BFST delivered a solid top-line quarter with 2.95% QoQ revenue growth and a 0.49 EPS on a GAAP basis, but profitability was pressured by margin compression and elevated near-term expenses. Management attributes the margin decline to liquidity-driven funding dynamics and higher money-market deposits, while signaling a path toward margin stabilization through deposit mix optimization and continued loan growth. The company closed two meaningful strategic moves: the Waterstone SBA services acquisition, intended to expand noninterest income and capital markets capabilities, and the Oakwood Bank acquisition in Dallas, aimed at accelerating the North Texas growth plan and diversifying the loan book with a stronger C&I focus. Management projects mid-term profitability improvements driven by balance-sheet normalization, accretive growth from Oakwood, and cost-savings from scale. The QQ1 2024 results establish a transitional phase where BFST is repositioning its funding base, expanding in Texas, and investing in IT and platform upgrades to support a cross-market growth trajectory.