Core Viewpoint - BayFirst Financial Corp. has discontinued its Bolt loan program as part of a strategic review aimed at long-term growth and enhancing shareholder value [1][2] Group 1: Strategic Changes - The Bolt loan program, an SBA 7(a) loan product for small businesses, has been terminated to reduce risk associated with unguaranteed loans [2] - A reduction in force has been announced, affecting 51 positions, which represents 17% of the workforce, resulting in annual cost savings of $6 million [2] - The company plans to record restructuring charges in the third quarter related to the exit from the Bolt loan program and is seeking to sell the associated loan balances and origination platform [2] Group 2: Financial Position - As of June 30, 2025, BayFirst Financial Corp. reported total assets of $1.34 billion [4] - The company was the 8th largest SBA 7(a) lender by number of units originated and the 18th largest by dollar volume nationwide as of the same date [4] Group 3: Future Focus - The leadership team is committed to innovation and resilience, aiming to build a premier community banking franchise and capitalize on strengths in the Florida markets [3] - The company operates twelve banking centers in the Tampa Bay area, positioning itself to efficiently grow and gain market share [3]

Shares of BayFirst Financial Corp. (BAFN) have experienced a significant decline of 14.9% since the company reported its earnings for the quarter ended June 30, 2025. This performance starkly contrasts with the S&P 500 index, which saw a more modest decline of 2.4% over the same period. Over the past month, BAFN's stock has decreased by 10.5%, while the S&P 500 has increased by 0.4%. This disparity highlights the challenges faced by BayFirst Financial in the current market environment.In the second quarter ...

Financial Performance - The company reported a net loss of $1,200,000 in Q2 2025, driven by higher provision expenses and write-downs on loans measured at fair value, compared to a net loss of $335,000 in Q1 2025 [3][7] - Loans held for investment increased by $41,000,000 (3.8%) during Q2 2025, totaling $1,130,000,000, and increased by $117,500,000 (11.7%) year-over-year [7][8] - Deposits increased by $35,500,000 (3.1%) in Q2 2025, totaling $1,160,000,000, with a year-over-year increase of $121,400,000 (11.6%) [8] - Net interest income rose to $12,300,000 in Q2 2025, an increase of $1,300,000 from Q1 2025 and $3,200,000 from the same quarter last year [9] - The net interest margin improved by 29 basis points to 4.06% in Q2 2025 [4][9] Business Line Performance - The company originated $157,000,000 in loans during the quarter and sold $66,800,000 of government guaranteed loan balances [8][10] - The government guaranteed loan origination platform originated $106,400,000 in new loans, with $67,900,000 being BOLT loans, showing stability from the previous quarter [6] - The trendsetter deposit portfolio has over 2,100 accounts, representing more than $200,000,000 in balances, with a growth of 60 households year-to-date [5] Market Performance - Nonperforming assets were 1.79% of total assets as of June 30, 2025, down from 2.08% as of March 31, 2025 [14] - The ratio of allowance for credit losses to total loans held for investment was 1.65% as of June 30, 2025, slightly up from 1.61% in Q1 2025 [15] Company Strategy and Industry Competition - The company is undergoing a comprehensive strategic review aimed at derisking unguaranteed SBA seven balances and positioning for long-term growth [3] - Management has increased collections and portfolio management staff to proactively manage credit quality amid economic challenges [16] - The company is evaluating its small loan program and related underwriting processes, with further announcements expected [17] Management Commentary on Operating Environment and Future Outlook - Management noted that asset quality trends in the SBA seven small loan program continue to decline due to rising interest rates and inflation [16] - The company remains committed to building household relationships and enhancing its community banking presence in Tampa Bay and Sarasota [18] - Future growth is expected to be supported by a strong community bank model in a desirable market [18] Other Important Information - The board has suspended common and preferred stock dividend payments and board of director fees to offset the impact of charge-offs [4] - The company is well-capitalized but is exploring strategic alternatives to enhance shareholder value [28] Q&A Session Summary Question: How would a 25 basis point cut in Fed funds affect NIM? - Management indicated that the company is asset sensitive and expects a slight temporary compression in NIM, but stability should return by the end of the next quarter [26][27] Question: Is there a probability of raising additional capital? - Management stated that the bank is currently well-capitalized and exploring options, but no imminent actions have been decided [28][29] Question: Is the company still making small SBA loans? - Management confirmed that they are focusing on core loans and evaluating the credit losses and profitability of the small loan program [76] Question: What is the current status of the BOLT loans? - Management noted that BOLT loan volume has been steady, but additional credit underwriting has been instituted to manage risks [52] Question: Are there geographic concentrations in credit issues? - Management clarified that credit issues are broad and not concentrated in specific geographic areas, although certain NAICS codes have been identified as problematic [55]

Financial Performance - BayFirst's net interest income for the three months ended June 30, 2025, was $12348 thousand, compared to $9182 thousand for the same period in 2024[27] - The company reported a net loss of $1237 thousand for the three months ended June 30, 2025, compared to a net income of $866 thousand for the same period in 2024[27] - For the six months ended June 30, 2025, BayFirst's net interest income was $23347 thousand, compared to $17924 thousand for the same period in 2024[28] - The company experienced a net loss of $1572 thousand for the six months ended June 30, 2025, compared to a net income of $1690 thousand for the same period in 2024[28] Balance Sheet and Loan Portfolio - Total assets reached $134 billion as of June 30, 2025, representing a 47% growth since December 31, 2020[6] - Total loan production for the quarter was $157 million, with loans held for investment growing by $41 million during the quarter[18] - Total deposits increased by $36 million for the quarter and $121 million over the last twelve months[22] - The investment securities portfolio has minimal exposure to market value losses, representing 02% of total assets[25] Community Banking - Total deposits across 12 branches reached $1163796 thousand as of June 30, 2025, compared to $1042388 thousand on June 30, 2024[53] - Loan production in community banking for the quarter was $507 million[54] Government Guaranteed Banking - The company is ranked 8 nationally in total SBA units and 18 in dollars for the SBA's quarter ended June 30, 2025[67] - Since its launch in June 2022, the Bolt program has originated loans totaling $8699 million, including $679 million in Q2 2025[67]

Core Viewpoint - BayFirst Financial Corp. will report its second quarter results on July 29, 2025, with a conference call scheduled for July 30, 2025, to discuss the results [1][2]. Company Overview - BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida, operational since September 1, 2000 [3]. - The primary income source is its wholly owned subsidiary, BayFirst National Bank, which began operations on February 12, 1999 [3]. - The Bank operates twelve full-service banking offices in the Tampa Bay-Sarasota region, offering a wide range of commercial and consumer banking services [3]. - In 2024, BayFirst was named the best bank in Florida by Forbes [3]. - As of March 31, 2025, BayFirst Financial Corp. had total assets of $1.29 billion [3]. - The company ranked as the 10th largest SBA 7(a) lender by number of units originated and 19th largest by dollar volume nationwide as of March 31, 2025 [3].

Core Viewpoint - BayFirst Financial Corp. reported a net loss in Q1 2025, leading to a significant decline in its stock performance compared to the S&P 500 index, primarily due to asset quality deterioration and weaker financial results [1][2]. Financial Performance - The company incurred a net loss of $0.17 per share in Q1 2025, a reversal from a net income of $0.11 per share in Q1 2024, attributed to weaker noninterest income and elevated credit costs [2][3]. - Net interest income improved to $11 million, a 26.4% increase from $8.7 million a year earlier, while noninterest income fell by 38.5% year over year to $8.8 million [2]. - Overall deposits declined by 1.3% sequentially to $1.1 billion, despite a 1.7% increase in loans held for investment, reaching $1.1 billion, driven by commercial real estate and consumer loan origination [4]. Credit Quality Metrics - Net charge-offs decreased to $3.3 million from $3.7 million a year ago, but nonperforming assets rose to 2.08% of total assets, compared to 0.97% in the prior-year quarter [5]. - The provision for credit losses was $4.4 million, flat sequentially but slightly up from $4.1 million in Q1 2024 [5]. Management Insights - CEO Thomas G. Zernick highlighted economic challenges such as high interest rates and inflation affecting borrowers, leading to increased net charge-offs [6]. - The company is focusing on enhancing recurring revenues through core net interest income and reducing reliance on government-guaranteed loan sales [6][7]. Revenue Influences - The decline in earnings was significantly influenced by reduced revenues from government-guaranteed loans, with a $0.8 million drop in gains on sale and a $4.1 million decline in fair value gains [8]. - The absence of an $11.6 million one-time gain from a sale-leaseback transaction in the previous quarter also impacted noninterest income [8]. Expense Management - Noninterest expenses increased modestly by $0.5 million from the prior quarter, but year-over-year expenses declined by $2 million due to lower compensation and professional services costs [9]. Corporate Developments - The board authorized a share repurchase program of up to $2 million, with $0.3 million already repurchased as of March 31, 2025 [10]. - A second-quarter dividend of 8 cents per common share was declared, maintaining consistent payouts since 2016 [10]. SBA Lending Position - BayFirst ranks as the 10th largest SBA 7(a) lender by loan units and 19th by dollar volume nationwide for the SBA's quarter ended March 31, 2025 [11].

Financial Data and Key Metrics Changes - The company reported a net loss of $335,000 from continuing operations in Q1 2025, compared to a net income of $9,800,000 in Q4 2024 [9] - Total assets increased by $3,700,000 to $1,290,000,000, representing a 0.3% growth during the quarter, and a 12.9% increase year-over-year [10] - Net interest margin improved by 17 basis points to 3.77%, with net interest income rising to $11,000,000, up $300,000 from the previous quarter [11] - Noninterest income decreased to $8,800,000 from $22,300,000 in Q4 2024, primarily due to a prior gain from a sale leaseback transaction [11][12] - Provision for credit losses was $4,400,000, slightly down from $4,500,000 in the previous quarter [14] Business Line Data and Key Metrics Changes - Loans held for investment grew by $18,300,000 or 1.7% during the quarter, with total loans held for investment at $1,290,000,000 [10] - The government guaranteed loan origination platform originated $106,300,000 in new loans, with $60,500,000 being BOLT loans, showing stability but falling short of targeted expectations [6] - The conventional loan portfolio grew by $140,000,000 or 26% year-over-year, totaling $686,000,000 at quarter end [19] Market Data and Key Metrics Changes - Total deposits decreased by $15,000,000 or 1.3% during the first quarter, ending at $1,130,000,000 [10] - Nonperforming assets to total assets increased to 1.94%, up from 1.47% year-over-year, driven by larger, well-collateralized loans [15] Company Strategy and Development Direction - The company is initiating a comprehensive strategic review aimed at derisking the balance sheet and positioning for long-term growth and enhanced shareholder value [8] - The focus is on improving credit quality, particularly for SBA loans, and enhancing credit risk management with new leadership additions [19] Management's Comments on Operating Environment and Future Outlook - Management noted challenges such as higher provision expenses, write-downs on loans, and lower loan demand due to economic conditions [4] - There is a commitment to resilience and innovation to align with the dynamic banking landscape [21] Other Important Information - The company has seen a consistent growth in community bank loans and core deposits, positioning itself as a premier community bank in Tampa Bay [6] - The tangible book value decreased slightly to $22.77 per share from $22.95 per share at the end of Q4 2024 [10] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator noted that there were no questions, concluding the conference call [23]

Core Points - BayFirst Financial Corp. reported a net loss of $0.3 million, or $0.17 per common share, for Q1 2025, a significant decrease from a net income of $9.8 million in Q4 2024 [1][5][27] - The company experienced net interest margin expansion to 3.77%, up 17 basis points from Q4 2024, and 35 basis points from Q1 2024 [3][6][27] - Total loans held for investment increased by $18.3 million, or 1.7%, during Q1 2025, and by $149.9 million, or 16.0%, year-over-year [3][13][27] - Noninterest income decreased to $8.8 million in Q1 2025 from $22.3 million in Q4 2024, primarily due to lower borrower demand and a significant gain on sale of branch properties in the previous quarter [9][10][27] - The company announced a share repurchase program allowing for the repurchase of up to $2.0 million of outstanding shares [21] - A second quarter cash dividend of $0.08 per common share was declared, continuing the company's history of quarterly dividends since 2016 [22] Financial Performance - Net interest income from continuing operations was $11.0 million in Q1 2025, an increase from $10.7 million in Q4 2024 and $8.7 million in Q1 2024 [6][8][27] - Noninterest expense increased to $15.8 million in Q1 2025 from $15.3 million in Q4 2024, but decreased from $17.8 million in Q1 2024 [10][27] - The provision for credit losses was $4.4 million in Q1 2025, compared to $4.5 million in Q4 2024 and $4.1 million in Q1 2024 [15][27] Asset Quality - The ratio of allowance for credit losses (ACL) to total loans held for investment was 1.61% as of March 31, 2025, slightly up from 1.54% at the end of 2024 [16][27] - Net charge-offs for Q1 2025 were $3.3 million, a decrease from $3.4 million in Q4 2024 and $3.7 million in Q1 2024 [17][27] - Nonperforming assets increased to 2.08% of total assets as of March 31, 2025, compared to 1.50% at the end of 2024 [17][27] Balance Sheet - Total assets increased by $3.7 million, or 0.3%, during Q1 2025, reaching $1.29 billion, driven by loan growth [12][27] - Total deposits decreased by $15.0 million, or 1.3%, during Q1 2025, but increased by $121.0 million, or 12.0%, year-over-year [14][27] - The company had $20.0 million of borrowings from the Federal Home Loan Bank as of March 31, 2025, compared to no borrowings at the end of 2024 [20][27] Strategic Initiatives - The company aims to grow recurring revenue through net interest income, reducing reliance on gains from government guaranteed loans [2][3] - A focus on expanding low-cost deposit accounts to fund the growing loan portfolio is part of the strategic plan [2][3]

Group 1: Core Insights - Zacks Investment Research has initiated coverage of BayFirst Financial Corp. (BAFN) with an Outperform recommendation, highlighting its profitability surge, strategic technology use, and regional market strength as key factors for potential investor interest [1] - BayFirst's earnings in 2024 showed a significant turnaround, with return on equity more than doubling year over year to 12.8% and net interest margin expanding to 3.6%, driven by disciplined pricing and operational efficiency [2] - The bank is located in the rapidly growing Tampa Bay-Sarasota region, benefiting from strong population growth and rising banking demand, and is recognized as Florida's Best Bank in 2024, enhancing its market positioning [3] Group 2: Technology and Expansion - Technology plays a crucial role in BayFirst's long-term growth, with platforms like PowerLOS and MuleSoft's Open API automating lending workflows and improving customer responsiveness, allowing for cost-effective scaling of operations [4] - BayFirst's national SBA and USDA lending platform, including the successful Bolt program, leverages fintech partnerships to reach underserved borrowers, expanding its footprint beyond Florida [4] Group 3: Market Position and Valuation - BayFirst's shares have shown steady improvement and trade at a lower valuation compared to industry peers, indicating that the market has not fully priced in the company's earnings potential and technological advancements [6] - Despite challenges related to credit quality and capital reserves, the firm's strategic focus and diversified loan portfolio position it well for continued growth [7]

Core Viewpoint - BayFirst Financial Corp. will report its first quarter results on April 24, 2025, with a conference call scheduled for April 25, 2025, to discuss the results [1][2]. Company Overview - BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida, operational since September 1, 2000 [3]. - The primary income source is its wholly owned subsidiary, BayFirst National Bank, which began operations on February 12, 1999 [3]. - The Bank operates twelve full-service banking offices in the Tampa Bay-Sarasota region, offering a wide range of commercial and consumer banking services [3]. - In 2024, BayFirst was named the best bank in Florida by Forbes and ranked as the 9th largest SBA 7(a) lender by units originated and 16th by dollar volume nationwide as of December 31, 2024 [3]. - As of December 31, 2024, BayFirst Financial Corp. had total assets of $1.29 billion [3].