Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Q2 2024 Earnings Presentation
30 slides from Bayfirst Financial's earnings presentation, 2024
Slide 1: BayFirst Financial Corp. 2024 Second Quarter Results
BayFirst Financial Corp. (NASDAQ:BAFN) 2024 – Second Quarter Results (Unaudited)
Slide 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 statements are subject to many risks and uncertainties, including, but not limited to, th
Slide 3: About BayFirst Financial Corp.
ABOUT BAYFIRST FINANCIAL CORP. TAMPA BAY’S PREMIER COMMUNITY BANKING FRANCHISE HOW WE RANK ASSET SIZE 2 $1.22 IN THE TAMPA BAY- BILLION TOTAL (1) (2) SARASOTA REGION ASSETS GROWTH SBA ORIGINATION INITIATIVES 129% #3 CSR ASSET GROWTH SBA 7(a) ORIGINATOR CORPORATE SOCIAL SINCE DEC 31, IN THE NATION BY
Slide 4: Key Investment Points
KEY INVESTMENT POINTS (1) ✔ Second largest community bank (deposits) based in attractive Tampa Bay-Sarasota region ✔ Total asset growth of 129% since YE2019 ✔ Deposit growth of 10% over last twelve months ✔ Among the nation’s top SBA loan originators ✔ Innovative technology driven bank planning for
Slide 5: About BayFirst Financial Corp. - Banking Center Locations
ABOUT BAYFIRST FINANCIAL CORP. CURRENT BANKING CENTER LOCATION SOLID BANKING CENTER FRANCHISE IN TAMPA BAY-SARASOTA REGION 55
Slide 6: Innovative Community Bank
INNOVATIVE COMMUNITY BANK Technology focused community bank with diversified revenue streams CREDITBENCH COMMUNITY BANKING • BayFirst’s in-house government • 12 banking centers in Tampa Bay- guaranteed lending platform Sarasota region • #3 in units and #9 SBA lender in • Full suite of commercial and
Slide 7: Attractive Loan Composition
ATTRACTIVE LOAN COMPOSITION Composition of Loans Held for Investment as of June 30, 2024 Loan Highlights 0.4% 8.6% 3.5% 26.6% 6.0% • Loan portfolio is well-diversified across major loan types with a low concentration of non owner-occupied 24.4% commercial real estate loans 18.1% • Total loan product
Slide 8: Solid Deposit Composition
SOLID DEPOSIT COMPOSITION Deposit Portfolio Composition as of June 30, 2024 Deposit Highlights Noninterest • Total Deposits grew $57 million during Bearing Transaction, the first six months of 2024 9.0% Time Deposits, • Approximately 81% of deposits are Interest 28.0% Bearing insured as of June 30,
Slide 9: Investment Securities
INVESTMENT SECURITIES Investment Securities Portfolio Details AFS Investment Securities Portfolio as of June 30, 2024 (fair market value, in thousands) • Minimal exposure to market value losses due to modest investment securities portfolio (0.4% of total Asset-backed securities, $6,306 assets) Corpo
Slide 10: Strategic Pillars 2024
STRATEGIC PILLARS 2024 Leverage Continue to Maintain Maintain Manage and Banking Promote Granularity Leverage Promote Center Workplace Strong Evolve Risk of Deposit Our SBA Innovation Franchise and Culture and Capital Management and Loan Expertise Core Deposit Social Portfolios Base Responsibility 1
Slide 11: Goals & Initiatives: 2024 and Beyond
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 centers to increase brand awareness and core deposit customers • Partner with Fintech firms to create fee income and lo
Slide 12: Q2 2024 Three Months Ended Results
Q2 2024 For the Three Months Ended Increase/ Increase/ ($000s) 6/30/2024 3/31/2024 (Decrease) 6/30/2023 (Decrease) Interest income $ 20,427 $ 19,187 $ 1,240 $ 17,792 $ 2,635 Interest expense 11,245 10,445 800 7,684 3,561 Net interest income 9,182 8,742 440 10,108 (926) Provision for credit losses 3,
Slide 13: Q2 2024 Six Months Ended June 30
Q2 2024 Six Months Ended June 30, Increase/ ($000s) 2024 2023 (Decrease) Interest income $ 39,614 $ 32,043 $ 7,571 Interest expense 21,690 12,882 8,808 Net interest income 17,924 19,161 (1,237) Provision for credit losses 7,058 4,707 2,351 Noninterest income 25,921 20,385 5,536 Noninterest expense 3
Slide 14: Q2 2024 Key Ratios and Capital
Q2 2024 As of and For the Three Months Ended As of and For the Six Months Ended 6/30/2024 3/31/2024 6/30/2023 6/30/2024 6/30/2023 (1) Return on average assets 0.29 % 0.29 % 0.52 % 0.29 % 0.42 % (1) Return on average common equity 2.26 % 2.06 % 5.86 % 2.16 % 4.29 % Tangible book value per common shar
Slide 15: Strategic Growth
STRATEGIC GROWTH Strong balance sheet on track for continued sustainable growth Total Assets ($M) Total Loans HFI ($M) $1,400 $1,200 $1,218 $1,008 $1,200 $1,087 $1,134 $1,118 $1,144 $935 $1,000 $878 $916 $837 $1,000 $800 $800 $600 $600 $400 $400 $200 $200 $0 $0 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 202
Slide 16: Summary of Key Ratios
SUMMARY OF KEY RATIOS (1) (1) ROAA (%) ROATCE (%) 1.00% 15.00% 0.71% 0.60% 10.00% 0.52% 8.46% 0.50% 6.37% 5.86% 0.29% 0.29% 5.00% 2.06% 2.26% 0.00% 0.00% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 (1) Net Interest Margin (%) Noninterest Income / Total Revenue fro
Slide 17: Tangible Book Value Per Share
TANGIBLE BOOK VALUE PER SHARE $22 $20.60 $20.45 $20.54 $20.12 $19.85 $20 $18 $16 $14 $12 $10 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Tangible Book Value Per Share 17
Slide 18: CreditBench (SBA/USDA Lending)
CREDITBENCH (SBA/USDA LENDING) Q2 2024 Highlights Government Guaranteed Loan Amount ($M) and Unit Volume $175 1,000 • Nationally ranked #3 in total SBA units and #9 in dollars for the $156 950 quarter ended June 30, 2024 $150 $145 • Strategic initiative to expand USDA business and industry lending $
Slide 19: CreditBench (SBA/USDA Loans)
CREDITBENCH (SBA/USDA LOANS) Guaranteed Loans HFI and Loans Serviced for Others ($M) $1,500 $1,358 $1,326 $1,252 $1,250 $1,199 $1,122 $1,000 $951 $966 $856 $826 $750 $758 $500 $250 $364 $373 $396 $375 $392 $0 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 HFI Government Guaranteed Loans (1) Gove
Slide 20: CreditBench Loan Production
CREDITBENCH LOAN PRODUCTION Quarter Ended ($000s) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Core 7(a) $ 44,195 $ 36,635 $ 33,115 $ 25,967 $ 24,624 Core 504 — 14,571 482 2,419 2,593 Core USDA 5,525 19,800 9,080 4,000 — Bolt 74,785 84,905 102,264 98,170 71,459 Total $ 124,505 $ 155,911 $ 144,
Slide 21: Asset Quality
ASSET QUALITY Strong reserve well-positioned to withstand volatility in economic conditions Net charge-offs/Total average loans HFI at amortized cost ACL/Total loans held for investment at amortized cost 2.0% 2.0% 1.71% 1.68% 1.61% 1.64% 1.62% 1.45% 1.50% 1.5% 1.5% 1.27% 1.15% 1.13% 1.0% 1.0% 0.5% 0
Slide 22: Upgrade Consumer Loans
UPGRADE CONSUMER LOANS Purchased unsecured consumer loans (no purchases after 2022: additional purchases are not planned) Quarter ended ($000s) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Ending balance $ 23,255 $ 20,006 $ 17,027 $ 14,345 $ 12,012 31-90 days past due 700 852 1,021 718 572 90+
Slide 23: Community Banking Performance
COMMUNITY BANKING PERFORMANCE Q2 2024 Highlights Banking Center & Deposits ($ in 000s) Total Deposits Year Q2 2024 Loan Production Summary: # Branch Opened 6/30/2024 6/30/2023 6/30/2022 (1) (2) ▪ Loan production during the quarter was $79.8 million 1 St. Petersburg 2017 $ 281,713 $ 277,276 $ 247,003
Slide 24: Appendix
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Slide 25: Bolt Single Loan Earnings Example
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 premium p
Slide 26: Ownership Overview
OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Mark S. Berset, 6.88% All Other Directors/ All Other Institutions, 9.08% Executive Officers, 8.01% 1st & Main Growth Partners, 3.63% First Manhattan Co., 3.36% Vanguard Group Inc., 2.57% Public/Other, 66.47% Note: Ownership information based on mos
Slide 27: Deposits in Tampa Bay-Sarasota Region
DEPOSITS IN TAMPA BAY-SARASOTA REGION Total Deposits (Total Assets <$10BN and HQ in Tampa-Sarasota Region) Average Deposits Branches Deposits per Branch Rank Institution ($ millions) (No.) ($ millions) 1 Bank of Tampa $2,818 13 $217 2 BayFirst National Bank 1,007 12 84 3 Flagship Bank 569 6 95 4 Cli
Slide 28: Liquidity Sources
LIQUIDITY SOURCES • Available Liquidity ◦ $63 million in cash and due from other banks ◦ $39 million in AFS investment securities • Off Balance Sheet Sources of Liquidity ◦ $133 million of unused, available borrowing capacity at the FHLB based on pledged loans ◦ $44 million available at the Federal
Slide 29: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM Thomas G. • Joined BayFirst in Q1 2016 Zernick • Previous experience includes Florida Market President of Stearns Bank, SBA Product Manager of HomeBanc, and Chief Executive Officer & Community Bank President and SBA President of Republic Bank (MI) Director of BayFirst and
Slide 30: Experienced Leadership Team
EXPERIENCED LEADERSHIP TEAM Brandi Jaber • 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 EVP, Chief Production Officer • B.B.S from The Universit