Business First Bancshares (NASDAQ:BFST) Announces Earnings Results, Beats Estimates By $0.05 EPS

Business First Bancshares (NASDAQ:BFST) released its earnings results on Monday. The company reported $0.79 EPS for the quarter, topping the consensus estimate of $0.74 by $0.05, FiscalAI reports. The firm had revenue of $93.00 million during the quarter, compared to analysts’ expectations of $93.25 million. Business First Bancshares had a return on equity of 11.03% and a net margin of 17.07%.

Here are the key takeaways from Business First Bancshares’ conference call:

• Core profitability improved materially, with core EPS of $0.79, core ROAA of 1.17%, and a 61.1% core efficiency ratio. Core net interest margin expanded 12 basis points to 3.80%, supported by higher loan yields and lower funding costs.
• Loans and deposits both grew at roughly a 7% annualized rate, led by Houston and Southwest Louisiana. Management expects mid- to upper-single-digit loan growth in the fourth quarter and sees further opportunity to reduce higher-cost brokered deposits and borrowings.
• Management expects additional margin expansion in the fourth quarter and views low- to mid-single-digit quarterly expansion as achievable if rate changes remain measured. Progressive acquisition cost savings were realized faster than expected, while fourth-quarter core expenses are expected to be about $57 million with low-single-digit organic growth thereafter.
• The company highlighted significant longer-term growth opportunities from Meta and Amazon data-center investments in Louisiana, SpaceX’s planned Southwest Louisiana development, expanded Houston and Dallas teams, and a new Tyler, Texas commercial team.
• Credit improvement was slower than anticipated, with non-performing loans declining only modestly to 1.24% of loans and charge-offs increasing due to a previously identified commercial relationship. Management expects roughly $15 million of NPA reductions in the fourth quarter and continued improvement toward an NPL ratio of 50 basis points or less.

Business First Bancshares Stock Up 0.1%

Business First Bancshares stock opened at $31.82 on Tuesday. The stock has a 50 day moving average of $31.09 and a two-hundred day moving average of $29.21. Business First Bancshares has a twelve month low of $23.55 and a twelve month high of $32.53. The company has a current ratio of 1.01, a quick ratio of 1.01 and a debt-to-equity ratio of 0.60. The stock has a market capitalization of $1.04 billion, a price-to-earnings ratio of 10.78 and a beta of 0.78.

Business First Bancshares Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Monday, November 30th. Investors of record on Sunday, November 15th will be given a $0.15 dividend. This represents a $0.60 annualized dividend and a yield of 1.9%. The ex-dividend date is Friday, November 13th. Business First Bancshares’s payout ratio is 21.28%.

Key Stories Impacting Business First Bancshares

Here are the key news stories impacting Business First Bancshares this week:

• Positive Sentiment: Q3 earnings exceeded expectations. Business First reported adjusted core EPS of $0.79, up from $0.72 a year earlier and $0.08 above the consensus estimate. Core net income increased to $26.0 million, while reported net income available to common shareholders was $23.2 million, or $0.71 per diluted share. Business First Bancshares Announces Financial Results for Q3 2026
• Positive Sentiment: Management outlined stronger operating goals. Business First is targeting a reduction in nonperforming loans to 50 basis points and a return on assets of 1.25%. Progress toward those goals could improve credit-quality perceptions and support valuation, particularly as the stock trades at roughly 10.8 times earnings. Business First Targets Reducing NPLs to 50 Basis Points
• Positive Sentiment: The quarterly dividend was maintained. The company declared a $0.15-per-share dividend payable November 30, equal to $0.60 annually and an indicated yield of approximately 1.9%. The payout provides ongoing shareholder support, although the ex-dividend date is November 13. Business First Declares Common Dividend
• Neutral Sentiment: Revenue was essentially in line but slightly missed estimates. Quarterly revenue was $93.0 million versus expectations of $93.25 million, meaning the earnings beat was driven more by profitability than by top-line growth. Analysts are evaluating whether the improved results justify the stock’s valuation after its strong run toward the 12-month high. Is Business First Bancshares a Bargain or Fully Priced?

Wall Street Analyst Weigh In

A number of equities analysts have recently commented on the company. DA Davidson boosted their price objective on Business First Bancshares from $33.00 to $35.00 and gave the stock a “buy” rating in a research report on Friday, July 24th. Hovde Group increased their price objective on Business First Bancshares from $36.00 to $37.00 and gave the company an “outperform” rating in a report on Thursday, August 27th. Weiss Ratings raised Business First Bancshares from a “buy (b)” rating to a “buy (b+)” rating in a research report on Friday. Finally, Stephens boosted their target price on Business First Bancshares from $34.00 to $36.00 and gave the stock an “overweight” rating in a research note on Friday, July 24th. Five research analysts have rated the stock with a Buy rating. According to data from MarketBeat, the stock presently has a consensus rating of “Buy” and an average price target of $34.75.

Insider Buying and Selling

In other Business First Bancshares news, EVP Donald Chad Carter sold 1,875 shares of the business’s stock in a transaction on Thursday, August 6th. The shares were sold at an average price of $31.64, for a total value of $59,325.00. Following the transaction, the executive vice president directly owned 12,642 shares of the company’s stock, valued at approximately $399,992.88. The trade was a 12.92% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, COO Keith Mansfield sold 4,200 shares of the company’s stock in a transaction on Thursday, July 30th. The stock was sold at an average price of $32.08, for a total transaction of $134,736.00. Following the transaction, the chief operating officer owned 77,139 shares of the company’s stock, valued at approximately $2,474,619.12. The trade was a 5.16% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 43,275 shares of company stock worth $1,371,575 in the last ninety days. Insiders own 5.67% of the company’s stock.

About Business First Bancshares

Business First Bancshares, Inc is a bank holding company headquartered in Baton Rouge, Louisiana. Through its principal banking subsidiary, b1BANK, the company provides financial services to businesses, professionals and individual customers.

b1BANK offers commercial and consumer deposit accounts, commercial and real estate lending, residential mortgage loans, treasury management and other traditional banking services. The bank also provides wealth management and related financial services designed to support business owners, institutions and retail customers.

Business First Bancshares was established in 2006 and has expanded its presence across Louisiana and into Texas.