# Business First Bancshares, Inc. (BFST) Q2 2025 Financial Results Summary
**Release Date:** July 28, 2025
Business First Bancshares, Inc. (NASDAQ: BFST), the parent company of b1BANK, released its unaudited financial results for the second quarter ended June 30, 2025. Below is a summary of the key metrics and developments reported.
### Key Financial Highlights
– **Net Income:**
– $20.8 million or $0.70 per diluted common share, an increase of 8.35% in net income and 7.69% in diluted earnings per share compared to the linked quarter ended March 31, 2025.
– Core net income (non-GAAP) was $19.5 million, or $0.66 per diluted common share, which shows a small increase of 1.04% from the linked quarter.
– **Dividends Declared:**
– A quarterly preferred dividend of $18.75 per share (1.875% based on an annual rate of 7.50%).
– A quarterly common dividend of $0.14 per share, consistent with the previous quarter. Both dividends will be paid on August 31, 2025, to shareholders of record as of August 15, 2025.
### Performance Metrics
– **Return on Assets (ROA):**
– 1.07% for the quarter, up from 1.00% in the previous quarter.
– **Return on Common Equity (ROE):**
– 10.87%, increased from 10.48% in Q1 2025.
### Capital Strength
– **Equity Ratios:**
– Common equity to total assets rose from 9.69% to 9.77%.
– Tangible common equity to tangible assets increased from 8.06% to 8.19%, representing annualized growths of 6.47%.
– **Tangible Book Value:**
– Increased to $28.61 per share, reflecting a 3.70% growth compared to the linked quarter.
### Operational Highlights
– **Branch Optimization:**
– A branch in Kaplan, LA was sold, resulting in a net capital increase of $3.4 million and a predicted reduction of $750,000 in annual operating costs.
– **Core Processing Conversion:**
– Successfully transitioned core processing to Fidelity Information Systems (FIS) to enhance operational efficiency.
### Interest Income and Margin
– **Net Interest Income:**
– Totaled $67.0 million for the quarter, up from $66.0 million in the previous quarter.
– **Net Interest Margin (NIM):**
– Held steady at 3.68%, with a slight decrease in net interest spread from 2.91% to 2.88%.
### Loan Portfolio and Credit Quality
– **Loan Growth:**
– Loans held for investment increased by $66.7 million, representing a 1.12% rise (annualized growth 4.48%).
– **Credit Quality:**
– The ratio of nonperforming loans to loans held for investment increased by 28 basis points (bps) to 0.97%.
– The ratio of nonperforming assets to total assets rose by 21 bps to 0.76% compared to the linked quarter.
### Securities and Deposits
– **Securities Portfolio:**
– Increased by $5.9 million (0.64%) compared to the linked quarter.
– **Total Deposits:**
– Decreased by $38.5 million (0.60%) from the previous quarter, but rose by $12.1 million (0.19%) excluding the depletion from the Kaplan sale.
– Notably, noninterest-bearing deposits rose by $102.4 million (7.83%) while interest-bearing deposits saw a decline of $140.9 million (10.77%).
### Borrowing and Shareholder’s Equity
– **Borrowings:**
– Increased sharply by $179.0 million (41.25%) largely due to increased Federal Home Loan Bank advances.
– **Shareholder’s Equity:**
– Increased by $22.1 million (2.68%) during the quarter, with book value per common share rising from $25.51 to $26.23.
In summary, Business First Bancshares, Inc. demonstrated robust growth in earnings and maintained a healthy balance sheet in Q2 2025, while also announcing dividends and operational efficiencies. The upward trend in equity ratios and loan performance reflects strategic maneuvers for long-term stability and growth.
| (Dollars in thousands) | Three Months Ended | Six Months Ended | |||
|---|---|---|---|---|---|
| June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | |
| Interest and Fees on Loans | $104,028 | $102,992 | $90,604 | $207,020 | $176,551 |
| Interest and Dividends on Securities | $6,906 | $6,614 | $5,933 | $13,520 | $11,532 |
| Interest on Federal Funds Sold and Due From Banks | $3,916 | $4,088 | $3,333 | $8,003 | $7,798 |
| Total Interest Income | $114,850 | $113,693 | $99,870 | $228,543 | $195,881 |
| Interest on Deposits | $41,546 | $42,439 | $40,900 | $83,985 | $78,929 |
| Interest on Borrowings | $6,262 | $5,271 | $4,961 | $11,533 | $11,412 |
| Total Interest Expense | $47,808 | $47,710 | $45,861 | $95,518 | $90,341 |
| Net Interest Income | $67,042 | $65,983 | $54,009 | $133,025 | $105,540 |
| Provision for Credit Losses | $2,225 | $2,812 | $1,310 | $5,037 | $2,496 |
| Net Interest Income After Provision for Credit Losses | $64,817 | $63,171 | $52,699 | $127,988 | $103,044 |
| Service Charges on Deposit Accounts | $2,633 | $2,860 | $2,537 | $5,493 | $4,976 |
| (Loss) Gain on Sales of Securities | -$47 | -$1 | $0 | -$48 | -$1 |
| Gain on Sales of Loans | $781 | $1,256 | $2,460 | $2,037 | $2,599 |
| Other Income | $11,048 | $9,111 | $7,179 | $20,159 | $13,988 |
| Total Other Income | $14,415 | $13,226 | $12,176 | $27,641 | $21,562 |
| Salaries and Employee Benefits | $28,317 | $29,497 | $25,523 | $57,814 | $50,939 |
| Occupancy and Equipment Expense | $7,162 | $7,356 | $5,717 | $14,518 | $11,074 |
| Merger and Conversion-Related Expense | $210 | $250 | $409 | $460 | $749 |
| Other Expenses | $15,517 | $13,475 | $11,461 | $28,992 | $22,870 |
| Total Other Expenses | $51,206 | $50,578 | $43,110 | $101,784 | $85,632 |
| Income Before Income Taxes | $28,026 | $25,819 | $21,765 | $53,845 | $38,974 |
| Provision for Income Taxes | $5,923 | $5,276 | $4,559 | $11,199 | $8,198 |
| Net Income | $22,103 | $20,543 | $17,206 | $42,646 | $30,776 |
| Preferred Stock Dividends | $1,350 | $1,350 | $1,350 | $2,700 | $2,700 |
| Net Income Available to Common Shareholders | $20,753 | $19,193 | $15,856 | $39,946 | $28,076 |
| (Dollars in thousands) | June 30, 2025 | March 31, 2025 | June 30, 2024 |
|---|---|---|---|
| Cash and Due From Banks | $495,757 | $312,887 | $208,051 |
| Federal Funds Sold | $39,296 | $117,422 | $113,587 |
| Securities Purchased under Agreements to Resell | $25,433 | $50,589 | $0 |
| Securities Available for Sale, at Fair Values | $926,450 | $920,573 | $875,048 |
| Mortgage Loans Held for Sale | $677 | $0 | $680 |
| Loans and Lease Receivable | $6,047,650 | $5,980,919 | $5,162,852 |
| Allowance for Loan Losses | -$58,496 | -$56,863 | -$41,412 |
| Net Loans and Lease Receivable | $5,989,154 | $5,924,056 | $5,121,440 |
| Premises and Equipment, Net | $79,007 | $81,582 | $68,545 |
| Accrued Interest Receivable | $36,738 | $33,741 | $30,617 |
| Other Equity Securities | $48,736 | $40,947 | $38,805 |
| Other Real Estate Owned | $1,473 | $1,282 | $1,983 |
| Cash Value of Life Insurance | $118,707 | $117,950 | $100,684 |
| Deferred Taxes, Net | $25,222 | $25,289 | $25,888 |
| Goodwill | $121,146 | $121,691 | $91,527 |
| Core Deposit and Customer Intangibles | $15,775 | $16,538 | $10,849 |
| Other Assets | $24,723 | $20,181 | $16,185 |
| Total Assets | $7,948,294 | $7,784,728 | $6,703,889 |
| Noninterest-Bearing Deposits | $1,410,708 | $1,308,312 | $1,310,204 |
| Interest-Bearing Deposits | $5,008,943 | $5,149,869 | $4,253,466 |
| Total Deposits | $6,419,651 | $6,458,181 | $5,563,670 |
| Securities Sold Under Agreements to Repurchase | $22,557 | $19,046 | $18,445 |
| Federal Home Loan Bank Borrowings | $492,946 | $317,352 | $305,208 |
| Subordinated Debt | $92,645 | $92,702 | $99,875 |
| Subordinated Debt – Trust Preferred Securities | $5,000 | $5,000 | $5,000 |
| Accrued Interest Payable | $4,829 | $5,356 | $4,517 |
| Other Liabilities | $62,226 | $60,779 | $42,644 |
| Total Liabilities | $7,099,854 | $6,958,416 | $6,039,359 |
| Preferred Stock | $71,930 | $71,930 | $71,930 |
| Common Stock | $29,603 | $29,572 | $25,502 |
| Additional Paid-In Capital | $502,046 | $501,609 | $397,851 |
| Retained Earnings | $292,629 | $276,045 | $237,031 |
| Accumulated Other Comprehensive Loss | -$47,768 | -$52,844 | -$67,784 |
| Total Shareholders’ Equity | $848,440 | $826,312 | $664,530 |
