Business First Bancshares, Inc. · NASDAQ:BFST
Business First Bancshares — Gulf South Bank Conference (May 2018)
32 slides from Business First Bancshares's conference presentation, May 7, 2018
Slide 1: Business First Bancshares, Inc. – Gulf South Bank Conference
BUSINESS FIRST BANK Go get it. Business First Bancshares, Inc. Gulf South Bank Conference Nasdaq: BFST May 2018
Slide 2: Legal Disclosure
Legal Disclosure Note Regarding Forward-Looking Statements This presentation contains ‘forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act o
Slide 3: Legal Disclosure (Cont'd)
Legal Disclosure (Cont'd) No Offer or Solicitation This presentation does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of the Company. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale w
Slide 4: Overview of Business First Bancshares, Inc.
Overview of Business First Bancshares, Inc. + Founded in 2006; headquartered in Baton Rouge, LA Commercial bank focused on small-to- midsize businesses and their owners and ‘employees. ~ $1.2bn gross loans'; $1.3bn total deposits ~23% Cl loans and NIB deposits Currently operating in nine Louisiana m
Slide 5: Our Operating Philosophy Has Been Consistent Since Day One
Our Operating Philosophy Has Been Consistent Since Day 1 Recruiting and nae Disciplined ‘Commercial Focus} Retaining Talented ; in g Expansion Criteria Bankers + Smallto-midsize + Experienced and empowered - “Branch lite” model + Inits frst 10 years, Business businesses and their local leadership le
Slide 6: Executive Management Team
Executive Management Team Executive team includes a mix of youth and experience which fosters an energetic and collaborative work environment Geographic diversification amongst executive management team Office g Banking B ositio B B Jude Melville 43 13 2006 —_Director, President and Chief Executive
Slide 7: Market Presidents
Market Presidents Business First's Market Presidents have diversified experience at a mix of large, regional and community banks Market Presidents serve as important conduits between executive management and the local markets ‘Mark Years in Market Prosi A Banking East Baton Rouge Michael Nizzo 8 8 W
Slide 8: Corporate History
Corporate History 2016: ‘Opened new headquarters in downtown Baton Rouge 2018: 2006: Listed on Bank opened in 2010: NASDAQ Baton Rouge; Expanded 2015: 2017: on April" ‘expanded into into the ‘Acquired American Expanded | tinder the Shreveport Houma Gateway Financialin | || into Dallas, | prot market
Slide 9: Current Footprint
Current Footprint Statewide focus on urban markets Multiple markets provide diversification of both risk and production opportunities d acilitie Banke oa Depo East Baton Rouge 2006 8 5 $251,555 $290,850 [Shreveport 2006 1 Z 194,804 104,485 Northshore 2007 1 4 98,014 50,477 Lafayette 2008 1 4 64,795
Slide 10: Recent Financial Results — Strong FY 2017 & Q1'18
_Recent Financial Results — Strong FY 2017 & Q118 «FY 2017: Strong Organie Growth Gross Loans Total Deposits Loan growth of 19.2% si300 sums 8 ‘soa ~ Cote deposit growth of $197 millon, or $"° sss ce a | ue so sons “ eur 08 DT Core deposit growth essentially ae en matched loan growth for 2H'17 sae $
Slide 11: Quarterly Financial Trends
Quarterly Financial Trends aT rote Por ee Eers a ca a ee Ee ss ———— = a us = interest a wa ma = Pre eoen = e 2 z 0) setae sia4er 08 sins, 58 tery seo TOR) ‘ate ‘eat arm i tow tee tas oT ax on rcs ta tar We fsa tat oe to te : eerie Lor 8 1) oat co rT) i on 00) rcaete oe 7 ee ot on nist soe 16500 sis
Slide 12: Loan Portfolio
Loan Portfolio ‘Commercial lending is primary focus, with C&l representing 28% and Owner Occupied CRE representing 15° Recent acquisitions have provided portfolio diversification Energy concentration has decreased from 19.8% of total loans in Q1'48 to 11.2% In Q1"18 * Average funded loan amount of a
Slide 13: Detailed Loan Composition
Detailed Loan Composition ‘Owner - Occupied GRE makes up 54% of total GRE lending ~ C&D and Total CRE concentrations of 125% and 264%, respectively (68D Composition ‘CRE Composition - Owner Occupied on 20% sa 1% Py 187% 00% nas 16% 3% ‘onal one _ sar ven ork 209% 0% 17% Po ot oct Pro tesa aint Pole
Slide 14: Loan Production
Loan Production Ce neers Loan Production — New & Renewed Commitments from 2014-118 svs00 s780 Since closing he American Gateway portfolio has e055 decreased from $143 milion to $48 milion » Increased production in 2017 primarily driven by: Seong sone Now lending teams hired during 2016 in the Lake C
Slide 15: Strong Credit Performance
Strong Credit Performance Credit quality metrics have improved significantly since NPLs / Gross Loa 2010 400% 19.0% FY 2017 NCOs resulted from two previously identified, substandard energy credits 248% $2.7 milion in charge-offs from these two credits 200% | 176% Balance ofthe portolia had only 0.03
Slide 16: Strong Credit Performance
Strong Credit Performance Classified Assets have decreased by 47% from $45.5 Classified Asset Coverage Ratio(!) million at Q4'10 to $30.9 million at Q1"18, Past due loans have remained low even with the acquisition of American Gateway and stress in the 05 ‘energy sector in recent years Beginning in
Slide 17: Energy Lending
Energy Lending Energy loans accounted for approximately 11.2% of portfolio and 87.1% of bank-level capital as of March 31, 2018 Geographic, loan type and collateral diversification 13.9% of total energy lending is non-correlated (cash secured, petrochem, retail) Active monitoring of exposures Quarte
Slide 18: Energy Lending — Historical Performance
Energy Lending — Historical Performance + Continued stability of Watch List as economic conditions for the energy sector shows incremental improvement frat $9262 § 964 $ KOM § 12927 $ M200 § HSH S MAR $ I $ HITT § HIE § 1770 § TAK6 en james raz oars S585 Sie S5ay aS se 25400 25am LAT [spent Senos Te
Slide 19: Deposit Mix
Deposit Mix Business First's deposit gathering strategy is focused on its commercial lending relationships eposit Mix - March 31, 2018 ~ In 02°16, established a relationship pricing model that values deposits and treasury management 6.4% Recently added an incentive plan for lenders tied to deposit g
Slide 20: Yield / Rate Analysis
Yield / Rate Analysis Balance Sheet is asset sensitive Stable core NIM" Fixed vs. Variable rate loans 58% fixed with a weighted average maturity of 4.65 years and 4.73% current rate ~ Approximately 24.3% of fixed rate loans, ‘mature in the next 24 months = Variable rate portfolio has a 3.5 year weig
Slide 21: Interest Rate Positioning / Securities Portfolio
Interest Rate Positioning / Securities Portfolio Interest Rate Sensitivity) 4.0% 3.0% 2.0% A 1.3% 10% 0.3% oon —— 33 | zon 3.0% | 5% 22% 40% ii +00” +100 “100 12% Change n Net Interest Income 1% Change in Economic Value of Equity | Within One Year real sal US. goxmmen agen eC ee ee ee = =x sins 220%
Slide 22: Update on Minden Bancorp Transaction
Update on Minden Bancorp Transaction + Acquired Minden Bancorp, Inc. (MBL Bank) on January 1, 2018 Al cash transaction valued at $76.0mm ~ $828mm in total assets; 1.72% ROAAin FY 2017 STA ares Pitzgan Chas Co (7) Hance Hoting Co.) losed transaction in under 3 months BERAEANC CaN Ses tranmect eles mo
Slide 23: Growth Strategy Going Forward
Growth Strategy Going Forward Maintain Disciplined Focus on Business Model Identify and Recruit Talented Bankers © Talented commercial bankers will be the primary catalyst for future growth in existing or new markets © Bankers are attracted to Business First's: Relationship-based approach ‘Sophistic
Slide 24: Appendix
Appendix
Slide 25: Historical Financial Summary
Historical Financial Summary Tot fate er (eT ed Depots seston eam sousre sara ondzne sazo6assans ta “note cen Eat Tons Ast BR ES AR WEN HSH WOR ek OR oe Ter Laoie ao 99 °° 102 08 12 4 9? 5 4 Tost apa 0 ier 1 1 14 ca) ie 452 4a ets (Ent HFS) Ass for es ere ose moe os pee oes ma {055 ens (HFS) Depots
Slide 26: Energy Portfolio by Total Past Due — As of March 31, 2018
Energy Portfolio by Total Past Due — As of March 31, 2018 Past Due Energy janis by Category and Collateral $ lions) corr Te eee [Downstream oa: = rae H i’ ii 2 \aieastich Due $ fo | 3080 | 60-9 E Accruals. SSrpSCEMSHN A saa VESeS 450 | 44% = = 1 a | Equipment - — = = H oe |Commercial Real Estate = e
Slide 27: Energy Portfolio by Risk Rating — As of March 31, 2018
Energy Portfolio by Risk Rating — As of March 31, 2018 Energy Loans by Risk Rating and Category RISK RATING RR# oeur nee Icash Secured 1 [Superior 2 |Accoptable 3 Pass 4 TOTAL PASS RATED| [Passiatch aw lOther Assets Especially . IMentionedt lsubetandard 6 Doubtful 1 oral BUSINESS FIRST
Slide 28: Energy Portfolio by Risk Rating — As of March 31, 2018
Energy Portfolio by Risk Rating — As of March 31, 2018 Energy Loans by Risk Rating and Collateral ($ Millions) Commerce CurrertGuerter | Previous Guarer ese fee | eet clon Totals Sat Enray | Tel ot eray cssh secures i = 26 27% | 38 Tm |Superior 2 os 02 42 3.1% si | 38% acceptable a | 24 | mo ass | e
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Gore Net Forth YearEndedDecember31,, Se a come, ROA NIM Core Net Income: Netincame $4099 $ 4005 S BITS gee $3408 S$ (OBR S168 $208 Ss 1076 Adysiments: Sale of PartipationItrest in impaiod Credit en a re) DeteredTacAssstwrtedown $= = $0 SS RSS tS NBL and
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures TCE/TBV. oo "Forthe Quarter Ended December 34, Tangible Common Equity | Tangible Assets: ‘Tangible Common Eauity ‘Total Shareholders’ Equty| 8 tra9a4 § 179.995 § 120,059 § 1gat3 § 116.201 Adjustments: ‘Good 2818) a2) (6.824) (6824) (6.824) Core depost an
Slide 31: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures —_—__rorthe Year Ended Decemberst, 2010 zoit 202 | mois 01s zis | oie | 2017 Tangible Common Equity/ Tangible Assets: ‘Tangible Common Eaully Total Shareholders’ Equity $ $0628 $ 66209 $ TIOId $ 71923 $ 7BBK5 § 112449 $ 113.559 $ 179,935 Adjustments: Goo
Slide 32: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures core Netinerestarg apn: ime 9 Corti et 4S b4ee $ asia $ Row § 9506s 9401 § 11s OF S$ ote Ss sO § som § sos S s15B0 S s4s00 a ZG Sino Saye § Gor So Soa GO aoe Sm SW SS SOO $100.0 Senr0st Seern8s S124 SIONS SLU SLUALIAE SOK SeOTTSmH SoM) SeIBTANS St4soHTD
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