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

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

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

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

Business First Bancshares, Inc. (NASDAQ:BFST) Q1 2025 Earnings Call April 24, 2025 5:00 PM ET Company Participants Matt Sealy - Investor Relations Jude Melville - Chairman and Chief Executive Officer Greg Robertson - Chief Financial Officer Philip Jordan - Chief Banking Officer Jerry Vascocu - President, b1BANK Conference Call Participants Matt Olney - Stephens Michael Rose - Raymond James Feddie Strickland - Hovde Group Christopher Marinac - Janney Manuel Navas - D.A. Davidson Operator Hello and thank you ...

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

Business First (BFST) came out with quarterly earnings of $0.65 per share, beating the Zacks Consensus Estimate of $0.61 per share. This compares to earnings of $0.50 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 6.56%. A quarter ago, it was expected that this company would post earnings of $0.46 per share when it actually produced earnings of $0.66, delivering a surprise of 43.48%.Over the last four quarters, the company ha ...

Financial Data and Key Metrics Changes - The first quarter GAAP net income was $19.2 million, with EPS of $0.65, including several non-core items [12][21] - Core ROA exceeded 1%, with core net interest margin expanding by eight basis points from the previous quarter [6][12] - Total deposits decreased by $53.2 million, primarily due to net decreases in non-interest bearing deposits [13][14] Business Line Data and Key Metrics Changes - Total loans held for investment remained relatively flat, down just $480,000, with total paydowns and payoffs matching new loan production at approximately $500 million [13][14] - Non-interest revenue contributed significantly to profitability, driven by strong swap fees and SBA loan gains [7][21] - The company experienced modest negative credit migration, with NPAs increasing from 0.42% to 0.69% [22] Market Data and Key Metrics Changes - Texas-based loans remained flat at approximately 41% of the overall loan portfolio [13] - The weighted average cost of deposits for the first quarter was 2.69%, down 12 basis points from the previous quarter [18] Company Strategy and Development Direction - The company aims for continual incremental improvement and is focused on optimizing its branch network [8][11] - The integration of Oakwood Bank is proceeding as expected, with a conversion set for September [8] - The company is open to future acquisitions but prioritizes growth within its current footprint in Louisiana and Texas [62][102] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating challenges and emphasized a strong start to the year, with better capitalized and diversified credit exposure [11][102] - The company expects loan growth in the low to mid-single digits for the upcoming quarters, despite macroeconomic uncertainties [27][86] - Management noted that deposit costs are expected to remain relatively flat in the near term, influenced by competitive pressures [17][82] Other Important Information - The company completed the sale of a branch in Kaplan, Louisiana, which included approximately $51 million in deposits at an 8% premium [9][15] - The company has a strong pipeline for loan growth and is focused on maintaining profitability without relying solely on loan growth [10][27] Q&A Session Summary Question: What are the internal expectations for loan growth for Q2 and the back half of the year? - Management expects loan growth in the low to mid-single digits quarter over quarter, potentially landing in the lower single digits by year-end due to a flat first quarter [27][86] Question: Can you provide updated thoughts on core margin progression throughout the year? - Management anticipates continued low single-digit basis point improvements in core margin, but does not expect to achieve the same level of expansion as in the first quarter due to interest rate uncertainties [29][30] Question: What are the expectations for deposit growth in the upcoming quarters? - Management indicated that the second quarter might be muted due to the recent branch sale, which started the quarter with a deposit deficit [44][48] Question: Are there any areas in the loan portfolio being deemphasized due to future credit expectations? - Management stated there are no specific areas being significantly downscoped, but they are monitoring C and D exposure to ensure it remains within comfortable bounds [59][60] Question: What are the current expectations for industry consolidation within the footprint? - Management believes M&A activity may slow temporarily due to current market uncertainties, but they remain prepared for future opportunities [101][102]

Financial Data and Key Metrics Changes - The first quarter GAAP net income was $19.2 million, with EPS of $0.65, including non-core items [13] - Core net income, excluding non-core items, was $19.3 million, also with EPS of $0.65 [13] - Core return on assets (ROA) exceeded 1%, with core net interest margin expanding by eight basis points [6][17] - Total deposits decreased by $53 million, primarily due to a reduction in non-interest bearing deposits [14][15] Business Line Data and Key Metrics Changes - Total loans held for investment remained flat, down $480,000, with total paydowns and payoffs matching new loan production at approximately $500 million [14] - Real estate construction loans decreased by $36.8 million, while real estate residential loans increased by $49.8 million [14] - Non-interest revenue was driven by strong swap fees and SBA loan gains, contributing significantly to profitability [7][22] Market Data and Key Metrics Changes - Texas-based loans remained flat at approximately 41% of the overall loan portfolio [14] - The weighted average total cost of deposits for the first quarter was 2.69%, down 12 basis points from the previous quarter [19] - The company generated approximately $380 million from new deposit account relationships despite the overall decline in deposits [15] Company Strategy and Development Direction - The company is focused on optimizing its branch network and managing expenses while investing in IT and infrastructure [8][21] - The acquisition of Oakwood Bank is progressing as planned, with integration set for September [8] - The company aims to maintain profitability without relying on loan growth, emphasizing net interest margin over volume [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the uncertain economic environment and highlighted a strong pipeline for the second quarter [11][28] - The company anticipates low to mid-single-digit loan growth for the upcoming quarters, with potential for higher growth in Q2 and Q3 [28][90] - Management noted that credit quality remains stable despite some negative migration in specific relationships [23] Other Important Information - The company completed the sale of a branch in Kaplan, Louisiana, which included approximately $51 million in deposits at an 8% premium [9][16] - The company has a contingent liquidity increase of approximately $600 million, enhancing its financial flexibility [17] Q&A Session Summary Question: Expectations for loan growth in Q2 and the second half of the year - Management expects loan growth in the low to mid-single digits, with a healthy pipeline for Q2 [28] Question: Updated thoughts on core margin progression - Management anticipates continued low single-digit basis point improvements in core margin, influenced by interest rate uncertainty [30] Question: Expectations for deposit growth and moving pieces on acquired balances - Management indicated that the recent branch sale would impact deposit growth, making Q2 potentially muted [46] Question: Areas of the loan portfolio under closer scrutiny - Management is not significantly downscoping any particular area but is focusing on maintaining a diversified portfolio [61] Question: Thoughts on capital return and potential buybacks - Management is considering capital return options but believes more capital build is needed before executing buybacks [53][55] Question: Current expectations for industry consolidation - Management noted a slowdown in M&A conversations due to recent market uncertainties but remains open to future opportunities [104]

500 Laurel Street Baton Rouge, LA 70801 Phone: 877.614.7600 April 24, 2025 b1BANK FOR IMMEDIATE RELEASE Media Contact: Misty Albrecht 225.286.7879 Misty.Albrecht@b1BANK.com Business First Bancshares, Inc., Announces Financial Results for Q1 2025 Baton Rouge, La. (April 24, 2025) – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended March 31, 2025. Business First reported net income available to common sharehol ...