Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q3 2023 Earnings Presentation
37 slides from Business First Bancshares's earnings presentation, Oct 26, 2023
Slide 1: Business First
BUSINESS FIRST
Slide 2: Table of Contents
TABLE OF CONTENTS. Legal Disclosures Guiding Principles & Social Impact_ Business First Bancshares, Inc. Overview Liquidity and Deposits Securities Portfolio Branches & Smith Shellnut Wilson Financial Results Q3 2023 Financial Results Stable Credit Performance Yield/Rate Analysis Loan Portfolio Oper
Slide 3: Legal Disclosures
LEGAL DISCLOSURES ") ‘Special Note Concerning Forward-Looking Statements “This investor presentation contains TorwarcHocking statements” within the meaning of Section 27A of the Securities Act and Section 2IE of the Exchange Act ‘made pursuant to the safe harbor provisions of the Private Secures Lig
Slide 4: Guiding Principles
GUIDING PRINCIPLES more than guides for they are the core of our culture, driving our day-to-day interaction: employees and with our clientsto make a impact on the communities we serve. AMERICAN BANKER 8 Best Banks & to Work For AMERICAN BANKER. § Best Banks & to Work For PLACES to WORK insaron rous
Slide 5: Social Impact
RED Texarkana SOCIAL IMPACT biICOMMUNITY bi FOUNDATION Project REACh
Slide 6: Business First Bancshares, Inc. Overview
BUSINESS FIRST BANCSHARES, INC. OVERVIEW Company Overview Ticker: BFST (Nasdaq) Market Capitalization: $475 million (as of September 30, 2023) Headquarters: Baton Rouge, Louisiana’ Franchise Highlights: Diversitied commercialfocused bank with $65 billon in assets and operations In Louisiana, Texas a
Slide 7: Executive Management
EXECUTIVE MANAGEMENT ") Jude Melville Director, President and CEO. Aged Yeer Stated ot BFST: 2006 Gregory Robertson Mansfield EVP, Che Financial Officer EVP, Chief Baking Officer EVP, Chef Operations Officer st Age st Age 47 ‘Yeu Stared ot BFST: 2011 Yeer Stated st BFST: 2008 Yeor Stated a BFST: 201
Slide 8: Diversified Footprint
DIVERSIFIED FOOTPRINT
Slide 9: Consistently Improving Profitability
CONSISTENTLY IMPROVING PROFITABILITY le 2018 erst se . $2.61 2.62 ee os 17.77 $2.05 $15.60 16.28 $1.80 $145 i nd : Ey aj 2018 2022 TTMa323 0323 REPS cone Ens Ne Vass alas Capmron Sharebailors - = 1 LAU ction ip H Sor Etc a ; are a i — 62.8% 3 H F3 | E :
Slide 10: Deposit Growth Through Organic and M&A Strategy
DEPOSIT GROWTH THROUGH ORGANIC AND M&A STRATEGY ") » Deposit strategy reflects consistent organic growth, augmented with ‘opportunistic MEA * intetaidepos ' + $20«Morgarie growth in total Total deposit CAGR of ~25% since Q4'15 Organic deposit CAGR of ~17% since Q4'15 (excluding acquired deposits)® +
Slide 11: Proven M&A Track Record
PROVEN M&A TRACK RECORD + BFSThas @ proven M&A rack record and hat successfully closed and integrated five whole-bank acquisitions and one non-bank RIA acquisition since 2015 ‘+ Average time-to-close of 149 days (announcement to close) for BFST compar favorably fo industry average of 158 days!) + Ex
Slide 12: Liquidity and Deposits
LIQUIDITY AND DEPOSITS le * Core deposits (excl. jumbo CDs and Brokered FHLB Borrowings Capacity $ 1,557 Deposits) represent 80.33% of total deposits. Unencumbered Securities $ 85 * Utilized $300.0 million of Bank Term Funding Program availability to strategically reduce the cost Cash Res enes $ 1s)
Slide 13: Securities Portfolio
SECURITIES PORTFOLIO * Portfolio’s main purpose is to serve as a source of on-balance sheet liquidity. * 100% of securities are classified as available for sale {AFS). * $968.5 million in securities AFS, primarily concentrated in agency/treasuries, mortgage- backed securities (MBS), municipal securi
Slide 14: Optimizing Branch Network and Infrastructure Investments
OPTIMIZING BRANCH NETWORKAND INFRASTRUCTURE INVESTMENTS ") ex foreave romarte /0¢ nove) S eS ee ane _| | i t z nee | er=sc. [el F- = x} is « ie 5 v ) exes Zhe. Ae, oe % + ee ei ary % December 34, 2014 September 30, 2023 6 59 14 st Locations [TTT Added ME closed or —==> Locations 48 acquired Banking
Slide 15: Smith Shellnut Wilson (SSW)
SMITH SHELLNUT WILSON (SSW) SMITH SHELLNUT WILSON De BANK © Aprilt, 2021 - Smith Shellnut Wilson, LLC (SSW) was acquired by BIBANKand operates as a wholly-owned subsidiary of BIBANK_ © SSWisa Mississippi limited liability company and registered investment adviser, withits principal office located in
Slide 16: Financial Results
e BUSINESS FIRST Financial Results
Slide 17: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS le Forthe Quarter Ended, ers0a023, swans _s21sa022 Diited Earnings per Common Share $076 $054 sa6r ROAA 117 % * ‘O81 % 12 ROACE 1418 1073 1358 Net terest Maron 381 375 405 Efficiency Rao” 5923 eazr 5960 Profitability Net income Aialltle to Common Sharehldersinmiions $1
Slide 18: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS ‘Change vs, For the quarter ended, $ millions 19/20/2023 6/30/2023 9/302 ‘Gross Loans (Excl. HFS) 54,9203 0% 1% ACL +FairValue Discounton Acquired Loans «$50.3 6% 22% Investment Securtes $0497 3% 4% Deposits 35,1907 4% 19% Borowings sea25 19% 3% Tota Equity $608.4 1% 19% ‘Ac
Slide 19: Stable Credit Performance
STABLE CREDIT PERFORMANCE ") Past Due Loans!) Nonperforming Loans(?) 01% saz sa 1033 2s 3023 302 saz 1023 202 3003 mms Past Due Loans to Total Loans —=Peer Average © Past DueLoans _mNomperforming Loans toTotal Loans —Peer Average © NPL ACL & FV Discount?) Net Charge-offs 161% a 0.08% 0.01% oon oor s
Slide 20: Yield / Rate Analysis
YIELD / RATE ANALYSIS 7.00% 6.00% s.00% 401% 2 408% 4.00% 3.75% 63% 361% 3.80% 3.75% 3.48% 3.00% 2.36% 2.00% 1.00% 0.00% a3 as'22 12s 223 0323 _—NM P= NIM ex. Accretion” Cost of int. Bearing Deposits ep Total Cost of Deposits bee Loan Yield mem Target Fed Funds Rate (0 hat ccntag ter coat anton beau
Slide 21: Loan Portfolio Overview - Repricing Opportunity
LOAN PORTFOLIO OVERVIEW - REPRICING OPPORTUNITY » jan Portfolio HFI variablerate or fixed rate maturing within thenext ‘12-months 97.9% ofall floating rate loans would reprice immediately with another 40.25% shiftin interest rates 97.9% of floating-rate loans would reprice immediately with ‘another
Slide 22: Loan Portfolio
e BUSINESS FIRST Loan Portfolio
Slide 23: Loan Composition
LOAN COMPOSITION Loan Composition by Region 5p 450 95K 72% 3500 149% 107% 1000 175% <i ha7% RBG WAT wre r2AI/19 —12/sARO/aK/aa_—2/A¥/22_ 09/3023. ‘=Capitalm North Louisiana m Southwest Louisiana m Bayou Greater New Orleans « Dallas = Houston 3Q23 Loan Growth Waterfall sits sa) se. 5430 S607 1/3122.
Slide 24: Loan Composition
LOAN COMPOSITION . Total Loan Portfolio Composition Top 5 Exposure Categories Consumer 8& Farmland, Home Equity Other, 26% 4.5% | Loans, 21% ‘Multt-Farly, 2% | 1-4Family, 95% $4.92 billion Commerc! Construction & Land, 14.4% oocre, NOOCRE, 20.4% 18.0% Outstanding commercial $127 ton (CRE - Owner cep
Slide 25: Loan Composition: Commercial
LOAN COMPOSITION: COMMERCIAL ‘Commercial Loans By Collateral Aarioiturl, ‘astysecurtes, 2% a ARB inventory, 402% Ties colateat, Ai otber 26.3% aupment, a ‘Commercial Loans By Region Wouston, 103% Southwest toukana, ~~» © Orleans, 9.7% Copal 13.8% Nth Louisiana, 79% * Commercial loans represent 25.8%
Slide 26: Loan Composition: Commercial Real Estate
LOAN COMPOSITION: COMMERCIAL REAL ESTATE ") $708.8 milion total portfolio $214 milion largest relationship $562 thousand averageloan size $1.00 $2984 million maturing over the next billion ‘B-months® + Dallas, Baton Rouge and Covington represent top 3 geographies within CAD and comprise 32.3% of all
Slide 27: Loan Composition: Office Lending by Geography
LOAN COMPOSITION: OFFICE LENDING BY GEOGRAPHY ") fee a Hahn + $52.9 lion total fice C&D pertfaio. comprised of 27 loans in 14 dstinet ‘geographies througheut Texas and Lewis + Largest C&D office oan is a $103 milion edt in Lewisville, TX OF) + 100.0% ofthe office C&D pentfaio is sk rated as pass wat
Slide 28: Sectors in Focus: Industry Composition
SECTORS IN FOCUS: INDUSTRY COMPOSITION All Others, Retail, 12.1% Oil and Gas, 3.7% Hotel and Motels, 4.2% a Food and Drink Services, 3.3% Other Hospitality, 1.8% 74.9% Soper el Loan Sige PastDue$ Past Due NPL$ NPI Reta $507,791 12.1% $838 SH 003% S74 0.12% O11 & Gas $181,369 37% $521 $0 0.00% S415 0
Slide 29: Appendix
e BUSINESS FIRST APPENDIX
Slide 30: Historical Financial Summary
HISTORICAL FINANCIAL SUMMARY ") For the Fisol Yor Ended December 3 110 18 2018 20 ‘021 7 DB a Taha 2004 e868 s2273m36 —S4.80360 S726370 Se ss0As0 —_se400701 Gross Loans (Excl. HFS) 1,528,469 1,710,265 2,991,355 3,189,608 ‘4.606.176 4.920 273 cea irs tran Seisers—dorrass—azosus—so0723 Tata Equty Zoos
Slide 31: Commercial Real Estate - Historical Performance
COMMERCIALREAL ESTATE - HISTORICAL PERFORMANCE le Q417) 418 419 Q4'20 421 Q4'22 Q3'23 |Constnsction - 1-4 Family Resident S 37565 $ 55485 $ 60780 S C8503 S MIS 1096 S 11660 lOther Const, Development, Vacant Land & Lots 105970 155.569 183401 334.562 457.607 61244502202 Total Construction 13.535 211,0
Slide 32: Oil and Gas Lending - Historical Performance
OILAND GAS LENDING -HISTORICAL PERFORMANCE 22 [Upstream S26 S$ 25 = Inidstream S104 $ = sur Downstream s TS 156 $ 3 |Support / Services S127 $ too244 $101.22 Total Energy Exposure $ 1e40s1 $ 190,400 $ 181,069 % of Total Loans 50% 49% 37% 4% of Total Bank Capital 393% 20.0% 25.0% [Tota Committed Ener
Slide 33: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES le Core Net income: Nacome S woos m7zs msm s mies zs 5 tems mes ess ass 1806 ojarers| SeleofinparesCrect s ms ms - 8s -s + 8 - 8 28 «8 3 ura Remburrementotr tm perce rete 2 os es s Pe ee 3 s s Empioee Sree Anacs-WSOADLning SSS 5 +o 5 3 3 3 (overs Former
Slide 34: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TCEITA, TBVPS “Tangible Conmon Equity/ Tangible Aesets: Tangle Common Emu ‘Total Shareholders’ Equity Preferred Stock Total Common Shareholders Equty ‘Adjustments: Good Core deposit and othe itangibes Total Tangible Common Equty Tota Assets ‘Adjustments
Slide 35: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES le 2018 2019 [2020 021 | 2022 Tangible Common Equity/ Tangible Ass ‘Tangible Comman Eguty ‘otal Sharehokers'Equty S 260058 S 285097 § 409,963 $ 493368 § 580481 Prefered Stock & = a e (71930) Total Common Shareholers' Equty S_20058_§ 205057 $9963 $3365 Ss
Slide 36: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES le Core Efficiency Ratio as22 | a422 | atz3 az23 | 323 12/31/2021 12/31/2022 Core Efficiency Ratio: Noninterest Expense $ 40.946 $ 38,946 $ 38679 $ 39,702 $ 38607 $ 117,061 $ 149,409 Core Adjustments S$ (521) S$ (138) $ (103) S_ (68) S 2 $ (2071) $ (6679
Slide 37: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Core Pre-tax, Pre-provision Earnings Q3'22 Q4'22 Q1'23 Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earnings S 20649 $ 25992 $ 22,458 $ 25,582 $ 26.570 ‘Adjustments: Sale of impaired Credit $ as - $s - $ - $s - (Gain)/Loss Former Bank Pre
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