Business First Bancshares, Inc.BFST
Business First Bancshares, Inc. Debt Disclosure
Borrowings –
The Bank had outstanding advances from the FHLB of $431.2 million and $355.9 million at December 31, 2025 and 2024, respectively, consisting of:
| (Dollars in thousands) | 2025 | 2024 | |||||||||
4.38% advance due January 2025 | $ | — | $ | 55,000 | |||||||
4.88% advance due April 2025 (a) | — | 875 | |||||||||
4.89% advance due July 2025 | — | 25,000 | |||||||||
0.52% advance due October 2025 (b) | — | 1,700 | |||||||||
4.65% advance due January 2026 | 25,000 | 25,000 | |||||||||
3.62% advance due January 2026 (c) | 120,000 | — | |||||||||
4.00% advance due March 2026 | 25,000 | — | |||||||||
4.56% advance due July 2026 | 25,000 | 25,000 | |||||||||
3.91% advance due July 2026 | 25,000 | — | |||||||||
0.89% advance due November 2026 (d) | 11,200 | 23,300 | |||||||||
4.84% advance due December 2026 | 25,000 | 25,000 | |||||||||
4.78% advance due September 2027 | 25,000 | 25,000 | |||||||||
4.73% advance due March 2028 | 25,000 | 25,000 | |||||||||
4.69% advance due September 2028 | 25,000 | 25,000 | |||||||||
4.13% advance due October 2028 | 25,000 | 25,000 | |||||||||
3.92% advance due October 2030 | 25,000 | 25,000 | |||||||||
3.72% advance due October 2033 | 25,000 | 25,000 | |||||||||
3.57% advance due October 2033 (e) | 25,000 | 25,000 | |||||||||
| Total FHLB advances | $ | 431,200 | $ | 355,875 | |||||||
(a)Loan acquired during the TCBI acquisition due and paid in April 2025.
(b)Loan made in 2020 and was acquired during the Oakwood acquisition. Principal paid monthly
(c)Short term overnight advance.
(d)Principal paid monthly.
(e)Loan has put options beginning in October 2024.
These advances are collateralized by the Company’s investment in FHLB stock and a blanket lien on qualifying loans in the Bank’s loan portfolio. The blanket lien totaled approximately $2.0 billion at December 31, 2025 with unused availability for advances and letters of credit of approximately $1.2 billion.
The Company has outstanding lines of credit with several of its correspondent banks available to assist in the management of short-term liquidity. These agreements provide for interest based upon the federal funds rate on the outstanding balance. Total available lines of credit as of December 31, 2025 and 2024 were $145.0 million and $160.0 million, respectively. The Company was not in a purchased position on these lines at December 31, 2025 and 2024.
In December 2018, the Company issued subordinated notes in the amount of $25.0 million. The subordinated notes bear a fixed rate of interest at 6.75% until December 31, 2028 and a floating rate thereafter through maturity in 2033. The balance outstanding at both December 31, 2025 and 2024 was $25.0 million. The subordinated notes were issued for the purpose of paying off a long term advance and line of credit with First National Bankers Bank, for general corporate purposes and to provide Tier 2 capital. The subordinated notes are redeemable by the Company at its option beginning in 2028.
In the Pedestal acquisition, the Company assumed Pedestal’s junior subordinated debentures, which are associated with $5.0 million in trust preferred securities acquired from Pedestal. Interest on the junior subordinated debentures is accrued at an annual rate equal to the 3-month LIBOR, as determined in the indenture governing the debentures, plus 3.05%. Interest is payable quarterly. The indenture allows the Company to defer interest payments for up to 20
consecutive quarterly periods without resulting in a default. The trust preferred securities do not have a stated maturity date, however, they are subject to mandatory redemption on September 17, 2033, or upon earlier redemption. The Company has guaranteed, on a subordinated basis, distributions and other payments due on the trust preferred securities subject to the guarantee agreement and the indenture. Principal and interest payments on the junior subordinated debentures are in a superior position to the liquidation rights of holders of common stock.
On March 26, 2021, the Company issued $52.5 million in subordinated debt. This subordinated debt bears interest at a fixed rate of 4.25% through March 31, 2026 and a floating rate, based on a benchmark rate plus 354 basis points, thereafter through maturity in 2031. The subordinated notes were issued to provide additional capital support to the Bank, to support growth, to better position the Company to take advantage of strategic opportunities that may arise from time to time, repayment of existing Company borrowings, and for other general corporate purposes. During the first quarter of 2025, $7.0 million was redeemed by the Company. The Company recognized a $630,000 gain on the extinguishment of this debt during 2025. The remaining subordinated notes are redeemable by the Company at its option beginning in 2026. The balance outstanding was $45.5 million and $52.5 million at December 31, 2025 and 2024, respectively.
On April 1, 2021, the Company, through b1BANK, consummated the acquisition of SSW. Under the terms of the acquisition, the Company issued $3.9 million in subordinated debt to the former owners of SSW. This subordinated debt bears interest at a fixed rate of 4.75% through April 1, 2026 and a floating rate, based on a benchmark rate plus 442 basis points, thereafter through maturity in 2031. The subordinated notes are redeemable by the Company at its option beginning in 2026.
On March 1, 2022, the Company assumed, in connection with the TCBI acquisition, three tranches of subordinated debt with an aggregate principal balance outstanding of $26.4 million. One tranche in the amount of $10.0 million bears an adjustable interest rate, based on a benchmark rate plus 350 basis points, until maturity on April 11, 2028, and was callable beginning April 11, 2023. Another tranche in the amount of $7.5 million bears an adjustable interest rate, based on a benchmark rate plus 350 basis points, until maturity on December 13, 2028, and was callable beginning December 13, 2023. The third tranche in the amount of $8.9 million had an adjustable interest rate plus 595 basis points, based on a benchmark rate, until maturity on March 24, 2027. The $8.9 million tranche was called on May 1, 2023 by the Company and has been fully extinguished. The Company recognized a $1.5 million gain on the extinguishment of this debt during 2023. These notes carried an aggregate $603,000 and $833,000 fair value adjustment, respectively, as of December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Mar 7, 2025 | |
| 2023 | Mar 1, 2024 | |
| 2022 | Mar 2, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Mar 5, 2021 | |
| 2019 | Mar 12, 2020 | |
| 2018 | Mar 22, 2019 | |
| 2017 | Mar 21, 2018 | |
| 2016 | Mar 20, 2017 | |
| 2015 | Mar 21, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.