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Business First Bancshares, Inc. Announces Third Quarter 2025 Earnings Release Date and Conference Call
Globenewswire· 2025-10-01 21:30
Company Overview - Business First Bancshares, Inc. (Nasdaq: BFST) is the parent company of b1BANK, which operates in Louisiana and Texas, providing commercial and personal banking products and services [4] - As of June 30, 2025, the company had $7.9 billion in assets and $5.4 billion in assets under management through its affiliate Smith Shellnut Wilson, LLC (SSW) [4] - 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" [4] Upcoming Financial Results - The company is scheduled to release its financial results for the third quarter ended September 30, 2025, after market close on October 23, 2025 [1] - Executive management will host a conference call and webcast to discuss the results on the same day at 4:00 p.m. CST [1] Conference Call Details - Interested parties can attend the call by dialing toll-free 1-800-715-9871 (North America only) with conference ID 8427939 [2] - The live webcast can be viewed at the provided link, with a corresponding slide presentation available on the b1BANK website [2]
Business First Bank(BFST) - 2025 Q2 - Quarterly Report
2025-08-05 15:40
[General Information](index=1&type=section&id=General%20Information) [Registrant Information](index=1&type=section&id=Registrant%20Information) BUSINESS FIRST BANCSHARES, INC. is an accelerated filer, registered on the NASDAQ Global Select Market under the symbol BFST, having filed all required reports and interactive data files electronically - Registrant is an **accelerated filer**[4](index=4&type=chunk) - Common Stock, par value **$1.00 per share**, is traded on the **NASDAQ Global Select Market** under the symbol **BFST**[3](index=3&type=chunk) - As of July 31, 2025, the issuer has **29,602,970 shares** of common stock outstanding[4](index=4&type=chunk) [PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Business First Bancshares, Inc. and its subsidiaries, including balance sheets, statements of income, comprehensive income (loss), changes in shareholders' equity, and cash flows for the periods ended June 30, 2025, and December 31, 2024 (for balance sheet) or June 30, 2024 (for income and cash flow statements) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Consolidated Balance Sheet Highlights (Dollars in thousands) | Metric | June 30, 2025 (Unaudited) | December 31, 2024 | | :-------------------------------- | :-------------------------- | :------------------ | | **ASSETS** | | | | Total Assets | $7,948,294 | $7,857,090 | | Cash and Due from Banks | $495,757 | $319,098 | | Loans and Lease Receivable, Net | $5,989,154 | $5,926,559 | | Securities Available for Sale | $926,450 | $893,549 | | **LIABILITIES** | | | | Total Liabilities | $7,099,854 | $7,057,624 | | Total Deposits | $6,419,651 | $6,511,331 | | Federal Home Loan Bank Borrowings | $492,946 | $355,875 | | **SHAREHOLDERS' EQUITY** | | | | Total Shareholders' Equity | $848,440 | $799,466 | [Unaudited Consolidated Statements of Income](index=5&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Income) Consolidated Statements of Income Highlights (Dollars in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Interest Income | $114,850 | $99,870 | $228,543 | $195,881 | | Total Interest Expense | $47,808 | $45,861 | $95,518 | $90,341 | | Net Interest Income | $67,042 | $54,009 | $133,025 | $105,540 | | Provision for Credit Losses | $2,225 | $1,310 | $5,037 | $2,496 | | Total Other Income | $14,415 | $12,176 | $27,641 | $21,562 | | Total Other Expenses | $51,206 | $43,110 | $101,784 | $85,632 | | Net Income | $22,103 | $17,206 | $42,646 | $30,776 | | Net Income Available to Common Shareholders | $20,753 | $15,856 | $39,946 | $28,076 | | Basic EPS | $0.70 | $0.63 | $1.36 | $1.11 | | Diluted EPS | $0.70 | $0.62 | $1.35 | $1.10 | [Unaudited Consolidated Statements of Comprehensive Income (Loss)](index=6&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Consolidated Comprehensive Income (Loss) Highlights (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Consolidated Net Income | $22,103 | $17,206 | $42,646 | $30,776 | | Other Comprehensive Income (Loss) | $5,076 | $3,850 | $15,230 | $(1,199) | | Consolidated Comprehensive Income | $27,179 | $21,056 | $57,876 | $29,577 | [Unaudited Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' Equity Changes (Dollars in thousands) | Metric | Balances at March 31, 2025 | Balances at June 30, 2025 | | :-------------------------------- | :------------------------- | :------------------------ | | Preferred Stock | $71,930 | $71,930 | | Common Stock | $29,572 | $29,603 | | Additional Paid-In Capital | $501,609 | $502,046 | | Retained Earnings | $276,045 | $292,629 | | Accumulated Other Comprehensive Income (Loss) | $(52,844) | $(47,768) | | Total Shareholders' Equity | $826,312 | $848,440 | Shareholders' Equity Changes (Six Months Ended June 30, 2025) (Dollars in thousands) | Metric | Balances at December 31, 2024 | Balances at June 30, 2025 | | :-------------------------------- | :-------------------------- | :------------------------ | | Preferred Stock | $71,930 | $71,930 | | Common Stock | $29,552 | $29,603 | | Additional Paid-In Capital | $500,024 | $502,046 | | Retained Earnings | $260,958 | $292,629 | | Accumulated Other Comprehensive Income (Loss) | $(62,998) | $(47,768) | | Total Shareholders' Equity | $799,466 | $848,440 | [Unaudited Consolidated Statements of Cash Flows](index=9&type=section&id=Unaudited%20Consolidated%20Statements%20of%20Cash%20Flows) Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30) (Dollars in thousands) | Cash Flow Activity | 2025 | 2024 | | :----------------------------------- | :------- | :------- | | Net Cash Provided by Operating Activities | $42,747 | $22,667 | | Net Cash Provided by (Used in) Investing Activities | $54,706 | $(139,285) | | Net Cash Provided by Financing Activities | $79,206 | $98,559 | | Net Increase (Decrease) in Cash and Due From Banks | $176,659 | $(18,059) | | Cash and Due From Banks at End of Period | $495,757 | $208,051 | [Notes to Unaudited Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited consolidated financial statements, covering the basis of presentation, reclassifications, mergers and acquisitions, earnings per common share, securities, loans and allowance for loan losses, long-term debt, FHLB borrowings, other income and expenses, leases, commitments and contingencies, fair value of financial instruments, and subsequent events [Note 1– Basis of Presentation](index=11&type=section&id=Note%201%E2%80%93%20Basis%20of%20Presentation) The unaudited consolidated financial statements include Business First Bancshares, Inc. and its subsidiaries, prepared in accordance with SEC rules and GAAP, with management making estimates and assumptions for acquired loans, allowance for credit losses, purchase accounting adjustments, goodwill, fair value of financial instruments, investment securities, and income taxes - The Company's critical accounting estimates include acquired loans, allowance for credit losses, purchase accounting adjustments, goodwill, fair value of financial instruments, investment securities, and income taxes[22](index=22&type=chunk) - ASU No. 2023-09, 'Income Taxes (Topic 740): Improvements to Income Tax Disclosures,' will be effective for the Company starting December 31, 2025, and is not expected to have a significant impact on financial statements[23](index=23&type=chunk) [Note 2– Reclassifications](index=11&type=section&id=Note%202%E2%80%93%20Reclassifications) Certain reclassifications were made to conform to 2025 reporting, which had no material effect on previously reported shareholders' equity or net income - Reclassifications made to conform to 2025 reporting had no material effect on previously reported shareholders' equity or net income[24](index=24&type=chunk) [Note 3– Mergers and Acquisitions](index=12&type=section&id=Note%203%E2%80%93%20Mergers%20and%20Acquisitions) The Company completed the acquisition of Waterstone LSP, LLP on January 31, 2024, for $3.3 million in cash, expanding SBA lending services, and merged with Oakwood Bancshares, Inc. on October 1, 2024, issuing 3,973,134 shares of common stock, acquiring $863.6 million in total assets, $700.2 million in loans, and $741.3 million in deposits, resulting in $30.2 million in goodwill - Acquired Waterstone LSP, LLP on January 31, 2024, for **$3.3 million cash**, enhancing SBA lending services[26](index=26&type=chunk) - Merged with Oakwood Bancshares, Inc. on October 1, 2024, issuing **3,973,134 common shares**[27](index=27&type=chunk) Oakwood Acquisition Financials (as of September 30, 2024) (Dollars in millions) | Metric | Amount | | :---------------- | :----- | | Total Assets | $863.6 | | Total Loans | $700.2 | | Total Deposits | $741.3 | Oakwood Purchase Price Allocation (Dollars in thousands) | Metric | Amount | | :-------------------------- | :------- | | Total Purchase Price | $103,819 | | Net Assets Acquired | $73,654 | | Goodwill Resulting from Merger | $30,165 | [Note 4– Earnings per Common Share](index=14&type=section&id=Note%204%E2%80%93%20Earnings%20per%20Common%20Share) This note details the calculation of basic and diluted earnings per common share (EPS), which reflects income available to common shareholders divided by the weighted average common shares outstanding, with diluted EPS accounting for potential dilution from convertible securities Earnings Per Common Share (Dollars in thousands, except per share data) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income Available to Common Shares | $20,753 | $15,856 | $39,946 | $28,076 | | Weighted Average Common Shares Outstanding | 29,517,495 | 25,265,495 | 29,354,228 | 25,196,079 | | Basic Earnings Per Common Share | $0.70 | $0.63 | $1.36 | $1.11 | | Diluted Earnings Per Common Share | $0.70 | $0.62 | $1.35 | $1.10 | [Note 5– Securities](index=15&type=section&id=Note%205%E2%80%93%20Securities) The Company's securities portfolio consists of available-for-sale securities, with amortized cost of $987.0 million and fair value of $926.5 million as of June 30, 2025, experiencing gross unrealized losses of $63.0 million primarily due to changes in market interest rates, not credit quality, with no allowance for credit losses recognized Securities Available for Sale (Dollars in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :-------------- | :---------------- | | Amortized Cost | $987,013 | $973,423 | | Gross Unrealized Gains | $2,428 | $913 | | Gross Unrealized Losses | $62,991 | $80,787 | | Fair Value | $926,450 | $893,549 | - Unrealized losses are considered non-credit related, as management does not believe any securities are impaired due to credit quality and does not intend to sell them before recovery of amortized cost[47](index=47&type=chunk) Securities Available for Sale by Contractual Maturity (June 30, 2025) (Dollars in thousands) | Maturity | Amortized Cost | Fair Value | | :-------------------- | :------------- | :--------- | | Less Than One Year | $35,492 | $34,979 | | One to Five Years | $191,404 | $181,288 | | Over Five to Ten Years | $351,018 | $331,006 | | Over Ten Years | $409,099 | $379,177 | | Total | $987,013 | $926,450 | [Note 6– Loans and the Allowance for Loan Losses](index=17&type=section&id=Note%206%E2%80%93%20Loans%20and%20the%20Allowance%20for%20Loan%20Losses) The loan portfolio, net of allowance for loan losses, increased to $5.99 billion at June 30, 2025, from $5.93 billion at December 31, 2024, with the allowance for loan losses rising to $58.5 million from $54.8 million, and nonaccrual loans significantly increasing to $56.4 million from $24.1 million Loans Receivable, Net (Dollars in thousands) | Loan Type | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Real Estate Loans: Commercial | $2,533,761 | $2,483,223 | | Real Estate Loans: Construction | $600,292 | $670,502 | | Real Estate Loans: Residential | $879,891 | $884,533 | | Commercial | $1,960,974 | $1,868,675 | | Consumer and Other | $72,732 | $74,466 | | Total Loans Held for Investment | $6,047,650 | $5,981,399 | | Less: Allowance for Loan Losses | $(58,496) | $(54,840) | | Net Loans | $5,989,154 | $5,926,559 | Allowance for Loan Losses and Reserve for Unfunded Loan Commitments (Dollars in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Allowance for Loan Losses: Ending Balance | $58,496 | $54,840 | | Reserve for Unfunded Loan Commitments: Ending Balance | $3,270 | $3,688 | | Total Allowance for Credit Losses | $61,766 | $58,528 | Nonaccrual Loans by Segment (Dollars in thousands) | Loan Segment | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Real Estate Loans: Commercial | $22,451 | $3,621 | | Real Estate Loans: Construction | $5,447 | $5,251 | | Real Estate Loans: Residential | $7,510 | $7,078 | | Commercial | $20,767 | $8,039 | | Consumer and Other | $202 | $158 | | Total Nonaccrual Loans | $56,377 | $24,147 | [Note 7– Long Term Debt](index=26&type=section&id=Note%207%E2%80%93%20Long%20Term%20Debt) During the first six months of 2025, the Company redeemed $7.0 million of its subordinated debt maturing in 2031, resulting in a $630,000 gain on extinguishment - Redeemed **$7.0 million** of subordinated debt (maturing 2031) during the six months ended June 30, 2025[80](index=80&type=chunk) - Recognized a **$630,000 gain** on the extinguishment of debt[80](index=80&type=chunk) [Note 8– Federal Home Loan Bank ("FHLB") Borrowings](index=26&type=section&id=Note%208%E2%80%93%20Federal%20Home%20Loan%20Bank%20(%22FHLB%22)%20Borrowings) FHLB borrowings increased to $492.9 million at June 30, 2025, from $355.9 million at December 31, 2024, consisting of various fixed-rate loans with maturities ranging from July 2025 to October 2033, with an additional $1.5 billion remaining on its FHLB line availability FHLB Borrowings (Dollars in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Outstanding Advances | $492,946 | $355,875 | | FHLB Line Availability Remaining | $1,500,000 | $1,300,000 | - FHLB advances consist of various fixed-rate loans with interest rates ranging from **0.52% to 4.89%** and maturities up to **October 2033**[81](index=81&type=chunk)[82](index=82&type=chunk)[83](index=83&type=chunk)[84](index=84&type=chunk)[85](index=85&type=chunk)[86](index=86&type=chunk)[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) [Note 9– Other Income and Other Expense](index=28&type=section&id=Note%209%E2%80%93%20Other%20Income%20and%20Other%20Expense) Total other income increased significantly for both the three and six months ended June 30, 2025, primarily driven by a $3.36 million gain on the sale of a branch and increased swap fee income, while total other expenses also rose, mainly due to higher salaries and employee benefits and data processing fees, largely attributable to the Oakwood acquisition and core conversion Other Income (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Other Income | $14,415 | $12,176 | $27,641 | $21,562 | | Gain on Sale of Branch | $3,360 | $- | $3,360 | $- | | Swap Fee Income | $808 | $285 | $1,547 | $514 | | Gain on Extinguishment of Debt | $- | $- | $630 | $- | Other Expenses (Dollars in thousands) | Metric | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :----------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Other Expenses | $51,206 | $43,110 | $101,784 | $85,632 | | Salaries and Employee Benefits | $28,317 | $25,523 | $57,814 | $50,939 | | Data Processing Fees | $5,321 | $2,641 | $8,557 | $5,220 | | Occupancy of Bank Premises | $3,119 | $2,634 | $6,520 | $5,148 | [Note 10– Leases](index=28&type=section&id=Note%2010%E2%80%93%20Leases) The Bank leases branch offices under non-cancelable operating leases with terms up to ten years, incurring $4.2 million in rental expense for the six months ended June 30, 2025, with future minimum lease payments totaling $32.3 million, a weighted average lease term of 6.2 years, and a discount rate of 3.82% - Rental expense for operating leases was **$4.2 million** for the six months ended June 30, 2025, up from $3.0 million in 2024[94](index=94&type=chunk) Future Minimum Lease Payments (Dollars in thousands) | Period | Amount | | :----------------------------------- | :------- | | July 1, 2025 through December 31, 2025 | $3,013 | | January 1, 2026 through December 31, 2026 | $5,735 | | January 1, 2027 through December 31, 2027 | $5,491 | | January 1, 2028 through December 31, 2028 | $4,944 | | January 1, 2029 through December 31, 2029 | $4,153 | | January 1, 2030 and Thereafter | $8,955 | | Total Future Minimum Lease Payments | $32,291 | | Less Imputed Interest | $(3,727) | | Present Value of Lease Liabilities | $28,564 | [Note 11– Commitments and Contingencies](index=29&type=section&id=Note%2011%E2%80%93%20Commitments%20and%20Contingencies) The Bank has off-balance sheet commitments including $1.5 billion in commitments to extend credit and $51.0 million in standby and commercial letters of credit as of June 30, 2025, maintaining a $3.3 million reserve for unfunded loan commitments, and management believes legal proceedings will not materially affect financial statements Off-Balance Sheet Commitments (Dollars in millions) | Commitment Type | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Commitments to Extend Credit | $1,500 | $1,400 | | Standby and Commercial Letters of Credit | $51.0 | $50.0 | | Reserve for Unfunded Loan Commitments | $3.3 | $3.7 | [Note 12– Fair Value of Financial Instruments](index=29&type=section&id=Note%2012%E2%80%93%20Fair%20Value%20of%20Financial%20Instruments) The Company categorizes financial assets and liabilities measured at fair value into a three-level hierarchy based on input observability, with total assets measured at fair value on a recurring basis at $927.1 million (including $36.0 million as Level 3) and individually evaluated loans and other nonperforming assets measured on a nonrecurring basis totaling $76.1 million (all Level 3) as of June 30, 2025 - Fair value hierarchy: **Level 1** (quoted prices in active markets), **Level 2** (observable inputs), **Level 3** (unobservable inputs)[99](index=99&type=chunk)[100](index=100&type=chunk) Assets Measured at Fair Value on a Recurring Basis (June 30, 2025) (Dollars in thousands) | Asset Type | Fair Value | Level 1 | Level 2 | Level 3 | | :-------------------------- | :--------- | :------ | :------ | :------ | | U.S. Treasury Securities | $16,994 | $- | $16,994 | $- | | Corporate Securities | $42,509 | $- | $29,825 | $12,684 | | Mortgage-Backed Securities | $587,116 | $- | $587,116 | $- | | Municipal Securities | $270,082 | $- | $246,788 | $23,294 | | Total | $927,127 | $- | $891,149 | $35,978 | Assets Measured at Fair Value on a Nonrecurring Basis (Dollars in thousands) | Asset Type | June 30, 2025 Fair Value | December 31, 2024 Fair Value | | :-------------------------- | :----------------------- | :----------------------- | | Individually Evaluated Loans | $74,649 | $62,138 | | Other Nonperforming Assets | $1,473 | $5,529 | | Total | $76,122 | $67,667 | [Note 13– Subsequent Events](index=34&type=section&id=Note%2013%E2%80%93%20Subsequent%20Events) On July 7, 2025, the Company entered into a definitive agreement to acquire Progressive Bancorp, Inc. and its subsidiary, Progressive Bank, which had approximately $752.2 million in total assets, $673.0 million in deposits, and $582.9 million in loans as of March 31, 2025 - Agreement to acquire Progressive Bancorp, Inc. and Progressive Bank was signed on **July 7, 2025**[120](index=120&type=chunk) Progressive Bancorp, Inc. Financials (as of March 31, 2025) (Dollars in millions) | Metric | Amount | | :---------------- | :----- | | Total Assets | $752.2 | | Total Deposits | $673.0 | | Total Loans | $582.9 | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the Company's financial condition and results of operations, highlighting significant changes, key performance indicators, and future outlook, including forward-looking statements, business overview, recent developments, and detailed analysis of financial performance and condition, including non-GAAP measures [Overview](index=37&type=section&id=Overview) Business First Bancshares, Inc. is a financial holding company headquartered in Baton Rouge, Louisiana, operating through its subsidiary b1BANK, providing financial services to small-to-midsized businesses and professionals across Louisiana and Texas, reporting total assets of $7.9 billion, total loans of $6.0 billion, total deposits of $6.4 billion, and total shareholders' equity of $848.4 million as of June 30, 2025 - The Company operates as a financial holding company through **b1BANK**, serving small-to-midsized businesses and professionals in Louisiana and Texas[129](index=129&type=chunk) Key Financial Metrics (as of June 30, 2025) (Dollars in millions) | Metric | Amount | | :----------------------- | :------- | | Total Assets | $7,900 | | Total Loans | $6,000 | | Total Deposits | $6,400 | | Total Shareholders' Equity | $848.4 | [Other Developments](index=38&type=section&id=Other%20Developments) Recent developments include opening new credit lines with the Federal Reserve, the acquisition of Waterstone LSP, LLC in January 2024, the merger with Oakwood Bancshares, Inc. in October 2024, the sale of the Kaplan banking center in April 2025, and an agreement to acquire Progressive Bancorp, Inc. in July 2025 - Opened two new credit lines totaling **$1.1 billion** with the Federal Reserve discount window as of June 30, 2025[132](index=132&type=chunk) - Acquired Waterstone LSP, LLC on January 31, 2024, for **$3.3 million** in cash[133](index=133&type=chunk) - Merged with Oakwood Bancshares, Inc. on October 1, 2024, issuing **3,973,134 common shares**[134](index=134&type=chunk) - Sold Kaplan banking center on April 4, 2025, for an **8.00% deposit premium**, resulting in a **$3.4 million gain**[135](index=135&type=chunk) - Entered definitive agreement to acquire Progressive Bancorp, Inc. on **July 7, 2025**[136](index=136&type=chunk) [Financial Highlights](index=38&type=section&id=Financial%20Highlights) For the six months ended June 30, 2025, total assets increased by 1.2% to $7.9 billion, total loans held for investment increased by 1.1% to $6.0 billion, total deposits decreased by 1.4% to $6.4 billion, net income available to common shareholders rose by 42.3% to $39.9 million, and net interest income increased by 26.0% to $133.0 million, largely due to the Oakwood acquisition Financial Highlights (Six Months Ended June 30, 2025 vs. December 31, 2024) (Dollars in millions) | Metric | June 30, 2025 | December 31, 2024 | Change (%) | | :----------------------------------- | :------------ | :---------------- | :--------- | | Total Assets | $7,900 | $7,800 | 1.2% | | Total Loans Held for Investment | $6,000 | $6,000 | 1.1% | | Total Deposits | $6,400 | $6,500 | (1.4%) | Financial Highlights (Six Months Ended June 30, 2025 vs. 2024) (Dollars in millions) | Metric | 2025 | 2024 | Change (%) | | :----------------------------------- | :----- | :----- | :--------- | | Net Income Available to Common Shareholders | $39.9 | $28.1 | 42.3% | | Net Interest Income | $133.0 | $105.5 | 26.0% | | Basic EPS | $1.36 | $1.11 | 22.5% | | Diluted EPS | $1.35 | $1.10 | 22.7% | | Return on Average Assets | 1.04% | 0.84% | 23.8% | | Return on Average Common Equity | 10.68% | 9.73% | 9.8% | - Allowance for credit losses increased to **1.02%** of total loans held for investment (from 0.98% at Dec 31, 2024)[141](index=141&type=chunk) - Ratio of nonperforming loans to total loans held for investment increased to **0.97%** (from 0.42% at Dec 31, 2024)[141](index=141&type=chunk) [Results of Operations](index=39&type=section&id=Results%20of%20Operations) Net income available to common shareholders increased to $20.8 million ($0.70 EPS) for Q2 2025 and $39.9 million ($1.35 diluted EPS) for H1 2025, driven by higher net interest income and other income, partially offset by increased provision for credit losses and noninterest expenses, with net interest margin improving to 3.68% for both periods while the overall cost of funds decreased Performance Summary (Dollars in millions, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Net Income Available to Common Shareholders | $20.8 | $15.9 | $39.9 | $28.1 | | Basic EPS | $0.70 | $0.63 | $1.36 | $1.11 | | Diluted EPS | $0.70 | $0.62 | $1.35 | $1.10 | | Return on Average Assets (annualized) | 1.07% | 0.95% | 1.04% | 0.84% | | Return on Average Equity (annualized) | 10.87% | 10.94% | 10.68% | 9.73% | Net Interest Income and Margin | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------- | :------ | :------ | :------ | :------ | | Net Interest Income | $67.0M | $54.0M | $133.0M | $105.5M | | Net Interest Margin | 3.68% | 3.45% | 3.68% | 3.39% | | Net Interest Spread | 2.88% | 2.47% | 2.90% | 2.42% | | Overall Cost of Funds | 2.78% | 3.07% | 2.80% | 3.03% | - Provision for credit losses increased to **$2.2 million** for Q2 2025 (from $1.3 million in Q2 2024) and **$5.0 million** for H1 2025 (from $2.5 million in H1 2024), due to macroeconomic forecast deterioration and increased nonaccrual/past due loans[156](index=156&type=chunk) Noninterest Income (Dollars in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Total Noninterest Income | $14,415 | $12,176 | $27,641 | $21,562 | | Gain on Sale of Branch | $3,360 | $- | $3,360 | $- | | Gain on Extinguishment of Debt | $- | $- | $630 | $- | | Swap Fee Income | $808 | $285 | $1,547 | $514 | Noninterest Expense (Dollars in thousands) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Total Noninterest Expense | $51,206 | $43,110 | $101,784 | $85,632 | | Salaries and Employee Benefits | $28,317 | $25,523 | $57,814 | $50,939 | | Data Processing | $5,321 | $2,641 | $8,557 | $5,220 | | Occupancy of Bank Premises | $3,119 | $2,634 | $6,520 | $5,148 | Income Tax Expense | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :------------------- | :------ | :------ | :------ | :------ | | Income Tax Expense | $5,923 | $4,559 | $11,199 | $8,198 | | Effective Tax Rate | 21.1% | 21.0% | 20.8% | 21.0% | [Financial Condition](index=47&type=section&id=Financial%20Condition) Total assets increased by $91.2 million to $7.9 billion at June 30, 2025, driven by growth in the mortgage-backed investment portfolio and loan portfolio, with total loans held for investment increasing by 1.1% to $6.0 billion, commercial loans showing strong growth, nonperforming assets significantly increasing to $60.3 million, total deposits decreasing by 1.4% to $6.4 billion, and the allowance for credit losses increasing to $61.8 million, representing 1.02% of total loans - Total assets increased by **$91.2 million (1.2%)** from December 31, 2024, to June 30, 2025, primarily due to increases in mortgage-backed investment portfolio, unrealized gains, and the loan portfolio[168](index=168&type=chunk) Loan Portfolio Composition (Dollars in thousands) | Loan Type | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Real Estate Loans: Commercial | $2,533,761 | $2,483,223 | | Real Estate Loans: Construction | $600,292 | $670,502 | | Real Estate Loans: Residential | $879,891 | $884,533 | | Commercial | $1,960,974 | $1,868,675 | | Consumer and Other | $72,732 | $74,466 | | Total Loans Held for Investment | $6,047,650 | $5,981,399 | - Commercial loans increased by **$92.3 million (4.9%)** to **$2.0 billion** as of June 30, 2025[180](index=180&type=chunk) Nonperforming Assets (Dollars in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :-------------------------- | :-------------- | :---------------- | | Nonaccrual Loans | $56,377 | $24,147 | | Accruing Loans 90+ Days Past Due | $2,467 | $860 | | Total Nonperforming Loans | $58,844 | $25,007 | | Total Other Real Estate Owned | $1,473 | $5,529 | | Total Nonperforming Assets | $60,317 | $30,536 | | Ratio of Nonperforming Loans to Total Loans | 0.97% | 0.42% | | Ratio of Nonperforming Assets to Total Assets | 0.76% | 0.39% | Allowance for Credit Losses (Dollars in thousands) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Allowance for Credit Losses at End of Period | $61,766 | $58,528 | | Ratio of Allowance for Credit Losses to Loans | 1.02% | 0.98% | | Ratio of Allowance for Credit Losses to Nonaccrual Loans | 109.56% | 242.38% | - Securities portfolio increased by **$32.9 million (3.7%)** to **$926.5 million** at June 30, 2025, primarily due to mortgage-backed securities purchases and net unrealized gains[204](index=204&type=chunk) - Total deposits decreased by **$91.7 million (1.4%)** to **$6.4 billion** at June 30, 2025, with uninsured deposits at **$2.7 billion (42.1%)**, down from $2.8 billion (43.4%) at December 31, 2024[213](index=213&type=chunk) Average Deposits and Rates (Six Months Ended June 30, 2025 vs. Year Ended December 31, 2024) (Dollars in thousands) | Deposit Type | H1 2025 Average Balance | H1 2025 Average Rate | FY 2024 Average Balance | FY 2024 Average Rate | | :----------------------------------- | :---------------------- | :------------------- | :---------------------- | :------------------- | | Interest-bearing demand accounts | $776,029 | 2.54% | $611,561 | 3.36% | | Limited access money market accounts and savings | $2,569,752 | 3.33% | $2,146,610 | 2.79% | | Certificates and other time deposits > $250k | $367,336 | 3.96% | $628,929 | 4.52% | | Total Interest-bearing Deposits | $5,085,431 | 3.33% | $4,427,233 | 3.73% | | Noninterest-bearing Demand Accounts | $1,268,659 | -% | $1,285,445 | -% | | Total Deposits | $6,354,090 | 2.67% | $5,712,678 | 2.89% | [Interest Rate Sensitivity and Market Risk](index=64&type=section&id=Interest%20Rate%20Sensitivity%20and%20Market%20Risk) The Company manages interest rate risk through its asset and liability management policy and monitoring system, with simulation models indicating that a +300 basis point change in interest rates would increase net interest income by 7.20% but decrease fair value of equity by 3.95% over a 12-month horizon as of June 30, 2025 - Primary market risk is sensitivity to interest rate movements, managed by the asset-liability committee (ALCO) of b1BANK[240](index=240&type=chunk)[243](index=243&type=chunk) Simulated Change in Net Interest Income and Fair Value of Equity (12-month horizon) | Change in Interest Rates (Basis Points) | June 30, 2025: % Change in Net Interest Income | June 30, 2025: % Change in Fair Value of Equity | December 31, 2024: % Change in Net Interest Income | December 31, 2024: % Change in Fair Value of Equity | | :-------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | :--------------------------------------------- | | +300 | 7.20% | (3.95%) | 8.10% | (0.70%) | | +200 | 4.96% | (2.50%) | 5.60% | (0.30%) | | +100 | 2.55% | (1.14%) | 2.90% | -% | | Base | -% | -% | -% | -% | | -100 | (2.41%) | 1.10% | (2.30%) | 0.30% | | -200 | (4.75%) | 1.32% | (5.20%) | (1.30%) | [Impact of Inflation](index=65&type=section&id=Impact%20of%20Inflation) The Company's financial statements are prepared using historical dollars, without adjusting for inflation, as interest rates have a more significant impact on performance than general inflation levels, though operating expenses do reflect general inflation - Interest rates have a more significant impact on the Company's performance than general inflation, as most assets and liabilities are monetary[247](index=247&type=chunk) - Operating expenses do reflect general levels of inflation[248](index=248&type=chunk) [Non-GAAP Financial Measures](index=66&type=section&id=Non-GAAP%20Financial%20Measures) The Company uses non-GAAP financial measures like 'core net income,' 'tangible book value per common share,' and 'tangible common equity to tangible assets' to supplement GAAP measures, with adjustments typically excluding acquisition-related expenses, gains/losses on asset sales, and goodwill/intangible assets to provide a clearer view of core business performance Core Net Income Available to Common Shareholders (Dollars in thousands, except per share data) | Metric | Q2 2025 | Q2 2024 | H1 2025 | H1 2024 | | :----------------------------------- | :------ | :------ | :------ | :------ | | Net Income Available to Common Shareholders | $20,753 | $15,856 | $39,946 | $28,076 | | Core Net Income Available to Common Shareholders | $19,525 | $16,273 | $38,806 | $29,081 | | Diluted EPS | $0.70 | $0.62 | $1.35 | $1.10 | | Core Diluted EPS | $0.66 | $0.64 | $1.31 | $1.14 | Tangible Book Value Per Common Share (Dollars in thousands, except per share data) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Total Common Shareholders' Equity | $776,510 | $727,536 | | Goodwill | $(121,146) | $(121,572) | | Core Deposit and Customer Intangibles | $(15,775) | $(17,252) | | Total Tangible Common Equity | $639,589 | $588,712 | | Common Shares Outstanding | 29,602,970 | 29,552,358 | | Book Value Per Common Share | $26.23 | $24.62 | | Tangible Book Value Per Common Share | $21.61 | $19.92 | Tangible Common Equity to Tangible Assets (Dollars in thousands, except per share data) | Metric | June 30, 2025 | December 31, 2024 | | :----------------------------------- | :-------------- | :---------------- | | Total Tangible Common Equity | $639,589 | $588,712 | | Total Assets | $7,948,294 | $7,857,090 | | Goodwill | $(121,146) | $(121,572) | | Core Deposit and Customer Intangibles | $(15,775) | $(17,252) | | Total Tangible Assets | $7,811,373 | $7,718,266 | | Common Equity to Total Assets | 9.8% | 9.3% | | Tangible Common Equity to Tangible Assets | 8.2% | 7.6% | [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=69&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The Company is exposed to interest rate, credit, and liquidity risks, which are managed through policies, procedures, and oversight, with interest rate risk controlled by asset-liability management, liquidity risk managed via the asset-liability management policy and contingency funding plan, and credit risk managed through credit policy and allowance for credit losses evaluation - Primary market risks include **interest rate, credit, and liquidity risk**[263](index=263&type=chunk) - Interest rate risk is managed through the **asset-liability management policy**[263](index=263&type=chunk) - Liquidity risk is managed through the **asset-liability management policy** and **contingency funding plan**[264](index=264&type=chunk) - Credit risk, primarily from the loan portfolio, is managed through **credit policy** and evaluation of the **allowance for credit losses**[265](index=265&type=chunk) [Item 4. Controls and Procedures](index=70&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, with the participation of the principal executive and financial officers, concluded that disclosure controls and procedures were effective as of June 30, 2025, having remediated a previously reported material weakness in IT general controls related to change management segregation of duties during the first and second quarters of 2025, with no other material changes to internal controls over financial reporting [Evaluation of Disclosure Controls and Procedures](index=70&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) The principal executive officer and principal financial officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2025, providing reasonable assurance that required information is recorded, processed, summarized, and reported timely - Disclosure controls and procedures were **effective** as of June 30, 2025[266](index=266&type=chunk) [Remediation of Material Weakness](index=70&type=section&id=Remediation%20of%20Material%20Weakness) A material weakness in IT general controls related to change management segregation of duties, previously reported for December 31, 2024, was effectively remediated by June 30, 2025, through independent audit testing, Company monitoring, and conversion to a new core processing system - Material weakness in IT general controls around change management segregation of duties was **remediated by June 30, 2025**[267](index=267&type=chunk) - Remediation steps included independent audit testing, Company monitoring of the third-party service provider, and conversion to a new core processing system[267](index=267&type=chunk) [Changes in Internal Controls over Financial Reporting](index=70&type=section&id=Changes%20in%20Internal%20Controls%20over%20Financial%20Reporting) Except for the remediation of the material weakness discussed, there were no other material changes in internal control over financial reporting during the period covered by this report - No other material changes in internal control over financial reporting, apart from the remediation of the material weakness[268](index=268&type=chunk) [PART II - OTHER INFORMATION](index=71&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=71&type=section&id=Item%201.%20Legal%20Proceedings) The Company is involved in routine legal proceedings in the ordinary course of business, but management believes their disposition will not have a material adverse effect on the financial statements - The Company is not currently involved in any pending legal proceedings other than routine, nonmaterial proceedings[270](index=270&type=chunk) [Item 1A. Risk Factors](index=71&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors were disclosed in the Annual Report on Form 10-K for December 31, 2024, other than those related to the proposed acquisition of Progressive Bancorp, Inc - No material changes in risk factors from the Annual Report on Form 10-K for December 31, 2024, except for risks related to the proposed acquisition of Progressive Bancorp, Inc[271](index=271&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=71&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable to the Company for the reporting period - Not applicable[272](index=272&type=chunk) [Item 3. Defaults Upon Senior Securities](index=71&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the Company for the reporting period - Not applicable[272](index=272&type=chunk) [Item 4. Mine Safety Disclosures](index=71&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company for the reporting period - Not applicable[273](index=273&type=chunk) [Item 5. Other Information](index=71&type=section&id=Item%205.%20Other%20Information) During the three months ended June 30, 2025, no director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading agreement - No director or officer adopted or terminated a Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading agreement during the three months ended June 30, 2025[276](index=276&type=chunk) [Item 6. Exhibits](index=71&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including agreements, articles of incorporation, bylaws, specimen stock certificates, voting agreements, director support agreements, certifications, and Inline XBRL documents - Includes Agreement and Plan of Reorganization with Progressive Bancorp, Inc. (Exhibit 2.1)[274](index=274&type=chunk) - Includes Certifications of Principal Executive Officer and Principal Financial Officer (Exhibits 31.1, 31.2, 32.1)[277](index=277&type=chunk) - Includes Inline XBRL Instance Document and Taxonomy Extension Documents (Exhibits 101.INS, 101.SCH, 101.CAL, 101.DEF, 101.LAB, 101.PRE)[277](index=277&type=chunk) [Signatures](index=73&type=section&id=Signatures) The report is signed by David R. Melville, III, Chairman, President and Chief Executive Officer, and Gregory Robertson, Chief Financial Officer, on August 5, 2025, pursuant to the Securities Exchange Act of 1934 - Signed by **David R. Melville, III** (Chairman, President, CEO) and **Gregory Robertson** (CFO) on **August 5, 2025**[281](index=281&type=chunk)
Business First Bank(BFST) - 2025 Q2 - Earnings Call Transcript
2025-07-28 15:02
Financial Data and Key Metrics Changes - The company reported a GAAP net income of $20.8 million for Q2 2025, which included a $3.36 million gain from the sale of a branch and various acquisition-related expenses [12][21] - The core net income, excluding non-core items, was $19.5 million, translating to an EPS of $0.66 [12][21] - The return on average assets (ROAA) was maintained at 1% and tangible book value increased by almost 15% annualized [6][12] Business Line Data and Key Metrics Changes - Total loans held for investment increased by 4.5% annualized, amounting to an increase of $66.7 million from Q1 [14] - New loan production was $432 million, primarily driven by commercial and industrial (C&I) loans and commercial real estate (CRE) [14] - Total deposits decreased by $38.5 million, mainly due to a net decrease in interest-bearing deposits [15] Market Data and Key Metrics Changes - The weighted average cost of deposits decreased to 2.62%, down six basis points from the previous quarter [18] - Non-interest bearing deposits increased by $102 million or 7.8% on a linked quarter basis [16] - The company expects to maintain elevated liquidity levels in the near term, assuming no rate cuts [17] Company Strategy and Development Direction - The company is focused on improving operational efficiency through a core processing system upgrade, which is expected to enhance both organic and inorganic growth [7][9] - A partnership with Progressive Bank is anticipated to provide meaningful earnings accretion starting in 2026 [9][10] - The company aims to maintain a balanced approach to growth while managing concentration risks, particularly in C&I and owner-occupied loans [46][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating through credit challenges, with expectations for resolution on non-performing loans in the upcoming quarters [10][34] - The sentiment among borrowers is improving, with increased activity noted in the market, contributing to a more optimistic outlook for loan growth [76] - The company is prepared to capitalize on opportunities for growth while maintaining a disciplined approach to risk management [86] Other Important Information - The company experienced a negative trend in asset quality metrics, with non-performing loans (NPLs) increasing to 0.97% [22] - The company is actively managing its funding sources, including an increase in FHLB borrowings to optimize its balance sheet [54] Q&A Session Summary Question: Excess liquidity related to core conversion - Management indicated that excess liquidity will be maintained until the core conversion with Oakwood is complete [28][29] Question: Credit migration and reserves - Management confirmed that the migration was from substandard to non-accrual, with adequate reserves in place for the affected credits [30][32] Question: Expense outlook for the next quarters - Management expects a modest increase in core expenses in Q3, with a run rate in the low $50 million range [40] Question: Loan growth expectations - Management anticipates mid-single-digit loan growth for the remainder of the year, with a positive sentiment among borrowers [72][76] Question: Loan yields and competition - Management noted that loan yields have softened due to competition, but they remain focused on maintaining a competitive stance [51] Question: Feedback on the new core processing system - Management stated it is too early for comprehensive feedback but remains optimistic about the long-term benefits of the new system [56][58] Question: Growth potential of Smith Sheldon Wilson - Management expressed confidence in the growth potential of Smith Sheldon Wilson, expecting to double its impact in the next 12-24 months [63][65]
Business First (BFST) Reports Q2 Earnings: What Key Metrics Have to Say
ZACKS· 2025-07-28 15:01
Core Insights - Business First (BFST) reported revenue of $81.46 million for the quarter ended June 2025, marking a year-over-year increase of 23.1% [1] - The earnings per share (EPS) for the same period was $0.66, compared to $0.64 a year ago, indicating a slight improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $78.86 million by 3.29%, while the EPS surpassed the consensus estimate of $0.65 by 1.54% [1] Financial Performance Metrics - The net interest margin was reported at 3.7%, matching the average estimate from two analysts [4] - The efficiency ratio was 62.8%, slightly better than the estimated 63.8% [4] - Total other income (Non-Interest Income) was $11.05 million, below the average estimate of $11.95 million [4] - Net interest income stood at $67.04 million, exceeding the average estimate of $66.91 million [4] Stock Performance - Business First shares have returned +3% over the past month, compared to a +4.9% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential outperformance against the broader market in the near term [3]
Business First Bank(BFST) - 2025 Q2 - Earnings Call Transcript
2025-07-28 15:00
Financial Data and Key Metrics Changes - The company reported a GAAP net income of $20.8 million for Q2 2025, which included a $3.36 million gain from the sale of a branch and various acquisition-related expenses [10][19] - The core net income, excluding non-core items, was $19.5 million, translating to an EPS of $0.66 [10][19] - The return on average assets (ROAA) was maintained at 1% [5] Business Line Data and Key Metrics Changes - Total loans held for investment increased by 4.5% annualized, amounting to an increase of $66.7 million from Q1 [12] - New loan production was $432 million, with significant growth in commercial and industrial (C&I) loans and commercial real estate (CRE) loans, which increased by $98.8 million and $61.6 million respectively [12] - Total deposits decreased by $38.5 million, primarily due to a net decrease in interest-bearing deposits [13] Market Data and Key Metrics Changes - The weighted average cost of deposits decreased to 2.62%, down six basis points from the previous quarter [17] - Non-interest bearing deposits increased by $102 million or 7.8% on a linked quarter basis [14] Company Strategy and Development Direction - The company is focused on maintaining a diversified loan portfolio while reducing concentration risk, particularly in construction loans [43] - A partnership with Progressive Bank, a $750 million community bank, was announced, which is expected to enhance earnings accretion [7][8] - The company is committed to improving operational efficiency through a core processing system upgrade, which is anticipated to facilitate future growth [6][54] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate through current credit challenges, with a focus on resolving non-performing loans [21][30] - The sentiment in the market is improving, with increased loan demand and a more optimistic outlook for the remainder of the year [70] Other Important Information - The company achieved a tangible book value growth of almost 15% annualized [5] - The net charge-offs remained low at 0.01%, indicating strong asset quality management [8] Q&A Session Summary Question: Excess liquidity related to core conversion - Management indicated that excess liquidity will be maintained until the core conversion with Oakwood is completed [26][27] Question: Credit migration and reserves - Management confirmed that the increase in non-performing loans (NPLs) was due to migration from substandard to non-accrual, with adequate reserves in place [28][29] Question: Expense outlook - The company expects a modest increase in core expenses in Q3, with a run rate in the low $50 million range [36] Question: Loan growth outlook - Management anticipates mid-single-digit loan growth for the remainder of the year, with a focus on maintaining discipline in lending practices [41][43] Question: Fee income growth - The company is optimistic about growth in fee income from SBA loan services and derivatives, with expectations for continued momentum [72][75]
Business First (BFST) Q2 Earnings and Revenues Beat Estimates
ZACKS· 2025-07-28 14:31
Group 1: Earnings Performance - Business First reported quarterly earnings of $0.66 per share, exceeding the Zacks Consensus Estimate of $0.65 per share, and up from $0.64 per share a year ago, representing an earnings surprise of +1.54% [1] - The company posted revenues of $81.46 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.29%, compared to year-ago revenues of $66.18 million [2] - Over the last four quarters, Business First has consistently surpassed consensus EPS estimates and revenue estimates [2] Group 2: Stock Performance and Outlook - Business First shares have declined approximately 1.2% since the beginning of the year, while the S&P 500 has gained 8.6% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The current consensus EPS estimate for the next quarter is $0.69 on revenues of $80.27 million, and for the current fiscal year, it is $2.68 on revenues of $318.4 million [7] Group 3: Industry Context - The Banks - Northeast industry, to which Business First belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5] - The favorable trend in estimate revisions prior to the earnings release has resulted in a Zacks Rank 2 (Buy) for Business First, suggesting expected outperformance in the near future [6]
Business First Bancshares, Inc., Announces Financial Results for Q2 2025
Globenewswire· 2025-07-28 12:20
Core Financial Performance - Business First Bancshares reported net income available to common shareholders of $20.8 million or $0.70 per diluted common share for the quarter ended June 30, 2025, representing increases of $1.6 million and $0.05, respectively, compared to the previous quarter [1] - On a non-GAAP basis, core net income for the same quarter was $19.5 million or $0.66 per diluted common share, an increase of $0.2 million and $0.01 from the linked quarter [1] Operational Highlights - The company successfully executed a core conversion and repositioned legacy branches, which positions it for continued growth [2] - A quarterly preferred dividend of $18.75 per share was declared, along with a common dividend of $0.14 per share, both to be paid on August 31, 2025 [2] Loan and Deposit Trends - Loans held for investment increased by $66.7 million or 1.12%, with commercial and commercial real estate portfolios growing by $98.8 million and $61.6 million, respectively [5] - Deposits decreased by $38.5 million or 0.60%, but excluding the $50.7 million in deposits transferred in the Kaplan sale, deposits increased by $12.1 million or 0.19% [8] Credit Quality - The ratio of nonperforming loans increased by 28 basis points to 0.97% as of June 30, 2025, while nonperforming assets to total assets rose by 21 basis points to 0.76% [6] Securities and Borrowings - The securities portfolio increased by $5.9 million or 0.64%, impacted by $6.4 million in positive fair value adjustments [7] - Borrowings increased by $179.0 million or 41.25%, primarily due to an increase in short-term Federal Home Loan Bank advances [11] Shareholder Equity and Capital Growth - Shareholders' equity increased by $22.1 million or 2.68% during the quarter, with book value per common share rising to $26.23 [12] - Tangible book value per common share increased to $28.61, reflecting a 3.70% increase compared to the linked quarter [9] Income and Expense Analysis - Net interest income totaled $67.0 million, with a net interest margin of 3.68% for the quarter [14] - Other income increased by $1.2 million or 8.99%, largely due to a $3.4 million gain on the Kaplan sale [17] - Other expenses rose by $628,000 or 1.24%, primarily due to increased data processing expenses [18] Future Growth Initiatives - The company is set to convert its Oakwood franchise systems in late Q3 2025 and aims to strengthen its position in the Dallas market [2] - Business First executed a definitive agreement to acquire Progressive Bancorp, Inc., which reported total assets of $752 million as of March 31, 2025 [9]
Business First Bank(BFST) - 2025 Q2 - Quarterly Results
2025-07-28 12:19
[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% |
b1BANK Promotes Heather Roemer to Chief Administrative Officer
Globenewswire· 2025-07-15 12:45
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]
Business First Bancshares, Inc. Announces Agreement to Acquire Progressive Bancorp, Inc. and Progressive Bank
Globenewswire· 2025-07-07 20:01
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].