8-K
BayFirst Financial Corp. (BAFN)
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) April 25, 2024
BAYFIRST FINANCIAL CORP.
(Exact name of registrant as specified in its charter)
| Florida | 001-41068 | 59-3665079 |
|---|---|---|
| (State or other jurisdiction<br><br>of incorporation) | (Commission<br><br>file number) | (IRS employer<br><br>identification no.) |
| 700 Central Avenue | 33701 | |
| 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 registered | Trading Symbol(s) | Name of exchange on which registered |
| Common Stock | BAFN | The 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 April 25, 2024, BayFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the first 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 first quarter 2024 conference call on Friday, April 26, 2024 at 9:00 am Eastern Time, and from time to time thereafter in presentations about the Company’s operations and performance. The Company may use the Conference Call & Webcast Presentation, possibly with modifications, in presentations to current and potential investors, analysts, lenders, business partners, acquisition candidates, customers, employees and others with an interest in the Company and its business.
A copy of the Conference Call & Webcast Presentation is furnished as Exhibit 99.2 to this report and incorporated here 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 April 23, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.08 per common share. The dividend will be payable June 15, 2024 to common shareholders of record as of June 1, 2024. The Company has continuously paid quarterly common stock cash dividends since 2016.
Item 9.01 Financial Statements and Exhibits.
| (d) Exhibits | ||
|---|---|---|
| Exhibit Number | Exhibit Name | Filed Herewith |
| 99.1 | BayFirst Financial Corp. Press Release datedApril25, 2024 | * |
| 99.2 | BayFirst Financial Corp. First Quarter 2024 Investor Presentation | * |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | * |
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: | 4/25/2024 |
| By: | /s/ Scott J. McKim |
| Scott J. McKim | |
| Chief Financial Officer |
Document
| Contacts: | |
|---|---|
| Thomas G. Zernick | Scott J. McKim |
| Chief Executive Officer | Chief Financial Officer |
| 727.399.5680 | 727.521.7085 |
BayFirst Financial Corp. Reports First Quarter 2024 Results;
Highlighted by Strong Loan and Deposit Growth with Higher Provision for Credit Losses
ST. PETERSBURG, FL. — April 25, 2024 — BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (the “Bank”) today reported net income of $0.8 million, or $0.11 per diluted common share, for the first quarter of 2024, compared to $1.7 million, or $0.32 per diluted common share, in the fourth quarter of 2023. Net income decreased due to two primary factors: higher provision for credit losses of $1.4 million, coupled with weaker Core SBA 7(a) loan production ($350 thousand to $5 million loan size) attributed to the continued higher interest rate environment negatively impacting loan demand.
“BayFirst opened its twelfth banking office in the attractive Tampa Bay market during the first quarter. The South Sarasota location completes our near-term branch expansion plans,” stated Thomas G. Zernick, Chief Executive Officer. “We were successful in growing deposit balances by $22.2 million during the quarter, and by $74.4 million year-over-year. We maintain a community focused business model serving individuals, families and small businesses, with a focus on establishing strong client relationships as we grow checking and savings accounts. This model continues to build franchise value in our great community bank in Tampa Bay.”
“Our government guaranteed lending division, CreditBench, had a good first quarter producing $130.6 million in new loans, with $98.2 million of that production coming from the SBA Bolt small loan program,” Zernick continued. “Our SBA Bolt program, which we initiated in 2022, represents loans of $150 thousand or less that carry up to an 85% government guaranty as well as a higher yield than other SBA loans. Our Core SBA 7(a) program was below our first quarter production expectations by 50%, reflecting weaker demand related to higher interest rates and lower than historical average loan size. While net charge-offs increased during the first quarter, we continue to monitor asset quality metrics, including nonperforming loans exclusive of government guaranteed loan balances, which declined from the end of last quarter. The increase in net charge-offs was due to the performance from a portfolio of unsecured consumer loans purchased in 2022, as well as higher net charge-offs from the Bank’s FlashCap, small SBA loan program, which the Bank ended during the quarter. Despite the challenging operating outlook and the ‘higher for longer’ interest rate environment that’s impacting the entire banking industry, our overall asset quality remains within acceptable levels, with our conventional commercial and industrial, owner occupied commercial real estate, and non-owner occupied commercial real estate portfolios are all performing well. The general environment to originate quality loans remains challenging from pricing, loan size, and credit perspectives.”
First Quarter 2024 Performance Review
•The Company’s government guaranteed loan origination platform, CreditBench, originated $130.6 million in new government guaranteed loans during the first quarter of 2024, a decrease of 9.9% from $144.9 million of loans produced in the previous quarter, and a 7.8% increase over $121.1 million of loans produced during the first quarter of 2023. Demand remains strong for the Company's Bolt loan program, an SBA 7(a) loan product designed to expeditiously provide working capital loans of $150 thousand or less to businesses throughout the country. Since the launch in 2022, the Company has originated 4,168 Bolt loans totaling $539.9 million, of which 760 Bolt loans totaling $98.2 million were originated during the quarter.
BayFirst Financial Corp. Reports First Quarter 2024 Results
April 25, 2024
Page 2
•Loans held for investment increased by $19.1 million, or 2.1%, during the first quarter of 2024 to $934.9 million and increased $142.1 million, or 17.9%, over the past year. During the quarter, the Company originated $197.2 million of loans and sold $127.8 million of government guaranteed loan balances.
•Deposits increased $22.2 million, or 2.3%, during the first quarter of 2024 and increased $74.4 million, or 8.0%, over the past year to $1.01 billion.
•Balance sheet liquidity remains strong, with $60.5 million in cash balances and time deposits with other banks as of March 31, 2024. Additionally, the Company maintains significant borrowing capacity through the FHLB and Federal Reserve discount window. Approximately 84% of the Company's deposits were insured at March 31, 2024.
•Book value and tangible book value at March 31, 2024 were $20.45 per common share, a decrease from $20.60 at December 31, 2023, driven by higher shares outstanding.
•Net interest margin including discontinued operations decreased by 6 bps to 3.42% in the first quarter of 2024, from 3.48% in the fourth quarter of 2023, primarily due to increases in deposit costs.
Results of Operations
Net Income
Net income was $0.8 million for the first quarter of 2024, compared to $1.7 million in the fourth quarter of 2023 and $0.7 million in the first quarter of 2023. The decrease in net income for the first quarter of 2024 from the preceding quarter was primarily the result of an increase in provision for credit losses of $1.4 million and a decrease noninterest income of $0.4 million, partially offset by a decrease in noninterest expense of $0.7 million. The increase in net income from the first quarter of 2023 was due to increases in gain on sale of government guaranteed loans of $3.7 million and other noninterest income of $1.3 million. This was partially offset by increases in provision for credit losses of $2.1 million and noninterest expense of $2.4 million.
Net Interest Income and Net Interest Margin
Net interest income from continuing operations was $8.7 million in the first quarter of 2024, a decrease of $0.1 million, or 1.5%, from the fourth quarter of 2023, and a decrease of $0.3 million, or 3.4%, from the first quarter of 2023. The net interest margin decreased by 6 bps to 3.42% in the first quarter of 2024, from 3.48% in the fourth quarter of 2023.
The decrease during the first quarter of 2024 as compared to the fourth quarter of 2023 was mainly due to higher interest costs on deposits of $0.5 million and lower interest income on interest bearing deposits in banks and other of $0.2 million, partially offset by an increase in loan interest income, including fees, of $0.5 million.
The decrease during the first quarter of 2024 as compared to the year ago quarter was mainly due to higher interest expense on deposits of $5.3 million, partially offset by an increase in interest income of $4.9 million.
Noninterest Income
Noninterest income from continuing operations was $14.3 million for the first quarter of 2024, which was a decrease of $0.4 million, or 2.9% from $14.7 million in the fourth quarter of 2023 and an increase of $4.9 million, or 51.0%, from $9.4 million in the first quarter of 2023. The decrease in the first quarter of 2024, as compared to the fourth quarter of 2023 was the result of a decrease in fair value gains related to held for investment government guaranteed loans of $1.4 million, partially offset by an increase in gain on sale of government guaranteed loans of $1.1 million. The increase in the first quarter of 2024, as compared to the first quarter of 2023, was the result of increases in gain on sale of government guaranteed loans of $3.7 million, and other noninterest income of $1.3 million, primarily attributable to an increase in government guaranteed loan packaging fees.
Noninterest Expense
Noninterest expense from continuing operations was $17.8 million in the first quarter of 2024, which was a $0.7 million, or 3.8%, decrease from $18.5 million in the fourth quarter of 2023 and a $2.4 million, or 15.3%, increase compared to $15.4 million in the first quarter of 2023. The decrease in the first quarter of 2024, as compared to the
BayFirst Financial Corp. Reports First Quarter 2024 Results
April 25, 2024
Page 3
prior quarter, was primarily due to a decrease in loan production expenses of $1.0 million. The increase in the first quarter of 2024, as compared to the first quarter of 2023 was primarily due to higher compensation costs of $0.9 million and higher professional fees of $0.5 million, higher loan production expenses of $0.2 million, and higher data processing expenses of $0.2 million.
Balance Sheet
Assets
Total assets increased $26.4 million, or 2.4%, during the first quarter of 2024 to $1.14 billion, mainly due to an increase of $19.1 million of loans held for investment.
Loans
Loans held for investment increased $19.1 million, or 2.1%, during the first quarter of 2024 and $142.1 million, or 17.9%, over the past year to $934.9 million, due to originations in both conventional community bank loans and government guaranteed loans, partially offset by government guaranteed loan sales.
Deposits
Deposits increased $22.2 million, or 2.3%, during the first quarter of 2024 and increased $74.4 million, or 8.0%, from March 31, 2023, ending the first quarter of 2024 at $1.01 billion. During the first quarter, there were increases in noninterest-bearing deposit account balances of $3.3 million, savings and money market deposit account balances of $18.9 million, and time deposit balances of $8.9 million, partially offset by a decrease in interest-bearing transaction account balances of $8.9 million.
Asset Quality
The Company recorded a provision for credit losses in the first quarter of $4.1 million, compared to a $2.7 million provision for the fourth quarter of 2023 and $1.9 million during the first quarter of 2023.
The ratio of ACL to total loans held for investment at amortized cost was 1.62% at March 31, 2024, 1.64% as of December 31, 2023, and 1.69% as of March 31, 2023. The ratio of ACL to total loans held for investment at amortized cost, excluding government guaranteed loans, was 2.06% at March 31, 2024, 2.03% as of December 31, 2023, and 2.10% as of March 31, 2023.
Net charge-offs for the first quarter of 2024 were $3.7 million, a $1.1 million increase from $2.6 million for the fourth quarter of 2023 and a $1.8 million increase compared to $1.9 million in the first quarter of 2023. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 1.71% for the first quarter of 2024, up from 1.27% in the fourth quarter of 2023 and 1.05% in the first quarter of 2023. Net charge-offs for the first quarter of 2024 were elevated by higher net charge-offs from the Bank’s FlashCap, small SBA loan program, which the Bank ended during the quarter, as well as $0.8 million of net charge-offs from a purchased portfolio of unsecured consumer loans. The Company stopped purchasing these consumer loans at the end of 2022 and the portfolio balances decreased from $17.0 million to $14.3 million during the quarter. Nonperforming assets to total assets was 0.97% as of March 31, 2024, compared to 0.92% as of December 31, 2023, and 0.55% as of March 31, 2023. Nonperforming assets, excluding government guaranteed loans, to total assets was 0.70% as of March 31, 2024, compared to 0.74% as of December 31, 2023, and 0.20% as of March 31, 2023.
Management made changes to improve asset quality performance of the Bank’s CreditBench working capital lending program. Beginning in January 2024, the FlashCap loan product offering was discontinued due to higher-than-expected credit losses. FlashCap provided working capital loans in the amounts of $150 thousand to $350 thousand. While the Bank’s Bolt small working capital loan program (up to $150 thousand loan size) has performed well, management also made a decision to suspend lending to a small number of certain industries which present higher risk or have performed below expectations. Furthermore, additional credit enhancements were made to the Bolt underwriting parameters to improve future performance.
Capital
The Bank’s Tier 1 leverage ratio was 9.12% as of March 31, 2024, compared to 9.38% as of December 31, 2023, and 10.18% at March 31, 2023. The CET 1 and Tier 1 capital ratio to risk-weighted assets were 11.04% as of March 31,
BayFirst Financial Corp. Reports First Quarter 2024 Results
April 25, 2024
Page 4
2024, compared to 11.77% as of December 31, 2023, and 12.87% as of March 31, 2023. The total capital to risk-weighted assets ratio was 12.29% as of March 31, 2024, compared to 13.03% as of December 31, 2023, and 14.12% as of March 31, 2023.
Liquidity
The Bank has liquidity well in excess of internal minimums and the expectations of our bank regulators. The Bank’s overall liquidity position remains strong and stable. The on-balance sheet liquidity ratio at March 31, 2024 was 9.22%, as compared to 9.33% at December 31, 2023. The Bank retained additional liquidity after bank failures generated uncertainty for all banks in early 2023. The Bank has robust liquidity resources. These resources include secured borrowings available from the Federal Home Loan Bank, the Federal Reserve, and lines of credit with other financial institutions. As of March 31, 2024, the Bank had $15.0 million of borrowings from the FHLB and no borrowings from 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 December 31, 2023.
Recent Events
Second Quarter Common Stock Dividend. On April 23, 2024, BayFirst’s Board of Directors declared a second quarter 2024 cash dividend of $0.08 per common share. The dividend will be payable June 15, 2024 to common shareholders of record as of June 1, 2024. The Company has continuously paid quarterly common stock cash dividends since 2016.
Conference Call
BayFirst’s management team will host a conference call on Friday, April 26, 2024 at 9:00 a.m. ET to discuss its first 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 78074. A replay of the call will be available for one year at www.bayfirstfinancial.com.
About BayFirst Financial Corp.
BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida which commenced operations on September 1, 2000. Its primary source of income is derived from its wholly owned subsidiary, BayFirst National Bank, a national banking association which commenced business operations on February 12, 1999. The Bank currently operates twelve full-service banking offices throughout the Tampa Bay-Sarasota region and offers a broad range of commercial and consumer banking services to businesses and individuals. The Bank was the 2nd SBA 7(a) lender by number of units originated and 5th largest by dollar volume nationwide through the second quarter ended March 31, 2024, of SBA's 2024 fiscal year. Additionally, it was the number one SBA 7(a) lender in dollar volume in the 5 county Tampa Bay market for the SBA's 2023 fiscal year. As of March 31, 2024, BayFirst Financial Corp. had $1.14 billion in total assets.
Forward-Looking Statements
In addition to the historical information contained herein, this presentation includes "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. These statements are subject to many risks and uncertainties, including, but not limited to, the effects of health crises, global military hostilities, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the SEC, including, but not limited to those “Risk Factors” described in our most recent Form 10-K and Form 10-Q. Readers should note that the forward-looking statements included herein are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements.
BayFirst Financial Corp. Reports First Quarter 2024 Results
April 25, 2024
Page 5
BAYFIRST FINANCIAL CORP.
SELECTED FINANCIAL DATA (Unaudited)
| At or for the three months ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except for share data) | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | ||||||||||
| Balance sheet data: | |||||||||||||||
| Average loans held for investment at amortized cost | $ | 855,040 | $ | 825,196 | $ | 789,167 | $ | 781,744 | $ | 718,094 | |||||
| Average total assets | 1,126,315 | 1,108,550 | 1,088,517 | 1,064,068 | 969,489 | ||||||||||
| Average common shareholders’ equity | 85,385 | 82,574 | 81,067 | 80,310 | 78,835 | ||||||||||
| Total loans held for investment | 934,868 | 915,726 | 878,447 | 836,704 | 792,777 | ||||||||||
| Total loans held for investment, excl gov’t gtd loan balances | 712,073 | 698,106 | 687,141 | 638,148 | 596,505 | ||||||||||
| Allowance for credit losses | 13,906 | 13,497 | 13,365 | 12,598 | 12,208 | ||||||||||
| Total assets | 1,144,194 | 1,117,766 | 1,133,979 | 1,087,399 | 1,069,839 | ||||||||||
| Common shareholders’ equity | 84,578 | 84,656 | 82,725 | 81,460 | 80,734 | ||||||||||
| Share data: | |||||||||||||||
| Basic earnings per common share | $ | 0.11 | $ | 0.32 | $ | 0.42 | $ | 0.29 | $ | 0.13 | |||||
| Diluted earnings per common share | 0.11 | 0.32 | 0.41 | 0.29 | 0.13 | ||||||||||
| Dividends per common share | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||
| Book value per common share | 20.45 | 20.60 | 20.12 | 19.85 | 19.70 | ||||||||||
| Tangible book value per common share (1) | 20.45 | 20.60 | 20.12 | 19.85 | 19.70 | ||||||||||
| Performance and capital ratios: | |||||||||||||||
| Return on average assets(2) | 0.29 | % | 0.60 | % | 0.71 | % | 0.52 | % | 0.30 | % | |||||
| Return on average common equity(2) | 2.06 | % | 6.37 | % | 8.46 | % | 5.86 | % | 2.69 | % | |||||
| Net interest margin(2) | 3.42 | % | 3.48 | % | 3.36 | % | 4.18 | % | 4.17 | % | |||||
| Dividend payout ratio | 74.91 | % | 25.03 | % | 19.15 | % | 27.89 | % | 61.48 | % | |||||
| Asset quality ratios: | |||||||||||||||
| Net charge-offs | $ | 3,652 | $ | 2,612 | $ | 2,234 | $ | 2,253 | $ | 1,887 | |||||
| Net charge-offs/avg loans held for investment at amortized cost(2) | 1.71 | % | 1.27 | % | 1.13 | % | 1.15 | % | 1.05 | % | |||||
| Nonperforming loans(3) | $ | 9,877 | $ | 9,688 | $ | 9,518 | $ | 8,478 | $ | 5,890 | |||||
| Nonperforming loans (excluding gov't gtd balance)(3) | $ | 7,568 | $ | 8,264 | $ | 7,997 | $ | 6,590 | $ | 2,095 | |||||
| Nonperforming loans/total loans held for investment(3) | 1.15 | % | 1.18 | % | 1.20 | % | 1.08 | % | 0.81 | % | |||||
| Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) | 0.88 | % | 1.00 | % | 1.01 | % | 0.84 | % | 0.29 | % | |||||
| ACL/Total loans held for investment at amortized cost | 1.62 | % | 1.64 | % | 1.68 | % | 1.61 | % | 1.69 | % | |||||
| ACL/Total loans held for investment at amortized cost, excl government guaranteed loans | 2.06 | % | 2.03 | % | 2.03 | % | 2.03 | % | 2.10 | % | |||||
| Other Data: | |||||||||||||||
| Full-time equivalent employees | 313 | 305 | 307 | 302 | 300 | ||||||||||
| Banking center offices | 12 | 11 | 10 | 9 | 9 | ||||||||||
| (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 First Quarter 2024 Results
April 25, 2024
Page 6
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) | March 31, 2024 | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | |||||
| Total shareholders’ equity | $ | 100,629 | $ | 100,707 | $ | 94,165 | $ | 91,065 | $ | 90,339 |
| Less: Preferred stock liquidation preference | (16,051) | (16,051) | (11,440) | (9,605) | (9,605) | |||||
| Total equity available to common shareholders | 84,578 | 84,656 | 82,725 | 81,460 | 80,734 | |||||
| Less: Goodwill | — | — | — | — | — | |||||
| Tangible common shareholders' equity | $ | 84,578 | $ | 84,656 | $ | 82,725 | $ | 81,460 | $ | 80,734 |
| Common shares outstanding | 4,134,914 | 4,110,470 | 4,110,650 | 4,103,834 | 4,098,805 | |||||
| Tangible book value per common share | $ | 20.45 | $ | 20.60 | $ | 20.12 | $ | 19.85 | $ | 19.70 |
BayFirst Financial Corp. Reports First Quarter 2024 Results
April 25, 2024
Page 7
| BAYFIRST FINANCIAL CORP. | ||||||
|---|---|---|---|---|---|---|
| CONSOLIDATED BALANCE SHEETS | ||||||
| (Dollars in thousands) | 3/31/2024 | 12/31/2023 | 3/31/2023 | |||
| Assets | Unaudited | Unaudited | ||||
| Cash and due from banks | $ | 4,425 | $ | 4,099 | $ | 3,766 |
| Interest-bearing deposits in banks | 53,080 | 54,286 | 127,901 | |||
| Cash and cash equivalents | 57,505 | 58,385 | 131,667 | |||
| Time deposits in banks | 3,000 | 4,646 | 4,881 | |||
| Investment securities available for sale, at fair value (amortized cost $46,816, $43,597, and $46,728 at March 31, 2024, December 31, 2023, and March 31, 2023, respectively) | 42,514 | 39,575 | 42,435 | |||
| Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $14, $17, and $18 (fair value: $2,352, $2,263, and $2,242 at March 31, 2024, December 31, 2023, and March 31, 2023, respectively) | 2,487 | 2,484 | 2,484 | |||
| Nonmarketable equity securities | 5,228 | 4,770 | 5,115 | |||
| Government guaranteed loans held for sale | 2,226 | — | 1,174 | |||
| Government guaranteed loans held for investment, at fair value | 77,769 | 91,508 | 69,047 | |||
| Loans held for investment, at amortized cost net of allowance for credit losses of $13,906, $13,497, and $12,208 at March 31, 2024, December 31, 2023, and March 31, 2023, respectively) | 843,193 | 810,721 | 711,522 | |||
| Accrued interest receivable | 7,625 | 7,130 | 5,547 | |||
| Premises and equipment, net | 39,327 | 38,874 | 37,780 | |||
| Loan servicing rights | 15,742 | 14,959 | 11,625 | |||
| Deferred income tax assets | — | — | 1,338 | |||
| Right-of-use operating lease assets | 2,499 | 2,416 | 2,985 | |||
| Bank owned life insurance | 25,974 | 25,800 | 25,313 | |||
| Other assets | 18,805 | 16,150 | 16,421 | |||
| Assets from discontinued operations | 300 | 348 | 505 | |||
| Total assets | $ | 1,144,194 | $ | 1,117,766 | $ | 1,069,839 |
| Liabilities: | ||||||
| Noninterest-bearing deposits | $ | 96,977 | $ | 93,708 | $ | 106,622 |
| Interest-bearing transaction accounts | 250,478 | 259,422 | 266,445 | |||
| Savings and money market deposits | 391,915 | 373,000 | 364,269 | |||
| Time deposits | 267,945 | 259,008 | 195,565 | |||
| Total deposits | 1,007,315 | 985,138 | 932,901 | |||
| FHLB borrowings | 15,000 | 10,000 | 25,000 | |||
| Subordinated debentures | 5,950 | 5,949 | 5,994 | |||
| Notes payable | 2,276 | 2,389 | 2,731 | |||
| Accrued interest payable | 1,598 | 882 | 860 | |||
| Operating lease liabilities | 2,673 | 2,619 | 3,209 | |||
| Deferred income tax liabilities | 728 | 482 | — | |||
| Accrued expenses and other liabilities | 7,496 | 8,980 | 7,738 | |||
| Liabilities from discontinued operations | 529 | 620 | 1,067 | |||
| Total liabilities | 1,043,565 | 1,017,059 | 979,500 |
BayFirst Financial Corp. Reports First Quarter 2024 Results
April 25, 2024
Page 8
| BAYFIRST FINANCIAL CORP. | ||||||
|---|---|---|---|---|---|---|
| CONSOLIDATED BALANCE SHEETS | ||||||
| (Dollars in thousands) | 3/31/2024 | 12/31/2023 | 3/31/2023 | |||
| Shareholders’ equity: | Unaudited | Unaudited | ||||
| Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at March 31, 2024, December 31, 2023, and March 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 March 31, 2024, December 31, 2023, and March 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 March 31, 2024 and December 31, 2023, and no shares issued and outstanding as of March 31, 2023; aggregate liquidation preference of $6,446 at March 31, 2024 and December 31, 2023 | 6,446 | 6,446 | — | |||
| Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,134,914, 4,110,470, and 4,098,805 shares issued and outstanding at March 31, 2024, December 31, 2023, and March 31, 2023, respectively | 54,776 | 54,521 | 54,003 | |||
| Accumulated other comprehensive loss, net | (3,188) | (2,981) | (3,182) | |||
| Unearned compensation | (1,192) | (958) | (940) | |||
| Retained earnings | 34,503 | 34,395 | 31,174 | |||
| Total shareholders’ equity | 100,629 | 100,707 | 90,339 | |||
| Total liabilities and shareholders’ equity | $ | 1,144,194 | $ | 1,117,766 | $ | 1,069,839 |
BayFirst Financial Corp. Reports First Quarter 2024 Results
April 25, 2024
Page 9
| BAYFIRST FINANCIAL CORP. | ||||||
|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||
| For the Quarter Ended | ||||||
| (Dollars in thousands, except per share data) | 3/31/2024 | 12/31/2023 | 3/31/2023 | |||
| Interest income: | ||||||
| Loans, including fees | $ | 18,228 | $ | 17,714 | $ | 13,071 |
| Interest-bearing deposits in banks and other | 959 | 1,140 | 1,180 | |||
| Total interest income | 19,187 | 18,854 | 14,251 | |||
| Interest expense: | ||||||
| Deposits | 10,215 | 9,719 | 4,923 | |||
| Other | 230 | 258 | 275 | |||
| Total interest expense | 10,445 | 9,977 | 5,198 | |||
| Net interest income | 8,742 | 8,877 | 9,053 | |||
| Provision for credit losses | 4,058 | 2,737 | 1,942 | |||
| Net interest income after provision for credit losses | 4,684 | 6,140 | 7,111 | |||
| Noninterest income: | ||||||
| Loan servicing income, net | 795 | 677 | 740 | |||
| Gain on sale of government guaranteed loans, net | 8,089 | 6,977 | 4,409 | |||
| Service charges and fees | 444 | 555 | 379 | |||
| Government guaranteed loans fair value gain, net | 3,305 | 4,697 | 3,574 | |||
| Other noninterest income | 1,635 | 1,785 | 346 | |||
| Total noninterest income | 14,268 | 14,691 | 9,448 | |||
| Noninterest Expense: | ||||||
| Salaries and benefits | 8,005 | 7,446 | 7,835 | |||
| Bonus, commissions, and incentives | 1,571 | 2,211 | 804 | |||
| Occupancy and equipment | 1,110 | 1,150 | 1,163 | |||
| Data processing | 1,560 | 1,422 | 1,347 | |||
| Marketing and business development | 588 | 640 | 665 | |||
| Professional services | 1,349 | 1,070 | 897 | |||
| Loan origination and collection | 1,719 | 2,728 | 1,495 | |||
| Employee recruiting and development | 597 | 510 | 568 | |||
| Regulatory assessments | 282 | 266 | 99 | |||
| Other noninterest expense | 992 | 1,023 | 539 | |||
| Total noninterest expense | 17,773 | 18,466 | 15,412 | |||
| Income before taxes from continuing operations | 1,179 | 2,365 | 1,147 | |||
| Income tax expense from continuing operations | 296 | 704 | 280 | |||
| Net income from continuing operations | 883 | 1,661 | 867 | |||
| Loss from discontinued operations before income taxes | (78) | (8) | (170) | |||
| Income tax benefit from discontinued operations | (19) | (2) | (42) | |||
| Net loss from discontinued operations | (59) | (6) | (128) | |||
| Net income | 824 | 1,655 | 739 | |||
| Preferred dividends | 385 | 341 | 208 | |||
| Net income available to common shareholders | $ | 439 | $ | 1,314 | $ | 531 |
BayFirst Financial Corp. Reports First Quarter 2024 Results
April 25, 2024
Page 10
| BAYFIRST FINANCIAL CORP. | ||||||
|---|---|---|---|---|---|---|
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||
| For the Quarter Ended | ||||||
| (Dollars in thousands, except per share data) | 3/31/2024 | 12/31/2023 | 3/31/2023 | |||
| Basic earnings (loss) per common share: | ||||||
| Continuing operations | $ | 0.12 | $ | 0.32 | $ | 0.16 |
| Discontinued operations | (0.01) | — | (0.03) | |||
| Basic earnings per common share | $ | 0.11 | $ | 0.32 | $ | 0.13 |
| Diluted earnings (loss) per common share: | ||||||
| Continuing operations | $ | 0.12 | $ | 0.32 | $ | 0.16 |
| Discontinued operations | (0.01) | — | (0.03) | |||
| Diluted earnings per common share | $ | 0.11 | $ | 0.32 | $ | 0.13 |
BayFirst Financial Corp. Reports First Quarter 2024 Results
April 25, 2024
Page 11
Loan Composition
| (Dollars in thousands) | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
| Real estate: | ||||||||||
| Residential | $ | 285,214 | $ | 264,126 | $ | 248,973 | $ | 235,339 | $ | 214,638 |
| Commercial | 273,227 | 293,595 | 280,620 | 272,200 | 239,720 | |||||
| Construction and land | 36,764 | 26,272 | 25,339 | 15,575 | 11,069 | |||||
| Commercial and industrial | 182,264 | 177,566 | 174,238 | 198,639 | 199,721 | |||||
| Commercial and industrial - PPP | 2,965 | 3,202 | 15,364 | 15,808 | 18,430 | |||||
| Consumer and other | 63,854 | 47,287 | 39,024 | 38,103 | 32,697 | |||||
| Loans held for investment, at amortized cost, gross | 844,288 | 812,048 | 783,558 | 775,664 | 716,275 | |||||
| Deferred loan costs, net | 16,233 | 14,707 | 12,928 | 11,506 | 10,678 | |||||
| Discount on government guaranteed loans sold | (7,674) | (7,040) | (6,623) | (5,937) | (6,046) | |||||
| Premium on loans purchased, net | 4,252 | 4,503 | 4,406 | 3,306 | 2,823 | |||||
| Loans held for investment, at amortized cost, net | 857,099 | 824,218 | 794,269 | 784,539 | 723,730 | |||||
| Government guaranteed loans held for investment, at fair value | 77,769 | 91,508 | 84,178 | 52,165 | 69,047 | |||||
| Total loans held for investment, net | $ | 934,868 | $ | 915,726 | $ | 878,447 | $ | 836,704 | $ | 792,777 |
Nonperforming Assets (Unaudited)
| (Dollars in thousands) | 3/31/2024 | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nonperforming loans (government guaranteed balances), at amortized cost, gross | $ | 2,309 | $ | 1,424 | $ | 1,521 | $ | 1,888 | $ | 3,795 | |||||
| Nonperforming loans (unguaranteed balances), at amortized cost, gross | 7,568 | 8,264 | 7,997 | 6,590 | 2,095 | ||||||||||
| Total nonperforming loans, at amortized cost, gross | 9,877 | 9,688 | 9,518 | 8,478 | 5,890 | ||||||||||
| Nonperforming loans (government guaranteed balances), at fair value | 94 | — | 96 | 127 | — | ||||||||||
| Nonperforming loans (unguaranteed balances), at fair value | 729 | 648 | 363 | — | — | ||||||||||
| Total nonperforming loans, at fair value | 823 | 648 | 459 | 127 | — | ||||||||||
| OREO | 404 | — | — | 3 | 3 | ||||||||||
| Total nonperforming assets, gross | $ | 11,104 | $ | 10,336 | $ | 9,977 | $ | 8,608 | $ | 5,893 | |||||
| Nonperforming loans as a percentage of total loans held for investment(1) | 1.15 | % | 1.18 | % | 1.20 | % | 1.08 | % | 0.81 | % | |||||
| Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1) | 0.88 | % | 1.00 | % | 1.01 | % | 0.84 | % | 0.29 | % | |||||
| Nonperforming assets as a percentage of total assets | 0.97 | % | 0.92 | % | 0.88 | % | 0.79 | % | 0.55 | % | |||||
| Nonperforming assets (excluding government guaranteed balances) to total assets | 0.70 | % | 0.74 | % | 0.71 | % | 0.62 | % | 0.20 | % | |||||
| ACL to nonperforming loans(1) | 140.79 | % | 139.32 | % | 128.60 | % | 146.39 | % | 207.27 | % | |||||
| ACL to nonperforming loans (excluding government guaranteed balances)(1) | 183.75 | % | 163.32 | % | 152.29 | % | 191.17 | % | 582.72 | % |
(1) Excludes loans measured at fair value
Note: Transmitted on Globe Newswire on April 25, 2024, at 4:00 p.m. ET.
bayfirstinvestorpresenta
BayFirst Financial Corp. (NASDAQ:BAFN) 2024 – First Quarter Results (Unaudited)
22 In addition to the historical information contained herein, this presentation includes "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. These statements are subject to many risks and uncertainties, including, but not limited to, the effects of health crises, global military hostilities, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the SEC, including, but not limited to those “Risk Factors” described in our most recent Form 10-K and Form 10-Q. Readers should note that the forward-looking statements included herein are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward- looking statements. Cautionary Statement Concerning Forward-Looking Information Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this document, and we do not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
3 ABOUT BAYFIRST FINANCIAL CORP. TAMPA BAY’S PREMIER BANKING FRANCHISE IN THE TAMPA BAY- SARASOTA REGION(1) HOW WE RANK 2 ASSET SIZE BILLION TOTAL ASSETS (2)$1.14 SBA ORIGINATION SBA 7(a) ORIGINATOR IN THE NATION BY UNITS (3) #2 GROWTH ASSET GROWTH SINCE DEC 31, 2019(2)115% 1. Deposit ranking of banks with assets less than $10B headquartered in the Tampa-Sarasota region as of December 31, 2023 from Uniform Bank Performance Reports 2. Financial data as of March 31, 2024 3. As of SBA’s quarter ended March 31, 2024 INITIATIVES CORPORATE SOCIAL RESPONSIBILITY FOCUSED CSR DEPOSITS $22.2 MILLION IN TOTAL DEPOSIT GROWTH DURING THE QUARTER(2) BANKING CENTERS THE FIFTH BANKING CENTER IN THE SARASOTA-BRADENTON AREA OPENED IN SARASOTA IN FEBRUARY BRINGING THE TOTAL BANKING CENTERS TO 12 IN THE TAMPA BAY- SARASOTA REGION
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 115% since YE2019 Innovative technology driven bank planning for the future of banking Among the nation’s top SBA loan originators Deposit growth of 8% since same period last year Experienced management team with strong insider ownership of 15% ✔ ✔ ✔ ✔ ✔ ✔ ✔ The Company has continuously paid quarterly common stock cash dividends since 2016. 1. Deposit ranking of banks with assets less than $10B headquartered in the Tampa-Sarasota region as of December 31, 2023 from Uniform Bank Performance Reports
55 ABOUT BAYFIRST FINANCIAL CORP. CURRENT BANKING CENTER LOCATION SOLID BANKING CENTER FRANCHISE IN TAMPA BAY-SARASOTA REGION
6 • Advanced technology platform to support innovative products and services while improving efficiencies • PowerLOS for government guaranteed and commercial lending platform • Working with FinTechs to offer new and innovative services through Mulesoft API platform • 12 banking centers in Tampa Bay- Sarasota region • Full suite of commercial and consumer loan and deposit products to meet the needs of Tampa Bay individuals, families and small businesses • BayFirst’s in-house government guaranteed lending platform • #2 in units and #5 SBA lender in dollars as of SBA's quarter ended 3/31/24 • #1 SBA lender in the five county Tampa Bay area at SBA’s FY ended 9/30/23 ◦ Small Loan Balance program: ▪ Includes Bolt SBA 7(a) loans for $150K or less, up to 85% government guarantee • Core program: ▪ Focus on greater than $150K ▪ Loan generation from organic sales and FinTech partners COMMUNITY BANKING TECHNOLOGY FOCUSED INNOVATIVE COMMUNITY BANK Technology focused community bank with diversified revenue streams CREDITBENCH
7 ATTRACTIVE LOAN COMPOSITION Composition of Loans Held for Investment as of March 31, 2024 27.3% 18.8% 12.0% 24.6% 6.1% 2.9% 0.4% 6.8% 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 $197 million during the quarter • Loans held for investment grew $19 million during the quarter
8 SOLID DEPOSIT COMPOSITION Deposit Portfolio Composition as of March 31, 2024 • Total Deposits grew $22 million during the quarter • Approximately 84% of deposits are insured as of March 31, 2024 • Minimal use of short-term brokered deposits ($30 million as of March 31, 2024) • Grew number of checking accounts by 6% YTD Noninterest Bearing Transaction, 9.6% Interest Bearing Transaction, 24.9% Savings & Money Market, 38.9% Time Deposits, 26.6% Deposit Highlights
9 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of March 31, 2024 (fair market value, in thousands) Investment Securities Portfolio Details • Minimal exposure to market value losses due to modest investment securities portfolio (4% of total assets) • Other Comprehensive Loss of $3.2 million reduced Tangible Book Value by $0.77 as of March 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 $14 thousand Asset-backed securities, $7,208 MBS: U.S. Government- sponsored enterprises, $7,496CMO: U.S. Government- sponsored enterprises, $16,417 Corporate bonds, $11,393
10 STRATEGIC PILLARS 2024 Maintain Strong Capital Manage and Evolve Risk Management Leverage Our SBA Expertise Promote Innovation Maintain Granularity of Deposit and Loan Portfolios Leverage Banking Center Franchise and Core Deposit Base Continue to Promote Workplace Culture and Social Responsibility
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 11 2024 GOALS & INITIATIVES • Increase the volume of small-balance SBA loans • Focus on revenue growth and optimize the Bank’s efficiency ratio • Maximize existing banking centers to increase brand awareness and core deposit customers • Partner with Fintech firms to create fee income and loan and deposit opportunities • Grow capital and expand the Company’s shareholder base • Enhance overall customer experience, engagement, and satisfaction • Improve digital channels and functionalities to elevate customer engagement • Maximize the investment in technology • Position the Bank to achieve an “Outstanding” CRA rating
12 Q1 2024 For the Three Months Ended ($000s) 3/31/2024 12/31/2023 Increase/ (Decrease) 3/31/2023 Increase/ (Decrease) Interest income $ 19,187 $ 18,854 $ 333 $ 14,251 $ 4,936 Interest expense 10,445 9,977 468 5,198 5,247 Net interest income 8,742 8,877 (135) 9,053 (311) Provision for credit losses 4,058 2,737 1,321 1,942 2,116 Noninterest income 14,268 14,691 (423) 9,448 4,820 Noninterest expense 17,773 18,466 (693) 15,412 2,361 Income tax expense 296 704 (408) 280 16 Net income from continuing operations 883 1,661 (778) 867 16 Net income (loss) from discontinued operations (59) (6) (53) (128) 69 Net income 824 1,655 (831) 739 85 Preferred dividends 385 341 44 208 177 Net income available to common shareholders $ 439 $ 1,314 $ (875) $ 531 $ (92)
13 Q1 2024 As of and For the Three Months Ended 3/31/2024 12/31/2023 3/31/2023 Return on average assets(1) 0.29 % 0.60 % 0.30 % Return on average common equity(1) 2.06 % 6.37 % 2.69 % Tangible book value per common share $ 20.45 $ 20.60 $ 19.70 Diluted earnings per common share $ 0.11 $ 0.32 $ 0.13 Dividend payout ratio 74.91 % 25.03 % 61.48 % Total Capital (to risk-weighted assets) 12.29 % 13.03 % 14.12 % Common Equity Tier 1 Capital (to risk-weighted assets) 11.04 % 11.77 % 12.87 % Tier 1 Capital (to total assets) 9.12 % 9.38 % 10.18 % Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(2) 0.88 % 1.00 % 0.29 % ACL/Total loans held for investment at amortized cost 1.62 % 1.64 % 1.69 % (1) Annualized (2) Excludes loans measured at fair value
14 $81 $81 $83 $85 $85 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $20 $40 $60 $80 $100 $120 Strong balance sheet on track for continued organic growth ORGANIC GROWTH Total Assets ($M) Total Loans HFI ($M) Total Deposits ($M) Tangible Common Equity ($M) $1,070 $1,087 $1,134 $1,118 $1,144 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $0 $200 $400 $600 $800 $1,000 $1,200 $793 $837 $878 $916 $935 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $0 $200 $400 $600 $800 $1,000 $933 $945 $1,018 $985 $1,007 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $0 $200 $400 $600 $800 $1,000 $1,200
15 SUMMARY OF KEY RATIOS ROAA (%)(1) ROATCE (%)(1) Net Interest Margin (%)(1) Noninterest Income / Total Revenue from Continuing Operations 0.30% 0.52% 0.71% 0.60% 0.29% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 0.00% 0.50% 1.00% 2.69% 5.86% 8.46% 6.37% 2.06% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 0.00% 5.00% 10.00% 15.00% 4.17% 4.18% 3.36% 3.48% 3.42% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 51.07% 51.97% 63.62% 62.33% 62.01% Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 20% 30% 40% 50% 60% 70% (1) Annualized
16 SHAREHOLDER VALUE CREATION $19.70 $19.85 $20.12 $20.60 $20.45 Tangible Book Value Per Share Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $10 $12 $14 $16 $18 $20 $22
17 $122 $125 $156 $145 $131 563 676 729 849 809 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 $0 $25 $50 $75 $100 $125 $150 $175 500 600 700 800 900 1,000 • Nationally ranked #2 in total SBA units and #5 in dollars for the quarter ended March 31, 2024 • Strategic initiative to expand USDA business and industry lending program: an experienced USDA lender recently hired to support this effort • Total Q1 2024 government guaranteed loan production increased 7.8% from Q1 2023 • Demand remains strong for 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 $539.9 million, including $98.2 million in Q1 2024 ◦ New automation program launched through proprietary loan origination system PowerLOS and Open API, allowing increased volume and efficiency while limiting additional staff CREDITBENCH (SBA/USDA LENDING) Q1 2024 Highlights Government Guaranteed Loan Amount ($M) and Unit Volume
18 $1,044 $1,122 $1,199 $1,252 $1,326 $350 $364 $373 $396 $375 $694 $758 $826 $856 $951 HFI Government Guaranteed Loans (1) Government Guaranteed Loans Serviced for Others 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 $0 $250 $500 $750 $1,000 $1,250 $1,500 CREDITBENCH (SBA/USDA LOANS) Guaranteed Loans HFI and Loans Serviced for Others ($M) (1) Excludes PPP loans
19 Quarter Ended ($000s) 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Core 7(a) $ 33,832 $ 44,195 $ 36,635 $ 33,115 $ 25,967 Core 504 16,022 — 14,571 482 2,419 Core USDA 13,625 5,525 19,800 9,080 4,000 Bolt 58,633 74,785 84,905 102,264 98,170 Total $ 122,112 $ 124,505 $ 155,911 $ 144,941 $ 130,556 GOVERNMENT GUARANTEED LOAN PRODUCTION
20 ASSET QUALITY Strong reserve well-positioned to withstand volatility in economic conditions 1.05% 1.15% 1.13% 1.27% 1.71% Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 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 1.69% 1.61% 1.68% 1.64% 1.62% 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 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) 582.72% 191.17% 152.29% 163.32% 183.75% 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 0.0% 250.0% 500.0% 750.0% 1.04% 1.59% 1.93% 2.10% 1.70% 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 0.0% 1.0% 2.0% 3.0% (1) Excludes government guaranteed balances (2) Excludes loans measured at fair value
21 Quarter ended ($000s) 6/30/2023 9/30/2023 12/31/2023 3/31/2024 Ending balance $ 23,255 $ 20,006 $ 17,027 $ 14,345 31-90 days past due 700 852 1,021 718 90+ days past due 220 351 258 170 Net charge-offs 601 755 896 770 Net charge-offs to average loans (annualized) 9.63 % 13.97 % 19.32 % 19.53 % UPGRADE CONSUMER LOANS Purchased unsecured consumer loans (no purchases after 2022: additional purchases are not planned)
22 COMMUNITY BANKING PERFORMANCE Q1 2024 Loan Production Summary: ▪ Loan production during the quarter was $66.6 million(1) ▪ Loans held for investment, including government guaranteed loans, increased by a net $19.4 million QoQ Q1 2024 Deposit Summary: ▪ Deposit balances increased $22.2 million QoQ ▪ Deposit portfolio increased by 4.7% in number of accounts (to 19,955 accounts totaling $1.01 billion) QoQ New Banking Center: • Opened fifth banking center in Sarasota in February 2024 bringing the total to 12 banking centers in the Tampa Bay-Sarasota region Q1 2024 Highlights Banking Center & Deposits ($ in 000s) Total Deposits # Branch Year Opened 3/31/2024 3/31/2023 3/31/2022 1 St. Petersburg(2) 2017 $ 264,169 $ 312,052 $ 247,204 2 Seminole 1999 141,934 137,298 159,093 3 Pinellas Park 2005 96,545 69,223 71,235 4 Downtown Sarasota 2018 169,521 188,418 169,613 5 Countryside 2018 61,041 66,896 60,060 6 West Tampa 2020 106,130 88,286 54,985 7 Belleair Bluffs 2021 39,934 31,529 7,939 8 West Bradenton 2022 56,281 32,944 — 9 Carrollwood 2023 44,161 6,255 — 10 Bee Ridge 2023 26,067 — — 11 North Sarasota 2023 351 — — 12 South Tamiami Trail 2024 1,181 — — Total Branches (12) $ 1,007,315 $ 932,901 $ 770,129 (1) Excludes government guaranteed loan production (2) St. Petersburg branch deposits include other deposits generated by CreditBench, Cash Management, Corporate Treasury, and Virtual
APPENDIX
24 BOLT SINGLE LOAN EARNINGS EXAMPLE Immediate One-Time Impact Loan amount (Average amount of a Bolt loan) $ 130,000 Guaranteed amount (85% of total loan) 110,500 Unguaranteed amount (15% of total loan, retained by BayFirst) 19,500 Premium earned on sale of guaranteed amount 10,166 (The gross premium paid when the loan is sold, less 50% of the amount over 10% to be shared with SBA and approximately 20% which is deferred and recognized over the remaining life of the unguaranteed loan amount) Cost to originate (Includes third party referral fees and internal labor and origination costs) (3,868) Packaging fee (Paid by borrower to compile and transmit SBA compliant loan package) 1,560 Servicing right gain (Reflects future value of servicing on sold loans) 2,652 Provision for credit loss on unguaranteed amount (Booked according to ASC 326) (1,560) Net one-time impact 8,950 First year income statement impact from unguaranteed amount 1,216 (Includes net interest margin and accretion of deferred gain, offset by amortization of deferred costs and servicing asset) Combined immediate one-time and first year earnings impact $ 10,166 This example is for illustrative purposes and is not a guarantee of future loan size or volume and may not be indicative of the financial impact of future loans. The size, volume, and financial impact of such loans involve known and unknown risks and uncertainties, which may cause actual performance and results to be materially different.
25 OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,134,914 as of 4/18/24 Source: S&P Capital IQ Pro Vanguard Group Inc., 2.98% First Manhattan Co., 3.36% 1st & Main Growth Partners, 3.36% All Other Institutions, 7.78% Mark S. Berset, 6.83% All Other Directors/ Executive Officers, 7.95% Public/Other, 67.74%
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 26 DEPOSITS IN TAMPA BAY-SARASOTA REGION Total Deposits (Total Assets <$10BN and HQ in Tampa-Sarasota Region) Note: Deposit data as of December 31, 2023 Source: Uniform Bank Performance Reports Average Deposits Branches Deposits per Branch Rank Institution ($ millions) (No.) ($ millions) 1 Bank of Tampa $2,802 13 $216 2 BayFirst National Bank 985 11 90 3 Flagship Bank 562 6 94 4 Climate First 480 3 160 5 Gulfside Bank 245 1 245 6 TCM Bank NA 263 1 263 7 Central Bank 235 4 59 8 Century Bank of Florida 93 1 93 9 Waterfall Bank 128 1 128
No content below the lineNo content below the line Data color order: Used with accent colors: Complimentary colors: 27 LIQUIDITY SOURCES • Available Liquidity ◦ $61 million in cash and due from other banks ◦ $43 million in AFS investment securities • Off Balance Sheet Sources of Liquidity ◦ $162 million of unused, available borrowing capacity at the FHLB based on pledged loans ◦ $39 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 $141 million in brokered deposits (1) ◦ Up to $339 million in listing service deposits (1) (1) Based on Bank’s policy limits Data as of March 31, 2024
28 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 28 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
29 EXPERIENCED LEADERSHIP TEAM • Joined BayFirst in Q4 2017; Prior to joining BayFirst, over fifteen years of Mortgage Banking administration experience as well as Human Resources experience supporting mid-size financial institutions • B.B.S from The University of Florida and M.B.A from The University of Tampa Brandi Jaber John Macaluso EVP, Chief Production Officer EVP, Chief Technology Officer 29 Lewis Benner EVP, Chief Credit Officer • Joined BayFirst in 2018; Prior to joining BayFirst, Mr. Benner served in leadership roles from multiple financial institutions • B.A. in Business Administration from Elizabethtown College • Joined BayFirst in 2018 • Held leadership positions at multiple institutions amassing expertise in many areas of community banking and business development • B.S. in Economics with an emphasis in Mathematics from University of Wisconsin-Madison Thomas Quale EVP, Chief Lending Officer and Market President • Joined BayFirst in Q4 2020 • 37 years of information technology experience • Served as CTO for Fiserv, Inc. • B.A. from University of South Florida