BayFirst Financial Corp. Revises Its Second Quarter 2022 Results; Highlighted by Strong SBA 7(a) and Conventional Loan Production, Improved Operating Efficiencies, and Net Interest Margin Expansion

ST. PETERSBURG, Fla., Aug. 03, 2022 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (NASDAQ:BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (f/k/a First Home Bank) (the “Bank”) revised its second quarter earnings report to correct the accounting treatment of deferred loan costs on loans on which the Company elected the fair value option. The timing of recognition of fees and costs on such financial instruments differs for loans carried at amortized cost, with costs and fees recognized when incurred, rather than deferred and recognized over the life of the loan. Much of these costs would have been recognized in the third quarter of 2022 assuming the guaranteed and a portion of the unguaranteed components of these loans would be sold at that time. As of June 30, 2022, $806 thousand of costs related to the loans were charged to expense. A significant portion of these costs was previously included in loans held for investment at amortized cost. Due to this adjustment, the Company incurred a $282 thousand loss, or $(0.12) per diluted common share for the second quarter of 2022, instead of net income of $328 thousand, or $0.03 per diluted common share previously reported. This compares to net income of $13 thousand, or $(0.05) per diluted common share in the first quarter of 2022, and $13.0 million, or $2.98 per diluted common share, in the second quarter of 2021. Financial results for the second quarter of 2022 were highlighted by robust loan production in community banking, up more than 200% year to date over last year, as well as one of the best quarters of SBA 7(a) loan production in the Company’s history.