Slide 1: BayFirst Financial Corp. 2024 Third Quarter Results (Unaudited)
BayFirst Financial Corp. (NASDAQ:BAFN) 2024 – Third 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)$1.25 SBA ORIGINATION SBA 7(a) ORIGINATOR IN THE NATION BY UNITS (3) #5 GROWTH ASSET GROWTH SINCE DEC 31, 2019(2)134% (1) Deposit ran
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 134% 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 Focused, Government Guaranteed 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 September 30, 2024 26.5% 18.2% 12.9% 23.4% 6.3% 3.2% 0.5% 9.0% C&I Residential HELOC Owner-occupied nonfarm/nonresidential Other nonfarm/nonresidential C&D Multifamily residential and farmland Consumer & Other Loan Highligh
Slide 8: Solid Deposit Composition
8 SOLID DEPOSIT COMPOSITION Deposit Portfolio Composition as of September 30, 2024 • Total Deposits grew $127 million during the first nine months of 2024 • Approximately 78% of deposits are insured as of September 30, 2024 • Minimal use of short-term brokered deposits ($77 million as of September 3
Slide 9: Investment Securities AFS
9 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of September 30, 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: Strategic Pillars 2024
10 STRATEGIC PILLARS 2024 Maintain Strong Capital Manage and Evolve Risk Management Leverage Our SBA Expertise Promote Innovation Maintain Granularity of Deposit and Loan Portfolios Leverage Banking Center Franchise and Core Deposit Base Continue to Promote Workplace Culture and Social Responsibilit
Slide 11: Goals & Initiatives: 2024 and Beyond
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 11 GOALS & INITIATIVES: 2024 AND BEYOND • Increase the volume of small-balance SBA loans • Focus on revenue growth and optimize the Bank’s efficiency ratio • Maximize existing banking
Slide 12: Q3 2024 Three Months Results
12 Q3 2024 For the Three Months Ended ($000s) 9/30/2024 6/30/2024 Increase/ (Decrease) 9/30/2023 Increase/ (Decrease) Interest income $ 21,442 $ 20,427 $ 1,015 $ 17,620 $ 3,822 Interest expense 11,993 11,245 748 9,227 2,766 Net interest income 9,449 9,182 267 8,393 1,056 Provision for credit losses
Slide 13: Q3 2024 Nine Months Results
13 Q3 2024 Nine Months Ended September 30, ($000s) 2024 2023 Increase/ (Decrease) Interest income $ 61,056 $ 49,663 $ 11,393 Interest expense 33,683 22,109 11,574 Net interest income 27,373 27,554 (181) Provision for credit losses 10,180 7,708 2,472 Noninterest income 38,193 35,064 3,129 Noninterest
Slide 14: Q3 2024 Key Metrics and Ratios
14 Q3 2024 As of and For the Three Months Ended As of and For the Nine Months Ended 9/30/2024 6/30/2024 9/30/2023 9/30/2024 9/30/2023 Return on average assets(1) 0.37 % 0.29 % 0.71 % 0.32 % 0.52 % Return on average common equity(1) 3.48 % 2.26 % 8.46 % 2.60 % 5.70 % Tangible book value per common sh
Slide 15: Strategic Growth
15 $83 $85 $85 $85 $86 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 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) $1,134 $1,118 $1,144 $1,218 $1,245 Q3 2023 Q
Slide 16: Summary of Key Ratios
16 SUMMARY OF KEY RATIOS ROAA (%)(1) ROATCE (%)(1) Net Interest Margin (%)(1) Noninterest Income / Total Revenue from Continuing Operations 0.71% 0.60% 0.29% 0.29% 0.37% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 0.00% 0.50% 1.00% 8.46% 6.37% 2.06% 2.26% 3.48% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 0.
Slide 17: Tangible Book Value Per Common Share
17 TANGIBLE BOOK VALUE PER COMMON SHARE $20.12 $20.60 $20.45 $20.54 $20.86 Tangible Book Value Per Common Share Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $10 $12 $14 $16 $18 $20 $22
Slide 18: Government Guaranteed Loan Production
18 $156 $145 $131 $99 $94 729 849 809 603 553 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $0 $25 $50 $75 $100 $125 $150 $175 500 600 700 800 900 1,000 • Nationally ranked #5 in total SBA units and #11 in dollars for the SBA’s fiscal year ended September 30, 2024 • Strategic initiative to expand USDA bus
Slide 19: CreditBench (SBA/USDA Loans)
19 $1,199 $1,252 $1,326 $1,358 $1,405 $373 $396 $375 $392 $395 $826 $856 $951 $966 $1,010 HFI Government Guaranteed Loans (1) Government Guaranteed Loans Serviced for Others 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 $0 $250 $500 $750 $1,000 $1,250 $1,500 CREDITBENCH (SBA/USDA LOANS) Guarant
Slide 20: Government Guaranteed Lending
20 Quarter Ended ($000s) 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Core 7(a) $ 36,635 $ 33,115 $ 29,967 $ 24,624 $ 26,982 Core 504 14,571 482 2,419 2,593 1,359 Core USDA 19,800 9,080 — — 800 Bolt 84,905 102,264 98,170 71,459 65,218 Total $ 155,911 $ 144,941 $ 130,556 $ 98,676 $ 94,359 GOVER
Slide 21: Asset Quality
21 ASSET QUALITY Strong reserve well-positioned to withstand volatility in economic conditions 1.13% 1.27% 1.71% 1.45% 1.16% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 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 22: Upgrade Consumer Loans
22 Quarter ended ($000s) 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Ending balance $ 20,006 $ 17,027 $ 14,345 $ 12,012 $ 10,100 31-90 days past due 852 1,021 718 572 445 90+ days past due 351 258 170 137 234 Net charge-offs 755 896 770 576 305 Net charge-offs to average loans (annualized) 13
Slide 23: Community Banking Performance Q3 2024
23 COMMUNITY BANKING PERFORMANCE Q3 2024 Loan Production Summary: ▪ Loan production during the quarter was $72.3 million(1) ▪ Loans held for investment, including government guaranteed loans, increased by a net $34.8 million QoQ Q3 2024 Deposit Summary: ▪ Deposit balances increased $69.8 million QoQ
Slide 24: Appendix
APPENDIX
Slide 25: Bolt Single Loan Earnings Example
25 BOLT SINGLE LOAN EARNINGS EXAMPLE Immediate One-Time Impact Loan amount (Average amount of a Bolt loan) $ 130,000 Guaranteed amount (85% of total loan) 110,500 Unguaranteed amount (15% of total loan, retained by BayFirst) 19,500 Premium earned on sale of guaranteed amount 10,166 (The gross premiu
Slide 26: Ownership Overview
26 OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,134,219 as of 10/16/24 Source: S&P Capital IQ Pro Vanguard Group Inc., 1.39% First Manhattan Co., 3.36% 1st & Main Growth Partners, 3.63% All Other Insti
Slide 27: Deposits in Tampa Bay-Sarasota Region
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 27 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 28: Liquidity Sources
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 28 LIQUIDITY SOURCES • Available Liquidity ◦ $67 million in cash and due from other banks ◦ $38 million in AFS investment securities • Off Balance Sheet Sources of Liquidity ◦ $171 mil
Slide 29: Experienced Leadership Team
29 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 30: Experienced Leadership Team
30 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