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 December 31, 2024. Business First reported net income available to common shareholders of $15.1 million or $0.51 per diluted common share, decreases of $1.4 million and $0.14, respectively, compared to the linked quarter ended September 30, 2024. On a non-GAAP basis, core net income for the quarter ended December 31, 2024, which excludes certain income and expenses, was $19.5 million or $0.66 per diluted common share, an increase of $2.2 million and decrease of $0.02, from the linked quarter. The quarter ended December 31, 2024, included the consummation of the Oakwood Bancshares, Inc. (Oakwood) transaction.

For the year ended December 31, 2024, Business First reported net income available to common stockholders of $59.7 million or $2.26 per diluted common share, decreases of $5.9 million and $0.34, respectively, from the prior year ended December 31, 2023. On a non-GAAP basis, core net income for the year ended December 31, 2024, which excludes certain income and expenses, was $65.7 million or $2.49 per diluted common share, decreases of $0.6 million and $0.13, respectively, from prior year ended December 31, 2023.

"I’m pleased to report the fourth quarter of 2024 positively reflected our year as a whole,” said Jude Melville, chairman, president and CEO of Business First Bancshares. “Solid fundamental performance led to productive growth, increasing diversification of revenue sources, healthy asset quality, successful incorporation of new team members, and expansion of our client base, all of which point to an exciting 2025 in which we anticipate not only meeting but growing stakeholder expectations."

On Thursday, January 23, 2025, 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 fourth quarter in the amount of $0.14 per share of common stock. The preferred and common dividends will be paid on February 28, 2025, or as soon thereafter as practicable, to the shareholders of record as of February 15, 2025.

Quarterly Highlights

• Net Interest Margin (NIM) Expansion. For the quarter ended December 31, 2024, net interest income totaled $65.7 million and net interest margin and net interest spread were 3.61% and 2.77%, respectively, compared to $56.1 million, 3.51% and 2.54% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.0 million) were 3.56% and 2.72% for the quarter ended December 31, 2024, compared to 3.46% and 2.50% (excluding loan discount accretion of $0.7 million) for the linked quarter. The increase was driven by a reduction in Business First's overall cost of funding.
• Noninterest Income Investments. Business First again demonstrated increasing revenue from noninterest income sources. For the quarter ended December 31, 2024, the customer swap business produced revenue of $1.3 million, an increase of $0.4 million when compared to the linked quarter, along with continued progress in many of the other noninterest income revenue streams.
• Strong Deposit Growth. During the quarter ended December 31, 2024, deposits increased $870.4 million or 15.43%, 61.38% annualized, compared to the linked quarter. Excluding ending December 31, 2024 deposit balances from Oakwood, organic deposit growth was $156.8 million or 2.78%, 11.06% annualized.
• Measured Loan Growth. Loans held for investment increased $761.3 million or 14.58%, 58.02% annualized, from the linked quarter. Excluding ending December 31, 2024 loan balances from Oakwood, organic loan growth was $62.8 million or 1.20%, 4.79% annualized.
• Oakwood Acquisition. On October 1, 2024, Business First closed its previously announced acquisition of 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. Business First does not anticipate material synergies to be reflected in its earnings until after conversion in the fourth quarter.

• Consistent Core Performance. Return to common shareholders on average assets, on an annualized basis, was 0.78% for the quarter ended December 31, 2024, or 1.00% on a non-GAAP basis, with the difference largely attributable to the exclusion of acquisition-related costs, including $4.8 million provision expense for the Oakwood loan portfolio.

Statement of Financial Condition

Loans

Loans held for investment increased $761.3 million or 14.58%, 58.02% annualized, from the linked quarter. Excluding ending December 31, 2024 loan balances from Oakwood, organic loan growth was $62.8 million or 1.20%, 4.79% annualized. For the year ended December 31, 2024, organic loan growth was $291.0 million or 5.83%. Organic loan growth for the quarter was highlighted by a $54.3 million or 3.63% increase in the commercial and industrial (C&I) portfolio and $20.8 million or 2.80% in the residential real estate portfolio, as well as a reduction of $31.9 million or 4.87% in the construction and development (C&D) portfolio.

Organic production for the quarter was led by the Capital, Southwest, and New Orleans Louisiana regions which accounted for all of the net loan growth from the linked quarter based on unpaid principal balance. Based on unpaid principal balances, Texas-based loans represented approximately 41% of the overall loan portfolio as of December 31, 2024, with the 6% increase from linked quarter attributed to the Oakwood acquisition.

Credit Quality

Credit quality metrics remain solid, with improvement during the quarter from the acquisition of the Oakwood portfolio as well as in the organic portfolio through resolution of nonaccrual loans. The ratio of nonperforming loans compared to loans held for investment decreased 8 basis points to 0.42% at December 31, 2024, while the ratio of nonperforming assets compared to total assets decreased 1 basis point to 0.39%. The decreases were attributable to the acquired loans from the Oakwood portfolio and the $1.1 million decrease in nonperforming loans compared to the linked quarter.

Securities

The securities portfolio decreased $22.5 million, or 2.46%, from the linked quarter, impacted by $21.4 million in negative fair value adjustments. The securities portfolio, based on estimated fair value, represented 11.37% of total assets as of December 31, 2024.

Deposits

Deposits increased $870.4 million or 15.43%, 61.38% annualized, for the quarter ended December 31, 2024, compared to the linked quarter. Excluding ending December 31, 2024 deposit balances from Oakwood, organic deposit growth was $156.8 million or 2.78%, 11.06% annualized. For the year ended December 31, 2024, organic deposit growth was $548.9 million or 10.46%.

Organic deposit growth for the quarter was highlighted by increases in money market accounts and noninterest bearing accounts, with increases of $51.8 million or 2.49% and $33.3 million or 2.79%, respectively, compared to the linked quarter.

Borrowings

Borrowings decreased $10.3 million, or 2.09%, from the linked quarter due primarily to a reduction in short-term Federal Home Loan Bank advances.

Shareholders’ Equity

Shareholders' equity increased $99.9 million, of which $103.8 million was due to the acquisition of Oakwood, during the quarter ended December 31, 2024. Accumulated other comprehensive income (AOCI) decreased $16.9 million, or 36.52%, during the fourth quarter due to negative after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $24.62 at December 31, 2024, compared to $24.59 at September 30, 2024. On a non-GAAP basis, tangible book value per common share decreased from $20.60 at September 30, 2024, to $19.92 at December 31, 2024 due largely to the decreases in AOCI which accounted for $0.57 of the decrease.

Results of Operations

Net Interest Income

For the quarter ended December 31, 2024, net interest income totaled $65.7 million, compared to $56.1 million from the linked quarter. Loan and interest-earning asset yields of 7.05% and 6.38%, decreased 7 and 4 basis points, respectively, compared to 7.12% and 6.42% from the linked quarter due to recent decline in the interest rate environment. However, net interest margin and net interest spread were 3.61% and 2.77% compared to 3.51% and 2.54% for the linked quarter. The overall cost of funds, which included noninterest-bearing deposits, declined 14 bps from 3.07% from the linked quarter to 2.93% for the quarter ended December 31, 2024 due to the interest rate environment, along with decisive deposit rate management.

Non-GAAP net interest income (excluding loan discount accretion of $1.0 million) totaled $64.7 million for the quarter ended December 31, 2024, compared to $55.4 million (excluding loan discount accretion of $0.7 million) for the linked quarter. Non- GAAP net interest margin and net interest spread (excluding loan discount accretion of $1.0 million) were 3.56% and 2.72%, respectively, for the quarter ended December 31, 2024, compared to 3.46% and 2.50% (excluding loan discount accretion of $0.7 million) for the linked quarter. Excluding loan discount accretion, loan yields decreased 9 basis points to 6.98% from 7.07%, and interest earnings asset yields decreased 5 basis points to 6.33% from 6.38%, compared to the linked quarter.

Provision for Credit Losses

During the quarter ended December 31, 2024, Business First recorded a provision for credit losses of $6.7 million, compared to $1.7 million from the linked quarter. The current quarter’s reserve growth was largely associated with a $4.8 million increase due to the initial acquisition of Oakwood, along with loan growth, net charge-offs, offset by slight improvements in the economic forecasts.

Other Income

For the quarter ended December 31, 2024, other income increased $1.1 million or 10.05%, compared to the linked quarter. The net increase was largely attributable to a a $351,000 increase in swap fee income, $311,000 increase in bank owned life insurance due to a benefit payout and the addition of Oakwood, and $205,000 increase in debit card and ATM fee income.

Other Expenses

For the quarter ended December 31, 2024, other expenses increased by $7.1 million or 16.77%, compared to the linked quarter. The increase was largely attributable to expenses associated with the acquisition of Oakwood, approximately $4.8 million, along with increases in advertising and promotions, $653,000, salaries and employee benefits (excluding Oakwood), $533,000, and ad valorem/shareholders taxes, $457,000.

Return on Assets and Common Equity

Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.78% and 8.23% for the quarter ended December 31, 2024, compared to 0.97% and 10.76%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.00% and 10.58% for the quarter ended December 31, 2024, compared to 1.01% and 11.23%, respectively, for the linked quarter.

Conference Call and Webcast

Executive management will host a conference call and webcast to discuss results on Thursday, January 23, 2025, 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 3805642, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/t4dk4pym. 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 $7.9 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
	December 31,			September 30,			December 31,
(Dollars in thousands)	2024			2024			2023
Balance Sheet Ratios
Loans (HFI) to Deposits		91.86	%		92.54	%		95.12	%
Shareholders' Equity to Assets Ratio		10.18	%		10.15	%		9.78	%
Loans Receivable Held for Investment (HFI)
Commercial	$	1,868,675		$	1,496,480		$	1,358,838
Real Estate:
Commercial		2,483,223			2,256,370			2,217,928
Construction		670,502			654,353			669,798
Residential		884,533			743,878			682,394
Total Real Estate		4,038,258			3,654,601			3,570,120
Consumer and Other		74,466			69,037			63,827
Total Loans (Held for Investment)	$	5,981,399		$	5,220,118		$	4,992,785
Allowance for Loan Losses
Balance, Beginning of Period	$	42,154		$	41,412		$	41,129
Oakwood - PCD ALLL		8,410			-			-
Charge-offs – Quarterly		(2,290	)		(1,424	)		(1,039	)
Recoveries – Quarterly		654			295			152
Provision for Loan Losses – Quarterly		5,912			1,871			172
Balance, End of Period	$	54,840		$	42,154		$	40,414
Allowance for Loan Losses to Total Loans (HFI)		0.92	%		0.81	%		0.81	%
Allowance for Credit Losses to Total Loans (HFI) (1)		0.98	%		0.86	%		0.88	%
Net Charge-offs (Recoveries) to Average Quarterly Total Loans		0.03	%		0.02	%		0.02	%
Remaining Loan Purchase Discount	$	12,121		$	9,003		$	12,286
Nonperforming Assets
Nonperforming Loans:
Nonaccrual Loans	$	24,147		$	25,874		$	16,943
Loans Past Due 90 Days or More		860			185			127
Total Nonperforming Loans		25,007			26,059			17,070
Other Nonperforming Assets:
Other Real Estate Owned		5,529			1,787			1,685
Other Nonperforming Assets		-			-			-
Total Other Nonperforming Assets		5,529			1,787			1,685
Total Nonperforming Assets	$	30,536		$	27,846		$	18,755
Nonperforming Loans to Total Loans (HFI)		0.42	%		0.50	%		0.34	%
Nonperforming Assets to Total Assets		0.39	%		0.40	%		0.28	%
(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										Year Ended
	December 31,			September 30,			December 31,				December 31,			December 31,
(Dollars in thousands, except per share data)	2024			2024			2023				2024			2023
Per Share Data
Basic Earnings per Common Share	$	0.52		$	0.65		$	0.58			$	2.27		$	2.62
Diluted Earnings per Common Share		0.51			0.65			0.57				2.26			2.59
Dividends per Common Share		0.14			0.14			0.14				0.56			0.50
Book Value per Common Share		24.62			24.59			22.58				24.62			22.58
Average Common Shares Outstanding		29,311,111			25,289,094			25,116,688				26,253,846			25,079,106
Average Diluted Common Shares Outstanding		29,520,781			25,440,247			25,333,913				26,452,084			25,296,200
End of Period Common Shares Outstanding		29,552,358			25,519,501			25,351,809				29,552,358			25,351,809
Annualized Performance Ratios
Return to Common Shareholders on Average Assets (1)		0.78	%		0.97	%		0.88	%			0.86	%		1.04	%
Return to Common Shareholders on Average Common Equity (1)		8.23	%		10.76	%		10.54	%			9.54	%		12.36	%
Net Interest Margin (1)		3.61	%		3.51	%		3.50	%			3.48	%		3.62	%
Net Interest Spread (1)		2.77	%		2.54	%		2.53	%			2.55	%		2.72	%
Efficiency Ratio (2)		63.91	%		63.45	%		63.36	%			65.42	%		61.61	%
Total Quarterly/Year-to-Date Average Assets	$	7,721,338		$	6,788,644		$	6,494,861			$	6,973,735		$	6,341,880
Total Quarterly/Year-to-Date Average Common Equity		731,820			610,018			544,628				625,914			530,956
Other Expenses
Salaries and Employee Benefits	$	28,101		$	24,877		$	22,609			$	103,917		$	90,611
Occupancy and Bank Premises		3,166			2,630			2,387				10,944			9,518
Depreciation and Amortization		2,278			1,844			1,647				7,540			6,767
Data Processing		3,856			2,881			2,490				11,957			9,034
FDIC Assessment Fees		1,009			887			841				3,598			3,645
Legal and Other Professional Fees		975			873			833				3,756			3,173
Advertising and Promotions		1,710			1,057			1,052				4,878			4,628
Utilities and Communications		775			716			700				2,883			2,899
Ad Valorem Shares Tax		1,357			900			265				4,057			3,160
Directors' Fees		290			245			262				1,085			1,079
Other Real Estate Owned Expenses and Write-Downs		182			11			504				301			687
Merger and Conversion-Related Expenses		168			319			63				1,236			236
Other		5,703			5,210			6,061				21,500			21,265
Total Other Expenses	$	49,570		$	42,450		$	39,714			$	177,652		$	156,702
Other Income
Service Charges on Deposit Accounts	$	2,878		$	2,723		$	2,470			$	10,577		$	9,704
Gain (Loss) on Sales of Securities		21			(13	)		(2,503	)			7			(2,565	)
Debit Card and ATM Fee Income		2,069			1,864			1,793				7,659			6,590
Bank-Owned Life Insurance Income		990			679			572				2,875			2,247
Gain on Sales of Loans		252			122			546				2,973			1,972
Mortgage Origination Income		36			98			47				238			285
Fees and Brokerage Commission		2,063			1,968			1,710				7,844			7,247
Gain (Loss) on Sales of Other Real Estate Owned		40			(16	)		338				89			646
Loss on Disposal of Other Assets		-			-			(1	)			(15	)		(15	)
Gain on Sale of Branch		-			-			13				-			945
Gain on Extinguishment of Debt		-			-			-				-			1,458
Swap Fee Income		1,288			937			964				2,739			964
Pass-Through Income (Loss) from Other Investments		186			335			(1,028	)			1,208			1,946
Other		2,034			2,077			1,492				7,999			5,218
Total Other Income	$	11,857		$	10,774		$	6,413			$	44,193		$	36,642
(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)
	December 31,			September 30,			December 31,
(Dollars in thousands)	2024			2024			2023
Assets
Cash and Due From Banks	$	319,098		$	213,199		$	226,110
Federal Funds Sold		197,669			169,980			151,134
Securities Purchased under Agreements to Resell		50,835			25,879			-
Securities Available for Sale, at Fair Values		893,549			916,091			879,571
Mortgage Loans Held for Sale		717			-			835
Loans and Lease Receivable		5,981,399			5,220,118			4,992,785
Allowance for Loan Losses		(54,840	)		(42,154	)		(40,414	)
Net Loans and Lease Receivable		5,926,559			5,177,964			4,952,371
Premises and Equipment, Net		81,953			67,617			69,480
Accrued Interest Receivable		35,872			32,547			29,916
Other Equity Securities		41,100			39,555			33,942
Other Real Estate Owned		5,529			1,787			1,685
Cash Value of Life Insurance		117,645			101,362			96,478
Deferred Taxes, Net		29,591			20,852			27,323
Goodwill		121,572			91,527			88,391
Core Deposit and Customer Intangibles		17,252			10,326			11,895
Other Assets		18,149			19,963			15,419
Total Assets	$	7,857,090		$	6,888,649		$	6,584,550
Liabilities
Deposits
Noninterest-Bearing	$	1,357,045		$	1,190,942		$	1,299,090
Interest-Bearing		5,154,286			4,450,004			3,949,700
Total Deposits		6,511,331			5,640,946			5,248,790
Securities Sold Under Agreements to Repurchase		22,621			21,529			18,885
Bank Term Funding Program		-			-			300,000
Federal Home Loan Bank Borrowings		355,875			367,202			211,198
Subordinated Debt		99,760			99,818			99,990
Subordinated Debt - Trust Preferred Securities		5,000			5,000			5,000
Accrued Interest Payable		5,969			3,752			14,841
Other Liabilities		57,068			50,878			41,587
Total Liabilities		7,057,624			6,189,125			5,940,291
Shareholders' Equity
Preferred Stock		71,930			71,930			71,930
Common Stock		29,552			25,520			25,352
Additional Paid-In Capital		500,024			398,237			397,447
Retained Earnings		260,958			249,981			216,115
Accumulated Other Comprehensive Loss		(62,998	)		(46,144	)		(66,585	)
Total Shareholders' Equity		799,466			699,524			644,259
Total Liabilities and Shareholders' Equity	$	7,857,090		$	6,888,649		$	6,584,550

Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)
	Three Months Ended									Year Ended
	December 31,		September 30,			December 31,				December 31,		December 31,
(Dollars in thousands)	2024		2024			2023				2024		2023
Interest Income:
Interest and Fees on Loans	$	104,697	$	93,307		$	85,761			$	374,555	$	323,327
Interest and Dividends on Securities		7,310		6,417			5,193				25,259		20,125
Interest on Federal Funds Sold and Due From Banks		4,135		3,017			3,711				14,950		9,875
Total Interest Income		116,142		102,741			94,665				414,764		353,327
Interest Expense:
Interest on Deposits		44,862		41,303			34,190				165,094		106,908
Interest on Borrowings		5,551		5,324			6,715				22,287		31,290
Total Interest Expense		50,413		46,627			40,905				187,381		138,198
Net Interest Income		65,729		56,114			53,760				227,383		215,129
Provision for Credit Losses		6,712		1,665			119				10,873		4,483
Net Interest Income After Provision for Credit Losses		59,017		54,449			53,641				216,510		210,646
Other Income:
Service Charges on Deposit Accounts		2,878		2,723			2,470				10,577		9,704
Gain (Loss) on Sales of Securities		21		(13	)		(2,503	)			7		(2,565	)
Gain on Sales of Loans		252		122			546				2,973		1,972
Other Income		8,706		7,942			5,900				30,636		27,531
Total Other Income		11,857		10,774			6,413				44,193		36,642
Other Expenses:
Salaries and Employee Benefits		28,101		24,877			22,609				103,917		90,611
Occupancy and Equipment Expense		7,087		5,828			5,301				23,989		20,859
Merger and Conversion-Related Expense		168		319			63				1,236		236
Other Expenses		14,214		11,426			11,741				48,510		44,996
Total Other Expenses		49,570		42,450			39,714				177,652		156,702
Income Before Income Taxes		21,304		22,773			20,340				83,051		90,586
Provision for Income Taxes		4,816		4,930			4,516				17,944		19,543
Net Income		16,488		17,843			15,824				65,107		71,043
Preferred Stock Dividends		1,350		1,351			1,350				5,401		5,401
Net Income Available to Common Shareholders	$	15,138	$	16,492		$	14,474			$	59,706	$	65,642

Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
	Three Months Ended
	December 31, 2024								September 30, 2024								December 31, 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	$	5,911,183		$	104,697	7.05	%		$	5,212,948		$	93,307	7.12	%		$	4,949,954		$	85,761	6.87	%
Securities		980,566			7,310	2.97	%			924,012			6,417	2.76	%			865,372			5,193	2.38	%
Interest-Bearing Deposit in Other Banks		346,035			4,135	4.75	%			227,035			3,017	5.29	%			271,004			3,711	5.43	%
Total Interest-Earning Assets		7,237,784			116,142	6.38	%			6,363,995			102,741	6.42	%			6,086,330			94,665	6.17	%
Allowance for Loan Losses		(52,130	)							(41,554	)							(40,996	)
Noninterest-Earning Assets		535,684								466,203								449,527
Total Assets	$	7,721,338		$	116,142				$	6,788,644		$	102,741				$	6,494,861		$	94,665
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Deposits	$	5,053,759		$	44,862	3.53	%		$	4,308,780		$	41,303	3.81	%		$	3,816,474		$	34,190	3.55	%
Subordinated Debt		99,797			1,331	5.31	%			99,854			1,353	5.39	%			100,009			1,320	5.24	%
Subordinated Debt - Trust Preferred Securities		5,000			107	8.51	%			5,000			114	9.07	%			5,000			113	8.97	%
Bank Term Funding Program		-			-	0.00	%			-			-	0.00	%			300,000			3,202	4.23	%
Advances from Federal Home Loan Bank (FHLB)		373,236			3,975	4.24	%			347,476			3,723	4.26	%			213,280			1,947	3.62	%
Other Borrowings		21,569			138	2.55	%			20,971			134	2.54	%			20,772			133	2.54	%
Total Interest-Bearing Liabilities		5,553,361			50,413	3.61	%			4,782,081			46,627	3.88	%			4,455,535			40,905	3.64	%
Noninterest-Bearing Liabilities:
Noninterest-Bearing Deposits		1,292,623							$	1,269,282							$	1,368,452
Other Liabilities		71,604								55,333								54,316
Total Noninterest-Bearing Liabilities		1,364,227								1,324,615								1,422,768
Shareholders' Equity:
Common Shareholders' Equity		731,820								610,018								544,628
Preferred Equity		71,930								71,930								71,930
Total Shareholders' Equity		803,750								681,948								616,558
Total Liabilities and Shareholders' Equity	$	7,721,338							$	6,788,644							$	6,494,861
Net Interest Spread						2.77	%							2.54	%							2.53	%
Net Interest Income				$	65,729							$	56,114							$	53,760
Net Interest Margin						3.61	%							3.51	%							3.50	%
Overall Cost of Funds						2.93	%							3.07	%							2.79	%
NOTE: Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an Actual/365/366 day count convention.

Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)
	Year Ended
	December 31, 2024								December 31, 2023
(Dollars in thousands)	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	$	5,327,466		$	374,555	7.03	%		$	4,859,637		$	323,327	6.65	%
Securities		921,393			25,259	2.74	%			898,771			20,125	2.24	%
Interest-Bearing Deposit in Other Banks		287,474			14,950	5.20	%			180,997			9,875	5.46	%
Total Interest-Earning Assets		6,536,333			414,764	6.35	%			5,939,405			353,327	5.95	%
Allowance for Loan Losses		(43,931	)							(41,665	)
Noninterest-Earning Assets		481,333								444,140
Total Assets	$	6,973,735		$	414,764				$	6,341,880		$	353,327
Liabilities and Shareholders' Equity
Interest-Bearing Liabilities:
Interest-Bearing Deposits	$	4,427,233		$	165,094	3.73	%		$	3,566,216		$	106,908	3.00	%
Subordinated Debt		99,884			5,394	5.40	%			105,369			5,323	5.05	%
Subordinated Debt - Trust Preferred Securities		5,000			447	8.94	%			5,000			430	8.60	%
Bank Term Funding Program		64,754			2,788	4.31	%			253,706			11,313	4.46	%
Advances from Federal Home Loan Bank (FHLB)		317,462			13,164	4.15	%			329,726			13,702	4.16	%
Other Borrowings		19,464			494	2.54	%			21,825			522	2.39	%
Total Interest-Bearing Liabilities		4,933,797			187,381	3.80	%			4,281,842			138,198	3.23	%
Noninterest-Bearing Liabilities:
Noninterest-Bearing Deposits		1,285,445								1,412,979
Other Liabilities		56,649								44,173
Total Noninterest-Bearing Liabilities		1,342,094								1,457,152
Shareholders' Equity:
Common Shareholders' Equity		625,914								530,956
Preferred Equity		71,930								71,930
Total Shareholders' Equity		697,844								602,886
Total Liabilities and Shareholders' Equity	$	6,973,735							$	6,341,880
Net Interest Spread						2.55	%							2.72	%
Net Interest Income				$	227,383							$	215,129
Net Interest Margin						3.48	%							3.62	%
Overall Cost of Funds						3.01	%							2.43	%
NOTE: Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an Actual/365/366 day count convention.

Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
	Three Months Ended										Year Ended
	December 31,			September 30,			December 31,				December 31,			December 31,
(Dollars in thousands, except per share data)	2024			2024			2023				2024			2023
Interest Income:
Interest income	$	116,142		$	102,741		$	94,665			$	414,764		$	353,327
Core interest income		116,142			102,741			94,665				414,764			353,327
Interest Expense:
Interest expense		50,413			46,627			40,905				187,381			138,198
Core interest expense		50,413			46,627			40,905				187,381			138,198
Provision for Credit Losses: (b)
Provision for credit losses		6,712			1,665			119				10,873			4,483
CECL Oakwood impact (3)		(4,824	)		-			-				(4,824	)		-
Core provision expense		1,888			1,665			119				6,049			4,483
Other Income:
Other income		11,857			10,774			6,413				44,193			36,642
Gain on former bank premises and equipment		-			-			-				(50	)		-
(Gain) loss on sale of securities		(21	)		13			2,503				(7	)		2,565
Gain on sale of branch		-			-			(13	)			-			(945	)
Gain on extinguishment of debt		-			-			-				-			(1,458	)
Core other income		11,836			10,787			8,903				44,136			36,804
Other Expense:
Other expense		49,570			42,450			39,714				177,652			156,702
Acquisition-related expenses (2)		(168	)		(319	)		(63	)			(1,621	)		(236	)
Write-down on former bank premises		-			-			(432	)			-			(432	)
Core conversion expenses		(463	)		(511	)		-				(974	)		-
Core other expense		48,939			41,620			39,219				175,057			156,034
Pre-Tax Income: (a)
Pre-tax income		21,304			22,773			20,340				83,051			90,586
CECL Oakwood impact (3)		4,824			-			-				4,824			-
Gain on former bank premises and equipment		-			-			-				(50	)		-
(Gain) loss on sale of securities		(21	)		13			2,503				(7	)		2,565
Gain on sale of branch		-			-			(13	)			-			(945	)
Gain on extinguishment of debt		-			-			-				-			(1,458	)
Acquisition-related expenses (2)		168			319			63				1,621			236
Write-down on former bank premises		-			-			432				-			432
Core conversion expenses		463			511			-				974			-
Core pre-tax income		26,738			23,616			23,325				90,413			91,416
Provision for Income Taxes: (1)
Provision for income taxes		4,816			4,930			4,516				17,944			19,543
Tax on CECL Oakwood impact (3)		1,019			-			-				1,019			-
Tax on gain on former bank premises and equipment		-			-			-				(11	)		-
Tax on (gain) loss on sale of securities		(4	)		3			529				(1	)		542
Tax on gain on sale of branch		-			-			(3	)			-			(200	)
Tax on gain on extinguishment of debt		-			-			-				-			(308	)
Tax on acquisition-related expenses (2)		6			-			1				97			21
Tax on write-down on former bank premises		-						91				-			91
Tax on core conversion expenses		97			108			-				205			-
Core provision for income taxes		5,934			5,041			5,134				19,252			19,689
Preferred Dividends:
Preferred dividends		1,350			1,351			1,350				5,401			5,401
Core preferred dividends		1,350			1,351			1,350				5,401			5,401
Net Income Available to Common Shareholders:
Net income available to common shareholders		15,138			16,492			14,474				59,706			65,642
CECL Oakwood impact (3), net of tax		3,805			-			-				3,805			-
Gain on former bank premises and equipment, net of tax		-			-			-				(39	)		-
(Gain) loss on sale of securities, net of tax		(17	)		10			1,974				(6	)		2,023
Gain on sale of branch, net of tax		-			-			(10	)			-			(745	)
Gain on extinguishment of debt, net of tax		-			-			-				-			(1,150	)
Acquisition-related expenses (2), net of tax		162			319			62				1,524			215
Write-down on former bank premises, net of tax		-			-			341				-			341
Core conversion expenses, net of tax		366			403			-				769			-
Core net income available to common shareholders	$	19,454		$	17,224		$	16,841			$	65,759		$	66,326
Pre-tax, pre-provision earnings available to common shareholders (a+b)	$	28,016		$	24,438		$	20,459			$	93,924		$	95,069
CECL Oakwood impact (3)		4,824		$	-		$	-				4,824		$	-
Gain on former bank premises and equipment		-			-			-				(50	)		-
(Gain) loss on sale of securities		(21	)		13			2,503				(7	)		2,565
Gain on sale of branch		-			-			(13	)			-			(945	)
Gain on extinguishment of debt		-			-			-				-			(1,458	)
Acquisition-related expenses (2)		168			319			63				1,621			236
Write-down on former premises		-			-			432				-			432
Core conversion expenses		463			511			-				974			-
Core pre-tax, pre-provision earnings	$	33,450		$	25,281		$	23,444			$	101,286		$	95,899
Average Diluted Common Shares Outstanding		29,520,781			25,440,247			25,333,913				26,452,084			25,296,200
Diluted Earnings Per Common Share:
Diluted earnings per common share	$	0.51		$	0.65		$	0.57			$	2.26		$	2.59
CECL Oakwood impact (3), net of tax		0.13		$	-		$	-				0.14		$	-
Gain on former bank premises and equipment, net of tax		-			-			-				(0.00	)		-
(Gain) loss on sale of securities, net of tax		(0.00	)		0.00			0.08				(0.00	)		0.08
Gain on sale of branch, net of tax		-			-			-				-			(0.03	)
Gain on extinguishment of debt, net of tax		-			-			-				-			(0.04	)
Acquisition-related expenses (2), net of tax		0.01			0.01			-				0.06			0.01
Write-down on former premises, net of tax		-			-			0.01				-			0.01
Core conversion expenses, net of tax		0.01			0.02			-				0.03			-
Core diluted earnings per common share	$	0.66		$	0.68		$	0.66			$	2.49		$	2.62
Pre-tax, pre-provision profit diluted earnings per common share	$	0.95		$	0.96		$	0.81			$	3.55		$	3.76
CECL Oakwood impact (3)		0.16			-			-				0.18			-
Gain on former bank premises and equipment		-			-			-				(0.00	)		-
(Gain) loss on sale of securities		(0.00	)		0.00			0.10				(0.00	)		0.10
Gain on sale of branch		-			-			-				-			(0.04	)
Gain on extinguishment of debt		-			-			-				-			(0.06	)
Acquisition-related expenses (2)		0.01			0.01			-				0.06			0.01
Write-down on former premises, net of tax		-			-			0.02				-			0.02
Core conversion expenses		0.02			0.02			-				0.04			-
Core pre-tax, pre-provision diluted earnings per common share	$	1.14		$	0.99		$	0.93			$	3.83		$	3.79
(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.
(3) CECL non-purchased credit deteriorated (PCD) provision/unfunded commitment expense attributable to Oakwood.

Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
	December 31,			September 30,			December 31,
(Dollars in thousands, except per share data)	2024			2024			2023
Total Shareholders' (Common) Equity:
Total shareholders' equity	$	799,466		$	699,524		$	644,259
Preferred stock		(71,930	)		(71,930	)		(71,930	)
Total common shareholders' equity		727,536			627,594			572,329
Goodwill		(121,572	)		(91,527	)		(88,391	)
Core deposit and customer intangible		(17,252	)		(10,326	)		(11,895	)
Total tangible common equity	$	588,712		$	525,741		$	472,043
Total Assets:
Total assets	$	7,857,090		$	6,888,649		$	6,584,550
Goodwill		(121,572	)		(91,527	)		(88,391	)
Core deposit and customer intangible		(17,252	)		(10,326	)		(11,895	)
Total tangible assets	$	7,718,266		$	6,786,796		$	6,484,264
Common shares outstanding		29,552,358			25,519,501			25,351,809
Book value per common share	$	24.62		$	24.59		$	22.58
Tangible book value per common share	$	19.92		$	20.60		$	18.62
Common equity to total assets		9.26	%		9.11	%		8.69	%
Tangible common equity to tangible assets		7.63	%		7.75	%		7.28	%

Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)
	Three Months Ended										Year Ended
	December 31,			September 30,			December 31,				December 31,			December 31,
(Dollars in thousands, except per share data)	2024			2024			2023				2024			2023
Total Quarterly Average Assets	$	7,721,338		$	6,788,644		$	6,494,861			$	6,973,735		$	6,341,880
Total Quarterly Average Common Equity	$	731,820		$	610,018		$	544,628			$	625,914		$	530,956
Net Income Available to Common Shareholders:
Net income available to common shareholders	$	15,138		$	16,492		$	14,474			$	59,706		$	65,642
CECL Oakwood impact (3), net of tax		3,805			-			-				3,805			-
Gain on former bank premises and equipment, net of tax		-			-			-				(39	)		-
(Gain) loss on sale of securities, net of tax		(17	)		10			1,974				(6	)		2,023
Gain on sale of branch, net of tax		-			-			(10	)			-			(745	)
Gain on extinguishment of debt, net of tax		-			-			-				-			(1,150	)
Acquisition-related expenses, net of tax		162			319			62				1,524			215
Write-down on former bank premises, net of tax		-			-			341				-			341
Core conversion expenses, net of tax		366			403			-				769			-
Core net income available to common shareholders	$	19,454		$	17,224		$	16,841			$	65,759		$	66,326
Return to common shareholders on average assets (annualized) (2)		0.78	%		0.97	%		0.88	%			0.86	%		1.04	%
Core return on average assets (annualized) (2)		1.00	%		1.01	%		1.03	%			0.94	%		1.05	%
Return to common shareholders on average common equity (annualized) (2)		8.23	%		10.76	%		10.54	%			9.54	%		12.36	%
Core return on average common equity (annualized) (2)		10.58	%		11.23	%		12.27	%			10.51	%		12.49	%
Interest Income:
Interest income	$	116,142		$	102,741		$	94,665			$	414,764		$	353,327
Core interest income		116,142			102,741			94,665				414,764			353,327
Interest Expense:
Interest expense		50,413			46,627			40,905				187,381			138,198
Core interest expense		50,413			46,627			40,905				187,381			138,198
Other Income:
Other income		11,857			10,774			6,413				44,193			36,642
Gain on former bank premises and equipment		-			-			-				(50	)		-
(Gain) loss on sale of securities		(21	)		13			2,503				(7	)		2,565
Gain on sale of branch		-			-			(13	)			-			(945	)
Gain on extinguishment of debt		-			-			-				-			(1,458	)
Core other income		11,836			10,787			8,903				44,136			36,804
Other Expense:
Other expense		49,570			42,450			39,714				177,652			156,702
Acquisition-related expenses		(168	)		(319	)		(63	)			(1,621	)		(236	)
Write-down on former bank premises		-			-			(432	)			-			(432	)
Core conversion expenses		(463	)		(511	)		-				(974	)		-
Core other expense	$	48,939		$	41,620		$	39,219			$	175,057		$	156,034
Efficiency Ratio:
Other expense (a)	$	49,570		$	42,450		$	39,714			$	177,652		$	156,702
Core other expense (c)	$	48,939		$	41,620		$	39,219			$	175,057		$	156,034
Net interest and other income (1) (b)	$	77,565		$	66,901		$	62,676			$	271,569		$	254,336
Core net interest and other income (1) (d)	$	77,565		$	66,901		$	62,663			$	271,519		$	251,933
Efficiency ratio (a/b)		63.91	%		63.45	%		63.36	%			65.42	%		61.61	%
Core efficiency ratio (c/d)		63.09	%		62.21	%		62.59	%			64.47	%		61.93	%
Total Average Interest-Earnings Assets	$	7,237,784		$	6,363,995		$	6,086,330			$	6,536,333		$	5,939,405
Net Interest Income:
Net interest income	$	65,729		$	56,114		$	53,760			$	227,383		$	215,129
Loan discount accretion		(997	)		(705	)		(1,921	)			(4,182	)		(9,311	)
Net interest income excluding loan discount accretion	$	64,732		$	55,409		$	51,839			$	223,201		$	205,818
Net interest margin (2)		3.61	%		3.51	%		3.50	%			3.48	%		3.62	%
Net interest margin excluding loan discount accretion (2)		3.56	%		3.46	%		3.38	%			3.41	%		3.47	%
Net interest spread (2)		2.77	%		2.54	%		2.53	%			2.55	%		2.72	%
Net interest spread excluding loan discount accretion (2)		2.72	%		2.50	%		2.40	%			2.48	%		2.56	%
(1) Excludes gains/losses on sales of securities.
(2) Calculated utilizing an actual day count convention.
(3) CECL non-PCD provision/unfunded commitment expense attributable to Oakwood.

Misty Albrechtb1BANK225.286.7879Misty.Albrecht@b1BANK.com