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Business First Bancshares Inc (BFST)
NASDAQ:BFST
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Business First Bancshares
(NASDAQ:BFST)
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Rating:75Outperform
Price Target:
$32.00
â–²(13.60% Upside)
The score is driven primarily by solid financial performance (strong profitability and cash generation despite revenue decline) and constructive technical trends (price above major moving averages with positive MACD). Valuation is supportive with a low P/E and a ~2% dividend yield. Earnings call commentary adds a modest positive tilt due to expense discipline and ROAA improvement targets, tempered by loan growth softness and timing risks around SBA sales.
Positive Factors
Operational Excellence
The successful conversion of banking systems demonstrates strong operational capabilities, enhancing efficiency and scalability, which supports long-term growth and competitiveness.
Dividend Growth
Consistent dividend increases reflect financial stability and management's commitment to returning value to shareholders, indicating confidence in sustained profitability.
Cash Flow Growth
Robust cash flow growth enhances financial flexibility, enabling strategic investments and debt reduction, supporting long-term business resilience.
Negative Factors
Decline in Total Loans
A decline in total loans can signal reduced lending activity, potentially impacting future interest income and growth prospects.
Revenue Decline
A decrease in revenue suggests challenges in maintaining market share or pricing power, which could affect long-term profitability and growth.
Low Operating Cash Flow Coverage
Low operating cash flow coverage indicates potential liquidity constraints, which may limit the company's ability to invest in growth or weather economic downturns.
Business First Bancshares (BFST) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$834.26M
Dividend Yield2.12%
Average Volume (3M)130.33K
Price to Earnings (P/E)10.1
Beta (1Y)0.90
Revenue Growth17.99%
EPS Growth11.08%
CountryUS
Employees849
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.79
Shares Outstanding29,615,370
10 Day Avg. Volume162,832
30 Day Avg. Volume130,328
Financial Highlights & Ratios
PEG Ratio-0.78
Price to Book (P/B)0.84
Price to Sales (P/S)1.47
P/FCF Ratio11.28
Enterprise Value/Market Cap0.51
Enterprise Value/Revenue0.83
Enterprise Value/Gross Profit1.41
Enterprise Value/Ebitda3.85
Forecast
1Y Price Target
$33.00Price Target Upside17.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Business First Bancshares Business Overview & Revenue Model
Company DescriptionBusiness First Bancshares, Inc. operates as the bank holding company for b1BANK that provides various banking products and services. It offers various deposit products and services, including checking, demand, money market, time, and savings accounts; and certificates of deposits, remote deposit capture, and direct deposit services. The company also provides commercial and industrial loans, such as commercial lines of credit, letters of credit, working capital, term, equipment financing, asset acquisition, expansion and development, borrowing base, and other loan products; construction and development loans; commercial real estate loans; residential real estate loans comprising first and second lien 1-4 family mortgage loans, and home equity lines of credit; and consumer loans, including secured and unsecured installment and term loans. In addition, it offers wealth management products, including mutual funds, annuities, individual retirement accounts, and other financial products, as well as other fiduciary services and private banking products and services. Further, the company provides a range of other financial services comprising debit and credit cards, treasury and cash management, merchant, automated clearing house, lock-box, receivables factoring, correspondent banking, and other treasury services, as well as employee and payroll benefits solutions; and drive-through banking facilities, automated teller machines, night depository, personalized checks, electronic funds transfer, domestic and foreign wire transfer, traveler's checks, vault, loan and deposit sweep accounts, online and mobile banking, e-statements, and bank-by-mail services. As of March 01, 2022, it operates approximately 48 full-service banking centers and three loan production offices across Louisiana, and in the Dallas and Houston markets. Business First Bancshares, Inc. was incorporated in 2006 and is headquartered in Baton Rouge, Louisiana.
How the Company Makes MoneyBusiness First Bancshares generates revenue primarily through interest income from loans and investment securities. The bank extends various types of loans, including commercial real estate, consumer loans, and small business loans, which yield interest payments. Additionally, BFST earns non-interest income through service fees, transaction fees, and wealth management services. The company also benefits from deposit accounts, which provide liquidity and allow it to fund loans while managing its interest margin. Strategic partnerships with local businesses and community organizations enhance its market presence and customer acquisition, further contributing to its revenue streams.
Business First Bancshares Earnings Call Summary
Earnings Call Date:Jan 22, 2026
(Q4-2025)
| Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call conveyed solid operational and financial momentum: improved ROA and EPS, tangible book value growth (17.3%), stronger capital (TCE +90 bps, CET1 +50 bps), meaningful loan and deposit growth in Q4, improved efficiency (sub-60 in Q4) and successful strategic initiatives (core conversions, correspondent banking expansion, Progressive acquisition). Offsetting these positives were credit migration concentrated in a single $25.8M CRE relationship that lifted NPLs and past-due metrics, some near-term expense headwinds from the Progressive integration and one-time conversion items, and margin pressure from rate cuts and discount accretion volatility. Management presented clear remediation plans (reserve normalization target >1%, expected normalization of annualized losses to ~10–12 bps, cost saves post-conversion) and an outlook focused on execution, suggesting the positives materially outweigh the manageable headwinds.Q4-2025 Updates
Positive Updates
Strong Profitability and EPS Growth
Core ROA of 1.06% for the full year and 1.16% in Q4; GAAP Q4 net income $21.0M and GAAP EPS $0.71; non-GAAP core Q4 net income $23.5M and core EPS $0.79. EPS increased 14% for the year and 20% year-over-year in Q4.
Net Interest Margin and Loan Yield Performance
GAAP net interest margin rose 3 bps linked quarter to 3.71%; core net interest margin rose 1 bp to 3.64% in Q4. Weighted-average new and renewed loan yield was 6.97% in Q4.
Loan and Deposit Growth
Total loans held for investment increased $168.4M (11.1% annualized linked-quarter). New and renewed loan production ~ $500M in Q4 versus $332M paydowns/payoffs. Total deposits increased $191.7M in Q4 driven by +$236.2M in interest-bearing deposits.
Balance Sheet and Capital Strength
Tangible common equity increased 90 bps year-over-year; consolidated CET1 increased 50 bps year-over-year; tangible book value grew 17.3% year-over-year. Management resumed buybacks (≈150k shares purchased in Q4) and increased common dividend for the seventh consecutive year.
Efficiency and Expense Discipline
Core efficiency ratio improved to 59.7% in Q4 (sub-60 efficiency ratio); non-interest expense held relatively flat while revenue grew, producing positive operating leverage. Management expects continued operating leverage and a path to mid-50s efficiency in 2027.
Non-Interest Income Momentum and Correspondent Banking
Core non-interest income of $13.2M in Q4 (GAAP $12.2M). Swap fee revenue was about $1.0M higher than expected; $312k gain on OREO. Correspondent banking expanded to over 175 community bank clients and became a meaningful contributor to non-interest income.
Strategic Operations and Technology Upgrades
Completed two major core conversions and multiple software/platform implementations during 2025, improving capabilities (fraud, loan review, audit, pricing and profitability analytics) to manage scale and enhance execution in 2026.
Targeted Market and Footprint Progress
Closed acquisition of Progressive Bank (North Louisiana) at year-end, expected to reduce Texas loan concentration from ~39% to ~36% and add deposit and revenue diversification; organic growth led by Southwest and North Louisiana during Q4.
Negative Updates
Credit Migration and Single Large CRE Deterioration
Nonperforming loans ratio increased 42 bps to 1.24% and nonperforming assets rose 26 bps to 1.09% (linked quarter). The deterioration was largely driven by a single $25.8M commercial real estate (medical facility in Houston) relationship moved to nonperforming — one of the largest single exposures on the books.
Rise in Past-Due Loans and Charge-Offs
Loans past due 30+ days (excluding non-accruals) rose from 27 bps to 64 bps. Annualized charge-offs ended the year at ~19 bps; management expects annualized losses to normalize to approximately 10–12 bps next year.
Pressure on Loan Yields and Margin from Rate Cuts
Core loan yields (excluding discount accretion) declined 15 bps linked quarter to 6.78%; management noted Q4 interest rate cuts began to pressure loan pricing and recognized a $1.0M interest income reversal on a nonaccrual loan (~5 bps drag on Q4 NIM).
Near-Term Expense Increases and One-Time Costs
Q4 GAAP non-interest expense $52.4M included $1.4M acquisition-related and $796k conversion-related expense. Q1 core expense base is expected to increase due to Progressive closing and timing of annual expense resets.
Deposit Mix and Seasonality Risks
Non-interest-bearing deposits decreased $44.5M in Q4; management expects some outflow of public funds in Q1 due to seasonality. Core CD balance retention was ~83% in Q4, indicating some retention risk as rates move.
Elevated Loan Discount Accretion Volatility
Loan discount accretion was elevated at $1.4M in Q4 (driven by an acquired loan paying off sooner than expected); management expects ~ $1.8M quarterly accretion in 2026 including Progressive, introducing some volatility to reported margin.
Company Guidance
Guidance from the call emphasized continued balance‑sheet discipline and modest growth: management expects mid‑single‑digit loan growth in 2026 (Q4 loan increase was $168.4M, +11.1% annualized), a baseline of no further Fed cuts with the ability to achieve 45%–55% deposit betas on any future cuts, and core CD retention of ~83%; they see modest margin improvement in a slightly down‑rate environment (Q4 GAAP NIM 3.71%, core NIM 3.64%, core loan yield ex‑accretion 6.78%, weighted average new/renewed loan yield 6.97%), expect loan discount accretion of roughly $1.8M per quarter in 2026 (was $1.4M in Q4), and project quarterly noninterest income in the mid‑to‑high $13M range (including ~$1M quarterly from the Progressive Bank acquisition). Capital/capital return guidance was opportunistic buybacks (management views <1.20x tangible book as attractive after buying ~150k shares in Q4), continued dividend support, and further CET1/tangible common equity improvement (tangible book value grew 17.3% y/y, tangible common equity +90 bps, consolidated CET1 +50 bps y/y). Credit and reserve guidance targets moving to ≥1.0% reserve coverage (all‑in ~1.06% today including marks) with expected annualized losses roughly 10–12 bps (2025 ended ~19 bps), and continued focus on improving efficiency (Q4 core ROA 1.16%, FY core ROA 1.06%, FY EPS +14% with Q4 EPS +20% YoY, Q4 core efficiency ratio 59.7% with a target to push the efficiency ratio into the 50s by 2027); timing notes included Progressive cost saves post‑conversion in Q3 2026 and an anticipated Q1 seasonally‑driven public funds outflow.Business First Bancshares Financial Statement Overview
Summary
Solid overall fundamentals driven by profitability and cash generation (TTM net margin 17.26%, free cash flow growth 16.07%, FCF to net income 0.98). Offsetting factors include a TTM revenue decline (-3.58%) and a noted risk from low operating cash flow coverage, while leverage appears manageable (debt-to-equity 0.56) with decent ROE (9.78%).Income Statement
The income statement shows a strong net profit margin of 17.26% for TTM, indicating profitability. However, revenue has decreased by 3.58% in the TTM period, which is a concern. EBIT and EBITDA margins are healthy, suggesting efficient operations despite the revenue decline.72
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 0.56, indicating manageable leverage. Return on equity is 9.78%, showing decent profitability. The equity ratio is not explicitly provided, but overall, the balance sheet suggests stability with some room for improvement in equity growth.68
Positive
Cash Flow
Cash flow analysis reveals a strong free cash flow growth of 16.07% in the TTM period, indicating improved cash generation. The free cash flow to net income ratio is high at 0.98, suggesting efficient cash conversion. However, the operating cash flow to net income ratio is low, which could be a potential risk.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 509.73M | 457.75M | 385.62M | 264.08M | 203.11M | 168.78M |
| Gross Profit | 299.45M | 259.50M | 242.94M | 216.65M | 178.51M | 135.24M |
| EBITDA | 109.86M | 88.31M | 95.26M | 73.41M | 68.72M | 39.95M |
| Net Income | 81.99M | 65.11M | 71.04M | 54.26M | 52.14M | 29.99M |
Balance Sheet | ||||||
| Total Assets | 7.95B | 7.86B | 6.58B | 5.99B | 4.73B | 4.16B |
| Cash, Cash Equivalents and Short-Term Investments | 446.80M | 347.76M | 1.11B | 1.04B | 1.09B | 789.74M |
| Total Debt | 494.89M | 483.26M | 635.07M | 560.12M | 187.59M | 105.99M |
| Total Liabilities | 7.08B | 7.06B | 5.94B | 5.41B | 4.29B | 3.75B |
| Stockholders Equity | 878.44M | 799.47M | 644.26M | 580.48M | 433.37M | 409.96M |
Cash Flow | ||||||
| Free Cash Flow | 90.98M | 59.84M | 80.78M | 61.80M | 52.47M | 26.37M |
| Operating Cash Flow | 92.49M | 61.40M | 92.43M | 69.58M | 56.44M | 29.34M |
| Investing Cash Flow | -39.76M | -294.91M | -521.14M | -700.52M | -675.35M | -475.30M |
| Financing Cash Flow | 133.15M | 326.50M | 502.08M | 715.31M | 538.15M | 505.72M |
Business First Bancshares Technical Analysis
Positive
28.17
Price Trends
26.78
Positive
25.38
Positive
24.69
Positive
Market Momentum
0.30
Negative
60.91
Neutral
43.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BFST, the sentiment is Positive. The current price of 28.17 is above the 20-day moving average (MA) of 26.94, above the 50-day MA of 26.78, and above the 200-day MA of 24.69, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 60.91 is Neutral, neither overbought nor oversold. The STOCH value of 43.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for BFST.
Business First Bancshares Risk Analysis
Business First Bancshares disclosed 57 risk factors in its most recent earnings report. Business First Bancshares reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Business First Bancshares Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $760.17M | 12.94 | 7.31% | 2.58% | 12.09% | -15.97% | |
76 Outperform | $846.58M | 13.66 | 13.95% | 2.18% | 22.24% | 18.63% | |
75 Outperform | $834.26M | 10.10 | 10.39% | 2.12% | 17.99% | 11.08% | |
75 Outperform | $799.60M | 13.35 | 8.35% | 3.48% | 5.75% | 20.52% | |
69 Neutral | $686.80M | 9.92 | 11.18% | 2.48% | 0.67% | 17.88% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
61 Neutral | $752.19M | 11.59 | 10.88% | 1.12% | 0.21% | 14.54% |
* Financial Sector Average
BFST
Business First Bancshares
28.17
2.18
8.40%
GSBC
Great Southern Bancorp
61.38
4.72
8.33%
MPB
Mid Penn Bancorp
32.99
4.47
15.67%
TRST
TrustCo Bank
43.40
12.84
42.02%
HTB
Hometrust Bancshares
43.12
7.32
20.45%
FSBC
Five Star
39.62
10.64
36.73%
Business First Bancshares Corporate Events
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Business First Bancshares Reports Strong 2025 Earnings Growth
Positive
Jan 22, 2026
On January 22, 2026, Business First Bancshares reported unaudited results for the fourth quarter and full year ended December 31, 2025, highlighting a strong year of earnings growth and balance sheet expansion. Quarterly net income available to common shareholders was $21.0 million, slightly down from the prior quarter, while core net income rose to $23.5 million, reflecting improved underlying profitability; for the full year, net income jumped to $82.5 million, with core net income of $83.5 million, both significantly higher than 2024. The bank posted robust loan and deposit growth in the fourth quarter, with loans held for investment up 2.8% and deposits up 2.95%, driven largely by commercial and real estate activity in Louisiana and a sizable contribution from Texas-based lending, while net interest margin remained stable around the mid‑3% range as funding costs eased. Shareholder value improved through a board-approved stock repurchase program and rising book and tangible book value per share, and the board declared both preferred and common dividends tied to fourth-quarter performance, though credit metrics showed some pressure from a single deteriorated $25.8 million commercial real estate relationship that pushed nonperforming loan and asset ratios higher and necessitated continued provisioning for credit losses.
The most recent analyst rating on (BFST) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Business First Bancshares stock, see the BFST Stock Forecast page.
Business Operations and StrategyExecutive/Board ChangesM&A Transactions
Business First Bancshares Completes Progressive Bancorp Merger Integration
Positive
Jan 5, 2026
On January 1, 2026, Business First Bancshares completed its merger with Progressive Bancorp, with Progressive and its subsidiary Progressive Bank absorbed into Business First and b1BANK, respectively, in an all-stock transaction that delivered approximately 3.2 million Business First shares to Progressive shareholders and converted existing Progressive equity awards into merger consideration. The deal, announced in a January 5, 2026 press release, lifts Business First’s balance sheet to roughly $8.7 billion in assets, $6.6 billion in loans and $7.2 billion in deposits, adding nine North Louisiana locations and bolstering the group’s presence in that region, while also bringing Progressive’s longtime chairman and CEO George W. Cummings III onto the boards of both Business First and b1BANK and naming Progressive president David Hampton as b1BANK’s vice chairman for the North Louisiana market, moves that deepen local leadership and are expected to strengthen the bank’s competitive positioning in Louisiana.
The most recent analyst rating on (BFST) stock is a Buy with a $30.00 price target. To see the full list of analyst forecasts on Business First Bancshares stock, see the BFST Stock Forecast page.
Business Operations and StrategyDividendsFinancial Disclosures
Business First Bancshares Q3 2025 Financial Results Announced
Positive
Oct 23, 2025
On October 23, 2025, Business First Bancshares announced its financial results for the third quarter of 2025, reporting a net income of $21.5 million, an increase from the previous quarter. The company also declared dividends for both preferred and common shareholders, reflecting its strong financial performance and operational execution, including the successful conversion of Oakwood Bank systems. The board approved a $0.01 increase in the quarterly common dividend, and the company saw growth in deposits and securities, despite a decrease in loans held for investment. The company’s credit quality metrics stabilized, and shareholders’ equity increased, driven by earnings and positive fair value adjustments in the securities portfolio.
The most recent analyst rating on (BFST) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Business First Bancshares stock, see the BFST Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.