[Executive Summary & Q2 2025 Financial Highlights](index=1&type=section&id=1_Executive_Summary_Q2_2025_Financial_Highlights) Business First Bancshares, Inc. reported strong Q2 2025 financial performance with increased net income and EPS, alongside strategic advancements and declared dividends [Q2 2025 Financial Performance Overview](index=1&type=section&id=1.1_Q2_2025_Financial_Performance_Overview) Business First Bancshares, Inc. reported increased net income and diluted EPS for Q2 2025 compared to the linked quarter, both on a GAAP and non-GAAP basis, indicating consistent earnings Net Income Available to Common Shareholders (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :--------------------------------- | :------ | :----------------------- | | Net Income (GAAP) | $20.8 million | $19.2 million | | Diluted EPS (GAAP) | $0.70 | $0.65 | | Core Net Income (Non-GAAP) | $19.5 million | $19.3 million | | Core Diluted EPS (Non-GAAP) | $0.66 | $0.65 | [Strategic and Operational Achievements](index=1&type=section&id=1.2_Strategic_and_Operational_Achievements) The CEO highlighted a quarter of strategic advancements, including a new partnership, successful core conversion, and branch repositioning, which are expected to drive future growth while maintaining healthy balance sheet metrics - The quarter's operational activities, including a new partnership announcement, successful core conversion, and legacy branch repositioning, position the company for continued growth and development[2](index=2&type=chunk) - The team maintained consistent earnings and healthy balance sheet growth, including tangible book value and capital levels, amidst productive operational activities[2](index=2&type=chunk) - Future plans include converting Oakwood franchise systems late in Q3 and strengthening the Dallas market presence as a fully integrated team[2](index=2&type=chunk) [Quarterly Dividends Declared](index=1&type=section&id=1.3_Quarterly_Dividends_Declared) The board of directors declared both preferred and common stock dividends for Q2 2025, payable on August 31, 2025 Dividends Declared | Dividend Type | Amount | Payment Date | Record Date | | :------------ | :----- | :----------- | :---------- | | Preferred | $18.75 per share (1.875% quarterly) | August 31, 2025 | August 15, 2025 | | Common | $0.14 per share | August 31, 2025 | August 15, 2025 | [Quarterly Highlights](index=2&type=section&id=2_Quarterly_Highlights) The company achieved sustained core performance, optimized its branch network, maintained stable net interest margin, and announced a significant acquisition [Core Performance & Capital Growth](index=2&type=section&id=2.1_Core_Performance_Capital_Growth) The company demonstrated sustained core performance with improved return on average assets and significant capital growth, driven by strong earnings Performance Ratios (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Return to common shareholders on average assets (annualized) | 1.07% | 1.00% | | Core return on average assets (non-GAAP, annualized) | 1.01% | 1.01% | | Common equity to total assets | 9.77% | 9.69% | | Tangible common equity to tangible assets | 8.19% | 8.06% | | Tangible book value per common share (non-GAAP) | $28.61 | N/A (increased 77 bps) | - Tangible book value per common share increased by **77 basis points**, representing a **3.70%** or **14.82%** annualized increase compared to the linked quarter[4](index=4&type=chunk) [Branch Optimization & Core Conversion](index=2&type=section&id=2.2_Branch_Optimization_Core_Conversion) Business First optimized its branch network by selling a Kaplan, LA branch, which resulted in a capital injection and reduced operating costs. The company also successfully completed a core processing system conversion to FIS for improved efficiency - Sold a banking branch in Kaplan, LA, resulting in a net capital injection of **$3.4 million**[4](index=4&type=chunk) - The Kaplan branch sale included **$50.7 million** of deposits for an **8.0%** purchase premium and is estimated to reduce annual operating costs by **$750,000**[4](index=4&type=chunk) - Successfully converted core processing for loans, deposits, and the general ledger to Fidelity Information Systems ("FIS") to improve capabilities and efficiencies[4](index=4&type=chunk) [Net Interest Margin (NIM) Stability](index=2&type=section&id=2.3_Net_Interest_Margin_Stability) Net interest income increased slightly, and net interest margin remained stable at 3.68% despite minor negative impacts from core conversion and deposit replacement costs Net Interest Income & Margin (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :---------------------- | :------ | :----------------------- | | Net Interest Income | $67.0 million | $66.0 million | | Net Interest Margin (NIM) | 3.68% | 3.68% | | Net Interest Spread | 2.88% | 2.91% | | Non-GAAP NIM | 3.64% | 3.64% | | Non-GAAP Net Interest Spread | 2.84% | 2.86% | - Net interest margin was impacted by excess funding during core conversion (**~3 basis points**) and incremental funding cost associated with replacing the Kaplan deposit portfolio (**~2 basis points**)[4](index=4&type=chunk) [Progressive Bank Acquisition](index=3&type=section&id=2.4_Progressive_Bank_Acquisition) Business First executed a definitive agreement to acquire Progressive Bancorp, Inc. and its subsidiary, Progressive Bank, which will add significant assets, deposits, and equity to the company - On July 7, 2025, Business First executed a definitive agreement to acquire Progressive Bancorp, Inc and its wholly-owned bank subsidiary, Progressive Bank[5](index=5&type=chunk) Progressive Bank's Financials (as of March 31, 2025) | Metric | Amount | | :----------- | :----------- | | Total Assets | $752 million | | Deposits | $673 million | | Equity | $65 million | [Statement of Financial Condition](index=3&type=section&id=3_Statement_of_Financial_Condition) The balance sheet reflects growth in loans and shareholders' equity, an increase in borrowings, and shifts in deposit composition, while credit quality metrics showed an upward trend [Loans](index=3&type=section&id=3.1_Loans) Loans held for investment increased by $66.7 million, primarily driven by growth in commercial and commercial real estate portfolios, while the construction portfolio declined Loans Held for Investment (QoQ) | Portfolio | Q2 2025 | Linked Quarter (Q1 2025) | Change | | :-------------------- | :------ | :----------------------- | :----- | | Total Loans (HFI) | $6,047.65 million | $5,980.92 million | +$66.7 million (+1.12%) | | Commercial | $1,960.97 million | $1,862.18 million | +$98.8 million | | Commercial Real Estate | $2,533.76 million | $2,472.12 million | +$61.6 million | | Construction | $600.29 million | $633.70 million | -$33.4 million (-5.27%) | - Texas-based loans represented approximately **40%** of the overall loan portfolio as of June 30, 2025[7](index=7&type=chunk) [Credit Quality](index=3&type=section&id=3.2_Credit_Quality) Credit quality metrics showed an upward migration, with increases in nonperforming loans and assets ratios compared to the linked quarter, largely due to an additional reserve on a nonaccrual loan Credit Quality Metrics (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | Change | | :------------------------------------ | :------ | :----------------------- | :----- | | Nonperforming loans to loans HFI | 0.97% | 0.69% | +28 bps | | Nonperforming assets to total assets | 0.76% | 0.55% | +21 bps | | Nonaccrual Loans | $56.38 million | $35.92 million | +$20.46 million | | Allowance for credit losses to loans HFI | 1.02% | 1.01% | +1 bp | - The **$56.4 million** nonaccrual balance at June 30, 2025, included approximately **$22.5 million** in commercial real estate, **$20.8 million** in commercial, and **$7.5 million** in residential real estate portfolios[8](index=8&type=chunk) [Securities](index=3&type=section&id=3.3_Securities) The securities portfolio increased slightly, primarily due to positive fair value adjustments, and represented 11.83% of total assets - The securities portfolio increased **$5.9 million**, or **0.64%**, from the linked quarter, impacted by **$6.4 million** in positive fair value adjustments[9](index=9&type=chunk) - The securities portfolio, based on estimated fair value, represented **11.83%** of total assets as of June 30, 2025[9](index=9&type=chunk) [Deposits](index=4&type=section&id=3.4_Deposits) Total deposits decreased, but excluding the Kaplan sale, deposits showed a slight increase. There was a notable shift from interest-bearing to noninterest-bearing deposits, influenced by institutional withdrawals and retail CD promotions Deposits (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | Change | | :-------------------------- | :------ | :----------------------- | :----- | | Total Deposits | $6,419.65 million | $6,458.18 million | -$38.5 million (-0.60%) | | Noninterest-bearing deposits | $1,410.71 million | $1,308.31 million | +$102.4 million (+7.83%) | | Interest-bearing deposits | $5,008.94 million | $5,149.87 million | -$140.9 million (-10.77%) | - Excluding the **$50.7 million** in deposits transferred in the Kaplan sale, deposits increased **$12.1 million** or **0.19%**[10](index=10&type=chunk) - The money market portfolio was affected by approximately **$62.8 million** of withdrawals from financial institutional accounts, which were replaced with more efficient brokered certificates of deposits (CDs)[11](index=11&type=chunk) [Borrowings](index=4&type=section&id=3.5_Borrowings) Borrowings significantly increased, primarily due to higher short-term Federal Home Loan Bank advances, used to manage liquidity during core conversion and short-term deposit fluctuations - Borrowings increased **$179.0 million** or **41.25%** from the linked quarter, primarily due to an increase in short-term Federal Home Loan Bank advances[12](index=12&type=chunk) - Additional liquidity was utilized during the quarter as Business First's main correspondent banking relationship was changed during the core conversion process, as well as for short-term deposit fluctuations[12](index=12&type=chunk) [Shareholders' Equity](index=4&type=section&id=3.6_Shareholders_Equity) Shareholders' equity increased, driven by strong earnings and positive fair value adjustments in the securities portfolio, leading to an increase in book value per common share Shareholders' Equity (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | Change | | :------------------------------------ | :------ | :----------------------- | :----- | | Total Shareholders' Equity | $848.44 million | $826.31 million | +$22.1 million (+2.68%) | | Accumulated Other Comprehensive Loss | -$47.77 million | -$52.84 million | +$5.07 million (+9.61%) | | Book value per common share | $26.23 | $25.51 | +$0.72 | | Tangible book value per common share (non-GAAP) | $21.61 | $20.84 | +$0.77 (+3.70%) | [Results of Operations](index=5&type=section&id=4_Results_of_Operations) Operating results show increased net interest income and other income, a lower provision for credit losses, and improved return on assets and equity [Net Interest Income](index=5&type=section&id=4.1_Net_Interest_Income) Net interest income increased slightly, with stable net interest margin, despite a slight decrease in loan and interest-earning asset yields and negative impacts from the Kaplan sale and core conversion. The overall cost of funds declined Net Interest Income (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Net Interest Income | $67.0 million | $66.0 million | | Loan Yields | 6.96% | 6.99% | | Interest-Earning Asset Yields | 6.31% | 6.35% | | Net Interest Margin | 3.68% | 3.68% | | Net Interest Spread | 2.88% | 2.91% | | Overall Cost of Funds | 2.78% | 2.82% | - Net interest margin was negatively impacted by approximately **2 bps** due to the Kaplan, LA banking branch sale and approximately **3 bps** due to excess cash carried during the core conversion process[16](index=16&type=chunk) [Provision for Credit Losses](index=5&type=section&id=4.2_Provision_for_Credit_Losses) The provision for credit losses decreased compared to the linked quarter, primarily due to an additional reserve on a loan transferred to nonaccrual status in the prior quarter - Provision for credit losses was **$2.2 million** for the quarter ended June 30, 2025, compared to **$2.8 million** from the linked quarter[18](index=18&type=chunk)[53](index=53&type=chunk) - The current quarter's reserve was largely impacted by an additional **$1.6 million** reserve on a loan transferred to nonaccrual status[18](index=18&type=chunk) - The ratio of allowance for credit losses to loans held for investment was **1.02%** at June 30, 2025, compared to **1.01%** the linked quarter[18](index=18&type=chunk) [Other Income](index=5&type=section&id=4.3_Other_Income) Other income increased significantly, mainly driven by a gain from the Kaplan branch sale, partially offset by reductions in equity investment income and gain on sale of SBA loans Other Income (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | Change | | :-------------------- | :------ | :----------------------- | :----- | | Total Other Income | $14.4 million | $13.2 million | +$1.2 million (+8.99%) | | Gain on Branch Sale | $3.4 million | $0 | +$3.4 million | | Equity Investment Income | N/A | N/A | -$1.0 million (reduction) | | Gain on Sale of SBA Loans | N/A | N/A | -$475,000 (reduction) | [Other Expenses](index=6&type=section&id=4.4_Other_Expenses) Other expenses increased slightly, primarily due to higher data processing costs associated with the core conversion, partially offset by lower incentive-based salaries and benefits Other Expenses (QoQ, $ thousands) | Category | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------------- | :------ | :----------------------- | | Total Other Expenses | 51,206 | 50,578 | | Data Processing | 5,321 | 3,236 | | Salaries and Employee Benefits | 28,317 | 29,497 | - The increase in other expenses was largely attributable to a **$2.1 million** increase in data processing expenses, of which **$1.0 million** was associated with core conversion expenses[21](index=21&type=chunk) - The increase was offset by a **$1.2 million** reduction in salaries and benefits, largely due to lower incentive-based expenses[21](index=21&type=chunk) [Return on Assets and Common Equity](index=6&type=section&id=4.5_Return_on_Assets_and_Common_Equity) Return on average assets and common equity improved for the quarter, both on a GAAP and non-GAAP basis, reflecting strong overall performance Annualized Performance Ratios (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Return to common shareholders on average assets | 1.07% | 1.00% | | Return to common shareholders on average common equity | 10.87% | 10.48% | | Non-GAAP return on average assets | 1.01% | 1.01% | | Non-GAAP return on average common equity | 10.23% | 10.53% | [Corporate Information](index=6&type=section&id=5_Corporate_Information) This section provides details for the Q2 2025 earnings conference call and an overview of Business First Bancshares, Inc. and its subsidiary, b1BANK [Conference Call and Webcast](index=6&type=section&id=5.1_Conference_Call_and_Webcast) Business First Bancshares, Inc. scheduled a conference call and webcast for July 28, 2025, to discuss the Q2 2025 financial results, with details provided for access - Executive management will host a conference call and webcast to discuss results on Monday, July 28, 2025, at **9:00 a.m. Central Time**[24](index=24&type=chunk) - Interested parties can attend by dialing toll-free **1-800-715-9871** (North America only), conference ID **2799880**, or via webcast at https://edge.media-server.com/mmc/p/jqbmtwns[24](index=24&type=chunk) [About Business First Bancshares, Inc.](index=6&type=section&id=5.2_About_Business_First_Bancshares_Inc) Business First Bancshares, Inc., through its subsidiary b1BANK, is a financial institution with $7.9 billion in assets, offering commercial and personal banking services across Louisiana and Texas, and recognized for innovation and as a top workplace - Business First Bancshares, Inc, through its banking subsidiary b1BANK, has **$7.9 billion** in assets[26](index=26&type=chunk) - Manages **$5.4 billion** in assets under management through b1BANK's affiliate Smith Shellnut Wilson, LLC (SSW)[26](index=26&type=chunk) - Operates Banking Centers and Loan Production Offices in markets across Louisiana and Texas, providing commercial and personal banking products and services[26](index=26&type=chunk) - b1BANK is a **2024 Mastercard 'Innovation Award'** winner and multiyear winner of American Banker Magazine's **'Best Banks to Work For'**[26](index=26&type=chunk) [Non-GAAP Financial Measures](index=7&type=section&id=6_Non_GAAP_Financial_Measures) This section explains and reconciles non-GAAP financial measures, such as core and tangible metrics, to provide a clearer view of the company's underlying performance [Explanation of Non-GAAP Measures](index=7&type=section&id=6.1_Explanation_of_Non_GAAP_Measures) This section clarifies the use of non-GAAP financial measures, such as 'core' and 'tangible,' which are provided to supplement GAAP measures and offer a clearer view of core business performance by excluding certain significant or distorting transactions - 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[28](index=28&type=chunk) - 'Core' measures 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[28](index=28&type=chunk) - 'Tangible' measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization[28](index=28&type=chunk) [Non-GAAP Financial Data](index=17&type=section&id=6.2_Non_GAAP_Financial_Data) This section provides detailed reconciliations of various GAAP financial measures to their corresponding non-GAAP 'core' and 'tangible' counterparts, including income, expenses, pre-tax income, EPS, and balance sheet ratios, for both quarterly and year-to-date periods Core Net Income Available to Common Shareholders (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Core Net Income Available to Common Shareholders | $19,525 thousand | $19,281 thousand | | Core Diluted Earnings Per Common Share | $0.66 | $0.65 | Tangible Common Equity and Assets (QoQ) | Metric | June 30, 2025 | March 31, 2025 | | :------------------------------------ | :------------ | :------------- | | Total Tangible Common Equity | $639,589 thousand | $616,153 thousand | | Total Tangible Assets | $7,811,373 thousand | $7,646,499 thousand | | Tangible Book Value per Common Share | $21.61 | $20.84 | | Tangible Common Equity to Tangible Assets | 8.19% | 8.06% | Core Efficiency Ratio (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------- | :------ | :----------------------- | | Core Efficiency Ratio | 63.51% | 63.35% | [Legal and Regulatory Disclosures](index=7&type=section&id=7_Legal_and_Regulatory_Disclosures) This section outlines forward-looking statement disclaimers, information on SEC filings, and details regarding the proposed acquisition of Progressive Bancorp, Inc [Special Note Regarding Forward-Looking Statements](index=7&type=section&id=7.1_Special_Note_Regarding_Forward_Looking_Statements) The release contains forward-looking statements, which are subject to risks and uncertainties that could cause actual results to differ materially from expectations. The company disclaims any obligation to update these statements - Certain statements 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 and Section 21E of the Securities Exchange Act of 1934[30](index=30&type=chunk) - Readers are cautioned not to place undue reliance on forward-looking statements, as actual results could differ materially due to various factors, including those specified in the Annual Report on Form 10-K and other public filings[30](index=30&type=chunk) - The company undertakes no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release[30](index=30&type=chunk) [Additional Information](index=8&type=section&id=7.2_Additional_Information) Information about Business First's SEC filings is available free of charge through the SEC's EDGAR service or by direct request to the company - Additional information about Business First's reports filed with the SEC can be obtained free of charge using the SEC's EDGAR service on www.SEC.gov or by contacting the SEC[32](index=32&type=chunk) - These documents can also be obtained free of charge from Business First by directing a request to their corporate secretary[32](index=32&type=chunk) [No Offer or Solicitation](index=8&type=section&id=7.3_No_Offer_or_Solicitation) This release explicitly states that it does not constitute an offer to sell or a solicitation of an offer to purchase any securities of Business First, and no securities will be sold where unlawful - 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[34](index=34&type=chunk) - 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[34](index=34&type=chunk) [Additional Information and Where to Find It](index=8&type=section&id=7.4_Additional_Information_and_Where_to_Find_It) This section provides details regarding the proposed acquisition of Progressive, emphasizing that this communication is not a solicitation and directs investors to read the Registration Statement on Form S-4, including the proxy statement/prospectus, for important information - This communication is being made with respect to the proposed transaction involving Business First and Progressive and is not a solicitation of any vote or approval[36](index=36&type=chunk) - Business First will file a Registration Statement on Form S-4 with the SEC that will include a proxy statement of Progressive and a prospectus of Business First[37](index=37&type=chunk) - Investors and shareholders are urged to read carefully the Registration Statement and the proxy statement/prospectus, as well as other relevant documents, because they will contain important information[37](index=37&type=chunk) [Participants in the Solicitation](index=9&type=section&id=7.5_Participants_in_the_Solicitation) Business First, Progressive, and their respective directors, executive officers, and employees may be considered participants in the solicitation of proxies for the proposed transaction, with details on their interests to be provided in the proxy statement/prospectus - Business First, Progressive, and certain of their respective directors, executive officers, and employees may be deemed participants in the solicitation of proxies of Progressive's shareholders[40](index=40&type=chunk) - Information about Business First's directors and executive officers is available in its definitive proxy statement relating to its 2025 annual meeting of shareholders[40](index=40&type=chunk) - Other information regarding participants and a description of their direct and indirect interests will be contained in the proxy statement/prospectus[40](index=40&type=chunk) [Selected Financial Information (Unaudited)](index=10&type=section&id=8_Selected_Financial_Information_Unaudited) This section presents unaudited key financial ratios, loan portfolio details, credit quality metrics, per share data, and breakdowns of other income and expenses [Balance Sheet Ratios & Loan Portfolio](index=10&type=section&id=8.1_Balance_Sheet_Ratios_Loan_Portfolio) This section presents key balance sheet ratios and a detailed breakdown of the loan portfolio, showing an increase in total loans held for investment, particularly in commercial and commercial real estate Balance Sheet Ratios (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------------- | :------ | :----------------------- | | Loans (HFI) to Deposits | 94.21% | 92.61% | | Shareholders' Equity to Assets Ratio | 10.67% | 10.61% | Loans Held for Investment by Category (QoQ, $ thousands) | Category | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------- | :------ | :----------------------- | | Commercial | 1,960,974 | 1,862,176 | | Real Estate: Commercial | 2,533,761 | 2,472,121 | | Real Estate: Construction | 600,292 | 633,698 | | Real Estate: Residential | 879,891 | 934,357 | | Total Loans (HFI) | 6,047,650 | 5,980,919 | [Allowance for Loan Losses & Nonperforming Assets](index=10&type=section&id=8.2_Allowance_for_Loan_Losses_Nonperforming_Assets) This section details the allowance for loan losses and nonperforming assets, indicating an increase in nonperforming loans and assets ratios, alongside a higher allowance for credit losses Allowance for Loan Losses (QoQ, $ thousands) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Balance, End of Period | 58,496 | 56,863 | | Provision for Loan Losses - Quarterly | 2,455 | 3,000 | | Allowance for Loan Losses to Total Loans (HFI) | 0.97% | 0.95% | | Allowance for Credit Losses to Total Loans (HFI) | 1.02% | 1.01% | Nonperforming Assets (QoQ, $ thousands) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Total Nonperforming Loans | 58,844 | 41,550 | | Total Nonperforming Assets | 60,317 | 42,832 | | Nonperforming Loans to Total Loans (HFI) | 0.97% | 0.69% | | Nonperforming Assets to Total Assets | 0.76% | 0.55% | [Per Share Data & Annualized Performance Ratios](index=11&type=section&id=8.3_Per_Share_Data_Annualized_Performance_Ratios) This section provides per share data, including basic and diluted EPS, dividends, and book value, along with annualized performance ratios such as return on assets and equity, net interest margin, and efficiency ratio Per Share Data (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------------- | :------ | :----------------------- | | Basic Earnings per Common Share | $0.70 | $0.65 | | Diluted Earnings per Common Share | $0.70 | $0.65 | | Dividends per Common Share | $0.14 | $0.14 | | Book Value per Common Share | $26.23 | $25.51 | Annualized Performance Ratios (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Return to Common Shareholders on Average Assets | 1.07% | 1.00% | | Return to Common Shareholders on Average Common Equity | 10.87% | 10.48% | | Net Interest Margin | 3.68% | 3.68% | | Efficiency Ratio | 62.83% | 63.85% | [Other Expenses](index=11&type=section&id=8.4_Other_Expenses) This section details various other expenses, showing an overall increase driven by data processing costs, partially offset by a decrease in salaries and employee benefits Other Expenses (QoQ, $ thousands) | Category | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------------- | :------ | :----------------------- | | Salaries and Employee Benefits | 28,317 | 29,497 | | Occupancy and Bank Premises | 3,119 | 3,401 | | Data Processing | 5,321 | 3,236 | | Total Other Expenses | 51,206 | 50,578 | [Other Income](index=12&type=section&id=8.5_Other_Income) This section itemizes other income sources, highlighting a significant gain from the branch sale, which contributed to the overall increase in other income Other Income (QoQ, $ thousands) | Category | Q2 2025 | Linked Quarter (Q1 2025) | | :-------------------------- | :------ | :----------------------- | | Service Charges on Deposit Accounts | 2,633 | 2,860 | | Gain on Sales of Loans | 781 | 1,256 | | Gain on Branch Sale | 3,360 | — | | Total Other Income | 14,415 | 13,226 | [Consolidated Balance Sheets (Unaudited)](index=13&type=section&id=9_Consolidated_Balance_Sheets_Unaudited) The unaudited consolidated balance sheets provide a detailed overview of the company's assets, liabilities, and shareholders' equity at quarter-end [Consolidated Balance Sheet Overview](index=13&type=section&id=9.1_Consolidated_Balance_Sheet_Overview) The consolidated balance sheet shows an increase in total assets and shareholders' equity, with notable changes in cash, loans, deposits, and borrowings, reflecting the quarter's operational activities and financial performance Consolidated Balance Sheet Highlights (QoQ, $ thousands) | Metric | June 30, 2025 | March 31, 2025 | | :------------------------------------ | :------------ | :------------- | | Total Assets | 7,948,294 | 7,784,728 | | Net Loans and Lease Receivable | 5,989,154 | 5,924,056 | | Total Deposits | 6,419,651 | 6,458,181 | | Federal Home Loan Bank Borrowings | 492,946 | 317,352 | | Total Liabilities | 7,099,854 | 6,958,416 | | Total Shareholders' Equity | 848,440 | 826,312 | [Consolidated Statements of Income (Unaudited)](index=14&type=section&id=10_Consolidated_Statements_of_Income_Unaudited) The unaudited consolidated statements of income present the company's revenues, expenses, and net income for the quarter and year-to-date periods [Consolidated Income Statement Overview](index=14&type=section&id=10.1_Consolidated_Income_Statement_Overview) The consolidated statement of income reflects an increase in net interest income and total other income, leading to higher net income available to common shareholders for the quarter and year-to-date periods Consolidated Income Statement Highlights (QoQ, $ thousands) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Total Interest Income | 114,850 | 113,693 | | Total Interest Expense | 47,808 | 47,710 | | Net Interest Income | 67,042 | 65,983 | | Provision for Credit Losses | 2,225 | 2,812 | | Total Other Income | 14,415 | 13,226 | | Total Other Expenses | 51,206 | 50,578 | | Net Income Available to Common Shareholders | 20,753 | 19,193 | [Consolidated Net Interest Margin (Unaudited)](index=15&type=section&id=11_Consolidated_Net_Interest_Margin_Unaudited) This section provides an unaudited detailed analysis of the company's net interest income, interest-earning assets, and interest-bearing liabilities, and their respective yields and rates [Net Interest Margin Details](index=15&type=section&id=11.1_Net_Interest_Margin_Details) This section provides a detailed breakdown of interest-earning assets and interest-bearing liabilities, showing the calculation of net interest spread and net interest margin, which remained stable for the quarter Net Interest Margin Details (QoQ) | Metric | Q2 2025 | Linked Quarter (Q1 2025) | | :------------------------------------ | :------ | :----------------------- | | Average Interest Earning Assets | $7,299,899 thousand | $7,263,399 thousand | | Average Yield on Interest Earning Assets | 6.31% | 6.35% | | Average Interest Bearing Liabilities | $5,595,448 thousand | $5,624,162 thousand | | Average Rate on Interest Bearing Liabilities | 3.43% | 3.44% | | Net Interest Spread | 2.88% | 2.91% | | Net Interest Margin | 3.68% | 3.68% | | Overall Cost of Funds | 2.78% | 2.82% |

Core Insights - b1BANK has promoted Heather Roemer to executive vice president and chief administrative officer, reflecting the bank's commitment to leadership continuity and strategic growth [1][2][3] Group 1: Leadership and Organizational Changes - Heather Roemer will oversee business transformation programs, product management, marketing, communications, and human resources, while continuing her role as president of b1 FOUNDATION [2] - Jude Melville, chairman and CEO of b1BANK, emphasized Roemer's institutional knowledge and operational excellence, highlighting her role in shaping the bank's culture and infrastructure [3] - Roemer has been instrumental in the bank's growth and community engagement over the past 16 years, focusing on financial literacy and community empowerment initiatives [3][4] Group 2: Company Overview - As of March 31, 2025, Business First Bancshares Inc. has $7.8 billion in assets and $7.1 billion in assets under management through its affiliate Smith Shellnut Wilson LLC, excluding $0.9 billion of b1BANK assets managed by SSW [5] - b1BANK operates banking centers and loan production offices across Louisiana and Texas, offering a range of commercial and personal banking products and services [5] - The bank has received accolades such as the 2024 Mastercard "Innovation Award" and has been recognized multiple times by American Banker magazine as one of the "Best Banks to Work For" [5]

Core Viewpoint - Business First Bancshares, Inc. has signed a definitive agreement to acquire Progressive Bancorp, Inc. and its subsidiary, Progressive Bank, which will enhance its market position and asset base in Louisiana [1][2]. Company Overview - Business First Bancshares, Inc. currently has approximately $7.8 billion in assets and $7.1 billion in assets under management as of March 31, 2025 [7]. - Progressive Bancorp, Inc. reported total assets of $752 million, deposits of $673 million, and equity capital of $65 million as of March 31, 2025 [2][9]. Transaction Details - The acquisition is expected to increase Business First's total assets to approximately $8.5 billion and total loans to over $6.6 billion [2]. - Business First plans to issue approximately 3,050,490 shares of common stock to Progressive shareholders, who will own about 9.3% of the combined company post-closing [4]. - The transaction has received unanimous approval from both companies' boards of directors and is expected to close early in the first quarter of 2026, pending regulatory and shareholder approvals [5]. Strategic Implications - The acquisition aims to deepen Business First's footprint in Louisiana, strengthen its deposit and liquidity profiles, and enhance its ability to serve clients in a competitive market [3]. - The partnership is expected to combine shared values and complementary strategies, allowing both companies to leverage greater resources and capabilities [3].

Core Points - Business First Bancshares, Inc. (Nasdaq: BFST) will release its financial results for Q2 2025 on July 28, 2025, at 7:00 a.m. CST [1] - A conference call and webcast will be held on the same day at 9:00 a.m. CST to discuss the results [1] - Interested parties can join the call by dialing 1-800-715-9871 with conference ID 2799880 or via a live webcast [2] Company Overview - As of March 31, 2024, Business First Bancshares, Inc. has $7.8 billion in assets and $7.1 billion in assets under management through its affiliate Smith Shellnut Wilson, LLC [4] - The company operates banking centers and loan production offices in Louisiana and Texas, offering commercial and personal banking products and services [4] - b1BANK has received the 2024 Mastercard "Innovation Award" and is a multiyear winner of American Banker Magazine's "Best Banks to Work For" [4]

PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The company's financial statements show a slight decrease in total assets, a significant increase in net income, and growth in shareholders' equity for the period [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets were $7.78 billion as of March 31, 2025, with a slight decrease in cash and deposits, while shareholders' equity grew to $826.3 million Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 (Unaudited) | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$7,784,728** | **$7,857,090** | | Loans and Lease Receivable, Net | $5,924,056 | $5,926,559 | | Securities Available for Sale | $920,573 | $893,549 | | **Total Liabilities** | **$6,958,416** | **$7,057,624** | | Total Deposits | $6,458,181 | $6,511,331 | | Federal Home Loan Bank Borrowings | $317,352 | $355,875 | | **Total Shareholders' Equity** | **$826,312** | **$799,466** | [Consolidated Statements of Income](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Income) Net income for Q1 2025 rose to $20.5 million, a 51.4% year-over-year increase, driven by a significant rise in net interest income Consolidated Income Statement Highlights (in thousands, except per share data) | Account | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Total Interest Income | $113,693 | $96,011 | | Total Interest Expense | $47,710 | $44,480 | | **Net Interest Income** | **$65,983** | **$51,531** | | Provision for Credit Losses | $2,812 | $1,186 | | Total Other Income | $13,226 | $9,386 | | Total Other Expenses | $50,578 | $42,522 | | **Net Income** | **$20,543** | **$13,570** | | **Net Income Available to Common Shareholders** | **$19,193** | **$12,220** | | **Diluted EPS** | **$0.65** | **$0.48** | [Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Consolidated comprehensive income reached $30.7 million in Q1 2025, a substantial improvement from the prior year, boosted by net income and unrealized gains Comprehensive Income (Loss) (in thousands) | Description | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Consolidated Net Income | $20,543 | $13,570 | | Other Comprehensive Income (Loss) | $10,154 | $(5,049) | | **Consolidated Comprehensive Income** | **$30,697** | **$8,521** | [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Shareholders' equity increased to $826.3 million at the end of Q1 2025, driven by net income and other comprehensive income - Shareholders' equity increased by **$26.8 million** during Q1 2025, from $799.5 million to $826.3 million[14](index=14&type=chunk) - Key drivers of the equity increase were **net income ($20.5 million)** and **other comprehensive income ($10.2 million)**[14](index=14&type=chunk) - The company declared and paid cash dividends of **$1.35 million on preferred stock** and **$4.11 million on common stock** during the quarter[14](index=14&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating and investing activities was offset by cash used in financing, resulting in a net decrease in cash of $6.2 million Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $28,726 | $7,603 | | Net Cash Provided by (Used in) Investing Activities | $71,761 | $(162,154) | | Net Cash Provided by (Used in) Financing Activities | $(106,698) | $114,347 | | **Net Decrease in Cash and Due From Banks** | **$(6,211)** | **$(40,204)** | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes detail accounting policies, the Oakwood acquisition, debt redemption, credit loss allowances, and a subsequent banking center sale - On October 1, 2024, the Company acquired Oakwood Bancshares, Inc. for a total purchase price of **$103.8 million**, which included issuing 3,973,134 shares of common stock and resulted in **$30.2 million in goodwill**[29](index=29&type=chunk)[32](index=32&type=chunk) - The company redeemed **$7.0 million** of its subordinated debt during Q1 2025, resulting in a **$630,000 gain** on extinguishment of debt[81](index=81&type=chunk) - Subsequent to the quarter end, on April 4, 2025, the company sold its Kaplan banking center, which included **$51.2 million in deposits** and **$2.3 million in loans**[122](index=122&type=chunk) - The allowance for credit losses was **$56.9 million** for loans and **$3.5 million** for unfunded commitments as of March 31, 2025[65](index=65&type=chunk)[99](index=99&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the significant year-over-year growth in net income, driven by the Oakwood acquisition, alongside an increase in nonperforming assets and strong capital ratios [Overview and Recent Developments](index=36&type=section&id=Overview%20and%20Recent%20Developments) The company highlights its operational scale, recent strategic acquisitions and divestitures, and the full repayment of its BTFP loan - As of March 31, 2025, the company had total assets of **$7.8 billion**, total loans of **$6.0 billion**, and total deposits of **$6.5 billion**[131](index=131&type=chunk) - The company fully repaid its **$300.0 million Bank Term Funding Program (BTFP) loan** upon its maturity on March 22, 2024[134](index=134&type=chunk) - Key strategic activities include the **acquisition of Oakwood Bancshares** (October 2024) and the post-quarter **sale of the Kaplan banking center** (April 2025)[137](index=137&type=chunk)[138](index=138&type=chunk) [Results of Operations](index=38&type=section&id=Results%20of%20Operations) Q1 2025 net income rose 57.1% year-over-year, fueled by increased net interest income from the Oakwood acquisition and higher noninterest income Key Performance Metrics (Q1 2025 vs Q1 2024) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Income to Common Shareholders | $19.2M | $12.2M | | Diluted EPS | $0.65 | $0.48 | | Return on Average Assets (Annualized) | 1.00% | 0.74% | | Return on Average Equity (Annualized) | 10.48% | 8.51% | | Net Interest Margin | 3.68% | 3.32% | - The increase in net interest income was driven by a **$1.02 billion increase in average interest-earning assets**, primarily from the Oakwood acquisition, which contributed to a **$17.0 million increase in loan interest income**[146](index=146&type=chunk)[150](index=150&type=chunk) - The provision for credit losses increased to **$2.8 million** in Q1 2025, primarily due to **$2.3 million in reserves** on two individual commercial lending relationships[151](index=151&type=chunk) - Noninterest income rose by **$3.8 million**, mainly due to a **$1.1 million increase in gain on sales of loans** and a **$630,000 gain on the extinguishment of subordinated debt**[153](index=153&type=chunk) [Financial Condition](index=42&type=section&id=Financial%20Condition) Total assets remained stable at $7.8 billion, while nonperforming assets increased, and the loan loss allowance was strengthened Loan Portfolio Composition (in thousands) | Loan Type | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Real Estate: Commercial | $2,472,121 | $2,483,223 | | Real Estate: Construction | $633,698 | $670,502 | | Real Estate: Residential | $934,357 | $884,533 | | Commercial | $1,862,176 | $1,868,675 | | Consumer and Other | $78,567 | $74,466 | | **Total Loans Held for Investment** | **$5,980,919** | **$5,981,399** | Nonperforming Assets (in thousands) | Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total nonperforming loans | $41,550 | $25,007 | | Other real estate owned | $1,282 | $5,529 | | **Total nonperforming assets** | **$42,832** | **$30,536** | | Ratio of NPA to total assets | 0.55% | 0.39% | - The allowance for credit losses increased to **$60.4 million**, or **1.01% of total loans**, at March 31, 2025, up from $58.5 million, or 0.98%, at December 31, 2024[187](index=187&type=chunk) - Total deposits decreased by **$53.2 million (0.8%)** to $6.5 billion in Q1 2025, with noninterest-bearing deposits decreasing by **$48.7 million**[201](index=201&type=chunk)[202](index=202&type=chunk) [Liquidity and Capital Resources](index=55&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains a strong liquidity position and robust capital ratios, all well exceeding regulatory minimums - The company has significant contingent liquidity sources, including **$1.6 billion in FHLB availability** and **$1.3 billion in Federal Reserve Discount Window availability** as of March 31, 2025[207](index=207&type=chunk) Regulatory Capital Ratios (Company) | Ratio | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Tier 1 Leverage | 9.70% | 9.53% | | Common Equity Tier 1 | 9.78% | 9.44% | | Tier 1 Risk-based | 10.90% | 10.56% | | Total Risk-based | 13.03% | 12.75% | - The Board of Directors declared a quarterly cash dividend of **$0.14 per common share** on April 24, 2025[215](index=215&type=chunk) [Interest Rate Sensitivity and Market Risk](index=59&type=section&id=Interest%20Rate%20Sensitivity%20and%20Market%20Risk) The company's balance sheet is asset-sensitive, with net interest income projected to increase by 3.23% in a +100 basis point rate shock scenario Interest Rate Sensitivity Analysis (as of March 31, 2025) | Change in Interest Rates (bps) | % Change in Net Interest Income | % Change in Fair Value of Equity | | :--- | :--- | :--- | | +300 | 9.23% | (1.02%) | | +200 | 6.30% | (0.51%) | | +100 | 3.23% | (0.16%) | | -100 | (2.91%) | (0.05%) | | -200 | (6.10%) | (1.86%) | [Non-GAAP Financial Measures](index=61&type=section&id=Non-GAAP%20Financial%20Measures) The company presents non-GAAP metrics, such as core net income and tangible book value per share, to provide additional insight into performance - **Core net income available to common shareholders** was **$19.3 million ($0.65 per diluted share)** for Q1 2025, compared to $12.8 million ($0.50 per diluted share) for Q1 2024[241](index=241&type=chunk)[243](index=243&type=chunk) Tangible Book Value Per Common Share Reconciliation | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Book value per common share (GAAP) | $25.51 | $24.62 | | **Tangible book value per common share (Non-GAAP)** | **$20.84** | **$19.92** | Tangible Common Equity to Tangible Assets Ratio | Metric | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Common Equity to Total Assets (GAAP) | 9.7% | 9.3% | | **Tangible Common Equity to Tangible Assets (Non-GAAP)** | **8.1%** | **7.6%** | [Quantitative and Qualitative Disclosures About Market Risk](index=64&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risks are interest rate, credit, and liquidity, which are managed through board-approved policies - The company's principal financial market risks are identified as **liquidity risk** and **exposures to interest rate movements**[251](index=251&type=chunk) - Risk is controlled and monitored through established policies, procedures, and oversight from management and the board, with the goal of **optimizing profitability within approved limits**[249](index=249&type=chunk) [Controls and Procedures](index=65&type=section&id=Item%204.%20Controls%20and%20Procedures) Management is actively remediating a previously disclosed material weakness related to a third-party service provider's IT controls - A **material weakness** previously identified in a third-party service provider's IT general controls is **under remediation**[252](index=252&type=chunk) - Remediation steps in Q1 2025 included an independent audit firm's agreed-upon procedures (AUP) testing, which confirmed a **segregation of duty control was appropriately remediated**[253](index=253&type=chunk) - The company plans to **convert to a new core system in Q2 2025**, which is expected to further address the issue[253](index=253&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=66&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings outside the ordinary course of business - The company is party to claims and legal proceedings from time to time in the ordinary course of business, but **none are currently considered material**[257](index=257&type=chunk) [Risk Factors](index=66&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors have occurred since the last annual report - **No material changes** have occurred in the risk factors disclosed in the Annual Report on Form 10-K for December 31, 2024[258](index=258&type=chunk) [Other Items (Items 2, 3, 4, 5)](index=66&type=section&id=Other%20Items) The report confirms no unregistered equity sales, defaults, mine safety issues, or new director/officer trading plans during the quarter - During Q1 2025, **no director or officer** of the Company adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading agreement[263](index=263&type=chunk) [Exhibits](index=67&type=section&id=Item%206.%20Exhibits) The report includes required exhibits such as corporate documents, officer certifications, and Inline XBRL files - Key exhibits filed include **CEO and CFO certifications** pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act[264](index=264&type=chunk)

Core Insights - Business First Bancshares Inc. has appointed Alejandro M. Sanchez to its Board of Directors and the b1BANK Board, effective March 27, 2025 [1][4] - Sanchez brings extensive experience in guiding financial institutions through regulatory environments and strategic transformations, aligning with the company's growth strategy [4][2] - As of March 31, 2025, Business First Bancshares, Inc. has $7.8 billion in assets and $7.1 billion in assets under management through its affiliate [5] Company Overview - Business First Bancshares, Inc. operates through its banking subsidiary b1BANK, providing commercial and personal banking products and services across Louisiana and Texas [5] - b1BANK has received accolades such as the 2024 Mastercard "Innovation Award" and is a multiyear winner of American Banker Magazine's "Best Banks to Work For" [5] Leadership Background - Alejandro M. Sanchez has served as president and CEO of Salva Financial Group and has held various board positions, contributing expertise in governance and risk management [2][3] - Sanchez's previous leadership roles include president and CEO of the Florida Bankers Association from 1998 to 2023 and appointments to the Federal Retirement Thrift Investment Board [3]

Group 1 - The core viewpoint of the article is that Business First Bancshares (NASDAQ: BFST) has shown significant improvements, including a return to growth in net interest margin (NIM), declining deposit costs, and the acquisition of Oakwood, making it a stronger bank [1]. Group 2 - The bank's NIM has returned to growth, indicating improved profitability from its lending activities [1]. - Deposit costs are declining, which suggests better management of funding expenses and potentially higher margins [1]. - The acquisition of Oakwood is a strategic move that enhances the bank's market position and operational capabilities [1].

Financial Data and Key Metrics Changes - The first quarter GAAP net income was $19.2 million, with EPS of $0.65, including several non-core items [20] - Core net income, excluding non-core items, was $19.3 million, also with EPS of $0.65 [20] - Core return on average assets (ROAA) exceeded 1% [7] - The total net interest margin expanded by eight basis points from the previous quarter, reaching 3.64% on a non-GAAP basis [26] Business Line Data and Key Metrics Changes - Total loans held for investment remained flat, down $480,000, with total payoffs and paydowns totaling approximately $500 million [21] - Noninterest revenue was driven by strong swap fees and SBA loan gains, contributing significantly to profitability [10][34] - Core noninterest income for the quarter was $12.4 million, slightly better than expected [34] Market Data and Key Metrics Changes - Total deposits decreased by $53.2 million, primarily due to a reduction in noninterest-bearing deposits [23] - The company generated approximately $380 million from new deposit account relationships despite the overall decline [23] - The weighted average cost of total deposits was 2.66%, down from 2.69% in the previous quarter [28][123] Company Strategy and Development Direction - The company aims to optimize its branch network and has closed the sale of a branch in Kaplan, Louisiana, which included $51 million in deposits [12][24] - The integration of Oakwood Bank is proceeding as expected, with a conversion set for September [10] - The company is focused on maintaining profitability without relying on loan growth, emphasizing net interest margin [14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain economic environment and highlighted a strong pipeline for the second quarter [17] - The company is better capitalized and diversified than in previous years, positioning itself for growth [17] - Management expects loan growth in the low to mid-single digits for the upcoming quarters, despite macroeconomic uncertainties [42] Other Important Information - The company experienced modest negative credit migration, with nonperforming assets increasing to 0.69% [35] - Management noted that the increase in nonperforming assets was driven by two specific commercial and industrial relationships [35] Q&A Session Summary Question: Loan growth expectations for Q2 and the second half of the year - Management expects loan growth in the low to mid-single digits, with a healthy pipeline for the second quarter [42] Question: Core margin progression throughout the year - Management anticipates continued low single-digit margin improvements, influenced by interest rate uncertainties [44] Question: Expectations for deposit growth - Management indicated that the recent branch sale would impact deposit growth, making Q2 potentially muted [66] Question: Credit quality concerns regarding special mention loans - Management clarified that the increase in special mention loans is primarily related to two specific C&I credits, not commercial real estate [68] Question: Thoughts on capital return and potential buybacks - Management is considering capital return options but believes more capital build is needed before executing buybacks [72] Question: Areas of the loan portfolio under closer scrutiny - Management is not significantly downscoping any particular area but is focused on maintaining a diversified portfolio [82] Question: Future M&A activity and market expansion - Management is open to future M&A opportunities but currently prioritizes growth within existing markets in Louisiana and Texas [91][155]

Core Insights - Business First (BFST) reported revenue of $79.21 million for Q1 2025, a 30% year-over-year increase, with an EPS of $0.65 compared to $0.50 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate of $76.58 million by 3.44%, while the EPS surpassed the consensus estimate of $0.61 by 6.56% [1] Financial Performance Metrics - Net Interest Margin was reported at 3.7%, slightly above the average estimate of 3.6% from two analysts [4] - Efficiency Ratio stood at 63.9%, better than the average estimate of 65.9% from two analysts [4] - Total other income (Non-Interest Income) was $13.23 million, exceeding the estimated $11.75 million [4] - Net Interest Income reached $65.98 million, surpassing the average estimate of $64.83 million [4] Stock Performance - Business First shares have returned -8.6% over the past month, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Viewpoint - Business First (BFST) reported quarterly earnings of $0.65 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and showing an increase from $0.50 per share a year ago, indicating a positive earnings surprise of 6.56% [1] Financial Performance - The company achieved revenues of $79.21 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.44%, and up from $60.92 million in the same quarter last year [2] - Over the last four quarters, Business First has consistently exceeded consensus EPS estimates and revenue estimates [2] Stock Performance - Business First shares have declined approximately 9.7% since the beginning of the year, compared to a decline of 8.6% in the S&P 500 [3] - The stock's immediate price movement will largely depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.66 on revenues of $78.64 million, and for the current fiscal year, it is $2.78 on revenues of $318.06 million [7] - The estimate revisions trend for Business First is currently favorable, resulting in a Zacks Rank 2 (Buy), suggesting the stock is expected to outperform the market in the near future [6] Industry Context - The Banks - Northeast industry, to which Business First belongs, is currently ranked in the top 22% of over 250 Zacks industries, indicating a strong industry performance potential [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]