Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Raymond James US Bank Conference 2022
19 slides from Bayfirst Financial's conference presentation, Sep 6, 2022
Slide 1: BayFirst Financial Corp. Raymond James US Bank Conference September 2022
BayFirst Financial Corp. (NASDAQ:BAFN) Raymond James US Bank Conference September 2022
Slide 2: Cautionary Statement Concerning Forward-Looking Information
2022 Raymond James US Bank Conference 2 Cautionary Statement Concerning Forward-Looking Information In addition to the historical information contained herein, this presentation includes "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1
Slide 3: About BayFirst Financial Corp.
2022 Raymond James US Bank Conference 3 • Growth-oriented community bank ranked 2nd in the attractive Tampa Bay - St. Petersburg MSA(1) • Top 10 SBA 7(a) originator through CreditBench, an in-house government guaranteed loan origination platform(2) Record SBA production of $54 million in August 20
Slide 4: Management team
2022 Raymond James US Bank Conference 4 Anthony N. Leo Robin Oliver Thomas G. Zernick Matthew Luckey • Joined BayFirst in Q4 2013; Prior to joining BayFirst, provided management consulting and regulatory advisory services to community banks throughout the state of Florida and served as the interim C
Slide 5: Business lines: Community Banking, CreditBench, Residential Mortgage
2022 Raymond James US Bank Conference 5 • Nationwide full-scale mortgage banking platform • 19 loan production offices throughout the United States • $305.6 million origination volume in Q2’2022 RESIDENTIAL MORTGAGE COMMUNITY BANKING CREDITBENCH • 7 banking centers in Tampa Bay, expected to grow to
Slide 6: Community Banking Performance: Branch & Deposits Market Share
2022 Raymond James US Bank Conference 6 ($ in 000s) Year Total Deposits # Branch Opened 6/30/2022 6/30/2021 6/30/2020 1 Saint Petersburg 1999 259,850 215,998 276,842 2 Sarasota 2018 169,463 129,037 83,040 3 Seminole 2016 150,861 143,125 115,552 4 Pinellas Park 2005 69,395 64,079 48,234 5 Countryside
Slide 7: CreditBench Q2'2022 Highlights
2022 Raymond James US Bank Conference 7 • Pre- Pandemic: ~80% of loan production sourced through third-party partners • Post- Pandemic: over ~80% of production in-house through Creditbench • Total Q2’2022 SBA loan production increased 90.2% or $42.7 million (to $90.0 million) from Q1’2022 volume, an
Slide 8: Residential Mortgage Division Q2'2022 Highlights
2022 Raymond James US Bank Conference 8 • Residential mortgage production of $305.6 million in Q2’2022, down 8.9% from $335.6 million originated in the prior quarter • The Company: • completed a restructuring of its Residential Mortgage Division • discontinued its primary consumer direct residential
Slide 9: Record of Organic Growth
2022 Raymond James US Bank Conference 9 Strong balance sheet on track for continued organic growth Record of Organic Growth Total Assets excluding PPP Loans ($M) Total Net Loans HFI excluding PPP loans ($M) Total Deposits ($M) Tangible Common Equity ($M) $531 $706 $837 $844 $890 $0 $200 $400 $600 $8
Slide 10: Loan and Deposit Composition
2022 Raymond James US Bank Conference 10 Loan and Deposit Composition Composition of Loans Held for Investment (gross) as of June 30, 2022 Deposit Portfolio Composition as of June 30, 2022
Slide 11: History of Strong Profitability
2022 Raymond James US Bank Conference 11 History of Strong Profitability ROAA (%) ROATCE (%) Net Interest Margin (%) Non-Interest Income / Total Revenue 0.99% 1.06% 1.90% 0.41% 0.00% 0.50% 1.00% 1.50% 2.00% 2019Y 2020Y 2021Y LTM 4.08% 2.88% 3.23% 3.73% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 2019Y 2020Y
Slide 12: Shareholder Value Creation
2022 Raymond James US Bank Conference 12 Shareholder Value Creation $12.77 $16.02 $21.75 $21.22 $20.80 $0 $5 $10 $15 $20 $25 2019Y 2020Y 2021Y 2022Q1 2022Q2 Impressive Tangible Book Value Per Share growth in recent years
Slide 13: Key Company Highlights
2022 Raymond James US Bank Conference 13 Key Company Highlights Technology driven community bank with diversified revenue stream Experienced management team and dedicated local board Scarcity value with limited community bank competition Scalable platform in the attractive Tampa Bay / St. Petersburg
Slide 14: Appendix
Appendix
Slide 15: Investment Securities AFS
2022 Raymond James US Bank Conference 15 Investment Securities AFS Investment Securities Portfolio as of June 30, 2022 (fair market value, in thousands) (1)Investment Securities Portfolio Details • Other Comprehensive Income Loss of $2.6 million reduced Tangible Book Value by $0.42 QoQ as of June 30
Slide 16: Shareholder ownership
2022 Raymond James US Bank Conference 16 All Other Directors / Executive Officers, 13.34% Public / Other, 60.47% Mark S. Berset, 7.35% Vanguard Group Inc., 3.77% First Manhattan Co., 3.62% Banc Funds Co. LLC, 3.32% All Other Institutions, 8.13% Total Common Stock Top Insider Shareholders % Ownership
Slide 17: Attractive Florida Markets
2022 Raymond James US Bank Conference 17 Attractive Florida Markets MEANINGFUL ECONOMIC TAILWINDS #2 state in the U.S.A. for net domestic migration* ~$1.2T economy, with 3.8% GDP growth in Q3’21 Attractive tax policy 2.5 million small businesses, more than any other Southeastern state 3rd most popul
Slide 18: Deposit Market Share
2022 Raymond James US Bank Conference 18 Deposit Market Share Average Deposits Branches Deposits per Branch Market Share Rank Institution ($Bn) (No.) ($M) (%) 1 Tampa Bay Banking Co. 2.6 11 233 62.86 2 BayFirst Financial Corp. 0.5 5 101 12.37 3 West Florida Bank Corp. 0.4 6 58 8.58 4 Florida Bancsha
Slide 19: 2022 Strategic Initiatives
2022 Raymond James US Bank Conference 19 2022 Strategic Initiatives Fundamental Goals: • Expand the Community Banking Division and core deposit base, while utilizing SBA and residential mortgage as lead products • Maintain capital levels commensurate with risk profile and projected growth • Promote
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