Business First Bancshares, Inc. (BFST) stock surged 6.94% in pre-market trading on Friday, January 24, 2025, following the company's impressive fourth quarter 2024 earnings results and an upbeat outlook for the year 2025.

The bank holding company reported strong growth across key financial metrics in Q4 2024, including a 58% annualized increase in total loans held for investment, driven by strength in commercial and industrial (C&I) lending and residential mortgages. Total deposits also grew 61.4% annualized, outpacing loan growth and supported by higher money market and non-interest bearing deposit balances.

Notably, BFST achieved a 10 basis point expansion in its net interest margin (NIM) quarter-over-quarter, with the GAAP NIM reaching 3.61% and the non-GAAP core NIM at 3.56%. This margin expansion was driven by the company's ability to effectively lower deposit costs by 29 basis points as the impact of lower interest rates fed through.

BFST's diversified revenue streams also contributed positively, with fee income sources like swap revenues and SBA lending income showing robust growth during the quarter.

Looking ahead to 2025, management provided an upbeat outlook, guiding for mid-single-digit loan growth and continued NIM expansion, driven by expectations for sustained strong deposit growth and disciplined loan pricing. The bank also sees opportunities to further lower funding costs by reducing higher-cost borrowings.

With multiple revenue streams in place, BFST targets core non-interest income in the range of $40-$50 million for the year 2025. The company's strategic initiatives, such as diversifying its loan portfolio, improving deposit mix, maintaining strong asset quality, and developing non-interest income sources, position it well for continued growth and profitability.