Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q1 2023 Earnings Presentation
37 slides from Business First Bancshares's earnings presentation, Apr 27, 2023
Slide 1: Business First Bancshares Q1 2023 Results
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 Q1 2023 Financial Results Stable Credit Performance. Yield/Rate Analysis Loan Portfolio Oper
Slide 3: Legal Disclosures
LEGAL DISCLOSURES ") ‘Special Note Concerning Forward-Looking Statements This investor presentation contains “forvarcHocking statements” within the meaning of Section 27A of the Securities 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 beliefs and values, which dhive all decisions Imespective of our goals, strategies, or extemal factors. The: are more than guides for making busine: jons; they are the core of our culture, driving our day-to-day interactioi en ‘emp
Slide 5: Social Impact
SS as a SOCIAL IMPACT biCOMMUNITY b1 FOUNDATION Volunteer Hours Project REACh
Slide 6: Business First Bancshares, Inc. Overview
BUSINESS FIRST BANCSHARES, INC. OVERVIEW e Company Overview Ticker: BFST (Nasdaq) Market Capitalization: $424 million (as of March 31, 2023) Headquarters: Baton Rouge, Louisiana Franchise Highlights: Diversified commercialtocused bank with $6. billion in assets and operations inLouisiana, Texas, and
Slide 7: Executive Management
EXECUTIVE MANAGEMENT Gregory Robertson EVP, Chief Financial Officer Age5t Yeur Started st FST: 2011 Your Start st BFST: 2022 Jesse Jackson eve, Financial Irtitutors Group Age? Yew Stated st BFST: 2020 Jude Melville Dirnctor, Prasdert and CEO Aged Yeu Stated st BFST: 2006 Philip Jordan EVP, Chief Ban
Slide 8: Recent Corporate History: Significant Milestones
RECENT CORPORATE HISTORY: SIGNIFICANT MILESTONES ") ca + pend loka DH, TXaten + SalnagedSr Ommprfordseckteing 302 + aued2.smileehancfconmen scthout pking ind Q22 aS 2c Tv queedSmahShelr ie den MS * Oped hala DPW etn + SutomangedS$25 on ocd cnr * PPP an nlct S34 mia + tari omidcnNow sam LA [ 2020 a g
Slide 9: bIBANK Deposit and Liquidity Profile
bIBANK DEPOSIT AND LIQUIDITY PROFILE e Deposit and Liquidity Postion (as of 3/31/23. unless otherwise noted) = eee renner eee tl 31K | ~21% Uninsured bIBANK deposits / Uninsured bIBANK deposits, net of pledged and letters of credit (® of total deposits) #) ES EEE eTE aes rane ees 1O4months (-87 yeor
Slide 10: Deposit Growth Through Organic and M&A Strategy
DEPOSIT GROWTH THROUGH ORGANIC AND M&A STRATEGY ") Deposit shategy reflects consistent organic growth, augmented with opportunisic M&A Total deposit CAGR of ~26% since Q4'15 pore enn al Organic deposit CAGR of ~16% since Q4'15 (excluding acquired deposits)(2) * Acquired Pedestalond $1.28in totaldepo
Slide 11: Liquidity and Deposits
LIQUIDITY AND DEPOSITS ") © Core deposits (excl jumbo CDs and Brokered FHLB Borrowings Capacity $ 1,357 Deposits) represent 88.43% of total deposits CHEERED ES SEM = 4 ® Utilized $310.0 million of Bank Term Funding Cash Reserves & Fed Funds Sold $ 264 Program availability to strategically reduce the
Slide 12: Securities Portfolio
SECURITIES PORTFOLIO be AFS 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 35.1% (AFS). * $990.8 million in securities AFS, primarily concentrated in agency/treasuries, mortgage- backed
Slide 13: Balanced Footprint
BALANCED FOOTPRINT, ")
Slide 14: Optimizing Branch Network and Infrastructure Investments
OPTIMIZING BRANCH NETWORK AND INFRASTRUCTURE INVESTMENTS lo © x © fintstagne x tmes Rese 2 Ee ee 9 fescasan x tose - 6 x December 31,2014 March 31, 2023 6 58 13 st Locations ([// TTT Added MEE closed or Sold Locations 48 acquired Banking Centers efi ¥ 4 De Novo Banking Centers }Y 6 De Novo LPOs (3 L
Slide 15: Smith Shellnut Wilson (SSW)
SMITH SHELLNUT WILSON (SSW) ") SMITH SHELLNUT WILSON ‘820k AUM el bIBANK) De wIBANK 7,000 Non-Bank AUM © April, 2021 ~ Smith Shellnut Wilson, LLC (SSW) was acquired by $6,192 $6,248 BIBANKand operates as a wholly-owned subsidiary of bIBANK. 1,059) 1,049] 595] — Remaining 53% of AUM fees are comprise
Slide 16: Financial Results
es BUSINESS FIRST Financial Results
Slide 17: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS Gross Loans (Excl. HFS) $4,803.1 4% 28% ACL + Fair Value Discount on Acquired Loans S649 6% 13% Investment Secunties $903.9 1% 6% Deposits $4,806.2 0% 3% Borrowings $8520 $2919 sea25 Total Equity $597.7 3% 31% ‘Organic loan growth of 4.27% for the quarter ied by the DFW (53.
Slide 18: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS le Forthe Quarter Ended, asm me em ema _ 3a Ded Earns per Connon Stare 05t $067 061 set soa ROM Os % 112% «086% 1k ROACE 1073 1355 237 2B 798 NetitrestMargn 375 405 401 309 355 Efceney Rao” ez 5960 e547 42 7287 Profitability Netincome Avalatleto ConmanSharetokersn mins
Slide 19: Stable Credit Performance
STABLE CREDIT PERFORMANCE ") Past Due Loans( Nonperforming Loans'®) 022% 1022 2022 302 4022 1023 1022 2022 3002 4022 1023 ‘mm Past Due Loans toTotal Loans —Peer Average © Past Due Loans ‘mm Nonperforming Loans to Total loans —Peer Average © NPLS ACL & FV Discount") Net Charge-offs 0.05% 0.03% 6 0.00
Slide 20: Yield / Rate Analysis
YIELD / RATE ANALYSIS 6.00% 5.00% 4.00% 3.00% om 2.30% 2.00% 157% 1.00% 050% 0.32%: 0.54% oom 221% ar 22 322 aa ars Nm t= NIM ex. Accretion” —e— Cost of int. Bearing Deposits —e—Total Cost of Deposits =e Loan Yield (excl. SBA PPP) —O— Target Fed Funds Rate ty
Slide 21: Loan Portfolio Overview - Repricing Opportunity
LOAN PORTFOLIO OVERVIEW - REPRICING OPPORTUNITY ") Loan Portfolio HF Floating Rate Loans Set to Repri 44.3% of total loans HFl are floating / = = variablerate or fixed ip rate maturing within 2 the next 3 ‘12-months “ uy 97.8% ofall floating 3 rate loans would = reprice immediately 3 with another +0
Slide 22: Loan Portfolio
es BUSINESS FIRST Loan Portfolio
Slide 23: Loan Composition
LOAN COMPOSITION Loan Composition by Region 000 4500 102% 4000 ee 26.7% 3000 2500 144% pis 127/317 1/34/18 12/34/99 12/94/20 2/BH/21_—12/34/22_—_—03/34/23 ‘Capital North Louisiana mSouthwest Lousiana mBayou Greater New Orleans Dallas = Houston 1Q23 Loan Growth Waterfall 6 2 en su 7 a Sa 2208! pric a
Slide 24: Loan Composition
LOAN COMPOSITION lo Consumer & farmland, ‘Home Eauty COMMERCIAL ‘other, 23% toons, 20% Outstanding: $1.18 billion rey Commerc, Unfunded: $537 million Dae 245% Average Loan: $311 thousand NPL 0.36% 1-4Famiy, 38% $53 million Average Loan: $742 thousand NOOCRE NPL 0.37% Outstanding: $1 bition Unfunded:
Slide 25: Loan Composition: Commercial
LOAN COMPOSITION: COMMERCIAL Commercial Loans By Collateral Agricultural, cashysecurties, 2.7% \ ane : Inventory cota max 18% ‘aiLother, 25.9% Equipment, BAK Worth and the acquisition of TCB * Commercial loans represent 24.5% of the total loan portfolio * Total commercial loan growth year-over-year
Slide 26: Loan Composition: Commercial Real Estate
LOAN COMPOSITION: COMMERCIAL REAL ESTATE ") [Dpmcensicaerstcn-cone am [Dprscenatcormcten- en ore ne (Biber const Fatt om [Doerr contin 088 2% [Drees cost Assmann amy 10.9% a
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, 74.2% Retail, 12.2% Oil and Gas, 4.2% Hotel and Motels, 4.4% Food and Drink Services, 3.3% Other Hospitality, 1.8% Outstanding’ Total Average past Due $ Past Due NPL$ = NPL% Balance Loans _Loan Size Retail $586,836, 122% $965, $131 0.02% $896 0.15%
Slide 29: Appendix
es BUSINESS FIRST APPENDIX
Slide 30: Historical Financial Summary
HISTORICAL FINANCIAL SUMMARY ") For the Fiscal Year Ended December 31, yro 2018 2019 2020 2021 202 2023 Balance Sheet & Capital | Total Assets $2,094,896 $2.273.835 $4,160,360 $4,726,378 $5,990,460 $6,289,981 Gross Loans (Exel HFS) 1,528,469 4,710,265 2,991,355 3,189,608 4,606,176 4,803,060 Deposits
Slide 31: Commercial Real Estate - Historical Performance
COMMERCIALREAL ESTATE - HISTORICAL PERFORMANCE Q417 418 Q4'20 Q4'21 Q1'23 [Construction - 1-4 Family Resident S 37565 $ 56485 $ G780 $ 68503 $ 861 $ 10069 $ 115442 |Other Const, Development, Vacant Land & Lots 105970 155569 183401 -934,562 457.667 612.445 TEAS Total Construction 149,595 «211,054 244
Slide 32: Oil and Gas Lending - Historical Performance
OILAND GAS LENDING -HISTORICAL PERFORMANCE le Q417 lUpstream $17,742 $s $ $s |Midstream_ 25,490 6518 S$ 1.609 $ $s |Downstream 10,144 4511 $ 467 $ 5 |Support / Services. 70,765 T1221 $ 202710 $ s |Total Energy Exposure $124,140 S$ 97,888 $ 207,151 $ s % of Total Loans 127% 57% 7.6% % of Total Bank C
Slide 33: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 2018 2m] ami | zz ar | cn | arm | arz | ara Core Net Income: Nacome S Mons 2725 mex s mis Bus 5 a7 s mrs 1380s wes 1ae75 ‘ais ments: ‘Selec mpared Crest so @s ms - 5 -s - 8 G =O S65 56) = Ineurance Rembusermantetstom experts, ret 3 rr ary =e es see Empby
Slide 34: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ") ar22 | az22 | as22 Q4'22 anz3 Tangible Common Equity / Tangible Assets: Tangble Common Equty Total Shareholders’ Equity $ 46,837 $ 445,459 $ 508,002 $ 580,481 $ 507.690 Preferred Stock - = (72.010) _(71,930) _(71,930) Total Common Shareholders’ Equity
Slide 35: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES » ‘TCEITA, TBVPS 2018 Tangible Common Equity / Tangible Assets: Tangible Common Equity 2019 2020 2021 2022 Total Shareholders! Equty S 260058 $ 285097 $ 409963 $ 433368 $ 580,481 Preferred Stock - - - - 71.930) Total Common Shareholders’ Equity _S__ 260,
Slide 36: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ") ‘Core Efficiency Ratio Q1'22 Q2'22 Q3'22 Qa'22 Q1'23 42/31/2021 12/34/2022 Core Efficiency Ratio: Noninterest Expense $ 33,720 $ 26,397 $ 40946 $ 38,346 $ 38,679 $ 117,061 $ 149,409 Core Adjustments $ (1,042) $ (978) $ (3,521) $ (138) $103) $ (2,071)
Slide 37: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earnings Adjustments: Sale of Impaired Credit (Gain)/Loss Former Bank Premises & Equipment (Gainy/Loss on Sale of Securities (Gainy/Loss on Sale of Banking Center Occupancy and bank premises- h
Business First Bancshares — Q1 2023 Earnings Presentation on 6ix