BayFirst Financial (US:BAFN) Globenewswire·2026-01-29 21:00Core Viewpoint - BayFirst Financial Corp. reported a net loss of $2.5 million for Q4 2025, a significant improvement from a net loss of $18.9 million in Q3 2025, indicating progress in its restructuring efforts and strategic plan to derisk its loan portfolio [1][6][9]. Financial Performance - The net loss for Q4 2025 was $2.5 million, compared to a net loss of $18.9 million in Q3 2025 and a net income of $9.8 million in Q4 2024 [1][6]. - The decrease in net loss was attributed to an $8.9 million reduction in provision for credit losses, a $0.9 million increase in noninterest income, and a $13.3 million decrease in noninterest expenses [6][9]. - The net interest margin was stable at 3.58%, with organic deposit growth of $12.5 million in Q4 2025 [3][10]. Strategic Initiatives - The company successfully sold $96.6 million in loans to Banesco USA, marking a critical milestone in its strategic plan [2][4]. - The exit from the SBA 7(a) lending business was completed in Q4 2025, with Banesco USA assuming servicing of the remaining loans [2][3]. Asset Quality - The provision for credit losses in Q4 2025 was $2.0 million, down from $10.9 million in Q3 2025 [22]. - Nonperforming assets were 2.04% of total assets as of December 31, 2025, an increase from 1.97% in Q3 2025 [24]. Balance Sheet - Total assets decreased by $45.7 million, or 3.4%, to $1.30 billion during Q4 2025, primarily due to the sale of loans and a decrease in loans held for investment [18]. - Loans held for investment decreased by $34.8 million, or 3.5%, during Q4 2025 [19]. - Total deposits increased by $12.5 million, or 1.1%, to $1.18 billion, with 85% of deposits insured by the FDIC [21][26]. Capital and Liquidity - The Bank's Tier 1 leverage ratio was 6.63% as of December 31, 2025, compared to 6.64% in Q3 2025 [25]. - The liquidity position remains strong, with an on-balance sheet liquidity ratio of 18.35% as of December 31, 2025 [26].