What changed in this filing

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Item 1. Financial Statements

2026-07-31 compared with 2026-05-01 · 220 added, 119 removed, 874 unchanged (28% of the section changed)

4 unchanged sentences

(Dollars in thousands, except per share data)

March 31, 2026

June 30, 2026

Cash and Due from Banks $ 575,604 $ 411,175

1 unchanged sentence

Securities Purchased Under Agreements to Resell 30,702 25,587

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)

Securities Available for Sale, at Fair Values (Amortized Cost of $ 1,086,550 at June 30, 2026 and $ 1,031,432 at December 31, 2025)

1,041,133 989,229

Mortgage Loans Held for Sale 2,838 1,094

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

Loans and Lease Receivable, Net of Allowance for Loan Losses of $ 62,458 at June 30, 2026 and $ 53,959 at December 31, 2025

6,596,989 6,135,531

23 unchanged sentences

5,000,000 Shares Authorized;

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

72,010 Shares ($ 1,000 Liquidation Preference) Issued at both June 30, 2026 and December 31, 2025, respectively

$ 71,930 $ 71,930

1 unchanged sentence

50,000,000 Shares Authorized;

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

32,535,659 and 29,510,668 Shares Issued and Outstanding at June 30, 2026 and December 31, 2025, respectively

32,536 29,511

9 unchanged sentences

(Dollars in thousands, except per share data)

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2026 2025 2026 2025

Interest Income:

36 unchanged sentences

(Dollars in thousands)

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2026 2025 2026 2025

Consolidated Net Income $ 24,175 $ 22,103 $ 47,739 $ 42,646

9 unchanged sentences

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS ’ EQUITY

FOR THE THREE MONTHS ENDED March 31, 2026 AND 2025

FOR THE THREE MONTHS ENDED June 30, 2026 AND 2025

(Dollars in thousands, except per share data)

5 unchanged sentences

Shareholders'

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

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 — 31 437 — — 468

Balances at June 30, 2025

$ 71,930 $ 29,603 $ 502,046 $ 292,629 $ ( 47,768 ) $ 848,440

Balances at March 31, 2026 $ 71,930 $ 32,625 $ 580,640 $ 343,890 $ ( 37,909 ) $ 991,176

Comprehensive Income:

Net Income — — — 24,175 — 24,175

Other Comprehensive Income — — — — 2,087 2,087

Cash Dividends Declared on Preferred Stock, $ 18.75 Per Share

— — — ( 1,350 ) — ( 1,350 )

Cash Dividends Declared on Common Stock, $ 0.15 Per Share

— — — ( 4,869 ) — ( 4,869 )

Stock Based Compensation Cost — 88 2,083 — — 2,171

Stock Repurchases — ( 177 ) ( 4,636 ) — — ( 4,813 )

Balances at June 30, 2026

$ 71,930 $ 32,536 $ 578,087 $ 361,846 $ ( 35,822 ) $ 1,008,577

The accompanying notes are an integral part of these financial statements

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS ’ EQUITY

FOR THE SIX MONTHS ENDED June 30, 2026 AND 2025

(Dollars in thousands, except per share data)

Stock Additional

Capital Retained

Earnings Accumulated

Comprehensive

Income (Loss) Total

Shareholders'

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

1 unchanged sentence

Net Income — — — 42,646 — 42,646

Other Comprehensive Income — — — — 15,230 15,230

Cash Dividends Declared on Preferred Stock, $ 37.50 Per Share

— — — ( 2,700 ) — ( 2,700 )

Cash Dividends Declared on Common Stock, $ 0.28 Per Share

— — — ( 8,275 ) — ( 8,275 )

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

Balances at June 30, 2025

$ 71,930 $ 29,603 $ 502,046 $ 292,629 $ ( 47,768 ) $ 848,440

Balances at December 31, 2025

$ 71,930 $ 29,511 $ 502,155 $ 326,574 $ ( 33,287 ) $ 896,883

Comprehensive Income:

Net Income — — — 47,739 — 47,739

Other Comprehensive Loss — — — — ( 2,535 ) ( 2,535 )

5 unchanged sentences

Stock Based Compensation Cost — 109 2,963 — — 3,072

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 Repurchase — ( 276 ) ( 7,287 ) — — ( 7,563 )

Balances at June 30, 2026 $ 71,930 $ 32,536 $ 578,087 $ 361,846 $ ( 35,822 ) $ 1,008,577

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

3 unchanged sentences

(Dollars in thousands)

For the Three Months Ended March 31,

For the Six Months Ended June 30,

Cash Flows From Operating Activities:

14 unchanged sentences

Deferred Income Tax (Benefit) Expense ( 1,310 ) 333

Gain on Extinguishment of Debt — ( 630 )

Gain on Extinguishment/Redemption of Debt ( 545 ) ( 630 )

Gain on Sale of Branch — ( 3,360 )

Changes in Assets and Liabilities:

Decrease in Accrued Interest Receivable 3,248 2,131

(Increase) Decrease in Accrued Interest Receivable 2,455 ( 880 )

(Increase) Decrease in Other Assets 7,195 ( 6,669 )

6 unchanged sentences

Proceeds from Paydowns of Securities Available for Sale 51,905 39,846

Net Cash Paid in Acquisition 93,252 —

Net Cash Received in Acquisition 90,702 —

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

Proceeds from Sale of Loans 88,251 —

Purchases of Other Equity Securities ( 12,213 ) ( 9,340 )

Redemption of Other Equity Securities 12,599 2,781

Purchase of Life Insurance ( 5,585 ) —

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

Net Decrease in Loans 85,545 1,311

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

Net (Increase) Decrease in Loans 14,250 ( 68,246 )

Net Purchases of Premises and Equipment ( 1,274 ) ( 1,289 )

Proceeds from Sales of Other Real Estate 1,419 3,961

1 unchanged sentence

Net Decrease in Federal Funds Sold 76,858 158,373

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

For the Three Months Ended March 31,

Net Cash Provided by Investing Activities 250,358 54,861

For the Six Months Ended June 30,

Cash Flows From Financing Activities:

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 )

Net Decrease in Deposits ( 148,007 ) ( 40,399 )

Net Increase (Decrease) in Securities Sold Under Agreements to Repurchase 1,820 ( 64 )

Net Advances on Federal Home Loan Bank Borrowings 8,411 137,071

Proceeds from Issuance of Subordinated Debt 85,000 —

Repayment of Subordinated Debt ( 66,927 ) ( 6,427 )

2 unchanged sentences

Payment of Dividends on Common Stock ( 9,767 ) ( 8,275 )

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

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

Net Cash Provided by (Used in) Financing Activities ( 139,733 ) 79,206

Net Increase in Cash and Due From Banks 164,429 176,659

Cash and Due From Banks at Beginning of Period 411,175 319,098

20 unchanged sentences

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

(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;

(the “Company”) and its five direct, wholly-owned subsidiaries, b1BANK (the “Bank”), Coastal Commerce Statutory Trust I, Progressive Statutory Trust I, and Progressive Statutory Trust II, and b1Capital, Inc.;

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").

22 unchanged sentences

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 Company early 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.

39 unchanged sentences

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 Company has recorded approximately $ 3.4 million and $ 3.8 million of acquisition-related costs within merger and conversion-related expenses and salaries and benefits for the six months ended June 30, 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.

23 unchanged sentences

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

American Planning Corporation

On June 29, 2026, the Company consummated the acquisition of American Planning Corporation (“APC”) for $ 6.8 million, of which $ 2.6 million was paid in cash and $ 4.3 million of subordinated debt was issued.

As part of the transaction, the Company recorded a customer intangible of $ 4.9 million to be amortized over a 10 year period and $ 1.9 million in goodwill.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Note 3 – Earnings per Common Share –

2 unchanged sentences

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

The potential common shares that may be issued by the Company relate to outstanding stock options 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

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,

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

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

For the Three Months Ended June 30,

For the Six Months Ended June 30,

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

8 unchanged sentences

Note 4 – Securities –

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

The amortized cost and fair values of securities available for sale as of June 30, 2026, and December 31, 2025 are summarized as follows:

June 30, 2026

(Dollars in thousands) Amortized

5 unchanged sentences

Total Securities Available for Sale $ 1,086,550 $ 2,016 $ 47,433 $ 1,041,133

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2025

6 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 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

The following tables present a summary of securities with gross unrealized losses and fair values at June 30, 2026, and December 31, 2025, aggregated by investment category and length of time in a continued unrealized loss position.

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

March 31, 2026

June 30, 2026

Less Than 12 Months 12 Months or Greater Total

15 unchanged sentences

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

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.

As of June 30, 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.

Further, the securities continue to make principal and interest payments under their contractual terms and management does not have the intent to sell any of the securities and believes that it is more likely than not that the Company will not have to sell any such securities before a recovery of amortized cost basis.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

securities before a recovery of amortized cost basis.

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

The amortized cost and fair values of securities available for sale as of March 31, 2026, by contractual maturity are shown below.

The amortized cost and fair values of securities available for sale as of June 30, 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.

5 unchanged sentences

Total Securities Available for Sale $ 1,086,550 $ 1,041,133

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

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.

Securities available for sale with a fair value of $ 449.7 million and $ 398.3 million, were pledged as collateral on public deposits and for other purposes as required or permitted by law as of June 30, 2026, and December 31, 2025, respectively.

There were $ 88,000 gross realized gains from sales or redemptions of securities for the six months ended June 30, 2026, none for the three months ended June 30, 2026, and $ 3,000 for both the three and six months ended June 30, 2025, respectively.

There were $ 6,000 and $ 14,000 gross realized losses from sales or redemptions of securities for the three and six months ended June 30, 2026, respectively, and $ 50,000 and $ 51,000 for the three and six months ended June 30, 2025, respectively.

At June 30, 2026, and December 31, 2025, accrued interest receivable on securities was $ 5.8 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 March 31, 2026, and December 31, 2025, are summarized as follows:

(Dollars in thousands) March 31,

Loans receivable at June 30, 2026, and December 31, 2025, are summarized as follows:

(Dollars in thousands) June 30,

2026 December 31,

9 unchanged sentences

Net Loans $ 6,596,989 $ 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 March 31, 2026, and December 31, 2025.

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.

Commercial and agricultural loans are pledged against the Federal Reserve Banks’ (“FRB”) discount window as of June 30, 2026, and December 31, 2025.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Net deferred loan origination fees were $ 9.5 million and $ 11.4 million at June 30, 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 March 31, 2026, and December 31, 2025, overdrafts of $ 1.3 million and $ 7.9 million, respectively, have been reclassified to loans.

At June 30, 2026, and December 31, 2025, overdrafts of $ 1.6 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 $ 674.7 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 unpaid principal balances of mortgages and other loans serviced for others were approximately $ 762.0 million and $ 643.8 million at June 30, 2026 and December 31, 2025, respectively.

The Company had servicing rights of $ 1.7 million and $ 956,000 recorded at June 30, 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

19 unchanged sentences

Commercial Portfolio Segment

Commercial loans include general commercial and industrial, or C&I, loans, including commercial lines of credit, working capital loans, term loans, equipment financing, asset acquisition, expansion, and development loans, borrowing base loans, letters of credit and other loan products, primarily in the Company’s target markets that are underwritten based on the borrower’s ability to service the debt from income.

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

borrowing base loans, letters of credit and other loan products, primarily in the Company’s target markets that are underwritten based on the borrower’s ability to service the debt from income.

Commercial loan risk is derived from the expectation that such loans generally are serviced principally from the operations of the business, and those operations may not be successful.

3 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 March 31, 2026, and 2025, the balance of the allowance for credit losses by loan portfolio segment.

The following tables set forth, for the three and six months ended June 30, 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.

Allowance for Credit Losses and Recorded Investment in Loans Receivable

For the Six Months Ended June 30, 2026

(Dollars in thousands) Real Estate:

Commercial Real Estate:

Construction Real Estate:

Residential Commercial Consumer

and Other Total

Allowance for Loan Losses:

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

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

Charge-offs ( 1,057 ) — ( 27 ) ( 2,459 ) ( 769 ) ( 4,312 )

Recoveries 6 4 60 299 105 474

Provision (Recovery) ( 3,277 ) 327 ( 1,657 ) 6,816 864 3,073

Ending Balance $ 21,589 $ 3,849 $ 9,143 $ 27,086 $ 791 $ 62,458

Reserve for Unfunded Loan Commitments:

Beginning Balance $ 320 $ 1,179 $ 309 $ 2,336 $ 33 $ 4,177

Provision (Recovery) ( 2 ) 14 ( 99 ) 1,258 25 1,196

Ending Balance $ 318 $ 1,193 $ 210 $ 3,594 $ 58 $ 5,373

Total Allowance for Credit Losses $ 21,907 $ 5,042 $ 9,353 $ 30,680 $ 849 $ 67,831

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

Allowance for Credit Losses and Recorded Investment in Loans Receivable

March 31, 2026

For the Three Months Ended June 30, 2026

(Dollars in thousands) Real Estate:

5 unchanged sentences

Beginning Balance $ 24,101 $ 4,545 $ 9,599 $ 24,676 $ 734 $ 63,655

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

Charge-offs ( 1,057 ) — ( 27 ) ( 1,866 ) ( 258 ) ( 3,208 )

7 unchanged sentences

Total Allowance for Credit Losses $ 21,907 $ 5,042 $ 9,353 $ 30,680 $ 849 $ 67,831

March 31, 2025

For the Six Months Ended June 30, 2025

(Dollars in thousands) Real Estate:

17 unchanged sentences

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the Three Months Ended June 30, 2025

(Dollars in thousands) Real Estate:

Commercial Real Estate:

Construction Real Estate:

Residential Commercial Consumer

and Other Total

Allowance for Loan Losses:

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

Charge-offs ( 264 ) ( 17 ) ( 12 ) ( 182 ) ( 446 ) ( 921 )

Recoveries 5 — 4 58 32 99

Provision (Recovery) 251 4 ( 849 ) 2,649 400 2,455

Ending Balance $ 23,317 $ 6,198 $ 8,176 $ 20,289 $ 516 $ 58,496

Reserve for Unfunded Loan Commitments:

Beginning Balance $ 217 $ 1,181 $ 306 $ 1,768 $ 28 $ 3,500

Provision (Recovery) 49 ( 293 ) ( 20 ) 40 ( 6 ) ( 230 )

Ending Balance $ 266 $ 888 $ 286 $ 1,808 $ 22 $ 3,270

Total Allowance for Credit Losses $ 23,583 $ 7,086 $ 8,462 $ 22,097 $ 538 $ 61,766

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.

March 31, 2026 December 31, 2025

June 30, 2026 December 31, 2025

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

17 unchanged sentences

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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

The following tables set forth the credit quality indicators, disaggregated by loan segment, as of June 30, 2026, and December 31, 2025:

June 30, 2026

(Dollars in thousands) Pass

124 unchanged sentences

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

As of March 31, 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.

As of June 30, 2026, and December 31, 2025, loan balances outstanding more than 90 days past due and still accruing interest amounted to $ 4.0 million and $ 2.2 million, respectively.

As of June 30, 2026, and December 31, 2025, loan balances outstanding on nonaccrual status amounted to $ 80.1 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 March 31, 2026, and December 31, 2025.

The following tables provide an analysis of the aging of loans and leases as of June 30, 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

March 31, 2026

June 30, 2026

(Dollars in thousands) 30-59 Days

36 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 March 31, 2026, and December 31, 2025.

(Dollars in thousands) March 31,

The following table presents non-accrual loans by segment as of June 30, 2026, and December 31, 2025.

(Dollars in thousands) June 30,

2026 December 31,

7 unchanged sentences

Total $ 80,124 $ 74,471

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 had $ 7.2 million and $ 9.8 million as of June 30, 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 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.

During the periods ended June 30, 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 $ 1.2 million and $ 1.7 million was outstanding at June 30, 2026, and December 31, 2025, 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 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:

At June 30, 2026 and December 31, 2025, accrued interest receivable on loans was $ 33.1 million and $ 33.2 million , respectively, and included within accrued interest receivable on the consolidated balance sheets.

In June 2026, the Company sold $ 100.3 million in loans that were acquired from Progressive, including $ 55.3 million of residential mortgages and $ 45.0 million commercial real estate loans.

As part of the sale, the Company will retain the servicing of these loans.

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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

Note 6 – Borrowings –

The Company had outstanding advances from the Federal Home Loan Bank (“FHLB”) of $ 442.5 million and $ 431.2 million as of June 30, 2026, and December 31, 2025, respectively, consisting of:

(Dollars in thousands) June 30, 2026 December 31, 2025

4.65 % advance due January 2026

5 unchanged sentences

25,000 25,000

3.81 % advance due July 2026

3.82 % advance due August 2026

3.89 % advance due August 2026

0.89 % advance due November 2026 (b)

26 unchanged sentences

(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.

The Company had an additional $ 1.5 billion remaining on the FHLB line availability at June 30, 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 $ 5.2 million in aggregate junior subordinated debentures, consisting of $ 1.2 million related to Progressive Statutory Trust I and $ 4.0 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 junior subordinated debentures related to Progressive Statutory Trust I mature on July 31, 2031, and bear interest at a floating rate equal to a benchmark rate plus 3.58 %, payable quarterly (including the tenor spread adjustment).

The junior subordinated debentures related to Progressive Statutory Trust II mature on December 15, 2037, and bear interest at a floating rate equal to a benchmark rate plus 1.45 %, payable quarterly (including 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.

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

BUSINESS FIRST BANCSHARES, INC.

AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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.

As part of the acquisition of these debentures, the Company had a fair value adjustment of $ 555,000 , with $ 532,000 remaining at June 30, 2026.

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 bear interest at an annual rate of 6.50 % until March 30, 2031, and then will reset quarterly to a benchmark 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.

As part of the redemption, the Company recognized a $ 545,000 gain.

On June 29, 2026, the Company consummated the acquisition of American Planning Corporation.

Under the terms of the acquisition, the Company issued $ 4.3 million of subordinated notes with a 6.50 % fixed-to-floating rate due in 2036.

The notes bear interest at an annual rate of 6.50 % until June 30, 2031, and then will reset quarterly to a benchmark plus 300 basis points.

BUSINESS FIRST BANCSHARES, INC.

4 unchanged sentences

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

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(Dollars in thousands) 2026 2025 2026 2025

2 unchanged sentences

Fees and Brokerage Commissions 2,387 1,980 4,648 4,128

Pass-Through Income from SBIC and Fintech Partnerships 135 751

Gain on Extinguishment of Debt — 630

Pass-Through Income (Loss) from SBIC and Fintech Partnerships 14 ( 246 ) 149 505

Gain on Extinguishment/Redemption of Debt 545 — 545 630

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

Swap Fee Income 385 808 1,922 1,547

2 unchanged sentences

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

For the Three Months Ended March 31,

For the Three Months Ended June 30,

For the Six Months Ended June 30,

(Dollars in thousands) 2026 2025 2026 2025

11 unchanged sentences

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.

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 $ 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 %.

Rental expense under these agreements was $ 3.9 million and $ 4.2 million for the six months ended June 30, 2026, and 2025, respectively.

At June 30, 2026, the Company had a weighted average lease term of 5.6 years and a weighted average discount rate of 3.98 %.

BUSINESS FIRST BANCSHARES, INC.

3 unchanged sentences

(Dollars in thousands)

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

July 1, 2026 through December 31, 2026 $ 3,073

January 1, 2027 through December 31, 2027 5,797

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 $ 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 has made commitments to extend credit of approximately $ 2.0 billion and $ 1.7 billion at June 30, 2026, and December 31, 2025, respectively, and standby and commercial letters of credit of approximately $ 29.8 million and $ 51.2 million at June 30, 2026 and December 31, 2025, respectively.

As discussed in Note 5, we have a reserve for unfunded loan commitments of $ 5.4 million and $ 4.2 million at June 30, 2026 and December 31, 2025, respectively.

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

9 unchanged sentences

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.

The Company has quantified the credit risk as not significant as of June 30, 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.

For the six months ended June 30, 2026, the Company recognized $ 1.9 million swap fee income.

BUSINESS FIRST BANCSHARES, INC.

1 unchanged sentence

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2026

June 30, 2026

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

23 unchanged sentences

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.

The following tables present the balance of assets and liabilities measured on a recurring basis as of June 30, 2026, and December 31, 2025.

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

March 31, 2026

June 30, 2026

Available for Sale:

26 unchanged sentences

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

The table below provides a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, as of March 31, 2026, and December 31, 2025.

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, 2026, and December 31, 2025.

(Dollars in thousands) Municipal Securities Corporate Securities

4 unchanged sentences

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

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

Unrealized Gains Included in Other Comprehensive Loss 193 44

Maturities, Prepayments, and Calls ( 3,317 ) —

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

The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at March 31, 2026.

Balance at June 30, 2026 $ 20,323 $ 8,565

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

March 31, 2026

June 30, 2026

Municipal Securities $ 20,323 Present Value of Expected Future Cash Flow Model Liquidity Premium 1 %

14 unchanged sentences

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

March 31, 2026

June 30, 2026

Individually Evaluated Loans $ 16,763 $ — $ — $ 16,763

6 unchanged sentences

Fair Value Financial Instruments

The fair value of a financial instruments is the current amount that would be exchanged between willing parties, other than in a forced liquidation.

The fair value of a financial instrument is the current amount that would be exchanged between willing parties, other than in a forced liquidation.

Fair value is best determined based upon quoted market prices.

24 unchanged sentences

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

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

The estimated approximate fair values of the Bank’s financial instruments as of June 30, 2026, and December 31, 2025 are as follows:

(Dollars in thousands) Carrying

Fair Value Level 1 Level 2 Level 3

March 31, 2026

June 30, 2026

Financial Assets:

34 unchanged sentences

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.

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