Business First Bancshares (BFST) Q4 2025 earnings summary

Executive summary

• Achieved record FY 2025 net income available to common shareholders of $82.5 million, up 38% year-over-year, and core net income of $83.5 million, up 27% year-over-year, with diluted EPS at $2.79 and core diluted EPS at $2.83, reflecting 13.7% growth.

• Tangible book value per share increased 17.3% year-over-year to $23.36.

• 2025 marked a pivotal year with major core conversions, new software platforms, and the acquisition of Progressive Bank, enhancing scale and operational capabilities.

• Internal divisions for fraud prevention, loan review, and audit were strengthened, and the correspondent banking initiative expanded to over 175 community banks.

• ROAA exceeded the 1% goal, reaching 1.06% for the year and 1.16% in Q4, with a 14% annual EPS increase and 20% Q4 year-over-year EPS growth.

Financial highlights

• Net interest margin for FY 2025 was 3.69%, up from 3.48% in FY 2024; Q4 GAAP net income and EPS were $21.71 per share, including $2.2M in merger/core conversion expenses and a $995K loss on premises; core EPS was $23.579 per share.

• Total loans grew by $208 million (3.5% year-over-year) to $6.19 billion; total deposits increased by $187 million (2.9% year-over-year) to $6.70 billion.

• Loans held for investment increased $168.4 million (11.1% annualized) quarter-over-quarter; deposits increased $191.7 million (2.95%).

• Core non-interest income reached $13.2M, boosted by swap fee revenue and OREO gains; other income for Q4 2025 was $12.2 million, up $0.6 million sequentially.

• Efficiency ratio improved to 62.55% for FY 2025; core efficiency ratio fell below 60% in Q4.

Outlook and guidance

• Expect mid-single-digit loan growth for 2026, reflecting a more balanced view of paydowns and production.

• Non-interest income projected in the mid- to high-$13M range per quarter, with $1M quarterly contribution from Progressive Bank.

• No further rate cuts assumed for 2026; modest margin improvement anticipated in a slightly down rate environment.

• Efficiency ratio targeted to move into the 50s post-Progressive integration, with continued operating leverage improvement.

• Internal modeling estimates a total deposit beta of 45–55% in a near-term downward rate cycle.