Business First Bancshares, Inc. · NASDAQ:BFST

Business First Bancshares — Q2 2020 Earnings Presentation

30 slides from Business First Bancshares's earnings presentation, Jul 29, 2020

  1. Slide 1: Q2 2020 Results

  2. Slide 2: Table of Contents

    Table of Contents Legal Disclosures Guiding Principles Business First Bancshares, Inc. Overview Financial Data Balance Sheet Quarterly Financial Highlights Yield/Rate Analysis COVID-19 Pandemic Response Loan Portfolio Loan Composition Sectors in Focus. Credit Performance Liquidity Appendix...

  3. Slide 3: Legal Disclosures

    gal Disclosures ") ‘Special Note Concerni Forward-Looking Statements ‘This investor presentation contains “forwarchlocking statements” within the meaning of Section 27A of the Securties Act and Section 21E of the Exchange Act made pursuant to the safe harbor provisions of the Private Securities Liti

  4. Slide 4: Guiding Principles

    uiding principles reflect our core which drive all decisior als sare more than gui strategies, or external making business decisions, they are the core of tion: sto make ‘our culture, driving our day-to-day int between employees, and with our cliet 4 positive impact on the communities Forbes BEST-IN

  5. Slide 5: Business First Bancshares, Inc. Overview

    Business First Bancshares, Inc. Overview ") Company Overview seca BRST RNbsiat Financial Highlights of 220 ($ millions) ‘Assets $3,961 Headquarters: Baton Rouge, Louisiana SGicee Coane Haat ior eneoinasts S208. Deposits $3,251 Franchise Highlights: Loan-to-Deposit Ratio, 92.1% + Geographically diver

  6. Slide 6: Balance Sheet

    esheets . Chany Change vs.__ For the quarter ended, $ millions 613012020 "3/31/2020 6/30/2018 Highlight Approximately $893 milion in loan bdances, net of discount, acquired in Pedestal transaction on Gross Loans (Excl. HFS) $2,9948 69% 82% © Day1 PPP balances totaling approximately $395 million, $86

  7. Slide 7: Quarterly Financial Highlights

    . For the Quarter Ended, Cao _1aHIANG —_9WADTS_—_6HOAOTS Ditsted Earnings per Common Share oat 034 $0.42 $0.40 soso ROAA 023 % 080 % 108 % 102 % 10% ROAE 2% 631 318 793 1013 Net interest Margin. 3.89 393 408 410 419 Efficiency Ratio 714 724 665 672 599 iotea Dany Core Pre-Tax Pre Provision come’ (n

  8. Slide 8: Yield / Rate Analysis

    Yield / Rate Analy Loans Yield excludes SBA PPP Loans ‘SBA PPP Yield of 2.90% 37% variable rate portfolio + 48% of variable rate loans have a floor of 4% or higher 63% fixed rate portfolio with a weighted average maturity of 3.4 years ‘SBA PPP reduces reported @2 NIM by approximately 13 bps. Investm

  9. Slide 9: COVID-19 Pandemic Response

    ic) COVID-19 Deferral Assistance Program instituted March 25 As of June 30, 2020, approximately 2,600 loans with a current outstanding balance of $938.5 million Approximately 65% of ‘these loans received a 90-day principal and Interest deferral Loans that received relief represent approximately 35%

  10. Slide 10: COVID-19 Deferral Assistance Program

    COVID-19 Deferral Assistance Program le Industry Amount ($) % Deferred Interest Only Deferrals Agriculture & Manufacturing $288 26.7% ‘August $33 Consumer 59.5 15.3% September $373 Energy 123.2 55.6% October $45.9 Healthcare 474 44.1% November $26.9 Hospitality 108.5 62.3% December $98 Real Estate 2

  11. Slide 11: Loan Portfolio

    » COMMERCIAL Outstanding: $648 million Unfunded: $332 million Average Loan: $178 thousand 0.41% NOOCRE Outstanding: $461 million Unfunded: $26 million Average Loan: $830 thousand OOCRE NPL x" 0.21% Outstanding: $457 million Unfunded: $28 million Average Loan: $471 thousand NPL 0.67% 4-4 FAMILY Outst

  12. Slide 12: Commercial Composition

    Commercial Composition ‘Commercial Loans by Collateral cashysecurtis, 79% sid: ane comet Inventory. 23% 36.0% other, 1s Equipment, Bind 100.0% Weighted average maturity of Commercial portfolio is 2.55 years Line of Credit usage monitoring began March 16,2020, and continued daily through 2@20 Commerc

  13. Slide 13: Commercial Real Estate Composition

    Commercial Real Estate Composition ") ‘Owner - Occupied CRE makes up approximately 50% of total CRE lending C&D and Total CRE concentrations of 91.4% and 234.1%, respectively! mam as. ed ‘ic am am 250% 75% sm 0.2% 1608 a ped sex sex 183 an “ oe a6 Tae eo as a roa [otesuicy 4% 140% 20% [oteetioware 7

  14. Slide 14: Sectors in Focus

    n — Sectors in Focus Oil and Gas, 8.4% Non-essential Retail, 9.8% Hospitality, 6.6% Loan portfolio sectors of internal focus determined by current market conditions * Oil & Gas volatility * Economic uncertainty related to COVID All Others, 75.3% Outstanding — %of Total Average past Due $") Past Due

  15. Slide 15: Oil and Gas Lending

    Oiland Gas Lending . BFST regularly conducts rigorous analyses on its loan portfolio, with afocus on potential areas of concern BFST first instituted quarterly reviews of its oil and gas portfolio in early 2015, As a rasult of the COVID-19 pandemic and the closing of the Pedestal Bancshares acquisit

  16. Slide 16: Oil and Gas Loans By Collateral

    Oil and Gas Loans By Collateral Marine, 5.3% All Other, 5.8% ALLL + Fair Value Discount on Acquired Loans for Oil and Gas loans totals $23.3 million RealEstate, soN * 10.5% of Oil and Gas Portfolio balances ARE * $21.8 million is related to Pedestal loans Aventor 2a No Shared National Credits in Oil

  17. Slide 17: Non-essential Retail Lending

    Non-essential Retail Lending fe Non-essential Retail Retail non CRE, 97% ies ei No significant concentrations across the 54.9% portfolio. ‘Multi-Tenant, 35.4% Approximately 71.5% of Single Tenantis owner-occupied ae ifthe i = Past Due $") PastDue% NPL S$") NPL% Single Tenant $141,760 54% S76 30 0.00

  18. Slide 18: Hotels and Motels; Food and Drink Services

    Hotels and Motels Short-Term, stay/Bed & Breakfast, 11.3%, NonFlagged Hotels & Motels, 14.1% Flagged Hotels Food and Drink Services Restaurant Suppliers, 4.2% Caterers, 0.8% Bars, Taverns, Pubs, 4.6% Full Service Restaurants, 46.0% Limited- Service and Motes Restaurants, 746% aon ommstaning eof Tota

  19. Slide 19: Stable Credit Performance

    Stable Credit Performance le Past Due Loans!) Nonperforming Loans) 035% 2a19 sa19 ais 1020 2020 2019 sais ais 1020 2020 mast 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 2019 sais sais 1020 202

  20. Slide 20: Liquidity

    CDARS, Brokered Long-term, 5.5% Deposits, 0.7% 41% Short-term, 0.89% Non-Interest Bearing, 27.1% Time Deposi 237% Now & Other, 12.7% MMDA & Savings, 20.4% Hilcore Transaction ——_([ljborrowings [Bb rokered Liquidity Sources Business First FHLB Borrowing Capacity $321.0 Unencumbered Securities $344.0

  21. Slide 21: Appendix

  22. Slide 22: Historical Financial Summary

    Historical Financial Sum ") For the Fiscal Year Ended December 31, yo 205 2016 2017 2018 28 2020 Total Assets $1,076,089 $1.105841 $1,321,256 $2,094.89 $2.273.835$3.961.138 Gross Loans (Excl. #'S) 712392 810.951 975,284 1,628,469 1710265 2.994.812 Deposits 904,236 992,795 1,055,533 1.733934 1782010

  23. Slide 23: Commercial Real Estate - Historical Performance

    Commercial Real Estate - Historical Performance Q415 Q416 Q417 Q418 Q419 Q2'20 Construction - 1-4 Family Residential $ 25,032 $ 29,683 $ 37,565 $ 55,485 $ 60,780 $ 82.911 |Other Const, Development, Vacant Land & Lots 72,840 64,742 105,970 155,569 183,401 (250,764 Total Construction 97,872 94,425 143

  24. Slide 24: Oil and Gas Lending Historical Performance

    Oil and Gas Lending Historical Performance le Qi15 Q415 Q416 Q417 Q418 Q4'19 Q2'20 lUpstream S 6305 $ 13878 $ 14302 $ 17742 $ 1250 $ 96 $ 2157 Midstream 16072 17,422 36024 25,490 18,148 ese $1,875 [Downstream 13279 14248 14,765 10,144 8578 4sit $ 457 |Support / Services 71520 __79313 73,142 ___70,76

  25. Slide 25: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures le Pe se ae | ee] ——— ene Sams sane s sins ates Mins am somes aes ames as we men a Tipanicnat Sb ss ums os me 8 os kk Summer es CPA OL PS Gt eb ee ee | Mepeterettoume PE EME wd Db DE LE La la: arene ct SHS SH) SP er mis Fs) eis cy were = emcees, FE) SG m

  26. Slide 26: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures TCE TeV riccatquarer Por Tara [aos [asi | azis | ‘Tangible Common Equity / Tangible Assets: ‘Tangible Common Eauty Total Shareholders’ Equty $ 386396 $ 282,030 $ 285097 $ 280,40 $ 277,460 ‘Adustments: Goodwill (63649) (48,495) (48.495) (48,333) (48,503)

  27. Slide 27: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures TCE/TBV recto YearEndedDeconberst, a ‘Tangible Common Equity / Tangible Assets: ‘Tangible Common Equity Total Shareholders’ Equity S 7B $ 112449 § 113560 $ 179935 $ 260,058 $ 285007 Adjustments Goodwil 3 B37) (6824) BA) (49,488) (48.405) Core deposit and

  28. Slide 28: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures G28 319 419 Q1'20 220 Core Net interest Margin: Net Interest Income $ 20,193 $ 20,258 $ 20,627 $ 20211 $ 30,919 Adjustments: Loan purchase discount accretion (826) (544) (800) (290) _(1,485) Core Net Interest Income S$ 19.368 S$ 19714 $ 19,827 _$ 19.921

  29. Slide 29: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures le Co FiscalQuarter 22°20 2018 Efficiency Ratio: Noninterest Expense $ 27797 $ 16643 $ 15203 $ 14878 $ 14577 S$ 58.448 $ 50,248 Core Adjustments (6.573) (1,283) (76) (375) (436) (837) (3.686) Net interest and Noninterest Income S$ 35915 $ 22.990 $ 22861

  30. Slide 30: Reconciliation of Non-GAAP Financial Measures

    Reconciliation of Non-GAAP Financial Measures Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earnings ‘Adjustments: Sale of impaired Credit (Gain)/Loss Former Bank Premises & Equipment (Gain)/Loss on Sale of Securities (Gain)/Loss on Sale of Banking Center Early Lease Termination Penal

Business First Bancshares — Q2 2020 Earnings Presentation on 6ix