Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2019 or ☐ TRANSITION REPORT PURUSANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-38447 BUSINESS FIRST BANCSHARES, INC. (Exact name of registrant as specified in its charter) Louisiana 20 ...

[PART I - FINANCIAL INFORMATION](index=4&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, including balance sheets, income statements, and cash flows, with detailed notes [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) Total assets increased to $2.15 billion by June 30, 2019, driven by growth in net loans, with total liabilities and shareholders' equity also rising Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2019 (Unaudited) | December 31, 2018 | | :--- | :--- | :--- | | **Total Assets** | **$2,153,608** | **$2,094,896** | | Net Loans and Lease Receivable | $1,630,970 | $1,517,249 | | Total Deposits | $1,702,902 | $1,733,934 | | **Total Liabilities** | **$1,876,139** | **$1,834,838** | | **Total Shareholders' Equity** | **$277,469** | **$260,058** | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income significantly increased to $6.8 million for Q2 2019 and $12.5 million for the six-month period, driven by higher net interest income Income Statement Summary (in thousands, except per share data) | Metric | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $20,193 | $14,976 | $39,313 | $29,476 | | Provision for Loan Losses | $1,302 | $474 | $1,935 | $948 | | **Net Income** | **$6,843** | **$3,638** | **$12,502** | **$6,746** | | Diluted EPS | $0.50 | $0.33 | $0.91 | $0.62 | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $15.7 million, while investing activities used $97.5 million, leading to a $32.0 million net decrease in cash Cash Flow Summary for Six Months Ended June 30 (in thousands) | Activity | 2019 | 2018 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $15,658 | $9,565 | | Net Cash Used in Investing Activities | ($97,520) | ($108,271) | | Net Cash Provided by Financing Activities | $49,833 | $36,976 | | **Net (Decrease) in Cash and Cash Equivalents** | **($32,029)** | **($61,730)** | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of financial statements, including mergers, loan portfolios, credit quality, and fair value measurements - The company completed the acquisition of Minden Bancorp, Inc. (MBI) on January 1, 2018, for **$56.2 million** in cash, resulting in **$25.6 million** of goodwill[26](index=26&type=chunk)[27](index=27&type=chunk) - The acquisition of Richland State Bancorp, Inc. (RSBI) was completed on November 30, 2018, for **$42.4 million** in stock, resulting in **$17.1 million** of goodwill[28](index=28&type=chunk)[29](index=29&type=chunk) - A branch acquired from RSBI was subsequently sold on June 28, 2019, for a net gain of **$593,000**[29](index=29&type=chunk) - The allowance for loan losses increased to **$11.6 million** at June 30, 2019, from **$11.2 million** at December 31, 2018[53](index=53&type=chunk) - The provision for loan losses for the first six months of 2019 was **$1.9 million**[53](index=53&type=chunk) - The company adopted the new lease accounting standard (ASU 2016-02) on January 1, 2019, recognizing a right-of-use asset and lease liability of approximately **$13.0 million**[97](index=97&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q2 and H1 2019 financial performance, covering key drivers, capital, and non-GAAP reconciliations [Financial Highlights](index=35&type=section&id=Financial%20Highlights) The company reported strong financial results for H1 2019, with total assets reaching $2.2 billion and total loans growing 7.5% to $1.6 billion, improving profitability metrics Key Performance Indicators | Metric | Six Months Ended June 30, 2019 | Six Months Ended June 30, 2018 | | :--- | :--- | :--- | | Net Income | $12.5 million | $6.7 million | | Diluted EPS | $0.91 | $0.62 | | Return on Average Assets | 1.20% | 0.83% | | Return on Average Equity | 9.38% | 7.35% | | Book Value Per Share (as of period end) | $20.77 | N/A | [Results of Operations](index=37&type=section&id=Results%20of%20Operations) Operating results for Q2 and H1 2019 showed significant improvement, with net interest income growing 34.8% and noninterest income more than doubling, despite increased noninterest expense - Net interest income for Q2 2019 was **$20.2 million** with a net interest margin of **4.19%**, compared to **$15.0 million** and **3.98%** for Q2 2018[122](index=122&type=chunk) - Noninterest income for Q2 2019 increased by **$2.2 million (110.3%)** year-over-year, driven by a **$593,000** gain on the sale of a banking center and a **$1.04 million** increase in pass-through income from SBIC partnerships[133](index=133&type=chunk)[134](index=134&type=chunk)[137](index=137&type=chunk) - Salaries and employee benefits rose by **$2.2 million (34.2%)** in Q2 2019 compared to Q2 2018, primarily due to additional staff from the RSBI acquisition and new hires. Full-time equivalent employees increased from **241 to 348** year-over-year[141](index=141&type=chunk) [Financial Condition](index=44&type=section&id=Financial%20Condition) The company's financial condition remained strong, with total assets increasing to $2.2 billion and the loan portfolio growing 7.5%, while asset quality improved and nonperforming assets decreased - Total loans held for investment grew by **$114.1 million (7.5%)** to **$1.6 billion** as of June 30, 2019, compared to December 31, 2018[152](index=152&type=chunk) - Nonperforming assets decreased to **$12.4 million** at June 30, 2019, from **$15.5 million** at December 31, 2018[167](index=167&type=chunk)[168](index=168&type=chunk) - The ratio of nonperforming loans to total loans improved to **0.61%** from **0.89%**[168](index=168&type=chunk) - The allowance for loan losses was **0.71%** of total loans held for investment at June 30, 2019, compared to **0.73%** at December 31, 2018[179](index=179&type=chunk) - Total deposits decreased by **$31.0 million**, primarily due to the sale of a banking center which included **$24.9 million** in associated deposits[193](index=193&type=chunk) [Liquidity and Capital Resources](index=56&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintained solid liquidity and capital, with total shareholders' equity increasing to $277.5 million and all regulatory capital ratios remaining well above 'well-capitalized' thresholds Regulatory Capital Ratios (Consolidated) | Ratio | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Tier 1 Leverage | 10.74% | 11.66% | | Common Equity Tier 1 | 11.73% | 11.83% | | Tier 1 Risk-based | 11.73% | 11.83% | | Total Risk-based | 13.69% | 13.91% | - The Board of Directors declared a quarterly dividend of **$0.10** per share on July 23, 2019[216](index=216&type=chunk) [Non-GAAP Financial Measures](index=60&type=section&id=Non-GAAP%20Financial%20Measures) This section provides reconciliations of GAAP to non-GAAP financial measures, with core net income at $6.6 million and tangible book value per common share increasing to $16.60 Core Net Income Reconciliation (in thousands) | Metric | Three Months Ended June 30, 2019 | Three Months Ended June 30, 2018 | | :--- | :--- | :--- | | Net Income (GAAP) | $6,843 | $3,638 | | Adjustments (net of tax) | ($241) | $430 | | **Core Net Income (Non-GAAP)** | **$6,602** | **$4,078** | Tangible Book Value Per Share Reconciliation | Metric | June 30, 2019 | December 31, 2018 | | :--- | :--- | :--- | | Book Value Per Share (GAAP) | $20.77 | $19.68 | | **Tangible Book Value Per Share (Non-GAAP)** | **$16.60** | **$15.34** | [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=63&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Primary market risks include interest rate, credit, and liquidity, managed through established policies and committee oversight - The company's primary market risks are identified as interest rate, credit, and liquidity risk, which are managed through board-approved policies[247](index=247&type=chunk) [Item 4. Controls and Procedures](index=63&type=section&id=Item%204.%20Controls%20and%20Procedures) Disclosure controls and procedures were effective as of June 30, 2019, with no material changes to internal control - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2019[250](index=250&type=chunk) - No material changes were made to the company's internal control over financial reporting during the second quarter of 2019[251](index=251&type=chunk) [PART II - OTHER INFORMATION](index=63&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=63&type=section&id=Item%201.%20Legal%20Proceedings) The company is not involved in any material legal proceedings beyond routine litigation - The company is not a party to any material legal proceedings outside of routine matters occurring in the ordinary course of business[251](index=251&type=chunk) [Item 1A. Risk Factors](index=64&type=section&id=Item%201A.%20Risk%20Factors) This section refers to risk factors detailed in the company's 2018 Annual Report on Form 10-K - For a discussion of risk factors, the report refers to Item 1A of the company's 2018 Form 10-K[252](index=252&type=chunk) [Item 6. Exhibits](index=64&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the Form 10-Q, including officer certifications and XBRL data files - Exhibits filed with the report include CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act[252](index=252&type=chunk)

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2019 or ☐ TRANSITION REPORT PURUSANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 333-200112 BUSINESS FIRST BANCSHARES, INC. (Exact name of registrant as specified in its charter) Louisiana 20-53 ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2018 or ☐ TRANSITION REPORT PURUSANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 333-200112 BUSINESS FIRST BANCSHARES, INC. (Exact name of registrant as specified in its charter) Louisiana 20-5340628 ...