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Here are 1-2 brief analogies for BayFirst Financial (BAFN):

• Live Oak Bank for a broader range of small business lending, complemented by a traditional regional bank presence.
• A regional bank like Truist, but with a strong national specialization in Small Business Administration (SBA) loans.

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• Deposit Accounts: Offers various accounts like checking, savings, money market, and certificates of deposit for individuals and businesses to manage their funds securely.
• SBA Loans: Specializes in U.S. Small Business Administration (SBA) guaranteed loans, providing capital solutions for small businesses to grow and operate.
• Commercial Real Estate Loans: Provides financing for the acquisition, refinancing, or development of commercial properties for businesses and investors.
• Residential Mortgages: Offers mortgage loans to individuals for purchasing, refinancing, or building homes.
• Consumer Loans: Provides a range of personal loans to individuals for various needs, such as auto financing or personal lines of credit.

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BayFirst Financial (NASDAQ: BAFN), as a diversified financial institution, primarily serves a broad base of customers rather than having a few "major customers" in the traditional sense of a supplier to a large corporation. Its revenue is derived from interest income and fees generated across a diverse portfolio of loans and deposit accounts. Therefore, it serves primarily categories of individuals and businesses.

The company serves the following categories of customers:

• Individuals and Families: This category includes consumers seeking a full range of personal banking services such as checking and savings accounts, certificates of deposit, residential mortgages, home equity loans, personal loans, and auto loans.
• Small to Medium-Sized Businesses (SMBs): BayFirst Financial provides various commercial banking services to SMBs, including business checking and savings accounts, commercial real estate loans, lines of credit, equipment financing, treasury management services, and merchant services. The company has a notable specialization in Small Business Administration (SBA) lending programs.
• Real Estate Investors and Developers: This segment includes clients engaged in real estate who require commercial real estate loans, construction loans, and other specialized financing solutions for investment properties and development projects.

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• Crowe LLP (private company)

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Thomas G. Zernick, Chief Executive Officer

Thomas G. Zernick was appointed Chief Executive Officer on January 1, 2024. Prior to this role, he served as President of BayFirst since February 2022, and before that, as President of its CreditBench Division, which specializes in government-guaranteed lending. Mr. Zernick joined BayFirst in 2016. His prior experience includes serving as Florida Market President for Stearns Bank, an SBA Product Manager for HomeBanc in Tampa, and a Community Bank President and SBA President for Republic Bank in Michigan.

Scott J. McKim, Executive Vice President, Chief Financial Officer

Scott J. McKim was appointed Executive Vice President and Chief Financial Officer in July 2023. He brings over 25 years of experience in the financial services industry. Before joining BayFirst, Mr. McKim was Chief Strategy Officer at 121 Financial Credit Union. His career also includes roles as CFO and Chief Lending Officer at Publix Employees Federal Credit Union, Chief Lending Officer for American Heritage Federal Credit Union, and Director of Corporate Finance and Divisional CFO for Huntington Bancshares.

Robin L. Oliver, President and Chief Operating Officer

Robin L. Oliver was appointed President and Chief Operating Officer, effective January 1, 2024. She joined BayFirst in 2018. Previously, Mrs. Oliver served as Controller for a financial institution in Kentucky. For the first 16 years of her career, she worked in public accounting as an auditor with Crowe LLP, serving various financial institution clients.

Brandi N. Jaber, Executive Vice President, Chief Administrative Officer

Brandi N. Jaber serves as the Executive Vice President, Chief Administrative Officer for BayFirst. She joined the bank in November 2017, and her experience includes over 17 years in various management roles within the residential mortgage industry.

Thomas G. Quale, Executive Vice President, Chief Lending Officer and Market President

Thomas G. Quale joined BayFirst National Bank in 2018. With a career spanning nearly 40 years, he began as a teller and has held various leadership positions at multiple financial institutions, including Centennial Bank, Seaside National Bank and Trust, and LandMark Bank of Florida.

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• Operational and Strategic Transition Risk: BayFirst Financial is undergoing a significant strategic pivot by exiting its Small Business Administration (SBA) 7(a) lending business. This decision, aimed at de-risking the balance sheet and focusing on community banking, has resulted in substantial one-time charges, including a $7.3 million restructuring charge, and contributed to a net loss of $18.9 million in the third quarter of 2025. The financial volatility associated with finalizing the sale of the remaining SBA portfolio is expected to continue. Successfully executing this new model, which involves refocusing on traditional community banking products, is crucial but also carries inherent risks related to implementation and market acceptance.
• Interest Rate Risk: As a financial institution, BayFirst Financial is exposed to significant interest rate risk. Fluctuations in interest rates can adversely impact the company's net interest income and capital. A sudden or substantial change in interest rates could affect earnings, as the interest rates on assets and liabilities may not adjust at the same pace or to the same extent.
• Credit Risk: The company faces credit risk inherent in its lending activities. While BayFirst has policies and procedures to evaluate its credit portfolio and identify potential problem loans, the adoption of the expected credit losses (CECL) methodology for the allowance for credit losses (ACL) may lead to higher provisions for credit losses.

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Increased competition from online lenders and financial technology (fintech) companies specializing in small business lending, including government-guaranteed loans like those offered by the Small Business Administration (SBA). These platforms leverage advanced technology for faster application processes, quicker approvals, and more streamlined customer experiences, potentially eroding BayFirst's market share and profitability in a key business segment.

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BayFirst Financial (BAFN) operates in several addressable markets within the United States.

Residential Mortgage Market

The U.S. home mortgage market was valued at approximately USD 180.91 billion in 2023 and is projected to grow to about USD 501.67 billion by 2032, with a compound annual growth rate (CAGR) of roughly 12.00% between 2024 and 2032. Another estimate places the U.S. home mortgage market at a valuation of USD 204.49 billion in 2024, anticipated to reach USD 571.64 billion by 2033. Residential mortgage debt in the U.S. totaled $11.92 trillion as of the fourth quarter of 2022. Mortgage originations in the United States increased to 512.15 billion USD in the third quarter of 2025.

Small Business Loan Market

The U.S. Small Business Loan Market was valued at USD 30.83 billion in 2023 and is projected to reach USD 56.14 billion by 2031, growing at a CAGR of 8.94% during the forecast period of 2024-2031. Another source indicates the U.S. small business loan market was valued at $245.39 billion in 2023 and is projected to reach $349.64 billion by 2033, growing at a CAGR of 3.4% from 2024 to 2033. BayFirst Financial has historically been a significant originator of Small Business Administration (SBA) 7(a) loans, though the company announced in October 2025 its exit from the SBA 7(a) lending business to focus on core community banking services. The SBA provided $37.8 billion in 7(a) and 504 funding in fiscal year 2024.

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Expected Drivers of Future Revenue Growth for BayFirst Financial (BAFN)

Over the next 2-3 years, BayFirst Financial (BAFN) is expected to drive revenue growth through a focused strategy emphasizing community banking and a more resilient balance sheet, following its exit from the SBA 7(a) lending business.

1. Enhanced Focus on Community Banking Operations: BayFirst Financial has undergone a significant strategic transformation, moving away from its SBA 7(a) lending business to concentrate on core community banking services. This strategic shift aims to derisk the balance sheet and position the company for long-term sustainable growth and enhanced shareholder value. Management anticipates a return to profitability in 2026 with a goal of positive return on assets of 40 to 70 basis points, with continued improvement in later years, driven by strengthening community banking operations.
2. Growth in Conventional Commercial and Consumer Loan Portfolios: The company's conventional commercial loan portfolio has demonstrated strong asset quality metrics and solid yields, with reported growth of 16% since June of the previous year as of Q2 2025. An increase in loans held for investment was noted in Q2 2025, driven by originations in both conventional community bank loans and government-guaranteed loans (prior to the full exit of SBA 7(a)). The continued expansion of these core lending activities will be a key revenue driver.
3. Expansion of Customer Base and Core Deposits: BayFirst Financial has seen an increase in total deposit balances. In Q3 2025, total deposit balances increased by $7.7 million or 0.7% during the quarter and by $59.3 million or 5.3% over the past year to $1.17 billion. In Q2 2025, deposits increased by $35.5 million or 3.1%, and by $121.4 million or 11.6% from Q2 2024, reaching $1.16 billion. Initiatives such as the '50 or Better Senior Club' and 'Cash Kids Club' have successfully contributed to expanding the customer base and growing core deposits. Deposit growth provides a stable and lower-cost funding source for lending activities, directly impacting net interest income.
4. Improvement in Net Interest Margin (NIM): Although the net interest margin has seen fluctuations, it increased by 29 basis points to 4.06% in the second quarter of 2025 compared to the first quarter of 2025. The increase in net interest income from continuing operations in Q2 2025 was mainly attributed to an increase in loan interest income, including fees. A sustained focus on managing interest-earning assets and interest-bearing liabilities within the community banking model is expected to contribute to NIM improvement and, consequently, net interest income growth.
5. Launch and Growth of New Financial Products and Services: In Q1 2025, BayFirst launched several new financial products and services. The successful introduction and growth of these new offerings within its community banking framework are expected to diversify revenue streams and attract new customers, contributing to overall revenue expansion over the next few years.

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Share Repurchases

• In November 2021, BayFirst Financial Corp. amended its stock repurchase program to allow for the repurchase of up to $450,000 of common stock per quarter, with an aggregate limit of $1,000,000 or until October 1, 2022.
• A new stock repurchase program was adopted in March 2023, authorizing the repurchase of up to $1 million of the company's outstanding shares from February 28, 2023, until December 31, 2023.
• On January 30, 2025, a share repurchase program was announced to acquire up to $2.0 million of outstanding shares by December 31, 2025, but this program was terminated on October 28, 2025, as part of a strategic shift to exit SBA lending.

Share Issuance

• BayFirst Financial reported $6.4 million in preferred shares as of June 2025.
• The number of common shares outstanding increased from 4,132,986 at December 31, 2024, to 4,147,334 as of March 14, 2025.

Outbound Investments

• In September 2025, BayFirst Financial announced its strategic exit from the SBA 7(a) lending business, entering a definitive agreement to sell $103 million of SBA 7(a) loan balances to Banesco USA at 97% of retained balances.