Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Q4 2024 Earnings Presentation
28 slides from Bayfirst Financial's earnings presentation, Jan 30, 2025
Slide 1: BayFirst Financial Corp. 2024 Fourth Quarter Results
BayFirst Financial Corp. (NASDAQ:BAFN) 2024 – Fourth Quarter Results (Unaudited)
Slide 2: Cautionary Statement Concerning Forward-Looking Information
22 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,
Slide 3: About BayFirst Financial Corp.
3 ABOUT BAYFIRST FINANCIAL CORP. TAMPA BAY’S PREMIER COMMUNITY BANKING FRANCHISE IN THE TAMPA BAY- SARASOTA REGION(1) HOW WE RANK 2 ASSET SIZE BILLION TOTAL ASSETS (2)$1.29 SBA ORIGINATION SBA 7(a) ORIGINATOR IN THE NATION BY UNITS (3) #9 ASSET GROWTH ASSET GROWTH SINCE DEC 31, 2019(2)143% (1) Depos
Slide 4: Key Investment Points
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 4 KEY INVESTMENT POINTS Second largest community bank (deposits) based in attractive Tampa Bay-Sarasota region(1) Total asset growth of 143% since YE2019 Innovative technology driven b
Slide 5: Current Banking Center Location
55 ABOUT BAYFIRST FINANCIAL CORP. CURRENT BANKING CENTER LOCATION CONVENIENT AND ATTRACTIVE BANKING CENTER FRANCHISE IN TAMPA BAY-SARASOTA REGION
Slide 6: Community Banking, Technology and SBA Lending
6 • Advanced technology platform to support innovative products and services while improving efficiencies • PowerLOS is an automated, highly scalable SBA and commercial loan origination system • Working with FinTechs to offer new and innovative services through Mulesoft API platform • 12 banking cen
Slide 7: Attractive Loan Composition
7 ATTRACTIVE LOAN COMPOSITION Composition of Loans Held for Investment as of December 31, 2024 26.2% 17.3% 14.0% 24.1% 6.0% 3.1% 0.5% 8.8% C&I Residential HELOC Owner-occupied nonfarm/nonresidential Other nonfarm/nonresidential C&D Multifamily residential and farmland Consumer & Other Loan Highlight
Slide 8: Solid Deposit Composition
8 SOLID DEPOSIT COMPOSITION Deposit Portfolio Composition as of December 31, 2024 • Total Deposits grew $31 million for the quarter and $158 million during the year • Approximately 74% of deposits are insured as of December 31, 2024 • Minimal use of short-term brokered deposits ($112 million as of D
Slide 9: Investment Securities AFS
9 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of December 31, 2024 (fair market value, in thousands) Investment Securities Portfolio Details • Minimal exposure to market value losses due to modest investment securities portfolio (0.3% of total assets) • Other Comprehensive Loss of $
Slide 10: 2025 Initiatives
10 2025 INITIATIVES Get ready to SOAR: • Strive for operational excellence • Optimize our technology platform to be more data driven • Accelerate our focus on business banking • Realign and diversify our sources of revenue
Slide 11: Q4 2024 Three Months Results
11 Q4 2024 For the Three Months Ended ($000s) 12/31/2024 9/30/2024 Increase/ (Decrease) 12/31/2023 Increase/ (Decrease) Interest income $ 21,754 $ 21,442 $ 312 $ 18,854 $ 2,900 Interest expense 11,101 11,993 (892) 9,977 1,124 Net interest income 10,653 9,449 1,204 8,877 1,776 Provision for credit lo
Slide 12: Q4 2024 Year Ended Results
12 Q4 2024 Year Ended December 31, ($000s) 2024 2023 Increase/ (Decrease) Interest income $ 82,810 $ 68,517 $ 14,293 Interest expense 44,784 32,086 12,698 Net interest income 38,026 36,431 1,595 Provision for credit losses 14,726 10,445 4,281 Noninterest income 60,469 49,755 10,714 Noninterest expen
Slide 13: Q4 2024 Key Metrics and Capital Ratios
13 Q4 2024 As of and For the Three Months Ended As of and For the Year Ended 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Return on average assets(1) 3.07 % 0.37 % 0.60 % 1.05 % 0.54 % Return on average common equity(1) 42.71 % 3.48 % 6.37 % 12.84 % 5.87 % Tangible book value per common sha
Slide 14: Strategic Growth: Assets, Loans, Deposits, Equity
14 $85 $85 $85 $86 $95 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $20 $40 $60 $80 $100 $120 Strong balance sheet on track for continued sustainable growth STRATEGIC GROWTH Total Assets ($M) Total Loans HFI ($M) Total Deposits ($M) Tangible Common Equity ($M) $1,118 $1,144 $1,218 $1,245 $1,288 Q4 2023 Q
Slide 15: Summary of Key Ratios
15 SUMMARY OF KEY RATIOS ROAA (%)(1) ROATCE (%)(1) Net Interest Margin (%)(1) Noninterest Income / Total Revenue from Continuing Operations 0.60% 0.29% 0.29% 0.37% 0.34% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 0.00% 0.25% 0.50% 0.75% 6.37% 2.06% 2.26% 3.48% 4.93% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2
Slide 16: Tangible Book Value Per Common Share
16 TANGIBLE BOOK VALUE PER COMMON SHARE $20.60 $20.45 $20.54 $20.86 $22.95 Tangible Book Value Per Common Share Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $10 $13 $15 $18 $20 $23 $25
Slide 17: Government Guaranteed Loan Production
17 $145 $131 $99 $94 $108 849 809 603 553 543 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $0 $25 $50 $75 $100 $125 $150 500 550 600 650 700 750 800 850 900 • Nationally ranked #9 in total SBA units and #16 in dollars for the SBA’s quarter ended December 31, 2024 • Strategic initiative to expand USDA bus
Slide 18: Government Guaranteed Loans HFI and Serviced for Others
18 $1,252 $1,326 $1,358 $1,405 $1,483 $396 $375 $392 $395 $426 $856 $951 $966 $1,010 $1,057 HFI Government Guaranteed Loans (1) Government Guaranteed Loans Serviced for Others 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 Government Guaranteed Loan
Slide 19: Government Guaranteed Loan Originations
19 Quarter Ended ($000s) 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 SBA 7(a) $ 33,115 $ 29,967 $ 24,624 $ 26,982 $ 23,447 SBA 504 482 2,419 2,593 1,359 1,982 USDA 9,080 — — 800 17,450 Bolt 102,264 98,170 71,459 65,218 64,905 Total $ 144,941 $ 130,556 $ 98,676 $ 94,359 $ 107,784 GOVERNMENT G
Slide 20: Asset Quality
20 ASSET QUALITY Strong reserve well-positioned to withstand volatility in economic conditions 1.27% 1.71% 1.45% 1.16% 1.34% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 0.0% 0.5% 1.0% 1.5% 2.0% Net charge-offs/Total average loans HFI at amortized cost ACL/Total loans held for investment at amortized cos
Slide 21: Upgrade Consumer Loans
21 Quarter ended ($000s) 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Ending balance $ 17,027 $ 14,345 $ 12,012 $ 10,100 $ 8,343 30-89 days past due 1,021 718 572 445 403 90+ days past due 258 170 137 234 186 Net charge-offs 896 770 576 305 394 Net charge-offs to average loans (annualized) 19
Slide 22: Community Banking Performance Q4 2024
22 COMMUNITY BANKING PERFORMANCE Q4 2024 Loan Production Summary: ▪ Loan production during the quarter was $51.0 million(1) ▪ Loans held for investment, including government guaranteed loans, increased by a net $24.8 million QoQ Q4 2024 Deposit Summary: ▪ Deposit balances increased $31.0 million QoQ
Slide 23: Appendix
APPENDIX
Slide 24: Ownership Overview
24 OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,132,986 as of 1/24/25 Source: S&P Capital IQ Pro Vanguard Group Inc., 1.39% First Manhattan Co., 3.36% 1st & Main Growth Partners, 3.64% All Other Instit
Slide 25: Deposits in Tampa Bay-Sarasota Region
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 25 DEPOSITS IN TAMPA BAY-SARASOTA REGION Total Deposits (Total Assets <$10BN and HQ in Tampa-Sarasota Region) Note: Deposit data as of June 30, 2024 Source: Uniform Bank Performance Re
Slide 26: Liquidity Sources
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 26 LIQUIDITY SOURCES • Available Liquidity ◦ $80 million in cash and due from other banks ◦ $36 million in AFS investment securities • Off Balance Sheet Sources of Liquidity ◦ $185 mil
Slide 27: Experienced Leadership Team
27 EXPERIENCED LEADERSHIP TEAM • Joined BayFirst as CFO in Q2 2018; Prior to joining BayFirst, Controller of Central Bank & Trust Co., a $2.5 billion privately held financial institution in Lexington, Kentucky, from May 2014 to June 2018 • Approximately 16 years with Crowe LLP as an auditor in the f
Slide 28: Experienced Leadership Team
28 EXPERIENCED LEADERSHIP TEAM • Joined BayFirst in Q4 2017; Prior to joining BayFirst, over fifteen years of Mortgage Banking administration experience as well as Human Resources experience supporting mid-size financial institutions • B.B.S from The University of Florida and M.B.A from The Universi