Business First Bancshares (BFST) investor relations material

Executive summary

• Achieved $24.0 million in core net income available to common shareholders for Q1 2026, up 24.7% year-over-year, with core diluted EPS of $0.73, and completed the Progressive Bank acquisition, adding $774 million in assets and nine branches in North Louisiana.

• Total assets reached $8.9 billion, with $6.7 billion in gross loans and $7.5 billion in deposits as of March 31, 2026.

• Tangible book value per share increased ~21% since Q2'24, reflecting strong capital generation and acquisition integration.

• Expanded team with both acquired and organic hires, including key leadership in Houston and Texas, and initiated a partnership with Covecta for agentic AI to drive efficiency and cost control.

• Maintained focus on cost control, with non-interest expenses lower than anticipated.

Financial highlights

• GAAP net income was $22.2 million and EPS $0.68; core net income was $24 million and EPS $0.73, excluding non-core items.

• Net interest margin was 3.65% for Q1 2026, with core efficiency ratio at 62.0%.

• Core ROAA was 1.10% and core ROACE was 10.57% for the quarter.

• Total loans grew by $495 million sequentially (+7.99%), or $703 million year-over-year (+11.8%).

• Total deposits increased by $766 million year-over-year (+11.2%), with organic deposit growth of $81.5 million (4.4% annualized).

• Core non-interest income was $13.9 million, driven by swap fees and SBA loan sales.

• Core non-interest expense was $55.2 million, up $5 million from prior quarter, reflecting Progressive impact.

Outlook and guidance

• Reiterated full-year loan growth guidance, expecting mid-single-digit annualized growth, with higher growth in Q2 and Q3.

• Forecasts 1.25% ROA end-of-year run rate.

• Expects most Progressive cost savings to be realized in Q4, targeting $11 million annualized savings.

• Anticipates low- to mid-single-digit margin expansion in coming quarters.

• Internal modeling suggests a deposit beta of 45–55% in a slightly up or down rate environment.

• No material synergies from the Progressive acquisition are expected until after system conversion in Q3.