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UPDATE BayFirst Financial Corp. Reports Record Earnings of $ 13.02 Million , or $ 2.98 Per Diluted Share , in 2Q21 ; Results Highlighted by Strong Loan Growth July 26 , 2021 ST . PETERSBURG , Fla . , July 26 , 2021 ( GLOBE NEWSWIRE ) -- BayFirst Financial Corp. ( f / k / a First Home Bancorp , Inc. ) ( OTCQX : FHBI ) ( " BayFirst " or the " Company " ) , parent company of First Home Bank ( " First Home " or the " Bank " ) reported record earnings for the second quarter of 2021 , driven by higher net interest income from both the recognition of $ 14.73 million of Paycheck Protection Program ( " PPP " ) origination fees earned on PPP loans sold during the quarter , as well as higher interest income from non - PPP loans , and strong noninterest income led by residential loan fees . BayFirst reported net income for the second quarter of 2021 of $ 13.02 million , or $ 2.98 per diluted common share , compared to net income of $ 7.51 million , or $ 1.85 per diluted common share , in the first quarter of 2021 , and $ 2.35 million , or $ 0.63 per diluted common share , in the second quarter of 2020. The second quarter's earnings increased tangible book value to $ 21.14 per common share , from $ 13.19 in the second quarter a year ago . All per share data has been adjusted to reflect the 3 - for - 2 stock split effective May 10 , 2021 . Net income for the first six months of 2021 increased to $ 20.53 million , or $ 4.88 per diluted share , compared to $ 1.84 million , or $ 0.44 per diluted share , in the first six months of 2020. Increases in PPP origination fees earned also contributed to the increase in net income during the first half of 2021 compared to the same period in 2020 . " Our strategic focus on growing the organization and expanding market share while managing risk continues to yield extraordinary results , as demonstrated by our record second quarter earnings , " stated Anthony N. Leo , Chief Executive Officer . " Effectively managing each of these areas is key to helping our organization capitalize on the opportunities we see ahead . We had another great quarter with residential lending , due to the hard work and continued efforts of our lending team bringing new customers into the Bank . The success of our residential and SBA lending services is fueling profitability and providing new market opportunities . Consistent growth in our core business continues to improve ongoing sales effectiveness and expanded marketing efforts , with core deposits increasing nearly 38 % in the past year , while our conventional loan portfolio grew by 34 % in that period . " " Over the past 15 months we have been active participants in the SBA's PPP lending programs , helping our new and existing business customers sustain their business operations , with over $ 1.2 billion in PPP loans originated over the course of the program , " said Mr. Leo . " Our success with PPP lending is having an impact on new SBA opportunities . Now , our CreditBench Division is focused on reaching out to businesses in Tampa Bay and across the nation to provide fresh growth capital under the SBA recovery program , which carries a 90 % guarantee on SBA 7 ( a ) loans originated through September 30 , 2021 , or until appropriations are depleted . " Second Quarter 2021 Highlights : • BayFirst reported return on average common equity of 74.61 % for the second quarter 2021 , up from the prior quarter's return of 49.56 % and the year ago quarter's return of 20.33 % . Despite significant levels of PPP loans in the current year and throughout much of 2020 , which inflated average assets , return on average assets for the second quarter of 2021 equaled 3.38 % , increases of 154 basis points over the prior quarter's return of 1.84 % and 264 basis points over the second quarter 2020 return of 0.74 % . The Residential Mortgage Division originated fewer loans quarter over quarter , with production of $ 521.9 million during the second quarter of 2021 compared to the record setting production of $ 715.9 million during the first quarter of 2021 but represents an increase over the $ 407.7 million of loans produced during the second quarter of 2020 . • Gross loans , excluding loans held for sale and PPP loans , increased by $ 44.21 million or 10.50 % during the second quarter of 2021 and by $ 108.35 million or 30.34 % over the past year to $ 465.47 million , due to increases in both conventional community bank loans and SBA loans . • • During the second quarter of 2021 , BayFirst sold $ 326.3 million in PPP loans originated in 2021 to a third party . Deposits increased by $ 25.06 million or 4.13 % during the second quarter of 2021 , and by $ 56.08 million or 9.73 % during the past year , to $ 632.32 million at June 30 , 2021 , with the majority of the 12 - month increase coming from increases in money market accounts , interest bearing demand deposits , and noninterest - bearing demand deposits , partially offset by declines in time deposit balances . Tangible book value per common share increased to $ 21.14 at the end of the second quarter from $ 17.93 ( adjusted for the 3 - for - 2 stock split effective May 10 , 2021 ) at the end of the preceding quarter . • The Company paid a quarterly cash dividend of 7 cents per common share , on June 15 , 2021 to shareholders of record as of May 15 , 2021. The cash dividend represented a 5 % increase in the cash dividend paid to common shareholders over the previous quarter and marked the 20th consecutive quarter in which BayFirst paid a cash dividend . Results of Operations Net Income Net income increased to $ 13.02 million for the second quarter of 2021 compared to $ 7.51 million in the first quarter of 2021 , and $ 2.35 million in the second quarter of 2020. The increase in net income for the second quarter of 2021 over the preceding quarter was primarily due to the recognition of $ 14.73 million of