Business First Bank(US:BFST)2025-10-30 16:38Financial Performance - Net income available to common shareholders for the nine months ended September 30, 2025, was $61.5 million, a $16.9 million, or 37.9%, increase from the same period in 2024[139] - Net interest income for the nine months ended September 30, 2025, was $202.3 million, an increase of $40.6 million, or 25.1%, from the same period in 2024[139] - For the three months ended September 30, 2025, net interest income totaled $69.3 million, an increase from $56.1 million in the same period of 2024[143] - Total noninterest income for the nine months ended September 30, 2025, increased by $7.0 million, or 21.6%, compared to the same period in 2024[160] - Core net income available to common shareholders for Q3 2025 was $21.2 million, or $0.72 per diluted common share, compared to $17.2 million, or $0.68 per diluted common share for Q3 2024, reflecting a 23.3% increase in core net income[250] - Interest income for Q3 2025 was $118.7 million, compared to $102.7 million in Q3 2024, indicating a 15.6% year-over-year growth[252] Asset and Loan Growth - Total assets increased to $8.0 billion, a $96.8 million, or 1.2%, increase from December 31, 2024[139] - Total loans held for investment reached $6.0 billion, a $39.7 million, or 0.7%, increase from December 31, 2024[139] - Total interest-earning assets increased to $7.46 billion for the three months ended September 30, 2025, from $6.36 billion in 2024[148] - Average loans outstanding increased to $6,001,647 thousand for the nine months ended September 30, 2025, compared to $5,327,466 thousand for the same period in 2024, representing a growth of 12.7%[200] Capital and Equity - Total shareholders' equity increased to $878.4 million as of September 30, 2025, representing a 9.9% increase from $799.5 million as of December 31, 2024, driven by net income of $65.5 million[223] - Book value per common share increased by 10.6% to $27.23 from $24.62 at December 31, 2024[143] - Tangible common equity rose to $670,228,000 as of September 30, 2025, compared to $588,712,000 as of December 31, 2024, marking an increase of about 13.9%[261] - Common equity to total assets ratio improved to 10.1% as of September 30, 2025, compared to 9.3% as of December 31, 2024[261] Credit Quality and Allowance for Losses - The allowance for credit losses was 1.03% of total loans held for investment, up from 0.98% as of December 31, 2024[143] - As of September 30, 2025, nonperforming assets totaled $66.1 million, up from $30.5 million as of December 31, 2024, indicating a significant increase in asset quality concerns[187] - The ratio of nonperforming loans to total loans held for investment increased to 0.82% as of September 30, 2025, compared to 0.42% as of December 31, 2024[188] - Provision for credit losses was $3.2 million for the three months ended September 30, 2025, up from $1.7 million in the same period in 2024[157] Deposits and Funding - Total deposits as of September 30, 2025, were $6.5 billion, a decrease of $4.5 million, or 0.1%, compared to December 31, 2024[212] - Total uninsured deposits were $2.8 billion, or 42.6%, of total deposits as of September 30, 2025, compared to 43.4% as of December 31, 2024[212] - Average deposits for the nine months ended September 30, 2025, were $6.4 billion, an increase of $676.0 million, or 11.8%, over the full year average for 2024[214] Acquisitions and Strategic Initiatives - The acquisition of Oakwood contributed significantly to the increase in net income and net interest income[139] - The company entered into a definitive agreement to acquire Progressive Bancorp, which had approximately $755.3 million in total assets as of June 30, 2025[138] Risk Management - The company actively manages interest rate, credit, and liquidity risks through established policies and procedures[262] - Liquidity risk management includes a contingency funding plan to ensure the ability to meet obligations to borrowers and depositors[263] - Credit risk is primarily related to the loan portfolio, with a disciplined approach to evaluating the adequacy of the allowance for credit losses[264]