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]

All right, so these trade talks are happening next week and already we're hearing talk about this deadline potentially being extended. Uh I want to get your take on that first. Why already look to extend the deadline when you know you're going to be talking in a few days.Well, I think they wanted to really get out ahead of what they know the markets are concerned about, what others are concerned about, and that is this this August the 12th deadline. And Frank, I think it's pretty clear that both sides here ...