Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q1 2024 Earnings Presentation
38 slides from Business First Bancshares's earnings presentation, Apr 25, 2024
Slide 1: Business First Bancshares Q1 2024 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 Shelinut Wilson Financial Results Q1 2024 Financial Results. Stable Credit Performance Yield/Rate Analysis Loan Portfolio Opera
Slide 3: Legal Disclosures
LEGAL DISCLOSURES le ‘Special Note Concerning Forward-Looking Statements ‘This investor presentation contains “forward-looking statements” within the meaning of Section 27A ofthe Securities Act and Section 21E of the Exchange Act ‘made pursuant tothe safe harbor provisions of the Private Securties L
Slide 4: Guiding Principles
GUIDING PRINCIPLES le DIBANK’s five guiding principles reflect our core beliefs and values, which drive all decisions. inrespective 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-da
Slide 5: Social Impact
SOCIAL IMPACT bICOMMUNITY d = i b1 FOUNDATION Project REACh =
Slide 6: Business First Bancshares, Inc. Overview
BUSINESS FIRST BANCSHARES, INC. OVERVIEW le ‘Company Overview Ticker: BFST (Nasdaq) Market Capitalization: $568 million (as of March 31,2024) Headquarters: Baton Rouge, Louisiana Franchise Highlights: Diversified commercial focused bank with $6,7billn in assets and operations in Louisiana, Texas and
Slide 7: Executive Management
EXECUTIVE MANAGEMENT le Jude Melville Director, President and c Age: 49 Started at BFST: 2006 Gregory Robertson Philip Jordan Keith Mansfield nancial Officer EVP, Chet Banking Officer EVP, Chief Operations office Age: 52 Age: 51 Year Started at 8FST:2011 Year Started a BFST: OFST:2016 Jerry Vascocu
Slide 8: Diversified Footprint
DIVERSIFIED FOOTPRINT
Slide 9: Long-Term Profitability
LONG-TERM PROFITABILITY » Diluted EPS Available to Common Shareholders $261 $262 $287 e120 ova | il! 2020 oie 2019 2022 © 2023 TrMqr24 BEPS aCoreePs” Net Income Available to Common Shareholders size vse nv ce $663 $654 oo prs — Gea 8576 2020 © 202120222023. TMQ 24 [BNet income |Core Net income!” Tan
Slide 10: Deposit Growth Through Organic and M&A Strategy
DEPOSIT GROWTH THROUGH ORGANIC AND M&A STRATEGY opportunistic M&A * Total deposit CAGR of ~25% since Q4’15, ~ Organic deposit CAGR of ~17% since Q4'15 (excluding acquired deposits)” $704 $1,056 Qs ase Qti7 lamountsinactuad NomivmboDepost Accounts | 1312/1537 18408 Jumbo Depast Accounts! we 2 a2 Talo
Slide 11: Proven M&A Track Record
PROVEN M&A TRACK RECORD e ‘BFSThas a proven MEA track record andhas successfully closed and integrated five whole-bankacquisitions and one non-bankRIA acquisition since 2015, ‘Average time-to-close of 149 days (announcement toclose) for BFST compares favorablyto industry average of 158 days" + Sloca
Slide 12: Liquidity and Deposits
LIQUIDITY AND DEPOSITS J Liquidity Sources FHLB Borrowings Capacity $1199 Unencumbered Securities $552 Cash Reserves $186 Fed Funds Sold som Fed Funds Lines Available $145 FRB Discount Window Total $3019 Deposit Composition om Bolstered cash reserves in 2023 in response to tighter monetary policy an
Slide 13: Securities Portfolio
SECURITIES PORTFOLIO be AFS Securities Portfolio * Portfolio serves as a source of on-balance sheet liquidity and provides interest income stability covert during times of declining rates. ee es obeteartes "9 * With the relatively high-rate environment, the Bank is reinvesting portfolio cash flows a
Slide 14: Optimizing Branch Network and Infrastructure Investments
OPTIMIZING BRANCH NETWORK AND INFRASTRUCTURE INVESTMENTS ") Frum opee omens [gl osewse S Ve et, | bere a < o Ts a [scone come — | ee | Ea F a aa Xe 3 eee Pa © x — ei Pe xge lg ° ‘a i h a sae ° 8 x» 3 ; os vee oes eo December 31,2014 March 31, 2024 6 59 16 49 Locations [TTT jdded MEE closed or Sold L
Slide 15: Smith Shellnut Wilson (SSW)
SMITH SHELLNUT WILSON (SSW) ) SMITH SHELLNUT WILSON eo = TQS kiBANK Lo ate * April 1, 2021 ~ Smith Shelinut Wilson, LLC (SSW) was | me ‘acquired by bIBANK and operates asa wholly-owned e000 subsidiary of bIBANK sso16 * SSW is a Mississippi limited liability company and ane registered investment advi
Slide 16: Financial Results
e BUSINESS FIRST Financial Results
Slide 17: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS Profitability [Net Income Avaate to Common Shareholders inthousands (Core PreTax Pre rowson incor! in thousands ‘Core Dike Earings Per Common Share” core ROAA” ‘Core ROACE”? "Net Interest Margin exclaing loan dscourt acretion” 37 338 346 349 254 (Coe EficeneyRatio"” as
Slide 18: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS For the quarter ended. $ mihons 3/31/2024 (Gross Loans (Excl. HFS) $50888 ACL + FairValue Discount onAcquired Loans $559 tnvestment Securities $8729 Deposits 955728 Borrowings $4303 Total Equity $6490 balance Sheet Ratios, $ actual 3/31/2024 ‘otal Risk Based Capital Ratio” 1
Slide 19: Stable Credit Performance
STABLE CREDIT PERFORMANCE ) Past Due Loans(®) Nonperforming Loans”) ose Teel on 1023 2023 3023 4023 1024 1023 ess ees Teco ee os 9 ane) tine eee alien eens Fes ACL & FV Discount Net Charge-offs = VIZ 1.10% 0.05% Sucois a oon a SM ALoeeat Teallome OAC eTellewe ee ee eae dpc: passce neessoy mee pa pen
Slide 20: Yield / Rate Analysis
YIELD / RATE ANALYSIS 700% 400% 300%, 200% 100%, 0.00% 24% a8 ae ~ 550% 550% 550% ee 5.00% Sure vot 376% 3758 36% 361% pec 137%, or 23 23 Corry or ne eM ex. Accretion” ——costot nt. Bearing Deposits Total cost of Deposits —memLoan Viet mom Target Fed Funds Rate I ae Se ge ar meno et een tn et
Slide 21: Loan Portfolio Overview - Repricing Opportunity
LOAN PORTFOLIO OVERVIEW - REPRICING OPPORTUNITY 45.9% of total loans HFl are floating / variable rate or fixed rate maturing within the next 12-months 98.1% ofal floating. rate loans would repric immediatly with another +0.25% shift in interes rates was us © 34.8% of total loans HF! are floating rat
Slide 22: Loan Portfolio
e BUSINESS FIRST Loan Portfolio
Slide 23: Loan Composition
LOAN COMPOSITION ‘an Composition by Region ‘000 5000 938 4000 27% 153% 60% 2000 tee 1,000 1728 rex ° RANE WANT VANE wAINe AVR WAVe WIV WAI~ osAV— ‘=Copital «North Louisiana « Southwest Louisiana = Bayou Greater New Orieans = Dal « Houston Q1’24 LTM Loan Growth Waterfall
Slide 24: Loan Composition
LOAN COMPOSITION " Total Loan Portfolio Composition Top 5 Exposure Categories ‘Commercial, 26.5% Multi-Family, \ 25% Grstendng Unfunded == Average NPL Nf 1-4 Family, 9.6% Balnce Commitment LoanSize —TotalLoane Commercial ‘$135bion —$665milin $327thousnd ©0238 RE- Owner Occupied $82Amiln $36 milion $
Slide 25: Loan Composition: Commercial
LOAN COMPOSITION: COMMERCIAL J Commercial Loans by Collateral Commercial Loans by Region 5 Houston, 10.3% Cash Secures, oan Southwest Loisans, ane oon Fw. 31.6% ventory Tiled as. colstera, Greater New 118 Orleans, 105% Capa, 13.9% Asloter, 255% Neth Lousiana Eauipment 4 nts DS * Total commercial loa
Slide 26: Loan Composition: Commercial Real Estate
LOAN COMPOSITION: COMMERCIAL REAL ESTATE ") + $662.0 milliontotal portfolio + $221 milionlargest relationship + $585 thousand average loan size + $271.5million maturing over the next Y2months® + Dallas, Baton Rouge and Covington represent top 3 geographies within C&D ‘and comprise 35.6% of all C&D l
Slide 27: Loan Composition: Office Lending by Geography
LOAN COMPOSITION: OFFICE LENDING BY GEOGRAPHY ") Office C&D by Geography Office C&D Highlights ae + $38.3millon total office C80 portfolio “ Been rem —C ised of 1Bloans in 13 cstinct 2” SE geographiestroughout Texas and te teentovge A uss Couniana, seezone f a = "8% «Largest C80 office oanis an $9.3
Slide 28: Sectors in Focus: Industry Composition
SECTORS IN FOCUS: INDUSTRY COMPOSITION Retail, 11.2% Oil and Gas, 3.0% Hotel and Motels, 4.0% F 2 Food and Drink Services, 3.2% Other Hospitality, 1.5% SatTotal AVeRG® past oun $ PastDue% —NPLS NPL Retail ‘$569,627 W2% ‘$1,006 $435, 0.08% $522 0.09% Oi Gas Sistas 308 S67 SAI? OTA OD Hotels and Motel
Slide 29: Appendix
e BUSINESS FIRST APPENDIX
Slide 30: Historical Financial Summary
HISTORICAL FINANCIAL SUMMARY ") Forth ical Yu ded Deen 1 Ta 8 ait a as Eazy [eaance sheet captal TT el Tota Assets a (Goss Loans (xc HFS) Trias zom.ass aes aeon7e | gpoaes«—sm03 Depots Tymaow —enser—dorzaea—Agmos—Samano S678 Tota Equity mesor —amce=S RRBs] sak ance ‘Tangible Common Equity / Tangble
Slide 31: Commercial Real Estate - Historical Performance
COMMERCIALREAL ESTATE - HISTORICAL PERFORMANCE J Q418 a. 1 Q422-«Q423Q124 [construction 1-4 Family Residential $ $5485 $ 60780 $ 68503 $ 90861 § 109609 § 117,128 § 119579 jother Const Development, Vacent Land & Lots «155.569 «163401334562 457,667 612445. «552670 SHEARS Total Construction 211,054 244
Slide 32: Oil and Gas Lending - Historical Performance
OILAND GAS LENDING -HISTORICAL PERFORMANCE ") Q417 9418 = 9419 = 9420, [Upstream 1772 $ SH § 9699 § 2305 dsveam 25400188 GSI S169 lbownsveam wm 57 ash § 67 suppor / Services 7765 5802 77221 §__ 02710 Total Energy Exposure $124,140 $ 126058 $ 97,888 $ 207,151 ‘of Tota Loans R&B 8K 768 3 of Total Bak
Slide 33: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Netcom © am S mms IHS S200 s HM —§ 129s MIDS IMs MS TED ‘Hpatnnt Sao stimpared cre so ms 78 78 28 beet s G 26 itr cnn of rm Speedin etotter s yet sms * : 3 sos Enews shen Aree NASDAQ $= 8S 5h $ 5 3 Cond [Gin ee rorme bank Pemeee t Eason s ms ms ms ws s s
Slide 34: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ‘Core Net Income and ROAA - Trang Tw 223 G23 0423 az ‘core Net Income: Net income $ 19389 $ 19108 $ 14478 $1220 § 64187 “Adjustments”: ‘Sale of impaired Credit $ $ $ 8 ¢ Insurance Rembussement of storm ‘expenditures, net of tax $ $ $ 8 g - Employee Share
Slide 35: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ‘Tangible Common Eauty/ Tangite Assets: InagieCommon£auiny Total Shareholders Equty 8 557800 $ 60n96s $ c04ses § G14zs9 § sAnODE Preferred tock 3 z n ‘Total Common Shareholders’ Equty 1605 529038 z T7308 ‘Adjustments: ood! (2s) 051) © @e3M) © A) LID Core
Slide 36: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ‘Tangitve Commen Equity / Tangible Assets: Tangible Common Equity Total Shareholders Eauty S 285067 $ 409963 § 433368 § sender $ 644259 Preferred Stock : 2 2 1320) _1330, ‘ota! Common Shaenolaers Equity si eas aa i ‘Adjustments: ‘coodmit (seas) (53057 (5
Slide 37: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ") Core Efficiency Ratio Core Efficiency Ratio: Noninterest Expense $ 98679 $ 99,702 $ 3607 S B74 $ 4252 $ 189409 $ 154702 $ 160,55 Core Adjustments S$ (0) S (6) S BS (495) S$ GIS) S (5679) S (668) $ (1,280) Net interest and Nonimerest income S$ 61198 S$
Slide 38: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ‘Core Pre-tax, Pre-provision Eamings Q223 9423 Qr24 25582 $ 26570 § 20459 $ 18.395 ‘Adjustments: Sale of impaired Credit $ (Gain)/Loss Former Bank Premises & Equipment $ Write-Down on Former Bank Premises § (Gain)/Loss on Sale of Securities $ (Goin)/Loss
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