Business First Bancshares (BFST) Q4 2024 earnings summary

Executive summary

• Achieved significant progress on strategic goals in 2024, with strong asset, loan, and deposit growth driven by the Oakwood Bancshares acquisition and organic expansion.

• Expanded client base, improved net interest margin, and maintained disciplined loan and deposit pricing, with Texas now representing 41% of credit exposure.

• Completed Oakwood Bancshares and SBA loan service provider acquisitions, both ahead of forecasts on earnings and retention, boosting Texas market presence.

• Achieved #1 deposit market share among Louisiana-headquartered banks and continued a strong M&A track record.

• Focused on expense management while investing in technology and talent to support growth toward $10 billion in assets.

Financial highlights

• Q4 2024 GAAP net income was $15.1 million, including $4.8 million one-time CECL provision and $168,000 merger expense; core net income was $19.5 million and EPS $0.66.

• Total loans held for investment increased $761.3 million (58% annualized); organic loan growth was $62.8 million (4.8% annualized) in Q4.

• Total deposits rose $870.4 million (61.4% annualized); organic deposit growth was $156.8 million (11.1% annualized) in Q4.

• Net interest margin expanded to 3.61% in Q4 2024; core efficiency ratio at 63.09%.

• Non-interest income for Q4 was $11.9 million, with strong contributions from swaps, SBA, and BOLI.

Outlook and guidance

• Expect continued low to mid-single-digit NIM expansion per quarter in 2025, with potential for 3.65%-3.75% NIM by year-end.

• Non-interest income projected at $40–$50 million for 2025, with growth driven by diversified sources such as SBA and swaps.

• Loan growth guidance remains mid-single digits, balancing capital structure and deposit growth.

• No material cost savings expected from Oakwood acquisition in 2025; benefits anticipated in 2026.

• Management expects continued focus on core deposit growth, liquidity optimization, and leveraging M&A for expansion.