Business First Bancshares to Acquire Progressive Bancorp, Bolstering Regional Presence

BATON ROUGE, La., July 07, 2025 -- Business First Bancshares, Inc. (Nasdaq: BFST), the holding company for b1BANK, today announced a definitive agreement to acquire Progressive Bancorp, Inc. ('Progressive') and its wholly-owned bank subsidiary, Progressive Bank. This strategic acquisition is set to significantly expand Business First's footprint and enhance its market share in key regional areas.

The acquisition of Progressive Bancorp, a well-established community bank, represents a pivotal move for Business First Bancshares. Progressive Bank has built a strong reputation for its customer-centric approach and deep community ties, particularly in its operational regions. This synergy is expected to create a more robust financial institution, combining b1BANK's broader capabilities with Progressive's localized expertise.

Strategic Rationale and Market Impact

This merger is driven by several strategic imperatives. Firstly, it allows Business First to deepen its presence in attractive, growing markets where Progressive Bank currently operates. This expansion is not merely about increasing branch count but about gaining access to new customer segments and leveraging Progressive's existing relationships. The combined entity will benefit from enhanced scale, which can lead to greater operational efficiencies and a more diversified loan portfolio.

From a market perspective, the banking sector continues to see consolidation as institutions seek to achieve economies of scale, improve technological capabilities, and navigate a complex regulatory environment. This acquisition aligns with the broader trend of regional banks strengthening their positions through strategic M&A. The deal is expected to bolster Business First's competitive standing against larger national banks and other regional players.

Financial Implications and Synergies

While specific financial terms of the agreement were not disclosed in the initial announcement, such acquisitions typically involve a combination of cash and stock. Investors will be keen to understand the financial accretion potential, cost synergies, and integration risks associated with the deal. Business First Bancshares will likely outline these details in subsequent filings or investor calls.

Expected synergies include cost savings from redundant operations, optimized technology infrastructure, and increased revenue opportunities through cross-selling a broader range of financial products and services to Progressive's customer base. The successful integration of Progressive Bank's operations into b1BANK will be crucial for realizing these anticipated benefits. Management's ability to retain key personnel and customers from Progressive will also be a significant factor in the long-term success of the merger.

Investment Insights for Shareholders

For current shareholders of Business First Bancshares (BFST), this acquisition signals a proactive growth strategy. The deal could lead to increased earnings per share (EPS) in the long run, assuming successful integration and realization of synergies. Investors should monitor the integration process closely, paying attention to any updates on cost savings, revenue growth, and potential one-time integration costs.

Prospective investors might view this as an opportune moment to consider BFST, given its expansion trajectory. However, it's essential to assess the valuation of the combined entity and the potential dilution from any stock component of the deal. The banking sector's performance is often tied to interest rate environments and economic growth, so these broader macroeconomic factors should also be considered.

For shareholders of Progressive Bancorp, Inc. (PGR), this acquisition represents a liquidity event and a premium for their shares, assuming the deal is structured favorably. The transaction provides an exit strategy and an opportunity to potentially reinvest in the combined entity or other opportunities.

Looking Ahead

The acquisition is subject to customary closing conditions, including regulatory approvals and shareholder approval from Progressive Bancorp, Inc. The transaction is anticipated to close in the latter half of 2025. Upon completion, the combined institution is expected to be a stronger, more diversified regional bank, better positioned to serve its communities and deliver value to its shareholders. This strategic move underscores Business First Bancshares' commitment to growth and its vision for expanding its market leadership.