Core Viewpoint - BayFirst Financial Corp. has discontinued its Bolt loan program as part of a strategic review aimed at long-term growth and enhancing shareholder value [1][2] Group 1: Strategic Changes - The Bolt loan program, an SBA 7(a) loan product for small businesses, has been terminated to reduce risk associated with unguaranteed loans [2] - A reduction in force has been announced, affecting 51 positions, which represents 17% of the workforce, resulting in annual cost savings of $6 million [2] - The company plans to record restructuring charges in the third quarter related to the exit from the Bolt loan program and is seeking to sell the associated loan balances and origination platform [2] Group 2: Financial Position - As of June 30, 2025, BayFirst Financial Corp. reported total assets of $1.34 billion [4] - The company was the 8th largest SBA 7(a) lender by number of units originated and the 18th largest by dollar volume nationwide as of the same date [4] Group 3: Future Focus - The leadership team is committed to innovation and resilience, aiming to build a premier community banking franchise and capitalize on strengths in the Florida markets [3] - The company operates twelve banking centers in the Tampa Bay area, positioning itself to efficiently grow and gain market share [3]

Core Points - BayFirst Financial Corp. reported a net loss of $0.3 million, or $0.17 per common share, for Q1 2025, a significant decrease from a net income of $9.8 million in Q4 2024 [1][5][27] - The company experienced net interest margin expansion to 3.77%, up 17 basis points from Q4 2024, and 35 basis points from Q1 2024 [3][6][27] - Total loans held for investment increased by $18.3 million, or 1.7%, during Q1 2025, and by $149.9 million, or 16.0%, year-over-year [3][13][27] - Noninterest income decreased to $8.8 million in Q1 2025 from $22.3 million in Q4 2024, primarily due to lower borrower demand and a significant gain on sale of branch properties in the previous quarter [9][10][27] - The company announced a share repurchase program allowing for the repurchase of up to $2.0 million of outstanding shares [21] - A second quarter cash dividend of $0.08 per common share was declared, continuing the company's history of quarterly dividends since 2016 [22] Financial Performance - Net interest income from continuing operations was $11.0 million in Q1 2025, an increase from $10.7 million in Q4 2024 and $8.7 million in Q1 2024 [6][8][27] - Noninterest expense increased to $15.8 million in Q1 2025 from $15.3 million in Q4 2024, but decreased from $17.8 million in Q1 2024 [10][27] - The provision for credit losses was $4.4 million in Q1 2025, compared to $4.5 million in Q4 2024 and $4.1 million in Q1 2024 [15][27] Asset Quality - The ratio of allowance for credit losses (ACL) to total loans held for investment was 1.61% as of March 31, 2025, slightly up from 1.54% at the end of 2024 [16][27] - Net charge-offs for Q1 2025 were $3.3 million, a decrease from $3.4 million in Q4 2024 and $3.7 million in Q1 2024 [17][27] - Nonperforming assets increased to 2.08% of total assets as of March 31, 2025, compared to 1.50% at the end of 2024 [17][27] Balance Sheet - Total assets increased by $3.7 million, or 0.3%, during Q1 2025, reaching $1.29 billion, driven by loan growth [12][27] - Total deposits decreased by $15.0 million, or 1.3%, during Q1 2025, but increased by $121.0 million, or 12.0%, year-over-year [14][27] - The company had $20.0 million of borrowings from the Federal Home Loan Bank as of March 31, 2025, compared to no borrowings at the end of 2024 [20][27] Strategic Initiatives - The company aims to grow recurring revenue through net interest income, reducing reliance on gains from government guaranteed loans [2][3] - A focus on expanding low-cost deposit accounts to fund the growing loan portfolio is part of the strategic plan [2][3]