Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Q4 2022 Earnings Presentation
24 slides from Bayfirst Financial's earnings presentation, Jan 26, 2023
Slide 1: 2022 Year-end and Fourth Quarter Results (Unaudited)
BayFirst Financial Corp. (NASDAQ:BAFN) 2022 – Year-end and Fourth 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 Million total assets (2)$939 SBA ORIGINATION SBA 7(a) ORIGINATOR IN THE NATION (3) #8 GROWTH ASSET GROWTH OVER 5 YEARS157% 1. Deposit market share ranking of banks
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. – Products and Platform
5 • Advanced technology platform to support innovative products and services while improving efficiencies • PowerLOS for SBA and commercial lending • Working with fintechs to offer new and innovative services through Mulesoft API platform • 8 banking centers in Tampa Bay, expected to grow to 12 bank
Slide 6: Attractive Loan and Deposit Composition
6 ATTRACTIVE LOAN AND DEPOSIT COMPOSITION Composition of Loans Held for Investment as of December 31, 2022 Deposit Portfolio Composition as of December 31, 2022 32.4% 19.0%8.4%1.9% 33.2% 5.1% C&I Residential HELOC C&D Secured by Other Real Estate Consumer & Other 11.7% 25.5% 45.7% 17.1% Noninterest
Slide 7: Key Strategic Initiatives for 2023 and Beyond
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Slide 8: Q4 2022 Three Months Income Statement
8 Q4 2022 For the Three Months Ended ($000s) 12/31/2022 9/30/2022 Increase/ (Decrease) 12/31/2021 Increase/ (Decrease) Interest income $ 12,520 $ 11,284 $ 1,236 $ 7,161 $ 5,359 Interest expense 3,946 2,114 1,832 1,416 2,530 Net interest income 8,574 9,170 (596) 5,745 2,829 Provision for loan losses
Slide 9: Q4 2022 Year Ended December 31 Income Statement
9 Q4 2022 Year Ended December 31, ($000s) 2022 2021 Increase/ (Decrease) Interest income $ 38,566 $ 43,826 $ (5,260) Interest expense 8,566 7,300 1,266 Net interest income 30,000 36,526 (6,526) Provision for loan losses (700) (3,500) 2,800 Noninterest income 31,550 21,973 9,577 Noninterest expense 5
Slide 10: Q4 2022 Key Ratios and Metrics
10 Q4 2022 As of and For the Three Months Ended As of and For the Year Ended 12/31/2022 9/30/2022 12/31/2021 12/31/2022 12/31/2021 Return on average assets 0.57 % (0.60) % 1.22 % (0.04) % 1.90 % Return on average common equity 5.56 % (7.76) % 12.54 % (1.43) % 32.37 % Basic earnings (loss) from conti
Slide 11: Record Organic Growth
11 $43 $56 $85 $82 2019Y 2020Y 2021Y 2022Y $20 $40 $60 $80 $100 $120 Strong balance sheet on track for continued organic growth RECORD ORGANIC GROWTH Total Assets excluding PPP Loans ($M) Total Net Loans HFI excluding PPP loans ($M) Total Deposits ($M) Tangible Common Equity ($M) Capitalizing on $15
Slide 12: Positioned to Return to Strong Profitability
12 POSITIONED TO RETURN TO STRONG PROFITABILITY ROAA (%) ROATCE (%) Net Interest Margin (%) Non-Interest Income / Total Revenue from Continuing Operations Volatility in 2022 due to discontinued operations mortgage; company repositioned for future (1) The NIM was depressed due to impact of low yield
Slide 13: Asset Quality
13 ASSET QUALITY Strong reserve well-positioned to withstand volatility in economic conditions 1.30% 1.44% 1.00% 0.61% 2019Y 2020Y 2021Y 2022Y 0.0% 0.5% 1.0% 1.5% 2.0% Net charge-offs/average loans held for investment excluding PPP ALLL/Total loans held for investment at amortized cost, excluding PP
Slide 14: Shareholder Value Creation
14 SHAREHOLDER VALUE CREATION Impressive Tangible Book Value Per Share growth in recent years $11.40 $11.49 $12.77 $16.02 $21.75 $20.35 2017Y 2018Y 2019Y 2020Y 2021Y 2022Y $0 $3 $5 $8 $10 $13 $15 $18 $20 $23 $25
Slide 15: Community Banking Performance
15 COMMUNITY BANKING PERFORMANCE Q4’2022 Loan Production Summary: ▪ Loan production during the quarter was $48.1 million(1) ▪ Loans held for investment increased by a net $50.8 million QoQ Q4’2022 Deposit Summary: ▪ Q4’2022 deposit balance grew $73.4 million YoY ▪ Deposit portfolio increased by 3.8%
Slide 16: CreditBench (SBA Lending)
16 $316 $101 $169 $386 1,287 320 374 1,364 2019 2020 2021 2022 $0 $50 $100 $150 $200 $250 $300 $350 $400 0 250 500 750 1,000 1,250 1,500 • Pre- Pandemic: ~80% of loan production sourced through third-party partners • Post- Pandemic: over ~80% of production in-house through CreditBench • Ranked #8 in
Slide 17: Key Investment Points
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Slide 18: Appendix
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Slide 19: Investment Securities AFS
19 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of December 31, 2022 (fair market value, in thousands) (1)Investment Securities Portfolio Details • Other Comprehensive Loss of $3.7 million reduced Tangible Book Value by $0.92 QoQ as of December 31, 2022 ◦ We intend and have the abili
Slide 20: Ownership Overview
20 OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,037,895 Source: S&P Capital IQ Pro Vanguard Group Inc., 3.77% First Manhattan Co., 3.61% Banc Funds Co. LLC, 3.31% All Other Institutions, 8.45% Mark S.
Slide 21: Attractive Florida Markets
21 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 22: Deposit Market Share
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Slide 23: Experienced Leadership Team
23 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 24: Experienced Leadership Team
24 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