Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Q3 2022 Earnings Presentation
34 slides from Business First Bancshares's earnings presentation, Oct 26, 2022
Slide 1: Business First
BUSINESS FIRST
Slide 2: Table of Contents
TABLE OF CONTENTS. Legal Disclosures Guiding Principles & Social Impact Business First Bancshares, Inc. Overview Financial Results Q3 2022 Financial Results Stable Credit Performance Yield/Rate Analysis Loan Portfolio Operating Loan Growth, Loan Composition Sectors in Focus Liquidity and Deposits Se
Slide 3: Legal Disclosures
LEGAL DISCLOSURES lo ‘Special Note Concerning Forward-Looking Statements ‘This investor presentation contains Terwardlooking statements” within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act ‘made pursuant tothe safe harbor provisions of the Private Secures Liga
Slide 4: Guiding Principles
GUIDING PRINCIPLES bIBANK’s five guiding principles reflect our c and values, which drive all decision: strategies, or external re more than guides for ore of our factors. These tenet making business dec culture, driving out employees and with: impact on the communiti ur clientsto make a positive Se
Slide 5: Social Impact
SOCIAL IMPACT biICOMMUNITY d e 4 Me if dei f/ Jacks Uuisiana/ /] bi FOUNDATION : iF) 2,720 4 Volunteer Hours Project REACh a
Slide 6: Business First Bancshares, Inc. Overview
BUSINESS FIRST BANCSHARES, INC. OVERVIEW » Company Overview Ticker: BFST (NASDAQ) Market Capitalization: $487 million (as of September 30, 2022) Headquarters: Baton Rouge, Louisiana Franchise Highlights: Closed Texas Citizens Bancorp, Inc. (TCB} transaction in Houston market March 1, 2022, with acqu
Slide 7: Executive Management
EXECUTIVE MANAGEMENT lo Jude Melville Gregory Robertson Director, Prsidee and CEO EVP, Chef Firanciel OF Age a g50 Yeu Stated st BFST: 2006 +) Year Stated at BFST: 2001 Philip Jordan Keith Mansfield EVP, Chief Barking Ofer § EVP, Chief Opertions Officer Age50 Age 86 ‘Yeu Stated ot BFST: 2008 Yer Sta
Slide 8: Recent Corporate History: Significant Milestones
RECENT CORPORATE HISTORY: SIGNIFICANT MILESTONES ) Opened eu fllserie DPH,TX neon * salfmonageds72 Om referedseketonginQ32022 acquiedSmehSholoet ikea LLC scaon MS ots hr full ere DFVTX hein vet en el * PPP enna nmin 308) + sil sinner ron Amada eT " Acqued? seduce le SUS nolan) + Pact SBAPFP pig mm)
Slide 9: Balanced Footprint
BALANCED FOOTPRINT
Slide 10: Optimizing Branch Network and Infrastructure Investments
OPTIMIZING BRANCH NETWORK AND INFRASTRUCTURE INVESTMENTS ") ox °. St eg x = = 6 5 x i ° ° a ° o & December 31,2014 ptember 30, 2022 6 51 Banking Centers MEIN Added MEE closed or Sold Banking Centers -¥ 48 acquired banking centers, 2 legacy BIBANK banking centers is aa] soenevonoinacortes | = 9 acqui
Slide 11: Smith Shellnut Wilson (SSW)
SMITH SHELLNUT WILSON (SSW) SMITH SHELLNUT WILSON BANK © Aprilt, 2021 - Smith Shellnut Wilson, LLC (SSW) was acquired by BIBANKand operates as a wholly-owned subsidiary of BIBANK. © SSWis a Mississippi investment advisor, wi Mississippi. sed liability company and registered its principal office loca
Slide 12: Financial Results
e BUSINESS FIRST Financial Results
Slide 13: Balance Sheet Highlights
BALANCE SHEET HIGHLIGHTS e ange VS. ‘9730/2022 6/30/2022_9/30/2024 = Organic loan growth of 7.69% for the quarter led by the DFW (48.4%), North LA (23.3%), Capita (12.2%), ‘and Houston (11.8%) markets continuing to diversity the loan portfolio. Year-over-yearloan growth ($1.378) as headlined by orga
Slide 14: Quarterly Financial Highlights
QUARTERLY FINANCIAL HIGHLIGHTS lo Forthe Quater Ended, Diluted Earrings per Common Share 061 61 soa $059 $0.50 ROAA 097 % 102 % O71 % 105 % 0% % ROACE aT 22 783 1120 947 Netterest Mergn 4.05 3.98 351 357 3m Efficiency Rati aT 6632 287 6607 6755 Profitability Core Pre-Tax Pre Provision Income" in mil
Slide 15: Stable Credit Performance
STABLE CREDIT PERFORMANCE ") Past Due Loans(?) Nonperforming Loans!) 073% ee ALLL & FV Discount?) Net Charge-offs Lk 160%, ws OOOO G = = ee es {7 Rute a socom toe evoevs ec pochensd pried Eom oes dcontucnsy pat hoor te Coany dom ate mse poy the Coryey nce EZ Tanti ote 2a ta,
Slide 16: Yield / Rate Analysis
YIELD / RATE ANALYSIS 600% som sam s10% 99% 00% 48% 3.98% Lesa 00% 7 3s 3.5% =) ee 3a 243% mn ’ : 7 200% 00% = ose 00% ont ont ava ae on —_N P= NIM ex. accretion” “—P— Cost of Int. Bearing Deposits pe Total cost of Deposits pee Loan Vield (excl SBAPPF) —O— Target Fed Funds Rate
Slide 17: Loan Portfolio Overview - Repricing Opportunity
LOAN PORTFOLIO OVERVIEW - REPRICING OPPORTUNITY ") Loan Portfolio HFI Floating Rate Loans Set to Reprice 43.3% of total loans HFl (excl. PPP) are Poe floating /variablerate 2 or Fixed rate maturing ; within the next 12- 2 months 2 a 98.5% ofall floating ; rate loans would 5 reprice immediately 3 wit
Slide 18: Loan Portfolio
e BUSINESS FIRST Loan Portfolio
Slide 19: Operating Loan Growth
OPERATING LOAN GROWTH Composition by Region so a sso0 3,500 y | 24.8% 2500 ss oa 16% 100 2% ax ° pays Rhy Ashe ups Ayn AYA —emproR ‘= apital m North Louisiana m Southwest Lousiana m Bayou Greater New Orleans Dallas « Houston YTD 2022 Loan Growth Waterfall 80 su $01) se suse son 151 OFinotont roydown
Slide 20: Loan Composition
LOAN COMPOSITION Consumer & 43% Home Eauity ‘COMMERCIAL aan Saez Outstanding: $1.01 billion Multifamily, Unfunded: $461 million ‘Average Loan: $234 thousand NPL 0.29% 1-4Femily, 102% NOOCRE Outstanding: $954 million Unfunded million ‘Average Loan: $1.44 million : NPL x 0.02% Construction & and, 14.4
Slide 21: Loan Composition: Commercial
LOAN COMPOSITION: COMMERCIAL Commercial Loans By Collateral Aarcatral Cashsecarties, 0% ane ventory. Colter 110% alother Equipment. ‘Commercial Loans By Region Howson, 89% Southwest ova, 73% rw. 272% GreaterNew Onan, 9.3% Capital, 140% North Louisiana, 196% ayou 13.1% * Commercial loans represent 22
Slide 22: Loan Composition: Commercial Real Estate
LOAN COMPOSITION: COMMERCIAL REAL ESTATE ") [Bhoreresst ete Aesimenitucranyy [lowers cantsten oper
Slide 23: Sectors in Focus: Industry Composition
SECTORS IN FOCUS: INDUSTRY COMPOSITION ") Retail, 11.9% Oil and Gas, 4.2% Hotel and Motels, 4.3% Food and Drink Services, 3.3% Other Hospitality, 1.7% All Others, 74.5% Outstanding % of Total Average Past Due $"” Past Due% NPL NPI Balance Loans _ Loan Size Retail $533,965 «11.9% $064 S191 0.04%, $51
Slide 24: Liquidity and Deposits
LIQUIDITY AND DEPOSITS ") Liquidity Sources FHLB Borrowings Capacity $ 1,088 Unencumbered Securities S$ 534 * Core deposits (excl. jumbo CDs) represent 95.7% of total deposits Cash Resenes $164 en unde nes aveeDe $ iG © >$2.2 billion in liquidity available FRB Discount Window $360 Total $ 290 Deposi
Slide 25: Securities Portfolio
SECURITIES PORTFOLIO » * Portfolio's main purpose is to serve as a source of on balance sheetliquidity. * 100% of securities are classified as available for sale (AFS) * $945.6 million in securities AFS, primarily concentrated in agency/treasuries, mortgage- backed securities (MBS) and municipal sec
Slide 26: Appendix
e BUSINESS FIRST APPENDIX
Slide 27: Historical Financial Summary
HISTORICAL FINANCIAL SUMMARY lo For the Fiscal Year Ended December 31 yro. 2017 2018 2019 2020 2024 2022 [Balance Sheet & Capital Total Assets $1,321,256 $2,094,896 $2,273,835 $4,160,360 $4,726,378 $5,806,691 Gross Loans (Excl. HFS) 975,284 41528,469 4,710,265, 2,991,355 3,189,608 4,429,900 Deposits
Slide 28: Commercial Real Estate - Historical Performance
COMMERCIALREAL ESTATE - HISTORICAL PERFORMANCE » 416 Q418 — Q4'49 Q4'21 22 [Consinucton -1-4 Family Resiental S 29689 $ S755 $ 55485 S$ OTH S Bm S$ MBE S 119005) Jotner Const, Development, Vacant Land & Lots 64742 105970 155.560 183.401 45D A57.6G7 © 522874 Total Construction 64425 49.535 711,054 24
Slide 29: Oil and Gas Lending - Historical Performance
OILAND GAS LENDING -HISTORICAL PERFORMANCE Q416 Q448 Q4'19 |Upstream $ 14392 $ 17,742 $ 12530 $ 9639 $ 2305 $ 246 $ |Midstream 024 25,490 18,148 6518 1669 $ 1048 $ - [Downstream 11,7668 10,144 8578 4511 $ 467 $ 76 $ 158 |Support / Services T3142 70,765 86,802 T1221 $ 202710 $ 182711 $ 188279 Total E
Slide 30: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ") Core Net income: Net ncome 3S 40@ 5 Moms mz s mses @2ue $ tans zoes arms mms 1m0 ‘ajar Selectors rect sums @s ms -s - $ - 8 - 8 s 3 Delores Fac sere wrtesoun 5 4 gh 88 Boe 6 5 3.6 5 3 EmpoyeeSteeArecs WsoaLiing $$ HS SS 6 25 2 6 3 (Gonytsss Famer Ban
Slide 31: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TCEITA, TBVPS asa | asa [| arze | azz | as22 ‘Tangible Common Equity / Tangible Assets: ‘Tangble Common Equity Total Shareholders’ Equity S 490,221 $ 493,268 $ 456.837 $ 445.459 $ 508,002 Preferred Stock - - = 72.010) Total Common Shareholders’ Equty _$_
Slide 32: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES e TCEITA, TBVPS 2017 2018 | 2019 2020 2021 Tangible Common Equity / Tangible Assets: ‘Tangble Common Equty Total Shareholders’ Equity S 179.935 $ 260,068 $ 285,007 S$ 400.953 $ 493,268 Prefered Stock 2 3 = S g Total Common Shareholders’ Equity _$_170.935
Slide 33: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES ") Core Efficiency Ratio: Noninterest Expense $ 29330 $ 30098 $ 33,720 $ 36,397 $ 40946 $ 100,993 $ 117,061 Core Adjustments $ (956) $ (823) $ (1,042) $ (978) $_ (3.521) $ (9,630) $ (2,071) Net Interest and Noninterest income $ 43416 $ 45558 $ 46402 $ 56
Slide 34: Reconciliation of Non-GAAP Financial Measures
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Core Pre-tax, Pre-provision Earnings Q3'2t a2 a'22 Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earings S$ 14075 $ 15.904 $ 12651 $ 20,186 $ 20,649 ‘Adjustments: Sale of impaired Credit s > S - $s 29 = $ E (Gain)/Loss Former Bank Premises
Business First Bancshares — Q3 2022 Earnings Presentation on 6ix