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) July 29, 2025
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 July 29, 2025, BayFirst Financial Corp. (the “Company”) issued a press release announcing its financial results for the second 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 second quarter 2025 conference call on Wednesday, July 30, 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 | BayFirst Financial Corp. Press Release datedJuly,29, 2025 | * |
| 99.2 | BayFirst Financial Corp. Second Quarter 2025 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: | 7/29/2025 |
| 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 Second Quarter 2025 Results
ST. PETERSBURG, FL. — July 29, 2025 — BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (the “Bank”) today reported a net loss of $1.2 million, or $(0.39) per common share and diluted common share, for the second quarter of 2025, compared to a net loss of $0.3 million, or $(0.17) per common share and diluted common share, in the first quarter of 2025.
“As we announced last quarter, Management and the Board initiated a comprehensive strategic review aimed at derisking unguaranteed SBA 7(a) balances on the balance sheet and positioning the company for long-term growth and enhanced shareholder value,” stated Thomas G. Zernick, Chief Executive Officer. “Much progress is being made, and we expect to have additional information on our plans and the expected results in the coming weeks. In conjunction with the review, BayFirst reported charge offs and fair value write downs on related SBA 7(a) loans with elevated levels of risk. This will provide for a stronger balance sheet to take advantage of community banking opportunities. Furthermore, to offset the impact of these changes, the Board has voted to suspend common and preferred stock dividend payments and board of director fees. We will continue to evaluate strategic alternatives to ensure an optimal path in the best long-term interests of our shareholders, customers, and the communities we serve.
“We expanded our net interest margin and kept controllable operating expenses in check during the second quarter as compared to the first quarter, reflecting the continued strength in our community banking operations. Credit challenges extended into the second quarter, with net charge-offs and fair value write-downs on Bolt SBA 7(a) loans increasing compared to the prior quarter. Notably, we recorded some loan production measured at fair value because of production delays experienced with SBA's Standard Operating Procedures update, which increased application processing time and prevented us from executing some loan sales as planned. Although our core SBA and conventional commercial loan portfolio performance remains strong, many of our SBA small business clients continue to struggle in a difficult environment even though many have shown some resilience in the face of inflation and persistent high interest rates. As we monitor the evolving impact of the economy and recent policy changes, we remain committed to strong loan oversight and maintaining close relationships with our borrowers to support their long-term success.
“We continue to support our community bank first and foremost, serving individuals, families, and small businesses with a strong emphasis on stable, low-cost checking and savings accounts—products that are less sensitive to rate changes and contribute to a more predictable funding base,” said Zernick. “This focus not only supports relationship-driven banking but also broadens our reach across the vibrant Tampa Bay region, enhancing our franchise and creating more opportunities to offer residential mortgages, consumer loans, and small business financing. During the second quarter, we continued to focus on growing core deposits. This is a key component of our broader strategy to increase recurring revenue through net interest income and reduce our reliance on gains from the sale of government-guaranteed loans. As we continue to expand our conventional commercial and consumer loan portfolios, we are also taking proactive steps to manage credit risk. These efforts include strengthening underwriting standards for SBA 7(a) loans and exploring options such as portfolio sales to reduce exposure to unguaranteed SBA balances. We remain focused on aligning our loan growth with strong risk oversight to support long-term performance.
“A key achievement in the second quarter was the continued momentum in loan growth across our community bank operations, fueled by consistent demand across the greater Tampa Bay region,” said Zernick. “Community bank loans rose 3% during the quarter, demonstrating that our balance sheet growth is aligned with our strategic priority of
BayFirst Financial Corp. Reports Second Quarter 2025 Results
July 29, 2025
Page 2
growing the community bank segment. We are seeing the early results of strategic initiatives designed to enhance earnings and reduce our reliance on less predictable income sources. While the broader economic environment remains uncertain, our disciplined focus on local relationship banking and tailored financial solutions positions us well for continued improvement.”
Second Quarter 2025 Performance Review
•Net interest margin was 4.06% in the second quarter of 2025, an increase of 29 basis points from 3.77% in the first quarter of 2025 and an increase of 63 basis points from 3.43% in the second quarter of 2024.
•The Company’s government guaranteed loan team originated $106.4 million in new loans during the second quarter of 2025, a slight increase from $106.3 million of loans produced in the previous quarter, and an increase from $98.7 million of loans produced during the second quarter of 2024. Since the launch in 2022 of the Company's Bolt loan program, an SBA 7(a) loan product designed to expeditiously provide working capital loans of $150 thousand or less, the Company has originated 6,745 Bolt loans totaling $869.9 million, of which 538 Bolt loans totaling $67.9 million were originated during the second quarter.
•Loans held for investment increased by $41.0 million, or 3.8%, during the second quarter of 2025 to $1.13 billion and increased $117.5 million, or 11.7%, over the past year. During the quarter, the Company originated $157.0 million of loans and sold $66.8 million of government guaranteed loan balances.
•Deposits increased $35.5 million, or 3.1%, during the second quarter of 2025 and increased $121.4 million, or 11.6%, over the past year to $1.16 billion. The increase in deposits during the quarter was primarily due to increases in noninterest-bearing account balances, savings and money market account balances, and time deposit balances, partially offset by a decrease in interest-bearing transaction account balances.
•Book value and tangible book value at June 30, 2025 were $22.30 per common share, a decrease from $22.77 at March 31, 2025.
Results of Operations
Net Income (Loss)
The Company had a net loss of $1.2 million for the second quarter of 2025, compared to a net loss of $0.3 million in the first quarter of 2025 and net income of $0.9 million in the second quarter of 2024. The change in the second quarter of 2025 from the preceding quarter was primarily the result of an increase in provision for credit losses of $2.9 million, a decrease in gain on sale of government guaranteed loans of $1.2 million, and an increase in noninterest expense of $1.7 million. This was partially offset by an increase in net interest income of $1.3 million and an increase in government guaranteed loan fair value gains of $3.2 million. The change from the second quarter of 2024 was due to an increase in provision for credit losses of $4.3 million and an increase in noninterest expense of $0.9 million, partially offset by an increase in net interest income of $3.2 million.
In the first six months of 2025, the Company had a net loss of $1.6 million, a decrease from net income of $1.7 million for the first six months of 2024. The decrease was primarily due to an increase in provision for credit losses of $4.6 million, a decrease in government guaranteed loan fair value gains of $4.8 million, and a decrease of government guaranteed loan packaging fees of $1.1 million. This was partially offset by an increase in net interest income of $5.4 million and a decrease in noninterest expense of $1.0 million.
Net Interest Income and Net Interest Margin
Net interest income from continuing operations was $12.3 million in the second quarter of 2025, an increase from $11.0 million during the first quarter of 2025, and an increase from $9.2 million during the second quarter of 2024. The net interest margin was 4.06% in the second quarter of 2025, an increase of 29 basis points from 3.77% in the first quarter of 2025 and an increase of 63 basis points from 3.43% in the second quarter of 2024.
The increase in net interest income from continuing operations during the second quarter of 2025, as compared to the first quarter of 2025, was mainly due to an increase in loan interest income, including fees, of $1.7 million, partially offset by an increase in interest expense from borrowings of $0.6 million.
BayFirst Financial Corp. Reports Second Quarter 2025 Results
July 29, 2025
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The increase in net interest income from continuing operations during the second quarter of 2025, as compared to the year ago quarter, was mainly due to an increase in loan interest income, including fees, of $2.0 million and a decrease in interest expense on deposits of $1.2 million.
Net interest income from continuing operations was $23.3 million in the first six months of 2025, an increase from $17.9 million in the first six months of 2024. The increase was mainly due to an increase in loan interest income, including fees, of $3.6 million and a decrease in interest expense of $1.8 million.
Noninterest Income
Noninterest income from continuing operations was $10.8 million for the second quarter of 2025, which was an increase from $8.8 million in the first quarter of 2025 and a decrease from $11.7 million in the second quarter of 2024. The increase in the second quarter of 2025, as compared to the first quarter of 2025, was primarily the result of an increase in government guaranteed loan fair value gains of $3.2 million, partially offset by a decrease in gain on sale of government guaranteed loans of $1.2 million. The decrease in the second quarter of 2025, as compared to the second quarter of 2024, was the result of decreases in loan servicing income of $0.3 million, fair value gains on government guaranteed loans of $0.8 million, and government guaranteed loan packaging fees of $0.4 million, partially offset by an increase in gain on sale of government guaranteed loans of $0.5 million.
Noninterest income from continuing operations was $19.5 million for the first six months of 2025, which was a decrease from $25.9 million for the first six months of 2024. The decrease was primarily the result of a decrease in government guaranteed loan fair value gains of $4.8 million and a decrease in government guaranteed loan packaging fees of $1.1 million.
Noninterest Expense
Noninterest expense from continuing operations was $17.5 million in the second quarter of 2025 compared to $15.8 million in the first quarter of 2025 and $16.6 million in the second quarter of 2024. The increase in the second quarter of 2025, as compared to the prior quarter, was primarily due to an increase in loan origination and collection expenses of $1.5 million. The increase in the second quarter of 2025, as compared to the second quarter of 2024, was primarily due to higher loan origination and collection expenses of $0.6 million, occupancy expense of $0.3 million, and data processing expense of $0.4 million, partially offset by lower compensation expense of $0.1 million and marketing and business development expenses of $0.1 million.
Noninterest expense from continuing operations was $33.3 million for the first six months of 2025 compared to $34.4 million for the first six months of 2024. The decrease was the result of lower compensation expense of $1.6 million and professional service expense of $0.7 million, partially offset by higher occupancy and equipment expense of $0.8 million and data processing expense of $0.9 million.
Balance Sheet
Assets
Total assets increased $51.9 million, or 4.0%, during the second quarter of 2025 to $1.34 billion, mainly due to increases in loans held for investment of $41.0 million and cash and cash equivalents of $14.1 million. Compared to the end of the second quarter last year, total assets increased $126.0 million, or 10.3%, driven primarily by growth in loans held for investment of $117.5 million.
Loans
Loans held for investment increased $41.0 million, or 3.8%, during the second quarter of 2025 and $117.5 million, or 11.7%, over the past year to $1.13 billion, due to originations in both conventional community bank loans and government guaranteed loans, partially offset by government guaranteed loan sales.
Deposits
Deposits increased $35.5 million, or 3.1%, during the second quarter of 2025 and increased $121.4 million, or 11.6%, from the second quarter of 2024, ending June 30, 2025 at $1.16 billion. During the second quarter, there were increases in noninterest-bearing account balances of $3.5 million, savings and money market account balances of
BayFirst Financial Corp. Reports Second Quarter 2025 Results
July 29, 2025
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$25.2 million, and time deposit balances of $29.7 million, partially offset by a decrease in interest-bearing transaction account balances of $22.9 million. At June 30, 2025, approximately 80% 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 June 30, 2025, March 31, 2025, and June 30, 2024, the Company had $186.7 million, $112.3 million, and $60.1 million, respectively, of brokered deposits.
Asset Quality
The Company recorded a provision for credit losses in the second quarter of $7.3 million, compared to provisions of $4.4 million for the first quarter of 2025 and $3.0 million during the second quarter of 2024.
The ratio of ACL to total loans held for investment at amortized cost was 1.65% at June 30, 2025, 1.61% as of March 31, 2025, and 1.50% as of June 30, 2024. The ratio of ACL to total loans held for investment at amortized cost, excluding government guaranteed loan balances, was 1.85% at June 30, 2025, 1.84% as of March 31, 2025, and 1.73% as of June 30, 2024.
Net charge-offs for the second quarter of 2025 were $6.8 million, which was an increase from $3.3 million for the first quarter of 2025 and the second quarter of 2024. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 2.60% for the second quarter of 2025, compared to 1.28% in the first quarter of 2025 and 1.45% in the second quarter of 2024. Nonperforming assets were 1.79% of total assets as of June 30, 2025, compared to 2.08% as of March 31, 2025, and 1.28% as of June 30, 2024. Nonperforming assets, excluding government guaranteed loan balances, were 1.12% of total assets as of June 30, 2025, compared to 1.22% as of March 31, 2025, and 0.82% as of June 30, 2024.
Capital
The Bank’s Tier 1 leverage ratio was 8.11% as of June 30, 2025, compared to 8.56% as of March 31, 2025, and 8.73% as of June 30, 2024. The CET 1 and Tier 1 capital ratios to risk-weighted assets were 9.98% as of June 30, 2025, compared to 10.47% as of March 31, 2025, and 10.54% as of June 30, 2024. The total capital to risk-weighted assets ratio was 11.23% as of June 30, 2025, compared to 11.73% as of March 31, 2025, and 11.79% as of June 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 June 30, 2025 was 8.28%, as compared to 9.17% at December 31, 2024. The Bank has robust liquidity resources which include secured borrowings available from the Federal Home Loan Bank, the Federal Reserve, and lines of credit with other financial institutions. As of June 30, 2025, the Bank had $40.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions. This compared to $20.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions at March 31, 2025.
Conference Call
BayFirst will host a conference call on Wednesday, July 30, 2025, at 9:00 a.m. ET to discuss its second 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 29222. 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 8th largest SBA 7(a) lender by number of units originated and 18th largest by dollar volume nationwide through the SBA's quarter ended June 30, 2025. As of June 30, 2025, BayFirst Financial Corp. had $1.34 billion in total assets.
BayFirst Financial Corp. Reports Second Quarter 2025 Results
July 29, 2025
Page 5
Forward-Looking Statements
In addition to the historical information contained herein, this presentation includes "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. These statements are subject to many risks and uncertainties, including, but not limited to, the effects of health crises, global military hostilities, weather events, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the SEC, including, but not limited to those “Risk Factors” described in our most recent Form 10-K and Form 10-Q. Readers should note that the forward-looking statements included herein are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements.
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.
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July 29, 2025
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BAYFIRST FINANCIAL CORP.
SELECTED FINANCIAL DATA (Unaudited)
| At or for the three months ended | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (Dollars in thousands, except for share data) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||||||||
| Net income (loss) | $ | (1,237) | $ | (335) | $ | 9,776 | $ | 1,137 | $ | 866 | |||||
| Balance sheet data: | |||||||||||||||
| Average loans held for investment at amortized cost | 1,047,568 | 1,027,648 | 1,003,867 | 948,528 | 902,417 | ||||||||||
| Average total assets | 1,324,455 | 1,287,618 | 1,273,296 | 1,228,040 | 1,178,501 | ||||||||||
| Average common shareholders’ equity | 95,049 | 96,053 | 87,961 | 86,381 | 84,948 | ||||||||||
| Total loans held for investment | 1,125,799 | 1,084,817 | 1,066,559 | 1,042,445 | 1,008,314 | ||||||||||
| Total loans held for investment, excl gov’t gtd loan balances | 972,942 | 943,979 | 917,075 | 885,444 | 844,659 | ||||||||||
| Allowance for credit losses | 17,041 | 16,513 | 15,512 | 14,186 | 13,843 | ||||||||||
| Total assets | 1,343,867 | 1,291,957 | 1,288,297 | 1,245,099 | 1,217,869 | ||||||||||
| Total deposits | 1,163,796 | 1,128,267 | 1,143,229 | 1,112,196 | 1,042,388 | ||||||||||
| Common shareholders’ equity | 92,172 | 94,034 | 94,869 | 86,242 | 84,911 | ||||||||||
| Share data: | |||||||||||||||
| Basic earnings (loss) per common share | $ | (0.39) | $ | (0.17) | $ | 2.27 | $ | 0.18 | $ | 0.12 | |||||
| Diluted earnings (loss) per common share | (0.39) | (0.17) | 2.11 | 0.18 | 0.12 | ||||||||||
| Dividends per common share | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||
| Book value per common share | 22.30 | 22.77 | 22.95 | 20.86 | 20.54 | ||||||||||
| Tangible book value per common share (1) | 22.30 | 22.77 | 22.95 | 20.86 | 20.54 | ||||||||||
| Performance and capital ratios: | |||||||||||||||
| Return on average assets(2) | (0.37) | % | (0.10) | % | 3.07 | % | 0.37 | % | 0.29 | % | |||||
| Return on average common equity(2) | (6.83) | % | (3.00) | % | 42.71 | % | 3.48 | % | 2.26 | % | |||||
| Net interest margin(2) | 4.06 | % | 3.77 | % | 3.60 | % | 3.34 | % | 3.43 | % | |||||
| Asset quality ratios: | |||||||||||||||
| Net charge-offs | $ | 6,799 | $ | 3,301 | $ | 3,369 | $ | 2,757 | $ | 3,261 | |||||
| Net charge-offs/avg loans held for investment at amortized cost(2) | 2.60 | % | 1.28 | % | 1.34 | % | 1.16 | % | 1.45 | % | |||||
| Nonperforming loans(3) | $ | 21,665 | $ | 24,806 | $ | 17,607 | $ | 15,489 | $ | 12,312 | |||||
| Nonperforming loans (excluding gov't gtd balance)(3) | $ | 14,187 | $ | 15,078 | $ | 13,570 | $ | 10,992 | $ | 8,054 | |||||
| Nonperforming loans/total loans held for investment(3) | 2.09 | % | 2.42 | % | 1.75 | % | 1.62 | % | 1.34 | % | |||||
| Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) | 1.37 | % | 1.47 | % | 1.35 | % | 1.15 | % | 0.87 | % | |||||
| ACL/Total loans held for investment at amortized cost | 1.65 | % | 1.61 | % | 1.54 | % | 1.48 | % | 1.50 | % | |||||
| ACL/Total loans held for investment at amortized cost, excl government guaranteed loans | 1.85 | % | 1.84 | % | 1.79 | % | 1.70 | % | 1.73 | % | |||||
| Other Data: | |||||||||||||||
| Full-time equivalent employees | 300 | 305 | 299 | 295 | 302 | ||||||||||
| 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 Second Quarter 2025 Results
July 29, 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) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | |||||
| Total shareholders’ equity | $ | 108,223 | $ | 110,085 | $ | 110,920 | $ | 102,293 | $ | 100,962 |
| Less: Preferred stock liquidation preference | (16,051) | (16,051) | (16,051) | (16,051) | (16,051) | |||||
| Total equity available to common shareholders | 92,172 | 94,034 | 94,869 | 86,242 | 84,911 | |||||
| Less: Goodwill | — | — | — | — | — | |||||
| Tangible common shareholders' equity | $ | 92,172 | $ | 94,034 | $ | 94,869 | $ | 86,242 | $ | 84,911 |
| Common shares outstanding | 4,134,127 | 4,129,027 | 4,132,986 | 4,134,059 | 4,134,219 | |||||
| Tangible book value per common share | $ | 22.30 | $ | 22.77 | $ | 22.95 | $ | 20.86 | $ | 20.54 |
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July 29, 2025
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| BAYFIRST FINANCIAL CORP. | ||||||
|---|---|---|---|---|---|---|
| CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||
| (Dollars in thousands) | 6/30/2025 | 3/31/2025 | 6/30/2024 | |||
| Assets | ||||||
| Cash and due from banks | $ | 6,142 | $ | 6,517 | $ | 4,226 |
| Interest-bearing deposits in banks | 71,157 | 56,637 | 56,546 | |||
| Cash and cash equivalents | 77,299 | 63,154 | 60,772 | |||
| Time deposits in banks | 1,280 | 2,025 | 2,261 | |||
| Investment securities available for sale, at fair value (amortized cost $33,410, $39,507, and $42,885 at June 30, 2025, March 31, 2025, and June 30, 2024, respectively) | 30,256 | 36,318 | 38,685 | |||
| Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $9, $12, and $14 (fair value: $2,369, $2,356, and $2,273 at June 30, 2025, March 31, 2025, and June 30, 2024, respectively) | 2,491 | 2,488 | 2,486 | |||
| Nonmarketable equity securities | 6,551 | 5,480 | 7,132 | |||
| Government guaranteed loans held for sale | — | — | — | |||
| Government guaranteed loans held for investment, at fair value | 90,687 | 57,901 | 86,142 | |||
| Loans held for investment, at amortized cost | 1,035,112 | 1,026,916 | 922,172 | |||
| Allowance for credit losses on loans | (17,041) | (16,513) | (13,843) | |||
| Net Loans held for investment, at amortized cost | 1,018,071 | 1,010,403 | 908,329 | |||
| Accrued interest receivable | 9,495 | 9,153 | 8,000 | |||
| Premises and equipment, net | 32,407 | 32,769 | 39,088 | |||
| Loan servicing rights | 16,074 | 16,460 | 15,770 | |||
| Right-of-use operating lease assets | 15,160 | 15,484 | 2,305 | |||
| Bank owned life insurance | 26,881 | 26,696 | 26,150 | |||
| Other real estate owned | 400 | 132 | 1,633 | |||
| Other assets | 16,815 | 13,494 | 19,080 | |||
| Assets from discontinued operations | — | — | 36 | |||
| Total assets | $ | 1,343,867 | $ | 1,291,957 | $ | 1,217,869 |
| Liabilities: | ||||||
| Noninterest-bearing deposit accounts | $ | 109,698 | $ | 106,236 | $ | 94,040 |
| Interest-bearing transaction accounts | 238,215 | 261,074 | 236,447 | |||
| Savings and money market deposit accounts | 493,005 | 467,766 | 420,271 | |||
| Time deposits | 322,878 | 293,191 | 291,630 | |||
| Total deposits | 1,163,796 | 1,128,267 | 1,042,388 | |||
| FHLB borrowings | 40,000 | 20,000 | 55,000 | |||
| Subordinated debentures | 5,959 | 5,957 | 5,952 | |||
| Notes payable | 1,707 | 1,820 | 2,162 | |||
| Accrued interest payable | 1,148 | 1,053 | 1,172 | |||
| Operating lease liabilities | 13,819 | 14,102 | 2,497 | |||
| Deferred income tax liabilities | 895 | 648 | 1,000 | |||
| Accrued expenses and other liabilities | 8,320 | 10,025 | 6,565 | |||
| Liabilities from discontinued operations | — | — | 171 | |||
| Total liabilities | 1,235,644 | 1,181,872 | 1,116,907 |
BayFirst Financial Corp. Reports Second Quarter 2025 Results
July 29, 2025
Page 9
| BAYFIRST FINANCIAL CORP. | ||||||
|---|---|---|---|---|---|---|
| CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||
| (Dollars in thousands) | 6/30/2025 | 3/31/2025 | 6/30/2024 | |||
| Shareholders’ equity: | ||||||
| Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at June 30, 2025, March 31, 2025, and June 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 June 30, 2025, March 31, 2025, and June 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 June 30, 2025, March 31, 2025, and June 30, 2024; aggregate liquidation preference of $6,446 at June 30, 2025, March 31, 2025, and June 30, 2024 | 6,446 | 6,446 | 6,446 | |||
| Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,134,127, 4,129,027, and 4,134,219 shares issued and outstanding at June 30, 2025, March 31, 2025, and June 30, 2024, respectively | 54,739 | 54,657 | 54,773 | |||
| Accumulated other comprehensive loss, net | (2,368) | (2,378) | (3,113) | |||
| Unearned compensation | (1,006) | (1,006) | (1,081) | |||
| Retained earnings | 41,128 | 43,082 | 34,653 | |||
| Total shareholders’ equity | 108,223 | 110,085 | 100,962 | |||
| Total liabilities and shareholders’ equity | $ | 1,343,867 | $ | 1,291,957 | $ | 1,217,869 |
BayFirst Financial Corp. Reports Second Quarter 2025 Results
July 29, 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) | 6/30/2025 | 3/31/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | |||||
| Interest income: | ||||||||||
| Loans, including fees | $ | 21,459 | $ | 19,751 | $ | 19,414 | $ | 41,210 | $ | 37,642 |
| Interest-bearing deposits in banks and other | 1,046 | 934 | 1,013 | 1,980 | 1,972 | |||||
| Total interest income | 22,505 | 20,685 | 20,427 | 43,190 | 39,614 | |||||
| Interest expense: | ||||||||||
| Deposits | 9,282 | 9,431 | 10,448 | 18,713 | 20,663 | |||||
| Other | 875 | 255 | 797 | 1,130 | 1,027 | |||||
| Total interest expense | 10,157 | 9,686 | 11,245 | 19,843 | 21,690 | |||||
| Net interest income | 12,348 | 10,999 | 9,182 | 23,347 | 17,924 | |||||
| Provision for credit losses | 7,264 | 4,400 | 3,000 | 11,664 | 7,058 | |||||
| Net interest income after provision for credit losses | 5,084 | 6,599 | 6,182 | 11,683 | 10,866 | |||||
| Noninterest income: | ||||||||||
| Loan servicing income, net | 484 | 736 | 805 | 1,220 | 1,600 | |||||
| Gain on sale of government guaranteed loans, net | 6,136 | 7,327 | 5,595 | 13,463 | 13,684 | |||||
| Service charges and fees | 473 | 449 | 452 | 922 | 896 | |||||
| Government guaranteed loans fair value gain (loss), net | 2,442 | (755) | 3,202 | 1,687 | 6,507 | |||||
| Government guaranteed loan packaging fees | 577 | 716 | 1,022 | 1,293 | 2,429 | |||||
| Other noninterest income | 683 | 278 | 577 | 961 | 805 | |||||
| Total noninterest income | 10,795 | 8,751 | 11,653 | 19,546 | 25,921 | |||||
| Noninterest Expense: | ||||||||||
| Salaries and benefits | 8,113 | 7,998 | 7,829 | 16,111 | 15,834 | |||||
| Bonus, commissions, and incentives | 262 | 71 | 659 | 333 | 2,230 | |||||
| Occupancy and equipment | 1,579 | 1,634 | 1,273 | 3,213 | 2,383 | |||||
| Data processing | 2,078 | 2,045 | 1,647 | 4,123 | 3,207 | |||||
| Marketing and business development | 403 | 487 | 540 | 890 | 1,128 | |||||
| Professional services | 782 | 732 | 877 | 1,514 | 2,226 | |||||
| Loan origination and collection | 2,558 | 1,035 | 1,958 | 3,593 | 3,677 | |||||
| Employee recruiting and development | 462 | 617 | 549 | 1,079 | 1,146 | |||||
| Regulatory assessments | 352 | 339 | 279 | 691 | 561 | |||||
| Other noninterest expense | 939 | 855 | 999 | 1,794 | 1,991 | |||||
| Total noninterest expense | 17,528 | 15,813 | 16,610 | 33,341 | 34,383 | |||||
| Income (loss) before taxes from continuing operations | (1,649) | (463) | 1,225 | (2,112) | 2,404 | |||||
| Income tax expense (benefit) from continuing operations | (412) | (128) | 349 | (540) | 645 | |||||
| Net income (loss) from continuing operations | (1,237) | (335) | 876 | (1,572) | 1,759 | |||||
| Loss from discontinued operations before income taxes | — | — | (14) | — | (92) | |||||
| Income tax benefit from discontinued operations | — | — | (4) | — | (23) | |||||
| Net loss from discontinued operations | — | — | (10) | — | (69) | |||||
| Net income (loss) | (1,237) | (335) | 866 | (1,572) | 1,690 | |||||
| Preferred dividends | 386 | 385 | 386 | 771 | 771 | |||||
| Net income available to (loss attributable to) common shareholders | $ | (1,623) | $ | (720) | $ | 480 | $ | (2,343) | $ | 919 |
BayFirst Financial Corp. Reports Second Quarter 2025 Results
July 29, 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) | 6/30/2025 | 3/31/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | |||||
| Basic earnings (loss) per common share: | ||||||||||
| Continuing operations | $ | (0.39) | $ | (0.17) | $ | 0.12 | $ | (0.57) | $ | 0.24 |
| Discontinued operations | — | — | — | — | (0.02) | |||||
| Basic earnings (loss) per common share | $ | (0.39) | $ | (0.17) | $ | 0.12 | $ | (0.57) | $ | 0.22 |
| Diluted earnings (loss) per common share: | ||||||||||
| Continuing operations | $ | (0.39) | $ | (0.17) | $ | 0.12 | $ | (0.57) | $ | 0.24 |
| Discontinued operations | — | — | — | — | (0.02) | |||||
| Diluted earnings (loss) per common share | $ | (0.39) | $ | (0.17) | $ | 0.12 | $ | (0.57) | $ | 0.22 |
BayFirst Financial Corp. Reports Second Quarter 2025 Results
July 29, 2025
Page 12
Loan Composition
| (Dollars in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | |||||
|---|---|---|---|---|---|---|---|---|---|---|
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||
| Real estate: | ||||||||||
| Residential | $ | 356,559 | $ | 339,886 | $ | 330,870 | $ | 321,740 | $ | 304,234 |
| Commercial | 292,923 | 296,351 | 305,721 | 292,026 | 288,185 | |||||
| Construction and land | 53,187 | 46,740 | 32,914 | 33,784 | 35,759 | |||||
| Commercial and industrial | 223,239 | 234,384 | 226,522 | 200,212 | 192,140 | |||||
| Commercial and industrial - PPP | 191 | 457 | 941 | 1,656 | 2,324 | |||||
| Consumer and other | 93,333 | 93,889 | 93,826 | 92,546 | 85,789 | |||||
| Loans held for investment, at amortized cost, gross | 1,019,432 | 1,011,707 | 990,794 | 941,964 | 908,431 | |||||
| Deferred loan costs, net | 21,118 | 20,521 | 19,499 | 18,060 | 17,299 | |||||
| Discount on government guaranteed loans | (8,780) | (8,727) | (8,306) | (7,880) | (7,731) | |||||
| Premium on loans purchased, net | 3,342 | 3,415 | 3,739 | 3,860 | 4,173 | |||||
| Loans held for investment, at amortized cost, net | 1,035,112 | 1,026,916 | 1,005,726 | 956,004 | 922,172 | |||||
| Government guaranteed loans held for investment, at fair value | 90,687 | 57,901 | 60,833 | 86,441 | 86,142 | |||||
| Total loans held for investment, net | $ | 1,125,799 | $ | 1,084,817 | $ | 1,066,559 | $ | 1,042,445 | $ | 1,008,314 |
Nonperforming Assets (Unaudited)
| (Dollars in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nonperforming loans (government guaranteed balances), at amortized cost, gross | $ | 7,478 | $ | 9,728 | $ | 4,037 | $ | 4,497 | $ | 4,258 | |||||
| Nonperforming loans (unguaranteed balances), at amortized cost, gross | 14,187 | 15,078 | 13,570 | 10,992 | 8,054 | ||||||||||
| Total nonperforming loans, at amortized cost, gross | 21,665 | 24,806 | 17,607 | 15,489 | 12,312 | ||||||||||
| Nonperforming loans (government guaranteed balances), at fair value | 502 | 507 | — | 24 | 341 | ||||||||||
| Nonperforming loans (unguaranteed balances), at fair value | 1,430 | 1,419 | 1,490 | 1,535 | 1,284 | ||||||||||
| Total nonperforming loans, at fair value | 1,932 | 1,926 | 1,490 | 1,559 | 1,625 | ||||||||||
| OREO | 400 | 132 | 132 | — | 1,633 | ||||||||||
| Repossessed assets | — | 36 | 36 | 94 | — | ||||||||||
| Total nonperforming assets, gross | $ | 23,997 | $ | 26,900 | $ | 19,265 | $ | 17,142 | $ | 15,570 | |||||
| Nonperforming loans as a percentage of total loans held for investment(1) | 2.09 | % | 2.42 | % | 1.75 | % | 1.62 | % | 1.34 | % | |||||
| Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1) | 1.37 | % | 1.47 | % | 1.35 | % | 1.15 | % | 0.87 | % | |||||
| Nonperforming assets as a percentage of total assets | 1.79 | % | 2.08 | % | 1.50 | % | 1.38 | % | 1.28 | % | |||||
| Nonperforming assets (excluding government guaranteed balances) to total assets | 1.12 | % | 1.22 | % | 1.06 | % | 0.88 | % | 0.82 | % | |||||
| ACL to nonperforming loans(1) | 78.66 | % | 66.57 | % | 88.10 | % | 91.59 | % | 112.44 | % | |||||
| ACL to nonperforming loans (excluding government guaranteed balances)(1) | 120.12 | % | 109.52 | % | 114.31 | % | 129.06 | % | 171.88 | % |
(1) Excludes loans measured at fair value
Note: Transmitted on Globe Newswire on July 29, 2025, at 4:00 p.m. ET.
bayfirstinvestorpresenta
BayFirst Financial Corp. (NASDAQ:BAFN) 2025 – Second 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; 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 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)$1.34 SBA ORIGINATION SBA 7(a) ORIGINATOR IN THE NATION BY UNITS (3) #8 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 March 31, 2025 from Uniform Bank Performance Reports (2) Financial data as of June 30, 2025 (3) As of SBA’s quarter ended June 30, 2025 NET INTEREST MARGIN BASIS POINT IMPROVEMENT FROM THE PREVIOUS QUARTER29 DEPOSITS $121.4 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 • Advanced technology platform to support innovative products and services while improving efficiencies • PowerLOS is an automated, highly scalable SBA and commercial loan origination system • Working with FinTechs to offer new and innovative services through Mulesoft API platform • 12 banking centers in Tampa Bay- Sarasota region • Full suite of commercial and consumer loan and deposit products to meet the needs of Tampa Bay individuals, families and small businesses • BayFirst’s in-house government guaranteed banking platform • #8 SBA lender in units and #18 in dollars as of SBA's quarter ended 6/30/25 ◦ Small Loan Balance program: ▪ Includes our Bolt loans up to $150K, with up to 85% SBA government guarantee • Core program: ▪ Traditional SBA loans over $150K and up to $5 million ▪ USDA loans up to $25 million ▪ Supports organic loan generation through sales team and partners COMMUNITY BANKING TECHNOLOGY FOCUSED Technology focused community bank with diversified revenue streams GOVERNMENT GUARANTEED BANKING
6 ATTRACTIVE LOAN COMPOSITION Composition of Loans Held for Investment as of June 30, 2025 27.0% 15.8% 16.2% 17.7% 9.6% 4.7% 0.6% 8.4% 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 $157 million during the quarter • Loans held for investment grew $41 million during the quarter
7 SOLID DEPOSIT COMPOSITION Deposit Portfolio Balance Composition as of June 30, 2025 • Total Deposits increased $36 million for the quarter and $121 million over the last twelve months • Approximately 80% of deposits were insured as of June 30, 2025 • Short-term brokered deposits $187 million as of June 30, 2025 • Grew number of checking accounts by 5% YTD Noninterest Bearing Transaction, 9.4% Interest Bearing Transaction, 20.5% Savings & Money Market, 42.4% Time Deposits, 27.7% Deposit Highlights
8 INVESTMENT SECURITIES AFS Investment Securities Portfolio as of June 30, 2025 (fair market value, in thousands) Investment Securities Portfolio Details • Minimal exposure to market value losses due to modest investment securities portfolio (0.2% of total assets) • Other Comprehensive Loss of $2.4 million reduced Tangible Book Value by $0.57 as of June 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, $3,022 MBS: U.S. Government- sponsored enterprises, $5,011 CMO: U.S. Government- sponsored enterprises, $18,354 Corporate bonds, $3,869
9 2025 INITIATIVES Get ready to SOAR: • Strive for operational excellence • Optimize our technology platform to be more data driven • Accelerate our focus on business banking • Realign and diversify our sources of revenue
10 QUARTERLY EARNINGS For the Three Months Ended ($000s) 6/30/2025 3/31/2025 Increase/ (Decrease) 6/30/2024 Increase/ (Decrease) Interest income $ 22,505 $ 20,685 $ 1,820 $ 20,427 $ 2,078 Interest expense 10,157 9,686 471 11,245 (1,088) Net interest income 12,348 10,999 1,349 9,182 3,166 Provision for credit losses 7,264 4,400 2,864 3,000 4,264 Noninterest income 10,795 8,751 2,044 11,653 (858) Noninterest expense 17,528 15,813 1,715 16,610 918 Income tax expense (benefit) (412) (128) (284) 349 (761) Net income (loss) from continuing operations (1,237) (335) (902) 876 (2,113) Net income (loss) from discontinued operations — — — (10) 10 Net income (loss) (1,237) (335) (902) 866 (2,103) Preferred dividends 386 385 1 386 — Net income available to (loss attributable to) common shareholders $ (1,623) $ (720) $ (903) $ 480 $ (2,103)
11 Six Months Ended June 30, ($000s) 2025 2024 Increase/ (Decrease) Interest income $ 43,190 $ 39,614 $ 3,576 Interest expense 19,843 21,690 (1,847) Net interest income 23,347 17,924 5,423 Provision for credit losses 11,664 7,058 4,606 Noninterest income 19,546 25,921 (6,375) Noninterest expense 33,341 34,383 (1,042) Income tax expense (540) 645 (1,185) Net income (loss) from continuing operations (1,572) 1,759 (3,331) Net income (loss) from discontinued operations — (69) 69 Net income (loss) (1,572) 1,690 (3,262) Preferred dividends 771 771 — Net income available to (loss attributable to) common shareholders $ (2,343) $ 919 $ (3,262) YEAR TO DATE EARNINGS
12 KEY METRICS As of and For the Three Months Ended As of and For the Six Months Ended 6/30/2025 3/31/2025 6/30/2024 6/30/2025 6/30/2024 Return on average assets(1) (0.37) % (0.10) % 0.29 % (0.24) % 0.29 % Return on average common equity(1) (6.83) % (3.00) % 2.26 % (4.90) % 2.16 % Tangible book value per common share $ 22.30 $ 22.77 $ 20.54 $ 22.30 $ 20.54 Diluted earnings (loss) per common share $ (0.39) $ (0.17) $ 0.12 $ (0.57) $ 0.22 Total Capital (to risk-weighted assets)(2) 11.23 % 11.73 % 11.79 % 11.23 % 11.79 % Common Equity Tier 1 Capital (to risk- weighted assets)(2) 9.98 % 10.47 % 10.54 % 9.98 % 10.54 % Tier 1 Capital (to total assets)(2) 8.11 % 8.56 % 8.73 % 8.11 % 8.73 % Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) 1.37 % 1.47 % 0.87 % 1.37 % 0.87 % ACL/Total loans held for investment at amortized cost 1.65 % 1.61 % 1.50 % 1.65 % 1.50 % (1) Annualized (2) Capital Ratios are at the Bank (3) Excludes loans measured at fair value
13 QTD INTEREST MARGIN 3.43% 3.34% 3.60% 3.77% 4.06% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 0.0% 2.0% 4.0% 6.0% Net Interest Margin Loan Yield 7.93% 7.84% 7.64% 7.37% 7.67% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 0.0% 2.5% 5.0% 7.5% 10.0% Cost of Funds Net Interest Margin ($ in millions) 4.66% 4.68% 4.19% 3.76% 3.75% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 0.0% 2.0% 4.0% 6.0% $9.2 $9.4 $10.7 $11.0 $12.3 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $0.0 $5.0 $10.0 $15.0
14 $85 $86 $95 $94 $92 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $20 $40 $60 $80 $100 $120 Strong balance sheet on track for continued sustainable growth STRATEGIC GROWTH Total Assets ($M) Total Loans HFI ($M) Total Deposits ($M) Tangible Common Equity ($M) $1,218 $1,245 $1,288 $1,292 $1,344 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400 $1,008 $1,042 $1,067 $1,085 $1,126 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $0 $200 $400 $600 $800 $1,000 $1,200 $1,042 $1,112 $1,143 $1,128 $1,164 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $0 $200 $400 $600 $800 $1,000 $1,200 $1,400
15 SUMMARY OF KEY RATIOS ROAA (%)(1) ROATCE (%)(1) Net Interest Margin (%)(1) Noninterest Income / Total Revenue from Continuing Operations 0.29% 0.37% 0.34% (0.10)% (0.37)% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 (0.50)% (0.25)% 0.00% 0.25% 0.50% 2.26% 3.48% 4.93% (3.00)% (6.83)% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 (10.00)% (5.00)% 0.00% 5.00% 10.00% 3.43% 3.34% 3.60% 3.77% 4.06% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 55.93% 56.50% 49.94% 44.31% 46.64% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 20% 30% 40% 50% 60% 70% (1) Annualized (2) Excludes gain on sale of premises and equipment of $11,649 ($8,692, net of tax) related to sale-leaseback transaction (2) (2) (2)
16 TANGIBLE BOOK VALUE PER COMMON SHARE $20.54 $20.86 $22.95 $22.77 $22.30 Tangible Book Value Per Common Share Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $10 $13 $15 $18 $20 $23 $25
17 COMMUNITY BANKING PERFORMANCE Q2 2025 Loan Production Summary: ▪ Loan production during the quarter was $50.7 million(1) ▪ Loans held for investment, including government guaranteed loans, increased by a net $41.0 million QoQ Q2 2025 Deposit Summary: ▪ Deposit balances increased $35.5 million QoQ ▪ Deposit portfolio increased by 0.3% in number of accounts (to 21,186 accounts totaling $1.16 billion) QoQ Treasury Management: • Expanded treasury management services through new platform and additional treasury management associates Q2 2025 Highlights Banking Center & Deposits ($ in 000s) Total Deposits # Branch Year Opened 6/30/2025 6/30/2024 6/30/2023 1 St. Petersburg(2) 2017 $ 399,221 $ 281,713 $ 277,276 2 Seminole 1999 166,180 144,597 136,807 3 Pinellas Park 2005 100,066 93,725 90,211 4 Downtown Sarasota 2018 142,721 164,424 173,695 5 Countryside 2018 59,276 61,113 64,209 6 West Tampa 2020 101,846 104,359 110,112 7 Belleair Bluffs 2021 49,052 43,841 34,891 8 West Bradenton 2022 56,849 56,714 41,359 9 Carrollwood 2023 37,180 46,114 16,222 10 Bee Ridge 2023 29,212 27,596 — 11 North Sarasota 2023 2,340 679 — 12 South Tamiami Trail 2024 19,853 17,513 — Total Branches (12) $ 1,163,796 $ 1,042,388 $ 944,782 (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
18 $33.7 $44.0 $26.8 $29.0 $36.2 $8.6 $13.3 $13.3 $15.5 $6.4 $10.7 $3.7 $5.6 $0.5 $3.1 $27.0 $11.3 $5.3 $6.1 $5.0 Real estate - residential (1) Real estate - commercial Commercial and industrial Consumer and other 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 $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
19 $587.3 $621.5 $645.3 $675.1 $698.0 $314.0 $331.5 $340.2 $355.9 $378.2 $172.4 $178.4 $189.0 $200.8 $202.9 $27.1 $29.1 $30.7 $31.1 $28.5 $73.8 $82.4 $85.4 $87.2 $88.5 Real estate - residential (1) Real estate - commercial Commercial and industrial Consumer and other 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 $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
20 $20 $44 $58 $43 2022 2023 2024 YTD 2025 $— $10 $20 $30 $40 $50 $60 $70 • 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)
21 $99 $94 $108 $106 $106 603 553 543 525 583 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 $0 $20 $40 $60 $80 $100 $120 480 510 540 570 600 630 660 • Nationally ranked #8 in total SBA units and #18 in dollars for the SBA’s quarter ended June 30, 2025 • Strategic initiative to expand USDA business and industry lending program: 2 experienced USDA lenders to support this effort • Total Q2 2025 government guaranteed loan production increased 7.8% from Q2 2024 • 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 $869.9 million, including $67.9 million in Q2 2025 ◦ Use of automation program through proprietary loan origination system PowerLOS and Open API, allowing increased volume and efficiency while limiting additional staff GOVERNMENT GUARANTEED BANKING Q2 2025 Highlights Government Guaranteed Loan Amount ($M) and Unit Volume
22 $1,358 $1,405 $1,483 $1,488 $1,505 $392 $395 $426 $422 $440 $966 $1,010 $1,057 $1,066 $1,065 HFI Government Guaranteed Loans (1) Government Guaranteed Loans Serviced for Others 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 $0 $250 $500 $750 $1,000 $1,250 $1,500 $1,750 Government Guaranteed Loans Guaranteed Loans HFI and Loans Serviced for Others ($M) (1) Excludes PPP loans
23 Quarter Ended ($000s) 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 SBA 7(a) $ 24,624 $ 26,982 $ 23,447 $ 22,912 $ 38,441 SBA 504 2,593 1,359 1,982 1,388 — USDA — 800 17,450 21,550 — Bolt 71,459 65,218 64,905 60,473 67,922 Total $ 98,676 $ 94,359 $ 107,784 $ 106,323 $ 106,363 GOVERNMENT GUARANTEED LOAN ORIGINATIONS
24 ASSET QUALITY 1.45% 1.16% 1.34% 1.28% 2.60% Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 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 1.50% 1.48% 1.54% 1.61% 1.65% 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 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) 171.88% 129.06% 114.31% 109.52% 120.12% 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 0.0% 50.0% 100.0% 150.0% 200.0% 2.01% 2.09% 2.16% 2.51% 2.30% 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 0.0% 1.0% 2.0% 3.0% (1) Excludes government guaranteed balances (2) Excludes loans measured at fair value
25 APPENDIX
26 OWNERSHIP OVERVIEW Total Common Stock Ownership Mix Note: Ownership information based on most recently disclosed common shares outstanding of 4,129,027 as of 7/21/25 Source: S&P Capital IQ Pro Vanguard Group Inc., 2.14% First Manhattan Co., 3.04% 1st & Main Growth Partners, 3.64% All Other Institutions, 5.62% Mark S. Berset, 6.94% All Other Directors/ Executive Officers, 7.88% Public/Other, 70.74%
27 DEPOSITS IN TAMPA BAY-SARASOTA REGION Total Deposits (Total Assets <$10BN and HQ in Tampa Bay-Sarasota Region) Note: Deposit data as of March 31, 2025 Source: Uniform Bank Performance Reports Average Deposits Branches Deposits per Branch Rank Institution ($ millions) (No.) ($ millions) 1 Bank of Tampa $2,748 13 $211 2 BayFirst National Bank 1,128 12 94 3 Flagship Bank 602 6 100 4 Climate First 871 3 290 5 TCM Bank NA 277 1 277 6 Gulfside Bank 290 2 145 7 Central Bank 284 4 71 8 Waterfall Bank 271 1 271 9 Century Bank of Florida 93 1 93
28 LIQUIDITY SOURCES • Available Liquidity ◦ $79 million in cash and due from other banks ◦ $30 million in AFS investment securities • Off Balance Sheet Sources of Liquidity ◦ $156 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 $82 million in brokered deposits (1) ◦ Up to $403 million in listing service deposits (1) (1) Based on Bank’s policy limits Data as of June 30, 2025
29 EXPERIENCED LEADERSHIP TEAM • Joined BayFirst as CFO in Q2 2018; Prior to joining BayFirst, Controller of Central Bank & Trust Co., a $2.5 billion privately held financial institution in Lexington, Kentucky, from May 2014 to June 2018 • Approximately 16 years with Crowe LLP as an auditor in the financial institution practice; served over 80 financial institution clients with assets ranging from $50 million to $4.5 billion throughout career, including several SEC registrants and FDICIA reporting institutions • B.S. in Accounting from the University of Kentucky • Joined BayFirst in Q1 2016 • Previous experience includes Florida Market President of Stearns Bank, SBA Product Manager of HomeBanc, and Community Bank President and SBA President of Republic Bank (MI) • B.A. in Business Administration from University of Notre Dame Robin Oliver Thomas G. Zernick Chief Executive Officer & Director of BayFirst and the Bank President, Chief Operating Officer & 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
30 EXPERIENCED LEADERSHIP TEAM • Joined BayFirst in Q4 2017; Prior to joining BayFirst, over fifteen years of Mortgage Banking administration experience as well as Human Resources experience supporting mid-size financial institutions • B.B.S from The University of Florida and M.B.A from The University of Tampa Brandi Jaber Susan Khayat EVP, Chief Production 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