Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — HOVDE 2019 Community Bank Investor Conference
34 slides from Business First Bancshares's conference presentation, Nov 1, 2019
Slide 1: Business First Bancshares, Inc. – Hovde 2019 Community Bank Investor Conference
BUSINESS FIRST BANK Go get it. Business First Bancshares, Inc. HOVDE 2019 Community Bank Investor Conference November 3-5, 2019
Slide 2: Legal Disclosure
Legal Disclosure ‘Special Note Concerning Forward-Looking Statements This investor presentation contains orwardooking statements’ within the mesning of Section 27A of the Secuties Act and Section 226 of the Exchange Act made ‘pursuant tothe safe harbor provisions ofthe Private Secures Ligation Refor
Slide 3: Overview of Business First Bancshares, Inc.
Overview of Business First Bancshares, Inc.
Slide 4: Overview of Business First Bancshares, Inc.
Overview of Business First Bancshares, Inc. + Founded in2006; headquartered in Baton Rouge, LA © Commercial bank focused on small-to-midsize businesses ‘and their owners and employees * Currently operating in ten Louisiana markets and DFW MSA Scale Over $2 billion in assets Top 10 deposit market sha
Slide 5: Business First Footprint
Business First Footprint + Opened three full service banking centers since 2 418: New Orleans, DFW, and Sulphur + Closed four branches Three successful acquisitions since 2015 Richland State Bank (November 30, 2038) ‘expanded presence along I-20 and contributed ‘excess deposits, Conversion completed
Slide 6: Our Operating Philosophy Has Been Consistent Since Day One
Our Operating Philosophy Has Been Consistent Since Day 1 + Small-to-midsize businesses and their overs and SEES Target $1-$10mm commercial lending relationships that are typically too small for the largerfinancial institutions to value but too complex for many community banks Full sute of treasury a
Slide 7: Corporate History
Corporate History Completed$25 millionprivate lacementof subordinated nates 2018: Listed on NasoAGon Aprl9® under 8FST 2006: Bank openedin Baton Rouge; lexpandedintothe Shreveportmarket 2008: Expanded intothe Lafayette 2010: Expanded Intothe Houma market 2015: ‘AcquiredAmerican Gateway Financialin ‘
Slide 8: Executive Management Team
Executive Management Team ‘Year Started Officer atBFST Position with Business First Bank Executive team includes a mix of youth and experience which fosters an energetic and collaborative work environment. |Jude Metvile 2006 Director, President and Chief Executive Officer [Gregory Robertson 2011 EVP
Slide 9: Market Presidents and Managing Directors
Market Presidents and Managing Directors shreveport INornstere Lake Charis /Latayette Houma new Oneans lWest Baton Rouge lowe) IMcen lrvciana JackByrd ‘Warren MeDonaia Poncho Seaord Gora Navaro chr Keene ‘sony Gascon cvs shaw Jason Slegele ‘Me Burton chat carter 216 ano 2on7 Wels Fargo, ‘Moden Bark
Slide 10: Current Footprint
Current Footprint “Meaningful presence in state's top 8 MSAs and DFW Complementary market demographics to provide system-wide balance Year # of #of rotal Total Market Entered cilities Bankers") East Baton Rouge 2006 7 14 $321,074 $309,746 Shreveport 2006 1 3 104.754 97.319 Northshore 2007 1 4 114,02
Slide 11: Recent Financial Results Record FY 2018 & Positive YTD 2019
Recent Financial Results Record FY 2018 & Positive YTD 2019 Positive YTD 2019 Gross Loans Total Deposits sumo j Str s4ye00 sume sua Annualized organic loan growth of 14.5% = susoes pee ] Net Income for the YTD period is 69.2% higher s1000 | suacoo | than the same period in 2018 ws pea 2 =eeRER Stabl
Slide 12: Quarterly Financial Trends
Quarterly Financial Trends ates i Aen ane naw nas nex nn Neds Oe Bo ae Be ho Ze [rs reel eat Lows sel TDR) sii sions see ser erm sre et OR) ae "3 ae he eu bana eet TOR) on % cet cow ry Reeve fea ton 8) on on on on Nec ange Lar om 00 oe oo Powoerere x < Nevers aes ate Netting om are owe fas oe ae Die
Slide 13: Loan Portfolio
Loan Portfolio ‘Commercial lending is primary focus, wit Bl representing 22% and 7 ‘Owner Occupied CRE representing 19.5% As of September 30, 2019" 73% Recent acquisitions have provided portfliodiversfication Enerey concentration has decreased from 19.8% of total loans in QY'15 t0.6.5% in Q3'19 ‘Ave
Slide 14: Loan Production
Loan Production ee nce teErcem Loan Production —New & Renewed Commitmen 2018 Continued Loan Growth. FY 18 net organicloan growth of 12.5%. Annualized loan growth of 14.5% YTD 2018. Increased production primarily driven by: Lending team added in DFW in 2017. Following its success, ‘added a second len
Slide 15: Strong Credit Performance
Strong Credit Performance Credit quality metrics have continued to improve significantly since 2010 ALLL/Gross Loans equaled 0.71% at September 30,2019 / legacy gross loans (Le., excluding purchased loans) equals ALLL plus loan discount/eross loans equals 1.01% NPAs / Assets 250% 200% | 195 150% 129
Slide 16: Strong Credit Performance
Strong Credit Performance Classified Assets have decreased by 30% from $45.5 million at 2410 to $30 million at Q3'19 Past due loans have remained low even with the acquisition of ‘two banks and stressin the energy sectorin recent years, Beginning in Q4'14, a¢ conditions in the energy sector began to
Slide 17: Detailed Loan Composition
Detailed Loan Composition (Owner Occupied CRE makes up 53% of total CRE lending. (C&D and Total CRE concentrations of 89.0% and 220.6%, respectively ees = = ewe to om roe ipsa aey 208 pag — surely -— te 2m 20m veces 20%, oil neteened = aes am | Eee 20m [Gjomren 8g Psa er os [forens corner nn-uareen
Slide 18: Commercial Real Estate— Historical Performance
Commercial Real Estate— Historical Performance 415 446 417 319 [Constucton - +4 Famiy Residential S 250% $ 20653 $ 37565 $ 55485 $ 56380 jomer Const, Development, Vacant Land & Lots 720 647205970 s8seD tetas ‘Total Construction 97.872 94425 149,505 211,054 220,604 9% of Total Loans 125% 110% 47% 138
Slide 19: Energy Lending
Energy Lending Energy loans accounted for approximately 6.5% of portfolio and 44.9% of bank-level capital as of September 30,2019 Geographic, loan type and collateral diversification 9.8% of total energy lending isnon-corrlated (cash secured, petrochem, reall) Active monitoring of exposures Quarterl
Slide 20: Energy Lending — Historical Performance
Energy Lending — Historical Performance Continued stability of Watch List as economie conditions for the energy sector shows incremental improvement Q115) Q415 446 «447 = 448 = Q319 lUpsteam S 6305 $ 13878 $ 14902 $ 17.74 $ 12590 S 10.669 |nicstream 1072172235024 418.148, 7915 lbownstream 13279 42tg
Slide 21: Deposit Mix
Deposit Mix snes First's deposit gathering strategy is focused on ts ponent ples lal ‘ Deposit Mix - September 30, 2019 All but three of the Top 25 relationships by current loan aan 16% balance are depositors Incentive plan for lenders tied to deposit growth added al Jn 03°17, After 8 quarters, the
Slide 22: Yield / Rate Analysis
Yield / Rate Analysis 530 532% Consistent loan yields supporting 519% jose Same Pa] stable core NIM = [aso a sam) ee Strategie acquisitions of MBL Bank 430% and Richland State Bank have 439% 407%] «01 410%) strengthened loan and deposit betas sven ed ae aan] 297%] 396% 205%] 407%) cor : sae a = — ad
Slide 23: Securities Portfolio
Securities Portfolio Securities portfolio was $281.1 million (par value) as of September 30,2019, Securities Portfoli 1000 +400. 4200 Weighted average life of portfolios of Price Change (6) 515 262 000-299 620 September 30 was 3.36 years which indicates less price volatility when compared tothe 2.80
Slide 24: Growth Strategy Going Forward
Growth Strategy Going Forward Maintain Disciplined Focus on Business Model Identify and Reeruit | ExpandingPresence in |) cNew | Disciplined Acqu Talented Bankers Existing Markets Market Expansion Strategy + Talented commercial bankers * Incentive program ted to Focused along the I-10/12 and * Organ
Slide 25: Appendix
Appendix
Slide 26: Historical Financial Summary
Historical Financial Summary v0 aH an ie Bit is a Bence Steet Catal Tatas séeiste $1076.00 Si-osa1—stsz1256 — seasias —se2a0a10 ons on (xt HFS) rose remo aidsst arsam_1soneso 184727 Depot fiz muses tees spam 1700380 Tale mas zag Tiase age ense = a0 ‘Tangible Common Equity/Tanable Assets!” 1152 % 995
Slide 27: Energy Portfolio by Total Past Due — As of September 30, 2019
Energy Portfolio by Total Past Due — As of September 30, 2019 Past Due Energy Loans by Category and C teral ($ Millions) — eee ae Enc Gea Ae — ‘ol a eo nes = i a EC eee = == = —- ee ee eee oe Bers : = Se ESE SSS ES TOTAL 1112 0.0 ole = = 0.0 era Te ain ares Seana eonansimaiey —| os si al ina ieee ae
Slide 28: Energy Portfolio by Risk Rating — As of September 30, 2019
Energy Portfolio by Risk Rating — As of September 30, 2019 ep OT ae Cn Ona rvs mee fascsamns rr | non munvean owaneon) Spin MaOTE | Caren | Pero ean Seared = Fr eS sai yeaa ia) WE aa ean ara eccoyale 3 | as yas) oak task se fay pre a ve TAPS 1 Gea sss [Pass Watch aw = 00 = oo | (OOK 2; ee omerasses
Slide 29: Energy Portfolio by Risk Rating — As of September 30, 2019
Energy Portfolio by Risk Rating — As of September 30, 2019 Energy Loans by Risk Ratin (S Millions) esx rarns Cat, Seas cere Loree cath secured a = 05 Oss sper 2 | o | oo 15 55am Jccepatie 3 | ws | us | 26 19 a ras «| zs | sr 2 oo 29m TOTAL PASS ATED 2) ar) mes ions) 058% Pasnvach wl oo = == eT aT Ji
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures forthe YearEndedDecenbers4, ie as | ae | mr fe as) are | aris coro net ncames Netncame ee ee ee ee eC ne eet? ‘austen ‘Sa atineakes Creat $5 2 8 = sas os - sms - 8 mse Deterrea Tact te conn Soh os cic dee oS 8 as Bs ss _ Employee Sure amrcenasosalning $
Slide 31: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures TCE / TEV oo FiscalQuarter Pas | coe | are Tavis | ase ‘Tangible Common Equity Tangible Assets: ‘Tangible Common Equty ‘Total Shareholders! Equty $ 280340 $ 277.409 $ 269,144 $ 260,058 $ 212,961 Adustments: Goodvill, (48333) (48,503) (49.534) (49,488) (2
Slide 32: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Forte YearEndedDecember 34, zis [2016 | 17 ‘Tangible Common Equity / Tangible Assets: Tangible Common Equity Total Shareholders’ Equity S 7a845 $ 112.449 $ 113559 S$ 179.935 $ 260,058 Adjustments: ‘Goodwil : (3376) (6824) (6.824) (49,488) Core deposit an
Slide 33: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures S46 a6 an aR aT eer ore aa ase eee Ore aa ase ore Net mires Margie etre ream S 972 S 9318S 10580 5 N60 S ISD S TSE S MAGS HOM S 156s ITHTS 1HROS mID Ss 0288 ‘sets Tan case cacourt seater psp a ay gc nay can un coretatomrnthoome ga Eon So ste 5 hoe 5 vige
Slide 34: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures a ci: TS FiscalQuarter Lasia | azio | aria | sie | ass Efficiency Ratio: \Noninterest Expense S 14878 $ 14577 S 1379 $ 14409 S$ 11,870 Core Adjustments, (375) (436) 50 (2,132) (609) Net Interest and Noninterest Income S 22154 $ 24,354 $ 21,431 S$ 19.601
Business First Bancshares — HOVDE 2019 Community Bank Investor Conference on 6ix