What changed in this filing

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Item 1. Financial Statements

2025-10-30 compared with 2025-08-05 · 129 added, 129 removed, 895 unchanged (22% of the section changed)

4 unchanged sentences

(Dollars in thousands, except per share data)

June 30, 2025

September 30, 2025

(Unaudited) December 31,

2 unchanged sentences

Securities Purchased Under Agreements to Resell 25,518 50,835

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

Securities Available for Sale, at Fair Values (Amortized Cost of $ 1,032,124 at September 30, 2025 and $ 973,423 at December 31, 2024)

985,938 893,549

Mortgage Loans Held for Sale 433 717

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

Loans and Lease Receivable, Net of Allowance for Loan Losses of $ 57,062 at September 30, 2025 and $ 54,840 at December 31, 2024

5,963,993 5,926,559

23 unchanged sentences

5,000,000 Shares Authorized;

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

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

71,930 71,930

1 unchanged sentence

50,000,000 Shares Authorized;

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

29,615,370 and 29,552,358 Shares Issued and Outstanding at September 30, 2025 and December 31, 2024, respectively

29,615 29,552

10 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

14 unchanged sentences

Service Charges on Deposit Accounts 2,565 2,723 8,058 7,699

Loss on Sales of Securities ( 47 ) - ( 48 ) ( 1 )

Gain (Loss) on Sales of Securities 77 ( 13 ) 29 ( 14 )

Gain on Sales of Loans 624 122 2,661 2,721

17 unchanged sentences

AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollars in thousands)

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

Consolidated Net Income $ 22,856 $ 17,843 $ 65,502 $ 48,619

Other Comprehensive Income (Loss):

Unrealized Gain (Loss) on Investment Securities 6,390 4,881 19,262 ( 1,536 )

Other Comprehensive Income:

Unrealized Gain on Investment Securities 14,454 27,424 33,716 25,888

Unrealized Gain on Share of Other Equity Investments - - - 14

Reclassification Adjustment for Losses on Sale of AFS Investment Securities Included in Net Income 47 - 48 1

Reclassification Adjustment for (Gains) Losses on Sale of AFS Investment Securities Included in Net Income ( 77 ) 13 ( 29 ) 14

Income Tax Effect ( 3,038 ) ( 5,797 ) ( 7,118 ) ( 5,475 )

Other Comprehensive Income (Loss) 5,076 3,850 15,230 ( 1,199 )

Other Comprehensive Income 11,339 21,640 26,569 20,441

Consolidated Comprehensive Income $ 34,195 $ 39,483 $ 92,071 $ 69,060

3 unchanged sentences

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS ’ EQUITY

FOR THE THREE MONTHS ENDED JUNE 30, 2025 AND 2024

FOR THE THREE MONTHS ENDED SEPTEMBER 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

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

Comprehensive Income:

5 unchanged sentences

- - - ( 3,542 ) - ( 3,542 )

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

Stock Based Compensation Cost - 18 386 - - 404

Balances at September 30, 2024 $ 71,930 $ 25,520 $ 398,237 $ 249,981 $ ( 46,144 ) $ 699,524

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

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

Comprehensive Income:

6 unchanged sentences

Stock Based Compensation Cost - 12 1,279 - - 1,291

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

Balances at September 30, 2025 $ 71,930 $ 29,615 $ 503,325 $ 309,999 $ ( 36,429 ) $ 878,440

The accompanying notes are an integral part of these financial statements

2 unchanged sentences

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS ’ EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2025 AND 2024

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

(Dollars in thousands, except per share data)

8 unchanged sentences

Net Income - - - 48,619 - 48,619

Other Comprehensive Loss - - - - ( 1,199 ) ( 1,199 )

Other Comprehensive Income - - - - 20,441 20,441

Cash Dividends Declared on Preferred Stock, $ 56.25 Per Share

4 unchanged sentences

Stock Based Compensation Cost - 168 821 - - 989

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

Balances at September 30, 2024 71,930 25,520 398,237 249,981 ( 46,144 ) 699,524

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

7 unchanged sentences

Stock Based Compensation Cost - 63 3,301 - - 3,364

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

Balances at September 30, 2025 $ 71,930 $ 29,615 $ 503,325 $ 309,999 $ ( 36,429 ) $ 878,440

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

3 unchanged sentences

(Dollars in thousands)

For the Six Months Ended

For the Nine Months Ended

September 30,

Cash Flows From Operating Activities:

6 unchanged sentences

Net Amortization of Securities 736 1,738

Loss on Sales of Securities 48 1

(Gain) Loss on Sales of Securities ( 29 ) 14

Gain on Sale of Loans ( 807 ) ( 2,299 )

Income on Other Equity Securities ( 1,496 ) ( 1,723 )

(Gain) Loss on Sale of Other Real Estate Owned, Net of Writedowns 230 ( 65 )

Gain on Sale of Other Real Estate Owned, Net of Writedowns ( 199 ) ( 49 )

Other Real Estate Owned Valuation Allowance 259 -

Increase in Cash Value of Life Insurance ( 2,367 ) ( 1,884 )

22 unchanged sentences

Proceeds from Sales of Other Real Estate 4,643 589

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

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

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

For the Six Months Ended

Net (Increase) Decrease in Securities Purchased Under Agreements to Resell 25,317 ( 25,879 )

Net (Increase) Decrease in Federal Funds Sold 96,566 ( 18,846 )

Net Cash Used in Investing Activities ( 37,849 ) ( 293,003 )

For the Nine Months Ended

September 30,

Cash Flows From Financing Activities:

Net Increase (Decrease) in Deposits ( 40,399 ) 314,880

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

Net Increase in Deposits 46,812 392,156

Net Increase in Securities Sold Under Agreements to Repurchase 7,275 2,644

Net Advances on Federal Home Loan Bank Borrowings 11,533 156,004

14 unchanged sentences

Supplemental Schedule for Noncash Investing and Financing Activities:

Change in the Unrealized Gain (Loss) on Securities Available for Sale $ 19,310 $ ( 1,535 )

Change in the Unrealized Gain on Securities Available for Sale $ 33,687 $ 25,902

Change in the Unrealized Gain on Equity Securities $ - $ 14

Change in Deferred Tax Effect on the Unrealized (Gain) Loss on Securities Available for Sale $ ( 4,080 ) $ 322

Change in Deferred Tax Effect on the Unrealized Gain on Securities Available for Sale $ ( 7,118 ) $ ( 5,475 )

Transfer of Loans to Other Real Estate $ 15,940 $ 642

6 unchanged sentences

(the “Company”) and its two direct, wholly-owned subsidiaries, b1BANK (the “Bank”), and Coastal Commerce Statutory Trust I;

and the Bank’s wholly-owned subsidiaries, Business First Insurance, LLC, Smith Shellnut Wilson, LLC, Waterstone LSP, LLC ("Waterstone"), and b1 Securities, LLC ("b1Securities").

and the Bank’s wholly-owned subsidiaries, Business First Insurance, LLC, Smith Shellnut Wilson, LLC ("SSW"), Waterstone LSP, LLC ("Waterstone"), and b1 Securities, LLC ("b1Securities").

The Bank operates out of full-service banking centers and loan production offices in markets across Louisiana, the Dallas/Fort Worth metroplex and Houston, Texas.

69 unchanged sentences

Goodwill Resulting from Merger $ 30,165

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 Company has recorded approximately $ 2.4 million and $ 1.6 million of acquisition-related costs within merger and conversion-related expenses and salaries and benefits for the nine months ended September 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.

32 unchanged sentences

For the Three Months Ended

June 30, For the Six Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

12 unchanged sentences

Note 5 – Securities –

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

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

September 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 June 30, 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 September 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.

June 30, 2025

September 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 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.

As of September 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 June 30, 2025, by contractual maturity are shown below.

The amortized cost and fair values of securities available for sale as of September 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 $ 1,032,124 $ 985,938

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.

Securities available for sale with a fair value of $ 388.0 million and $ 385.4 million, were pledged as collateral on public deposits and for other purposes as required or permitted by law as of September 30, 2025, and December 31, 2024, respectively.

At September 30, 2025, and December 31, 2024, accrued interest receivable on securities was $ 4.4 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 June 30, 2025, and December 31, 2024, are summarized as follows:

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

September 30,

2025 December 31,

10 unchanged sentences

Net Loans $ 5,963,993 $ 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 June 30, 2025, and December 31, 2024.

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.

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

Net deferred loan origination fees were $ 11.3 million and $ 12.6 million at September 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 June 30, 2025, and December 31, 2024, overdrafts of $ 2.1 million and $ 3.0 million, respectively, have been reclassified to loans.

At September 30, 2025, and December 31, 2024, overdrafts of $ 2.7 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 $ 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 unpaid principal balances of mortgages and other loans serviced for others were approximately $ 674.3 million and $ 747.0 million at September 30, 2025 and December 31, 2024, respectively.

The Company had servicing rights of 1.0 million and $ 832,000 recorded at September 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 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 following tables set forth, as of September 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

June 30, 2025

September 30, 2025

(Dollars in thousands)

37 unchanged sentences

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

June 30, 2025 December 31, 2024

September 30, 2025 December 31, 2024

Loan Balance Specific Allocations Loan Balance Specific Allocations

14 unchanged sentences

Loans are graded on a scale of 10 to 80.

Individual loan officers review updated financial information for all pass grade loans to reassess the risk grade, generally on at least an annual basis.

When a loan has a risk grade of 60, it is still considered a pass grade loan;

however, it is considered to be on management’s “watch list,” and subject to additional and more frequent monitoring by both the loan officer and senior credit and risk personnel.

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 June 30, 2025, and December 31, 2024:

Individual loan officers review updated financial information, which may include credit scores, financial statements, collateral valuations and other borrower information, for all pass grade (10-45) loans to reassess the risk grade, generally on at least an annual basis.

When a loan has a risk grade of 50, it is considered to be on management's “watch list,” and subject to additional and more frequent monitoring by both the loan officer and senior credit and risk personnel.

Loans graded 60 or higher have exhibited potential or actual credit weakness that makes their full collection uncertain and are considered classified loans, consisting of substandard (60), doubtful (70) and loss (80) categories.

Generally, loans that are classified are assigned special assets personnel for ongoing monitoring and resolution.

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

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

June 30, 2025

September 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 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.

As of September 30, 2025, and December 31, 2024, loan balances outstanding more than 90 days past due and still accruing interest amounted to $ 3.9 million and $ 860,000 , respectively.

As of September 30, 2025, and December 31, 2024, loan balances outstanding on nonaccrual status amounted to $ 45.4 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 June 30, 2025, and December 31, 2024.

The following tables provide an analysis of the aging of loans and leases as of September 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

June 30, 2025

September 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 June 30, 2025, and December 31, 2024, respectively.

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

September 30,

2025 December 31,

8 unchanged sentences

Total $ 45,362 $ 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 had $ 11.5 million and $ 2.4 million as of September 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 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.

During the periods ended September 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 as of September 30, 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.

These loans are no longer within their deferral periods.

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

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.

At September 30, 2025 and December 31, 2024, accrued interest receivable on loans was $ 32.7 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 six months ended June 30, 2025, the Company redeemed $ 7.0 million of its $ 52.5 million subordinated debt that matures in 2031.

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 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 $ 492.9 million and $ 355.9 million as of June 30, 2025, and December 31, 2024, respectively, consisting of:

The Company had outstanding advances from the FHLB of $ 367.4 million and $ 355.9 million as of September 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 June 30, 2025 and December 31, 2024 was $ 17.3 million and $ 23.3 million, respectively, with interest at 0.89 %.

The loan was made in 2021 and the balance at September 30, 2025 and December 31, 2024 was $ 14.2 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 $ 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 June 30, 2025, and December 31, 2024, with interest at 4.65 % paid monthly.

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

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

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

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

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

One fixed rate loan of $ 25.0 million at both September 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 June 30, 2025, and December 31, 2024, was $ 675,000 and $ 1.7 million, respectively, with interest at 0.52 %.

The balance at September 30, 2025, and December 31, 2024, was $ 169,000 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 June 30, 2025, and December 31, 2024, with interest at 4.84 % paid monthly.

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

One fixed rate loan of $ 25.0 million at both September 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.

One fixed rate loan of $ 25.0 million at both September 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.

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

Principal is due at maturity in September 2028.

One short term, fourteen-day , fixed rate loan of $ 103.0 million at September 30, 2025, with interest at 4.13 %.

Principal and interest was due and paid at maturity in October 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.

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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 fixed rate loan of $ 25.0 million at December 31, 2024, with interest at 4.89 % paid monthly.

Principal was due, paid and renewed at maturity in July 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 $ 1.5 billion remaining on the FHLB line availability at June 30, 2025.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company had an additional $ 1.4 billion remaining on the FHLB line availability at September 30, 2025.

Note 9 – Other Income and Other Expense –

1 unchanged sentence

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

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2025 2024 2025 2024

3 unchanged sentences

Fees and Brokerage Commissions 1,880 1,968 6,008 5,780

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

Pass-Through Income from SBIC and Fintech Partnerships 133 336 638 1,022

Gain on Extinguishment of Debt - - 630 -

4 unchanged sentences

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

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

For the Three Months Ended September 30, For the Nine Months Ended September 30,

2025 2024 2025 2024

11 unchanged sentences

Other 3,491 3,186 11,909 9,759

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

Note 10 – Leases –

The Bank leases certain branch offices through non-cancelable operating leases with terms that range from one to ten years and contain various renewal options for certain of the leases.

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

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 %.

Total Other Expenses $ 13,985 $ 11,745 $ 43,437 $ 35,364

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 10 – Leases –

The Bank leases certain branch offices through non-cancelable operating leases with terms that range from one to ten years and contain various renewal options for certain of the leases.

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

Rental expense under these agreements was $ 6.4 million and $ 4.5 million for the nine months ended September 30, 2025, and 2024, respectively.

At September 30, 2025, the Company had a weighted average lease term of 6.1 years and a weighted average discount rate of 3.86 %.

Future minimum lease payments under these leases are as follows:

(Dollars in thousands)

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

October 1, 2025 through December 31, 2025 $ 1,547

January 1, 2026 through December 31, 2026 5,856

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 $ 1.5 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 has made commitments to extend credit of approximately $ 1.6 billion and $ 1.4 billion at September 30, 2025, and December 31, 2024, respectively, and standby and commercial letters of credit of approximately $ 50.1 million and $ 50.0 million at September 30, 2025 and December 31, 2024, respectively.

As discussed in Note 6, we have a reserve for unfunded loan commitments of $ 4.8 million and $ 3.7 million at September 30, 2025 and December 31, 2024, respectively.

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

4 unchanged sentences

Fair value should be based on the assumptions market participants would use when pricing the asset or liability and establishes a fair value hierarchy that prioritizes the inputs used to develop those assumptions and measure fair value.

The hierarchy requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs.

The hierarchy requires

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

companies to maximize the use of observable inputs and minimize the use of unobservable inputs.

The three levels of inputs used to measure fair value are as follows:

2 unchanged sentences

Observable inputs include inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates) as well as inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

• Level 3 – Includes unobservable inputs and should be used only when observable inputs are unavailable.

4 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 June 30, 2025, and December 31, 2024.

The following tables present the balance of assets and liabilities measured on a recurring basis as of September 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)

June 30, 2025

September 30, 2025

Available for Sale:

15 unchanged sentences

Total $ 894,266 $ - $ 857,049 $ 37,217

The Company reviews fair value hierarchy classifications on a quarterly basis.

Changes in the Company's ability to observe inputs to the valuation may cause reclassification of certain assets or liabilities within the fair value hierarchy.

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

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 June 30, 2025, and December 31, 2024.

The Company reviews fair value hierarchy classifications on a quarterly basis.

Changes in the Company's ability to observe inputs to the valuation may cause reclassification of certain assets or liabilities within the fair value hierarchy.

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 September 30, 2025, and December 31, 2024.

Municipal Corporate

10 unchanged sentences

Realized Gains (Losses) Included in Net Income - -

Unrealized Gains Included in Other Comprehensive Loss 1,803 184

Unrealized Gains (Losses) Included in Other Comprehensive Loss 2,421 ( 72 )

Purchases - -

2 unchanged sentences

Transfers Out of Level 3 - ( 4,000 )

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

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 June 30, 2025.

Balance at September 30, 2025 $ 23,422 $ 8,428

Estimated Valuation Unobservable Range of

1 unchanged sentence

(Dollars in thousands)

June 30, 2025

September 30, 2025

Municipal Securities $ 23,422 Present Value of Expected Future Cash Flow Model Liquidity Premium 1 %

5 unchanged sentences

Individually evaluated loans are Level 3 assets measured using appraisals from external parties of the collateral less any prior liens and adjusted for estimated selling costs.

Adjustments may be made by management based on a customized internally developed discounting matrix.

Repossessed assets are initially recorded at fair value less

Adjustments may be made by management based on a

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

estimated cost to sell, which is generally 10 %.

customized internally developed discounting matrix.

Repossessed assets are initially recorded at fair value less estimated cost to sell, which is generally 10 %.

The fair value of repossessed assets is based on property appraisals and an analysis of similar properties available.

2 unchanged sentences

(Dollars in thousands)

June 30, 2025

September 30, 2025

Individually Evaluated Loans $ 23,723 $ - $ - $ 23,723

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 June 30, 2025, and December 31, 2024 are as follows:

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

Fair Value Level 1 Level 2 Level 3

(Dollars in thousands)

June 30, 2025

September 30, 2025

Financial Assets:

30 unchanged sentences

Total $ 6,994,587 $ 6,979,543 $ - $ 465,834 $ 6,513,709

Note 13– Subsequent Events –

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