0001649739FALSE00016497392024-10-242024-10-24


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) October 24, 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 October 24, 2024, BayFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the third 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 third quarter 2024 conference call on Friday, October 25, 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 October 22, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.08 per common share. The dividend will be payable December 15, 2024 to common shareholders of record as of December 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:10/24/2024
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 Third Quarter 2024 Results;
Third Quarter Net Income Increased 31.3% Over Prior Quarter
ST. PETERSBURG, FL. — October 24, 2024 — BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (the “Bank”) today reported net income of $1.1 million, or $0.18 per diluted common share, for the third quarter of 2024, an increase of 31.3% compared to $0.9 million, or $0.12 per diluted common share, in the second quarter of 2024.
“The highlight of the third quarter of 2024 was the 31% increase in net income compared to the preceding quarter, led by increases in net interest income and higher gain on sale of government guaranteed loans,” stated Thomas G. Zernick, Chief Executive Officer. “Our Government Guaranteed Lending team had another good quarter, producing $94.4 million in new government guaranteed loans; however, this volume was below both the second quarter of 2024 and the third quarter of 2023. Our team is focused on meeting loan origination targets, while also adhering to prudently conservative credit quality metrics. The result of these efforts is better profitability reflected in lower net charge-offs, lower expenses compared to the third quarter last year, and faster revenue growth than expense growth compared to the second quarter of this year. While we made progress this quarter, we have much more work to do to improve profitability and consistently demonstrate high performing characteristics.”
“Our community bank business model, which includes serving individuals, families and small businesses, continues to build franchise value in our great community bank in Tampa Bay,” Zernick continued. “We were honored to be named the best bank in Florida in 2024 by Forbes Magazine which is a testament to our incredible customers and employees.”
Third Quarter 2024 Performance Review
•The Company’s government guaranteed loan origination team originated $94.4 million in new government guaranteed loans during the third quarter of 2024, a slight decrease from $98.7 million of loans produced in the previous quarter, and a decrease from $155.9 million of loans produced during the third quarter of 2023. Demand was down in the third 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 while the Bank's Core SBA 7(a) loan program had $9 million of higher production in the third quarter compared to the second quarter and $5 million higher production compared to the third quarter of 2023. As we mentioned earlier this year, we have taken proactive steps to strengthen the credit characteristics of this business which has contributed to the decrease in origination of Bolt loans; however, the volume is still significant compared to the SBA 7(a) small loans originated by our peers. Since the launch in 2022, the Company has originated 5,231 Bolt loans totaling $676.6 million, of which 502 Bolt loans totaling $65.2 million were originated during the quarter.
•Loans held for investment increased by $34.1 million, or 3.4%, during the third quarter of 2024 to $1.04 billion and increased $164.0 million, or 18.7%, over the past year. During the quarter, the Company originated $166.7 million of loans and sold $84.0 million of government guaranteed loan balances. The majority of the loan growth was to individuals and businesses across the Tampa Bay and Sarasota regions.

BayFirst Financial Corp. Reports Third Quarter 2024 Results
October 24, 2024
Page 2

•Deposits increased $69.8 million, or 6.7%, during the third quarter of 2024 and increased $94.4 million, or 9.3%, over the past year to $1.11 billion.
•Book value and tangible book value at September 30, 2024 were $20.86 per common share, an increase from $20.54 at June 30, 2024.
•Net interest margin decreased by 9 basis points to 3.34% in the third quarter of 2024, from 3.43% in the second quarter of 2024. The decrease was attributable to a one-time unamortized premium recognition related to a purchased USDA loan which prepaid during the quarter. Excluding this item, the net interest margin would have been down 1 basis point compared to the second quarter.
Results of Operations
Net Income
Net income was $1.1 million for the third quarter of 2024, compared to $0.9 million in the second quarter of 2024 and $1.9 million in the third quarter of 2023. The increase in net income for the third quarter of 2024 from the preceding quarter was primarily the result of an increase in net interest income of $0.3 million and an increase in gain on sale of government guaranteed loans of $0.5 million partially offset by an increase in noninterest expense of $0.5 million. The decrease in net income from the third quarter of 2023 was due to a decrease in government guaranteed loan fair value gains of $1.1 million and a decrease in gain on sale of government guaranteed loans of $1.0 million, partially offset by an increase in net interest income of $1.1 million and lower compensation expense of $0.3 million.
In the first nine months of 2024, net income was $2.8 million, a decrease from $4.0 million for the first nine months of 2023. The decrease was primarily due to higher provision for credit losses of $2.5 million, a decrease in government guaranteed fair value gains of $1.1 million, and higher noninterest expense of $2.2 million, partially offset by higher gain on sale of government guaranteed loans of $2.3 million and higher government guaranteed loan packaging fees of $1.3 million.
Net Interest Income and Net Interest Margin
Net interest income from continuing operations was $9.4 million in the third quarter of 2024, an increase from $9.2 million during the second quarter of 2024, and an increase from $8.4 million during the third quarter of 2023. The net interest margin decreased by 9 basis points to 3.34% in the third quarter of 2024, from 3.43% in the second quarter of 2024.
The increase in net interest income from continuing operations during the third quarter of 2024, as compared to the second quarter of 2024, was mainly due to an increase in loan interest income, including fees, of $1.0 million and a decrease in the interest cost on borrowings of $0.4 million, partially offset by higher interest cost on deposits of $1.2 million. The increase was partially offset by $0.3 million due to a one-time recognition of unamortized premium related to a purchased USDA government guaranteed loan which prepaid during the third quarter of 2024.
The increase in net interest income from continuing operations during the third quarter of 2024, as compared to the year ago quarter, was mainly due to an increase in interest income of $3.8 million, partially offset by higher interest expense on deposits.
Net interest income from continuing operations was $27.4 million in the first nine months of 2024, a decrease from $27.6 million in the first nine months of 2023. The decrease was mainly due to an increase in interest expense of $11.6 million, partially offset by an increase in interest income, including fees, of $11.4 million.
Noninterest Income
Noninterest income from continuing operations was $12.3 million for the third quarter of 2024, which was an increase from $11.7 million in the second quarter of 2024 and a decrease from $14.7 million in the third quarter of 2023. The increase in the third quarter of 2024, as compared to the second quarter of 2024, was primarily the result of an increase in gain on sale of government guaranteed loans of $0.5 million. The decrease in the third quarter of 2024, as compared to the third quarter of 2023, was the result of decreases in gain on sale of government guaranteed loans of

BayFirst Financial Corp. Reports Third Quarter 2024 Results
October 24, 2024
Page 3

$1.0 million, fair value gains on government guaranteed loans of $1.1 million, government guaranteed loan packaging fees of $0.3 million, and other noninterest income of $0.2 million.
Noninterest income from continuing operations was $38.2 million for the first nine months of 2024, which was an increase from $35.1 million for the first nine months of 2023. The increase was primarily the result of increases in gain on sale of government guaranteed loans of $2.3 million and government guaranteed loan packaging fees of $1.3 million, partially offset by a decrease in fair value gains on government guaranteed loans of $1.1 million.
Noninterest Expense
Noninterest expense from continuing operations was $17.1 million in the third quarter of 2024 compared to $16.6 million in the second quarter of 2024 and $17.4 million in the third quarter of 2023. The increase in the third quarter of 2024, as compared to the prior quarter, was primarily due to an increase in compensation expense of $0.5 million. The decrease in the third quarter of 2024, as compared to the third quarter of 2023, was primarily due to lower compensation expense of $0.3 million and lower marketing and business development expenses of $0.4 million, partially offset by higher data processing expenses of $0.3 million.
Noninterest expense from continuing operations was $51.4 million for the first nine months of 2024 compared to $49.2 million for the first nine months of 2023. The increase was the result of increases in data processing expense of $0.8 million, loan origination and collection expense of $0.9 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 $1.0 million.
Balance Sheet
Assets
Total assets increased $27.2 million, or 2.2%, during the third quarter of 2024 to $1.25 billion, mainly due to an increase of $34.1 million in loans held for investment. Compared to the third quarter last year, total assets increased $111.1 million, or 9.8%, driven by growth of loans held for investment of $164.0 million, or 18.7%, offset by lower excess cash and cash equivalents of $48.2 million, or 42.8%, from the year ago quarter.
Loans
Loans held for investment increased $34.1 million, or 3.4%, during the third quarter of 2024 and $164.0 million, or 18.7%, over the past year to $1.04 billion, due to originations in both conventional community bank loans and government guaranteed loans, partially offset by government guaranteed loan sales.
Deposits
Deposits increased $69.8 million, or 6.7%, during the third quarter of 2024 and increased $94.4 million, or 9.3%, from the third quarter of 2023, ending the third quarter of 2024 at $1.11 billion. During the third quarter, there were increases in noninterest-bearing deposit account balances of $2.0 million, interest-bearing transaction account balances of $11.5 million, savings and money market deposit account balances of $35.0 million and time deposit balances of $21.4 million. The majority of the deposits are generated through the community bank. At September 30, 2024, approximately 78% of total deposits were insured by the FDIC. At times, the Bank has brokered time deposit and non-maturity deposit relationships available to diversify its funding sources. At September 30, 2024, June 30, 2024, and September 30, 2023, the Company had $76.9 million, $60.1 million, and $0.2 million, respectively, of brokered deposits.
Asset Quality
The Company recorded a provision for credit losses in the third quarter of $3.1 million, compared to provisions of $3.0 million for the second quarter of 2024 and $3.0 million during the third quarter of 2023.
The ratio of ACL to total loans held for investment at amortized cost was 1.48% at September 30, 2024, 1.50% as of June 30, 2024, and 1.68% as of September 30, 2023. The ratio of ACL to total loans held for investment at amortized

BayFirst Financial Corp. Reports Third Quarter 2024 Results
October 24, 2024
Page 4

cost, excluding government guaranteed loan balances, was 1.70% at September 30, 2024, 1.73% as of June 30, 2024, and 2.03% as of September 30, 2023.
Net charge-offs for the third quarter of 2024 were $2.8 million, which was a decrease from $3.3 million for the second quarter of 2024 and an increase from $2.2 million in the third quarter of 2023. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 1.16% for the third quarter of 2024, compared to 1.45% in the second quarter of 2024 and 1.13% in the third quarter of 2023. Nonperforming assets to total assets were 1.38% as of September 30, 2024, compared to 1.28% as of June 30, 2024, and 0.88% as of September 30, 2023. Nonperforming assets, excluding government guaranteed loan balances, to total assets were 0.88% as of September 30, 2024, compared to 0.82% as of June 30, 2024, and 0.71% as of September 30, 2023. As we discussed last quarter, the Bank developed an express modification program for SBA 7(a) borrowers to help those borrowers who are challenged with larger payments in the higher interest rate environment compared to interest rates at the time the loans were originated. To date 400 SBA 7(a) borrowers have been offered loan modification options. These efforts have helped and are expected to continue to help reduce net charge-offs.
Capital
The Bank’s Tier 1 leverage ratio was 8.41% as of September 30, 2024, compared to 8.73% as of June 30, 2024, and 9.16% as of September 30, 2023. The CET 1 and Tier 1 capital ratio to risk-weighted assets were 10.14% as of September 30, 2024, compared to 10.54% as of June 30, 2024, and 12.21% as of September 30, 2023. The total capital to risk-weighted assets ratio was 11.39% as of September 30, 2024, compared to 11.79% as of June 30, 2024, and 13.47% as of September 30, 2023.
Liquidity
The Bank's overall liquidity position remains strong and stable with liquidity in excess of internal minimums as stated by policy and monitored by management and the Board. The on-balance sheet liquidity ratio at September 30, 2024 was 8.62%, 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 September 30, 2024, the Bank had $10.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions. This compares to $55.0 million and $10.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions at June 30, 2024 and December 31, 2023, respectively.
Recent Events
Fourth Quarter Common Stock Dividend. On October 22, 2024, BayFirst’s Board of Directors declared a fourth quarter 2024 cash dividend of $0.08 per common share. The dividend will be payable December 15, 2024 to common shareholders of record as of December 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, October 25, 2024, at 9:00 a.m. ET to discuss its third 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 30458. 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. It was named the best bank in Florida in 2024, according to Forbes and was the 5th largest SBA 7(a) lender by number of units originated and 11th largest by dollar volume nationwide through the SBA's fiscal year ended September 30, 2024. Additionally, it

BayFirst Financial Corp. Reports Third Quarter 2024 Results
October 24, 2024
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was the 3rd largest SBA 7(a) lender in dollar volume in the 5 county Tampa Bay market for the SBA's 2024 fiscal year. As of September 30, 2024, BayFirst Financial Corp. had $1.25 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, weather events, 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 Third Quarter 2024 Results
October 24, 2024
Page 6

BAYFIRST FINANCIAL CORP.
SELECTED FINANCIAL DATA (Unaudited)

At or for the three months ended
(Dollars in thousands, except for share data)9/30/20246/30/20243/31/202412/31/20239/30/2023
Balance sheet data:
Average loans held for investment at amortized cost$948,535 $902,417 $855,040 $825,196 $789,167 
Average total assets1,228,040 1,178,501 1,126,315 1,108,550 1,088,517 
Average common shareholders’ equity86,381 84,948 85,385 82,574 81,067 
Total loans held for investment1,042,445 1,008,314 934,868 915,726 878,447 
Total loans held for investment, excl gov’t gtd loan balances885,444 844,659 776,302 698,106 687,141 
Allowance for credit losses14,186 13,843 13,906 13,497 13,365 
Total assets1,245,099 1,217,869 1,144,194 1,117,766 1,133,979 
Common shareholders’ equity86,242 84,911 84,578 84,656 82,725 
Share data:
Basic earnings per common share$0.18 $0.12 $0.11 $0.32 $0.42 
Diluted earnings per common share0.18 0.12 0.11 0.32 0.41 
Dividends per common share0.08 0.08 0.08 0.08 0.08 
Book value per common share20.86 20.54 20.45 20.60 20.12 
Tangible book value per common share (1)
20.86 20.54 20.45 20.60 20.12 
Performance and capital ratios:
Return on average assets(2)
0.37 %0.29 %0.29 %0.60 %0.71 %
Return on average common equity(2)
3.48 %2.26 %2.06 %6.37 %8.46 %
Net interest margin(2)
3.34 %3.43 %3.42 %3.48 %3.36 %
Dividend payout ratio43.98 %68.91 %75.27 %25.03 %19.15 %
Asset quality ratios:
Net charge-offs$2,757 $3,261 $3,652 $2,612 $2,234 
Net charge-offs/avg loans held for investment at amortized cost(2)
1.16 %1.45 %1.71 %1.27 %1.13 %
Nonperforming loans(3)
$15,489 $12,312 $9,877 $9,688 $9,518 
Nonperforming loans (excluding gov't gtd balance)(3)
$10,992 $8,054 $7,568 $8,264 $7,997 
Nonperforming loans/total loans held for investment(3)
1.62 %1.34 %1.15 %1.18 %1.20 %
Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3)
1.15 %0.87 %0.88 %1.00 %1.01 %
ACL/Total loans held for investment at amortized cost1.48 %1.50 %1.62 %1.64 %1.68 %
ACL/Total loans held for investment at amortized cost, excl government guaranteed loans 1.70 %1.73 %1.88 %2.03 %2.03 %
Other Data:
Full-time equivalent employees295302313305307
Banking center offices1212121110
(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 Third Quarter 2024 Results
October 24, 2024
Page 7

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)September 30, 2024June 30, 2024March 31, 2024December 31, 2023September 30, 2023
Total shareholders’ equity$102,293 $100,962 $100,629 $100,707 $94,165 
Less: Preferred stock liquidation preference(16,051)(16,051)(16,051)(16,051)(11,440)
Total equity available to common shareholders86,242 84,911 84,578 84,656 82,725 
Less: Goodwill— — — — — 
Tangible common shareholders' equity$86,242 $84,911 $84,578 $84,656 $82,725 
Common shares outstanding4,134,059 4,134,219 4,134,914 4,110,470 4,110,650 
Tangible book value per common share$20.86 $20.54 $20.45 $20.60 $20.12 


BayFirst Financial Corp. Reports Third Quarter 2024 Results
October 24, 2024
Page 8

BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)9/30/20246/30/20249/30/2023
Assets
Cash and due from banks$4,708 $4,226 $4,501 
Interest-bearing deposits in banks59,675 56,546 108,052 
Cash and cash equivalents64,383 60,772 112,553 
Time deposits in banks2,264 2,261 4,631 
Investment securities available for sale, at fair value (amortized cost $41,104, $42,885, and $44,569 at September 30, 2024, June 30, 2024, and September 30, 2023, respectively)
37,984 38,685 39,683 
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $13, $14, and $19 (fair value: $2,321, $2,273, and $2,282 at September 30, 2024, June 30, 2024, and September 30, 2023, respectively)
2,487 2,486 2,482 
Nonmarketable equity securities
4,997 7,132 4,250 
Government guaranteed loans held for sale595 — 1,855 
Government guaranteed loans held for investment, at fair value
86,441 86,142 84,178 
Loans held for investment, at amortized cost956,004 922,172 794,269 
Allowance for credit losses on loans(14,186)(13,843)(13,365)
    Net Loans held for investment, at amortized cost941,818 908,329 780,904 
Accrued interest receivable8,537 8,000 6,907 
Premises and equipment, net38,736 39,088 37,992 
Loan servicing rights15,966 15,770 14,216 
Deferred income tax assets— — 414 
Right-of-use operating lease assets2,018 2,305 2,594 
Bank owned life insurance26,330 26,150 25,630 
Other assets12,543 19,080 15,292 
Assets from discontinued operations— 36 398 
Total assets$1,245,099 $1,217,869 $1,133,979 
Liabilities:
Noninterest-bearing deposits$95,995 $94,040 $98,008 
Interest-bearing transaction accounts247,923 236,447 267,404 
Savings and money market deposits455,297 420,271 350,110 
Time deposits312,981 291,630 302,274 
Total deposits1,112,196 1,042,388 1,017,796 
FHLB borrowings10,00055,000 — 
Subordinated debentures5,9545,9525,947
Notes payable2,048 2,162 2,503 
Accrued interest payable1,114 1,172 632 
Operating lease liabilities2,271 2,497 2,812 
Deferred income tax liabilities1,488 1,000 — 
Accrued expenses and other liabilities7,735 6,565 9,409 
Liabilities from discontinued operations— 171 715 
Total liabilities1,142,806 1,116,907 1,039,814 

BayFirst Financial Corp. Reports Third Quarter 2024 Results
October 24, 2024
Page 9

BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands)9/30/20246/30/20249/30/2023
Shareholders’ equity:
Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at September 30, 2024, June 30, 2024, and September 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 September 30, 2024, June 30, 2024, and September 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 September 30, 2024 and June 30, 2024, and no shares issued and outstanding as of September 30, 2023; aggregate liquidation preference of $6,446 at September 30, 2024 and June 30, 2024
6,446 6,446 1,835 
Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,134,059, 4,134,219, and 4,110,650 shares issued and outstanding at September 30, 2024, June 30, 2024, and September 30, 2023, respectively
54,780 54,773 54,500 
Accumulated other comprehensive loss, net(2,312)(3,113)(3,621)
Unearned compensation(978)(1,081)(1,242)
Retained earnings35,073 34,653 33,409 
Total shareholders’ equity102,293 100,962 94,165 
Total liabilities and shareholders’ equity$1,245,099 $1,217,869 $1,133,979 

BayFirst Financial Corp. Reports Third Quarter 2024 Results
October 24, 2024
Page 10

BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the Quarter EndedYear-to-Date
(Dollars in thousands, except per share data)9/30/20246/30/20249/30/20239/30/20249/30/2023
Interest income:
Loans, including fees$20,442 $19,414 $16,032 $58,084 $45,475 
Interest-bearing deposits in banks and other1,000 1,013 1,588 2,972 4,188 
Total interest income21,442 20,427 17,620 61,056 49,663 
Interest expense:
Deposits11,609 10,448 9,055 32,272 21,076 
Other384 797 172 1,411 1,033 
Total interest expense11,993 11,245 9,227 33,683 22,109 
Net interest income9,449 9,182 8,393 27,373 27,554 
Provision for credit losses3,122 3,000 3,001 10,180 7,708 
Net interest income after provision for credit losses6,327 6,182 5,392 17,193 19,846 
Noninterest income:
Loan servicing income, net918 805 760 2,518 2,149 
Gain on sale of government guaranteed loans, net6,143 5,595 7,139 19,827 17,576 
Service charges and fees447 452 408 1,343 1,166 
Government guaranteed loans fair value gain, net3,416 3,202 4,543 9,923 11,021 
Government guaranteed loan packaging fees903 1,022 1,158 3,332 2,076 
Other noninterest income445 577 671 1,250 1,076 
Total noninterest income12,272 11,653 14,679 38,193 35,064 
Noninterest Expense:
Salaries and benefits7,878 7,829 7,912 23,712 23,527 
Bonus, commissions, and incentives1,141 659 1,406 3,371 3,515 
Occupancy and equipment1,248 1,273 1,262 3,631 3,608 
Data processing1,789 1,647 1,526 4,996 4,189 
Marketing and business development532 540 929 1,660 2,696 
Professional services853 877 816 3,079 2,587 
Loan origination and collection1,956 1,958 1,981 5,633 4,697 
Employee recruiting and development595 549 543 1,741 1,667 
Regulatory assessments309 279 284 870 615 
Other noninterest expense763 999 768 2,754 2,140 
Total noninterest expense17,064 16,610 17,427 51,447 49,241 
Income before taxes from continuing operations1,535 1,225 2,644 3,939 5,669 
Income tax expense from continuing operations398 349 674 1,043 1,415 
Net income from continuing operations1,137 876 1,970 2,896 4,254 
Loss from discontinued operations before income taxes— (14)(62)(92)(275)
Income tax benefit from discontinued operations— (4)(15)(23)(68)
Net loss from discontinued operations— (10)(47)(69)(207)
Net income1,137 866 1,923 2,827 4,047 
Preferred dividends385 386 208 1,156 624 
Net income available to common shareholders$752 $480 $1,715 $1,671 $3,423 

BayFirst Financial Corp. Reports Third Quarter 2024 Results
October 24, 2024
Page 11

BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the Quarter EndedYear-to-Date
(Dollars in thousands, except per share data)9/30/20246/30/20249/30/20239/30/20249/30/2023
Basic earnings (loss) per common share:
Continuing operations$0.18 $0.12 $0.43 $0.42 $0.89 
Discontinued operations— — (0.01)(0.02)(0.05)
Basic earnings per common share$0.18 $0.12 $0.42 $0.40 $0.84 
Diluted earnings (loss) per common share:
Continuing operations$0.18 $0.12 $0.42 $0.42 $0.88 
Discontinued operations— — (0.01)(0.02)(0.05)
Diluted earnings per common share$0.18 $0.12 $0.41 $0.40 $0.83 
    


BayFirst Financial Corp. Reports Third Quarter 2024 Results
October 24, 2024
Page 12

Loan Composition
(Dollars in thousands)
9/30/20246/30/20243/31/202412/31/20239/30/2023
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Real estate:
Residential
$321,740 $304,234 $285,214 $264,126 $248,973 
Commercial
292,026 288,185 273,227 293,595 280,620 
Construction and land
33,784 35,759 36,764 26,272 25,339 
Commercial and industrial
200,212 192,140 182,264 177,566 174,238 
Commercial and industrial - PPP
1,656 2,324 2,965 3,202 15,364 
Consumer and other
92,546 85,789 63,854 47,287 39,024 
Loans held for investment, at amortized cost, gross
941,964 908,431 844,288 812,048 783,558 
Deferred loan costs, net
18,060 17,299 16,233 14,707 12,928 
Discount on government guaranteed loans sold
(7,880)(7,731)(7,674)(7,040)(6,623)
Premium on loans purchased, net
3,860 4,173 4,252 4,503 4,406 
Loans held for investment, at amortized cost, net
956,004 922,172 857,099 824,218 794,269 
Government guaranteed loans held for investment, at fair value86,441 86,142 77,769 91,508 84,178 
Total loans held for investment, net
$1,042,445 $1,008,314 $934,868 $915,726 $878,447 

Nonperforming Assets (Unaudited)
(Dollars in thousands)9/30/20246/30/20243/31/202412/31/20239/30/2023
Nonperforming loans (government guaranteed balances), at amortized cost, gross
$4,497 $4,258 $2,309 $1,424 $1,521 
Nonperforming loans (unguaranteed balances), at amortized cost, gross
10,992 8,054 7,568 8,264 7,997 
Total nonperforming loans, at amortized cost, gross
15,489 12,312 9,877 9,688 9,518 
Nonperforming loans (government guaranteed balances), at fair value
24 341 94 — 96 
Nonperforming loans (unguaranteed balances), at fair value
1,535 1,284 729 648 363 
Total nonperforming loans, at fair value
1,559 1,625 823 648 459 
OREO
— 1,633 404 — — 
Repossessed assets94 — — — — 
Total nonperforming assets, gross
$17,142 $15,570 $11,104 $10,336 $9,977 
Nonperforming loans as a percentage of total loans held for investment(1)
1.62 %1.34 %1.15 %1.18 %1.20 %
Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1)
1.15 %0.87 %0.88 %1.00 %1.01 %
Nonperforming assets as a percentage of total assets
1.38 %1.28 %0.97 %0.92 %0.88 %
Nonperforming assets (excluding government guaranteed balances) to total assets
0.88 %0.82 %0.70 %0.74 %0.71 %
ACL to nonperforming loans(1)
91.59 %112.44 %140.79 %139.32 %128.60 %
ACL to nonperforming loans (excluding government guaranteed balances)(1)
129.06 %171.88 %183.75 %163.32 %152.29 %
(1) Excludes loans measured at fair value
Note: Transmitted on Globe Newswire on October 24, 2024, at 4:00 p.m. ET.

BayFirst Financial Corp. (NASDAQ:BAFN) 2024 – Third 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, weather events, 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)$1.25 SBA ORIGINATION SBA 7(a) ORIGINATOR IN THE NATION BY UNITS (3) #5 GROWTH ASSET GROWTH SINCE DEC 31, 2019(2)134% (1) Deposit ranking of banks with assets less than $10B headquartered in the Tampa-Sarasota region as of June 30, 2024 from Uniform Bank Performance Reports (2) Financial data as of September 30, 2024 (3) As of SBA’s fiscal year ended September 30, 2024 (4) Forbes America’s Best in State Banks list published June 18, 2024 INITIATIVES CORPORATE SOCIAL RESPONSIBILITY FOCUSED CSR DEPOSITS $94.4 MILLION IN TOTAL DEPOSIT GROWTH OVER THE PAST YEAR(2) COMMUNITY BANKING Named the Best Bank in Florida in 2024(4)

 
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 134% since YE2019 Innovative technology driven bank planning for the future of banking Among the nation’s top SBA loan originators Deposit growth of 9% over last twelve months Experienced management team with strong insider ownership of 14% ✔ ✔ ✔ ✔ ✔ ✔ ✔ 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 June 30, 2024 from Uniform Bank Performance Reports

 
55 ABOUT BAYFIRST FINANCIAL CORP. CURRENT BANKING CENTER LOCATION CONVENIENT AND ATTRACTIVE 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 • #5 in units and #11 SBA lender in dollars as of SBA's fiscal year ended 9/30/24 ◦ 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 GOVERNMENT GUARANTEED LENDING

 
7 ATTRACTIVE LOAN COMPOSITION Composition of Loans Held for Investment as of September 30, 2024 26.5% 18.2% 12.9% 23.4% 6.3% 3.2% 0.5% 9.0% 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 $167 million during the quarter • Loans held for investment grew $34 million during the quarter

 
8 SOLID DEPOSIT COMPOSITION Deposit Portfolio Composition as of September 30, 2024 • Total Deposits grew $127 million during the first nine months of 2024 • Approximately 78% of deposits are insured as of September 30, 2024 • Minimal use of short-term brokered deposits ($77 million as of September 30, 2024) • Grew number of checking accounts by 13% YTD Noninterest Bearing Transaction, 8.6% Interest Bearing Transaction, 22.3% Savings & Money Market, 40.9% Time Deposits, 28.2% Deposit Highlights

 
9 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of September 30, 2024 (fair market value, in thousands) Investment Securities Portfolio Details • Minimal exposure to market value losses due to modest investment securities portfolio (0.3% of total assets) • Other Comprehensive Loss of $2.3 million reduced Tangible Book Value by $0.56 as of September 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 $13 thousand Asset-backed securities, $5,327 MBS: U.S. Government- sponsored enterprises, $7,478 CMO: U.S. Government- sponsored enterprises, $16,287 Corporate bonds, $8,892

 
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 Q3 2024 For the Three Months Ended ($000s) 9/30/2024 6/30/2024 Increase/ (Decrease) 9/30/2023 Increase/ (Decrease) Interest income $ 21,442 $ 20,427 $ 1,015 $ 17,620 $ 3,822 Interest expense 11,993 11,245 748 9,227 2,766 Net interest income 9,449 9,182 267 8,393 1,056 Provision for credit losses 3,122 3,000 122 3,001 121 Noninterest income 12,272 11,653 619 14,679 (2,407) Noninterest expense 17,064 16,610 454 17,427 (363) Income tax expense 398 349 49 674 (276) Net income from continuing operations 1,137 876 261 1,970 (833) Net income (loss) from discontinued operations — (10) 10 (47) 47 Net income 1,137 866 271 1,923 (786) Preferred dividends 385 386 (1) 208 177 Net income available to common shareholders $ 752 $ 480 $ 272 $ 1,715 $ (963)

 
13 Q3 2024 Nine Months Ended September 30, ($000s) 2024 2023 Increase/ (Decrease) Interest income $ 61,056 $ 49,663 $ 11,393 Interest expense 33,683 22,109 11,574 Net interest income 27,373 27,554 (181) Provision for credit losses 10,180 7,708 2,472 Noninterest income 38,193 35,064 3,129 Noninterest expense 51,447 49,241 2,206 Income tax expense 1,043 1,415 (372) Net income from continuing operations 2,896 4,254 (1,358) Net income (loss) from discontinued operations (69) (207) 138 Net income 2,827 4,047 (1,220) Preferred dividends 1,156 624 532 Net income available to common shareholders $ 1,671 $ 3,423 $ (1,752)

 
14 Q3 2024 As of and For the Three Months Ended As of and For the Nine Months Ended 9/30/2024 6/30/2024 9/30/2023 9/30/2024 9/30/2023 Return on average assets(1) 0.37 % 0.29 % 0.71 % 0.32 % 0.52 % Return on average common equity(1) 3.48 % 2.26 % 8.46 % 2.60 % 5.70 % Tangible book value per common share $ 20.86 $ 20.54 $ 20.12 $ 20.86 $ 20.12 Diluted earnings per common share $ 0.18 $ 0.12 $ 0.41 $ 0.40 $ 0.83 Dividend payout ratio 43.98 % 68.91 % 19.15 % 59.36 % 28.72 % Total Capital (to risk-weighted assets) 11.39 % 11.79 % 13.47 % 11.39 % 13.47 % Common Equity Tier 1 Capital (to risk- weighted assets) 10.14 % 10.54 % 12.21 % 10.14 % 12.21 % Tier 1 Capital (to total assets) 8.41 % 8.73 % 9.16 % 8.41 % 9.16 % Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(2) 1.15 % 0.87 % 1.01 % 1.15 % 1.01 % ACL/Total loans held for investment at amortized cost 1.48 % 1.50 % 1.68 % 1.48 % 1.68 % (1) Annualized (2) Excludes loans measured at fair value

 
15 $83 $85 $85 $85 $86 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 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) $1,134 $1,118 $1,144 $1,218 $1,245 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $878 $916 $935 $1,008 $1,042 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $0 $200 $400 $600 $800 $1,000 $1,200 $1,018 $985 $1,007 $1,042 $1,112 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400

 
16 SUMMARY OF KEY RATIOS ROAA (%)(1) ROATCE (%)(1) Net Interest Margin (%)(1) Noninterest Income / Total Revenue from Continuing Operations 0.71% 0.60% 0.29% 0.29% 0.37% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 0.00% 0.50% 1.00% 8.46% 6.37% 2.06% 2.26% 3.48% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 0.00% 5.00% 10.00% 15.00% 3.36% 3.48% 3.42% 3.43% 3.34% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 63.62% 62.33% 62.01% 55.93% 56.50% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 20% 30% 40% 50% 60% 70% (1) Annualized

 
17 TANGIBLE BOOK VALUE PER COMMON SHARE $20.12 $20.60 $20.45 $20.54 $20.86 Tangible Book Value Per Common Share Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $10 $12 $14 $16 $18 $20 $22

 
18 $156 $145 $131 $99 $94 729 849 809 603 553 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 $0 $25 $50 $75 $100 $125 $150 $175 500 600 700 800 900 1,000 • Nationally ranked #5 in total SBA units and #11 in dollars for the SBA’s fiscal year ended September 30, 2024 • Strategic initiative to expand USDA business and industry lending program: a total of 3 experienced USDA lenders to support this effort • Total Q3 2024 government guaranteed loan production decreased 39.5% from Q3 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 $676.6 million, including $65.2 million in Q3 2024 ◦ New automation program launched through proprietary loan origination system PowerLOS and Open API, allowing increased volume and efficiency while limiting additional staff GOVERNMENT GUARANTEED LENDING Q3 2024 Highlights Government Guaranteed Loan Amount ($M) and Unit Volume

 
19 $1,199 $1,252 $1,326 $1,358 $1,405 $373 $396 $375 $392 $395 $826 $856 $951 $966 $1,010 HFI Government Guaranteed Loans (1) Government Guaranteed Loans Serviced for Others 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 $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) 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Core 7(a) $ 36,635 $ 33,115 $ 29,967 $ 24,624 $ 26,982 Core 504 14,571 482 2,419 2,593 1,359 Core USDA 19,800 9,080 — — 800 Bolt 84,905 102,264 98,170 71,459 65,218 Total $ 155,911 $ 144,941 $ 130,556 $ 98,676 $ 94,359 GOVERNMENT GUARANTEED LENDING

 
21 ASSET QUALITY Strong reserve well-positioned to withstand volatility in economic conditions 1.13% 1.27% 1.71% 1.45% 1.16% Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 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 1.68% 1.64% 1.62% 1.50% 1.48% 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 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) 152.29% 163.32% 183.75% 171.88% 129.06% 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 0.0% 50.0% 100.0% 150.0% 200.0% 1.56% 1.84% 2.02% 1.76% 1.84% 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 0.0% 1.0% 2.0% 3.0% (1) Excludes government guaranteed balances (2) Excludes loans measured at fair value

 
22 Quarter ended ($000s) 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 Ending balance $ 20,006 $ 17,027 $ 14,345 $ 12,012 $ 10,100 31-90 days past due 852 1,021 718 572 445 90+ days past due 351 258 170 137 234 Net charge-offs 755 896 770 576 305 Net charge-offs to average loans (annualized) 13.97 % 19.32 % 19.53 % 17.40 % 11.04 % UPGRADE CONSUMER LOANS Purchased unsecured consumer loans (no purchases after 2022: additional purchases are not planned)

 
23 COMMUNITY BANKING PERFORMANCE Q3 2024 Loan Production Summary: ▪ Loan production during the quarter was $72.3 million(1) ▪ Loans held for investment, including government guaranteed loans, increased by a net $34.8 million QoQ Q3 2024 Deposit Summary: ▪ Deposit balances increased $69.8 million QoQ ▪ Deposit portfolio increased by 2.5% in number of accounts (to 21,166 accounts totaling $1.11 billion) QoQ Customer Commitment: • Named the Best Bank in Florida in 2024(3) Q3 2024 Highlights Banking Center & Deposits ($ in 000s) Total Deposits # Branch Year Opened 9/30/2024 9/30/2023 9/30/2022 1 St. Petersburg(2) 2017 $ 298,588 $ 246,093 $ 251,956 2 Seminole 1999 156,094 147,513 138,761 3 Pinellas Park 2005 96,239 93,364 66,538 4 Downtown Sarasota 2018 168,508 186,905 170,616 5 Countryside 2018 63,063 72,752 67,068 6 West Tampa 2020 109,545 116,896 65,271 7 Belleair Bluffs 2021 47,962 43,457 23,017 8 West Bradenton 2022 63,143 57,036 2,509 9 Carrollwood 2023 52,181 36,684 — 10 Bee Ridge 2023 35,994 17,096 — 11 North Sarasota 2023 684 — — 12 South Tamiami Trail 2024 20,195 — — Total Branches (12) $ 1,112,196 $ 1,017,796 $ 785,736 (1) Excludes government guaranteed loan production (2) St. Petersburg branch deposits include other deposits generated by Government Guaranteed Lending, Cash Management, Corporate Treasury, and Virtual (3) Forbes America’s Best in State Banks list published June 18, 2024

 
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 4,134,219 as of 10/16/24 Source: S&P Capital IQ Pro Vanguard Group Inc., 1.39% First Manhattan Co., 3.36% 1st & Main Growth Partners, 3.63% All Other Institutions, 7.55% Mark S. Berset, 6.78% All Other Directors/ Executive Officers, 7.44% Public/Other, 69.84%

 
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 <$10BN and HQ in Tampa-Sarasota Region) Note: Deposit data as of June 30, 2024 Source: Uniform Bank Performance Reports Average Deposits Branches Deposits per Branch Rank Institution ($ millions) (No.) ($ millions) 1 Bank of Tampa $2,658 13 $204 2 BayFirst National Bank 1,042 12 87 3 Flagship Bank 575 6 96 4 Climate First 621 3 207 5 TCM Bank NA 276 1 276 6 Gulfside Bank 258 1 258 7 Central Bank 190 4 47 8 Waterfall Bank 188 1 188 9 Century Bank of Florida 95 1 95

 
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 28 LIQUIDITY SOURCES • Available Liquidity ◦ $67 million in cash and due from other banks ◦ $38 million in AFS investment securities • Off Balance Sheet Sources of Liquidity ◦ $171 million of unused, available borrowing capacity at the FHLB based on pledged loans ◦ $43 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 $110 million in brokered deposits (1) ◦ Up to $369 million in listing service deposits (1) (1) Based on Bank’s policy limits Data as of September 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 at 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

 
v3.24.3
Cover
Oct. 24, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Oct. 24, 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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