Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Shareholder Meeting (May 2025)
71 slides from Bayfirst Financial's shareholder meeting presentation, May 16, 2025
Slide 1: Annual Meeting of Shareholders
BAYFIRST ANNUAL MEETING OF SHAREHOLDERS Thursday, May 15t*, 2025 BAYFIRST
Slide 2: Today's Meeting
TODAY’S MEETING WELCOME & INTRODUCTIONS BRANDI JABER: FINANCIAL PERFORMANCE SCOTT MCKIM: 2024: IN REVIEW & SPOTLIGHT ROBIN OLIVER: 2025: STRATEGIC DISCUSSION THOMAS ZERNICK: CHAIRMAN’S REMARKS ANTHONY SARAVANOS: SHAREHOLDER G&A BRANDI JABER: FIRST
Slide 3: Introductions
A INTRODUCTIONS A BRANDI JABER EVP, Chief Production Officer BAYFIRST
Slide 4: Board of Directors
BOARD OF DIRECTORS ANTHONY MARK DR. ALEX SARAVANOS BERSET HARRIS Board Chair Chair, Ad Hoc Executive Chair, Compliance Committee Committee AAG DEREK DENNIS ANTHONY BERSET DELOACH III LEO Board Member Chair, Compensation Chair, Directors Credit Committee & Loan Committee BAYFIRST
Slide 5: Board of Directors
BOARD OF DIRECTORS CHRISTOS SHERYL BARBARA POLITIS WUDUNN ZIPPERIAN Chair, Corporate Social Chair, Tech Strategy Chair, Audit & Risk Responsibility Committee Committee Management Committees : am : BRADLY THOMAS HAROLD SPOOR ZERNICK WINNER Chair, Nominating Chief Executive Officer Director Emeritus C
Slide 6: Executive Officers
EXECUTIVE Officers THOMAS ZERNICK ROBIN OLIVER SCOTT McKIM BRANDI JABER SUSAN KHAYAT NICKOLAS SMITH THOMAS QUALE ~
Slide 7: Financial Performance
A FINANCIAL PERFORMANCE A SCOTT MCKIM Chief Financial Officer BAYFIRST
Slide 8: Forward-looking statements
Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or similar terminology. Any forward-looking statements presented herein are made onl
Slide 9: Secretary's Report
SECRETARY’S REPORT The Official Meeting of Shareholders was conducted at 5:00 PM in the Pinellas Room of the St. Petersburg Marriott Clearwater. As Corporate Secretary I can report that at least 2,407,651 shares, representing at least 58% of the shares outstanding of the record date, were present in
Slide 10: Voting Results
At least 2,206,302 shares outstanding as of the record date, or 91% of the votes cast, voted in favor of all nominees. RESULTS All nominees have been elected. At least 2,367,151 shares outstanding as of the record date, or 98% of the votes cast, voted in favor of all nominees. The proposal has been
Slide 11: A Look Back
A LOOK BACKAT_- BAYFIRST
Slide 12: 2013 to Q1 2025 timeline
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Q1 2025
Slide 13: 2020 to Q1 2025
2020 2021 2022 2023 2024 Q1 2025
Slide 14: 2020 to Q1 2025
2020 2021 2022 2023 2024 Q1 2025
Slide 15: 2024 Net Income & EPS by Quarter
2024 Net Income & EPS by Quarter (in OOO’s except per common share, excludes gain on sale in Q4 of $8.6mm or $1.91/shr) Z $1,137 1200 $0.18/shr er 084 ies nee $824 oe 12/shr $0.11/shr $800 $600 $400 $200 $0 ° BAYFIRST
Slide 16: 2024 Return on Average Assets
2024 Return on Average Assets Annualized (excludes gain on sale in Q4 of $8.6mm, +2.73% to ROA) yy 0.37% 0.40% 0.35% 0.34% 0.30% 0.29% 0.29% 0.25% 0.20% 0.15% 0.10% 0.05% 0.00% Ql Q2 Q3 Q4 BAYFIRST
Slide 17: 2024 Return on Common Equity
2024 Return on Common Equity Annualized (excludes gain on sale in Q4 of $8.6mm, +39.53% to ROE) yy 6.00% 9 5.00% 4.93% 4.00% 3.48% 3.00% 2.26% 2.06% 6% 2.00% 1.00% 0.00% Qi Q2 Q@3 a4 * BAYFIRST
Slide 18: 2024 Tangible Book Value
2024 Tangible Book Value Per Common Share yy $23.50 $23.00 $22.50 $22.00 $21.50 $20.86 $21.00 6.50 $20.45 $20.54 $20.00 $19.50 $19.00 Qi Q2 Q3 $22.95 a4 BAYFIRST
Slide 19: 2024 Efficiency Ratio
2024 Efficiency Ratio (Excludes Q4 Gain on Sale: Pretax was $11.6mm) yy 80.00% 77.89% 77.80% 78.00% 76.06% 76.00% 74.00% 72.00% FE35% 70.00% LJ 68.00% Qi Q2 Q3 Q4 ° BAYFIRST
Slide 20: Asset quality: ACL and nonperforming loans
0.88% 0.87% 1.15% 1.35% ACL to Loans HFI* Nonperforming Loans/Total Loans HFI* *Excludes Government Guaranteed Loans HFI
Slide 21: 2024 Net Interest Margin
2024 Net Interest Margin Remaining Asset Sensitive yy 3.70% 3.66% 3.60% 3.50% 3.42% 3.43% 3.40% 3.34% 3.30% 3.20% 3.10% Qi Q2 Q3 Q4 BAYFIRST
Slide 22: Comparative Peer NIM (FTE)
Comparative Peer NIM (FTE) Trend Analysis (December 31, 2024) 5.60 460 410 3.60 2.60 1.60 ee ee i ee eT eT} = + Flagship Bank — One Florida Bank Bank of Central Florida = = First Bank — Bank of Tampa Onus giiier = a a ee BAYFIRST imate Fist Bank —First National Bank of Pasco BayFirst National Bank C
Slide 23: Comparative Peer COF
Comparative Peer COF Trend Analysis (December 31, 2024) Oxnvus Yj" ~=BAYFIRST
Slide 24: A Quick Look Into
A QUICK LOOK INTO BAYFIRST
Slide 25: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS (IN 000’S) Total Assets: $1,291,957 Net Income: -$335 Net Charge-Offs & $4,500 FV Losses: Net Interest Margin: 3.77% BAYFIRST
Slide 26: Current Events
CURRENT EVENTS BAYFIRST
Slide 27: Interest Rate Forecast
INTEREST eo, «6rd RATE a, FORECAST scitze 4 Es BAYFIRST
Slide 28: BAFN Share Price +19.9%
BAFN Share Price] +19.9% BAFN dls 8 eo(omrn) OPE BAYFIRST FINANCIAL CORP + Compare. Charts reflect prices as of market close May 13, 2024 : ( BAYFIRST
Slide 29: KRE Index +16.4%
KRE Index| +16.4% OPEN: 68.16 HIGH: 63.54 ol: 82M Lose: 62,86 ow: 62585 DATE 01/23/2025 Charts reflect prices as of market close May 13, 2024 : ( BAYFIRST
Slide 30: QABA Index +15.7%
QABA Index| +15.7% QABA 0," FIRST TR NASDAQ ABA CMNTY BK | + compare - + > Plots — Lada. laa) atl atl, | 7 BAYFIRST
Slide 31: 2024: The Year in Review
2024: THE YEAR IN REVIEW ROBIN OLIVER President & Chief Operating Officer BAYFIRST
Slide 32: 2024 Challenges
2024 CHALLENGES High interest rates and inflationary pressure led to increased credit losses Larger commercial loan demand was down due to higher rates Deposit competition remained fierce putting pressure on maintaining higher rates Competition from big banks and non- banks continued to heat up Hele
Slide 33: 2024 Successes
vw v 2024 SUCCESSES ¢ South Trail banking center opened in Q1 * Interest rate drops and discipline helped with deposit costs in latter part of 2024 ¢ Healthcare banking focus launched * 1,207 minority owned businesses supported through our program ($236MM) ¢« Express modifications helped hundreds of
Slide 34: Conventional Commercial
CONVENTIONAL COMMERCIAL * $68 million in production ¢ $38 million or 21% growth in balances YoY * Grew commercial lending team from 5 to 8 team members ¢ New Healthcare focus taking hold
Slide 35: Consumer & Residential Lending
CONSUMER & RESIDENTIAL LENDING of HeLoan/HELOC production of other consumer loan production of residential production n or 40% in loan growth YoY
Slide 36: SBA & USDA Lending
SBA & USDA LENDING * $438 million of total SBA & USDA production * $300 million in Bolt loan production (SBA 7a product of $150 thousand or less) * $116 million of other traditional SBA production * $22 million of USDA production * Continued focus on improving credit quality and collection activitie
Slide 37: Banking Centers
BANKING CENTERS ¢ Net new accounts: * 16% growth in net new checking accounts * 16% growth in net new savings/money market accounts $58 million or 6% growth in deposit balances YoY (excluding brokered deposits) Focus on building true relationships and increasing business banking
Slide 38: Operational Updates
OPERATIONAL UPDATES Lock box services are now live ACH fraud tool implemented, zero ACH fraud losses in Q1 2025 New treasury platform for more complex businesses will be available soon Association banking product set rolled out. First few HOA’s already onboarded! Business and personal credit card pa
Slide 39: 2024 Recap Video Spotlight
. Zz “a ——— “e fren. FIRST isi “ & 2024 RECAP VIDEO SPOTLIGHT BAYFIRST
Slide 40: 2025: Strategic Discussion
2025: STRATEGIC DISCUSSION THOMAS ZERNICK Chief Executive Officer BAYFIRST
Slide 41: Acquire or Be Acquired
ACQUIRE OR BE ACQUIRED Tom Michaud, Presented January 2025 & KEEFE, BRUYETTE & WOODS: FIRST
Slide 42: The State of Banking
THE STATE OF BANKING Banks are Turning the Corner The Economy | Fundamentals | Regulation |Stock Prices Debt and Equity Capital Markets for Banks Have Reopened Positive Investor Response Consolidation has Restarted and the Endgame is Emerging Capital One and Discover Kicked Things Off in February 20
Slide 43: The State of Banking (as of January 2025)
THE STATE OF BANKING (as of January 2025 The KBW Economic Outlook... No Landing? Real GDP Growth Unemployment Rate me Se Ban 2000 212223 2ME25E26E 2m 2 oR ee ee 23 28E25E26E Fed Funds Rate (Upper Bound) 10-Year Treasury 58 4.50% 4.50% 4.00% [ 3.50% 222326. ‘mE 26E 20 Bl ce aver ves =< ~ a BAYFIRST
Slide 44: The Banking Barbell
202 5 Top 25 Banks byTotalAssets Mid-Sized Banks © 1s $10 Billion in Total Assets ([sotBanks | [% of Deposits) [ % of Assets Hi % of Banks ) [% of Deposits] [ % of Assets ji (%ofBanks | (HotDenosits} (SotAssets | __25Banks (__=130 Banks) H i s Tn | >» Ae 4 > Today: ! 3% 19% cy ae Es 15% 11% The Bank
Slide 45: The State of Banking: 2025 Outlook
THE STATE OF BANKING In Summary, The 2025 Outlook Positive Bank Fundamental Outlook Financial Stocks Have More to Go 2 ] 3 ] Consolidation is Likely to Accelerate Expect Accelerating Pace of Change Macro Risks Remain ea KEEFE, BRUYETTE & WOODS A tifel Company BAYFIRST
Slide 46: Our Mission
OUR MISSION BayFirst Financial strives to be the first choice for individuals, families, and small businesses to enhance their financial well-being and _ foster growth. By seamlessly integrating technology with an amazing human touch, we are redefining the banking experience for the communities we s
Slide 47: Our Values
OUR VALUES AT BAYFIRST WE CARE © 0O @ @ CURIOSITY ADAPTABILITY RESILIENCE EXCELLENCE fuels us shapes us strengthens us. defines us. | oK 2 4 a BAYFIRST
Slide 48: Engaged with Our Communities
ENGAGED WITH OUR SCOREY COMMUNITIES oo SBA sss QQHPWA GreenHousec: MMM reasownesis cs -_ S 2 AIRE RO NES 4 mel sf acs |) Suy PSMEBE Fir Habitat ee for Humanity SPFC) game) — r (catalyst ya | a ion girls GREAT SBDC _ .« Acamy Po | §PRC. EXPL RA i:
Slide 49: Core Operating Principles
CORE OPERATING PRINCIPLES These principles empower every team member to contribute meaningfully, knowing their voice matters and their actions have impact. Vv aq) CES ae ©) CREATING BUREACRACY ACT LIKE ADULTS AND, SAY WHAT YOU MEAN ACT WITH SPEED, SIMPLICITY, CHANGE AND ADAPT DO THE RIGHT THING. WIT
Slide 50: Asset Quality
Asset Quality Performance: Charge-Offs Below $13 Million
Slide 51: Deposits
Deposits New Business Opene 1,001 Accounts $100 Millior (Total Non-CD Dep’ Deposits Treasury Management: 25% Growth (376 to 470 Products)
Slide 52: Conventional Business Loans
Conventional Business Loans: $99 Million
Slide 53: Personnel
Personnel Having the right teammates Managing the ones we have
Slide 54: How Do We Propel BayFirst to a High-Performing Bank?
HOW DO WE PROPEL BAYFIRST TOA HIGH-PERFORMING BANK? SBA ; 2 it $336 Millio e: $176 Millio Asset Quality FP°F Performance: freas Charge-Offs ord Below $13 Million }470 ss YS SY - Y Be es ee BR an, i, SS Se,
Slide 55: Operating Efficiency
Operating Efficiency Efficiency Ratio: 78% to 69.6% ‘8% Drop)
Slide 56: Consumer
Consumer: $164 Million
Slide 57: Residential
Residential: $30 Million
Slide 58: SBA
SBA Bolt: $336 Million Core: $176 Million TOTAL: $512 Million
Slide 59: 2025 Strategic Initiatives
2025 STRATEGIC INITIATIVES S®AR Strive for operational excellence. SysAid WorkFlow Automated Consumer Loan Funding Global Wave Tickler System PowerLOS Enhancements, SBA Core and Conventional Lending Optimize our technology platform to be more data driven. Operational Data Store & PowerBl Sales Hub F
Slide 60: Focused Vision. Unlimited Possibilities.
FOCUSED VISION. UNLIMITED POSSIBILITIES. % we
Slide 61: Thank you
Each step we take is grounded in your confidence. Thank you for being an essential part of the BayFirst journey— here for what’s next and beyond.
Slide 62: Chairman's Remarks
CHAIRMAN’S REMARKS ANTHONY SARAVANOS Chairman of the Board BAYFIRST
Slide 63: Board Experience
BOARD EXPERIENCE * Music and Entertainment * Law * Medicine *« Bank CEO experience (2 Members) * Bank CFO experience * Credit & Debt * Insurance « Real Estate *« Technology BAYFIRST
Slide 64: Tampa Bay Real Estate Demographics
TAMPA BAY REAL ESTATE DEMOGRAPHICS ° £3 ABOMSAadn Office BAYFIRST
Slide 65: Tampa Bay Real Estate Demographics
TAMPA BAY REAL ESTATE DEMOGRAPHICS In 2025, Florida's economy is projected to moderate its growth but remain stronger than the national average. KEY INDICATORS SHOW: « slowing of previous rapid growth, with the Gross State Product (GSP) reaching $1.4 trillion. « Employment growth is expected to mode
Slide 66: Community Bank Franchise Value
COMMUNITY BANK FRANCHISE VALUE poy ¢ High Touch ¢ Scarcity Value BAYFIRST
Slide 67: Community Bank
COMMUNITY BANK CASSIDY JENNIFER [ GIVENS GONZALEZ YOMARALIS > TANYA NIEVES CUEVAS
Slide 68: Annual Meeting of Shareholders
ANNUAL MEETING Ors OF SHAREHOLDERS BAYFIRST
Slide 69: BAYFIRST
BAYFIRST
Slide 70: That Concludes Our Meeting
> THAT CONCLUDES OUR MEETING SEE YOU NEXT YEAR!
Slide 71: Non-GAAP Reconciliation
Non-GAAP Reconciliation Adjusted Income and Diluted Earnings Per Common Share Net income, as reported Less: Gain on sale of premises and equipment Income tax expense (1) Net income, excluding gain on sale of premises and equipment Diluted earnings per common share, as reported Effect of gain on sale