Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q2 2024 Earnings Presentation
38 slides from Business First Bancshares's earnings presentation, Jul 25, 2024
Slide 1: Q2 2024 Results
Q2 2024 Results
Slide 2: Table of Contents
2 TABLE OF CONTENTS Legal Disclosures 3 – 4 Guiding Principles & Social Impact 5 – 6 Business First Bancshares, Inc. Overview 7 – 12 Liquidity and Deposits 13 Securities Portfolio 14 Branches & Smith Shellnut Wilson 15 – 16 Financial Results Q2 2024 Financial Results 18 – 19 Stable Credit Performanc
Slide 3: Legal Disclosures: Forward-Looking Statements
3 LEGAL DISCLOSURES 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 21E of the Exchange Act made pursuant to the safe harbor provisions of the Private Securities Li
Slide 4: Legal Disclosures: Additional Information and Where to Find It
4 LEGAL DISCLOSURES Additional Information and Where to Find It This communication is being made with respect to the proposed transaction involving BFST and Oakwood. This material is not a solicitation of any vote or approval of the Oakwood shareholders and is not a substitute for the proxy statemen
Slide 5: Guiding Principles
5 GUIDING PRINCIPLES b1BANK’s five guiding principles reflect our core beliefs and values, which drive all decisions irrespective of our goals, strategies, or external factors. These tenets are more than guides for making business decisions; they are the core of our culture, driving our day-to-day i
Slide 6: Social Impact
6 SOCIAL IMPACT 2024 YTD Total Volunteerism: • 2,744 Hours • 270 hours of financial literacy education and non-profit service • Partnership through b1BANK Financial Institutions Group • Partner with Minority Deposit Institutions (MDI) by helping with correspondent banking services, specialized exper
Slide 7: Business First Bancshares, Inc. Overview
7 BUSINESS FIRST BANCSHARES, INC. OVERVIEW Company Overview Ticker: BFST (Nasdaq) Market Capitalization: $555 million (as of June 30, 2024) Headquarters: Baton Rouge, Louisiana Franchise Highlights: • Diversified commercial-focused bank with $6.7 billion in assets and operations in Louisiana, Texas
Slide 8: Executive Management
8 EXECUTIVE MANAGEMENT Jude Melville Director, President and CEO Age: 49 Year Started at BFST: 2006 Philip Jordan EVP, Chief Banking Officer Age: 52 Year Started at BFST: 2008 Keith Mansfield EVP, Chief Operations Officer Age: 48 Year Started at BFST: 2016 Chad Carter EVP, Correspondent Banking Age:
Slide 9: Diversified Footprint
9 DIVERSIFIED FOOTPRINT Note: Dollars in millions. Financial data as of June 30, 2024. Deposit balances do not tie to consolidated figures as a result of wholesale deposits, timing differences and other items recorded at the corporate level. Loan amounts based on outstanding loan balance before acco
Slide 10: Long-Term Profitability
10 LONG-TERM PROFITABILITY Note: Dollars in millions, except for per share data. (1) Non-GAAP financial measure. See appendix for applicable reconciliation. (1) (1) (1) (1) (1) Diluted EPS Available to Common Shareholders Tangible Book Value Per Share Net Income Available to Common Shareholders Effi
Slide 11: Deposit Growth Through Organic and M&A Strategy
11 (amount s in act uals) Non-Jumbo Deposit Accounts 15,312 15,539 15,608 41,064 37,508 90,963 89,359 97,740 101,546 101,609 102,988 Jumbo Deposit Accounts(1) 448 502 612 987 1,001 1,902 2,300 2,714 3,009 3,096 3,155 Total Deposit Accounts(1) 15,760 16,041 16,220 42,051 38,509 92,865 91,659 100,454
Slide 12: Proven M&A Track Record
12 9.5-Year CAGR Total Assets 687$ 1,077$ 1,106$ 1,322$ 2,099$ 2,276$ 4,175$ 4,733$ 5,990$ 6,585$ 6,704$ 27% Core Net Income(2) 4.4$ 4.1$ 5.1$ 3.1$ 16.8$ 24.6$ 37.5$ 53.9$ 57.6$ 66.3$ 63.9$ 33% Core Diluted EPS(2) 0.72$ 0.73$ 0.70$ 0.39$ 1.45$ 1.80$ 2.05$ 2.61$ 2.52$ 2.62$ 2.51$ 14% Core ROAA(2) 0.5
Slide 13: Liquidity and Deposits
13 LIQUIDITY AND DEPOSITS Deposit Composition Non-Interest Bearing NOW & Int. Bearing DDA MMDA & Savings Time Deposits • Bolstered cash reserves in 2023 in response to tighter monetary policy and continued to carry higher balances in 2Q24 at 4.80% to total assets. • Remain focused on core deposits,
Slide 14: Securities Portfolio
14 SECURITIES PORTFOLIO AFS Securities Portfolio• Portfolio serves as a source of on-balance sheet liquidity and provides interest income stability during times of declining rates. • With the relatively high-rate environment, the Bank is reinvesting portfolio cash flows and taking opportunities to m
Slide 15: Optimizing Branch Network and Infrastructure Investments
15 Data Source: S&P Global Market Intelligence. (1) Reflects b1BANK branch network, including all acquired, closed/divested, and de novo Banking Centers. (2) Includes four legacy b1BANK locations that converted from LPO to full-service Banking Centers. Includes five DFW Banking Centers. (3) Includes
Slide 16: Smith Shellnut Wilson (SSW)
16 Note: AUM Dollars in millions, unless otherwise noted. (1) Includes bank and credit union AUM. Excludes b1BANK securities portfolio and TruPs/CDs included in client portfolios. (2) Calculation of quarterly average AUM based on methodology in computing fees and reflects average quarterly AUM balan
Slide 17: Financial Results
e BUSINESS FIRST Financial Results
Slide 18: Quarterly Financial Highlights
18 (1) Non-GAAP financial measure. See appendix for applicable reconciliation. (2) Preliminary consolidated capital ratios as of June 30, 2024. (3) Past due and nonaccrual loan amounts exclude purchased impaired loans, even if contractually past due or if the Company does not expect to receive payme
Slide 19: Balance Sheet Highlights
19 BALANCE SHEET HIGHLIGHTS (1) Preliminary consolidated capital ratios as of June 30, 2024. (2) Non-GAAP financial measure. See appendix for applicable reconciliation. For the quarter ended, $ millions 6/30/2024 3/31/2024 6/30/2023 Gross Loans (Excl. HFS) $5,162.9 1% 5% ACL + Fair Value Discount on
Slide 20: Stable Credit Performance
20 ACL & FV Discount(3) Past Due Loans(1) Note: Dollars in millions. Peer average based on average of last five quarters ending 1Q24, Gulf South Peer Group defined as: FBMS, FGBI, HBCP, ISTR, OBK, RRBI, GNTY, VBTX, TCBX, STEL. (1) Past due loans include balances past due 30 days or more and not on a
Slide 21: Yield / Rate Analysis
21 Note: Data is as of June 30, 2024. Chart based on GAAP data. (1) NIM excluding loan discount accretion is a non-GAAP financial measure and excludes the accretion of the loan discount on acquired loans. See appendix for applicable reconciliation. YIELD / RATE ANALYSIS (1)
Slide 22: Loan Portfolio Overview – Repricing Opportunity
22 Loan Portfolio HFI Note: Dollars in millions. Data is as of June 30, 2024. Loan balances are before accounting adjustments and exclude SBA PPP loan balances. (1) Includes adjustable-rate loans. • 38.3% of total loans HFI are floating rate - 98.5% of floating-rate loans would reprice immediately w
Slide 23: Loan Portfolio
e BUSINESS FIRST Loan Portfolio
Slide 24: Operating Loan Growth
24 Note: Data is as of June 30, 2024. Dollars in millions. Loan balances are before accounting adjustments. (1) Net operating loans are defined as loans per the general ledger, excluding PPP, deferred costs/fees, corporate and other, overdrafts and loan premium/discount. OPERATING LOAN GROWTH Loan C
Slide 25: Loan Composition
25 Note: Loan composition as of June 30, 2024, based on preliminary FDIC call report data. LOAN COMPOSITION $5.16 billion Total Loan Portfolio Composition Top 5 Exposure Categories Outstanding Unfunded Average NPLs % of Balance Commitment Loan Size Total Loans Commercial $1.44 billion $673 million $
Slide 26: Loan Composition: Commercial
26 LOAN COMPOSITION: COMMERCIAL Note: Data is as of June 30, 2024. Percentages based on loan balances before accounting adjustments. • Commercial loans represent 29.4% of the total loan portfolio • Total commercial loan growth year-over-year of $211.2 million represents 80.0% of all loan growth • We
Slide 27: Loan Composition: Commercial Real Estate
27 Note: Dollars in millions. Data is as of June 30, 2024. Percentages based on loan balances before accounting adjustments. (1) Geographic composition detail reflects borrower zip code on file in loan source files. Does not necessarily reflect zip code or location of loan collateral. (2) Represents
Slide 28: Loan Composition: Office Lending by Geography
28 Office CRE – Income-Producing by Geography(1)(2) Office CRE – Owner-Occupied by Geography(1)(2) Office C&D by Geography(1)(2) Note: Dollars in millions, unless otherwise noted. Above loan balances reflect outstanding principal bank balance, net of loan participations, as of June 30, 2024. (1) Geo
Slide 29: Appendix
e BUSINESS FIRST APPENDIX
Slide 30: Historical Financial Summary
30 Note: Dollars in thousands. As of December 31. (1) Non-GAAP Financial measure. See appendix for applicable reconciliation. (2) Preliminary consolidated capital ratios as of June 30, 2024. Total Capital Ratio not available for FY 2020 due to the bank’s use of the Community Bank Leverage Ratio. (3)
Slide 31: Commercial Real Estate – Historical Performance
31 COMMERCIAL REAL ESTATE – HISTORICAL PERFORMANCE Note: Dollars in thousands. (1) Calculated at the bank level based on FDIC call report data. (2) Based on outstanding loan balances prior to accounting adjustments. Percentage based on CRE loans outstanding. (3) Past due and nonaccrual loan amounts
Slide 32: Oil and Gas Lending – Historical Performance
32 Note: Dollars in thousands. Loan balances based on balances before accounting adjustments. (1) Percentage based on Energy loans outstanding. (2) Past due and nonaccrual loan amounts exclude purchased impaired loans, even if contractually past due or if the Company does not expect to receive payme
Slide 33: Reconciliation of Non-GAAP Financial Measures
33 Note: Dollars in thousands except per share data. (1) Adjustments are net of tax. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 2019 2020 2021 2022 2023 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Core Net Income: Net Income 23,772$ 29,994$ 52,136$ 52,905$ 65,642$ 18,389$ 19,104$ 14,474$ 12,220$ 15,856$ Adjust
Slide 34: Reconciliation of Non-GAAP Financial Measures
34 Note: Dollars in thousands except per share data. (1) Adjustments are net of tax. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TTM Q3'23 Q4'23 Q1'24 Q2'24 Q2'24 Core Net Income: Net Income 19,104$ 14,474$ 12,220$ 15,856$ 61,654$ Adjustments(1): -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
Slide 35: Reconciliation of Non-GAAP Financial Measures
35 Note: Dollars in thousands except per share data. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Tangible Common Equity / Tangible Assets: Tangible Common Equity Total Shareholders' Equity 600,968$ 604,366$ 644,259$ 649,034$ 664,530$ Preferred Stock (71,930) (71,930)
Slide 36: Reconciliation of Non-GAAP Financial Measures
36 Note: Dollars in thousands except per share data. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 2019 2020 2021 2022 2023 Tangible Common Equity / Tangible Assets: Tangible Common Equity Total Shareholders' Equity 285,097$ 409,963$ 433,368$ 580,481$ 644,259$ Preferred Stock - - - (71,930) (71,930)
Slide 37: Reconciliation of Non-GAAP Financial Measures
37 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Note: Dollars in thousands. (1) Excludes gains/losses on sales of securities. TTM Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 12/31/2022 12/31/2023 Q2'24 Core Efficiency Ratio: Noninterest Expense 39,702$ 38,607$ 39,714$ 42,522$ 43,110$ 149,409$ 156,702$ 163,953$ C
Slide 38: Reconciliation of Non-GAAP Financial Measures
38 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Note: Dollars in thousands. Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earnings 25,582$ 26,570$ 20,459$ 18,395$ 23,075$ Adjustments: Sale of Impaired Credit -$ -$ -$ -$ -$ -$ -$ -$ (50)$ -$ -$ -$ 432$ -$
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