Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q4 2020 Earnings Presentation
31 slides from Business First Bancshares's earnings presentation, Jan 25, 2021
Slide 1: Business First
BUSINESS FIRST
Slide 2: Table of Contents
Table of Contents Legal Disclosures Guiding Principles Business First Bancshares, Inc. Overview Financial Data ince Sheet Quarterly Financial Highlights Yield/Rate Analysis, Record Financial Results in FY 2020 Profitability and Valuation Peer Comparison COVID-19 Ongoing Pandemic Response Loan Portfo
Slide 3: Legal Disclosures
| Legal Disclosures | le Special Note Concerning Forword.Locking Statements This verter presentation contains erwarchlocking statements“within the meaning of Section 278 cf the Secutties Act and Section 216 of the Exchange Act ‘made pursuant tothe safe harbor prowsions ofthe Private Securties Ligati
Slide 4: Guiding Principles / Impact on the communities
mpact on the communitie Forbes 2( BEST-IN-STATE Powered STATSTA
Slide 5: Company Overview
. Company Overview Ticker: BFST (NASDAQ) Financial Highights f 4020 ($milions) sets Headquarters: Baton Rouge, Louisiana ‘Gross Loans Held for investments Franchise Highlights: Deposits + Geographically diversified portfolio across 1-10 and I-20 corridors Loan-to-Deposit Ratio + #tdeposit market sha
Slide 6: Acquisitions and Organic Growth
Acquisitions and Organic Growth Priority: Healthy Growth nto New Orleans DFW, AQ: BFST lonal investor-led Expal Foundation Building stad on NV Priority: Health -ompleted insti Strengthening of balance sheet, equity and debt raises, development of four mergers processes/procedures, prioritization of
Slide 7: Regional footprint: Louisiana regions
North Louisiana Southwest Louisiana Region # of Banking Centers: 2 Total Loans: $6720 Total Deposits: $y0012 North Louisiana Region # of Banking Centers: Total Loans: Total Deposits:
Slide 8: Balance Sheet
. change vs. For te quarter ended, $ millons s2e1ne0 “gaame20 12397079 - Reduction in oan growth largely attributable to PPP loan forgiveness of $222 milion Gross Loars Exel HFS) s29014 2% toe Cmca sie eet yaoee Ilion at yearend ALLL increased by $1 68 milon, 8%, om 0.66% 10 074% of loans. Discount
Slide 9: Quarterly Financial Highlights
Highlights ") For the Quarter Ended, Taina Sow _e0/a020__wDIA TIO ‘ilted Earrings per Common Share oT 46 sot $034 $02 ROAA 137% 098 % 023% 08D % tt % ROAE 1386 985 235 631 38 Net herest Magn 435 406 383 393 408 EficiencyRato ear 665 T7140 7238 6650 Promtapasy Core Pre-Tax Pre Provision come” n milon
Slide 10: Yield / Rate Analysis
eld / Rate Analysis Loans Yield excludes SBA PPP Loans Yield of 4.66% (nel sms ‘SBA PPP Yield of 4.66% (inclusive of fees) 600% = se ee we 37% vatiable rate portfolio + 49.4% of variable rate loans have a $0% floor of 4% or higher eee 00% “ — 63% fixedrate portfolio vith a weighted aii pa ad 300% _
Slide 11: Record Financial Results in FY 2020
| Results in FY 2020 Record Finan: ‘Transformative FY 2020 Gross Loans Total Deposits Loan growth of $1.28 billion, or 75%, sass ‘ae driven by Pedestal acquisition, PPP lending, and 2020 organic loan growth of 6.29% susans 27103 $1,733.9 $17820 Deposit growth of $1.84 billion, or or 103%, driven by:
Slide 12: Profitability and Valuation Peer Comparison
n Peer Comparison ") ROAA (FY 2020) ROAE (FY 2020) Efficiency Ratio (FY 2020) 26% z oo oem ous ost ' 1 1 1 1 1 1 1 1 ' ' 1 1 1 1 I Price/TBVPS (FY 2020) 1 Price/EPS (FY 2020) fi Price/PTPP EPS (FY 2020) 1 1 1am 1 1 4 1a ase i 1 1 1 1 1 1 fl 1 fl ‘rst Gull SouthPowrs” Naonmidereer™ | a ' ' ' ' Sot na
Slide 13: COVID-19 Ongoing Pandemic Response
COVID-A8 Deferral Assistance Program Only $3.3 million in COVID-19 deferred, foans still remain inthe deferral period (0.5% of, original Deferral Assistance Program balances). Remaining Joan balances ropresent fan immaterial percentage of the total, foan portfolio. In addition to the Deferral Assist
Slide 14: Loan Portfolio
Home Eauity Farmland, MultiFomiy, L005 28% Das 36% consumer & Other, 36% 4 Famiy, Construction & and, 15.1% ‘oct, 17.9% ‘COMMERCIAL Outstanding: $578 million Unfunded: $320 million vorage Loan: $178 thousand NPL %" 0.39% NOOCRE Outstanding: $496 million Unfunded: $26 million Average Loan: $881 thous
Slide 15: Loan Composition: Commercial
an Composition: Commercial Commercial Loans By Collateral conecte Weighted average maturity of Commercial portfoliois 2.75 years Line of Credit usage monitoring took place daily from March 16, 2020 through 2@20 and continued weekly through 3020 ‘Commercial Line Utilization 200% 200% 100% HOR BOE 15.
Slide 16: Loan Composition: Commercial Real Estate
an Composition: Commerc Real Estat ") ‘Owner ~ Occupied CRE makes up approximately 49% of total CRE lending CAD and Total CRE concentrations of 106% and 262%, respectively” ass Pe Gare Orne Pafale ‘beuma Pratuena Ae Pata ox Mieawew a rd as [loess couneter-ofe a [creme comectn sever 2% [Ecomess contc
Slide 17: Sectors in Focus: Industries
Sectors in Focus: Indust: Retail, 8.6% Oil and Gas, 7.6% 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 * O1& Gas volatility * Economic uncertainty related to COVID All others, 712% Outstan
Slide 18: Sectors in Focus: Oil and Gas Lending
Sectors in Focus: Oil and Gas Lending and Gas Loans By Function Other 9.8% Repair Maintenance, 9% Manutacturi 10.8% Equipment ‘Sales and Rental 17.4% Professional Services, 169% Transportation, 13% Outstanding —% of Total ALLL + Fair Value Discount on AcquiredLoans for Oil and Gas loans totals $13.7
Slide 19: Retail
Retail Retailnon CRE, 82% No significant concentrations across the portfolio. Mut-Tenas 33.6% Approximately 60.8% of Single Tenantis owner-occupied Outstanding %of Total Average si ; » Bane ‘Loans, Loen Sige PastDue $" PastDue % NPL" — NPL% ‘Single Tenant 313528 50% S82 33_(019% Sit 00% Mutl-Tenant
Slide 20: Hotels and Motels / Food and Drink Services
Hotels and Motels Nonfagged Hotels & Motes, 9.9% Food and Drink Services Bars, Taverns, Pubs, 3.7% Caterers, 0.3% Restaurant Suppliers, 3.9% Stay/aed& Break Fal Service 10.0% Restaurants, 483% United Serve ceca itt Restaurants, and Motels, a 200% Outstanding —% of Total Average wit = pray Ln count A
Slide 21: Stable Credit Performance
Stable Credit Performance Past Due Loans") 200 320 ‘ueLoanstoTotal Loans —Peer Average © Past Due Loans ALLL & FV Discount?) sas 1030 200 30 a0 ' AlLsDiscount to Total Loans ALLL to Tota Loans Nonperforming Loans") aan osm saxo 100 200 3020 sqz0 mmNonperorming oanstoTotalLoans Peer Average @ NPL Net
Slide 22: Liquidity
© CARS, — Brokered Long-term, 7.2% Deposits, 0.19% 1.6% Short-term, 07% Time Deposits, Non-Interest anne Searing, 31.4% — FHiB Borrowing Capacity $1,033.0 Unencumbered Securities $339.0 Cash Reserves $225.0 Fed Funds Lines Available $126.0 FRB Discount Window") $350.0 TOTAL — $2,073.0 MMDA& NOW s Sa
Slide 23: Appendix
Slide 24: Historical Financial Summary
Historical Financial Summary ") For the Fiscal Year Ended December 31, 5 i ‘oir 28 oo 7080 Teta Assets stoveses — sisosasy—s1azizse — seasueas§—saaraeas 4.160380 Gens ars el HS) es Srsaui—tszaes a 7tozee 2981388, Depots fouze = sazyos tosses rss 1 7eant0 6186 TaalEeaty ties tte Tans == 2e008 = aae0s
Slide 25: Commercial Real Estate — Historical Performance
Commercial Real Estate — Historical Performance le Q415 446 417 418 = 419 Q4'20 [Construction - 1-4 Family Residential S 25032 $ 29,083 $ 37585 $ 55485 $ 60,780 $ 68,503 lOther Const, Development, Vacant Land & Lots 72840 84,742 105,970 155,569 183,401 934,502) [Total Construction 97.872 94425 143,6
Slide 26: Oil and Gas Lending Historical Performance
Oiland Gas Lendin, Historical Performance Q115 Q415 Q446 417) 418 = 419420 lupstream S 6905 $ 13878 $ 14302 $ 1742 $ 125% $ 963 $ 2.005 Midstream 4607247422 35024 25400 18.148, 6518 $1,680 lDownstream 1327914248 14765 10.148 8578 4511 $ 467 |Support Services 77529 79313 74142 70765 86802 7201 $2710
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ") acs ‘Sonat iesees Ct 25 sunes eps os s : s 5 s (GonjusstamarSom heme 8 ° . : i i . Exonee S$) 58-8 aos ms 7 sums ms sms fennarntendserie 8 8 8 8 as owns am 8 sams s “asm {Gonjtas on Sate Sana Caner Fr a ee ee ‘Son Geionecwe | sae SPs ams ls 3 Sams | p
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures "TCE / TEV TS FiscalQuarter f2s20 | as20 | az20 | at'20 | asia | ‘Tangible Common Equity | Tangible Assets: ‘angie Common Eauty Total Shareholders’ Equiy $ 409,963 $ 399,005 $ 306,338 $ 282.030 $ 285,007 Agustments Goodwil (63,982) (3.627) (63,649) (48.4
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures . rthevYearEnded December, A ‘Tangible Common Equity! Tangle Assets: ‘Tangible Common Equity ‘Total Shareholders’ Equity S 112.49 $ 113559 $ 17995 $ 260058 $ 285007 $ 400,963 ‘Adjustments. Good! G37) (6824) (6.R24) (49.488) (48,495) (63,862) Core deposit
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ") Core Etticiency Ratio: Noninterest Expense $ 29802 $ 26051 $ 27707 $ 16643 $ 15200 $ 10000 $ 58.448 Core Adjustments S68) S (1206) $ (6.573) $ (1283) S$ (76) S 6m) $ (37) Net interest and Noninterest income: S$ 49116 $ 41054 $ 35915 $ 22900 $ mer $ 14
Slide 31: 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 (GainyLoss Former Bank Premises & Equipment (Gainy/Loss on Sale of Securties (Gainy/Loss on Sale of Banking Center Early Lease Termination Penalty
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