Business First Bancshares, Inc. 10-Q

Item 1. Financial Statements BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Dollars in thousands, except per share data) June 30, 2026 (Unaudited) December 31, 2025 ASSETS Cash and Due from Banks $ 575,604 $ 411,175 Federal Funds Sold 95,535 172,393 Securities Purchased Under Agreements to Resell 30,702 25,587 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 $ 62,458 at June 30, 2026 and $ 53,959 at December 31, 2025 6,596,989 6,135,531 Premises and Equipment, Net 88,925 73,982 Accrued Interest Receivable 38,969 38,494 Other Equity Securities 51,302 49,342 Other Real Estate Owned 25,109 13,013 Cash Value of Life Insurance 139,169 120,292 Deferred Taxes 21,561 20,477 Goodwill 135,222 121,146 Core Deposit and Customer Intangible 33,267 14,497 Other Assets 27,181 28,488 Total Assets $ 8,903,506 $ 8,214,740 LIABILITIES Deposits: Noninterest Bearing $ 1,583,562 $ 1,322,074 Interest Bearing 5,651,994 5,376,516 Total Deposits 7,235,556 6,698,590 Securities Sold Under Agreements to Repurchase 24,442 22,622 Federal Home Loan Bank Borrowings 442,494 431,200 Subordinated Debt 114,250 92,530 Subordinated Debt - Trust Preferred Securities 9,678 5,000 Accrued Interest Payable 3,774 4,166 Other Liabilities 64,735 63,749 Total Liabilities $ 7,894,929 $ 7,317,857 Commitments and Contingencies (See Note 9) SHAREHOLDERS' EQUITY Preferred Stock, No Par Value; 5,000,000 Shares Authorized; 72,010 Shares ($ 1,000 Liquidation Preference) Issued at both June 30, 2026 and December 31, 2025, respectively $ 71,930 $ 71,930 Common Stock, $ 1 Par Value; 50,000,000 Shares Authorized; 32,535,659 and 29,510,668 Shares Issued and Outstanding at June 30, 2026 and December 31, 2025, respectively 32,536 29,511 Additional Paid-in Capital 578,087 502,155 Retained Earnings 361,846 326,574 Accumulated Other Comprehensive Loss ( 35,822 ) ( 33,287 ) Total Shareholders' Equity 1,008,577 896,883 Total Liabilities and Shareholders' Equity $ 8,903,506 $ 8,214,740 The accompanying notes are an integral part of these financial statements. 4 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF INCOME (Dollars in thousands, except per share data) For the Three Months Ended June 30, For the Six Months Ended June 30, 2026 2025 2026 2025 Interest Income: Interest and Fees on Loans $ 111,780 $ 104,028 $ 220,926 $ 207,020 Interest and Dividends on Non-taxable Securities 1,806 1,047 3,598 2,122 Interest and Dividends on Taxable Securities 7,298 5,859 13,968 11,398 Interest on Federal Funds Sold and Due From Banks 4,766 3,916 9,652 8,003 Total Interest Income 125,650 114,850 248,144 228,543 Interest Expense: Interest on Deposits 41,251 41,546 84,009 83,985 Interest on Borrowings 6,555 6,262 11,096 11,533 Total Interest Expense 47,806 47,808 95,105 95,518 Net Interest Income 77,844 67,042 153,039 133,025 Provision for Credit Losses 1,991 2,225 4,269 5,037 Net Interest Income after Provision for Credit Losses 75,853 64,817 148,770 127,988 Other Income: Service Charges on Deposit Accounts 3,197 2,633 6,339 5,493 Gain (Loss) on Sales of Securities ( 6 ) ( 47 ) 74 ( 48 ) Gain on Sales of Loans 1,583 781 2,924 2,037 Other Income 9,193 11,048 18,680 20,159 Total Other Income 13,967 14,415 28,017 27,641 Other Expenses: Salaries and Employee Benefits 33,120 28,317 66,159 57,814 Occupancy and Equipment Expense 8,279 7,162 16,401 14,518 Merger and Conversion-Related Expense 303 210 1,680 460 Other Expenses 17,823 15,517 32,756 28,992 Total Other Expenses 59,525 51,206 116,996 101,784 Income Before Income Taxes 30,295 28,026 59,791 53,845 Provision for Income Taxes 6,120 5,923 12,052 11,199 Net Income 24,175 22,103 47,739 42,646 Preferred Stock Dividends 1,350 1,350 2,700 2,700 Net Income Available to Common Shareholders $ 22,825 $ 20,753 $ 45,039 $ 39,946 Earnings Per Common Share: Basic $ 0.70 $ 0.70 $ 1.38 $ 1.36 Diluted $ 0.70 $ 0.70 $ 1.37 $ 1.35 The accompanying notes are an integral part of these financial statements. 5 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Dollars in thousands) 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 Other Comprehensive Income (Loss): Unrealized Gain (Loss) on Investment Securities 2,641 6,390 ( 3,139 ) 19,262 Reclassification Adjustment for (Gains) Losses on Sale of AFS Investment Securities Included in Net Income 6 47 ( 74 ) 48 Income Tax Effect ( 560 ) ( 1,361 ) 678 ( 4,080 ) Other Comprehensive Income (Loss) 2,087 5,076 ( 2,535 ) 15,230 Consolidated Comprehensive Income $ 26,262 $ 27,179 $ 45,204 $ 57,876 The accompanying notes are an integral part of these financial statements. 6 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS ’ EQUITY FOR THE THREE MONTHS ENDED June 30, 2026 AND 2025 (Dollars in thousands, except per share data) Preferred Stock Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders' Equity Balances at March 31, 2025 $ 71,930 $ 29,572 $ 501,609 $ 276,045 $ ( 52,844 ) $ 826,312 Comprehensive Income: Net Income — — — 22,103 — 22,103 Other Comprehensive Income — — — — 5,076 5,076 Cash Dividends Declared on Preferred Stock, $ 18.75 Per Share — — — ( 1,350 ) — ( 1,350 ) Cash Dividends Declared on Common Stock, $ 0.14 Per Share — — — ( 4,169 ) — ( 4,169 ) Stock Based Compensation Cost — 31 437 — — 468 Balances at June 30, 2025 $ 71,930 $ 29,603 $ 502,046 $ 292,629 $ ( 47,768 ) $ 848,440 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 7 Table of Contents 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) Preferred Stock Common Stock Additional Paid-In Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Shareholders' Equity Balances at December 31, 2024 $ 71,930 $ 29,552 $ 500,024 $ 260,958 $ ( 62,998 ) $ 799,466 Comprehensive Income: 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 ) Cash Dividends Declared on Preferred Stock, $ 37.50 Per Share — — — ( 2,700 ) — ( 2,700 ) Cash Dividends Declared on Common Stock, $ 0.30 Per Share — — — ( 9,767 ) — ( 9,767 ) Stock Issuance — 3,192 80,256 — — 83,448 Stock Based Compensation Cost — 109 2,963 — — 3,072 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. 8 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) For the Six Months Ended June 30, 2026 2025 Cash Flows From Operating Activities: Consolidated Net Income $ 47,739 $ 42,646 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Provision for Credit Losses 4,269 5,037 Depreciation and Amortization of Premises and Equipment 3,283 2,873 Net Amortization (Accretion) of Purchase Accounting Adjustments 128 ( 890 ) Stock Based Compensation Cost 3,072 2,073 Net Amortization (Accretion) of Securities ( 462 ) 561 (Gain) Loss on Sales of Securities ( 74 ) 48 Gain on Sale of Loans ( 1,044 ) ( 529 ) Income on Other Equity Securities ( 700 ) ( 1,077 ) (Gain) Loss on Sale of Other Real Estate Owned, Net of Writedowns ( 178 ) 230 Other Real Estate Owned Valuation Allowance ( 69 ) — Gain on Disposal of Premises and Equipment ( 28 ) ( 155 ) Increase in Cash Value of Life Insurance ( 1,733 ) ( 1,565 ) Deferred Income Tax (Benefit) Expense ( 1,310 ) 333 Gain on Extinguishment/Redemption of Debt ( 545 ) ( 630 ) Gain on Sale of Branch — ( 3,360 ) Changes in Assets and Liabilities: (Increase) Decrease in Accrued Interest Receivable 2,455 ( 880 ) (Increase) Decrease in Other Assets 7,195 ( 6,669 ) Decrease in Accrued Interest Payable ( 885 ) ( 1,092 ) Increase (Decrease) in Other Liabilities ( 7,309 ) 5,638 Net Cash Provided by Operating Activities 53,804 42,592 Cash Flows From Investing Activities: Purchases of Securities Available for Sale ( 102,941 ) ( 80,291 ) Proceeds from Maturities / Sales of Securities Available for Sale 41,502 26,245 Proceeds from Paydowns of Securities Available for Sale 51,905 39,846 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 (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 Net (Increase) Decrease in Securities Purchased Under Agreements to Resell ( 5,115 ) 25,402 Net Decrease in Federal Funds Sold 76,858 158,373 Net Cash Provided by Investing Activities 250,358 54,861 (CONTINUED) 9 Table of Contents For the Six Months Ended June 30, 2026 2025 Cash Flows From Financing Activities: 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 ) Repurchase of Common Stock ( 7,563 ) — Payment of Dividends on Preferred Stock ( 2,700 ) ( 2,700 ) Payment of Dividends on Common Stock ( 9,767 ) ( 8,275 ) 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 Cash and Due From Banks at End of Period $ 575,604 $ 495,757 Supplemental Disclosures for Cash Flow Information: Cash Payments for: Interest on Deposits $ 84,526 $ 85,401 Interest on Borrowings $ 10,971 $ 11,257 Income Tax Payments $ 12,031 $ 12,851 Supplemental Schedule for Noncash Investing and Financing Activities: Change in the Unrealized Gain (Loss) on Securities Available for Sale $ ( 3,213 ) $ 19,310 Change in Deferred Tax Effect on the Unrealized (Gain) Loss on Securities Available for Sale $ 678 $ ( 4,080 ) Transfer of Loans to Other Real Estate $ 13,268 $ 135 Acquisitions: Fair Value of Tangible Assets Acquired $ 755,212 $ — Other Intangible Assets Acquired 20,846 — Liabilities Assumed 699,883 — Net Identifiable Assets Acquired Over Liabilities Assumed $ 76,175 $ — The accompanying notes are an integral part of these financial statements. 10 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Note 1 – Basis of Presentation – The unaudited consolidated financial statements include the accounts of Business First Bancshares, Inc. (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"). The Bank operates out of full-service banking centers and loan production offices in markets across Louisiana, the Dallas/Fort Worth metroplex and Houston, Texas. As a state bank, it is subject to regulation by the Office of Financial Institutions (“OFI”), State of Louisiana, and the Federal Deposit Insurance Corporation (“FDIC”) and undergoes periodic examinations by these agencies. The Company is also regulated by the Federal Reserve and is subject to periodic examinations. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial results for the periods presented, and all such adjustments are of a normal recurring nature. All material intercompany transactions are eliminated. The results of operations for the interim periods are not necessarily indicative of the results to be expected for the entire year. These interim consolidated financial statements have been prepared according to the rules and regulations of the Securities and Exchange Commission and, therefore, certain information and footnote disclosures normally presented in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) have been omitted or abbreviated. These interim financial statements should be read in conjunction with the audited consolidated financial statements and footnote disclosures for the Company’s previously filed Form 10-K for the year ended December 31, 2025. Preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions the Company may undertake in the future. Critical accounting estimates that are particularly susceptible to significant change for the Company include the determination of the acquired loans, allowance for credit losses and purchase accounting adjustments (other than loans). Other estimates include goodwill, fair value of financial instruments, investment securities and the assessment of income taxes. Management does not anticipate any material changes to estimates in the near term. Factors that may cause sensitivity to the aforementioned estimates include but are not limited to: external market factors such as market interest rates and employment rates, changes to operating policies and procedures, economic conditions in the Company’s markets, and changes in applicable banking regulations. Actual results may ultimately differ from estimates. 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 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. Accounting Standards Not Yet Adopted None 11 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Note 2 – Mergers and Acquisitions – 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. Cost and Allocation of Purchase Price for Progressive Bancorp, Inc. (Progressive): (Dollars in thousands, except per share data) Purchase Price: 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 Total Purchase Price $ 83,451 Net Assets Acquired: Cash and Cash Equivalents $ 93,255 Securities Available for Sale 45,047 Loans and Leases Receivable, Net of Allowance 578,867 Premises and Equipment, Net 16,924 Cash Value of Life Insurance 11,559 Core Deposit Intangible 15,950 Other Assets 9,560 Total Assets 771,162 Deposits 684,753 Borrowings 7,538 Other Liabilities 7,592 Total Liabilities 699,883 Net Assets Acquired 71,279 Goodwill Resulting from Merger $ 12,172 12 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 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. Cash and Cash Equivalents: The carrying amount of these assets was a reasonable estimate of fair value based on the short-term nature of these assets. Securities Available for Sale: Fair values for securities were based on quoted market prices, where available. If quoted market prices were not available, fair value estimates were based on observable inputs including quoted market prices for similar instruments, quoted market prices that were not in an active market or other inputs that were observable in the market. In the absence of observable inputs, fair value was estimated based on pricing models/estimations. Loans and Leases Receivable: Fair values for loans were based on a discounted cash flow methodology that considered factors including, but not limited to, loan type, classification status, remaining term, prepayment speed, and current discount rates. The discount rates used for loans were based on current market rates for new originations of comparable loans and included adjustments for any liquidity concerns. 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 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 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 $ 570.9 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”): The fair value for core deposit intangible assets was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, net maintenance cost of the deposit base, including interest cost, and alternative cost of funds. The CDI is being amortized over 10 years based upon the period over which estimated economic benefits are estimated to be received. Deposits: The fair values used for the demand and savings deposits, by definition, equal the amount payable on demand at the acquisition date. Fair values for time deposits were estimated using a discounted cash flow analysis, that applied interest rates currently being offered to the contractual interest rates on such time deposits. Borrowings: Fair values for borrowings were based on estimated market rates over the remaining terms of the subordinated debt issuances. 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. 13 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Note 3 – Earnings per Common Share – Basic earnings per share (“EPS”) represents income available to common shareholders divided by the weighted average number of common shares outstanding; no dilution for any potentially convertible shares is included in the calculation. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. The potential common shares that may be issued by the Company relate to outstanding stock options, unvested restricted stock awards (“RSAs”), unvested restricted stock units (“RSUs”) and performance shares, excluding any that were antidilutive. 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 Numerator: Net Income $ 24,175 $ 22,103 $ 47,739 $ 42,646 Less: Preferred Stock Dividends 1,350 1,350 2,700 2,700 Net Income Available to Common Shares $ 22,825 $ 20,753 $ 45,039 $ 39,946 Denominator: Weighted Average Common Shares Outstanding 32,589,951 29,517,495 32,584,970 29,354,228 Dilutive Effect of Stock Options and RSAs 173,657 69,480 193,229 145,833 Weighted Average Dilutive Common Shares 32,763,608 29,586,975 32,778,199 29,500,061 Basic Earnings Per Common Share From Net Income Available to Common Shares $ 0.70 $ 0.70 $ 1.38 $ 1.36 Diluted Earnings Per Common Share From Net Income Available to Common Shares $ 0.70 $ 0.70 $ 1.37 $ 1.35 Note 4 – Securities – 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 Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury Securities $ 22,627 $ — $ 240 $ 22,387 U.S. Government Agencies 10,022 — 70 9,952 Corporate Securities 87,029 262 1,724 85,567 Mortgage-Backed Securities 698,832 1,564 29,039 671,357 Municipal Securities 268,040 190 16,360 251,870 Total Securities Available for Sale $ 1,086,550 $ 2,016 $ 47,433 $ 1,041,133 14 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury Securities $ 17,571 $ — $ 293 $ 17,278 U.S. Government Agencies 10,070 — 196 9,874 Corporate Securities 38,324 377 1,639 37,062 Mortgage-Backed Securities 674,211 3,153 27,273 650,091 Municipal Securities 291,256 536 16,868 274,924 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 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. June 30, 2026 Less Than 12 Months 12 Months or Greater Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Treasury Securities $ 12,485 $ 108 $ 9,902 $ 132 $ 22,387 $ 240 U.S. Government Agencies — — 9,952 70 9,952 70 Corporate Securities 35,162 128 20,162 1,596 55,324 1,724 Mortgage-Backed Securities 215,493 2,760 282,490 26,279 497,983 29,039 Municipal Securities 23,002 104 180,787 16,256 203,789 16,360 Total Securities Available for Sale $ 286,142 $ 3,100 $ 503,293 $ 44,333 $ 789,435 $ 47,433 December 31, 2025 Less Than 12 Months 12 Months or Greater Total (Dollars in thousands) Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses U.S. Treasury Securities $ — $ — $ 17,278 $ 293 $ 17,278 $ 293 U.S. Government Agencies — — 9,874 196 9,874 196 Corporate Securities 2,580 2 21,086 1,637 23,666 1,639 Mortgage-Backed Securities 83,844 506 336,946 26,767 420,790 27,273 Municipal Securities 12,939 57 210,329 16,811 223,268 16,868 Total Securities Available for Sale $ 99,363 $ 565 $ 595,513 $ 45,704 $ 694,876 $ 46,269 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 15 Table of Contents 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 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. (Dollars in thousands) Amortized Cost Fair Value Less Than One Year $ 50,452 $ 50,056 One to Five Years 205,238 194,525 Over Five to Ten Years 376,231 356,632 Over Ten Years 454,629 439,920 Total Securities Available for Sale $ 1,086,550 $ 1,041,133 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 June 30, 2026, and December 31, 2025, are summarized as follows: (Dollars in thousands) June 30, 2026 December 31, 2025 Real Estate Loans: Commercial $ 2,824,015 $ 2,611,279 Construction 693,477 639,069 Residential 1,079,018 944,065 Total Real Estate Loans 4,596,510 4,194,413 Commercial 1,988,696 1,921,833 Consumer and Other 74,241 73,244 Total Loans Held for Investment 6,659,447 6,189,490 Less: Allowance for Loan Losses ( 62,458 ) ( 53,959 ) 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 June 30, 2026, and December 31, 2025. Commercial and agricultural loans are pledged against the Federal Reserve Banks’ (“FRB”) discount window as of June 30, 2026, and December 31, 2025. 16 Table of Contents 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 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 $ 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. Management segregates the loan portfolio into portfolio segments which is defined as the level at which the Bank develops and documents a systematic method for determining its allowance for credit losses. The portfolio segments are segregated based on loan types and the underlying risk factors present in each loan type. Such risk factors are periodically reviewed by management and revised as deemed appropriate. Portfolio Segments and Risk Factors The loan portfolio is disaggregated into portfolio segments and then further disaggregated into classes for certain disclosures. GAAP defines a portfolio segment as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. A class is generally a disaggregation of a portfolio segment. The Company's loan portfolio segments are Real Estate, Commercial, and Consumer and Other. The classes and risk characteristics of each segment are discussed in more detail below. The segmentation and disaggregation of the portfolio is part of the ongoing credit monitoring process. Real Estate Portfolio Segment Real Estate: Commercial loans are extensions of credit secured by owner-occupied and non-owner-occupied collateral. Repayment is generally dependent on the successful operations of the property. General economic conditions may impact the performance of these types of loans, including fluctuations in the value of real estate, vacancy rates, and unemployment trends. Real estate commercial loans also include farmland loans that can be, or are, used for agricultural purposes. These loans are usually repaid through refinancing, cash flow from the borrower’s ongoing operations, development of the property, or sale of the property. Real Estate: Construction loans include loans to small-to-midsized businesses to construct owner-occupied properties, loans to developers of commercial real estate investment properties and residential developments and, to a lesser extent, loans to individual clients for construction of single-family homes in the Company’s market areas. Risks associated with these loans include fluctuations in the value of real estate, project completion risk and changes in market trends. The Company is also exposed to risk based on the ability of the construction loan borrower to finance the loan or sell the property upon completion of the project, which may be affected by changes in secondary market terms and criteria for permanent financing since the time that the Company funded the loan. Real Estate: Residential loans include first and second lien 1-4 family mortgage loans, as well as home equity lines of credit, in each case primarily on owner-occupied primary residences. The Company is exposed to risk based on fluctuations in the value of the real estate collateral securing the loan, as well as changes in the borrower’s financial condition, which could be affected by numerous factors, including divorce, job loss, illness, or other personal hardship. Real estate residential loans also include multi-family residential loans originated to provide permanent financing for multi-family residential income producing properties. Repayment of these loans primarily relies on successful rental and management of the property. 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, 17 Table of Contents 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. Any interruption or discontinuance of operating cash flows from the business, which may be influenced by events not under the control of the borrower such as economic events and changes in governmental regulations, could materially affect the ability of the borrower to repay the loan. Consumer and Other Portfolio Segment Consumer and other loans include a variety of loans to individuals for personal, family and household purposes, including secured and unsecured installment and term loans. 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, 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 18 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS For the Three 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 $ 24,101 $ 4,545 $ 9,599 $ 24,676 $ 734 $ 63,655 Charge-offs ( 1,057 ) — ( 27 ) ( 1,866 ) ( 258 ) ( 3,208 ) Recoveries — — 46 186 61 293 Provision (Recovery) ( 1,455 ) ( 696 ) ( 475 ) 4,090 254 1,718 Ending Balance $ 21,589 $ 3,849 $ 9,143 $ 27,086 $ 791 $ 62,458 Reserve for Unfunded Loan Commitments: Beginning Balance $ 333 $ 1,671 $ 246 $ 2,812 $ 38 $ 5,100 Provision (Recovery) ( 15 ) ( 478 ) ( 36 ) 782 20 273 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 For the Six 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 $ 23,460 $ 7,162 $ 8,036 $ 15,667 $ 515 $ 54,840 Charge-offs ( 266 ) ( 20 ) ( 237 ) ( 1,047 ) ( 999 ) ( 2,569 ) Recoveries 10 98 10 566 86 770 Provision (Recovery) 113 ( 1,042 ) 367 5,103 914 5,455 Ending Balance $ 23,317 $ 6,198 $ 8,176 $ 20,289 $ 516 $ 58,496 Reserve for Unfunded Loan Commitments: Beginning Balance $ 228 $ 1,311 $ 358 $ 1,765 $ 26 $ 3,688 Provision (Recovery) 38 ( 423 ) ( 72 ) 43 ( 4 ) ( 418 ) 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 19 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES 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. June 30, 2026 December 31, 2025 (Dollars in thousands) Loan Balance Specific Allocations Loan Balance Specific Allocations Real Estate Loans: Commercial $ 8,273 $ 4,065 $ 29,248 $ 1,873 Construction 1,595 207 2,141 149 Residential 8,470 2,549 2,380 — Total Real Estate Loans 18,338 6,821 33,769 2,022 Commercial 23,728 7,352 10,771 4,989 Consumer and Other 1,279 26 — — Total $ 43,345 $ 14,199 $ 44,540 $ 7,011 Credit Quality Indicators We utilize a risk grading matrix to assign a risk grade to each of our commercial loans. Loans are graded on a scale of 10 to 80. Individual loan officers review updated financial information, which may include credit scores, financial statements, collateral valuations and other borrower information, for all pass grade (10-45) loans to reassess the risk grade, generally on at least an annual basis. When a loan has a risk grade of 50, it is considered to be on management's “watch list,” and subject to additional and more frequent monitoring by both the loan officer and senior credit and risk personnel. Loans graded 60 or higher have exhibited potential or actual credit weakness that makes their full collection uncertain and are considered classified loans, consisting of substandard (60), doubtful (70) and loss (80) categories. Generally, loans that are classified are assigned special assets personnel for ongoing monitoring and resolution. 20 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 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 Criticized (Dollars in thousands) Pass (Risk Grade 10-45) Special Mention (Risk Grade 50) Substandard (Risk Grade 60) Doubtful (Risk Grade 70) Loss (Risk Grade 80) Total Current Period Charge- offs Real Estate: Commercial Originated in 2026 $ 156,273 $ 2,452 $ 116 $ — $ — $ 158,841 $ — Originated in 2025 441,222 1,486 5,632 — — 448,340 — Originated in 2024 299,666 652 16,080 — — 316,398 — Originated in 2023 207,636 — 23,541 — — 231,177 — Originated in 2022 663,968 23,649 9,304 — — 696,921 — Originated Prior to 2022 892,753 11,192 15,483 101 — 919,529 1,057 Revolving 49,975 — — — — 49,975 — Revolving Loans Converted to Term 2,834 — — — — 2,834 — Total Real Estate: Commercial $ 2,714,327 $ 39,431 $ 70,156 $ 101 $ — $ 2,824,015 $ 1,057 Real Estate: Construction Originated in 2026 $ 68,925 $ — $ — $ — $ — $ 68,925 $ — Originated in 2025 233,860 — 37 — — 233,897 — Originated in 2024 141,218 159 6,638 — — 148,015 — Originated in 2023 39,685 — 4,204 — — 43,889 — Originated in 2022 85,435 2,275 68 — — 87,778 — Originated Prior to 2022 52,325 99 5,106 — — 57,530 — Revolving 49,320 — — — — 49,320 — Revolving Loans Converted to Term 4,123 — — — — 4,123 — Total Real Estate: Construction $ 674,891 $ 2,533 $ 16,053 $ — $ — $ 693,477 $ — Real Estate: Residential Originated in 2026 $ 69,510 $ 781 $ 168 $ — $ — $ 70,459 $ — Originated in 2025 107,909 1,073 1,342 — — 110,324 — Originated in 2024 115,496 100 647 — — 116,243 — Originated in 2023 87,583 — 4,767 — — 92,350 — Originated in 2022 260,489 — 1,533 — — 262,022 — Originated Prior to 2022 262,741 33,858 3,981 23 — 300,603 27 Revolving 115,440 1,347 2,508 — — 119,295 — Revolving Loans Converted to Term 7,307 345 70 — — 7,722 — Total Real Estate: Residential $ 1,026,475 $ 37,504 $ 15,016 $ 23 $ — $ 1,079,018 $ 27 Commercial Originated in 2026 $ 222,703 $ 188 $ 89 $ — $ — $ 222,980 $ — Originated in 2025 280,132 2,513 2,560 — — 285,205 32 Originated in 2024 232,806 711 6,825 — — 240,342 178 Originated in 2023 150,025 5,745 5,460 55 — 161,285 1,033 Originated in 2022 114,900 1,160 27,724 — — 143,784 1,102 Originated Prior to 2022 157,931 2,487 9,035 11 — 169,464 114 Revolving 708,520 7,688 20,313 193 — 736,714 — Revolving Loans Converted to Term 25,081 3,198 643 — — 28,922 — Total Commercial $ 1,892,098 $ 23,690 $ 72,649 $ 259 $ — $ 1,988,696 $ 2,459 Consumer and Other Originated in 2026 $ 10,934 $ — $ — $ — $ — $ 10,934 $ 269 Originated in 2025 10,084 — 20 — — 10,104 11 Originated in 2024 5,737 — 6 — — 5,743 7 Originated in 2023 2,836 — 13 — — 2,849 18 Originated in 2022 2,895 — 29 — — 2,924 4 Originated Prior to 2022 25,020 — 105 12 — 25,137 249 Revolving 16,079 — 1 — — 16,080 211 Revolving Loans Converted to Term 305 — 165 — — 470 — Total Consumer and Other $ 73,890 $ — $ 339 $ 12 $ — $ 74,241 $ 769 Total Loans $ 6,381,681 $ 103,158 $ 174,213 $ 395 $ — $ 6,659,447 $ 4,312 21 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 Criticized (Dollars in thousands) Pass (Risk Grade 10-45) Special Mention (Risk Grade 50) Substandard (Risk Grade 60) Doubtful (Risk Grade 70) Loss (Risk Grade 80) Total Current Period Charge- offs Real Estate: Commercial Originated in 2025 $ 387,209 $ 1,506 $ 8,789 $ — $ — $ 397,504 $ — Originated in 2024 279,558 12,505 14,421 — — 306,484 — Originated in 2023 206,195 22,360 3,622 — — 232,177 — Originated in 2022 642,357 21,182 29,621 — — 693,160 3,850 Originated in 2021 366,356 7,871 1,048 — — 375,275 2 Originated Prior to 2021 536,644 8,692 6,641 472 — 552,449 — Revolving 51,905 — — — — 51,905 264 Revolving Loans Converted to Term 2,325 — — — — 2,325 — Total Real Estate: Commercial $ 2,472,549 $ 74,116 $ 64,142 $ 472 $ — $ 2,611,279 $ 4,116 Real Estate: Construction Originated in 2025 $ 206,047 $ 848 $ — $ — $ — $ 206,895 $ — Originated in 2024 155,588 — 474 — — 156,062 — Originated in 2023 42,018 3,561 1,205 — — 46,784 — Originated in 2022 104,768 2,074 2,088 — — 108,930 1 Originated in 2021 26,011 3,056 472 — — 29,539 19 Originated Prior to 2021 31,263 1,690 1,928 — — 34,881 — Revolving 54,618 — — — — 54,618 — Revolving Loans Converted to Term 1,360 — — — — 1,360 — Total Real Estate: Construction $ 621,673 $ 11,229 $ 6,167 $ — $ — $ 639,069 $ 20 Real Estate: Residential Originated in 2025 $ 95,656 $ 1,377 $ — $ — $ — $ 97,033 $ ( 79 ) Originated in 2024 84,881 — 507 — — 85,388 — Originated in 2023 84,761 — 1,346 — — 86,107 — Originated in 2022 242,424 614 1,830 — — 244,868 8 Originated in 2021 136,520 14,266 454 32 — 151,272 — Originated Prior to 2021 148,862 6,755 6,611 — — 162,228 197 Revolving 110,519 1,758 2,120 — — 114,397 116 Revolving Loans Converted to Term 2,685 — 87 — — 2,772 — Total Real Estate: Residential $ 906,308 $ 24,770 $ 12,955 $ 32 $ — $ 944,065 $ 242 Commercial Originated in 2025 $ 350,624 $ 606 $ 326 $ — $ — $ 351,556 $ 3 Originated in 2024 246,163 7,686 1,782 — — 255,631 239 Originated in 2023 166,677 2,265 3,363 48 — 172,353 1,051 Originated in 2022 137,273 16,048 9,030 — — 162,351 4,279 Originated in 2021 69,146 1,467 5,367 13 — 75,993 464 Originated Prior to 2021 98,366 884 3,290 38 — 102,578 732 Revolving 748,302 10,058 1,576 24 — 759,960 — Revolving Loans Converted to Term 18,360 135 22,916 — — 41,411 — Total Commercial $ 1,834,911 $ 39,149 $ 47,650 $ 123 $ — $ 1,921,833 $ 6,768 Consumer and Other Originated in 2025 $ 12,063 $ — $ 8 $ — $ — $ 12,071 $ 1,119 Originated in 2024 6,896 — 6 — — 6,902 49 Originated in 2023 3,812 — 19 — — 3,831 169 Originated in 2022 2,771 — 33 — — 2,804 97 Originated in 2021 1,045 — 68 2 — 1,115 48 Originated Prior to 2021 29,095 — 125 — — 29,220 12 Revolving 16,120 — 19 — — 16,139 497 Revolving Loans Converted to Term 904 — 258 — — 1,162 — Total Consumer and Other $ 72,706 $ — $ 536 $ 2 $ — $ 73,244 $ 1,991 Total Loans $ 5,908,147 $ 149,264 $ 131,450 $ 629 $ — $ 6,189,490 $ 13,137 22 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS The above classifications follow regulatory guidelines and can generally be described as follows: • Pass loans are of satisfactory quality. • Special mention loans have an existing weakness that could cause future impairment, including the deterioration of financial ratios, past due status, questionable management capabilities and possible reduction in the collateral values. • Substandard loans have an existing specific and well-defined weakness that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. Immediate corrective action is necessary. • Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable. 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 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 June 30, 2026 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Total Loans Receivable Recorded Investment Over 90 Days Past Due and Still Accruing Real Estate Loans: Commercial $ 6,666 $ 2,365 $ 20,431 $ 29,462 $ 2,794,553 $ 2,824,015 $ 362 Construction 4,887 18 9,148 14,053 679,424 693,477 307 Residential 2,922 1,402 11,327 15,651 1,063,367 1,079,018 281 Total Real Estate Loans 14,475 3,785 40,906 59,166 4,537,344 4,596,510 950 Commercial 7,044 1,851 38,739 47,634 1,941,062 1,988,696 3,033 Consumer and Other 134 160 127 421 73,820 74,241 28 Total $ 21,653 $ 5,796 $ 79,772 $ 107,221 $ 6,552,226 $ 6,659,447 $ 4,011 23 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS December 31, 2025 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Past Due Total Past Due Current Total Loans Receivable Recorded Investment Over 90 Days Past Due and Still Accruing Real Estate Loans: Commercial $ 1,838 $ 38,693 $ 10,097 $ 50,628 $ 2,560,651 $ 2,611,279 $ 363 Construction 1,988 72 4,363 6,423 632,646 639,069 — Residential 3,775 1,562 8,151 13,488 930,577 944,065 79 Total Real Estate Loans 7,601 40,327 22,611 70,539 4,123,874 4,194,413 442 Commercial 15,585 552 24,692 40,829 1,881,004 1,921,833 1,760 Consumer and Other 185 356 163 704 72,540 73,244 13 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 June 30, 2026, and December 31, 2025. (Dollars in thousands) June 30, 2026 December 31, 2025 Real Estate Loans: Commercial $ 20,583 $ 36,252 Construction 8,876 4,539 Residential 11,389 10,144 Total Real Estate Loans 40,848 50,935 Commercial 39,168 23,370 Consumer and Other 108 166 Total $ 80,124 $ 74,471 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. The Bank makes loan modifications, primarily utilizing internal renegotiation programs via direct customer contact, that manage customers’ debt exposures held only by the Bank. Additionally, the Bank makes loan modifications with customers who have elected to work with external renegotiation agencies and these modifications provide solutions to customers’ entire unsecured debt structures. During the periods ended June 30, 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 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. 24 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 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 $ — $ 25,000 3.62 % advance due January 2026 (a) — 120,000 4.00 % advance due March 2026 — 25,000 4.56 % advance due July 2026 25,000 25,000 3.91 % advance due July 2026 25,000 25,000 3.81 % advance due July 2026 75,000 — 3.82 % advance due August 2026 55,000 — 3.89 % advance due August 2026 55,000 — 0.89 % advance due November 2026 (b) 5,102 11,200 4.84 % advance due December 2026 25,000 25,000 0.71 % advance due August 2027 (b) (c) 340 — 0.70 % advance due August 2027 (b) (c) 170 — 0.68 % advance due August 2027 (b) (c) 170 — 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) 856 — 0.92 % advance due August 2030 (b) (c) 428 — 0.90 % advance due August 2030 (b) (c) 428 — 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 $ 442,494 $ 431,200 (a) Short term overnight advance. (b) Principal paid monthly. (c) Acquired during the Progressive acquisition. (d) Loan has put options beginning in October 2024. 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 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 25 Table of Contents 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 $ 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. 26 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Note 7 – Other Income and Other Expense – The Company has a single reportable operating segment which is presented as the Consolidated Statements of Income. An analysis of other income for the Company's single reportable operating segment is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Debit Card and ATM Fee Income $ 2,415 $ 1,958 $ 4,721 $ 3,816 Cash Value of Life Insurance Income 902 758 1,733 1,566 Fees and Brokerage Commissions 2,387 1,980 4,648 4,128 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 Other 2,545 2,430 4,962 4,607 Total Other Income $ 9,193 $ 11,048 $ 18,680 $ 20,159 An analysis of other expenses for the Company's single reportable operating segment is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, (Dollars in thousands) 2026 2025 2026 2025 Advertising and Promotions $ 2,606 $ 1,088 $ 4,114 $ 2,379 Communications 638 590 1,290 1,181 Ad Valorem Shares Tax 977 1,125 1,955 2,250 Data Processing Fees 3,317 5,321 7,029 8,557 Directors' Fees 247 193 507 472 Insurance 432 435 843 839 Legal and Professional Fees 1,661 1,093 2,746 2,106 Office Supplies and Printing 278 300 591 611 Regulatory Assessments 1,534 933 2,518 2,190 Other 6,133 4,439 11,163 8,407 Total Other Expenses $ 17,823 $ 15,517 $ 32,756 $ 28,992 Note 8 – 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 $ 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 %. 27 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS Future minimum lease payments under these leases are as follows: (Dollars in thousands) July 1, 2026 through December 31, 2026 $ 3,073 January 1, 2027 through December 31, 2027 5,797 January 1, 2028 through December 31, 2028 5,332 January 1, 2029 through December 31, 2029 4,511 January 1, 2030 through December 31, 2030 3,119 January 1, 2031 and Thereafter 6,383 Total Future Minimum Lease Payments 28,215 Less Imputed Interest ( 3,002 ) Present Value of Lease Liabilities $ 25,213 Note 9 – Commitments and Contingencies – In the normal course of business, the Bank is a party to financial instruments with off-balance sheet risk to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby and commercial letters of credit which are not included in the accompanying financial statements. These instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the balance sheet. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby and commercial letters of credit is represented by the contractual amount of those instruments. The Bank’s policy for obtaining collateral, and the nature of such collateral, is essentially the same as that involved in making commitments to extend credit. 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 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. 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 June 30, 2026. Income primarily results from the spread between the customer derivative and the offsetting dealer position. For the six months ended June 30, 2026, the Company recognized $ 1.9 million swap fee income. 28 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS June 30, 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 $ 49,839 $ 2,736 $ — Caps and floors purchased 49,839 — 2,736 Swaps 980,167 — — Total interest rate contracts $ 1,079,845 $ 2,736 $ 2,736 Note 11– Fair Value of Financial Instruments – Fair Value Disclosures The Company groups its financial assets and liabilities measured at fair value in three levels. Fair value should be based on the assumptions market participants would use when pricing the asset or liability and establishes a fair value hierarchy that prioritizes the inputs used to develop those assumptions and measure fair value. The hierarchy requires companies to maximize the use of observable inputs and minimize the use of unobservable inputs. The three levels of inputs used to measure fair value are as follows: • Level 1 – Includes the most reliable sources and includes quoted prices in active markets for identical assets or liabilities. • Level 2 – Includes observable inputs. Observable inputs include inputs other than quoted prices that are observable for the asset or liability (for example, interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates) as well as inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs). • Level 3 – Includes unobservable inputs and should be used only when observable inputs are unavailable. Recurring Basis Fair values of investment securities available for sale were primarily measured using information from a third-party pricing service. This pricing service provides information by utilizing evaluated pricing models supported with market data information. Standard inputs include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, benchmark securities, bids, offers, and reference data from market research publications. 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. 29 Table of Contents 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 June 30, 2026, and December 31, 2025. (Dollars in thousands) Fair Value Level 1 Level 2 Level 3 June 30, 2026 Available for Sale: U.S. Treasury Securities $ 22,387 $ — $ 22,387 $ — U.S. Government Agency Securities 9,952 — 9,952 — Corporate Securities 85,567 — 77,002 8,565 Mortgage-Backed Securities 671,357 — 671,357 — Municipal Securities 251,870 — 231,547 20,323 Loans Held for Sale 2,838 — 2,838 — Interest Rate Swaps 2,736 — 2,736 — Total assets at fair value $ 1,046,707 $ — $ 1,017,819 $ 28,888 Interest Rate Swaps $ 2,736 $ — $ 2,736 $ — Total liabilities at fair value $ 2,736 $ — $ 2,736 $ — December 31, 2025 Available for Sale: U.S. Treasury Securities $ 17,278 $ — $ 17,278 $ — U.S. Government Agency Securities 9,874 — 9,874 — Corporate Securities 37,062 — 28,541 8,521 Mortgage-Backed Securities 650,091 — 650,091 — Municipal Securities 274,924 — 251,477 23,447 Loans Held for Sale 1,094 — 1,094 — 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. 30 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS The table below provides a reconciliation for assets measured at fair value on a recurring basis using significant unobservable inputs, or Level 3 inputs, as of June 30, 2026, and December 31, 2025. (Dollars in thousands) Municipal Securities Corporate Securities Balance at December 31, 2024 $ 24,717 $ 12,500 Unrealized Gains Included in Other Comprehensive Loss 2,458 21 Maturities, Prepayments, and Calls ( 3,728 ) — Transfers Out of Level 3 — ( 4,000 ) Balance at December 31, 2025 23,447 8,521 Unrealized Gains Included in Other Comprehensive Loss 193 44 Maturities, Prepayments, and Calls ( 3,317 ) — Balance at June 30, 2026 $ 20,323 $ 8,565 The following table provides quantitative information about significant unobservable inputs used in fair value measurements of Level 3 assets measured at fair value on a recurring basis at June 30, 2026. (Dollars in thousands) Estimated Fair Value Valuation Technique Unobservable Inputs Discounts June 30, 2026 Municipal Securities $ 20,323 Present Value of Expected Future Cash Flow Model Liquidity Premium 1 % Corporate Securities 8,565 Present Value of Expected Future Cash Flow Model Liquidity Premium 2 % Nonrecurring Basis The Company has segregated all financial assets and liabilities that are measured at fair value on a nonrecurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date in the table below. The Company did not record any liabilities at fair value for which measurement of the fair value was made on a nonrecurring basis. The fair value of the individually evaluated loans is measured at the fair value of the collateral for collateral-dependent loans. Individually evaluated loans are Level 3 assets measured using appraisals from external parties of the collateral less any prior liens and adjusted for estimated selling costs. Adjustments may be made by management based on a customized internally developed discounting matrix. Repossessed assets are initially recorded at fair value less 31 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS 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. (Dollars in thousands) Fair Value Level 1 Level 2 Level 3 June 30, 2026 Assets: Individually Evaluated Loans $ 16,763 $ — $ — $ 16,763 Other Nonperforming Assets 25,109 — — 25,109 Total $ 41,872 $ — $ — $ 41,872 December 31, 2025 Assets: Individually Evaluated Loans $ 14,083 $ — $ — $ 14,083 Other Nonperforming Assets 13,013 — — 13,013 Total $ 27,096 $ — $ — $ 27,096 Fair Value Financial Instruments 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. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. In accordance with GAAP, certain financial instruments and all non-financial instruments are excluded from these disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Cash and Short-Term Investments – For those short-term instruments, the carrying amount is a reasonable estimate of fair value. Securities Purchased Under Agreements to Resell - The carrying amount approximates its fair value. Securities – Fair value of securities is based on quoted market prices. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. Loans – The fair value for loans is estimated using discounted cash flow analyses, with interest rates currently being offered for similar loans to borrowers with similar credit rates. Loans with similar classifications are aggregated for purposes of the calculations. The allowance for loan losses, which was used to measure the credit risk, is subtracted from loans. Cash Value of Bank-Owned Life Insurance (“BOLI”) – The carrying amount approximates its fair value. Other Equity Securities – The carrying amount approximates its fair value. Interest Rate Swaps - Market values are obtained from market pricing data sources available for comparable transactions in the over-the-counter derivative market. 32 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES 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. The carrying amount of short-term borrowings maturing within ninety days approximates the fair value. Commitments to Extend Credit and Standby and Commercial Letters of Credit – The fair values of commitments to extend credit and standby and commercial letters of credit do not differ significantly from the commitment amount and are therefore omitted from this disclosure. The estimated approximate fair values of the Bank’s financial instruments as of June 30, 2026, and December 31, 2025 are as follows: (Dollars in thousands) Carrying Amount Total Fair Value Level 1 Level 2 Level 3 June 30, 2026 Financial Assets: Cash and Short-Term Investments $ 671,139 $ 671,139 $ 671,139 $ — $ — Securities Purchased Under Agreements to Resell 30,702 30,702 — 30,702 — Securities 1,041,133 1,041,133 — 1,012,245 28,888 Loans Held for Sale 2,838 2,838 — 2,838 — Loans - Net 6,596,989 6,574,508 — — 6,574,508 Cash Value of BOLI 139,169 139,169 — 139,169 — Other Equity Securities 51,302 51,302 — — 51,302 Interest Rate Swaps 2,736 2,736 — 2,736 — Total $ 8,536,008 $ 8,513,527 $ 671,139 $ 1,187,690 $ 6,654,698 Financial Liabilities: Deposits $ 7,235,556 $ 7,228,839 $ — $ — $ 7,228,839 Borrowings 590,864 586,281 — 586,281 — Interest Rate Swaps 2,736 2,736 — 2,736 — Total $ 7,829,156 $ 7,817,856 $ — $ 589,017 $ 7,228,839 33 Table of Contents BUSINESS FIRST BANCSHARES, INC. AND SUBSIDIARIES NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS (Dollars in thousands) Carrying Amount Total Fair Value Level 1 Level 2 Level 3 December 31, 2025 Financial Assets: Cash and Short-Term Investments $ 583,568 $ 583,568 $ 583,568 $ — $ — Securities Purchased Under Agreements to Resell 25,587 25,587 — 25,587 — Securities 989,229 989,229 — 957,261 31,968 Loans Held for Sale 1,094 1,094 — 1,094 — Loans - Net 6,135,531 6,116,333 — — 6,116,333 Cash Value of BOLI 120,292 120,292 — 120,292 — 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 Financial Liabilities: Deposits $ 6,698,590 $ 6,698,181 $ — $ — $ 6,698,181 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 34 Table of Contents