BFST - Business First Bancshares stock surges as Q2 results impress
2023-07-28 10:41:15 ET
Business First Bancshares ( NASDAQ: BFST ) stock popped 30% in Friday morning trading after the regional lender turned in Q2 earnings that easily topped the average analyst estimate, reflecting a Q/Q and Y/Y jump in deposits. The intraday swing erased all losses going back to the onset of the March banking crisis, and then some.
The strong Q2 results , featuring stability in net interest margin and lower credit costs, prompted Raymond James analyst Michael Rose to upgrade BFST to Outperform from Market Perform.
Louisiana-based Business First ( BFST ) posted Q2 EPS of $0.73, exceeding the $0.52 consensus, compared with $0.55 in the prior quarter and $0.61 in the year-earlier period.
“The period was marked by measured growth, increased ROE, stable credit quality, and increases in both linked quarter and year-over-year per share tangible book value and earnings," said President and CEO Jude Melville.
Deposits of $5.01B jumped 4.33% Q/Q and 17.38% Y/Y, reflecting $211.2M in additional brokered deposits. Non-brokered deposits decreased 0.06% Q/Q and 0.26% annualized.
Loans held for investment of $4.90B grew 1.99% from Q1 and 7.99% from Q2 2022.
Net interest income rose to $53.3M from $52.7M in Q1, thanks to loan repricing and higher yields on new originations.
"Our now constructive stance on BFST shares reflects its more measured approach to growth which is supportive of NIM/ net interest income growth moving forward where it anticipates stability to potential modest expansion in 3Q23 on a core basis," Rose wrote in a Friday note.
Q2 book value per share of $20.87 advanced from $20.77 in Q1 and from $19.73 in Q2 2022.
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Business First Bancshares stock surges as Q2 results impress