BayFirst Financial (NasdaqCM:BAFN) Q4 2025 Earnings call January 30, 2026 09:00 AM ET Company ParticipantsJulienne Cassarino - FounderRobin Oliver - President and COORoss Haberman - Money ManagerScott McKim - EVP and CFOThomas Zernick - CEOOperatorGood morning, ladies and gentlemen, and welcome to the BayFirst Financial Corp Q4 2025 conference call and webcast. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during ...

Financial Data and Key Metrics Changes - The company reported a net loss of $2.5 million in Q4 2025, an improvement from a net loss of $18.9 million in Q3 2025, which included a restructuring charge of $7.3 million and additional provision expense of $8.1 million [7] - Loans held for investment decreased by $34.8 million, or 3.5%, in Q4 2025, ending at $963.9 million, with a total annual decrease of $102.7 million, or 9.6% [7] - Deposits increased by $12.5 million, or 1.1%, in Q4 2025, totaling $1.18 billion, with a year-over-year increase of $40.7 million, or 3.6% [8] - Shareholders' equity at quarter end was $87.6 million, down $23.4 million from the end of 2024, and tangible book value decreased to $17.22 per share from $17.90 per share in Q3 2025 [9] Business Line Data and Key Metrics Changes - The bank's net interest margin remained stable at 3.58%, down 3 basis points from Q3 2025, with net interest income of $11.2 million in Q4 2025, a decrease of about $100,000 from Q3 2025 but an increase of $500,000 from the same quarter last year [9] - Treasury management revenues grew by 69% compared to Q4 2024, indicating strong performance in this business line [3] Market Data and Key Metrics Changes - The company reported that 85% of its deposits were insured by the FDIC as of December 31, 2025, providing a strong safety net for depositors [8] - The liquidity ratio was over 18% at year-end, supporting efforts to reduce high-cost deposits and improve the bank's cost of funds [5] Company Strategy and Development Direction - The company has exited the SBA 7(a) lending business and is focusing on becoming the premier community bank in the Tampa Bay area, emphasizing organic growth in deposits and community engagement [2][3] - The strategic plan for 2026 includes fortifying the balance sheet and maintaining a culture of disciplined risk management to drive sustainable revenue growth [21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges faced in the legacy SBA 7(a) business but expressed confidence in the bank's ability to manage future risks and improve asset quality [4][19] - The focus on credit risk management is a priority, with efforts to reduce non-performing and classified loans expected to improve in the coming quarters [19] Other Important Information - The provision for credit losses was $2 million in Q4 2025, significantly lower than $10.9 million in Q3 2025 and $4.5 million in Q4 2024 [12] - Non-interest income was negative $104,000 in Q4 2025, an improvement from the previous quarter but a decrease from $22.3 million in Q4 2024, primarily due to reduced gains from the sale of SBA loans [10] Q&A Session Summary Question: What is the specific allowance against the $171 million of unguaranteed government loans, and what's been the recent default experience? - The company indicated that approximately 13% of the $171.6 million in unguaranteed balances is covered by the allowance for credit losses, with a default rate lower than that [25] Question: What was the peak of the unguaranteed portion before the loan sale? - The unguaranteed portion was about $50.5 million higher at the end of Q3 2025 [28] Question: Can you discuss the growth in deposits and the reduction in deposit costs? - The growth in deposits is attributed to strong relationships with customers and effective management of deposit costs, with a reduction of nearly 13 basis points sequentially [35][36]

NewtekOne (NasdaqGM:NEWT) Q4 2025 Earnings call January 29, 2026 04:30 PM ET Company ParticipantsBarry Sloane - President and CEOFrank DeMaria - EVP and CFOConference Call ParticipantsChristopher Nolan - AnalystDillion Hines - AnalystStephen Moss - AnalystTim Switzer - Senior Research AnalystOperatorThank you for standing by and welcome to NewtekOne, Inc.'s Fourth Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a ...

NewtekOne (NasdaqGM:NEWT) Q4 2025 Earnings call January 29, 2026 04:30 PM ET Company ParticipantsBarry Sloane - President and CEOFrank DeMaria - EVP and CFOConference Call ParticipantsChristopher Nolan - AnalystDillion Hines - AnalystStephen Moss - AnalystTim Switzer - Senior Research AnalystOperatorThank you for standing by and welcome to NewtekOne, Inc.'s Fourth Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a ...

NewtekOne (NasdaqGM:NEWT) Q4 2025 Earnings call January 29, 2026 04:30 PM ET Speaker1Thank you for standing by and welcome to NewtekOne, Inc.'s Fourth Quarter 2025 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press Star 11 on your telephone. To remove yourself from the queue, you may press Star 11 again. I would now like to hand the call o ...

Midpoint of 2026 Guidance Range is $2.35/ShareBOCA RATON, Fla., Jan. 29, 2026 (GLOBE NEWSWIRE) -- NewtekOne, Inc. (the "Company") (Nasdaq: NEWT) reports its financial and operating results for the three and twelve month periods ended December 31, 2025. Financial Highlights for the three and twelve months ended December 31, 2025: For the three months ended December 31, 2025 ("4Q25"), basic and diluted earnings per share ("EPS") were $0.65 and $0.65, respectively, vs. $0.70 and $0.69, respectively, for the th ...

Financial Data and Key Metrics Changes - The company reported net income of $20.7 million or $2.47 per diluted share for the quarter, with year-to-date net income of $43.3 million or $5.14 per diluted share [13] - Return on average assets was 1.87% for the quarter and 2% year to date, while return on average equity was 15.6% for the quarter and 16.6% year to date [13] - Net interest margin (NIM) for the quarter was 4.49%, down from 4.59% in the linked quarter, resulting in net interest income of $48.8 million for the quarter [14][15] Business Line Data and Key Metrics Changes - The company originated $252 million of loans in the national lending division, with a record quarter for originated loans [8][19] - The company purchased 152 loans in five transactions with a total balance of $576 million at a purchase price of $533 million, achieving a weighted average yield to maturity of 10.8% [19] - SBA loan originations were $39.8 million, with $25 million sold for a gain of $2.1 million [9][15] Market Data and Key Metrics Changes - The company experienced significant loan volume, with total loans on the balance sheet reaching $4.4 billion, up from $3.7 billion as of September 30th [13] - The allowance for credit losses increased from $46.7 million to $63.8 million, reflecting a coverage ratio increase from 1.24% to 1.47% [16] - The company noted that the current pipeline for loans is as full as it has ever been, with expectations of increased loan activity driven by M&A [19] Company Strategy and Development Direction - The company aims to grow its deposit base in Maine, which is seen as a less expensive and stickier source of funding compared to brokered deposits [31] - The company is focusing on expanding its small balance insured business loan program, which has seen significant demand [45] - The management is strategically investing in people and technology to set the bank up for long-term success while maintaining disciplined expense management [17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged that the SBA program was impacted by a government shutdown, but they expect a rebound in loan originations and sales moving forward [10][12] - The company anticipates a lift in net interest margin due to the downward liability repricing expected over the next two quarters [29] - Management expressed optimism about the loan growth trajectory, with expectations of significant net interest income in subsequent quarters due to a higher loan book [11][12] Other Important Information - The company reported a decrease in non-interest expense from $21.9 million to $20.8 million, attributed to lower professional fees and reduced loan acquisition costs [17] - The company has a strong capital position with a Tier 1 leverage ratio of 12.2% and a tangible book value of $62.65 per share [17] Q&A Session Summary Question: Did the company buy back stock in the fourth quarter? - The CFO clarified that the decrease in share count was due to stock compensation activity and cancellation of shares to cover taxes, with no stock buybacks [27] Question: What is the expectation for net interest margin going forward? - The CFO indicated that a lift in net interest margin is anticipated due to downward liability repricing [29] Question: How does the company view the funding mix as it grows? - Management stated that brokered deposits will likely continue to be a main source of growth, while also focusing on growing deposits in Maine [31] Question: What percentage of purchase loans does the company typically retain at maturity? - Management did not have the exact number but indicated that they try to retain many loans, especially when rates are higher [33] Question: Will there be a catch-up in SBA gain on sale income next quarter? - The CFO clarified that they expect an increase in SBA loan volume and gain on sale income next quarter, estimating around $20 million a month [40]

Financial Data and Key Metrics Changes - Total assets reached $2.8 billion, up 8.1% year-over-year [2] - Loans grew by $216 million, or 11%, reflecting strong commercial activity [2] - Deposits increased to $171 million, or 7.9% [2] - Net interest income expanded to 3.27%, improving from 3.16% in the prior year [2] - Non-performing loans stood at 0.14% of total loans, indicating excellent credit quality [3] - Tangible book value per share increased 10.8% year-over-year to $11.97 [3] - GAAP-diluted EPS reported at $0.07, with operational diluted EPS at $0.44 [4] Business Line Data and Key Metrics Changes - Average loans increased $31.9 million, or 6.02% annualized compared to the prior quarter [10] - Gross loan production totaled $196 million in Q4, with $83.5 million from correspondent banking [12] - Average deposits were stable, down $3.9 million compared to the prior quarter but up $314.6 million year-over-year [10] - Net interest income increased by $933,000 on a linked quarter basis, representing 17.4% annualized growth [13] Market Data and Key Metrics Changes - The bank's loan portfolio increased to just under $2.2 billion, with commercial real estate representing 57% [18] - The quality of the loan portfolio remains strong, with a past-due ratio at 0.14% [19] - The bank's securities portfolio ended the quarter with $461.4 million, with a quarterly portfolio yield of 3.01% [15] Company Strategy and Development Direction - The company aims to expand and strengthen its deposit base as a top priority for 2026 [25] - Focus on four strong business lines: Business Banking, Private Client Group, Association Banking, and Correspondent Banking [26] - Plans to launch a new lending and deposit gathering team in targeted small business markets [27] - Emphasis on relationship-driven growth rather than rate-driven [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the bank's business model and strategic actions to enhance earnings power in 2026 [3] - Anticipation of further NIM improvement supported by rate cuts and ongoing deposit strategy execution [13] - The bank's capital ratios exceed regulatory requirements, indicating a solid financial position [6] Other Important Information - The board approved a 25% increase in quarterly cash dividend to $0.12 per share [6] - The company executed a $40 million subordinated debt issuance, primarily used for share repurchase [3] Q&A Session Summary Question: Deposit trends and shrinkage at year-end - Management noted a significant deposit move of over $100 million from a long-term client, which is expected to rebuild over time [35] Question: Loan-to-deposit ratio expectations - Management prefers a loan-to-deposit ratio between 90-95% and anticipates rebuilding deposits in 2026 [39] Question: SBA vertical expansion - The SBA initiative has been growing prudently, aiming for $40-$50 million in annual volume over the next three years [41] Question: Capital strategy and priorities - The focus remains on building capital and returning it to shareholders, with no significant plans for new initiatives [47] Question: Margin expectations for the first quarter - Management expects NIM to be flat to slightly up in the first quarter, with potential for growth from rate cuts [54] Question: Expense outlook - Anticipated expenses to gradually increase with new hires, targeting a low 50% efficiency ratio [65] Question: Fee income outlook - Expected non-interest income to build around $3.5-$3.8 million range for 2026, driven by various fee-generating activities [68]

Financial Data and Key Metrics Changes - Earnings for the fourth quarter were $262 million, up 19% from the prior quarter and 31% year-over-year, driven by stronger revenues and lower provision for credit losses [5] - Net interest margin expanded for the eighth consecutive quarter to 3.31%, benefiting from an improved funding mix [5][9] - Annualized average loans were flat compared to the last quarter, but period-end balances increased by $615 million [5][16] - Tangible book value per share increased by 21% year-over-year, marking the third consecutive year of growth over 20% [7][22] Business Line Data and Key Metrics Changes - Adjusted PPNR for the quarter was $331 million, down 6% sequentially but up 6% year-over-year [7] - Customer-related noninterest income reached $177 million, a record for the company, up from $163 million in the prior period [12] - Capital markets fees, excluding net CVA, increased by 25% compared to the full year 2024, driven by higher customer swaps and investment banking revenues [13] Market Data and Key Metrics Changes - Average deposits increased by 2.3% compared to the prior quarter, with average non-interest-bearing deposits growing by $1.7 billion or 6% [16][17] - Period-end deposit balances grew by $766 million versus the prior quarter, allowing for a reduction in higher-cost short-term borrowings [18] Company Strategy and Development Direction - The company aims to increase capital distributions while continuing to strengthen capital [6][22] - Focus on small business lending is central to growth strategy, with a near doubling of SBA 7(a) loans and a 53% increase in dollars produced [44] - Increased marketing and business development expenses are part of a strategy to revamp products and drive growth [31][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of performance despite industry disruptions, particularly in credit quality [6][22] - The outlook for net interest income for 2026 is moderately increasing, supported by favorable earning asset and interest-bearing liability remix [10] - Management is cautious about potential rate cuts and their impact on asset sensitivity, indicating a balanced approach to growth and risk management [39][102] Other Important Information - The company made a $15 million donation to its charitable foundation, which will be spent over the next three years [6] - The allowance for credit losses as a percentage of loans declined to 1%, with net charge-offs at 5 basis points [20] Q&A Session Summary Question: Clarification on expense guidance - The base for the moderately increasing guide should exclude the charitable contribution for the quarter [25][26] Question: Increased competition in markets - Management acknowledged ongoing competition but emphasized that increased marketing spend is driven by internal product revamps rather than new entrants [29][31] Question: NII outlook for 2026 - Management indicated potential for remixing on both sides of the balance sheet contributing to NII outcomes, with a focus on granular deposit growth [34][36] Question: Loan growth dynamics - Management highlighted strong growth in small business lending and a focus on C&I and owner-occupied loans, with expectations for continued growth in these areas [43][46] Question: Capital return timing - Management indicated that they are nearing a position to consider capital returns, with expectations for acceleration in the second half of the year [51][52] Question: Non-interest-bearing deposits growth - Management reported growth in new customer acquisitions and emphasized the importance of building a solid base of granular accounts [61][63]

Key insight: After closing a $95 million SBA loan sale to Miami-based Banesco USA, BayFirst Financial is working to close a second, larger sale to Banesco by year-end.Forward look: Banesco USA CEO Calixto Garcia Velez is confident his bank can meet or exceed BayFirst's SBA origination levels, which approached $500 million annually prior to the onset of credit quality issues.Expert quote: "We're going to make a big effort to see if we can be successful in cross-selling these small business clients. We want t ...