Core Insights - BayFirst Financial Corp. reported a net loss of $2.5 million for Q4 2025, a significant decline from a net income of $9.8 million in the same quarter of the previous year [2] - The company's stock has decreased by 2.2% since the earnings report, contrasting with a 0.2% increase in the S&P 500 index during the same period [1] Financial Performance - Net interest income increased by 4.7% year-over-year to $11.2 million, while noninterest income fell to a negative $0.1 million from $22.3 million in the previous year [2] - For the full year 2025, BayFirst incurred a net loss of $22.9 million, or $5.93 per share, compared to a net income of $12.6 million, or $2.68 per share, in 2024 [11] Key Business Metrics - The net interest margin (NIM) for Q4 was 3.58%, slightly down from 3.60% a year ago, attributed to lower loan yields and higher-cost funding [3] - Total deposits rose by $12.5 million (1.1%) during the quarter and by $40.7 million (3.6%) year-over-year, reaching $1.2 billion [4] Loan Activity - Loans held for investment decreased by $102.7 million (9.6%) year-over-year, with a notable sale of $96.6 million in SBA 7(a) loans to Banesco USA [5] - Despite the contraction, BayFirst originated $26.3 million in new loans during the quarter [5] Management Commentary - CEO Thomas Zernick highlighted the company's strategic restructuring, including exiting the SBA 7(a) lending business and reducing headcount from 299 to 144 employees [6] - CFO Scott McKim noted a stable liquidity position, with the liquidity ratio exceeding 18% at year-end, up from 9.2% a year ago [7] Expense Management - A reduction in noninterest expense by $13.3 million contributed to a narrower loss, primarily due to lower compensation and the absence of restructuring charges [8] - Elevated net charge-offs of $4.6 million in Q4, up from $3.4 million in the previous year, remain a concern [9] Strategic Developments - The completed sale of $96.6 million in SBA 7(a) loans to Banesco USA marks a significant step in the company's derisking initiative [12] - BayFirst implemented substantial cost-cutting measures, including a nearly 52% reduction in full-time equivalent employees, and saw a 69% growth in treasury management revenues year-over-year [13]

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BayFirst Financial (NasdaqCM:BAFN) Q4 2025 Earnings call January 30, 2026 09:00 AM ET Company ParticipantsJulienne Cassarino - FounderRobin Oliver - President and COORoss Haberman - Money ManagerScott McKim - EVP and CFOThomas Zernick - CEOOperatorGood morning, ladies and gentlemen, and welcome to the BayFirst Financial Corp Q4 2025 conference call and webcast. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during ...

BayFirst Financial (NasdaqCM:BAFN) Q4 2025 Earnings call January 30, 2026 09:00 AM ET Company ParticipantsJulienne Cassarino - FounderRobin Oliver - President and COORoss Haberman - Money ManagerScott McKim - EVP and CFOThomas Zernick - CEOOperatorGood morning, ladies and gentlemen, and welcome to the BayFirst Financial Corp Q4 2025 conference call and webcast. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during ...

Financial Data and Key Metrics Changes - The company reported a net loss of $2.5 million in Q4 2025, an improvement from a net loss of $18.9 million in Q3 2025, which included a restructuring charge of $7.3 million and additional provision expense of $8.1 million [7] - Loans held for investment decreased by $34.8 million, or 3.5%, in Q4 2025, ending at $963.9 million, with a total annual decrease of $102.7 million, or 9.6% [7] - Deposits increased by $12.5 million, or 1.1%, in Q4 2025, totaling $1.18 billion, with a year-over-year increase of $40.7 million, or 3.6% [8] - Shareholders' equity at quarter end was $87.6 million, down $23.4 million from the end of 2024, and tangible book value decreased to $17.22 per share from $17.90 per share in Q3 2025 [9] Business Line Data and Key Metrics Changes - The bank's net interest margin remained stable at 3.58%, down 3 basis points from Q3 2025, with net interest income of $11.2 million in Q4 2025, a decrease of about $100,000 from Q3 2025 but an increase of $500,000 from the same quarter last year [9] - Treasury management revenues grew by 69% compared to Q4 2024, indicating strong performance in this business line [3] Market Data and Key Metrics Changes - The company reported that 85% of its deposits were insured by the FDIC as of December 31, 2025, providing a strong safety net for depositors [8] - The liquidity ratio was over 18% at year-end, supporting efforts to reduce high-cost deposits and improve the bank's cost of funds [5] Company Strategy and Development Direction - The company has exited the SBA 7(a) lending business and is focusing on becoming the premier community bank in the Tampa Bay area, emphasizing organic growth in deposits and community engagement [2][3] - The strategic plan for 2026 includes fortifying the balance sheet and maintaining a culture of disciplined risk management to drive sustainable revenue growth [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the legacy SBA 7(a) business but expressed confidence in the bank's ability to manage future risks and improve asset quality [4][19] - The focus on credit risk management is a priority, with efforts to reduce non-performing and classified loans expected to improve in the coming quarters [19] Other Important Information - The provision for credit losses was $2 million in Q4 2025, significantly lower than $10.9 million in Q3 2025 and $4.5 million in Q4 2024 [12] - Non-interest income was negative $104,000 in Q4 2025, an improvement from the previous quarter but a decrease from $22.3 million in Q4 2024, primarily due to reduced gains from the sale of SBA loans [10] Q&A Session Summary Question: What is the specific allowance against the $171 million of unguaranteed government loans, and what's been the recent default experience? - The company indicated that approximately 13% of the $171.6 million in unguaranteed balances is covered by the allowance for credit losses, with a default rate lower than that [25] Question: What was the peak of the unguaranteed portion before the loan sale? - The unguaranteed portion was about $50.5 million higher at the end of Q3 2025 [28] Question: Can you discuss the growth in deposits and the reduction in deposit costs? - The growth in deposits is attributed to strong relationships with customers and effective management of deposit costs, with a reduction of nearly 13 basis points sequentially [35][36]

BayFirst Financial Corp. (NASDAQ:BAFN) 2025 – Fourth Quarter Results (Unaudited) Cautionary Statement Concerning Forward-Looking Information In addition to the historical information contained herein, this presentation includes "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. These statements are subject to many risks and uncertainties, including, but not limited to, the effects of health crises, global military hostilities, weather events ...

ST. PETERSBURG, Fla., Jan. 29, 2026 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or “Company”), parent company of BayFirst National Bank (“Bank”) today reported a net loss of $2.5 million, or $0.69 per common share and diluted common share, for the fourth quarter of 2025, compared to a net loss of $18.9 million, or $4.66 per common share and diluted common share, in the third quarter of 2025. “We made continued progress on our restructuring efforts in the fourth quarter, resulting ...

ST. PETERSBURG, Fla., Dec. 31, 2025 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or “Company”), parent company of BayFirst National Bank (“Bank”) today announced that it will report its fourth quarter results after the market close on Thursday, January 29, 2026. Management will host a conference call on Friday, January 30, 2026, at 9:00 a.m. ET to discuss the results. The call will also be broadcast live via the internet. Interested investors may listen to the call live under the ...

Core Viewpoint - BayFirst Financial Corp. has successfully closed the sale of $94.6 million in loans to Banesco USA as part of a strategic review to derisk its SBA 7(a) balances and enhance long-term growth and shareholder value [2] Group 1: Loan Sale and Financial Impact - The loan sale to Banesco USA is part of a broader strategy to improve the company's financial ratios, with the total capital ratio increasing to 10.1% and the tier 1 leverage ratio improving to 6.8% on a proforma basis [2] - An additional $4.5 million in loan balances is expected to be sold to Banesco USA before the end of the year [2] Group 2: Community Banking Focus - The company emphasizes its commitment to community banking, aiming to serve individuals, families, and small businesses with stable financial products [3] - This relationship-driven approach is intended to strengthen the company's presence in the Tampa Bay region and create opportunities for deposit growth and fee income from services like treasury management [3] Group 3: Company Overview - BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida, with total assets of $1.35 billion as of September 30, 2025 [4] - The company operates twelve full-service banking offices in the Tampa Bay-Sarasota region, offering a wide range of commercial and consumer banking services [4]

Core Insights - BayFirst Financial Corp. experienced a significant decline in share price, dropping 10.8% following a negative earnings report for Q3 2025, contrasting with a minor decline of 0.4% in the S&P 500 index during the same period [1] - The company reported a net loss of $4.66 per share for Q3 2025, a stark contrast to a net income of 18 cents per share in the same quarter the previous year, primarily due to increased provisions for credit losses and one-time charges related to exiting the SBA 7(a) lending operations [2][3] - Total revenues increased by 19.4% year-over-year to $11.3 million, up from $9.4 million, driven by net interest income [2] Financial Performance - The net interest margin (NIM) improved to 3.61%, an increase of 27 basis points from 3.34% in the same period last year [4] - Noninterest income turned negative at $1 million, down from $12.3 million in Q3 2024, largely due to a $5.1 million fair value adjustment on held-for-sale loans [4] - Noninterest expenses surged to $25.2 million from $17.1 million in the prior year's third quarter, influenced by a $7.3 million restructuring charge [5] Management Commentary - CEO Thomas Zernick characterized the quarter as a period of "significant strategic transformation," emphasizing the exit from the SBA 7(a) lending business as a key move to derisk the balance sheet and refocus on core community banking [6] - Management aims for a targeted return to profitability in 2026, with a projected return on assets of 40-70 basis points [6] Strategic Developments - The company incurred a $5.1 million loss on held-for-sale SBA loans sold to Banesco USA, representing 97% of their balances, with expectations to sell additional SBA loan balances in future quarters [7] - BayFirst is shifting its focus towards consumer and residential mortgage lending in the Tampa Bay region [7] Performance Influencers - The net loss was significantly impacted by a $7.3 million restructuring expense and a $10.9 million provision for credit losses, which was more than triple the $3.1 million recorded in Q3 2024 [8] - Asset quality metrics worsened, with nonperforming assets rising to 1.97% of total assets from 1.38% a year ago, and the allowance for credit losses to loans held for investment increasing to 2.61% from 1.48% [9] Future Guidance - Management reaffirmed its goal of returning to profitability post-restructuring, targeting a return on assets of 40-70 basis points by 2026 [10] - Plans to resolve outstanding regulatory issues and strengthen credit administration are in place, with a potential agreement with the OCC expected in Q4 [11] Other Developments - The strategic exit from the SBA 7(a) lending business was formalized with a definitive agreement to sell a substantial portion of its SBA loan portfolio to Banesco USA [12] - The company terminated a previously announced $2 million stock repurchase program and acknowledged workforce reductions, with full-time equivalent employees decreasing from 300 to 237 [13]