Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q1 2021 Earnings Presentation
30 slides from Business First Bancshares's earnings presentation, Apr 22, 2021
Slide 1: Business First Bancshares Q1 2021 Results
Slide 2: Table of Contents
Table of Contents Legal Disclosures, 3 Guiding Principles. 4 Business First Bancshares, Inc. Overview. 5-8 Financial Date Balance Sheet. 9 Quarterly Financial Highlights 10 Yield/Rate Analysis 1 Loan Portfolio Loan Comp 12-14 Sectors in Focus, 15-18 Stable Credit Performance 19 Liquidity and Deposit
Slide 3: Legal Disclosures
Legal Disclosures le ‘Special Note Concerning Forward-Looking Statements ‘This investor presentation contains “Yorwardlocking statements" within the meaning of Section 27A of the Securtcs Act and Section 21E of the Exchange Act rade pursuant to the sate harbor prowsions of the Private Secures Ligati
Slide 4: Five guiding principles
bIBANK's five guiding principles reflect our core beliefs and values, which dtive all decisions Irrespective of our goais, 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 interactions between
Slide 5: Business First Bancshares, Inc. Overview
Business First Bancshares, Inc. Overview ") ‘Company Overview Ticker: BFST (NASDAQ) Market Capitalization: $498 milion Headquarters: Baton Rouge, Louisiana Franchise Highlights: + #1 deposit market share in Louisiana for Louisiana-headquartered community banks * Opened Frisco location (third in DFW
Slide 6: Participation in Paycheck Protection Program (PPP), Round 2
PARTICIPATION IN PAYCHECK PROTECTION PROGRAM (PPP), ROUND 2 Business First has funded approximately 1,500 loans with an. aggregate outstanding principal balance of $188.5 million under Round 2 of the SBA PPP. Additionally, Business First will recognize approximately $8.6 milion in fees associated wi
Slide 7: Corporate History — Strategic Context
Corporate History — Strategic Context lo Acquisitions and Organic Growth Priority: Healthy Growth 3 institutional investor and debt ra four mergers, come Start-Up i independently-ted sul Priority: Growth oe eerie completed of regulatory relationship Foundation Building acquisition 1, Northshic Lafay
Slide 8: Regional banking footprint
North Louisiana Region Dallas Fort Worth Region # of Banking Cente fof Bar 3 Total Loans: 63.2 Total Dep Capital Region # of Banking Centers: Total Loans: Total Deposits: ‘Southwest Louisiana Region # of Banking Centers: 8 ans: $6515 “ mance | al Deposits: $110.9 ‘Southeast Louisiana Region # of Ban
Slide 9: Balance Sheet
Balance Sheet be Change vs. For the quarter ended, § milions snimon _“FamiR020 38177020 Increase in goss loans largely atbutablo to net increase inPPP loans (Round 2) of $71.9 milion PPP balances totaling approximatoly $385.9 milion a period end -ALLL increased by $3.22 milion, 14.6%, from 0.74% 0 0
Slide 10: Quarterly Financial Highlights
Quarterly Financial Highlights Forthe Quarter Ended, an000 et Samoan __sanaaeo momo 3000 Diktod Earnings por Common Shave $050 $9 $0.46 sont $04 ROAA 115% 187% 098% 028% 08D ROAE 1196 1396 905 296 631 Not rtvost Margen 423 428 408 300 393 Efficloney Ratio 9.40 e027 65.65, 7140 7239 Ero ntaDINy, ‘Gor
Slide 11: Yield / Rate Analysis
Yield / Rate Analysi ") Loans Core NIM remains consistent jeld excludes SBA PPP Loans 60m) _— soon tan som ‘SBA PPP Yield of 5.21% (inclusive of fees) 36.6% varlable rate portfolio Sane + 50.4% of variable rate loans have @ owe 420% 129% floor of 4% or higher tcon | 22% 359% 63.4% fixed rate portfol
Slide 12: Loan Composition
le ome aay Farman, amy ons 26% ‘COMMERCIAL ; Outstanding: $587 million Commerda Unfunded: $329 million Average Loan: $187 thousand NPL 2 NOOCRE Outstanding: $489 million 1 Family, 148% ‘OOcRE Outstanding: $484 million Unfunded: $24 million Average Loan: $517 thousand NPL 4" 0.65% CONSTRUCTION & LAND
Slide 13: Loan Composition: Commercial
an Composition: Commercial Commercial Loans By Collateral Weighted average maturity of ‘Commercial portfolio is 4.2 years Continuous monitoring of unfunded commitments and line of credit usage ‘Commercial Line Utilization lan Jon 158m 22Jan 29am SiFeb I2Feb 19Feb 26Fed SAkse 12Mar I9Mae 26Mar 3LMar
Slide 14: Loan Composition: Commercial Real Estate
Loan Composition: Commercial Real Estate " ‘Owner ~ Occupied CRE makes up approximately 49.6% of total CRE lending C&D and Total CRE concentrations of 95.7% and 225.3%, respectively” C&D Composition (GRE Composition - Owner Occupied ‘CRE Composition - Income Producing aa sas ox ope me tes 208 1204 [
Slide 15: Sectors
Sectors Retail, 8.5% Oil and Gas, 7.4% Hotel and Motels, 3.1% Food and Drink Services, 2.6% Loan portfolio sectors of internal focus determined by current market conditions Other Hospitality, 1.1% * Oil & Gas volatility * Economic uncertainty related to COVID all others, 713% Outstanding % of Total
Slide 16: Sectors in Focus: Oil and Gas Lending
Sectors in Focus: Oil and Gas Lending Oil and Gas Loans By Function ral rei Continued decrease in quarter over quarter Maintenance, Oil & Gas portfolio exposure, approximately see $8.6 million decrease during first quarter Other, 10.0% ALLL + Fair Value Discount on Acquired Loans for Oil and Gas loa
Slide 17: Sectors in Focus: Retail Lending
Sectors in Focus: Retail Lending ") Retail Retailnon CRE, 73% Performance continues to remain stable Single Tent quarter over quarter Multi-Tenant, 36.0% No significant concentrations across the portfolio Outstanding —% of Total Average 7 » wsranamg of otal WvereeastDue $s" Past Due % NPLS" —NPLY% ‘
Slide 18: Sectors in Focus: Hospitality Lending
Sectors in Focus: Hospitality Lending Hotels and Motels Nonftgged Hotels & Motels, 27% Short-Term, stay/seas Breaktast, 108% Food and Drink Services Bars, Taverns, Pubs, 42% Caterers,0.2% suppliers, 3.5% Fullsenvice Restaurants, ‘a7. Limit Service Restaurants, 04% Outstanding % of Total Average w Co
Slide 19: Stable Credit Performance
Stable Credit Performance lo Past Due Loans") Nonperforming Loans") E 200 3020 a0 1a mm Nonperterming Loans to Total Loans —Peer Average @ NPLE 1020 200 300 sa20 raat smsrast DueLoans to Total Loans —=Peer Average © Past Due Loane ALLL & FV Discount”) Net Charge-offs 207% son _ = <= 2 eigen neem =
Slide 20: Liquidity and Deposits
iquidity and Deposits ") Core deposits (excl. jumbo CDs} represent 87.4% of Liquidity Sources (03/31/21 total deposits (as of 03/31/21) FHLB Borrowings Capacity $882 * $590.1 million, or 76.6% of total CDs, will reprice ireniolimbsred Seouriies § a2 within the next 12 months®, providing opportunity
Slide 21: 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 (ars) * $721.2 million in securities AFS, primarily concentrated in agency MBS and municipal securities = 1021 weighted average yield of 1.
Slide 22: Appendix
Slide 23: Historical Financial Summary
Historical Financial Summary ") Forte Fc Year Ene Deena v0 oo oe m= a a5 Total Assets ‘$1,105,841 $1,321,256 ‘$2,004,606 ‘$2,273,835 $4,160,360, ‘$4,443,586 Dees Lars Gl 15) ee ee omatr corse tousess—irssgon 700010 Setsere Saunas Toateany cc eo ee stone ieeaamteaae 9.62 % 13.04 % 990 % 10.36 % 845%
Slide 24: Commercial Real Estate — Historical Performance
Commercial Real Estate — Historical Performance lo [constuction 1-4 Famiy Residential Iwuis-Famiy Properties |Commercial Rental Jotrer Loans fr Real Estate Purposes® [Total Outstanding CRE Exposure Sof Tota Loans” 1360f Total Bank Capital [Total Committed CRE Loans credit Ratings ‘Pass-Watch / Speci
Slide 25: Oil and Gas Lending Historical Performance
Oil and Gas Lending Historical Performance ") Q415 416 | 417418 | A419 | Q4'20Q1'21 [Upstream 3 13678 $ 14902 $ 17,742 $ 12.590 $ 9630 $2,505 $ 2,201 Inidstream 17422 35024-25490 18,148 e518 $1609 $1,402 lDownstream 1424814768 10,144 8578 4511 $467 $422 |Support / Services T9313 73.142 70,765 __ 96.
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ") Gore Netincon, ROAA I Core Netincome: Netcom S SIS sea S 001s 2972S mo S 44S 202s 9m EMS 120 ‘gsi ‘Satect pared Crest so. S$ usys ws ms - S$ +8 2 8 28 Deter Tox fase wrtodoun sols es 2's Ss fos lg sof 8 Enpoyee StaroArars-NASOAGLsing SS FHS OF ST SU S
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Fiscatquarter 2220 ‘Tangible Common Equity / Tangible Assets: ‘Tangible Common Equity Total Sharcholders' Equity $ 282000 $ 386,336 $ 308.085 $ 400.963 $ 416,701 Adjustments: Goodvi (48,495) (63,649) (63.627) (63,882) (63,753) Core deposit and other (GAT
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures » _____“FortheYearEndedDecember31, P2015] 20g 207 0is 2012020 Tangible Common Equity / Tangible Assets: I non Equi ‘Total Shareholders’ Equity $ 112,449 $ 113,559 $ 179,935 $ 260,058 $ 285,097 $ 409,963 Adjustments: Good (297 (6824) (G84) (40,408) 48,405
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Core Efficiency Ratio —Fiscaiquarter Core Efficiency Ratio: ‘Noninterest Expense $ 16643 $ 27,797 $ Core Adjustments S$ (1.283) $6579) § ‘Net Interest and Noninterest Income $ 22990 $ 35915 $ Core Adjustments $ (126) $ - $ Efficiency Ratio 72.30% — 77.40
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ‘Core Pre Pre-provision Earnings Qn’ 220 a1'2t Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earings $ 6372 $ 8118 $ 14,198 $ 19.529 § 18,421 ‘Adjustments: Sale of impaired Credit s - $ - $ - os - $ : (Gainy/Loss Former Bank Premises & Equ
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