Business First Bancshares reports $23.2 million net income for Q3 2026

Business First Bancshares, Inc. reported unaudited net income available to common shareholders of $23.2 million, or $0.71 per diluted common share, for the quarter ended September 30, 2026. These figures represent increases of $0.4 million and $0.01, respectively, compared to the prior quarter. On a non-GAAP basis, core net income available to common shareholders was $26.0 million, or $0.79 per diluted common share, up $2.7 million and $0.08 from the linked quarter.

Jude Melville, chairman, president, and CEO of Business First, attributed the results to disciplined execution, including the completion of the conversion of Progressive Bank. Melville stated that the company grew loans and deposits at a balanced pace while expanding its net interest margin by 12 basis points and controlling non-interest expenses. The board of directors declared a quarterly preferred dividend of $18.75 per share and a common dividend of $0.15 per share on October 22, 2026. Both dividends are scheduled to be paid on November 30, 2026, to shareholders of record as of November 15, 2026.

The company's net interest margin expanded to 3.86% for the quarter, a 13 basis point increase from the linked quarter's 3.73%. On a non-GAAP basis, the margin rose 12 basis points to 3.80%. This expansion was driven by improved loan yields and a reduction in the overall cost of funding, which decreased by 4 basis points to 2.40%. The reduction in funding costs followed decreases of $65.9 million in brokered deposits and $107.8 million in borrowings.

Loans held for investment increased by $121.4 million, or 1.82%, compared to the prior quarter, representing an annualized growth rate of 7.23%. Growth was led by the commercial real estate and construction portfolios, which increased by $72.7 million and $80.7 million, respectively. The residential real estate portfolio decreased by $30.6 million. Deposits grew by $141.2 million, or 1.95%, an annualized rate of 7.74%, with increases in both interest-bearing and noninterest-bearing accounts.

Credit quality metrics remained stable, with loans over 30 days past due totaling $32.5 million, or 0.48% of total loans. The ratio of nonperforming loans to loans held for investment decreased by 2 basis points to 1.24%. Net charge-offs to average quarterly total loans rose to 8 basis points from 4 basis points in the linked quarter, primarily due to one previously fully reserved commercial relationship.

The securities portfolio decreased by $54.4 million, or 5.23%, due to negative pre-tax fair value adjustments and maturities. Accumulated other comprehensive loss increased from $35.8 million to $54.9 million during the quarter as a result of after-tax fair value adjustments in the securities portfolio.

During the third quarter, Business First repurchased 204,160 shares at a weighted average price of $30.81 per share under its existing stock repurchase program. Since October 2025, the company has repurchased a total of 630,618 common shares for $17.6 million at a weighted average price of $27.88 per share.