong loan growth in the fourth quarter, with expectations of mid-single-digit growth for 2026 [24][25] Question: Details on non-performing loans - A significant commercial real estate loan in Houston was identified as non-performing, with management indicating it is one of the largest exposures [30][32] Question: Focus on daily execution versus M&A - Management clarified that the focus for 2026 will be on optimizing existing operations rather than pursuing new acquisitions, allowing for deeper relationship building with current clients [40][43] Question: Capital management and buyback strategy - The company plans to continue share buybacks opportunistically, with a focus on attractive pricing below $120 [46][48] Question: Opportunities for hiring in the current market - Management expressed readiness to hire selectively, focusing on acquiring the right talent to support growth without needing to hire aggressively [52][54]

Financial Data and Key Metrics Changes - The company reported a GAAP net income of $21.71 per share for the fourth quarter, with core net income of $23.579 per share after excluding non-core items [10][11] - The core return on assets (ROA) was 1.16% in the fourth quarter, exceeding the company's stated goal of 1% [7][10] - Earnings per share (EPS) increased by 14% year-over-year, with a 20% improvement in the fourth quarter alone [8][10] - The tangible common equity ratio increased by 90 basis points, and consolidated CET1 capital rose by 50 basis points year-over-year [6] Business Line Data and Key Metrics Changes - Total loans held for investment increased by $168.4 million, or 11.1% annualized on a linked quarter basis, driven by improved demand and reduced paydowns [11] - Total deposits rose by $191.7 million, primarily due to a net increase in interest-bearing deposits [12] - The non-interest income for the fourth quarter was approximately $13.2 million, with significant contributions from swap fee revenue [18] Market Data and Key Metrics Changes - Texas-based loans slightly declined from 39% of total loans, expected to decrease to approximately 36% following the acquisition of Progressive Bank [12] - The company experienced strong loan growth in Southwest and North Louisiana, with both regions growing over $100 million in loans and deposits each during 2025 [66] Company Strategy and Development Direction - The company plans to focus on optimizing existing systems and deepening relationships rather than pursuing new major projects in 2026 [9][42] - The management emphasized the importance of sustainable ROAA, tangible book value accretion, and enhancing EPS as key strategic goals [9][44] - The company aims to leverage its correspondent banking initiative to increase non-interest income and cross-sell products to existing clients [81] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026 being even more fruitful, with a focus on daily execution and maximizing the benefits of recent system implementations [9][42] - The company acknowledged challenges in the credit environment but highlighted lessons learned regarding concentration risk and exposure management [32][34] - Management expects to maintain a neutral position on the balance sheet and achieve modest margin improvement in a slightly down rate environment [16] Other Important Information - The company began share buybacks for the first time in nearly six years and increased its common stock dividend for the seventh consecutive year [7] - The acquisition of Progressive Bank is expected to enhance the company's footprint and contribute positively to its operations [21] Q&A Session Summary Question: Insights on loan growth and outlook - Management noted that improved pipeline demand and reduced payoffs contributed to strong loan growth in the fourth quarter, with expectations of mid-single-digit growth for 2026 [24][25] Question: Details on non-performing loans - A significant commercial real estate loan in Houston was identified as non-performing, with management indicating it is one of the largest exposures on their books [30][32] Question: Focus on daily execution versus M&A - Management clarified that while they are not prioritizing new M&A opportunities, they will focus on maximizing the output from recent investments and deepening existing relationships [43][44] Question: Capital management and buyback strategy - The company plans to continue share buybacks opportunistically, with a focus on attractive pricing below $120 [46][48] Question: Opportunities for hiring in the current environment - Management indicated a willingness to hire selectively, focusing on attracting the right talent to support growth without needing to hire aggressively [52][54]

Financial Data and Key Metrics Changes - The company reported a GAAP net income of $21.71 per share for Q4 2025, with a core net income of $23.579 per share after excluding non-core items [11][12] - The core return on average assets (ROAA) was 1.16% in Q4, exceeding the company's stated goal of 1% [8][11] - Earnings per share (EPS) increased by 14% year-over-year, with a 20% improvement in Q4 alone [9] - The tangible common equity ratio increased by 90 basis points, and consolidated CET1 capital rose by 50 basis points year-over-year [6] Business Line Data and Key Metrics Changes - Total loans held for investment increased by $168.4 million, or 11.1% annualized on a linked quarter basis, driven by improved demand [12] - Total deposits rose by $191.7 million, primarily due to a net increase in interest-bearing deposits [13] - The net interest margin increased to 3.71% for Q4, with a core net interest margin of 3.64% [14][15] Market Data and Key Metrics Changes - Texas-based loans slightly declined from 39% of total loans, expected to decrease further to approximately 36% following the acquisition of Progressive Bank [13] - The company experienced significant loan growth in Southwest Louisiana and North Louisiana, with both regions growing over $100 million in loans and deposits each during 2025 [70][71] Company Strategy and Development Direction - The company plans to focus on optimizing existing systems and deepening relationships rather than pursuing new major projects in 2026 [10][46] - The management emphasized the importance of sustainable ROAA, tangible book value accretion, and enhancing EPS as key strategic goals [10][49] - The company is not prioritizing new M&A opportunities at this time, aiming instead to demonstrate the value of past acquisitions [46][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about 2026, expecting it to be even more fruitful than 2025 due to completed major projects [9][10] - The company acknowledged challenges in the credit environment, particularly related to a single commercial real estate relationship that became non-performing [32][36] - Management indicated a focus on maintaining a balanced loan growth outlook, projecting mid-single-digit growth for 2026 [26][27] Other Important Information - The company has been recognized as one of the American Bankers Best Banks to Work for for five consecutive years, highlighting its positive workplace culture [6] - The acquisition of Progressive Bank is expected to enhance the company's footprint and contribute to its growth strategy [23] Q&A Session Summary Question: Insights on loan growth and outlook - Management noted that improved pipeline demand and reduced payoffs contributed to strong loan growth in Q4, with expectations of mid-single-digit growth for 2026 [26][27] Question: Details on non-performing loans - A significant commercial real estate loan in Houston was identified as non-performing, with management indicating it is one of the largest exposures [32][35] Question: Focus on daily execution versus major projects - Management clarified that the focus for 2026 will be on optimizing existing systems and deepening relationships rather than pursuing new acquisitions [46][48] Question: Capital management and buyback strategy - The company plans to continue share buybacks opportunistically, with a focus on attractive pricing [50][52] Question: Opportunities for hiring in the current environment - Management expressed readiness to hire selectively, focusing on attracting the right talent to support growth [56][59]

Core Insights - Business First Bancshares, Inc. reported a net income of $21.0 million or $0.71 per diluted common share for Q4 2025, a decrease from the previous quarter, while core net income on a non-GAAP basis increased to $23.5 million or $0.79 per diluted common share [1][2][3] - For the full year 2025, net income available to common stockholders was $82.5 million or $2.79 per diluted common share, reflecting significant year-over-year growth [2][3] Financial Performance - The company achieved a net interest income of $70.9 million for Q4 2025, up from $69.3 million in the previous quarter, with a net interest margin of 3.71% [6][15] - Loans held for investment increased by $168.4 million or 2.80% in Q4 2025, with deposits rising by $191.7 million or 2.95% [6][10] - The return on average assets was 1.04% and return on common equity was 10.18% for Q4 2025, compared to 1.08% and 10.80% in the previous quarter [21][22] Shareholder Returns - The board declared a quarterly preferred dividend of $18.75 per share and a common dividend of $0.15 per share, to be paid on February 15, 2026 [3] - The company repurchased 150,504 shares at a market value of $3.7 million during the fourth quarter, increasing the book value per common share to $27.95 [6][13] Credit Quality - The ratio of nonperforming loans increased to 1.24% as of December 31, 2025, primarily due to the deterioration of a single commercial real estate relationship [8] - The allowance for credit losses to loans held for investment ratio was 0.94%, down from 1.03% in the previous quarter [18] Growth and Strategy - Business First emphasized a focus on organic growth and efficient execution, expecting positive trends to continue into 2026 [3] - The company’s securities portfolio increased by $3.3 million, representing 12.04% of total assets as of December 31, 2025 [9]

Financial Performance - Business First reported Q4 2025 net income of $21.0 million or $0.71 per diluted common share, a decrease of $0.5 million and $0.02 from the previous quarter[1]. - For the full year 2025, net income available to common stockholders was $82.5 million or $2.79 per diluted common share, an increase of $22.8 million and $0.53 from 2024[2]. - Core net income for Q4 2025 was $23.5 million or $0.79 per diluted common share, an increase of $2.3 million and $0.07 from the linked quarter[1]. - Basic Earnings per Common Share for Q4 2025 was $0.71, compared to $0.52 in Q4 2024, reflecting a year-over-year increase of 36.5%[45]. - Net income available to common shareholders for the twelve months ended December 31, 2025, was $82,460 thousand, reflecting a significant increase of 38.06% from $59,706 thousand in 2024[53]. - Net income available to common shareholders for Q4 2025 was $21,009,000, up from $15,138,000 in Q4 2024, representing a 39.1% increase year-over-year[64]. - Core net income available to common shareholders for the twelve months ended December 31, 2025, was $83,540,000, compared to $65,759,000 for the same period in 2024, reflecting a 27.0% increase[64]. Asset and Loan Growth - Loans held for investment increased by $168.4 million or 2.80% in Q4 2025, with a 11.10% annualized growth rate[7]. - Total Loans Held for Investment (HFI) increased to $6,189,490 thousand as of December 31, 2025, up from $5,981,399 thousand a year earlier, representing a growth of 3.5%[43]. - Total loans increased to $6,023,214 thousand in 2025 from $5,327,466 thousand in 2024, representing a growth of 13.06%[58]. - Total assets increased to $8,214,740 thousand as of December 31, 2025, up from $7,953,862 thousand in the previous quarter, representing a growth of 3.28%[51]. - Total assets reached $7,873,743 thousand in 2025, compared to $6,973,735 thousand in 2024, marking an increase of 12.92%[58]. Deposits and Interest Income - Deposits rose by $191.7 million or 2.95% in Q4 2025, reflecting an 11.69% annualized growth rate[15]. - Net interest income for Q4 2025 totaled $70.9 million, up from $69.3 million in the previous quarter[20]. - Net interest income for the twelve months ended December 31, 2025, was $465,011 thousand, compared to $414,764 thousand in 2024, reflecting a year-over-year increase of 12.09%[60]. - Net interest income for the three months ended December 31, 2025, was $70,862 thousand, an increase of 7.25% compared to $65,729 thousand for the same period in 2024[53]. - Net interest margin for Q4 2025 was stable at 3.71%, compared to 3.68% in the linked quarter[8]. - The net interest margin for the three months ended December 31, 2025, was 3.71%, up from 3.61% in the same period last year, indicating improved efficiency in earning assets[55]. Asset Quality and Risk Management - The ratio of nonperforming loans increased to 1.24% as of Dec. 31, 2025, up 42 basis points from the previous quarter[12]. - Nonperforming Loans to Total Loans (HFI) ratio rose to 1.24% as of December 31, 2025, up from 0.42% a year ago, indicating a deterioration in asset quality[43]. - The Allowance for Loan Losses to Total Loans (HFI) ratio decreased to 0.87% as of December 31, 2025, down from 0.92% a year earlier, suggesting improved loan quality[43]. - Provision for credit losses for the three months ended December 31, 2025, was $3,098 thousand, a decrease from $6,712 thousand in the same quarter of 2024, suggesting improved asset quality[53]. - The allowance for loan losses decreased to $53,959 thousand as of December 31, 2025, compared to $57,062 thousand in the previous quarter, indicating a positive trend in credit risk management[51]. Shareholder Returns and Dividends - Shareholders' equity increased by $18.4 million or 2.10% compared to the linked quarter, with book value per common share rising to $27.95[18]. - The board declared a quarterly common dividend of $0.15 per share based on Q4 financial performance[3]. - Dividends per Common Share increased to $0.15 in Q4 2025, up from $0.14 in both Q4 2024 and Q3 2025, indicating a stable dividend policy[45]. - Total shareholders' equity as of December 31, 2025, was $896,883,000, up from $799,466,000 a year earlier, indicating a 12.2% increase[69]. - Book value per common share increased to $27.95 as of December 31, 2025, from $24.62 a year earlier, reflecting a 13.4% increase[69]. Operational Efficiency - The Efficiency Ratio for Q4 2025 was 63.10%, compared to 63.91% in Q4 2024, showing improved operational efficiency[45]. - The efficiency ratio for Q3 2025 was 63.10%, compared to 60.45% in Q2 2025, indicating a decline in operational efficiency[73]. - Core efficiency ratio improved to 59.74% in Q3 2025 from 60.94% in Q2 2025, showing enhanced cost management[73].

Core Viewpoint - Analysts forecast that Business First (BFST) will report quarterly earnings of $0.72 per share, reflecting a year-over-year increase of 9.1% and revenues of $81.5 million, which is a 5% increase compared to the previous year [1]. Earnings Estimates - Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter, indicating that analysts have not changed their initial forecasts during this period [2]. - Revisions to earnings estimates are crucial for predicting potential investor actions regarding the stock, as empirical research shows a strong correlation between earnings estimate trends and short-term stock price performance [3]. Key Metrics Projections - Analysts estimate a 'Net Interest Margin' of 3.7%, up from 3.6% reported in the same quarter last year [5]. - The expected 'Efficiency Ratio' is projected at 60.7%, a decrease from the 63.9% reported in the same quarter last year [5]. - 'Total Other Income' is expected to reach $11.48 million, slightly lower than the $11.86 million reported a year ago [5]. - 'Net Interest Income' is anticipated to be $69.13 million, compared to $65.73 million reported in the same quarter last year [6]. Stock Performance - Shares of Business First have experienced a change of -0.8% in the past month, compared to a -0.4% move of the Zacks S&P 500 composite, with a Zacks Rank 3 (Hold) indicating expected performance in line with the overall market [6].