Business First Bancshares, Inc., Announces Financial Results for Q2 2025

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]