Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Q1 2022 Earnings Presentation
30 slides from Bayfirst Financial's earnings presentation, May 19, 2022
Slide 1: BayFirst Financial Corp. 2022 First Quarter Results (Unaudited)
BayFirst Financial Corp. (NASDAQ:BAFN) 2022 – First Quarter Results (Unaudited)
Slide 2: Cautionary Statement Concerning Forward-Looking Information
Cautionary Statement Concerning Forward-Looking Information 2BAFN Q1 2022 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 Q1 2022 BayFirst Financial Corp. (“BayFirst” or the “Company”) is the holding company for BayFirst National Bank (f/k/a “First Home Bank” ). Founded in 1999 (the Bank) and 2000 (the Company). Current Banking Center Pending Banking Center BayFirst is a high-perf
Slide 4: Investor Snapshot
Investor Snapshot 4BAFN Q1 2022 Ticker Symbol: BAFN Recent Price*: $16.38 Shares Outstanding*: 4,013,173 Market Cap*: $65.7 million P/LTM EPS (x): 4.31 Price/Tangible Book (x): 0.77 Total Assets (3/31/22): $888.5 million Dividend: $0.08/share, quarterly *Source: S&P Global as of 5/17/2022
Slide 5: Selected Financial Data
BAFN Q1 2022 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 Q1 2022
Slide 7: A Differentiated Business Model
A Differentiated Business Model 7 CREDITBENCH • BayFirst’s SBA lending platform • Top 25* 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 sa
Slide 8: Quarter Highlights
Converted Bank subsidiary to national banking charter and changed name to BayFirst National Bank providing better alignment with national lending platforms Continued investments in technology infrastructure advancing BayFirst as a tech-focused bank: POWER, BayFirst’s proprietary loan originati
Slide 9: Experienced Leadership Team
Experienced Leadership Team 9BAFN Q1 2022 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 10: Experienced Leadership Team
Experienced Leadership Team 10BAFN Q1 2022 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 P
Slide 11: Attractive Florida Markets
Attractive Florida Markets 11 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 2.5 million small businesses, more than any other Southeastern state 3rd most populous state Total Deposits in Pinellas,
Slide 12: Balance Sheet
Balance Sheet 12BAFN Q1 2022 $559 $607 $632 $675 $722 $770 $1,207 $1,367 $874 $640 $570 $552 $1,545 $1,717 $1,198 $944 $917 $889 $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 3/31/22 Deposits Net Loans Held for Investment Assets Signifi
Slide 13: Balance Sheet Strength
Balance Sheet Strength 13BAFN Q1 2022 11.75% 10.84% 12.06% 12.64% 12.22% 11.75% 0.22% 0.19% 0.30% 0.40% 0.43% 0.30% 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 3/31/22 Tier 1 Leverage (Bank) Non Performing Assets, Excluding Govt. Gtd. Loans, to Tot
Slide 14: Net Interest Margin
Net Interest Margin 14BAFN Q1 2022 3.13% 3.21% 3.46% 3.04% 3.07% 3.25% 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Net Interest Margin (annualized)
Slide 15: Book Value Per Common Share
Book Value Per Common Share 15BAFN Q1 2022 $16.04 $17.95 $21.16 $21.32 $21.77 $21.25 $16.02 $17.93 $21.14 $21.30 $21.75 $21.22 $12.00 $13.00 $14.00 $15.00 $16.00 $17.00 $18.00 $19.00 $20.00 $21.00 $22.00 12/31/20 03/31/21 06/30/21 09/30/21 12/31/21 3/31/22 Book Value Per Common Share Tangible Book V
Slide 16: Loans Held for Investment
Loans Held for Investment 16BAFN Q1 2022 $1,366,516 $874,397 $639,678 $570,496 $551,627 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400,000 $1,600,000 03/31/21 06/30/21 09/30/21 12/31/21 3/31/22 Loans Held for Investment (net) Composition of Loans Held for Investment (gross) as o
Slide 17: Deposits
Deposits 17BAFN Q1 2022 Total Deposits (in thousands) $607,265 $632,322 $675,034 $721,685 $770,129 $500,000 $550,000 $600,000 $650,000 $700,000 $750,000 $800,000 03/31/21 06/30/21 09/30/21 12/31/21 3/31/22 Total Deposits (in thousands) Deposit Portfolio Composition as of March 31, 2022 12.0% 23.5% 6
Slide 18: Asset Quality
Asset Quality 18BAFN Q1 2022 0.19% 0.30% 0.40% 0.43% 0.30% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 03/31/21 06/30/21 09/30/21 12/31/21 3/31/22 Nonperforming Assets*/Total Assets Nonperforming Assets/Tier 1 Capital + ALLL (Bank) ALLL/Gross Loans Held for Investment (HFI) ALLL/Gross Loans HFI Excl Govt Gt
Slide 19: Earnings
Earnings 19BAFN Q1 2022 $5,606 $7,511 $13,016 $1,280 $2,811 $13 $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 1Q 2022 Net Income Record production in Residential Mortgage and strong PPP revenue, offset by large provisions for loan loss in Q4’20 Record
Slide 20: Earnings Performance Ratios
Earnings Performance Ratios 20BAFN Q1 2022 49.56% 74.61% 5.12% 12.54% -0.93% -20% 0% 20% 40% 60% 80% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Return on Average Common Equity Return on Average Common Equity (annualized) 1.84% 3.38% 0.47% 1.22% 0.01% 0% 1% 2% 3% 4% Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 20
Slide 21: Omnichannel Delivery
Omnichannel Delivery Convenient banking centers State-of-the art contact center technology First-in-class mobile banking Digital loan origination 21BAFN Q1 2022 WE MEET CUSTOMERS ON THEIR TERMS
Slide 22: CreditBench
CreditBench Total Q1’22 SBA loan production of $47.33 million, which represents a $11.95 million, or 20.2%, decrease from Q4’21 volume of $59.28 million, but an increase of $31.81 million, or 205.0% over $15.52 million produced in Q1’21. Continued to build the national lending team, which now co
Slide 23: Residential Mortgage Division
RESIDENTIAL MORTGAGE DIVISION Residential mortgage production of $335.56 million in Q1’22, down 29.7% from $477.48 million originated in the prior quarter. Residential mortgage production was impacted by a natural seasonal slowdown and rapid rate increases, which significantly impacted refinance
Slide 24: Residential Mortgage Division Total Production
RESIDENTIAL MORTGAGE DIVISION 24BAFN Q1 2022 Total Production ($ in Thousands) $407,726 $598,385 $641,077 $715,856 $522,101 $506,673 $477,476 $335,560 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 $700,000 $800,000 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022
Slide 25: Community Banking
Community Banking Q1’22 Loan Production Summary: Total Community Bank Division loan production for Q1’22 was 203 units for $63.6 million, an increase of 23.78% and 161.86% over Q4’21 production of 164 units and $24.25 million, respectively. Consumer loan growth of $24.65 million was the highli
Slide 26: Key Company Highlights
Key Company Highlights 26 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 27: 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 28: Financial Statements
Financial Statements
Slide 29: Consolidated Statements of Income
BAFN Q1 2022 29 BayFirst Financial Corp. and Subsidiary Consolidated Statements of Income Unaudited (Dollars in Thousands, Except Per Share Data) BAYFIRST FINANCIAL CORP. CONSOLIDATED STATEMENTS OF INCOME (Unaudited) For the Quarter Ended (Dollars in thousands, except per share data) 3/31/2022 12/31
Slide 30: Consolidated Statements of Financial Position
BAFN Q1 2022 30 BayFirst Financial Corp. and Subsidiary Consolidated Statements of Financial Position Unaudited (Dollars in Thousands) BAYFIRST FINANCIAL CORP. CONSOLIDATED BALANCE SHEETS (Dollars in thousands) 3/31/2022 12/31/2021 3/31/2021 Assets Cash and due from banks $ 3,141 $ 2,869 $ 2,857 Int