Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Shareholder Meeting (May 2023)
46 slides from Bayfirst Financial's shareholder meeting presentation, May 18, 2023
Slide 1: Annual Meeting of Shareholders
BayFirst Financial Corp. Officers Meeting Q1 2022 ANNUAL MEETING OF SHAREHOLDERS BAYFIRST FINANCIAL CORP. Thursday, May 18, 2023
Slide 2: Bark Here. Bank Here.
BARK HERE. BANK HERE. BAYFIRST BAALZ BAALA AV AVAVAV AY, WAVAVAVAVAN WAVAVAVAVAY LALALRA
Slide 3: Agenda
AGENDA • WELCOME & INTRODUCTIONS • CEO’S REPORT • SHAREHOLDER Q&A Dianne Carney, VP, Director, Learning & Development & Valerie Fulbright, SVP, Community Engagement Officer • MEETING REPORT Robin L. Oliver, Chief Operating Officer and Chief Financial Officer Anthony N. Leo, Chief Executive Officer •
Slide 4: Cautionary Statement
CAUTIONARY STATEMENT This presentation contains certain forward-looking statements and projections of financial performance. Such projections are, by nature, based on anticipating future events that cannot be predicted with accuracy and there is no assurance that the projections can or will be achie
Slide 5: Welcome & Introductions: Directors
5 WELCOME & INTRODUCTIONS DIRECTORS Anthony Saravanos BOARD CHAIR Mark Berset CHAIR, NOMINATING & EXECUTIVE COMMITTEES Derek Berset Dennis R. DeLoach III CHAIR, COMPENSATION COMMITTEE Dr. Alex Harris CHAIR, COMPLIANCE COMMITTEE Tarek Helal CHAIR, ASSET LIABILITY COMMITTEE
Slide 6: Welcome & Introductions: Directors
6 WELCOME & INTRODUCTIONS DIRECTORS Anthony N. Leo CHIEF EXECUTIVE OFFICER; CHAIR, DIRECTORS’ CREDIT AND LOAN COMMITTEE Christos Politis CHAIR, ESG COMMITTEE Bradly Spoor Sheryl WuDunn CHAIR, TECH STRATEGY COMMITTEE Thomas G. Zernick PRESIDENT, BAYFIRST FINANCIAL CORP. Barbara Zipperian CHAIR, AUDIT
Slide 7: Welcome & Introductions: Executive Officers
7 WELCOME & INTRODUCTIONS EXECUTIVE OFFICERS Robin L. Oliver CHIEF OPERATING OFFICER, CHIEF FINANCIAL OFFICER Lewis Benner CHIEF CREDIT OFFICER Brandi Jaber CHIEF PRODUCTION OFFICER John Macaluso CHIEF TECHNOLOGY OFFICER Thomas G. Quale CHIEF LENDING OFFICER, SARASOTA MARKET PRESIDENT
Slide 8: In Memoriam
IN MEMORIUM George Apostolou 1951 – 2023 Director: 2011 - 2022 Friend and trusted advisor
Slide 9: Annual Meeting Report
ANNUAL MEETING REPORT Robin L. Oliver
Slide 10: Secretary's Report
10 SECRETARY’S REPORT The Official Meeting of Shareholders was conducted at 5:00 PM in the Tampa Room of the St. Petersburg Marriott Clearwater. The Corporate Secretary has reported that at least 2,412,325 shares, representing at least 58% of the shares outstanding of the record date, were present i
Slide 11: Voting Results
11 VOTING RESULTS PROPOSAL 1: ELECTION OF DIRECTORS At least 2,042,124 shares outstanding as of the record date, or 85% of the votes cast, voted in favor of all nominees. Therefore, all nominees have been elected.
Slide 12: CEO's Remarks
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Slide 13: A Milestone
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Slide 14: Total Assets: One Billion
14 2013 2014 2015 2016 2017 2018 2019 2020* 2021* 2022 Q1 2023 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 TOTAL ASSETS (in 000’s) ONE BILLION *Excluding PPP
Slide 15: A Look Back at 2022
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Slide 16: 2022 Net Income by the Quarters
16 2022 NET INCOME BY THE QUARTERS (in 000’s) ($13) ($282) ($1,402) $1,323 -$2,000 -$1,500 -$1,000 -$500 $0 $500 $1,000 $1,500 Q1 Q2 Q3 Q4
Slide 17: Residential Mortgage Performance
17 RESIDENTIAL MORTGAGE PERFORMANCE Unallocated Corporate Allocation Warehouse Interest Fully Allocated 2017 -1,813,372 - - -1,813,372 2018 -1,561,208 -1,200,000 -994,005 -3,755,213 2019 4,073,345 -1,400,000 -1,281,054 1,392,291 2020 31,732,619 -1,500,000 -1,851,608 28,381,011 2021 21,203,374 -1,787
Slide 18: Top SBA Lenders FY 2022
TOP 10 SBA LENDERS FY 2022 * SBA
Slide 19: Six Year Earnings Trend
19 SIX YEAR EARNINGS TREND (in 000’s) $3,340 -$1,205 $4,484 $12,703 $24,618 -$349 -$5,000 $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 2017 2018 2019 2020 2021 2022
Slide 20: Six Year Earnings Per Share Trend
$2.48 ($.43) $1.27 $3.01 $5.91 ($.22) -$1.00 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 2017 2018 2019 2020 2021 2022 20 SIX YEAR EARNINGS PER SHARE TREND (Fully-diluted shares)
Slide 21: Six-Year Tangible Book Value Per Share Trend
21 SIX-YEAR TANGIBLE BOOK VALUE PER SHARE TREND $11.40 $11.49 $12.77 $16.02 $21.75 $20.35 $0.00 $5.00 $10.00 $15.00 $20.00 $25.00 YE 2017 YE 2018 YE 2019 YE 2020 YE 2021 YE 2022
Slide 22: A Quick Look at Q1 2023
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Slide 23: First Quarter Highlights
23 FIRST QUARTER HIGHLIGHTS (IN 000’S) Total Assets $1,069,839 Net Income $739 Total Loan Production $168,470 Core Deposit Growth $102,831 * *Across all loan categories ** **Exclusive of Listing Service and CDARS one-way deposits
Slide 24: Industry Deposit Growth Q1 2023: BayFirst Stands Out
24 INDUSTRY DEPOSIT GROWTH Q1 2023: BAYFIRST STANDS OUT! -6% -4% -2% 0% 2% 4% 6% 8% 10% 12% 14% 16% US Bank M&T CItibank Wells Truist Bank of America Chase BayFirst * * Excluding CDARS one-way deposits
Slide 25: The Impact of Current Events
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Slide 26: Challenging Times for the Industry
CHALENGING TIMES FOR THE INDUSTRY *Charts reflect prices as of market close May 16th, 2023 BAFN
Slide 27: Adjusting to Rising Rates
ADJUSTING TO RISING RATES Funding Beta* Asset Beta* 0.43 0.58 3/31/2022 3/31/2023 Yield on Earning Assets 3.93% 6.57% Funding Cost 0.79% 2.74% * Movement for every 100 bps change in Fed Funds rate to date
Slide 28: Impact of Unrealized Loss of AFS Securities
IMPACT OF UNREALIZED LOSS OF AFS SECURITIES 28 0% 10% 20% 30% 40% 50% 60% 70% 80% BayFirst Bank OZK Truist Synovus Bank of Tampa Republic Bank (PA) Unrealized loss as a % of equity capital at bank level. Does not include impact of HTM securities.
Slide 29: Industry Insured Deposits
INDUSTRY INSURED DEPOSITS 29 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% SVB BMO Harris Synovus BofA Chase Republic Bank OZK BayFirst
Slide 30: Our Distinctive Business Model Builds Long-Term Value
OUR DISTINCTIVE BUSINESS MODEL BUILDS LONG-TERM VALUE
Slide 31: Opening Banking Centers When Others Are Closing
OPENING BANKING CENTERS WHEN OTHERS ARE CLOSING GROWING FOOTPRINT
Slide 32: Expanding Banking Center Network
EXPANDING BANKING CENTER NETWORK CURRENT BANKING CENTER LOCATIONS FUTURE BANKING CENTER LOCATIONS Seminole 1999 Pinellas Park 2005 Countryside 2018 St. Petersburg 2017 Downtown Sarasota 2018 West Tampa 2021 Belleair Bluffs 2022 West Bradenton 2022 Carrollwood 2023 Bee Ridge Sarasota 2023 S. Tamiami
Slide 33: Unique Brand
_— UNIQUE BRAND
Slide 34: Advancing Technology
ADVANCING TECHNOLOGY BAYFIRST
Slide 35: Socially Responsible
SOCIALLY BAYFIRST RESPONSIBLE BAYFIRST = ersonal= comercial _Nowoton = _Empleos_ Banca enn Préstamos y lineas de e| i crédito sobre valor liquido Eat ae Wy A ©mpact os Established Over $100 Million in Minority Lending
Slide 36: Distinctive Marketing
BAYFIRST DISTINCTIVE MARKETING
Slide 37: Business Strategy Focused on Individuals, Families, and Small Businesses
BUSINESS STRATEGY FOCUSED ON INDIVIDUALS, FAMILIES, AND SMALL BUSINESSES
Slide 38: Top SBA Lenders (As of May 2, 2023)
38 TOP SBA LENDERS (As of May 2, 2023) *
Slide 39: What's Next
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Slide 40: Building the Bank of Tampa Bay
BUILDING THE BANK OF TAMPA BAY! 40 DISTINCTIVE BRAND! TECHNOLOGY DRIVEN! SOCIALLY FOCUSED! ENGAGED TEAM! NATIONAL LEADER IN SBA LENDING! THE PREMIER BANKING FRANCHISE IN TAMPA BAY!
Slide 41: Community Impact
COMMUNITY IMPACT Thomas G. Zernick & Dianne Carney
Slide 42: Chairman's Remarks
CHAIRMAN’S REMARKS Anthony Saravanos
Slide 43: Chairman's Remarks: Florida Growth and Migration
CHAIRMAN’S REMARKS BAY FIRST FOR JOB GROWTH 2022 P% oe, 0, 2 9% 2.9 NATIONAL AVERAGE IS ON FLORIDA'S 1.0M NET MIGRATION (2020-2024) (Domestic/international) “FLORIDA eae MOVE TO BRINGS FLORIDA TO #3 WHEN COMPARED ies 11M FLORIDA CITIES: [* | ©; STUDENTS ORLANDO It aoe A 318k Ser (c JACKSONVILLE 58%
Slide 44: Chairman's Remarks: Florida GDP Growth
CHAIRMAN’S REMARKS [aa oi TOTAL 2021 GDP - FL CONTINUES ITS RAPID GROWTH Italy — EEE Canada South Korea x | | Florida [PRUE We ea Brazil ————= Australia << | Spain — Mexico 2030 GDP | PROJECTION Florida — Indonesia Netherlands
Slide 45: Shareholder Q&A
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Slide 46: Join Us for the Social Hour
JOIN US FOR THE SOCIAL HOUR