Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Q3 2022 Earnings Presentation
20 slides from Bayfirst Financial's earnings presentation, Nov 7, 2022
Slide 1: BayFirst Financial Corp. 2022 – Third Quarter Results (Unaudited)
BayFirst Financial Corp. (NASDAQ:BAFN) 2022 – Third Quarter Results (Unaudited)
Slide 2: Cautionary Statement Concerning Forward-Looking Information
Q3 2022 BayFirst Investor Presentation 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
Slide 3: About BayFirst Financial Corp.
Q3 2022 BayFirst Investor Presentation 3 Growth-oriented community bank ranked 2nd in the attractive Tampa Bay - St. Petersburg MSA(1) Ranked #8 SBA 7(a) originator through CreditBench, an in-house government guaranteed loan origination platform(2) Record SBA production of $139 million in third quar
Slide 4: Experienced Leadership Team
Q3 2022 BayFirst Investor Presentation 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 tr
Slide 5: Experienced Leadership Team (continued)
Q3 2022 BayFirst Investor Presentation 5 John Macaluso Matthew Luckey EVP, Chief Technology Officer • Joined BayFirst in Q4 2020 • 37 years information technology experience • Served as CTO for Fiserv, Inc. • B.A. from University of South Florida • Joined BayFirst in Q3 2015 • Previous experience in
Slide 6: Technology Driven Creditbench
Q3 2022 BayFirst Investor Presentation 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 COMMUNITY BANKING CRED
Slide 7: Community Banking Performance Q3'2022
Q3 2022 BayFirst Investor Presentation 7 Community Banking Performance Q3’2022 Loan Production Summary: ▪ Loan production during the quarter was $62.9 million(1) ▪ Loans held for investment increased by a net $25.2 million QoQ (1) Q3’2022 Deposit Summary: ▪ Q3’2022 deposit balance grew $110.7 millio
Slide 8: CreditBench (SBA lending) Q3'2022
Q3 2022 BayFirst Investor Presentation 8 • Pre- Pandemic: ~80% of loan production sourced through third-party partners • Post- Pandemic: over ~80% of production in-house through CreditBench • Ranked #8 in total SBA production in the SBA fiscal year ending September 30, 2022 • Total Q3’2022 SBA loan
Slide 9: Strong balance sheet on track for continued organic growth
Q3 2022 BayFirst Investor Presentation 9 Strong balance sheet on track for continued organic growth Record Organic Growth Total Assets excluding PPP Loans ($M) Total Net Loans HFI excluding PPP loans ($M) Total Deposits ($M) Tangible Common Equity ($M) Capitalizing on $15.0M after-ta x gain on sale
Slide 10: Loan and Deposit Composition
Q3 2022 BayFirst Investor Presentation 10 Loan and Deposit Composition Composition of Loans Held for Investment as of September 30, 2022 Deposit Portfolio Composition as of September 30, 2022 33.5% 17.7%7.4% 2.2% 33.5% 5.5% C&I Residential HELOC C&D Secured by Other Real Estate Consumer & Other 13.3
Slide 11: Continuing/Discontinued Operations
Q3 2022 BayFirst Investor Presentation 11 Continuing/Discontinued Operations Continuing Operations Discontinued Operations Three Months Ended September 30, Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, ($000s) 2022 2021 2022 2021 2022 2021 2022 2021
Slide 12: Positioned to Return to Strong Profitability
Q3 2022 BayFirst Investor Presentation 12 Positioned to Return to Strong Profitability ROAA (%) ROATCE (%) Net Interest Margin (%) Non-Interest Income / Total Revenue from Continuing Operations Volatility in first three quarters of 2022 due to discontinued operations mortgage: company repositioned f
Slide 13: Shareholder Value Creation
Q3 2022 BayFirst Investor Presentation 13 Shareholder Value Creation 21.3% CAGR since 2019 (includes dividends) Impressive Tangible Book Value Per Share growth in recent years $12.77 $16.02 $21.75 $21.22 $20.80 $20.10 2019Y 2020Y 2021Y 2022Q1 2022Q2 2022Q3 $0 $5 $10 $15 $20 $25
Slide 14: Key Company Highlights
Q3 2022 BayFirst Investor Presentation 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. Petersbur
Slide 15: Appendix
Appendix
Slide 16: Investment Securities AFS
Q3 2022 BayFirst Investor Presentation 16 Investment Securities AFS Investment Securities Portfolio as of September 30, 2022 (fair market value, in thousands) (1)Investment Securities Portfolio Details ◦ Other Comprehensive Income Loss of $3.8 million reduced Tangible Book Value by $0.94 QoQ as of S
Slide 17: Ownership Overview
Q3 2022 BayFirst Investor Presentation 17 Ownership Overview Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,031,937 Source: S&P Capital IQ Pro Vanguard Group Inc., 3.77% First Manhattan Co., 3.62% Banc Funds Co. LLC, 1.63%
Slide 18: Attractive Florida Markets
Q3 2022 BayFirst Investor Presentation 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 popu
Slide 19: Deposit Market Share Tampa-St. Petersburg MSA
Q3 2022 BayFirst Investor Presentation 19 Deposit Market Share Tampa-St. Petersburg MSA (Total Assets <$10BN and HQ in MSA) Note: Deposit data as of June 30, 2022 Source: S&P Capital IQ Pro Average Deposits Branches Deposits per Branch Market Share Rank Institution ($ billions) (No.) ($ millions) (%
Slide 20: 2023 Strategic Initiatives
Q3 2022 BayFirst Investor Presentation 20 2023 Strategic Initiatives Strategic Pillars: • Maintain capital levels commensurate with risk profile and projected growth • Ensure strong risk management and compliance systems commensurate with risk profile • Promote stability of earnings • Expand communi