Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Janney Community Bank Forum 2022
20 slides from Bayfirst Financial's conference presentation, Sep 19, 2022
Slide 1: BayFirst Financial Corp. Janney Community Bank Forum September 2022
BayFirst Financial Corp. (NASDAQ:BAFN) Janney Community Bank Forum September 2022
Slide 2: Cautionary Statement Concerning Forward-Looking Information
Janney Community Bank Forum 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 1995. These
Slide 3: About BayFirst Financial Corp.
Janney Community Bank Forum 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) August 2022 • Advanced technology platform • Nationwide resid
Slide 4: Experienced Leadership Team
Janney Community Bank Forum 4 Anthony N. Leo Robin Oliver Thomas G. Zernick • 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 CEO of three troubled bank
Slide 5: Experienced Leadership Team
Janney Community Bank Forum 5 Matthew Luckey • Joined BayFirst in Q3 2015 • Previous experience includes commercial banking positions with The Bank of Tampa, Synovus Bank and SunTrust • B.B.A. from The University of Georgia EVP, Chief Banking Officer Experienced Leadership Team Brandi Jaber • Joined
Slide 6: Technology Driven Creditbench
Janney Community Bank Forum 6 • Advanced technology platform to support innovative products and services while improving efficiencies • PowerLOS for SBA and commercial lending • Working with fintechs to offer new and innovative services through Mulesoft API platform ADVANCED TECHNOLOGY PLATFORM COMM
Slide 7: Community Banking Performance: Branch & Deposits Market Share
Janney Community Bank Forum 7 ($ 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 2018 62,3
Slide 8: CreditBench (In-House) Q2'2022 Highlights
Janney Community Bank Forum 8 • 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, and 89.9% fr
Slide 9: Residential Mortgage Division Q2'2022 Highlights
Janney Community Bank Forum 9 • Residential mortgage production of $305.6 million in Q2’2022, down 8.9% from $335.6 million originated in the prior quarter • The Company: • completed a restructuring of its Residential Mortgage Division • discontinued its primary consumer direct residential mortgage
Slide 10: Record of Organic Growth
Janney Community Bank Forum 10 Strong balance sheet on track for continued organic growth Record of Organic Growth Total Assets excluding PPP Loans ($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 $800 $1,000
Slide 11: Loan and Deposit Composition
Janney Community Bank Forum 11 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 12: History of Strong Profitability
Janney Community Bank Forum 12 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 2021Y MRQ
Slide 13: Shareholder Value Creation
Janney Community Bank Forum 13 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 14: Key Company Highlights
Janney Community Bank Forum 14 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 MSA Stron
Slide 15: Appendix
Appendix
Slide 16: Investment Securities AFS
Janney Community Bank Forum 16 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, 2022 ◦ W
Slide 17: Shareholder Ownership
Janney Community Bank Forum 17 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 Mark S. B
Slide 18: Attractive Florida Markets
Janney Community Bank Forum 18 Attractive Florida Markets MEANINGFUL ECONOMIC TAILWINDS #2 state in the U.S.A. for net domestic migration* ~$1.2T economy, with 3.8% GDP growth in Q3’21 Attractive tax policy 2.5 million small businesses, more than any other Southeastern state 3rd most populous state
Slide 19: Deposit Market Share
Janney Community Bank Forum 19 Deposit Market Share Average Deposits Branches Deposits per Branch Market Share Rank Institution ($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 Bancshares Inc. 0
Slide 20: 2022 Strategic Initiatives
Janney Community Bank Forum 20 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 BayFirst a
BayFirst Financial — Janney Community Bank Forum 2022 on 6ix