Warren McDonald, the Chief Credit Officer of Business First Bancshares, Inc. (NASDAQ:BFST), recently sold 2,560 shares of the company's common stock. The sale, executed on November 7, was made at a weighted average price of $28.70 per share, amounting to a total transaction value of $73,472. Following the sale, McDonald holds 16,535 shares in the company. The transaction was carried out through multiple trades, with prices ranging from $28.50 to $29.28.
In other recent news, Business First Bancshares, Inc. reported significant growth in its third quarter of 2024. The company's GAAP net income was $16.5 million and its core net income was $17.2 million, primarily driven by growth in commercial real estate and construction loans. The company's executives also highlighted the successful expansion into Dallas and Houston.
The acquisition of Oakwood is expected to continue contributing to net loan growth, with an anticipated core margin around 3.50% by the second quarter of 2025. Core net interest margin increased by 12 basis points to 3.46%, while total loans and deposits grew by $57.3 million and $77.3 million respectively. The Oakwood transaction is projected to contribute approximately $690 million in net loans.
Despite a slight increase in non-performing loans due to a single SBA (LON:SBA) loan, non-interest income showed strength, particularly from swap fees. Executives anticipate continued NIM growth and expect cost savings from the Oakwood merger to materialize towards the end of 2025. The company maintains a focus on organic growth within current markets and is open to strategic M&A opportunities.
InvestingPro Insights
While Warren McDonald's (NYSE:MCD) recent sale of Business First Bancshares (NASDAQ:BFST) shares might raise eyebrows, a closer look at the company's performance and market position reveals a more nuanced picture. According to InvestingPro data, BFST's stock has shown remarkable strength, with a 50.18% price total return over the past year and a 40.08% return in just the last three months. This robust performance has pushed the stock to trade near its 52-week high, currently at 97.46% of that peak.
The company's financial health appears solid, with a P/E ratio of 12.64, suggesting a potentially undervalued stock compared to industry peers. Additionally, BFST boasts a dividend yield of 1.88%, with a notable dividend growth of 16.67% over the last twelve months. This aligns with an InvestingPro Tip highlighting that the company has raised its dividend for 7 consecutive years, demonstrating a commitment to shareholder returns.
Another InvestingPro Tip indicates that 5 analysts have revised their earnings upwards for the upcoming period, potentially signaling positive expectations for the company's future performance. This optimism is further supported by the company's profitability over the last twelve months and analysts' predictions of continued profitability this year.
For investors seeking a deeper understanding of BFST's potential, InvestingPro offers 11 additional tips that could provide valuable insights into the company's prospects and market position.
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