Business First Bancshares Q2 profit rises on higher loan yields
Business First Bancshares Q2 profit rises on higher loan yields
Overview
US regional bank's Q2 net income and EPS rose slightly from prior quarter
Company completed American Planning Corporation acquisition, expanding advisory platform
Repurchased $4.8 mln in shares during Q2 as part of stock buyback program
Outlook
Business First expects a strong second half of the year driven by recent developments
Company sees opportunities from Meta's $40 bln investment in Northeast Louisiana and Houston pipeline growth
Result Drivers
MARGIN EXPANSION - Net interest margin rose 8 bps to 3.73%, driven by improved loan yields and deposit cost management
ASSET QUALITY - Nonperforming loan and asset ratios declined, reflecting resolution of previously identified commercial real estate and business loans
LOAN PORTFOLIO CHANGES - Organic loan production was offset by sale of $100.3 mln lower-yielding acquired loans and resolution of a $21 mln nonperforming loan
Company press release: ID:nGNXbzySW5
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 EPS |
| $0.7 |
|
Q2 Adjusted Net Income |
| $23.3 mln |
|
Q2 Net Interest Income |
| $77.8 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy"
Wall Street's median 12-month price target for Business First Bancshares Inc is $32.50, about 6.6% above its July 22 closing price of $30.49
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Reuters Recommended Reads
July 21 - Hancock Whitney Q2 profit rises as net interest income grows
July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin
July 21 - Bank First's Q2 net interest income rises, boosted by Centre acquisition
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Recent news on Business First Bancshares
See all newsBusiness First Bancshares Inc reports results for the quarter ended June 30 - Earnings Summary
Business First Bancshares Q2 profit rises on higher loan yields
Brief: Business First Bancshares Q2 EPS USD 0.7
Business First Bancshares Inc expected to post earnings of 70 cents a share - Earnings Preview
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