Business First Bancshares (BFST) investor relations material

Executive summary

• Achieved Q2 2026 core net income of $23.3 million ($0.71 EPS), with net interest margin expanding to 3.73% and core ROAA at 1.05%.

• Total assets reached $8.9 billion as of June 30, 2026, up 8.4% from year-end 2025, driven by acquisitions and organic growth.

• Completed acquisitions of Progressive Bank/Bancorp and American Planning Corporation, expanding market presence and advisory services.

• Executed a sizable loan sale and reduced non-performing loans by about 30%, improving credit quality.

• Revenue from the financial services group is running 20% ahead of last year at mid-year, with $4.56 million in Q2'26.

Financial highlights

• Net interest income for the six months ended June 30, 2026, was $153.0 million, up 15.0% year-over-year; net interest margin was 3.73% for Q2 and 3.69% for the first half.

• Total loans held for investment increased 7.6% to $6.7 billion; total deposits rose 8.0% to $7.2 billion since year-end 2025.

• Core efficiency ratio was 63.9% for Q2 2026.

• Book value per common share increased to $28.79; tangible book value per share rose to $23.61.

• Return on average assets was 1.02% (1.05% core); return on average equity was 9.80% (10.05% core) for the six months ended June 30, 2026.

Outlook and guidance

• Management expects continued organic growth, integration of acquisitions, and disciplined capital deployment, with high single-digit annualized loan growth targeted for Q3 and Q4.

• Expenses projected to decline in Q3 and Q4 as marketing/legal costs normalize and cost saves are realized.

• No further interest rate cuts assumed for 2026; modest margin improvement expected in stable or slightly changing rate environments.

• Continued improvement in credit quality and further reduction in NPLs anticipated.

• Targeting 1.25% ROA exiting Q4, with focus on structural profitability and expense discipline.