Business First Bancshares, Inc. (NASDAQ: BFST), the parent company of b1BANK, reported unaudited financial results for the quarter ended September 30, 2026. The company reported net income available to common shareholders of $23.2 million, or $0.71 per diluted common share. This represents an increase of $0.4 million and $0.01 per share, respectively, compared to the linked quarter. On a non-GAAP basis, core net income available to common shareholders was $26.0 million, or $0.79 per diluted common share, an increase of $2.7 million and $0.08 per share from the linked quarter.
During the third quarter, the company’s net interest margin expanded by 13 basis points to 3.86% for the quarter ended September 30, 2026, or 12 basis points to 3.80% on a non-GAAP basis. The expansion was driven by an improvement in the book yield on loans and a reduction in the overall cost of funding, which included decreases of $65.9 million in brokered deposits and $107.8 million in borrowings. Loan balances increased by $121.4 million, or 7.23% annualized, while deposits grew by $141.2 million, or 7.74% annualized. The growth was led by the Houston, Texas and Southwest Louisiana markets.
Regarding capital and share repurchases, Business First repurchased 204,160 shares during the third quarter with a market value of $6.3 million at a weighted average price of $30.81 per share. Since the program began in October 2025, the company has repurchased a total of 630,618 common shares for $17.6 million at an average price of $27.88 per share. Common equity to total assets decreased from 10.52% to 10.39% during the quarter.
The company also announced dividend declarations by the Board of Directors. On October 22, 2026, the board declared a quarterly common dividend of $0.15 per share, payable on November 30, 2026, to shareholders of record on November 15, 2026. Additionally, the board declared a quarterly preferred dividend of $18.75 per share, based on a 7.50% annual rate, also payable on November 30, 2026, to preferred shareholders of record as of November 15, 2026.
Management noted that the third quarter marked the successful conversion of Progressive Bank’s core systems onto the company’s platform. Return on common shareholders’ average assets was 1.04% for the quarter, or 1.17% on a non-GAAP basis, while return on average equity was 9.75%, or 10.93% on a non-GAAP basis.
