Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Q1 2023 Earnings Presentation
25 slides from Bayfirst Financial's earnings presentation, Apr 27, 2023
Slide 1: BayFirst Financial Corp. 2023 First Quarter Results (Unaudited)
BayFirst Financial Corp. (NASDAQ:BAFN) 2023 – 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.: Tampa Bay's Premier Banking Franchise
3 ABOUT BAYFIRST FINANCIAL CORP. TAMPA BAY’S PREMIER BANKING FRANCHISE in the Tampa Bay – St. Petersburg MSA(1) HOW WE RANK 2 ASSET SIZE Billion total assets (2)$1.07 SBA ORIGINATION SBA 7(a) ORIGINATOR IN THE NATION (3) #6 GROWTH ASSET GROWTH OVER 5 YEARS193% 1. Deposit market share ranking of bank
Slide 4: Expanding Banking Center Franchise
44 ABOUT BAYFIRST FINANCIAL CORP. CURRENT BANKING CENTER LOCATION FUTURE BANKING CENTER LOCATION EXPANDING BANKING CENTER FRANCHISE
Slide 5: About BayFirst Financial Corp.
5 • 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 • 9 banking centers in Tampa Bay,
Slide 6: Attractive Loan Composition
6 ATTRACTIVE LOAN COMPOSITION Composition of Loans Held for Investment as of March 31, 2023 33.9% 18.4%8.9% 1.4% 33.3% 4.1% C&I Residential HELOC C&D Secured by Other Real Estate Consumer & Other Loan Highlights • Total loan production of $168 million during the quarter • Loans held for investment g
Slide 7: Solid Deposit Composition
7 SOLID DEPOSIT COMPOSITION Deposit Portfolio Composition as of March 31, 2023 • Transaction account balances increased $77 million or 26% during the quarter • Approximately 82% of deposits are insured • Minimal use of short-term brokered deposits ($30 million as of March 31, 2023) 11.4% 28.6% 39.0%
Slide 8: Key Strategic Initiatives for 2023 and Beyond
Divider + Image Click image icon to insert rectangular image. No content below the lineNo content below the line Only use S&P Global Red for key text high- lights, not shapes or charts. It’s available in the custom color palette. Footer : Never change the footer text on individual slides. Change, tu
Slide 9: Q1 2023 Income Statement
9 Q1 2023 For the Three Months Ended ($000s) 3/31/2023 12/31/2022 Increase/ (Decrease) 3/31/2022 Increase/ (Decrease) Interest income $ 14,251 $ 12,520 $ 1,731 $ 7,003 $ 7,248 Interest expense 5,198 3,946 1,252 1,334 3,864 Net interest income 9,053 8,574 479 5,669 3,384 Provision for credit losses 1
Slide 10: Q1 2023 Key Ratios
10 Q1 2023 As of and For the Three Months Ended 3/31/2023 12/31/2022 3/31/2022 Return on average assets 0.30 % 0.57 % 0.01 % Return on average common equity 2.69 % 5.56 % (0.93) % Basic earnings (loss) from continuing operations per common share $ 0.16 $ 0.47 $ (0.08) Diluted earnings (loss) from co
Slide 11: Strong balance sheet on track for continued organic growth
11 $56 $85 $82 $81 2020Y 2021Y 2022Y 2023Q1 $20 $40 $60 $80 $100 $120 Strong balance sheet on track for continued organic growth ORGANIC GROWTH Total Assets excluding PPP Loans ($M) Total Net Loans HFI excluding PPP loans ($M) Total Deposits ($M) Tangible Common Equity ($M) Capitalizing on $15.0M af
Slide 12: Liquidity Sources
Divider + Image Click image icon to insert rectangular image. No content below the lineNo content below the line Only use S&P Global Red for key text high- lights, not shapes or charts. It’s available in the custom color palette. Footer : Never change the footer text on individual slides. Change, tu
Slide 13: Positioned to Return to Strong Profitability
13 POSITIONED TO RETURN TO STRONG PROFITABILITY ROAA (%) ROATCE (%) Net Interest Margin (%) Noninterest Income / Total Revenue from Continuing Operations Volatility in 2022 due to discontinued mortgage operations; 2023 was impacted by the cancellation of the sale of government guaranteed loans to Si
Slide 14: Asset Quality
14 ASSET QUALITY Strong reserve well-positioned to withstand volatility in economic conditions 1.44% 1.00% 0.61% 1.01% 2020Y 2021Y 2022Y 2023Q1 0.0% 0.5% 1.0% 1.5% 2.0% Net charge-offs/average loans held for investment excluding PPP ACL/Total loans held for investment at amortized cost, excluding PP
Slide 15: Shareholder Value Creation
15 SHAREHOLDER VALUE CREATION $11.49 $12.77 $16.02 $21.75 $20.35 $19.70 Tangible Book Value 2018Y 2019Y 2020Y 2021Y 2022Y 2023Q1 $0 $5 $10 $15 $20 $25 CECL adoption decreased equity by $2.5M in ‘23 Record earnings fro m residential m ortgage and PPP lending in ‘20 and ‘21 Discontinuation of nationwi
Slide 16: Community Banking Performance Q1 2023
16 COMMUNITY BANKING PERFORMANCE Q1 2023 Loan Production Summary: ▪ Loan production during the quarter was $47.4 million(1) ▪ Loans held for investment, including government guaranteed loans, increased by a net $65.0 million QoQ Q1 2023 Deposit Summary: ▪ Deposit balances grew $137.8 million QoQ ▪ D
Slide 17: Government Guaranteed Lending
17 $101 $169 $386 $460 320 374 1,364 1,845 2020Y 2021Y 2022Y LTM $0 $100 $200 $300 $400 $500 250 500 750 1,000 1,250 1,500 1,750 2,000 • Ranked #6 in total SBA dollars and #3 in units for the quarter ending March 31, 2023 • Strategic initiative to expand USDA business and industry lending program. T
Slide 18: Key Investment Points
Divider + Image Click image icon to insert rectangular image. No content below the lineNo content below the line Only use S&P Global Red for key text high- lights, not shapes or charts. It’s available in the custom color palette. Footer : Never change the footer text on individual slides. Change, tu
Slide 19: Appendix
Divider + Image Click image icon to insert rectangular image. No content below the lineNo content below the line Only use S&P Global Red for key text high- lights, not shapes or charts. It’s available in the custom color palette. Footer : Never change the footer text on individual slides. Change, tu
Slide 20: Investment Securities
20 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of March 31, 2023 (fair market value, in thousands) (1)Investment Securities Portfolio Details • Other Comprehensive Loss of $3.2 million reduced Tangible Book Value by $0.78 as of March 31, 2023 ◦ We intend and have the ability to hold
Slide 21: Ownership Overview
21 OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,098,805 Source: S&P Capital IQ Pro Vanguard Group Inc., 3.71% First Manhattan Co., 3.56% Banc Funds Co. LLC, 3.26% All Other Institutions, 10.04% Mark S.
Slide 22: Attractive Florida Markets
22 ATTRACTIVE FLORIDA MARKETS MEANINGFUL ECONOMIC TAILWINDS #2 state in the U.S.A. for net domestic migration and top 3 growth state* ~$1.4T economy, with 3.8% GDP growth in Q3’22 Attractive tax policy 3.0 million small businesses, more than any other Southeastern state 3rd most populous state Total
Slide 23: Deposit Market Share
Divider + Image Click image icon to insert rectangular image. No content below the lineNo content below the line Only use S&P Global Red for key text high- lights, not shapes or charts. It’s available in the custom color palette. Footer : Never change the footer text on individual slides. Change, tu
Slide 24: Experienced Leadership Team
24 EXPERIENCED LEADERSHIP TEAM • Joined BayFirst in Q4 2013; Prior to joining BayFirst, provided management consulting and regulatory advisory services to community banks throughout the state of Florida and served as the interim CEO of three troubled banks between 2009 and 2013 • Managing Director a
Slide 25: Experienced Leadership Team
25 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