Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Q2 2022 Earnings Presentation
37 slides from Bayfirst Financial's earnings presentation, Aug 16, 2022
Slide 1: BayFirst Financial Corp. 2022 Second Quarter Results (Unaudited)
BayFirst Financial Corp. (NASDAQ:BAFN) 2022 – Second Quarter Results (Unaudited)
Slide 2: Cautionary Statement Concerning Forward-Looking Information
Cautionary Statement Concerning Forward-Looking Information BAFN Q2 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 s
Slide 3: About BayFirst Financial Corp.
About BayFirst Financial Corp. 3BAFN Q2 2022 BayFirst Financial Corp. (“BayFirst” or the “Company”) is the holding company for BayFirst National Bank (the “Bank”, f/k/a “First Home Bank”). Founded in 1999 (the Bank) and 2000 (the Company). Current Banking Center Pending Banking Center • BayFirst is
Slide 4: Investor Snapshot
Investor Snapshot 4BAFN Q2 2022 Ticker Symbol: BAFN Recent Price*: $17.60 Common Shares Outstanding*: 4,019,023 Market Cap*: $70.7 million P/LTM EPS (x): 25.38 Price/Tangible Book (x): 0.85 Total Assets (6/30/2022): $921.4 million Common Dividend: $0.08/share, quarterly *Source: S&P Global as of 8/0
Slide 5: Selected Financial Data
5 SELECTED FINANCIAL DATA Dollars in Thousands, Except Per Share Data At or for the three months ended 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 Balance sheet data: Average loans held for investment, excluding PPP loans $ 561,455 $ 520,559 $ 518,697 $ 467,283 $ 445,893 Average total assets
Slide 6: Selected Financial Data: Performance and Capital Ratios
6 SELECTED FINANCIAL DATA Dollars in Thousands BAFN Q2 2022 As of and for the three months ended 6/30/2022 3/31/2022 12/31/2021 9/30/2021 6/30/2021 Performance and capital ratios: Return on average assets (0.13) % 0.01 % 1.22 % 0.47 % 3.38 % Return on average common equity (2.35) % (0.93) % 12.54 %
Slide 7: An Innovative Community Bank
An Innovative Community Bank 7 Management Depth, Diverse Board Strategically Driven, Progressive Organization Innovative, Dynamic and Profitable Community Bank Attractive Market with Scarcity of Community Banks Scalable Advanced Technology Platform, Diversified Revenue Model BAFN Q2 2022
Slide 8: A Differentiated Business Model
A Differentiated Business Model 8 CREDITBENCH • BayFirst’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 • BOLT SBA 7(a) loan product for loans $150,000 or less • FlashCap 7(a) small loan program and traditional
Slide 9: Second Quarter Highlights
• Late in the second quarter, the Company launched BOLT, an SBA 7(a) loan product designed to expeditiously provide working capital loans of $150 thousand or less to businesses throughout the country. In its first month since inception, the Company originated 57 BOLT loans totaling $7.5 million, wit
Slide 10: Experienced Leadership Team
Experienced Leadership Team 10BAFN Q2 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 th
Slide 11: Experienced Leadership Team
Experienced Leadership Team 11BAFN Q2 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 12: Attractive Florida Markets
Attractive Florida Markets 12 MEANINGFUL ECONOMIC TAILWINDS #2 state in the U.S.A. for net domestic migration* ~$1.2T economy, with 3.8% GDP growth in Q3’21 Attractive tax policy 2.5 million small businesses, more than any other Southeastern state 3rd most populous state Total Deposits in Pinellas,
Slide 13: Balance Sheet
Balance Sheet 13BAFN Q2 2022 Fluctuations in loans and assets primarily the result of PPP forgiveness ($ in millions) $632 $675 $722 $770 $765 $895 $656 $584 $562 $642 $1,198 $944 $917 $889 $921 Deposits Net Loans Held for Investment Assets 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 $400 $500 $600
Slide 14: Balance Sheet Strength
Balance Sheet Strength 14BAFN Q2 2022 12.06% 12.64% 12.22% 11.75% 11.37% 0.30% 0.40% 0.43% 0.30% 0.46% Tier 1 Leverage (Bank) Nonperforming Assets, Excluding Govt. Gtd. Loans to Assets 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00%
Slide 15: Net Interest Margin
Net Interest Margin 15BAFN Q2 2022 3.46% 3.04% 3.07% 3.25% 3.73% Net Interest Margin (QTD annualized) 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 2.80% 2.90% 3.00% 3.10% 3.20% 3.30% 3.40% 3.50% 3.60% 3.70% 3.80%
Slide 16: Book Value Per Common Share
Book Value Per Common Share 16BAFN Q2 2022 $21.16 $21.32 $21.77 $21.25 $20.82 $21.14 $21.30 $21.75 $21.22 $20.80 Book Value Per Common Share Tangible Book Value Per Common Share 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 $12.00 $13.00 $14.00 $15.00 $16.00 $17.00 $18.00 $19.00 $20.00 $21.00 $22.00
Slide 17: Investment Securities
Investment Securities 17BAFN Q2 2022 AFS Investment Securities Portfolio as of June 30, 2022 (fair market value, in thousands) $9,909 $3,774 $20,553 $11,047 Asset-backed securities MBS:U.S. Government-sponsored enterprises CMO: U.S. Government-sponsored enterprises Corporate Bonds HTM Investment Sec
Slide 18: Investment Securities
Investment Securities • Other Comprehensive Income Loss of $2.6 million reduced Tangible Book Value by $0.64 as of June 30, 2022 ◦ We have the intent and ability to hold the available for sale investment securities to maturity and no plan to sell ◦ Cash flows can be used to fund future loan growth a
Slide 19: Loans Held for Investment
Loans Held for Investment 19BAFN Q2 2022 Composition of Loans Held for Investment (gross) as of June 30, 2022 Loans Held for Investment, net (in thousands) $874,397 $563,454 $646,720 $551,627 $632,173 Loans (excl. PPP) PPP loans 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 $200,000 $300,000 $400,000
Slide 20: Deposits
Deposits 20BAFN Q2 2022 Total Deposits Deposit Portfolio Composition as of June 30, 2022 $632,322 $675,034 $721,685 $770,129 $765,406 Total Deposits (in thousands) 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 $500,000 $550,000 $600,000 $650,000 $700,000 $750,000 $800,000 13.6% 25.5% 56.5% 4.4% Nonin
Slide 21: Asset Quality
Asset Quality 21BAFN Q2 2022 Nonperforming Assets*/Total Assets Nonperforming Assets/Bank Tier 1 Capital + ALLL ALLL/Loans Held for Investment at amortized cost (HFI) ALLL/Gross Loans HFI Excl Govt Gtd * Excludes government guaranteed assets 0.30% 0.40% 0.43% 0.30% 0.46% 06/30/21 09/30/21 12/31/21 0
Slide 22: Earnings
Earnings 22BAFN Q2 2022 Record earnings augmented by PPP loan sales in Q2’21 ($ in Thousands) $13,016 $1,280 $2,811 $13 $(282) Net Income (QTD) 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 $(2,500) $0 $2,500 $5,000 $7,500 $10,000 $12,500 $15,000 Earnings impacted by transitions in residential and Cr
Slide 23: Pre-tax, Pre-provision Earnings
Pre-tax, Pre-provision Earnings 23BAFN Q2 2022 ($ in Thousands) $17,448 $1,779 $3,183 $27 $(573) $17,448 $(1,221) $683 $(2,373) $(323) Pre-tax income (loss) (QTD) Pre-tax, pre-provision income (loss) (QTD) (1) 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 $(5,000) $0 $5,000 $10,000 $15,000 $20,000 Pr
Slide 24: Earnings Performance Ratios
Earnings Performance Ratios 24BAFN Q2 2022 Return on Average Common Equity 74.61% 5.12% 12.54% (0.93)% (2.35)% Return on Average Common Equity QTD (annualized) 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 0.00% 20.00% 40.00% 60.00% 80.00% Return on Average Assets 3.38% 0.47% 1.22% 0.01% (0.13)% Retu
Slide 25: Omnichannel Delivery
Omnichannel Delivery • Convenient banking centers • State-of-the-art contact center technology • First-in-class mobile banking • Digital loan origination 25BAFN Q2 2022 WE MEET CUSTOMERS ON THEIR TERMS
Slide 26: Community Banking
Community Banking • Q2’2022 Loan Production Summary: ◦ Total Community Banking Division loan production for Q2’2022 was 269 units for $80.3 million, an increase of 32.5% and 26.3% over Q1’2022 production of 203 units and $63.6 million, respectively. ▪ Consumer loan growth of $7.8 million was the hig
Slide 27: CreditBench
CreditBench • Total Q2’2022 SBA loan production of $90.0 million, which represents a $42.7 million, or 90.2%, increase from Q1’2022 volume of $47.3 million and an increase of $42.6 million, or 89.9% over $47.4 million produced in Q2’2021. This quarters production represents one of the highest perfor
Slide 28: Residential Mortgage Division
RESIDENTIAL MORTGAGE DIVISION • Residential mortgage production of $305.6 million in Q2’2022, down 8.9% from $335.6 million originated in the prior quarter. ◦ Residential mortgage production was impacted by rapid rate increases, which significantly impacted refinance volume. ◦ 859 units of productio
Slide 29: Residential Mortgage Division
RESIDENTIAL MORTGAGE DIVISION 29BAFN Q2 2022 Total QTD Production ($ in thousands) $522,080 $506,673 $477,476 $335,560 $305,576 06/30/21 09/30/21 12/31/21 03/31/22 06/30/22 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000
Slide 30: Key Company Highlights
Key Company Highlights 30 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 31: 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 32: Financial Statements
Financial Statements
Slide 33: Consolidated Statements of Income (Unaudited)
33 BayFirst Financial Corp. Consolidated Statements of Income (Unaudited) BAFN Q2 2022 For the Quarter Ended Year-to-Date (Dollars in thousands, except per share data) 6/30/2022 3/31/2022 6/30/2021 6/30/2022 6/30/2021 Interest income: Loans, other than PPP $ 7,924 $ 7,115 $ 5,282 $ 15,039 $ 11,881 P
Slide 34: Consolidated Statements of Income Cont. (Unaudited)
34 BayFirst Financial Corp. Consolidated Statements of Income Cont. (Unaudited) BAFN Q2 2022 For the Quarter Ended Year-to-Date (Dollars in thousands, except per share data) 6/30/2022 3/31/2022 6/30/2021 6/30/2022 6/30/2021 Noninterest Expense: Salaries and benefits 11,416 13,697 12,948 25,113 26,11
Slide 35: Consolidated Balance Sheets (Unaudited)
35 BayFirst Financial Corp. Consolidated Balance Sheets (Unaudited) BAFN Q2 2022 (Dollars in thousands) 6/30/2022 3/31/2022 6/30/2021 Assets Unaudited Unaudited Unaudited Cash and due from banks $ 2,944 $ 3,141 $ 2,896 Interest-bearing deposits in banks 64,992 118,960 102,441 Cash and cash equivalen
Slide 36: Consolidated Balance Sheets Cont. (Unaudited)
36 BayFirst Financial Corp. Consolidated Balance Sheets Cont. (Unaudited) BAFN Q2 2022 (Dollars in thousands) 6/30/2022 3/31/2022 6/30/2021 Liabilities: Unaudited Unaudited Unaudited Noninterest-bearing deposits $ 103,613 $ 92,680 $ 81,150 Interest-bearing transaction accounts 195,386 180,815 143,04
Slide 37: Non-GAAP Reconciliation (Unaudited)
37 BayFirst Financial Corp. Non-GAAP Reconciliation (Unaudited) BAFN Q2 2022 Tangible Common Shareholders' Equity, Tangible Book Value Per Common Share, and Pre-tax, Pre-provision Income (Loss) As of and for the three months ended (Dollars in thousands, except per share data) June 30, 2022 March 31,