BancPlus Q3 Net Income Up 3.9% on Lower Interest Expenses

TL;DR

**BancPlus is quietly crushing it with lower interest costs, making it a buy despite a one-off securities loss.**

AI Summary

BancPlus Corporation reported a net income of $17.576 million for the three months ended September 30, 2025, an increase of 3.9% from $16.913 million in the same period of 2024. For the nine months ended September 30, 2025, net income surged by 25.1% to $61.333 million, up from $49.034 million in 2024. Total interest income saw a slight increase of 0.4% to $109.107 million for the three-month period, while interest expense decreased by 17.2% to $40.264 million, primarily due to lower deposit and FHLB advances interest. This led to a significant 14.7% rise in net interest income to $68.843 million for the quarter. However, noninterest income declined by 33.3% to $11.834 million, largely due to a $6.331 million net loss on the sale of securities in 2025, compared to no loss in 2024. The company's total assets slightly decreased to $7.919 billion at September 30, 2025, from $7.926 billion at December 31, 2024, while total liabilities also decreased to $7.080 billion from $7.152 billion. Shareholders' equity increased by 9.1% to $741.240 million from $679.166 million, driven by retained earnings growth and a reduction in accumulated other comprehensive loss.

Why It Matters

BancPlus's ability to significantly reduce interest expenses, particularly on deposits and FHLB advances, while maintaining stable interest income, is a critical indicator for investors in a fluctuating interest rate environment. The substantial increase in net interest income by 14.7% for the quarter demonstrates effective balance sheet management, which could signal stronger profitability going forward. However, the notable $6.331 million loss on securities sales and the planned branch sale in McComb, Mississippi, suggest strategic portfolio adjustments and potential shifts in market presence, which could impact future revenue streams and competitive positioning against regional banks.

Risk Assessment

Risk Level: medium — The company reported a significant 'Loss on sale of securities, net' of $6.331 million for the three and nine months ended September 30, 2025, which negatively impacted noninterest income. Additionally, the 'Provision for credit losses' increased from $796 thousand in Q3 2024 to $3.037 million in Q3 2025, indicating a potential rise in loan defaults or a more conservative lending outlook.

Analyst Insight

Investors should consider BancPlus's strong net interest income growth and improved efficiency in managing interest expenses as a positive sign. However, they should monitor future credit loss provisions and the impact of strategic asset sales, like the McComb branch, on long-term profitability and market share. A deeper dive into the composition of the securities portfolio and the rationale behind the sales is warranted.

Financial Highlights

revenue

$80.677M

total Assets

$7.919B

net Income

$17.576M

eps

$1.42

revenue Growth

-0.4%

Revenue Breakdown

Key Numbers

• $17.576M — Net Income (Q3 2025) (Increased 3.9% from $16.913M in Q3 2024)
• $61.333M — Net Income (YTD Sep 2025) (Increased 25.1% from $49.034M in YTD Sep 2024)
• $68.843M — Net Interest Income (Q3 2025) (Increased 14.7% from $60.008M in Q3 2024)
• $40.264M — Interest Expense (Q3 2025) (Decreased 17.2% from $48.635M in Q3 2024)
• $6.331M — Loss on Sale of Securities (Q3 2025) (Significant noninterest income reduction, compared to zero in Q3 2024)
• $3.037M — Provision for Credit Losses (Q3 2025) (Increased from $796K in Q3 2024, indicating higher risk assessment)
• $741.240M — Total Shareholders' Equity (Sep 30, 2025) (Increased 9.1% from $679.166M at Dec 31, 2024)
• $7.919B — Total Assets (Sep 30, 2025) (Slight decrease from $7.926B at Dec 31, 2024)
• 1.42 — Basic EPS (Q3 2025) (Increased from $1.36 in Q3 2024)
• 5.00 — Basic EPS (YTD Sep 2025) (Increased from $4.16 in YTD Sep 2024)

Key Players & Entities

• BANCPLUS CORP (company) — registrant
• BankPlus (company) — principal operating subsidiary
• Oakhurst Development, Inc. (company) — real estate subsidiary
• Federal Home Loan Bank (company) — source of advances
• McComb, Mississippi (location) — location of branch being sold
• FASB (regulator) — issued accounting standards updates
• $17.576 million (dollar_amount) — net income for Q3 2025
• $61.333 million (dollar_amount) — net income for nine months ended Sep 30, 2025
• $6.331 million (dollar_amount) — net loss on sale of securities
• $7.919 billion (dollar_amount) — total assets at Sep 30, 2025

FAQ

Risk Factors

• Securities Portfolio Performance [medium — financial]: The company experienced a $6.331M net loss on the sale of securities in Q3 2025, significantly impacting noninterest income. This highlights the risk associated with managing investment portfolios and potential market volatility affecting asset values.
• Credit Loss Provisions [medium — financial]: The provision for credit losses increased substantially from $796K in Q3 2024 to $3.037M in Q3 2025. This indicates a potentially higher assessment of credit risk within the loan portfolio or a more conservative provisioning strategy.
• Interest Rate Sensitivity [medium — regulatory]: While a decrease in interest expense contributed positively to net interest income in Q3 2025, the bank remains exposed to interest rate fluctuations. Changes in deposit rates and FHLB advance costs can impact profitability.
• Asset Valuation and Sales [medium — market]: The realized loss on securities sales suggests that the market value of some assets may have declined, leading to losses upon disposition. This risk is amplified in periods of market uncertainty.

Industry Context

The banking industry continues to navigate a complex environment characterized by evolving interest rate policies, increasing competition for deposits, and ongoing regulatory scrutiny. Banks are focusing on optimizing their balance sheets, managing non-interest income streams, and controlling operating expenses to maintain profitability.

Regulatory Implications

BancPlus operates under strict banking regulations. Changes in capital requirements, liquidity rules, and consumer protection laws can impact its operations and profitability. The increase in the provision for credit losses may also draw attention from regulators regarding asset quality management.

What Investors Should Do

1. Monitor the trend in noninterest income, particularly the impact of securities trading and sales.
2. Analyze the drivers behind the increased provision for credit losses.
3. Evaluate the sustainability of net interest income growth.
4. Assess the growth in shareholders' equity.

Glossary

Net Interest Income

The difference between the interest income generated by a bank and the interest paid out to its depositors and lenders. (A core measure of a bank's profitability from its lending and borrowing activities. BancPlus saw a significant increase in Q3 2025.)

Noninterest Income

Revenue generated by a bank from sources other than interest income, such as fees, service charges, and trading gains/losses. (Represents diversified income streams. BancPlus experienced a notable decline in Q3 2025 due to security sale losses.)

Provision for Credit Losses

An expense set aside by a financial institution to cover potential losses from loans that may default. (An indicator of perceived credit risk. BancPlus increased this provision significantly in Q3 2025.)

Accumulated Other Comprehensive Income (AOCI)

A component of shareholders' equity that includes unrealized gains and losses on certain investments and foreign currency translations. (A reduction in AOCI contributed to the growth in shareholders' equity for BancPlus.)

FHLB Advances

Short-term to long-term borrowings from the Federal Home Loan Banks, a source of funding for member financial institutions. (A decrease in interest expense on FHLB advances was a key factor in BancPlus's improved net interest income.)

Year-Over-Year Comparison

Compared to the prior year period, BancPlus Corporation demonstrated improved profitability in Q3 2025, with net income rising 3.9% and year-to-date net income surging 25.1%. This was largely driven by a significant 14.7% increase in net interest income, stemming from a 17.2% reduction in interest expense. However, noninterest income saw a substantial decline of 33.3% due to a notable loss on securities sales, a factor not present in the prior year. The company also increased its provision for credit losses, indicating a more cautious outlook on asset quality.

Key Financial Figures

• $1.00 — he registrant's Common Stock, par value $1.00 per share, issued and outstanding as of

Filing Documents

• ck0001118004-20250930.htm (10-Q) — 8149KB
• ck0001118004-ex31_1.htm (EX-31.1) — 18KB
• ck0001118004-ex31_2.htm (EX-31.2) — 18KB
• ck0001118004-ex32_1.htm (EX-32.1) — 10KB
• ck0001118004-ex32_2.htm (EX-32.2) — 10KB
• 0001193125-25-271680.txt ( ) — 27269KB
• ck0001118004-20250930.xsd (EX-101.SCH) — 1537KB
• ck0001118004-20250930_htm.xml (XML) — 7647KB

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION 2

Financial Statements (Unaudited)

Item 1. Financial Statements (Unaudited): 2 Consolidated Balance Sheets at September 30, 2025 (unaudited) and December 31, 2024 2 Consolidated Statements of Income for the three and nine months ended September 30, 2025 and 2024 (unaudited) 3 Consolidated Statements of Comprehensive Income for the three and nine months ended September 30, 2025 and 2024 (unaudited) 4 Consolidated Statements of Changes in Shareholders' Equity for the three and nine months ended September 30, 2025 and 2024 (unaudited) 5 Consolidated Statements of Cash Flows for the nine months ended September 30, 2025 and 2024 (unaudited) 7 Condensed Notes to the Consolidated Financial Statements (unaudited) 9

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 31 Cautionary Statement Regarding Forward-Looking Statements 31

Quantitative and Qualitative Disclosures about Market Risk

Item 3. Quantitative and Qualitative Disclosures about Market Risk 57

Controls and Procedures

Item 4. Controls and Procedures 58

– OTHER INFORMATION

PART II – OTHER INFORMATION 58

Legal Proceedings

Item 1. Legal Proceedings 58

Risk Factors

Item 1A. Risk Factors 58

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 59

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 59

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 59

Other Information

Item 5. Other Information 59

Exhibits

Item 6. Exhibits 60 SIGNATURE PAGE 61 1

– FINANC IAL INFORMATION

PART I – FINANC IAL INFORMATION

Finan cial Statements

Item 1. Finan cial Statements BancPlus Corporation and Subsidiaries Consolidated Ba lance Sheets (In Thousands, Except Share and Per Share Data) September 30, 2025 December 31, 2024 (unaudited) Assets: Cash and due from banks $ 84,171 $ 90,602 Interest bearing deposits with banks 239,950 319,037 Total cash and cash equivalents 324,121 409,639 Securities available for sale, net of allowance for credit losses of zero at September 30, 2025 and December 31, 2024 967,907 949,552 Securities held to maturity - fair value $ 36,371 - 2025; $ 41,144 - 2024 36,419 41,278 Loans held for sale 12,913 9,395 Loans 6,206,004 6,135,979 Less: Allowance for credit losses 73,592 71,913 Net loans 6,132,412 6,064,066 Premises and equipment, net 146,898 141,008 Operating lease right-of-use assets 28,159 29,545 Accrued interest receivable 36,480 33,464 Goodwill 62,772 62,772 Other assets 171,823 186,062 Total assets $ 7,919,904 $ 7,926,781 Liabilities: Deposits $ 6,811,842 $ 6,753,978 Advances from Federal Home Loan Bank and other borrowings 119,250 185,046 Subordinated debentures 74,684 133,875 Operating lease liabilities 29,975 31,425 Accrued interest payable 10,255 13,757 Other liabilities 34,860 34,281 Total liabilities 7,080,866 7,152,362 Redeemable common stock owned by the ESOP 97,798 95,253 Shareholders' equity: Senior Non-Cumulative Perpetual Preferred Stock, Series ECIP, no par value 250,000 250,000 250,000 authorized, issued and outstanding at September 30, 2025 and December 31, 2024; aggregate liquidation preference of $ 250,000 Common Stock, par value $ 1.00 per share 100,000,000 authorized; 11,762,294 and 11,694,256 issued and outstanding at September 30, 2025 and December 31, 2024, respectively 11,762 11,694 Additional paid-in capital 129,791 127,215 Retained earnings 451,160 411,186

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