Business First Bancshares to acquire Progressive Bancorp in stock deal

BATON ROUGE - Business First Bancshares, Inc. (NASDAQ:BFST), the parent company of b1BANK and a financial institution with a market capitalization of $767 million and strong financial health according to InvestingPro metrics, announced Monday it has signed a definitive agreement to acquire Progressive Bancorp, Inc. and its subsidiary Progressive Bank in a stock transaction.

The acquisition will increase Business First’s total assets to approximately $8.5 billion and total loans to over $6.6 billion. Progressive reported total assets of $752 million, deposits of $673 million, and equity capital of $65 million as of March 31, 2025. The deal comes as Business First demonstrates strong momentum, with revenue growth of 11.75% and a solid return of 30.3% over the past year, according to InvestingPro data.

Under the agreement, Business First will issue about 3,050,490 shares of common stock to Progressive shareholders, who will own approximately 9.3% of the combined company after closing. Cash will be paid for fractional shares and in-the-money stock options. Trading at a P/E ratio of 10.57 and offering a dividend yield of 2.14%, Business First shows promising value characteristics. For deeper insights into the company’s valuation and growth potential, investors can access comprehensive analysis through InvestingPro’s detailed research reports.

The transaction expands b1BANK’s presence in North Louisiana. Following the merger, b1BANK will maintain the leading deposit market share among Louisiana-based banks across the state. This expansion aligns with the bank’s growth trajectory, reflected in its impressive five-year revenue CAGR of 24%.

"This partnership combines companies with shared values, similar cultures and complementary strategies," said Jude Melville, chairman, president and CEO of Business First Bancshares, Inc.

George Cummings III, chairman and CEO of Progressive, will join both the b1BANK and Business First Bancshares boards of directors. David Hampton, president of Progressive, will become vice chairman of the North Louisiana market for b1BANK.

The boards of directors of both companies have unanimously approved the transaction, which is expected to close in early first quarter of 2026, pending regulatory and Progressive shareholder approvals.

Raymond James & Associates served as financial advisor to Business First, while Mercer Capital advised Progressive on the transaction, according to the press release statement.

In other recent news, Business First Bancshares Inc. reported strong financial results for the first quarter of 2025, exceeding earnings expectations. The company achieved earnings per share (EPS) of $0.65, surpassing the forecast of $0.61, and revenue of $79.21 million, which was higher than the anticipated $77.54 million. These results were driven by an increase in non-interest income, improved net interest income, and reduced operating expenses. Additionally, Stephens analyst Matt Olney revised the price target for Business First Bancshares to $32.00 from $34.00, maintaining an Overweight rating due to the company’s strong quarterly performance.

In governance news, Business First Bancshares announced the addition of Alejandro M. Sanchez to its Board of Directors. Sanchez, with extensive experience in financial consulting and regulatory compliance, is expected to contribute significantly to the company’s strategic vision and governance objectives. Furthermore, during the company’s recent Annual Meeting of Shareholders, all nominated directors were elected, and the compensation package for executive officers was approved. The appointment of Forvis Mazars, LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was also ratified. These developments illustrate the company’s ongoing efforts to strengthen its leadership and maintain transparency with shareholders.

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