What changed in this filing

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Item 1. Financial Statements

2025-08-05 compared with 2025-05-02 · 147 added, 107 removed, 877 unchanged (22% of the section changed)

4 unchanged sentences

(Dollars in thousands, except per share data)

March 31, 2025

June 30, 2025

(Unaudited) December 31,

2 unchanged sentences

Securities Purchased Under Agreements to Resell 25,433 50,835

Securities Available for Sale, at Fair Values (Amortized Cost of $ 987,573 at March 31, 2025 and $ 973,423 at December 31, 2024)

Securities Available for Sale, at Fair Values (Amortized Cost of $ 987,013 at June 30, 2025 and $ 973,423 at December 31, 2024)

926,450 893,549

Mortgage Loans Held for Sale 677 717

Loans and Lease Receivable, Net of Allowance for Loan Losses of $ 56,863 at March 31, 2025 and $ 54,840 at December 31, 2024

Loans and Lease Receivable, Net of Allowance for Loan Losses of $ 58,496 at June 30, 2025 and $ 54,840 at December 31, 2024

5,989,154 5,926,559

23 unchanged sentences

5,000,000 Shares Authorized;

72,010 Shares ($ 1,000 Liquidation Preference) Issued at both March 31, 2025 and December 31, 2024, respectively

72,010 Shares ($ 1,000 Liquidation Preference) Issued at both June 30, 2025 and December 31, 2024, respectively

71,930 71,930

1 unchanged sentence

50,000,000 Shares Authorized;

29,572,297 and 29,552,358 Shares Issued and Outstanding at March 31, 2025 and December 31, 2024, respectively

29,602,970 and 29,552,358 Shares Issued and Outstanding at June 30, 2025 and December 31, 2024, respectively

29,603 29,552

10 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

Interest Income:

36 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

Consolidated Net Income $ 22,103 $ 17,206 $ 42,646 $ 30,776

10 unchanged sentences

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS ’ EQUITY

FOR THE THREE MONTHS ENDED MARCH 31, 2025 AND 2024

FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND 2024

(Dollars in thousands, except per share data)

5 unchanged sentences

Shareholders'

Balances at March 31, 2024 $ 71,930 $ 25,485 $ 398,511 $ 224,742 $ ( 71,634 ) $ 649,034

Comprehensive Income:

Net Income - - - 17,206 - 17,206

Other Comprehensive Income - - - - 3,850 3,850

Cash Dividends Declared on Preferred Stock, $ 18.75 Per Share

- - - ( 1,350 ) - ( 1,350 )

Cash Dividends Declared on Common Stock, $ 0.14 Per Share

- - - ( 3,567 ) - ( 3,567 )

Stock Issuance - - ( 31 ) - - ( 31 )

Stock Based Compensation Cost - 17 ( 629 ) - - ( 612 )

Balances at June 30, 2024 $ 71,930 $ 25,502 $ 397,851 $ 237,031 $ ( 67,784 ) $ 664,530

Balances at March 31, 2025 $ 71,930 $ 29,572 $ 501,609 $ 276,045 $ ( 52,844 ) $ 826,312

Comprehensive Income:

Net Income - - - 22,103 - 22,103

Other Comprehensive Income - - - - 5,076 5,076

Cash Dividends Declared on Preferred Stock, $ 18.75 Per Share

- - - ( 1,350 ) - ( 1,350 )

Cash Dividends Declared on Common Stock, $ 0.14 Per Share

- - - ( 4,169 ) - ( 4,169 )

Stock Based Compensation Cost - 31 437 - - 468

Balances at June 30, 2025 $ 71,930 $ 29,603 $ 502,046 $ 292,629 $ ( 47,768 ) $ 848,440

The accompanying notes are an integral part of these financial statements

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS ’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

(Dollars in thousands, except per share data)

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Income (Loss) Total

Shareholders'

Balances at December 31, 2023 $ 71,930 $ 25,352 $ 397,447 $ 216,115 $ ( 66,585 ) $ 644,259

6 unchanged sentences

- - - ( 7,160 ) - ( 7,160 )

Stock Issuance - - ( 31 ) - - ( 31 )

Stock Based Compensation Cost - 150 435 - - 585

Balances at March 31, 2024 $ 71,930 $ 25,485 $ 398,511 $ 224,742 $ ( 71,634 ) $ 649,034

Balances at June 30, 2024 71,930 25,502 397,851 237,031 ( 67,784 ) 664,530

Balances at December 31, 2024 $ 71,930 $ 29,552 $ 500,024 $ 260,958 $ ( 62,998 ) $ 799,466

7 unchanged sentences

Stock Based Compensation Cost - 51 2,022 - - 2,073

Balances at March 31, 2025 $ 71,930 $ 29,572 $ 501,609 $ 276,045 $ ( 52,844 ) $ 826,312

Balances at June 30, 2025 $ 71,930 $ 29,603 $ 502,046 $ 292,629 $ ( 47,768 ) $ 848,440

The accompanying notes are an integral part of these financial statements.

3 unchanged sentences

(Dollars in thousands)

For the Three Months Ended

For the Six Months Ended

Cash Flows From Operating Activities:

13 unchanged sentences

Gain on Extinguishment of Debt ( 630 ) -

Gain on Sale of Branch ( 3,360 ) -

Changes in Assets and Liabilities:

Decrease in Accrued Interest Receivable 2,131 590

(Increase) Decrease in Other Assets ( 2,040 ) 1,994

Increase in Accrued Interest Receivable ( 880 ) ( 701 )

Increase in Other Assets ( 6,669 ) ( 561 )

Decrease in Accrued Interest Payable ( 1,092 ) ( 10,324 )

Increase (Decrease) in Other Liabilities 3,899 ( 2,194 )

Increase in Other Liabilities 5,638 1,224

Net Cash Provided by Operating Activities 42,747 22,667

4 unchanged sentences

Net Cash Paid in Acquisition - ( 3,279 )

Net Cash Paid in Sale of Branch ( 43,084 ) -

Purchases of Other Equity Securities ( 9,340 ) ( 4,166 )

2 unchanged sentences

Proceeds from Death Benefit of Cash Value of Life Insurance 503 -

Net (Increase) Decrease in Loans 1,311 ( 94,879 )

Net Increase in Loans ( 68,246 ) ( 167,600 )

Net Purchases of Premises and Equipment ( 1,289 ) ( 1,444 )

Gain on Disposal of Premises and Equipment ( 155 ) -

(Gain) Loss on Disposal of Premises and Equipment ( 155 ) 7

Proceeds from Sales of Other Real Estate 3,961 409

Net Decrease in Securities Purchased Under Agreements to Resell 25,402 -

Net (Increase) Decrease in Federal Funds Sold 80,247 ( 60,158 )

Net Decrease in Federal Funds Sold 158,373 37,547

Net Cash Provided by (Used in) Investing Activities 54,706 ( 139,285 )

For the Three Months Ended

For the Six Months Ended

Cash Flows From Financing Activities:

1 unchanged sentence

Net Decrease in Securities Sold Under Agreements to Repurchase ( 64 ) ( 440 )

Net Advances (Repayments) on Federal Home Loan Bank Borrowings ( 38,523 ) 97,008

Repayments on Bank Term Funding Program - ( 300,000 )

Net Advances on Federal Home Loan Bank Borrowings 137,071 94,010

Repayment of Bank Term Funding Program - ( 300,000 )

Repayment of Subordinated Debt ( 6,427 ) -

Costs from Issuance of Common Stock - ( 31 )

Payment of Dividends on Preferred Stock ( 2,700 ) ( 2,700 )

Payment of Dividends on Common Stock ( 8,275 ) ( 7,160 )

Net Cash Provided by (Used in) Financing Activities ( 106,698 ) 114,347

Net Decrease in Cash and Due From Banks ( 6,211 ) ( 40,204 )

Net Cash Provided by Financing Activities 79,206 98,559

Net Increase (Decrease) in Cash and Due From Banks 176,659 ( 18,059 )

Cash and Due From Banks at Beginning of Period 319,098 226,110

29 unchanged sentences

These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future.

Critical accounting estimates that are particularly susceptible to significant change for the Company include the determination of the acquired loans and allowance for credit losses and purchase accounting adjustments (other than loans).

Critical accounting estimates that are particularly susceptible to significant change for the Company include the determination of the acquired loans, allowance for credit losses and purchase accounting adjustments (other than loans).

Other estimates include goodwill, fair value of financial instruments, investment securities and the assessment of income taxes.

57 unchanged sentences

Goodwill Resulting from Merger $ 30,165

The Company has recorded approximately $ 679,000 and $ 1.6 million of acquisition-related costs within merger and conversion-related expenses and salaries and benefits for the three months ended March 31, 2025, and year ended December 31, 2024, respectively.

The Company has recorded approximately $ 1.2 million and $ 1.6 million of acquisition-related costs within merger and conversion-related expenses and salaries and benefits for the six months ended June 30, 2025, and year ended December 31, 2024, respectively.

The following is a description of the methods used to determine the fair values of significant assets acquired and liabilities assumed presented above.

29 unchanged sentences

Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company.

The potential common shares that may be issued by the Company relate to outstanding stock options, unvested restricted stock awards (“RSAs”), unvested restricted stock units ("RSUs") and performance shares, excluding any that were antidilutive.

The potential common shares that may be issued by the Company relate to outstanding stock options and unvested restricted stock awards (“RSAs”), unvested restricted stock units ("RSUs") and performance shares, excluding any that were antidilutive.

In addition, nonvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents are considered participating securities and are included in the computation of EPS pursuant to the two-class method.

For the Three Months Ended

June 30, For the Six Months Ended

2025 2024 2025 2024

(Dollars in thousands, except per share data)

11 unchanged sentences

Note 5 – Securities –

The amortized cost and fair values of securities available for sale as of March 31, 2025, and December 31, 2024 are summarized as follows:

March 31, 2025

The amortized cost and fair values of securities available for sale as of June 30, 2025, and December 31, 2024 are summarized as follows:

June 30, 2025

(Dollars in thousands)

13 unchanged sentences

Total Securities Available for Sale $ 973,423 $ 913 $ 80,787 $ 893,549

The following tables present a summary of securities with gross unrealized losses and fair values at March 31, 2025 and December 31, 2024, aggregated by investment category and length of time in a continued unrealized loss position.

The following tables present a summary of securities with gross unrealized losses and fair values at June 30, 2025, and December 31, 2024, aggregated by investment category and length of time in a continued unrealized loss position.

Due to the nature of these investments and current prevailing market prices, these unrealized losses are considered non-credit related.

March 31, 2025

June 30, 2025

Less Than 12 Months 12 Months or Greater Total

18 unchanged sentences

Total Securities Available for Sale $ 188,945 $ 4,436 $ 637,272 $ 76,351 $ 826,217 $ 80,787

As of March 31, 2025, and December 31, 2024, respectively, no allowance for credit losses was recognized on available for sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to credit quality.

As of June 30, 2025, and December 31, 2024, respectively, no allowance for credit losses was recognized on available for sale securities in an unrealized loss position as management does not believe any of the securities are impaired due to credit quality.

This determination is based on the Company’s analysis of the underlying risk characteristics including credit ratings, historical loss experience, and other qualitative factors.

1 unchanged sentence

Therefore, the Company has determined the unrealized losses are due to changes in market interest rates compared to rates when the securities were acquired.

The amortized cost and fair values of securities available for sale as of March 31, 2025, by contractual maturity are shown below.

The amortized cost and fair values of securities available for sale as of June 30, 2025, by contractual maturity are shown below.

Actual maturities may differ from contractual maturities in mortgage-backed securities because the mortgages underlying the securities may be called or repaid without any penalties.

5 unchanged sentences

Total Securities Available for Sale $ 987,013 $ 926,450

Securities available for sale with a fair value of $ 402.4 million and $ 385.4 million, were pledged as collateral on public deposits and for other purposes as required or permitted by law as of March 31, 2025, and December 31, 2024, respectively.

At March 31, 2025 and December 31, 2024, accrued interest receivable on securities was $ 4.1 million and $ 4.9 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

Securities available for sale with a fair value of $ 375.8 million and $ 385.4 million, were pledged as collateral on public deposits and for other purposes as required or permitted by law as of June 30, 2025, and December 31, 2024, respectively.

At June 30, 2025, and December 31, 2024, accrued interest receivable on securities was $ 5.0 million and $ 4.9 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

BUSINESS FIRST BANCSHARES, INC.

2 unchanged sentences

Note 6 – Loans and the Allowance for Loan Losses –

Loans receivable at March 31, 2025 and December 31, 2024 are summarized as follows:

Loans receivable at June 30, 2025, and December 31, 2024, are summarized as follows:

2025 December 31,

10 unchanged sentences

Net Loans $ 5,989,154 $ 5,926,559

The performing 1-4 family residential, multi-family residential, commercial real estate, and commercial loans, are pledged, under a blanket lien, as collateral securing advances from the FHLB at March 31, 2025 and December 31, 2024.

Commercial and agricultural loans are pledged against the Federal Reserve Banks’ (“FRB”) discount window as of March 31, 2025, and December 31, 2024.

Net deferred loan origination fees were $ 12.0 million and $ 12.6 million at March 31, 2025 and December 31, 2024, respectively, and are netted in their respective loan categories above.

Commercial and agricultural loans are pledged against the Federal Reserve Banks’ (“FRB”) discount window as of June 30, 2025, and December 31, 2024.

Net deferred loan origination fees were $ 11.6 million and $ 12.6 million at June 30, 2025, and December 31, 2024, respectively, and are netted in their respective loan categories above.

In addition to loans issued in the normal course of business, the Company considers overdrafts on customer deposit accounts to be loans and reclassifies overdrafts as loans in its consolidated balance sheets.

At March 31, 2025 and December 31, 2024, overdrafts of $ 7.8 million and $ 3.0 million, respectively, have been reclassified to loans.

At June 30, 2025, and December 31, 2024, overdrafts of $ 2.1 million and $ 3.0 million, respectively, have been reclassified to loans.

The Bank is the lead lender on participations sold, without recourse, to other financial institutions which amounts are not included in the consolidated balance sheets.

The unpaid principal balances of mortgages and other loans serviced for others were approximately $ 739.6 million and $ 747.0 million at March 31, 2025 and December 31, 2024, respectively.

The Company had servicing rights of $ 958,000 and $ 832,000 recorded as of March 31, 2025, and December 31, 2024, respectively, and is recorded within other assets.

The unpaid principal balances of mortgages and other loans serviced for others were approximately $ 707.7 million and $ 747.0 million at June 30, 2025 and December 31, 2024, respectively.

The Company had servicing rights of $ 920,000 and $ 832,000 recorded at June 30, 2025, and December 31, 2024, respectively, and is recorded within other assets.

The Bank grants loans and extensions of credit to individuals and a variety of businesses and corporations located in its general market areas throughout Louisiana and Texas.

32 unchanged sentences

The risk is based on changes in the borrower’s financial condition, which could be affected by numerous factors, including divorce, job loss, illness or other personal hardship, and fluctuations in the value of the real estate or personal property securing the consumer loan, if any.

The following table sets forth, as of March 31, 2025, and December 31, 2024, the balance of the allowance for credit losses by loan portfolio segment.

The following tables set forth, as of June 30, 2025, and December 31, 2024, the balance of the allowance for credit losses by loan portfolio segment.

The allowance for credit losses allocated to each portfolio segment is not necessarily indicative of future losses in any particular portfolio segment and does not restrict the use of the allowance to absorb losses in other portfolio segments.

3 unchanged sentences

Allowance for Credit Losses and Recorded Investment in Loans Receivable

March 31, 2025

June 30, 2025

(Dollars in thousands)

28 unchanged sentences

Recoveries 86 515 14 236 329 1,180

Provision (Recovery) 1,422 892 2,460 3,390 2,345 10,509

Provision 1,422 892 2,460 3,390 2,345 10,509

Ending Balance $ 23,460 $ 7,162 $ 8,036 $ 15,667 $ 515 $ 54,840

6 unchanged sentences

The following table summarizes, by segment, the loan balance and specific allowance allocation for those loans which have been individually evaluated.

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Loan Balance Specific Allocations Loan Balance Specific Allocations

18 unchanged sentences

When a loan has a risk grade of 70 or higher, a special assets officer monitors the loan on an on-going basis.

The following tables set forth the credit quality indicators, disaggregated by loan segment, as of March 31, 2025, and December 31, 2024:

The following tables set forth the credit quality indicators, disaggregated by loan segment, as of June 30, 2025, and December 31, 2024:

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2025

June 30, 2025

(Risk Grade 10-45) Special Mention

124 unchanged sentences

• Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable.

As of March 31, 2025, and December 31, 2024, loan balances outstanding more than 90 days past due and still accruing interest amounted to $ 5.6 million and $ 860,000 , respectively.

As of March 31, 2025, and December 31, 2024, loan balances outstanding on nonaccrual status amounted to $ 35.9 million and $ 24.1 million, respectively.

As of June 30, 2025, and December 31, 2024, loan balances outstanding more than 90 days past due and still accruing interest amounted to $ 2.5 million and $ 860,000 , respectively.

As of June 30, 2025, and December 31, 2024, loan balances outstanding on nonaccrual status amounted to $ 56.4 million and $ 24.1 million, respectively.

The Bank considers all loans more than 90 days past due as nonperforming loans.

The following tables provide an analysis of the aging of loans and leases as of March 31, 2025, and December 31, 2024.

The following tables provide an analysis of the aging of loans and leases as of June 30, 2025, and December 31, 2024.

All loans greater than 90 days past due are generally placed on nonaccrual status.

Aged Analysis of Past Due Loans Receivable

March 31, 2025

June 30, 2025

(Dollars in thousands)

36 unchanged sentences

Total $ 19,937 $ 2,806 $ 20,745 $ 43,488 $ 5,937,911 $ 5,981,399 $ 860

The following table presents non-accrual loans by segment as of March 31, 2025, and December 31, 2024, respectively.

The following table presents non-accrual loans by segment as of June 30, 2025, and December 31, 2024, respectively.

2025 December 31,

8 unchanged sentences

Total $ 56,377 $ 24,147

The Bank had $ 10.8 million and $ 2.4 million as of June 30, 2025 and December 31, 2024, respectively, in non-accrual loans with no specific allowance allocation.

The Bank seeks to assist customers that are experiencing financial difficulty by renegotiating loans within lending regulations and guidelines.

1 unchanged sentence

Additionally, the Bank makes loan modifications with customers who have elected to work with external renegotiation agencies and these modifications provide solutions to customers’ entire unsecured debt structures.

During the periods ended March 31, 2025, and December 31, 2024, the concessions granted to certain borrowers included extending the payment due dates and offering below market contractual interest rates, and were not significant to the consolidated financial statements.

Accrued interest receivable of $ 3.1 million and $ 3.4 million was outstanding as of March 31, 2025, and December 31, 2024, respectively, for all loan deferrals, primarily attributable to the COVID-19 pandemic and, to a much lesser extent, hurricanes which occurred in 2020 and 2021.

During the periods ended June 30, 2025, and December 31, 2024, the concessions granted to certain borrowers included extending the payment due dates and offering below market contractual interest rates, and were not significant to the consolidated financial statements.

Accrued interest receivable of $ 3.0 million and $ 3.4 million was outstanding at both June 30, 2025, and December 31, 2024, for all loan deferrals, primarily attributable to the COVID-19 pandemic and, to a much lesser extent, hurricanes which occurred in 2020 and 2021.

These loans are no longer within their deferral periods.

The accrued interest on the loans is due at their maturity.

At March 31, 2025 and December 31, 2024, accrued interest receivable on loans was $ 29.7 million and $ 30.9 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

At June 30, 2025 and December 31, 2024, accrued interest receivable on loans was $ 31.7 million and $ 30.9 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

BUSINESS FIRST BANCSHARES, INC.

2 unchanged sentences

Note 7 – Long Term Debt –

During the quarter ended March 31, 2025, the Company redeemed $ 7.0 million of its $ 52.5 million subordinated debt that matures in 2031.

As part of this redemption, the Company recognized a $ 630,000 gain on the extinguishment of this debt.

Note 8 – Bank Term Funding Program ( “ BTFP ” ) –

On March 12, 2023, the Federal Reserve Board developed the BTFP, which offered loans to banks with a term of up to one year .

The loans were secured by pledging the banks’ U.S.

treasuries, agency securities, agency mortgage-backed securities, and any other qualifying assets.

These pledged securities were valued at par for collateral purposes.

The Bank participated in the BTFP and had outstanding debt of $ 300.0 million at December 31, 2023.

These loans bore a fixed rate of 4.38 % and matured on March 22, 2024, at which time the Bank repaid them in full.

During the six months ended June 30, 2025, the Company redeemed $ 7.0 million of its $ 52.5 million subordinated debt that matures in 2031.

As part of the redemption, the Company recognized a $ 630,000 gain on the extinguishment of this debt.

Note 8 – Federal Home Loan Bank ( “ FHLB ” ) Borrowings –

The Company had outstanding advances from the FHLB of $ 317.4 million and $ 355.9 million as of March 31, 2025, and December 31, 2024, respectively, consisting of:

The Company had outstanding advances from the FHLB of $ 492.9 million and $ 355.9 million as of June 30, 2025, and December 31, 2024, respectively, consisting of:

One fixed rate loan with an original principal balance of $ 60.0 million.

The loan was made in 2021 and the balance at March 31, 2025 and December 31, 2024 was $ 20.3 million and $ 23.3 million, respectively, with interest at 0.89 %.

The loan was made in 2021 and the balance at June 30, 2025 and December 31, 2024 was $ 17.3 million and $ 23.3 million, respectively, with interest at 0.89 %.

Principal and interest payments are due monthly and the loan matures in November 2026.

One fixed rate loan of $ 875,000 at both March 31, 2025, and December 31, 2024, that was acquired during the TCBI acquisition, with interest at 4.88 % paid monthly.

Principal is due at maturity in April 2025.

One fixed rate loan of $ 25.0 million at both March 31, 2025, and December 31, 2024, with interest at 4.89 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2025, and December 31, 2024, with interest at 4.89 % paid monthly.

Principal is due at maturity in July 2025.

One fixed rate loan of $ 25.0 million at both March 31, 2025, and December 31, 2024, with interest at 4.65 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2025, and December 31, 2024, with interest at 4.65 % paid monthly.

Principal is due at maturity in January 2026.

One fixed rate loan of $ 25.0 million at both March 31, 2025, and December 31, 2024, with interest at 4.56 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2025, and December 31, 2024, with interest at 4.56 % paid monthly.

Principal is due at maturity in July 2026.

One fixed rate loan of $ 25.0 million at both March 31, 2025, and December 31, 2024, with interest at 4.13 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2025, and December 31, 2024, with interest at 4.13 % paid monthly.

Principal is due at maturity in October 2028.

This advance has put options beginning in October 2024.

One fixed rate loan of $ 25.0 million at both March 31, 2025, and December 31, 2024, with interest at 3.92 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2025, and December 31, 2024, with interest at 3.92 % paid monthly.

Principal is due at maturity in October 2030.

This advance has put options beginning in October 2024.

One fixed rate loan of $ 25.0 million at both March 31, 2025, and December 31, 2024, with interest at 3.72 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2025, and December 31, 2024, with interest at 3.72 %paid monthly.

Principal is due at maturity in October 2033.

This advance has put options beginning in October 2024.

One fixed rate loan of $ 25.0 million at both March 31, 2025, and December 31, 2024, with interest at 3.57 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2025, and December 31, 2024, with interest at 3.57 % paid monthly.

Principal is due at maturity in October 2033.

2 unchanged sentences

The loan was made in 2020 and was acquired during the Oakwood acquisition.

The balance at March 31, 2025 and December 31, 2024 was $ 1.2 million and $ 1.7 million, respectively, with interest at 0.52 %.

The balance at June 30, 2025, and December 31, 2024, was $ 675,000 and $ 1.7 million, respectively, with interest at 0.52 %.

Principal and interest payments are due monthly and the loan matures in October 2025.

One fixed rate loan of $ 25.0 million at both March 31, 2025 and December 31, 2024, with interest at 4.84 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2025, and December 31, 2024, with interest at 4.84 % paid monthly.

Principal is due at maturity in December 2026.

One fixed rate loan of $ 25.0 million at both March 31, 2025 and December 31, 2024, with interest at 4.78 % paid monthly.

One fixed rate loan of $ 25.0 million at both June 30, 2025, and December 31, 2024, with interest at 4.78 % paid monthly.

Principal is due at maturity in September 2027.

One fixed rate loan of $ 25.0 million at both June 30, 2025, and December 31, 2024, with interest at 4.73 % paid monthly.

Principal is due at maturity in March 2028.

One fixed rate loan of $ 25.0 million at both June 30, 2025, and December 31, 2024, with interest at 4.69 % paid monthly.

Principal is due at maturity in September 2028.

One fixed rate loan of $ 50.0 million at June 30, 2025, with interest at 4.36 % paid monthly.

Principal is due at maturity in September 2025.

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

One fixed rate loan of $ 25.0 million at both March 31, 2025 and December 31, 2024, with interest at 4.73 % paid monthly.

Principal is due at maturity in March 2028.

One fixed rate loan of $ 25.0 million at both March 31, 2025 and December 31, 2024, with interest at 4.69 % paid monthly.

Principal is due at maturity in September 2028.

One short term, twelve-day , fixed rate loan of $ 20.0 million at March 31, 2025, with interest at 4.38 %.

Principal and interest was due, paid and rolled into a $ 20.0 million renewal, at maturity in April 2025.

One short term, twelve-day , fixed rate loan of $ 150.0 million at June 30, 2025, with interest at 4.38 %.

Principal and interest was due, paid and rolled into a $ 152.0 million renewal, at maturity in July 2025.

One fixed rate loan of $ 875,000 at December 31, 2024, that was acquired during the TCBI acquisition, with interest at 4.88 % paid monthly.

Principal was due, and paid, at maturity in April 2025.

One short term, fifteen-day , fixed rate loan of $ 55.0 million at December 31, 2024, with interest at 4.38 %.

1 unchanged sentence

The renewal was also paid in January 2025.

The Company had an additional $ 1.6 billion remaining on the FHLB line availability at March 31, 2025.

The Company had an additional $ 1.5 billion remaining on the FHLB line availability at June 30, 2025.

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 10 – Other Income and Expense –

Note 9 – Other Income and Other Expense –

The Company has a single reportable operating segment which is presented as the Consolidated Statements of Income.

An analysis of other income for the Company's single reportable operating segment is as follows:

For the Three Months Ended March 31,

(Dollars in thousands)

For the Three Months Ended June 30, For the Six Months Ended June 30,

2025 2024 2025 2024

(Dollars in thousands) (Dollars in thousands)

Debit Card and ATM Fee Income $ 1,958 $ 1,950 $ 3,816 $ 3,726

1 unchanged sentence

Fees and Brokerage Commissions 1,980 1,875 4,128 3,812

Pass-Through Income from SBIC Partnerships 751 294

Pass-Through Income (Loss) from SBIC and Fintech Partnerships ( 246 ) 392 505 686

Gain on Extinguishment of Debt - - 630 -

Gain on Sale of Branch 3,360 - 3,360 -

Swap Fee Income 808 285 1,547 514

2 unchanged sentences

An analysis of other expenses for the Company's single reportable operating segment is as follows:

For the Three Months Ended March 31,

(Dollars in thousands)

For the Three Months Ended June 30, For the Six Months Ended June 30,

2025 2024 2025 2024

(Dollars in thousands) (Dollars in thousands)

Advertising and Promotions $ 1,088 $ 966 $ 2,379 $ 2,111

9 unchanged sentences

Other 4,450 3,232 8,418 6,573

Total Other Expenses $ 13,725 $ 11,749

Total Other Income $ 15,727 $ 11,870 $ 29,452 $ 23,619

Note 10 – Leases –

1 unchanged sentence

Certain leases provide for increases in minimum monthly rental payments as defined by the lease agreement.

Rental expense under these agreements was $ 2.3 million and $ 1.5 million for the three months ended March 31, 2025, and 2024, respectively.

At March 31, 2025, the Company had a weighted average lease term of 6.4 years and a weighted average discount rate of 3.81 %.

Rental expense under these agreements was $ 4.2 million and $ 3.0 million for the six months ended June 30, 2025, and 2024, respectively.

At June 30, 2025, the Company had a weighted average lease term of 6.2 years and a weighted average discount rate of 3.82 %.

BUSINESS FIRST BANCSHARES, INC.

3 unchanged sentences

(Dollars in thousands)

April 1, 2025 through December 31, 2025 $ 4,513

July 1, 2025 through December 31, 2025 $ 3,013

January 1, 2026 through December 31, 2026 5,735

13 unchanged sentences

The Bank uses the same credit policies in making such commitments and conditional obligations as it does for instruments that are included in the balance sheet.

In the normal course of business, the Bank has made commitments to extend credit of approximately $ 1.3 billion and $ 1.4 billion at March 31, 2025, and December 31, 2024, respectively, and standby and commercial letters of credit of approximately $ 49.9 million and $ 50.0 million at March 31, 2025 and December 31, 2024, respectively.

As discussed in Note 6, we have a reserve for unfunded loan commitments of $ 3.5 million and $ 3.7 million at March 31, 2025 and December 31, 2024, respectively.

In the normal course of business, the Bank has made commitments to extend credit of approximately $ 1.5 billion and $ 1.4 billion at June 30, 2025, and December 31, 2024, respectively, and standby and commercial letters of credit of approximately $ 51.0 million and $ 50.0 million at June 30, 2025 and December 31, 2024, respectively.

As discussed in Note 6, we have a reserve for unfunded loan commitments of $ 3.3 million and $ 3.7 million at June 30, 2025 and December 31, 2024, respectively.

In the normal course of business, the Bank is involved in various legal proceedings.

18 unchanged sentences

The fair values of mortgage loans held for sale are based on commitments on hand from investors within the secondary market for loans with similar characteristics.

The following tables present the balance of assets and liabilities measured on a recurring basis as of March 31, 2025, and December 31, 2024.

The following tables present the balance of assets and liabilities measured on a recurring basis as of June 30, 2025, and December 31, 2024.

The Company did not record any liabilities at fair value for which measurement of the fair value was made on a recurring basis.

1 unchanged sentence

(Dollars in thousands)

March 31, 2025

June 30, 2025

Available for Sale:

20 unchanged sentences

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The table below provides a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, as of March 31, 2025, and December 31, 2024.

The table below provides a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, as of June 30, 2025, and December 31, 2024.

Municipal Corporate

15 unchanged sentences

Transfers Out of Level 3 - -

Balance at March 31, 2025 $ 25,745 $ 12,509

The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at March 31, 2025.

Balance at June 30, 2025 $ 23,294 $ 12,684

Estimated Valuation Unobservable Range of

1 unchanged sentence

(Dollars in thousands)

March 31, 2025

June 30, 2025

Municipal Securities $ 23,294 Present Value of Expected Future Cash Flow Model Liquidity Premium 1 %

15 unchanged sentences

(Dollars in thousands)

March 31, 2025

June 30, 2025

Individually Evaluated Loans $ 74,649 $ - $ - $ 74,649

32 unchanged sentences

Commitments to Extend Credit and Standby and Commercial Letters of Credit – The fair values of commitments to extend credit and standby and commercial letters of credit do not differ significantly from the commitment amount and are therefore omitted from this disclosure.

The estimated approximate fair values of the Bank’s financial instruments as of March 31, 2025, and December 31, 2024 are as follows:

The estimated approximate fair values of the Bank’s financial instruments as of June 30, 2025, and December 31, 2024 are as follows:

Fair Value Level 1 Level 2 Level 3

(Dollars in thousands)

March 31, 2025

June 30, 2025

Financial Assets:

31 unchanged sentences

Note 13– Subsequent Events –

On April 4, 2025, the Company sold the Kaplan banking center, located in Kaplan, Louisiana, to Currency Bank headquartered in Baton Rouge, Louisiana, in accordance with the Branch Purchase and Assumption Agreement dated December 12, 2024.

The sale included $ 51.2 million in deposits, $ 2.3 million in loans, and $ 1.4 million in fixed assets, net of depreciation.

The deposit premium paid by Currency Bank as consideration was 8.00 % of total deposits assumed at closing.

The loans and deposits associated with the Kaplan banking center were included in the consolidated balance sheet as of March 31, 2025.

On July 7, 2025, the Company and Progressive Bancorp, Inc., a Louisiana corporation ("Progressive"), entered into a definitive agreement providing for the acquisition by the Company of Progressive and its wholly-owned bank subsidiary, Progressive Bank.

Progressive had approximately $ 752.2 million of total assets, $ 673.0 million of deposits and $ 582.9 million of loans as of March 31, 2025.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements