Business First Bancshares Exceeds Expectations in Q3 2026, Poised for Continued Growth
Business First Bancshares has reported a strong third quarter 2026, exceeding expectations with impressive growth in loans and deposits. According to the company's Chairman and CEO, Jude Melville, the quarter saw loan growth of over 7% annualized, led by the Houston pipeline, while deposits also grew at a similar pace.
The company's margin expanded another 12 basis points on a core basis, and expenses stayed in check, resulting in its strongest core profitability in several years. Notably, Business First Bancshares continued to buy back stock while still growing tangible book value, demonstrating confidence in the company's financial health.
While credit performance was slightly slower than expected, with non-performing loans moving down only modestly this quarter, the company remains optimistic about future progress. In fact, Melville highlighted that the uptick in NCOs (non-cash charges) were primarily related to loans already discussed and fully reserved for.
A significant achievement was the completion of the Progressive conversion in August, positioning Business First Bancshares to capitalize on investment activity in North Louisiana. The region is now home to major investments from Meta and Amazon, with opportunities also present in Houston, Dallas, and Southwest Louisiana, where SpaceX's $100 billion investment is underway.
Additionally, the company has expanded its financial services group through the acquisition of American Planning Corp, serving over 200 banks with revenue growth exceeding 20% annualized. Business First Bancshares aims to pursue these opportunities with discipline, expecting continued improvement in core profitability into 2027.
Melville expressed gratitude for the time and attention of investors and analysts, emphasizing the company's commitment to executing its strategy effectively. With a solid third quarter performance under their belt, Business First Bancshares is poised for sustained growth as it capitalizes on emerging opportunities across its footprint.
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