Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q4 2021 Earnings Presentation
37 slides from Business First Bancshares's earnings presentation, Jan 25, 2022
Slide 1: Slide 1
Slide 2: Table of Contents
TABLE OF CONTENTS Legal Disclosures _ Guiding Principles. Business First Bancshares, Inc. Overview. Financial Results Q4 2021 Financial Results___ Stable Credit Performance. Yield/Rate Analysis__ FY 2021 Financial Results Loan Portfolio Operating Loan Growth, Loan Composition_ Sectors in Focus, Liqu
Slide 3: Legal Disclosures
LEGAL DISCLOSURES lo ‘Special Note Concerning Forward-Looking Statements ‘This investor presentation contains Yorwordlocking statements” within the meaning of Section 27A of the Securities Act anc Section 216 of the Exchange Act ‘made pursuant to the safe harbor prowsions of te Private Secures Ligat
Slide 4: Guiding Principles
GUIDING PRINCIPLES IBANK’s five guiding principle beliefs and values, which ct factors. These tenets ‘making business dec'sions, they ‘our culture, driving our day-to-day interactions between employees, and with our clients to make @ positive impact on the communities we serve. BEST PLACES to WORK
Slide 5: Business First Bancshares, Inc. Overview
BUSINESS FIRST BANCSHARES, INC. OVERVIEW ‘Company Overview Ticker: BFST (NASDAQ) Market Capitalization: $577.5 million (as of December 31, 2021) Headquarters: Baton Rouge, Louisiana Franchise Highlights: * Announced TCB transaction in Houston market with an estimated 1022 close ($547 milion in asset
Slide 6: Executive Management
EXECUTIVE MANAGEMENT ") Mark Folse
Slide 7: Recent Corporate History: Significant Milestones
RECENT CORPORATE HISTORY: SIGNIFICANT MILESTONES ") a Acquired Sth Shalit Wilton, LLC Jackin MS * Opened third DFW, TKleaon © Satanaed 525 om abdntd detec + PPP tonne S286 mn in2Q2021 + 2h ia Now Orn LA market + sanaunced Teas Css Ban Traction 2.2, a Acqed Pedal ance (S138 tl ot) Painted in SBA PP p
Slide 8: Annual Corporate Highlights
ANNUAL CORPORATE HIGHLIGHTS SMITH SHELLNUT WILSON, LLC (SSW) ACQUISITION ‘On March 22, 2021, Business First, through bIBANK, entered into a definitive agreement to acquire SSW, a register ‘advisor with approximately $355 billion” in assé ment, sp SUBORDINATED DEBT ISSUANCE fixed-to-floating ubordina
Slide 9: Pro Forma Footprint
PRO FORMA FOOTPRINT, Dallas Fort Worth Region of Banking Tai Lear North Louisiana Region fof Benkng ‘otal Depos osits / Banking Cente Total Houston Region (Texas Citizens)®) 6 ‘Southwest Louisiana Region # of Banking Centers: Total Loans: Bayou Region Total Deposits: # of Banking Centers: Deposits /
Slide 10: Financial Results
a e BUSINESS FIRST Financial Results
Slide 11: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS ") ange vs. lions 42/31/2021 9/30/2024 12/31/2020 (28'21 Highlights Loans held for investment increased $123.4 milion, (or 4.02% (16.10% annualized), largely attributable to Gross Loans (Excl. HFS) $9,189.6 4% 7% loan originations in our construction and land and nonfarm, no
Slide 12: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS ") Forthe Quarter Ended, mains —eaoneri__euwoni__s/3021 a0) Diktod Earnings per Common Share $058 $050 sat ROAA 105% 005 % 153 % 115 % 157 % ROAE 1120 ear 1657 1186 1386 Not rest Margen 357 37 387 423 426 Eftency Ratio”? 65.55 er73 820 59.40 oar Gaeta ‘Gore Pre-Tax, Pr
Slide 13: Stable Credit Performance
STABLE CREDIT PERFORMANCE Past Due Loans") Nonperforming Loans) Gai) 0.40% bcinint 41% os ONChonone a1 202 sam sa ‘mmtionperforming Loans to Total Loans —Peer Average NPLs Net Charge-offs ex 0.03% 101 2a sat “0.01% SALLL+Discount 10 Total Loans QALLL to Total Loans sa 1am ron sant aa
Slide 14: Yield / Rate Analysis
YIELD / RATE ANALYSIS 00% pad 50% sas san 9% 0% 20% 2% 337% 00% an% — aa% asi% an% = 3.00% nae 200% 1.00% 0.65% gost oa co a40% ae 2, coon | aE Sx ra rot a0 ara. oa os ova em en ex sczeton”” —— —aecostof it Baaring Deposits —e—Total cost ot Deposts enon Ved ex SBA PPP) —e— Target Fed Funds Rate
Slide 15: Loan Portfolio Overview - Repricing Opportunity
LOAN PORTFOLIO OVERVIEW - REPRICING OPPORTUNITY lo Loan Portfolio HF! [BAL ating Rate Loans DEES 46.0% of all ioans HEI excl PPP) ere floatingariable tate oF xed rate ‘maturing within the next 12months 87.9% ofall floating rate loans would reprice immediately wih a shit in imerest Prissioccess a s50
Slide 16: Record Financial Results in FY 2021
RECORD FINANCIAL RESULTS IN FY 2021 OD 2021 Highlights Loan growth of $198.3 milion. Excluding SBA PPP loans. loans Increased $508.3 milion, or 19%. Deposit growth of $460.6 mi Gross Loans s29914 $309.6 12.7% aor aos 201” 220 2a21¥ Continuation of organic production mR hires with 2 New Orleans team
Slide 17: Profitability and Valuation Peer Comparison
PROFITABILITY AND VALUATION PEER COMPARISON lo ROAA (FY 2021) ROAE (FY 2021) Efficiency Ratio) (FY 2021) 26% Price/TBVPS") (FY 2021) Price/EPS (FY 2021) Price/PTPP®) EPS (FY 2021) 135. BE: ainal l I I rsraciat ~ catounrors® natmdereen) | estan Gutsouh ” namie a5 Cr EEEE brraau” eatsoah sasomaae este
Slide 18: Loan Portfolio
a e BUSINESS FIRST Loan Portfolio
Slide 19: Operating Loan Growth
OPERATING LOAN GROWTH npsii6 ps7 pis pss 2/31/20 apsyz. capital North Lousiana mSoutwest Louisiana m Bayou Greater New Orleans. = Das FY 2021 Loan Growth Waterfall S500 “sae 2031
Slide 20: Loan Composition
LOAN COMPOSITION lo Farmland, Home equity consumer 27% Loans, 26% Other, 3.6% uefa, 2% COMMERCIAL Outstanding: $717 million Unfunded: $364 million Average Loan: $242 thousand ‘commerci, 25% NL o70% ‘oocR Outstanding: $625 milion 14famiy, Unfunded: $51 milion ma ‘Average Loan: $854 thousand NOOCRE NP
Slide 21: Loan Composition: Commercial
LOAN COMPOSITION: COMMERCIAL Commercial Loans By Collateral pert, cosa, Le Weighted average maturity of 367% Commercial portfolio is 3.15 years thet cote, Continuous monitoring of unfunded commitments and line of credit usage ‘gm 100.0% 00% 200% 700% ca0% sa 7% 100% 200% 200% 100%
Slide 22: Loan Composition: Commercial Real Estate
LOAN COMPOSITION: COMMERCIAL REAL ESTATE lo Oo
Slide 23: Sectors in Focus: Industry Composition
SECTORS IN FOCUS: INDUSTRY COMPOSITION Retail, 10.5% il and Gas, 5.8% Loan portfolio sectors of internal focus meee determined by current market conditions Food and Drink Services, 3.2% ° Oil & Gas volatility CLUES EES © Economic uncertainty related to COVID Year over year outstanding balances of Al
Slide 24: Sectors in Focus: Oil and Gas Lending
SECTORS IN FOCUS: OIL AND GAS LENDING il and Gas Loans By Function 78% Repairs & Maintenance, 168% Manufacturing quent ‘les and Oil & Gas portfolio concentration continues to decrease reaching 5.8% of the portfolio * 4@20 7.6% of total loan portfolio * 4@21 5.8% of total loan portfolio ALLL + Fair V
Slide 25: Sectors in Focus: Retail Lending
SECTORS IN FOCUS: RETAIL LENDING Retail Reta non CRE, 103% Single Tenant, 478% Performance continues to remain stable quarter over quarter Multi-Tenant, 23% No significant concentrations across the portfolio ‘Average Loan gise Past Due $ Past Due ‘Single Tenant $159.28 80% $658 $0 000% $0, 000% Mult
Slide 26: Sectors in Focus: Hospitality Lending
SECTORS IN FOCUS: HOSPITALITY LENDING ") Hotels and Motels Food and Drink Services ese Mote Restaurant Pubs, 2.8% Caterers, 0.1% vote hel Supplier, 23% fu sence Sty/ted Pad Hoe United 0% estar Outstanding % of Total Balance Loans Hotels and Mets $114,283 3.0% Food and Drink Services $102561_ 3.2% Ot
Slide 27: Liquidity and Deposits
LIQUIDITY AND DEPOSITS ") © Core deposits (excl. jumbo CDs) represent 92.7% of total deposits FHLB Borrowings Capacity $ 1,020 * $548.6 million, or 79.2% of total CDs, will reprice Mnencunbered Secures GS within the next 12 months®, providing opportunity Cash Resenes $265 to further reduce cost of f
Slide 28: Securities Portfolio
SECURITIES PORTFOLIO » * Portfolio's main purpose is to serve as a source of ‘on balance sheet liquidity Semis wor * 100% of securities are classified as available for sale rp secu, (AFS) soe © $924.2 milion in securities AFS, primarily concentrated in agency MBS and municipal securities ~ 4021 weig
Slide 29: Appendix
a e BUSINESS FIRST APPENDIX
Slide 30: Historical Financial Summary
HISTORICAL FINANCIAL SUMMARY lo For the Fiscal Year Ended December 3 Total Assos $1,921,258 $2,094.806 $2,273,695 $4,160,360 $4,728378 ‘Gross Loans (Excl, HES) 975,284 1528469 1,710,285 «2.901.385 «3,189,608 Deposits 1056, 538 1.733.934 1,782,010 «3.618679 4.077.283 Total Equity 179,935 260,058 285,
Slide 31: Commercial Real Estate - Historical Performance
COMMERCIAL REAL ESTATE — HISTORICAL PERFORMANCE a415 a446 | Q447 a8 a4'21 [constuction - 1-4 Famiy Residential S 25032 § 29683 $ 97.565 S 55495 S 60,760 $ 68509 $ 90861 Jotrer Const, Development, Vacant Land & Lots 72840 GAra2 105970185569 © te34ot 304862 87.867 [Total Construction 87872 94425 143,5
Slide 32: Oil and Gas Lending - Historical Performance
OIL AND GAS LENDING -HISTORICAL PERFORMANCE Q415, Q416 Q417— 418 419 Q4'20 Q4'21 Upstream $ 13878 $ 14392 $ 17,742 $ 12530 $ 9639 $ 2.305 $ 246 Midstream 17422 35,024 25,490 18,148 6518 $1,669 $1,048 Downstream 14,248 11,768 10,144 8578 45it $ 467 $ 76 |Support / Services 79313 73442 __ 70.785 __ 86
Slide 33: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Core Not za, ROMA NM lua oan sce secretion ite p-0Do (ao emo. Co Co. ee co.enoemo 5 ae en 5 wR OO BA =f © § <2 = <f =p = Prion PR GF 28 SH eH ok 28 28 2B = eee oe ee ee ee eee Ben § 28 Sh Sh Gh Ba Be of Sh Bes eee ae Bi OE ee Bg oR ER Oe ee ioe meonene f
Slide 34: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TCE/TBV as20 | rz | azz | as | as ‘Tangible Common Equity / Tangible Assets: Tangible Common Equity ‘Total Shareholders’ Equity $ 409,963 $ 416,701 $ 431,006 $ 430,221 $ 433,368 Adjustments: Goodwill (63,862) (53,753) (60,062) (60,062) (59,894) Core depo
Slide 35: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES OD TCE/TBV 2017 2018 2019 2020 2021 Tangible Common Equity / Tangible Assets: ‘Tangible Common Equity Total Shareholders’ Equity $ 179,935 $ 260058 $ 285,097 $ 409.963 $ 493,368, ‘Adjustments: Goodwill (6824) (49,488) (48,405) (63,862) (59,804) Gore depo
Slide 36: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES lo Core Efficiency Ratio asz0 | ate | az21 | avai | ast ff 1231/2020 1201/2021 Core Efficiency Ratio: Noninterest Expense $ 20.602 $ 28963 $ 31,116 $ 29567 $ 29415 $ 100,903 $ 117,061 Core Adjustments, $ (668) $ (960) $ (1,032) $ (356) $423) $ (9,630) $
Slide 37: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Core pre-tax, pre-provision earnings: Pre-tax, pre-provision eamings ‘Adjustments: Sale of impaired Credit (Gainy/Loss Former Bank Premises & Equipment (Gainy/Loss on Sale of Securities (Gainy/Loss on Sale of Banking Center ‘Occupancy and bank premises-
Business First Bancshares — Q4 2021 Earnings Presentation on 6ix