BayFirst Financial Corp 8-K, filed Oct 30, 2025
BayFirst Financial Corp. (BAFN)
8-K
2025-10-30
For: 2025-10-28
View Original
Added on
April 06, 2026
About this 8-K
BayFirst Financial Corp filed this 8-K on October 30, 2025, reporting on events of October 28, 2025.
Items reported
- Item 1.05: Material cybersecurity incident
- Item 2.02: Financial results
- Item 7.01: Regulation FD disclosure
- Item 9.01: Financial statements and exhibits
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 28, 2025
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission file number) | (IRS employer identification no.) | ||||||||||||
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| (Address of principal executive offices) | ||||||||||||||
( | ||||||||||||||
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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):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| 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 registered | Trading Symbol(s) | Name of exchange on which registered | ||||||
| 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 1.05. Cybersecurity Incidents
Upon learning of the incident, the third-party provider immediately launched an investigation, worked with BayFirst to understand the scope of the issue, and engaged the appropriate cybersecurity experts to assist. The third-party provider also promptly notified law enforcement. The incident was limited to the third-party provider’s environment. Based on the information available to date, personal information, including name, date of birth, and social security/tax identification numbers of some BayFirst customers were accessed without authorization. To date, there is no evidence of the misuse, or attempted misuse, of personal information as a result of this incident. Impacted customers will be notified directly of this incident.
BayFirst cannot quantify any material impact to its financial condition or operations, at this time.
Item 2.02. Results of Operations and Financial Condition
On October 30, 2025, BayFirst Financial Corp. (“Company”) issued a press release announcing its financial results for the third quarter of 2025. 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 2025 conference call on Friday, October 31, 2025 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 9.01. Financial Statements and Exhibits.
| (d) Exhibits | |||||||||||||||||
| Exhibit Number | Exhibit Name | Filed Herewith | |||||||||||||||
| 99.1 | * | ||||||||||||||||
| 99.2 | * | ||||||||||||||||
| 104 | * | ||||||||||||||||
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: | 10/30/2025 | |||||||
| By: | /s/ Scott J. McKim | |||||||
| Scott J. McKim | ||||||||
| Chief Financial Officer | ||||||||
| Contacts: | |||||
| Thomas G. Zernick | Scott J. McKim | ||||
| Chief Executive Officer | Chief Financial Officer | ||||
| 727.399.5680 | 727.521.7085 | ||||
BayFirst Financial Corp. Reports Third Quarter 2025 Results, Announces Restructuring Plan Including Exit From SBA 7(a) Lending
ST. PETERSBURG, FL. — October 30, 2025 — BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or “Company”), parent company of BayFirst National Bank (“Bank”) today reported a net loss of $18.9 million, or $4.66 per common share and diluted common share, for the third quarter of 2025, compared to a net loss of $1.2 million, or $0.39 per common share and diluted common share, in the second quarter of 2025. The current quarter’s net loss was driven by higher provision expense and $12.4 million in one-time charges, including a restructuring charge of $7.3 million, as a result of the exit from the SBA 7(a) lending business and the definitive agreement to sell SBA 7(a) loans to Banesco USA.
“Our third quarter results reflect a period of significant strategic transformation for the Company,” stated Thomas G. Zernick, Chief Executive Officer. “The quarter included significant one-time items related to our restructuring efforts, all of which represent decisive steps toward a stronger future.
“As we announced earlier this year, Management and the Board initiated a comprehensive strategic review aimed at derisking our balance sheet and positioning the Company for long-term growth and enhanced shareholder value. During the third quarter, we made meaningful progress on this initiative. In September, we announced the signing of a definitive agreement to sell a portion of the Bank's SBA 7(a) loan portfolio to Banesco USA for 97% of the retained loans' balances or a net loss of $5.1 million. In conjunction with this transaction, we will be exiting the SBA 7(a) lending business entirely. We are on track to close this transaction during the fourth quarter, contingent on the federal government reopening to complete the necessary approvals. While this represents a significant shift in our business model, we believe it is the right decision to reduce risk, strengthen our balance sheet, and better focus our resources on our core strategic priorities.
“We anticipate agreeing to additional actions with the OCC during the fourth quarter, focused on credit administration, strategic planning, and capital preservation. We take our regulatory obligations very seriously and are fully committed to meeting the highest operational standards,” Zernick continued. “Management has already taken significant steps to address credit quality issues, and we are dedicating substantial resources to strengthen our credit administration. This is our top priority and our team is committed to addressing the concerns outlined as quickly as possible. With the support of our Board of Directors, we have full confidence in our team to ensure these matters are resolved promptly, positioning BayFirst for improved operating results.
“Our focus remains firmly on what matters most: being the premier community bank in Tampa Bay. That means building real relationships with local individuals, families, and small businesses through reliable checking and savings accounts. These connections give us a solid, stable funding foundation while strengthening our footprint throughout Tampa Bay's dynamic market. In fact, more than 84% of our deposits are insured. This relationship-driven strategy positions us to deliver sustainable growth while maintaining the disciplined risk management and operational efficiency central to our long-term value creation.
“Though profitability has not met expectations, we are building a stronger, more resilient organization. Once restructuring is complete, we expect to return to profitability with a goal of positive return on assets of 40-70 basis points in 2026, with continued improvement in later years. Additionally, we will continue resolving problem loans
BayFirst Financial Corp. Reports Third Quarter 2025 Results
October 30, 2025
Page 2
and improving credit quality. With strong market opportunities and operational capabilities, we remain focused on executing our strategy and delivering long-term shareholder value,” Zernick concluded.
Third Quarter 2025 Performance Review
•Net interest margin was 3.61% in the third quarter of 2025, a decrease of 45 basis points from 4.06% in the second quarter of 2025 and an increase of 27 basis points from 3.34% in the third quarter of 2024. There was an adjustment of $0.6 million which was the result of a one-time reversal of accrued interest on loans that moved to nonaccrual status combined with the recognition of unamortized premiums of $0.4 million on a single USDA loan which was liquidated during the quarter.
•The Company’s government guaranteed loan team originated $47.0 million in new loans during the third quarter of 2025, a decrease from $106.4 million of loans produced in the previous quarter, and a decrease from $94.4 million of loans produced during the third quarter of 2024. In August 2025, the Company discontinued its Bolt loan program, an SBA 7(a) loan designed to provide small balance loans to small businesses, typically used for working capital. The discontinuance of the Bolt program contributed to the decrease in loan originations. Additionally, on September 29, 2025, the Company announced its plan to exit the SBA 7(a) lending business altogether and its intent to sell a portion of the SBA 7(a) loan portfolio.
•Loans held for investment decreased by $127.1 million, or 11.3%, during the third quarter of 2025 to $998.7 million and decreased $43.8 million, or 4.2%, over the past year. The decrease was primarily the result of the reclassification of $97.0 million of loans to held for sale, which was subsequently marked to the lower of cost or market. Additionally, during the quarter, the Company originated $75.0 million of loans and sold $51.9 million of government guaranteed loan balances.
•Deposits increased $7.7 million, or 0.7%, during the third quarter of 2025 and increased $59.3 million, or 5.3%, over the past year to $1.17 billion. The increase in deposits during the quarter was primarily due to increases in time deposit balances, partially offset by decreases in noninterest-bearing account balances, interest-bearing transaction account balances, and savings and money market account balances.
•Book value and tangible book value at September 30, 2025 were $17.90 per common share, a decrease from $22.30 at June 30, 2025.
Results of Operations
Net Income (Loss)
The Company had a net loss of $18.9 million for the third quarter of 2025, compared to a net loss of $1.2 million in the second quarter of 2025 and net income of $1.1 million in the third quarter of 2024. The change in the third quarter of 2025 from the preceding quarter was primarily the result of a decrease in net interest income of $1.1 million, an increase in provision for credit losses of $3.7 million, a decrease in noninterest income of $11.8 million, and an increase in noninterest expense of $7.7 million. This was partially offset by an increase in income tax benefit of $6.6 million. The change from the third quarter of 2024 was due to an increase in provision for credit losses of $7.8 million, a decrease in noninterest income of $13.3 million, and an increase in noninterest expense of $8.2 million, partially offset by an increase in net interest income of $1.8 million and a decrease in income tax expenses of $7.4 million.
In the first nine months of 2025, the Company had a net loss of $20.5 million, a decrease from net income of $2.8 million for the first nine months of 2024. The decrease was primarily due to an increase in provision for credit losses of $12.4 million, a decrease in noninterest income of $19.7 million, and an increase in noninterest expense of $7.1 million. This was partially offset by an increase in net interest income of $7.3 million and a decrease in income tax expense of $8.6 million.
Net Interest Income and Net Interest Margin
Net interest income from continuing operations was $11.3 million in the third quarter of 2025, a decrease from $12.3 million during the second quarter of 2025, and an increase from $9.4 million during the third quarter of 2024. The net
BayFirst Financial Corp. Reports Third Quarter 2025 Results
October 30, 2025
Page 3
interest margin was 3.61% in the third quarter of 2025, a decrease of 45 basis points from 4.06% in the second quarter of 2025 and an increase of 27 basis points from 3.34% in the third quarter of 2024.
The decrease in net interest income from continuing operations during the third quarter of 2025, as compared to the second quarter of 2025, was mainly due to a decrease in loan interest income, including fees, of
$0.6 million which was the result of a one-time reversal of accrued interest on loans that moved to nonaccrual status combined with the recognition of unamortized premium on a single USDA loan which was liquidated during the quarter.
The increase in net interest income from continuing operations during the third quarter of 2025, as compared to the year ago quarter, was mainly due to a decrease in interest expense on deposits of $2.0 million.
Net interest income from continuing operations was $34.6 million in the first nine months of 2025, an increase from $27.4 million in the first nine months of 2024. The increase was mainly due to an increase in loan interest income, including fees, of $3.8 million and a decrease in interest expense of $3.5 million.
Noninterest Income
Noninterest income from continuing operations was a negative $1.0 million for the third quarter of 2025, which was a decrease from $10.8 million in the second quarter of 2025 and a decrease from $12.3 million in the third quarter of 2024. The decrease in the third quarter of 2025, as compared to the second quarter of 2025, was primarily the result of a decrease in gain on sale of government guaranteed loans of $3.1 million, a decrease in government guaranteed loan fair value gains of $3.3 million, and the unfavorable fair value adjustment on held for sale loans of $5.1 million. The unfavorable fair value adjustment on held for sale loans was the result of the expected sale of a portion of the SBA 7(a) loan portfolio. The decrease in the third quarter of 2025, as compared to the third quarter of 2024, was the result of a decrease in gain on sale of government guaranteed loans of $3.1 million, a decrease in fair value gains on government guaranteed loans of $4.3 million, the unfavorable fair value adjustment on held for sale loans of $5.1 million, and a decrease in government guaranteed loan packaging fees of $0.5 million.
Noninterest income from continuing operations was $18.5 million for the first nine months of 2025, which was a decrease from $38.2 million for the first nine months of 2024. The decrease was primarily the result of a decrease in gain on sale of government guaranteed loans of $3.3 million, a decrease in government guaranteed loan fair value gains of $9.1 million, the unfavorable fair value adjustment on held for sale loans of $5.1 million, and a decrease in government guaranteed loan packaging fees of $1.7 million.
Noninterest Expense
Noninterest expense from continuing operations was $25.2 million in the third quarter of 2025 compared to $17.5 million in the second quarter of 2025 and $17.1 million in the third quarter of 2024. The increase in the third quarter of 2025, as compared to the prior quarter, was primarily due to the restructure charges of $7.3 million related to the comprehensive strategic review aimed at reducing expenses and derisking the bank's balance sheet which included the exit of the SBA 7(a) business. The increase in the third quarter of 2025, as compared to the third quarter of 2024, was primarily due to the restructure charges of $7.3 million and higher loan origination and collection expenses of $1.3 million.
Noninterest expense from continuing operations was $58.6 million for the first nine months of 2025 compared to $51.4 million for the first nine months of 2024. The increase was primarily the result of the restructure charges of $7.3 million.
Balance Sheet
Assets
Total assets increased $2.1 million, or 0.2%, during the third quarter of 2025 to $1.35 billion, mainly due to an increase in cash and cash equivalents of $41.3 million, partially offset by decreases in total loans (held for investment and held for sale) of $33.1 million and an increase in allowance for credit losses on loans of $7.4 million. Compared to the end of the third quarter last year, total assets increased $100.9 million, or 8.1%, driven primarily by growth in loans (held for investment and held for sale) of $49.7 million and cash and cash equivalents of $54.2 million.
BayFirst Financial Corp. Reports Third Quarter 2025 Results
October 30, 2025
Page 4
Loans
Loans held for investment decreased $127.1 million, or 11.3%, during the third quarter of 2025 and $43.8 million, or 4.2%, over the past year to $998.7 million, primarily due to the transfer of $97.0 million of loans to held for sale, which was subsequently marked to the lower of cost or market, as well as government guaranteed loan sales, partially offset by originations in both conventional community bank loans and government guaranteed loans.
Deposits
Deposits increased $7.7 million, or 0.7%, during the third quarter of 2025 and increased $59.3 million, or 5.3%, from the third quarter of 2024, ending September 30, 2025, at $1.17 billion. During the third quarter, there was an increase in time deposit balances of $53.0 million, partially offset by decreases in noninterest-bearing account balances of $3.8 million, interest-bearing transaction account balances of $27.9 million, and savings and money market account balances of $13.7 million. At September 30, 2025, approximately 84% 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, 2025, June 30, 2025, and September 30, 2024, the Company had $235.9 million, $186.7 million, and $76.9 million, respectively, of brokered deposits.
Asset Quality
The Company recorded a provision for credit losses in the third quarter of $10.9 million, compared to provisions of $7.3 million for the second quarter of 2025 and $3.1 million during the third quarter of 2024.
The ratio of allowance for credit losses on loans (ACL) to total loans held for investment at amortized cost was 2.61% at September 30, 2025, 1.65% as of June 30, 2025, and 1.48% as of September 30, 2024. The ratio of ACL to total loans held for investment at amortized cost, excluding government guaranteed loan balances, was 2.78% at September 30, 2025, 1.85% as of June 30, 2025, and 1.70% as of September 30, 2024. The increase in the ACL was the result of increases in nonperforming loans and continued economic uncertainty.
Net charge-offs for the third quarter of 2025 were $3.3 million, which was a decrease from $6.8 million for the second quarter of 2025 and an increase from $2.8 million for the third quarter of 2024. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 1.24% for the third quarter of 2025, compared to 2.60% in the second quarter of 2025 and 1.16% in the third quarter of 2024. Nonperforming assets were 1.97% of total assets as of September 30, 2025, compared to 1.79% as of June 30, 2025, and 1.38% as of September 30, 2024. Nonperforming assets, excluding government guaranteed loan balances, were 1.21% of total assets as of September 30, 2025, compared to 1.12% as of June 30, 2025, and 0.88% as of September 30, 2024.
Capital
The Bank’s Tier 1 leverage ratio was 6.64% as of September 30, 2025, compared to 8.11% as of June 30, 2025, and 8.41% as of September 30, 2024. The CET 1 and Tier 1 capital ratios to risk-weighted assets were 8.44% as of September 30, 2025, compared to 9.98% as of June 30, 2025, and 10.14% as of September 30, 2024. The total capital to risk-weighted assets ratio was 9.71% as of September 30, 2025, compared to 11.23% as of June 30, 2025, and 11.39% as of September 30, 2024.
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, 2025 was 11.31%, as compared to 9.17% at December 31, 2024. The Bank has 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, 2025, the Bank had $50.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions. This compared to $40.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions at June 30, 2025.
Recent Events
Exit from SBA 7(a) Business. BayFirst signed a definitive agreement to sell a portion of the SBA 7(a) loan portfolio to Banesco USA. In conjunction with this agreement, BayFirst will exit the SBA 7(a) lending business, and the
BayFirst Financial Corp. Reports Third Quarter 2025 Results
October 30, 2025
Page 5
majority of the SBA lending staff and support teams will be offered positions with Banesco USA. The transaction is expected to close in the fourth quarter of this year.
Share Repurchase Program. During the first quarter of 2025, 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. On October 28, 2025, the Company’s Board of Directors terminated the stock repurchase program effective immediately.
Conference Call
BayFirst will host a conference call on Friday, October 31, 2025, at 9:00 a.m. ET to discuss its third quarter results. Interested parties may listen to the call live under the Investor Relations tab at www.bayfirstfinancial.com or are invited to dial (800) 549-8228 to participate in the call using Conference ID 85147. 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. As of September 30, 2025, BayFirst Financial Corp. had $1.35 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; enforcement actions initiated by our regulators and their impact on our operations; 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.
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 the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
BayFirst Financial Corp. Reports Third Quarter 2025 Results
October 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) | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | ||||||||||||||||||||||||||||||
| Net income (loss) | $ | (18,902) | $ | (1,237) | $ | (335) | $ | 9,776 | $ | 1,137 | |||||||||||||||||||||||||
| Balance sheet data: | |||||||||||||||||||||||||||||||||||
| Average loans held for investment at amortized cost | 1,060,520 | 1,047,568 | 1,027,648 | 1,003,867 | 948,528 | ||||||||||||||||||||||||||||||
| Average total assets | 1,345,553 | 1,324,455 | 1,287,618 | 1,273,296 | 1,228,040 | ||||||||||||||||||||||||||||||
| Average common shareholders’ equity | 92,734 | 95,049 | 96,053 | 87,961 | 86,381 | ||||||||||||||||||||||||||||||
| Government guaranteed loans held for sale | 94,052 | — | — | — | 595 | ||||||||||||||||||||||||||||||
| Total loans held for investment | 998,683 | 1,125,799 | 1,084,817 | 1,066,559 | 1,042,445 | ||||||||||||||||||||||||||||||
| Total loans held for investment, excl gov’t gtd loan balances | 923,390 | 972,942 | 943,979 | 917,075 | 885,444 | ||||||||||||||||||||||||||||||
| Allowance for credit losses | 24,485 | 17,041 | 16,513 | 15,512 | 14,186 | ||||||||||||||||||||||||||||||
| Total assets | 1,345,978 | 1,343,867 | 1,291,957 | 1,288,297 | 1,245,099 | ||||||||||||||||||||||||||||||
| Total deposits | 1,171,457 | 1,163,796 | 1,128,267 | 1,143,229 | 1,112,196 | ||||||||||||||||||||||||||||||
| Common shareholders’ equity | 73,677 | 92,172 | 94,034 | 94,869 | 86,242 | ||||||||||||||||||||||||||||||
| Share data: | |||||||||||||||||||||||||||||||||||
| Basic earnings (loss) per common share | $ | (4.66) | $ | (0.39) | $ | (0.17) | $ | 2.27 | $ | 0.18 | |||||||||||||||||||||||||
| Diluted earnings (loss) per common share | (4.66) | (0.39) | (0.17) | 2.11 | 0.18 | ||||||||||||||||||||||||||||||
| Dividends per common share | — | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||||||||||||||||||||||
| Book value per common share | 17.90 | 22.30 | 22.77 | 22.95 | 20.86 | ||||||||||||||||||||||||||||||
Tangible book value per common share (1) | 17.90 | 22.30 | 22.77 | 22.95 | 20.86 | ||||||||||||||||||||||||||||||
| Performance ratios: | |||||||||||||||||||||||||||||||||||
Return on average assets(2) | (5.62) | % | (0.37) | % | (0.10) | % | 3.07 | % | 0.37 | % | |||||||||||||||||||||||||
Return on average common equity(2) | (83.19) | % | (6.83) | % | (3.00) | % | 42.71 | % | 3.48 | % | |||||||||||||||||||||||||
Net interest margin(2) | 3.61 | % | 4.06 | % | 3.77 | % | 3.60 | % | 3.34 | % | |||||||||||||||||||||||||
| Asset quality ratios: | |||||||||||||||||||||||||||||||||||
| Net charge-offs | $ | 3,294 | $ | 6,799 | $ | 3,301 | $ | 3,369 | $ | 2,757 | |||||||||||||||||||||||||
Net charge-offs/avg loans held for investment at amortized cost(2) | 1.24 | % | 2.60 | % | 1.28 | % | 1.34 | % | 1.16 | % | |||||||||||||||||||||||||
Nonperforming loans(3) | $ | 24,687 | $ | 21,665 | $ | 24,806 | $ | 17,607 | $ | 15,489 | |||||||||||||||||||||||||
Nonperforming loans (excluding gov't gtd balance)(3) | $ | 15,822 | $ | 14,187 | $ | 15,078 | $ | 13,570 | $ | 10,992 | |||||||||||||||||||||||||
Nonperforming loans/total loans held for investment(3) | 2.63 | % | 2.09 | % | 2.42 | % | 1.75 | % | 1.62 | % | |||||||||||||||||||||||||
Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) | 1.69 | % | 1.37 | % | 1.47 | % | 1.35 | % | 1.15 | % | |||||||||||||||||||||||||
| ACL/Total loans held for investment at amortized cost | 2.61 | % | 1.65 | % | 1.61 | % | 1.54 | % | 1.48 | % | |||||||||||||||||||||||||
| ACL/Total loans held for investment at amortized cost, excl government guaranteed loans | 2.78 | % | 1.85 | % | 1.84 | % | 1.79 | % | 1.70 | % | |||||||||||||||||||||||||
| Other Data: | |||||||||||||||||||||||||||||||||||
| Full-time equivalent employees | 237 | 300 | 305 | 299 | 295 | ||||||||||||||||||||||||||||||
| Banking center offices | 12 | 12 | 12 | 12 | 12 | ||||||||||||||||||||||||||||||
(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 2025 Results
October 30, 2025
Page 7
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 the calculation of the non-GAAP financial measures.
| Tangible Common Shareholders' Equity and Tangible Book Value Per Common Share (Unaudited) | ||||||||||||||||||||||||||||||||
| As of | ||||||||||||||||||||||||||||||||
| (Dollars in thousands, except for share data) | September 30, 2025 | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | |||||||||||||||||||||||||||
| Total shareholders’ equity | $ | 89,728 | $ | 108,223 | $ | 110,085 | $ | 110,920 | $ | 102,293 | ||||||||||||||||||||||
| Less: Preferred stock liquidation preference | (16,051) | (16,051) | (16,051) | (16,051) | (16,051) | |||||||||||||||||||||||||||
| Total equity available to common shareholders | 73,677 | 92,172 | 94,034 | 94,869 | 86,242 | |||||||||||||||||||||||||||
| Less: Goodwill | — | — | — | — | — | |||||||||||||||||||||||||||
| Tangible common shareholders' equity | $ | 73,677 | $ | 92,172 | $ | 94,034 | $ | 94,869 | $ | 86,242 | ||||||||||||||||||||||
| Common shares outstanding | 4,116,913 | 4,134,127 | 4,129,027 | 4,132,986 | 4,134,059 | |||||||||||||||||||||||||||
| Tangible book value per common share | $ | 17.90 | $ | 22.30 | $ | 22.77 | $ | 22.95 | $ | 20.86 | ||||||||||||||||||||||
BayFirst Financial Corp. Reports Third Quarter 2025 Results
October 30, 2025
Page 8
| BAYFIRST FINANCIAL CORP. | |||||||||||
| CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||||
| (Dollars in thousands) | 9/30/2025 | 6/30/2025 | 9/30/2024 | ||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 5,193 | $ | 6,142 | $ | 4,708 | |||||
| Interest-bearing deposits in banks | 113,357 | 71,157 | 59,675 | ||||||||
| Cash and cash equivalents | 118,550 | 77,299 | 64,383 | ||||||||
| Time deposits in banks | 1,284 | 1,280 | 2,264 | ||||||||
Investment securities available for sale, at fair value (amortized cost $32,614, $33,410, and $41,104 at September 30, 2025, June 30, 2025, and September 30, 2024, respectively) | 29,857 | 30,256 | 37,984 | ||||||||
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $9, $9, and $13 (fair value: $2,375, $2,369, and $2,321 at September 30, 2025, June 30, 2025, and September 30, 2024, respectively) | 2,491 | 2,491 | 2,487 | ||||||||
Nonmarketable equity securities | 7,028 | 6,551 | 4,997 | ||||||||
| Government guaranteed loans held for sale | 94,052 | — | 595 | ||||||||
Government guaranteed loans held for investment, at fair value | 61,780 | 90,687 | 86,441 | ||||||||
| Loans held for investment, at amortized cost | 936,903 | 1,035,112 | 956,004 | ||||||||
| Allowance for credit losses on loans | (24,485) | (17,041) | (14,186) | ||||||||
| Net Loans held for investment, at amortized cost | 912,418 | 1,018,071 | 941,818 | ||||||||
| Accrued interest receivable | 8,898 | 9,495 | 8,537 | ||||||||
| Premises and equipment, net | 31,695 | 32,407 | 38,736 | ||||||||
| Loan servicing rights | 15,663 | 16,074 | 15,966 | ||||||||
| Deferred income tax assets | 5,839 | — | — | ||||||||
| Right-of-use operating lease assets | 14,833 | 15,160 | 2,018 | ||||||||
| Bank owned life insurance | 27,071 | 26,881 | 26,330 | ||||||||
| Other real estate owned | 400 | 400 | — | ||||||||
| Other assets | 14,119 | 16,815 | 12,543 | ||||||||
| Total assets | $ | 1,345,978 | $ | 1,343,867 | $ | 1,245,099 | |||||
| Liabilities: | |||||||||||
| Noninterest-bearing deposit accounts | $ | 105,937 | $ | 109,698 | $ | 95,995 | |||||
| Interest-bearing transaction accounts | 210,336 | 238,215 | 247,923 | ||||||||
| Savings and money market deposit accounts | 479,262 | 493,005 | 455,297 | ||||||||
| Time deposits | 375,922 | 322,878 | 312,981 | ||||||||
| Total deposits | 1,171,457 | 1,163,796 | 1,112,196 | ||||||||
| FHLB borrowings | 50,000 | 40,000 | 10,000 | ||||||||
| Subordinated debentures | 5,961 | 5,959 | 5,954 | ||||||||
| Notes payable | 1,593 | 1,707 | 2,048 | ||||||||
| Accrued interest payable | 1,082 | 1,148 | 1,114 | ||||||||
| Operating lease liabilities | 13,554 | 13,819 | 2,271 | ||||||||
| Deferred income tax liabilities | — | 895 | 1,488 | ||||||||
| Accrued expenses and other liabilities | 12,603 | 8,320 | 7,735 | ||||||||
| Total liabilities | 1,256,250 | 1,235,644 | 1,142,806 | ||||||||
BayFirst Financial Corp. Reports Third Quarter 2025 Results
October 30, 2025
Page 9
| BAYFIRST FINANCIAL CORP. | |||||||||||
| CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||||
| (Dollars in thousands) | 9/30/2025 | 6/30/2025 | 9/30/2024 | ||||||||
| Shareholders’ equity: | |||||||||||
Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at September 30, 2025, June 30, 2025, and September 30, 2024; 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, 2025, June 30, 2025, and September 30, 2024; 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, 2025, June 30, 2025, and September 30, 2024; aggregate liquidation preference of $6,446 at September 30, 2025, June 30, 2025, and September 30, 2024 | 6,446 | 6,446 | 6,446 | ||||||||
Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,116,913, 4,134,127, and 4,134,059 shares issued and outstanding at September 30, 2025, June 30, 2025, and September 30, 2024, respectively | 54,764 | 54,739 | 54,780 | ||||||||
| Accumulated other comprehensive loss, net | (2,069) | (2,368) | (2,312) | ||||||||
| Unearned compensation | (538) | (1,006) | (978) | ||||||||
| Retained earnings | 21,841 | 41,128 | 35,073 | ||||||||
| Total shareholders’ equity | 89,728 | 108,223 | 102,293 | ||||||||
| Total liabilities and shareholders’ equity | $ | 1,345,978 | $ | 1,343,867 | $ | 1,245,099 | |||||
BayFirst Financial Corp. Reports Third Quarter 2025 Results
October 30, 2025
Page 10
| BAYFIRST FINANCIAL CORP. | |||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||||||||||||||||
| For the Quarter Ended | Year-to-Date | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | 9/30/2025 | 6/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 | ||||||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||||
| Loans, including fees | $ | 20,708 | $ | 21,459 | $ | 20,442 | $ | 61,918 | $ | 58,084 | |||||||||||||||||||
| Interest-bearing deposits in banks and other | 946 | 1,046 | 1,000 | 2,926 | 2,972 | ||||||||||||||||||||||||
| Total interest income | 21,654 | 22,505 | 21,442 | 64,844 | 61,056 | ||||||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||||
| Deposits | 9,576 | 9,282 | 11,609 | 28,289 | 32,272 | ||||||||||||||||||||||||
| Other | 798 | 875 | 384 | 1,928 | 1,411 | ||||||||||||||||||||||||
| Total interest expense | 10,374 | 10,157 | 11,993 | 30,217 | 33,683 | ||||||||||||||||||||||||
| Net interest income | 11,280 | 12,348 | 9,449 | 34,627 | 27,373 | ||||||||||||||||||||||||
| Provision for credit losses | 10,915 | 7,264 | 3,122 | 22,579 | 10,180 | ||||||||||||||||||||||||
| Net interest income after provision for credit losses | 365 | 5,084 | 6,327 | 12,048 | 17,193 | ||||||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||||
| Loan servicing income, net | 761 | 484 | 918 | 1,981 | 2,518 | ||||||||||||||||||||||||
| Gain on sale of government guaranteed loans, net | 3,063 | 6,136 | 6,143 | 16,526 | 19,827 | ||||||||||||||||||||||||
| Service charges and fees | 474 | 473 | 447 | 1,396 | 1,343 | ||||||||||||||||||||||||
| Government guaranteed loans fair value gain (loss), net | (882) | 2,442 | 3,416 | 805 | 9,923 | ||||||||||||||||||||||||
Fair value adjustment on loans held for sale | (5,096) | — | — | (5,096) | — | ||||||||||||||||||||||||
| Government guaranteed loan packaging fees | 380 | 577 | 903 | 1,673 | 3,332 | ||||||||||||||||||||||||
| Other noninterest income | 254 | 683 | 445 | 1,215 | 1,250 | ||||||||||||||||||||||||
| Total noninterest income | (1,046) | 10,795 | 12,272 | 18,500 | 38,193 | ||||||||||||||||||||||||
| Noninterest Expense: | |||||||||||||||||||||||||||||
| Salaries and benefits | 7,637 | 8,113 | 7,878 | 23,748 | 23,712 | ||||||||||||||||||||||||
| Bonus, commissions, and incentives | 530 | 262 | 1,141 | 863 | 3,371 | ||||||||||||||||||||||||
| Occupancy and equipment | 1,525 | 1,579 | 1,248 | 4,738 | 3,631 | ||||||||||||||||||||||||
| Data processing | 2,049 | 2,078 | 1,789 | 6,172 | 4,996 | ||||||||||||||||||||||||
| Marketing and business development | 262 | 403 | 532 | 1,152 | 1,660 | ||||||||||||||||||||||||
| Professional services | 859 | 782 | 853 | 2,373 | 3,079 | ||||||||||||||||||||||||
| Loan origination and collection | 3,273 | 2,558 | 1,956 | 6,866 | 5,633 | ||||||||||||||||||||||||
| Employee recruiting and development | 364 | 462 | 595 | 1,443 | 1,741 | ||||||||||||||||||||||||
| Regulatory assessments | 484 | 352 | 309 | 1,175 | 870 | ||||||||||||||||||||||||
| Restructure charges | 7,262 | — | — | 7,262 | — | ||||||||||||||||||||||||
| Other noninterest expense | 970 | 939 | 763 | 2,764 | 2,754 | ||||||||||||||||||||||||
| Total noninterest expense | 25,215 | 17,528 | 17,064 | 58,556 | 51,447 | ||||||||||||||||||||||||
| Income (loss) before taxes from continuing operations | (25,896) | (1,649) | 1,535 | (28,008) | 3,939 | ||||||||||||||||||||||||
| Income tax expense (benefit) from continuing operations | (6,994) | (412) | 398 | (7,534) | 1,043 | ||||||||||||||||||||||||
| Net income (loss) from continuing operations | (18,902) | (1,237) | 1,137 | (20,474) | 2,896 | ||||||||||||||||||||||||
| Loss from discontinued operations before income taxes | — | — | — | — | (92) | ||||||||||||||||||||||||
| Income tax benefit from discontinued operations | — | — | — | — | (23) | ||||||||||||||||||||||||
| Net loss from discontinued operations | — | — | — | — | (69) | ||||||||||||||||||||||||
| Net income (loss) | (18,902) | (1,237) | 1,137 | (20,474) | 2,827 | ||||||||||||||||||||||||
| Preferred dividends | 385 | 386 | 385 | 1,156 | 1,156 | ||||||||||||||||||||||||
Net income available to (loss attributable to) common shareholders | $ | (19,287) | $ | (1,623) | $ | 752 | $ | (21,630) | $ | 1,671 | |||||||||||||||||||
BayFirst Financial Corp. Reports Third Quarter 2025 Results
October 30, 2025
Page 11
| BAYFIRST FINANCIAL CORP. | |||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||||||||||||||||
| For the Quarter Ended | Year-to-Date | ||||||||||||||||||||||||||||
| (Dollars in thousands, except per share data) | 9/30/2025 | 6/30/2025 | 9/30/2024 | 9/30/2025 | 9/30/2024 | ||||||||||||||||||||||||
| Basic earnings (loss) per common share: | |||||||||||||||||||||||||||||
| Continuing operations | $ | (4.66) | $ | (0.39) | $ | 0.18 | $ | (5.23) | $ | 0.42 | |||||||||||||||||||
| Discontinued operations | — | — | — | — | (0.02) | ||||||||||||||||||||||||
| Basic earnings (loss) per common share | $ | (4.66) | $ | (0.39) | $ | 0.18 | $ | (5.23) | $ | 0.40 | |||||||||||||||||||
| Diluted earnings (loss) per common share: | |||||||||||||||||||||||||||||
| Continuing operations | $ | (4.66) | $ | (0.39) | $ | 0.18 | $ | (5.23) | $ | 0.42 | |||||||||||||||||||
| Discontinued operations | — | — | — | — | (0.02) | ||||||||||||||||||||||||
| Diluted earnings (loss) per common share | $ | (4.66) | $ | (0.39) | $ | 0.18 | $ | (5.23) | $ | 0.40 | |||||||||||||||||||
BayFirst Financial Corp. Reports Third Quarter 2025 Results
October 30, 2025
Page 12
Loan Composition
(Dollars in thousands) | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | ||||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Residential | $ | 364,020 | $ | 356,559 | $ | 339,886 | $ | 330,870 | $ | 321,740 | |||||||||||||||||||
Commercial | 231,039 | 292,923 | 296,351 | 305,721 | 292,026 | ||||||||||||||||||||||||
Construction and land | 43,700 | 53,187 | 46,740 | 32,914 | 33,784 | ||||||||||||||||||||||||
Commercial and industrial | 194,654 | 223,239 | 234,384 | 226,522 | 200,212 | ||||||||||||||||||||||||
Commercial and industrial - PPP | 13 | 191 | 457 | 941 | 1,656 | ||||||||||||||||||||||||
Consumer and other | 90,946 | 93,333 | 93,889 | 93,826 | 92,546 | ||||||||||||||||||||||||
Loans held for investment, at amortized cost, gross | 924,372 | 1,019,432 | 1,011,707 | 990,794 | 941,964 | ||||||||||||||||||||||||
Deferred loan costs, net | 17,096 | 21,118 | 20,521 | 19,499 | 18,060 | ||||||||||||||||||||||||
Discount on government guaranteed loans | (7,506) | (8,780) | (8,727) | (8,306) | (7,880) | ||||||||||||||||||||||||
Premium on loans purchased, net | 2,941 | 3,342 | 3,415 | 3,739 | 3,860 | ||||||||||||||||||||||||
Loans held for investment, at amortized cost, net | 936,903 | 1,035,112 | 1,026,916 | 1,005,726 | 956,004 | ||||||||||||||||||||||||
| Government guaranteed loans held for investment, at fair value | 61,780 | 90,687 | 57,901 | 60,833 | 86,441 | ||||||||||||||||||||||||
Total loans held for investment, net | $ | 998,683 | $ | 1,125,799 | $ | 1,084,817 | $ | 1,066,559 | $ | 1,042,445 | |||||||||||||||||||
Nonperforming Assets (Unaudited)
| (Dollars in thousands) | 9/30/2025 | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | ||||||||||||||||||||||||
Nonperforming loans (government guaranteed balances), at amortized cost, gross | $ | 8,865 | $ | 7,478 | $ | 9,728 | $ | 4,037 | $ | 4,497 | |||||||||||||||||||
Nonperforming loans (unguaranteed balances), at amortized cost, gross | 15,822 | 14,187 | 15,078 | 13,570 | 10,992 | ||||||||||||||||||||||||
Total nonperforming loans, at amortized cost, gross | 24,687 | 21,665 | 24,806 | 17,607 | 15,489 | ||||||||||||||||||||||||
Nonperforming loans (government guaranteed balances), at fair value | — | 502 | 507 | — | 24 | ||||||||||||||||||||||||
Nonperforming loans (unguaranteed balances), at fair value | 1,385 | 1,430 | 1,419 | 1,490 | 1,535 | ||||||||||||||||||||||||
Total nonperforming loans, at fair value | 1,385 | 1,932 | 1,926 | 1,490 | 1,559 | ||||||||||||||||||||||||
OREO | 400 | 400 | 132 | 132 | — | ||||||||||||||||||||||||
| Repossessed assets | 32 | — | 36 | 36 | 94 | ||||||||||||||||||||||||
Total nonperforming assets, gross | $ | 26,504 | $ | 23,997 | $ | 26,900 | $ | 19,265 | $ | 17,142 | |||||||||||||||||||
Nonperforming loans as a percentage of total loans held for investment(1) | 2.63 | % | 2.09 | % | 2.42 | % | 1.75 | % | 1.62 | % | |||||||||||||||||||
Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1) | 1.69 | % | 1.37 | % | 1.47 | % | 1.35 | % | 1.15 | % | |||||||||||||||||||
Nonperforming assets as a percentage of total assets | 1.97 | % | 1.79 | % | 2.08 | % | 1.50 | % | 1.38 | % | |||||||||||||||||||
Nonperforming assets (excluding government guaranteed balances) to total assets | 1.21 | % | 1.12 | % | 1.22 | % | 1.06 | % | 0.88 | % | |||||||||||||||||||
ACL to nonperforming loans(1) | 99.18 | % | 78.66 | % | 66.57 | % | 88.10 | % | 91.59 | % | |||||||||||||||||||
ACL to nonperforming loans (excluding government guaranteed balances)(1) | 154.75 | % | 120.12 | % | 109.52 | % | 114.31 | % | 129.06 | % | |||||||||||||||||||
(1) Excludes loans measured at fair value
Note: Transmitted on Globe Newswire on October 30, 2025, at 4:00 p.m. ET.
BayFirst Financial Corp. (NASDAQ:BAFN) 2025 – Third Quarter Results (Unaudited)
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; enforcement actions initiated by our regulators and their impact on our operations; 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)$1.35 ASSET GROWTH ASSET GROWTH SINCE DEC 31, 2020(2)47% (1) Deposit ranking of banks with assets less than $10B headquartered in the Tampa Bay-Sarasota region as of June 30, 2025 from Uniform Bank Performance Reports (2) Financial data as of September 30, 2025 NET INTEREST MARGIN BASIS POINT IMPROVEMENT FROM THE PREVIOUS YEAR(2)27 DEPOSITS $59.3 MILLION IN TOTAL DEPOSIT GROWTH OVER THE PAST YEAR(2) COMMUNITY BANKING Expanded treasury management services through new platform and additional treasury management associates
4 ABOUT BAYFIRST FINANCIAL CORP. CURRENT BANKING CENTER LOCATION CONVENIENT AND ATTRACTIVE BANKING CENTER FRANCHISE IN TAMPA BAY-SARASOTA REGION
5 ATTRACTIVE LOAN COMPOSITION Composition of Loans Held for Investment as of September 30, 2025 24.9% 17.9% 18.9% 15.1% 8.9% 4.4% 0.7% 9.2% 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 $75 million during the quarter • Total loans (held for sale and held for investment) grew $50 million over the last twelve months
6 SOLID DEPOSIT COMPOSITION Deposit Portfolio Balance Composition as of September 30, 2025 • Total Deposits increased $8 million for the quarter and $59 million over the last twelve months • Approximately 84% of deposits were insured as of September 30, 2025 • Short-term brokered deposits were $236 million as of September 30, 2025 • Grew number of checking accounts by 6% YTD Noninterest Bearing Transaction, 9.0% Interest Bearing Transaction, 18.0% Savings & Money Market, 40.9% Time Deposits, 32.1% Deposit Highlights
7 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of September 30, 2025 (fair market value, in thousands) Investment Securities Portfolio Details • Minimal exposure to market value losses due to modest investment securities portfolio (2% of total assets) • Other Comprehensive Loss of $2.1 million reduced Tangible Book Value by $0.50 as of September 30, 2025 ◦ 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 $9 thousand Asset-backed securities, $2,930 MBS: U.S. Government- sponsored enterprises, $4,966 CMO: U.S. Government- sponsored enterprises, $18,080 Corporate bonds, $3,881
8 QUARTERLY EARNINGS For the Three Months Ended ($000s) 9/30/2025 6/30/2025 Increase/ (Decrease) 9/30/2024 Increase/ (Decrease) Interest income $ 21,654 $ 22,505 $ (851) $ 21,442 $ 212 Interest expense 10,374 10,157 217 11,993 (1,619) Net interest income 11,280 12,348 (1,068) 9,449 1,831 Provision for credit losses 10,915 7,264 3,651 3,122 7,793 Noninterest income (1,046) 10,795 (11,841) 12,272 (13,318) Noninterest expense 25,215 17,528 7,687 17,064 8,151 Income tax expense (benefit) (6,994) (412) (6,582) 398 (7,392) Net income (loss) from continuing operations (18,902) (1,237) (17,665) 1,137 (20,039) Net income (loss) from discontinued operations — — — — — Net income (loss) (18,902) (1,237) (17,665) 1,137 (20,039) Preferred dividends 385 386 (1) 385 — Net income available to (loss attributable to) common shareholders $ (19,287) $ (1,623) $ (17,664) $ 752 $ (20,039)
9 Nine Months Ended September 30, ($000s) 2025 2024 Increase/ (Decrease) Interest income $ 64,844 $ 61,056 $ 3,788 Interest expense 30,217 33,683 (3,466) Net interest income 34,627 27,373 7,254 Provision for credit losses 22,579 10,180 12,399 Noninterest income 18,500 38,193 (19,693) Noninterest expense 58,556 51,447 7,109 Income tax expense (7,534) 1,043 (8,577) Net income (loss) from continuing operations (20,474) 2,896 (23,370) Net income (loss) from discontinued operations — (69) 69 Net income (loss) (20,474) 2,827 (23,301) Preferred dividends 1,156 1,156 — Net income available to (loss attributable to) common shareholders $ (21,630) $ 1,671 $ (23,301) YEAR TO DATE EARNINGS
10 KEY METRICS As of and For the Three Months Ended As of and For the Nine Months Ended 9/30/2025 6/30/2025 9/30/2024 9/30/2025 9/30/2024 Return on average assets(1) (5.62) % (0.37) % 0.37 % (2.07) % 0.32 % Return on average common equity(1) (83.19) % (6.83) % 3.48 % (30.49) % 2.60 % Tangible book value per common share $ 17.90 $ 22.30 $ 20.86 $ 17.90 $ 20.86 Diluted earnings (loss) per common share $ (4.66) $ (0.39) $ 0.18 $ (5.23) $ 0.40 Total Capital (to risk-weighted assets)(2) 9.71 % 11.23 % 11.39 % 9.71 % 11.39 % Common Equity Tier 1 Capital (to risk- weighted assets)(2) 8.44 % 9.98 % 10.14 % 8.44 % 10.14 % Tier 1 Capital (to total assets)(2) 6.64 % 8.11 % 8.41 % 6.64 % 8.41 % Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) 1.69 % 1.37 % 1.15 % 1.69 % 1.15 % ACL/Total loans held for investment at amortized cost 2.61 % 1.65 % 1.48 % 2.61 % 1.48 % (1) Annualized (2) Capital Ratios are at the Bank (3) Excludes loans measured at fair value
11 QTD INTEREST MARGIN 3.34% 3.60% 3.77% 4.06% 3.61% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 0.0% 2.0% 4.0% 6.0% Net Interest Margin Loan Yield 7.84% 7.64% 7.37% 7.67% 7.20% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 0.0% 2.5% 5.0% 7.5% 10.0% Cost of Funds Net Interest Margin ($ in millions) 4.68% 4.19% 3.76% 3.75% 3.71% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 0.0% 2.0% 4.0% 6.0% $9.4 $10.7 $11.0 $12.3 $11.3 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $0.0 $5.0 $10.0 $15.0
12 $86 $95 $94 $92 $74 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $20 $40 $60 $80 $100 $120 Strong balance sheet on track for continued growth STRATEGIC GROWTH Total Assets ($M) Total Loans HFI ($M) Total Deposits ($M) Tangible Common Equity ($M) $1,245 $1,288 $1,292 $1,344 $1,346 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,042 $1,067 $1,085 $1,126 $999 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $0 $200 $400 $600 $800 $1,000 $1,200 $1,112 $1,143 $1,128 $1,164 $1,171 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400
13 SUMMARY OF KEY RATIOS ROAA (%)(1) ROATCE (%)(1) Net Interest Margin (%)(1) Noninterest Income / Total Revenue from Continuing Operations 0.37% 0.34% (0.10)% (0.37)% (5.62)% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 (7.50)% (5.00)% (2.50)% 0.00% 2.50% 3.48% 4.93% (3.00)% (6.83)% (83.19)% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 (100.00)% (75.00)% (50.00)% (25.00)% 0.00% 25.00% 3.34% 3.60% 3.77% 4.06% 3.61% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 56.50% 49.94% 44.31% 46.64% (10.22)% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 (20)% (10)% 0% 10% 20% 30% 40% 50% 60% (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)
14 TANGIBLE BOOK VALUE PER COMMON SHARE $20.86 $22.95 $22.77 $22.30 $17.90 Tangible Book Value Per Common Share Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $10 $13 $15 $18 $20 $23 $25
15 COMMUNITY BANKING PERFORMANCE Q3 2025 Loan Production Summary: ▪ Loan production during the quarter was $27.9 million(1) ▪ Total Loans (held for sale and held for investment) decreased by a net $33.1 million QoQ Q3 2025 Deposit Summary: ▪ Deposit balances increased $7.7 million QoQ ▪ Deposit portfolio increased by 1.8% in number of accounts (to 21,575 accounts totaling $1.17 billion) QoQ Treasury Management: • Expanded treasury management services through new platform and additional treasury management associates Q3 2025 Highlights Banking Center & Deposits ($ in 000s) Total Deposits # Branch Year Opened 9/30/2025 9/30/2024 9/30/2023 1 St. Petersburg(2) 2017 $ 462,417 $ 298,588 $ 246,093 2 Seminole 1999 167,711 156,094 147,513 3 Pinellas Park 2005 94,133 96,239 93,364 4 Downtown Sarasota 2018 100,570 168,508 186,905 5 Countryside 2018 54,795 63,063 72,752 6 West Tampa 2020 97,367 109,545 116,896 7 Belleair Bluffs 2021 52,686 47,962 43,457 8 West Bradenton 2022 54,660 63,143 57,036 9 Carrollwood 2023 34,560 52,181 36,684 10 Bee Ridge 2023 28,559 35,994 17,096 11 North Sarasota 2023 2,426 684 — 12 South Tamiami Trail 2024 21,573 20,195 — Total Branches (12) $ 1,171,457 $ 1,112,196 $ 1,017,796 (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
16 $44.0 $26.8 $29.0 $36.2 $15.8 $13.3 $13.3 $15.5 $6.4 $1.4 $3.7 $5.6 $0.5 $3.1 $8.2 $11.3 $5.3 $6.1 $5.0 $2.6 Real estate - residential (1) Real estate - commercial Commercial and industrial Consumer and other Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 $0 $10 $20 $30 $40 $50 Community Banking New Loan Production Community Banking New Loan Production ($M) (1) Includes residential first mortgages, home equity lines of credit, and home equity closed loans
17 $621.5 $645.3 $675.1 $698.0 $700.7 $331.5 $340.2 $355.9 $378.2 $380.9 $178.4 $189.0 $200.8 $202.9 $200.0 $29.1 $30.7 $31.1 $28.5 $32.3$82.4 $85.4 $87.2 $88.5 $87.4 Real estate - residential (1) Real estate - commercial Commercial and industrial Consumer and other 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 $200 $300 $400 $500 $600 $700 Community Banking Loan Balances Community Banking Loan Balances ($M) (1) Includes residential first mortgages, home equity lines of credit, and home equity closed loans
18 $20 $44 $58 $69 2022 2023 2024 YTD 2025 $— $10 $20 $30 $40 $50 $60 $70 $80 • With our new treasury management platform operational, we can now service small and medium sized businesses as well as large businesses through our two online platforms • Lockbox services implementation finalized in February, providing another service for our customers • The Bank expanded its treasury management staff to four with the addition of two new experienced associates • Created products and services specifically for Associations in February 2025 TREASURY MANAGEMENT SERVICES Treasury Management Services Treasury Management Fee Income Growth ($000s)
19 ASSET QUALITY 1.16% 1.34% 1.28% 2.60% 1.24% Q3 2024 Q4 2024 Q1 2025 Q2 2025 Q3 2025 0.0% 1.0% 2.0% 3.0% Net charge-offs/Total average loans HFI at amortized cost ACL/Total loans held for investment at amortized cost 1.48% 1.54% 1.61% 1.65% 2.61% 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 0.0% 1.0% 2.0% 3.0% ACL to nonperforming loans(1)(2) Past due and Nonaccrual loans to Total loans HFI at amortized cost(1)(2) 129.06% 114.31% 109.52% 120.12% 154.75% 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 0.0% 50.0% 100.0% 150.0% 200.0% 2.09% 2.16% 2.51% 2.30% 3.07% 9/30/2024 12/31/2024 3/31/2025 6/30/2025 9/30/2025 0.0% 1.0% 2.0% 3.0% 4.0% (1) Excludes government guaranteed balances (2) Excludes loans measured at fair value
20 APPENDIX
21 OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,111,583 as of 10/22/25 Source: S&P Capital IQ Pro Vanguard Group Inc., 2.17% First Manhattan Co., 3.05% Banc Funds Company LLC, 3.05% All Other Institutions, 7.12% Mark S. Berset, 6.97% All Other Directors/ Executive Officers, 7.91% Public/Other, 69.73%
22 DEPOSITS IN TAMPA BAY-SARASOTA REGION Total Deposits (Total Assets <$10BN and HQ in Tampa Bay-Sarasota Region) Note: Deposit data as of June 30, 2025 Source: Uniform Bank Performance Reports Average Deposits Branches Deposits per Branch Rank Institution ($ millions) (No.) ($ millions) 1 Bank of Tampa $2,725 13 $210 2 BayFirst National Bank 1,164 12 97 3 Climate First 1,006 3 335 4 Flagship Bank 601 6 100 5 Waterfall Bank 306 1 306 6 Central Bank 294 4 73 7 TCM Bank NA 286 1 286 8 Gulfside Bank 284 2 142 9 Century Bank of Florida 88 1 88
23 LIQUIDITY SOURCES • Available Liquidity ◦ $120 million in cash and due from other banks ◦ $30 million in AFS investment securities • Off Balance Sheet Sources of Liquidity ◦ $146 million of unused, available borrowing capacity at the FHLB based on pledged loans ◦ $56 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 $33 million in brokered deposits (1) ◦ Up to $403 million in listing service deposits (1) (1) Based on Bank’s policy limits Data as of September 30, 2025
24 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 & Director of BayFirst and the Bank 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
25 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 Administrative Officer EVP, Chief Credit Officer 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