Business First Bancshares, Inc. (BFST) stock surged 6.49% in pre-market trading on Friday after the bank holding company reported robust fourth quarter 2024 results and provided an upbeat outlook for 2025. The impressive performance was driven by solid growth in loans and deposits, a wider net interest margin, and expanding fee income sources.

For Q4 2024, the company posted non-GAAP core net income of $19.5 million or $0.66 per share. Total loans held for investment grew 58% annualized to $761.3 million, led by strength in commercial and industrial (C&I) lending and residential mortgages. Deposit growth of 61.4% annualized to $870.4 million also outpaced loan growth, supported by higher money market and non-interest bearing deposit balances.

Notably, BFST expanded its net interest margin (NIM) by 10 basis points quarter-over-quarter to 3.61% GAAP and 3.56% non-GAAP. This margin expansion resulted from the bank's ability to effectively lower deposit costs by 29 basis points linked-quarter as the impact of lower interest rates fed through. BFST's fee income sources like swap revenues and SBA lending income also contributed positively.

Looking ahead to 2025, management guided 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 of $40-$50 million for the year.