Full text
Contacts:
Anthony N. Leo Jeffrey M. Hunt
Chief Executive Officer Chief Strategy Officer
727.399.5678 727.399.5687
BayFirst Financial Corp. Reports Earnings of $2.81 Million, or $0.61 Per Diluted Common Share, in
4Q21 and $24.62 Million, or $5.74 Per Diluted Common Share, for Year 2021;
Highlighted by Strong Loan Production and Tangible Book Value per Common Share Increasing 36%
Year over Year to $21.75
ST. PETERSBURG, FL. — January 26, 2022 — BayFirst Financial Corp. (f/k/a First Home Bancorp, Inc.) (NASDAQ:
BAFN) (“BayFirst” or the “Company”), parent company of First Home Bank (“First Home” or the “Bank”) reported
earnings for the fourth quarter of 2021 of $2.81 million, or $0.61 per diluted common share, driven by higher gain on
sale of SBA guaranteed loans, which were partially offset by a reduction in interest and origination fee income from the
SBA's Paycheck Protection Program ("PPP") and lower residential loan fee income, compared to the previous quarter.
In the third quarter of 2021, the Company reported net income of $1.28 million, or $0.26 per diluted common share, and
in the fourth quarter of 2020 the Company earned $5.61 million, or $1.35 per diluted common share. The variability in
financial metrics for the fourth quarter of 2021 compared to the year ago period is a direct reflection of the Bank’s
participation in PPP over the course of the last two years. Fourth quarter earnings increased tangible book value to
$21.75 per common share, a 35.80% increase from $16.02 a year ago. All per share data has been adjusted to reflect the
3-for-2 common stock split effective May 10, 2021.
Net income for the year 2021 increased 93.80% to a record $24.62 million, compared to $12.70 million in 2020.
Earnings per common share increased to $5.74 per diluted common share in 2021, compared to $3.01 per diluted
common share in 2020. Increases in PPP origination fees earned and lower provision for loan losses contributed to the
increase in net income during 2021 compared to 2020.
“We delivered strong earnings for the fourth quarter and record earnings for the full year in 2021, as we continue
pivoting away from extraordinary pandemic-related activities, and refocus our efforts towards our strategic growth
plan,” stated Anthony N. Leo, Chief Executive Officer. “As a rapidly growing financial institution, we are driven by our
commitment to increase strategic opportunities and establish our reputation as one of the preeminent community banks.
We are utilizing our significant capital base and taking advantage of the infrastructure we built throughout the nation, to
expand market share while managing risk. In November, BayFirst registered with the SEC and began trading on the
Nasdaq Capital Market, marking vital moments in our history. These milestones will aid greatly in our efforts to grow
our banking franchise, increase our visibility among investors, provide additional liquidity to shareholders, and
ultimately stake our claim as the bank of Tampa Bay.”
“We are proud to have been active participants in PPP, and our lending team clearly responded, with over $1.2 billion in
PPP loans originated over the course of the program,” continued Mr. Leo. “The Company’s SBA loan origination
platform, CreditBench, which spent much of 2020 and the first half of 2021 generating these PPP loans, shifted
resources back to traditional SBA lending over the last two quarters, reaching out to businesses in Tampa Bay and
across the nation to provide fresh growth capital. As a result, CreditBench had one of its strongest quarters on record,
bringing in over $60.77 million in new SBA loans during the fourth quarter of 2021. Additionally, we recently brought
on an experienced national SBA lending team as part of our strategic plan for migration to national lending. We are
leveraging our opportunities and see exceptional growth prospects with CreditBench in the year ahead.”
BayFirst Financial Corp. Reports Fourth Quarter 2021 Results
January 26, 2022
Page 2
“Due to the hard work and continued efforts of our lending team to bring new customers into the Bank, we had another
strong quarter with commercial, residential, consumer and SBA loan production. The success of our lending teams is
fueling profitability and providing new market opportunities. Our asset-sensitive balance sheet produced strong growth,
with total deposits increasing 29.15% in the past year, while total loans held for investment, ex. PPP, grew by 25.34% in
that period. Due to improvements in economic forecasts and continued solid performance of the loan portfolio during
the fourth quarter, we reduced the allowance for loan losses from the higher levels held during the early days of the
pandemic. We feel that we are well-positioned for future growth, having established loan loss reserves to total loans
(excluding PPP loans), of 2.67% at December 31, 2021,” said Mr. Leo.
Fourth Quarter 2021 Highlights:
• CreditBench, the Company’s SBA loan origination platform, originated $60.77 million in new SBA loans
during the fourth quarter of 2021, compared to $47.26 million in the third quarter of 2021, and $16.66 million
of loans produced during the fourth quarter of 2020.
• The Residential Mortgage Division originated $477.48 million in loans during the fourth quarter of 2021
compared to $506.67 million during the third quarter of 2021 and $641.08 million of loans produced during the
fourth quarter of 2020.
• Loans held for investment, excluding PPP loans, increased modestly by $3.88 million during the fourth quarter
of 2021 as production added during the quarter was partially offset by $44.85 million in sales of the guaranteed
balances of SBA loans, and increased by 25.34% or $102.01 million over the past year to $504.53 million due
to increases in both conventional community bank loans and SBA loans, partially offset by sales of the
guaranteed and unguaranteed portions of select SBA loans.
• During the fourth quarter, the Company sold $44.85 million in guaranteed SBA loans at a net 11.67% premium.
The Company expects to continue with SBA loan sales depending on market conditions and will continue
efforts to sell loans if the pricing for such loans remains favorable.
• Deposits increased by 6.91% or $46.65 million during the fourth quarter of 2021, and by 29.15% or $162.90
million during the past year, to $721.69 million at December 31, 2021, with the majority of the 12-month
increase coming from increases in transaction accounts and savings deposits, partially offset by declines in time
deposit balances.
• Tangible book value per common share increased to $21.75 at the end of the fourth quarter from $21.30 at the
end of the preceding quarter and $16.02 a year ago.
• The Company paid a quarterly cash dividend of seven cents per common share, on December 15, 2021, to
common shareholders of record as of November 15, 2021. The cash dividend marked the 22nd consecutive
quarter in which BayFirst paid a cash dividend.
Results of Operations
Net Income and Performance Ratios
Net income was $2.81 million for the fourth quarter of 2021 compared to $1.28 million in the third quarter of 2021, and
$5.61 million in the fourth quarter of 2020. The increase in net income for the fourth quarter of 2021 from the preceding
quarter was primarily due to higher noninterest income from the gain on sale of SBA loans. For the year ended 2021,
net income increased substantially to $24.62 million, from $12.70 million in 2020, reflecting higher PPP origination fee
income and the gain on sale of SBA loans sold in 2021 and lower provision for loan losses.
BayFirst’s return on average common equity and return on average assets returned to more realistic levels in the fourth
quarter as contributions from the PPP loan program tapered off. Return on average common equity was 12.54% for the
BayFirst Financial Corp. Reports Fourth Quarter 2021 Results
January 26, 2022
Page 3
fourth quarter of 2021, and return on average assets was 1.22%. For the year ended 2021, return on average common
equity was 32.37% and return on average assets was 1.90%.
Net Interest Income and Net Interest Margin
Net interest income was $6.69 million in the fourth quarter of 2021, a decrease of $1.32 million or 16.50% from $8.02
million in the third quarter of 2021, and a decrease of $4.88 million or 42.17% from the fourth quarter of 2020. The
decrease during the fourth quarter of 2021 as compared to the prior quarter and the year ago quarter was mainly due to
the decrease in net PPP origination fee income. For the year ended 2021, net interest income increased $6.79 million, or
20.30%, to $40.24 million, compared to $33.45 million in the same period a year ago.
Net interest margin was 3.07% for the fourth quarter of 2021 compared to 3.04% for the third quarter of 2021 and
3.13% for the fourth quarter of 2020. For the year ended 2021, net interest margin increased 35 basis points to 3.23%
from 2.88% for the year ended 2020.
Noninterest Income
Noninterest income was $24.21 million for the fourth quarter of 2021, an increase of $2.22 million or 10.10% from
$21.99 million in the third quarter of 2021, and a decrease of $7.16 million or 22.83% from $31.38 million in the fourth
quarter of 2020. The increase in the fourth quarter of 2021 as compared to the prior quarter was primarily the result of
the gain on sale of SBA loans partially offset by lower residential loan fee income. The decrease from a year ago quarter
was primarily the result of a decrease in residential loan fee income partially offset by the gain on sale of SBA loans.
For the year ended 2021, noninterest income increased $19.88 million, or 20.35%, to $117.58 million, compared to
$97.70 million for the year ended 2020. The increase over the prior year was primarily due to higher residential loan fee
income, and higher gain on sale of SBA loans during the current year.
Noninterest Expense
Noninterest expense was $30.22 million in the fourth quarter of 2021, which was a $1.01 million or 3.22% decrease
from $31.23 million in the third quarter of 2021 and a decrease of $251 thousand compared to the fourth quarter of
2020. Year-to-date, noninterest expense was $128.84 million, compared to $98.47 million in the prior year, with the
majority of the increase related to compensation and employee benefits expense.
Balance Sheet
Assets
Total assets decreased by $26.65 million or 2.82% during the fourth quarter of 2021 to $917.10 million, mainly due to
the SBA’s forgiveness of PPP loans, partially offset by higher residential loans held for sale and the purchase of
additional bank owned life insurance.
Loans
Loans held for investment, excluding PPP loans, increased by $3.88 million during the fourth quarter of 2021 and by
$102.01 million or 25.34% over the past year to $504.53 million due to increases in both community bank loans and
SBA loans partially offset by SBA loan sales. PPP loans, net of deferred origination fees, decreased by $76.22 million
or 48.97% in the third quarter of 2021 to $79.42 million due to PPP forgiveness payments. Deferred PPP origination
fees, net, which will be recognized over the remaining average life of the PPP loans totaled $722 thousand as of
December 31, 2021.
Deposits
Deposits increased by $46.65 million or 6.91% during the fourth quarter of 2021 and $162.90 million or 29.15% during
the past year, ending the year at $721.69 million, with the majority of the quarterly and 12-month increase coming from
savings and money market accounts and transaction accounts, partially offset by declines in time deposit balances.
Asset Quality
Asset quality improved throughout 2021, reflecting improving economic and business conditions in the markets we
serve. We recognized significant provision expense in each quarter of 2020. As the financial impact of the COVID-19
BayFirst Financial Corp. Reports Fourth Quarter 2021 Results
January 26, 2022
Page 4
pandemic becomes more predictable we continue to adjust our allowance for loan losses which resulted in a negative
provision for the fourth quarter 2021 of $2.50 million and a negative provision of $3.50 million for the full year 2021.
The ratio of the allowance for loan losses to total loans, excluding government guaranteed loans, residential loans held
for sale, and loans carried at fair value, was 4.16% at December 31, 2021, 5.42% as of September 30, 2021, and 7.48%
as of December 31, 2020.
Over the past five years, the Company’s loan losses have been incurred primarily in its SBA unguaranteed loan
portfolio, particularly loans originated under the SBA 7(a) Small Loan Program. The Small Loan Program represents
loans of $350,000 or less and carry an SBA guaranty of 75% to 85% of the loan, depending on the original principal
balance. The default rate on loans originated in the SBA 7(a) Small Loan Program has been higher than the Bank’s other
loans.
Net charge-offs for the fourth quarter of 2021 were $664 thousand, a $517 thousand decrease from $1.18 million for the
third quarter of 2021 and a $2.09 million decrease compared to $2.75 million in the fourth quarter of 2020. Annualized
net charge-offs as a percentage of average loans, excluding PPP loans, were 0.51% for the fourth quarter of 2021, down
from 1.01% in the third quarter of 2021 and 2.76% in the fourth quarter of 2020. Nonperforming assets, excluding
government guaranteed loans, to total assets was 0.43% as of December 31, 2021, compared to 0.40% as of
September 30, 2021, and 0.22% as of December 31, 2020.
The ratio of the allowance for loan losses to total loans, excluding government guaranteed loans, residential loans held
for sale, and loans carried at fair value, was 4.16% at December 31, 2021, 5.42% as of September 30, 2021, and 7.48%
as of December 31, 2020.
In addition to the above metrics, past due PPP loans increased during the third and fourth quarters of 2021 as certain
PPP loan customers did not apply for forgiveness nor make required payments. As such, as of December 31, 2021, the
Company reported $11.09 million of PPP loans past due greater than 30 days past due and accruing, representing
approximately 0.92% of PPP loans originated. Although customers may default on their PPP loans, PPP loans are 100%
guaranteed by the SBA and the Company expects to receive all principal and accrued interest related to these loans upon
repurchase of the loan by the SBA. Under SBA program rules, the Company is required to wait until a PPP loan is 60
days past due before submitting the loan to the SBA for purposes of honoring the SBA guarantee. Based on the timing
of the PPP loan program and the requirements of the SBA liquidation process, the Company expects past due PPP loans
to skew past due ratios over at least the next two quarters.
Capital
The Bank’s Tier 1 leverage ratio was 12.22% as of December 31, 2021, a decrease from 12.64% as of September 30,
2021, and an increase from 11.75% at December 31, 2020. The CET 1 and Tier 1 capital ratio to risk-weighted assets
were 19.88% as of December 31, 2021 a decrease from 21.21% as of September 30, 2021, and a substantial increase
from 15.72% as of December 31, 2020. The total capital to risk-weighted assets ratio was 21.15% as of December 31,
2021, a slight decrease from 22.50% as of September 30, 2021, and a substantial increase from 17.02% as of December
31, 2020.
During the fourth quarter of 2021, no shares of Series B Preferred Stock were issued, 1,100 shares of Series B Preferred
Stock were converted to common shares, and $250 thousand of common stock was issued under private placement and
employee stock programs.
Recent Events
Application to Convert to a National Bank: On January 3, 2022, BayFirst Financial Corp.’s operating subsidiary,
First Home Bank submitted an application to the Office of the Comptroller of the Currency to convert to a national
banking association under the name BayFirst National Bank.
Approved for Listing on Nasdaq Capital Market Under Ticker Symbol “BAFN”: On November 30, 2021,
BayFirst Financial Corp. began trading on the Nasdaq Capital Market under the symbol “BAFN,” becoming the only
Nasdaq-listed bank holding company headquartered on the west coast of Florida and one of only eight in the state.
BayFirst Financial Corp. Reports Fourth Quarter 2021 Results
January 26, 2022
Page 5
Securities Act Registration Statement Declared Effective by SEC: On November 15, 2021, BayFirst announced that
the SEC declared the Company’s Securities Act registration statement effective, and that the Company is now subject to
Exchange Act reporting requirements. These rules require the Company to file annual reports on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K with the SEC on an ongoing basis. The Company chose not to
issue new securities under the registration statement.
Branch Expansion: In November 2021, the Company celebrated the ongoing expansion of its banking centers with the
opening of a seventh location in Belleair Bluffs, Florida and the groundbreaking of an eighth location in Sarasota,
Florida, slated to open in late 2022.
About BayFirst Financial Corp.
BayFirst Financial Corp. (f/k/a First Home Bancorp, Inc.) is a registered bank holding company which commenced
operations on September 1, 2000. Its primary source of income is from its wholly owned subsidiary, First Home Bank,
which commenced business operations on February 12, 1999. First Home Bank is a Federal Reserve member and a
state-chartered banking institution. The Bank operates seven full-service office locations, 23 mortgage loan production
offices, and is in the top 15 by dollar volume and by number of units originated nationwide through the first quarter of
SBA's 2022 fiscal year ended December 31, 2021.
BayFirst Financial Corp., through the Bank, offers a broad range of commercial and consumer banking services
including various types of deposit accounts and loans for businesses and individuals. As of December 31, 2021,
BayFirst Financial Corp. had $917.10 million in total assets.
Forward Looking Statements
This press release may contain forward-looking statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Words such as “may,” “could,” “should,” “would,” “believe,” “anticipate,” “estimate,” “expect,”
“intend,” “plan,” “project,” “is confident that” and similar expressions are intended to identify these forward-looking
statements. These forward-looking statements involve risk and uncertainty and a variety of factors could cause our
actual results and experience to differ materially from the anticipated results or other expectations expressed in these
forward-looking statements. BayFirst Financial Corp. does not have a policy of updating or revising forward-looking
statements except as otherwise required by law, and silence by management over time should not be construed to mean
that actual events are occurring as estimated in such forward-looking statements.
BayFirst Financial Corp. Reports Fourth Quarter 2021 Results
January 26, 2022
Page 6
BayFirst Financial Corp.
Selected Financial Data (Unaudited)
Dollars in Thousands, Except for Share Data
At or for the three months ended
12/31/2021 9/30/2021 6/30/2021 3/31/2021 12/31/2020
Balance sheet data:
Average loans held for investment, excluding PPP loans $ 518,697 $ 467,283 $ 481,424 $ 422,130 $ 399,098
Average total assets 923,485 1,086,377 1,541,287 1,636,171 1,513,403
Average common shareholders’ equity 83,056 81,989 68,525 57,944 53,035
Total loans held for investment 583,948 656,294 895,194 1,388,533 1,228,322
Total loans held for investment, excluding PPP loans 504,525 500,647 465,470 421,258 402,520
Total loans held for investment, excl gov’t gtd loan balances 323,363 306,723 304,364 288,889 283,060
Allowance for loan losses 13,452 16,616 20,797 22,017 21,162
Total assets 917,095 943,743 1,198,229 1,716,831 1,544,691
Common shareholders’ equity 86,685 83,593 81,838 66,046 55,914
Share data: (1)
Basic earnings per common share $ 0.66 $ 0.27 $ 3.34 $ 2.05 $ 1.53
Diluted earnings per common share 0.61 0.26 2.98 1.85 1.35
Dividends per common share 0.070 0.070 0.070 0.067 0.067
Book value per common share 21.77 21.32 21.16 17.95 16.04
Tangible book value per common share (2) 21.75 21.30 21.14 17.93 16.02
Performance and capital ratios:
Return on average assets 1.22 % 0.47 % 3.38 % 1.84 % 1.48 %
Return on average common equity 12.54 % 5.12 % 74.61 % 49.56 % 39.97 %
Net interest margin 3.07 % 3.04 % 3.46 % 3.21 % 3.13 %
Dividend payout ratio 10.65 % 26.09 % 2.10 % 3.27 % 4.38 %
Asset quality ratios:
Net charge-offs $ 664 $ 1,181 $ 1,221 $ 1,145 $ 2,751
Net charge-offs/avg loans held for investment excl PPP 0.51 % 1.01 % 1.01 % 1.09 % 2.76 %
Nonperforming loans $ 11,909 $ 10,495 $ 9,885 $ 9,741 $ 9,586
Nonperforming loans (excluding gov't gtd balance) $ 3,967 $ 3,756 $ 3,577 $ 3,242 $ 3,327
Nonperforming loans/total loans held for investment 2.04 % 1.60 % 1.10 % 0.70 % 0.78 %
Nonperforming loans (excl gov’t gtd balance)/total loans held for
investment 0.68 % 0.57 % 0.40 % 0.23 % 0.27 %
ALLL/Total loans held for investment 2.30 % 2.53 % 2.32 % 1.59 % 1.72 %
ALLL/Total loans held for investment, excl PPP loans 2.67 % 3.32 % 4.47 % 5.23 % 5.26 %
Other Data:
Full-time equivalent employees 637 651 671 649 529
Banking center offices 7 6 6 6 6
Loan production offices 23 22 26 22 29
(1)
Adjusted for the three-for-two stock split, effective May 10, 2021.
(2)
Non-GAAP financial measure calculated as total shareholders’ equity minus preferred stock liquidation preference minus goodwill, divided by
common shares outstanding.
BayFirst Financial Corp. Reports Fourth Quarter 2021 Results
January 26, 2022
Page 7
BayFirst Financial Corp.
CONSOLIDATED BALANCE SHEETS (Unaudited)
Dollars in Thousands
Assets 12/31/2021 9/30/2021 12/31/2020
Cash and due from banks $ 2,869 $ 2,715 $ 2,790
Interest-bearing deposits in banks 106,858 104,382 52,589
Cash and cash equivalents 109,727 107,097 55,379
Time deposits in banks 2,381 2,381 2,381
Investment securities available for sale 30,893 32,535 —
Investment securities held to maturity 2 3 41
Restricted equity securities, at cost 2,827 2,827 2,362
Residential loans held for sale 114,131 91,243 208,704
SBA loans held for sale 1,460 — —
SBA loans held for investment, at fair value 9,614 9,805 9,264
Loans held for investment, at amortized cost net of allowance for loan losses of
$13,452, $16,616, and $21,162 560,882 629,873 1,197,896
Accrued interest receivable 3,564 4,292 7,300
Premises and equipment, net 29,671 24,622 18,115
Loan servicing rights 6,619 6,155 8,160
Deferred income taxes 454 1,263 3,808
Right-of-use operating lease assets 4,543 4,345 3,737
Bank owned life insurance 24,547 12,434 12,183
Other assets 15,780 14,868 15,361
Total assets $ 917,095 $ 943,743 $ 1,544,691
Liabilities:
Noninterest-bearing deposits $ 83,638 $ 87,625 $ 62,650
Interest-bearing transaction accounts 163,495 157,304 140,265
Savings and money market deposits 423,864 377,452 286,744
Time deposits 50,688 52,653 69,125
Total deposits 721,685 675,034 558,784
Subordinated debentures 5,985 5,983 5,948
Notes payable 3,299 3,413 3,754
PPP Liquidity Facility 69,654 144,601 881,262
Accrued interest payable 326 562 1,999
Operating lease liabilities 4,747 4,545 3,925
Accrued expenses and other liabilities 15,109 15,307 17,950
Total liabilities 820,805 849,445 1,473,622
Shareholders’ equity:
Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued
and outstanding at December 31, 2021, September 30, 2021, and December 31,
2020; aggregate liquidation preference of $6,395 6,161 6,161 6,161
Preferred stock, Series B; no par value, 20,000 shares authorized, 3,210, 4,310, and
8,760 shares issued and outstanding at December 31, 2021, September 30, 2021,
and December 31, 2020; aggregate liquidation preference of $3,210, $4,310, and
$8,760, respectively 3,123 4,193 8,516
Common stock and additional paid-in capital; no par value, 15,000,000 shares
authorized, 3,981,117, 3,919,977, and 3,867,414 shares issued and outstanding at
December 31, 2021, September 30, 2021, and December 31, 2020, respectively 51,496 50,546 43,043
Accumulated other comprehensive income (loss), net (420) (201) —
Unearned compensation (17) (23) (41)
Retained earnings 35,947 33,622 13,390
Total shareholders’ equity 96,290 94,298 71,069
Total liabilities and shareholders’ equity $ 917,095 $ 943,743 $ 1,544,691
BayFirst Financial Corp. Reports Fourth Quarter 2021 Results
January 26, 2022
Page 8
BayFirst Financial Corp.
Consolidated Statements of Income (Unaudited)
Dollars in Thousands
For the Quarter Ended Year-to-Date
12/31/2021 9/30/2021 12/31/2020 12/31/2021 12/31/2020
Interest income:
Loans, other than PPP $ 7,320 $ 7,009 $ 6,355 $ 27,681 $ 23,986
PPP loan interest income 258 692 2,244 5,009 5,685
PPP origination fee income 381 1,656 5,244 14,283 13,419
Interest-bearing deposits in banks and other 150 188 70 570 641
Total interest income 8,109 9,545 13,913 47,543 43,731
Interest expense:
Deposits 1,219 1,152 1,379 4,885 7,490
PPPLF borrowings 381 278 783 1,791 1,968
Other (184) 99 178 624 820
Total interest expense 1,416 1,529 2,340 7,300 10,278
Net interest income 6,693 8,016 11,573 40,243 33,453
Provision for loan losses (2,500) (3,000) 5,000 (3,500) 16,900
Net interest income after provision for loan losses 9,193 11,016 6,573 43,743 16,553
Noninterest income:
Residential loan fee income 18,601 21,323 30,790 95,305 92,678
Loan servicing income, net 429 417 271 1,875 2,024
Gain (loss) on sale of SBA loans, net 4,564 (338) (80) 18,024 1,652
Service charges and fees 298 261 269 1,028 933
SBA loan fair value gain 33 72 (48) 184 1
Other noninterest income 289 257 175 1,161 407
Total noninterest income 24,214 21,992 31,377 117,577 97,695
Noninterest Expense:
Salaries and benefits 12,603 12,851 11,906 51,569 36,403
Bonus, commissions, and incentives 8,319 8,536 10,185 37,946 34,072
Mortgage banking 1,024 1,440 1,647 5,731 5,292
Occupancy and equipment 1,329 1,278 1,139 5,236 4,453
Data processing 1,323 1,347 1,332 6,532 4,418
Marketing and business development 2,176 1,924 1,303 7,620 3,553
Professional services 1,493 1,428 1,190 4,688 3,533
Loan origination and collection 168 683 269 2,452 2,040
Employee recruiting and development 914 809 634 3,345 1,769
Regulatory assessments 102 138 26 442 444
Other noninterest expense 773 795 844 3,281 2,493
Total noninterest expense 30,224 31,229 30,475 128,842 98,470
Income before taxes 3,183 1,779 7,475 32,478 15,778
Income tax expense 372 499 1,869 7,860 3,075
Net income 2,811 1,280 5,606 24,618 12,703
Preferred dividends 208 230 306 1,005 863
Net income available to common shareholders $ 2,603 $ 1,050 $ 5,300 $ 23,613 $ 11,840
Basic earnings per common share $ 0.66 $ 0.27 $ 1.53 $ 6.21 $ 3.45
Diluted earnings per common share $ 0.61 $ 0.26 $ 1.35 $ 5.74 $ 3.01
BayFirst Financial Corp. Reports Fourth Quarter 2021 Results
January 26, 2022
Page 9
Loan Composition
December 31, September 30, June 30, March 31, December 31,
2021 2021 2021 2021 2020
Real estate:
Residential $ 87,235 $ 79,889 $ 75,618 $ 70,059 $ 64,724
Commercial 163,477 151,122 143,388 123,374 114,884
Construction and land 18,632 17,848 14,293 12,685 15,113
Commercial and industrial 217,155 232,416 215,359 198,876 193,927
Commercial and industrial - PPP 80,158 156,783 432,469 987,185 838,847
Consumer and other 3,581 4,910 3,489 3,624 2,896
Loans held for investment, at amortized cost, gross 570,238 642,968 884,616 1,395,803 1,230,391
Deferred loan costs (fees), net 7,975 7,298 4,968 (12,702) (5,819)
Discount on SBA 7(a) loans sold (3,866) (3,753) (4,420) (4,961) (5,417)
Discount on PPP loans purchased (13) (24) (40) (82) (97)
Allowance for loan losses (13,452) (16,616) (20,797) (22,017) (21,162)
Loans held for investment, at amortized cost $ 560,882 $ 629,873 $ 864,327 $ 1,356,041 $ 1,197,896
Nonperforming Assets
December 31, September 30, June 30, March 31, December 31,
2021 2021 2021 2021 2020
Nonperforming loans (government guaranteed
balances) $ 7,942 $ 6,739 $ 6.308 $ 6.499 $ 6,259
Nonperforming loans (unguaranteed balances) 3,967 3,756 3.577 3.242 3,327
Total nonperforming loans 11,909 10,495 9.885 9.741 9,586
OREO 3 3 — — —
Total nonperforming assets $ 11,912 $ 10,498 $ 9.885 $ 9.741 $ 9,586
Nonperforming loans as a percentage of total loans
held for investment 2.04 % 1.60 % 1.10 % 0.70 % 0.78 %
Nonperforming loans (excluding government
guaranteed balances) to total loans held for
investment 0.68 % 0.57 % 0.40 % 0.23 % 0.27 %
Nonperforming assets as a percentage of total assets 1.30 % 1.11 % 0.82 % 0.57 % 0.62 %
Nonperforming assets (excluding government
guaranteed balances) to total assets 0.43 % 0.40 % 0.30 % 0.19 % 0.22 %
ALLL to nonperforming loans 112.96 % 158.32 % 210.39 % 226.03 % 220.83 %
ALLL to nonperforming loans (excluding
government guaranteed balances) 339.10 % 442.39 % 581.39 % 679.13 % 636.28 %
Note: Transmitted on Globe Newswire on January 26, 2022, at 8:00 a.m. EDT.