• A community bank in Florida, like a local version of a regional bank such as Truist.
• Imagine a much smaller, community-focused Bank of America for the Tampa Bay area.

• Commercial Loans: Provides financing solutions for businesses, including commercial real estate, construction, and government-guaranteed Small Business Administration (SBA) loans.
• Retail Banking Services: Offers a range of personal banking products such as checking, savings, money market accounts, certificates of deposit, and consumer loans including residential mortgages.
• Mortgage Banking: Originates and processes residential mortgage loans for individual customers and through strategic partnerships with other financial institutions.

• Individuals (Retail Customers): This segment includes consumers seeking personal banking products such as checking and savings accounts, certificates of deposit, residential mortgages, home equity loans, and various consumer loans.
• Small and Medium-sized Businesses: This category encompasses local and regional businesses utilizing commercial checking and savings accounts, treasury management services, commercial real estate loans, equipment financing, and lines of credit.
• Borrowers of Government-Guaranteed Loans: BayFirst Financial is particularly active in Small Business Administration (SBA) lending, serving small businesses that seek government-backed loans for purposes such as business acquisition, expansion, real estate, and working capital.

Thomas G. Zernick, Chief Executive Officer

• Mr. Zernick was appointed Chief Executive Officer of BayFirst Financial Corp. and BayFirst National Bank effective January 1, 2024.
• He joined BayFirst in 2016.
• Prior to his CEO appointment, he served as President of the company since February 2022 and previously as President of its CreditBench Division.
• Before joining BayFirst, he served as Florida Market President for Stearns Bank and as an SBA Product Manager for HomeBanc in Tampa.
• He also served as a Community Bank President and SBA President for Republic Bank in Michigan.
• Mr. Zernick received his BBA from the University of Notre Dame.

Scott J. McKim, EVP, Chief Financial Officer

• Mr. McKim serves as Chief Financial Officer for BayFirst Financial Corp. and BayFirst National Bank, having joined BayFirst in 2023.
• He is a financial services veteran with over 25 years of experience.
• Prior to BayFirst, he served as Chief Strategy Officer at 121 Financial Credit Union since June 2022.
• His previous roles include CFO and Chief Lending Officer of Publix Employees Federal Credit Union, Chief Lending Officer for American Heritage Federal Credit Union, and leadership roles at multiple financial institutions, including Director of Corporate Finance and a Divisional CFO for Huntington Bancshares.
• Mr. McKim holds an MBA from The Ohio State University and a Bachelor's Degree in Accounting from Bowling Green University.

Robin L. Oliver, President and Chief Operating Officer

• Mrs. Oliver serves as President and Chief Operating Officer for BayFirst Financial Corp. and BayFirst National Bank, effective January 1, 2024.
• She joined BayFirst in 2018 and held the role of Chief Operating Officer since 2022.
• Before BayFirst, Mrs. Oliver served as Controller for a financial institution in Kentucky.
• She spent the first 16 years of her career in public accounting as an auditor with Crowe LLP, serving multiple financial institution clients.
• Mrs. Oliver is a Certified Public Accountant and received her BA in Accounting from the University of Kentucky.

Brandi N. Jaber, EVP, Chief Administrative Officer

• Ms. Jaber serves as the Executive Vice President and Chief Administrative Officer for BayFirst.
• She joined the Bank in November 2017 and previously served as the Chief Production Officer.
• Prior to BayFirst, Ms. Jaber accumulated over 17 years of experience in various management roles within the residential mortgage industry.
• She holds a BS in Finance from the University of Florida and an MBA from the University of Tampa.

Adam M. Curtis, EVP, Chief Lending Officer and Market Executive

• Mr. Curtis serves as Executive Vice President and Chief Lending Officer at BayFirst National Bank.
• He joined BayFirst in 2022 as Senior Vice President and Market Executive.
• Before BayFirst, Mr. Curtis was Executive Vice President and Chief Lending Officer at Freedom Bank.
• He brings over 25 years of experience in commercial and retail banking and has held senior leadership positions with Seacoast Bank.
• Mr. Curtis earned his undergraduate degree from Florida State University and completed executive banking programs at the LSU Graduate School of Banking and the University of Florida's Florida School of Banking.

Key Risks to BayFirst Financial (BAFN)

1. Challenges in Strategic Transformation and Return to Profitability: BayFirst Financial is undergoing a substantial strategic pivot, exiting its national SBA 7(a) lending business to concentrate on a traditional community banking model in the Tampa Bay-Sarasota region. This strategic shift involved the sale of SBA loans and resulted in significant net losses in the third and fourth quarters of 2025, and for the first nine months of that year, marking a sharp reversal from previous net income. These losses were driven by one-time charges related to the SBA exit and increased credit provisions. The successful execution of this restructuring and a return to sustained profitability within its refocused community banking operations are critical for the company's future.
2. Deterioration of Asset Quality and Elevated Credit Risk: The company has experienced an increase in nonperforming loans, particularly those not backed by government guarantees. Credit loss provisions surged in 2025, indicating rising credit risk within its loan portfolio. This deterioration in asset quality is particularly concerning in a higher interest rate environment, which can put pressure on borrowers and potentially lead to further loan defaults.
3. Funding Cost and Liquidity Management: BayFirst Financial has shown an increased reliance on wholesale funding sources, such as advances from the Federal Home Loan Bank (FHLB), to support its liquidity and loan portfolio. Additionally, there has been an uptick in the use of brokered deposits, which are generally more expensive and sensitive to interest rate fluctuations. This increased dependence on these funding channels could lead to higher overall funding costs for the bank and expose it to greater interest rate sensitivity and liquidity risks in a competitive deposit market.

Residential Mortgage Loans

Small Business Loans (including Commercial & Industrial Loans and Construction Lending)

SBA Loans

Here are 3-5 expected drivers of future revenue growth for BayFirst Financial (BAFN) over the next 2-3 years:

1. Enhanced Focus on Community Banking within the Tampa Bay and Sarasota Markets: BayFirst Financial has explicitly stated its strategic shift to focus on being the "premier community bank in Tampa Bay." This involves delivering excellent service to customers across the Tampa Bay and Sarasota markets and growing traditional banking services. The bank aims for sustained organic deposit growth, which is identified as a key pillar of its community banking model.
2. Expansion of Conventional Commercial and Consumer Loan Portfolios: Following the exit from the SBA 7(a) lending business, BayFirst Financial is pivoting its loan origination strategy. Management highlighted a continued focus on expanding its conventional commercial and consumer loan portfolios, driven by consistent demand within the greater Tampa Bay region. This shift is expected to contribute to more stable and predictable revenue streams.
3. Growth in Treasury Management and Merchant Services Revenue: BayFirst Financial has identified treasury management and merchant services as a growing, recurring revenue stream. The bank saw a significant surge of 69% in revenue from these services compared to the previous year, indicating successful traction with business clients in its target markets. This area is crucial for replacing volatile income previously generated from SBA-related activities with more stable, relationship-driven fee income.
4. Stabilization and Improvement of Net Interest Margin (NIM): While BayFirst Financial's net interest margin has experienced fluctuations, management believes it has stabilized and anticipates continued efforts to manage it for minimal compression, even with potential future rate declines. Initiatives such as deposit repricing aimed at aligning funding costs with peer levels, along with ongoing deposit growth, are expected to bolster the net interest margin and enable more competitive loan pricing, thereby supporting net interest income growth.

Share Repurchases

• BayFirst Financial Corp. announced a share repurchase program on January 30, 2025, authorizing the repurchase of up to $2 million worth of its shares. This program is set to continue until December 31, 2025, or until its completion.
• On February 28, 2023, the company initiated a stock repurchase program allowing for the repurchase of up to $1.0 million of its outstanding shares. This program was effective until December 31, 2023.
• The Board of Directors authorized a share repurchase program on January 28, 2025, driven by the belief that the stock is an attractive investment and that repurchases build long-term shareholder value.

Share Issuance

• There is no readily available information detailing specific dollar amounts of share issuances by BayFirst Financial over the last 3-5 years. However, the number of outstanding shares was reported as 4,134,964 as of March 18, 2024, and 4,147,334 as of March 14, 2025, indicating some changes in share count.

Outbound Investments

• In September 2025, BayFirst Financial announced its strategic decision to exit the SBA 7(a) lending business. As part of this move, the company planned to sell $103 million of its SBA 7(a) loan balances to Banesco USA.
• By the fourth quarter of 2025, the company had completed the sale of $96.6 million in loans to Banesco USA, a significant step in its strategic plan to de-risk its loan portfolio.
• During the second quarter of 2022, BayFirst Financial restructured its Residential Mortgage Division, discontinuing its primary consumer direct residential mortgage business line. This decision was in response to reduced volume due to a lack of refinance demand.

Capital Expenditures

• BayFirst Financial reported capital expenditures of $3.21 million in 2024 and $0.60 million in 2023.