Core Insights - BayFirst Financial Corp. reported a significant net loss of $18.9 million, or $4.66 per share, for Q3 2025, compared to a net loss of $1.2 million in Q2 2025, primarily due to higher provision expenses and one-time charges related to restructuring [1][8][29] Financial Performance - The net interest margin decreased to 3.61% in Q3 2025 from 4.06% in Q2 2025, but increased from 3.34% in Q3 2024 [7][10] - Net interest income from continuing operations was $11.3 million in Q3 2025, down from $12.3 million in Q2 2025, but up from $9.4 million in Q3 2024 [10][11] - Noninterest income was negative $1.0 million in Q3 2025, a significant decrease from $10.8 million in Q2 2025 and $12.3 million in Q3 2024 [14][17] Strategic Initiatives - The company is undergoing a strategic transformation, including exiting the SBA 7(a) lending business and selling a portion of its loan portfolio to Banesco USA for 97% of the retained loans' balances, resulting in a net loss of $5.1 million [3][29] - Management is focused on derisking the balance sheet and enhancing long-term growth and shareholder value, with plans to close the SBA loan sale in Q4 2025 [3][4] Asset Quality - The provision for credit losses in Q3 2025 was $10.9 million, up from $7.3 million in Q2 2025 and $3.1 million in Q3 2024 [24] - The allowance for credit losses on loans was 2.61% of total loans held for investment as of September 30, 2025, compared to 1.65% in Q2 2025 and 1.48% in Q3 2024 [25] Balance Sheet Highlights - Total assets increased by $2.1 million, or 0.2%, to $1.35 billion in Q3 2025, driven by an increase in cash and cash equivalents [20] - Loans held for investment decreased by $127.1 million, or 11.3%, during Q3 2025, primarily due to the transfer of loans to held for sale [21] - Total deposits increased by $7.7 million, or 0.7%, during Q3 2025, totaling $1.17 billion [22] Capital and Liquidity - The Tier 1 leverage ratio was 6.64% as of September 30, 2025, down from 8.11% in Q2 2025 [27] - The bank's liquidity position remains strong, with an on-balance sheet liquidity ratio of 11.31% as of September 30, 2025 [28]

Company Overview - BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida, which commenced operations on September 1, 2000 [3] - The primary source of income is derived from its wholly owned subsidiary, BayFirst National Bank, which began operations on February 12, 1999 [3] - The Bank operates twelve full-service banking offices throughout the Tampa Bay-Sarasota region, offering a broad range of commercial and consumer banking services [3] - As of June 30, 2025, BayFirst Financial Corp. had total assets of $1.34 billion [3] Recent Developments - BayFirst Financial Corp. will report its third quarter results after the market close on Thursday, October 30, 2025 [1] - Management will host a conference call on Friday, October 31, 2025, at 9:00 a.m. ET to discuss the results, which will also be broadcast live via the internet [1][2] - The Bank was the 8th largest SBA 7(a) lender by number of units originated and 18th largest by dollar volume nationwide as of the SBA's quarter ended June 30, 2025 [3]

Core Viewpoint - BayFirst Financial Corp. plans to exit the SBA 7(a) lending business and sell $103 million of SBA 7(a) loan balances to Banesco USA, marking a strategic move to derisk its balance sheet and enhance long-term growth and shareholder value [1][2]. Company Overview - BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida, with total assets of $1.34 billion as of June 30, 2025. It operates twelve full-service banking offices in the Tampa Bay-Sarasota region, offering a range of commercial and consumer banking services [5]. - Banesco USA, an independent Florida state-chartered bank founded in 2006, has $5.2 billion in assets as of June 30, 2025, and operates six branches across South Florida and Puerto Rico. The bank focuses on serving small and middle-market businesses, as well as professionals, with personalized financial services [6]. Transaction Details - BayFirst has signed a definitive agreement to sell $103 million in SBA 7(a) loans to Banesco USA at 97% of retained balances. Banesco USA will assume servicing of these loans and purchase servicing rights for book value [2][3]. - The transaction is expected to close in the fourth quarter of 2025, with the majority of BayFirst's current SBA lending staff being offered positions with Banesco USA [2][3]. Strategic Implications - The exit from the SBA 7(a) lending business allows BayFirst to focus on its community bank mission, enhancing its portfolio of stable checking and savings products, and creating opportunities for deposit growth and fee income [3]. - Banesco USA aims to leverage the acquisition of BayFirst's SBA lending team and loan portfolio to establish a nationwide SBA lending platform, enhancing its capabilities to serve small and mid-size companies across Florida and nationally [4].

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].