Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Q1 2024 Earnings Presentation
29 slides from Bayfirst Financial's earnings presentation, Apr 25, 2024
Slide 1: BayFirst Financial Corp. 2024 First Quarter Results (Unaudited)
BayFirst Financial Corp. (NASDAQ:BAFN) 2024 – First 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)$1.14 SBA ORIGINATION SBA 7(a) ORIGINATOR IN THE NATION BY UNITS (3) #2 GROWTH ASSET GROWTH SINCE DEC 31, 2019(2)115% 1. Deposit ranking of ban
Slide 4: Key Investment Points
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 4 KEY INVESTMENT POINTS Second largest community bank (deposits) based in attractive Tampa Bay-Sarasota region(1) Total asset growth of 115% since YE2019 Innovative technology driven b
Slide 5: Current Banking Center Location
55 ABOUT BAYFIRST FINANCIAL CORP. CURRENT BANKING CENTER LOCATION SOLID BANKING CENTER FRANCHISE IN TAMPA BAY-SARASOTA REGION
Slide 6: Technology platform, community banking and SBA lending
6 • 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 • 12 banking centers in Tampa Bay-
Slide 7: Attractive Loan Composition
7 ATTRACTIVE LOAN COMPOSITION Composition of Loans Held for Investment as of March 31, 2024 27.3% 18.8% 12.0% 24.6% 6.1% 2.9% 0.4% 6.8% C&I Residential HELOC Owner-occupied nonfarm/nonresidential Other nonfarm/nonresidential C&D Multifamily residential and farmland Consumer & Other Loan Highlights •
Slide 8: Solid Deposit Composition
8 SOLID DEPOSIT COMPOSITION Deposit Portfolio Composition as of March 31, 2024 • Total Deposits grew $22 million during the quarter • Approximately 84% of deposits are insured as of March 31, 2024 • Minimal use of short-term brokered deposits ($30 million as of March 31, 2024) • Grew number of check
Slide 9: Investment Securities AFS
9 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of March 31, 2024 (fair market value, in thousands) 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 m
Slide 10: Strategic Pillars 2024
10 STRATEGIC PILLARS 2024 Maintain Strong Capital Manage and Evolve Risk Management Leverage Our SBA Expertise Promote Innovation Maintain Granularity of Deposit and Loan Portfolios Leverage Banking Center Franchise and Core Deposit Base Continue to Promote Workplace Culture and Social Responsibilit
Slide 11: 2024 Goals & Initiatives
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 11 2024 GOALS & INITIATIVES • Increase the volume of small-balance SBA loans • Focus on revenue growth and optimize the Bank’s efficiency ratio • Maximize existing banking centers to i
Slide 12: Q1 2024 Income Statement
12 Q1 2024 For the Three Months Ended ($000s) 3/31/2024 12/31/2023 Increase/ (Decrease) 3/31/2023 Increase/ (Decrease) Interest income $ 19,187 $ 18,854 $ 333 $ 14,251 $ 4,936 Interest expense 10,445 9,977 468 5,198 5,247 Net interest income 8,742 8,877 (135) 9,053 (311) Provision for credit losses
Slide 13: Q1 2024 Key Ratios and Capital
13 Q1 2024 As of and For the Three Months Ended 3/31/2024 12/31/2023 3/31/2023 Return on average assets(1) 0.29 % 0.60 % 0.30 % Return on average common equity(1) 2.06 % 6.37 % 2.69 % Tangible book value per common share $ 20.45 $ 20.60 $ 19.70 Diluted earnings per common share $ 0.11 $ 0.32 $ 0.13
Slide 14: Organic Growth
14 $81 $81 $83 $85 $85 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $20 $40 $60 $80 $100 $120 Strong balance sheet on track for continued organic growth ORGANIC GROWTH Total Assets ($M) Total Loans HFI ($M) Total Deposits ($M) Tangible Common Equity ($M) $1,070 $1,087 $1,134 $1,118 $1,144 Q1 2023 Q2 2023
Slide 15: Summary of Key Ratios
15 SUMMARY OF KEY RATIOS ROAA (%)(1) ROATCE (%)(1) Net Interest Margin (%)(1) Noninterest Income / Total Revenue from Continuing Operations 0.30% 0.52% 0.71% 0.60% 0.29% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 0.00% 0.50% 1.00% 2.69% 5.86% 8.46% 6.37% 2.06% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 0.
Slide 16: Shareholder Value Creation
16 SHAREHOLDER VALUE CREATION $19.70 $19.85 $20.12 $20.60 $20.45 Tangible Book Value Per Share Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $10 $12 $14 $16 $18 $20 $22
Slide 17: Government Guaranteed Lending Production
17 $122 $125 $156 $145 $131 563 676 729 849 809 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $0 $25 $50 $75 $100 $125 $150 $175 500 600 700 800 900 1,000 • Nationally ranked #2 in total SBA units and #5 in dollars for the quarter ended March 31, 2024 • Strategic initiative to expand USDA business and ind
Slide 18: CreditBench (SBA/USDA Loans)
18 $1,044 $1,122 $1,199 $1,252 $1,326 $350 $364 $373 $396 $375 $694 $758 $826 $856 $951 HFI Government Guaranteed Loans (1) Government Guaranteed Loans Serviced for Others 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 $0 $250 $500 $750 $1,000 $1,250 $1,500 CREDITBENCH (SBA/USDA LOANS) Guarantee
Slide 19: Government Guaranteed Loan Production
19 Quarter Ended ($000s) 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Core 7(a) $ 33,832 $ 44,195 $ 36,635 $ 33,115 $ 25,967 Core 504 16,022 — 14,571 482 2,419 Core USDA 13,625 5,525 19,800 9,080 4,000 Bolt 58,633 74,785 84,905 102,264 98,170 Total $ 122,112 $ 124,505 $ 155,911 $ 144,941 $ 130
Slide 20: Asset Quality
20 ASSET QUALITY Strong reserve well-positioned to withstand volatility in economic conditions 1.05% 1.15% 1.13% 1.27% 1.71% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 0.0% 0.5% 1.0% 1.5% 2.0% Net charge-offs/Total average loans HFI at amortized cost ACL/Total loans held for investment at amortized cos
Slide 21: Upgrade Consumer Loans
21 Quarter ended ($000s) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Ending balance $ 23,255 $ 20,006 $ 17,027 $ 14,345 31-90 days past due 700 852 1,021 718 90+ days past due 220 351 258 170 Net charge-offs 601 755 896 770 Net charge-offs to average loans (annualized) 9.63 % 13.97 % 19.32 % 19.53 % UP
Slide 22: Community Banking Performance Q1 2024
22 COMMUNITY BANKING PERFORMANCE Q1 2024 Loan Production Summary: ▪ Loan production during the quarter was $66.6 million(1) ▪ Loans held for investment, including government guaranteed loans, increased by a net $19.4 million QoQ Q1 2024 Deposit Summary: ▪ Deposit balances increased $22.2 million QoQ
Slide 23: Appendix
APPENDIX
Slide 24: Bolt Single Loan Earnings Example
24 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 premiu
Slide 25: Ownership Overview
25 OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,134,914 as of 4/18/24 Source: S&P Capital IQ Pro Vanguard Group Inc., 2.98% First Manhattan Co., 3.36% 1st & Main Growth Partners, 3.36% All Other Instit
Slide 26: Deposits in Tampa Bay-Sarasota Region
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 26 DEPOSITS IN TAMPA BAY-SARASOTA REGION Total Deposits (Total Assets <$10BN and HQ in Tampa-Sarasota Region) Note: Deposit data as of December 31, 2023 Source: Uniform Bank Performanc
Slide 27: Liquidity Sources
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 27 LIQUIDITY SOURCES • Available Liquidity ◦ $61 million in cash and due from other banks ◦ $43 million in AFS investment securities • Off Balance Sheet Sources of Liquidity ◦ $162 mil
Slide 28: Experienced Leadership Team
28 EXPERIENCED LEADERSHIP TEAM • Joined BayFirst as CFO in Q2 2018; Prior to joining BayFirst, Controller of Central Bank & Trust Co., a $2.5 billion privately held financial institution in Lexington, Kentucky, from May 2014 to June 2018 • Approximately 16 years with Crowe LLP as an auditor in the f
Slide 29: Experienced Leadership Team
29 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