Business First Bancshares Posts $23.2 Million in Third-Quarter Profit
Key Facts
Business First Bancshares said net income available to common shareholders was $23.2 million, or $0.71 per diluted share, for the quarter ended September 30, 2026, according to the company's statement published on October 26. Net income increased $0.4 million and earnings per share rose $0.01 from the previous quarter. Core net income, a non-GAAP measure, was $26.0 million, or $0.79 per diluted share. That represented quarter-over-quarter increases of $2.7 million and $0.08 per share, respectively. The improvement in reported and core earnings coincided with higher interest income and a wider margin.
Net interest income was $80.7 million in the third quarter, compared with $77.8 million in the second quarter, while the net interest margin widened to 3.86% from 3.73%. The company attributed the margin improvement to higher loan yields and a lower cost of funding. Loan yields rose to 6.74% from 6.63% in the previous quarter. Meanwhile, the total cost of funds declined to 2.40% from 2.44%. The comparison shows that growth in interest income was accompanied by improved loan yields and a lower cost of funds during the period.
Loans held for investment increased $121.4 million during the quarter, equivalent to a calculated annualized growth rate of 7.23%. The increase included $72.7 million in the commercial real estate portfolio and $80.7 million in the construction portfolio, compared with the previous quarter. Deposits rose $141.2 million, or 7.74% on a calculated annualized basis. The increase was driven by a $180.1 million rise in commercial money market accounts. By contrast, brokered deposits fell $65.9 million during the quarter, according to the company's statement.
Loans more than 30 days past due totaled $32.5 million, or 0.48% of total loans, on September 30. The ratio of nonperforming loans to loans held for investment fell to 1.24%, while nonperforming assets as a share of total assets stood at 1.22%. Elsewhere in asset quality, net charge-offs rose to 8 basis points of average quarterly loans, from 4 basis points in the second quarter. The company said the increase was mainly attributable to one commercial relationship for which a full provision had previously been established. The bank recorded a provision for credit losses of $1.9 million, compared with $2.0 million in the previous quarter, while the allowance ratio to loans held for investment declined to 0.95% from 1.02%.
Turning to other income and expenses, other income fell $1.5 million, or 10.42%, from the previous quarter. The company attributed the decline largely to a $0.8 million decrease in gains on loan sales and the absence of a $0.5 million debt recovery gain recorded in the second quarter. By contrast, other expenses rose $0.9 million, or 1.58%. The increase included $1.8 million in occupancy and equipment expenses and $1.1 million in merger and conversion expenses. The company attributed part of the increase in occupancy expenses to a lease termination fee related to aligning the offices of B1 Bank and Progressive.
On Progressive integration, Business First said the conversion of the bank's core systems to its platform was completed in August 2026. In terms of scale, the company's assets totaled $8.9 billion, loans $6.7 billion and deposits $7.2 billion on June 30, 2026, according to its quarterly filing with the U.S. Securities and Exchange Commission. Those figures are as of the end of June, while the earnings statement reports asset-quality indicators through September 30. The company announced a regular cash dividend of $0.15 per share on October 22. The dividend is payable to shareholders of record on November 15, on or as soon as practicable after November 30, 2026.
The company's shares, traded under the ticker BFST, closed at $31.8 on October 23, according to EL7 data, three days before the results were published. Management was scheduled to discuss the results in a conference call and webinar on October 26 at 9:00 a.m. Central Time. The company's consolidated net income was also $22.856 million in the third quarter of 2025, compared with $17.843 million in the same period of 2024, according to its SEC filing. Those figures provide annual context, while the company's statement compares the current third-quarter results with the previous quarter. No share price after the results announcement was included in the available facts.