Business First Bancshares (BFST) Q4 2025 earnings summary

Executive summary

• Achieved record FY 2025 net income available to common shareholders of $82.5 million, up 38% year-over-year, and core net income of $83.5 million, up 27% year-over-year.

• Diluted EPS for FY 2025 was $2.79, with core diluted EPS at $2.83, reflecting 13.7% year-over-year growth.

• Tangible book value per share increased 17.3% year-over-year to $23.36.

• Completed major core conversions and process improvements, and closed the acquisition of Progressive Bank, expanding the geographic footprint and deposit base.

• Recognized for the fifth consecutive year as one of the Best Banks to Work For, reflecting strong internal culture.

Financial highlights

• Net interest margin for FY 2025 was 3.69%, up from 3.48% in FY 2024; core net interest margin was 3.64% in Q4.

• Loans and deposits both grew, with Q4 loan growth of $168.4 million (11.1% annualized) and deposit growth of $191.7 million; total loans grew by $208 million (3.5% year-over-year) to $6.19 billion, and total deposits increased by $187 million (2.9% year-over-year) to $6.70 billion.

• Core ROAA was 1.06% for FY 2025 and 1.16% in Q4; core ROACE was 10.73% for FY 2025.

• Efficiency ratio improved to 62.55% for FY 2025 and 59.7% core in Q4.

• Tangible common equity increased by 90 basis points and CET1 capital by 50 basis points year-over-year; CET1 ratio at 9.94% and total risk-based capital ratio at 12.93% at year-end.

Outlook and guidance

• Expect mid-single-digit loan growth for 2026, with a more balanced view on paydowns.

• Non-interest income projected in the mid- to high-$13 million range per quarter, including Progressive Bank contributions.

• No major M&A planned for 2026; focus is on integrating past acquisitions and maximizing operational efficiency.

• Targeting core ROAA above 1.2% by end of 2026 and efficiency ratio into the 50s post-Progressive integration.

• Internal modeling estimates a total deposit beta of 45–55% in a near-term downward rate cycle.