One stock that might be an intriguing choice for investors right now is Business First Bancshares, Inc. (BFST) . This is because this security in the Banks - Northeast space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective. This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place ...

Financial Performance - Net income available to common shareholders decreased to $59.7 million, a $5.9 million, or 9.0%, decrease from the year ended December 31, 2023[295]. - Core net income available to common shareholders for the year ended December 31, 2024 was $65.8 million, or $2.49 per diluted common share, compared to $66.3 million, or $2.62 per diluted common share for 2023[424]. - Net income available to common shareholders decreased to $59,706 thousand in 2024 from $65,642 thousand in 2023, a decline of 9%[480]. - Earnings per common share (diluted) decreased to $2.26 in 2024 from $2.59 in 2023, a decline of 13%[480]. - Pre-tax income for 2023 was $83,051, a decrease of 8.5% from $90,586 in 2022[425]. Asset Growth - Total assets increased to $7.9 billion, a $1.3 billion, or 19.3%, increase from December 31, 2023[286]. - Total assets grew to $6,973,735 thousand in 2024, compared to $6,341,880 thousand in 2023, indicating a growth of 10%[302]. - Total assets increased to $7.86 billion as of December 31, 2024, up from $6.58 billion in 2023, representing a growth of about 19.4%[476]. - Average assets increased to $7.0 billion in 2024 from $6.3 billion in 2023[390]. Loan Portfolio - Total loans held for investment reached $6.0 billion, a $988.6 million, or 19.8%, increase from December 31, 2023[295]. - Total loans increased to $5,327,466 thousand in 2024, up from $4,859,637 thousand in 2023, representing a growth of 9.6%[302]. - Total loans held for investment reached $5.98 billion as of December 31, 2024, compared to $4.99 billion as of December 31, 2023[340]. - Average loans outstanding for 2024 were $5,327,466 thousand, up from $4,859,637 thousand in 2023[355]. - Total loans, excluding mortgage loans held for sale, increased by $988.6 million, or 19.8%, to $6.0 billion as of December 31, 2024[325]. Deposit Growth - Total deposits rose to $6.5 billion, a $1.3 billion, or 24.1%, increase from December 31, 2023[295]. - Total deposits reached $6.5 billion as of December 31, 2024, marking an increase of $1.3 billion or 24.1% from $5.2 billion in 2023[367]. - Average deposits for the year ended December 31, 2024, were $5.7 billion, an increase of $733.5 million or 14.7% compared to $5.0 billion in 2023[369]. - Noninterest-bearing deposits increased to $1.4 billion as of December 31, 2024, up from $1.3 billion, representing a growth of $58.0 million or 4.5%[368]. Interest Income and Expense - Net interest income totaled $227.4 million, a $12.3 million, or 5.7%, increase from the year ended December 31, 2023[295]. - Interest income from loans increased to $374,555 thousand in 2024, up from $323,327 thousand in 2023, a growth of 16%[480]. - The average rate paid on total interest-bearing deposits rose from 3.00% in 2023 to 3.73% in 2024, driven by federal reserve interest rate hikes[369]. - Total interest-earning assets reached $6,536,333 thousand in 2024, an increase from $5,939,405 thousand in 2023, marking an 10.1% growth[302]. Noninterest Income and Expenses - Noninterest income for the year ended December 31, 2024 increased by $7.6 million, or 20.6%, to $44.2 million compared to $36.6 million in 2023[309]. - Total noninterest expense for the year ended December 31, 2024 increased by $21.0 million, or 13.4%, to $177.7 million compared to $156.7 million in 2023[317]. - Other income increased by $2.5 million, or 53.0%, for the year ended December 31, 2024 compared to the same period in 2023[314]. Credit Losses and Nonperforming Assets - The provision for credit losses rose to $10.9 million in 2024 from $4.5 million in 2023, primarily due to the acquisition of Oakwood[308]. - Nonperforming loans increased to $25.0 million as of December 31, 2024, from $17.1 million as of December 31, 2023[344]. - The allowance for credit losses at the end of 2024 was $58.5 million, representing 0.98% of total loans held for investment, an increase from $43.7 million or 0.88% in 2023[353]. - Total nonperforming assets reached $30,536 thousand in 2024, compared to $18,755 thousand in 2023, marking a 62.9% increase[345]. Capital and Equity - Total shareholders' equity increased to $799.5 million as of December 31, 2024, compared to $644.3 million as of December 31, 2023, an increase of $155.2 million, or 24.1%[394]. - Common equity to total assets improved to 9.3% in 2023 from 8.7% in 2022, reflecting a stronger capital position[433]. - The total allowance for credit losses increased to $58.528 million in 2024, up from $43.738 million in 2023, indicating a growth of 33.8%[359]. Acquisitions and Mergers - The acquisition of Waterstone was completed on January 31, 2024, for $3.3 million in cash[293]. - The merger with Oakwood was consummated on October 1, 2024, with Oakwood having total assets of $863.6 million[294]. - The company reported a CECL impact on the Oakwood acquisition of $4.8 million for the year ended December 31, 2024[424]. Regulatory and Compliance - The company reported a material weakness in internal control over financial reporting related to information technology general controls as of December 31, 2024[465]. - The company’s internal control over financial reporting was not effective as of December 31, 2024, based on the criteria established by COSO[466].

Group 1 - b1BANK has appointed Senna Bayasgalan as the chief marketing officer to lead brand and marketing technology initiatives aimed at supporting the bank's growth and enhancing client relationships [1][2] - Bayasgalan brings over 16 years of experience in marketing leadership, international brand building, communications, and customer acquisition across various industries including private capital, technology, and media [1][2] - The CEO of b1BANK, Jude Melville, expressed confidence that Bayasgalan's diverse experience in leading marketing campaigns will accelerate the bank's evolution and help in effectively utilizing technology-enabled branding tools [2] Group 2 - Bayasgalan is enthusiastic about b1BANK's commitment to serving businesses and local communities, and aims to elevate the brand and foster innovation to help clients achieve their goals [3] - She is a founding board member of Asians in Advertising and has been involved in mentoring programs, showcasing her commitment to community and professional development [3] - As of December 31, 2024, Business First Bancshares, Inc. had $7.9 billion in assets and $6.9 billion in assets under management, indicating a strong financial position [4]

Group 1 - Business First (BFST) is currently outperforming its peers in the Finance sector with a year-to-date return of 6.9%, compared to the sector average of 5.9% [4] - The Zacks Rank for Business First is 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions, with a 4% increase in the consensus estimate for full-year earnings over the past quarter [3] - Business First is part of the Banks - Northeast industry, which has an average year-to-date return of 8.3%, suggesting that BFST is slightly underperforming its industry [5] Group 2 - The Finance sector includes 871 individual stocks and currently holds a Zacks Sector Rank of 1, indicating strong overall performance [2] - Jackson Financial (JXN), another Finance stock, has returned 7.1% year-to-date and has a Zacks Rank of 2 (Buy), with a 2.4% increase in the consensus EPS estimate over the past three months [4][5] - The Insurance - Life Insurance industry, where Jackson Financial operates, has a lower ranking (165) and has only moved +2% since the beginning of the year [6]

Core Viewpoint - Business First (BFST) shows potential as a strong investment opportunity due to significant revisions in earnings estimates, indicating an improving earnings outlook [1][2] Estimate Revisions - The rising trend in earnings estimate revisions reflects growing analyst optimism about Business First's earnings prospects, which is expected to positively impact its stock price [2] - For the current quarter, Business First is projected to earn $0.60 per share, marking a 20% increase from the previous year, with a 9.09% rise in the Zacks Consensus Estimate over the last 30 days [4] - For the full year, the expected earnings are $2.70 per share, representing an 8.43% year-over-year increase, with a 6.41% rise in consensus estimates due to two upward revisions [5] Zacks Rank - Business First currently holds a Zacks Rank 2 (Buy), supported by favorable estimate revisions, which historically correlate with strong stock performance [6] - Stocks rated Zacks Rank 1 (Strong Buy) and 2 (Buy) have shown significant outperformance compared to the S&P 500 [6] Investment Outlook - The stock has appreciated by 6.6% over the past four weeks due to strong estimate revisions, suggesting further upside potential, making it a candidate for portfolio addition [7]

Financial Data and Key Metrics Changes - The company released its fourth quarter 2024 earnings press release, which is available on its website [3] - The presentation referenced during the call includes safe harbor statements regarding forward-looking statements and the use of non-GAAP financial measures [4] Business Line Data and Key Metrics Changes - Specific details regarding changes in business line data and key metrics were not provided in the available content Market Data and Key Metrics Changes - Specific details regarding changes in market data and key metrics were not provided in the available content Company Strategy and Development Direction and Industry Competition - The company is focused on corporate strategy and financial planning, as indicated by the presence of the Senior Vice President, Director of Corporate Strategy and FP&A [2][5] Management's Comments on Operating Environment and Future Outlook - Management has not yet provided comments on the operating environment and future outlook in the available content Other Important Information - The call included participation from various analysts and stakeholders, indicating a level of interest in the company's performance [1] Q&A Session Summary - The Q&A session details were not provided in the available content

Core Insights - Business First (BFST) reported revenue of $77.59 million for the quarter ended December 2024, reflecting a year-over-year increase of 28.9% [1] - The earnings per share (EPS) remained stable at $0.66, matching the EPS from the same quarter last year [1] - The revenue exceeded the Zacks Consensus Estimate by 2.90%, while the EPS surpassed the consensus estimate by 43.48% [1] Financial Performance Metrics - Net Interest Margin was reported at 3.6%, slightly above the average estimate of 3.5% from two analysts [4] - The Efficiency Ratio was 63.9%, significantly better than the estimated 73.4% by two analysts [4] - Total other income (Non-Interest Income) reached $11.86 million, exceeding the average estimate of $11.23 million [4] - Net Interest Income was reported at $65.73 million, higher than the estimated $64.18 million [4] Stock Performance - Over the past month, shares of Business First have returned -1.9%, contrasting with the Zacks S&P 500 composite's increase of +2.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the broader market in the near term [3]

Earnings Performance - Business First reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.46 per share, with an earnings surprise of 43.48% [1] - The company posted revenues of $77.59 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.90%, compared to year-ago revenues of $60.17 million [2] Historical Performance - Over the last four quarters, Business First has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times [2] Stock Movement and Outlook - Business First shares have declined about 1% since the beginning of the year, while the S&P 500 has gained 3.5% [3] - The company's current consensus EPS estimate for the coming quarter is $0.55 on revenues of $75.23 million, and for the current fiscal year, it is $2.54 on revenues of $312.51 million [7] Industry Context - The Banks - Northeast industry, to which Business First belongs, is currently in the top 20% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact stock performance [5]

Q4 and FY 2024 Results TABLE OF CONTENTS | l | l | L | D | i | 3 | e | g | a | s | c | o | s | r | e | s | u | | | | | | | | | | | | | | | | | | | | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | d | l | l | G | i | i | P | i | i | & | S | i | I | 4 | 5 | t | n | g | r | n | c | p | e | s | o | c | a | m | p | a | ...

Financial Performance - Business First reported Q4 2024 net income of $15.1 million, a decrease of $1.4 million from the previous quarter, with diluted earnings per share of $0.51[1][2] - For the fiscal year 2024, net income available to common stockholders was $59.7 million, down $5.9 million year-over-year, resulting in diluted earnings per share of $2.26[2] - Net income available to common shareholders for Q4 2024 was $15,138 thousand, a decrease of 8.2% from $16,492 thousand in Q3 2024 and an increase of 4.6% from $14,474 thousand in Q4 2023[18] - Net income available to common shareholders for the twelve months ended December 31, 2024, was $59,706 thousand, a decrease of 9.0% compared to $65,642 thousand for the same period in 2023[21] Asset Growth - Total assets increased to $7,857,090 thousand as of December 31, 2024, up from $6,584,550 thousand a year earlier, representing a growth of 19.4%[61] - Total assets as of December 31, 2024, reached $7,857,090,000, a 14.0% increase from $6,888,649,000 in Q3 2024 and a 19.4% increase from $6,584,550,000 in Q4 2023[85] - Total loans increased to $5,327,466 thousand in December 2024, up from $4,859,637 thousand in December 2023, representing a growth of 9.6%[69] - Total deposits reached $6,511,331 thousand, reflecting a 24.1% increase compared to $5,248,790 thousand a year ago[61] Loan and Deposit Performance - Loans held for investment increased by $761.3 million or 14.58% in Q4 2024, with organic loan growth of $62.8 million or 1.20% excluding Oakwood[10][11] - Deposits grew by $870.4 million or 15.43% in Q4 2024, with organic deposit growth of $156.8 million or 2.78% excluding Oakwood[4][16] - Total Loans Held for Investment increased to $5,981,399 thousand in Q4 2024, up 14.63% from $5,220,118 thousand in Q3 2024 and 19.83% from $4,992,785 thousand in Q4 2023[49] Interest Income and Margin - Net interest income for Q4 2024 increased to $65.7 million, up from $56.1 million in the linked quarter, with a net interest margin of 3.61%[7][23] - Net interest income for the three months ended December 31, 2024, was $65,729 thousand, up 22.2% from $53,760 thousand in the same period last year[65] - The net interest margin for the three months ended December 31, 2024, was 3.61%, compared to 3.50% in the same period last year[68] - The Net Interest Margin for Q4 2024 was 3.61%, up from 3.51% in Q3 2024, indicating improved profitability on interest-earning assets[53] Credit Losses and Provisions - The provision for credit losses in Q4 2024 was $6.7 million, significantly higher than $1.7 million in the previous quarter, primarily due to the Oakwood acquisition[25] - Provision for credit losses increased to $6,712 thousand for the three months ended December 31, 2024, compared to $119 thousand in the same period last year[65] - The allowance for loan losses stood at $54,840 thousand as of December 31, 2024, compared to $40,414 thousand a year earlier, indicating a 35.7% increase[61] - The Allowance for Loan Losses to Total Loans (HFI) ratio increased to 0.92% in Q4 2024 from 0.81% in Q3 2024, indicating a higher provision for potential loan losses[49] Shareholder Equity - Shareholders' equity increased by $99.9 million in Q4 2024, largely due to the Oakwood acquisition[19] - Total shareholders' equity increased to $799,466 thousand as of December 31, 2024, up from $644,259 thousand a year earlier, representing a growth of 24.2%[61] - Total common shareholders' equity increased to $727,536,000 as of December 31, 2024, up 15.9% from $627,594,000 in Q3 2024 and 27.2% from $572,329,000 in Q4 2023[85] Efficiency and Other Income - Total Other Income for Q4 2024 was $11,857 thousand, a significant increase of 84.06% compared to $6,413 thousand in Q4 2023[57] - Other income for the twelve months ended December 31, 2024, was $44,193 thousand, compared to $36,642 thousand in 2023, representing an increase of 20.5%[73] - The Efficiency Ratio improved slightly to 63.91% in Q4 2024 from 63.45% in Q3 2024, reflecting better cost management[53] - The efficiency ratio for the three months ended December 31, 2024, was 63.91%, slightly higher than 63.36% in the same quarter of the previous year[92]