Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q3 2021 Earnings Presentation
32 slides from Business First Bancshares's earnings presentation, Oct 21, 2021
Slide 1: Business First Bancshares Q3 2021 Results
Slide 2: Table of Contents
TABLE OF CONTENTS Legal Disclosures Guiding Principles Business First Bancshares, Inc. Overview, Q3 2021 Results Financial Data Stable Credit Performance. Yield/Rate Analysis Loan Portfolio. Liquidity and Deposits. Securities Portfolio Appendix
Slide 3: Legal Disclosures
LEGAL DISCLOSURES Special Note Concerning Forward-Looking Statements This investor presentation contains “forwarcklooking statements” within the meaning of Section 27A of the Securities Act and Section 21 of the Exchange Act made pursuant to the safe harbor provisions of the Private Securities Litig
Slide 4: Legal Disclosures: Additional Information and Where to Find It
LEGAL DISCLOSURES le Additional Information and Where to Find it This presentation does not constitute an offer to sell or the solicitation of an offer to buy any securities of a solicitation of any vote or approval with respect to the proposed transaction between Business First and Texas Citizens B
Slide 5: Guiding Principles
GUIDING PRINCIPLES bIBANK five guiding princi making busine 1 driving day interact y and with our client act on the communities BEST-IN-STATE Powered by STATISTA IN BATON ROUGE
Slide 6: Business First Bancshares, Inc. Overview
BUSINESS FIRST BANCSHARES, INC. OVERVIEW Company Overview Ticker: BFST (NASDAQ) Market Capitalization: $477 million (as of September 30, 2021) Headquarters: Baton Rouge, Louisiana Franchise Highlights: + Loan growth of $211 million in 3021 + #1 deposit market share in Louisiana for Louisiana-headqua
Slide 7: Executive Management
EXECUTIVE MANAGEMENT 0 Jude Melville Director, President and CEO Age: 47 Year Started at BFST: 2006 Philip Jordan EVP, Chief Banking Officer Age: 49 Year Started at BFST: 2008 Keith Mansfield EVP, Chief Operations Officer Age: 45 Year Started at BFST: 2016 Mark Folse Director, EVP and ChieF Risk Off
Slide 8: Business First Q3 2021 Results
8 BUSINESS FIRST Q3 2021 Results
Slide 9: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Change vs For the quarter ended. 9/30/2021 9/30/2020 93°21 Highlights = Gross loans increased $211.4 million, or 7.4% (29.6% annualized) attributable to loan origination in ‘our commercial and nonfarm, nonresidential real forces, Eoates (ExcDHbS) 33.0862 Ve estate portfolios
Slide 10: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS » Diluted Earnings per Common Share ROAA ROAE Net Interest Margin Efficiency Ratio Profitability Core Pre-Tax, Pre-Provision Income” in millions Core Diluted Earninas Per Common Share") Core ROAM" Core ROAE" Net interest Margin excluding loan discount accretion!’ Core
Slide 11: Stable Credit Performance
STABLE CREDIT PERFORMANCE Past Due Loans!) Nonperforming Loans‘) 0.90% oa, 0.45% 0.35% os ® ®@ 2 3020 4020 1021 2021 3021 3020 4020 021 2021 3021 sm Past Due Loans to Total Loans. —=Peer Average © Past DueLoans __miamiNonperforming Loans to Total Loans Peer Average © NPLs ALLL & FV Discount) Net Cha
Slide 12: Yield / Rate Analysis
YIELD / RATE ANALYSIS 6.00% 5.65% 5.59% —= 5.13% 5.11% 5.00% 4.26% 4.23% 4.06% oe 3.8; a 3.99% 3.81% aos Epes : 3.56% 3.00% 2.00% 1.00% 0.65% Bite 0.50% 0.49% 0.48% en ooo ae — —— 0.25% apes 0859 0.25% 10.25% 0.25% 93°20 24'20 v2 zi 221 Nm NIM ex. accretion” = Cost of int. Bearing Deposits Total Cos
Slide 13: Loan Portfolio Overview - Repricing Opportunity
LOAN PORTFOLIO OVERVIEW - REPRICING OPPORTUNITY le Loan Portfolio HFI (DAI Floating Rate Loans an longest Acie Boone agg, sang S008 | a | | | 425bps —+50bps_ © +7Sbps —+100bps > +100bps ‘Assumed Shift in Interest Rates 46.9% of all loans HFI (excl. PPP) are floating/variable rate or fixed rate matur
Slide 14: Operating Loan Growth
OPERATING LOAN GROWTH Loan Composition by Region 3500 3,000 19.6% 2,500 13.7% 2,000 12.6% 41,500 18.7% 4,000 19.2% 500 16.2% ° 12/31/16 12/31/7 12/31/18 12/31/19 12/31/20 09/30/21 Capital mNorth Louisiana mSouthwest Louisiana mBayou — Greater New Orleans Dallas YTD 2021 Loan Growth Waterfall! ] san
Slide 15: Loan Composition
LOAN COMPOSITION Farmland, Home Equity Consumer & 2.8% Loans, 2.6% Other, 3.4% Multi-Family, comes tc) 23.3% 1-4 Family, 126% ‘oocrE, 188% Construction & Land, 15.2% NOOCRE, 17.7% () Partch enc nonaceral an amounts eaclice pucharad inpie! eas even Heonlactualy pt cue oF he Company does noteapect to
Slide 16: Loan Composition: Commercial
LOAN COMPOSITION: COMMERCIAL ‘Commercial Loans By Collateral ‘Agricultura, 63% Cash/Securities, 10.0% Titled Collateral, 128% all other, 19.1% 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% C&l loans increased $62 million (9.4%) in3@21 Weighted average maturity of Commercial portf
Slide 17: Loan Composition: Commercial Real Estate
LOAN COMPOSITION: COMMERCIAL REAL ESTATE le CRE Conpostion - Owner Occupied CRE Conpastion Income Producing 13.6% 276 95% 53% nsx, 16.0% 314% 26% es 410% 207% CAD Porto ‘Qurer Occupied CRE Perot Income Producing CRE Parfato eo a 21% ieantaat 120% [[ivecareRestntat Lots ase — [otce suiting 100% — [os
Slide 18: Sectors in Focus: Industry Composition
SECTORS IN FOCUS: INDUSTRY COMPOSITION Retail, 10.2% Oil and Gas, 6.1% Hotel and Motels, 3.4% Food and Drink Services, 2.9% Other Hospitality, 1.1% All Others, 76.3% Outstanding —% of Total Average Loan portfolio sectors of internal focus determined by current market conditions * Oil & Gas volatilit
Slide 19: Sectors in Focus: Oil and Gas Lending
SECTORS IN FOCUS: OILAND GAS LENDING Oil and Gas Loans By Function Construction, 9.1% Repairs & Maintenance, 16.6% Other, 10.9% Manufacturing, 12.4% Transportation, 18.3% Professional — Services, 17.9% Sales an Rental, 14.99% Outstan f of Total Oil & Gas portfolio concentration continues to decrease
Slide 20: Sectors in Focus: Retail Lending
SECTORS IN FOCUS: RETAILLENDING Retail Retail non CRE, 11.4% Single Tenant, Performance continues to remain stable 51.7% quarter over quarter Multi-Tenant, 36.9% No significant concentrations across the portfolio Outstanding % of Total Average pt Duel) past Due% NPLS" — NPL% Balance Loans _ Loan Siz
Slide 21: Sectors in Focus: Hospitality Lending
SECTORS IN FOCUS: HOSPITALITY LENDING Hotels and Motels Food and Drink Services Bars, Taverns, NonFlagged Pubs, 3.2% Caterers, 0.2% Hotels & Motels, Restaurant Suppliers, 2.7% acct pe Full-Service Restaurants, Short-Term, ea Stay/Bed & Breakfast, 9.7% Flagged Hotels. and Motels, ue 76: coe Restauran
Slide 22: Liquidity and Deposits
LIQUIDITY AND DEPOSITS le © Core deposits (excl. jumbo CDs) represent 92.1% of daidlawests 4 FHLB Borrowings Capacity $ 924 © $571.2 million, or 80.2% of total CDs, will reprice Unencumbered Securities $ 699 within the next 12 months®), providing opportunity Cash Reserves $ 86 to further reduce cost
Slide 23: Securities Portfolio
SECURITIES PORTFOLIO . ® Portfolio's main purpose is to serve as a source of Us. government on balance sheet liquidity ES Secures 43% Municipal Securities, 34.8% * 100% of securities are classified as available for sale (AFS) * $930 million in securities AFS, primarily concentrated in agency MBS and
Slide 24: Appendix
8 BUSINESS FIRST APPENDIX
Slide 25: Historical Financial Summary
HISTORICAL FINANCIAL SUMMARY For the Fiscal Year Ended December 31, YTD 2016 2017 2018 2019 2020 2021 Balance Sheet & Capital Lt Total Assets $1,105,841 $1,321,256 $2,094,896 $2273835 $4,160,360 $4,405,217 Gross Loans (Excl. HFS) 810,951 975.284 1,528,469 1,710,265 2,991,355 3,066,236 Deposits 932,7
Slide 26: Commercial Real Estate - Historical Performance
COMMERCIALREAL ESTATE —- HISTORICAL PERFORMANCE Q417 Q3'21 [Construction - 1-4 Family Residential S 25032 29683 S 37565 $ 55485 S$ 60,780 S$ 68503 $ 83311 Other Const, Development, Vacant Land & Lots 72,840 64,742 105,970 155,569 183,401 334,562 381497 [Total Construction 97872 94,425 143,535 211,05
Slide 27: Oil and Gas Lending - Historical Performance
OILAND GAS LENDING -HISTORICAL PERFORMANCE Q415 Q416 Q417 Q418 Q419 Q4'20 Upstream $ 13878 $ 14,392 $ 17,742 $ 12530 $ 9639 $ 2,305 $ 1,327 Midstream 17,422 35,024 25,490 18,148 6518 $ 1,669 $ 4,100 Downstream 14,248 11,766 10,144 8,578 4511 $ 467 $ 76 [Support / Services 79,313 73,142 70,765 86,802
Slide 28: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ‘Core Net Inoorre, ROAA, NIMexcluding loan discount accretion a6 [| oe [29 | aa Masa | ors [orn | aa | as enittioes Natname Sins ams tamer s mares 2m 5 gms BEM Ss eas Tass foam Adustments”: ‘Sale oflmpaired Credit s - S$ (1815) $ es (2) $ a s ae - $s - $
Slide 29: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TCE/ TBI Q3'20 Q4'20 Qt'21 Q2'24 Q3'21 Tangible Common Equity / Tangible Assets: Tangible Common Equity Total Shareholders’ Equity $ 398,086 $ 409,963 $ 416,701 $ 431,006 $ 430,221 Adjustments: Goodwill (63,627) (63,862) (53,753) (60,062) (60,062) Core d
Slide 30: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES CE | 2015 2016 2017 2018 2019 2020 Tangible Common Equity / Tangible Assets: Tangible Common Equity Total Shareholders’ Equity $ 112,449 $ 113,559 $ 179,935 $ 260,058 $ 285,097 $ 409,963 Adjustments: Goodwill (3,376) (6,824) (6,824) (49,488) (48,495) (63
Slide 31: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES le Core Efficiency Rat Q3'20 Q4'20 Qt'21 Q2'21 Q3'21 9/30/2020 9/30/2024 Core Efficiency Ratio: Noninterest Expense $ 26,951 $ 29602 $ 26,963 $ 31,116 $ 29.567 $ 987,646 $ 71,391 Core Adjustments $ (1,206) $ (668) $ (360) $ (1,032) $ (356) $ (1,748) $ (9
Slide 32: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earnings S$ 14198 $ 19529 $ 18421 $ 24,205 $ 14,075 Adjustments: Sale of Impaired Credit s - $ - $ - $ - $ - (Gain)/Loss Former Bank Premises & Equipment $ 635 $ (158) $ = 8 540 $ 392 (Gain)/Lo
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