Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Investor Presentation (September 2022)
40 slides from Business First Bancshares's investor presentation, Sep 1, 2022
Slide 1: Business First
BUSINESS FIRST
Slide 2: Table of Contents
TABLE OF CONTENTS Legal Disclosures Terms of Proposed Private Placement Executive Management Guiding Principles Business First Bancshares, Inc. Overview Investment Highlights. Financial Results Q2 2022 Financial Results Stable Credit Performance Yield/Rate Analysis Loan Portfolio Operating Loan Grow
Slide 3: Legal Disclosures
LEGAL DISCLOSURES ) Special Note Concerning Forward: Looking Statements This invester presentation conteins forwarchlocking statements" within the meaning of Section 27A cf the Securties Act and Section 21E of the Exchange Act ‘made pursuant tothe safe harbor provisions ofthe Private Secures Ligatio
Slide 4: Legal Disclosures (Cont'd)
LEGAL DISCLOSURES (Cont'd) " (Oflering Diemer Any cltering of securities may be made only by a purchase agreement andthe information contained herein wll be superseded in ts entirety by such purchase ‘egreement. This investor presentation does not contain all f the information you should consider be
Slide 5: Terms of Proposed Private Placement
TERMS OF PROPOSED PRIVATE PLACEMENT MCGAESTUPTECSEE * Business First Bancshares, Inc. / Holding Company * ${TBD] million, aggregate liquidation amount, of fixed-to-floating rate non-cumulative perpetual preferred stock, Series A Security Offering Rating + Unrated Dividend + Perpetual; 5-year fixed r
Slide 6: Executive Management
EXECUTIVE MANAGEMENT Gregory Robertson EVP, Che Finacial Offer ges50 ‘Yer Stated a BFST: 2011 You Stated a BFST: 203 Seundre Strong EVP, Geral Couns gets ‘Yeu Stated a BFST: 2021 Jude Melville Diretr, Pres Ages 47 Yeu Stated. BFST: 2006 Philip Jordan EVP, Cha Barking OFcer Ages50 Yew Stated OFST: 20
Slide 7: Guiding Principles
GUIDING PRINCIPLES e making business decisi ving our day 1d with our between a postive AMERICAN BANKER || § Best Banks
Slide 8: Business First Bancshares, Inc. Overview
BUSINESS FIRST BANCSHARES, INC. OVERVIEW. e Company Overvi Ticker: BFST (NASDAQ) Market Capitalization: $481 million (as of June 30, 2022) Headquarters: Franchise Highlights: Closed Texas Citizens Bancorp, Inc. (TCB) transaction market March 1, 2022, with acquired assets of $534.2 Opened 4% full-ser
Slide 9: Recent Corporate History: Significant Milestones
RECENT CORPORATE HISTORY: SIGNIFICANT MILESTONES lo perrerecrermarae « clrcnapt soo seal ‘inna ee EE Acqaed Pade Bons Te (SESE eta) + Paicpted in SBA PEP program (5604.3 mm * Patcpted in Main Stet Landing Prom (53278 wn) + Exblahnent 4 Fianallnatetins Grp th em Bi onthe in Dll Opened scord falls lea
Slide 10: Balanced Footprint
BALANCED FOOTPRINT # of Banking Centers: # of LPOs: Total Loans: Total Deposits: Dallas Fort Worth Region Deposits / Banking Center # of Banking Centers: Total Loans: Total Deposits: Capital Region Deposits / Banking Center ie crtandea Cartare Total Loans: Total Deposits: Houston Region Deposits / B
Slide 11: Smith Shellnut Wilson (SSW)
SMITH SHELLNUT WILSON (SSW) SMITH SHELLNUT WILSON JANK © April, 2021 Smith Shellnut Wilson, LLC (SSW) was acquired by BIBANKand operates as a wholly-owned subsidiary of IBANK. ‘SSWisa Mississippi limited liability eompany and registered investment advisor, withits principal office located in Ridgela
Slide 12: Investment Highlights
INVESTMENT HIGHLIGHTS. ") * Disciplined and experienced management team positioned for growth. Experienced Leadership 23 average years of industry experience 45 average age of key executives : NPAs / Assets of 0.21% (excluding single $6.3 milion nonaccrual credit that paidoff during July 2022) Gace
Slide 13: Financial Results
e BUSINESS FIRST Financial Results
Slide 14: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS le ‘Change vs. For the quartor ended, $ 6730/2022 3/31/2022 6/30/2024 = Organie loan growth of 9.74% forthe quartered by the DFW, Greater New Orleans, and North LA. Gross Loans Excl. HFS) 341137 10% 444% markets continuing to diversify the loan portfolio, Year ‘over year loa
Slide 15: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS Forthe Quater Ended, oon —_tentewI —_ 9s __—_SaOMOA Dikted Earrings per Common Share 06 sat $059 $050 sot ROAA 12% «OTL % «105% «© 085% 158 % ROAE 22 783 1120 947 1657 Net terest Magn 38 351 357 an 307 ficiency 6132 rer 6607 er73 5608 GY Core Pre Tax, Pre Provision hco
Slide 16: Stable Credit Performance
STABLE CREDIT PERFORMANCE Past Due Loans!) 20 sax sa 102 202 ‘mast Due Loans toTotal Loans —Peer Average © Past Due loans ALLL & FV Discount”) SESE SToNo 2a san a2 102 202 ‘= AuLsDisount to Total Loans ALLL to Tota Loans Nonperforming Loans() on eo Co ee g oforo.® aS SS = Se eS oe Net Charge-offs co
Slide 17: Yield / Rate Analysis
YIELD / RATE ANALYSIS oon sam ane sa oe se eno =< 1 so ann 3.57% 3.51% reas ae ay 3.42% 3.43% ae om 10% ms oan _ ose Loatad = 70.31% 0.34% oS a on on own an wn = ae eee cs Bi a Se a a) Seas
Slide 18: Loan Portfolio Overview - Repricing Opportunity
LOAN PORTFOLIO OVERVIEW - REPRICING OPPORTUNITY ") Loan Portfolio HFI Floating Rate Loans Set to Reprice p wx Bmp mae sn Tipe SOs *USbp +200 > +200 ps MlrvcsRatetoms (matre> tex) Birncsratetoms (matre <1yex) pang Rate wth Floors oor. | 07a | SOR | Hex: Flting Rat Lan Summary irectng Rete winout Floo
Slide 19: Loan Portfolio
e BUSINESS FIRST Loan Portfolio
Slide 20: Operating Loan Growth
OPERATING LOAN GROWTH. ") Loan Composition by Region 4500 xe “0 | ox 7% 3.000 2500 152% 2.000 esx 1500 aes ° pms nye ns sao z/sy/a1—06/s0/22 sm coptal North lousians mSouthwestLoutiona Bayou Greater New Orleans Dalit Houston YTD 2022 Loan Growth Waterfall som son
Slide 21: Loan Composition
LOAN COMPOSITION ") Farmland, ome Equity ‘Consumer & 42% Loans, 21% ‘COMMERCIAL Other, 2.7% uistanding: $951 million ut-Famiy, Unfunded: $401 million 24% Average Loan: $283 thousand wus oars OOCRE = ustanding 329 milion stony Untundos.” $9 mon Iereps Loon: 5723 ouand NOOCRE NPL %(": 0.24% ws CONSTRU
Slide 22: Loan Composition: Commercial
LOAN COMPOSITION: COMMERCIAL ‘Commercial Loans By Collateral ever Casi sectis, auement acquisition of TCB, owners ‘2 © Commercial loans represent 23.1% of the total loan portfolio. © Total commercial loan growth year-over-year of 40% driven by regional growth in New Orleans and Dallas Fort Worth and
Slide 23: Loan Composition: Commercial Real Estate
LOAN COMPOSITION: COMMERCIAL REAL ESTATE ") ome Producing 2 err Pate os a Btn Te ewe am FS tex [pptesuey oe pita 2% [Bl oreegeee nants ‘nom [Ehen cnresen come 40% [hse content ORE 108 [crews contcin Fest od leon comet oe [crews constr tennis fay =™ [Elcom Contctn-Oter 27%, (fete Reatote a] (Gomes Co
Slide 24: Sectors in Focus: Industry Composition
SECTORS IN FOCUS: INDUSTRY COMPOSITION Retail, 11.0% Oil and Gas, 4.9% Hotel and Motels, 3.7% Food and Drink Services, 3.4% Other Hospitality, 1.4% All Others, 75.6% Outstanding % of Total Average 5 Loans Loan Size Meee Ne Retal 11.0% $903. $53 0.01% il & Gas 49% $498. $65 053% Hotels and Motels $19
Slide 25: Liquidity and Deposits
LIQUIDITY AND DEPOSITS ") Liquidity Sources FHLB Borrowing Capacity $1,194 Unonomnn eran Securities $ 579° Cote deposits (excl, jumbo CDs) represent 95.8% of total deposits Cash Reserves $ 165 Fed Funds Lines Available $ 154 + >$2.4 billion in liquidity available FRB Discount Window” $ 350 Total $2,
Slide 26: Securities Portfolio
SECURITIES PORTFOLIO, * Portfolio's main purpose is to serve as a source of ‘on balance sheetliquidity. * 100% of securities are classified as available for sale (AS), * $9677 million in securities AFS, primarily concentrated in agency, mortgage-backed securities (MBS) and municipal securities. - 20
Slide 27: Appendix
e BUSINESS FIRST APPENDIX
Slide 28: Historical and Pro Forma Capital Ratios
HISTORICALAND PRO FORMA CAPITAL RATIOS ") TCE / TA (Consolidated Hold Co.) RAIA RAW pW pie 6poRE ae. TS | tier 1 Leverage Ratio (CBLR) TT Raye mae eve mpiei 6pone Tier 1 Risk-Based Capital Ratio HT Raine repwis pie upiAI 6poRe | HN Rare apie meie npiet spon creas
Slide 29: Pro Forma Capitalization Table: Consolidated Holding Company
PRO FORMA CAPITALIZATION TABLE: CONSOLIDATED HOLDING COMPANYS) [ s2sommProceeds | S50.0MM Proceeds common Equty Before Aastments S$ SAS $ 4540 § 485450 Less Goodwil&rtangte Asses, Net ‘oss ‘08935 fas ee5 Less Uneaized Gas /(Losses) (270) (272) fox) ‘Common Equity Ter 1 5 waz § Peres 404.244 ‘st Pref
Slide 30: Pro Forma Capitalization Table: Bank-Level
PRO FORMA CAPITALIZATION TABLE: BANK-LEVEL ") ret Forma 6/50/22 Bank-Level Capital As sum ["s25.0MM Proceeds | $50.0MM Proceeds | ‘Common Equity Before Adjustments 548,408 $ 973,408 $ 598,408 Less: Goodwill & intangible Assets, Net 103,935, 103,935 103,935 Less: Unrealized Gains / (Losses) (67.588)
Slide 31: Double-Leverage and Interest Coverage
DOUBLE-LEVERAGE AND INTEREST COVERAGE ") ‘ea nastnent Susidaes a ee oting Company Total Eat ee Dobie Leverage Reto ese tr tae eters me ffs mse sms 8 serrate ett imate ase 13 red nd 2 : e ane se Otero 2 os so a so TolOctiteretxpenee vPrieredoiident $4863 4a2 $186 + ams a@ Total Deposts interest Expen
Slide 32: Historical Financial Summary
HISTORICAL FINANCIAL SUMMARY le For the Fiscal Yoo Endod Decombor 31 10 Tair 218 2018 200 ma m2 Peatance Shoot & Capital ToualAssets $1921256 $2094096$2273895. $4160.50 4726378 $5.500389 Gross Loans (Exc! HFS) 75284 128469 «4710265 «2.991355 3.189608 4.113.726 Deposits sosssa2 sang 472010316679 kar7
Slide 33: Commercial Real Estate - Historical Performance
COMMERCIALREAL ESTATE - HISTORICAL PERFORMANCE Q416 = Qst7 448 419 420 a4'24 222 [Constrxton- 1-4 Family Resident S 968 S$ 37565 S$ 56485 S$ GOTH S GBS SB S 118705 loner Const Development, Vacant Land & Lots 6174 105975556 te 40 AAS. 523685 Total Construction 34425 143.505 0S 244.81 an.0gs a2 AAS %6
Slide 34: Oil and Gas Lending - Historical Performance
OILAND GAS LENDING -HISTORICAL PERFORMANCE Q416 447 «Q448 449 |Upstream S$ 1439 $ 17,742 $ 12530 $ 9639 [Midstream 35,024 25,490 18,148 6518 [Downstream 11,766 10,144 8578 4511 |Support / Services 73142 70,765 86,802 T1224 |Total Energy Exposure $ 134323 $ 124,140 $ 126,058 $ 97,888 '% of Total Loan
Slide 35: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (cortton ona omargcete Stn Open nace Ent lame Teneo Paraty Aenasorneseoese megs Netiteest Margin exuding oan discount retin s ums ws cas s s s s 3 3 3 “ees S sees H oes 3 5 5 s s ams ms ms m s ws ms 2s ms - 3 3 “os ns dons am 3 BS Ss ams Ms 6 3 3 3 ams s
Slide 36: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ‘TCEITA, TEVPS az | as2 | ast | ar | azz Tangible Common Equity / Tangible Assets: ‘Tangible Common Equity Total Shareholders Equity $ 431,006 $ 430,221 $ 433,268 $ 456,837 $ 445,459 Adjustments: Goodwill (60,062) (60,062) (69,894) (69.911) (88,842) Gore
Slide 37: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ") ‘TCE/TA, TEVPS 2017 2018 2019 2020 2021 ‘Tangible Common Equity / Tangible Assets: Tangible Common Equity Total Shareholders’ Equity S$ 179935 $ 260058 $ 285,097 $ 409.963 $ 433,268 ‘Adjustments: Goodall (6824) (49,488) (48,495) (63,862) (59,894) Core
Slide 38: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ") Core Efficiency Ratio az2 | sz | asat | ar | azz i 1231/2020 12/31/2021 Core Efficiency Ratio: Noninterest Expense $ 90,905 $ 29.567 $ 30098 $ 33,720 $ 36397 $ 100,993 $ 117,081 Core Adjustments, S$ (1,032) $ (256) $ (228) $ (1,042) $ (978) $ (9.630)
Slide 39: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Core Pre-tax, Pre-provision Earnings az'24 0321 as21 at'22 o7'22 Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earings S 24205 $ 14075 $ 15904 $ 12651 $ 20,188 ‘Adjustments Sale of impaired Credit $ - $ -$ - $ - $ - (GainyLoss Former Bank
Slide 40: Contact Information
CONTACT INFORMATION ") Greg Robertson, EVP, Chief Financial Officer Email: gregory.robertson@bibank.com Phone: (337) 852-9075 Matt Sealy, SVP, Director of Corporate Strategy and FP&A Email: matt.sealy@bibank.com Phone: (501) 920-6612
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