Business First Bancshares, Inc. reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company’s total assets increased to $6.09 billion, up from $5.83 billion at the end of 2023, reflecting a growth of 4.6%. Total loans and lease receivables rose to $5.18 billion, compared to $4.95 billion at the end of the previous fiscal year, marking a 4.6% increase. Total deposits also saw a notable rise, reaching $5.64 billion, up 7.5% from $5.25 billion.

In terms of profitability, the net income for the third quarter of 2024 was $17.84 million, a decrease from $20.46 million in the same quarter of 2023. For the nine months ended September 30, 2024, net income available to common shareholders was $44.57 million, down 12.9% from $51.17 million in the prior year. Earnings per share for the third quarter were $0.65, down from $0.76 in the previous year, while for the nine months, earnings per share were $1.77, compared to $2.04.

The company’s net interest income for the third quarter was $56.11 million, slightly up from $55.29 million year-over-year. However, the net interest margin decreased to 3.51% from 3.61%. The increase in interest income was attributed to a higher average yield on loans, which rose to 7.12% from 6.84%. Conversely, interest expenses also increased significantly, reflecting the rising cost of funds.

Strategically, Business First Bancshares completed the acquisition of Waterstone LSP, LLC for $3.3 million in cash on January 31, 2024, enhancing its SBA lending services. Additionally, the company announced a merger with Oakwood Bancshares, Inc., effective October 1, 2024, which had total assets of $863.6 million and total deposits of $741.3 million as of September 30, 2024.

The allowance for credit losses increased to $45.04 million, representing 0.86% of total loans held for investment, slightly down from 0.88% at the end of 2023. Nonperforming loans rose to $26.06 million, up from $17.07 million, indicating a deterioration in asset quality.

Overall, while Business First Bancshares experienced growth in assets, loans, and deposits, profitability metrics showed declines, influenced by increased interest expenses and a rise in nonperforming loans. The strategic acquisitions and mergers are expected to bolster the company’s market position moving forward.

About Business First Bancshares, Inc.

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