Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Q4 2021 Earnings Presentation
28 slides from Bayfirst Financial's earnings presentation, Mar 4, 2022
Slide 1: BayFirst Financial Corp. 2021 Fourth Quarter Results (Unaudited)
BayFirst Financial Corp. (NASDAQ:BAFN) 2021 – Fourth Quarter Results (Unaudited)
Slide 2: Cautionary Statement Concerning Forward-Looking Information
Cautionary Statement Concerning Forward-Looking Information 2BAFN Q4 2021 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
Slide 3: About BayFirst Financial Corp.
About BayFirst Financial Corp. 3BAFN Q4 2021 BayFirst Financial Corp. (“BayFirst” or the “Company”) is the holding company for First Home Bank (“First Home” or the “Bank”). Founded in 1999 (the Bank) and 2000 (the Company). Current Banking Center Pending Banking Center BayFirst is a high-performin
Slide 4: Investor Snapshot
Investor Snapshot 4BAFN Q4 2021 Ticker Symbol: BAFN Recent Price*: $21.70 Shares Outstanding*: 3,981,117 Market Cap*: $86.6 million P/LTM EPS (x): 3.78 Price/Tangible Book (x): 0.99 Total Assets: $917.1 million Dividend: $0.08/share, quarterly *Source: S&P Global as of 3/2/2022
Slide 5: Selected Financial Data
BAFN Q4 2021 5 • Dollars in thousands, except per share data SELECTED FINANCIAL DATA llars in Thousands, Except Per Share Data
Slide 6: An Innovative Community Bank
An Innovative Community Bank 6 Management Depth, Diverse Board Strategically Driven, Progressive Organization Innovative, Dynamic and Highly Profitable Community Bank Attractive Market with Scarcity of Community Banks Scalable Advanced Technology Platform, Diversified Revenue Model BAFN Q4 2021
Slide 7: A Differentiated Business Model
A Differentiated Business Model 7 CREDITBENCH • First Home’s SBA lending platform • Top 15* nationwide Preferred Lender • #1 SBA lender in the five county Tampa Bay area at SBA’s FY ended 9/30/21 • FlashCap 7(a) small loan program and traditional Core program • FlashCap loan generation from organic
Slide 8: Experienced Leadership Team
Experienced Leadership Team 8BAFN Q4 2021 Executive & Title Experience Anthony N. Leo Chief Executive Officer & Director of BayFirst and the Bank Joined BayFirst in Q4 2013; Prior to joining BayFirst, provided management consulting and regulatory advisory services to community banks throughout the
Slide 9: Experienced Leadership Team
Experienced Leadership Team 9BAFN Q4 2021 Executive & Title Experience Lewis Benner EVP, Chief Credit Officer Joined BayFirst in Q3 2018; Prior to joining BayFirst, President and CEO of 1st Manatee Bank, EVP and Chief Lending Officer of Sabal Palm Bank, Community Bank President of Gold Bank and Pr
Slide 10: Attractive Florida Markets
Attractive Florida Markets 10 MEANINGFUL ECONOMIC TAILWINDS #2 state in the U.S.A. for net domestic migration* ~$1.2T economy, with 3.8% GDP growth in Q3’21 Attractive tax policy 2.5million small businesses, more than any other Southeastern state 3rd most populous state Total Deposits in Pinellas, H
Slide 11: Balance Sheet
Balance Sheet 11BAFN Q4 2021 $559 $607 $632 $675 $722 $1,207 $1,367 $874 $640 $570 $1,545 $1,717 $1,198 $944 $917 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,600 $1,800 $2,000 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 Deposits Net Loans Held for Investment Assets Significant decreases in asset
Slide 12: Balance Sheet Strength
Balance Sheet Strength 12BAFN Q4 2021 11.75% 10.84% 12.06% 12.64% 12.22% 0.22% 0.19% 0.30% 0.40% 0.43% 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 Tier 1 Leverage (First Home Bank) Non Performing Assets, Excluding Govt. Gtd. Loans, to Total Assets
Slide 13: Net Interest Margin
Net Interest Margin 13BAFN Q4 2021 2.84% 3.13% 3.21% 3.46% 3.04% 3.07% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Net Interest Margin (annualized)
Slide 14: Book Value Per Common Share
Book Value Per Common Share 14BAFN Q4 2021 $16.04 $17.95 $21.16 $21.32 $21.77 $16.02 $17.93 $21.14 $21.30 $21.75 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 Book Value Per Common Share Tangible Book Value Per Common Share
Slide 15: Loans Held for Investment
Loans Held for Investment 15BAFN Q4 2021 $1,247,840 $1,207,160 $1,366,516 $874,397 $639,678 $570,496 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 09/30/20 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 Loans Held for Investment (net) Composition of Loans Held for
Slide 16: Deposits
Deposits 16BAFN Q4 2021 Total Deposits (in thousands) $558,785 $607,265 $632,322 $675,034 $721,685 $500,000 $550,000 $600,000 $650,000 $700,000 $750,000 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 Total Deposits (in thousands) Deposit Portfolio Composition as of December 31, 2021 11.3% 22.7% 58.7%
Slide 17: Asset Quality
Asset Quality 17BAFN Q4 2021 0.22% 0.19% 0.30% 0.40% 0.43% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 Nonperforming Assets*/Total Assets Nonperforming Assets/Tier 1 Capital + ALLL (Bank) ALLL/Gross Loans Held for Investment (HFI) ALLL/Gross Loans HFI Excl Govt G
Slide 18: Earnings
Earnings 18BAFN Q4 2021 $5,606 $7,511 $13,016 $1,280 $2,811 $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Net Income Record production in Residential Mortgage and strong PPP revenue, offset by large provisions for loan loss in Q4’20 Record earnings au
Slide 19: Earnings Performance Ratios
Earnings Performance Ratios 19BAFN Q4 2021 39.97% 49.56% 74.61% 5.12% 12.54% 0% 20% 40% 60% 80% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Return on Average Common Equity Return on Average Common Equity (annualized) 1.48% 1.84% 3.38% 0.47% 1.22% 0% 1% 2% 3% 4% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Re
Slide 20: CreditBench
CreditBench SBA 7(a) loan production was $169.5 million in 2021 with $60.8 million originated in Q4’21 Strong pipeline in both Core and FlashCap 2021 operational focus on the PPP loan forgiveness process for PPP loans originated in 2020 Similar AI technology implemented to process PPP loan a
Slide 21: Residential Mortgage Division
RESIDENTIAL MORTGAGE DIVISION Residential mortgage production of $477.5 million in Q4’21, down 5.8% from $506.7 million originated in the prior quarter Mortgage rate increases are leading to a pull-back in originations 1,520 units of production in Q4’21 as compared to 1,620 units in the previo
Slide 22: Residential Mortgage Division
RESIDENTIAL MORTGAGE DIVISION 22BAFN Q4 2021 Total Production ($ in Thousands) $641,077 $715,856 $522,101 $506,673 $477,476 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021
Slide 23: Community Banking
Community Banking Q4’21 and FY2021 Loan Production Summary: Total Community Bank Division loan production for Q4’21 was 164 units for $24.25 million, an increase of 26.2% and 4.8% over Q3’21 production of 130 units and $23.13 million, respectively Total Community Bank Division loan production
Slide 24: Key Company Highlights
Key Company Highlights 24 Progressive institution in its products & services, technology, design and social responsibility located in an attractive market with historically strong economic and demographic trends Experienced management team and dedicated local board with clear and actionable growth s
Slide 25: 2022 Strategic Initiatives
2022 Strategic Initiatives Fundamental Goals: Expand the Community Banking Division and core deposit base, while utilizing SBA and residential mortgage as lead products Maintain capital levels commensurate with risk profile and projected growth Promote BayFirst as a premier workplace Leverag
Slide 26: Financial Statements
Financial Statements
Slide 27: Consolidated Statements of Income
BAFN Q4 2021 27 BayFirst Financial Corp. and Subsidiary Consolidated Statements of Income Unaudited (Dollars in Thousands, Except Per Share Data)
Slide 28: Consolidated Statements of Financial Position
BAFN Q4 2021 28 BayFirst Financial Corp. and Subsidiary Consolidated Statements of Financial Position Unaudited (Dollars in Thousands)