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Jun 30, 2025
Business First Q2 2025 Earnings Report
Business First reported solid Q2 2025 performance with strong net income growth and improved tangible book value.
Key Takeaways
Business First Bancshares delivered a robust quarter with $20.8 million in net income and improved capital ratios, supported by stable NIM and strategic branch activity.
Net income available to common shareholders was $20.8 million, or $0.70 per diluted share.
Net interest margin remained steady at 3.68%, despite headwinds from excess funding and deposit sale.
Tangible book value per common share rose to $21.61, up 3.7% from the prior quarter.
Return on average assets and return on average common equity reached 1.07% and 10.87%, respectively.
Forward Guidance
Business First projects continued growth driven by operational improvements, despite modest credit headwinds and funding cost impacts.
Positive Outlook
- Successful core system conversion completed to support scalability.
- Improved capital ratios support long-term lending capacity.
- Strategic deposit management and sale generated $3.4M gain.
- Announced acquisition of Progressive Bancorp to expand footprint.
- Tangible book value increased 3.7% QoQ, reflecting strong balance sheet management.
Challenges Ahead
- Nonperforming loans rose to 0.97%, up from 0.69% sequentially.
- NIM flat at 3.68%, limited by short-term liquidity strategies.
- Deposit base declined 0.6%, despite excluding branch sale impact.
- Salaries and benefits remained the largest expense driver.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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