Document

Baton Rouge, La. (October 24, 2024) – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended September 30, 2024, including net income available to common shareholders of $16.5 million or $0.65 per diluted common share, increases of $0.6 million and $0.03, respectively, compared to the linked quarter ended June 30, 2024. On a non-GAAP basis, core net income for the quarter ended September 30, 2024, which excludes certain income and expenses, was $17.2 million or $0.68 per diluted common share, increases of $1.0 million and $0.04, from the linked quarter.

"In the third quarter our team again demonstrated consistent improvement in fundamental performance,” said Jude Melville, chairman, president and CEO of Business First Bancshares. “Measured and productive growth, strengthened capital ratios, improved margins and increased income from newer non-spread-based lines of business, in addition to expense discipline of which I am especially proud, which positions us solidly to continue meeting our stakeholders’ expectations in coming quarters."

On Thursday, October 24, 2024, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the third quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on November 30, 2024, or as soon thereafter as practicable, to the shareholders of record as of November 15, 2024.

•Net Interest Margin (NIM) Expansion. For the quarter ended September 30, 2024, net interest income totaled $56.1 million and net interest margin and net interest spread were 3.51% and 2.54%, respectively, compared to $54.0 million, 3.45% and 2.47% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.7 million) were 3.46% and 2.50% for the quarter ended September 30, 2024, compared to 3.34% and 2.37% (excluding loan discount accretion of $1.7 million) for the linked quarter.

Credit quality metrics remain solid, but some migration occurred during the quarter ended September 30, 2024, compared to the linked quarter. The ratio of nonperforming loans compared to loans held for investment increased 7 basis points to 0.50% at September 30, 2024, while the ratio of nonperforming assets compared to total assets increased 4 basis points to 0.40% at September 30, 2024. The increases were attributable to a $4.9 million increase in nonaccrual loans compared to the linked quarter.

Accumulated other comprehensive income (AOCI) increased $21.6 million, or 31.92%, during the third quarter due to positive after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $24.59 at September 30, 2024, compared to $23.24 at June 30, 2024, a 5.81% increase from the linked quarter. On a non-GAAP basis, tangible book value per common share increased from $19.22 at June 30, 2024, to $20.60 at September 30, 2024, a 7.18% increase from the linked quarter.

For the quarter ended September 30, 2024, net interest income totaled $56.1 million, compared to $54.0 million from the linked quarter. Loan and interest-earning asset yields of 7.12% and 6.42%, respectively, increased 5 and 4 basis points, respectively, compared to 7.07% and 6.38% from the linked quarter. Both ratio increases were impacted by $1.0 million less in loan discount accretion. Net interest margin and net interest spread were 3.51% and 2.54% compared to 3.45% and 2.47% for the linked quarter. The overall cost of funds, which included noninterest-bearing deposits, remained stable at 3.07% from the linked quarter.

Non-GAAP net interest income (excluding loan discount accretion of $0.7 million) totaled $55.4 million for the quarter ended September 30, 2024, compared to $52.3 million (excluding loan discount accretion of $1.7 million) for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.7 million) were 3.46% and 2.50%, respectively, for the quarter ended September 30, 2024, compared to 3.34% and 2.37% (excluding loan discount accretion of $1.7 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 13 basis points to 7.07% from 6.94%, and interest earnings asset yields increased 10 basis points to 6.38% from 6.28%, compared to the linked quarter. Yield improvements were partially driven by Business First's increased production in its factoring portfolio.

Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.97% and 10.76% for the quarter ended September 30, 2024, compared to 0.95% and 10.94%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.01% and 11.23% for the quarter ended September 30, 2024, compared to 0.98% and 11.22%, respectively, for the linked quarter. Returns on equity for the current quarter were offset by the large increase in AOCI compared to the linked quarter. Excluding the $13.2 million average AOCI increase during the quarter, the non-GAAP return on common equity for the quarter improved to 11.48%.

Executive management will host a conference call and webcast to discuss results on Thursday, October 24, 2024, at 4:00 p.m. Central Time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 5274174, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/a2ui6eo8. On the day of the presentation, the corresponding slide presentation will be available to view on the b1BANK website at https://www.b1bank.com/shareholder-info.

Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.9 billion in assets, $6.9 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and Texas providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.

This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP “core” measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-

related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Business First’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.

Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.

For additional information about Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.


Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)

	Three Months Ended
(Dollars in thousands)	September 30, 2024			June 30, 2024			September 30, 2023

Balance Sheet Ratios

Loans (HFI) to Deposits	92.54		%	92.80		%	94.79		%
Shareholders' Equity to Assets Ratio	10.15		%	9.91		%	9.31		%

Loans Receivable Held for Investment (HFI)

Commercial	$	1,496,480		$	1,520,392		$	1,332,384
Real Estate:
Commercial	2,256,370			2,198,119			2,128,855
Construction	654,353			637,466			708,835
Residential	743,878			743,876			686,921
Total Real Estate	3,654,601			3,579,461			3,524,611
Consumer and Other	69,037			62,999			63,278
Total Loans (Held for Investment)	$	5,220,118		$	5,162,852		$	4,920,273

Allowance for Loan Losses

Balance, Beginning of Period	$	41,412		$	41,165		$	42,013
Charge-Offs - Quarterly	(1,424)			(1,426)			(2,423)
Recoveries - Quarterly	295			91			685
Provision for Loan Losses - Quarterly	1,871			1,582			854
Balance, End of Period	$	42,154		$	41,412		$	41,129

Allowance for Loan Losses to Total Loans (HFI)	0.81		%	0.80		%	0.84		%
Allowance for Credit Losses to Total Loans (HFI)/(1)	0.86		%	0.86		%	0.90		%
Net Charge-Offs (Recoveries) to Average Quarterly Total Loans	0.02		%	0.03		%	0.04		%

Remaining Loan Purchase Discount	$	9,003		$	9,690		$	14,752

Nonperforming Assets

Nonperforming
Nonaccrual Loans	$	25,874		$	21,008		$	16,029
Loans Past Due 90 Days or More	185			1,355			247
Total Nonperforming Loans	26,059			22,363			16,276
Other Nonperforming Assets:
Other Real Estate Owned	1,787			1,983			1,558
Other Nonperforming Assets	—			—			—
Total other Nonperforming Assets	1,787			1,983			1,558
Total Nonperforming Assets	$	27,846		$	24,346		$	17,834

Nonperforming Loans to Total Loans (HFI)	0.50		%	0.43		%	0.33		%
Nonperforming Assets to Total Assets	0.40		%	0.36		%	0.27		%

(1) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments.


Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)

	Three Months Ended									Nine Months Ended
(Dollars in thousands, except per share data)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023

Per Share Data

Basic Earnings per Common Share	$	0.65		$	0.63		$	0.76		$	1.77		$	2.04
Diluted Earnings per Common Share	0.65			0.62			0.76			1.75			2.02
Dividends per Common Share	0.14			0.14			0.12			0.42			0.36
Book Value per Common Share	24.59			23.24			21.01			24.59			21.01

Average Common Shares Outstanding	25,289,094			25,265,495			25,111,548			25,227,319			25,064,856
Average Diluted Common Shares Outstanding	25,440,247			25,395,614			25,288,660			25,421,746			25,281,908
End of Period Common Shares Outstanding	25,519,501			25,502,175			25,344,168			25,519,501			25,344,168

Annualized Performance Ratios

Return to Common Shareholders on Average Assets (1)	0.97		%	0.95		%	1.17		%	0.89		%	1.09		%
Return to Common Shareholders on Average Common Equity (1)	10.76		%	10.94		%	14.16		%	10.08		%	13.00		%
Net Interest Margin (1)	3.51		%	3.45		%	3.61		%	3.43		%	3.66		%
Net Interest Spread (1)	2.54		%	2.47		%	2.68		%	2.46		%	2.79		%
Efficiency Ratio (2)	63.45		%	65.14		%	59.23		%	66.02		%	61.04		%

Total Quarterly/Year-to-Date Average Assets	$	6,788,644		$	6,711,173		$	6,474,935		$	6,722,716		$	6,290,886
Total Quarterly/Year-to-Date Average Common Equity	610,018			583,184			535,211			590,354			526,398

Other Expenses

Salaries and Employee Benefits	$	24,877		$	25,523		$	22,487		$	75,816		$	68,002
Occupancy and Bank Premises	2,630			2,634			2,428			7,778			7,131
Depreciation and Amortization	1,844			1,742			1,690			5,262			5,120
Data Processing	2,881			2,641			2,024			8,101			6,544
FDIC Assessment Fees	887			874			779			2,589			2,804
Legal and Other Professional Fees	873			1,042			766			2,781			2,340
Advertising and Promotions	1,057			966			1,202			3,168			3,576
Utilities and Communications	716			718			758			2,108			2,199
Ad Valorem Shares Tax	900			900			965			2,700			2,895
Directors' Fees	245			268			278			795			817
Other Real Estate Owned Expenses and Write-Downs	11			71			14			119			183
Merger and Conversion-Related Expenses	319			409			2			1,068			173
Other	5,210			5,322			5,214			15,797			15,204
Total Other Expenses	$	42,450		$	43,110		$	38,607		$	128,082		$	116,988


Business First Bancshares, Inc.
Selected Financial Information
(Unaudited)

	Three Months Ended						Nine Months Ended
(Dollars in thousands, except per share data)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023

Other Income

Service Charges on Deposit Accounts	$	2,723	$	2,537	$	2,540	$	7,699	$	7,234
Loss on Sales of Securities	(13)		—		—		(14)		(62)
Debit Card and ATM Fee Income	1,864		1,950		1,581		5,590		4,797
Bank-Owned Life Insurance Income	679		627		604		1,885		1,675
Gain on Sales of Loans	122		2,460		321		2,721		1,426
Mortgage Origination Income	98		35		108		202		238
Fees and Brokerage Commission	1,968		1,875		1,933		5,780		5,537
Gain on Sales of Other Real Estate Owned	(16)		2		85		49		308
Losses on Disposal of Other Assets	—		(15)		(23)		(15)		(14)
Gain on Sale of Branch	—		—		932		—		932
Gain on Extinguishment of Debt	—		—		517		—		—
Swap Fee Income	937		285		—		1,451		1,458
Pass-Through Income (Loss) from Other Investments	335		392		(11)		1,022		2,974
Other	2,077		2,028		1,296		5,966		3,726
Total Other Income	$	10,774	$	12,176	$	9,883	$	32,336	$	30,229

(1) Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an actual day count convention.
(2) Noninterest expense (excluding provision for loan losses) divided by noninterest income (excluding security sales gains/losses) plus net interest income less gain/loss on sales of securities.


Business First Bancshares, Inc.
Consolidated Balance Sheets
(Unaudited)


(Dollars in thousands)	September 30, 2024		June 30, 2024		September 30, 2023

Assets

Cash and Due From Banks	$	213,199	$	208,051	$	191,461
Federal Funds Sold	169,980		113,587		196,616
Securities Purchased under Agreements to Resell	25,879		—		—
Securities Available for Sale, at Fair Values	916,091		875,048		849,704
Mortgage Loans Held for Sale	—		680		652
Loans and Lease Receivable	5,220,118		5,162,852		4,920,273
Allowance for Loan Losses	(42,154)		(41,412)		(41,129)
Net Loans and Lease Receivable	5,177,964		5,121,440		4,879,144
Premises and Equipment, Net	67,617		68,545		64,674
Accrued Interest Receivable	32,547		30,617		28,060
Other Equity Securities	39,555		38,805		32,591
Other Real Estate Owned	1,787		1,983		1,558
Cash Value of Life Insurance	101,362		100,684		95,906
Deferred Taxes, Net	20,852		25,888		34,660
Goodwill	91,527		91,527		88,391
Core Deposit and Customer Intangibles	10,326		10,849		12,418
Other Assets	19,963		16,185		12,946

Total Assets	$	6,888,649	$	6,703,889	$	6,488,781

Liabilities

Deposits
Noninterest-Bearing	$	1,190,942	$	1,310,204	$	1,412,406
Interest-Bearing	4,450,004		4,253,466		3,778,317
Total Deposits	5,640,946		5,563,670		5,190,723

Securities Sold Under Agreements to Repurchase	21,529		18,445		23,245
Bank Term Funding Program	—		—		300,009
Federal Home Loan Bank Borrowings	367,202		305,208		214,184
Subordinated Debt	99,818		99,875		100,048
Subordinated Debt - Trust Preferred Securities	5,000		5,000		5,000
Accrued Interest Payable	3,752		4,517		11,188
Other Liabilities	50,878		42,644		4,018

Total Liabilities	6,189,125		6,039,359		5,884,415

Shareholders' Equity

Preferred Stock	71,930		71,930		71,930
Common Stock	25,520		25,502		25,344
Additional Paid-In Capital	398,237		397,851		396,121
Retained Earnings	249,981		237,031		205,207
Accumulated Other Comprehensive Loss	(46,144)		(67,784)		(94,236)

Total Shareholders' Equity	699,524		664,530		604,366

Total Liabilities and Shareholders' Equity	$	6,888,649	$	6,703,889	$	6,488,781


Business First Bancshares, Inc.
Consolidated Statements of Income
(Unaudited)

	Three Months Ended						Nine Months Ended
(Dollars in thousands)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023

Interest Income:
Interest and Fees on Loans	$	93,307	$	90,604	$	84,575	$	269,858	$	237,566
Interest and Dividends on Securities	6,417		5,933		5,053		17,949		14,932
Interest on Federal Funds Sold and Due From Banks	3,017		3,333		3,694		10,815		6,164
Total Interest Income	102,741		99,870		93,322		298,622		258,662

Interest Expense:
Interest on Deposits	41,303		40,900		30,110		120,232		72,718
Interest on Borrowings	5,324		4,961		7,918		16,736		24,575
Total Interest Expense	46,627		45,861		38,028		136,968		97,293

Net Interest Income	56,114		54,009		55,294		161,654		161,369

Provision for Credit Losses	1,665		1,310		604		4,161		4,364

Net Interest Income After Provision for Credit Losses	54,449		52,699		54,690		157,493		157,005

Other Income:
Service Charges on Deposit Accounts	2,723		2,537		2,540		7,699		7,234
Loss on Sales of Securities	(13)		—		—		(14)		(62)
Gain on Sales of Loans	122		2,460		321		2,721		1,426
Other Income	7,942		7,179		7,022		21,930		21,631
Total Other Income	10,774		12,176		9,883		32,336		30,229

Other Expenses:
Salaries and Employee Benefits	24,877		25,523		22,487		75,816		68,002
Occupancy and Equipment Expense	5,828		5,717		5,445		16,902		15,558
Merger and Conversion-Related Expense	319		409		2		1,068		173
Other Expenses	11,426		11,461		10,673		34,296		33,255
Total Other Expenses	42,450		43,110		38,607		128,082		116,988

Income Before Income Taxes	22,773		21,765		25,966		61,747		70,246

Provision for Income Taxes	4,930		4,559		5,511		13,128		15,027

Net Income	17,843		17,206		20,455		48,619		55,219

Preferred Stock Dividends	1,351		1,350		1,351		4,051		4,051

Net Income Available to Common Shareholders	$	16,492	$	15,856	$	19,104	$	44,568	$	51,168


Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)

	Three Months Ended
	September 30, 2024						June 30, 2024						September 30, 2023
(Dollars in thousands)	Average Outstanding Balance		Interest Earned/Interest Paid		Average Yield/Rate		Average Outstanding Balance		Interest Earned/Interest Paid		Average Yield/Rate		Average Outstanding Balance		Interest Earned/Interest Paid		Average Yield/Rate

Assets
Interest Earning Assets:
Total Loans	$	5,212,948	$	93,307	7.12	%	$	5,153,642	$	90,604	7.07	%	$	4,906,917	$	84,575	6.84	%
Securities	924,012		6,417		2.76	%	891,384		5,933		2.68	%	885,792		5,053		2.26	%
Interest-Bearing Deposit in Other Banks	227,035		3,017		5.29	%	246,590		3,333		5.44	%	278,420		3,694		5.26	%
Total Interest Earning Assets	6,363,995		102,741		6.42	%	6,291,616		99,870		6.38	%	6,071,129		93,322		6.10	%
Allowance for Loan Losses	(41,554)						(41,450)						(42,120)
Noninterest- Earning Assets	466,203						461,007						445,926
Total Assets	$	6,788,644	$	102,741			$	6,711,173	$	99,870			$	6,474,935	$	93,322

Liabilities and Shareholders' Equity

Interest-Bearing Liabilities:
Interest-Bearing Deposits	$	4,308,780	$	41,303	3.81	%	$	4,268,207	$	40,900	3.85	%	$	3,703,682	$	30,110	3.23	%
Subordinated Debt	99,854		1,353		5.39	%	99,913		1,354		5.45	%	100,400		1,363		5.39	%
Subordinated Debt - Trust Preferred Securities	5,000		114		9.07	%	5,000		113		9.09	%	5,000		111		8.81	%
Bank Term Funding Program	—		—		—	%	—		—		—	%	300,000		3,422		4.53	%
Advances from Federal Home Loan Bank (FHLB)	347,476		3,723		4.26	%	324,691		3,372		4.18	%	284,930		2,875		4.00	%
Other Borrowings	20,971		134		2.54	%	19,164		122		2.56	%	23,542		147		2.48	%
Total Interest-Bearing Liabilities	$	4,782,081	$	46,627	3.88	%	$	4,716,975	$	45,861	3.91	%	$	4,417,554	$	38,028	3.42	%

Noninterest-Bearing Liabilities:
Noninterest-Bearing Deposits	$	1,269,282					$	1,297,085					$	1,399,293
Other Liabilities	55,333						41,999						50,947
Total Noninterest-Bearing Liabilities	1,324,615						1,339,084						1,450,240
Shareholders' Equity:
Common Shareholders' Equity	610,018						583,184						535,211
Preferred Equity	71,930						71,930						71,930
Total Shareholders' Equity	681,948						655,114						607,141
Total Liabilities and Shareholders' Equity	$	6,788,644					$	6,711,173					$	6,474,935

Net Interest Spread					2.54	%					2.47	%					2.68	%
Net Interest Income			$	56,114					$	54,009					$	55,294
Net Interest Margin					3.51	%					3.45	%					3.61	%

Overall Cost of Funds					3.07	%					3.07	%					2.59	%
Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention.


Business First Bancshares, Inc.
Consolidated Net Interest Margin
(Unaudited)

	Six Months Ended
(Dollars in thousands)	September 30, 2024						September 30, 2023
	Average Outstanding Balance		Interest Earned/Interest Paid		Average Yield/Rate		Average Outstanding Balance		Interest Earned/Interest Paid		Average Yield/Rate
Assets

Interest Earning Assets:
Total Loans	$	5,131,474	$	269,858	7.02	%	$	4,829,537	$	237,566	6.58	%
Securities	901,525		17,949		2.66	%	909,901		14,932		2.19	%
Interest-Bearing Deposit in Other Banks	267,815		10,815		5.39	%	150,995		6,164		5.46	%
Total Interest Earning Assets	6,300,814		298,622		6.33	%	5,890,433		258,662		5.87	%
Allowance for Loan Losses	(41,178)						(41,888)
Noninterest- Earning Assets	463,080						442,341
Total Assets	$	6,722,716	$	298,622			$	6,290,886	$	258,662


Liabilities and Shareholders' Equity

Interest-Bearing Liabilities:
Interest-Bearing Deposits	$	4,216,866	$	120,232	3.81	%	$	3,482,797	$	72,718	2.79	%
Subordinated Debt	99,913		4,063		5.43	%	106,555		4,003		5.02	%
Subordinated Debt - Trust Preferred Securities	5,000		340		9.08	%	5,000		317		8.48	%
Bank Term Funding Program	86,496		2,788		4.31	%	238,274		8,111		4.55	%
Advances from Federal Home Loan Bank (FHLB)	298,735		9,189		4.11	%	368,542		11,755		4.26	%
Other Borrowings	18,758		356		2.54	%	22,177		389		2.35	%
Total Interest-Bearing Liabilities	$	4,725,768	$	136,968	3.87	%	$	4,223,345	$	97,293	3.08	%

Noninterest-Bearing Liabilities:
Noninterest-Bearing Deposits	$	1,283,035					$	1,427,821
Other Liabilities	51,629						41,392
Total Noninterest-Bearing Liabilities	1,334,664						1,469,213
Shareholders' Equity:
Common Shareholders' Equity	590,354						526,398
Preferred Equity	71,930						71,930
Total Shareholders' Equity	662,284						598,328
Total Liabilities and Shareholders' Equity	$	6,722,716					$	6,290,886

Net Interest Spread					2.46	%					2.79	%
Net Interest Income			$	161,654					$	161,369
Net Interest Margin					3.43	%					3.66	%

Overall Cost of Funds					3.04	%					2.30	%

Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention.


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)

	Three Months Ended						Nine Months Ended
(Dollars in thousands, except per share data)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023

Interest Income:
Interest income	$	102,741	$	99,870	$	93,322	$	298,622	$	258,662
Core interest income	102,741		99,870		93,322		298,622		258,662
Interest Expense:
Interest expense	46,627		45,861		38,028		136,968		97,293
Core interest expense	46,627		45,861		38,028		136,968		97,293
Provision for Credit Losses: (b)
Provision for credit losses	1,665		1,310		604		4,161		4,364
Core provision expense	1,665		1,310		604		4,161		4,364
Other Income:
Other income	10,774		12,176		9,883		32,336		30,229
Gain on former bank premises and equipment	—		—		—		(50)		—
Losses on sale of securities	13		—		—		14		62
Gain on sale of branch	—		—		(932)		—		(932)
Gain on extinguishment of debt	—		—		(517)		—		(1,458)
Core other income	10,787		12,176		8,434		32,300		27,901
Other Expense:
Other expense	42,450		43,110		38,607		128,082		116,988
Acquisition-related expenses (2)	(319)		(419)		(2)		(1,453)		(173)
Core conversion expenses	(511)		—		—		(511)		—
Core other expense	41,620		42,691		38,605		126,118		116,815
Pre-Tax Income: (a)
Pre-tax income	22,773		21,765		25,966		61,747		70,246
Gain on former bank premises and equipment	—		—		—		(50)		—
Losses on sale of securities	13		—		—		14		62
Gain on sale of branch	—		—		(932)				(932)
Gain on extinguishment of debt	—		—		(517)		—		(1,458)
Acquisition-related expenses (2)	319		419		2		1,453		173
Core conversion expenses	511		—		—		511		—
Core pre-tax income	23,616		22,184		24,519		63,675		68,091
Provision for Income Taxes: (1)
Provision for income taxes	4,930		4,559		5,511		13,128		15,027
Tax on losses on former bank premises and equipment	—		—		—		(11)		—
Tax on losses on sale of securities	3		—		—		3		13
Tax on gain on sale of branch	—		—		(197)		—		(197)
Gain on extinguishment of debt	—		—		(109)		—		(308)
Tax on acquisition-related expenses (2)	—		2		—		91		20


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)

	Three Months Ended						Nine Months Ended
(Dollars in thousands, except per share data)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Tax on core conversion expenses	108		—		—		108		—
Core provision for income taxes	5,041		4,561		5,205		13,319		14,555

Preferred Dividends:
Preferred dividends	1,351		1,350		1,351		4,051		4,051
Core preferred dividends	1,351		1,350		1,351		4,051		4,051
Net Income Available to Common Shareholders:
Net income available to common shareholders	16,492		15,856		19,104		44,568		51,168
Losses on former bank premises and equipment, net of tax	—		—		—		(39)		—
Losses on sale of securities, net of tax	10		—		—		11		49
Gain on sale of branch			—		(735)				(735)
Gain on extinguishment of debt, net of tax	—		—		(408)		—		(1,150)
Acquisition-related expenses (2), net of tax	319		417		2		1,362		153
Core conversion expenses, net of tax	403		—		—		403		—
Core net income available to common shareholders	$	17,224	$	16,273	$	17,963	$	46,305	$	49,485
Pre-tax, pre-provision earnings available to common shareholders (a+b)	$	24,438	$	23,075	$	26,570	$	65,908	$	74,610
Losses on former bank premises and equipment	—		—		—		(50)		—
Loss on sale of securities	13		—		—		14		62


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)

	Three Months Ended						Nine Months Ended
(Dollars in thousands, except per share data)	September 30, 2024		June 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Gain on sale of branch			—		(932)				(932)
Gain on extinguishment of debt	—		—		(517)		—		(1,458)
Acquisition-related expenses (2)	319		419		2		1,453		173
Occupancy and bank premises - storm repair	511		—		—		511		—
Core pre-tax, pre-provision earnings	$	25,281	$	23,494	$	25,123	$	67,836	$	72,455

Average Diluted Common Shares Outstanding	25,440,247		23,395,614		25,288,660		25,421,746		25,281,908

Diluted Earnings Per Common Share:
Diluted earnings per common share	$	0.65	$	0.62	$	0.76	$	1.75	$	2.02
Losses on former bank premises and equipment, net of tax	—		—		—		—		—
Loss on sale of securities, net of tax	—		—		—		—		—
Gain on sale of branch, net of tax	—		—		(0.03)		—		(0.03)
Gain on extinguishment of debt, net of tax	—		—		(0.02)		—		(0.04)
Acquisition-related expenses (2), net of tax	0.01		0.02		—		0.05		0.01
Core conversion expenses,net of tax	0.02		—		—		0.02		—
Core diluted earnings per common share	$	0.68	$	0.64	$	0.71	$	1.82	$	1.96

Pre-tax, pre-provision profit diluted earnings per common share	$	0.96	$	0.91	$	1.05	$	2.59	$	2.95
Losses on former bank premises and equipment	—		—		—		—		—
Loss on sale of securities	—		—		—		—		—
Gain on sale of branch	—		—		(0.04)		—		(0.04)
Gain on extinguishment of debt	—		—		(0.02)		—		(0.06)
Acquisition-related expenses (2)	0.01		0.02		—		0.06		0.01
Core converison expenses	0.02		—		—		0.02		—
Core pre-tax, pre-provision diluted earnings per common share	$	0.99	$	0.93	$	0.99	$	2.67	$	2.86

(1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2024 and 2023. These rates approximated the marginal tax rates.
(2) Includes merger and conversion-related expenses and salary and employee benefits.


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)


(Dollars in thousands, except per share data)	September 30, 2024			June 30, 2024			September 30, 2023

Total Shareholders' (Common) Equity:
Total shareholders' equity	$	699,524		$	664,530		$	604,366
Preferred stock	(71,930)			(71,930)			(71,930)
Total common shareholders' equity	627,594			592,600			532,436
Goodwill	(91,527)			(91,527)			(88,391)
Core deposit and customer intangible	(10,326)			(10,849)			(12,418)
Total tangible common equity	$	525,741		$	490,224		$	431,627


Total Assets:
Total assets	$	6,888,649		$	6,703,889		$	6,488,781
Goodwill	(91,527)			(91,527)			(88,391)
Core deposit and customer intangible	(10,326)			(10,849)			(12,418)
Total tangible assets	$	6,786,796		$	6,601,513		$	6,387,972

Common shares outstanding	25,519,501			25,502,175			25,344,168

Book value per common share	$	24.59		$	23.24		$	21.01
Tangible book value per common share	$	20.60		$	19.22		$	17.03
Common equity to total assets	9.11		%	8.84		%	8.21		%
Tangible common equity to tangible assets	7.75		%	7.43		%	6.76		%


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)

	Three Months Ended										Nine Months Ended
(Dollars in thousands, except per share data)	September 30, 2024			June 30, 2024			September 30, 2023				September 30, 2024			September 30, 2023

Total Quarterly Average Assets	$	6,788,644		$	6,711,173		$	6,474,935			$	6,722,716		$	6,290,886
Total Quarterly Average Common Equity	$	610,018		$	583,184		$	535,211			$	590,354		$	526,398

Net Income Available to Common Shareholders:
Net income available to common shareholders	$	16,492		$	15,856		$	19,104			$	44,568		$	51,168
Gain on former bank premises and equipment, net of tax	—			—			—				(39)			—
Loss on sale of securities, net of tax	10			—			—				11			49
Gain on sale of branch, net of tax	—			—			(735)				—			(735)
Gain on extinguishment of debt, net of tax	—			—			(408)				—			(1,150)
Acquisition-related expenses, net of tax	319			417			2				1,362			153
Core conversion expenses, net of tax	403			—			—				403			—
Core net income available to common shareholders	$	17,224		$	16,273		$	17,963			$	46,305		$	49,485

Return to common shareholders on average assets (annualized) (2)	0.97		%	0.95		%	1.17		%		0.89		%	1.09		%
Core return on average assets (annualized) (2)	1.01		%	0.98		%	1.10		%		0.92		%	1.05		%
Return to common shareholders on average common equity (annualized) (2)	10.76		%	10.94		%	14.16		%		10.08		%	13.00		%
Core return on average common equity (annualized) (2)	11.23		%	11.22		%	13.32		%		10.48		%	12.57		%

Interest Income:
Interest income	$	102,741		$	99,870		$	93,322			$	298,622		$	258,662
Core interest income	102,741			99,870			93,322				298,622			258,662
Interest Expense:
Interest expense	46,627			45,861			38,028				136,968			97,293
Core interest expense	46,627			45,861			38,028				136,968			97,293
Other Income:
Other income	10,774			12,176			9,883				32,336			30,229
Gain on former bank premises and equipment	—			—			—				(50)			—
Loss on sale of securities	13			—			—				14			62
Gain on sale of branch	—			—			(932)				—			(932)
Gain on extinguishment of debt	—			—			(517)			—	—			(1,458)
Core other income	10,787			12,176			8,434				32,300			27,901
Other Expense:
Other expense	42,450			43,110			38,607				128,082			116,988
Acquisition-related expenses	(319)			(419)			(2)				(1,453)			(173)


Business First Bancshares, Inc.
Non-GAAP Measures
(Unaudited)

	Three Months Ended									Nine Months Ended
(Dollars in thousands, except per share data)	September 30, 2024			June 30, 2024			September 30, 2023			September 30, 2024			September 30, 2023
Core conversion expenses	(511)			—			—			(511)			—
Core other expense	$	41,620		$	42,691		$	38,605		$	126,118		$	116,815

Efficiency Ratio:
Other expense (a)	$	42,450		$	43,110		$	38,607		$	128,082		$	116,988
Core other expense (c)	$	41,620		$	42,691		$	38,605		$	126,118		$	116,815
Net interest and other income (1) (b)	$	66,901		$	66,185		$	65,177		$	194,004		$	191,660
Core net interest and other income (1) (d)	$	66,901		$	66,185		$	63,728		$	193,954		$	189,270
Efficiency ratio (a/b)	63.45		%	65.14		%	59.23		%	66.02		%	61.04		%
Core efficiency ratio (c/d)	62.21		%	64.50		%	60.58		%	65.02		%	61.72		%

Total Average Interest-Earnings Assets	$	6,363,995		$	6,291,616		$	6,071,129		$	6,300,814		$	5,890,433

Net Interest Income:
Net interest income	$	56,114		$	54,009		$	55,294		$	161,654		$	161,369
Loan discount accretion	$	(705)		$	(1,695)		$	(2,419)		$	(3,185)		$	(7,390)
Net interest income excluding loan discount accretion	$	55,409		$	52,314		$	52,875		$	158,469		$	153,979

Net interest margin (2)	3.51		%	3.45		%	3.61		%	3.43		%	3.66		%
Net interest margin excluding loan discount accretion (2)	3.46		%	3.34		%	3.46		%	3.36		%	3.49		%
Net interest spread (2)	2.54		%	2.47		%	2.68		%	2.46		%	2.79		%
Net interest spread excluding loan discount accretion (2)	2.50		%	2.37		%	2.53		%	2.39		%	2.62		%

(1) Excludes gains/losses on sales of securities.
(2) Calculated utilizing an actual day count convention.


FOR IMMEDIATE RELEASE			Misty Albrecht
October 24, 2024			b1BANK
			225.286.7879
			Misty.Albrecht@b1BANK.com


			500 Laurel Street
			Baton Rouge, LA 70801
			Phone: 877.614.7600