Business First Bancshares, Inc.
For the period ended Jun 30, 2025. Filed Aug 5, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Aug 5, 2025
BFST$32.20-0.2%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-02.
0001624322-25-000025
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-08-05.
0001624322-25-000037
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 198 previous paragraphs and 204 current paragraphs.
137 unchanged; 52 reworded; 11 added; 8 removed; 1 previous and 4 current paragraphs rearranged.
Tables are not compared: 31 previous and 36 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (11)
Current report
•risks relating to the proposed acquisition of Progressive Bancorp, Inc. (“Progressive”) including, without limitation: the timing of consummation of the proposed merger; the risk that any condition to closing of the proposed merger may not be satisfied or waived; the risk that the merger may not be completed at all; the diversion of management time on issues related to the proposed merger; unexpected transaction costs, including the costs of integrating operations; the risks that the businesses will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; the potential failure to fully or timely realize expected revenues and revenue synergies, including as the result of revenues following the merger being lower than expected; the risk of deposit and customer attrition; any changes in deposit mix; unexpected operating and other costs, which may differ or change from expectation; the risk of customer and employee loss and business disruptions, including, without limitation, as the result of difficulties in maintaining relationships with employees; increased competitive pressures on solicitations of customers by competitors; as well as difficulties and risks inherent with entering new markets;
Current report
Acquisition of Progressive Bancorp, Inc. ("Progressive")
Current report
On July 7, 2025, we entered into a definitive agreement with Progressive providing for us to acquire Progressive and its wholly-owned bank subsidiary, Progressive Bank. Progressive had approximately $752.2 million of total assets, $673.0 million of deposits and $582.9 million of loans as of March 31, 2025.
Current report
•Total assetsof $7.9 billion, a $91.2 million, or 1.2%, increase from December 31, 2024.
Current report
•Total deposits of $6.4 billion, a $91.7 million, or 1.4%, decrease from December 31, 2024.
Current report
For the six months ended June 30, 2025, net income available to common shareholders was $39.9 million, or $1.36 per basic common share and $1.35 per diluted common share, compared to net income of $28.1 million, or $1.11 per basic common share and $1.10 per diluted common share, for the six months ended June 30, 2024. Return on average assets, on an annualized basis, increased to 1.04% for the six months ended June 30, 2025, from 0.84% for the six months ended June 30, 2024. Return on average equity, on an annualized basis, increased to 10.68% for the six months ended June 30, 2025, as compared to 9.73% for the six months ended June 30, 2024.
Current report
For the six months ended June 30, 2025, net interest income totaled $133.0 million, and net interest margin and net interest spread were 3.68% and 2.90%, respectively, compared to $105.5 million, 3.39%, and 2.42%, respectively, for the six months ended June 30, 2024. The average yield on the loan portfolio was 6.98% for the six months ended June 30, 2025, compared to 6.97% for the six months ended June 30, 2024, and the average yield on total interest-earning assets was 6.33% for the six months ended June 30, 2025, compared to 6.28% for the six months ended June 30, 2024. For the six months ended June 30, 2025, overall cost of funds (which includes noninterest-bearing deposits) decreased 23 basis points compared to the six months ended June 30, 2024.
Current report
Total noninterest income increased $2.2 million, or 18.4%, from the three months ended June 30, 2024. The increase is primarily due to the gain of $3.4 million from the sale of our Kaplan banking center, offset with lower gains of the sales of loans of $1.7 million compared to the three months ended June 30, 2024.
Current report
For the six months ended June 30, 2025, income tax expense totaled $11.2 million, an increase of $3.0 million, or 36.6%, compared to $8.2 million for the same period in 2024. Our effective tax rates for the six months ended June 30, 2025, and 2024 were 20.8% and 21.0%, respectively.
Current report
Our total assets increased $91.2 million, or 1.2%, from December 31, 2024, to June 30, 2025, primarily due to the increases in our mortgage-backed investment portfolio, unrealized gains in our investment portfolio, and increases in our loan portfolio.
Current report
Commercial loans increased $92.3 million, or 4.9%, to $2.0 billion as of June 30, 2025, from $1.9 billion as of December 31, 2024.
Removed paragraphs (8)
Previous report
Bank Term Funding Program (“BTFP”)
Previous report
On March 12, 2023, the Federal Reserve developed the BTFP, which offered loans to banks with a term of up to one year. The loans are secured by pledging the banks’ U.S. treasuries, agency securities, agency mortgage-backed securities, and any other qualifying assets. These pledged securities were valued at par for collateral purposes. The Bank participated in the BTFP and had outstanding debt of $300.0 million at December 31, 2023. The loans bore a fixed rate of 4.38% and matured on March 22, 2024, at which time we repaid them in full.
Previous report
•Total assetsof $7.8 billion, a $72.4 million, or 0.9%, decrease from December 31, 2024.
Previous report
•Total deposits of $6.5 billion, a $53.2 million, or 0.8%, decrease from December 31, 2024.
Previous report
Our total assets decreased $72.4 million, or 0.9%, from December 31, 2024, to March 31, 2025, primarily due to the decrease in total deposits, which reduced the cash available for fed funds sold.
Previous report
Commercial loans decreased $6.5 million, or 0.3%, remaining at $1.9 billion as of March 31, 2025 and December 31, 2024.
Previous report
Bank Term Funding Program (“BTFP”)
Previous report
On March 12, 2023, the Federal Reserve launched the BTFP, which offered loans to banks with a term of up to one year. The loans were secured by pledging the banks’ U.S. treasuries, agency securities, agency mortgage-backed securities, and any other qualifying assets. These pledged securities were valued at par for collateral purposes. The Bank participated in the BTFP and had outstanding debt of $300.0 million at December 31, 2023. The loans bore a fixed rate of 4.38% and matured on March 22, 2024, at which time we repaid them in full.
Reworded paragraphs (52)
Previous wording
The following discussion and analysis focuses on significant changes in the financial condition of Business First and its subsidiaries from December 31, 2024 to March 31, 2025, and its results of operations for the three months ended March 31, 2025. This discussion and analysis is intended to highlight and supplement information presented elsewhere in this reportand should be read in conjunction with (i) the accompanying unaudited consolidated financial statements and the notes thereto (the “Notes”) and (ii) our Annual Report on Form 10-K for the year ended December 31, 2024, including the audited consolidated financial statements and notes thereto, management’s discussion and analysis, and the risk factor disclosures contained therein. This discussion and analysis contains forward-looking statements that are subject to certain risks and uncertainties and are based on certain assumptions that Business First believes are reasonable but may prove to be inaccurate. Certain risks, uncertainties and other factors, including those set forth under “Forward-Looking Statements,” “Risk Factors” and elsewhere in this report, may cause actual results to differ materially from those projected results discussed in the forward-looking statements appearing in this discussion and analysis. Business First assumes no obligation to update any of these forward-looking statements.
Current wording
The following discussion and analysis focuses on significant changes in the financial condition of Business First and its subsidiaries from December 31, 2024 to June 30, 2025, and its results of operations for the three and six months ended June 30, 2025. This discussion and analysis is intended to highlight and supplement information presented elsewhere in this reportand should be read in conjunction with (i) the accompanying unaudited consolidated financial statements and the notes thereto (the “Notes”) and (ii) our Annual Report on Form 10-K for the year ended December 31, 2024, including the audited consolidated financial statements and notes thereto, management’s discussion and analysis, and the risk factor disclosures contained therein. This discussion and analysis contains forward-looking statements that are subject to certain risks and uncertainties and are based on certain assumptions that Business First believes are reasonable but may prove to be inaccurate. Certain risks, uncertainties and other factors, including those set forth under “Forward-Looking Statements,” “Risk Factors” and elsewhere in this report, may cause actual results to differ materially from those projected results discussed in the forward-looking statements appearing in this discussion and analysis. Business First assumes no obligation to update any of these forward-looking statements.
Previous wording
We are a registered financial holding company headquartered in Baton Rouge, Louisiana. Through our wholly-owned subsidiary, b1BANK, a Louisiana state chartered bank, we provide a broad range of financial services tailored to meet the needs of small-to-midsized businesses and professionals. Since our inception in 2006, our priority has been and continues to be creating shareholder value through the establishment of an attractive commercial banking franchise in Louisiana and across our region. We consider our primary market to include the State of Louisiana, the Dallas/Fort Worth metroplex, and Houston. We currently operate out of banking centers and loan production offices across Louisiana and Texas. As of March 31, 2025, we had total assets of $7.8 billion, total loans of $6.0 billion, total deposits of $6.5 billion, and total shareholders’ equity of $826.3 million.
Current wording
We are a registered financial holding company headquartered in Baton Rouge, Louisiana. Through our wholly-owned subsidiary, b1BANK, a Louisiana state chartered bank, we provide a broad range of financial services tailored to meet the needs of small-to-midsized businesses and professionals. Since our inception in 2006, our priority has been and continues to be creating shareholder value through the establishment of an attractive commercial banking franchise in Louisiana and across our region. We consider our primary market to include the State of Louisiana, the Dallas/Fort Worth metroplex, and Houston. We currently operate out of banking centers and loan production offices across Louisiana and Texas. As of June 30, 2025, we had total assets of $7.9 billion, total loans of $6.0 billion, total deposits of $6.4 billion, and total shareholders’ equity of $848.4 million.
Previous wording
On April 11, 2023, the Bank opened two new lines of credit for additional contingent liquidity, totaling $1.3 billion and $907.7 billion as of March 31, 2025, and December 31, 2024, respectively, through the Federal Reserve discount window. The Bank has not yet drawn on either of the lines of credit as of the date of this report.
Current wording
On April 11, 2023, the Bank opened two new lines of credit for additional contingent liquidity, totaling $1.1 billion and $907.7 million as of June 30, 2025, and December 31, 2024, respectively, through the Federal Reserve discount window. The Bank has not yet drawn on either of the lines of credit as of the date of this report.
Previous wording
On October 1, 2024, we consummated the merger of Oakwood, the parent bank holding company for Oakwood Bank, with and into us, with us continuing as the surviving corporation pursuant to the terms of the Reorganization Agreement. Immediately following the consummation of the Oakwood acquisition, Oakwood Bank merged with and into us, with us surviving the merger. Pursuant to the terms of the Reorganization Agreement, upon consummation of the Oakwood acquisition, we issued 3,973,134 shares of our common stock to the former shareholders of Oakwood. As of September 30, 2024, Oakwood had $863.6 million in total assets, $700.2 million in loans and $741.3 million in total deposits.
Current wording
On October 1, 2024, we consummated the merger of Oakwood, the parent bank holding company for Oakwood Bank, with and into us, with us continuing as the surviving corporation pursuant to the terms the Reorganization Agreement. Immediately following the consummation of the Oakwood acquisition, Oakwood Bank merged with and into b1BANK, with b1BANK surviving the merger. Pursuant to the terms of the Reorganization Agreement, upon consummation of the Oakwood acquisition, we issued 3,973,134 shares of our common stock to the former shareholders of Oakwood. As of September 30, 2024, Oakwood reported $863.6 million in total assets, $700.2 million in loans and $741.3 million in deposits.
Previous wording
On April 4, 2025, we sold the Kaplan banking center, located in Kaplan, Louisiana, to Currency Bank headquartered in Baton Rouge, Louisiana, in accordance with the Branch Purchase and Assumption Agreement dated December 12, 2024. The sale included $51.2 million in deposits, $2.3 million in loans, and $1.4 million in fixed assets, net of depreciation. The deposit premium paid by Currency Bank as consideration was 8.00% of total deposits assumed at closing. The loans and deposits associated with the Kaplan banking center were included in the consolidated balance sheet as of March 31, 2025.
Current wording
On April 4, 2025, we sold the Kaplan banking center, located in Kaplan, Louisiana, to Currency Bank headquartered in Baton Rouge, Louisiana, in accordance with a Branch Purchase and Assumption Agreement, dated December 12, 2024. The sale included $50.7 million in deposits, $2.3 million in loans, and $1.4 million in fixed assets, net of depreciation. The total deposit premium paid by Currency Bank as consideration was 8.00% of the total deposits assumed at closing resulting in a gain on the sale of $3.4 million.
Previous wording
The financial highlights as of and for the three months ended March 31, 2025, include:
Current wording
The financial highlights as of and for the six months ended June 30, 2025, include:
Previous wording
•Total loans held for investmentof $6.0 billion, a $480,000, or 0.0%, decrease from December 31, 2024.
Current wording
•Total loans held for investmentof $6.0 billion, a $66.3 million, or 1.1%, increase from December 31, 2024.
Previous wording
•Net income available to common shareholdersof $19.2 million for the three months ended March 31, 2025, a $7.0 million, or 57.1%, increase from the three months ended March 31, 2024. The increase was largely attributable to the acquisition of Oakwood during the quarter ended December 31, 2024.
Current wording
•Net income available to common shareholdersof $39.9 million for the six months ended June 30, 2025, an $11.9 million, or 42.3%, increase from the six months ended June 30, 2024. The increase was largely attributable to the acquisition of Oakwood during the quarter ended December 31, 2024.
Previous wording
•Net interest income of $66.0 million for the three months ended March 31, 2025, an increase of $14.5 million, or 28.0%, from the three months ended March 31, 2024. The increase was largely attributable to the acquisition of Oakwood during the quarter ended December 31, 2024.
Current wording
•Net interest income of $133.0 million for the six months ended June 30, 2025, an increase of $27.5 million, or 26.0%, from the six months ended June 30, 2024. The increase was largely attributable to the acquisition of Oakwood during the quarter ended December 31, 2024.
Previous wording
•Allowance for credit losses of 1.01% of total loans held for investment, compared to 0.98% as of December 31, 2024, and a ratio of nonperforming loans to total loans held for investment of 0.69%, compared to 0.42% as of December 31, 2024.
Current wording
•Allowance for credit losses of 1.02% of total loans held for investment, compared to 0.98% as of December 31, 2024, and a ratio of nonperforming loans to total loans held for investment of 0.97%, compared to 0.42% as of December 31, 2024.
Previous wording
•Earnings per common sharefor the first three months of 2025 of $0.65 per basic and diluted common share, compared to $0.49 per basic common share and $0.48 per diluted common share for the first three months of 2024.
Current wording
•Earnings per common sharefor the first six months of 2025 of $1.36 per basic common share and $1.35 per diluted common share, compared to $1.11 per basic common share and $1.10 per diluted common share for the first six months of 2024.
Previous wording
•Return on average assetsof 1.00% over the first three months of 2025, compared to 0.74% for the first three months of 2024.
Current wording
•Return on average assetsof 1.04% over the first six months of 2025, compared to 0.84% for the first six months of 2024.
Previous wording
•Return on average common equityof 10.48% over the first three months of 2025, compared to 8.51% for the first three months of 2024.
Current wording
•Return on average common equityof 10.68% over the first six months of 2025, compared to 9.73% for the first six months of 2024.
Previous wording
•Capital ratios for Tier 1 Leverage, Common Equity Tier 1, Tier 1 Risk-based and Total Risk-based Capital of 9.70%, 9.78%, 10.90% and 13.03%, respectively, compared to 9.53%, 9.44%, 10.56% and 12.75% at December 31, 2024.
Current wording
•Capital ratios for Tier 1 Leverage, Common Equity Tier 1, Tier 1 Risk-based and Total Risk-based Capital of 9.86%, 9.88%, 10.99% and 13.07%, respectively, compared to 9.53%, 9.44%, 10.56% and 12.75% at December 31, 2024.
Previous wording
•Book value per common share of $25.51, an increase of 3.6% from $24.62 at December 31, 2024.
Current wording
•Book value per common share of $26.23, an increase of 6.5% from $24.62 at December 31, 2024.
Previous wording
Results of Operations for the Three Months Ended March 31, 2025, and 2024
Current wording
Results of Operations for the Three and Six Months Ended June 30, 2025, and 2024
Previous wording
For the three months ended March 31, 2025, net income available to common shareholders was $19.2 million, or $0.65 per basic and diluted common share, compared to net income of $12.2 million, or $0.49 per basic common share and $0.48 per diluted common share, for the three months ended March 31, 2024. Return on average assets, on an annualized basis, increased to 1.00% for the three months ended March 31, 2025, from 0.74% for the three months ended March 31, 2024. Return on average equity, on an annualized basis, increased to 10.48% for the three months ended March 31, 2025, as compared to 8.51% for the three months ended March 31, 2024.
Current wording
For the three months ended June 30, 2025, net income available to common shareholders was $20.8 million, or $0.70 per basic and diluted common share, compared to net income of $15.9 million, or $0.63 per basic common share and $0.62 diluted common share, for the three months ended June 30, 2024. Return on average assets, on an annualized basis, increased to 1.07% for the three months ended June 30, 2025, from 0.95% for the three months ended June 30, 2024. Return on average equity, on an annualized basis, decreased to 10.87% for the three months ended June 30, 2025, as compared to 10.94% for the three months ended June 30, 2024.
Previous wording
For the three months ended March 31, 2025, net interest income totaled $66.0 million, and net interest margin and net interest spread were 3.68% and 2.91%, respectively, compared to $51.5 million, 3.32%, and 2.36%, respectively, for the three months ended March 31, 2024. The average yield on the loan portfolio was 6.99% for the three months ended March 31, 2025, compared to 6.88% for the three months ended March 31, 2024, and the average yield on total interest-earning assets was 6.35% for the three months ended March 31, 2025, compared to 6.18% for the three months ended March 31, 2024. For the three months ended March 31, 2025, overall cost of funds (which includes noninterest-bearing deposits) decreased 18 basis points compared to the three months ended March 31, 2024.
Current wording
For the three months ended June 30, 2025, net interest income totaled $67.0 million, and net interest margin and net interest spread were 3.68% and 2.88%, respectively, compared to $54.0 million, 3.45%, and 2.47%, respectively, for the three months ended June 30, 2024. The average yield on the loan portfolio was 6.96% for the three months ended June 30, 2025, compared to 7.07% for the three months ended June 30, 2024, and the average yield on total interest-earning assets was 6.31% for the three months ended June 30, 2025, compared to 6.38% for the three months ended June 30, 2024. For the three months ended June 30, 2025, overall cost of funds (which includes noninterest-bearing deposits) decreased 29 basis points compared to the three months ended June 30, 2024.
Previous wording
The following table presents, for the periods indicated, an analysis of net interest income by each major category of interest-earning assets and interest-bearing liabilities, the average amounts outstanding and the interest earned or paid on such amounts. The table also sets forth the average rate earned on interest-earning assets, the average rate paid on interest-bearing liabilities, and the net interest margin on average total interest-earning assets for the same periods. Interest earned on loans that are classified as nonaccrual is not recognized in income; however, the balances are reflected in average outstanding balances for the period. For the three months ended March 31, 2025, and 2024, interest income not recognized on nonaccrual loans was not material. Any nonaccrual loans have been included in the table as loans carrying a zero yield. The average total loans reflected below are net of deferred loan fees and discounts. Acquired loans were recorded at fair value at acquisition and accrete/amortize discounts and premiums as an adjustment to yield. Averages presented in the table below, and throughout this report, are month-end averages.
Current wording
The following tables present, for the periods indicated, an analysis of net interest income by each major category of interest-earning assets and interest-bearing liabilities, the average amounts outstanding and the interest earned or paid on such amounts. The table also sets forth the average rate earned on interest-earning assets, the average rate paid on interest-bearing liabilities, and the net interest margin on average total interest-earning assets for the same periods. Interest earned on loans that are classified as nonaccrual is not recognized in income; however, the balances are reflected in average outstanding balances for the period. For the three and six months ended June 30, 2025, and 2024, interest income not recognized on nonaccrual loans was not material. Any nonaccrual loans have been included in the table as loans carrying a zero yield. The average total loans reflected below are net of deferred loan fees and discounts. Acquired loans were recorded at fair value at acquisition and accrete/amortize discounts and premiums as an adjustment to yield. Averages presented in the tables below, and throughout this report, are daily averages.
Previous wording
The following table presents information regarding the dollar amount of changes in interest income and interest expense for the periods indicated for each major component of interest-earning assets and interest-bearing liabilities and distinguishes between the changes attributable to changes in volume and changes attributable to changes in interest rates. For the purposes of this table, changes attributable to both rate and volume that cannot be segregated have been allocated to rate.
Current wording
The following tables present information regarding the dollar amount of changes in interest income and interest expense for the periods indicated for each major component of interest-earning assets and interest-bearing liabilities and distinguishes between the changes attributable to changes in volume and changes attributable to changes in interest rates. For the purposes of these tables, changes attributable to both rate and volume that cannot be segregated have been allocated to rate.
Previous wording
Our provision for credit losses is a charge to income in order to bring our allowance for credit losses to a level deemed appropriate by management. For a description of the factors taken into account by management in determining the allowance for credit losses see “—Financial Condition—Allowance for Credit Losses.” The provision for credit losses was $2.8 million for the three months ended March 31, 2025, and $1.2 million for the same period in 2024. The higher provision for the three months ended March 31, 2025, compared to the same period in 2024 relates primarily to reserves on two individual commercial lending relationships in the current quarter of $2.3 million. This increase was partially offset by changes in the composition of the loan portfolio and related reserve rates, compared to the quarter ended March 31, 2024.
Current wording
Our provision for credit losses is a charge to income in order to bring our allowance for credit losses to a level deemed appropriate by management. For a description of the factors taken into account by management in determining the allowance for credit losses see “—Financial Condition—Allowance for Credit Losses.” The provision for credit losses was $2.2 million for the three months ended June 30, 2025, and $1.3 million for the same period in 2024. For the six months ended June 30, 2025, and 2024, the provision for credit losses was $5.0 million and $2.5 million, respectively. The higher provision for the three and six months ended June 30, 2025, compared to the same period in 2024 relates primarily to deterioration in the macroeconomic forecast in the current period compared to the prior period, as well as a return to a more normalized credit environment, reflected in an increased portion of nonaccrual and past due loans, compared to the three and six months ended June 30, 2024.
Previous wording
Our primary sources of noninterest income are service charges on deposit accounts, debit card and automated teller machine (“ATM”) fee income, income from bank-owned life insurance, fees and brokerage commissions, loan sales, swap fee income, and pass-through income from other investments (small business investment company (“SBIC”) partnerships and financial technology (“Fintech”) funds).
Current wording
Our primary sources of noninterest income are service charges on deposit accounts, debit card and automated teller machine (“ATM”) fee income, income from bank-owned life insurance, fees and brokerage commissions, loan sales, swap fee income, and pass-through income from other investments (small business investment company (“SBIC”) partnerships and financial technology (“Fintech”) funds). The following tables present, for the periods indicated, the major categories of noninterest income:
Previous wording
Total noninterest income increased $3.8 million, or 40.9%, from the three months ended March 31, 2024 mainly attributable to an increase on the gain on sales of loans of $1.1 million, the gain on the extinguishment of debt related to our subordinated debt of $630,000, and the acquisition of Oakwood.
Current wording
Total noninterest income increased $6.1 million, or 28.2%, from the six months ended June 30, 2024. The increase is primarily due to the gain of $3.4 million from the sale of our Kaplan banking center, increases in our swap fee income of $1.0 million, or 201.0%, and the gain on the extinguishment of debt related to our subordinated debt of $630,000, and the acquisition of Oakwood.
Previous wording
The following table presents, for the periods indicated, the major categories of noninterest expense:
Current wording
The following tables present, for the periods indicated, the major categories of noninterest expense:
Previous wording
Total noninterest expense increased $8.1 million, or 18.9%, from the three months ended March 31, 2024, primarily attributed to the increase in salaries and employee benefits of $4.1 million, or 16.1%, an increase in occupancy and bank premises of $887,000, or 35.3%, and an increase in data processing of $657,000, or 25.5%. The increases were largely attributable to the acquisition of Oakwood.
Current wording
Total noninterest expense increased $16.2 million, or 18.9%, from the six months ended June 30, 2024, primarily attributed to the increase in salaries and employee benefits of $6.9 million, or 13.5%, an increase in occupancy of bank premises of $1.4 million, or 26.7%, and an increase in data processing of $3.3 million, or 63.9%. The increases were largely attributable to the acquisition of Oakwood and our core conversion.
Previous wording
For the three months ended March 31, 2025, income tax expense totaled $5.3 million, a increase of $1.6 million, or 45.0%, compared to $3.6 million for the same period in 2024. Our effective tax rates for the three months ended March 31, 2025, and 2024 were 20.4% and 21.1%, respectively.
Current wording
For the three months ended June 30, 2025, income tax expense totaled $5.9 million, an increase of $1.4 million, or 29.9%, compared to $4.6 million for the same period in 2024. Our effective tax rates for the three months ended June 30, 2025, and 2024 were 21.1% and 21.0%, respectively.
Previous wording
As of March 31, 2025, total loans, excluding mortgage loans held for sale, were $6.0 billion, a decrease of $480,000, compared to $6.0 billion as of December 31, 2024. Additionally, $717,000 in loans were classified as loans held for sale as of December 31, 2024, and we had none as of March 31, 2025.
Current wording
As of June 30, 2025, total loans, excluding mortgage loans held for sale, were $6.0 billion, an increase of $66.3 million, or 1.1%, compared to $6.0 billion as of December 31, 2024. Additionally, $677,000, and $717,000 in loans were classified as loans held for sale as of June 30, 2025, and December 31, 2024, respectively.
Previous wording
Total loans held for investment as a percentage of total deposits were 92.6% and 91.9% as of March 31, 2025, and December 31, 2024, respectively. Total loans held for investment as a percentage of total assets were 76.8% and 76.1% as of March 31, 2025, and December 31, 2024, respectively.
Current wording
Total loans held for investment as a percentage of total deposits were 94.2% and 91.9% as of June 30, 2025, and December 31, 2024, respectively. Total loans held for investment as a percentage of total assets were 76.1% as of both June 30, 2025, and December 31, 2024, respectively.
Previous wording
Real Estate: Commercial loans decreased $11.1 million or 0.4%, remaining at $2.5 billion as of March 31, 2025 and December 31, 2024.
Current wording
Real Estate: Commercial loans increased $50.5 million or 2.0%, remaining at $2.5 billion as of June 30, 2025 and December 31, 2024.
Previous wording
Real Estate: Construction loans decreased $36.8 million, or 5.5%, to $633.7 million as of March 31, 2025, from $670.5 million as of December 31, 2024.
Current wording
Real Estate: Construction loans decreased $70.2 million, or 10.5%, to $600.3 million as of June 30, 2025, from $670.5 million as of December 31, 2024.
Previous wording
Real Estate: Residential loans increased $49.8 million, or 5.6%, to $934.4 million as of March 31, 2025, from $884.5 million as of December 31, 2024.
Current wording
Real Estate: Residential loans decreased $4.6 million, or 0.5%, to $879.9 million as of June 30, 2025, from $884.5 million as of December 31, 2024.
Previous wording
Consumer and other loans increased $4.1 million, or 5.5%, to $78.6 million as of March 31, 2025, from $74.5 million as of December 31, 2024.
Current wording
Consumer and other loans decreased $1.7 million, or 2.3%, to $72.7 million as of June 30, 2025, from $74.5 million as of December 31, 2024.
Previous wording
We believe our conservative lending approach and focused management of nonperforming assets has resulted in sound asset quality and the timely resolution of problem assets. We had $42.8 million and $30.5 million in nonperforming assets as of March 31, 2025, and December 31, 2024, respectively. We had $41.6 million in nonperforming loans as of March 31, 2025, compared to $25.0 million as of December 31, 2024. The increase in nonperforming assets from December 31, 2024, to March 31, 2025, is primarily due to three commercial lending relationships.
Current wording
We believe our conservative lending approach and focused management of nonperforming assets has resulted in sound asset quality and the timely resolution of problem assets. We had $60.3 million and $30.5 million in nonperforming assets as of June 30, 2025, and December 31, 2024, respectively. We had $58.8 million in nonperforming loans as of June 30, 2025, compared to $25.0 million as of December 31, 2024. The increase in nonperforming assets from December 31, 2024, to June 30, 2025, is primarily due to three commercial lending relationships, making up 80.1% of the total increase.
Previous wording
As of March 31, 2025, the allowance for credit losses totaled $60.4 million, or 1.01%, of total loans held for investment. As of December 31, 2024, the allowance for credit losses totaled $58.5 million, or 0.98%, of total loans held for investment.
Current wording
As of June 30, 2025, the allowance for credit losses totaled $61.8 million, or 1.02%, of total loans held for investment. As of December 31, 2024, the allowance for credit losses totaled $58.5 million, or 0.98%, of total loans held for investment.
Previous wording
We use our securities portfolio to provide a source of liquidity, an appropriate return on funds invested, manage interest rate risk, meet collateral requirements, and meet regulatory capital requirements. As of March 31, 2025, the carrying amount of investment securities totaled $920.6 million, an increase of $27.0 million, or 3.0%, compared to $893.5 million as of December 31, 2024. The increase was primarily due to purchases and unrealized gains in the first three months of 2025. Securities represented 11.8% and 11.4% of total assets as of March 31, 2025, and December 31, 2024, respectively.
Current wording
We use our securities portfolio to provide a source of liquidity, an appropriate return on funds invested, manage interest rate risk, meet collateral requirements, and meet regulatory capital requirements. As of June 30, 2025, the carrying amount of investment securities totaled $926.5 million, an increase of $32.9 million, or 3.7%, compared to $893.5 million as of December 31, 2024. The increase was primarily due to purchases of mortgage-backed securities and net unrealized gains in the first six months of 2025. Securities represented 11.7% and 11.4% of total assets as of June 30, 2025, and December 31, 2024, respectively.
Previous wording
The contractual maturity of mortgage-backed securities, collateralized mortgage obligations and asset-backed securities is not a reliable indicator of their expected life because borrowers have the right to prepay their obligations at any time. Mortgage-backed securities and asset-backed securities are typically issued with stated principal amounts and are backed by pools of mortgage loans and other loans with varying maturities. The term of the underlying mortgages and loans may vary significantly due to the ability of a borrower to prepay. Monthly paydowns on mortgage-backed securities tend to cause the average life of the securities to be much different than the stated contractual maturity. During a period of increasing interest rates, fixed rate mortgage-backed securities do not tend to experience heavy prepayments of principal and, consequently, the average life of this security will be lengthened. If interest rates begin to fall, prepayments may increase, thereby shortening the estimated life of this security. The weighted average life of our investment portfolio was 4.67 years with an estimated effective duration of 3.76 years as of March 31, 2025.
Current wording
The contractual maturity of mortgage-backed securities, collateralized mortgage obligations and asset-backed securities is not a reliable indicator of their expected life because borrowers have the right to prepay their obligations at any time. Mortgage-backed securities and asset-backed securities are typically issued with stated principal amounts and are backed by pools of mortgage loans and other loans with varying maturities. The term of the underlying mortgages and loans may vary significantly due to the ability of a borrower to prepay. Monthly paydowns on mortgage-backed securities tend to cause the average life of the securities to be much different than the stated contractual maturity. During a period of increasing interest rates, fixed rate mortgage-backed securities do not tend to experience heavy prepayments of principal and, consequently, the average life of this security will be lengthened. If interest rates begin to fall, prepayments may increase, thereby shortening the estimated life of this security. The weighted average life of our investment portfolio was 4.54 years with an estimated effective duration of 3.64 years as of June 30, 2025.
Previous wording
As of March 31, 2025, and December 31, 2024, the Company held other equity securities of $40.9 million and $41.1 million, respectively, comprised mainly of FHLB stock, small business investment companies (“SBICs”) and financial technology (“Fintech”) fund investments.
Current wording
As of June 30, 2025, and December 31, 2024, the Company held other equity securities of $48.7 million and $41.1 million, respectively, comprised mainly of FHLB stock, small business investment companies (“SBICs”) and financial technology (“Fintech”) fund investments. The increase is mainly attributed to an increase of $5.9 million, or 28.8%, in FHLB stock.
Previous wording
Total deposits as of March 31, 2025, were $6.5 billion, an decrease of $53.2 million, or 0.8%, compared to $6.5 billion as of December 31, 2024. Total uninsured deposits were $2.7 billion, or 41.7%, of total deposits as of March 31, 2025 compared to $2.8 billion, or 43.4%, of total deposits as of December 31, 2024. Since it is not reasonably practical to provide a precise measure of uninsured deposits, the amounts are estimated and are based on the same methodologies and assumptions that are used for regulatory reporting requirements for the call report.
Current wording
Total deposits as of June 30, 2025, were $6.4 billion, a decrease of $91.7 million, or 1.4%, compared to $6.5 billion as of December 31, 2024. Total uninsured deposits were $2.7 billion, or 42.1%, of total deposits as of June 30, 2025 compared to $2.8 billion, or 43.4%, of total deposits as of December 31, 2024. Since it is not reasonably practical to provide a precise measure of uninsured deposits, the amounts are estimated and are based on the same methodologies and assumptions that are used for regulatory reporting requirements for the call report.
Previous wording
Noninterest-bearing deposits as of March 31, 2025, were $1.3 billion compared to $1.4 billion as of December 31, 2024, a decrease of $48.7 million, or 3.6%.
Current wording
Noninterest-bearing deposits as of both June 30, 2025 and December 31, 2024, were $1.4 billion, an increase of $53.7 million, or 4.0%.
Previous wording
Average deposits for the three months ended March 31, 2025, were $6.4 billion, an increase of $673.6 million, or 11.8%, over the full year average for the year ended December 31, 2024, of $5.7 billion. The increase was largely attributable to the impact of the acquisition of Oakwood on October 1, 2024. The average rate paid on total interest-bearing deposits decreased over this period from 3.73% for the year ended December 31, 2024, to 3.35% for the three months ended March 31, 2025. In addition, noninterest-bearing demand accounts served to reduce the cost of deposits to 2.70% for the three months ended March 31, 2025, compared to 2.89% for the year ended December 31, 2024.
Current wording
Average deposits for the six months ended June 30, 2025, were $6.4 billion, an increase of $641.4 million, or 11.2%, over the full year average for the year ended December 31, 2024, of $5.7 billion. The increase was largely attributable to the impact of the acquisition of Oakwood on October 1, 2024. The average rate paid on total interest-bearing deposits decreased over this period from 3.73% for the year ended December 31, 2024, to 3.33% for the six months ended June 30, 2025. In addition, noninterest-bearing demand accounts served to reduce the cost of deposits to 2.67% for the six months ended June 30, 2025, compared to 2.89% for the year ended December 31, 2024.
Showing the first 40 of 52 pairs. Open the source sections for the rest.
Rearranged current paragraphs (4)
Current report — wording carried from elsewhere
(1)Net interest spread is the average yield on interest-earning assets minus the average rate on interest-bearing liabilities.
Current report — wording carried from elsewhere
(2)Net interest margin is equal to net interest income divided by average interest-earning assets.
Current report — wording carried from elsewhere
Total noninterest expense increased $8.1 million, or 18.8%, from the three months ended June 30, 2024, primarily attributed to the increase in salaries and employee benefits of $2.8 million, or 10.9%, and an increase in data processing of $2.7 million, or 101.5%. The increases were largely attributable to the acquisition of Oakwood and our core conversion.
Current report — wording carried from elsewhere
Core Net Income. Core net income available to common shareholders, which excludes certain income and expenses, for the three months ended June 30, 2025, was $19.5 million, or $0.66 per diluted common share, compared to core net income available to common shareholders of $16.3 million, or $0.64 per diluted common share, for the three months ended June 30, 2024. Notable noncore events impacting earnings for the three months ended June 30, 2025, included a $3.4 million gain on the sale of a branch, offset by $570,000 in acquisition-related expenses and core conversion expenses of $1.0 million, compared to $419,000 in acquisition-related expenses for the same period in 2024.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
The following table presents, for the periods indicated, the major categories of noninterest income: