Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q2 2021 Earnings Presentation
32 slides from Business First Bancshares's earnings presentation, Jul 26, 2021
Slide 1: Business First Bancshares Q2 2021 Results
Slide 2: Table of Contents
TABLE OF CONTENTS Legal Disclosures Guiding Principles Business First Bancshares, Inc. Overview Financial Data Balance Sheet Highlights Quarterly Financial Highlights Stable Credit Performance Yield/Rate Analysis Loan Portfolio Operating Loan Growth Loan Composition Sectors in Focus Liquidity and De
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 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 PLACES to WORK INBATON ROUGE
Slide 5: Business First Bancshares, Inc. Overview
BUSINESS FIRST BANCSHARES, INC. OVERVIEW le Company Overview Ticker: BFST (NASDAQ) Market Capitalization: $476 million (as of June 30, 2021) Headquarters: Baton Rouge, Louisiana Franchise Highlights: #1 deposit market share in Louisiana for Louisiana-headquartered community banks 3 DFW locations tot
Slide 6: Executive Management
EXECUTIVE MANAGEMENT 0 Jude Melville Director, President and CEO Ages 46 Year Stated 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 Offi
Slide 7: Recent Corporate History: Significant Milestones
RECENT CORPORATE HISTORY: SIGNIFICANT MILESTONES le a © Acquired Smith, Shellnut, Wilson, LLC in Jackson, MS © Opened third DFW, TX location * Seif-managed $52.5M subordinated debt issuance © Opened LPO in Ruston: LA * Acquired Pedestal Bancshares, Ine. ($1.38 in total assets) © Participated in SBA
Slide 8: Balanced Footprint
BALANCED FOOTPRINT Dallas Fort Worth Ret # of Banking Centers: Total Loans: Total Deposits: Southwest Louisiana Region # of Banking Centers: B Total Loans: $568.7 # of Banking Centers: Total Loan: Total Deposits: NoRTH Lou! SOUTHWESTLOUISIANA. REGION Total Deposits: $10616 Bayou Region # of Banking
Slide 9: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS ") Change vs For the quarter ended, $ millions 6/30/2021__3/31/2021__6/30/2020 Q2°21 Highlights - Decrease in gross loans largely attributable to net decrease in PPP loans of $360.1 million due to forgiveness and portfolio sales of $243.6 million - Excluding net decrease in
Slide 10: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS ") For the Quarter Ended, 63072021 3Buz021_ © _ 12172020. _ 9/30/2020 ‘6/30/2020 Diluted Earnings per Common Share $0.84 $0.59 $0.67 $0.46 $0.11 ROAA 1.58 % 115 % 137 % 098 % 023 % ROAE 1657 11.86 13.86 9.85 2% Net Interest Margin 3.87 423 426 4.06 3.89 Efficiency Rati
Slide 11: Stable Credit Performance
STABLE CREDIT PERFORMANCE le Past Due Loans!) Nonperforming Loans) 2020 3020 4020 1021 2021 2020 3020 4020 1021 2021 ‘mmm Past Due Loans to Total Loans. —=—=Peer Average © Past Due Loans mm Nonperforming Loans to Total Loans. —=—=Peer Average © NPLS ALLL & FV Discount?) Net Charge-offs zo~ 2.00% 1.8
Slide 12: Yield / Rate Analysis
YIELD / RATE ANALYSIS ax 5.61% ES 5.59% 5.53% cas 4.26% 4.23% ones 4.06% a 3.99% 3.91% 3.71% eles 3.71% am 2.00% 1.00% 0.96% 0.77% 0.65% a me = ey ‘leet wailent By % 5% 0.25% oa ai = mE =a —NM —t=Core nim” —#— Cost of Int. Bearing Deposits Sores HS arene * Core NIM remains consistent and inline with
Slide 13: Loan Portfolio Overview - Repricing Opportunity
LOAN PORTFOLIO OVERVIEW - REPRICING OPPORTUNITY le Loan Portfolio HFI BAII Floating Rate Loans -" @ Floating Loans with Active Floors - 975% 93.8% 88.0% mie 85.6% 64.3% 1.7% 3.5% | = +100,03%100.0% 475% of all loans HFI (excl. PPP) are floating/variable rate or fixed rate maturing within the next 2-
Slide 14: Operating Loan Growth
OPERATING LOAN GROWTH Loan Composition by Region 3000 17.9% 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 06/30/21 mCapital mNorth Louisiana mSouthwest Louisiana mBayou Greater New Orleans Dallas $695 YTD 2021 Loan Growth Waterfall! 3.5%) san | $0179) Begining Leont Originations Paydonns —~Payoffe. N
Slide 15: Loan Composition
LOAN COMPOSITION Home Equity Farmland, Multi-Family, Loans, 2.6% 2.7% 3.2% Consumer & " Other, 14% ‘Commercial, 24.8% 1-4 Family, 13.7% Construction & Land, 16.0% Noogr 178% ‘OOCRE, 17.9% COMMERCIAL Outstanding: $702 million Unfunded: $379 million Average Loan: $200 thousand NPL %{"; 0.52% OOCRE Out
Slide 16: Loan Composition: Commercial
LOAN COMPOSITION: COMMERCIAL Commercial Loans By Collateral Agricultural, 7.1% Cash/Securities, 9.9% AR& Inventory, 33.8% Weighted average maturity of Commercial portfolio is 4.2 years Continuous monitoring of unfunded commitments and line of credit usage Commercial Line Utilization Titled Collatera
Slide 17: Loan Composition: Commercial Real Estate
LOAN COMPOSITION: COMMERCIAL REAL ESTATE . CRE Conpostion - Owner Occupied CRE Conpastion Income Producing 130% 185% om 15.2% 53% 150% 5.6% nsx 403% aux, _ 17% 20 Partoto Danae Oxcusiad CRE Perfo Income Praducing CRE Parfolo _ 730% Hecate! Hiksnce: 02% [xr Residental Lots. 97% — [Gjotcetuiirg lose s
Slide 18: Sectors in Focus: Industry Composition
SECTORS IN FOCUS: INDUSTRY COMPOSITION le Retail, 9.9% Oil and Gas, 6.6% . . Loan portfolio sectors of internal focus Hotel and Motels, 3.2% determined by current market conditions Food and Drink Services, 2.6% . Other Hospitality, 1.1% Oil & Gas volatility *® Economic uncertainty related to COVID Y
Slide 19: Sectors in Focus: Oil and Gas Lending
SECTORS IN FOCUS: OILAND GAS LEN . DING Oil and Gas Loans By Function Construction, 9.0% Repairs & Maintenance, 18.2% Other, 11.5% Manufacturing, 11.6% ‘Transportation, Continued decrease in Oil & Gas portfolio exposure, approximately $10 million decrease during the quarter and approximately $33 mil
Slide 20: Sectors in Focus: Retail Lending
SECTORS IN FOCUS: RETAILLENDING le Retail Retail non-CRE, 14.5% ‘Single Tenant, Performance continues to remain stable 51.5% quarter over quarter Multi-Tenant, 34.0% No significant concentrations across the portfolio utstanding %of Total Average = , = 7 Balance Lowe (oan Sin POS Peeve eS” Single Ten
Slide 21: Sectors in Focus: Hospitality Lending
SECTORS IN FOCUS: HOSPITALITY LENDING le Hotels and Motels Food and Drink Services NonFlagged Bars, Taverns, Hotels & Motels, Restaurant PUDS:3.9% Caterers, 0.2% 8.7% Suppliers, 3.2% Short-Term, Stay/Bed & Breakfast, 10.0% Full-Service Restaurants, 37.1% Limited- Flagged Hotels Service and Motels, R
Slide 22: Liquidity and Deposits
LIQUIDITY AND DEPOSITS le * Core deposits (excl. jumbo CDs) represent 92.1% of Liquidity Sources total deposits FHLB Borrowings Capacity $ 882 Unencumbered Securities $ 526 * $592.9 million, or 80.6% of total CDs, will reprice within the next 12 months®), providing opportunity Cash Reserves $ 333 to
Slide 23: Securities Portfolio
SECURITIES PORTFOLIO . ® Portfolio’s main purpose is to serve as a source of on balance sheet liquidity Municipal Securities 37.4% * 100% of securities are classified as available for sale (AFS) ® $801 million in securities AFS, primarily concentrated in agency MBS and municipal securities $882.8M -
Slide 24: Appendix
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 —_— Total Assets $1,105,841 $1,321,256 $2,094,896 $273,835 $4,160,360 $4,323,959 Gross Loans (Excl. HFS) 810,951 975.284 1,528,469 1,710,265 2,991,355 2,854,886 Deposits 932,
Slide 26: Commercial Real Estate - Historical Performance
COMMERCIALREAL ESTATE —- HISTORICAL PERFORMANCE Q417 Q2 [Construction - 1-4 Family Residential S 25032 29683 S 37565 S$ 55485 S 60,780 S$ 68.503 $ 76,799 Other Const, Development, Vacant Land & Lots 72,840 64,742 105,970 155,569 183,401 334,562 377.256 [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 $ 1,998 Midstream 17,422 35,024 25,490 18,148 6518 $ 1,669 $ 1,427 Downstream 14,248 11,766 10,144 8,578 4511 $ 467 $ 46 [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 Income: Net income ‘Adjustments: Sale ofimpaired Credit Deferred Tax Asset write-down Employee Share Avards- NASDAQ Listing (GainyLoss Fomer Bank Premises & Equipment (GainyLoss on Sale of Securities (GainyLoss on Sale of anking Certer Occupancy
Slide 29: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TCE/ TBI Q2'20 Q3'20 Q4'20 Qt'24 Q2'24 Tangible Common Equity / Tangible Assets: Tangible Common Equity Total Shareholders’ Equity $ 386,336 $ 398,086 $ 409,963 $ 416,701 $ 431,006 Adjustments: Goodwill (63,649) (63,627) (53,862) (63,753) (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 Core Efficiency Rat Q: Core Efficiency Ratio: Noninterest Expense $ 27,797 $ 26951 $ 29602 $ 26,963 $ 31,116 Core Adjustments $ (6573) $ (1,206) $ (568) $ (360) $ (1,032) Net Interest and Noninterest income $ 25915 $ 41,054 $ 49,116 $ 45,389 $ 55,371 Cor
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$ 8118 $ 14198 $ 19529 $ 18421 $ 24,208 Adjustments: Sale of Impaired Credit s - $ - $ - $ - $ - (Gain)/Loss Former Bank Premises & Equipment $ 2 8 635 $ (158) $ = ¢ 540 (Gain)/Loss o
Business First Bancshares — Q2 2021 Earnings Presentation on 6ix