What changed in this filing

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Item 1. Financial Statements

2026-05-01 compared with 2025-10-30 · 265 added, 296 removed, 728 unchanged (44% of the section changed)

4 unchanged sentences

(Dollars in thousands, except per share data)

September 30, 2025

(Unaudited) December 31,

March 31, 2026

Cash and Due from Banks $ 589,804 $ 411,175

1 unchanged sentence

Securities Purchased Under Agreements to Resell 30,743 25,587

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

Securities Available for Sale, at Fair Values (Amortized Cost of $ 1,093,880 at March 31, 2026 and $ 1,031,432 at December 31, 2025)

1,045,817 989,229

Mortgage Loans Held for Sale 480 1,094

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

Loans and Lease Receivable, Net of Allowance for Loan Losses of $ 63,655 at March 31, 2026 and $ 53,959 at December 31, 2025

6,620,608 6,135,531

23 unchanged sentences

5,000,000 Shares Authorized;

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

72,010 Shares ($ 1,000 Liquidation Preference) Issued at both March 31, 2026 and December 31, 2025, respectively

$ 71,930 $ 71,930

1 unchanged sentence

50,000,000 Shares Authorized;

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

32,624,887 and 29,510,668 Shares Issued and Outstanding at March 31, 2026 and December 31, 2025, respectively

32,625 29,511

9 unchanged sentences

(Dollars in thousands, except per share data)

For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

For the Three Months Ended March 31,

Interest Income:

20 unchanged sentences

Occupancy and Equipment Expense 8,122 7,356

Merger and Conversion-Related Expense 1,377 250

Other Expenses 14,933 13,475

11 unchanged sentences

AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Dollars in thousands)

For the Three Months Ended

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

For the Three Months Ended March 31,

Consolidated Net Income $ 23,564 $ 20,543

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

Other Comprehensive Income (Loss):

Unrealized Gain (Loss) on Investment Securities ( 5,780 ) 12,872

Reclassification Adjustment for (Gains) Losses on Sale of AFS Investment Securities Included in Net Income ( 80 ) 1

Income Tax Effect 1,238 ( 2,719 )

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

Other Comprehensive Income (Loss) ( 4,622 ) 10,154

Consolidated Comprehensive Income $ 18,942 $ 30,697

3 unchanged sentences

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS ’ EQUITY

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025 AND 2024

FOR THE THREE MONTHS ENDED March 31, 2026 AND 2025

(Dollars in thousands, except per share data)

5 unchanged sentences

Shareholders'

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

Comprehensive Income:

6 unchanged sentences

Stock Based Compensation Cost — 20 1,585 — — 1,605

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

Comprehensive Income:

Net Income - - - 22,856 - 22,856

Other Comprehensive Income - - - - 11,339 11,339

Cash Dividends Declared on Preferred Stock, $ 18.75 Per Share

- - - ( 1,351 ) - ( 1,351 )

Cash Dividends Declared on Common Stock, $ 0.14 Per Share

Balances at March 31, 2025

$ 71,930 $ 29,572 $ 501,609 $ 276,045 $ ( 52,844 ) $ 826,312

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

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

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS ’ EQUITY

FOR THE NINE MONTHS ENDED SEPTEMBER 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, 2025 $ 71,930 $ 29,511 $ 502,155 $ 326,574 $ ( 33,287 ) $ 896,883

1 unchanged sentence

Net Income — — — 23,564 — 23,564

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

Other Comprehensive Loss — — — — ( 4,622 ) ( 4,622 )

Cash Dividends Declared on Preferred Stock, 18.75 Per Share

4 unchanged sentences

Stock Based Compensation Cost — 21 880 — — 901

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

Comprehensive Income:

Net Income - - - 65,502 - 65,502

Other Comprehensive Income - - - - 26,569 26,569

Cash Dividends Declared on Preferred Stock, $ 56.25 Per Share

- - - ( 4,051 ) - ( 4,051 )

Cash Dividends Declared on Common Stock, $ 0.42 Per Share

Stock Repurchases — ( 99 ) ( 2,651 ) — — ( 2,750 )

Balances at March 31, 2026

$ 71,930 $ 32,625 $ 580,640 $ 343,890 $ ( 37,909 ) $ 991,176

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

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 Nine Months Ended

September 30,

For the Three Months Ended March 31,

Cash Flows From Operating Activities:

2 unchanged sentences

Provision for Credit Losses 2,278 2,812

Depreciation and Amortization 4,270 3,693

Net Accretion of Purchase Accounting Adjustments ( 1,362 ) ( 1,788 )

Depreciation and Amortization of Premises and Equipment 1,625 1,438

Net Amortization (Accretion) of Purchase Accounting Adjustments 73 ( 513 )

Stock Based Compensation Cost 901 1,605

Net Amortization of Securities 736 1,738

Net Amortization (Accretion) of Securities ( 199 ) 350

(Gain) Loss on Sales of Securities ( 80 ) 1

1 unchanged sentence

Income on Other Equity Securities ( 416 ) ( 1,064 )

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

(Gain) Loss on Sale of Other Real Estate Owned, Net of Writedowns ( 41 ) 286

Other Real Estate Owned Valuation Allowance ( 69 ) —

Gain on Disposal of Premises and Equipment ( 28 ) ( 155 )

Increase in Cash Value of Life Insurance ( 831 ) ( 808 )

Deferred Income Tax Expense 1,084 996

Deferred Income Tax (Benefit) Expense ( 2,068 ) 1,627

Gain on Extinguishment of Debt — ( 630 )

Gain on Sale of Branch ( 3,360 ) -

Changes in Assets and Liabilities:

Increase in Accrued Interest Receivable ( 1,313 ) ( 2,631 )

Increase in Other Assets ( 6,326 ) ( 4,339 )

Decrease in Accrued Interest Receivable 3,248 2,131

(Increase) Decrease in Other Assets 9,362 ( 2,040 )

Decrease in Accrued Interest Payable ( 967 ) ( 613 )

Increase in Other Liabilities 11,467 9,664

Increase (Decrease) in Other Liabilities ( 9,292 ) 3,899

Net Cash Provided by Operating Activities 26,690 28,571

4 unchanged sentences

Net Cash Paid in Acquisition 93,252 —

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

Purchases of Other Equity Securities ( 104 ) ( 1,121 )

Redemption of Other Equity Securities 11,461 2,338

Purchase of Life Insurance - ( 3,000 )

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

Net Increase in Loans ( 58,890 ) ( 224,512 )

Net Purchases of Premises and Equipment ( 1,623 ) ( 1,837 )

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

Net Decrease in Loans 85,545 1,311

Net (Purchases) Disposals of Premises and Equipment 888 ( 1,067 )

Proceeds from Sales of Other Real Estate 859 3,961

Net (Increase) Decrease in Securities Purchased Under Agreements to Resell ( 5,156 ) 246

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,

Net Decrease in Federal Funds Sold 84,136 80,247

Net Cash Provided by in Investing Activities 253,759 71,916

For the Three Months Ended March 31,

Cash Flows From Financing Activities:

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

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

Net Increase (Decrease) in Deposits 81,497 ( 52,774 )

Net Decrease in Securities Sold Under Agreements to Repurchase ( 1,028 ) ( 3,575 )

Net Repayments on Federal Home Loan Bank Borrowings ( 173,291 ) ( 38,523 )

Repayment of Subordinated Debt — ( 6,370 )

Costs from Issuance of Common Stock - ( 31 )

Repurchase of Common Stock ( 2,750 ) —

Payment of Dividends on Preferred Stock ( 1,350 ) ( 1,350 )

Payment of Dividends on Common Stock ( 4,898 ) ( 4,106 )

Net Cash Provided by Financing Activities 42,674 236,020

Net Cash Used in Financing Activities ( 101,820 ) ( 106,698 )

Net Increase (Decrease) in Cash and Due From Banks 178,629 ( 6,211 )

7 unchanged sentences

Supplemental Schedule for Noncash Investing and Financing Activities:

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 on Securities Available for Sale $ ( 7,118 ) $ ( 5,475 )

Change in the Unrealized Gain (Loss) on Securities Available for Sale $ ( 5,860 ) $ 12,873

Change in Deferred Tax Effect on the Unrealized (Gain) Loss on Securities Available for Sale $ 1,238 $ ( 2,719 )

Transfer of Loans to Other Real Estate $ 8,634 $ —

Acquisitions:

Fair Value of Tangible Assets Acquired $ 754,843 $ —

Other Intangible Assets Acquired 15,950 —

Liabilities Assumed 699,760 —

Net Identifiable Assets Acquired Over Liabilities Assumed $ 71,033 $ —

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

4 unchanged sentences

The unaudited consolidated financial statements include the accounts of Business First Bancshares, Inc.

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

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

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").

17 unchanged sentences

Accounting Standards Adopted in Current Period

ASU 2025-08,” Financial Instruments – Credit Losses (Topic 326), Purchased Loans.” The updates in ASU 2025-08 amend the guidance in ASC 326 on the accounting for certain purchased loans.

Under the ASU, entities must account for acquired loans (excluding credit cards) that meet certain criteria at acquisition (“purchased seasoned loans”) by recognizing them at their purchase price plus an allowance for expected credit losses (i.e., the gross-up approach).

All non-purchased credit deteriorated (“non-PCD”) loans (excluding credit cards) that are acquired in a business combination are deemed seasoned.

Other non-PCD loans (excluding credit cards) are seasoned if they were purchased at least 90 days after origination and the acquirer was not involved in the origination of the loans.

The ASU’s amendments align the accounting for purchased seasoned loans with the treatment of financial assets purchased with more-than-insignificant credit deterioration since origination (“PCD assets”).

The Company adopted the amendments effective January 1, 2026, on a prospective basis.

The Progressive acquisition disclosures contained in Note 2, as well as the allowance measurements reflected in Note 5 incorporate the updated guidance.

Accounting Standards Not Yet Adopted

2023-09, "Income Taxes (Topic 740):

Improvements to Income Tax Disclosures." ASU 2023-09 requires public business entities to disclose additional information in specified categories with respect to the rate reconciliation for federal, state and foreign income taxes.

In addition, the updates also require more details about reconciling items in the rate reconciliation in some categories if items meet a quantitative threshold.

ASU 2023-09 also requires all entities to disclose income taxes paid, net of refunds, disaggregated by federal, state and foreign taxes for annual periods and to disaggregate the information by jurisdiction based on a quantitative threshold.

ASU 2023-09 will become effective for the Company starting December 31, 2025.

ASU 2023-09 will not have a significant impact on our financial statements.

Note 2 – Reclassifications –

Certain reclassifications may have been made to conform to reporting in 2025.

These reclassifications have no material effect on previously reported shareholders’ equity or net income.

BUSINESS FIRST BANCSHARES, INC.

2 unchanged sentences

Note 2 – Mergers and Acquisitions –

Waterstone, LSP, LLP

On January 31, 2024, the Company consummated the acquisition, through b1BANK, of Waterstone, headquartered in Katy, Texas.

Waterstone offers community banks and small businesses a range of small business administration lending services including planning, pre-qualification, packaging, closing and disbursements, servicing and liquidation.

Upon consummation of the acquisition, the Company paid $ 3.3 million in cash to the former owners of Waterstone.

Oakwood Bancshares, Inc.

On October 1, 2024, the Company consummated the merger of Oakwood Bancshares, Inc.

(“Oakwood”), headquartered in the Dallas, Texas region, with and into the Company, pursuant to the terms of that certain Agreement and Plan of Reorganization (the “Oakwood Reorganization Agreement”), dated as of April 25, 2024, by and between the Company and Oakwood.

Also on October 1, 2024, Oakwood’s wholly owned banking subsidiary, Oakwood Bank, was merged with and into b1BANK.

Pursuant to the terms of the Oakwood Reorganization Agreement, upon consummation of the Oakwood acquisition, the Company issued 3,973,134 shares of its common stock to the former shareholders of Oakwood.

At September 30, 2024, Oakwood reported $ 863.6 million in total assets, $ 700.2 million in loans and $ 741.3 million in deposits.

The following table reflects the consideration paid for Oakwood’s net assets and the identifiable assets purchased and liabilities assumed at their fair values as of October 1, 2024.

Progressive Bancorp, Inc.

On January 1, 2026, the Company consummated the merger of Progressive Bancorp, Inc.

(“Progressive”), headquartered in Monroe, Louisiana, with and into the Company, pursuant to the terms of that certain Agreement and Plan of Reorganization (the “Reorganization Agreement”), dated as of July 7, 2025, by and between the Company and Progressive (the "Merger").

Also on January 1, 2026, Progressive's wholly owned banking subsidiary, Progressive Bank, was merged with and into b1BANK.

Pursuant to the terms of the Reorganization Agreement, upon consummation of the Merger, the Company issued 3,192,367 shares of its common stock to the former shareholders of Progressive.

At December 31, 2025, Progressive reported $ 773.8 million in total assets, $ 597.2 million in loans and $ 684.9 million in deposits.

The following table reflects the consideration paid for Progressive's net assets and the identifiable assets purchased and liabilities assumed at their fair values as of January 1, 2026.

The fair values are provisional estimates and may be adjusted for a period of up to one year from the date of acquisition if new information is obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Cost and Allocation of Purchase Price for Oakwood Bancshares, Inc.

Cost and Allocation of Purchase Price for Progressive Bancorp, Inc.

(Progressive):

(Dollars in thousands, except per share data)

Purchase Price:

Shares Issued to Oakwood's Shareholders on October 1, 2024 3,973,134

Closing Stock Price on September 30, 2024 $ 25.67

Shares Issued to Progressive's Shareholders on January 1, 2026 3,192,367

Closing Stock Price on December 31, 2025 $ 26.14

Total Stock Issued $ 83,448

Partial Shares Paid in Cash 3

Other Consideration, Including Equity Awards 1,819

Total Purchase Price $ 83,451

14 unchanged sentences

Goodwill Resulting from Merger $ 12,418

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.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The Company has recorded approximately $ 2.2 million and $ 3.8 million of acquisition-related costs within merger and conversion-related expenses and salaries and benefits for the three months ended March 31, 2026, and year ended December 31, 2025, respectively.

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

9 unchanged sentences

The discount rate did not include an explicit factor for credit losses, as that was included within the estimated cash flows.

As discussed in Note 1, the Company adopted ASU 2025-08, which requires a calculation and application of Day 1 allowance for non-PCD loans, as well as PCD loans.

The Day 1 allowance amounts are applied on a gross basis.

Acquired loans are evaluated as either purchased with a more-than insignificant amount of credit deterioration (“PCD”) or an insignificant amount of credit deterioration (“non-PCD”) at acquisition, based upon management’s assessment of whether or not a loan has experienced more than insignificant credit deterioration since origination.

This evaluation is completed by management using a variety of factors, including individual loan characteristics as well as

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

industry type and collateral evaluation, among other factors.

This evaluation is completed by management using a variety of factors, including individual loan characteristics as well as industry type and collateral evaluation, among other factors.

At acquisition, management designated loans with a fair value of $ 8.0 million as PCD.

The fair value was inclusive of an $ 8.4 million PCD allowance and $ 2.3 million non-credit fair value discount from the acquired contractual value.

The remainder of the Oakwood loan portfolio, with a fair value of $ 540.6 million at acquisition included a non-credit fair value discount of $ 2.0 million from the acquired contractual value.

The fair value was inclusive of a $ 6.9 million PCD allowance and $ 750,000 non-credit fair value discount from the acquired contractual value.

The remainder of the Progressive loan portfolio, with a fair value of $ 570.4 million at acquisition included a non-PCD allowance of $ 2.4 million and a non-credit fair value discount of $ 8.7 million from the acquired contractual value.

Core Deposit Intangible (“CDI”):

4 unchanged sentences

Fair values for borrowings were based on estimated market rates over the remaining terms of the subordinated debt issuances.

Pro forma tables for Oakwood were impractical to include due to the cost versus benefit of including such disclosures.

Pro forma tables for Progressive were impractical to include due to the insignificance to the overall Company as a whole.

Note 3 – Earnings per Common Share –

3 unchanged sentences

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

September 30, For the Nine Months Ended

September 30,

2025 2024 2025 2024

In addition, nonvested share-based payment awards that

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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 March 31,

(Dollars in thousands, except per share data) 2026 2025

7 unchanged sentences

Diluted Earnings Per Common Share From Net Income Available to Common Shares $ 0.68 $ 0.65

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 4 – Securities –

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)

The amortized cost and fair values of securities available for sale as of March 31, 2026, and December 31, 2025 are summarized as follows:

March 31, 2026

(Dollars in thousands) Amortized

Treasury Securities $ 24,562 $ — $ 282 $ 24,280

5 unchanged sentences

December 31, 2025

(Dollars in thousands)

(Dollars in thousands) Amortized

Treasury Securities $ 17,571 $ — $ 293 $ 17,278

4 unchanged sentences

Total Securities Available for Sale $ 1,031,432 $ 4,066 $ 46,269 $ 989,229

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.

The following tables present a summary of securities with gross unrealized losses and fair values at March 31, 2026, and December 31, 2025, aggregated by investment category and length of time in a continued unrealized loss position.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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

September 30, 2025

March 31, 2026

Less Than 12 Months 12 Months or Greater Total

(Dollars in thousands)

(Dollars in thousands) Fair

Treasury Securities $ 14,429 $ 78 $ 9,851 $ 204 $ 24,280 $ 282

4 unchanged sentences

Total Securities Available for Sale $ 291,168 $ 3,073 $ 536,989 $ 46,793 $ 828,157 $ 49,866

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

Less Than 12 Months 12 Months or Greater Total

(Dollars in thousands)

(Dollars in thousands) Fair

Treasury Securities $ — $ — $ 17,278 $ 293 $ 17,278 $ 293

4 unchanged sentences

Total Securities Available for Sale $ 99,363 $ 565 $ 595,513 $ 45,704 $ 694,876 $ 46,269

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.

As of March 31, 2026, and December 31, 2025, 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 September 30, 2025, by contractual maturity are shown below.

The amortized cost and fair values of securities available for sale as of March 31, 2026, 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.

(Dollars in thousands)

(Dollars in thousands) Amortized

Less Than One Year $ 58,323 $ 57,721

3 unchanged sentences

Total Securities Available for Sale $ 1,093,880 $ 1,045,817

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.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Securities available for sale with a fair value of $ 424.1 million and $ 398.3 million, were pledged as collateral on public deposits and for other purposes as required or permitted by law as of March 31, 2026, and December 31, 2025, respectively.

There were $ 88,000 realized gains from sales or redemptions of securities for the three months ended March 31, 2026, and none for the three months ended March 31, 2025.

There were $ 8,000 and $ 1,000 realized losses from sales or redemptions of securities for the three months ended March 31, 2026, and 2025, respectively.

At March 31, 2026, and December 31, 2025, accrued interest receivable on securities was $ 4.8 million and $ 5.3 million, respectively, and is included within accrued interest receivable on the consolidated balance sheets.

Note 5 – Loans and the Allowance for Loan Losses –

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

September 30,

Loans receivable at March 31, 2026, and December 31, 2025, are summarized as follows:

(Dollars in thousands) March 31,

2026 December 31,

(Dollars in thousands)

Real Estate Loans:

8 unchanged sentences

Net Loans $ 6,620,608 $ 6,135,531

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 September 30, 2025, and December 31, 2024.

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.

Commercial and agricultural loans are pledged against the Federal Reserve Banks’ (“FRB”) discount window as of March 31, 2026, and December 31, 2025.

Net deferred loan origination fees were $ 9.9 million and $ 11.4 million at March 31, 2026, and December 31, 2025, 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 September 30, 2025, and December 31, 2024, overdrafts of $ 2.7 million and $ 3.0 million, respectively, have been reclassified to loans.

At March 31, 2026, and December 31, 2025, overdrafts of $ 1.3 million and $ 7.9 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 $ 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 unpaid principal balances of mortgages and other loans serviced for others were approximately $ 674.7 million and $ 643.8 million at March 31, 2026 and December 31, 2025, respectively.

The Company had servicing rights of $ 1.2 million and $ 956,000 recorded at March 31, 2026, and December 31, 2025, 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.

2 unchanged sentences

Such risk factors are periodically reviewed by management and revised as deemed appropriate.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Portfolio Segments and Risk Factors

5 unchanged sentences

The segmentation and disaggregation of the portfolio is part of the ongoing credit monitoring process.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Real Estate Portfolio Segment

18 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 September 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 March 31, 2026, and 2025, 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

September 30, 2025

(Dollars in thousands)

March 31, 2026

(Dollars in thousands) Real Estate:

Commercial Real Estate:

4 unchanged sentences

Beginning Balance $ 23,486 $ 3,237 $ 7,423 $ 19,282 $ 531 $ 53,959

Adjustment for Progressive on PCD Loans 2,431 281 3,344 3,148 60 9,264

Charge-offs — — — ( 593 ) ( 511 ) ( 1,104 )

7 unchanged sentences

Total Allowance for Credit Losses $ 24,434 $ 6,216 $ 9,845 $ 27,488 $ 772 $ 68,755

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2024

(Dollars in thousands)

March 31, 2025

(Dollars in thousands) Real Estate:

Commercial Real Estate:

4 unchanged sentences

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

Adjustment for Oakwood on PCD Loans 4,013 1,420 374 2,603 - 8,410

Charge-offs ( 2 ) ( 3 ) ( 225 ) ( 865 ) ( 553 ) ( 1,648 )

Recoveries 5 98 6 508 54 671

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

Provision (Recovery) ( 138 ) ( 1,046 ) 1,216 2,454 514 3,000

Ending Balance $ 23,325 $ 6,211 $ 9,033 $ 17,764 $ 530 $ 56,863

4 unchanged sentences

Total Allowance for Credit Losses $ 23,542 $ 7,392 $ 9,339 $ 19,532 $ 558 $ 60,363

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Included within the above allowance, in the tables above, are loans which management has individually evaluated to determine an allowance for credit losses.

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

September 30, 2025 December 31, 2024

Loan Balance Specific Allocations Loan Balance Specific Allocations

(Dollars in thousands)

March 31, 2026 December 31, 2025

(Dollars in thousands) Loan Balance Specific Allocations Loan Balance Specific Allocations

Real Estate Loans:

6 unchanged sentences

Total $ 55,218 $ 14,801 $ 44,540 $ 7,011

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Credit Quality Indicators

5 unchanged sentences

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

September 30, 2025

The following tables set forth the credit quality indicators, disaggregated by loan segment, as of March 31, 2026, and December 31, 2025:

March 31, 2026

(Dollars in thousands) Pass

(Risk Grade 10-45) Special Mention

3 unchanged sentences

(Risk Grade 80) Total Current Period Charge-

(Dollars in thousands)

Originated in 2026 $ 55,496 $ 5,636 $ — $ — $ — $ 61,132 $ —

52 unchanged sentences

December 31, 2025

(Dollars in thousands) Pass

(Risk Grade 10-45) Special Mention

3 unchanged sentences

(Risk Grade 80) Total Current Period Charge-

(Dollars in thousands)

Originated in 2025 $ 387,209 $ 1,506 $ 8,789 $ — $ — $ 397,504 $ —

58 unchanged sentences

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

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.

As of March 31, 2026, and December 31, 2025, loan balances outstanding more than 90 days past due and still accruing interest amounted to $ 1.4 million and $ 2.2 million, respectively.

As of March 31, 2026, and December 31, 2025, loan balances outstanding on nonaccrual status amounted to $ 100.8 million and $ 74.5 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 September 30, 2025, and December 31, 2024.

The following tables provide an analysis of the aging of loans and leases as of March 31, 2026, and December 31, 2025.

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

Aged Analysis of Past Due Loans Receivable

September 30, 2025

(Dollars in thousands)

March 31, 2026

(Dollars in thousands) 30-59 Days

Past Due 60-89 Days

18 unchanged sentences

December 31, 2025

(Dollars in thousands)

(Dollars in thousands) 30-59 Days

Past Due 60-89 Days

14 unchanged sentences

Total $ 23,371 $ 41,235 $ 47,466 $ 112,072 $ 6,077,418 $ 6,189,490 $ 2,215

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

September 30,

The following table presents non-accrual loans by segment as of March 31, 2026, and December 31, 2025.

(Dollars in thousands) March 31,

2026 December 31,

(Dollars in thousands)

Real Estate Loans:

6 unchanged sentences

Total $ 100,803 $ 74,471

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 had $ 9.3 million and $ 9.8 million as of March 31, 2026 and December 31, 2025, 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 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.

During the periods ended March 31, 2026, and December 31, 2025, 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 $ 1.7 million was outstanding at both March 31, 2026, and December 31, 2025, 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 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.

At March 31, 2026 and December 31, 2025, accrued interest receivable on loans was $ 33.4 million and $ 33.2 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

Note 6 – Borrowings –

The Company had outstanding advances from the Federal Home Loan Bank (“FHLB”) of $ 260.8 million and $ 431.2 million as of March 31, 2026, and December 31, 2025, respectively, consisting of:

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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 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 $ 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 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 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 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 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 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 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 September 30, 2025, and December 31, 2024, with interest at 3.57 % paid monthly.

Principal is due at maturity in October 2033.

This advance has put options beginning in October 2024.

One fixed rate loan with an original principal balance of $ 10.0 million.

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

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 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 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 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 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.

(Dollars in thousands) March 31, 2026 December 31, 2025

4.65 % advance due January 2026

3.62 % advance due January 2026 (a)

4.00 % advance due March 2026

4.56 % advance due July 2026

25,000 25,000

3.91 % advance due July 2026

25,000 25,000

0.89 % advance due November 2026 (b)

4.84 % advance due December 2026

25,000 25,000

0.71 % advance due August 2027 (b) (c)

0.70 % advance due August 2027 (b) (c)

0.68 % advance due August 2027 (b) (c)

4.78 % advance due September 2027

25,000 25,000

4.73 % advance due March 2028

25,000 25,000

4.69 % advance due September 2028

25,000 25,000

4.13 % advance due October 2028 (d)

25,000 25,000

0.94 % advance due August 2030 (b) (c)

0.92 % advance due August 2030 (b) (c)

0.90 % advance due August 2030 (b) (c)

3.92 % advance due October 2030 (d)

25,000 25,000

3.72 % advance due October 2033 (d)

25,000 25,000

3.57 % advance due October 2033 (d)

25,000 25,000

Total FHLB advances $ 260,792 $ 431,200

(a) Short term overnight advance.

(b) Principal paid monthly.

(d) Loan has put options beginning in October 2024.

The Company had an additional $ 1.5 billion remaining on the FHLB line availability at March 31, 2026.

On January 1, 2026, in connection with the Progressive acquisition, the Company assumed Progressive Bancorp, Inc.'s junior subordinated debentures issued to Progressive Statutory Trust I and Progressive Statutory Trust II, each of which is a non-consolidated statutory trust.

The assumed obligations totaled approximately $ 5.4 million in aggregate junior subordinated debentures, consisting of $ 1.2 million related to Progressive Statutory Trust I and $ 4.1 million related to Progressive Statutory Trust II, and were associated with an aggregated $ 5.0 million of trust preferred securities outstanding.

The junior subordinated debentures related to Progressive Statutory Trust I mature on July 31, 2031, and bear interest at a floating rate equal to the 3-month CME Term SOFR (as the statutory replacement benchmark rate to LIBOR) plus 3.84 %, payable quarterly (which includes the tenor spread adjustment).

The junior subordinated debentures related to Progressive Statutory Trust II mature on December 15, 2037, and bear interest at 6.34 % through December 15, 2012 and thereafter at a floating rate equal to the 3-month CME Term SOFR (as the statutory replacement benchmark rate to LIBOR) plus 1.71 %, payable quarterly (which includes the tenor spread adjustment).

The applicable indentures permit the Company to defer interest payments for up to 20 consecutive quarterly periods without an event of default.

The Company has guaranteed, on a subordinated basis, distributions and other payments due on the related trust preferred securities, subject to the applicable guarantee agreements and indentures.

Principal and interest payments on the junior subordinated debentures are in a superior position to the liquidation rights of holders of common stock.

As part of the acquisition of these debentures, the Company had a fair value adjustment of $ 555,000 , with $ 544,000 remaining at March 31, 2026.

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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 %.

Principal and interest was due, paid and rolled into a $ 30.0 million renewal, at maturity in January 2025.

The renewal was also paid in January 2025.

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

Note 7 – 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 September 30, For the Nine Months Ended September 30,

2025 2024 2025 2024

(Dollars in thousands) (Dollars in thousands)

For the Three Months Ended March 31,

(Dollars in thousands) 2026 2025

Debit Card and ATM Fee Income 2,306 1,858

3 unchanged sentences

Gain on Extinguishment of Debt — 630

Gain on Sale of Branch - - 3,360 -

Swap Fee Income 1,537 739

2 unchanged sentences

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

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

2025 2024 2025 2024

(Dollars in thousands) (Dollars in thousands)

For the Three Months Ended March 31,

(Dollars in thousands) 2026 2025

Advertising and Promotions 1,508 1,291

7 unchanged sentences

Regulatory Assessments 984 1,257

Merger and Conversion Costs 477 319 937 1,068

Other 5,030 3,968

Total Other Expenses $ 14,933 $ 13,475

Note 8 – Leases –

The Bank leases certain branch offices through non-cancelable operating leases with terms that range from one to ten 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 $ 2.0 million and $ 2.3 million for the three months ended March 31, 2026, and 2025, respectively.

At March 31, 2026, the Company had a weighted average lease term of 5.8 years and a weighted average discount rate of 3.97 %.

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)

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

April 1, 2026 through December 31, 2026 $ 4,423

January 1, 2027 through December 31, 2027 5,494

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 $ 1.6 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 has made commitments to extend credit of approximately $ 2.0 billion and $ 1.7 billion at March 31, 2026, and December 31, 2025, respectively, and standby and commercial letters of credit of approximately $ 55.9 million and $ 51.2 million at March 31, 2026 and December 31, 2025, respectively.

As discussed in Note 5, we have a reserve for unfunded loan commitments of $ 5.1 million and $ 4.2 million at March 31, 2026 and December 31, 2025, respectively.

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

In the opinion of management and counsel, the disposition or ultimate resolution of such proceedings would not have a material adverse effect on the Bank’s financial statements.

Note 10 – Customer-Initiated Derivatives

The Company enters into derivative instruments to meet the needs of its customers through the execution of customer-initiated derivatives (swaps and caps and floors).

These financial instruments involve elements of market and credit risk.

Market and credit risk are included in the determination of fair value.

Market risk is the potential loss that may result from movements in interest rates that cause an unfavorable change in the value of a financial instrument.

Market risk in interest rate contracts executed on behalf of customers is mitigated by taking offsetting positions.

Credit risk is the possible loss that may occur in the event of default by the counterparty to a financial instrument.

The Company manages credit risk arising from customer-initiated derivatives by evaluating the creditworthiness of each customer, utilizing a similar approval process used for its lending activities.

Derivatives with dealer counterparties are either cleared through a clearinghouse or settled directly with a single counterparty.

The Company has quantified the credit risk as not significant as of March 31, 2026.

Income primarily results from the spread between the customer derivative and the offsetting dealer position.

For the three months ended March 31, 2026, the Company recognized $ 1.5 million swap fee income.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

(Dollars in thousands) Notional / Contract Amount Gross Derivative Assets Gross Derivative Liabilities

Customer-initiated and other activities:

Interest rate contracts:

Caps and floors written $ 42,935 $ 7,025 $ —

Caps and floors purchased 42,935 — 7,025

Swaps 951,294 — —

Total interest rate contracts $ 1,037,164 $ 7,025 $ 7,025

Note 11– Fair Value of Financial Instruments –

2 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

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 hierarchy requires 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:

8 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 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.

Fair Value Level 1 Level 2 Level 3

(Dollars in thousands)

September 30, 2025

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The following tables present the balance of assets and liabilities measured on a recurring basis as of March 31, 2026, and December 31, 2025.

(Dollars in thousands) Fair Value Level 1 Level 2 Level 3

March 31, 2026

Available for Sale:

5 unchanged sentences

Loans Held for Sale 480 — 480 —

Total $ 986,371 $ - $ 954,521 $ 31,850

Interest Rate Swaps 7,025 — 7,025 —

Total assets at fair value $ 1,053,322 $ — $ 1,022,185 $ 31,137

Interest Rate Swaps $ 7,025 $ — $ 7,025 $ —

Total liabilities at fair value $ 7,025 $ — $ 7,025 $ —

December 31, 2025

6 unchanged sentences

Loans Held for Sale 1,094 — 1,094 —

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

Interest Rate Swaps 8,023 — 8,023 —

Total assets at fair value $ 998,346 $ — $ 966,378 $ 31,968

Interest Rate Swaps $ 8,023 $ — $ 8,023 $ —

Total liabilities at fair value $ 8,023 $ — $ 8,023 $ —

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 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

Securities Securities

(Dollars in thousands)

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, 2026, and December 31, 2025.

(Dollars in thousands) Municipal Securities Corporate Securities

Balance at December 31, 2024 $ 24,717 $ 12,500

Realized Gains (Losses) Included in Net Income - -

Unrealized Gains (Losses) Included in Other Comprehensive Loss ( 2,339 ) 782

Purchases 9,938 5,000

Unrealized Gains Included in Other Comprehensive Loss 2,458 21

Maturities, Prepayments, and Calls ( 3,728 ) —

Transfers Into Level 3 - -

Transfers Out of Level 3 — ( 4,000 )

Balance at December 31, 2025 23,447 8,521

Realized Gains (Losses) Included in Net Income - -

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

Purchases - -

Unrealized Losses Included in Other Comprehensive Loss ( 263 ) ( 79 )

Maturities, Prepayments, and Calls ( 489 ) —

Transfers Into Level 3 - -

Transfers Out of Level 3 - ( 4,000 )

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

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 September 30, 2025.

Estimated Valuation Unobservable Range of

Fair Value Technique Inputs Discounts

(Dollars in thousands)

September 30, 2025

Balance at March 31, 2026 $ 22,695 $ 8,442

(Dollars in thousands) Estimated Fair Value Valuation Technique Unobservable Inputs Discounts

March 31, 2026

Municipal Securities $ 22,695 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

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

Repossessed assets are initially recorded at fair value less

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

customized internally developed discounting matrix.

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

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.

As such, the Bank records repossessed assets as Level 3.

Fair Value Level 1 Level 2 Level 3

(Dollars in thousands)

September 30, 2025

(Dollars in thousands) Fair Value Level 1 Level 2 Level 3

March 31, 2026

Individually Evaluated Loans $ 45,149 $ — $ — $ 45,149

24 unchanged sentences

Other Equity Securities – The carrying amount approximates its fair value.

Deposits – The fair value of demand deposits and certain money market deposits is the amount payable at the reporting date.

The fair value of fixed-maturity certificates of deposit is estimated using discounted cash flow analyses, with interest rates currently offered for deposits of similar remaining maturities.

Interest Rate Swaps - Market values are obtained from market pricing data sources available for comparable transactions in the over-the-counter derivative market.

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Deposits – The fair value of demand deposits and certain money market deposits is the amount payable at the reporting date.

The fair value of fixed-maturity certificates of deposit is estimated using discounted cash flow analyses, with interest rates currently offered for deposits of similar remaining maturities.

Borrowings – The fair value of FHLB advances and other long-term borrowings is estimated using the rates currently offered for advances of similar maturities.

1 unchanged sentence

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

The estimated approximate fair values of the Bank’s financial instruments as of March 31, 2026, and December 31, 2025 are as follows:

(Dollars in thousands) Carrying

Fair Value Level 1 Level 2 Level 3

(Dollars in thousands)

September 30, 2025

March 31, 2026

Financial Assets:

6 unchanged sentences

Other Equity Securities 40,047 40,047 — — 40,047

Interest Rate Swaps 7,025 7,025 — 7,025 —

Total $ 8,555,463 $ 8,523,999 $ 678,061 $ 1,185,610 $ 6,660,328

2 unchanged sentences

Borrowings 384,524 385,868 — 385,868 —

Interest Rate Swaps 7,025 7,025 — 7,025 —

Total $ 7,856,498 $ 7,854,148 $ — $ 392,893 $ 7,461,255

2 unchanged sentences

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands) Carrying

Fair Value Level 1 Level 2 Level 3

(Dollars in thousands)

December 31, 2025

7 unchanged sentences

Other Equity Securities 49,342 49,342 — — 49,342

Interest Rate Swaps 8,023 8,023 — 8,023 —

Total $ 7,912,666 $ 7,893,468 $ 583,568 $ 1,112,257 $ 6,197,643

2 unchanged sentences

Borrowings 551,352 554,309 — 554,309 —

Interest Rate Swaps 8,023 8,023 — 8,023 —

Total $ 7,257,965 $ 7,260,513 $ — $ 562,332 $ 6,698,181

Note 12– Subsequent Events –

On April 2, 2026, the Company completed an $ 85.0 million private placement of subordinated notes with a 6.50 % fixed-to-floating rate due in 2036.

The subordinated notes were issued to certain qualified institutional and accredited investors.

The notes will bear interest at an annual rate of 6.50 % until March 30, 2031, and then reset quarterly to the then current three-month Secured Overnight Financing Rate plus 300 basis points.

The proceeds from the sale of these subordinated notes were utilized to redeem $ 66.9 million in outstanding subordinated notes, to provide additional capital support to b1BANK, to support growth, to better position the Company to take advantage of strategic opportunities that may arise from time to time, to repay other existing borrowings, and for other general corporate purposes.

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