Slide 1: 2023 Second Quarter Results (Unaudited)
BayFirst Financial Corp. (NASDAQ:BAFN) 2023 – Second 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 BANKING FRANCHISE in the Tampa Bay/ Sarasota Region(1) HOW WE RANK 2 ASSET SIZE Billion total assets (2)$1.09 SBA ORIGINATION SBA 7(a) ORIGINATOR IN THE NATION (3) #6 GROWTH ASSET GROWTH OVER 5 YEARS198% 1. Deposit ranking of banks with assets les
Slide 4: Expanding Banking Center Franchise
44 ABOUT BAYFIRST FINANCIAL CORP. CURRENT BANKING CENTER LOCATION FUTURE BANKING CENTER LOCATION EXPANDING BANKING CENTER FRANCHISE
Slide 5: Technology platform and products and services
5 • Advanced technology platform to support innovative products and services while improving efficiencies • PowerLOS for government guaranteed and commercial lending platform • Working with FinTechs to offer new and innovative services through Mulesoft API platform • 10 banking centers in Tampa Bay,
Slide 6: Attractive Loan Composition
6 ATTRACTIVE LOAN COMPOSITION Composition of Loans Held for Investment as of June 30, 2023 30.8% 18.6% 9.8% 1.9% 28.1% 5.8% 0.5% 4.5% C&I Residential HELOC C&D Owner-occupied nonfarm/nonresidential Other nonfarm/nonresidential Secured by Other Real Estate Consumer & Other Loan Highlights • Low conce
Slide 7: Solid Deposit Composition
7 SOLID DEPOSIT COMPOSITION Deposit Portfolio Composition as of June 30, 2023 • Transaction account balances increased $58 million or 20% during the first half of the year • Approximately 82% of deposits are insured • Minimal use of short-term brokered deposits (4% of total deposits as of June 30, 2
Slide 8: Investment Securities AFS
8 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of June 30, 2023 (fair market value, in thousands) (1)Investment Securities Portfolio Details • Minimal exposure to market value losses due to modest investment securities portfolio (4% of total assets) • Other Comprehensive Loss of $3.2
Slide 9: Key Strategic Initiatives for 2023 and Beyond
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Slide 10: Q2 2023 Three Months Income Statement
10 Q2 2023 For the Three Months Ended ($000s) 6/30/2023 3/31/2023 Increase/ (Decrease) 6/30/2022 Increase/ (Decrease) Interest income $ 17,792 $ 14,251 $ 3,541 $ 7,759 $ 10,033 Interest expense 7,684 5,198 2,486 1,172 6,512 Net interest income 10,108 9,053 1,055 6,587 3,521 Provision for credit loss
Slide 11: Q2 2023 Six Months Income Statement
11 Q2 2023 Six Months Ended June 30, ($000s) 2023 2022 Increase/ (Decrease) Interest income $ 32,043 $ 14,762 $ 17,281 Interest expense 12,882 2,506 10,376 Net interest income 19,161 12,256 6,905 Provision for credit losses 4,707 (2,150) 6,857 Noninterest income 20,385 13,342 7,043 Noninterest expen
Slide 12: Q2 2023 Key Performance and Capital Ratios
12 Q2 2023 As of and For the Three Months Ended As of and For the Six Months Ended 6/30/2023 3/31/2023 6/30/2022 6/30/2023 6/30/2022 Return on average assets(1) 0.52 % 0.30 % (0.13) % 0.42 % (0.06) % Return on average common equity(1) 5.86 % 2.69 % (2.35) % 4.29 % (1.64) % Tangible book value per co
Slide 13: Strong balance sheet on track for continued organic growth
13 $56 $85 $82 $81 2020Y 2021Y 2022Y Q2 2023 $20 $40 $60 $80 $100 $120 Strong balance sheet on track for continued organic growth ORGANIC GROWTH Total Assets excluding PPP Loans ($M) Total Net Loans HFI excluding PPP loans ($M) Total Deposits ($M) Tangible Common Equity ($M) Capitalizing on $15.0M a
Slide 14: Liquidity Sources
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Slide 15: Positioned to Return to Strong Profitability
15 POSITIONED TO RETURN TO STRONG PROFITABILITY ROAA (%) ROATCE (%) Net Interest Margin (%) Noninterest Income / Total Revenue from Continuing Operations Volatility in 2022 due to discontinued mortgage operations 2023 was impacted by the cancellation of the sale of government guaranteed loans to Sig
Slide 16: Asset Quality
16 ASSET QUALITY Strong reserve well-positioned to withstand volatility in economic conditions 1.44% 1.00% 0.61% 1.05% 2020Y 2021Y 2022Y YTD Q2 2023 0.0% 0.5% 1.0% 1.5% 2.0% Net charge-offs/average loans held for investment excluding PPP ACL/Total loans held for investment at amortized cost, excludi
Slide 17: Shareholder Value Creation
17 SHAREHOLDER VALUE CREATION $11.49 $12.77 $16.02 $21.75 $20.35 $19.70 $19.85 Tangible Book Value 2018Y 2019Y 2020Y 2021Y 2022Y Q1 2023 Q2 2023 $0 $5 $10 $15 $20 $25 CECL adoption decreased equity by $2.5M in Q1 ‘23 Record earnings fro m residential m ortgage and PPP lending in ‘20 and ‘21 Disconti
Slide 18: Community Banking Performance Q2 2023
18 COMMUNITY BANKING PERFORMANCE Q2 2023 Loan Production Summary: ▪ Loan production during the quarter was $71.1 million(1) ▪ Loans held for investment, including government guaranteed loans, increased by a net $46.5 million QoQ Q2 2023 Deposit Summary: ▪ Deposit balances grew $11.9 million QoQ ▪ De
Slide 19: Government guaranteed loan production
19 $101 $169 $386 $496 320 374 1,364 2,309 2020Y 2021Y 2022Y LTM $0 $100 $200 $300 $400 $500 500 1,000 1,500 2,000 2,500• Nationally ranked #6 in total SBA dollars and #3 in units for the quarter ending June 30, 2023 • Strategic initiative to expand USDA business and industry lending program. The Co
Slide 20: Government Guaranteed Loans
20 GOVERNMENT GUARANTEED LOANS • Government guaranteed loan portfolio of $364 million of which $183 million are guaranteed by the SBA or USDA • Sold $113 million of guaranteed loan balances and $11 million of unguaranteed loan balances for a net gain on sale of $6 million during the quarter • The sa
Slide 21: Key Investment Points
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Slide 22: Appendix
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Slide 23: Ownership Overview
23 OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,104,669 as of 7/20/2023 Source: S&P Capital IQ Pro Vanguard Group Inc., 3.85% First Manhattan Co., 3.38% Banc Funds Co. LLC, 3.25% All Other Institutions
Slide 24: Attractive Florida Markets
24 ATTRACTIVE FLORIDA MARKETS MEANINGFUL ECONOMIC TAILWINDS #2 state in the U.S.A. for net domestic migration and top 3 growth state* ~$1.5T economy, with 3.5% GDP growth in Q1’23 Attractive tax policy 3.0 million small businesses, more than any other Southeastern state 3rd most populous state Total
Slide 25: Deposits in Tampa Bay/Sarasota Region
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Slide 26: Experienced Leadership Team
26 EXPERIENCED LEADERSHIP TEAM • 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 banks between 2009 and 2013 • Managing Director a
Slide 27: Experienced Leadership Team
27 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