Business First Bancshares Faces Investor Uncertainty Over IT Control Weakness

Business First Bancshares (BFST) has disclosed a new risk, in the Accounting & Financial Operations category.

Business First Bancshares faces a significant risk due to a material weakness identified in their internal control over financial reporting, specifically related to IT general controls around change management and segregation of duties. The deficiencies, stemming from outsourced IT systems, allow multiple users to both install changes and develop source code, potentially leading to material misstatements in financial statements. If not effectively remediated, this weakness could damage the company’s reputation, affect its share price, and result in violations of securities laws or credit facility covenants. The management’s commitment to addressing these issues is crucial, but the outcome remains uncertain, posing ongoing risks to investor confidence and compliance with Nasdaq requirements.

Overall, Wall Street has a Strong Buy consensus rating on BFST stock based on 3 Buys.

To learn more about Business First Bancshares’ risk factors, click here.