Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q4 2023 Earnings Presentation
38 slides from Business First Bancshares's earnings presentation, Jan 23, 2024
Slide 1: fk
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Slide 2: Table of Contents
TABLE OF CONTENTS Legal Disclosures Guiding Principles & Social Impact Business First Bancshares, Inc. Overview, Liquidity and Deposits. Securities Portfolio Branches & Smith Shellnut Wilson, Financial Results Q4 2023 Financial Results Stable Credit Performance. Yield/Rate Analysis Loan Portfolio Op
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: Guiding Principles
GUIDING PRINCIPLES le bIBANK’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
Slide 5: Social Impact
_— Réed ) @s Texarkana. SOCIAL IMPACT bICOMMUNITY b1 FOUNDATION Project REACh
Slide 6: Business First Bancshares, Inc. Overview
BUSINESS FIRST BANCSHARES, INC. OVERVIEW Company Overview Ticker: BFST (Nasdaq) Market Capitalization: $625 million (as of December 31, 2023) Headquarters: Baton Rouge. Louisiana Franchise Highlights: 0 @ @ ® 6 Diversified commercial focused bank with $6.6 billion in assets and operations in Louisia
Slide 7: Executive Management
EXECUTIVE MANAGEMENT Gregory Robertson EVP, Chief Financial OFicer Age:52 Year Started at BFST: 2011 Jerry Vascocu EVP, Chief Administrative Officer Age: 50 Year Started at BFST: 2022 Jesse Jackson Ev, Financial Institutions Group Age: 48 Year Started at BFST: 2020 Jude Melville Director, President
Slide 8: Diversified Footprint
DIVERSIFIED FOOTPRINT ( Selicke starlone ITM tom Capone
Slide 9: Continuing to Build Franchise Value in 2023
CONTINUING TO BUILD FRANCHISE VALUE IN 2023 @ sens (eee - a 2019 2020 2021 2022 2023 Organic Loans Texas mAcquired Loans - Texas\”) ROACE® 5 -Year Average Core ROACE@of 11.46% 12.67% 12.62% 10.51% 9.01% 12.25% 8.70% 8.42% 2019 2020 2021 2022 2023 |@ROACE mCore ROACE® (Teas Cisone Bancorp in 2022 and
Slide 10: Consistently Improving Profitability
CONSISTENTLY IMPROVING PROFITABILITY e luted EPS Available to Common Shareholders 2018 2019 2020 2021 2022 2023 EPS (Core EPS" Net Income Available to Common Shareholders $66.3 $57.6 $37.5 $24.6 $16.8 fl | 2018 2019 2020 2021, 2022 2023 Net Income Core Net Income”) Note: Dallarsin millons unless oth
Slide 11: Deposit Growth Through Organic and M&A Strategy
DEPOSIT GROWTH THROUGH ORGANIC AND M&A STRATEGY le * Deposit strategy reflects consistent organic growth, augmented with opportunistic FT RERWEEITSUS CHESTAGPS SITTIN M&A in totaldepositsin 2 + $304M organic growth in total * Total deposit CAGR of “25% since Q415 depositsin 202218 Organic deposit CA
Slide 12: Proven M&A Track Record
PROVEN M&A TRACK RECORD e BFST has a proven M&A track record and has successfully closed and integrated five whole-bank acquisitions and one non-bank RIA acquisition since 2015, + $546MMin assets Average time-to-close of 149 days (announcement to close) for BFST compares oe ; favorably to industry a
Slide 13: Liquidity and Deposits
LIQUIDITY AND DEPOSITS . iq! Sources FHLB Borrowings Capacity $ 1,239 Unencumbered Securities $ 226 Cash Reserves $ 187 Fed Funds Sold $ 151 Fed Funds Lines Available $ 145 BTFP Availability $ 33 FRB Discount Window $ Total $ 3,021 Deposit Composition NOW &In. Being DOA Hl iaioa & soirgs [itive bere
Slide 14: Securities Portfolio
SECURITIES PORTFOLIO e * Portfolio serves as a source of on-balance sheet liquidity and provides interestincome stability during times of declining rates. In December, the Bank executed a modest repositioning of the portfolio, selling approximately $70 millionin lower yielding (average book yield of
Slide 15: Optimizing Branch Network and Infrastructure Investments
OPTIMIZING BRANCH NETWORK AND INFRASTRUCTURE INVESTMENTS le x breANK (Onertc /De Now) fichiond Pd a || ee = e a [american Geteway le ra lal 4 (6 active / 4closed) 17 active / 1 Sod / 4 closed!) [winder fexcs Gtzene ; ee | er - = [Closed $01, or Constr [oon Rodiclon Ofice & [aiegney /8acqueed/ | 9K]
Slide 16: Smith Shellnut Wilson (SSW)
SMITH SHELLNUT WILSON (SSW) SMITH SHELLNUT WILSON wiBANK April 1, 2021— Smith Shellnut Wilson, LLC (SSW) was acquired by b1BANK and operates as a wholly-owned subsidiary of bIBANK SSWis a Mississippiimited liability company and registered investment advisor, with its principal office located in Ridg
Slide 17: Financial Results
8 BUSINESS FIRST Financial Results
Slide 18: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS . Diluted Earnings per Common Share ROAA ROACE, Net Interest Margin Efficiency Ratio” Profitability ‘Core Diluted Earnings Per Common Share! Core ROA ‘Core ROACE"” Net Interest Margin excluding loan discount accretion”) Core Efficiency Ratio” Net Income Available to Co
Slide 19: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS ") Change vs. For the quarter ended, $ millions 42/31/2023 9/30/2023 12/31/2022 Q4°23 Highlights ‘Organic loan growth of 1.47% for the quarter (5.85% Annualized) led by C&l ($23.5 million) and CRE ($89.4 Gross Loans (Excl. HFS) $4,992.8 1% 8% million). Year-over-year loan gr
Slide 20: Stable Credit Performance
STABLE CREDIT PERFORMANCE le Past Due Loans'”?) Nonperforming Loans” SOO} ee fmm Past Due Loans to Total Loans <=mePeer Average @ Past Due Loans fmm Nonperforming Loans to Total Loans ===Peer Average © @ NPLs ® FY 2023 consolidated total NCOs/ average loans of 0.11% was impacted by the adoption of C
Slide 21: Yield / Rate Analysis
YIELD / RATE ANALYSIS 7.00% 6.84% 6.87% 6.54% 6.34% 6.09% 6.00% 5.50% 5.50% 5.25% oe ee = se 5.00% See = 5.00% Sees 450% = — pee pasate 3.55% 3.50% 3.00% 2.64% 2.00% 1.00% 0.00% aa'22 ans 223 03°23, 08'23 nm = NIM ex. Accretion” cost of int. Bearing Deposits —=f=Total Cost of Deposits =e Loan Yield
Slide 22: Loan Portfolio Overview - Repricing Opportunity
LOAN PORTFOLIO OVERVIEW - REPRICING OPPORTUNITY Loan Portfolio HFI ‘Ouitanding Balance __ Weighted SMM) (%ofTotal) _ Avg. Rate [Dlpestote icons rowre> tye) $2717 ARR lente ieee eS same roatngrate with Ros cos ek gam [Brooms tote witnout roors a [Bh eitte rate Loons v2 ames Total ¢_smoa woos sae * 34
Slide 23: Loan Portfolio
8 BUSINESS FIRST Loan Portfolio
Slide 24: Loan Composition
LOAN COMPOSITION Loan Composition by Region 5,000 9.6% 4500 4000 es 27.5% 3500 3,000 15.3% 2,500 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20. 12/32/21 12/31/22 12/31/23 ‘Capital m North Louisiana m Southwest Louisiana m Bayou Greater New Orleans ® Dallas ® Houston FY 2023 Loan Growth Waterfall $165
Slide 25: Loan Composition
LOAN COMPOSITION le Total Loan Portfolio Composition Top 5 Exposure Categories Consumer & Farmland, Home Equity Other, 2.7% x ns, 2 er, 4.6% | Loans, 2.0% Commercial, 25.8% ‘Multi-Family, | 2.2% | Outstanding Unfunded = Average_-—NPLa‘%of 1-4 Family, 9.5% Balan Commitment __Loan Si Total Loans Comme
Slide 26: Loan Composition: Commercial
LOAN COMPOSITION: COMMERCIAL le Commercial Loans By Collateral Commercial Loans By Region ricultral Capek Houston, 10.0% Cash/ Securities, 10.0% southwest Louisiana, AR & Inventory, 6.8% ‘DFW, 31.3% 36.5% Titled Calateal, el Greater Now Orleans, 10.1% Capital 14% All other, 27.7% Equipment North Lou
Slide 27: Loan Composition: Commercial Real Estate
LOAN COMPOSITION: COMMERCIAL REAL ESTATE e CRE Composition - Owner Occupied (C&D Composition CRE Composition - Income Pro A oma — gretismnoia ype = en P| ae fi | oo an HES sa Peeree ae 2 Bp teen nates ax ex ee ons [Epeeeecenctn- oe a ee fame Eo sree = [Epcot conten tovcone = 1 mere ne [pores concen
Slide 28: Loan Composition: Office Lending by Geography
LOAN COMPOSITION: OFFICE LENDING BY GEOGRAPHY Office C&D by Geography" - A) ottce cantth2) fore Bisecre x pO Er y Biscutn x ae 7M aan 3669.5MM ose L_ Miaston a 1 Total C&D BS CAD [Bison antorio x 1058 ms tateyete LA om Omer Geoganties am sonofice | a ex ‘ Toel Offce CAD 000% Office C&D Highlights +
Slide 29: Sectors in Focus: Industry Composition
SECTORS IN FOCUS: INDUSTRY COMPOSITION Retail, 11.7% Oil and Gas, 3.2% Hotel and Motels, 4.3% Food and Drink Services, 3.3% Other Hospitality, 1.7% All Others, 75.9% Outstanding —% of Total Average stDue$ PastDue% NPL$ NPI Balance Loans __Loan Size Retail $584,108 11.7% $1,023 $6 0.00% $655 0.10% Oi
Slide 30: Appendix
8 BUSINESS FIRST APPENDIX
Slide 31: Historical Financial Summary
HISTORICAL FINANCIAL SUMMARY For the Fiscal Year Ended December 31 2019 2020 2021 2022 2023 Balance Sheet & Capital Total Assets $2,273,835 $4,160,360 $4,726,378 $5,990,460 $6,584,550 Gross Loans (Excl. HFS) 1,710,265 2,991,355 3,189,608 4,606,176 4,992,785 Deposits 1,782,010 3,616,679 4,077,283 4,8
Slide 32: Commercial Real Estate - Historical Performance
COMMERCIALREAL ESTATE —- HISTORICAL PERFORMANCE ") 7 Q418 Q419 = =Q4'20 Q4'21 Q4'22 Q4'23 |Construction - 1-4 Family Residential S 37,565 $ 56485 S$ 60780 $ 68503 $ 0861 $ 109629 $ 117.128 |Other Const, Development, Vacant Land & Lots 105,970 185,569 © 183.401 334,562 457,667 612,445 552670 Total Co
Slide 33: Oil and Gas Lending - Historical Performance
OILAND GAS LENDING -HISTORICAL PERFORMANCE Q4'21 Upstream $ $ 246 $ - $ Z Midstream s S 1,048 $ - $ 188 Downstream $ $ 7 $ 156 $ - |Support / Services S 202710 $ 182711 S$ 190,244 $ 157,698 Total Energy Exposure $ 207,151 $ 184,081 $ 190,400 $ 157,886 % of Total Loans 7.6% 5.8% 4.1% 3.2% % of Total
Slide 34: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ‘Core Net Income, ROAA NIM excluding loan discount accretion ‘219 22) 2024 m2 m2 az | am | azn | az | aez Core Net inoome: Net incame 3 BTR S m98 S$ 521 S OSS HO $F WETS TESS 1859S 19106 5 14474 ‘Adjustments: ‘Sale of mpated Credit GB fe 2 6 = 6 = 8 = §
Slide 35: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TCE/TA, TBVPS ar | ara | a3 | a2 | a2 Tangible Common Equity Tangible Assets: Tangible Common Equity Total Shareholders’ Equity S 580.481 $ 597,690 $ 600,968 $ 604,365 $ 644.259 Preferred Stock (71930) (71,930) __(71,930) __(71.930) __(71.930) Total Comm
Slide 36: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES . TCE/TA TBVPS Tangible Common Equity Tangible Assets: Tangible Common Equity Total Shareholders’ Equity Preferred Stock Total Common Shareholders’ Equity Adjustments: Goodwill Core deposit and other intangibles Total Tangible Common Equity Tangible Asse
Slide 37: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES le Core Efficiency Ratio Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 12/31/2022 12/34/2023 Core Efficiency Ratio: Noninterest Expense $ 38,346 $ 38679 $ 39,702 $ 38607 $ 39,714 $ 149,409 $ 156,702 Core Adjustments S$ (138) $ (103) $ (68) $ (2)$ (495) $ (6,679) $ (668)
Slide 38: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earnings $ 25992 $ 22,458 $ 25,582 $ 26570 $ 20,459 Adjustments: Sale of Impaired Credit s - $ - $ - $ - - (Gain)/Loss Former Bank Premises & Equipment S - $s - $ = § = 8 2 Write-Down on Former
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