BayFirst Financial Corp. Reports Second Quarter 2025 Results

Core Points - BayFirst Financial Corp. reported a net loss of $1.2 million, or $(0.39) per share, for Q2 2025, compared to a net loss of $0.3 million, or $(0.17) per share, in Q1 2025 [1][8][32] - The company is undergoing a strategic review to derisk unguaranteed SBA 7(a) balances and enhance long-term growth and shareholder value [2][4] - The net interest margin increased to 4.06% in Q2 2025, up 29 basis points from Q1 2025 and 63 basis points from Q2 2024 [6][10] Financial Performance - Net interest income for Q2 2025 was $12.3 million, an increase from $11.0 million in Q1 2025 and $9.2 million in Q2 2024 [10][11] - Noninterest income was $10.8 million in Q2 2025, up from $8.8 million in Q1 2025 but down from $11.7 million in Q2 2024 [14][17] - The company recorded a provision for credit losses of $7.3 million in Q2 2025, compared to $4.4 million in Q1 2025 and $3.0 million in Q2 2024 [23][24] Loan and Deposit Growth - Loans held for investment increased by $41.0 million, or 3.8%, during Q2 2025, totaling $1.13 billion [15][21] - Deposits rose by $35.5 million, or 3.1%, during Q2 2025, reaching $1.16 billion [22][39] - The company originated $106.4 million in new government guaranteed loans in Q2 2025, slightly up from $106.3 million in Q1 2025 [6][7] Asset Quality - Net charge-offs for Q2 2025 were $6.8 million, an increase from $3.3 million in Q1 2025 [25][32] - The ratio of allowance for credit losses (ACL) to total loans held for investment was 1.65% as of June 30, 2025, up from 1.61% as of March 31, 2025 [24][26] Capital and Liquidity - The company's total assets increased by $51.9 million, or 4.0%, during Q2 2025, totaling $1.34 billion [20][39] - The Tier 1 leverage ratio was 8.11% as of June 30, 2025, down from 8.56% as of March 31, 2025 [26][27] - The bank's liquidity position remains strong, with an on-balance sheet liquidity ratio of 8.28% as of June 30, 2025 [27]