Bayfirst Financial Corp. · NASDAQ:BAFN

Bayfirst Financial — Shareholder Meeting (May 2024)

62 slides from Bayfirst Financial's shareholder meeting presentation, May 16, 2024

  1. Slide 1: Annual Meeting of Shareholders

    Annual Meeting of Shareholders Thursday, May 16, 2024 5:30PM

  2. Slide 2: Agenda

     Welcome Brandi Jaber & Valerie Fulbright  Financial Performance Scott McKim  President’s Report- A Wrap up of 2023 Robin Oliver  Banking Spotlight Tom Quale & Joe McKenzie  A Look Ahead: 2024 Strategic Discussion Thomas G. Zernick  Chairman’s Remarks Anthony Saravanos  Q & A Session Moderate

  3. Slide 3: Welcome & Introductions: Board of Directors

    Welcome & Introductions Board of Directors  Anthony Saravanos BOARD CHAIR  Derek Berset BOARD MEMBER  Mark Berset CHAIR, NOMINATING & EXECUTIVE COMMITTEE  Dennis R. DeLoach III CHAIR, COMPENSATION COMMITTEE  Dr. Alex Harris CHAIR, COMPLIANCE COMMITTEE  Tarek Helal CHAIR, ASSET LIABILITY COMMIT

  4. Slide 4: Welcome & Introductions: Executive Officers

    Welcome & Introductions Executive Officers  Robin L. Oliver PRESIDENT & CHIEF OPERATING OFFICER  Lewis Benner CHIEF CREDIT OFFICER  Brandi Jaber CHIEF PRODUCTION OFFICER  John Macaluso CHIEF TECHNOLOGY OFFICER  Scott McKim CHIEF FINANCIAL OFFICER  Thomas G. Quale CHIEF LENDING OFFICER; SARASOT

  5. Slide 5: Financial Performance

    Loan Documentation Specialist Financial Performance Scott McKim, EVP, Chief Financial Officer

  6. Slide 6: Secretary's Report

    Secretary’s Report The Official Meeting of Shareholders was conducted at 5:00 PM in the Pinellas Room of the St. Petersburg Marriott Clearwater. The Corporate Secretary has reported that at least 2,376,681 shares, representing at least 57% of the shares outstanding as of the record date, were presen

  7. Slide 7: Proposal 1: Election of Directors

    PROPOSAL 1: ELECTION OF DIRECTORS At least 2,125,493 shares voted as of the record date, or 89% of the votes cast, voted in favor of all nominees. Therefore, all nominees have been elected. Voting Results

  8. Slide 8: Proposal 2: Adjournment of the Annual Meeting

    Voting Results PROPOSAL 2: ADJOURNMENT OF THE ANNUAL MEETING At least 2,329,171 shares voted as of the record date, or 98% of the votes cast, voted in favor of adjournment if needed due to an insufficient number of votes. Therefore, the proposal has been approved.

  9. Slide 9: Forward-looking statements

    99 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 1995. These statements are subject to many risks and uncertainties, including, but not limited to,

  10. Slide 10: 2023 Financial Results

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  11. Slide 11: Total Assets

    Total Assets (in 000’s) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 2024 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $ONE BILLION 10-Year Cumulative Annual Growth Rate is 30.7% *Excluding PPP

  12. Slide 12: Community Bank Loan Growth

    2020 2021 2022 2023 Q1 2024 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 3-Year Cumulative Annual Growth Rate is 51.3% Community Bank Loan Growth (in 000’s)

  13. Slide 13: Deposit Growth

    2020 2021 2022 2023 Q1 2024 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 3-Year Cumulative Annual Growth Rate is 20.8% Deposit Growth (in 000’s)

  14. Slide 14: 2023 Net Income & EPS by Quarter

    $739 $0.13/share $1,384 $0.29/share $1,923 $0.42/share $1,655 $0.32/share $0 $500 $1,000 $1,500 $2,000 $2,500 Q1 Q2 Q3 Q4 2023 Net Income & EPS by Quarter (in 000’s except per share)

  15. Slide 15: 2023 Return on Average Assets

    2023 Return on Average Assets Annualized 0.30% 0.52% 0.71% 0.60% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% 0.70% 0.80% Q1 Q2 Q3 Q4

  16. Slide 16: 2023 Return on Common Equity

    2023 Return on Common Equity Annualized 2.69% 5.86% 8.46% 6.37% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% Q1 Q2 Q3 Q4

  17. Slide 17: 2023 Tangible Book Value Per Common Share

    2023 Tangible Book Value Per Common Share $19.70 $19.85 $20.12 $20.60 $19.20 $19.40 $19.60 $19.80 $20.00 $20.20 $20.40 $20.60 $20.80 Q1 Q2 Q3 Q4

  18. Slide 18: 2023 Efficiency Ratio

    2023 Efficiency Ratio 81.90% 79.10% 77.40% 77.32% 75.00% 76.00% 77.00% 78.00% 79.00% 80.00% 81.00% 82.00% 83.00% Q1 Q2 Q3 Q4

  19. Slide 19: Asset Quality

    Asset Quality 2.10% 2.03% 2.03% 2.03% 0.20% 0.61% 0.71% 0.74% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% Q1 Q2 Q3 Q4 ACL to Loans HFI* Nonperforming Assets/Total Assets* *Excludes Government Guaranteed Loans HFI

  20. Slide 20: 2023 Net Interest Margin

    2023 Net Interest Margin Remaining Asset Sensitive 4.17% 4.18% 3.36% 3.48% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% Q1 Q2 Q3 Q4

  21. Slide 21: Comparative Peer NIM Trend Analysis

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  22. Slide 22: Funding Cost by Bank

    Funding Cost by Bank Most Recent Quarter Reported 0.00 0.50 1.00 2.00 3.00 4.00 1.50 2.50 3.50 4.50 Trailing 12-Months Most Recent Quarter

  23. Slide 23: Funding Cost by Bank

    4.00 3.50 3.00 250 2.00 150 1.00 050 0.00 Onus gion Funding Cost by Bank 202008 202103 = Flagship Bank Central Bank 202102 202103 202104 202201 202202 202203 —— One Florida Bank Bank of Central Florida — Cogent Bank ‘+ Winter Park National Bank 202204 202301 202302 202303 202308 202402 = =First Bank

  24. Slide 24: Loan Yield by Bank

    Loan Yield by Bank Most Recent Quarter Reported 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 Loan Yield (Current Trailing 12 Months Loan Yield (Current Quarter Annualized) Lo an Y ie ld

  25. Slide 25: Loan Yield by Bank

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  26. Slide 26: A Quick Look at Q1 2024

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  27. Slide 27: First Quarter Highlights

    FIRST QUARTER HIGHLIGHTS (IN 000’S) Total Assets $1,144,194 Net Income $824 Total Loan Production $197,829 Core Deposit Growth $22,178 * *Across all loan categories

  28. Slide 28: The Impact of Current Events

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  29. Slide 29: Challenging Time for the Industry - BAFN

    Challenging Time for the Industry- BAFN Charts reflect prices as of market close May 6, 2024

  30. Slide 30: Industry Insured Deposits

    Industry Insured Deposits 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% BMO Harris Synovus BofA Chase Republic Bank OZK BayFirst Call report data as of 3/31/2024

  31. Slide 31: Commercial Real Estate Exposure

    Commercial Real Estate Exposure 0% 10% 20% 30% 40% 50% 60% 70% 80% NYCB Bank OZK Pacific Premier Home BancShares M&T Bank Huntington Zions BayFirst Percent of Total Loans as of Q3 2023 Sources: Visual Capitalist and Seeking Alpha

  32. Slide 32: President's Report

    Loan Documentation Specialist President’s Report Robin Oliver, President and Chief Operating Officer

  33. Slide 33: 2023 – A Year of Transition

    2023 – A Year of Transition  Transitioned from break-even year in 2022 with exit of our nationwide residential platform to a rebuilding year in 2023, with a $6.1M increase in net income year over year  Building a true community bank with the addition of 3 banking centers in 2023 and strong convent

  34. Slide 34: Retail Banking

     Opened 3 banking centers:  Carrollwood in Tampa  Bee Ridge in Sarasota  North Sarasota  Checking Deposit Growth:  $67 Million growth in 2023  2,242 Net new accounts  27% Increase  Savings Account Growth:  Grew 967 net new savings accounts  36% increase Retail Banking

  35. Slide 35: Consumer Lending

     HELOCS & HELOANS lead the way  Boat lending ramping up quickly  Production in full swing:  $128 Million in production for 2023  Record quarter of $44 million in Q4  $124 million in 2022  1,073 loans YTD, up from 797  18% YTD YOY increase Consumer Lending

  36. Slide 36: Residential Mortgage

     Residential Production continues while rates remain elevated  $25.6M in the first year of new structure  102% of goal  89% of YTD Production are Portfolio mortgages that we retain on our balance sheet Residential Mortgage

  37. Slide 37: Conventional Commercial Lending

    Conventional Commercial Lending  Conventional Commercial Production  $66.1M in production for 2023  73% of Goal  Rising rates have impacted demand/ Current Pipeline  Focus on C&I and owner- occupied real estate lending locally

  38. Slide 38: CreditBench Lending

     Closed $547.5M in 2023 (up from $386M in 2022- a 42% increase)  $320M of that production was BOLT!  $43M in Flashcap, with that program winding down  83% of goal  Core production impacted by higher rate environment and may continue to face headwinds in 2024  USDA better than expected and may

  39. Slide 39: 2023 Operational Enhancements

    2023 Operational Enhancements  Consumer digital account opening (DAO)  ACH transfers to and from other bank accounts  Forward Pay to get your paycheck up to 2 days early  SmartVault (Secure portal for account opening and file transfer)  ClickSwitch to use at account opening to make switching ba

  40. Slide 40: Impact on the Community

     Minority-Owned Business Lending Program  $266M in 2023 vs. $200M Goal  6 carbon neutral banking centers  5 LEED Certified  U.S. Green Building Council- Florida Partner of the Year (highest standards of innovation, sustainability, and leadership) Impact on the Community

  41. Slide 41: Banking Spotlight

    Underwriter Loan Documentation Specialist Lending Officer Credit Analyst Loan Coordinator Relationship Specialist Associate Lending Officer Closer Funding SpecialistBanking Spotlight Joe McKenzie Assistant Branch Manager- North Sarasota Tom Quale EVP, Market President

  42. Slide 42: CEO Remarks

    Loan Documentation Specialist Relationship Specialist CEO Remarks Thomas G. Zernick, CEO

  43. Slide 43: Study the Trend

    “The top 25 banks in the country controlled 41% of the deposits in 2003. Today, the top 25 banks in the country control 64% of the deposits.” Study the Trend

  44. Slide 44: Sticky Inflation

    At the most recent Federal Reserve meeting, it was hinted interest rates may remain steady, longer. Sticky Inflation

  45. Slide 45: Did You Know?

    “70% of Small Businesses are 1-person shops” Did You Know?

  46. Slide 46: Scarcity Value

    “Over the next 10 years, the number of banks will drop from 4,500 to 3,500!” Scarcity Value

  47. Slide 47: High-Touch Relationship Banking

    “Retaining and expanding customer relationships is as important as establishing new accounts” High-Touch Relationship Banking

  48. Slide 48: Florida

     Florida Ranked one of the best states in the nation for 2024  9th best positioned state  #1 quality of (higher) education  #1 economy US News and World Report ranks Florida among the best states in the nation!

  49. Slide 49: Data is the new Oil

    > Data is the new “Oil”

  50. Slide 50: Moving BayFirst Forward in 2024

    New referral partnerships; Optimize pull-through processes Increase SBA Volume Boost profitability by focusing on revenue growth and optimizing the Bank’s efficiency ratio Enhance Earnings Stability Enhance overall customer experience, engagement, and satisfaction. Improve digital channels and funct

  51. Slide 51: Crossing the Finish Line

    Crossing the Finish Line Deposit Growth CreditBench Production Operational Partners Conventional Loan Production DEPOSIT GROWTH Checking $43 Million Savings & MMA $9 Million Growth in Numbers of Checking & Savings Accounts 3,500 CREDITBENCH PRODUCTION Bolt $415 Million Core SBA $160 Million Core USD

  52. Slide 52: Here for "What's Next" in 2024

    Here for “What’s Next” in 2024

  53. Slide 53: BayFirst Loan Texting Platform

    BayFirst Loan Texting Platform  BayFirst Loan Texting Platform will allow us to contact our customers throughout the lifecycle of their loan, including upcoming & delinquent payment reminders  This is the first of many use cases for our texting platform

  54. Slide 54: New Account Opening Process

    New Account Opening Process  BranchAnywhere implementation will introduce iPad technology in our new account opening process  “Meet the Customer On Their Terms” mentality

  55. Slide 55: 12th Banking Center Opens

     Our newest Banking Center is located in a highly visible area directly across from Sarasota Memorial Hospital  The South Trail Banking center will be our flagship office in the Sarasota/Bradenton Region 12th Banking Center Opens

  56. Slide 56: Expand POWER

    Expand POWER  Expanding the POWER platform to include not only our BOLT loan program, but also our Core and Conventional loans  This will streamline our processes and improve our efficiency ratio and data quality

  57. Slide 57: API Integrations

    API Integrations  Continue our API integrations with service, FinTech and compliance partners  Significant improvement in our asset quality  Reduction in risk  Fine tune the marketing campaigns we develop

  58. Slide 58: BayFirst - Engaged in Our Communities

    BayFirst- Engaged in Our Communities

  59. Slide 59: Reaching New Heights: Remembering Our Roots

    Reaching New Heights: Remembering Our Roots

  60. Slide 60: Chairman's Report

    Credit Analyst Loan Coordinator Relationship Specialist Chairman’s Report Anthony Saravanos, Board Chair

  61. Slide 61: Shareholder Q&A

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  62. Slide 62: BayFirst

    BAYFIRST

BayFirst Financial — Shareholder Meeting (May 2024) on 6ix