BFST Business First Bancshares Inc

Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended September 30, 2024, including net income available to common shareholders of $16.5 million or $0.65 per diluted common share, increases of $0.6 million and $0.03, respectively, compared to the linked quarter ended June 30, 2024. On a non-GAAP basis, core net income for the quarter ended September 30, 2024, which excludes certain income and expenses, was $17.2 million or $0.68 per diluted common share, increases of $1.0 million and $0.04, from the linked quarter.

"In the third quarter our team again demonstrated consistent improvement in fundamental performance,” said Jude Melville, chairman, president and CEO of Business First Bancshares. “Measured and productive growth, strengthened capital ratios, improved margins and increased income from newer non-spread-based lines of business, in addition to expense discipline of which I am especially proud, which positions us solidly to continue meeting our stakeholders’ expectations in coming quarters."

On Thursday, October 24, 2024, 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 third quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on November 30, 2024, or as soon thereafter as practicable, to the shareholders of record as of November 15, 2024.

Quarterly Highlights

• Net Interest Margin (NIM) Expansion. For the quarter ended September 30, 2024, net interest income totaled $56.1 million and net interest margin and net interest spread were 3.51% and 2.54%, respectively, compared to $54.0 million, 3.45% and 2.47% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.7 million) were 3.46% and 2.50% for the quarter ended September 30, 2024, compared to 3.34% and 2.37% (excluding loan discount accretion of $1.7 million) for the linked quarter.
• Noninterest Income Investments.   Business First continued to show signs of improvement in noninterest income revenue sources. For the quarter ended September 30, 2024, the newly formed customer swap business produced revenue of $0.9 million, an increase of $0.7 million when compared to the linked quarter.
• Measured Loan Growth. Loans held for investment increased $57.3 million or 1.11%, 4.41% annualized, from the linked quarter.
• Deposit Growth. During the quarter ended September 30, 2024, deposits increased $77.3 million or 1.39%, 5.53% annualized, compared to the linked quarter.
• Oakwood Acquisition. On October 1, 2024, Business First closed its previously announced acquisition of Oakwood Bancshares, Inc. (Oakwood) and its wholly-owned subsidiary, Oakwood Bank. Oakwood had approximately $863.6 million of total assets, $700.2 million of loans, and $741.3 million of deposits as of September 30, 2024.
• b1BANK President Appointment. N. Jerome “Jerry” Vascocu Jr. was promoted to the position of b1BANK president, effective October 16, 2024. Prior to his promotion to president of b1BANK, Jerry Vascocu served as b1BANK's executive vice president and chief administrative officer since joining the bank in 2022. Jude Melville, who previously served as president, retains the titles of chairman and chief executive officer of the bank.

Statement of Financial Condition

Loans

Loans held for investment increased $57.3 million or 1.11%, 4.41% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the commercial real estate portfolio of $58.3 million and $16.9 million in the C&D portfolio.

Production was led by the North Louisiana and New Orleans regions which accounted for approximately three-fourths of net loan growth from the linked quarter based on unpaid principal balance. Based on unpaid principal balances, Texas-based loans represent approximately 35% of the overall loan portfolio as of September 30, 2024, which was down from 36% from the linked quarter due to net paydowns in the quarter.

Credit Quality

Credit quality metrics remain solid, but some migration occurred during the quarter ended September 30, 2024, compared to the linked quarter. The ratio of nonperforming loans compared to loans held for investment increased 7 basis points to 0.50% at September 30, 2024, while the ratio of nonperforming assets compared to total assets increased 4 basis points to 0.40% at September 30, 2024. The increases were attributable to a $4.9 million increase in nonaccrual loans compared to the linked quarter.

Securities

The securities portfolio increased $41.0 million or 4.69%, from the linked quarter, impacted by $27.4 million in positive fair value adjustments. The securities portfolio, based on estimated fair value, represented 13.30% of total assets as of September 30, 2024.

Deposits

Deposits increased $77.3 million or 1.39%, 5.53% annualized, for the quarter ended September 30, 2024, compared to the linked quarter. During the same quarter, interest-bearing accounts drove the increase with $196.5 million in growth, offset by $119.3 million reduction in non-interest bearing accounts compared to the linked quarter.

The increase in interest-bearing deposits was largely attributable to a $160.8 million increase in money market accounts. The weighted average money market portfolio rate declined by 35 basis points from the linked quarter, from 4.22% to 3.87%.

Borrowings

Borrowings increased $65.0 million, or 15.17%, from the linked quarter due primarily to an additional short-term, 14-day Federal Home Loan Bank advance with a rate of 4.88% which matured on October 1, 2024, and was subsequently refinanced.

Shareholders’ Equity

Accumulated other comprehensive income (AOCI) increased $21.6 million, or 31.92%, during the third quarter due to positive after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $24.59 at September 30, 2024, compared to $23.24 at June 30, 2024, a 5.81% increase from the linked quarter. On a non-GAAP basis, tangible book value per common share increased from $19.22 at June 30, 2024, to $20.60 at September 30, 2024, a 7.18% increase from the linked quarter.

Results of Operations

Net Interest Income

For the quarter ended September 30, 2024, net interest income totaled $56.1 million, compared to $54.0 million from the linked quarter. Loan and interest-earning asset yields of 7.12% and 6.42%, respectively, increased 5 and 4 basis points, respectively, compared to 7.07% and 6.38% from the linked quarter. Both ratio increases were impacted by $1.0 million less in loan discount accretion. Net interest margin and net interest spread were 3.51% and 2.54% compared to 3.45% and 2.47% for the linked quarter. The overall cost of funds, which included noninterest-bearing deposits, remained stable at 3.07% from the linked quarter.

Non-GAAP net interest income (excluding loan discount accretion of $0.7 million) totaled $55.4 million for the quarter ended September 30, 2024, compared to $52.3 million (excluding loan discount accretion of $1.7 million) for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.7 million) were 3.46% and 2.50%, respectively, for the quarter ended September 30, 2024, compared to 3.34% and 2.37% (excluding loan discount accretion of $1.7 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 13 basis points to 7.07% from 6.94%, and interest earnings asset yields increased 10 basis points to 6.38% from 6.28%, compared to the linked quarter. Yield improvements were partially driven by Business First's increased production in its factoring portfolio.

Provision for Credit Losses

During the quarter ended September 30, 2024, Business First recorded a provision for credit losses of $1.7 million, compared to $1.3 million from the linked quarter. The current quarter’s reserve growth was largely attributable to net charge-offs, loan growth, changes in qualitative factors, and slight deterioration in the economic forecasts.

Other Income

For the quarter ended September 30, 2024, other income decreased $1.4 million or 11.51%, compared to the linked quarter. The net decrease was largely attributable to a $1.9 million gain on sale of a single, U.S. Small Business Administration (SBA) loan in the linked quarter, partially offset by an increase of $0.7 million in swap fee income for the quarter ended September 30, 2024.

Other Expenses

For the quarter ended September 30, 2024, other expenses decreased by $660,000 or 1.53%, compared to the linked quarter. The decrease was largely attributable to a $646,000 decrease in salaries and employee benefits due to lower self-insurance claims.

Excluding non-GAAP other expenses, Business First's core expenses decreased by $1.1 million from the linked quarter due to the previously mentioned $646,000 decrease in salaries and employee benefits and $511,000 in core conversion expenses attributable to Business First's core conversion scheduled for the second quarter of 2025.

Return on Assets and Common Equity

Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.97% and 10.76% for the quarter ended September 30, 2024, compared to 0.95% and 10.94%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.01% and 11.23% for the quarter ended September 30, 2024, compared to 0.98% and 11.22%, respectively, for the linked quarter. Returns on equity for the current quarter were offset by the large increase in AOCI compared to the linked quarter. Excluding the $13.2 million average AOCI increase during the quarter, the non-GAAP return on common equity for the quarter improved to 11.48%.

Conference Call and Webcast

Executive management will host a conference call and webcast to discuss results on Thursday, October 24, 2024, 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 5274174, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/a2ui6eo8. 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 $6.9 billion in assets, $6.9 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 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. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’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.

Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
		Three Months Ended
(Dollars in thousands)		September 30,2024			June 30,2024			September 30,2023
Balance Sheet Ratios
Loans (HFI) to Deposits			92.54	%		92.80	%		94.79	%
Shareholders' Equity to Assets Ratio			10.15	%		9.91	%		9.31	%
Loans Receivable Held for Investment (HFI)
Commercial		$	1,496,480		$	1,520,392		$	1,332,384
Real Estate:
Commercial			2,256,370			2,198,119			2,128,855
Construction			654,353			637,466			708,835
Residential			743,878			743,876			686,921
Total Real Estate			3,654,601			3,579,461			3,524,611
Consumer and Other			69,037			62,999			63,278
Total Loans (Held for Investment)		$	5,220,118		$	5,162,852		$	4,920,273
Allowance for Loan Losses
Balance, Beginning of Period		$	41,412		$	41,165		$	42,013
Charge-Offs - Quarterly			(1,424	)		(1,426	)		(2,423	)
Recoveries - Quarterly			295			91			685
Provision for Loan Losses - Quarterly			1,871			1,582			854
Balance, End of Period		$	42,154		$	41,412		$	41,129
Allowance for Loan Losses to Total Loans (HFI)			0.81	%		0.80	%		0.84	%
Allowance for Credit Losses to Total Loans (HFI)/(1)			0.86	%		0.86	%		0.90	%
Net Charge-Offs (Recoveries) to Average Quarterly Total Loans			0.02	%		0.03	%		0.04	%
Remaining Loan Purchase Discount		$	9,003		$	9,690		$	14,752
Nonperforming Assets
Nonperforming
Nonaccrual Loans		$	25,874		$	21,008		$	16,029
Loans Past Due 90 Days or More			185			1,355			247
Total Nonperforming Loans			26,059			22,363			16,276
Other Nonperforming Assets:
Other Real Estate Owned			1,787			1,983			1,558
Other Nonperforming Assets			—			—			—
Total other Nonperforming Assets			1,787			1,983			1,558
Total Nonperforming Assets		$	27,846		$	24,346		$	17,834
Nonperforming Loans to Total Loans (HFI)			0.50	%		0.43	%		0.33	%
Nonperforming Assets to Total Assets			0.40	%		0.36	%		0.27	%
(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										Nine Months Ended
(Dollars in thousands, except per share data)		September 30,2024			June 30,2024			September 30,2023				September 30,2024			September 30,2023
Per Share Data
Basic Earnings per Common Share		$	0.65		$	0.63		$	0.76			$	1.77		$	2.04
Diluted Earnings per Common Share			0.65			0.62			0.76				1.75			2.02
Dividends per Common Share			0.14			0.14			0.12				0.42			0.36
Book Value per Common Share			24.59			23.24			21.01				24.59			21.01
Average Common Shares Outstanding			25,289,094			25,265,495			25,111,548				25,227,319			25,064,856
Average Diluted Common Shares Outstanding			25,440,247			25,395,614			25,288,660				25,421,746			25,281,908
End of Period Common Shares Outstanding			25,519,501			25,502,175			25,344,168				25,519,501			25,344,168
Annualized Performance Ratios
Return to Common Shareholders on Average Assets (1)			0.97	%		0.95	%		1.17	%			0.89	%		1.09	%
Return to Common Shareholders on Average Common Equity (1)			10.76	%		10.94	%		14.16	%			10.08	%		13.00	%
Net Interest Margin (1)			3.51	%		3.45	%		3.61	%			3.43	%		3.66	%
Net Interest Spread (1)			2.54	%		2.47	%		2.68	%			2.46	%		2.79	%
Efficiency Ratio (2)			63.45	%		65.14	%		59.23	%			66.02	%		61.04	%
Total Quarterly/Year-to-Date Average Assets		$	6,788,644		$	6,711,173		$	6,474,935			$	6,722,716		$	6,290,886
Total Quarterly/Year-to-Date Average Common Equity			610,018			583,184			535,211				590,354			526,398
Other Expenses
Salaries and Employee Benefits		$	24,877		$	25,523		$	22,487			$	75,816		$	68,002
Occupancy and Bank Premises			2,630			2,634			2,428				7,778			7,131
Depreciation and Amortization			1,844			1,742			1,690				5,262			5,120
Data Processing			2,881			2,641			2,024				8,101			6,544
FDIC Assessment Fees			887			874			779				2,589			2,804
Legal and Other Professional Fees			873			1,042			766				2,781			2,340
Advertising and Promotions			1,057			966			1,202				3,168			3,576
Utilities and Communications			716			718			758				2,108			2,199
Ad Valorem Shares Tax			900			900			965				2,700			2,895
Directors' Fees			245			268			278				795			817
Other Real Estate Owned Expenses and Write-Downs			11			71			14				119			183
Merger and Conversion-Related Expenses			319			409			2				1,068			173
Other			5,210			5,322			5,214				15,797			15,204
Total Other Expenses		$	42,450		$	43,110		$	38,607			$	128,082		$	116,988
Other Income
Service Charges on Deposit Accounts		$	2,723		$	2,537		$	2,540			$	7,699		$	7,234
Loss on Sales of Securities			(13	)		—			—				(14	)		(62	)
Debit Card and ATM Fee Income			1,864			1,950			1,581				5,590			4,797
Bank-Owned Life Insurance Income			679			627			604				1,885			1,675
Gain on Sales of Loans			122			2,460			321				2,721			1,426
Mortgage Origination Income			98			35			108				202			238
Fees and Brokerage Commission			1,968			1,875			1,933				5,780			5,537
Gain on Sales of Other Real Estate Owned			(16	)		2			85				49			308
Losses on Disposal of Other Assets			—			(15	)		(23	)			(15	)		(14	)
Gain on Sale of Branch			—			—			932				—			932
Gain on Extinguishment of Debt			—			—			517				—			—
Swap Fee Income			937			285			—				1,451			1,458
Pass-Through Income (Loss) from Other Investments			335			392			(11	)			1,022			2,974
Other			2,077			2,028			1,296				5,966			3,726
Total Other Income		$	10,774		$	12,176		$	9,883			$	32,336		$	30,229
(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 (excluding security sales gains/losses) plus net interest income less gain/loss on sales of securities.

Business First Bancshares, Inc.
Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)		September 30,2024			June 30,2024			September 30,2023
Assets
Cash and Due From Banks		$	213,199		$	208,051		$	191,461
Federal Funds Sold			169,980			113,587			196,616
Securities Purchased under Agreements to Resell			25,879			—			—
Securities Available for Sale, at Fair Values			916,091			875,048			849,704
Mortgage Loans Held for Sale			—			680			652
Loans and Lease Receivable			5,220,118			5,162,852			4,920,273
Allowance for Loan Losses			(42,154	)		(41,412	)		(41,129	)
Net Loans and Lease Receivable			5,177,964			5,121,440			4,879,144
Premises and Equipment, Net			67,617			68,545			64,674
Accrued Interest Receivable			32,547			30,617			28,060
Other Equity Securities			39,555			38,805			32,591
Other Real Estate Owned			1,787			1,983			1,558
Cash Value of Life Insurance			101,362			100,684			95,906
Deferred Taxes, Net			20,852			25,888			34,660
Goodwill			91,527			91,527			88,391
Core Deposit and Customer Intangibles			10,326			10,849			12,418
Other Assets			19,963			16,185			12,946
Total Assets		$	6,888,649		$	6,703,889		$	6,488,781
Liabilities
Deposits
Noninterest-Bearing		$	1,190,942		$	1,310,204		$	1,412,406
Interest-Bearing			4,450,004			4,253,466			3,778,317
Total Deposits			5,640,946			5,563,670			5,190,723
Securities Sold Under Agreements to Repurchase			21,529			18,445			23,245
Bank Term Funding Program			—			—			300,009
Federal Home Loan Bank Borrowings			367,202			305,208			214,184
Subordinated Debt			99,818			99,875			100,048
Subordinated Debt - Trust Preferred Securities			5,000			5,000			5,000
Accrued Interest Payable			3,752			4,517			11,188
Other Liabilities			50,878			42,644			4,018
Total Liabilities			6,189,125			6,039,359			5,884,415
Shareholders' Equity
Preferred Stock			71,930			71,930			71,930
Common Stock			25,520			25,502			25,344
Additional Paid-In Capital			398,237			397,851			396,121
Retained Earnings			249,981			237,031			205,207
Accumulated Other Comprehensive Loss			(46,144	)		(67,784	)		(94,236	)
Total Shareholders' Equity			699,524			664,530			604,366
Total Liabilities and Shareholders' Equity		$	6,888,649		$	6,703,889		$	6,488,781

Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
		Three Months Ended									Nine Months Ended
(Dollars in thousands)		September 30,2024			June 30,2024			September 30,2023			September 30,2024			September 30,2023
Interest Income:
Interest and Fees on Loans		$	93,307		$	90,604		$	84,575		$	269,858		$	237,566
Interest and Dividends on Securities			6,417			5,933			5,053			17,949			14,932
Interest on Federal Funds Sold and Due From Banks			3,017			3,333			3,694			10,815			6,164
Total Interest Income			102,741			99,870			93,322			298,622			258,662
Interest Expense:
Interest on Deposits			41,303			40,900			30,110			120,232			72,718
Interest on Borrowings			5,324			4,961			7,918			16,736			24,575
Total Interest Expense			46,627			45,861			38,028			136,968			97,293
Net Interest Income			56,114			54,009			55,294			161,654			161,369
Provision for Credit Losses			1,665			1,310			604			4,161			4,364
Net Interest Income After Provision for Credit Losses			54,449			52,699			54,690			157,493			157,005
Other Income:
Service Charges on Deposit Accounts			2,723			2,537			2,540			7,699			7,234
Loss on Sales of Securities			(13	)		—			—			(14	)		(62	)
Gain on Sales of Loans			122			2,460			321			2,721			1,426
Other Income			7,942			7,179			7,022			21,930			21,631
Total Other Income			10,774			12,176			9,883			32,336			30,229
Other Expenses:
Salaries and Employee Benefits			24,877			25,523			22,487			75,816			68,002
Occupancy and Equipment Expense			5,828			5,717			5,445			16,902			15,558
Merger and Conversion-Related Expense			319			409			2			1,068			173
Other Expenses			11,426			11,461			10,673			34,296			33,255
Total Other Expenses			42,450			43,110			38,607			128,082			116,988
Income Before Income Taxes			22,773			21,765			25,966			61,747			70,246
Provision for Income Taxes			4,930			4,559			5,511			13,128			15,027
Net Income			17,843			17,206			20,455			48,619			55,219
Preferred Stock Dividends			1,351			1,350			1,351			4,051			4,051
Net Income Available to Common Shareholders		$	16,492		$	15,856		$	19,104		$	44,568		$	51,168

Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
	Three Months Ended
	September 30, 2024									June 30, 2024									September 30, 2023
(Dollars in thousands)	Average Outstanding Balance			Interest Earned/Interest Paid			Average Yield/Rate			Average Outstanding Balance			Interest Earned/Interest Paid			Average Yield/Rate			Average Outstanding Balance			Interest Earned/Interest Paid			Average Yield/Rate
Assets
Interest Earning Assets:
Total Loans	$	5,212,948		$	93,307		7.12	%		$	5,153,642		$	90,604		7.07	%		$	4,906,917		$	84,575		6.84	%
Securities		924,012			6,417		2.76	%			891,384			5,933		2.68	%			885,792			5,053		2.26	%
Interest-Bearing Deposit in Other Banks		227,035			3,017		5.29	%			246,590			3,333		5.44	%			278,420			3,694		5.26	%
Total Interest Earning Assets		6,363,995			102,741		6.42	%			6,291,616			99,870		6.38	%			6,071,129			93,322		6.10	%
Allowance for Loan Losses		(41,554	)								(41,450	)								(42,120	)
Noninterest- Earning Assets		466,203									461,007									445,926
Total Assets	$	6,788,644		$	102,741					$	6,711,173		$	99,870					$	6,474,935		$	93,322
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Deposits	$	4,308,780		$	41,303		3.81	%		$	4,268,207		$	40,900		3.85	%		$	3,703,682		$	30,110		3.23	%
Subordinated Debt		99,854			1,353		5.39	%			99,913			1,354		5.45	%			100,400			1,363		5.39	%
Subordinated Debt - Trust Preferred Securities		5,000			114		9.07	%			5,000			113		9.09	%			5,000			111		8.81	%
Bank Term Funding Program		—			—		—	%			—			—		—	%			300,000			3,422		4.53	%
Advances from Federal Home Loan Bank (FHLB)		347,476			3,723		4.26	%			324,691			3,372		4.18	%			284,930			2,875		4.00	%
Other Borrowings		20,971			134		2.54	%			19,164			122		2.56	%			23,542			147		2.48	%
Total Interest-Bearing Liabilities	$	4,782,081		$	46,627		3.88	%		$	4,716,975		$	45,861		3.91	%		$	4,417,554		$	38,028		3.42	%
Noninterest-Bearing Liabilities:
Noninterest-Bearing Deposits	$	1,269,282								$	1,297,085								$	1,399,293
Other Liabilities		55,333									41,999									50,947
Total Noninterest-Bearing Liabilities		1,324,615									1,339,084									1,450,240
Shareholders' Equity:
Common Shareholders' Equity		610,018									583,184									535,211
Preferred Equity		71,930									71,930									71,930
Total Shareholders' Equity		681,948									655,114									607,141
Total Liabilities and Shareholders' Equity	$	6,788,644								$	6,711,173								$	6,474,935
Net Interest Spread							2.54	%								2.47	%								2.68	%
Net Interest Income				$	56,114								$	54,009								$	55,294
Net Interest Margin							3.51	%								3.45	%								3.61	%
Overall Cost of Funds							3.07	%								3.07	%								2.59	%
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
(Dollars in thousands)	September 30, 2024									September 30, 2023
	Average Outstanding Balance			Interest Earned/Interest Paid			Average Yield/Rate			Average Outstanding Balance			Interest Earned/Interest Paid			Average Yield/Rate
Assets
Interest Earning Assets:
Total Loans	$	5,131,474		$	269,858		7.02	%		$	4,829,537		$	237,566		6.58	%
Securities		901,525			17,949		2.66	%			909,901			14,932		2.19	%
Interest-Bearing Deposit in Other Banks		267,815			10,815		5.39	%			150,995			6,164		5.46	%
Total Interest Earning Assets		6,300,814			298,622		6.33	%			5,890,433			258,662		5.87	%
Allowance for Loan Losses		(41,178	)								(41,888	)
Noninterest- Earning Assets		463,080									442,341
Total Assets	$	6,722,716		$	298,622					$	6,290,886		$	258,662
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Deposits	$	4,216,866		$	120,232		3.81	%		$	3,482,797		$	72,718		2.79	%
Subordinated Debt		99,913			4,063		5.43	%			106,555			4,003		5.02	%
Subordinated Debt - Trust Preferred Securities		5,000			340		9.08	%			5,000			317		8.48	%
Bank Term Funding Program		86,496			2,788		4.31	%			238,274			8,111		4.55	%
Advances from Federal Home Loan Bank (FHLB)		298,735			9,189		4.11	%			368,542			11,755		4.26	%
Other Borrowings		18,758			356		2.54	%			22,177			389		2.35	%
Total Interest-Bearing Liabilities	$	4,725,768		$	136,968		3.87	%		$	4,223,345		$	97,293		3.08	%
Noninterest-Bearing Liabilities:
Noninterest-Bearing Deposits	$	1,283,035								$	1,427,821
Other Liabilities		51,629									41,392
Total Noninterest-Bearing Liabilities		1,334,664									1,469,213
Shareholders' Equity:
Common Shareholders' Equity		590,354									526,398
Preferred Equity		71,930									71,930
Total Shareholders' Equity		662,284									598,328
Total Liabilities and Shareholders' Equity	$	6,722,716								$	6,290,886
Net Interest Spread							2.46	%								2.79	%
Net Interest Income				$	161,654								$	161,369
Net Interest Margin							3.43	%								3.66	%
Overall Cost of Funds							3.04	%								2.30	%
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										Nine Months Ended
(Dollars in thousands, except per share data)	September 30,2024			June 30,2024			September 30,2023				September 30,2024			September 30,2023
Interest Income:
Interest income	$	102,741		$	99,870		$	93,322			$	298,622		$	258,662
Core interest income		102,741			99,870			93,322				298,622			258,662
Interest Expense:
Interest expense		46,627			45,861			38,028				136,968			97,293
Core interest expense		46,627			45,861			38,028				136,968			97,293
Provision for Credit Losses: (b)
Provision for credit losses		1,665			1,310			604				4,161			4,364
Core provision expense		1,665			1,310			604				4,161			4,364
Other Income:
Other income		10,774			12,176			9,883				32,336			30,229
Gain on former bank premises and equipment		—			—			—				(50	)		—
Losses on sale of securities		13			—			—				14			62
Gain on sale of branch		—			—			(932	)			—			(932	)
Gain on extinguishment of debt		—			—			(517	)			—			(1,458	)
Core other income		10,787			12,176			8,434				32,300			27,901
Other Expense:
Other expense		42,450			43,110			38,607				128,082			116,988
Acquisition-related expenses (2)		(319	)		(419	)		(2	)			(1,453	)		(173	)
Core conversion expenses		(511	)		—			—				(511	)		—
Core other expense		41,620			42,691			38,605				126,118			116,815
Pre-Tax Income: (a)
Pre-tax income		22,773			21,765			25,966				61,747			70,246
Gain on former bank premises and equipment		—			—			—				(50	)		—
Losses on sale of securities		13			—			—				14			62
Gain on sale of branch		—			—			(932	)						(932	)
Gain on extinguishment of debt		—			—			(517	)			—			(1,458	)
Acquisition-related expenses (2)		319			419			2				1,453			173
Core conversion expenses		511			—			—				511			—
Core pre-tax income		23,616			22,184			24,519				63,675			68,091
Provision for Income Taxes: (1)
Provision for income taxes		4,930			4,559			5,511				13,128			15,027
Tax on losses on former bank premises and equipment		—			—			—				(11	)		—
Tax on losses on sale of securities		3			—			—				3			13
Tax on gain on sale of branch		—			—			(197	)			—			(197	)
Gain on extinguishment of debt		—			—			(109	)			—			(308	)
Tax on acquisition-related expenses (2)		—			2			—				91			20
Tax on core conversion expenses		108			—			—				108			—
Core provision for income taxes		5,041			4,561			5,205				13,319			14,555
Preferred Dividends:
Preferred dividends		1,351			1,350			1,351				4,051			4,051
Core preferred dividends		1,351			1,350			1,351				4,051			4,051
Net Income Available to Common Shareholders:
Net income available to common shareholders		16,492			15,856			19,104				44,568			51,168
Losses on former bank premises and equipment, net of tax		—			—			—				(39	)		—
Losses on sale of securities, net of tax		10			—			—				11			49
Gain on sale of branch					—			(735	)						(735	)
Gain on extinguishment of debt, net of tax		—			—			(408	)			—			(1,150	)
Acquisition-related expenses (2), net of tax		319			417			2				1,362			153
Core conversion expenses, net of tax		403			—			—				403			—
Core net income available to common shareholders	$	17,224		$	16,273		$	17,963			$	46,305		$	49,485
Pre-tax, pre-provision earnings available to common shareholders (a+b)	$	24,438		$	23,075		$	26,570			$	65,908		$	74,610
Losses on former bank premises and equipment		—			—			—				(50	)		—
Loss on sale of securities		13			—			—				14			62
Gain on sale of branch					—			(932	)						(932	)
Gain on extinguishment of debt		—			—			(517	)			—			(1,458	)
Acquisition-related expenses (2)		319			419			2				1,453			173
Occupancy and bank premises - storm repair		511			—			—				511			—
Core pre-tax, pre-provision earnings	$	25,281		$	23,494		$	25,123			$	67,836		$	72,455
Average Diluted Common Shares Outstanding		25,440,247			23,395,614			25,288,660				25,421,746			25,281,908
Diluted Earnings Per Common Share:
Diluted earnings per common share	$	0.65		$	0.62		$	0.76			$	1.75		$	2.02
Losses on former bank premises and equipment, net of tax		—			—			—				—			—
Loss on sale of securities, net of tax		—			—			—				—			—
Gain on sale of branch, net of tax		—			—			(0.03	)			—			(0.03	)
Gain on extinguishment of debt, net of tax		—			—			(0.02	)			—			(0.04	)
Acquisition-related expenses (2), net of tax		0.01			0.02			—				0.05			0.01
Core conversion expenses,net of tax		0.02			—			—				0.02			—
Core diluted earnings per common share	$	0.68		$	0.64		$	0.71			$	1.82		$	1.96
Pre-tax, pre-provision profit diluted earnings per common share	$	0.96		$	0.91		$	1.05			$	2.59		$	2.95
Losses on former bank premises and equipment		—			—			—				—			—
Loss on sale of securities		—			—			—				—			—
Gain on sale of branch		—			—			(0.04	)			—			(0.04	)
Gain on extinguishment of debt		—			—			(0.02	)			—			(0.06	)
Acquisition-related expenses (2)		0.01			0.02			—				0.06			0.01
Core converison expenses		0.02			—			—				0.02			—
Core pre-tax, pre-provision diluted earnings per common share	$	0.99		$	0.93		$	0.99			$	2.67		$	2.86
(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2024 and 2023. These rates approximated the marginal tax rates.
(2) Includes merger and conversion-related expenses and salary and employee benefits.

Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
(Dollars in thousands, except per share data)	September 30,2024			June 30,2024			September 30,2023
Total Shareholders' (Common) Equity:
Total shareholders' equity	$	699,524		$	664,530		$	604,366
Preferred stock		(71,930	)		(71,930	)		(71,930	)
Total common shareholders' equity		627,594			592,600			532,436
Goodwill		(91,527	)		(91,527	)		(88,391	)
Core deposit and customer intangible		(10,326	)		(10,849	)		(12,418	)
Total tangible common equity	$	525,741		$	490,224		$	431,627
Total Assets:
Total assets	$	6,888,649		$	6,703,889		$	6,488,781
Goodwill		(91,527	)		(91,527	)		(88,391	)
Core deposit and customer intangible		(10,326	)		(10,849	)		(12,418	)
Total tangible assets	$	6,786,796		$	6,601,513		$	6,387,972
Common shares outstanding		25,519,501			25,502,175			25,344,168
Book value per common share	$	24.59		$	23.24		$	21.01
Tangible book value per common share	$	20.60		$	19.22		$	17.03
Common equity to total assets		9.11	%		8.84	%		8.21	%
Tangible common equity to tangible assets		7.75	%		7.43	%		6.76	%

Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
	Three Months Ended										Nine Months Ended
(Dollars in thousands, except per share data)	September 30,2024			June 30,2024			September 30,2023				September 30,2024			September 30,2023
Total Quarterly Average Assets	$	6,788,644		$	6,711,173		$	6,474,935			$	6,722,716		$	6,290,886
Total Quarterly Average Common Equity	$	610,018		$	583,184		$	535,211			$	590,354		$	526,398
Net Income Available to Common Shareholders:
Net income available to common shareholders	$	16,492		$	15,856		$	19,104			$	44,568		$	51,168
Gain on former bank premises and equipment, net of tax		—			—			—				(39	)		—
Loss on sale of securities, net of tax		10			—			—				11			49
Gain on sale of branch, net of tax		—			—			(735	)			—			(735	)
Gain on extinguishment of debt, net of tax		—			—			(408	)			—			(1,150	)
Acquisition-related expenses, net of tax		319			417			2				1,362			153
Core conversion expenses, net of tax		403			—			—				403			—
Core net income available to common shareholders	$	17,224		$	16,273		$	17,963			$	46,305		$	49,485
Return to common shareholders on average assets (annualized) (2)		0.97	%		0.95	%		1.17	%			0.89	%		1.09	%
Core return on average assets (annualized) (2)		1.01	%		0.98	%		1.10	%			0.92	%		1.05	%
Return to common shareholders on average common equity (annualized) (2)		10.76	%		10.94	%		14.16	%			10.08	%		13.00	%
Core return on average common equity (annualized) (2)		11.23	%		11.22	%		13.32	%			10.48	%		12.57	%
Interest Income:
Interest income	$	102,741		$	99,870		$	93,322			$	298,622		$	258,662
Core interest income		102,741			99,870			93,322				298,622			258,662
Interest Expense:
Interest expense		46,627			45,861			38,028				136,968			97,293
Core interest expense		46,627			45,861			38,028				136,968			97,293
Other Income:
Other income		10,774			12,176			9,883				32,336			30,229
Gain on former bank premises and equipment		—			—			—				(50	)		—
Loss on sale of securities		13			—			—				14			62
Gain on sale of branch		—			—			(932	)			—			(932	)
Gain on extinguishment of debt		—			—			(517	)	—		—			(1,458	)
Core other income		10,787			12,176			8,434				32,300			27,901
Other Expense:
Other expense		42,450			43,110			38,607				128,082			116,988
Acquisition-related expenses		(319	)		(419	)		(2	)			(1,453	)		(173	)
Core conversion expenses		(511	)		—			—				(511	)		—
Core other expense	$	41,620		$	42,691		$	38,605			$	126,118		$	116,815
Efficiency Ratio:
Other expense (a)	$	42,450		$	43,110		$	38,607			$	128,082		$	116,988
Core other expense (c)	$	41,620		$	42,691		$	38,605			$	126,118		$	116,815
Net interest and other income (1) (b)	$	66,901		$	66,185		$	65,177			$	194,004		$	191,660
Core net interest and other income (1) (d)	$	66,901		$	66,185		$	63,728			$	193,954		$	189,270
Efficiency ratio (a/b)		63.45	%		65.14	%		59.23	%			66.02	%		61.04	%
Core efficiency ratio (c/d)		62.21	%		64.50	%		60.58	%			65.02	%		61.72	%
Total Average Interest-Earnings Assets	$	6,363,995		$	6,291,616		$	6,071,129			$	6,300,814		$	5,890,433
Net Interest Income:
Net interest income	$	56,114		$	54,009		$	55,294			$	161,654		$	161,369
Loan discount accretion	$	(705	)	$	(1,695	)	$	(2,419	)		$	(3,185	)	$	(7,390	)
Net interest income excluding loan discount accretion	$	55,409		$	52,314		$	52,875			$	158,469		$	153,979
Net interest margin (2)		3.51	%		3.45	%		3.61	%			3.43	%		3.66	%
Net interest margin excluding loan discount accretion (2)		3.46	%		3.34	%		3.46	%			3.36	%		3.49	%
Net interest spread (2)		2.54	%		2.47	%		2.68	%			2.46	%		2.79	%
Net interest spread excluding loan discount accretion (2)		2.50	%		2.37	%		2.53	%			2.39	%		2.62	%
(1) Excludes gains/losses on sales of securities.
(2) Calculated utilizing an actual day count convention.

Misty Albrechtb1BANK225.286.7879Misty.Albrecht@b1BANK.com