Bayfirst Financial Corp. · NASDAQ:BAFN
Bayfirst Financial — Q2 2024 Earnings Presentation
30 slides from Bayfirst Financial's earnings presentation, Jul 25, 2024
Slide 1: BayFirst Financial Corp. 2024 Second Quarter Results (Unaudited)
BayFirst Financial Corp. (NASDAQ:BAFN) 2024 – Second 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.
3 ABOUT BAYFIRST FINANCIAL CORP. TAMPA BAY’S PREMIER COMMUNITY BANKING FRANCHISE IN THE TAMPA BAY- SARASOTA REGION(1) HOW WE RANK 2 ASSET SIZE BILLION TOTAL ASSETS (2)$1.22 SBA ORIGINATION SBA 7(a) ORIGINATOR IN THE NATION BY UNITS (3) #3 GROWTH ASSET GROWTH SINCE DEC 31, 2019(2)129% 1. Deposit rank
Slide 4: Key Investment Points
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 4 KEY INVESTMENT POINTS Second largest community bank (deposits) based in attractive Tampa Bay-Sarasota region(1) Total asset growth of 129% since YE2019 Innovative technology driven b
Slide 5: Current Banking Center Location
55 ABOUT BAYFIRST FINANCIAL CORP. CURRENT BANKING CENTER LOCATION SOLID BANKING CENTER FRANCHISE IN TAMPA BAY-SARASOTA REGION
Slide 6: Technology platform, banking centers and SBA lending
6 • Advanced technology platform to support innovative products and services while improving efficiencies • PowerLOS is an automated, highly scalable SBA and commercial loan origination system • Working with FinTechs to offer new and innovative services through Mulesoft API platform • 12 banking cen
Slide 7: Attractive Loan Composition
7 ATTRACTIVE LOAN COMPOSITION Composition of Loans Held for Investment as of June 30, 2024 26.6% 18.1% 12.4% 24.4% 6.0% 3.5% 0.4% 8.6% C&I Residential HELOC Owner-occupied nonfarm/nonresidential Other nonfarm/nonresidential C&D Multifamily residential and farmland Consumer & Other Loan Highlights •
Slide 8: Solid Deposit Composition
8 SOLID DEPOSIT COMPOSITION Deposit Portfolio Composition as of June 30, 2024 • Total Deposits grew $57 million during the first six months of 2024 • Approximately 81% of deposits are insured as of June 30, 2024 • Minimal use of short-term brokered deposits ($60 million as of June 30, 2024) • Grew n
Slide 9: Investment Securities AFS
9 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of June 30, 2024 (fair market value, in thousands) Investment Securities Portfolio Details • Minimal exposure to market value losses due to modest investment securities portfolio (0.4% of total assets) • Other Comprehensive Loss of $3.1
Slide 10: Strategic Pillars 2024
10 STRATEGIC PILLARS 2024 Maintain Strong Capital Manage and Evolve Risk Management Leverage Our SBA Expertise Promote Innovation Maintain Granularity of Deposit and Loan Portfolios Leverage Banking Center Franchise and Core Deposit Base Continue to Promote Workplace Culture and Social Responsibilit
Slide 11: Goals & Initiatives: 2024 and Beyond
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 11 GOALS & INITIATIVES: 2024 AND BEYOND • Increase the volume of small-balance SBA loans • Focus on revenue growth and optimize the Bank’s efficiency ratio • Maximize existing banking
Slide 12: Q2 2024 Three Months Ended Income Statement
12 Q2 2024 For the Three Months Ended ($000s) 6/30/2024 3/31/2024 Increase/ (Decrease) 6/30/2023 Increase/ (Decrease) Interest income $ 20,427 $ 19,187 $ 1,240 $ 17,792 $ 2,635 Interest expense 11,245 10,445 800 7,684 3,561 Net interest income 9,182 8,742 440 10,108 (926) Provision for credit losses
Slide 13: Q2 2024 Six Months Ended Income Statement
13 Q2 2024 Six Months Ended June 30, ($000s) 2024 2023 Increase/ (Decrease) Interest income $ 39,614 $ 32,043 $ 7,571 Interest expense 21,690 12,882 8,808 Net interest income 17,924 19,161 (1,237) Provision for credit losses 7,058 4,707 2,351 Noninterest income 25,921 20,385 5,536 Noninterest expens
Slide 14: Q2 2024 Key Ratios and Capital
14 Q2 2024 As of and For the Three Months Ended As of and For the Six Months Ended 6/30/2024 3/31/2024 6/30/2023 6/30/2024 6/30/2023 Return on average assets(1) 0.29 % 0.29 % 0.52 % 0.29 % 0.42 % Return on average common equity(1) 2.26 % 2.06 % 5.86 % 2.16 % 4.29 % Tangible book value per common sha
Slide 15: Strategic Growth: Assets, Loans, Deposits, Equity
15 $81 $83 $85 $85 $85 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $20 $40 $60 $80 $100 $120 Strong balance sheet on track for continued sustainable growth STRATEGIC GROWTH Total Assets ($M) Total Loans HFI ($M) Total Deposits ($M) Tangible Common Equity ($M) $1,087 $1,134 $1,118 $1,144 $1,218 Q2 2023 Q
Slide 16: Summary of Key Ratios
16 SUMMARY OF KEY RATIOS ROAA (%)(1) ROATCE (%)(1) Net Interest Margin (%)(1) Noninterest Income / Total Revenue from Continuing Operations 0.52% 0.71% 0.60% 0.29% 0.29% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 0.00% 0.50% 1.00% 5.86% 8.46% 6.37% 2.06% 2.26% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 0.
Slide 17: Tangible Book Value Per Share
17 TANGIBLE BOOK VALUE PER SHARE $19.85 $20.12 $20.60 $20.45 $20.54 Tangible Book Value Per Share Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $10 $12 $14 $16 $18 $20 $22
Slide 18: Government Guaranteed Loan Production
18 $125 $156 $145 $131 $99 676 729 849 809 603 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $0 $25 $50 $75 $100 $125 $150 $175 550 600 650 700 750 800 850 900 950 1,000 • Nationally ranked #3 in total SBA units and #9 in dollars for the quarter ended June 30, 2024 • Strategic initiative to expand USDA bu
Slide 19: CreditBench (SBA/USDA Loans)
19 $1,122 $1,199 $1,252 $1,326 $1,358 $364 $373 $396 $375 $392 $758 $826 $856 $951 $966 HFI Government Guaranteed Loans (1) Government Guaranteed Loans Serviced for Others 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 $0 $250 $500 $750 $1,000 $1,250 $1,500 CREDITBENCH (SBA/USDA LOANS) Guarantee
Slide 20: CreditBench Loan Production
20 Quarter Ended ($000s) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Core 7(a) $ 44,195 $ 36,635 $ 33,115 $ 25,967 $ 24,624 Core 504 — 14,571 482 2,419 2,593 Core USDA 5,525 19,800 9,080 4,000 — Bolt 74,785 84,905 102,264 98,170 71,459 Total $ 124,505 $ 155,911 $ 144,941 $ 130,556 $ 98,676 CR
Slide 21: Asset Quality
21 ASSET QUALITY Strong reserve well-positioned to withstand volatility in economic conditions 1.15% 1.13% 1.27% 1.71% 1.45% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 0.0% 0.5% 1.0% 1.5% 2.0% Net charge-offs/Total average loans HFI at amortized cost ACL/Total loans held for investment at amortized cos
Slide 22: Upgrade Consumer Loans
22 Quarter ended ($000s) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 Ending balance $ 23,255 $ 20,006 $ 17,027 $ 14,345 $ 12,012 31-90 days past due 700 852 1,021 718 572 90+ days past due 220 351 258 170 137 Net charge-offs 601 755 896 770 576 Net charge-offs to average loans (annualized) 9.
Slide 23: Community Banking Performance Q2 2024
23 COMMUNITY BANKING PERFORMANCE Q2 2024 Loan Production Summary: ▪ Loan production during the quarter was $79.8 million(1) ▪ Loans held for investment, including government guaranteed loans, increased by a net $74.1 million QoQ Q2 2024 Deposit Summary: ▪ Deposit balances increased $35.1 million QoQ
Slide 24: Appendix
APPENDIX
Slide 25: Bolt Single Loan Earnings Example
25 BOLT SINGLE LOAN EARNINGS EXAMPLE Immediate One-Time Impact Loan amount (Average amount of a Bolt loan) $ 130,000 Guaranteed amount (85% of total loan) 110,500 Unguaranteed amount (15% of total loan, retained by BayFirst) 19,500 Premium earned on sale of guaranteed amount 10,166 (The gross premiu
Slide 26: Ownership Overview
26 OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,134,459 as of 7/18/24 Source: S&P Capital IQ Pro Vanguard Group Inc., 2.57% First Manhattan Co., 3.36% 1st & Main Growth Partners, 3.63% All Other Instit
Slide 27: Deposits in Tampa Bay-Sarasota Region
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 27 DEPOSITS IN TAMPA BAY-SARASOTA REGION Total Deposits (Total Assets <$10BN and HQ in Tampa-Sarasota Region) Note: Deposit data as of March 31, 2024 Source: Uniform Bank Performance R
Slide 28: Liquidity Sources
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 28 LIQUIDITY SOURCES • Available Liquidity ◦ $63 million in cash and due from other banks ◦ $39 million in AFS investment securities • Off Balance Sheet Sources of Liquidity ◦ $133 mil
Slide 29: Experienced Leadership Team
29 EXPERIENCED LEADERSHIP TEAM • Joined BayFirst as CFO in Q2 2018; Prior to joining BayFirst, Controller of Central Bank & Trust Co., a $2.5 billion privately held financial institution in Lexington, Kentucky, from May 2014 to June 2018 • Approximately 16 years with Crowe LLP as an auditor in the f
Slide 30: Experienced Leadership Team
30 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