0001649739FALSE00016497392025-01-302025-01-30


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) January 30, 2025 

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 January 30, 2025, BayFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the fourth 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 fourth quarter 2024 conference call on Friday, January 31, 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 January 28, 2025, the Company’s Board of Directors declared a quarterly cash dividend of $0.08 per common share. The dividend will be payable March 15, 2025 to common shareholders of record as of March 1, 2025. The Company has continuously paid quarterly common stock cash dividends since 2016.
On January 28, 2025, the Board of Directors of BayFirst Financial Corp. (the “Company”) approved the Company’s 2025 Stock Repurchase Program (“Program”). The Program permits the Company to repurchase up to $2,000,000 of the Company’s issued and outstanding common stock. The Program will continue until the earlier of: (i) the date an aggregate of $2,000,000 of common stock has been repurchased; (ii) December 31, 2025; or the termination of the plan by the Board of Directors. A copy of the press release is attached to this Form 8-K as Exhibit 99.1.
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:1/30/2025
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 Fourth Quarter 2024 Results;
Earnings per common share increased to $2.11 for the quarter and $2.64 for the year; Net interest margin expanded by 26bps; Announced share buyback program
ST. PETERSBURG, FL. — January 30, 2025 — BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (the “Bank”) today reported net income of $9.8 million, or $2.27 per common share, or $2.11 per diluted common share, for the fourth quarter of 2024, an increase of 759.8% compared to $1.1 million, or $0.18 per common share and diluted common share, in the third quarter of 2024. Net income for the year ended December 31, 2024 was $12.6 million, or $2.68 per common share, or $2.62 per diluted common share, compared to $5.7 million, or $1.16 per common share, or $1.12 per diluted common share for the year ended December 31, 2023.
“We reported strong fourth quarter 2024 results, highlighted by quarterly net interest margin expansion and improved operating efficiencies,” stated Thomas G. Zernick, Chief Executive Officer. “Net income increased substantially compared to the preceding quarter, led by increases in net interest income, higher gain on sale of government guaranteed loans, and a gain on sale of two branch office properties, which was part of a sale-leaseback transaction. It’s worth noting that we continue to lease these two branch offices, resulting in no impact to our existing branch network. As a result of this transaction, we recorded an after-tax gain on sale of the properties of $8.7 million during the fourth quarter of 2024.”
“The strength of our community bank business model, which includes serving individuals, families, and small businesses, coupled with results from our government guaranteed banking division, continues to fuel our operating results,” Zernick continued. “Our government guaranteed banking team had a solid quarter, producing $107.8 million in new government guaranteed loans, which was an improvement compared to the third quarter of 2024. Our lenders remain focused on meeting loan origination targets, while also adhering to prudently conservative credit quality metrics.
“One of the highlights of the full year 2024 was the $1.1 million reduction in noninterest expenses compared to 2023. When we completed our near-term branch expansion plans in early 2024, we focused on reducing operating expenses by leveraging technology investments to better manage headcount and related incentive compensation, while at the same time growing the franchise. As we look to the new year, we will continue initiatives that are designed to further increase our efficiency, lower costs, and maximize the investments we've already made in technology and in our banking centers. While we are pleased with the progress during the fourth quarter and the year, we are excited to continue our forward momentum and further boost our results in 2025,” said Zernick.
“Additionally, the Board of Directors authorized a share repurchase program on January 28, 2025. We believe our stock offers an attractive investment and repurchasing stock is a means for building long-term shareholder value,” said Zernick. “We are confident about the growth of our Company, and we believe that when our shares are undervalued, repurchases represent a value-enhancing deployment of capital.”

BayFirst Financial Corp. Reports Fourth Quarter 2024 Results
January 30, 2025
Page 2

Fourth Quarter 2024 Performance Review
•In December 2024, the Company entered into a sale-leaseback agreement for two branch office properties for an aggregate cash purchase price of $15.0 million. As a result of this transaction, the Company recorded a pre-tax gain on sale of the properties of $11.6 million.
•The Company’s government guaranteed loan team originated $107.8 million in new loans during the fourth quarter of 2024, an increase from $94.4 million of loans produced in the previous quarter, and a decrease from $144.9 million of loans produced during the fourth quarter of 2023. Since the launch in 2022 of the Company's Bolt loan program, an SBA 7(a) loan product designed to expeditiously provide working capital loans of $150 thousand or less, the Company has originated 5,726 Bolt loans totaling $741.5 million, of which 495 Bolt loans totaling $64.8 million were originated during the fourth quarter. No newly originated government guaranteed loans were measured at fair value during the fourth quarter of 2024 versus $34 million in the third quarter of 2024 and $53 million in the fourth quarter of 2023.
•Loans held for investment increased by    $24.1 million, or 2.3%, during the fourth quarter of 2024 to $1.07 billion and increased $150.8 million, or 16.5%, over the past year. During the quarter, the Company originated $158.7 million of loans and sold $94.5 million of government guaranteed loan balances.
•Deposits increased $31.0 million, or 2.8%, during the fourth quarter of 2024 and increased $158.1 million, or 16.0%, over the past year to $1.14 billion.
•Book value and tangible book value at December 31, 2024 were $22.95 per common share, an increase from $20.86 at September 30, 2024.
•Net interest margin increased by 26 basis points to 3.60% in the fourth quarter of 2024, from 3.34% in the third quarter of 2024 and 12 basis points from 3.48%in the fourth quarter of 2023.
Results of Operations
Net Income
Net income was $9.8 million for the fourth quarter of 2024, compared to $1.1 million in the third quarter of 2024 and $1.7 million in the fourth quarter of 2023. The increase in net income for the fourth quarter of 2024 from the preceding quarter was primarily the result of the pre-tax gain on sale of two branch office properties of $11.6 million, which was part of a sale-leaseback transaction. Also contributing to higher earnings was an increase in net interest income of $1.2 million, an increase in gain on sale of government guaranteed loans of $2.3 million, and a decrease in noninterest expense of $1.7 million, partially offset by an increase in provision for credit losses of $1.4 million, a decrease in government guaranteed loan fair value gains of $3.5 million, and an increase in income tax expense on continuing operations of $2.9 million. The decrease in fair value gains on government guaranteed loans was the result of not measuring any newly originated government guaranteed loans at fair value in the fourth quarter. The increase in net income from the fourth quarter of 2023 was due to the pre-tax gain on sale of two branch office properties of $11.6 million, an increase in net interest income of $1.8 million, an increase in gain on sale of government guaranteed loans of $1.4 million, and lower noninterest expense of $3.1 million. This was partially offset by an increase in provision for credit losses of $1.8 million, a decrease in government guaranteed loan fair value gains of $4.8 million, and an increase in income tax expense on continuing operations of $2.6 million.
For the year ended December 31, 2024, net income was $12.6 million, an increase from $5.7 million from the year ended December 31, 2023. The increase was primarily due to the pre-tax gain on sale of two branch office properties of $11.6 million, an increase in net interest income of $1.6 million, higher gain on sale of government guaranteed loans of $3.7 million, and lower noninterest expense of $0.9 million, partially offset by higher provision for credit losses of $4.3 million, a decrease in government guaranteed fair value gains of $5.9 million and higher income tax expense on continuing operations of $2.2 million.
Net Interest Income and Net Interest Margin
Net interest income from continuing operations was $10.7 million in the fourth quarter of 2024, an increase from $9.4 million during the third quarter of 2024, and an increase from $8.9 million during the fourth quarter of 2023. The net

BayFirst Financial Corp. Reports Fourth Quarter 2024 Results
January 30, 2025
Page 3

interest margin increased by 26 basis points to 3.60% in the fourth quarter of 2024, from 3.34% in the third quarter of 2024 and 12 basis points from 3.48%in the fourth quarter of 2023.
The increase in net interest income from continuing operations during the fourth quarter of 2024, as compared to the third quarter of 2024, was mainly due to a decrease in interest cost on deposits of $1.0 million.
The increase in net interest income from continuing operations during the fourth quarter of 2024, as compared to the year ago quarter, was mainly due to an increase in loan interest income, including fees, of $3.0 million, partially offset by higher interest expense on deposits of $0.9 million.
Net interest income from continuing operations was $38.0 million for the year ended December 31, 2024, an increase from $36.4 million for the year ended December 31, 2023. The increase was mainly due to an increase in loan interest income, including fees, of $15.6 million, partially offset by an increase in interest expense on deposits of $12.1 million.
Noninterest Income
Noninterest income from continuing operations was $22.3 million for the fourth quarter of 2024, which was an increase from $12.3 million in the third quarter of 2024 and an increase from $14.7 million in the fourth quarter of 2023. The increase in the fourth quarter of 2024, as compared to the third quarter of 2024, was primarily the result of the pre-tax gain on sale of two branch office properties of $11.6 million, which was part of a sale-leaseback transaction, and an increase in gain on sale of government guaranteed loans of $2.3 million, partially offset by a decrease in government guaranteed loan fair value gains of $3.5 million. The decrease in fair value gains on government guaranteed loans was the result of not measuring any newly originated government guaranteed loans at fair value in the fourth quarter. The increase in the fourth quarter of 2024, as compared to the fourth quarter of 2023, was the result of the pre-tax gain on sale of two branch office properties of $11.6 million and an increase in gain on sale of government guaranteed loans of $1.4 million, partially offset by a decrease in fair value gains on government guaranteed loans of $4.8 million.
Noninterest income from continuing operations was $60.5 million for the year ended 2024, which was an increase from $49.8 million for the year ended 2023. The increase was primarily the result of the pre-tax gain on sale of two branch office properties of $11.6 million and an increase in gain on sale of government guaranteed loans of $3.7 million, partially offset by a decrease in fair value gains on government guaranteed loans of $5.9 million.
Noninterest Expense
Noninterest expense from continuing operations was $15.3 million in the fourth quarter of 2024 compared to $17.1 million in the third quarter of 2024 and $18.5 million in the fourth quarter of 2023. The decrease in the fourth quarter of 2024, as compared to the prior quarter, was primarily due to a decrease in compensation expense of $0.6 million and a decrease in loan origination and collection expense of $1.2 million. The decrease in the fourth quarter of 2024, as compared to the fourth quarter of 2023, was primarily due to lower compensation expense of $1.2 million and lower loan origination and collection expenses of $2.0 million.
Noninterest expense from continuing operations was $66.8 million for the year ended 2024 compared to $67.7 million for the year ended 2023. The decrease was the result of decreases in compensation expenses of $1.2 million, loan origination and collection expense of $1.0 million, and marketing and business development expenses of $1.3 million. The decreases were partially offset by increases in data processing expenses of $1.1 million, regulatory assessments of $0.4 million, and other noninterest expenses of $0.8 million.
Balance Sheet
Assets
Total assets increased $43.2 million, or 3.5%, during the fourth quarter of 2024 to $1.29 billion, mainly due to increases in loans held for investment of $24.1 million, cash and cash equivalents of $13.4 million, and right-of-use operating lease assets of $13.8 million, partially offset by a decrease in premises and equipment of $5.5 million. The increase in the right-of-use operating lease asset and decrease in premises and equipment was primarily the result of the fourth quarter 2024 sale-leaseback transaction. Compared to the end of the fourth quarter last year, total assets

BayFirst Financial Corp. Reports Fourth Quarter 2024 Results
January 30, 2025
Page 4

increased $170.5 million, or 15.3%, driven by growth of loans held for investment of $150.8 million, higher cash and cash equivalents of $19.4 million, and an increase in right-of-use operating lease asset of $13.4 million, partially offset by a decrease in premises and equipment of $5.6 million.
Loans
Loans held for investment increased $24.1 million, or 2.3%, during the fourth quarter of 2024 and $150.8 million, or 16.5%, over the past year to $1.07 billion, due to originations in both conventional community bank loans and government guaranteed loans, partially offset by government guaranteed loan sales.
Deposits
Deposits increased $31.0 million, or 2.8%, during the fourth quarter of 2024 and increased $158.1 million, or 16.0%, from the fourth quarter of 2023, ending December 31, 2024 at $1.14 billion. During the fourth quarter, there were increases in noninterest-bearing deposit account balances of $5.7 million, interest-bearing transaction account balances of $8.9 million, and savings and money market deposit account balances of $19.1 million, partially offset by a decrease in time deposit balances of $2.7 million. The majority of the deposits are generated through the community bank in the Tampa Bay/Sarasota area. At December 31, 2024, approximately 74% 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 December 31, 2024, September 30, 2024, and December 31, 2023, the Company had $112.1 million, $76.7 million, and $0.2 million, respectively, of brokered deposits.
Asset Quality
The Company recorded a provision for credit losses in the fourth quarter of $4.5 million, compared to provisions of $3.1 million for the third quarter of 2024 and $2.7 million during the fourth quarter of 2023.
The ratio of ACL to total loans held for investment at amortized cost was 1.54% at December 31, 2024, 1.48% as of September 30, 2024, and 1.64% as of December 31, 2023. The ratio of ACL to total loans held for investment at amortized cost, excluding government guaranteed loan balances, was 1.79% at December 31, 2024, 1.70% as of September 30, 2024, and 2.03% as of December 31, 2023. To date, we have not learned of a material loss to the Company as a result of the recent hurricanes. Therefore, additional loss reserves have not been deemed necessary.
Net charge-offs for the fourth quarter of 2024 were $3.4 million, which was an increase from $2.8 million for the third quarter of 2024 and $2.6 million in the fourth quarter of 2023. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 1.34% for the fourth quarter of 2024, compared to 1.16% in the third quarter of 2024 and 1.27% in the fourth quarter of 2023. Nonperforming assets to total assets were 1.50% as of December 31, 2024, compared to 1.38% as of September 30, 2024, and 0.92% as of December 31, 2023. Nonperforming assets, excluding government guaranteed loan balances, to total assets were 1.06% as of December 31, 2024, compared to 0.88% as of September 30, 2024, and 0.74% as of December 31, 2023. As we discussed in previous quarters, 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, 496 SBA 7(a) borrowers have been offered loan modification options. These efforts have helped and are expected to continue to help reduce the risk of loss.
Capital
The Bank’s Tier 1 leverage ratio was 8.82% as of December 31, 2024, compared to 8.41% as of September 30, 2024, and 9.38% as of December 31, 2023. The CET 1 and Tier 1 capital ratio to risk-weighted assets were 10.89% as of December 31, 2024, compared to 10.14% as of September 30, 2024, and 11.77% as of December 31, 2023. The total capital to risk-weighted assets ratio was 12.14% as of December 31, 2024, compared to 11.39% as of September 30, 2024, and 13.03% as of December 31, 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 December 31, 2024 was 9.17%, as compared to 9.33% at December 31, 2023. The Bank has robust liquidity resources which include

BayFirst Financial Corp. Reports Fourth Quarter 2024 Results
January 30, 2025
Page 5

secured borrowings available from the Federal Home Loan Bank, the Federal Reserve, and lines of credit with other financial institutions. As of December 31, 2024, the Bank had no borrowings from the FHLB, the FRB or other financial institutions. This compares to $10.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions at September 30, 2024 and December 31, 2023.
Recent Events
Share Repurchase Program
The Company announced that its Board of Directors has adopted a share repurchase program. Under the repurchase program, the Company may repurchase up to $2.0 million of the Company’s outstanding shares, over a period beginning on January 28, 2025, and continuing until the earlier of the completion of the repurchase, or December 31, 2025, or termination of the program by the Board of Directors.
First Quarter Common Stock Dividend. On January 28, 2025, BayFirst’s Board of Directors declared a first quarter 2025 cash dividend of $0.08 per common share. The dividend will be payable March 15, 2025 to common shareholders of record as of March 1, 2025. 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, January 31, 2025, at 9:00 a.m. ET to discuss its fourth 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 71006. 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 9th largest SBA 7(a) lender by number of units originated and 16th largest by dollar volume nationwide through the SBA's quarter ended December 31, 2024. As of December 31, 2024, BayFirst Financial Corp. had $1.29 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 Fourth Quarter 2024 Results
January 30, 2025
Page 6

BAYFIRST FINANCIAL CORP.
SELECTED FINANCIAL DATA (Unaudited)

At or for the three months ended
(Dollars in thousands, except for share data)12/31/20249/30/20246/30/20243/31/202412/31/2023
Balance sheet data:
Average loans held for investment at amortized cost$1,003,867 $948,528 $902,417 $855,040 $825,196 
Average total assets1,273,296 1,228,040 1,178,501 1,126,315 1,108,550 
Average common shareholders’ equity87,961 86,381 84,948 85,385 82,574 
Total loans held for investment1,066,559 1,042,445 1,008,314 934,868 915,726 
Total loans held for investment, excl gov’t gtd loan balances917,075 885,444 844,659 776,302 698,106 
Allowance for credit losses15,512 14,186 13,843 13,906 13,497 
Total assets1,288,297 1,245,099 1,217,869 1,144,194 1,117,766 
Common shareholders’ equity94,869 86,242 84,911 84,578 84,656 
Share data:
Basic earnings per common share$2.27 $0.18 $0.12 $0.11 $0.32 
Diluted earnings per common share2.11 0.18 0.12 0.11 0.32 
Dividends per common share0.08 0.08 0.08 0.08 0.08 
Book value per common share22.95 20.86 20.54 20.45 20.60 
Tangible book value per common share (1)
22.95 20.86 20.54 20.45 20.60 
Performance and capital ratios:
Return on average assets(2)
3.07 %0.37 %0.29 %0.29 %0.60 %
Return on average common equity(2)
42.71 %3.48 %2.26 %2.06 %6.37 %
Net interest margin(2)
3.60 %3.34 %3.43 %3.42 %3.48 %
Dividend payout ratio3.52 %43.98 %68.91 %75.27 %25.03 %
Asset quality ratios:
Net charge-offs$3,369 $2,757 $3,261 $3,652 $2,612 
Net charge-offs/avg loans held for investment at amortized cost(2)
1.34 %1.16 %1.45 %1.71 %1.27 %
Nonperforming loans(3)
$17,607 $15,489 $12,312 $9,877 $9,688 
Nonperforming loans (excluding gov't gtd balance)(3)
$13,570 $10,992 $8,054 $7,568 $8,264 
Nonperforming loans/total loans held for investment(3)
1.75 %1.62 %1.34 %1.15 %1.18 %
Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3)
1.35 %1.15 %0.87 %0.88 %1.00 %
ACL/Total loans held for investment at amortized cost1.54 %1.48 %1.50 %1.62 %1.64 %
ACL/Total loans held for investment at amortized cost, excl government guaranteed loans 1.79 %1.70 %1.73 %1.88 %2.03 %
Other Data:
Full-time equivalent employees299295302313305
Banking center offices1212121211
(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 Fourth Quarter 2024 Results
January 30, 2025
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)December 31, 2024September 30, 2024June 30, 2024March 31, 2024December 31, 2023
Total shareholders’ equity$110,920 $102,293 $100,962 $100,629 $100,707 
Less: Preferred stock liquidation preference(16,051)(16,051)(16,051)(16,051)(16,051)
Total equity available to common shareholders94,869 86,242 84,911 84,578 84,656 
Less: Goodwill— — — — — 
Tangible common shareholders' equity$94,869 $86,242 $84,911 $84,578 $84,656 
Common shares outstanding4,132,986 4,134,059 4,134,219 4,134,914 4,110,470 
Tangible book value per common share$22.95 $20.86 $20.54 $20.45 $20.60 


BayFirst Financial Corp. Reports Fourth Quarter 2024 Results
January 30, 2025
Page 8

BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)12/31/20249/30/202412/31/2023
Assets(Unaudited)(Unaudited)
Cash and due from banks$4,499 $4,708 $4,099 
Interest-bearing deposits in banks73,289 59,675 54,286 
Cash and cash equivalents77,788 64,383 58,385 
Time deposits in banks2,270 2,264 4,646 
Investment securities available for sale, at fair value (amortized cost $40,279, $41,104, and $43,597 at December 31, 2024, September 30, 2024, and December 31, 2023, respectively)
36,291 37,984 39,575 
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $12, $13, and $17 (fair value: $2,346, $2,321, and $2,263 at December 31, 2024, September 30, 2024, and December 31, 2023, respectively)
2,488 2,487 2,484 
Nonmarketable equity securities
4,526 4,997 4,770 
Government guaranteed loans held for sale— 595 — 
Government guaranteed loans held for investment, at fair value
60,833 86,441 91,508 
Loans held for investment, at amortized cost1,005,726 956,004 824,218 
Allowance for credit losses on loans(15,512)(14,186)(13,497)
    Net Loans held for investment, at amortized cost990,214 941,818 810,721 
Accrued interest receivable9,155 8,537 7,130 
Premises and equipment, net33,249 38,736 38,874 
Loan servicing rights16,534 15,966 14,959 
Right-of-use operating lease assets15,814 2,018 2,416 
Bank owned life insurance26,513 26,330 25,800 
Other real estate owned132 — — 
Other assets12,490 12,543 16,150 
Assets from discontinued operations— — 348 
Total assets$1,288,297 $1,245,099 $1,117,766 
Liabilities:
Noninterest-bearing deposits$101,743 $95,995 $93,708 
Interest-bearing transaction accounts256,793 247,923 259,422 
Savings and money market deposits474,425 455,297 373,000 
Time deposits310,268 312,981 259,008 
Total deposits1,143,229 1,112,196 985,138 
FHLB borrowings— 10,000 10,000 
Subordinated debentures5,9565,9545,949
Notes payable1,934 2,048 2,389 
Accrued interest payable1,036 1,114 882 
Operating lease liabilities14,510 2,271 2,619 
Deferred income tax liabilities301 1,488 482 
Accrued expenses and other liabilities10,411 7,735 8,980 
Liabilities from discontinued operations— — 620 
Total liabilities1,177,377 1,142,806 1,017,059 

BayFirst Financial Corp. Reports Fourth Quarter 2024 Results
January 30, 2025
Page 9

BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)12/31/20249/30/202412/31/2023
Shareholders’ equity:(Unaudited)(Unaudited)
Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at December 31, 2024, September 30, 2024, and December 31, 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 December 31, 2024, September 30, 2024, and December 31, 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 December 31, 2024, September 30, 2024, and December 31, 2023; aggregate liquidation preference of $6,446 at December 31, 2024, September 30, 2024, and December 31, 2023
6,446 6,446 6,446 
Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,132,986, 4,134,059, and 4,110,470 shares issued and outstanding at December 31, 2024, September 30, 2024, and December 31, 2023, respectively
54,764 54,780 54,521 
Accumulated other comprehensive loss, net(2,956)(2,312)(2,981)
Unearned compensation(752)(978)(958)
Retained earnings44,134 35,073 34,395 
Total shareholders’ equity110,920 102,293 100,707 
Total liabilities and shareholders’ equity$1,288,297 $1,245,099 $1,117,766 

BayFirst Financial Corp. Reports Fourth Quarter 2024 Results
January 30, 2025
Page 10

BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
For the Quarter EndedYear-to-Date
(Dollars in thousands, except per share data)12/31/20249/30/202412/31/202312/31/202412/31/2023
Interest income:(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Loans, including fees$20,747 $20,442 $17,714 $78,831 $63,189 
Interest-bearing deposits in banks and other1,007 1,000 1,140 3,979 5,328 
Total interest income21,754 21,442 18,854 82,810 68,517 
Interest expense:
Deposits10,600 11,609 9,719 42,872 30,795 
Other501 384 258 1,912 1,291 
Total interest expense11,101 11,993 9,977 44,784 32,086 
Net interest income10,653 9,449 8,877 38,026 36,431 
Provision for credit losses4,546 3,122 2,737 14,726 10,445 
Net interest income after provision for credit losses6,107 6,327 6,140 23,300 25,986 
Noninterest income:
Loan servicing income, net582 918 677 3,100 2,826 
Gain on sale of government guaranteed loans, net8,425 6,143 6,977 28,252 24,553 
Service charges and fees451 447 555 1,794 1,721 
Government guaranteed loans fair value gain, net(80)3,416 4,697 9,843 15,718 
Government guaranteed loan packaging fees773 903 1,588 4,105 3,664 
Gain on sale of premises and equipment11,649 — — 11,649 — 
Other noninterest income476 445 197 1,726 1,273 
Total noninterest income22,276 12,272 14,691 60,469 49,755 
Noninterest Expense:
Salaries and benefits7,351 7,878 7,446 31,063 30,973 
Bonus, commissions, and incentives1,074 1,141 2,211 4,445 5,726 
Occupancy and equipment1,217 1,248 1,150 4,848 4,758 
Data processing1,749 1,789 1,422 6,745 5,611 
Marketing and business development390 532 640 2,050 3,336 
Professional services803 853 1,070 3,882 3,657 
Loan origination and collection758 1,956 2,728 6,391 7,425 
Employee recruiting and development445 595 510 2,186 2,177 
Regulatory assessments379 309 266 1,249 881 
Other noninterest expense1,169 763 1,023 3,923 3,163 
Total noninterest expense15,335 17,064 18,466 66,782 67,707 
Income before taxes from continuing operations13,048 1,535 2,365 16,987 8,034 
Income tax expense from continuing operations3,272 398 704 4,315 2,119 
Net income from continuing operations9,776 1,137 1,661 12,672 5,915 
Loss from discontinued operations before income taxes— — (8)(92)(283)
Income tax benefit from discontinued operations— — (2)(23)(70)
Net loss from discontinued operations— — (6)(69)(213)
Net income9,776 1,137 1,655 12,603 5,702 
Preferred dividends385 385 341 1,541 965 
Net income available to common shareholders$9,391 $752 $1,314 $11,062 $4,737 

BayFirst Financial Corp. Reports Fourth Quarter 2024 Results
January 30, 2025
Page 11

BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME
For the Quarter EndedYear-to-Date
(Dollars in thousands, except per share data)12/31/20249/30/202412/31/202312/31/202412/31/2023
Basic earnings (loss) per common share:(Unaudited)(Unaudited)(Unaudited)(Unaudited)
Continuing operations$2.27 $0.18 $0.32 $2.69 $1.21 
Discontinued operations— — — (0.01)(0.05)
Basic earnings per common share$2.27 $0.18 $0.32 $2.68 $1.16 
Diluted earnings (loss) per common share:
Continuing operations$2.11 $0.18 $0.32 $2.64 $1.17 
Discontinued operations— — — (0.02)(0.05)
Diluted earnings per common share$2.11 $0.18 $0.32 $2.62 $1.12 
    


BayFirst Financial Corp. Reports Fourth Quarter 2024 Results
January 30, 2025
Page 12

Loan Composition
(Dollars in thousands)
12/31/20249/30/20246/30/20243/31/202412/31/2023
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
Real estate:
Residential
$330,870 $321,740 $304,234 $285,214 $264,126 
Commercial
305,721 292,026 288,185 273,227 293,595 
Construction and land
32,914 33,784 35,759 36,764 26,272 
Commercial and industrial
226,522 200,212 192,140 182,264 177,566 
Commercial and industrial - PPP
941 1,656 2,324 2,965 3,202 
Consumer and other
93,826 92,546 85,789 63,854 47,287 
Loans held for investment, at amortized cost, gross
990,794 941,964 908,431 844,288 812,048 
Deferred loan costs, net
19,499 18,060 17,299 16,233 14,707 
Discount on government guaranteed loans
(8,306)(7,880)(7,731)(7,674)(7,040)
Premium on loans purchased, net
3,739 3,860 4,173 4,252 4,503 
Loans held for investment, at amortized cost, net
1,005,726 956,004 922,172 857,099 824,218 
Government guaranteed loans held for investment, at fair value60,833 86,441 86,142 77,769 91,508 
Total loans held for investment, net
$1,066,559 $1,042,445 $1,008,314 $934,868 $915,726 

Nonperforming Assets (Unaudited)
(Dollars in thousands)12/31/20249/30/20246/30/20243/31/202412/31/2023
Nonperforming loans (government guaranteed balances), at amortized cost, gross
$4,037 $4,497 $4,258 $2,309 $1,424 
Nonperforming loans (unguaranteed balances), at amortized cost, gross
13,570 10,992 8,054 7,568 8,264 
Total nonperforming loans, at amortized cost, gross
17,607 15,489 12,312 9,877 9,688 
Nonperforming loans (government guaranteed balances), at fair value
— 24 341 94 — 
Nonperforming loans (unguaranteed balances), at fair value
1,490 1,535 1,284 729 648 
Total nonperforming loans, at fair value
1,490 1,559 1,625 823 648 
OREO
132 — 1,633 404 — 
Repossessed assets36 94 — — — 
Total nonperforming assets, gross
$19,265 $17,142 $15,570 $11,104 $10,336 
Nonperforming loans as a percentage of total loans held for investment(1)
1.75 %1.62 %1.34 %1.15 %1.18 %
Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1)
1.35 %1.15 %0.87 %0.88 %1.00 %
Nonperforming assets as a percentage of total assets
1.50 %1.38 %1.28 %0.97 %0.92 %
Nonperforming assets (excluding government guaranteed balances) to total assets
1.06 %0.88 %0.82 %0.70 %0.74 %
ACL to nonperforming loans(1)
88.10 %91.59 %112.44 %140.79 %139.32 %
ACL to nonperforming loans (excluding government guaranteed balances)(1)
114.31 %129.06 %171.88 %183.75 %163.32 %
(1) Excludes loans measured at fair value
Note: Transmitted on Globe Newswire on January 30, 2025, at 4:00 p.m. ET.

BayFirst Financial Corp. (NASDAQ:BAFN) 2024 – Fourth 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)$1.29 SBA ORIGINATION SBA 7(a) ORIGINATOR IN THE NATION BY UNITS (3) #9 ASSET GROWTH ASSET GROWTH SINCE DEC 31, 2019(2)143% (1) Deposit ranking of banks with assets less than $10B headquartered in the Tampa-Sarasota region as of September 30, 2024 from Uniform Bank Performance Reports (2) Financial data as of December 31, 2024 (3) As of SBA’s quarter ended December 31, 2024 (4) Forbes America’s Best in State Banks list published June 18, 2024 NET INTEREST MARGIN BASIS POINT IMPROVEMENT FROM THE PREVIOUS QUARTER26 DEPOSITS $158.1MILLION 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 143% since YE2019 Innovative technology driven bank planning for the future of banking Among the nation’s top SBA loan originators Deposit growth of 16% 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 September 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 banking platform • #9 SBA lender in units and #16 in dollars as of SBA's quarter ended 12/31/24 ◦ 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 BANKING

 
7 ATTRACTIVE LOAN COMPOSITION Composition of Loans Held for Investment as of December 31, 2024 26.2% 17.3% 14.0% 24.1% 6.0% 3.1% 0.5% 8.8% 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 $159 million during the quarter and $701 million for the year • Loans held for investment grew $24 million during the quarter and $151 million for the year

 
8 SOLID DEPOSIT COMPOSITION Deposit Portfolio Composition as of December 31, 2024 • Total Deposits grew $31 million for the quarter and $158 million during the year • Approximately 74% of deposits are insured as of December 31, 2024 • Minimal use of short-term brokered deposits ($112 million as of December 31, 2024) • Grew number of checking accounts by 16% YTD Noninterest Bearing Transaction, 8.9% Interest Bearing Transaction, 22.5% Savings & Money Market, 41.5% Time Deposits, 27.1% Deposit Highlights

 
9 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of December 31, 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 $3.0 million reduced Tangible Book Value by $0.72 as of December 31, 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 $12 thousand Asset-backed securities, $4,990 MBS: U.S. Government- sponsored enterprises, $7,130 CMO: U.S. Government- sponsored enterprises, $15,286 Corporate bonds, $8,885

 
10 2025 INITIATIVES Get ready to SOAR: • Strive for operational excellence • Optimize our technology platform to be more data driven • Accelerate our focus on business banking • Realign and diversify our sources of revenue

 
11 Q4 2024 For the Three Months Ended ($000s) 12/31/2024 9/30/2024 Increase/ (Decrease) 12/31/2023 Increase/ (Decrease) Interest income $ 21,754 $ 21,442 $ 312 $ 18,854 $ 2,900 Interest expense 11,101 11,993 (892) 9,977 1,124 Net interest income 10,653 9,449 1,204 8,877 1,776 Provision for credit losses 4,546 3,122 1,424 2,737 1,809 Noninterest income 22,276 12,272 10,004 14,691 7,585 Noninterest expense 15,335 17,064 (1,729) 18,466 (3,131) Income tax expense 3,272 398 2,874 704 2,568 Net income from continuing operations 9,776 1,137 8,639 1,661 8,115 Net income (loss) from discontinued operations — — — (6) 6 Net income 9,776 1,137 8,639 1,655 8,121 Preferred dividends 385 385 — 341 44 Net income available to common shareholders $ 9,391 $ 752 $ 8,639 $ 1,314 $ 8,077

 
12 Q4 2024 Year Ended December 31, ($000s) 2024 2023 Increase/ (Decrease) Interest income $ 82,810 $ 68,517 $ 14,293 Interest expense 44,784 32,086 12,698 Net interest income 38,026 36,431 1,595 Provision for credit losses 14,726 10,445 4,281 Noninterest income 60,469 49,755 10,714 Noninterest expense 66,782 67,707 (925) Income tax expense 4,315 2,119 2,196 Net income from continuing operations 12,672 5,915 6,757 Net income (loss) from discontinued operations (69) (213) 144 Net income 12,603 5,702 6,901 Preferred dividends 1,541 965 576 Net income available to common shareholders $ 11,062 $ 4,737 $ 6,325

 
13 Q4 2024 As of and For the Three Months Ended As of and For the Year Ended 12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023 Return on average assets(1) 3.07 % 0.37 % 0.60 % 1.05 % 0.54 % Return on average common equity(1) 42.71 % 3.48 % 6.37 % 12.84 % 5.87 % Tangible book value per common share $ 22.95 $ 20.86 $ 20.60 $ 22.95 $ 20.60 Diluted earnings per common share $ 2.11 $ 0.18 $ 0.32 $ 2.62 $ 1.12 Dividend payout ratio 3.52 % 43.98 % 25.03 % 11.96 % 27.70 % Total Capital (to risk-weighted assets)(2) 12.14 % 11.39 % 13.03 % 12.14 % 13.03 % Common Equity Tier 1 Capital (to risk- weighted assets)(2) 10.89 % 10.14 % 11.77 % 10.89 % 11.77 % Tier 1 Capital (to total assets)(2) 8.82 % 8.41 % 9.38 % 8.82 % 9.38 % Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) 1.35 % 1.15 % 1.00 % 1.35 % 1.00 % ACL/Total loans held for investment at amortized cost 1.54 % 1.48 % 1.64 % 1.54 % 1.64 % (1) Annualized (2) Capital Ratios are at the Bank (3) Excludes loans measured at fair value

 
14 $85 $85 $85 $86 $95 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 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) $1,118 $1,144 $1,218 $1,245 $1,288 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $916 $935 $1,008 $1,042 $1,067 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $0 $200 $400 $600 $800 $1,000 $1,200 $985 $1,007 $1,042 $1,112 $1,143 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400

 
15 SUMMARY OF KEY RATIOS ROAA (%)(1) ROATCE (%)(1) Net Interest Margin (%)(1) Noninterest Income / Total Revenue from Continuing Operations 0.60% 0.29% 0.29% 0.37% 0.34% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 0.00% 0.25% 0.50% 0.75% 6.37% 2.06% 2.26% 3.48% 4.93% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 0.00% 2.50% 5.00% 7.50% 3.48% 3.42% 3.43% 3.34% 3.60% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 62.33% 62.01% 55.93% 56.50% 49.94% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 20% 30% 40% 50% 60% 70% (1) Annualized (2) Excludes gain on sale of premises and equipment of $11,649 ($8,692, net of tax) related to sale-leaseback transaction (2) (2) (2)

 
16 TANGIBLE BOOK VALUE PER COMMON SHARE $20.60 $20.45 $20.54 $20.86 $22.95 Tangible Book Value Per Common Share Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $10 $13 $15 $18 $20 $23 $25

 
17 $145 $131 $99 $94 $108 849 809 603 553 543 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 $0 $25 $50 $75 $100 $125 $150 500 550 600 650 700 750 800 850 900 • Nationally ranked #9 in total SBA units and #16 in dollars for the SBA’s quarter ended December 31, 2024 • Strategic initiative to expand USDA business and industry lending program: a total of 3 experienced USDA lenders to support this effort • Total Q4 2024 government guaranteed loan production decreased 25.6% from Q4 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 $741.5 million, including $64.8 million in Q4 2024 ◦ New automation program launched through proprietary loan origination system PowerLOS and Open API, allowing increased volume and efficiency while limiting additional staff GOVERNMENT GUARANTEED BANKING Q4 2024 Highlights Government Guaranteed Loan Amount ($M) and Unit Volume

 
18 $1,252 $1,326 $1,358 $1,405 $1,483 $396 $375 $392 $395 $426 $856 $951 $966 $1,010 $1,057 HFI Government Guaranteed Loans (1) Government Guaranteed Loans Serviced for Others 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 Government Guaranteed Loans Guaranteed Loans HFI and Loans Serviced for Others ($M) (1) Excludes PPP loans

 
19 Quarter Ended ($000s) 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 SBA 7(a) $ 33,115 $ 29,967 $ 24,624 $ 26,982 $ 23,447 SBA 504 482 2,419 2,593 1,359 1,982 USDA 9,080 — — 800 17,450 Bolt 102,264 98,170 71,459 65,218 64,905 Total $ 144,941 $ 130,556 $ 98,676 $ 94,359 $ 107,784 GOVERNMENT GUARANTEED LOAN ORIGINATIONS

 
20 ASSET QUALITY Strong reserve well-positioned to withstand volatility in economic conditions 1.27% 1.71% 1.45% 1.16% 1.34% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 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 1.64% 1.62% 1.50% 1.48% 1.54% 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 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) 163.32% 183.75% 171.88% 129.06% 114.31% 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 0.0% 50.0% 100.0% 150.0% 200.0% 2.02% 1.76% 1.84% 1.92% 2.04% 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 0.0% 1.0% 2.0% 3.0% (1) Excludes government guaranteed balances (2) Excludes loans measured at fair value

 
21 Quarter ended ($000s) 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Ending balance $ 17,027 $ 14,345 $ 12,012 $ 10,100 $ 8,343 30-89 days past due 1,021 718 572 445 403 90+ days past due 258 170 137 234 186 Net charge-offs 896 770 576 305 394 Net charge-offs to average loans (annualized) 19.32 % 19.53 % 17.40 % 11.04 % 17.05 % UPGRADE CONSUMER LOANS Purchased unsecured consumer loans (no purchases after 2022: additional purchases are not planned)

 
22 COMMUNITY BANKING PERFORMANCE Q4 2024 Loan Production Summary: ▪ Loan production during the quarter was $51.0 million(1) ▪ Loans held for investment, including government guaranteed loans, increased by a net $24.8 million QoQ Q4 2024 Deposit Summary: ▪ Deposit balances increased $31.0 million QoQ ▪ Deposit portfolio decreased slightly by 1.1% in number of accounts (to 20,942 accounts totaling $1.14 billion) QoQ Customer Commitment: • Named the Best Bank in Florida in 2024(3) Q4 2024 Highlights Banking Center & Deposits ($ in 000s) Total Deposits # Branch Year Opened 12/31/2024 12/31/2023 12/31/2022 1 St. Petersburg(2) 2017 $ 323,294 $ 265,715 $ 246,813 2 Seminole 1999 156,344 143,073 131,257 3 Pinellas Park 2005 101,563 96,019 69,976 4 Downtown Sarasota 2018 179,252 164,594 159,302 5 Countryside 2018 59,228 59,172 66,827 6 West Tampa 2020 108,912 102,958 68,834 7 Belleair Bluffs 2021 52,134 38,531 31,011 8 West Bradenton 2022 60,011 54,307 21,050 9 Carrollwood 2023 51,082 39,341 — 10 Bee Ridge 2023 30,325 21,426 — 11 North Sarasota 2023 1,305 2 — 12 South Tamiami Trail 2024 19,779 — — Total Branches (12) $ 1,143,229 $ 985,138 $ 795,070 (1) Excludes government guaranteed loan production (2) St. Petersburg branch deposits include other deposits generated by Government Guaranteed Banking, Cash Management, Corporate Treasury, and Virtual (3) Forbes America’s Best in State Banks list published June 18, 2024

 
APPENDIX

 
24 OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,132,986 as of 1/24/25 Source: S&P Capital IQ Pro Vanguard Group Inc., 1.39% First Manhattan Co., 3.36% 1st & Main Growth Partners, 3.64% All Other Institutions, 5.78% Mark S. Berset, 6.79% All Other Directors/ Executive Officers, 7.49% Public/Other, 71.55%

 
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 25 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 $2,727 13 $210 2 BayFirst National Bank 1,112 12 93 3 Flagship Bank 568 6 95 4 Climate First 782 3 261 5 TCM Bank NA 264 1 264 6 Gulfside Bank 253 1 253 7 Central Bank 264 4 66 8 Waterfall Bank 221 1 221 9 Century Bank of Florida 92 1 92

 
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 26 LIQUIDITY SOURCES • Available Liquidity ◦ $80 million in cash and due from other banks ◦ $36 million in AFS investment securities • Off Balance Sheet Sources of Liquidity ◦ $185 million of unused, available borrowing capacity at the FHLB based on pledged loans ◦ $50 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 $81 million in brokered deposits (1) ◦ Up to $386 million in listing service deposits (1) (1) Based on Bank’s policy limits Data as of December 31, 2024

 
27 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 27 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

 
28 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 Susan Khayat EVP, Chief Production Officer EVP, Chief Credit Officer 28 Nick Smith EVP, Chief Human Resources Officer • Prior to joining the BayFirst HR team in January 2021, Nick served in leadership roles in the finance, aerospace, and pulp and paper industries. • BA from Murray State University and his MBA from University of Southern Indiana • 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 • Prior to joining BayFirst in 2025, Ms. Khayat served as Chief Credit Officer at Fieldpoint Private Bank and assisted Price Waterhouse Coopers with compliance risk reviews while contracted with MBO Partners in Atlanta and has served as Chief Risk Officer and Chief Credit Officer at other community banks and worked many years as a bank regulator with the US Department of the Treasury • Ms. Khayat received her BBA in Finance from Mercer University

 
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Cover
Jan. 30, 2025
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jan. 30, 2025
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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