Business First Bancshares (BFST) Q4 2024 earnings summary

Executive summary

• Achieved significant progress on strategic goals in 2024, with the fourth quarter capping a strong year and total assets reaching $7.86B, deposits $6.51B, and gross loans $5.98B as of December 31, 2024, reflecting growth from the Oakwood Bancshares acquisition and organic expansion.

• Closed the Oakwood Bancshares acquisition in Q4 2024, adding $862M–$863.6M in assets, $700M–$700.2M in loans, and $741M–$741.3M in deposits, ahead of forecasts on earnings and retention.

• Maintained a diversified commercial-focused banking franchise across Louisiana, Texas, and Mississippi, with Texas now representing 41% of credit exposure and over 40% of the loan portfolio.

• Achieved #1 deposit market share among Louisiana-headquartered banks and continued a strong M&A track record.

• Focused on sustainable growth, capital generation, and robust client relationships for 2025 and beyond.

Financial highlights

• Q4 GAAP net income: $15.1M; non-GAAP core net income: $19.5M; diluted EPS: $0.51 (core $0.66); FY 2024 core diluted EPS: $2.49.

• Net interest margin (GAAP): 3.61% (up 10 bps); core NIM: 3.56%; Q4 net interest income: $65.7M; core efficiency ratio: 63.09%.

• Total loans held for investment rose $761.3M (58% annualized); organic growth (ex-Oakwood): $62.8M (4.8% annualized); deposits up $870.4M (61.4% annualized), with $156.8M organic growth in Q4.

• Non-interest income Q4: $11.8M–$11.9M, including $1.3M from customer swap business and $300K BOLI death benefit.

• Q4 provision for credit losses was $4.8M–$6.7M, mainly due to Oakwood acquisition; other expenses increased $7.1M sequentially, largely from Oakwood-related costs.

Outlook and guidance

• Expect continued low to mid-single-digit NIM expansion per quarter in 2025, with potential for 3.65–3.75% NIM by year-end.

• Non-interest income projected at $40–$50M for 2025, with growth from diversified sources (SBA, swaps).

• Loan growth guidance remains mid-single digits, balanced with capital and deposit growth; focus on core deposit growth and M&A.

• No material cost savings expected from Oakwood acquisition in 2025; benefits anticipated in 2026.

• Reserve ratio expected to remain near current levels, with ongoing vigilance for one-off credit events.