Business First Bancshares Reports 57.1% Increase in Net Income for Q1 2025

Business First Bancshares, Inc. reported its financial results for the first quarter of 2025, revealing a net income of $20.5 million, or $0.65 per diluted share, marking a significant increase of 57.1% from $13.6 million, or $0.48 per diluted share, in the same period last year. The company's total interest income rose to $113.7 million, up from $96.0 million a year earlier, driven primarily by higher interest and fees on loans, which increased to $103.0 million from $85.9 million. The net interest income after provisions for credit losses was $63.2 million, compared to $50.3 million in the prior year, reflecting a 25.6% year-over-year growth.

In terms of balance sheet performance, total assets decreased slightly to $7.8 billion as of March 31, 2025, down from $7.9 billion at the end of 2024. Total loans held for investment remained stable at approximately $6.0 billion, while total deposits also saw a decline to $6.5 billion from $6.6 billion. The allowance for credit losses increased to $60.4 million, representing 1.01% of total loans, compared to 0.98% at the end of the previous year. The company reported a ratio of nonperforming loans to total loans of 0.69%, up from 0.42% at the end of 2024.

Strategically, Business First Bancshares has been active in expanding its footprint through acquisitions. The company completed the merger with Oakwood Bancshares, Inc. in October 2024, which contributed to the increase in net income and net interest income for the quarter. Additionally, the acquisition of Waterstone LSP, LLC in January 2024 has enhanced its service offerings in small business administration lending. The company also announced the sale of its Kaplan banking center in April 2025, which included $51.2 million in deposits and $2.3 million in loans.

Operationally, the company reported a slight decrease in its employee headcount, reflecting ongoing adjustments following its recent acquisitions. The total number of employees as of March 31, 2025, was not disclosed, but the company noted that it continues to focus on integrating its operations and retaining key personnel. The company’s capital ratios improved, with a total capital ratio of 13.03% as of March 31, 2025, compared to 12.75% at the end of 2024, indicating a strong capital position.

Looking ahead, Business First Bancshares expressed optimism about its growth trajectory, driven by its strategic acquisitions and a focus on enhancing its service offerings. The company anticipates continued growth in net interest income and overall profitability, although it remains vigilant regarding potential economic challenges and their impact on credit quality. The management emphasized its commitment to maintaining a strong balance sheet and effective risk management practices as it navigates the evolving financial landscape.