"It was a busy and productive start of the year for b1BANK," said Jude Melville, chairman, president, and CEO of Business First. "Quantitatively, we continued generating consistent profitability, increased our capital ratios and strengthened our liquidity positioning. Qualitatively, we added a large number of strong teammates through consummation of the Progressive Bank acquisition, the addition of a number of seasoned, respected bankers in Houston, and our partnership with Covecta, with whom we are working on building out Agentic AI capabilities. I'm also proud of our team's self-managed subordinated-debt issuance through our network of community bank partners. All these deepening partnerships bode well for the continued building of shareholder value over the course of 2026."
On Thursday, April 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 first quarter in the amount of $0.15 per share of common stock. The preferred and common dividends will be paid on May 29, 2026, or as soon thereafter as practicable, to the shareholders of record as of May 15, 2026.
Quarterly Highlights
Consistent Core Performance. Return to common shareholders on average assets, on an annualized basis, was 1.01% for the quarter ended March 31, 2026, or 1.10% on a non-GAAP basis, compared to 1.04% or 1.16% on a non-GAAP basis for the linked quarter.
Progressive Acquisition. On January 1, 2026, Business First closed its previously announced acquisition of Progressive and its wholly-owned subsidiary, Progressive Bank. Progressive had approximately $773.8 million of total assets, $589.7 million of net loans, and $684.9 million of deposits as of December 31, 2025. Business First does not anticipate material synergies to be reflected in its earnings until after conversion in the third quarter. b1BANK added nine banking centers in North Louisiana as a result of the Progressive acquisition.
Meaningful Production Additions. On January 15, 2026, Business First announced the hiring of a new regional president to the Houston, Texas market and head of private banking. This individual joined b1BANK from Veritex Community Bank, where he served as senior vice president and Houston market president. Prior to his tenure at Veritex, he had been with Comerica Bank for nearly 20 years in leadership roles across private banking, middle market, and wealth management. By quarter-end, we successfully added four producers and three production support staff to the new Houston team.
New Technology Partnership. On February 17, 2026, b1BANK and Covecta announced a strategic partnership to deploy agentic AI across the bank's day to day workflows. The collaboration focuses on streamlining and automating repeatable, policy-driven activities across core deposit and loan operational processes, reducing manual effort and operational friction so that teams can devote more time towards higher value-adding work including analysis, exception handling and customer engagement.
Improving Shareholder Value. During the first quarter, as part of a previously announced stock repurchase program, Business First repurchased 99,105 shares, with a market value of $2.7 million, at a weighted average price of $27.75 per share. Common equity to total assets increased from 10.04% to 10.32%. Tangible common equity to tangible assets increased from 8.53% to 8.65%, 1.37% or 5.57% annualized, compared to the linked quarter. Book value per common share increased to $28.18 at March 31, 2026, compared to $27.95 at Dec. 31, 2025. On a non-GAAP basis, tangible book value per common share decreased from $23.36 at the linked quarter to $23.18 at March 31, 2026, -0.76% or -3.08% annualized.
Notable Subsequent Events. On April 2, 2026, Business First issued $85.0 million in aggregate principal amount of 6.50% fixed-to-floating rate subordinated notes due 2036. The subordinated notes were issued to certain qualified institutional and accredited investors in a private placement transaction that was exempt from registration under the Securities Act of 1933, as amended. This capital raise represented Business First's third fully self-managed private placement, and was executed entirely with in-house capabilities. Partial use of proceeds were allocated to redeeming Business First's $66.9 million subordinated debt outstanding as of March 31, 2026.
Statement of Financial Condition
Loans
Loans held for investment increased $494.8 million or 7.99%, 32.42% annualized, compared to the linked quarter. Excluding acquired loan balances from Progressive, loans declined $102.7 million or 1.54%, 6.15% annualized. Excluding acquired Progressive loans, organic commercial and commercial real estate loan portfolios decreased $58.6 million and $23.0 million, respectively, compared to the linked quarter. Texas-based loans represented approximately 35% of the overall loan portfolio as of March 31, 2026, based on unpaid principal balance.
Credit Quality
The ratio of nonperforming loans compared to loans held for investment increased 29 basis points (bps) to 1.53% at March 31, 2026, while the ratio of nonperforming assets compared to total assets increased 29 bps to 1.38% compared to the linked quarter. Past due loans greater than 30 days declined by 22 bps to $28.1 million, or 0.42%, down from $39.5 million, or 0.64% compared to the linked quarter. The increases 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 expects to resolve during second and third quarters of this year. Net charge-offs to average quarterly total loans declined to just 1 bps for the quarter ended March 31, 2026, down from 11 bps from the linked quarter.
Securities
The securities portfolio increased $56.6 million or 5.72%, from the linked quarter. This increase was impacted by Progressive securities, partially offset by $5.9 million in negative pre-tax fair value adjustments. Excluding the $45.8 million acquired Progressive securities as of January 1, 2026, and excluding the negative swing in fair value adjustments, available-for-sale securities increased $16.6 million from the prior quarter on a net basis. The securities portfolio, based on estimated fair value, represented 11.74% of total assets as of March 31, 2026.
Deposits
Deposits increased $766.4 million or 11.44%, 46.40% annualized, compared to the linked quarter. Excluding acquired deposit balances from Progressive of $684.9 million, organic deposit growth was $81.5 million or 1.1%, or 4.4% annualized. Average interest-bearing deposits increased $659.0 million or 12.61%, and noninterest-bearing deposits increased $191.2 million or 14.38% from the linked quarter.
During the first quarter, interest-bearing deposits increased $513.3 million or 9.55% and noninterest bearing deposits increased $253.0 million or 19.14%. The increase in interest-bearing deposits was largely impacted by approximately $325 million in commercial money market accounts and $185 million in personal money market.
Borrowings
Borrowings decreased $166.8 million or -30.26%, from the linked quarter due primarily to decreases in short-term Federal Home Loan Bank advances.
Shareholders' Equity
Shareholders' equity increased $94.3 million or 10.51% compared to the linked quarter. Accumulated other comprehensive income (AOCI) decreased from ($33.3) million to ($37.9) million or 13.89%, during the quarter due to after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $28.18 at March 31, 2026, compared to $27.95 at December 31, 2025. On a non-GAAP basis, tangible book value per common share decreased from $23.36 at the linked quarter to $23.18 at March 31, 2026, -0.76% or -3.08% annualized.
Results of Operations
Net Interest Income
For the quarter ended March 31, 2026, net interest income totaled $75.2 million, compared to $70.9 million from the linked quarter. Loan yields decreased 27 bps to 6.61% compared to 6.88% from the linked quarter and interest-bearing asset yields decreased 22 bps to 5.95% compared to 6.17% from the linked quarter. Net interest margin and net interest spread were 3.65% and 2.91% compared to 3.71% and 2.92% for the linked quarter. The overall cost of funds, which included noninterest-bearing deposits, decreased 19 bps from 2.64% to 2.45% for the quarter ended March 31, 2026.
Non-GAAP net interest income (excluding loan discount accretion of $1.1 million) totaled $74.1 million for the quarter ended March 31, 2026, compared to $69.4 million (excluding loan discount accretion of $1.4 million) for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.1 million) were 3.60% and 2.85%, respectively, for the quarter ended March 31, 2026, compared to 3.64% and 2.84% (excluding loan discount accretion of $1.4 million) for the linked quarter.
Provision for Credit Losses
During the quarter ended March 31, 2026, Business First recorded a provision for credit losses of $2.3 million, compared to $3.1 million from the linked quarter. The current quarter's provision was largely impacted by an increase in outstanding lending commitments, including from Progressive, and required provision totaling $0.9 million. The remaining provision expense was related to net charge-offs and incremental provision on non-performing credits of $0.9 and $0.4 million, respectively. At March 31, 2026, the ratio of allowance for credit losses to loans held for investment ratio was 1.03%, compared to 0.94% for the linked quarter. The increase in the reserve ratio was largely attributable to the acquired Progressive loan portfolio and the Company's early adoption of ASU 2025-08, which requires the gross presentation of acquired loan loss estimates.
Other Income
For the quarter ended March 31, 2026, other income increased $1.8 million or 14.88%, compared to the linked quarter. The increase was largely attributable to growth of $0.6 million in gain on sales of loans.
Other Expenses
For the quarter ended March 31, 2026, other expenses increased $5.1 million or 9.65% compared to the linked quarter. The increase was largely attributable to a $2.6 million increase in salaries and employee benefits, a $1.3 million in occupancy and equipment, $0.8 million in other expenses and $0.5 million in data processing fees.
Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 1.01% and 9.77% for the quarter ended March 31, 2026, compared to 1.04% and 10.18%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.10% and 10.57% for the quarter ended March 31, 2026, compared to 1.16% and 11.40%, for the linked quarter.
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Monday, April 27, 2026, at 9:00 a.m. Central Time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 4364723, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/6n7xau4t. 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, $5.7 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 Relation Contact:
Gregory Robertson337.721.2701[email protected]
Matt Sealy225.388.6116[email protected]
Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)
Three Months Ended
March 31,
December 31,
March 31,
(Dollars in thousands)
2026
2025
2025
Balance Sheet Ratios
Loans (HFI) to Deposits
89.54
%
92.40
%
92.61
%
Shareholders' Equity to Assets Ratio
11.13
%
10.92
%
10.61
%
Loans Receivable Held for Investment (HFI)
Commercial
$
1,943,412
$
1,921,833
$
1,862,176
Real Estate:
Commercial
2,841,626
2,611,279
2,472,121
Construction
685,817
639,069
633,698
Residential
1,141,220
944,065
934,357
Total Real Estate
4,668,663
4,194,413
4,040,176
Consumer and Other
72,188
73,244
78,567
Total Loans (Held for Investment)
$
6,684,263
$
6,189,490
$
5,980,919
Allowance for Loan Losses
Balance, Beginning of Period
$
53,959
$
57,062
$
54,840
Progressive - PCD ALLL
9,264
-
-
Charge-offs, Quarterly
(1,104
)
(7,153
)
(1,648
)
Recoveries, Quarterly
181
309
671
Provision for Loan Losses, Quarterly
1,355
3,741
3,000
Balance, End of Period
$
63,655
$
53,959
$
56,863
Allowance for Loan Losses to Total Loans (HFI)
0.95
%
0.87
%
0.95
%
Allowance for Credit Losses to Total Loans (HFI) (1)
1.03
%
0.94
%
1.01
%
Net Charge-offs to Average Quarterly Total Loans
0.01
%
0.11
%
0.02
%
Remaining Loan Purchase Discount
$
15,818
$
7,489
$
11,322
Nonperforming Assets
Nonperforming Loans:
Nonaccrual Loans
$
100,803
$
74,471
$
35,915
Loans Past Due 90 Days or More
1,404
2,215
5,635
Total Nonperforming Loans
102,207
76,686
41,550
Other Nonperforming Assets:
Other Real Estate Owned
20,898
13,013
1,282
Other Nonperforming Assets
-
-
-
Total Other Nonperforming Assets
20,898
13,013
1,282
Total Nonperforming Assets
$
123,105
$
89,699
$
42,832
Nonperforming Loans to Total Loans (HFI)
1.53
%
1.24
%
0.69
%
Nonperforming Assets to Total Assets
1.38
%
1.09
%
0.55
%
(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
March 31,
December 31,
March 31,
(Dollars in thousands, except per share data)
2026
2025
2025
Per Share Data
Basic Earnings per Common Share
$
0.68
$
0.71
$
0.65
Diluted Earnings per Common Share
0.68
0.71
0.65
Dividends per Common Share
0.15
0.15
0.14
Book Value per Common Share
28.18
27.95
25.51
Average Common Shares Outstanding
32,579,934
29,493,016
29,329,668
Average Diluted Common Shares Outstanding
32,785,554
29,669,253
29,545,921
End of Period Common Shares Outstanding
32,624,887
29,510,668
29,572,297
Annualized Performance Ratios
Return to Common Shareholders on Average Assets (1)
1.01
%
1.04
%
1.00
%
Return to Common Shareholders on Average Common Equity (1)
9.77
%
10.18
%
10.48
%
Net Interest Margin (1)
3.65
%
3.71
%
3.68
%
Net Interest Spread (1)
2.91
%
2.92
%
2.91
%
Efficiency Ratio (2)
64.45
%
63.10
%
63.85
%
Total Quarterly/Year-to-Date Average Assets
$
8,893,419
$
8,016,094
$
7,750,982
Total Quarterly/Year-to-Date Average Common Equity
922,037
818,617
742,930
Other Expenses
Salaries and Employee Benefits
$
33,039
$
30,426
$
29,497
Occupancy and Equipment Expense
8,122
6,809
7,356
Advertising and Promotions
1,508
1,595
1,291
Communications
652
619
591
Ad Valorem Shares Tax
978
870
1,125
Data Processing Fees
3,712
3,227
3,236
Directors' Fees
260
224
279
Insurance
411
421
404
Legal and Professional Fees
1,085
1,436
1,013
Office Supplies and Printing
313
337
311
Regulatory Assessments
984
1,005
1,257
Merger and Conversion-Related Expenses
1,377
1,257
250
Other
5,030
4,186
3,968
Total Other Expenses
$
57,471
$
52,412
$
50,578
Other Income
Service Charges on Deposit Accounts
$
3,142
$
2,646
$
2,860
Gain (Loss) on Sales of Securities
80
35
(1
)
Gain on Sales of Loans
1,341
777
1,256
Debit Card and ATM Fee Income
2,306
1,970
1,858
Cash Value of Life Insurance Income
831
783
808
Fees and Brokerage Commission
2,261
2,172
2,148
Pass-Through Income from Other Investments
135
267
751
Gain on Extinguishment of Debt
-
-
630
Swap Fee Income
1,537
1,805
739
Other
2,417
1,775
2,177
Total Other Income
$
14,050
$
12,230
$
13,226
(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)
March 31,
December 31,
March 31,
(Dollars in thousands)
2026
2025
2025
Assets
Cash and Due From Banks
$
589,804
$
411,175
$
312,887
Federal Funds Sold
88,257
172,393
117,422
Securities Purchased Under Agreements to Resell
30,743
25,587
50,589
Securities Available for Sale, at Fair Values
1,045,817
989,229
920,573
Mortgage Loans Held for Sale
480
1,094
-
Loans and Lease Receivable
6,684,263
6,189,490
5,980,919
Allowance for Loan Losses
(63,655
)
(53,959
)
(56,863
)
Net Loans and Lease Receivable
6,620,608
6,135,531
5,924,056
Premises and Equipment, Net
88,421
73,982
81,582
Accrued Interest Receivable
38,176
38,494
33,741
Other Equity Securities
40,047
49,342
40,947
Other Real Estate Owned
20,898
13,013
1,282
Cash Value of Life Insurance
132,682
120,292
117,950
Deferred Taxes, Net
22,959
20,477
25,289
Goodwill
133,564
121,146
121,691
Core Deposit and Customer Intangibles
29,409
14,497
