Business First Bancshares has recently released its 10-K report, providing a comprehensive overview of its financial performance and operations for the year ended December 31, 2024. Business First Bancshares, Inc. is the bank holding company for b1BANK, offering a wide range of banking products and services primarily in Louisiana and Texas. As of December 31, 2024, the company had total assets of $7.9 billion, total loans of $6.0 billion, total deposits of $6.5 billion, and total shareholders’ equity of $799.5 million. The company operates through one reportable operating segment, community banking, and generates most of its revenues from interest income on loans, customer service and loan fees, and interest income from securities.
In the "Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations" section of the 10-K report, Business First Bancshares provided an in-depth analysis of its financial performance and key transactions contributing to its growth. Notably, the company participated in the Bank Term Funding Program, with outstanding debt of $300.0 million at December 31, 2023, repaid in full by March 22, 2024. Additionally, it opened two new lines of credit for additional contingent liquidity through the Federal Reserve discount window, totaling $907.7 million and $1.0 billion as of December 31, 2024 and 2023, respectively. Business First Bancshares also completed the sale of the Leesville banking center and the acquisitions of Waterstone and Oakwood.
The financial highlights for the year ended December 31, 2024, include total assets of $7.9 billion, a $1.3 billion increase from December 31, 2023, and total loans held for investment of $6.0 billion, a $988.6 million increase from December 31, 2023. Net income available to common shareholders was $59.7 million, a $5.9 million decrease from the year ended December 31, 2023. The company reported net interest income of $227.4 million, a $12.3 million increase from the year ended December 31, 2023. The allowance for credit losses was 0.98% of total loans held for investment, compared to 0.88% as of December 31, 2023, and a ratio of nonperforming loans to total loans held for investment of 0.42%, compared to 0.34% as of December 31, 2023.
In terms of return to common shareholders, the company reported a return on average assets of 0.86% compared to 1.04% for the year ended December 31, 2023, and a return on average common equity of 9.54% compared to 12.36% for the year ended December 31, 2023. Additionally, Business First Bancshares reported capital ratios, including Tier 1 Leverage, Common Equity Tier 1, Tier 1 Risk-based, and Total Risk-based Capital, of 9.53%, 9.44%, 10.56%, and 12.75%, respectively, compared to the previous year's ratios.
The company's net interest income for the year ended December 31, 2024, totaled $227.4 million, with a net interest margin of 3.48% and a net interest spread of 2.55%. The average yield on the loan portfolio was 7.03%, compared to 6.65% for the year ended December 31, 2023, and the average yield on total interest-earning assets was 6.35%, compared to 5.95% for the year ended December 31, 2023. Overall cost of funds increased by 58 basis points compared to the previous year.
Following these announcements, the company's shares moved 0.3%, and are now trading at a price of $25.15. If you want to know more, read the company's complete 10-K report here.
