Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q3 2020 Earnings Presentation
30 slides from Business First Bancshares's earnings presentation, Oct 22, 2020
Slide 1: Business First
BUSINESS FIRST
Slide 2: Table of Contents
ble of Contents Legal Disclosures 3 Guiding Principles 4 Business First Bancshares, Inc. Overvi. 5-7 Financial Data Balance Sheet 8 Quarterly Financial Highlights 9 Yield/Rate Analysis 10 COVID-19 Pandemic Response n-12 Loan Portfolio Loan Composition 13-15 Sectors in Focus 16-18 Credit Performance
Slide 3: Legal Disclosures
Legal Disclosures le Special Note Concerning Forward:Looking Statements “This vester presentation contains “Tonvarclocking statements within the meaning cf Section 27A ofthe Secuites Act and Section 2€ cf the Exchange At ‘made pursuant tothe ste hater povisens of the Pavate Secuites Ligation Refer f
Slide 4: Guiding Principles
Forbes20 BEST-IN-STATE Powendby STATSTA / ‘ ‘BEST 4 PLACES to WORK aan oust | —
Slide 5: Company Overview
‘Company Overview esis ePST MSDE) Financial Highights of 30206 mins Headquarters: Baton Rouge, Louisiana ‘Gross Loans Held for Investments Depe Franchise Highlights: ‘Loanto-Depost Rao _——S—S~S~S + Geographically diversified portfolo across 1:10 and L:20 corridors #1 deposit market share in Louisian
Slide 6: Corporate History - Strategic Context
Corporate History - Strategic Context StartUp Priority: Growth Chartered in Baton Rouge, La Quickly expanded post-Katrina into Shraveport, Northshora, Lafayette, Lake Charles & Houma, $546 $667 $687 ‘Acquisitions and Organic Growth Priority: Healthy Growth ations, listed on ST, completed Foundation
Slide 7: North Louisiana Region
North Louisiana Region # of Banking Centers: Total Loans: Total Deposits: # of Banking Centers: Southwest Total Loans: Louisiana Total Deposits:
Slide 8: Balance Sheet
e ‘change vs. For the quarter ended, $ milions sisozo20 "6072020 913072075 ‘Gross Loans (Excl HFS) $9082 3% 2% ALLL +FarValue DiscountonAcquired Loans $585 m% 288% Investment Securities $5475 2% 90% Deposits 332963 0% arm Federal Reserve Borrowings stort 0% = FHLB Borowings $1180 0% 8% Total Equity
Slide 9: Quarterly Financial Highlights
For the Quarter Ended, Tea SAID _120TATO 90S Dike rigs pr Common Share S046 oi $034 042 $040 ROM, 08% 023% 080% 10k % 102 ROAE 985 235 63t 818 195 Netterest Miron 405 388 393 408 40 EffceneyRato 65 7140 7239 650, 66 Erne Core PreTax Pre Provision heams"”n milons sigsu__ staeon sre $7389 $8257 (Gore
Slide 10: Yield / Rate Analysis
Yield / Rate Analysi oans ‘Yield excludes SBA PPP Loans SBA PPP Yield of 2.67% (inclusive of fees) 36.3% variable rate portfolio + 83% of variable rate loans have a floor of 4% or higher 63.7% fixedrate portfolio with a weighted average maturity of 3.65 years Investments, Structured as a source of l
Slide 11: COVID-19 Deferral, Staffing and Lending Programs
COVIDA9 Deferral Staffing 12.0 Assistance Program Instituted March 25 ‘Approximately 26 t The deferral period has working remately ‘oxpired for i ‘approximately 95% of the COVID-19 deferred king remotely ean bidanscad ith nigher percentage at Deferral Assistance Program. Inaddition to the Deferral A
Slide 12: Total Loans Modified due to COVID-19 Pandemic
Total Loans Modified due to COVID-19 Pandemic i") Highly Rated Loan Relationship Modieatons Doane mi etal Assitaroa Program Industry Amount ($) % of total Interest Only Deferrals: $76 Agriculture & Manufacturing $162 109% Deferrals of Principal and interest $273 Consumer $08 0.5% TOTAL $34.9 Energy
Slide 13: Loan Composition
Loan Compos ome Eauity Farmland, uti samty, Loans, 29% Dae Other, 36% commer, 38 amily, 18.68 ocne, 175% ‘COMMERCIAL Dutstanding: $634 milion Unfunded: $325 million Average Loan: $185 thousand NL x" 03 NOOCRE Outstanding: $499 mition Uniunded: $21 milion Average Loan: $895 thous NPL 3! ork Unfunded:
Slide 14: Loan Composition: Commercial
Loan Composition: Commercial ‘Commercial Loans By Collateral convsectie, eet mores cola, tam faupnent Weighted average maturity of Commercial portfoliois 2.04 years Line of Credit usage monitoring took place daily from March 16, 2020 through 2020 and continued weekly through 3020. ‘Commercial Line U
Slide 15: Loan Composition: Commercial Real Estate
e ion: Commercial Real Es: Loan Compos ‘Owner ~ Occupied CRE makes up approximately 50% of total CRE londing CAD and Total CRE concentrations of 92% and 257%, respectively”
Slide 16: Sectors in Focus: Industry Composition
Sectors in Focus: Industry Composition Oil and Gas, 7.7% Retail 8.9% Hotel and Motels, 3.1% Food and Drink Services, 2.3% Other Hospitality, 1.2% Loan portfolio sectors of internal focus determined by current market conditions * Oil & Gas volatility * Economic uncertainty related to COVID others, 76
Slide 17: Sectors in Focus: Oil and Gas Lending
Sectors in Focus: Oil and Gas Lending i") Oil and Gas Loans By Function “ny Repairs . , Maintenance, ALLL + Fair Value Discount on Acquired Loans 278 for Oil and Gas loans totals $15.9 million * 8% of Ol and Gas Portfolio balances * $14.5 million is related to Pedestal loans other 2.0% No Shared Nat
Slide 18: Sectors in Focus: Retail Lending
Sectors in Focus: Retail Lending Retail Retaltnon CRE, 110% No significant concentrations across the Single Tenant, portfolio. Mult-Tenan, aa Approximately 61.5% of Single Tenantis ‘owner-occupied Outstanding —%of Total Average 0) Balance ‘Loans Loan Size PastDue $" PastDue % NPLS” — NPL% ‘Singe Ten
Slide 19: Sectors in Focus: Hospitality Lending
Sectors in Focus: Hos; ity Lending Hotels and Motels Food and Drink Services witions Restaurant Stay/Bed sary, tovene SBI 39% Caterer, 0.3% estat 9.0% Pubs 30% Nonfisgged Full service ote & Restaurants, Motes 1.7%. 33.6% Limited Fiagged Hotes ‘Service snd Motels, Restaurants, 733% S25 Outstanding %
Slide 20: Stable Credit Performance
Stable Credit Performance Past Due Loans!) Nonperforming Loans'”) sas” aan Net Charge-offs om ox anx 0.00% 0.00% saw aaa” sao aa gna AU lecount to Total Loans QALLL 0 Tota Loans mmNcoVAverage tours —Peer Average NetChageatts
Slide 21: Liquidity
CDARS, Brokered Long-term, 7.2% Deposits, 0.0% 25% Short-term, Non-Interest 5.8% Bearing, 26.9% Time Deposits, 21.8% Now& Other, 15.0% MMDA& Savings, 21.0% [core Transaction [forrowings Hieroteres FHLB Borrowing Capacity $973.6 Unencumbered Securities $293.9 Cash Reserves $80.0 Fed Funds Lines Avail
Slide 22: Appendix
Slide 23: Historical Financial Summary
Historical Financial Summary be Forte Fiscal Yea Ended Deconber 31, v0 i Fa Fa ie 2 0 Teast storeos —sisosati —staziase — seastase = saaraas —saasaevo (Gor cae ase eroset grease asoeaso —“i7toaes _oeaure iis foize re tossans trast tyeeato—aaseast Toate fai isaso=nvgans = Zooss = aeos =a 088 ‘Tangibl
Slide 24: Historical Performance
Historical Performance aa1s | a416 | a417 | aa'4s | a419 | Q3'20 [Construction 1-4 Family Residential S 25032 $ 29683 $ 37.865 $ 55.485 $ 60,780 $ 68,960 Other Const, Development, Vacant Land & Lots 72840 64,742, 105,970, 155,569, 183,401 265,120 ‘Total Construction 97872 94425 143,535 214054 «248.1
Slide 25: Oil and Gas Lending — Historical Performance
Oiland Gas Lending —Historical Performance e Q115 415 446 417 418 A449 =—Q3'20 [Upstream 6005 $ 13878 $ 149m S 172 $ 1280 $ 960 $ 1.970 jsstream e072) 47422, 35028 25400 18.148 6518S) 1.731 IDownstrean 1327914288 t1,765 10.144 8573 451 $61 [suppor sences! 7752070319 79102) 70765 9680 7721 §204.114 T
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ‘Core Net Income, ROAA NIM Sai Pzo1e | zis | zo | zor | aos | 2019 | 270 ar20 asi9 as%9 Core Net Income: Netincome S 4033 5 400 S 5111 S$ 488 5 14091 S$ 2772 S$ 9609S 202 S 4409 SATE SEIT Adjustments": Sale of Impated Credt Ss - S$ - S$ - S$ mes @FS CH S
Slide 27: Reconciliation of Non-GAAP Financial Measures
‘ion of Non-GAAP Financial Measures a FiscalQuarter s'20 Tor fat | asia | asia | Tangible Common Equity / Tangible Assets: ‘Tangible Common Equity Total Shareholders’ Equity $ 398,086 $ 386,236 $ 282030 $ 285,097 $ 280,340 Adjustments: Goodwill (63627) (53.649) (48,495) (48,495) (48,33) Core deposit
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures —“FortheYearEndedDecember3, P2014] 20520607208 2019 | Tangible Common Equity / Tangible Assets: Tangible Common Equity Total Shareholders’ Equity $ 78845 $ 112,449 $ 113559 $ 179935 $ 260,058 $ 285097 Adustments: Goodwill a 3.376) (6.824) (6824) (49,488)
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Efficiency Ratio Core Efficiency Ratio: Noninterest Expense Core Adjustments Net Interest and Noninterest Income. Core Adjustments Efficiency Ratio Core Efficiency Ratio Core Efficiency Ratio without SBA PPP: Noninterest Expense Core Adjustments Net Inte
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Core Pre-tax, Pre-provision Earnings Q3' Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earnings $ 14198 $ 8118 $ 6372 $ 7,680 $ 7,302 Adjustments: Sale of Impaired Credit $ - $ - $ - $ - $ - (Gain)/Loss Former Bank Premises & Equipment $ 6
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