Business First Bancshares Reports Strong Q2 2025 Financial Performance with $20.8 Million Net Income

Business First Bancshares, Inc. reported a solid financial performance for the second quarter of 2025, with net income available to common shareholders reaching $20.8 million, or $0.70 per share, compared to $15.9 million, or $0.63 per share, in the same period last year. For the first half of 2025, net income was $39.9 million, a 42.3% increase from $28.1 million in the first half of 2024. The company attributed this growth primarily to the acquisition of Oakwood Bancshares, which was completed in October 2024, and a significant increase in net interest income, which rose to $133.0 million for the six months ended June 30, 2025, up 26.0% from the prior year.

Total assets for Business First Bancshares increased to $7.9 billion as of June 30, 2025, reflecting a $91.2 million increase from the end of 2024. The company's loan portfolio also saw a modest rise, with total loans held for investment reaching $6.0 billion, a $66.3 million increase, while total deposits decreased by $91.7 million to $6.4 billion. The decrease in deposits was attributed to competitive pressures in the market, although noninterest-bearing deposits increased by 4.0% to $1.4 billion.

In terms of operational developments, Business First Bancshares has been active in expanding its footprint through strategic acquisitions. The company completed the acquisition of Waterstone LSP, LLC in January 2024, enhancing its small business administration lending services. Additionally, the company announced plans to acquire Progressive Bancorp, Inc., which had approximately $752.2 million in total assets as of March 31, 2025. This acquisition is expected to further bolster the company's market presence in Louisiana and Texas.

The company reported an increase in its allowance for credit losses, which rose to $61.8 million, or 1.02% of total loans held for investment, compared to 0.98% at the end of 2024. This increase was primarily due to a deterioration in the macroeconomic outlook and a rise in nonaccrual loans, which totaled $56.4 million as of June 30, 2025, up from $24.1 million at the end of the previous year. Despite these challenges, Business First Bancshares maintained a strong capital position, with total shareholders' equity increasing to $848.4 million, reflecting a 6.1% rise from December 31, 2024.

Looking ahead, Business First Bancshares remains optimistic about its growth trajectory, driven by strategic acquisitions and a focus on expanding its lending capabilities. The company is committed to managing its credit risk and maintaining its capital ratios in compliance with regulatory requirements, positioning itself for continued success in the competitive banking landscape.