0001649739FALSE00016497392024-07-252024-07-25


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
 FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) July 25, 2024 

BAYFIRST FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
 
 
Florida 001-41068 59-3665079
(State or other jurisdiction
of incorporation)
 
(Commission
file number)
 
(IRS employer
identification no.)
700 Central Avenue33701
St. Petersburg, Florida
(Zip Code)
(Address of principal executive offices)
(727) 440-6848
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
Securities Registered pursuant to Section 12(b) of the Act:
Title of each class registeredTrading Symbol(s)Name of exchange on which registered
Common StockBAFNThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1933 (§240.12b-2 of this chapter)
Emerging growth company ☑
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Item 2.02. Results of Operations and Financial Condition
On July 25, 2024, BayFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the second quarter of 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
Item 7.01. Regulation FD Disclosure
The Company has prepared presentation materials (the “Conference Call & Webcast Presentation”) that management intends to use during its previously announced second quarter 2024 conference call on Friday, July 26, 2024 at 9:00 am Eastern Time, and from time to time thereafter in presentations about the Company’s operations and performance. The Company may use the Conference Call & Webcast Presentation, possibly with modifications, in presentations to current and potential investors, analysts, lenders, business partners, acquisition candidates, customers, employees and others with an interest in the Company and its business.
A copy of the Conference Call & Webcast Presentation is furnished as Exhibit 99.2 to this report and incorporated herein by reference. The Conference Call & Webcast Presentation is also available on the Company's website at www.bayfirstfinancial.com. Materials on the Company’s website are not part of, or incorporated by reference into, this report.
Item 8.01. Other Events
On July 23, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.08 per common share. The dividend will be payable September 15, 2024 to common shareholders of record as of September 1, 2024. The Company has continuously paid quarterly common stock cash dividends since 2016.
Item 9.01 Financial Statements and Exhibits.
The information in this report (including the exhibits) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BAYFIRST FINANCIAL CORP.
Date:7/25/2024
By:/s/ Scott J. McKim
Scott J. McKim
Chief Financial Officer



picture1.jpg
Contacts:
Thomas G. ZernickScott J. McKim
Chief Executive OfficerChief Financial Officer
727.399.5680 727.521.7085
BayFirst Financial Corp. Reports Second Quarter 2024 Results;
Highlighted by Improved Operating Efficiencies and Lower Net Charge-Offs
ST. PETERSBURG, FL. — July 25, 2024 — BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (the “Bank”) today reported net income of $0.9 million, or $0.12 per diluted common share, for the second quarter of 2024, an increase of 5.1% compared to $0.8 million, or $0.11 per diluted common share, in the first quarter of 2024. Net income increased due to higher net interest income and lower provision for credit losses and compensation expense, partially offset by lower gain on sale of government guaranteed loans resulting from a decrease in balance of loans sold.
“We are pleased with the improvement in credit administration during the second quarter which resulted in a $1.1 million decrease in our provision for credit losses from the previous quarter,” stated Thomas G. Zernick, Chief Executive Officer. "As we stated in the past, the SBA 7(a) working capital loans we offer often provide resources to small businesses struggling with economic factors like high inflation. Similar to other SBA lenders, we expanded our portfolio management efforts in the second quarter to help borrowers who continue to make timely payments by offering loan modification options. These efforts helped reduce net charge-offs during the quarter."
“Our CreditBench team worked hard to produce almost $100 million in new government guaranteed loans during the second quarter. However, this volume was below both the first quarter of 2024 and the second quarter of 2023. With less loan balances sold in the market, our gains from the sale of government guaranteed loans were below the prior quarter and our expectations. Our team is focused on meeting loan origination targets in line with past performance, while also promoting acceptable credit and profitability metrics.”
“Furthermore, earlier in the year we opened our twelfth banking center, completing our near-term branch expansion plans. At the same time, we have been successful at reducing operating expenses by leveraging technology investments to reduce headcount and related incentive compensation, renegotiating key vendor contracts, and reducing other expenses while successfully growing the franchise. These reductions helped reduce noninterest expense in the second quarter by $1.2 million, and we expect those savings to increase in future quarters. We believe we have both the infrastructure and banking teams in place to efficiently grow and gain market share in our attractive Tampa Bay market.”
“Finally, a highlight of the second quarter was the launch of a strategic focus around Healthcare Banking for BayFirst, under the leadership of Phil Russo. Phil is an industry veteran and native to the Tampa Bay region and will lead a team to develop the Bank’s efforts to meet the lending and deposit needs of healthcare businesses across our Tampa Bay footprint,” concluded Zernick.
Second Quarter 2024 Performance Review
•The Company’s government guaranteed loan origination platform, CreditBench, originated $98.7 million in new government guaranteed loans during the second quarter of 2024, a decrease of 24.4% from $130.6 million of loans produced in the previous quarter, and a 21.4% decrease from $125.6 million of loans produced during the second quarter of 2023. Demand was down in the second quarter for the Company's Bolt loan program, an SBA 7(a) loan product designed to expeditiously provide working capital loans of $150 thousand or less to businesses throughout the country. Since the launch in 2022, the Company has originated

BayFirst Financial Corp. Reports Second Quarter 2024 Results
July 25, 2024
Page 2

4,729 Bolt loans totaling $611.4 million, of which 561 Bolt loans totaling $71.5 million were originated during the quarter.
•Loans held for investment increased by $73.4 million, or 7.9%, during the second quarter of 2024 to $1.01 billion and increased $171.6 million, or 20.5%, over the past year. During the quarter, the Company originated $178.5 million of loans and sold $79.0 million of government guaranteed loan balances. The majority of the loan growth was to individuals and businesses across the Tampa Bay and Sarasota region.
•Deposits increased $35.1 million, or 3.5%, during the second quarter of 2024 and increased $97.6 million, or 10.3%, over the past year to $1.04 billion.
•Balance sheet liquidity remains strong, with $63.0 million in cash balances and time deposits with other banks as of June 30, 2024. Additionally, the Company maintains significant borrowing capacity through the FHLB, Federal Reserve discount window, and lines of credit with other financial institutions. Approximately 81% of the Company's deposits were insured at June 30, 2024.
•Book value and tangible book value at June 30, 2024 were $20.54 per common share, an increase from $20.45 at March 31, 2024.
•Net interest margin increased by 1 basis point to 3.43% in the second quarter of 2024, from 3.42% in the first quarter of 2024.
Results of Operations
Net Income
Net income was $0.9 million for the second quarter of 2024, compared to $0.8 million in the first quarter of 2024 and $1.4 million in the second quarter of 2023. The increase in net income for the second quarter of 2024 from the preceding quarter was primarily the result of an increase in net interest income of $0.4 million, a decrease in provision for credit losses of $1.1 million and a decrease in noninterest expense of $1.2 million partially offset by a decrease in noninterest income of $2.6 million. The decrease in net income from the second quarter of 2023 was due to decreases in net interest income of $0.9 million and gain on sale of government guaranteed loans of $0.4 million, partially offset by an increase in other noninterest income of $0.4 million and lower compensation expense of $0.6 million.
In the first six months of 2024, net income was $1.7 million, a decrease from $2.1 million for the first six months of 2023. The decrease was primarily due to lower net interest income of $1.2 million, higher provision for credit losses of $2.4 million and higher noninterest expense of $2.6 million, partially offset by higher gain on sale of government guaranteed loans of $3.2 million and higher government guaranteed loan packaging fees of $1.5 million.
Net Interest Income and Net Interest Margin
Net interest income from continuing operations was $9.2 million in the second quarter of 2024, an increase from $8.7 million during the first quarter of 2024, and a decrease from $10.1 million during the second quarter of 2023. The net interest margin increased by 1 basis point to 3.43% in the second quarter of 2024, from 3.42% in the first quarter of 2024.
The increase during the second quarter of 2024, as compared to the first quarter of 2024, was mainly due to an increase in loan interest income, including fees, of $1.2 million partially offset by higher interest costs on deposits of $0.2 million and borrowings of $0.6 million.
The decrease during the second quarter of 2024, as compared to the year ago quarter, was mainly due to higher interest expense on deposits of $3.4 million, partially offset by an increase in interest income of $2.6 million.
Net interest income from continuing operations was $17.9 million in the first six months of 2024, a decrease from $19.2 million in the first six months of 2023. The decrease was mainly due to an increase in interest expense on deposits of $8.6 million, partially offset by an increase in loan interest income, including fees, of $8.2 million.
Noninterest Income
Noninterest income from continuing operations was $11.7 million for the second quarter of 2024, which was a decrease from $14.3 million in the first quarter of 2024 and an increase from $10.9 million in the second quarter of

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July 25, 2024
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2023. The decrease in the second quarter of 2024, as compared to the first quarter of 2024, was primarily the result of a decrease in gain on sale of government guaranteed loans of $2.5 million as a result of selling $48.8 million less in loan balances during the quarter. The increase in the second quarter of 2024, as compared to the second quarter of 2023, was the result of increases in fair value gains on government guaranteed loans of $0.3 million, government guaranteed loan packaging fees of $0.2 million, and other noninterest income of $0.4 million, partially offset by a decrease in gain on sale of government guaranteed loans of $0.4 million.
Noninterest income from continuing operations was $25.9 million for the first six months of 2024, which was an increase from $20.4 million for the first six months of 2023. The increase was primarily the result of increases in gain on sale of government guaranteed loans of $3.2 million and government guaranteed loan packaging fees of $1.5 million.
Noninterest Expense
Noninterest expense from continuing operations was $16.6 million in the second quarter of 2024 compared to $17.8 million in the first quarter of 2024 and $16.4 million in the second quarter of 2023. The decrease in the second quarter of 2024, as compared to the prior quarter, was primarily due to decreases in compensation expense of $1.1 million and professional services expense of $0.5 million. The increase in the second quarter of 2024, as compared to the second quarter of 2023, was primarily due to higher loan production expenses of $0.7 million, data processing expenses of $0.3 million, and other noninterest expense of $0.2 million, partially offset by lower compensation costs of $0.6 million and marketing and business development expenses of $0.6 million. The overall reduction of noninterest expense compared to the first quarter is attributed to the lower headcount on the Bolt lending team where we are leveraging technology in place of staff, combined with restructured incentive plans, and savings from renegotiated vendor contracts. These changes will provide ongoing expense savings.
Noninterest expense from continuing operations was $34.4 million for the first six months of 2024 compared to $31.8 million for the first six months of 2023. The increase was the result of increases in data processing expense of $0.5 million, loan origination and collection expense of $1.0 million, professional services expenses of $0.5 million, and other noninterest expenses of $0.6 million. The increases were partially offset by a decrease in marketing and business development expenses of $0.6 million.
Balance Sheet
Assets
Total assets increased $73.7 million, or 6.4%, during the second quarter of 2024 to $1.22 billion, mainly due to an increase of $73.4 million in loans held for investment.
Loans
Loans held for investment increased $73.4 million, or 7.9%, during the second quarter of 2024 and $171.6 million, or 20.5%, over the past year to $1.01 billion, due to originations in both conventional community bank loans and government guaranteed loans, partially offset by government guaranteed loan sales.
Deposits
Deposits increased $35.1 million, or 3.5%, during the second quarter of 2024 and increased $97.6 million, or 10.3%, from the second quarter of 2023, ending the second quarter of 2024 at $1.04 billion. During the second quarter, there were increases in savings and money market deposit account balances of $28.4 million and time deposit balances of $23.7 million, partially offset by decreases in noninterest-bearing deposit account balances of $2.9 million and interest-bearing transaction account balances of $14.0 million. The majority of the deposits are generated through the community bank. At times, the Bank has brokered time deposit and non-maturity deposit relationships available to

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July 25, 2024
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diversify its funding sources. At June 30, 2024, March 31, 2024, and June 30, 2023, the Company had $60.1 million , $30.5 million,and $40.1 million, respectively, of brokered deposits.
Asset Quality
The Company recorded a provision for credit losses in the second quarter of $3.0 million, compared to a $4.1 million provision for the first quarter of 2024 and $2.8 million during the second quarter of 2023.
The ratio of ACL to total loans held for investment at amortized cost was 1.50% at June 30, 2024, 1.62% as of March 31, 2024, and 1.61% as of June 30, 2023. The ratio of ACL to total loans held for investment at amortized cost, excluding government guaranteed loans, was 1.73% at June 30, 2024, 1.88% as of March 31, 2024, and 2.03% as of June 30, 2023.
Net charge-offs for the second quarter of 2024 were $3.3 million, which was a decrease from $3.7 million for the first quarter of 2024 and an increase from $2.3 million in the second quarter of 2023. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 1.45% for the second quarter of 2024, compared to 1.71% in the first quarter of 2023 and 1.15% in the second quarter of 2023. Nonperforming assets to total assets was 1.28% as of June 30, 2024, compared to 0.97% as of March 31, 2024, and 0.79% as of June 30, 2023. Nonperforming assets, excluding government guaranteed loans, to total assets was 0.82% as of June 30, 2024, compared to 0.70% as of March 31, 2024, and 0.61% as of June 30, 2023.
Capital
The Bank’s Tier 1 leverage ratio was 8.73% as of June 30, 2024, compared to 9.12% as of March 31, 2024, and 9.36% at June 30, 2023. The CET 1 and Tier 1 capital ratio to risk-weighted assets were 10.54% as of June 30, 2024, compared to 11.04% as of March 31, 2024, and 12.34% as of June 30, 2023. The total capital to risk-weighted assets ratio was 11.79% as of June 30, 2024, compared to 12.29% as of March 31, 2024, and 13.60% as of June 30, 2023.
Liquidity
The Bank has liquidity in excess of internal minimums and the expectations of our bank regulators. The Bank’s overall liquidity position remains strong and stable. The on-balance sheet liquidity ratio at June 30, 2024 was 8.55%, as compared to 9.33% at December 31, 2023. The Bank has robust liquidity resources which include secured borrowings available from the Federal Home Loan Bank, the Federal Reserve, and lines of credit with other financial institutions. As of June 30, 2024, the Bank had $55.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions. This compares to $15.0 million and $10.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions at March 31, 2024 and December 31, 2023, respectively.
Recent Events
Third Quarter Common Stock Dividend. On July 23, 2024, BayFirst’s Board of Directors declared a third quarter 2024 cash dividend of $0.08 per common share. The dividend will be payable September 15, 2024 to common shareholders of record as of September 1, 2024. The Company has continuously paid quarterly common stock cash dividends since 2016.
Conference Call
BayFirst’s management team will host a conference call on Friday, July 26, 2024, at 9:00 a.m. ET to discuss its second quarter results. Interested investors may listen to the call live under the Investor Relations tab at www.bayfirstfinancial.com. Investment professionals are invited to dial (800) 549-8228 to participate in the call using Conference ID 63886. A replay of the call will be available for one year at www.bayfirstfinancial.com.
About BayFirst Financial Corp.
BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida which commenced operations on September 1, 2000. Its primary source of income is derived from its wholly owned subsidiary, BayFirst National Bank, a national banking association which commenced business operations on February 12, 1999. The Bank currently operates twelve full-service banking offices throughout the Tampa Bay-Sarasota region and offers a broad range of commercial and consumer banking services to businesses and individuals. The Bank was the 3rd

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July 25, 2024
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largest SBA 7(a) lender by number of units originated and 9th largest by dollar volume nationwide through the third quarter ended June 30, 2024, of SBA's 2024 fiscal year. Additionally, it was the number one SBA 7(a) lender in dollar volume in the 5 county Tampa Bay market for the SBA's 2023 fiscal year. As of June 30, 2024, BayFirst Financial Corp. had $1.22 billion in total assets.
Forward-Looking Statements
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, the effects of health crises, global military hostilities, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the SEC, including, but not limited to those “Risk Factors” described in our most recent Form 10-K and Form 10-Q. Readers should note that the forward-looking statements included herein are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements.

BayFirst Financial Corp. Reports Second Quarter 2024 Results
July 25, 2024
Page 6

BAYFIRST FINANCIAL CORP.
SELECTED FINANCIAL DATA (Unaudited)

At or for the three months ended
(Dollars in thousands, except for share data)6/30/20243/31/202412/31/20239/30/20236/30/2023
Balance sheet data:
Average loans held for investment at amortized cost$902,417 $855,040 $825,196 $789,167 $781,744 
Average total assets1,178,501 1,126,315 1,108,550 1,088,517 1,064,068 
Average common shareholders’ equity84,948 85,385 82,574 81,067 80,310 
Total loans held for investment1,008,314 934,868 915,726 878,447 836,704 
Total loans held for investment, excl gov’t gtd loan balances844,659 776,302 698,106 687,141 638,148 
Allowance for credit losses13,843 13,906 13,497 13,365 12,598 
Total assets1,217,869 1,144,194 1,117,766 1,133,979 1,087,399 
Common shareholders’ equity84,911 84,578 84,656 82,725 81,460 
Share data:
Basic earnings per common share$0.12 $0.11 $0.32 $0.42 $0.29 
Diluted earnings per common share0.12 0.11 0.32 0.41 0.29 
Dividends per common share0.08 0.08 0.08 0.08 0.08 
Book value per common share20.54 20.45 20.60 20.12 19.85 
Tangible book value per common share (1)
20.54 20.45 20.60 20.12 19.85 
Performance and capital ratios:
Return on average assets(2)
0.29 %0.29 %0.60 %0.71 %0.52 %
Return on average common equity(2)
2.26 %2.06 %6.37 %8.46 %5.86 %
Net interest margin(2)
3.43 %3.42 %3.48 %3.36 %4.18 %
Dividend payout ratio68.91 %75.27 %25.03 %19.15 %27.89 %
Asset quality ratios:
Net charge-offs$3,261 $3,652 $2,612 $2,234 $2,253 
Net charge-offs/avg loans held for investment at amortized cost(2)
1.45 %1.71 %1.27 %1.13 %1.15 %
Nonperforming loans(3)
$12,312 $9,877 $9,688 $9,518 $8,478 
Nonperforming loans (excluding gov't gtd balance)(3)
$8,054 $7,568 $8,264 $7,997 $6,590 
Nonperforming loans/total loans held for investment(3)
1.34 %1.15 %1.18 %1.20 %1.08 %
Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3)
0.87 %0.88 %1.00 %1.01 %0.84 %
ACL/Total loans held for investment at amortized cost1.50 %1.62 %1.64 %1.68 %1.61 %
ACL/Total loans held for investment at amortized cost, excl government guaranteed loans 1.73 %1.88 %2.03 %2.03 %2.03 %
Other Data:
Full-time equivalent employees302313305307302
Banking center offices121211109
(1) See section entitled "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below for a reconciliation to most comparable GAAP equivalent.
(2) Annualized
(3) Excludes loans measured at fair value


BayFirst Financial Corp. Reports Second Quarter 2024 Results
July 25, 2024
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GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures
Some of the financial measures included in this report are not measures of financial condition or performance recognized by GAAP. These non-GAAP financial measures include tangible common shareholders' equity and tangible book value per common share. Our management uses these non-GAAP financial measures in its analysis of our performance, and we believe that providing this information to financial analysts and investors allows them to evaluate capital adequacy.
The following presents these non-GAAP financial measures along with their most directly comparable financial measures calculated in accordance with GAAP:
Tangible Common Shareholders' Equity and Tangible Book Value Per Common Share (Unaudited)
As of
(Dollars in thousands, except for share data)June 30, 2024March 31, 2024December 31, 2023September 30, 2023June 30, 2023
Total shareholders’ equity$100,962 $100,629 $100,707 $94,165 $91,065 
Less: Preferred stock liquidation preference(16,051)(16,051)(16,051)(11,440)(9,605)
Total equity available to common shareholders84,911 84,578 84,656 82,725 81,460 
Less: Goodwill— — — — — 
Tangible common shareholders' equity$84,911 $84,578 $84,656 $82,725 $81,460 
Common shares outstanding4,134,219 4,134,914 4,110,470 4,110,650 4,103,834 
Tangible book value per common share$20.54 $20.45 $20.60 $20.12 $19.85 


BayFirst Financial Corp. Reports Second Quarter 2024 Results
July 25, 2024
Page 8

BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)6/30/20243/31/20246/30/2023
Assets
Cash and due from banks$4,226 $4,425 $4,593 
Interest-bearing deposits in banks56,546 53,080 99,114 
Cash and cash equivalents60,772 57,505 103,707 
Time deposits in banks2,261 3,000 4,881 
Investment securities available for sale, at fair value (amortized cost $42,885, $46,816, and $45,713 at June 30, 2024, March 31, 2024, and June 30, 2023, respectively)
38,685 42,514 41,343 
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $14, $14, and $19 (fair value: $2,273, $2,352, and $2,222 at June 30, 2024, March 31, 2024, and June 30, 2023, respectively)
2,486 2,487 2,483 
Nonmarketable equity securities
7,132 5,228 5,332 
Government guaranteed loans held for sale— 2,226 1,247 
Government guaranteed loans held for investment, at fair value
86,142 77,769 52,165 
Loans held for investment, at amortized cost net of allowance for credit losses of $13,843, $13,906, and $12,598 at June 30, 2024, March 31, 2024, and June 30, 2023, respectively)
908,329 843,193 771,941 
Accrued interest receivable8,000 7,625 5,929 
Premises and equipment, net39,088 39,327 40,052 
Loan servicing rights15,770 15,742 12,820 
Deferred income tax assets— — 925 
Right-of-use operating lease assets2,305 2,499 2,804 
Bank owned life insurance26,150 25,974 25,469 
Other assets20,713 18,805 15,850 
Assets from discontinued operations36 300 451 
Total assets$1,217,869 $1,144,194 $1,087,399 
Liabilities:
Noninterest-bearing deposits$94,040 $96,977 $101,081 
Interest-bearing transaction accounts236,447 250,478 253,112 
Savings and money market deposits420,271 391,915 401,941 
Time deposits291,630 267,945 188,648 
Total deposits1,042,388 1,007,315 944,782 
FHLB borrowings55,00015,000 30,000 
Subordinated debentures5,9525,9505,945
Notes payable2,162 2,276 2,617 
Accrued interest payable1,172 1,598 572 
Operating lease liabilities2,497 2,673 3,018 
Deferred income tax liabilities1,000 728 — 
Accrued expenses and other liabilities6,565 7,496 8,461 
Liabilities from discontinued operations171 529 939 
Total liabilities1,116,907 1,043,565 996,334 

BayFirst Financial Corp. Reports Second Quarter 2024 Results
July 25, 2024
Page 9

BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)6/30/20243/31/20246/30/2023
Shareholders’ equity:
Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at June 30, 2024, March 31, 2024, and June 30, 2023; aggregate liquidation preference of $6,395 each period
6,161 6,161 6,161 
Preferred stock, Series B; no par value, 20,000 shares authorized, 3,210 shares issued and outstanding at June 30, 2024, March 31, 2024, and June 30, 2023; aggregate liquidation preference of $3,210 each period
3,123 3,123 3,123 
Preferred stock, Series C; no par value, 10,000 shares authorized, 6,446 shares issued and outstanding at June 30, 2024 and March 31, 2024, and no shares issued and outstanding as of June 30, 2023; aggregate liquidation preference of $6,446 at June 30, 2024 and March 31, 2024
6,446 6,446 — 
Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,134,219, 4,134,914, and 4,103,834 shares issued and outstanding at June 30, 2024, March 31, 2024, and June 30, 2023, respectively
54,773 54,776 54,384 
Accumulated other comprehensive loss, net(3,113)(3,188)(3,239)
Unearned compensation(1,081)(1,192)(1,386)
Retained earnings34,653 34,503 32,022 
Total shareholders’ equity100,962 100,629 91,065 
Total liabilities and shareholders’ equity$1,217,869 $1,144,194 $1,087,399 

BayFirst Financial Corp. Reports Second Quarter 2024 Results
July 25, 2024
Page 10

BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the Quarter EndedYear-to-Date
(Dollars in thousands, except per share data)6/30/20243/31/20246/30/20236/30/20246/30/2023
Interest income:
Loans, including fees$19,414 $18,228 $16,372 $37,642 $29,443 
Interest-bearing deposits in banks and other1,013 959 1,420 1,972 2,600 
Total interest income20,427 19,187 17,792 39,614 32,043 
Interest expense:
Deposits10,448 10,215 7,098 20,663 12,021 
Other797 230 586 1,027 861 
Total interest expense11,245 10,445 7,684 21,690 12,882 
Net interest income9,182 8,742 10,108 17,924 19,161 
Provision for credit losses3,000 4,058 2,765 7,058 4,707 
Net interest income after provision for credit losses6,182 4,684 7,343 10,866 14,454 
Noninterest income:
Loan servicing income, net805 795 649 1,600 1,389 
Gain on sale of government guaranteed loans, net5,595 8,089 6,028 13,684 10,437 
Service charges and fees452 444 379 896 758 
Government guaranteed loans fair value gain, net3,202 3,305 2,904 6,507 6,478 
Government guaranteed loan packaging fees1,022 1,407 797 2,429 918 
Other noninterest income577 228 180 805 405 
Total noninterest income11,653 14,268 10,937 25,921 20,385 
Noninterest Expense:
Salaries and benefits7,829 8,005 7,780 15,834 15,615 
Bonus, commissions, and incentives659 1,571 1,305 2,230 2,109 
Occupancy and equipment1,273 1,110 1,183 2,383 2,346 
Data processing1,647 1,560 1,316 3,207 2,663 
Marketing and business development540 588 1,102 1,128 1,767 
Professional services877 1,349 874 2,226 1,771 
Loan origination and collection1,958 1,719 1,221 3,677 2,716 
Employee recruiting and development549 597 556 1,146 1,124 
Regulatory assessments279 282 232 561 331 
Other noninterest expense999 992 833 1,991 1,372 
Total noninterest expense16,610 17,773 16,402 34,383 31,814 
Income before taxes from continuing operations1,225 1,179 1,878 2,404 3,025 
Income tax expense from continuing operations349 296 461 645 741 
Net income from continuing operations876 883 1,417 1,759 2,284 
Loss from discontinued operations before income taxes(14)(78)(43)(92)(213)
Income tax benefit from discontinued operations(4)(19)(11)(23)(53)
Net loss from discontinued operations(10)(59)(32)(69)(160)
Net income866 824 1,385 1,690 2,124 
Preferred dividends386 385 208 771 416 
Net income available to common shareholders$480 $439 $1,177 $919 $1,708 

BayFirst Financial Corp. Reports Second Quarter 2024 Results
July 25, 2024
Page 11

BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the Quarter EndedYear-to-Date
(Dollars in thousands, except per share data)6/30/20243/31/20246/30/20236/30/20246/30/2023
Basic earnings (loss) per common share:
Continuing operations$0.12 $0.12 $0.30 $0.24 $0.46 
Discontinued operations— (0.01)(0.01)(0.02)(0.04)
Basic earnings per common share$0.12 $0.11 $0.29 $0.22 $0.42 
Diluted earnings (loss) per common share:
Continuing operations$0.12 $0.12 $0.30 $0.24 $0.46 
Discontinued operations— (0.01)(0.01)(0.02)(0.04)
Diluted earnings per common share$0.12 $0.11 $0.29 $0.22 $0.42 
    


BayFirst Financial Corp. Reports Second Quarter 2024 Results
July 25, 2024
Page 12

Loan Composition
(Dollars in thousands)
6/30/20243/31/202412/31/20239/30/20236/30/2023
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Real estate:
Residential
$304,234 $285,214 $264,126 $248,973 $235,339 
Commercial
288,185 273,227 293,595 280,620 272,200 
Construction and land
35,759 36,764 26,272 25,339 15,575 
Commercial and industrial
192,140 182,264 177,566 174,238 198,639 
Commercial and industrial - PPP
2,324 2,965 3,202 15,364 15,808 
Consumer and other
85,789 63,854 47,287 39,024 38,103 
Loans held for investment, at amortized cost, gross
908,431 844,288 812,048 783,558 775,664 
Deferred loan costs, net
17,299 16,233 14,707 12,928 11,506 
Discount on government guaranteed loans sold
(7,731)(7,674)(7,040)(6,623)(5,937)
Premium on loans purchased, net
4,173 4,252 4,503 4,406 3,306 
Loans held for investment, at amortized cost, net
922,172 857,099 824,218 794,269 784,539 
Government guaranteed loans held for investment, at fair value86,142 77,769 91,508 84,178 52,165 
Total loans held for investment, net
$1,008,314 $934,868 $915,726 $878,447 $836,704 

Nonperforming Assets (Unaudited)
(Dollars in thousands)6/30/20243/31/202412/31/20239/30/20236/30/2023
Nonperforming loans (government guaranteed balances), at amortized cost, gross
$4,258 $2,309 $1,424 $1,521 $1,888 
Nonperforming loans (unguaranteed balances), at amortized cost, gross
8,054 7,568 8,264 7,997 6,590 
Total nonperforming loans, at amortized cost, gross
12,312 9,877 9,688 9,518 8,478 
Nonperforming loans (government guaranteed balances), at fair value
341 94 — 96 128 
Nonperforming loans (unguaranteed balances), at fair value
1,284 729 648 363 — 
Total nonperforming loans, at fair value
1,625 823 648 459 128 
OREO
1,633 404 — — 3 
Total nonperforming assets, gross
$15,570 $11,104 $10,336 $9,977 $8,609 
Nonperforming loans as a percentage of total loans held for investment(1)
1.34 %1.15 %1.18 %1.20 %1.08 %
Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1)
0.87 %0.88 %1.00 %1.01 %0.84 %
Nonperforming assets as a percentage of total assets
1.28 %0.97 %0.92 %0.88 %0.79 %
Nonperforming assets (excluding government guaranteed balances) to total assets
0.82 %0.70 %0.74 %0.71 %0.61 %
ACL to nonperforming loans(1)
112.44 %140.79 %139.32 %128.60 %146.39 %
ACL to nonperforming loans (excluding government guaranteed balances)(1)
171.88 %183.75 %163.32 %152.29 %191.17 %
(1) Excludes loans measured at fair value
Note: Transmitted on Globe Newswire on July 25, 2024, at 4:00 p.m. ET.

BayFirst Financial Corp. (NASDAQ:BAFN) 2024 – Second Quarter Results (Unaudited)

 
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, the effects of health crises, global military hostilities, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the SEC, including, but not limited to those “Risk Factors” described in our most recent Form 10-K and Form 10-Q. Readers should note that the forward-looking statements included herein are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward- looking statements. Cautionary Statement Concerning Forward-Looking Information Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this document, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

 
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 ranking of banks with assets less than $10B headquartered in the Tampa-Sarasota region as of March 31, 2024 from Uniform Bank Performance Reports 2. Financial data as of June 30, 2024 3. As of SBA’s quarter ended June 30, 2024 INITIATIVES CORPORATE SOCIAL RESPONSIBILITY FOCUSED CSR DEPOSITS $97.6 MILLION IN TOTAL DEPOSIT GROWTH OVER THE PAST YEAR(2) COMMUNITY BANKING LAUNCHED HEALTHCARE BANKING IN JUNE

 
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 bank planning for the future of banking Among the nation’s top SBA loan originators Deposit growth of 10% over last twelve months Experienced management team with strong insider ownership of 15% ✔ ✔ ✔ ✔ ✔ ✔ ✔ The Company has continuously paid quarterly common stock cash dividends since 2016 1. Deposit ranking of banks with assets less than $10B headquartered in the Tampa-Sarasota region as of March 31, 2024 from Uniform Bank Performance Reports

 
55 ABOUT BAYFIRST FINANCIAL CORP. CURRENT BANKING CENTER LOCATION SOLID BANKING CENTER FRANCHISE IN TAMPA BAY-SARASOTA REGION

 
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 centers in Tampa Bay- Sarasota region • Full suite of commercial and consumer loan and deposit products to meet the needs of Tampa Bay individuals, families and small businesses • BayFirst’s in-house government guaranteed lending platform • #3 in units and #9 SBA lender in dollars as of SBA's quarter ended 6/30/24 • #1 SBA lender in the five county Tampa Bay area at SBA’s FY ended 9/30/23 ◦ Small Loan Balance program: ▪ Includes our Bolt loans up to $150K, with up to 85% SBA government guarantee • Core program: ▪ Traditional SBA loans over $150K and up to $5 million ▪ Supports organic loan generation through sales team and partners COMMUNITY BANKING TECHNOLOGY FOCUSED INNOVATIVE COMMUNITY BANK Technology focused community bank with diversified revenue streams CREDITBENCH

 
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 • Loan portfolio is well-diversified across major loan types with a low concentration of non owner-occupied commercial real estate loans • Total loan production of $179 million during the quarter • Loans held for investment grew $73 million during the quarter

 
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 number of checking accounts by 11% YTD Noninterest Bearing Transaction, 9.0% Interest Bearing Transaction, 22.7% Savings & Money Market, 40.3% Time Deposits, 28.0% Deposit Highlights

 
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 million reduced Tangible Book Value by $0.75 as of June 30, 2024 ◦ We intend and have the ability to hold the available for sale investment securities to maturity; no plan to sell ◦ No impact to regulatory capital ratios • $2.5 million of HTM investment securities, net of ACL of $14 thousand Asset-backed securities, $6,306 MBS: U.S. Government- sponsored enterprises, $7,360CMO: U.S. Government- sponsored enterprises, $16,118 Corporate bonds, $8,901

 
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 Responsibility

 
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 centers to increase brand awareness and core deposit customers • Partner with Fintech firms to create fee income and loan and deposit opportunities • Grow capital and expand the Company’s shareholder base • Enhance overall customer experience, engagement, and satisfaction • Improve digital channels and functionalities to elevate customer engagement • Maximize the investment in technology • Position the Bank to achieve an “Outstanding” CRA rating

 
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 3,000 4,058 (1,058) 2,765 235 Noninterest income 11,653 14,268 (2,615) 10,937 716 Noninterest expense 16,610 17,773 (1,163) 16,402 208 Income tax expense 349 296 53 461 (112) Net income from continuing operations 876 883 (7) 1,417 (541) Net income (loss) from discontinued operations (10) (59) 49 (32) 22 Net income 866 824 42 1,385 (519) Preferred dividends 386 385 1 208 178 Net income available to common shareholders $ 480 $ 439 $ 41 $ 1,177 $ (697)

 
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 expense 34,383 31,814 2,569 Income tax expense 645 741 (96) Net income from continuing operations 1,759 2,284 (525) Net income (loss) from discontinued operations (69) (160) 91 Net income 1,690 2,124 (434) Preferred dividends 771 416 355 Net income available to common shareholders $ 919 $ 1,708 $ (789)

 
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 share $ 20.54 $ 20.45 $ 19.85 $ 20.54 $ 19.85 Diluted earnings per common share $ 0.12 $ 0.11 $ 0.29 $ 0.22 $ 0.42 Dividend payout ratio 68.91 % 75.27 % 27.89 % 71.95 % 38.34 % Total Capital (to risk-weighted assets) 11.79 % 12.29 % 13.60 % 11.79 % 13.60 % Common Equity Tier 1 Capital (to risk- weighted assets) 10.54 % 11.04 % 12.34 % 10.54 % 12.34 % Tier 1 Capital (to total assets) 8.73 % 9.12 % 9.36 % 8.73 % 9.36 % Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(2) 0.87 % 0.88 % 0.84 % 0.87 % 0.84 % ACL/Total loans held for investment at amortized cost 1.50 % 1.62 % 1.61 % 1.50 % 1.61 % (1) Annualized (2) Excludes loans measured at fair value

 
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 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $837 $878 $916 $935 $1,008 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $0 $200 $400 $600 $800 $1,000 $1,200 $945 $1,018 $985 $1,007 $1,042 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 $0 $200 $400 $600 $800 $1,000 $1,200

 
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 0.00% 5.00% 10.00% 15.00% 4.18% 3.36% 3.48% 3.42% 3.43% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 51.97% 63.62% 62.33% 62.01% 55.93% Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 20% 30% 40% 50% 60% 70% (1) Annualized

 
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

 
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 business and industry lending program: a total of 3 experienced USDA lenders to support this effort • Total Q2 2024 government guaranteed loan production decreased 21.4% from Q2 2023 as a result of tighter credit underwriting standards • The Company’s specialty Bolt program, an SBA 7(a) loan product designed to provide working capital loans of $150 thousand or less to businesses throughout the country ◦ Since the launch in June 2022, the Company originated loans totaling $611.4 million, including $71.5 million in Q2 2024 ◦ New automation program launched through proprietary loan origination system PowerLOS and Open API, allowing increased volume and efficiency while limiting additional staff CREDITBENCH (SBA/USDA LENDING) Q2 2024 Highlights Government Guaranteed Loan Amount ($M) and Unit Volume

 
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 $1,500 CREDITBENCH (SBA/USDA LOANS) Guaranteed Loans HFI and Loans Serviced for Others ($M) (1) Excludes PPP loans

 
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 CREDITBENCH LOAN PRODUCTION

 
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 cost 1.61% 1.68% 1.64% 1.62% 1.50% 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 0.0% 0.5% 1.0% 1.5% 2.0% ACL to nonperforming loans(1)(2) Past due and Nonaccrual loans to Total loans HFI at amortized cost(1)(2) 191.17% 152.29% 163.32% 183.75% 171.88% 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 0.0% 50.0% 100.0% 150.0% 200.0% 250.0% 1.56% 1.84% 2.02% 1.76% 1.84% 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 0.0% 1.0% 2.0% 3.0% (1) Excludes government guaranteed balances (2) Excludes loans measured at fair value

 
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) 9.63 % 13.97 % 19.32 % 19.53 % 17.40 % UPGRADE CONSUMER LOANS Purchased unsecured consumer loans (no purchases after 2022: additional purchases are not planned)

 
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 ▪ Deposit portfolio increased by 3.5% in number of accounts (to 20,652 accounts totaling $1.04 billion) QoQ New Strategic Focus: • Launched Healthcare Banking in June Q2 2024 Highlights Banking Center & Deposits ($ in 000s) Total Deposits # Branch Year Opened 6/30/2024 6/30/2023 6/30/2022 1 St. Petersburg(2) 2017 $ 281,713 $ 277,276 $ 247,003 2 Seminole 1999 144,597 136,807 150,861 3 Pinellas Park 2005 93,725 90,211 69,395 4 Downtown Sarasota 2018 164,424 173,695 169,463 5 Countryside 2018 61,113 64,209 62,342 6 West Tampa 2020 104,359 110,112 53,352 7 Belleair Bluffs 2021 43,841 34,891 12,990 8 West Bradenton 2022 56,714 41,359 — 9 Carrollwood 2023 46,114 16,222 — 10 Bee Ridge 2023 27,596 — — 11 North Sarasota 2023 679 — — 12 South Tamiami Trail 2024 17,513 — — Total Branches (12) $ 1,042,388 $ 944,782 $ 765,406 (1) Excludes government guaranteed loan production (2) St. Petersburg branch deposits include other deposits generated by CreditBench, Cash Management, Corporate Treasury, and Virtual

 
APPENDIX

 
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 premium paid when the loan is sold, less 50% of the amount over 10% to be shared with SBA and approximately 20% which is deferred and recognized over the remaining life of the unguaranteed loan amount) Cost to originate (Includes third party referral fees and internal labor and origination costs) (3,868) Packaging fee (Paid by borrower to compile and transmit SBA compliant loan package) 1,560 Servicing right gain (Reflects future value of servicing on sold loans) 2,652 Provision for credit loss on unguaranteed amount (Booked according to ASC 326) (1,560) Net one-time impact 8,950 First year income statement impact from unguaranteed amount 1,216 (Includes net interest margin and accretion of deferred gain, offset by amortization of deferred costs and servicing asset) Combined immediate one-time and first year earnings impact $ 10,166 This example is for illustrative purposes and is not a guarantee of future loan size or volume and may not be indicative of the financial impact of future loans. The size, volume, and financial impact of such loans involve known and unknown risks and uncertainties, which may cause actual performance and results to be materially different.

 
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 Institutions, 9.08% Mark S. Berset, 6.88% All Other Directors/ Executive Officers, 8.01% Public/Other, 66.47%

 
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 <$10BN and HQ in Tampa-Sarasota Region) Note: Deposit data as of March 31, 2024 Source: Uniform Bank Performance Reports Average Deposits Branches Deposits per Branch Rank Institution ($ millions) (No.) ($ millions) 1 Bank of Tampa $2,818 13 $217 2 BayFirst National Bank 1,007 12 84 3 Flagship Bank 569 6 95 4 Climate First 554 3 185 5 TCM Bank NA 245 1 245 6 Gulfside Bank 269 1 269 7 Central Bank 257 4 64 8 Waterfall Bank 155 1 155 9 Century Bank of Florida 93 1 93

 
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 million of unused, available borrowing capacity at the FHLB based on pledged loans ◦ $44 million available at the Federal Reserve Bank based on pledged loans ◦ $50 million in available Fed Funds borrowing lines from other banks • Contingent Sources ◦ Up to $123 million in brokered deposits (1) ◦ Up to $361 million in listing service deposits (1) (1) Based on Bank’s policy limits Data as of June 30, 2024

 
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 financial institution practice; served over 80 financial institution clients with assets ranging from $50 million to $4.5 billion throughout career, including several SEC registrants and FDICIA reporting institutions • B.S. in Accounting from the University of Kentucky • Joined BayFirst in Q1 2016 • Previous experience includes Florida Market President of Stearns Bank, SBA Product Manager of HomeBanc, and Community Bank President and SBA President of Republic Bank (MI) • B.A. in Business Administration from University of Notre Dame Robin Oliver Thomas G. Zernick Chief Executive Officer & Director of BayFirst and the Bank President & Chief Operating Officer of BayFirst and the Bank 29 Scott J. McKim EVP, Chief Financial Officer of BayFirst and the Bank • Joined BayFirst in July 2023 • Previous experience includes Chief Strategy Officer of 121 Financial Credit Union, Chief Financial Officer and Chief Lending Officer of Publix Employees Federal Credit Union, and Director of Corporate Finance and Divisional CFO for Huntington Bancshares • B.S. in Accounting from Bowling Green State University and a M.B.A from Max M. Fisher College of Business, The Ohio State University

 
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 University of Tampa Brandi Jaber John Macaluso EVP, Chief Production Officer EVP, Chief Technology Officer 30 Lewis Benner EVP, Chief Credit Officer • Joined BayFirst in 2018; Prior to joining BayFirst, Mr. Benner served in leadership roles from multiple financial institutions • B.A. in Business Administration from Elizabethtown College • Joined BayFirst in 2018 • Held leadership positions at multiple institutions amassing expertise in many areas of community banking and business development • B.S. in Economics with an emphasis in Mathematics from University of Wisconsin-Madison Thomas Quale EVP, Chief Lending Officer and Market President • Joined BayFirst in Q4 2020 • 37 years of information technology experience • Served as CTO for Fiserv, Inc. • B.A. from University of South Florida

 
v3.24.2
Cover
Jul. 25, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 25, 2024
Entity Registrant Name BAYFIRST FINANCIAL CORP.
Entity Incorporation, State or Country Code FL
Entity File Number 001-41068
Entity Tax Identification Number 59-3665079
Entity Address, Address Line One 700 Central Avenue
Entity Address, City or Town St. Petersburg
Entity Address, State or Province FL
Entity Address, Postal Zip Code 33701
City Area Code 727
Local Phone Number 440-6848
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock
Trading Symbol BAFN
Security Exchange Name NASDAQ
Entity Emerging Growth Company true
Entity Ex Transition Period false
Entity Central Index Key 0001649739
Amendment Flag false
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