Business First Bancshares, Inc. — Q3 2026 Earnings Summary

Financial Performance:

• Reported net income available to common shareholders of $23.2 million ($0.71 per diluted share), an increase of $0.4 million and $0.01 from the linked quarter.
• Non-GAAP core net income available to common shareholders was $26.0 million ($0.79 per diluted share), an increase of $2.7 million and $0.08 from the linked quarter.
• Net interest income totaled $80.7 million, up from $77.8 million in the linked quarter.
• Net interest margin expanded 13 basis points to 3.86% (3.80% non-GAAP) compared to 3.73% (3.68% non-GAAP) in the linked quarter.
• Loan yields increased 11 basis points to 6.74% from 6.63%; interest-bearing asset yields increased 8 basis points to 6.10% from 6.02%.
• Overall cost of funds decreased 4 basis points to 2.40% from 2.44%.
• Provision for credit losses was $1.9 million, down from $2.0 million in the linked quarter.
• Other income decreased $1.5 million (10.42%) to $12.5 million, driven by a $0.8 million decrease in gain on sales of loans.
• Other expenses increased $0.9 million (1.58%) to $60.5 million, driven by $1.8 million in occupancy/equipment expenses and $1.1 million in merger/conversion expenses.
• Return on average assets was 1.04% (1.17% non-GAAP); return on average common equity was 9.75% (10.93% non-GAAP).
• Total loans held for investment increased $121.4 million (1.82%) to $6.78 billion; total deposits increased $141.2 million (1.95%) to $7.38 billion.
• Nonperforming loans to total loans decreased 2 basis points to 1.24%; nonperforming assets to total assets decreased 1 basis point to 1.22%.
• Allowance for credit losses to total loans was 0.95%, down from 1.02% in the linked quarter.
• Net charge-offs to average quarterly total loans increased to 8 basis points from 4 basis points.
• Book value per common share decreased to $28.77 from $28.79; tangible book value per common share increased to $23.71 from $23.61.
• Common equity to total assets decreased from 10.52% to 10.39%.

Guidance and Future Outlook:

• Management stated they will maintain a focus on disciplined execution while investing in opportunities across their diversified footprint.
• No specific numerical forward guidance was provided in the release.

Business Segments and Product Lines:

• Commercial real estate portfolio increased $72.7 million and construction portfolio increased $80.7 million compared to the linked quarter.
• Residential real estate portfolio decreased $30.6 million compared to the linked quarter.
• Loan and deposit growth was led by Houston, Texas and Southwest Louisiana markets.
• Successfully converted Progressive Bank's core systems onto its platform in August 2026.
• b1BANK operates Banking Centers and Loan Production Offices in Louisiana and Texas.

Market and Competitive Landscape:

• b1BANK is a 2024 Mastercard "Innovation Award" winner and a multiyear winner of American Banker Magazine's "Best Banks to Work For."
• The company manages $5.5 billion in assets through its affiliate Smith Shellnut Wilson, LLC (excluding $1.0 billion of b1BANK assets managed by SSW).

Risks and Challenges:

• Net charge-offs increased to 8 basis points, primarily attributable to one previously fully reserved commercial relationship.
• Securities portfolio decreased $54.4 million, impacted by $24.2 million in negative pre-tax fair value adjustments.
• Accumulated other comprehensive loss increased from $35.8 million to $54.9 million due to after-tax fair value adjustments in the securities portfolio.

Management Commentary and Tone:

• Jude Melville, Chairman, President, and CEO, described the quarter as a demonstration of "disciplined execution" delivering higher earnings and stronger returns.
• Management highlighted the seamless transition of the Progressive Bank conversion and balanced growth in loans and deposits appropriate to capital strength.
• The tone emphasized confidence in the team's ability to capitalize on opportunities across the diversified footprint.

Other Key Points:

• The Board declared a quarterly preferred dividend of $18.75 per share (1.875% rate) and a common dividend of $0.15 per share.
• Dividends are payable on November 30, 2026, to shareholders of record as of November 15, 2026.
• Repurchased 204,160 shares for $6.3 million (weighted average price $30.81) during the quarter under a previously announced program.
• Total repurchases since October 2025 amount to 630,618 shares for $17.6 million (weighted average price $27.88).
• Borrowings decreased $107.8 million (18.25%) primarily due to reductions in short-term Federal Home Loan Bank advances.
• Brokered deposits decreased $65.9 million and borrowings decreased $107.8 million, contributing to a reduction in the overall cost of funding.