BayFirst Financial (BAFN) Company Report

BayFirst Financial Corp. reported a net loss of $18.9 million for the third quarter of 2025, primarily driven by a $7.3 million restructuring charge and a $5.1 million discount related to the sale of a loan portfolio.
The company is exiting the SBA 7(a) lending business and has signed a definitive agreement to sell a large portion of its SBA 7(a) portfolio to Banesco USA, with the transaction expected to close later in the quarter.
Loans held for investment decreased by $127.1 million (11.3%) to $998.7 million in Q3 2025, and tangible book value decreased to $17.90 per share from $22.30 per share at the end of Q2 2025.
Management anticipates returning to profitability in 2026 with a goal of positive return on assets of 40 to 70 basis points, expecting lower net charge-offs and a net interest margin closer to the 4% target post-restructuring.

Nov 6, 2025, 10:00 PM

BayFirst Financial Corp. Reports Q3 2025 Net Loss Amidst Strategic Restructuring and SBA 7(a) Lending Exit

BAFN

Earnings

M&A

Guidance Update

BayFirst Financial Corp. (BAFN) reported a net loss of $18.9 million for Q3 2025, compared to a net loss of $1.2 million in Q2 2025.
The company is exiting SBA 7(a) lending and has signed a definitive agreement to sell a large portion of its SBA 7(a) portfolio to Banesco USA. A $7.3 million restructuring charge was recorded in Q3 2025, which included $2.9 million to write off assets related to the SBA 7(a) business and $3.9 million in personnel-specific costs. The discount on the portfolio sale was $5.1 million.
Total deposit balances increased by $7.7 million (0.7%) during Q3 2025, reaching $1.17 billion, with more than 84% of deposits insured by the FDIC on September 30, 2025.
Tangible book value decreased to $17.90 per share from $22.30 per share at the end of Q2 2025, and the net interest margin dipped 45 basis points to 3.61% in Q3 2025.
Management expects to return to profitability with a goal of achieving a positive return on assets of 40 to 70 basis points in 2026.

Oct 31, 2025, 1:00 PM

BayFirst National Bank Reports Significant Q3 2025 Net Loss

BAFN

Earnings

Profit Warning

Demand Weakening

BayFirst National Bank reported a net loss available to common shareholders of $(19,287) thousand and diluted earnings (loss) per common share of $(4.66) for Q3 2025.
The company's provision for credit losses significantly increased to $10,915 thousand in Q3 2025, up from $7,264 thousand in Q2 2025.
Asset quality metrics deteriorated, with nonperforming loans (excluding government guaranteed balance) to total loans held for investment at 1.69% and past due and nonaccrual loans to total loans held for investment at 3.07% as of September 30, 2025.
Net interest income decreased to $11,280 thousand in Q3 2025 from $12,348 thousand in Q2 2025, and the Net Interest Margin declined to 3.61% from 4.06% in the prior quarter.
Total Deposits increased by $8 million for the quarter to $1,171 million as of September 30, 2025, while Total Loans Held for Investment decreased to $999 million from $1,126 million in Q2 2025.

Oct 31, 2025, 1:00 PM

BayFirst Financial Corp. Reports Q3 2025 Net Loss and Announces SBA 7(a) Lending Exit

BAFN

Earnings

Profit Warning

BayFirst Financial Corp. reported a net loss of $18.9 million, or $4.66 per common share, for the third quarter of 2025.
This loss was primarily driven by $12.4 million in one-time charges, including a $7.3 million restructuring charge, related to the company's exit from the SBA 7(a) lending business.
The company has signed a definitive agreement to sell a portion of its SBA 7(a) loan portfolio, which resulted in a net loss of $5.1 million from the transaction.
The Bank's Tier 1 leverage ratio decreased to 6.64% as of September 30, 2025, from 8.11% at June 30, 2025, and tangible book value per common share decreased to $17.90 from $22.30 over the same period.

Oct 30, 2025, 8:00 PM

BayFirst Financial Corp. Reports Q3 2025 Net Loss and Announces SBA 7(a) Lending Business Exit

BAFN

Earnings

Guidance Update

M&A

BayFirst Financial Corp. reported a net loss of $18.9 million, or $4.66 per common share, for the third quarter of 2025, primarily due to higher provision expense and $12.4 million in one-time charges, including a $7.3 million restructuring charge related to exiting the SBA 7(a) lending business.
The company announced a strategic transformation involving the exit from the SBA 7(a) lending business and a definitive agreement to sell a portion of its SBA 7(a) loan portfolio to Banesco USA, with the transaction expected to close in the fourth quarter of 2025.
Following restructuring, BayFirst expects to return to profitability with a goal of achieving a positive return on assets of 40-70 basis points in 2026.
For Q3 2025, the net interest margin was 3.61%, deposits increased by $7.7 million to $1.17 billion, and book value per common share decreased to $17.90 from $22.30 at June 30, 2025.

Oct 30, 2025, 8:00 PM

BayFirst Financial Corp. to Exit SBA 7(a) Lending Business and Sell Loans

BAFN

M&A

BayFirst Financial Corp. (BAFN) announced its exit from the SBA 7(a) lending business.
The company signed a definitive agreement to sell $103 million of SBA 7(a) loan balances to Banesco USA at 97% of retained balances, with Banesco USA also purchasing servicing rights for book value.
The majority of BayFirst's current SBA lending staff and support teams will be offered positions with Banesco USA.
The transaction is expected to close in the fourth quarter of 2025.