Press Releases July 23, 2026 04:05 PM

Business First Bancshares, Inc., Announces Financial Results for Q2 2026

Business First Bancshares reports solid Q2 2026 earnings with growth in net income, loan origination, and capital position

By Avery Klein
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BFST

Business First Bancshares, Inc. (NASDAQ: BFST) announced its Q2 2026 financial results, reporting net income available to common shareholders of $22.8 million, an increase over the previous quarter. The bank saw organic loan growth, margin expansion, and capital strengthening, with a successful acquisition completed and positive market investments supporting future growth. The board declared preferred and common dividends, and the company executed share repurchases, reflecting confidence in continued shareholder value growth.

Business First Bancshares, Inc., Announces Financial Results for Q2 2026
BFST
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Key Points

  • Q2 net income increased to $22.8 million, or $0.70 per diluted common share, demonstrating positive earnings momentum.
  • Organic loan production of $96.4 million and net interest margin expansion to 3.73%, driven by improved loan yields and deposit cost management.
  • Strengthened financial position with increased common equity to total assets and risk-based capital ratio, plus successful acquisition of American Planning Corporation expanding advisory services in the community banking sector.

BATON ROUGE, La., July 23, 2026 (GLOBE NEWSWIRE) -- Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended June 30, 2026. Business First reported net income available to common shareholders of $22.8 million or $0.70 per diluted common share, increases of $0.6 million and $0.02, respectively, compared to the linked quarter. On a non-GAAP basis, core net income for the quarter ended June 30, 2026, which excludes certain income and expenses, was $23.3 million or $0.71 per diluted common share, decreases of $0.7 million and $0.02 from the linked quarter.

"Our second-quarter results — marked by solid organic loan origination, margin expansion, growth in capital, and improving asset quality trends — are laying the foundation we expected for a strong second half of the year," said Jude Melville, Chairman, President, and CEO of Business First. "Meta's recently announced additional $40 billion investment in Northeast Louisiana, the expected full integration of our Progressive acquisition in August, and meaningful growth in our Houston-area pipeline — along with other positive developments across our markets — give our team significant opportunities to build on as we execute on our growth plans."

On Thursday, July 23, 2026, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the second quarter in the amount of $0.15 per share of common stock. The preferred and common dividends will be paid on August 31, 2026, or as soon thereafter as practicable, to the shareholders of record as of August 15, 2026.

Quarterly Highlights

  • Consistent Core Performance. Return to common shareholders on average assets, on an annualized basis, was 1.03% for the quarter ended June 30, 2026, or 1.05% on a non-GAAP basis, compared to 1.01% or 1.10% on a non-GAAP basis for the linked quarter. Return to common shareholders on average equity on an annualized basis, was 9.83% for the quarter ended June 30, 2026, or 10.05% on a non-GAAP basis, compared to 9.77%, or 10.57% on a non-GAAP basis for the linked quarter.
  • American Planning Corporation Acquisition. On June 29, 2026, Business First completed the acquisition of American Planning Corporation, a financial consulting firm serving community banks since 1972. CEO T. Jefferson Fair and his team joined Smith Shellnut Wilson, LLC (SSW), a b1BANK subsidiary, expanding SSW’s advisory platform to serve SSW and b1 Financial Services Group clients nationwide.
  • Margin Expansion. Net interest margin expanded 8 basis points (bps) to 3.73% for the quarter ended June 30, 2026, or 3.68% on a non-GAAP basis, compared to 3.65% or 3.60%, respectively, for the linked quarter. The expansion was driven by a slight improvement in book yield on loans and continued deposit cost management.
  • Improving Shareholder Value. During the second quarter, as part of a previously announced stock repurchase program, Business First repurchased 176,849 shares, with a market value of $4.8 million, at a weighted average price of $27.22 per share. Common equity to total assets increased from 10.32% to 10.52%.
  • Strengthening Capital Position. Tangible common equity to tangible assets increased from 8.65% to 8.79%, an increase of 1.67% or 6.71% annualized, compared to the linked quarter. Book value per common share increased to $28.79 at June 30, 2026, compared to $28.18 at March 31, 2026. On a non-GAAP basis, tangible book value per common share increased from $23.18 at the linked quarter to $23.61 at June 30, 2026, an increase of 1.85% or 7.42% annualized. Consolidated total risk based capital ratio increased to 13.77% from 13.08%, an increase of 0.69% from the prior quarter. The linked quarter capital build was driven by the successful completion of our April 2nd issuance of $85.0 million fixed-to-floating rate subordinated debt.
  • Balance Sheet Repositioning. Completed the sale of $100.3 million lower-yielding acquired Progressive loans during the quarter, including $55.3 million of residential mortgages at a weighted average yield net of fees of 3.0% and $45.0 million of commercial real estate loans at a weighted average yield net of fees of 3.5%.

Statement of Financial Condition

Loans

Loans held for investment decreased $24.8 million or 0.37%, 1.49% annualized, compared to the linked quarter. During the quarter, organic loan production of approximately $96.4 million, or 5.8% annualized, was offset by the sale of $100.3 million of acquired loans and the resolution and reduction of $21.0 million on a nonperforming loan.

Credit Quality

The ratio of nonperforming loans compared to loans held for investment decreased 27 bps to 1.26% at June 30, 2026, while the ratio of nonperforming assets compared to total assets decreased 15 bps to 1.23% compared to the linked quarter. The decreases in the nonperforming loans and assets ratios over the linked quarter were largely attributable to previously identified commercial real estate and commercial business relationships that the Company resolved during the second quarter. Net charge-offs to average quarterly total loans increased to 4 bps for the quarter ended June 30, 2026, up from 1 bps from the linked quarter.

Securities

The securities portfolio decreased $4.7 million or 0.45%, from the linked quarter, impacted by $2.6 million in positive pre-tax fair value adjustments. The securities portfolio, based on estimated fair value, represented 11.69% of total assets as of June 30, 2026.

Deposits

Deposits as of June 30, 2026 decreased $229.4 million or 3.07%, 12.33% annualized, compared to the linked quarter. During the second quarter, interest-bearing deposits decreased $237.9 million or 4.04% and noninterest-bearing deposits increased $8.5 million or 0.54%. The decrease in interest-bearing deposits was largely impacted by approximately $71.8 million in commercial money market accounts and $62.6 million in brokered deposits. Average interest-bearing deposits decreased $145.0 million or 2.46%, and noninterest-bearing deposits decreased $2.9 million or 0.19% from the linked quarter.

Borrowings

Borrowings increased $206.3 million or 53.66%, from the linked quarter due primarily to increases in short-term Federal Home Loan Bank advances.

Shareholders’ Equity

Shareholders' equity increased $17.4 million or 1.76% compared to the linked quarter. Accumulated other comprehensive loss decreased from $37.9 million to $35.8 million or 5.51%, during the quarter due to after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $28.79 at June 30, 2026, compared to $28.18 at March 31, 2026. On a non-GAAP basis, tangible book value per common share increased from $23.18 at the linked quarter to $23.61 at June 30, 2026, 1.85% or 7.42% annualized.

Results of Operations

Net Interest Income

For the quarter ended June 30, 2026, net interest income totaled $77.8 million, compared to $75.2 million from the linked quarter. Loan yields increased 2 bps to 6.63% compared to 6.61% from the linked quarter and interest-bearing asset yields increased 7 bps to 6.02% compared to 5.95% from the linked quarter. Net interest margin and net interest spread were 3.73% and 2.99% compared to 3.65% and 2.91% for the linked quarter. The overall cost of funds, which included noninterest-bearing deposits, decreased 1 bps from 2.45% to 2.44% for the quarter ended June 30, 2026.

Non-GAAP net interest income (excluding loan discount accretion of $1.0 million) totaled $76.8 million for the quarter ended June 30, 2026, compared to $74.1 million (excluding loan discount accretion of $1.1 million) for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.0 million) were 3.68% and 2.94%, respectively, for the quarter ended June 30, 2026, compared to 3.60% and 2.85% (excluding loan discount accretion of $1.1 million) for the linked quarter.

Provision for Credit Losses

During the quarter ended June 30, 2026, Business First recorded a provision for credit losses of $2.0 million, compared to $2.3 million from the linked quarter. At June 30, 2026, the ratio of allowance for credit losses to loans held for investment was 1.02%, compared to 1.03% for the linked quarter.

Other Income

For the quarter ended June 30, 2026, other income decreased $0.1 million or 0.59%, compared to the linked quarter. The decrease was largely attributable to a $1.2 million decrease in swap fee income, partially offset by a $0.5 million gain on redemption of debt and a $0.2 million increase in gain on sales of loans.

Other Expenses

For the quarter ended June 30, 2026, other expenses increased $2.1 million or 3.57% compared to the linked quarter. The increase was largely attributable to increases of $1.1 million each in advertising and promotions expense and other expenses and increases of $0.6 million each in legal and other professional fees and regulatory assessments, partially offset by a $1.1 million decrease in merger and conversion-related expenses.

Return on Assets and Common Equity

Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.03% and 9.83% for the quarter ended June 30, 2026, compared to 1.01% and 9.77%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.05% and 10.05% for the quarter ended June 30, 2026, compared to 1.10% and 10.57% for the linked quarter.

Conference Call and Webcast

Executive management will host a conference call and webcast to discuss results on Thursday, July 23, 2026, at 4:00 p.m. Central Time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 4840024, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/ow56nmrd. On the day of the presentation, the corresponding slide presentation will be available to view on the b1BANK website at https://www.b1bank.com/shareholder-info.

About Business First Bancshares, Inc.

Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $8.9 billion in assets, $5.6 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (not including $1.0 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and Texas providing commercial and personal banking products and services. b1BANK is a 2024 Mastercard “Innovation Award” winner and multiyear winner of American Banker Magazine’s “Best Banks to Work For.” Visit b1BANK.com for more information.

Non-GAAP Financial Measures

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. “Core” measures typically 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. Transactions that are typically excluded from non-GAAP “core” measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Business First’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.

Special Note Regarding Forward-Looking Statements

Certain statements contained 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, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.

Additional Information

For additional information about Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.

No Offer or Solicitation

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. 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.

  Investor Relations Contacts:   Gregory RobertsonMatt Sealy337.721.2701225.388.6116Gregory.Robertson@[email protected]  Media Contact: Misty Albrecht
b1BANK
225.286.7879
[email protected]       


 Business First Bancshares, Inc.Selected Financial Information(Unaudited) Three Months Ended June 30, March 31, June 30,(Dollars in thousands)2026
 2026
 2025
      Balance Sheet Ratios           Loans (HFI) to Deposits 92.04%  89.54%  94.21%Shareholders' Equity to Assets Ratio 11.33%  11.13%  10.67%      Loans Receivable Held for Investment (HFI)           Commercial$1,988,696  $1,943,412  $1,960,974 Real Estate:     Commercial 2,824,015   2,841,626   2,533,761 Construction 693,477   685,817   600,292 Residential 1,079,018   1,141,220   879,891 Total Real Estate 4,596,510   4,668,663   4,013,944 Consumer and Other 74,241   72,188   72,732 Total Loans (Held for Investment)$6,659,447  $6,684,263  $6,047,650       Allowance for Loan Losses           Balance, Beginning of Period$63,655  $53,959  $56,863 Progressive - PCD ALLL -   9,264   - Charge-offs – Quarterly (3,208)  (1,104)  (921)Recoveries – Quarterly 293   181   99 Provision for Loan Losses – Quarterly 1,718   1,355   2,455 Balance, End of Period$62,458  $63,655  $58,496       Allowance for Loan Losses to Total Loans (HFI) 0.94%  0.95%  0.97%Allowance for Credit Losses to Total Loans (HFI) (1) 1.02%  1.03%  1.02%Net Charge-offs to Average Quarterly Total Loans 0.04%  0.01%  0.01%      Remaining Loan Purchase Discount$7,341  $15,818  $10,099       Nonperforming Assets           Nonperforming Loans:     Nonaccrual Loans$80,124  $100,803  $56,377 Loans Past Due 90 Days or More 4,011   1,404   2,467 Total Nonperforming Loans 84,135   102,207   58,844 Other Nonperforming Assets:     Other Real Estate Owned 25,109   20,898   1,473 Other Nonperforming Assets -   -   - Total Other Nonperforming Assets 25,109   20,898   1,473 Total Nonperforming Assets$109,244  $123,105  $60,317       Nonperforming Loans to Total Loans (HFI) 1.26%  1.53%  0.97%Nonperforming Assets to Total Assets 1.23%  1.38%  0.76%      (1) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments.      


 Business First Bancshares, Inc.Selected Financial Information(Unaudited)           Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30,(Dollars in thousands, except per share data)2026
 2026
 2025
 2026
 2025
          Per Share Data                   Basic Earnings per Common Share$0.70  $0.68  $0.70  $1.38  $1.36 Diluted Earnings per Common Share 0.70   0.68   0.70   1.37   1.35 Dividends per Common Share 0.15   0.15   0.14   0.30   0.28 Book Value per Common Share 28.79   28.18   26.23   28.79   26.23                     Average Common Shares Outstanding 32,589,951   32,579,934   29,517,495   32,584,970   29,354,228 Average Diluted Common Shares Outstanding 32,763,608   32,785,554   29,586,975   32,778,199   29,500,061 End of Period Common Shares Outstanding 32,535,659   32,624,887   29,602,970   32,535,659   29,602,970                     Annualized Performance Ratios                   Return to Common Shareholders on Average Assets (1) 1.03%  1.01%  1.07%  1.02%  1.04%Return to Common Shareholders on Average Common Equity (1) 9.83%  9.77%  10.87%  9.80%  10.68%Net Interest Margin (1) 3.73%  3.65%  3.68%  3.69%  3.68%Net Interest Spread (1) 2.99%  2.91%  2.88%  2.95%  2.90%Efficiency Ratio (2) 64.83%  64.45%  62.83%  64.65%  63.33%          Total Quarterly/Year-to-Date Average Assets$8,916,954  $8,893,419  $7,791,371  $8,905,251  $7,771,288 Total Quarterly/Year-to-Date Average Common Equity 931,020   922,037   765,884   926,553   754,470           Other Expenses                   Salaries and Employee Benefits$33,120  $33,039  $28,317  $66,159  $57,814 Occupancy and Equipment Expense 8,279   8,122   7,162   16,401   14,518 Advertising and Promotions 2,606   1,508   1,088   4,114   2,379 Communications 638   652   590   1,290   1,181 Ad Valorem Shares Tax 977   978   1,125   1,955   2,250 Data Processing Fees 3,317   3,712   5,321   7,029   8,557 Directors' Fees 247   260   193   507   472 Insurance 432   411   435   843   839 Legal and Professional Fees 1,661   1,085   1,093   2,746   2,106 Office Supplies and Printing 278   313   300   591   611 Regulatory Assessments 1,534   984   933   2,518   2,190 Merger and Conversion-Related Expenses 303   1,377   210   1,680   460 Other 6,133   5,030   4,439   11,163   8,407 Total Other Expenses$59,525  $57,471  $51,206  $116,996  $101,784           Other Income                   Service Charges on Deposit Accounts$3,197  $3,142  $2,633  $6,339  $5,493 Gain (Loss) on Sales of Securities (6)  80   (47)  74   (48)Gain on Sales of Loans 1,583   1,341   781   2,924   2,037 Debit Card and ATM Fee Income 2,415   2,306   1,958   4,721   3,816 Cash Value of Life Insurance Income 902   831   758   1,733   1,566 Fees and Brokerage Commission 2,387   2,261   1,980   4,648   4,128 Pass-Through Income (Loss) from Other Investments 14   135   (246)  149   505 Gain on Extinguishment/Redemption of Debt 545   -   -   545   630 Gain on Sale of Branch -   -   3,360   -   3,360 Swap Fee Income 385   1,537   808   1,922   1,547 Other 2,545   2,417   2,430   4,962   4,607 Total Other Income$13,967  $14,050  $14,415  $28,017  $27,641                     (1) Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an actual day count convention.(2) Noninterest expense (excluding provision for loan losses) divided by noninterest income plus net interest income less gain/loss on sales of securities.          


 Business First Bancshares, Inc.Consolidated Balance Sheets(Unaudited)       June 30, March 31, June 30,(Dollars in thousands)2026
 2026
 2025
      Assets           Cash and Due From Banks$575,604  $589,804  $495,757 Federal Funds Sold 95,535   88,257   39,296 Securities Purchased Under Agreements to Resell 30,702   30,743   25,433 Securities Available for Sale, at Fair Values 1,041,133   1,045,817   926,450 Mortgage Loans Held for Sale 2,838   480   677 Loans and Lease Receivable 6,659,447   6,684,263   6,047,650 Allowance for Loan Losses (62,458)  (63,655)  (58,496)Net Loans and Lease Receivable 6,596,989   6,620,608   5,989,154 Premises and Equipment, Net 88,925   88,421   79,007 Accrued Interest Receivable 38,969   38,176   36,738 Other Equity Securities 51,302   40,047   48,736 Other Real Estate Owned 25,109   20,898   1,473 Cash Value of Life Insurance 139,169   132,682   118,707 Deferred Taxes, Net 21,561   22,959   25,222 Goodwill 135,222   133,564   121,146 Core Deposit and Customer Intangibles 33,267   29,409   15,775 Other Assets 27,181   24,943   24,723       Total Assets$8,903,506  $8,906,808  $7,948,294             Liabilities           Deposits     Noninterest-Bearing$1,583,562  $1,575,086  $1,410,708 Interest-Bearing 5,651,994   5,889,863   5,008,943 Total Deposits 7,235,556   7,464,949   6,419,651       Securities Sold Under Agreements to Repurchase 24,442   21,594   22,557 Federal Home Loan Bank Borrowings 442,494   260,792   492,946 Subordinated Debt 114,250   92,472   92,645 Subordinated Debt - Trust Preferred Securities 9,678   9,666   5,000 Accrued Interest Payable 3,774   3,692   4,829 Other Liabilities 64,735   62,467   62,226       Total Liabilities 7,894,929   7,915,632   7,099,854       Shareholders' Equity           Preferred Stock 71,930   71,930   71,930 Common Stock 32,536   32,625   29,603 Additional Paid-In Capital 578,087   580,640   502,046 Retained Earnings 361,846   343,890   292,629 Accumulated Other Comprehensive Loss (35,822)  (37,909)  (47,768)      Total Shareholders' Equity 1,008,577   991,176   848,440       Total Liabilities and Shareholders' Equity$8,903,506  $8,906,808  $7,948,294       


 Business First Bancshares, Inc.Consolidated Statements of Income(Unaudited)             Three Months Ended Six Months Ended June 30, March 31,
 June 30, June 30,
 June 30,(Dollars in thousands)2026
 2026
 2025
 2026
 2025
            Interest Income:           Interest and Fees on Loans$111,780  $109,146  $104,028  $220,926  $207,020 Interest and Dividends on Securities 9,104   8,462   6,906   17,566   13,520 Interest on Federal Funds Sold and Due From Banks 4,766   4,886   3,916   9,652   8,003 Total Interest Income 125,650   122,494   114,850   248,144   228,543             Interest Expense:           Interest on Deposits 41,251   42,758   41,546   84,009   83,985 Interest on Borrowings 6,555   4,541   6,262   11,096   11,533 Total Interest Expense 47,806   47,299   47,808   95,105   95,518             Net Interest Income 77,844   75,195   67,042   153,039   133,025             Provision for Credit Losses 1,991   2,278   2,225   4,269   5,037             Net Interest Income After Provision for Credit Losses 75,853   72,917   64,817   148,770   127,988             Other Income:           Service Charges on Deposit Accounts 3,197   3,142   2,633   6,339   5,493 Gain (Loss) on Sales of Securities (6)  80   (47)  74   (48)Gain on Sales of Loans 1,583   1,341   781   2,924   2,037 Other Income 9,193   9,487   11,048   18,680   20,159 Total Other Income 13,967   14,050   14,415   28,017   27,641             Other Expenses:           Salaries and Employee Benefits 33,120   33,039   28,317   66,159   57,814 Occupancy and Equipment Expense 8,279   8,122   7,162   16,401   14,518 Merger and Conversion-Related Expense 303   1,377   210   1,680   460 Other Expenses 17,823   14,933   15,517   32,756   28,992 Total Other Expenses 59,525   57,471   51,206   116,996   101,784             Income Before Income Taxes 30,295   29,496   28,026   59,791   53,845             Provision for Income Taxes 6,120   5,932   5,923   12,052   11,199             Net Income 24,175   23,564   22,103   47,739   42,646             Preferred Stock Dividends 1,350   1,350   1,350   2,700   2,700             Net Income Available to Common Shareholders$22,825  $22,214  $20,753  $45,039  $39,946             


 Business First Bancshares, Inc.Consolidated Net Interest Margin(Unaudited)                                     Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Average     Average     Average     Outstanding Interest Earned / Average Outstanding Interest Earned / Average Outstanding Interest Earned / Average(Dollars in thousands)Balance Interest Paid Yield / Rate Balance Interest Paid Yield / Rate Balance Interest Paid Yield / Rate                  Assets                                   Interest-Earning Assets:                 Total Loans$6,757,776  $111,780 6.63% $6,698,261  $109,146 6.61% $5,995,490  $104,028 6.96%Securities 1,068,191   9,104 3.42%  1,065,447   8,462 3.22%  937,099   6,906 2.96%Securities Purchased under Agreements to Resell 30,683   335 4.38%  26,657   302 4.59%  31,172   401 5.16%Interest-Bearing Deposit in Other Banks 509,177   4,431 3.49%  558,468   4,584 3.33%  336,138   3,515 4.19%Total Interest-Earning Assets 8,365,827   125,650 6.02%  8,348,833   122,494 5.95%  7,299,899   114,850 6.31%Allowance for Loan Losses (63,280)      (60,553)      (56,934)    Noninterest-Earning Assets 614,407       605,139       548,406     Total Assets$8,916,954  $125,650   $8,893,419  $122,494   $7,791,371  $114,850                                      Liabilities and Shareholders' Equity                                   Interest-Bearing Liabilities:                 Interest-Bearing Deposits$5,739,241  $41,251 2.88% $5,884,257  $42,758 2.95% $5,029,981  $41,546 3.31%Subordinated Debt 112,252   1,778 6.35%  92,163   1,209 5.32%  92,682   1,235 5.34%Subordinated Debt - Trust Preferred Securities 9,670   178 7.40%  11,671   165 5.73%  5,000   100 8.02%Advances from Federal Home Loan Bank (FHLB) 441,012   4,457 4.05%  297,588   3,038 4.14%  447,271   4,793 4.30%Other Borrowings 22,206   142 2.58%  20,030   129 2.61%  20,514   134 2.62%Total Interest-Bearing Liabilities 6,324,381   47,806 3.03%  6,305,709   47,299 3.04%  5,595,448   47,808 3.43%                  Noninterest-Bearing Liabilities:                 Noninterest-Bearing Deposits$1,518,400      $1,521,252      $1,292,262     Other Liabilities 71,223       72,491       65,847     Total Noninterest-Bearing Liabilities 1,589,623       1,593,743       1,358,109     Shareholders' Equity:                 Common Shareholders' Equity 931,020       922,037       765,884     Preferred Equity 71,930       71,930       71,930     Total Shareholders' Equity 1,002,950       993,967       837,814     Total Liabilities and Shareholders' Equity$8,916,954      $8,893,419      $7,791,371                       Net Interest Spread    2.99%     2.91%     2.88%Net Interest Income  $77,844     $75,195     $67,042  Net Interest Margin    3.73%     3.65%     3.68%                  Overall Cost of Funds    2.44%     2.45%     2.78%                  NOTE: Average outstanding balances are determined utilizing daily averages and an actual day count convention.
                  


 Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
                                 Six Months Ended
 June 30, 2026
 June 30, 2025
 Average
      Average
      Outstanding
 Interest Earned / Average
 Outstanding
 Interest Earned / Average
(Dollars in thousands)Balance
 Interest Paid Yield / Rate
 Balance
 Interest Paid Yield / Rate
                Assets                               Interest-Earning Assets:               Total Loans$6,728,183  $220,926 6.62% $5,983,870  $207,020 6.98%Securities1,066,827  17,566 3.32% 930,930  13,520 2.93%Securities Purchased under Agreements to Resell28,681  637 4.48% 40,950  1,052 5.18%Interest-Bearing Deposit in Other Banks533,687  9,015 3.41% 326,000  6,951 4.30%Total Interest-Earning Assets8,357,378  248,144 5.99% 7,281,750  228,543 6.33%Allowance for Loan Losses(61,924)      (55,829)     Noninterest-Earning Assets609,797       545,367      Total Assets$8,905,251  $248,144    $7,771,288  $228,543                                   Liabilities and Shareholders' Equity                               Interest-Bearing Liabilities:               Interest-Bearing Deposits$5,811,348  $84,009 2.92% $5,085,431  $83,985 3.33%Subordinated Debt102,263  2,998 5.91% 94,954  2,497 5.30%Subordinated Debt - Trust Preferred Securities10,665  332 6.27% 5,000  199 8.03%Advances from Federal Home Loan Bank (FHLB)369,696  7,495 4.09% 404,917  8,589 4.28%Other Borrowings21,124  271 2.59% 19,424  248 2.57%Total Interest-Bearing Liabilities6,315,096  95,105 3.04% 5,609,726  95,518 3.43%                Noninterest-Bearing Liabilities:               Noninterest-Bearing Deposits1,519,818       1,268,659      Other Liabilities71,854       66,503      Total Noninterest-Bearing Liabilities1,591,672       1,335,162      Shareholders' Equity:               Common Shareholders' Equity926,553       754,470      Preferred Equity71,930       71,930      Total Shareholders' Equity998,483       826,400      Total Liabilities and Shareholders' Equity$8,905,251       $7,771,288                      Net Interest Spread     2.95%      2.90%Net Interest Income   $153,039       $133,025   Net Interest Margin     3.69%      3.68%                Overall Cost of Funds     2.45%      2.80%                NOTE: Average outstanding balances are determined utilizing daily averages and an actual day count convention.                        


 Business First Bancshares, Inc.Non-GAAP Measures(Unaudited)           Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30,(Dollars in thousands, except per share data)2026
 2026
 2025
 2026
 2025
          Interest Income:         Interest income$125,650  $122,494  $114,850  $248,144  $228,543 Core interest income 125,650   122,494   114,850   248,144   228,543 Interest Expense:         Interest expense 47,806   47,299   47,808   95,105   95,518 Core interest expense 47,806   47,299   47,808   95,105   95,518 Provision for Credit Losses: (b)         Provision for credit losses 1,991   2,278   2,225   4,269   5,037 Core provision expense 1,991   2,278   2,225   4,269   5,037 Other Income:         Other income 13,967   14,050   14,415   28,017   27,641 Gain on former bank premises and equipment -   (28)  -   (28)  (155)(Gain) loss on sale of securities 6   (80)  47   (74)  48 Gain on sale of branch -   -   (3,360)  -   (3,360)Gain on extinguishment/redemption of debt (545)  -   -   (545)  (630)Core other income 13,428   13,942   11,102   27,370   23,544 Other Expense:         Other expense 59,525   57,471   51,206   116,996   101,784 Acquisition-related expenses (2) (1,169)  (2,227)  (570)  (3,396)  (1,249)Core conversion expenses -   -   (1,008)  -   (1,224)Core other expense 58,356   55,244   49,628   113,600   99,311 Pre-Tax Income: (a)         Pre-tax income 30,295   29,496   28,026   59,791   53,845 Gain on former bank premises and equipment -   (28)  -   (28)  (155)(Gain) loss on sale of securities 6   (80)  47   (74)  48 Gain on sale of branch -   -   (3,360)  -   (3,360)Gain on extinguishment/redemption of debt (545)  -   -   (545)  (630)Acquisition-related expenses (2) 1,169   2,227   570   3,396   1,249 Core conversion expenses -   -   1,008   -   1,224 Core pre-tax income 30,925   31,615   26,291   62,540   52,221 Provision for Income Taxes: (1)         Provision for income taxes 6,120   5,932   5,923   12,052   11,199 Tax on gain on former bank premises and equipment -   (6)  -   (6)  (33)Tax on (gain) loss on sale of securities 1   (17)  10   (16)  10 Tax on gain on sale of branch -   -   (833)  -   (833)Tax on gain on extinguishment/redemption of debt (115)  -   -   (115)  (133)Tax on acquisition-related expenses (2) 239   319   103   558   246 Tax on core conversion expenses -   -   213   -   259 Core provision for income taxes 6,245   6,228   5,416   12,473   10,715 Preferred Dividends:         Preferred dividends 1,350   1,350   1,350   2,700   2,700 Core preferred dividends 1,350   1,350   1,350   2,700   2,700 Net Income Available to Common Shareholders:         Net income available to common shareholders 22,825   22,214   20,753   45,039   39,946 Gain on former bank premises and equipment, net of tax -   (22)  -   (22)  (122)(Gain) loss on sale of securities, net of tax 5   (63)  37   (58)  38 Gain on sale of branch, net of tax -   -   (2,527)  -   (2,527)Gain on extinguishment/redemption of debt, net of tax (430)  -   -   (430)  (497)Acquisition-related expenses (2), net of tax 930   1,908   467   2,838   1,003 Core conversion expenses, net of tax -   -   795   -   965 Core net income available to common shareholders 23,330   24,037   19,525   47,367   38,806           Pre-tax, pre-provision earnings available to common shareholders (a+b) (3) 32,286   31,774   30,251   64,060   58,882 Gain on former bank premises and equipment -   (28)  -   (28)  (155)(Gain) loss on sale of securities 6   (80)  47   (74)  48 Gain on sale of branch -   -   (3,360)  -   (3,360)Gain on extinguishment/redemption of debt (545)  -   -   (545)  (630)Acquisition-related expenses (2) 1,169   2,227   570   3,396   1,249 Core conversion expenses -   -   1,008   -   1,224 Core pre-tax, pre-provision earnings$32,916  $33,893  $28,516  $66,809  $57,258           Average Diluted Common Shares Outstanding 32,763,608   32,785,554   29,586,975   32,778,199   29,500,061           Diluted Earnings Per Common Share:         Diluted earnings per common share$0.70  $0.68  $0.70  $1.37  $1.35 Gain on former bank premises and equipment, net of tax -   -   -   -   - (Gain) loss on sale of securities, net of tax -   -   -   -   - Gain on sale of branch, net of tax -   -   (0.09)  -   (0.09)Gain on extinguishment/redemption of debt, net of tax (0.01)  -   -   (0.01)  (0.02)Acquisition-related expenses (2), net of tax 0.02   0.05   0.02   0.09   0.04 Core conversion expenses, net of tax -   -   0.03   -   0.03 Core diluted earnings per common share$0.71  $0.73  $0.66  $1.45  $1.31           Pre-tax, pre-provision profit diluted earnings per common share$0.99  $0.97  $1.02  $1.95  $2.00 Gain on former bank premises and equipment -   -   -   -   (0.01)(Gain) loss on sale of securities -   -   -   -   - Gain on sale of branch -   -   (0.11)  -   (0.11)Gain on extinguishment/redemption of debt (0.02)  -   -   (0.02)  (0.02)Acquisition-related expenses (2) 0.04   0.06   0.02   0.10   0.04 Core conversion expenses -   -   0.03   -   0.04 Core pre-tax, pre-provision diluted earnings per common share$1.01  $1.03  $0.96  $2.03  $1.94           (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2026 and 2025. These rates approximated the marginal tax rates.(2) Includes merger and conversion-related expenses and salary and employee benefits.
(3) Before preferred dividends.
          


 Business First Bancshares, Inc.Non-GAAP Measures(Unaudited)             June 30, March 31, June 30,(Dollars in thousands, except per share data)2026
 2026
 2025
      Total Shareholders' (Common) Equity:     Total shareholders' equity$1,008,577  $991,176  $848,440 Preferred stock (71,930)  (71,930)  (71,930)Total common shareholders' equity 936,647   919,246   776,510 Goodwill (135,222)  (133,564)  (121,146)Core deposit and customer intangible (33,267)  (29,409)  (15,775)Total tangible common equity$768,158  $756,273  $639,589             Total Assets:     Total assets$8,903,506  $8,906,808  $7,948,294 Goodwill (135,222)  (133,564)  (121,146)Core deposit and customer intangible (33,267)  (29,409)  (15,775)Total tangible assets$8,735,017  $8,743,835  $7,811,373       Common shares outstanding 32,535,659   32,624,887   29,602,970       Book value per common share$28.79  $28.18  $26.23 Tangible book value per common share$23.61  $23.18  $21.61 Common equity to total assets 10.52%  10.32%  9.77%Tangible common equity to tangible assets 8.79%  8.65%  8.19%      


 Business First Bancshares, Inc.Non-GAAP Measures(Unaudited)           Three Months Ended Six Months Ended June 30, March 31, June 30, June 30, June 30,(Dollars in thousands, except per share data)2026
 2026
 2025
 2026
 2025
                    Total Quarterly Average Assets$8,916,954  $8,893,419  $7,791,371  $8,905,251  $7,771,288 Total Quarterly Average Common Equity$931,020  $922,037  $765,884  $926,553  $754,470           Net Income Available to Common Shareholders:         Net income available to common shareholders$22,825  $22,214  $20,753  $45,039  $39,946 Gain on former bank premises and equipment, net of tax -   (22)  -   (22)  (122)(Gain) loss on sale of securities, net of tax 5   (63)  37   (58)  38 Gain on sale of branch, net of tax -   -   (2,527)  -   (2,527)Gain on extinguishment/redemption of debt, net of tax (430)  -   -   (430)  (497)Acquisition-related expenses, net of tax 930   1,908   467   2,838   1,003 Core conversion expenses, net of tax -   -   795   -   965 Core net income available to common shareholders$23,330  $24,037  $19,525  $47,367  $38,806           Return to common shareholders on average assets (annualized) (2) 1.03%  1.01%  1.07%  1.02%  1.04%Core return on average assets (annualized) (2) 1.05%  1.10%  1.01%  1.07%  1.01%Return to common shareholders on average common equity (annualized) (2) 9.83%  9.77%  10.87%  9.80%  10.68%Core return on average common equity (annualized) (2) 10.05%  10.57%  10.23%  10.31%  10.37%          Interest Income:         Interest income$125,650  $122,494  $114,850  $248,144  $228,543 Core interest income 125,650   122,494   114,850   248,144   228,543 Interest Expense:         Interest expense 47,806   47,299   47,808   95,105   95,518 Core interest expense 47,806   47,299   47,808   95,105   95,518 Other Income:         Other income 13,967   14,050   14,415   28,017   27,641 Gain on former bank premises and equipment -   (28)  -   (28)  (155)(Gain) loss on sale of securities 6   (80)  47   (74)  48 Gain on sale of branch -   -   (3,360)  -   (3,360)Gain on extinguishment/redemption of debt (545)  -   -   (545)  (630)Core other income 13,428   13,942   11,102   27,370   23,544 Other Expense:         Other expense 59,525   57,471   51,206   116,996   101,784 Acquisition-related expenses (1,169)  (2,227)  (570)  (3,396)  (1,249)Core conversion expenses -   -   (1,008)  -   (1,224)Core other expense$58,356  $55,244  $49,628  $113,600  $99,311           Efficiency Ratio:         Other expense (a)$59,525  $57,471  $51,206  $116,996  $101,784 Core other expense (c)$58,356  $55,244  $49,628  $113,600  $99,311 Net interest and other income (1) (b)$91,817  $89,165  $81,504  $180,982  $160,714 Core net interest and other income (1) (d)$91,272  $89,137  $78,144  $180,409  $156,569 Efficiency ratio (a/b) 64.83%  64.45%  62.83%  64.65%  63.33%Core efficiency ratio (c/d) 63.94%  61.98%  63.51%  62.97%  63.43%          Total Average Interest-Earnings Assets$8,365,827  $8,348,833  $7,299,899  $8,357,378  $7,281,750           Net Interest Income:         Net interest income$77,844  $75,195  $67,042  $153,039  $133,025 Loan discount accretion (995)  (1,138)  (767)  (2,133)  (1,560)Net interest income excluding loan discount accretion$76,849  $74,057  $66,275  $150,906  $131,465           Net interest margin (2) 3.73%  3.65%  3.68%  3.69%  3.68%Net interest margin excluding loan discount accretion (2) 3.68%  3.60%  3.64%  3.64%  3.64%Net interest spread (2) 2.99%  2.91%  2.88%  2.95%  2.90%Net interest spread excluding loan discount accretion (2) 2.94%  2.85%  2.84%  2.90%  2.85%          (1) Excludes gains/losses on sales of securities.
(2) Calculated utilizing an actual day count convention.
          



Risks

  • Decrease in deposits by $229.4 million due to reductions in commercial money market accounts and brokered deposits, which may impact liquidity.
  • Moderate increase in net charge-offs and provision for credit losses, indicating some asset quality concerns, particularly in commercial real estate and commercial business relationships.
  • Reliance on successful integration of acquisitions and continued loan portfolio repositioning; execution risk remains with these strategic initiatives.

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