Business First Bancshares Reports Strong Financial Growth Following Progressive Bancorp Acquisition

Business First Bancshares, Inc. reported significant financial growth in its latest quarterly results, driven largely by the recent acquisition of Progressive Bancorp, Inc. As of March 31, 2026, the company’s total assets reached $8.9 billion, marking an increase of $692.1 million, or 8.4%, from the previous quarter. Total loans held for investment also rose to $6.7 billion, a $494.8 million increase, while total deposits surged to $7.5 billion, reflecting an increase of $766.4 million, or 11.4%. The net income available to common shareholders for the first quarter of 2026 was $22.2 million, a 15.7% increase from $19.2 million in the same period last year.

The acquisition of Progressive, which was finalized on January 1, 2026, significantly contributed to these results. Progressive brought $773.8 million in total assets, $597.2 million in loans, and $684.9 million in deposits to Business First. This strategic move is expected to enhance the company’s market presence, particularly in Louisiana and Texas, where it operates through its subsidiary, b1BANK. The merger also resulted in an increase in the number of common shares outstanding, with 3,192,367 shares issued to former Progressive shareholders.

Operationally, Business First saw a notable increase in net interest income, which rose to $75.2 million for the three months ended March 31, 2026, up from $66.0 million a year earlier. This increase was attributed to higher loan volumes and the impact of the Progressive acquisition. The company’s net interest margin slightly decreased to 3.65% from 3.68%, while the average yield on loans fell to 6.61% from 6.99%. The allowance for credit losses increased to 1.03% of total loans held for investment, compared to 0.94% at the end of 2025, reflecting a cautious approach to potential credit risks.

In terms of operational metrics, Business First reported a total of $100.8 million in nonaccrual loans as of March 31, 2026, up from $74.5 million at the end of the previous year. The ratio of nonperforming loans to total loans held for investment increased to 1.53% from 1.24%. The company also maintained a strong capital position, with total shareholders’ equity rising to $991.2 million, a 10.5% increase from the previous quarter, supported by net income and the acquisition-related adjustments.

Looking ahead, Business First Bancshares is focused on leveraging the benefits of the Progressive acquisition to drive further growth. The company plans to enhance its operational efficiency through a new partnership with Covecta, aimed at deploying AI technology to streamline banking processes. Additionally, the recent issuance of $85 million in subordinated notes is expected to bolster capital support for future growth initiatives. Overall, the company remains optimistic about its strategic direction and the potential for continued financial performance improvement.