BayFirst Financial Corp. Reports Fourth Quarter 2024 Results

ST. PETERSBURG, Fla., Jan. 30, 2025 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (the “Bank”) today reported net income of $9.8 million, or $2.27 per common share, or $2.11 per diluted common share, for the fourth quarter of 2024, an increase of 759.8% compared to $1.1 million, or $0.18 per common share and diluted common share, in the third quarter of 2024. Net income for the year ended December 31, 2024 was $12.6 million, or $2.68 per common share, or $2.62 per diluted common share, compared to $5.7 million, or $1.16 per common share, or $1.12 per diluted common share for the year ended December 31, 2023. “We reported strong fourth quarter 2024 results, highlighted by quarterly net interest margin expansion and improved operating efficiencies,” stated Thomas G. Zernick, Chief Executive Officer. “Net income increased substantially compared to the preceding quarter, led by increases in net interest income, higher gain on sale of government guaranteed loans, and a gain on sale of two branch office properties, which was part of a sale-leaseback transaction. It’s worth noting that we continue to lease these two branch offices, resulting in no impact to our existing branch network. As a result of this transaction, we recorded an after-tax gain on sale of the properties of $8.7 million during the fourth quarter of 2024.” “The strength of our community bank business model, which includes serving individuals, families, and small businesses, coupled with results from our government guaranteed banking division, continues to fuel our operating results,” Zernick continued. “Our government guaranteed banking team had a solid quarter, producing $107.8 million in new government guaranteed loans, which was an improvement compared to the third quarter of 2024. Our lenders remain focused on meeting loan origination targets, while also adhering to prudently conservative credit quality metrics. “One of the highlights of the full year 2024 was the $1.1 million reduction in noninterest expenses compared to 2023. When we completed our near-term branch expansion plans in early 2024, we focused on reducing operating expenses by leveraging technology investments to better manage headcount and related incentive compensation, while at the same time growing the franchise. As we look to the new year, we will continue initiatives that are designed to further increase our efficiency, lower costs, and maximize the investments we've already made in technology and in our banking centers. While we are pleased with the progress during the fourth quarter and the year, we are excited to continue our forward momentum and further boost our results in 2025,” said Zernick. “Additionally, the Board of Directors authorized a share repurchase program on January 28, 2025. We believe our stock offers an attractive investment and repurchasing stock is a means for building long-term shareholder value,” said Zernick. “We are confident about the growth of our Company, and we believe that when our shares are undervalued, repurchases represent a value-enhancing deployment of capital.” Fourth Quarter 2024 Performance Review In December 2024, the Company entered into a sale-leaseback agreement for two branch office properties for an aggregate cash purchase price of $15.0 million. As a result of this transaction, the Company recorded a pre-tax gain on sale of the properties of $11.6 million.The Company’s government guaranteed loan team originated $107.8 million in new loans during the fourth quarter of 2024, an increase from $94.4 million of loans produced in the previous quarter, and a decrease from $144.9 million of loans produced during the fourth quarter of 2023. Since the launch in 2022 of the Company's Bolt loan program, an SBA 7(a) loan product designed to expeditiously provide working capital loans of $150 thousand or less, the Company has originated 5,726 Bolt loans totaling $741.5 million, of which 495 Bolt loans totaling $64.8 million were originated during the fourth quarter. No newly originated government guaranteed loans were measured at fair value during the fourth quarter of 2024 versus $34 million in the third quarter of 2024 and $53 million in the fourth quarter of 2023.Loans held for investment increased by $24.1 million, or 2.3%, during the fourth quarter of 2024 to $1.07 billion and increased $150.8 million, or 16.5%, over the past year. During the quarter, the Company originated $158.7 million of loans and sold $94.5 million of government guaranteed loan balances.Deposits increased $31.0 million, or 2.8%, during the fourth quarter of 2024 and increased $158.1 million, or 16.0%, over the past year to $1.14 billion.Book value and tangible book value at December 31, 2024 were $22.95 per common share, an increase from $20.86 at September 30, 2024.Net interest margin increased by 26 basis points to 3.60% in the fourth quarter of 2024, from 3.34% in the third quarter of 2024 and 12 basis points from 3.48%in the fourth quarter of 2023. Results of Operations Net Income Net income was $9.8 million for the fourth quarter of 2024, compared to $1.1 million in the third quarter of 2024 and $1.7 million in the fourth quarter of 2023. The increase in net income for the fourth quarter of 2024 from the preceding quarter was primarily the result of the pre-tax gain on sale of two branch office properties of $11.6 million, which was part of a sale-leaseback transaction. Also contributing to higher earnings was an increase in net interest income of $1.2 million, an increase in gain on sale of government guaranteed loans of $2.3 million, and a decrease in noninterest expense of $1.7 million, partially offset by an increase in provision for credit losses of $1.4 million, a decrease in government guaranteed loan fair value gains of $3.5 million, and an increase in income tax expense on continuing operations of $2.9 million. The decrease in fair value gains on government guaranteed loans was the result of not measuring any newly originated government guaranteed loans at fair value in the fourth quarter. The increase in net income from the fourth quarter of 2023 was due to the pre-tax gain on sale of two branch office properties of $11.6 million, an increase in net interest income of $1.8 million, an increase in gain on sale of government guaranteed loans of $1.4 million, and lower noninterest expense of $3.1 million. This was partially offset by an increase in provision for credit losses of $1.8 million, a decrease in government guaranteed loan fair value gains of $4.8 million, and an increase in income tax expense on continuing operations of $2.6 million. For the year ended December 31, 2024, net income was $12.6 million, an increase from $5.7 million from the year ended December 31, 2023. The increase was primarily due to the pre-tax gain on sale of two branch office properties of $11.6 million, an increase in net interest income of $1.6 million, higher gain on sale of government guaranteed loans of $3.7 million, and lower noninterest expense of $0.9 million, partially offset by higher provision for credit losses of $4.3 million, a decrease in government guaranteed fair value gains of $5.9 million and higher income tax expense on continuing operations of $2.2 million. Net Interest Income and Net Interest Margin Net interest income from continuing operations was $10.7 million in the fourth quarter of 2024, an increase from $9.4 million during the third quarter of 2024, and an increase from $8.9 million during the fourth quarter of 2023. The net interest margin increased by 26 basis points to 3.60% in the fourth quarter of 2024, from 3.34% in the third quarter of 2024 and 12 basis points from 3.48%in the fourth quarter of 2023. The increase in net interest income from continuing operations during the fourth quarter of 2024, as compared to the third quarter of 2024, was mainly due to a decrease in interest cost on deposits of $1.0 million. The increase in net interest income from continuing operations during the fourth quarter of 2024, as compared to the year ago quarter, was mainly due to an increase in loan interest income, including fees, of $3.0 million, partially offset by higher interest expense on deposits of $0.9 million. Net interest income from continuing operations was $38.0 million for the year ended December 31, 2024, an increase from $36.4 million for the year ended December 31, 2023. The increase was mainly due to an increase in loan interest income, including fees, of $15.6 million, partially offset by an increase in interest expense on deposits of $12.1 million. Noninterest Income Noninterest income from continuing operations was $22.3 million for the fourth quarter of 2024, which was an increase from $12.3 million in the third quarter of 2024 and an increase from $14.7 million in the fourth quarter of 2023. The increase in the fourth quarter of 2024, as compared to the third quarter of 2024, was primarily the result of the pre-tax gain on sale of two branch office properties of $11.6 million, which was part of a sale-leaseback transaction, and an increase in gain on sale of government guaranteed loans of $2.3 million, partially offset by a decrease in government guaranteed loan fair value gains of $3.5 million. The decrease in fair value gains on government guaranteed loans was the result of not measuring any newly originated government guaranteed loans at fair value in the fourth quarter. The increase in the fourth quarter of 2024, as compared to the fourth quarter of 2023, was the result of the pre-tax gain on sale of two branch office properties of $11.6 million and an increase in gain on sale of government guaranteed loans of $1.4 million, partially offset by a decrease in fair value gains on government guaranteed loans of $4.8 million. Noninterest income from continuing operations was $60.5 million for the year ended 2024, which was an increase from $49.8 million for the year ended 2023. The increase was primarily the result of the pre-tax gain on sale of two branch office properties of $11.6 million and an increase in gain on sale of government guaranteed loans of $3.7 million, partially offset by a decrease in fair value gains on government guaranteed loans of $5.9 million. Noninterest Expense Noninterest expense from continuing operations was $15.3 million in the fourth quarter of 2024 compared to $17.1 million in the third quarter of 2024 and $18.5 million in the fourth quarter of 2023. The decrease in the fourth quarter of 2024, as compared to the prior quarter, was primarily due to a decrease in compensation expense of $0.6 million and a decrease in loan origination and collection expense of $1.2 million. The decrease in the fourth quarter of 2024, as compared to the fourth quarter of 2023, was primarily due to lower compensation expense of $1.2 million and lower loan origination and collection expenses of $2.0 million. Noninterest expense from continuing operations was $66.8 million for the year ended 2024 compared to $67.7 million for the year ended 2023. The decrease was the result of decreases in compensation expenses of $1.2 million, loan origination and collection expense of $1.0 million, and marketing and business development expenses of $1.3 million. The decreases were partially offset by increases in data processing expenses of $1.1 million, regulatory assessments of $0.4 million, and other noninterest expenses of $0.8 million. Balance Sheet Assets Total assets increased $43.2 million, or 3.5%, during the fourth quarter of 2024 to $1.29 billion, mainly due to increases in loans held for investment of $24.1 million, cash and cash equivalents of $13.4 million, and right-of-use operating lease assets of $13.8 million, partially offset by a decrease in premises and equipment of $5.5 million. The increase in the right-of-use operating lease asset and decrease in premises and equipment was primarily the result of the fourth quarter 2024 sale-leaseback transaction. Compared to the end of the fourth quarter last year, total assets increased $170.5 million, or 15.3%, driven by growth of loans held for investment of $150.8 million, higher cash and cash equivalents of $19.4 million, and an increase in right-of-use operating lease asset of $13.4 million, partially offset by a decrease in premises and equipment of $5.6 million. Loans Loans held for investment increased $24.1 million, or 2.3%, during the fourth quarter of 2024 and $150.8 million, or 16.5%, over the past year to $1.07 billion, due to originations in both conventional community bank loans and government guaranteed loans, partially offset by government guaranteed loan sales. Deposits Deposits increased $31.0 million, or 2.8%, during the fourth quarter of 2024 and increased $158.1 million, or 16.0%, from the fourth quarter of 2023, ending December 31, 2024 at $1.14 billion. During the fourth quarter, there were increases in noninterest-bearing deposit account balances of $5.7 million, interest-bearing transaction account balances of $8.9 million, and savings and money market deposit account balances of $19.1 million, partially offset by a decrease in time deposit balances of $2.7 million. The majority of the deposits are generated through the community bank in the Tampa Bay/Sarasota area. At December 31, 2024, approximately 74% of total deposits were insured by the FDIC. At times, the Bank has brokered time deposit and non-maturity deposit relationships available to diversify its funding sources. At December 31, 2024, September 30, 2024, and December 31, 2023, the Company had $112.1 million, $76.7 million, and $0.2 million, respectively, of brokered deposits. Asset Quality The Company recorded a provision for credit losses in the fourth quarter of $4.5 million, compared to provisions of $3.1 million for the third quarter of 2024 and $2.7 million during the fourth quarter of 2023. The ratio of ACL to total loans held for investment at amortized cost was 1.54% at December 31, 2024, 1.48% as of September 30, 2024, and 1.64% as of December 31, 2023. The ratio of ACL to total loans held for investment at amortized cost, excluding government guaranteed loan balances, was 1.79% at December 31, 2024, 1.70% as of September 30, 2024, and 2.03% as of December 31, 2023. To date, we have not learned of a material loss to the Company as a result of the recent hurricanes. Therefore, additional loss reserves have not been deemed necessary. Net charge-offs for the fourth quarter of 2024 were $3.4 million, which was an increase from $2.8 million for the third quarter of 2024 and $2.6 million in the fourth quarter of 2023. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 1.34% for the fourth quarter of 2024, compared to 1.16% in the third quarter of 2024 and 1.27% in the fourth quarter of 2023. Nonperforming assets to total assets were 1.50% as of December 31, 2024, compared to 1.38% as of September 30, 2024, and 0.92% as of December 31, 2023. Nonperforming assets, excluding government guaranteed loan balances, to total assets were 1.06% as of December 31, 2024, compared to 0.88% as of September 30, 2024, and 0.74% as of December 31, 2023. As we discussed in previous quarters, the Bank developed an express modification program for SBA 7(a) borrowers to help those borrowers who are challenged with larger payments in the higher interest rate environment compared to interest rates at the time the loans were originated. To date, 496 SBA 7(a) borrowers have been offered loan modification options. These efforts have helped and are expected to continue to help reduce the risk of loss. Capital The Bank’s Tier 1 leverage ratio was 8.82% as of December 31, 2024, compared to 8.41% as of September 30, 2024, and 9.38% as of December 31, 2023. The CET 1 and Tier 1 capital ratio to risk-weighted assets were 10.89% as of December 31, 2024, compared to 10.14% as of September 30, 2024, and 11.77% as of December 31, 2023. The total capital to risk-weighted assets ratio was 12.14% as of December 31, 2024, compared to 11.39% as of September 30, 2024, and 13.03% as of December 31, 2023. Liquidity The Bank's overall liquidity position remains strong and stable with liquidity in excess of internal minimums as stated by policy and monitored by management and the Board. The on-balance sheet liquidity ratio at December 31, 2024 was 9.17%, as compared to 9.33% at December 31, 2023. The Bank has robust liquidity resources which include secured borrowings available from the Federal Home Loan Bank, the Federal Reserve, and lines of credit with other financial institutions. As of December 31, 2024, the Bank had no borrowings from the FHLB, the FRB or other financial institutions. This compares to $10.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions at September 30, 2024 and December 31, 2023. Recent Events Share Repurchase Program The Company announced that its Board of Directors has adopted a share repurchase program. Under the repurchase program, the Company may repurchase up to $2.0 million of the Company’s outstanding shares, over a period beginning on January 28, 2025, and continuing until the earlier of the completion of the repurchase, or December 31, 2025, or termination of the program by the Board of Directors. First Quarter Common Stock Dividend. On January 28, 2025, BayFirst’s Board of Directors declared a first quarter 2025 cash dividend of $0.08 per common share. The dividend will be payable March 15, 2025 to common shareholders of record as of March 1, 2025. The Company has continuously paid quarterly common stock cash dividends since 2016. Conference Call BayFirst’s management team will host a conference call on Friday, January 31, 2025, at 9:00 a.m. ET to discuss its fourth quarter results. Interested investors may listen to the call live under the Investor Relations tab at www.bayfirstfinancial.com. Investment professionals are invited to dial (800) 549-8228 to participate in the call using Conference ID 71006. A replay of the call will be available for one year at www.bayfirstfinancial.com. About BayFirst Financial Corp. BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida which commenced operations on September 1, 2000. Its primary source of income is derived from its wholly owned subsidiary, BayFirst National Bank, a national banking association which commenced business operations on February 12, 1999. The Bank currently operates twelve full-service banking offices throughout the Tampa Bay-Sarasota region and offers a broad range of commercial and consumer banking services to businesses and individuals. It was named the best bank in Florida in 2024, according to Forbes and was the 9th largest SBA 7(a) lender by number of units originated and 16th largest by dollar volume nationwide through the SBA's quarter ended December 31, 2024. As of December 31, 2024, BayFirst Financial Corp. had $1.29 billion in total assets. Forward-Looking Statements In addition to the historical information contained herein, this presentation includes "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. These statements are subject to many risks and uncertainties, including, but not limited to, the effects of health crises, global military hostilities, weather events, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the SEC, including, but not limited to those “Risk Factors” described in our most recent Form 10-K and Form 10-Q. Readers should note that the forward-looking statements included herein are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Contacts: Thomas G. ZernickScott J. McKimChief Executive OfficerChief Financial Officer727.399.5680727.521.7085 BAYFIRST FINANCIAL CORP. SELECTED FINANCIAL DATA (Unaudited) At or for the three months ended(Dollars in thousands, except for share data)12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023Balance sheet data: Average loans held for investment at amortized cost$1,003,867 $948,528 $902,417 $855,040 $825,196 Average total assets 1,273,296 1,228,040 1,178,501 1,126,315 1,108,550 Average common shareholders’ equity 87,961 86,381 84,948 85,385 82,574 Total loans held for investment 1,066,559 1,042,445 1,008,314 934,868 915,726 Total loans held for investment, excl gov’t gtd loan balances 917,075 885,444 844,659 776,302 698,106 Allowance for credit losses 15,512 14,186 13,843 13,906 13,497 Total assets 1,288,297 1,245,099 1,217,869 1,144,194 1,117,766 Common shareholders’ equity 94,869 86,242 84,911 84,578 84,656 Share data: Basic earnings per common share$2.27 $0.18 $0.12 $0.11 $0.32 Diluted earnings per common share 2.11 0.18 0.12 0.11 0.32 Dividends per common share 0.08 0.08 0.08 0.08 0.08 Book value per common share 22.95 20.86 20.54 20.45 20.60 Tangible book value per common share (1) 22.95 20.86 20.54 20.45 20.60 Performance and capital ratios: Return on average assets(2) 3.07% 0.37% 0.29% 0.29% 0.60%Return on average common equity(2) 42.71% 3.48% 2.26% 2.06% 6.37%Net interest margin(2) 3.60% 3.34% 3.43% 3.42% 3.48%Dividend payout ratio 3.52% 43.98% 68.91% 75.27% 25.03%Asset quality ratios: Net charge-offs$3,369 $2,757 $3,261 $3,652 $2,612 Net charge-offs/avg loans held for investment at amortized cost(2) 1.34% 1.16% 1.45% 1.71% 1.27%Nonperforming loans(3)$17,607 $15,489 $12,312 $9,877 $9,688 Nonperforming loans (excluding gov't gtd balance)(3)$13,570 $10,992 $8,054 $7,568 $8,264 Nonperforming loans/total loans held for investment(3) 1.75% 1.62% 1.34% 1.15% 1.18%Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) 1.35% 1.15% 0.87% 0.88% 1.00%ACL/Total loans held for investment at amortized cost 1.54% 1.48% 1.50% 1.62% 1.64%ACL/Total loans held for investment at amortized cost, excl government guaranteed loans 1.79% 1.70% 1.73% 1.88% 2.03%Other Data: Full-time equivalent employees 299 295 302 313 305 Banking center offices 12 12 12 12 11 (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 GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures Some of the financial measures included in this report are not measures of financial condition or performance recognized by GAAP. These non-GAAP financial measures include tangible common shareholders' equity and tangible book value per common share. Our management uses these non-GAAP financial measures in its analysis of our performance, and we believe that providing this information to financial analysts and investors allows them to evaluate capital adequacy. The following presents these non-GAAP financial measures along with their most directly comparable financial measures calculated in accordance with GAAP: Tangible Common Shareholders' Equity and Tangible Book Value Per Common Share (Unaudited) As of(Dollars in thousands, except for share data) December 31, 2024 September 30, 2024 June 30, 2024 March 31, 2024 December 31, 2023Total shareholders’ equity $110,920 $102,293 $100,962 $100,629 $100,707 Less: Preferred stock liquidation preference (16,051) (16,051) (16,051) (16,051) (16,051)Total equity available to common shareholders 94,869 86,242 84,911 84,578 84,656 Less: Goodwill — — — — — Tangible common shareholders' equity $94,869 $86,242 $84,911 $84,578 $84,656 Common shares outstanding 4,132,986 4,134,059 4,134,219 4,134,914 4,110,470 Tangible book value per common share $22.95 $20.86 $20.54 $20.45 $20.60 BAYFIRST FINANCIAL CORP.CONSOLIDATED BALANCE SHEETS(Dollars in thousands)12/31/20249/30/202412/31/2023Assets(Unaudited)(Unaudited) Cash and due from banks$4,499 $4,708 $4,099 Interest-bearing deposits in banks 73,289 59,675 54,286 Cash and cash equivalents 77,788 64,383 58,385 Time deposits in banks 2,270 2,264 4,646 Investment securities available for sale, at fair value (amortized cost $40,279, $41,104, and $43,597 at December 31, 2024, September 30, 2024, and December 31, 2023, respectively) 36,291 37,984 39,575 Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $12, $13, and $17 (fair value: $2,346, $2,321, and $2,263 at December 31, 2024, September 30, 2024, and December 31, 2023, respectively) 2,488 2,487 2,484 Nonmarketable equity securities 4,526 4,997 4,770 Government guaranteed loans held for sale — 595 — Government guaranteed loans held for investment, at fair value 60,833 86,441 91,508 Loans held for investment, at amortized cost 1,005,726 956,004 824,218 Allowance for credit losses on loans (15,512) (14,186) (13,497)Net Loans held for investment, at amortized cost 990,214 941,818 810,721 Accrued interest receivable 9,155 8,537 7,130 Premises and equipment, net 33,249 38,736 38,874 Loan servicing rights 16,534 15,966 14,959 Right-of-use operating lease assets 15,814 2,018 2,416 Bank owned life insurance 26,513 26,330 25,800 Other real estate owned 132 — — Other assets 12,490 12,543 16,150 Assets from discontinued operations — — 348 Total assets$1,288,297 $1,245,099 $1,117,766 Liabilities: Noninterest-bearing deposits$101,743 $95,995 $93,708 Interest-bearing transaction accounts 256,793 247,923 259,422 Savings and money market deposits 474,425 455,297 373,000 Time deposits 310,268 312,981 259,008 Total deposits 1,143,229 1,112,196 985,138 FHLB borrowings — 10,000 10,000 Subordinated debentures 5,956 5,954 5,949 Notes payable 1,934 2,048 2,389 Accrued interest payable 1,036 1,114 882 Operating lease liabilities 14,510 2,271 2,619 Deferred income tax liabilities 301 1,488 482 Accrued expenses and other liabilities 10,411 7,735 8,980 Liabilities from discontinued operations — — 620 Total liabilities 1,177,377 1,142,806 1,017,059 Shareholders’ equity:(Unaudited)(Unaudited) Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at December 31, 2024, September 30, 2024, and December 31, 2023; aggregate liquidation preference of $6,395 each period 6,161 6,161 6,161 Preferred stock, Series B; no par value, 20,000 shares authorized, 3,210 shares issued and outstanding at December 31, 2024, September 30, 2024, and December 31, 2023; aggregate liquidation preference of $3,210 each period 3,123 3,123 3,123 Preferred stock, Series C; no par value, 10,000 shares authorized, 6,446 shares issued and outstanding at December 31, 2024, September 30, 2024, and December 31, 2023; aggregate liquidation preference of $6,446 at December 31, 2024, September 30, 2024, and December 31, 2023 6,446 6,446 6,446 Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,132,986, 4,134,059, and 4,110,470 shares issued and outstanding at December 31, 2024, September 30, 2024, and December 31, 2023, respectively 54,764 54,780 54,521 Accumulated other comprehensive loss, net (2,956) (2,312) (2,981)Unearned compensation (752) (978) (958)Retained earnings 44,134 35,073 34,395 Total shareholders’ equity 110,920 102,293 100,707 Total liabilities and shareholders’ equity$1,288,297 $1,245,099 $1,117,766 BAYFIRST FINANCIAL CORP.CONSOLIDATED STATEMENTS OF INCOME For the Quarter Ended Year-to-Date(Dollars in thousands, except per share data)12/31/2024 9/30/2024 12/31/2023 12/31/2024 12/31/2023Interest income:(Unaudited) (Unaudited) (Unaudited) (Unaudited) Loans, including fees$20,747 $20,442 $17,714 $78,831 $63,189 Interest-bearing deposits in banks and other 1,007 1,000 1,140 3,979 5,328 Total interest income 21,754 21,442 18,854 82,810 68,517 Interest expense: Deposits 10,600 11,609 9,719 42,872 30,795 Other 501 384 258 1,912 1,291 Total interest expense 11,101 11,993 9,977 44,784 32,086 Net interest income 10,653 9,449 8,877 38,026 36,431 Provision for credit losses 4,546 3,122 2,737 14,726 10,445 Net interest income after provision for credit losses 6,107 6,327 6,140 23,300 25,986 Noninterest income: Loan servicing income, net 582 918 677 3,100 2,826 Gain on sale of government guaranteed loans, net 8,425 6,143 6,977 28,252 24,553 Service charges and fees 451 447 555 1,794 1,721 Government guaranteed loans fair value gain, net (80) 3,416 4,697 9,843 15,718 Government guaranteed loan packaging fees 773 903 1,588 4,105 3,664 Gain on sale of premises and equipment 11,649 — — 11,649 — Other noninterest income 476 445 197 1,726 1,273 Total noninterest income 22,276 12,272 14,691 60,469 49,755 Noninterest Expense: Salaries and benefits 7,351 7,878 7,446 31,063 30,973 Bonus, commissions, and incentives 1,074 1,141 2,211 4,445 5,726 Occupancy and equipment 1,217 1,248 1,150 4,848 4,758 Data processing 1,749 1,789 1,422 6,745 5,611 Marketing and business development 390 532 640 2,050 3,336 Professional services 803 853 1,070 3,882 3,657 Loan origination and collection 758 1,956 2,728 6,391 7,425 Employee recruiting and development 445 595 510 2,186 2,177 Regulatory assessments 379 309 266 1,249 881 Other noninterest expense 1,169 763 1,023 3,923 3,163 Total noninterest expense 15,335 17,064 18,466 66,782 67,707 Income before taxes from continuing operations 13,048 1,535 2,365 16,987 8,034 Income tax expense from continuing operations 3,272 398 704 4,315 2,119 Net income from continuing operations 9,776 1,137 1,661 12,672 5,915 Loss from discontinued operations before income taxes — — (8) (92) (283)Income tax benefit from discontinued operations — — (2) (23) (70)Net loss from discontinued operations — — (6) (69) (213) Net income 9,776 1,137 1,655 12,603 5,702 Preferred dividends 385 385 341 1,541 965 Net income available to common shareholders$9,391 $752 $1,314 $11,062 $4,737 Basic earnings (loss) per common share:(Unaudited) (Unaudited) (Unaudited) (Unaudited) Continuing operations$2.27 $0.18 $0.32 $2.69 $1.21 Discontinued operations — — — (0.01) (0.05)Basic earnings per common share$2.27 $0.18 $0.32 $2.68 $1.16 Diluted earnings (loss) per common share: Continuing operations$2.11 $0.18 $0.32 $2.64 $1.17 Discontinued operations — — — (0.02) (0.05)Diluted earnings per common share$2.11 $0.18 $0.32 $2.62 $1.12 Loan Composition (Dollars in thousands)12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Real estate: Residential$330,870 $321,740 $304,234 $285,214 $264,126 Commercial 305,721 292,026 288,185 273,227 293,595 Construction and land 32,914 33,784 35,759 36,764 26,272 Commercial and industrial 226,522 200,212 192,140 182,264 177,566 Commercial and industrial - PPP 941 1,656 2,324 2,965 3,202 Consumer and other 93,826 92,546 85,789 63,854 47,287 Loans held for investment, at amortized cost, gross 990,794 941,964 908,431 844,288 812,048 Deferred loan costs, net 19,499 18,060 17,299 16,233 14,707 Discount on government guaranteed loans (8,306) (7,880) (7,731) (7,674) (7,040)Premium on loans purchased, net 3,739 3,860 4,173 4,252 4,503 Loans held for investment, at amortized cost, net 1,005,726 956,004 922,172 857,099 824,218 Government guaranteed loans held for investment, at fair value 60,833 86,441 86,142 77,769 91,508 Total loans held for investment, net$1,066,559 $1,042,445 $1,008,314 $934,868 $915,726 Nonperforming Assets (Unaudited) (Dollars in thousands)12/31/2024 9/30/2024 6/30/2024 3/31/2024 12/31/2023Nonperforming loans (government guaranteed balances), at amortized cost, gross$4,037 $4,497 $4,258 $2,309 $1,424 Nonperforming loans (unguaranteed balances), at amortized cost, gross 13,570 10,992 8,054 7,568 8,264 Total nonperforming loans, at amortized cost, gross 17,607 15,489 12,312 9,877 9,688 Nonperforming loans (government guaranteed balances), at fair value — 24 341 94 — Nonperforming loans (unguaranteed balances), at fair value 1,490 1,535 1,284 729 648 Total nonperforming loans, at fair value 1,490 1,559 1,625 823 648 OREO 132 — 1,633 404 — Repossessed assets 36 94 — — — Total nonperforming assets, gross$19,265 $17,142 $15,570 $11,104 $10,336 Nonperforming loans as a percentage of total loans held for investment(1) 1.75% 1.62% 1.34% 1.15% 1.18%Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1) 1.35% 1.15% 0.87% 0.88% 1.00%Nonperforming assets as a percentage of total assets 1.50% 1.38% 1.28% 0.97% 0.92%Nonperforming assets (excluding government guaranteed balances) to total assets 1.06% 0.88% 0.82% 0.70% 0.74%ACL to nonperforming loans(1) 88.10% 91.59% 112.44% 140.79% 139.32%ACL to nonperforming loans (excluding government guaranteed balances)(1) 114.31% 129.06% 171.88% 183.75% 163.32% (1) Excludes loans measured at fair value Note: Transmitted on Globe Newswire on January 30, 2025, at 4:00 p.m. ET.

BayFirst Financial Corp. Reports Fourth Quarter 2024 Results

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