8-K
Business First Bancshares, Inc. (BFST)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 24, 2024
BUSINESS FIRST BANCSHARES, INC.
(Exact name of registrant as specified in its charter)
| Louisiana<br><br>(State of incorporation) | 001-38447<br><br>(Commission<br><br>File Number) | 20-5340628<br><br>(IRS Employer<br><br>Identification No.) |
|---|---|---|
| 500 Laurel Street, Suite 101<br><br>Baton Rouge,Louisiana<br><br>(Address of principal executive offices) | 70801<br><br>(Zip Code) |
(225) 248-7600
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|---|---|
| ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock, par value $1.00 per share | BFST | NASDAQ Global Select Market |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 2.02 Results of Operations and Financial Condition.
On October 24, 2024, Business First Bancshares, Inc. (“Business First”), the parent company of b1BANK, issued a press release announcing financial results for the third quarter ended September 30, 2024. The release also announced that the Board of Directors of Business First declared a dividend on October 24, 2024, in the amount of $0.14 per share to the shareholders of record on November 15, 2024. The dividend is to be paid on November 30, 2024, or as soon as practicable thereafter. Also, the board of directors declared a quarterly dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. The dividend will be paid on November 30, 2024, or as soon therefore as practicable, to the preferred shareholders of record as of November 15, 2024. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.
The information in this Item 2.02, including Exhibit 99.1, is being furnished pursuant to Item 2.02 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference
Item 7.01 Regulation FD Disclosure
On October 24, 2024, Business First made available the supplemental information attached hereto as Exhibit 99.2 prepared for use with the press release.
The information in this Item 7.01, including Exhibit 99.2, is being furnished pursuant to Item 7.01 of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act, unless specifically identified therein as being incorporated therein by reference.
Item 9.01 Financial Statements and Exhibits.
(d)Exhibits.
| Number | Exhibit |
|---|---|
| 99.1 | Press Release of Business First Bancshares, Inc., dated October 24, 2024 announcing results of operations for the third quarter 2024 |
| 99.2 | Investor Presentation, dated October 24, 2024, for the third quarter of 2024 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| BUSINESS FIRST BANCSHARES, INC. | ||
|---|---|---|
| By: | /s/ David R. Melville, III | |
| Name: | David R. Melville, III | |
| Title: | President and Chief Executive Officer | |
| Date: October 24, 2024 |
Document
| 500 Laurel Street | |
|---|---|
| Baton Rouge, LA 70801 | |
| Phone: 877.614.7600 | |
| FOR IMMEDIATE RELEASE | Misty Albrecht |
| --- | --- |
| October 24, 2024 | b1BANK |
| 225.286.7879 | |
| Misty.Albrecht@b1BANK.com |
Business First Bancshares, Inc., Announces Financial Results for Q3 2024
Baton Rouge, La. (October 24, 2024) – Business First Bancshares, Inc. (NASDAQ: BFST) (Business First), parent company of b1BANK, today announced its unaudited results for the quarter ended September 30, 2024, including net income available to common shareholders of $16.5 million or $0.65 per diluted common share, increases of $0.6 million and $0.03, respectively, compared to the linked quarter ended June 30, 2024. On a non-GAAP basis, core net income for the quarter ended September 30, 2024, which excludes certain income and expenses, was $17.2 million or $0.68 per diluted common share, increases of $1.0 million and $0.04, from the linked quarter.
"In the third quarter our team again demonstrated consistent improvement in fundamental performance,” said Jude Melville, chairman, president and CEO of Business First Bancshares. “Measured and productive growth, strengthened capital ratios, improved margins and increased income from newer non-spread-based lines of business, in addition to expense discipline of which I am especially proud, which positions us solidly to continue meeting our stakeholders’ expectations in coming quarters."
On Thursday, October 24, 2024, Business First’s board of directors declared a quarterly preferred dividend in the amount of $18.75 per share, which is the full quarterly dividend of 1.875% based on the per annum rate of 7.50%. Additionally, the board of directors declared a quarterly common dividend based upon financial performance for the third quarter in the amount of $0.14 per share. The preferred and common dividends will be paid on November 30, 2024, or as soon thereafter as practicable, to the shareholders of record as of November 15, 2024.
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Quarterly Highlights
•Net Interest Margin (NIM) Expansion. For the quarter ended September 30, 2024, net interest income totaled $56.1 million and net interest margin and net interest spread were 3.51% and 2.54%, respectively, compared to $54.0 million, 3.45% and 2.47% for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.7 million) were 3.46% and 2.50% for the quarter ended September 30, 2024, compared to 3.34% and 2.37% (excluding loan discount accretion of $1.7 million) for the linked quarter.
•Noninterest Income Investments. Business First continued to show signs of improvement in noninterest income revenue sources. For the quarter ended September 30, 2024, the newly formed customer swap business produced revenue of $0.9 million, an increase of $0.7 million when compared to the linked quarter.
•Measured Loan Growth. Loans held for investment increased $57.3 million or 1.11%, 4.41% annualized, from the linked quarter.
•Deposit Growth. During the quarter ended September 30, 2024, deposits increased $77.3 million or 1.39%, 5.53% annualized, compared to the linked quarter.
•Oakwood Acquisition. On October 1, 2024, Business First closed its previously announced acquisition of Oakwood Bancshares, Inc. (Oakwood) and its wholly-owned subsidiary, Oakwood Bank. Oakwood had approximately $863.6 million of total assets, $700.2 million of loans, and $741.3 million of deposits as of September 30, 2024.
•b1BANK President Appointment. N. Jerome “Jerry” Vascocu Jr. was promoted to the position of b1BANK president, effective October 16, 2024. Prior to his promotion to President of b1BANK, Jerry Vascocu served as b1BANK's executive vice president and chief administrative officer since joining the bank in 2022. Jude Melville, who previously served as president, retains the titles of chairman and chief executive officer of the bank.
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Statement of Financial Condition
Loans
Loans held for investment increased $57.3 million or 1.11%, 4.41% annualized, from the linked quarter. Loan growth from the linked quarter was largely attributable to net growth in the commercial real estate portfolio of $58.3 million and $16.9 million in the C&D portfolio.
Production was led by the North Louisiana and New Orleans regions which accounted for approximately three-fourths of net loan growth from the linked quarter based on unpaid principal balance. Based on unpaid principal balances, Texas-based loans represent approximately 35% of the overall loan portfolio as of September 30, 2024, which was down from 36% from the linked quarter due to net paydowns in the quarter.
Credit Quality
Credit quality metrics remain solid, but some migration occurred during the quarter ended September 30, 2024, compared to the linked quarter. The ratio of nonperforming loans compared to loans held for investment increased 7 basis points to 0.50% at September 30, 2024, while the ratio of nonperforming assets compared to total assets increased 4 basis points to 0.40% at September 30, 2024. The increases were attributable to a $4.9 million increase in nonaccrual loans compared to the linked quarter.
Securities
The securities portfolio increased $41.0 million or 4.69%, from the linked quarter, impacted by $27.4 million in positive fair value adjustments. The securities portfolio, based on estimated fair value, represented 13.30% of total assets as of September 30, 2024.
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Deposits
Deposits increased $77.3 million or 1.39%, 5.53% annualized, for the quarter ended September 30, 2024, compared to the linked quarter. During the same quarter, interest-bearing accounts drove the increase with $196.5 million in growth, offset by $119.3 million reduction in non-interest bearing accounts compared to the linked quarter.
The increase in interest-bearing deposits was largely attributable to a $160.8 million increase in money market accounts. The weighted average money market portfolio rate declined by 35 basis points from the linked quarter, from 4.22% to 3.87%.
Borrowings
Borrowings increased $65.0 million, or 15.17%, from the linked quarter due primarily to an additional short-term, 14-day Federal Home Loan Bank advance with a rate of 4.88% which matured on October 1, 2024, and was subsequently refinanced.
Shareholders’ Equity
Accumulated other comprehensive income (AOCI) increased $21.6 million, or 31.92%, during the third quarter due to positive after-tax fair value adjustments in the securities portfolio. Book value per common share increased to $24.59 at September 30, 2024, compared to $23.24 at June 30, 2024, a 5.81% increase from the linked quarter. On a non-GAAP basis, tangible book value per common share increased from $19.22 at June 30, 2024, to $20.60 at September 30, 2024, a 7.18% increase from the linked quarter.
Results of Operations
Net Interest Income
For the quarter ended September 30, 2024, net interest income totaled $56.1 million, compared to $54.0 million from the linked quarter. Loan and interest-earning asset yields of 7.12% and 6.42%, respectively, increased 5 and 4 basis points, respectively, compared to 7.07% and 6.38% from the linked quarter. Both ratio increases were impacted by $1.0 million less in loan discount accretion. Net interest margin and net interest spread were 3.51% and 2.54% compared to 3.45% and 2.47% for the linked quarter. The overall cost of funds, which included noninterest-bearing deposits, remained stable at 3.07% from the linked quarter.
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Non-GAAP net interest income (excluding loan discount accretion of $0.7 million) totaled $55.4 million for the quarter ended September 30, 2024, compared to $52.3 million (excluding loan discount accretion of $1.7 million) for the linked quarter. Non-GAAP net interest margin and net interest spread (excluding loan discount accretion of $0.7 million) were 3.46% and 2.50%, respectively, for the quarter ended September 30, 2024, compared to 3.34% and 2.37% (excluding loan discount accretion of $1.7 million) for the linked quarter. Excluding loan discount accretion, loan yields increased 13 basis points to 7.07% from 6.94%, and interest earnings asset yields increased 10 basis points to 6.38% from 6.28%, compared to the linked quarter. Yield improvements were partially driven by Business First's increased production in its factoring portfolio.
Provision for Credit Losses
During the quarter ended September 30, 2024, Business First recorded a provision for credit losses of $1.7 million, compared to $1.3 million from the linked quarter. The current quarter’s reserve growth was largely attributable to net charge-offs, loan growth, changes in qualitative factors, and slight deterioration in the economic forecasts.
Other Income
For the quarter ended September 30, 2024, other income decreased $1.4 million or 11.51%, compared to the linked quarter. The net decrease was largely attributable to a $1.9 million gain on sale of a single, U.S. Small Business Administration (SBA) loan in the linked quarter, partially offset by an increase of $0.7 million in swap fee income for the quarter ended September 30, 2024.
Other Expenses
For the quarter ended September 30, 2024, other expenses decreased by $660,000 or 1.53%, compared to the linked quarter. The decrease was largely attributable to a $646,000 decrease in salaries and employee benefits due to lower self-insurance claims.
Excluding non-GAAP other expenses, Business First's core expenses decreased by $1.1 million from the linked quarter due to the previously mentioned $646,000 decrease in salaries and employee benefits and $511,000 in core conversion expenses attributable to Business First's core conversion scheduled for the second quarter of 2025.
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Return on Assets and Common Equity
Return to common shareholders on average assets and common equity, each on an annualized basis, were 0.97% and 10.76% for the quarter ended September 30, 2024, compared to 0.95% and 10.94%, respectively, for the linked quarter. Non-GAAP return to common shareholders on average assets and common equity, each on an annualized basis, were 1.01% and 11.23% for the quarter ended September 30, 2024, compared to 0.98% and 11.22%, respectively, for the linked quarter. Returns on equity for the current quarter were offset by the large increase in AOCI compared to the linked quarter. Excluding the $13.2 million average AOCI increase during the quarter, the non-GAAP return on common equity for the quarter improved to 11.48%.
Conference Call and Webcast
Executive management will host a conference call and webcast to discuss results on Thursday, October 24, 2024, at 4:00 p.m. Central Time. Interested parties may attend the call by dialing toll-free 1-800-715-9871 (North America only), conference ID 5274174, or asking for the Business First Bancshares conference call. The live webcast can be found at https://edge.media-server.com/mmc/p/a2ui6eo8. On the day of the presentation, the corresponding slide presentation will be available to view on the b1BANK website at https://www.b1bank.com/shareholder-info.
About Business First Bancshares, Inc.
Business First Bancshares, Inc., (Nasdaq: BFST) through its banking subsidiary b1BANK, has $6.9 billion in assets, $6.9 billion in assets under management through b1BANK’s affiliate Smith Shellnut Wilson, LLC (SSW) (excludes $0.9 billion of b1BANK assets managed by SSW) and operates Banking Centers and Loan Production Offices in markets across Louisiana and Texas providing commercial and personal banking products and services. Commercial banking services include commercial loans and letters of credit, working capital lines and equipment financing, and treasury management services. b1BANK was awarded #1 Best-In-State Bank, Louisiana, by Forbes and Statista, and is a multiyear winner of American Banker’s “Best Banks to Work For.” Visit b1BANK.com for more information.
Non-GAAP Financial Measures
This press release includes certain non-GAAP financial measures (e.g., referenced as “core” or “tangible”) intended to supplement, not substitute for, comparable GAAP measures. “Core” measures typically adjust income available to common shareholders for certain significant activities or transactions that, in management’s opinion, can distort period-to-period comparisons of Business First’s performance. Transactions that are typically excluded from non-GAAP “core” measures include realized and unrealized gains/losses on former bank premises and equipment, investment sales, acquisition-
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related expenses (including, but not limited to, legal costs, system conversion costs, severance and retention payments, etc.). “Tangible” measures adjust common equity by subtracting goodwill, core deposit intangibles, and customer intangibles, net of accumulated amortization. Management believes presentations of these non-GAAP financial measures provide useful supplemental information that is essential to a proper understanding of the operating results of Business First’s core business. These non-GAAP disclosures are not necessarily comparable to non-GAAP measures that may be presented by other companies. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided at the end of the tables below.
Special Note Regarding Forward-Looking Statements
Certain statements contained in this release may not be based on historical facts and are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may be identified by their reference to a future period or periods or by the use of forward-looking terminology such as “anticipate,” “believe,” “estimate,” “expect,” “may,” “might,” “will,” “would,” “could,” or “intend.” We caution you not to place undue reliance on the forward-looking statements contained in this news release, in that actual results could differ materially from those indicated in such forward-looking statements as a result of a variety of factors, including those factors specified in our Annual Report on Form 10-K and other public filings. We undertake no obligation to update these forward-looking statements to reflect events or circumstances that occur after the date of this news release.
Additional Information
For additional information about Business First, you may obtain Business First’s reports that are filed with the Securities and Exchange Commission (SEC) free of charge by using the SEC’s EDGAR service on the SEC’s website at www.SEC.gov or by contacting the SEC for further information at 1-800-SEC-0330. Alternatively, these documents can be obtained free of charge from Business First by directing a request to: Business First Bancshares, Inc., 500 Laurel Street, Suite 101, Baton Rouge, Louisiana 70801, Attention: Corporate Secretary.
No Offer or Solicitation
This release does not constitute or form part of any offer to sell, or a solicitation of an offer to purchase, any securities of Business First. There will be no sale of securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
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| Business First Bancshares, Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Information | |||||||||
| (Unaudited) | |||||||||
| Three Months Ended | |||||||||
| (Dollars in thousands) | September 30,<br>2024 | June 30,<br>2024 | September 30,<br>2023 | ||||||
| Balance Sheet Ratios | |||||||||
| Loans (HFI) to Deposits | 92.54 | % | 92.80 | % | 94.79 | % | |||
| Shareholders' Equity to Assets Ratio | 10.15 | % | 9.91 | % | 9.31 | % | |||
| Loans Receivable Held for Investment (HFI) | |||||||||
| Commercial | $ | 1,496,480 | $ | 1,520,392 | $ | 1,332,384 | |||
| Real Estate: | |||||||||
| Commercial | 2,256,370 | 2,198,119 | 2,128,855 | ||||||
| Construction | 654,353 | 637,466 | 708,835 | ||||||
| Residential | 743,878 | 743,876 | 686,921 | ||||||
| Total Real Estate | 3,654,601 | 3,579,461 | 3,524,611 | ||||||
| Consumer and Other | 69,037 | 62,999 | 63,278 | ||||||
| Total Loans (Held for Investment) | $ | 5,220,118 | $ | 5,162,852 | $ | 4,920,273 | |||
| Allowance for Loan Losses | |||||||||
| Balance, Beginning of Period | $ | 41,412 | $ | 41,165 | $ | 42,013 | |||
| Charge-Offs - Quarterly | (1,424) | (1,426) | (2,423) | ||||||
| Recoveries - Quarterly | 295 | 91 | 685 | ||||||
| Provision for Loan Losses - Quarterly | 1,871 | 1,582 | 854 | ||||||
| Balance, End of Period | $ | 42,154 | $ | 41,412 | $ | 41,129 | |||
| Allowance for Loan Losses to Total Loans (HFI) | 0.81 | % | 0.80 | % | 0.84 | % | |||
| Allowance for Credit Losses to Total Loans (HFI)/(1) | 0.86 | % | 0.86 | % | 0.90 | % | |||
| Net Charge-Offs (Recoveries) to Average Quarterly Total Loans | 0.02 | % | 0.03 | % | 0.04 | % | |||
| Remaining Loan Purchase Discount | $ | 9,003 | $ | 9,690 | $ | 14,752 | |||
| Nonperforming Assets | |||||||||
| Nonperforming | |||||||||
| Nonaccrual Loans | $ | 25,874 | $ | 21,008 | $ | 16,029 | |||
| Loans Past Due 90 Days or More | 185 | 1,355 | 247 | ||||||
| Total Nonperforming Loans | 26,059 | 22,363 | 16,276 | ||||||
| Other Nonperforming Assets: | |||||||||
| Other Real Estate Owned | 1,787 | 1,983 | 1,558 | ||||||
| Other Nonperforming Assets | — | — | — | ||||||
| Total other Nonperforming Assets | 1,787 | 1,983 | 1,558 | ||||||
| Total Nonperforming Assets | $ | 27,846 | $ | 24,346 | $ | 17,834 | |||
| Nonperforming Loans to Total Loans (HFI) | 0.50 | % | 0.43 | % | 0.33 | % | |||
| Nonperforming Assets to Total Assets | 0.40 | % | 0.36 | % | 0.27 | % | |||
| (1) Allowance for Credit Losses includes the Allowance for Loan Loss and Reserve for Unfunded Commitments. | |||||||||
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| Business First Bancshares, Inc. | |||||||||||||||
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| Selected Financial Information | |||||||||||||||
| (Unaudited) | |||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||
| (Dollars in thousands, except per share data) | September 30,<br>2024 | June 30,<br>2024 | September 30,<br>2023 | September 30,<br>2024 | September 30,<br>2023 | ||||||||||
| Per Share Data | |||||||||||||||
| Basic Earnings per Common Share | $ | 0.65 | $ | 0.63 | $ | 0.76 | $ | 1.77 | $ | 2.04 | |||||
| Diluted Earnings per Common Share | 0.65 | 0.62 | 0.76 | 1.75 | 2.02 | ||||||||||
| Dividends per Common Share | 0.14 | 0.14 | 0.12 | 0.42 | 0.36 | ||||||||||
| Book Value per Common Share | 24.59 | 23.24 | 21.01 | 24.59 | 21.01 | ||||||||||
| Average Common Shares Outstanding | 25,289,094 | 25,265,495 | 25,111,548 | 25,227,319 | 25,064,856 | ||||||||||
| Average Diluted Common Shares Outstanding | 25,440,247 | 25,395,614 | 25,288,660 | 25,421,746 | 25,281,908 | ||||||||||
| End of Period Common Shares Outstanding | 25,519,501 | 25,502,175 | 25,344,168 | 25,519,501 | 25,344,168 | ||||||||||
| Annualized Performance Ratios | |||||||||||||||
| Return to Common Shareholders on Average Assets (1) | 0.97 | % | 0.95 | % | 1.17 | % | 0.89 | % | 1.09 | % | |||||
| Return to Common Shareholders on Average Common Equity (1) | 10.76 | % | 10.94 | % | 14.16 | % | 10.08 | % | 13.00 | % | |||||
| Net Interest Margin (1) | 3.51 | % | 3.45 | % | 3.61 | % | 3.43 | % | 3.66 | % | |||||
| Net Interest Spread (1) | 2.54 | % | 2.47 | % | 2.68 | % | 2.46 | % | 2.79 | % | |||||
| Efficiency Ratio (2) | 63.45 | % | 65.14 | % | 59.23 | % | 66.02 | % | 61.04 | % | |||||
| Total Quarterly/Year-to-Date Average Assets | $ | 6,788,644 | $ | 6,711,173 | $ | 6,474,935 | $ | 6,722,716 | $ | 6,290,886 | |||||
| Total Quarterly/Year-to-Date Average Common Equity | 610,018 | 583,184 | 535,211 | 590,354 | 526,398 | ||||||||||
| Other Expenses | |||||||||||||||
| Salaries and Employee Benefits | $ | 24,877 | $ | 25,523 | $ | 22,487 | $ | 75,816 | $ | 68,002 | |||||
| Occupancy and Bank Premises | 2,630 | 2,634 | 2,428 | 7,778 | 7,131 | ||||||||||
| Depreciation and Amortization | 1,844 | 1,742 | 1,690 | 5,262 | 5,120 | ||||||||||
| Data Processing | 2,881 | 2,641 | 2,024 | 8,101 | 6,544 | ||||||||||
| FDIC Assessment Fees | 887 | 874 | 779 | 2,589 | 2,804 | ||||||||||
| Legal and Other Professional Fees | 873 | 1,042 | 766 | 2,781 | 2,340 | ||||||||||
| Advertising and Promotions | 1,057 | 966 | 1,202 | 3,168 | 3,576 | ||||||||||
| Utilities and Communications | 716 | 718 | 758 | 2,108 | 2,199 | ||||||||||
| Ad Valorem Shares Tax | 900 | 900 | 965 | 2,700 | 2,895 | ||||||||||
| Directors' Fees | 245 | 268 | 278 | 795 | 817 | ||||||||||
| Other Real Estate Owned Expenses and Write-Downs | 11 | 71 | 14 | 119 | 183 | ||||||||||
| Merger and Conversion-Related Expenses | 319 | 409 | 2 | 1,068 | 173 | ||||||||||
| Other | 5,210 | 5,322 | 5,214 | 15,797 | 15,204 | ||||||||||
| Total Other Expenses | $ | 42,450 | $ | 43,110 | $ | 38,607 | $ | 128,082 | $ | 116,988 | |||||
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| Business First Bancshares, Inc. | ||||||||||
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| Selected Financial Information | ||||||||||
| (Unaudited) | ||||||||||
| Three Months Ended | Nine Months Ended | |||||||||
| (Dollars in thousands, except per share data) | September 30,<br>2024 | June 30,<br>2024 | September 30,<br>2023 | September 30,<br>2024 | September 30,<br>2023 | |||||
| Other Income | ||||||||||
| Service Charges on Deposit Accounts | $ | 2,723 | $ | 2,537 | $ | 2,540 | $ | 7,699 | $ | 7,234 |
| Loss on Sales of Securities | (13) | — | — | (14) | (62) | |||||
| Debit Card and ATM Fee Income | 1,864 | 1,950 | 1,581 | 5,590 | 4,797 | |||||
| Bank-Owned Life Insurance Income | 679 | 627 | 604 | 1,885 | 1,675 | |||||
| Gain on Sales of Loans | 122 | 2,460 | 321 | 2,721 | 1,426 | |||||
| Mortgage Origination Income | 98 | 35 | 108 | 202 | 238 | |||||
| Fees and Brokerage Commission | 1,968 | 1,875 | 1,933 | 5,780 | 5,537 | |||||
| Gain on Sales of Other Real Estate Owned | (16) | 2 | 85 | 49 | 308 | |||||
| Losses on Disposal of Other Assets | — | (15) | (23) | (15) | (14) | |||||
| Gain on Sale of Branch | — | — | 932 | — | 932 | |||||
| Gain on Extinguishment of Debt | — | — | 517 | — | — | |||||
| Swap Fee Income | 937 | 285 | — | 1,451 | 1,458 | |||||
| Pass-Through Income (Loss) from Other Investments | 335 | 392 | (11) | 1,022 | 2,974 | |||||
| Other | 2,077 | 2,028 | 1,296 | 5,966 | 3,726 | |||||
| Total Other Income | $ | 10,774 | $ | 12,176 | $ | 9,883 | $ | 32,336 | $ | 30,229 |
| (1) Average outstanding balances are determined utilizing daily averages and average yield/rate is calculated utilizing an actual day count convention. | ||||||||||
| (2) Noninterest expense (excluding provision for loan losses) divided by noninterest income (excluding security sales gains/losses) plus net interest income less gain/loss on sales of securities. | ||||||||||
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|---|---|---|---|---|---|---|
| Consolidated Balance Sheets | ||||||
| (Unaudited) | ||||||
| (Dollars in thousands) | September 30,<br>2024 | June 30,<br>2024 | September 30,<br>2023 | |||
| Assets | ||||||
| Cash and Due From Banks | $ | 213,199 | $ | 208,051 | $ | 191,461 |
| Federal Funds Sold | 169,980 | 113,587 | 196,616 | |||
| Securities Purchased under Agreements to Resell | 25,879 | — | — | |||
| Securities Available for Sale, at Fair Values | 916,091 | 875,048 | 849,704 | |||
| Mortgage Loans Held for Sale | — | 680 | 652 | |||
| Loans and Lease Receivable | 5,220,118 | 5,162,852 | 4,920,273 | |||
| Allowance for Loan Losses | (42,154) | (41,412) | (41,129) | |||
| Net Loans and Lease Receivable | 5,177,964 | 5,121,440 | 4,879,144 | |||
| Premises and Equipment, Net | 67,617 | 68,545 | 64,674 | |||
| Accrued Interest Receivable | 32,547 | 30,617 | 28,060 | |||
| Other Equity Securities | 39,555 | 38,805 | 32,591 | |||
| Other Real Estate Owned | 1,787 | 1,983 | 1,558 | |||
| Cash Value of Life Insurance | 101,362 | 100,684 | 95,906 | |||
| Deferred Taxes, Net | 20,852 | 25,888 | 34,660 | |||
| Goodwill | 91,527 | 91,527 | 88,391 | |||
| Core Deposit and Customer Intangibles | 10,326 | 10,849 | 12,418 | |||
| Other Assets | 19,963 | 16,185 | 12,946 | |||
| Total Assets | $ | 6,888,649 | $ | 6,703,889 | $ | 6,488,781 |
| Liabilities | ||||||
| Deposits | ||||||
| Noninterest-Bearing | $ | 1,190,942 | $ | 1,310,204 | $ | 1,412,406 |
| Interest-Bearing | 4,450,004 | 4,253,466 | 3,778,317 | |||
| Total Deposits | 5,640,946 | 5,563,670 | 5,190,723 | |||
| Securities Sold Under Agreements to Repurchase | 21,529 | 18,445 | 23,245 | |||
| Bank Term Funding Program | — | — | 300,009 | |||
| Federal Home Loan Bank Borrowings | 367,202 | 305,208 | 214,184 | |||
| Subordinated Debt | 99,818 | 99,875 | 100,048 | |||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 5,000 | 5,000 | |||
| Accrued Interest Payable | 3,752 | 4,517 | 11,188 | |||
| Other Liabilities | 50,878 | 42,644 | 4,018 | |||
| Total Liabilities | 6,189,125 | 6,039,359 | 5,884,415 | |||
| Shareholders' Equity | ||||||
| Preferred Stock | 71,930 | 71,930 | 71,930 | |||
| Common Stock | 25,520 | 25,502 | 25,344 | |||
| Additional Paid-In Capital | 398,237 | 397,851 | 396,121 | |||
| Retained Earnings | 249,981 | 237,031 | 205,207 | |||
| Accumulated Other Comprehensive Loss | (46,144) | (67,784) | (94,236) | |||
| Total Shareholders' Equity | 699,524 | 664,530 | 604,366 | |||
| Total Liabilities and Shareholders' Equity | $ | 6,888,649 | $ | 6,703,889 | $ | 6,488,781 |
| b1BANK.com | ||||||
| --- |
12
| Business First Bancshares, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Statements of Income | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (Dollars in thousands) | September 30,<br>2024 | June 30,<br>2024 | September 30,<br>2023 | September 30,<br>2024 | September 30,<br>2023 | |||||||
| Interest Income: | ||||||||||||
| Interest and Fees on Loans | $ | 93,307 | $ | 90,604 | $ | 84,575 | $ | 269,858 | $ | 237,566 | ||
| Interest and Dividends on Securities | 6,417 | 5,933 | 5,053 | 17,949 | 14,932 | |||||||
| Interest on Federal Funds Sold and Due From Banks | 3,017 | 3,333 | 3,694 | 10,815 | 6,164 | |||||||
| Total Interest Income | 102,741 | 99,870 | 93,322 | 298,622 | 258,662 | |||||||
| Interest Expense: | ||||||||||||
| Interest on Deposits | 41,303 | 40,900 | 30,110 | 120,232 | 72,718 | |||||||
| Interest on Borrowings | 5,324 | 4,961 | 7,918 | 16,736 | 24,575 | |||||||
| Total Interest Expense | 46,627 | 45,861 | 38,028 | 136,968 | 97,293 | |||||||
| Net Interest Income | 56,114 | 54,009 | 55,294 | 161,654 | 161,369 | |||||||
| Provision for Credit Losses | 1,665 | 1,310 | 604 | 4,161 | 4,364 | |||||||
| Net Interest Income After Provision for Credit Losses | 54,449 | 52,699 | 54,690 | 157,493 | 157,005 | |||||||
| Other Income: | ||||||||||||
| Service Charges on Deposit Accounts | 2,723 | 2,537 | 2,540 | 7,699 | 7,234 | |||||||
| Loss on Sales of Securities | (13) | — | — | (14) | (62) | |||||||
| Gain on Sales of Loans | 122 | 2,460 | 321 | 2,721 | 1,426 | |||||||
| Other Income | 7,942 | 7,179 | 7,022 | 21,930 | 21,631 | |||||||
| Total Other Income | 10,774 | 12,176 | 9,883 | 32,336 | 30,229 | |||||||
| Other Expenses: | ||||||||||||
| Salaries and Employee Benefits | 24,877 | 25,523 | 22,487 | 75,816 | 68,002 | |||||||
| Occupancy and Equipment Expense | 5,828 | 5,717 | 5,445 | 16,902 | 15,558 | |||||||
| Merger and Conversion-Related Expense | 319 | 409 | 2 | 1,068 | 173 | |||||||
| Other Expenses | 11,426 | 11,461 | 10,673 | 34,296 | 33,255 | |||||||
| Total Other Expenses | 42,450 | 43,110 | 38,607 | 128,082 | 116,988 | |||||||
| Income Before Income Taxes | 22,773 | 21,765 | 25,966 | 61,747 | 70,246 | |||||||
| Provision for Income Taxes | 4,930 | 4,559 | 5,511 | 13,128 | 15,027 | |||||||
| Net Income | 17,843 | 17,206 | 20,455 | 48,619 | 55,219 | |||||||
| Preferred Stock Dividends | 1,351 | 1,350 | 1,351 | 4,051 | 4,051 | |||||||
| Net Income Available to Common Shareholders | $ | 16,492 | $ | 15,856 | $ | 19,104 | $ | 44,568 | $ | 51,168 | b1BANK.com | |
| --- |
13
| Business First Bancshares, Inc. | ||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Net Interest Margin | ||||||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||
| September 30, 2024 | June 30, 2024 | September 30, 2023 | ||||||||||||||||||
| (Dollars in thousands) | Average Outstanding Balance | Interest Earned/Interest Paid | Average Yield/Rate | Average Outstanding Balance | Interest Earned/Interest Paid | Average Yield/Rate | Average Outstanding Balance | Interest Earned/Interest Paid | Average Yield/Rate | |||||||||||
| Assets | ||||||||||||||||||||
| Interest Earning Assets: | ||||||||||||||||||||
| Total Loans | $ | 5,212,948 | $ | 93,307 | 7.12 | % | $ | 5,153,642 | $ | 90,604 | 7.07 | % | $ | 4,906,917 | $ | 84,575 | 6.84 | % | ||
| Securities | 924,012 | 6,417 | 2.76 | % | 891,384 | 5,933 | 2.68 | % | 885,792 | 5,053 | 2.26 | % | ||||||||
| Interest-Bearing Deposit in Other Banks | 227,035 | 3,017 | 5.29 | % | 246,590 | 3,333 | 5.44 | % | 278,420 | 3,694 | 5.26 | % | ||||||||
| Total Interest Earning Assets | 6,363,995 | 102,741 | 6.42 | % | 6,291,616 | 99,870 | 6.38 | % | 6,071,129 | 93,322 | 6.10 | % | ||||||||
| Allowance for Loan Losses | (41,554) | (41,450) | (42,120) | |||||||||||||||||
| Noninterest- Earning Assets | 466,203 | 461,007 | 445,926 | |||||||||||||||||
| Total Assets | $ | 6,788,644 | $ | 102,741 | $ | 6,711,173 | $ | 99,870 | $ | 6,474,935 | $ | 93,322 | ||||||||
| Liabilities and Shareholders' Equity | ||||||||||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||||||||||
| Interest-Bearing Deposits | $ | 4,308,780 | $ | 41,303 | 3.81 | % | $ | 4,268,207 | $ | 40,900 | 3.85 | % | $ | 3,703,682 | $ | 30,110 | 3.23 | % | ||
| Subordinated Debt | 99,854 | 1,353 | 5.39 | % | 99,913 | 1,354 | 5.45 | % | 100,400 | 1,363 | 5.39 | % | ||||||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 114 | 9.07 | % | 5,000 | 113 | 9.09 | % | 5,000 | 111 | 8.81 | % | ||||||||
| Bank Term Funding Program | — | — | — | % | — | — | — | % | 300,000 | 3,422 | 4.53 | % | ||||||||
| Advances from Federal Home Loan Bank (FHLB) | 347,476 | 3,723 | 4.26 | % | 324,691 | 3,372 | 4.18 | % | 284,930 | 2,875 | 4.00 | % | ||||||||
| Other Borrowings | 20,971 | 134 | 2.54 | % | 19,164 | 122 | 2.56 | % | 23,542 | 147 | 2.48 | % | ||||||||
| Total Interest-Bearing Liabilities | $ | 4,782,081 | $ | 46,627 | 3.88 | % | $ | 4,716,975 | $ | 45,861 | 3.91 | % | $ | 4,417,554 | $ | 38,028 | 3.42 | % | ||
| Noninterest-Bearing Liabilities: | ||||||||||||||||||||
| Noninterest-Bearing Deposits | $ | 1,269,282 | $ | 1,297,085 | $ | 1,399,293 | ||||||||||||||
| Other Liabilities | 55,333 | 41,999 | 50,947 | |||||||||||||||||
| Total Noninterest-Bearing Liabilities | 1,324,615 | 1,339,084 | 1,450,240 | |||||||||||||||||
| Shareholders' Equity: | ||||||||||||||||||||
| Common Shareholders' Equity | 610,018 | 583,184 | 535,211 | |||||||||||||||||
| Preferred Equity | 71,930 | 71,930 | 71,930 | |||||||||||||||||
| Total Shareholders' Equity | 681,948 | 655,114 | 607,141 | |||||||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 6,788,644 | $ | 6,711,173 | $ | 6,474,935 | ||||||||||||||
| Net Interest Spread | 2.54 | % | 2.47 | % | 2.68 | % | ||||||||||||||
| Net Interest Income | $ | 56,114 | $ | 54,009 | $ | 55,294 | ||||||||||||||
| Net Interest Margin | 3.51 | % | 3.45 | % | 3.61 | % | ||||||||||||||
| Overall Cost of Funds | 3.07 | % | 3.07 | % | 2.59 | % | ||||||||||||||
| Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention. | b1BANK.com | |||||||||||||||||||
| --- |
14
| Business First Bancshares, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Consolidated Net Interest Margin | ||||||||||||
| (Unaudited) | ||||||||||||
| Six Months Ended | ||||||||||||
| (Dollars in thousands) | September 30, 2024 | September 30, 2023 | ||||||||||
| Average Outstanding Balance | Interest Earned/Interest Paid | Average Yield/Rate | Average Outstanding Balance | Interest Earned/Interest Paid | Average Yield/Rate | |||||||
| Assets | ||||||||||||
| Interest Earning Assets: | ||||||||||||
| Total Loans | $ | 5,131,474 | $ | 269,858 | 7.02 | % | $ | 4,829,537 | $ | 237,566 | 6.58 | % |
| Securities | 901,525 | 17,949 | 2.66 | % | 909,901 | 14,932 | 2.19 | % | ||||
| Interest-Bearing Deposit in Other Banks | 267,815 | 10,815 | 5.39 | % | 150,995 | 6,164 | 5.46 | % | ||||
| Total Interest Earning Assets | 6,300,814 | 298,622 | 6.33 | % | 5,890,433 | 258,662 | 5.87 | % | ||||
| Allowance for Loan Losses | (41,178) | (41,888) | ||||||||||
| Noninterest- Earning Assets | 463,080 | 442,341 | ||||||||||
| Total Assets | $ | 6,722,716 | $ | 298,622 | $ | 6,290,886 | $ | 258,662 | ||||
| Liabilities and Shareholders' Equity | ||||||||||||
| Interest-Bearing Liabilities: | ||||||||||||
| Interest-Bearing Deposits | $ | 4,216,866 | $ | 120,232 | 3.81 | % | $ | 3,482,797 | $ | 72,718 | 2.79 | % |
| Subordinated Debt | 99,913 | 4,063 | 5.43 | % | 106,555 | 4,003 | 5.02 | % | ||||
| Subordinated Debt - Trust Preferred Securities | 5,000 | 340 | 9.08 | % | 5,000 | 317 | 8.48 | % | ||||
| Bank Term Funding Program | 86,496 | 2,788 | 4.31 | % | 238,274 | 8,111 | 4.55 | % | ||||
| Advances from Federal Home Loan Bank (FHLB) | 298,735 | 9,189 | 4.11 | % | 368,542 | 11,755 | 4.26 | % | ||||
| Other Borrowings | 18,758 | 356 | 2.54 | % | 22,177 | 389 | 2.35 | % | ||||
| Total Interest-Bearing Liabilities | $ | 4,725,768 | $ | 136,968 | 3.87 | % | $ | 4,223,345 | $ | 97,293 | 3.08 | % |
| Noninterest-Bearing Liabilities: | ||||||||||||
| Noninterest-Bearing Deposits | $ | 1,283,035 | $ | 1,427,821 | ||||||||
| Other Liabilities | 51,629 | 41,392 | ||||||||||
| Total Noninterest-Bearing Liabilities | 1,334,664 | 1,469,213 | ||||||||||
| Shareholders' Equity: | ||||||||||||
| Common Shareholders' Equity | 590,354 | 526,398 | ||||||||||
| Preferred Equity | 71,930 | 71,930 | ||||||||||
| Total Shareholders' Equity | 662,284 | 598,328 | ||||||||||
| Total Liabilities and Shareholders' Equity | $ | 6,722,716 | $ | 6,290,886 | ||||||||
| Net Interest Spread | 2.46 | % | 2.79 | % | ||||||||
| Net Interest Income | $ | 161,654 | $ | 161,369 | ||||||||
| Net Interest Margin | 3.43 | % | 3.66 | % | ||||||||
| Overall Cost of Funds | 3.04 | % | 2.30 | % | ||||||||
| Note: Average outstanding balances are determined utilizing daily averages and an actual day count convention. | ||||||||||||
| b1BANK.com | ||||||||||||
| --- |
15
| Business First Bancshares, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Measures | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (Dollars in thousands, except per share data) | September 30,<br>2024 | June 30,<br>2024 | September 30,<br>2023 | September 30,<br>2024 | September 30,<br>2023 | |||||||
| Interest Income: | ||||||||||||
| Interest income | $ | 102,741 | $ | 99,870 | $ | 93,322 | $ | 298,622 | $ | 258,662 | ||
| Core interest income | 102,741 | 99,870 | 93,322 | 298,622 | 258,662 | |||||||
| Interest Expense: | ||||||||||||
| Interest expense | 46,627 | 45,861 | 38,028 | 136,968 | 97,293 | |||||||
| Core interest expense | 46,627 | 45,861 | 38,028 | 136,968 | 97,293 | |||||||
| Provision for Credit Losses: (b) | ||||||||||||
| Provision for credit losses | 1,665 | 1,310 | 604 | 4,161 | 4,364 | |||||||
| Core provision expense | 1,665 | 1,310 | 604 | 4,161 | 4,364 | |||||||
| Other Income: | ||||||||||||
| Other income | 10,774 | 12,176 | 9,883 | 32,336 | 30,229 | |||||||
| Gain on former bank premises and equipment | — | — | — | (50) | — | |||||||
| Losses on sale of securities | 13 | — | — | 14 | 62 | |||||||
| Gain on sale of branch | — | — | (932) | — | (932) | |||||||
| Gain on extinguishment of debt | — | — | (517) | — | (1,458) | |||||||
| Core other income | 10,787 | 12,176 | 8,434 | 32,300 | 27,901 | |||||||
| Other Expense: | ||||||||||||
| Other expense | 42,450 | 43,110 | 38,607 | 128,082 | 116,988 | |||||||
| Acquisition-related expenses (2) | (319) | (419) | (2) | (1,453) | (173) | |||||||
| Core conversion expenses | (511) | — | — | (511) | — | |||||||
| Core other expense | 41,620 | 42,691 | 38,605 | 126,118 | 116,815 | |||||||
| Pre-Tax Income: (a) | ||||||||||||
| Pre-tax income | 22,773 | 21,765 | 25,966 | 61,747 | 70,246 | |||||||
| Gain on former bank premises and equipment | — | — | — | (50) | — | |||||||
| Losses on sale of securities | 13 | — | — | 14 | 62 | |||||||
| Gain on sale of branch | — | — | (932) | (932) | ||||||||
| Gain on extinguishment of debt | — | — | (517) | — | (1,458) | |||||||
| Acquisition-related expenses (2) | 319 | 419 | 2 | 1,453 | 173 | |||||||
| Core conversion expenses | 511 | — | — | 511 | — | |||||||
| Core pre-tax income | 23,616 | 22,184 | 24,519 | 63,675 | 68,091 | |||||||
| Provision for Income Taxes: (1) | ||||||||||||
| Provision for income taxes | 4,930 | 4,559 | 5,511 | 13,128 | 15,027 | |||||||
| Tax on losses on former bank premises and equipment | — | — | — | (11) | — | |||||||
| Tax on losses on sale of securities | 3 | — | — | 3 | 13 | |||||||
| Tax on gain on sale of branch | — | — | (197) | — | (197) | |||||||
| Gain on extinguishment of debt | — | — | (109) | — | (308) | |||||||
| Tax on acquisition-related expenses (2) | — | 2 | — | 91 | 20 | b1BANK.com | ||||||
| --- |
16
| Business First Bancshares, Inc. | ||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Measures | ||||||||||||
| (Unaudited) | ||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||
| (Dollars in thousands, except per share data) | September 30,<br>2024 | June 30,<br>2024 | September 30,<br>2023 | September 30,<br>2024 | September 30,<br>2023 | |||||||
| Tax on core conversion expenses | 108 | — | — | 108 | — | |||||||
| Core provision for income taxes | 5,041 | 4,561 | 5,205 | 13,319 | 14,555 | |||||||
| Preferred Dividends: | ||||||||||||
| Preferred dividends | 1,351 | 1,350 | 1,351 | 4,051 | 4,051 | |||||||
| Core preferred dividends | 1,351 | 1,350 | 1,351 | 4,051 | 4,051 | |||||||
| Net Income Available to Common Shareholders: | ||||||||||||
| Net income available to common shareholders | 16,492 | 15,856 | 19,104 | 44,568 | 51,168 | |||||||
| Losses on former bank premises and equipment, net of tax | — | — | — | (39) | — | |||||||
| Losses on sale of securities, net of tax | 10 | — | — | 11 | 49 | |||||||
| Gain on sale of branch | — | (735) | (735) | |||||||||
| Gain on extinguishment of debt, net of tax | — | — | (408) | — | (1,150) | |||||||
| Acquisition-related expenses (2), net of tax | 319 | 417 | 2 | 1,362 | 153 | |||||||
| Core conversion expenses, net of tax | 403 | — | — | 403 | — | |||||||
| Core net income available to common shareholders | $ | 17,224 | $ | 16,273 | $ | 17,963 | $ | 46,305 | $ | 49,485 | ||
| Pre-tax, pre-provision earnings available to common shareholders (a+b) | $ | 24,438 | $ | 23,075 | $ | 26,570 | $ | 65,908 | $ | 74,610 | ||
| Losses on former bank premises and equipment | — | — | — | (50) | — | |||||||
| Loss on sale of securities | 13 | — | — | 14 | 62 | b1BANK.com | ||||||
| --- |
17
| Business First Bancshares, Inc. | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Measures | ||||||||||
| (Unaudited) | ||||||||||
| Three Months Ended | Nine Months Ended | |||||||||
| (Dollars in thousands, except per share data) | September 30,<br>2024 | June 30,<br>2024 | September 30,<br>2023 | September 30,<br>2024 | September 30,<br>2023 | |||||
| Gain on sale of branch | — | (932) | (932) | |||||||
| Gain on extinguishment of debt | — | — | (517) | — | (1,458) | |||||
| Acquisition-related expenses (2) | 319 | 419 | 2 | 1,453 | 173 | |||||
| Occupancy and bank premises - storm repair | 511 | — | — | 511 | — | |||||
| Core pre-tax, pre-provision earnings | $ | 25,281 | $ | 23,494 | $ | 25,123 | $ | 67,836 | $ | 72,455 |
| Average Diluted Common Shares Outstanding | 25,440,247 | 23,395,614 | 25,288,660 | 25,421,746 | 25,281,908 | |||||
| Diluted Earnings Per Common Share: | ||||||||||
| Diluted earnings per common share | $ | 0.65 | $ | 0.62 | $ | 0.76 | $ | 1.75 | $ | 2.02 |
| Losses on former bank premises and equipment, net of tax | — | — | — | — | — | |||||
| Loss on sale of securities, net of tax | — | — | — | — | — | |||||
| Gain on sale of branch, net of tax | — | — | (0.03) | — | (0.03) | |||||
| Gain on extinguishment of debt, net of tax | — | — | (0.02) | — | (0.04) | |||||
| Acquisition-related expenses (2), net of tax | 0.01 | 0.02 | — | 0.05 | 0.01 | |||||
| Core conversion expenses,net of tax | 0.02 | — | — | 0.02 | — | |||||
| Core diluted earnings per common share | $ | 0.68 | $ | 0.64 | $ | 0.71 | $ | 1.82 | $ | 1.96 |
| Pre-tax, pre-provision profit diluted earnings per common share | $ | 0.96 | $ | 0.91 | $ | 1.05 | $ | 2.59 | $ | 2.95 |
| Losses on former bank premises and equipment | — | — | — | — | — | |||||
| Loss on sale of securities | — | — | — | — | — | |||||
| Gain on sale of branch | — | — | (0.04) | — | (0.04) | |||||
| Gain on extinguishment of debt | — | — | (0.02) | — | (0.06) | |||||
| Acquisition-related expenses (2) | 0.01 | 0.02 | — | 0.06 | 0.01 | |||||
| Core converison expenses | 0.02 | — | — | 0.02 | — | |||||
| Core pre-tax, pre-provision diluted earnings per common share | $ | 0.99 | $ | 0.93 | $ | 0.99 | $ | 2.67 | $ | 2.86 |
| (1) Tax rates, exclusive of certain nondeductible merger-related expenses and goodwill, utilized were 21.129% for 2024 and 2023. These rates approximated the marginal tax rates. | ||||||||||
| (2) Includes merger and conversion-related expenses and salary and employee benefits. | ||||||||||
| b1BANK.com | ||||||||||
| --- |
18
| Business First Bancshares, Inc. | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Measures | |||||||||
| (Unaudited) | |||||||||
| (Dollars in thousands, except per share data) | September 30,<br>2024 | June 30,<br>2024 | September 30,<br>2023 | ||||||
| Total Shareholders' (Common) Equity: | |||||||||
| Total shareholders' equity | $ | 699,524 | $ | 664,530 | $ | 604,366 | |||
| Preferred stock | (71,930) | (71,930) | (71,930) | ||||||
| Total common shareholders' equity | 627,594 | 592,600 | 532,436 | ||||||
| Goodwill | (91,527) | (91,527) | (88,391) | ||||||
| Core deposit and customer intangible | (10,326) | (10,849) | (12,418) | ||||||
| Total tangible common equity | $ | 525,741 | $ | 490,224 | $ | 431,627 | |||
| Total Assets: | |||||||||
| Total assets | $ | 6,888,649 | $ | 6,703,889 | $ | 6,488,781 | |||
| Goodwill | (91,527) | (91,527) | (88,391) | ||||||
| Core deposit and customer intangible | (10,326) | (10,849) | (12,418) | ||||||
| Total tangible assets | $ | 6,786,796 | $ | 6,601,513 | $ | 6,387,972 | |||
| Common shares outstanding | 25,519,501 | 25,502,175 | 25,344,168 | ||||||
| Book value per common share | $ | 24.59 | $ | 23.24 | $ | 21.01 | |||
| Tangible book value per common share | $ | 20.60 | $ | 19.22 | $ | 17.03 | |||
| Common equity to total assets | 9.11 | % | 8.84 | % | 8.21 | % | |||
| Tangible common equity to tangible assets | 7.75 | % | 7.43 | % | 6.76 | % | |||
| b1BANK.com | |||||||||
| --- |
19
| Business First Bancshares, Inc. | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Measures | ||||||||||||||||||
| (Unaudited) | ||||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||||
| (Dollars in thousands, except per share data) | September 30,<br>2024 | June 30,<br>2024 | September 30,<br>2023 | September 30,<br>2024 | September 30,<br>2023 | |||||||||||||
| Total Quarterly Average Assets | $ | 6,788,644 | $ | 6,711,173 | $ | 6,474,935 | $ | 6,722,716 | $ | 6,290,886 | ||||||||
| Total Quarterly Average Common Equity | $ | 610,018 | $ | 583,184 | $ | 535,211 | $ | 590,354 | $ | 526,398 | ||||||||
| Net Income Available to Common Shareholders: | ||||||||||||||||||
| Net income available to common shareholders | $ | 16,492 | $ | 15,856 | $ | 19,104 | $ | 44,568 | $ | 51,168 | ||||||||
| Gain on former bank premises and equipment, net of tax | — | — | — | (39) | — | |||||||||||||
| Loss on sale of securities, net of tax | 10 | — | — | 11 | 49 | |||||||||||||
| Gain on sale of branch, net of tax | — | — | (735) | — | (735) | |||||||||||||
| Gain on extinguishment of debt, net of tax | — | — | (408) | — | (1,150) | |||||||||||||
| Acquisition-related expenses, net of tax | 319 | 417 | 2 | 1,362 | 153 | |||||||||||||
| Core conversion expenses, net of tax | 403 | — | — | 403 | — | |||||||||||||
| Core net income available to common shareholders | $ | 17,224 | $ | 16,273 | $ | 17,963 | $ | 46,305 | $ | 49,485 | ||||||||
| Return to common shareholders on average assets (annualized) (2) | 0.97 | % | 0.95 | % | 1.17 | % | 0.89 | % | 1.09 | % | ||||||||
| Core return on average assets (annualized) (2) | 1.01 | % | 0.98 | % | 1.10 | % | 0.92 | % | 1.05 | % | ||||||||
| Return to common shareholders on average common equity (annualized) (2) | 10.76 | % | 10.94 | % | 14.16 | % | 10.08 | % | 13.00 | % | ||||||||
| Core return on average common equity (annualized) (2) | 11.23 | % | 11.22 | % | 13.32 | % | 10.48 | % | 12.57 | % | ||||||||
| Interest Income: | ||||||||||||||||||
| Interest income | $ | 102,741 | $ | 99,870 | $ | 93,322 | $ | 298,622 | $ | 258,662 | ||||||||
| Core interest income | 102,741 | 99,870 | 93,322 | 298,622 | 258,662 | |||||||||||||
| Interest Expense: | ||||||||||||||||||
| Interest expense | 46,627 | 45,861 | 38,028 | 136,968 | 97,293 | |||||||||||||
| Core interest expense | 46,627 | 45,861 | 38,028 | 136,968 | 97,293 | |||||||||||||
| Other Income: | ||||||||||||||||||
| Other income | 10,774 | 12,176 | 9,883 | 32,336 | 30,229 | |||||||||||||
| Gain on former bank premises and equipment | — | — | — | (50) | — | |||||||||||||
| Loss on sale of securities | 13 | — | — | 14 | 62 | |||||||||||||
| Gain on sale of branch | — | — | (932) | — | (932) | |||||||||||||
| Gain on extinguishment of debt | — | — | (517) | — | — | (1,458) | ||||||||||||
| Core other income | 10,787 | 12,176 | 8,434 | 32,300 | 27,901 | |||||||||||||
| Other Expense: | ||||||||||||||||||
| Other expense | 42,450 | 43,110 | 38,607 | 128,082 | 116,988 | |||||||||||||
| Acquisition-related expenses | (319) | (419) | (2) | (1,453) | (173) | b1BANK.com | ||||||||||||
| --- |
20
| Business First Bancshares, Inc. | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Non-GAAP Measures | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three Months Ended | Nine Months Ended | ||||||||||||||||
| (Dollars in thousands, except per share data) | September 30,<br>2024 | June 30,<br>2024 | September 30,<br>2023 | September 30,<br>2024 | September 30,<br>2023 | ||||||||||||
| Core conversion expenses | (511) | — | — | (511) | — | ||||||||||||
| Core other expense | $ | 41,620 | $ | 42,691 | $ | 38,605 | $ | 126,118 | $ | 116,815 | |||||||
| Efficiency Ratio: | |||||||||||||||||
| Other expense (a) | $ | 42,450 | $ | 43,110 | $ | 38,607 | $ | 128,082 | $ | 116,988 | |||||||
| Core other expense (c) | $ | 41,620 | $ | 42,691 | $ | 38,605 | $ | 126,118 | $ | 116,815 | |||||||
| Net interest and other income (1) (b) | $ | 66,901 | $ | 66,185 | $ | 65,177 | $ | 194,004 | $ | 191,660 | |||||||
| Core net interest and other income (1) (d) | $ | 66,901 | $ | 66,185 | $ | 63,728 | $ | 193,954 | $ | 189,270 | |||||||
| Efficiency ratio (a/b) | 63.45 | % | 65.14 | % | 59.23 | % | 66.02 | % | 61.04 | % | |||||||
| Core efficiency ratio (c/d) | 62.21 | % | 64.50 | % | 60.58 | % | 65.02 | % | 61.72 | % | |||||||
| Total Average Interest-Earnings Assets | $ | 6,363,995 | $ | 6,291,616 | $ | 6,071,129 | $ | 6,300,814 | $ | 5,890,433 | |||||||
| Net Interest Income: | |||||||||||||||||
| Net interest income | $ | 56,114 | $ | 54,009 | $ | 55,294 | $ | 161,654 | $ | 161,369 | |||||||
| Loan discount accretion | $ | (705) | $ | (1,695) | $ | (2,419) | $ | (3,185) | $ | (7,390) | |||||||
| Net interest income excluding loan discount accretion | $ | 55,409 | $ | 52,314 | $ | 52,875 | $ | 158,469 | $ | 153,979 | |||||||
| Net interest margin (2) | 3.51 | % | 3.45 | % | 3.61 | % | 3.43 | % | 3.66 | % | |||||||
| Net interest margin excluding loan discount accretion (2) | 3.46 | % | 3.34 | % | 3.46 | % | 3.36 | % | 3.49 | % | |||||||
| Net interest spread (2) | 2.54 | % | 2.47 | % | 2.68 | % | 2.46 | % | 2.79 | % | |||||||
| Net interest spread excluding loan discount accretion (2) | 2.50 | % | 2.37 | % | 2.53 | % | 2.39 | % | 2.62 | % | |||||||
| (1) Excludes gains/losses on sales of securities. | |||||||||||||||||
| (2) Calculated utilizing an actual day count convention. | b1BANK.com | ||||||||||||||||
| --- |
a2024-09x30bfstinvestorp
Q3 2024 Results
2 TABLE OF CONTENTS Legal Disclosures 3 Guiding Principles & Social Impact 4– 5 Business First Bancshares, Inc. Overview 6 – 11 Liquidity and Deposits 12 Securities Portfolio 13 Branches & Noninterest Revenue 14 – 15 Financial Results Q3 2024 Financial Results 17 – 18 Stable Credit Performance 19 Yield/Rate Analysis 20 – 22 Loan Portfolio Operating Loan Growth 24 Loan Composition 25 – 28 Appendix 30 – 37
3 LEGAL DISCLOSURES Special Note Concerning Forward-Looking Statements This investor 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 of 1995. All statements other than statements of historical fact are forward-looking statements. You can identify these forward-looking statements in some cases through the Company’s use of words such as “believes,” “anticipates,” “expects,” “may,” “will,” “assumes,” “should,” “predicts,” “could,” “would,” “intends,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future or otherwise regarding the Company’s future business and financial performance and/or the performance of the banking and mortgage industry and economy in general. Forward-looking statements are based on the information known to, and current beliefs and expectations of, the Company’s management and are subject to significant risks and uncertainties. Actual results may differ materially from those contemplated by such forward-looking statements. A number of important factors could cause actual results to differ materially from those contemplated by the forward-looking statements in this presentation including, without limitation, the risks set forth in “Forward Looking Statements” and “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 1, 2024 (as may be amended in the Company’s Quarterly Reports on Form 10-Q). Many of these factors are difficult to foresee and are beyond the Company’s ability to control or predict. The Company believes the forward-looking statements contained herein are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. The Company does not assume any obligation to update any forward-looking statements as a result of new information, future developments or otherwise, except as otherwise may be required by law. Non-GAAP Financial Measures This presentation includes certain financial measures that are not measures recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures. The Company’s management uses these non-GAAP financial measures in their analysis of the Company’s performance, financial condition and the efficiency of its operations. Management believes that these non-GAAP financial measures provide a greater understanding of the ongoing operations and enhance comparability of results with prior periods. The Company’s management also believes that investors find these non-GAAP financial measures useful as they assist investors in understanding the Company’s underlying operating performance and the analysis of ongoing operating trends. However, the non-GAAP financial measures discussed herein should not be considered in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Moreover, the manner in which the Company calculates the non-GAAP financial measures discussed herein may differ from the reporting measures with similar names as used by other companies. You should understand how such other banking organizations calculate their non-GAAP financial measures with names similar to the non-GAAP financial measures discussed herein when comparing such information. Reconciliations of non-GAAP financial measures to GAAP financial measures are provided in the Appendix to this presentation.
4 GUIDING PRINCIPLES b1BANK’s five guiding principles reflect our core beliefs and values, which drive all decisions irrespective of our goals, strategies, or external factors. These tenets are more than guides for making business decisions; they are the core of our culture, driving our day-to-day interactions between employees and with our clients to make a positive impact on the communities we serve.
5 SOCIAL IMPACT 2024 YTD Total Volunteerism: 3,845 Hours 270 hours of financial literacy education and non-profit service Partnership through b1BANK Financial Institutions Group Partner with Minority Deposit Institutions (MDI) by helping with correspondent banking services, specialized expertise, supplier network access and investment. Each partnership is unique based on the MDI’s needs. Through 2024: 14 bank partners 2021 Inception Through September 2024: Mentored 743 businesses Conducted training classes to help 3,055 entrepreneurs start or grow their business Project REACh b1 FOUNDATION b1COMMUNITY 3,845 Volunteer Hours 743 Businesses Mentored
6 BUSINESS FIRST BANCSHARES, INC. OVERVIEW Company Overview Ticker: BFST (Nasdaq) Market Capitalization: $655 million (as of September 30, 2024) Headquarters: Baton Rouge, Louisiana Franchise Highlights: • Diversified commercial-focused bank with $6.9 billion in assets and operations in Louisiana, Texas and Mississippi including; 39 legacy Louisiana full-service Banking Centers(5), two Loan Production offices, 11 metro-focused Texas Banking Centers and one registered investment advisory in Ridgeland, MS • #1 deposit market share in Louisiana for Louisiana-headquartered banks(1) • Texas markets represents 35% of credit exposure, as of 9/30/24 • Diversified deposit base with 105,116 accounts with an average balance of $53,664 and an organic deposit growth CAGR of ~17% since 4Q15(2) • Since 2018, completed three equity capital raises including IPO totaling $151.0 million of additional capital in addition to two subordinated debt issuances totaling $77.5 million • On October 1, 2024, Business First closed its previously announced acquisition of Oakwood Bancshares, Inc. (Oakwood) and its wholly-owned subsidiary, Oakwood Bank. Oakwood had approximately $863.6 million of total assets, $700.2 million of total loans, and $741.3 million of total deposits as of September 30, 2024 BFST operates 52 locations including 50 full-service Banking Centers(5) and 2 LPOs across Louisiana and Texas (1) Deposit market share is as of June 30, 2024, per FDIC data. (2) Jumbo deposits reflects total deposits of $250 thousand or greater. Deposit balances exclude Business First Bancshares Holding Company deposits with the Bank subsidiary and includes brokered deposits. (3) Non-GAAP financial measure. See appendix for applicable reconciliation. (4) Preliminary consolidated capital ratios as of September 30, 2024. (5) Includes one closed full-service Banking Center in Rayville, LA that maintains an active ITM. BFST Footprint Assets $6,889 Gross Loans Held for Investments $5,220 Deposits $5,641 Loan-to-Deposit Ratio 92.5% ROAA 0.97% ROACE 10.76% Core ROAA(3) 1.01% Core ROACE(3) 11.23% NPLs/Total Loans(HFI) 0.50% Tier 1 Risk-based Capital Ratio(4) 10.69% Tier 1 Leverage Ratio(4) 9.61% Total Risk-based Capital Ratio(4) 12.99% TCE/TA(3) 7.75% Financial Highlights of 3Q24 ($ millions)
7 EXECUTIVE MANAGEMENT Jude Melville Chairman, President and CEO Age: 50 Year Started at BFST: 2006 Philip Jordan EVP, Chief Banking Officer Age: 52 Year Started at BFST: 2008 Keith Mansfield EVP, Chief Operations Officer Age: 48 Year Started at BFST: 2016 Chad Carter EVP, Correspondent Banking Age: 41 Year Started at BFST: 2011 Gregory Robertson EVP, Chief Financial Officer Age: 52 Year Started at BFST: 2011 Heather Roemer SVP, Chief of Staff Age: 43 Year Started at BFST: 2009 Saundra Strong EVP, General Counsel Age: 46 Year Started at BFST: 2021 Kathryn Manning EVP, Chief Risk Officer Age: 37 Year Started at BFST: 2013 Warren McDonald EVP, Chief Credit Officer Age: 58 Year Started at BFST: 2006 Jerry Vascocu President, b1BANK(1) Age: 51 Year Started at BFST: 2022 (1) On October 17, 2024, Jerry Vascocu was promoted to President of b1BANK.
8 DIVERSIFIED FOOTPRINT Note: Dollars in millions. Financial data as of September 30, 2024. Deposit balances do not tie to consolidated figures as a result of wholesale deposits, timing differences and other items recorded at the corporate level. Loan amounts based on outstanding loan balance before accounting adjustments. (1) Banking Center count includes one standalone ITM. (2) Excludes standalone ITM from Deposits / Banking Center calculation. Dallas Fort Worth Region # of Banking Centers: 6 # of LPOs: 1 Total Loans: $1,356.3 Total Deposits: $414.2 Deposits / Banking Center: $69.0 Houston Region # of Banking Centers: 5 Total Loans: $453.9 Total Deposits: $539.5 Deposits / Banking Center: $107.9 Southwest Louisiana Region # of Banking Centers: 13 Total Loans: $554.3 Total Deposits: $1,093.6 Deposits / Banking Center: $84.1 Bayou Region # of Banking Centers: 6 Total Loans: $309.6 Total Deposits: $674.2 Deposits / Banking Center: $112.4 Greater New Orleans Region # of Banking Centers: 2 # of LPOs: 1 Total Loans: $834.9 Total Deposits: $367.9 Deposits / Banking Center: $184.0 Capital Region # of Banking Centers: 9 Total Loans: $736.3 Total Deposits: $870.3 Deposits / Banking Center: $96.7 North Louisiana Region # of Banking Centers(1): 9 Total Loans: $965.0 Total Deposits: $880.7 Deposits / Banking Center(2): $110.1
9 LONG-TERM PROFITABILITY Note: Dollars in millions, except for per share data. (1) Non-GAAP financial measure. See appendix for applicable reconciliation. (1) (1) (1) (1) (1) Diluted EPS Available to Common Shareholders Tangible Book Value Per Share Net Income Available to Common Shareholders Efficiency Ratio
10 (amount s in act uals) Non-Jumbo Deposit Accounts 15,312 15,539 15,608 41,064 37,508 90,963 89,359 97,740 101,546 101,609 102,988 101,932 Jumbo Deposit Accounts(1) 448 502 612 987 1,001 1,902 2,300 2,714 3,009 3,096 3,155 3,184 Total Deposit Accounts(1) 15,760 16,041 16,220 42,051 38,509 92,865 91,659 100,454 104,555 104,705 106,143 105,116 Avg. Total Deposit Account Bal. 57,375$ 58,151$ 65,076$ 41,234$ 46,275$ 38,946$ 44,483$ 47,986$ 50,201$ 53,223$ 52,417$ 53,664$ $904 $933 $1,056 $1,180 $1,782 $2,442 $4,077 $4,343 $5,249 $5,573 $5,564 $5,641 $554 $1,175 $477 $904 $933 $1,056 $1,734 $1,782 $3,617 $4,077 $4,820 $5,249 $5,573 $5,564 $5,641 Q4'15 Q4'16 Q4'17 Q4'18 Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 Q1'24 Q2'24 Q3'24 Organic Deposits Acquired Deposits DEPOSIT GROWTH THROUGH ORGANIC AND M&A STRATEGY • Deposit strategy reflects consistent organic growth augmented with opportunistic M&A • Total deposit CAGR of ~23% since Q4’15 • Organic deposit CAGR of ~17% since Q4’15 (excluding acquired deposits)(2) • Acquired Texas Citizens and $477M in total deposits in 2022 • $304M organic growth in total deposits in 2022(2) 2022 Note: Dollars in millions, unless otherwise noted. Above deposit information reflects b1BANK bank-level balances. Jumbo deposits reflects total deposits of $250 thousand or greater. (1) b1BANK deposit accounts excludes 5 Business First Bancshares Holding Company accounts with the Bank subsidiary. (2) Includes brokered deposits. (3) Preliminary deposit balances as of 9/30/2024. • Acquired Pedestal and $1.2B in total deposits in 2020 • $668M organic growth in total deposits in 2020(2) 2020 • Acquired $554M deposits in 2018 (Minden & Richland) • $134M organic growth in total deposits in 2018(2) 2018 (3)
11 9.75-Year CAGR Total Assets 687$ 1,077$ 1,106$ 1,322$ 2,099$ 2,276$ 4,175$ 4,733$ 5,990$ 6,585$ 6,889$ 27% Core Net Income(1) 4.4$ 4.1$ 5.1$ 3.1$ 16.8$ 24.6$ 37.5$ 53.9$ 57.6$ 66.3$ 63.1$ 32% Core Diluted EPS(1) 0.72$ 0.73$ 0.70$ 0.39$ 1.45$ 1.80$ 2.05$ 2.61$ 2.52$ 2.62$ 2.48$ 14% Core ROAA(1) 0.58% 0.51% 0.45% 0.26% 1.00% 1.15% 1.09% 1.22% 1.05% 1.05% 0.95% --- Core Efficiency Ratio(1) 76.5% 77.6% 81.1% 77.7% 66.9% 63.4% 61.1% 60.6% 62.8% 61.9% 64.4% --- 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q3'24 TTM Texas Citizens Bancorp • Closed 3/1/22 • $546MM in assets • 6 locations acquired • $54.8MM deal value • 131 days to close transaction PROVEN M&A TRACK RECORD Note: Dollars in millions, except per share data. (1) Non-GAAP financial measure. See appendix for applicable reconciliation. Core earnings measures exclude merger charges, gain/loss on sale of securities, gain/loss on sale of former bank branches, among other non- core items. (2) Non-GAAP financial measure. See appendix for applicable reconciliation. Reflects TTM results as of September 30, 2024. (3) Consolidated total assets for Oakwood Bancshares, Inc. as of March 31, 2024. Reflects transaction value at announcement. American Gateway • Closed 3/31/15 • $366MM in assets • 10 locations acquired • $47.2MM deal value • 250 days to close transaction Minden Bancorp • Closed 1/1/18 • $315MM in assets • 2 locations acquired • $56.5MM deal value • 87 days to close transaction Richland State Bancorp • Closed 11/30/18 • $307MM in assets • 8 locations acquired • $44.7MM deal value • 179 days to close transaction Pedestal Bancshares • Closed 5/1/20 • $1.26B in assets • 22 locations acquired • $128.3MM deal value • 100 days to close transaction • BFST has a proven M&A track record and has successfully closed and integrated six whole-bank acquisitions and one non-bank RIA acquisition since 2015 • Most recent ability to close was proven with Oakwood Bancshares transaction, which was announced on April 25, 2024, and closed on October 1, 2024 • 27% total asset CAGR, 32% core net income CAGR, and 14% core EPS CAGR since commencing BFST’s M&A strategy • Significant improvement in profitability over the last ~10 years, with core ROAA improving from 0.58% in 2014 to 0.95%(2) and core efficiency ratio improving from 76.5% to 64.4%(2) over the same timeframe Oakwood Bancshares • Closed 10/1/24 • $840MM in assets(3) • 6 locations acquired • $85.7MM deal value(3) • 159 days to close transaction
12 LIQUIDITY AND DEPOSITS Deposit Composition Non-Interest Bearing NOW & Int. Bearing DDA MMDA & Savings Time Deposits • Bolstered cash reserves in 2023 in response to tighter monetary policy and continued to carry higher balances in 3Q24 at 5.56% to total assets. • Remain focused on core deposits, which represent over 85% of total deposits. • Continue to take advantage of wholesale funding alternatives to optimize interest costs and liquidity, utilizing FHLB and the brokered deposit market. • Ample contingent liquidity available of over $3 billion at 9/30/2024, to supplement core deposit growth as needed. $5.64B Note: Dollars in millions. Data as of September 30, 2024. Historical Deposit Composition Liquidity Sources FHLB Borrowings Capacity 1,171$ Unencumbered Securities 574$ Cash Reserves 213$ Fed Funds Sold 170$ Fed Funds Lines Available 145$ FRB Discount Window 922$ Total 3,195$
13 SECURITIES PORTFOLIO AFS Securities Portfolio• Portfolio serves as a source of on-balance sheet liquidity and provides interest income stability during times of declining rates. • With the relatively high-rate environment, the Bank is reinvesting portfolio cash flows and taking opportunities to modestly grow the portfolio as liquidity allows. • Total portfolio as of 3Q24 was $974.6 million in AFS, of which agency mortgage-backed securities (MBS) and A-rated municipal securities were the largest components. - 3Q24 weighted average yield of 2.59% - Weighted average life of 4.49 years - Estimated effective duration of 3.77 years $974.6M Note: Dollars in millions. Data as of September 30, 2024. Book Market Net Unrealized Value Value Gain / (Loss) Municipal Securities 308.5$ 285.1$ (23.4)$ Mortgage-Backed Securities 590.0 560.1 (30.0)$ Corporate & Other Securities 48.2 44.5 (3.7)$ U.S. Government Agencies / Treasuries 27.8 26.4 (1.4)$ Total AFS Securities 974.6$ 916.1$ (58.5)$ Deferred Tax Impact 12.4$ Other Equities Unrealized Gain/Loss -$ Accumulated Other Comprehensive Income/Loss (46.1)$
14 Data Source: S&P Global Market Intelligence. (1) Reflects b1BANK branch network, including all acquired, closed/divested, and de novo Banking Centers. (2) Includes four legacy b1BANK locations that converted from LPO to full-service Banking Centers. Includes six DFW Banking Centers. (3) Includes one closed full-service Banking Center in Rayville, LA that maintains an active ITM. (4) Excludes one location sold by Pedestal prior to closing. (5) Excludes active LPOs and Rayville, LA standalone ITM from calculation. (6) Represents aggregate growth in average noninterest bearing deposits per Banking Center from December 31, 2014, to September 30, 2024. Excludes active LPOs and Rayville, LA standalone ITM from calculation. OPTIMIZING BRANCH NETWORK AND INFRASTRUCTURE INVESTMENTS 6 full-service Banking Centers ~$98MM avg. total deposits per Banking Center December 31, 2014 48 acquired Banking Centers 7 De Novo Banking Centers 7 De Novo LPOs (4 LPOs converted to full-service, 1 LPO consolidated into existing Banking Center) 2 legacy b1BANK Banking Centers closed 1 LPO consolidated into existing location 10 acquired Banking Centers closed 3 acquired Banking Centers sold for a gain 50 Banking Centers(3) 2 active LPOs ~$115MM avg. total deposits per Banking Center(5) ~34% increase in average NIB deposits per Banking Center(6) September 30, 2024 6 Locations 52 Locations 62 Added BFST Footprint(1) 16 Closed or Sold b1BANK (Organic / De Novo) (15 active(2) / 2 closed) Richland (5 active(3) / 2 sold / 1 closed) American Gateway (6 active / 4 closed) Pedestal (17 active / 1 Sold / 4 closed(4)) Minden (2 active / 0 closed) Texas Citizens (5 active / 1 closed) Closed, Sold, or Consolidated (2 legacy / 13 acquired / 1 De Novo LPO) Loan Production Office (LPO) (2 active / 1 consolidated) Banking Center Activity – 3Q24 Opened Southern Dallas Banking Center in Dallas, TX Opened Westlake LPO in Westlake, TX
15 SMITH SHELLNUT WILSON (SSW) • April 1, 2021 – Smith Shellnut Wilson, LLC (SSW) was acquired by b1BANK and operates as a wholly-owned affiliate of b1BANK • SSW was founded in 1995 and offers investment advisory services, which includes discretionary and non-discretionary management of investment portfolios for a variety of clients including financial institutions, municipalities, high-net worth individuals, trusts and business entities • As of September 30, 2024, SSW maintained ~$6.91 billion in AUM(1), which includes negative impact of AOCI (~$5.63 billion bank AUM(1), ~$1.28 billion non-bank AUM) • For 3Q24, 40% of total AUM fees were represented by banks and credit unions and SSW provided portfolio management services for 50 bank clients FINANCIAL INSTITUTIONS GROUP (FIG) • September 2020, b1BANK announced the formation of its Financial Institutions Group (FIG) • The FIG team is headquartered in Dallas and responsible for correspondent banking activities, including loan participations and deposit gathering initiatives • FIG currently maintains $535 million in total loan participations sold(2) and has generated $257(2) million in total deposits through a relationship network of ~100(2) total bank partners WATERSTONE LSP February 1, 2024 – Waterstone LSP was acquired by b1BANK and operates as a wholly- owned affiliate as a comprehensive resource for streamlined SBA lending. Waterstone opti- mizes partner banks’ SBA lending capabilities and achieves growth objectives with the following services: Strategic Planning: Collaborate with client’s leadership to tailor an SBA lending strategy aligned with the institution’s goals Efficient Loan Management: Waterstone’s platform simplifies pre-qualification, underwriting, packaging, and closing, accelerating the loan cycle and minimizing workload Professional Servicing & Liquidation: Handle monthly reporting, remittances, payment processing, and all servicing actions diligently, ensuring compliance and efficiency Snapshot as of September 30, 2024: 21 banks under LSP Agreements with 5 new banks signed during 3Q24 3Q24 loan closing volume of $17.2 million (includes $12.0 million of b1BANK loan closings) 4Q24 active pipeline of ~$44 million INTEREST RATE SWAPS November 2023, b1BANK announced the formation of its Derivative Solutions Group, providing a full suite of interest rate hedging products offered to our commercial borrowers, including, but not limited to; interest rate swaps, caps, floors, collars, cancellable swaps. We expect to expand into our institutional client base. Overview / Benefits • Protects b1BANK’s balance sheet from interest rate risk and generates fee income • Allows b1 bankers to compete effectively with larger regional and national banks who offer same product line, primarily, customer-level back-to-back rate swaps 3Q24 YTD PRODUCTION • 20 total trades • $71.6 million in total loan notional from back-to-back client swaps generated $900k in fee income NONINTEREST REVENUE OPPORTUNITIES (1) Includes bank and credit union AUM. Excludes b1BANK securities portfolio and TruPs/CDs included in client portfolios. (2) Reflects current position as of September 30, 2024. Does not necessarily include total production/volume since inception. • The FIG sales team was also instrumental in BFST’s 1Q21 self- managed $52.5 million subordinated debt offering and the 3Q22 self- managed $72.0 million preferred equity raise
16 Financial Results
17 (1) Non-GAAP financial measure. See appendix for applicable reconciliation. (2) Preliminary consolidated capital ratios as of 9/30/2024. (3) Past due and nonaccrual loan amounts exclude purchased impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. This was applicable to all periods 12/31/2022, and prior. The guidance and methodology were changed beginning 1/1/2023, due to CECL adoption. QUARTERLY FINANCIAL HIGHLIGHTS • Net interest margin excluding loan discount accretion increased 12 bps headlined by a rate reduction of the money market portfolio of 35 bps from the linked quarter of 4.22% to 3.87% while increasing loan yields to 7.12% up 5 bps from the linked quarter. • Weighted average loan originations continued to hold strong in September at 8.49%. • Investments in Non-interest income revenue initiatives continue to show early signs of success with Swap revenue of $937 thousand during Q3. 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Diluted Earnings per Common Share $0.76 $0.57 $0.48 $0.62 $0.65 ROAA 1.17 % 0.88 % 0.74 % 0.95 % 0.97 % ROACE 14.16 10.54 8.51 10.94 10.76 Net Interest Margin 3.61 3.50 3.32 3.45 3.51 Efficiency Ratio(1) 59.23 63.36 69.80 65.14 63.45 Net Income Available to Common Shareholders in thousands $19,104 $14,474 $12,220 $15,856 $16,492 Core Pre-Tax, Pre-Provision Income(1) in thousands $25,123 $23,444 $19,061 $23,494 $25,281 Core Diluted Earnings Per Common Share(1) $0.70 $0.66 $0.50 $0.64 $0.68 Core ROAA(1) 1.10 % 1.03 % 0.77 % 0.98 % 1.01 % Core ROACE(1) 13.32 12.27 8.92 11.22 11.23 Net Interest Margin excluding loan discount accretion(1) 3.46 3.38 3.27 3.34 3.46 Core Efficiency Ratio(1) 60.58 62.59 68.68 64.50 62.21 Tier 1 Leverage Ratio(2) 9.31 % 9.52 % 9.38 % 9.49 % 9.61 % Total Risk-Based Capital Ratio(2) 12.71 % 12.85 % 12.78 % 12.88 % 12.99 % Tangible Common Equity / Tangible Assets(1) 6.76 % 7.28 % 7.19 % 7.43 % 7.75 % Tangible Book Value Per Share(1) $17.03 $18.62 $18.61 $19.22 $20.60 NPLs / Loans (Excl. TDRs)(3) 0.33 % 0.34 % 0.43 % 0.43 % 0.50 % Allowance for Credit Losses / Loans (Excl. HFS) 0.90 0.88 0.88 0.86 0.86 ACL + FV Discount on Acquired Lns/ Loans (Excl. HFS) 1.20 1.12 1.10 1.05 1.04 NCOs / Average Loans 0.04 0.02 0.01 0.03 0.02 Asset Quality Profitability Capital For the Quarter Ended,
18 BALANCE SHEET HIGHLIGHTS (1) Preliminary consolidated capital ratios as of September 30, 2024. (2) Non-GAAP financial measure. See appendix for applicable reconciliation. For the quarter ended, $ millions 9/30/2024 6/30/2024 9/30/2023 Gross Loans (Excl. HFS) $5,220.1 1% 6% ACL + Fair Value Discount on Acquired Loans $54.0 0% -8% Investment Securities $916.1 5% 8% Deposits $5,640.9 1% 9% Borrowings $493.5 15% -23% Total Equity $699.5 5% 16% Balance Sheet Ratios, $ actual 9/30/2024 6/30/2024 9/30/2023 Total Risk-Based Capital Ratio(1) 12.99 % 12.88 % 12.49 % Tangible Common Equity / Tangible Assets(2) 7.75 % 7.43 % 6.76 % Tangible Book Value Per Share(2) $20.60 $19.22 $17.03 Gross Loans (Excl. HFS) / Deposits 92.54 % 92.80 % 97.69 % Actual Change vs. Q3'24 Highlights Organic loan growth of 1.11% for the quarter (4.41% Annualized) led by CRE ($58.3 million) and C&D ($16.9 million). Loan growth for the quarter was headlined by organic growth in North LA and New Orleans with our Texas exposure down slightly to 35% of the overall loan portfolio. Deposits increased $77.3 million (1.39%, or 5.53% Annualized) during Q3 mostly attributable to $196.5 million growth in interest- bearing deposits partially offset by $119.3 million of reduction in noninterest-bearing deposits. ACL + Fair Value Discount on acquired loans as a percentage of total loans of 1.03%. Loan purchase discount decreased by approximately $0.7 million. The quarterly improvement in fair market value was due to positive fair value adjustments ($27.4 million). Year-over-year shift was due to focus on organic deposit growth. Borrowings increased $65.0 million for the quarter due to an additional short-term, 14-day FHLB advance that matured on October 1, 2024, and was refinanced. The year-over-year decline of $148.7 million was mostly due to the payoff of a $300.0 million BTFP advance in March. Increase in equity for the quarter was driven by $16.5 million net income available to common shareholders as well as a $21.6 million improvement in AOCI for Q3. The annual increase was driven by $59.0 million net income available to common shareholders as well as a $48.1 million AOCI improvement. Highlights Improvement for the quarter and year are due to retention of earnings coupled with a positive AOCI changes. TBV improved from the linked quarter and is attributed to $16.5 million net income available to common shareholders and a $21.6 million improvement in AOCI. TBVPS growth excluding AOCI of 9.74% QTD and 8.00% year-over-year show franchise value. The improvement in the risk-based capital ratio was attributable to retained earnings supporting loan growth.
19 ACL & FV Discount(3) Past Due Loans(1) Note: Dollars in millions. Peer average based on average of last five quarters ending 2Q24, Gulf South Peer Group defined as: FBMS, FGBI, HBCP, ISTR, OBK, RRBI, GNTY, VBTX, TCBX, STEL. (1) Past due loans include balances past due 30 days or more and not on a nonaccrual status. (2) Nonperforming loans include loan balances past due 90 days or more as well as loans on a nonaccrual status. (3) Total Loans includes SBA PPP loan balances. STABLE CREDIT PERFORMANCE Nonperforming Loans(2) Net Charge-offs
20 Note: Data is as of September 30, 2024. Chart based on GAAP data. (1) NIM excluding loan discount accretion is a non-GAAP financial measure and excludes the accretion of the loan discount on acquired loans. See appendix for applicable reconciliation. YIELD / RATE ANALYSIS (1)
21 Note: Dollars in millions; amounts may not total due to rounding. Betas are estimates that reflect the deposit portfolio composition as of September 30, 2024, based on analysis of BFST deposit pricing in prior cycles. (1) Core CDs exclude brokered deposits and CDARs. (2) Reflects consolidated deposit balances as of September 30, 2024, for b1BANK only. (3) Reflects weighted average rate as of month-end, September 30, 2024. ESTIMATED DEPOSIT BETA IN EASING RATE CYCLE Approx. Beta in Easing Cycle Weighted Avg. Rate(3) $ Amount of Deposits % of DepositsDeposit Portfolio(2) (as of 9/30/24) -%-%$1,190.921.1%Non-Interest Bearing Deposits 45 - 55%3.58%$494.38.8%Core Time Deposits 55 - 65%4.77%$296.75.3%High Beta/Special CDs 100%4.73%$534.29.5%Brokered Deposits 25 - 35%2.32%$932.216.5%Low Beta/Standard Non-Maturity Deposits 70 - 80%3.58%$2,192.638.9%Higher Beta Non-Maturity Deposits 45 - 55%2.79%$5,640.9100.0%Total Deposits • Internal modeling implies an estimated total deposit beta of 45% – 55%, in the near-term downward rate cycle • Opportunity to improve pre-tax earnings with a low single-digit expansion in the Core NIM under the 50 bps reduction scenario, assuming a static balance sheet over the next twelve months • Overall Core CD balance(1) retention rate increased to 83% during September, up from 75% in June • $204 million remaining Core CD balances(1) will mature in Q4’24, with $109 million maturing in Q1’25
22 Loan Portfolio HFI Note: Dollars in millions. Data is as of September 30, 2024. Loan balances per the general ledger before accounting adjustments, excluding deferred costs/fees, credit cards, overdrafts and loan premium/discount. (1) Reflects weighted average stated rate for the month-end for each period indicated. (2) Includes adjustable-rate loans. • 39.9% of total loans HFI are floating rate - 98.4% of floating-rate loans would reprice immediately with another +0.25% shift in interest rates • 75.1% of floating-rate loans float on the WSJ Prime Daily Index • 59.4% of total loans HFI are fixed rate - 9.8% of fixed-rate loans mature within the next 12 months(2) LOAN PORTFOLIO OVERVIEW – REPRICING OPPORTUNITY Maturities by Loan Type Outstanding Balance Weighted ($MM) (% of Total) Avg. Rate(1) Fixed Rate Loans (mature > 1 year) 2,626.9$ 50.3% 5.61% Fixed Rate Loans (mature < 1 year) 473.8 9.1% 6.28% Floating Rate with Floors 923.6 17.7% 8.02% Floating Rate without Floors 1,159.2 22.2% 8.26% Adjustable Rate Loans 37.2 0.7% 5.55% Total 5,220.7$ 100.0% 6.69% 50.3% 9.1% 17.7% 22.2% 0.7% 49.7% of total loans HFI are floating / variable rate or fixed rate maturing within the next 12-months 98.4% of all floating- rate loans would reprice immediately with another +0.25% shift in interest rates Fixed Rate Loans Maturing Beyond 1-Year (dollars in millions) Q4'25 FY 2026 FY 2027 FY 2028 > FY 2028 C&D 1.9$ 36.4$ 96.4$ 11.8$ 33.1$ Owner-Occupied CRE 5.0 92.6 153.0 118.2 272.8 Income Producing CRE 6.6 163.3 308.3 80.2 213.8 C&I 4.4 54.8 83.9 97.0 202.7 Agricultural 0.1 0.7 0.9 0.7 2.2 Farmland 0.1 6.2 6.0 13.2 27.2 1-4 Family 9.6 69.2 81.7 56.6 157.8 Consumer & Other 2.6 15.1 84.9 20.2 36.0 Total 30.4$ 438.2$ 815.0$ 397.8$ 945.4$ Weighted Avg. Rate 4.85% 5.32% 5.17% 6.96% 5.59% Fixed Rate Loans Maturing within the next 12-Months NTM (dollars in millions) Q4'24 Q1'25 Q2'25 Q3'25 Total C&D 20.0$ 9.5$ 36.3$ 20.2$ 86.0$ Owner-Occupied CRE 19.5 11.6 8.1 23.3 62.5 Income Producing CRE 24.0 16.3 7.6 9.4 57.4 C&I 33.1 29.7 35.2 13.8 112.0 Agricultural 3.6 28.6 6.1 3.2 41.5 Farmland 7.0 0.5 5.7 1.2 14.4 1-4 Family 17.1 5.5 17.9 9.4 49.9 Consumer & Other 14.5 12.0 21.0 2.8 50.2 Total 138.8$ 113.7$ 137.9$ 83.4$ 473.8$ Weighted Avg. Rate 6.51% 6.59% 6.04% 5.86% 6.28% All Floating Rate Loans, Maturing, (dollars in millions) Q4'24 FY 2025 FY 2026 FY 2027 > FY 2027 C&D 135.7$ 117.6$ 71.4$ 13.9$ 45.1$ Owner-Occupied CRE 9.0 19.4 4.5 22.6 180.1 Income Producing CRE 35.8 27.1 67.6 17.2 162.0 C&I 128.3 259.4 84.7 19.0 215.7 Agricultural 3.1 31.4 0.0 0.9 1.8 Farmland 5.7 69.1 7.9 21.1 17.0 1-4 Family 10.5 20.6 14.1 9.4 90.2 Consumer & Other 39.3 40.8 5.3 18.8 39.4 Total 367.4$ 585.5$ 255.6$ 123.0$ 751.4$ Weighted Avg. Rate 8.52% 8.37% 8.29% 8.92% 7.64% (1) (1) (1)
23 Loan Portfolio
24 Note: Data is as of September 30, 2024. Dollars in millions. Loan balances are before accounting adjustments. (1) Net operating loans are defined as loans per the general ledger, excluding deferred costs/fees, corporate and other, overdrafts and loan premium/discount. OPERATING LOAN GROWTH Loan Composition by Region Q3’24 YTD Loan Growth Waterfall $1,282 $(487) $(610) $35 $5,221 $5,000 Beginning Loans BFST Originations Paydowns Payoffs Net Refinance Ending Loans12/31/23 9/30/24
25 Note: Loan composition as of September 30, 2024, based on preliminary FDIC call report data. LOAN COMPOSITION $5.22 billion Total Loan Portfolio Composition Top 5 Exposure Categories Outstanding Unfunded Average NPLs % of Balance Commitment Loan Size Total Loans Commercial $1.4 billion $656 million $334 thousand 0.39% CRE - Owner-Occupied $937 million $37 million $807 thousand 0.65% CRE - Non Owner-Occupied $1.13 billion $54 million $1.85 million 0.07% Construction & Land $654 million $169 million $588 thousand 0.89% 1-4 Family $494 million $5 million $186 thousand 1.13% Total $4.62 billion $0.92 billion $754 thousand 0.51%
26 LOAN COMPOSITION: COMMERCIAL Note: Data is as of September 30, 2024. Percentages based on loan balances before accounting adjustments. • Commercial loans represent 28.7% of the total loan portfolio • Total commercial loan growth year-over-year of $164.1 million represents 54.7% of all loan growth • Weighted average maturity of the commercial portfolio is 2.36 years Commercial Loans by Collateral Commercial Loans by Region
27 CRE Composition - Income Producing Income Producing CRE Portfolio Hotel/Motel 15.4% Office Building 23.3% Office/Warehouse 3.0% Warehouse 8.8% Retail - Single-Tenant 9.0% Retail - Multi-Tenant 27.2% Commercial Building 6.7% Other 6.7% Total CRE - Income Producing 100.0% 15.4% 23.3% 3.0% 8.8% 9.0% 27.2% 6.7% 6.7% CRE Composition - Owner Occupied Owner Occupied CRE Portfolio Hotel/Motel 0.7% Office Building 33.1% Office/Warehouse 24.0% Retail 14.5% Commercial Building 10.9% Other 16.8% Total CRE - Owner Occupied 100.0% 0.7% 33.1% 24.0% 14.5% 10.9% 16.8% C&D Composition C&D Portfolio Raw Land 5.8% Vacant Residential Lots 8.9% Vacant Commercial Lots 15.2% Land Development - Residential 17.8% Residential Construction - OORE 4.9% Residential Construction - Non OORE 11.2% Commercial Construction - Retail 6.1% Commercial Construction - Office 8.3% Commercial Construction - Apartment/Multi-Family 13.6% Commercial Construction - Other 8.3% Total C&D 100.0% 5.8% 8.9% 15.2% 17.8% 4.9% 11.2% 6.1% 8.3% 13.6% 8.3% Note: Dollars in millions. Data is as of September 30, 2024. Percentages based on loan balances before accounting adjustments. (1) Geographic composition detail reflects borrower zip code on file in loan source files. Does not necessarily reflect zip code or location of loan collateral. (2) Represents the largest loan in each portfolio net of balances sold to other institutions. (3) Represents the outstanding principal balance of all loans maturing between October 1, 2024, through September 30, 2025. LOAN COMPOSITION: COMMERCIAL REAL ESTATE C&D Highlights • $654.4 million total portfolio • $26.7 million largest relationship(2) • $590 thousand average loan size • $275.8 million maturing over the next 12-months(3) • Dallas, Baton Rouge and Covington represent top 3 geographies within C&D and comprise 38.5% of all C&D loans or $251.8 million Owner-Occupied Highlights • $936.7 million total portfolio • $14.7 million largest relationship(2) • $809 thousand average loan size • $74.1 million maturing over the next 12- months(3) • Baton Rouge, Houston and New Orleans represent top 3 geographies within owner-occupied and comprise 25.5% of all owner-occupied loans or $239.0 million Income Producing Highlights • $1.13 billion total portfolio • $28.1 million largest relationship(2) • $1.86 million average loan size • $110.3 million balance maturing over the next 12-months(3) • Dallas, Baton Rouge and Covington represent top 3 geographies within income producing and comprise 31.0% of all income producing loans or $350.7 million $654.4 million $936.7 million $1.13 billion $654.4 million $936.7 million $1.13 billion
28 Office CRE – Income-Producing by Geography(1)(2) Office CRE – Owner-Occupied by Geography(1)(2) Office C&D by Geography(1)(2) Note: Dollars in millions, unless otherwise noted. Above loan balances reflect outstanding principal bank balance, net of loan participations, as of September 30, 2024. (1) Geographic composition detail reflects borrower zip code on file in loan source files. Does not necessarily reflect zip code or location of loan collateral. (2) Office C&D, Owner-Occupied CRE, and Income-Producing CRE office detail exclude office warehouse loans. LOAN COMPOSITION: OFFICE LENDING BY GEOGRAPHY 33.4% 19.2% 18.6% 9.3% 8.7% 10.8% Office C&D Dallas, TX 33.4% Frisco, TX 19.2% Baton Rouge, LA 18.6% Katy, TX 9.3% Plano, TX 8.7% Other Geographies 10.8% Total Office C&D 100.0% $654.4MM Total C&D $29.2MM Office C&D 11.7% 9.5% 6.4% 5.6% 4.7% 62.0% Owner Occupied Office CRE Baton Rouge, LA 11.7% Cov ington, LA 9.5% Houston, TX 6.4% Grapevine, TX (DFW) 5.6% Houma, LA 4.7% Other Geographies 62.0% Total OO Office CRE 100.0% $310.8MM Owner Occupied Office CRE $936.7MM Owner Occupied CRE 20.4% 18.4% 14.6% 7.9% 7.6% 31.1% $1.13B Income Producing CRE $265.3MM Income Producing Office CRE Income Producing Office CRE Dallas, TX 20.4% Houston, TX 18.4% Baton Rouge, LA 14.6% Shreveport, LA 7.9% Metairie, LA (NOLA) 7.6% Other Geographies 31.1% Total Inc. Prod. Office CRE 100.0% 23.4% Income Producing Office CRE 76.6% All Other Income Producing CRE 66.8% All Other Owner Occupied CRE 33.2% Owner Occupied Office CRE 95.5% All Other C&D 4.5% Office C&D Office C&D Highlights • $29.2 million total office C&D portfolio comprised of 15 loans in 9 distinct geographies throughout Texas and Louisiana • Largest C&D office loan is a $8.9 million credit in Dallas, TX • 100.0% of the office C&D portfolio is risk rated as pass watch or better Office CRE Owner-Occupied Highlights • $310.8 million total office CRE owner- occupied portfolio comprised of 363 loans in 99 distinct geographies throughout Texas and Louisiana • Largest office CRE owner-occupied loan is a $14.7 million credit in Grapevine (DFW), TX • 99.7% of the office CRE – owner-occupied portfolio is risk rated as pass watch or better Office CRE Income Producing Highlights • $265.3 million total office CRE income- producing portfolio comprised of 162 loans in 52 distinct geographies throughout Texas and Louisiana • Largest office CRE income producing loan is a $28.1 million credit in Houston, TX • 99.8% of the office CRE – income- producing portfolio is risk rated as pass watch or better (1)(2) (1)(2) (1)(2)
29 APPENDIX
30 Note: Dollars in thousands. As of December 31. (1) Non-GAAP Financial measure. See appendix for applicable reconciliation. (2) Preliminary consolidated capital ratios as of 9/30/2024. Total Capital Ratio not available for FY 2020 due to the bank’s use of the Community Bank Leverage Ratio. (3) Excludes SBA PPP loans. (4) Calculated at the bank level based on preliminary FDIC call report data. (5) Past due and nonaccrual loan amounts exclude purchased impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. This was applicable to all periods 12/31/2022, and prior. The guidance and methodology were changed beginning 1/1/2023, due to CECL adoption. HISTORICAL FINANCIAL SUMMARY YTD 2019 2020 2021 2022 2023 2024 Balance Sheet & Capital Total Assets $2,273,835 $4,160,360 $4,726,378 $5,990,460 $6,584,550 $6,888,649 Gross Loans (Excl. HFS) 1,710,265 2,991,355 3,189,608 4,606,176 4,992,785 5,220,118 Deposits 1,782,010 3,616,679 4,077,283 4,820,345 5,248,790 5,640,946 Total Equity 285,097 409,963 433,368 580,481 644,259 699,524 Tangible Common Equity / Tangible Assets(1) 10.36 % 8.45 % 7.76 % 6.89 % 7.28 % 7.75 % Tier 1 Leverage Ratio(2) 10.56 8.79 8.14 9.49 9.52 9.61 Total Risk-based Capital Ratio(2) 13.30 -- 11.94 12.75 12.85 12.99 Net Loans (Excl. HFS) / Assets 74.68 % 71.37 % 66.87 % 76.25 % 75.21 % 75.17 % Gross Loans (Excl. HFS) / Deposits 95.97 82.71 78.23 95.56 95.12 92.54 NIB Deposits / Deposits 22.38 32.19 31.66 32.14 24.75 21.11 Commercial Loans / Loans (Excl. HFS)(3) 22.83 21.60 22.62 25.05 27.22 28.67 C&D / Total Risk-Based Capital(4) 95.9 % 106.0 % 117.0 % 109.8 % 91.7 % 84.7 % CRE / Total Risk-Based Capital(4) 222.4 262.0 250.1 272.1 253.5 250.5 Asset Quality NPLs / Loans (Excl. TDRs)(5) 0.53 % 0.35 % 0.41 % 0.25 % 0.34 % 0.50 % NPAs / Assets (Excl. TDRs)(5) 0.58 0.48 0.31 0.21 0.28 0.40 Reserves / Loans (Excl. HFS) 0.71 0.74 0.91 0.83 0.81 0.81 NCOs / Average Loans 0.10 0.06 0.03 0.04 0.11 0.06 Profitability Ratios Net Income Available to Common Shareholders $23,772 $29,994 $52,136 $52,905 $65,642 $44,568 ROAA 1.11 % 0.88 % 1.18 % 0.97 % 1.04 % 0.89 % ROACE 8.70 8.42 12.25 11.59 12.36 10.08 Net Interest Margin 4.10 % 4.06 % 3.84 % 3.92 % 3.62 % 3.43 % Efficiency Ratio 64.37 67.75 61.84 65.26 61.61 66.02 Non-Interest Income / Avg. Assets 0.50 0.63 0.80 0.54 0.62 0.64 Non-Interest Expense / Avg. Assets 2.74 2.95 2.66 2.73 2.47 2.54 For the Fiscal Year Ended December 31,
31 COMMERCIAL REAL ESTATE – HISTORICAL PERFORMANCE Note: Dollars in thousands. (1) Calculated at the bank level based on preliminary FDIC call report data. (2) Based on outstanding loan balances prior to accounting adjustments. Percentage based on CRE loans outstanding. (3) Past due and nonaccrual loan amounts exclude purchased impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans. This was applicable to all periods 12/31/2022, and prior. The guidance and methodology were changed beginning 1/1/2023, due to CECL adoption. (4) All charge-offs are YTD through period noted. Q4'18 Q4'19 Q4'20 Q4'21 Q4'22 Q4'23 Q3'24 Construction - 1-4 Family Residential 55,485$ 60,780$ 68,503$ 90,861$ 109,629$ 117,128$ 105,462$ Other Const, Development, Vacant Land & Lots 155,569 183,401 334,562 457,667 612,445 552,670 548,894 Total Construction 211,054 244,181 403,065 548,528 722,074 669,798 654,356 % of Total Loans (1) 13.8% 14.3% 13.5% 17.2% 15.7% 13.4% 12.5% % of Total Bank Capital 94.1% 95.9% 106.0% 117.0% 116.7% 97.6% 89.9% Multi-Family Properties 39,273 36,454 95,707 97,508 98,637 108,432 148,355 Commercial Rental 226,723 284,795 496,198 525,977 967,915 1,072,280 1,132,284 Other Loans for Real Estate Purposes 10,286 708 736 500 409 481 231 Total Outstanding CRE Exposure 487,336$ 566,138$ 995,706$ 1,172,513$ 1,789,035$ 1,850,991$ 1,935,226$ % of Total Loans (1) 31.9% 33.1% 33.3% 36.7% 38.8% 37.1% 37.1% % of Total Bank Capital 217.2% 222.4% 262.0% 250.1% 289.1% 269.7% 266.0% Credit Ratings(2) Pass-Watch / Special Mention % 1.6% 0.5% 1.7% 2.7% 3.0% 2.4% 8.2% Classified % 0.9% 0.9% 0.7% 1.2% 0.7% 0.6% 0.4% Total Watch List % 2.5% 1.4% 2.4% 3.9% 3.6% 3.0% 8.6% Past Dues(3) Nonaccrual Loans 550$ 1,449$ 1,578$ 1,701$ 1,250$ 4,569$ 6,575$ Past Due 90 days or more - - 77 - 4 - 56 Total Past Due 550$ 1,449$ 1,654$ 1,701$ 1,254$ 4,569$ 6,631$ Total Past Due / Total CRE Loans 0.1% 0.3% 0.2% 0.1% 0.1% 0.2% 0.3% Net Charge Offs YTD(4) (322)$ (2)$ 14$ 147$ (9)$ 1,982$ 675$ Net Charge Offs YTD / CRE Loans (0.07%) (0.00%) 0.00% 0.01% (0.00%) 0.11% 0.03%
32Note: Dollars in thousands except per share data. (1) Adjustments are net of tax. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 2019 2020 2021 2022 2023 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Core Net Income: Net Income 23,772$ 29,994$ 52,136$ 52,905$ 65,642$ 19,104$ 14,474$ 12,220$ 15,856$ 16,492$ Adjustments(1): (72)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (543)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 568$ 277$ 799$ 566$ -$ -$ -$ (39)$ -$ -$ -$ -$ -$ -$ 341$ -$ 341$ -$ -$ -$ (84)$ (107)$ (299)$ 38$ 2,023$ -$ 1,974$ 1$ -$ 10$ (243)$ -$ (354)$ -$ (745)$ (735)$ (10)$ -$ -$ -$ -$ -$ -$ -$ (1,150)$ (408)$ -$ -$ -$ -$ -$ -$ 1,230$ 395$ -$ -$ -$ -$ -$ -$ -$ (530)$ -$ -$ -$ -$ -$ -$ -$ -$ 69$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 603$ 7,832$ 407$ 4,236$ 215$ 2$ 62$ 626$ 417$ 319$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 403$ Core Net Income 24,614$ 37,466$ 53,919$ 57,597$ 66,326$ 17,963$ 16,841$ 12,808$ 16,273$ 17,224$ Core Return on Average Assets: Net Income 23,772$ 29,994$ 52,136$ 52,905$ 65,642$ 19,104$ 14,474$ 12,220$ 15,856$ 16,492$ Core Net Income 24,545$ 37,466$ 53,919$ 57,597$ 66,326$ 17,963$ 16,841$ 12,808$ 16,273$ 17,224$ Average Assets 2,136,081$ 3,426,120$ 4,403,670$ 5,473,508$ 6,341,880$ 6,474,935$ 6,494,861$ 6,667,527$ 6,711,173$ 6,788,644$ ROAA 1.11% 0.88% 1.18% 0.97% 1.04% 1.17% 0.88% 0.74% 0.95% 0.97% Core ROAA 1.15% 1.09% 1.22% 1.05% 1.05% 1.10% 1.03% 0.77% 0.98% 1.01% ROACE 8.70% 8.42% 12.25% 11.59% 12.36% 14.16% 10.54% 8.51% 10.94% 10.76% Core ROACE 9.01% 10.51% 12.67% 12.62% 12.49% 13.32% 12.27% 8.92% 11.22% 11.23% Average Diluted Shares Outstanding 13,670,777 18,243,445 20,634,281 22,817,493 25,296,200 25,288,660 25,333,913 25,429,194 25,395,614 25,440,247 Diluted Earnings per Common Share 1.74$ 1.64$ 2.53$ 2.32$ 2.59$ 0.76$ 0.57$ 0.48$ 0.62$ 0.65$ Core Diluted Earnings per Common Share 1.80$ 2.05$ 2.61$ 2.52$ 2.62$ 0.71$ 0.66$ 0.50$ 0.64$ 0.68$ Net Interest Margin Excluding Loan Discount Accretion: Net Interest Income 80,198$ 127,646$ 153,884$ 199,577$ 215,129$ 55,294$ 53,760$ 51,531$ 54,009$ 56,114$ Adjustments: (2,602) (6,592) (7,750) (9,432) (9,311) (2,419) (1,921) (785) (1,695) (705) Adjusted Net Interest Income 77,596$ 121,054$ 146,134$ 190,145$ 205,818$ 52,875$ 51,839$ 50,746$ 52,314$ 55,409$ Average Interest-earning Assets 1,956,719$ 3,145,743$ 4,011,773$ 5,091,684$ 5,939,405$ 6,071,129$ 6,086,330$ 6,246,130$ 6,291,616$ 6,363,995$ Net Interest Margin 4.10% 4.06% 3.84% 3.92% 3.62% 3.61% 3.50% 3.32% 3.45% 3.51% 3.97% 3.85% 3.64% 3.73% 3.47% 3.46% 3.38% 3.27% 3.34% 3.46% Stock Option Exercises Early Lease Termination Penalty Acquisition-related expenses Core conversion expenses Loan purchase discount accretion Net Interest Margin excluding loan discount accretion (Gain)/Loss Former Bank Premises & Equipment Write-Down on Former Bank Premises (Gain)/Loss on Sale of Securities (Gain)/Loss on Sale of Banking Center (Gain)on extinguishment of debt Occupancy and bank premises-hurricane repair Core Net Income, ROAA, NIM excluding loan discount accretion For the Year Ended December 31, Fiscal Quarter Sale of Impaired Credit Insurance Reimbursement of storm expenditures, net of tax Employee Share Awards- NASDAQ Listing
33 Note: Dollars in thousands except per share data. (1) Adjustments are net of tax. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TTM Q4'23 Q1'24 Q2'24 Q3'24 Q3'24 Core Net Income: Net Income 14,474$ 12,220$ 15,856$ 16,492$ 59,042$ Adjustments(1): -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ (39)$ -$ -$ (39)$ 341$ -$ -$ -$ 341$ 1,974$ 1$ -$ 10$ 1,985$ (10)$ -$ -$ -$ (10)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 62$ 626$ 417$ 319$ 1,424$ -$ -$ -$ 403$ 403$ Core Net Income 16,841$ 12,808$ 16,273$ 17,224$ 63,146$ Core Return on Average Assets: Net Income 14,474$ 12,220$ 15,856$ 16,492$ 59,042$ Core Net Income 16,841$ 12,808$ 16,273$ 17,224$ 63,146$ Average Assets 6,494,861$ 6,667,527$ 6,711,173$ 6,788,644$ 6,665,551$ ROAA 0.88% 0.74% 0.95% 0.97% 0.89% Core ROAA 1.03% 0.77% 0.98% 1.01% 0.95% Average Diluted Shares Outstanding 25,333,913 25,429,194 25,395,614 25,440,247 25,399,742 Diluted Earnings per Common Share 0.57$ 0.48$ 0.62$ 0.65$ 2.32$ Core Diluted Earnings per Common Share 0.66$ 0.50$ 0.64$ 0.68$ 2.48$ Early Lease Termination Penalty Acquisition-related expenses Core conversion expenses Write-Down on Former Bank Premises (Gain)/Loss on Sale of Securities (Gain)/Loss on Sale of Banking Center (Gain)on extinguishment of debt Occupancy and bank premises-hurricane repair Stock Option Exercises Core Net Income and ROAA - Trailing Twelve Months Fiscal Quarter Sale of Impaired Credit Insurance Reimbursement of storm expenditures, net of tax Employee Share Awards- NASDAQ Listing (Gain)/Loss Former Bank Premises & Equipment
34 Note: Dollars in thousands except per share data. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Tangible Common Equity / Tangible Assets: Tangible Common Equity Total Shareholders' Equity 604,366$ 644,259$ 649,034$ 664,530$ 699,524$ Preferred Stock (71,930) (71,930) (71,930) (71,930) (71,930) Total Common Shareholders' Equity 532,436$ 572,329$ 577,104$ 592,600$ 627,594$ Adjustments: Goodwill (88,391) (88,391) (91,527) (91,527) (91,527) Core deposit and other intangibles (12,418) (11,895) (11,372) (10,849) (10,326) Total Tangible Common Equity 431,627$ 472,043$ 474,205$ 490,224$ 525,741$ Tangible Assets Total Assets 6,488,781$ 6,584,550$ 6,695,558$ 6,703,889$ 6,888,649$ Adjustments: Goodwill (88,391) (88,391) (91,527) (91,527) (91,527) Core deposit and other intangibles (12,418) (11,895) (11,372) (10,849) (10,326) Total Tangible Assets 6,387,972$ 6,484,264$ 6,592,659$ 6,601,513$ 6,786,796$ Common Equity to Total Assets 8.21% 8.69% 8.62% 8.84% 9.11% Tangible Common Equity to Tangible Assets 6.76% 7.28% 7.19% 7.43% 7.75% Tangible Book Value per Share: Tangible Common Equity Total Shareholders' Equity 604,366$ 644,259$ 649,034$ 664,530$ 699,524$ Preferred Stock (71,930) (71,930) (71,930) (71,930) (71,930) Total Common Shareholders' Equity 532,436$ 572,329$ 577,104$ 592,600$ 627,594$ Adjustments: Goodwill (88,391) (88,391) (91,527) (91,527) (91,527) Core deposit and other intangibles (12,418) (11,895) (11,372) (10,849) (10,326) Total Tangible Common Equity 431,627$ 472,043$ 474,205$ 490,224$ 525,741$ Adjustments: Exclude AOCI (94,236) (66,585) (71,634) (67,784) (46,144) Total Tangible Common Equity (excl. AOCI) 525,863$ 538,628$ 545,839$ 558,008$ 571,885$ Common shares outstanding 25,344,168 25,351,809 25,485,383 25,502,175 25,519,501 Book Value per Common Share 21.01$ 22.58$ 22.64$ 23.24$ 24.59$ Tangible Book Value per Common Share 17.03$ 18.62$ 18.61$ 19.22$ 20.60$ Tangible Book Value per Common Share (excl. AOCI) 20.75$ 21.25$ 21.42$ 21.88$ 22.41$ TCE/TA, TBVPS Fiscal Quarter
35 Note: Dollars in thousands except per share data. RECONCILIATION OF NON-GAAP FINANCIAL MEASURES 2019 2020 2021 2022 2023 Tangible Common Equity / Tangible Assets: Tangible Common Equity Total Shareholders' Equity 285,097$ 409,963$ 433,368$ 580,481$ 644,259$ Preferred Stock - - - (71,930) (71,930) Total Common Shareholders' Equity 285,097$ 409,963$ 433,368$ 508,551$ 572,329$ Adjustments: Goodwill (48,495) (53,862) (59,894) (88,543) (88,391) Core deposit and other intangibles (6,694) (9,734) (12,203) (14,042) (11,895) Total Tangible Common Equity 229,908$ 346,367$ 361,271$ 405,966$ 472,043$ Tangible Assets Total Assets 2,273,835$ 4,160,360$ 4,726,378$ 5,990,460$ 6,584,550$ Adjustments: Goodwill (48,495) (53,862) (59,894) (88,543) (88,391) Core deposit and other intangibles (6,694) (9,734) (12,203) (14,042) (11,895) Total Tangible Assets 2,218,646$ 4,096,764$ 4,654,281$ 5,887,875$ 6,484,264$ Common Equity to Total Assets 12.54% 9.85% 9.17% 8.49% 8.69% Tangible Common Equity to Tangible Assets 10.36% 8.45% 7.76% 6.89% 7.28% Tangible Book Value per Share: Tangible Common Equity Total Shareholders' Equity 285,097$ 409,963$ 433,368$ 580,481$ 644,259$ Preferred Stock - - - (71,930) (71,930) Total Common Shareholders' Equity 285,097$ 409,963$ 433,368$ 508,551$ 572,329$ Adjustments: Goodwill (48,495) (53,862) (59,894) (88,543) (88,391) Core deposit and other intangibles (6,694) (9,734) (12,203) (14,042) (11,895) Total Tangible Common Equity 229,908$ 346,367$ 361,271$ 405,966$ 472,043$ Adjustments: Exclude AOCI 2,613 10,628 (1,177) (74,204) (66,585) Total Tangible Common Equity 227,295$ 335,739$ 362,448$ 480,170$ 538,628$ Common shares outstanding 13,279,363 20,621,437 20,400,349 25,110,313 25,351,809 Book Value per Common Share 21.47$ 19.88$ 21.24$ 20.25$ 22.58$ Tangible Book Value per Common Share 17.31$ 16.80$ 17.71$ 16.17$ 18.62$ Tangible Book Value per Common Share (excl. AOCI) 17.12$ 16.28$ 17.77$ 19.12$ 21.25$ TCE/TA, TBVPS For the Year Ended December 31,
36 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Note: Dollars in thousands. (1) Excludes gains/losses on sales of securities. TTM Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 12/31/2022 12/31/2023 Q3'24 Core Efficiency Ratio: Noninterest Expense 38,607$ 39,714$ 42,522$ 43,110$ 42,450$ 149,409$ 156,702$ 167,796$ Core Adjustments (2)$ (495)$ (715)$ (419)$ (830)$ (5,679)$ (668)$ (2,459)$ Net Interest and Noninterest Income 65,177$ 62,676$ 60,918$ 66,185$ 66,901$ 228,935$ 254,336$ 256,680$ Core Adjustments (1,449)$ (13)$ (50)$ -$ -$ 30$ (2,403)$ (63)$ Efficiency Ratio(1) 59.23% 63.36% 69.80% 65.14% 63.45% 65.26% 61.61% 65.37% Core Efficiency Ratio 60.58% 62.59% 68.68% 64.50% 62.21% 62.77% 61.93% 64.43% Core Efficiency Ratio Fiscal Quarter Fiscal Year Ended
37 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES Note: Dollars in thousands. Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Core pre-tax, pre-provision earnings: Pre-tax, pre-provision earnings 26,570$ 20,459$ 18,395$ 23,075$ 24,438$ Adjustments: Sale of Impaired Credit -$ -$ -$ -$ -$ -$ -$ (50)$ -$ -$ -$ 432$ -$ -$ -$ -$ 2,503$ 1$ -$ 13$ (932)$ (13)$ -$ -$ -$ (517)$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$ 2$ 63$ 715$ 419$ 319$ -$ -$ -$ -$ 511$ Core pre-tax, pre-provision earnings 25,123$ 23,444$ 19,061$ 23,494$ 25,281$ (Gain) on Extinguishment of Debt Occupancy and bank premises- hurricane repair Insurance reimbursement of storm expenditures Acquisition-related expenses Core conversion expenses Core Pre-tax, Pre-provision Earnings Fiscal Quarter (Gain)/Loss Former Bank Premises & Equipment Write-Down on Former Bank Premises (Gain)/Loss on Sale of Securities (Gain)/Loss on Sale of Banking Center