Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q1 2020 Earnings Presentation
29 slides from Business First Bancshares's earnings presentation, Apr 28, 2020
Slide 1: Business First Bancshares Q1 2020 Results
6 BUSINESS FIRST BANCSHARES Q1 2020 Results
Slide 2: Legal Disclosure
Legal Disclosure ‘Special Note Concerning Forward-Looking Statements This investor presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21€ of the Exchange Act made pursuant to the safe harbor provisions of the Private Securities Liti
Slide 3: COVID-19 Pandemic Response
COVID-19 Pandemic Response + Stay at home order for Loui na issued on March 22 * COVID-19 Deferral Assistance Program instituted March 25 = As of 4/19, approximately 1,000 loans with current outstanding balance totaling approximately $468 million — 84% of these loans received a 90-day principal and
Slide 4: COVID-19 Deferral Assistance Program
BFST COVID-19 Deferral Assistance Program By Segment By Market 3.4% sa 01% 5.1% 4am 244% 6.4% aio 109% 10.2% 10.0% 20.0% 113% 3% n 15.9% 10.7% [llc «sot Racteato otter Categories Shown) S13962 244% —_—(iGrecter New Oreans 3159805 A DH [Bhratai inciuces Retail CRE) w732 © 200% — orw T4147 159% [omer
Slide 5: Business Mix — March 31, 2020
BFST Business Mix — March 31, 2020 Loan Composition Deposit Composition et 14.7% 55% oe 24.4% 13.2% 28.8% see 17.8% 1.9% 3.0% 175% 17.8% 28.296 [Hliconstruction & Land $260,836 14.7% [llNon-interest Bearing $370,711 20.6% (14 Family 233,237 13.2% [now & other 321,149 17.8% [Home Equity Loans 63,507
Slide 6: Business Mix — By Market
BFST Business Mix — By Market East Baton Rouge 2006 us $303.0 Northwest LA 2006 3 289.5 337.0 Northshore 2007 1 120.7 52.4 Lafayette 2008 1 69.8 62.8 Lake Charles 2009 2 131.2 194.8 Houma 2010 1 67.7 68.5 New Orleans 2015 1 172.9 30.9 West Baton Rouge 2015 2 81.2 249.9 DFW 2017 2 264.4 58.8 Northeas
Slide 7: Commercial Real Estate Composition
BFST Commercial Real Estate Composition * Owner— Occupied CRE makes up 50.3% of total CRE lending — C&D and Total CRE concentrations of 103.4% and 240.2%, respectively”) C&D Composition CRE Composition - Owner Occupied CRE Composition - Income Producing 9.8% 9% a 75% 10.7% al ais 5% 21% a toa 156 oe
Slide 8: Commercial Real Estate— Historical Performance
BFST Commercial Real Estate— Historical Performance Q415, Q416 Q417 Q418 Q419 20 Construction - 1-4 Family Residential $ 25032 $ 29683 $ 37,505 $ 55,485 $ 60,780 $ 60,684 JOther Const, Development, Vacant Land & Lots 72,840 64,742 105,970 155,569 183,401 200,152 ‘Total Construction 97,872 94,425 143
Slide 9: Energy Lending
BFST Energy Lending + Energy loans accounted for approximately 5.7% of portfolio and 40.4% of bank-level capital as of March 31, 2020 ENERGY PORTFOLIO BY COLLATERAL '% of Energy| COLLATERAL Total $'s Portfolio |Accounts Receivable & Inventory 26.7 26.2% * Geographic, loan type and collateral diversi
Slide 10: Energy Lending — Pro Forma
Energy Lending — Pro Forma 27% 02% 49% 15% 29% 5 ay 13% sx | sax 45% 159% nsx aux os seas fsen a oo a0 [Bivesrean e232 [Essean 0724 [Eitisream 7098 _ 4530 [Efbonsean 2438 [foowrsvem mam [is sccu series qras [PBppvrnouserices te320¢ [Bfsvrronserices 2st [Devons css age [[)Nno1acas 0 [noi ces _ Tatar
Slide 11: Energy Lending — BFST Historical Performance
Energy Lending — BFST Historical Performance 15 @Q415 Q416 Q417 Q418 Q419 Upstream $ 6395 $ 13878 $ 14392 $ 17,742 $ 12530 $ 9639 $ 8,865 [Midstream 16,072 17,422 35,024 25,490 18,148 6518 $ 6,312 Downstream 13,279 14,248 11,766 10,144 8,578 4511 $ 4,538 |Support / Services 77,520 79,313 73,142 70,7
Slide 12: Selected COVID Impacted-Industry Composition
BFST Selected COVID Impacted-Industry Composition Hotels/Motels Food and Drink Services Retail CRE ox 00% a1 an a2x aon es ase fe a 10% Dremetnace a uaes ory ro cr wee 1% Bllsrge tent ee 2% [norrisgged Hotel & Motels 3.578 02% — FELimited Senice Restaurants za 1.2% — [BlNational Tenont 17988 10% [Eb
Slide 13: Strong Credit Performance
BFST Strong Credit Performance 'O/Average Loar 1.10% 750% 0.90% 00% 0.70% 450% 0.50% sax 0.30% 150% 0.10% 00% -0.10% J 2012 20137 2014" 20157 20I6y 017 2OIBY 2018". YTD 2020 zor | 2017 2015" | 016y 20K 2018” 201" | ¥102020 —asitod asset Coverage Ratio —#-=Clasied asst Coverage Ratio x Enerey Jue Loa
Slide 14: Line of Credit Usage
BFST Line of Credit Usage + Line of Credit usage has been monitored daily since March 16, 2020 * The utilization rate has remained within a 1% range during this period * As of 4/24, available amounts totaled approximately $438 million with over 57% of remaining availability being restricted Lin liza
Slide 15: Capital and Liquidity
Capital and Liquidity CAPITAL i cisgm ini anaes Community Bank Leverage Ratio a ‘expected to be 9.00-9.50 following Re suLT LEMS AE acquisition of Pedestal Bancshares. Tangible Common Equity Ratio? 1037 1096 1017 LiquiDiTy®) COA. rokered jag poet ae 42% Non Interest short-term, Toke a ome Liquidity
Slide 16: Quarterly Financial Trends
BFST Quarterly Financial Trends For the Quarter Ended, Ear) EOS ‘33072019 IVE aS Balance Sheet & Capital ‘etal Aosets 2257862 2773836 230 2183008 $2101.40 (Gross Loans (Excl HFS) 171380 1710285 ea 7z7 1ea2573 125,122 Depasits 02808 a7z010 ed 702902 a7ea383 Total Equty 252030, as087 "0,340 ‘W780 mas
Slide 17: Yield / Rate Analysis
BFST Yield / Rate Analysis Stable core NIM") Fixed vs. Variable rate loans?) — Variable rate portfolio has a 2.1 year weighted average maturity 2! ~ 32% of variable rate loans have a floor of 4% or higher — 68% fixed with a weighted average maturity of 4 years ~ Approximately 14% of fixed rate loans
Slide 18: Merger Update
Merger Update PROGRESS January 7, 2020 Integration Team meetings begin and continue weekly January 22, 2020 February 3-7, 2020 Onsite Operations Team meetings March 4, 2020 S-4 became effective April 8, 2020 Final regulatory approval received April 14,2020 BFST Shareholder Approval April 21, 2020 Pe
Slide 19: Appendix
Appendix b BUSINESS FIRST BANCSHARES
Slide 20: Historical Financial Summary
BFST Historical Financial Summary For the Fiscal Year Ended December 31, YTD 2015 2016 2017 2018 2019 2020 Balance Sheet & Capital Total Assets $1,076,089 $1,105,841 $1,321,256 $2,094,896 $2.273,835 $2,287,662 Gross Loans (Excl. HFS) 772,392 810,951 975,284 1,528,469 1,710,265 1,771,380 Deposits 904
Slide 21: Energy Portfolio by Total Past Due — As of March 31, 2020
BFST Energy Portfolio by Total Past Due — As of March 31, 2020 Past Due Energy Loans by Category and Collateral ($ Millions) Ey Totals's | *Ofenergy | TotalPast ‘Accruing- Past Due Non- Portfolio Due$ 30-59 60-89 Accruals Upstream 8.9 87% 0.0 - - 0.0 Midstream 63 62% - - - - Downstream 45 45% - - -
Slide 22: Energy Portfolio by Risk Rating — As of March 31, 2020
BFST Energy Portfolio by Risk Rating — As of March 31, 2020 Energy Loans by Risk Rating and Catego ($ Millions) earn trim! Ctnen free eae z Current Quarter Previous Quarter fotal$ | %of Energy | Total$ | % of Energy Icash Secured — = E o7 - or 07% 14 1.1% Superior or = = 38 = 45 4A 25 2A% lAcceptabl
Slide 23: Energy Portfolio by Risk Rating — As of March 31, 2020
BFST Energy Portfolio by Risk Rating — As of March 31, 2020 as = Current Quarter Previous Quarter Total$ i %ofEnergy ! Total$ | % of Energy Icash Secured = 00 = o7 - o7 07% 14 1.1% [Superior 00 23 15 = o7 45 44% 25 24% lAcceptable 237 13.9 3.0 oa 42 45.0 AA. 46.0 448% Pass 197 83 32 = 18 33.0 32.4%
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Core NetIncome: Net Income Adjustments" Sale ofimpaired Credt Deferred Tax Asset write-down Employee Share Avards-NASDAQ Listing (GainyLoss Former Bank Premises & Equipment (GainyLoss on Sale of Securities (GainyLoss on Sale of Banking Center Early Lease
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures iccatquarter Tangible Common Equity / Tangible Assets: ‘Tangible Common Equity Total Shareholders’ Equity $ 282.030 $ 285,097 $ 280,340 $ 277.469 $ 269,144 Agustments Goodwill (48,495) (48.495) (48,333) (48,603) (49,534) Core deposit and other intangible
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ___“FortheYearEndedDecember3f, P2014] 20s aie ot 20s 2019 Tangible Conmon Equity / Tangible Assets: ‘Tangible Common Equity Total Shareholders’ Equity S 78845 $ 112449 $ 113559 $ 179935 $ 260,058 $ 285097 Adjustments: Goodwill 7 (3,376) (6,824) (6824) (4
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Quarterly Core NIM ait a7 37 ast? ate 248 aa ets atts a2zt8 as49 a4t9 ato Core Net Interest Margin: Net terest Income $ 10560 $ 11690 $ 10593 S$ 11,589 $ 1450 $ 14976 $ 1566 $ 17,117 $ 19120 $ 201939 $ MAES Mer $ 20211 ‘Adjustments: Loan purchase discoun
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Efficiency Ratio Efficiency Ratio: Noninterest Expense S$ 16,643 $ 15,203 $ 14878 $ 14577 $ 13,790 $ 58,448 $ 50,248 Core Adjustments (1,283) (76) (378) (436) 50 (837) (3,686) Net Interest and Noninterest Income S$ 22,990 $ 22861 $ 22,154 $ 24,354 $ 21,4
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Core Pre-tax, Pre-provision Earnings, Core PTPPAA Q4'19 Q3'19 0219 Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earings S$ 6372 $ 7680 $ 7,202 $ 9835 $ 7,641 Adjustments: Sale of Impaired Credit s - * - $ - $ (1) $ - (Gain)Loss Former Ban
Business First Bancshares — Q1 2020 Earnings Presentation on 6ix