Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — 2019 Gulf South Bank Conference
34 slides from Business First Bancshares's conference presentation, May 2, 2019
Slide 1: Business First Bancshares, Inc. 2019 Gulf South Bank Conference
BUSINESS FIRST BANK. Go get it. Business First Bancshares, Inc. 2019 Gulf South Bank Conference May 6-7, 2019
Slide 2: Legal Disclosure
Legal Disclosure Special Note Conceming Forward-Looking Statements, This investor presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act made pursuant to the safe harbor provisions of the Private Securities Litig
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 in 2006; 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 Dallas, TX Three successful acquisitions since 2015 ‘American Gateway
Slide 5: Our Operating Philosophy Has Been Consistent Since Day One
Our Operating Philosophy Has Been Consistent Since Day 1 Recruiting and ‘High Tech/ Disciplined Commercial Focus} Retaining Talented High Touch” Ex Saale Criteria Bankers Model F ‘Small-to-midsize Experienced and empowered ‘Branch lite” mode! In its first 10 years, Business businesses and their loca
Slide 6: Executive Management Team
Executive Management Team Executive team includes a mix of youth and experience which fosters an energetic and collaborative work environment Geographic diversification amongst executive management team Year Started at BF Jude Melville Gregory Robertson Donald Hingle Philip Jordan |Alicia Robertson
Slide 7: Market Presidents
Market Presidents Business First's Market Presidents have diversified experience at a mix of large, regional and community banks Market Presidents serve as important conduits between executive management and the local markets Tnvestar [East Baton Rouge ‘Michael Nizzo c) 16 2008 Iberville Bank Wells
Slide 8: Corporate History
Corporate History 2018: ‘Completed $25 milion private placement of subordinated notes 2018: LUsted on NASDAQ on. April 9" under BEST 2006: 2008: 2010: Bank opened in Expanded Expanded 2015: 2017: Baton Rouge; into the Intothe ‘Acquired American Expanded ‘expanded into the Lafayette Houma Gateway Fin
Slide 9: Current Footprint
Current Footprint Statewide focus on urban markets ‘Multiple markets provide diversification of both risk and production opportunities Year #of Hof East Baton Rouge 2006 7 16 $304,109 $322,989 ‘Shreveport 2006 1 5 216,966 124,502 Northshore 2007 4 3 119,752 53,823 Lafayette 2008 1 4 63,057 69,303 La
Slide 10: Recent Financial Results - Record FY 2018 & Positive 1Q
Recent Financial Results -Record FY 2018 & Positive 1Q 19 FY 2018: Combination of Organic and Gross Loans Total Deposits M&A growth 5 ‘18000 sagas Size susans p82 Loan growth of 56.7%; su000 2018 organic loan growth of 12.5% ee Core deposit growth of 60% in FY 2018 sau og ‘suncoa | eso: nie driven b
Slide 11: Quarterly Financial Trends
Quarterly Financial Trends fees ee | Tanase 70100 sonsase sierasss sieez07 sisi Goss naw (Ec HES) te 2 12a 1207950 azape eee) Deets ‘yes sae aseaort cere hear Taney ‘mae ‘aos Biase moe ose “Terabe Conan Eat /Tangble esas com % oe 10m % tam ox Neto (Ec HFS) Ase ne ne nn wae oy (Goes Les (xc HS) Docs
Slide 12: Loan Portfolio
Loan Portfolio Commercial lending is primary focus, with C&l representing 0) 21.8% and Owner Occupied CRE representing 18.6% ‘As of March 31,2019 14% 134% Recent acquisitions have provided portfolio diversification Energy concentration has decreased from 19.8% of total ae om: loans in Q1'15 to 7.2%
Slide 13: Detailed Loan Composition
Detailed Loan Composition Owner — Occupied CRE makes up 53% of total CRE lending C&D and Total CRE concentrations of 91.5% and 221.7%, respectively (C&D Composition (CRE Composition - Owner Occupied (GRE Composition = Income Producing To ed a on sox oman xen em stone a — a aan a [eee coer oo — a ee
Slide 14: Loan Production
Loan Production Business First loans have grown at 28.6% CAGR Loan Production— New & Renewed Commit S from 2014-2018 $1400 ) s200 Continued Loan Growth. FY 18 net organic loan growth of 12.5%. Annualized loan growth of 16.1% — in 1 19, 512000 sica0 Increased production primarily driven by: New lendi
Slide 15: Strong Credit Performance
Strong Credit Performance + Credit quality metrics have continued to improve significantly since 2010 NPLs / Gross Loans + FY.2017 NCOs resulted from two previously identified, substandard “° ) energy credits with current specific reserve of $800k 3.00% ‘$2.7 million in charge-offs from these two cr
Slide 16: Strong Credit Performance
Strong Credit Performance Classified Assets have decreased by 30% from $45.5, million at Q4"10 to $31.6 million at Q1'19 Past due loans have remained low even with the acquisition of two banks and stress in the energy sector in recent years Beginning in Q4'44, as conditions in the energy sector bega
Slide 17: Energy Lending
Energy Lending Energy loans accounted for approximately 7.2% of ENERGY PORTFOLIO BY COLLATERAL portfolio and 49.7% of bank-level capital as of March 31, 2019 Energy COLLATERAL Total $s portfolio [Accounts Receivable & Inventory 290 -25.2% Barges, Crew Boats, Marine Vessels 87 7.6% i git Equipment 16
Slide 18: Energy Lending — Historical Performance
Energy Lending — Historical Performance Continued stability of Watch List as economic conditions for the energy sector shows incremental improvement Q115 Q445 416 | 417) 448 Q119 lupsteam S 6395 $ 13.878 $ 14302 $ 17.742 S$ 12590 S 12,202 Midstream 16072 17.422 35024) 25.400 48 148) 7.182 Downstream
Slide 19: Commercial Real Estate — Historical Performance
Commercial Real Estate— Historical Performance Q415 416 | 447-418 = Q119 [Construction - 1-4 Family Residential $2508 $ 29683 $ 97565 $ 55.485 $ 54.082 |Omer Const, Development, Vacant Land & Lots 72.840 64742 405.970 85.560 156,906 [Total Construction 97,872 94425 149,595 217,054 211,888 °% of Tota
Slide 20: Deposit Mix
Deposit Mix Business First's deposit gathering strategy is focused on its commercial lending relationships In Q2'16, established a relationship pricing mode! that values deposits and treasury management Incentive plan for lenders tied to deposit growth added in Q3'17. After 6 quarters, the plan has
Slide 21: Yield / Rate Analysis
Yield / Rate Analysis Balance Sheetis asset sensitive 6.00%, zm, 579% sac] [>| sas) [224M |szand 5220 2 2) stable core NIM"? _ ares al Ee Loan betas outpaced deposit betas in FY 2018 and through BFST's deposit cycle (Q1 2017-1 2019) Strategic acquisitions of MBL Bank and Richland State Bank has stre
Slide 22: Interest Rate Positioning
Interest Rate Positioning * — Interestrate sensitivity as of Q1'19 indicated asset sensitivity in shockedrate scenarios. These estimates include Richland State Bank and assume a static balance sheet. Interest Rate Sensitivity 4.0% 3.5% sae 1.6% 0.0% i 0.1% -2.0% -4.0% 2.7% 4.2% -6.0% -100 +100 18% C
Slide 23: Securities Portfolio
Securities Portfolio Securities portfolio was $299 milion (par value) as of March 31, 2019 Weighted average life of portfolio as of March 31 is 3.64 years which indicates less price volatility when compared to, the 3.17 portfolio duration As of March 31, the portfolio roll-off volume for the next tw
Slide 24: Update on Minden Bancorp and Richland State Bancorp Transactions
Update on Minden Bancorp and Richland State Bancorp Transactions * Acquired Minden Bancorp, Inc. (MBL Bank) on January 1, 2018 All cash transaction valued at $76,0mm $323mm in total assets; 1.72% ROA in FY 2017 Closed transaction in under 3 months System conversion completed July 15, 2018 * Acquired
Slide 25: Growth Strategy Going Forward
Growth Strategy Going Forward Mainta Expanding Identify and Recruit i Z Disciplined Talented Bankers PES OUSOINE ESN) Acquisition Strategy Markets = Talented commercial Incentive program tied to Focused along the I-10/12 Organic expansion will be bankers will be the primary deposit growth and 1-20 c
Slide 26: Appendix
Appendix
Slide 27: Historical Financial Summary
Historical Financial Summary a ma eH ate mie ae aT ec 2019 Talal aents seso2ni SOc «Sage Seeasta.=SLmTGOM—Si.OSaa1 Stace © soouans | S201400 Gos tana Es HFS) “ies “usoae “S360 espsop rzaseeiogst_ arp zee “apes a soe Deets ciao Seam Sum rae eam ata mesa mame eaaes Teil auty ca YY SC Tanaible Common E
Slide 28: Energy Portfolio by Total Past Due — As of March 31, 2019
Energy Portfolio by Total Past Due —As of March 31, 2019 Past Due Energy Loans by Category and Collateral ($ Millions) — $$ Sa ae lupstream 123 7% | 0s 04% = - seo Pe eee Downstream 50 48 = = = = eames i eC a eT = = = ma yoral | V8.0 00.0% P38 ae rss pare oy ee a aes ee CS ae ee ee ee a Equipment. 1
Slide 29: Energy Portfolio by Risk Rating — As of March 31, 2019
Energy Portfolio by Risk Rating —As of March 31, 2019 id Category isk RaTING RRE et Total$ : % of Eneray cash Secured 1 0s 0.5% Superior 2 54 45% lAcceptable 3 502 | 436% Pass 4 408 353% TOTAL PASS RATED] 965 339% [PassAiatch aw 34 20% lother Assets Especial Nenioeca Z oe ai H Substandard 65 58% 6a
Slide 30: Energy Portfolio by Risk Rating — As of March 31, 2019
Energy Portfolio by Risk Rating —As of March 31, 2019 CarentOuarer 7 Preven Quarter feisiesllee id RealEstate ! Real Estate ! Securities i Totals | %ofEneray | Total$ / %ofEneray carn secured Ca ae = | 0 | | OO ak 2am supetor | as | TONS =| AN |e |d la fcconatio a | xo | wa | 29 | — | a9 | 52 | sm |
Slide 31: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures _Forthe YearEnded December3t, ‘Core Net income: Nethncome S 4053 5 4006 S$ S111 S$ 4B8 S 14001 S$ Ses9 S345 $3500 S36 Ss 3,108 “jus ents: Sele of Pantcpation interest inimpared creat Ss - 3 - s - says op s - 5s ws - s - s&s - DeredTaxassetuetesom S$ - S$
Slide 32: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Tce TEV eatuarter EE Tangible Common Equity / Tangible Assets: ‘Tangible Common Equity Total Shareholders Equty $ 269,144 $ 260,058 $ 212961 $ 210,629 $ 179.994 ‘Adustments: Goodwill (49534) 49.488) 2427) (92,552) 2,816) Core deposit and other intangible
Slide 33: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures _Forthe YearEndedDecembers, ‘Tangible Common Equity/ Tangible Assets: ‘Tangle Common Eauty ‘Total Shareholders’ Equity S 59524 $ 65209 $ T1014 $ 71983 S$ 78845 S 112MO S 113559 S$ 17995 S$ 260058 Adusiments Goodwill _ Ss 5 - - (3376) (8824) aH) (49.488)
Slide 34: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Seite ate | ase eats arr a2 | as47 eat atte a2 | aaye oats | at Core Netinterest agin: Net werst income S 961 S$ GI S$ G72 S G31 S IDSH Ss TEES 1055 5 11580. 145005 1497 5 1563 5 ITNT $19,120 ‘agsinets ‘oan purcase scout sczreton ws st 0 see a s us Coree
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