Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q2 2023 Earnings Presentation
37 slides from Business First Bancshares's earnings presentation, Jul 27, 2023
Slide 1: Business First Bancshares Q2 2023 Results
Slide 2: Table of Contents
TABLE OF CONTENTS. Legal Disclosures Guiding Principles & Social Impact Business First Bancshares, Inc. Overview Deposits and Liquidity Securities Portfolio Branches & Smith Shellnut Wilson Financial Results Q2 2023 Financial Results Stable Credit Performance. Yield/Rate Analysis. Loan Portfolio Ope
Slide 3: Legal Disclosures
LEGAL DISCLOSURES ") ‘Special Note Concerning Forward-Looking Statements This investor presentation contains “forwarcHlocking statements” within the meaning of Section 27A of the Securties Act and Section 21E of the Exchange Act made pursuant to the safe harbor provisions of the Private Securities L
Slide 4: Guiding Principles
GUIDING PRINCIPLES bIBANK’s five guiding principles reflect our core nd valuies, which drive all decisions intespective of our gies, o external factors. Thes are more than guides for making busine: ions; they are the core of our uur day-to-day interactions bs and with our clientsto make a posit impa
Slide 5: Social Impact
= \ SOCIAL IMPACT biCOMMUNITY b1 FOUNDATION Project REACh Volunteer Hours
Slide 6: Business First Bancshares, Inc. Overview
BUSINESS FIRST BANCSHARES, INC. OVERVIEW » Company Overview Ticker: BFST (Nasdaq) Market Capitalization: $282 million (as of June 30, 2023) Headquarters: Baton Rouge, Louisiana Franchise Highlights: Diversified commercialtocused bank with $65 billion in assets and operations inLouisiana, Texas and M
Slide 7: Executive Management
EXECUTIVE MANAGEMENT dude Melville Director, Pras Ages48 Yeu Started st BFST: 2006 Philip Jordan Gregory Robertson regory EVP, Chief Banking Officer EVP, Chief Financial Officer Ages Yeor Stated ot BFST: 2011 Ages! Yeur Started at BFST: 2008 Saundra Strong EVP, Genural Coursl Chie Adminitrati Age50
Slide 8: Recent Corporate History: Significant Milestones
RECENT CORPORATE HISTORY: SIGNIFICANT MILESTONES . Opened 4 flavin DEW.TXIzctin © Settmonged72.0 mm prefered stckolfosingin 3Q22 used 25 illonshans of common teckthnughp wb offing indQ22 ™ AaquitedSmah Shalt Wiken, LLC clon MS * Opened hedFllserie DFW.TX beating * Seltmansged5525 mm subortad debe su
Slide 9: b1BANK Deposit and Liquidity Profile
bIBANK DEPOSIT AND LIQUIDITY PROFILE e Deposit and Liquity Position (as of 6/30/23, unless otherwise noted) : rename roomenanen ramen 2h | ~I% Uninsured bIBANK deposits / Uninsured bIBANK deposits, net of pledged and letters of credit (% of total deposits}! — Se = oeneeupe ses lO¢months (-87 years)
Slide 10: Deposit Growth Through Organic and M&A Strategy
DEPOSIT GROWTH THROUGH ORGANIC AND M&A STRATEGY ") Deposit srategy reflects consistent organic growth, augmented with opportunistic M&A Total deposit CAGR of ~26% since Q4'15, Organic deposit CAGR of ~16% since Q4'15 (excluding acquired deposits) * AequitedPedestoland $1.28in totaldepositsin 2020 +
Slide 11: Liquidity and Deposits
LIQUIDITY AND DEPOSITS \ * Core deposits (exc. jumbo CDs and Brokered HES Borrowings /Gopeckty! $ 1,399 Deposits) represent 81.16% of total deposits. Poste nee Sccurtics . a © Utilized $300.0 milion of Bank Term Funding Cash Resenes $181 Program availability to strategically reduce the cost elie) w=
Slide 12: Securities Portfolio
SECURITIES PORTFOLIO Portfolio's main purpose is to serve as a source of or-balance sheet liquidity. 100% of securities are classified as available for sale (AFS). $980.2 million in securities AFS, primarily concentrated in agency/treasuries, mortgage- backed securities (MBS), municipal securities a
Slide 13: Balanced Footprint
BALANCED FOOTPRINT ")
Slide 14: Optimizing Branch Network and Infrastructure Investments
OPTIMIZING BRANCH NETWORK AND INFRASTRUCTURE INVESTMENTS ) EB crores ° \p~& 2. 2 x O ee coo 0 Seay esi Px] fora Ik a2 a 6 e x oa * 1 Seo if 2 Cane ae xe ° 2 ° 0 8 + = a °@ Se December 31, 2014 June 30,2023 a 58 13 51 Locations [SS Added MEE closed or Sold ——=> Locations '¥ 48 acquired Banking Center
Slide 15: Smith Shellnut Wilson (SSW)
SMITH SHELLNUT WILSON 2k AUM (ox. b1BANK) aor BANK fNor-Sank AUN 3 SO IBANK, 7.000 SS © April , 2021 ~ Smith Shellnut Wilson, LLC (SSW) was acquired by SMITH SHELLNUT WILSON (SSW) ") BIBANKand operates as a wholly-owned subsidiary of BIBANK. ror ass s5si6 Aiea) ag) ie Merete ; ; saase * SSW was foun
Slide 16: Financial Results
J BUSINESS FIRST Financial Results
Slide 17: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS (Gross Loans (Excl. HFS) $4,998.7 2% 19% ACL + Fair Value Discount on Acquired Loans 628 3% 6% Investment Secures: $0778 3% 6% Deposits 5014.4 4% 2% Borowings $7942 578) $4007 Total Equity $601.0 1% 35% ‘Actual Balance Sheet Ratios, $ actual 6/30/2023 3/34/2023 6/30/2022 Tot
Slide 18: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS - For the Quarter Ende« Tn _saia_ wn _ Iw __ G20 ited Eamings per Common Share ose ROAA 091 ROACE 1073 ‘Net interest Margin 375 Efficiency Ratio” Profitability [Net income Avaiiatle to Common Shareholders in mifons Core Pre-Tar, PreProvision income"? in mitions Gore Di
Slide 19: Stable Credit Performance
STABLE CREDIT PERFORMANCE Past Due Loans') 2022 3022 4022 1023 2033 mms Past Due Loans to Total Loans —Peer Average © Past Due Loans ACL & FV Discount!?) 171% aan 2002 3022 022 1023 2023 'mACL*Discount to Total Loans QACL to Total Loans (Tati acess S04 POP be soc puted elit bets The weppcabe tal pec
Slide 20: Yield / Rate Analysis
YIELD / RATE ANALYSIS ° 7.00% 6.00% 5.00% 4.00% 88% 3.78% ‘3 3.75% 3.00% 2.00% Sis) ¢ 1.00% 0.34% 50% 00% 42.22% a2 as aa ar23 e223 Nm P= NIM ex. Accretion” —e—Cost of int. Bearing Deposits P—Total Cost of Deposits =e Loan Yield (excl. SBA PPP) —#—- Target Fed Funds Rate
Slide 21: Loan Portfolio Overview - Repricing Opportunity
LOAN PORTFOLIO OVERVIEW - REPRICING OPPORTUNITY. O 45.1% of total loans HFl are floating / variablerate or fixed rate maturing within the next 12 months 98.3% of ll floating rate loans would reprice immediately with another +0.25% shiftin interest rates fect oor motes yea) na ng sec Rote Lore rote <
Slide 22: Loan Portfolio
J BUSINESS FIRST Loan Portfolio
Slide 23: Loan Composition
LOAN COMPOSITION Loan Composition by Region 5000 4500 100% 4000 273% 3500 3,000 14.4%, 2500 2900 toes 10.6% 1.500 11900 174% au 3.3% ° 12/31/16 12/33/17 12/38/18 12/38/19 12/33/20 12/31/21 12/33/22 06/30/23 ‘= Capital a North Louisiana m Southwest Loulsiana m Bayou Greater New Orleans & Dallas = Hou
Slide 24: Loan Composition
LOAN COMPOSITION ") Consumer & Farmland, Home Equity COMMERCIAL Other, 26% 42%, Loans, 2.0% Outstanding: $1.24 bi hearrcch rcmaereraa, Untunded: $560 23% 25.4% Average Loan: $322 thousand NPL S 0.35% ‘OOCRE 1.4 Farnly, Outstanding: $897 million 95% Untundes $47 million Average Loan: $761 thousand NO
Slide 25: Loan Composition: Commercial
LOAN COMPOSITION: COMMERCIAL Commercial Loans By Collateral Agvet, cash/securtes, 5% 7% ARB oventony, Tied 297% Colter 119% ‘A other, 25.4% Equipment, 24% ‘Commercial Loans By Region Houston, 10.5% Southwest Louisiana, 69% rw, 30.8% GresterNew Orleans, 8.0% Capital, 13.6% North Louisiana, 18.9% ‘Bay
Slide 26: Loan Composition: Commercial Real Estate
LOAN COMPOSITION: COMMERCIAL REAL ESTATE » D Composition aos Gen we am ao 7 DK [Dep ececacorcten- Non OOF [Bees cancion tas [Dlewmreras comcton foe [heres otc Asserts amy [Loewen cotton one Total CaO. CRE Composition - Owmer Occupied CRE Composition - Income Producing so a. 2% 2% am AK 7 om een a [h
Slide 27: Loan Composition: Commercial Real Estate by Geography
LOAN COMPOSITION: COMMERCIAL REAL ESTATE BY GEOGRAPHY ")
Slide 28: Sectors in Focus: Industry Composition
SECTORS IN FOCUS: INDUSTRY COMPOSITION All Others, 74.5% Retail, 12.3% Oil and Gas, 4.1% a Hotel and Motels, 4.19% Food and Drink Services, 3.3% Other Hospitality, 1.8% eee oes rea ve re PastDue$ PastDue% NPL$ — NPL% Retail $604,300 12.3% = $92 $0 0.00% $862 0.14% Oil & Gas $201,678 4.1% $563 S277 0
Slide 29: Appendix
J BUSINESS FIRST APPENDIX
Slide 30: Historical Financial Summary
HISTORICAL FINANCIAL SUMMARY » For the Fiscal Year Ended December 31, yr 2018 2019 2020 2021 20m 2023, ee Total Assets $2,094.696 $2,273,835 $4,160,360 $4,726,378 $5,990.460 $6.289.981 Gross Loans (Excl. HFS) 1,528,469 4,710,265 2,991,355 3,189,608 4,606,176 4.898737 Deposits 1,733,934 4,782,010 3.6
Slide 31: Commercial Real Estate - Historical Performance
COMMERCIALREAL ESTATE — HISTORICAL PERFORMANCE - Q417 418 Q4'20 Q4'22 Q2'23 [Construction - 1-4 Family Residental S 37565 $ 55485 $ 60780 $ 68503 $ 7861 $ 1096 $ 103463 |other Const, Development, Vacant Land & Lots 105970 155569 183401334562 57.667 612445 G15 617 ‘Total Construction 143.595 211,054
Slide 32: Oil and Gas Lending - Historical Performance
OILAND GAS LENDING -HISTORICAL PERFORMANCE Q417 418 419 Q4'20 lUpstream S 1772 $ 1250 $ 969 $ 2305 § 246 S -s - Inidstream 25,490 18,148 este $1669 S 1.048 S - 5s - [Downstream 10,144 8578 451 $ 467 $ 76 $ 195 $ 108 |Support / Services 70,765 86,802 21 $2710 $ 182714 $ 190244 $ 201,570 Total Energy
Slide 33: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES =e oo Pe aan Se cere a eee a SESE aaa ee 2 er a re eee ee esa ee ec ee SS Se Se an ayes ms De See 9 PR Be Se Be Ap hah ne, Sete. 2 5) Bl Oe ee a a: Bee 6 Te ee Se ee ERs Pele Se eee ee ee ee eee ee Felines Hope 0 en ey ne ees ee ba fen nee ome BUGIS See
Slide 34: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ) ax2 | azz | ae2 | ar | azz Tangible Common Equity/ Tangible Assets: Tangbie Common Equity Total Shareholders’ Equity $ 445,459 $ 508,002 $ 580.481 $ 597,690 $ 600,968 Preferred Stock es (72.010) (71.930) (71.930) (74,930) Total Common Shareholders’ Equ
Slide 35: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES » ‘TCEITA, TBVPS 2018 2019 2020 2021 2022 ‘Tangible Common Equity / Tangible Assets: Tangible Common E: ‘Total Shareholders’ Equity S 260.058 $ 285,097 $ 409.963 $ 433.368 $ 580.481 Preferred Stock = = = - (71.930) Total Common Shareholders’ Equty _S__ 2
Slide 36: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Core Efficiency Ratio: Noninterest Expense Core Adjustments ‘Net interest and Noninterest income Core Adjustments. Efficiency Ratio Core Efficiency Ratio 36,397 (978) 86,591 64.32% 62.59% $ $ 40,946 $ 38,346 $ 38,679 $ 39,702 521) $ (138) $ (103) $_— (68
Slide 37: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earings $ 20,186 $ 20649 $ 25,992 $ 22,458 $ 25,582 ‘Adjustments: Sale of Impaired Credit s = 6 - $ os = 5 2 (GainyLoss Former Bank Premises & Equipment $s - $s - $s -_s - $s - (Gain)/Loss on S
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