Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q3 2024 Earnings Presentation
37 slides from Business First Bancshares's earnings presentation, Oct 24, 2024
Slide 1: Q3 2024 Results
Q3 2024 Results
Slide 2: Table of Contents
2 TABLE OF CONTENTS Legal Disclosures 3 Guiding Principles & Social Impact 4– 5 Business First Bancshares, Inc. Overview 6 – 11 Liquidity and Deposits 12 Securities Portfolio 13 Branches & Noninterest Revenue 14 – 15 Financial Results Q3 2024 Financial Results 17 – 18 Stable Credit Performance 19 Yi
Slide 3: Legal Disclosures
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: Guiding Principles
4 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 5: Social Impact
5 SOCIAL IMPACT 2024 YTD Total Volunteerism: 3,845 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 6: Business First Bancshares, Inc. Overview
6 BUSINESS FIRST BANCSHARES, INC. OVERVIEW Company Overview Ticker: BFST (Nasdaq) Market Capitalization: $655 million (as of September 30, 2024) Headquarters: Baton Rouge, Louisiana Franchise Highlights: • Diversified commercial-focused bank with $6.9 billion in assets and operations in Louisiana, T
Slide 7: Executive Management
7 EXECUTIVE MANAGEMENT Jude Melville Chairman, President and CEO Age: 50 Year Started at BFST: 2006 Philip Jordan EVP, Chief Banking Officer Age: 52 Year Started at BFST: 2008 Keith Mansfield EVP, Chief Operations Officer Age: 48 Year Started at BFST: 2016 Chad Carter EVP, Correspondent Banking Age:
Slide 8: Diversified Footprint
8 DIVERSIFIED FOOTPRINT Note: Dollars in millions. Financial data as of September 30, 2024. Deposit balances do not tie to consolidated figures as a result of wholesale deposits, timing differences and other items recorded at the corporate level. Loan amounts based on outstanding loan balance before
Slide 9: Long-Term Profitability
9 LONG-TERM PROFITABILITY Note: Dollars in millions, except for per share data. (1) Non-GAAP financial measure. See appendix for applicable reconciliation. (1) (1) (1) (1) (1) Diluted EPS Available to Common Shareholders Tangible Book Value Per Share Net Income Available to Common Shareholders Effic
Slide 10: Deposit Growth Through Organic and M&A Strategy
10 (amount s in act uals) Non-Jumbo Deposit Accounts 15,312 15,539 15,608 41,064 37,508 90,963 89,359 97,740 101,546 101,609 102,988 101,932 Jumbo Deposit Accounts(1) 448 502 612 987 1,001 1,902 2,300 2,714 3,009 3,096 3,155 3,184 Total Deposit Accounts(1) 15,760 16,041 16,220 42,051 38,509 92,865 9
Slide 11: Proven M&A Track Record
11 9.75-Year CAGR Total Assets 687$ 1,077$ 1,106$ 1,322$ 2,099$ 2,276$ 4,175$ 4,733$ 5,990$ 6,585$ 6,889$ 27% Core Net Income(1) 4.4$ 4.1$ 5.1$ 3.1$ 16.8$ 24.6$ 37.5$ 53.9$ 57.6$ 66.3$ 63.1$ 32% Core Diluted EPS(1) 0.72$ 0.73$ 0.70$ 0.39$ 1.45$ 1.80$ 2.05$ 2.61$ 2.52$ 2.62$ 2.48$ 14% Core ROAA(1) 0.
Slide 12: Liquidity and Deposits
12 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 3Q24 at 5.56% to total assets. • Remain focused on core deposits,
Slide 13: Securities Portfolio
13 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 14: Optimizing Branch Network and Infrastructure Investments
14 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 six DFW Banking Centers. (3) Includes
Slide 15: Smith Shellnut Wilson and Financial Institutions Group
15 SMITH SHELLNUT WILSON (SSW) • April 1, 2021 – Smith Shellnut Wilson, LLC (SSW) was acquired by b1BANK and operates as a wholly-owned affiliate of b1BANK • SSW was founded in 1995 and offers investment advisory services, which includes discretionary and non-discretionary management of investment p
Slide 16: Financial Results
e BUSINESS FIRST Financial Results
Slide 17: Quarterly Financial Highlights
17 (1) Non-GAAP financial measure. See appendix for applicable reconciliation. (2) Preliminary consolidated capital ratios as of 9/30/2024. (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 payment i
Slide 18: Balance Sheet Highlights
18 BALANCE SHEET HIGHLIGHTS (1) Preliminary consolidated capital ratios as of September 30, 2024. (2) Non-GAAP financial measure. See appendix for applicable reconciliation. For the quarter ended, $ millions 9/30/2024 6/30/2024 9/30/2023 Gross Loans (Excl. HFS) $5,220.1 1% 6% ACL + Fair Value Discou
Slide 19: Stable Credit Performance
19 ACL & FV Discount(3) Past Due Loans(1) Note: Dollars in millions. Peer average based on average of last five quarters ending 2Q24, 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 20: Yield / Rate Analysis
20 Note: Data is as of September 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 21: Estimated Deposit Beta in Easing Rate Cycle
21 Note: Dollars in millions; amounts may not total due to rounding. Betas are estimates that reflect the deposit portfolio composition as of September 30, 2024, based on analysis of BFST deposit pricing in prior cycles. (1) Core CDs exclude brokered deposits and CDARs. (2) Reflects consolidated dep
Slide 22: Loan Portfolio Overview – Repricing Opportunity
22 Loan Portfolio HFI Note: Dollars in millions. Data is as of September 30, 2024. Loan balances per the general ledger before accounting adjustments, excluding deferred costs/fees, credit cards, overdrafts and loan premium/discount. (1) Reflects weighted average stated rate for the month-end for ea
Slide 23: Loan Portfolio
e BUSINESS FIRST Loan Portfolio
Slide 24: Operating Loan Growth
24 Note: Data is as of September 30, 2024. Dollars in millions. Loan balances are before accounting adjustments. (1) Net operating loans are defined as loans per the general ledger, excluding 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 September 30, 2024, based on preliminary FDIC call report data. LOAN COMPOSITION $5.22 billion Total Loan Portfolio Composition Top 5 Exposure Categories Outstanding Unfunded Average NPLs % of Balance Commitment Loan Size Total Loans Commercial $1.4 billion $656 milli
Slide 26: Loan Composition: Commercial
26 LOAN COMPOSITION: COMMERCIAL Note: Data is as of September 30, 2024. Percentages based on loan balances before accounting adjustments. • Commercial loans represent 28.7% of the total loan portfolio • Total commercial loan growth year-over-year of $164.1 million represents 54.7% of all loan growth
Slide 27: CRE and C&D Composition
27 CRE Composition - Income Producing Income Producing CRE Portfolio Hotel/Motel 15.4% Office Building 23.3% Office/Warehouse 3.0% Warehouse 8.8% Retail - Single-Tenant 9.0% Retail - Multi-Tenant 27.2% Commercial Building 6.7% Other 6.7% Total CRE - Income Producing 100.0% 15.4% 23.3% 3.0% 8.8% 9.0%
Slide 28: Loan Composition: Office Lending by Geography
28 Office CRE – Income-Producing by Geography(1)(2) Office CRE – Owner-Occupied by Geography(1)(2) Office C&D by Geography(1)(2) Note: Dollars in millions, unless otherwise noted. Above loan balances reflect outstanding principal bank balance, net of loan participations, as of September 30, 2024. (1
Slide 29: Appendix
e BUSINESS FIRST APPENDIX
Slide 30: Historical Financial Summary
30 Note: Dollars in thousands. As of December 31. (1) Non-GAAP Financial measure. See appendix for applicable reconciliation. (2) Preliminary consolidated capital ratios as of 9/30/2024. Total Capital Ratio not available for FY 2020 due to the bank’s use of the Community Bank Leverage Ratio. (3) Exc
Slide 31: Commercial Real Estate – Historical Performance
31 COMMERCIAL REAL ESTATE – HISTORICAL PERFORMANCE Note: Dollars in thousands. (1) Calculated at the bank level based on preliminary FDIC call report data. (2) Based on outstanding loan balances prior to accounting adjustments. Percentage based on CRE loans outstanding. (3) Past due and nonaccrual l
Slide 32: Reconciliation of Non-GAAP Financial Measures
32Note: Dollars in thousands except per share data. (1) Adjustments are net of tax. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 2019 2020 2021 2022 2023 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Core Net Income: Net Income 23,772$ 29,994$ 52,136$ 52,905$ 65,642$ 19,104$ 14,474$ 12,220$ 15,856$ 16,492$ Adjustm
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 TTM Q4'23 Q1'24 Q2'24 Q3'24 Q3'24 Core Net Income: Net Income 14,474$ 12,220$ 15,856$ 16,492$ 59,042$ Adjustments(1): -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (39
Slide 34: Reconciliation of Non-GAAP Financial Measures
34 Note: Dollars in thousands except per share data. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Tangible Common Equity / Tangible Assets: Tangible Common Equity Total Shareholders' Equity 604,366$ 644,259$ 649,034$ 664,530$ 699,524$ Preferred Stock (71,930) (71,930)
Slide 35: Reconciliation of Non-GAAP Financial Measures
35 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 36: Reconciliation of Non-GAAP Financial Measures
36 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Note: Dollars in thousands. (1) Excludes gains/losses on sales of securities. TTM Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 12/31/2022 12/31/2023 Q3'24 Core Efficiency Ratio: Noninterest Expense 38,607$ 39,714$ 42,522$ 43,110$ 42,450$ 149,409$ 156,702$ 167,796$ C
Slide 37: Reconciliation of Non-GAAP Financial Measures
37 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Note: Dollars in thousands. Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earnings 26,570$ 20,459$ 18,395$ 23,075$ 24,438$ Adjustments: Sale of Impaired Credit -$ -$ -$ -$ -$ -$ -$ (50)$ -$ -$ -$ 432$ -$ -$
Business First Bancshares — Q3 2024 Earnings Presentation on 6ix