Business First Bancshares Approves Share Repurchase of Up to $30 Million
Key Facts
Business First Bancshares’ board approved a program to repurchase up to $30 million in common stock over 24 months, from October 29, 2026, through October 28, 2028, according to a company statement published via GlobeNewswire. The authorization sets a limit on purchases and their time frame; the statement does not say third-quarter results were the reason for its approval. The announcement follows the release of quarterly results, which showed net income available to common shareholders rising to $23.2 million, or $0.71 per diluted share. Net income increased $0.4 million and earnings per share rose $0.01 from the previous quarter. The company also approved a quarterly cash dividend of $0.15 per common share.
The new authorization provides a two-year framework for repurchases, following a previous program the company used in recent periods. In the third quarter, Business First repurchased 204,160 shares with a market value of $6.3 million, at an average price of $30.81 per share, according to its filing with the U.S. Securities and Exchange Commission. Since October 2025, the company has repurchased a total of 630,618 shares under the previous program. Those purchases were valued at $17.6 million, at an average of $27.88 per share. These figures place the third-quarter purchases within the record of the previous program, while the new authorization begins on October 29, 2026.
On earnings, core net income available to common shareholders, a measure that excludes certain revenues and expenses, was $26.0 million in the quarter ended September 30, 2026, or $0.79 per diluted share. The measure rose $2.7 million, while core earnings per share increased $0.08 from the previous quarter. Net interest income was $80.7 million, compared with $77.8 million in the previous quarter. The net interest margin widened to 3.86% from 3.73%, an increase of 13 basis points, the company said. The company attributed the wider margin to an improved yield on its loan book and a lower overall cost of funding.
The overall cost of funding, which includes noninterest-bearing deposits, fell to 2.40% in the third quarter from 2.44% in the previous quarter, a decline of 4 basis points. Loans grew by $121.4 million during the quarter, while deposits increased by $141.2 million; the company said Houston and southwest Louisiana markets led the growth. By contrast, nonperforming loans rose to 1.24% of loans held for investment on September 30, 2026, from 0.82% a year earlier. Net charge-offs also increased to 8 basis points of average quarterly loans, from 4 basis points in the previous quarter. The company attributed the increase mainly to a single commercial relationship that had been fully covered by previous provisions.
The securities portfolio declined by $54.4 million, or 5.23%, from the previous quarter, and the company said it was affected by $24.2 million in negative pretax fair-value adjustments. Tangible book value per common share rose to $23.71 on September 30 from $23.61 at the end of the previous quarter. The parent company operates in Louisiana and Texas through its bank, b1BANK, and had assets of $8.9 billion, according to the earnings statement. The $0.15-per-share dividend is payable to shareholders of record on November 15, 2026. It is scheduled to be paid on or shortly after November 30, according to the company’s filing.
In the market, the company’s shares, listed under the ticker BFST, closed at $31.64 on October 28, 2026, after closing at $31.87 in the previous session, according to EL7 data. The first of those closing sessions preceded the start of the new repurchase program on October 29. The data provided do not include a post-announcement price with which to measure the stock’s response to the authorization. The announcement sets the program period through October 28, 2028, while November 15, 2026, is the record date for shareholders eligible for the cash dividend. The dividend is scheduled to be paid on or shortly after November 30.