BayFirst Reports Q3 Loss and Withdraws from SBA Lending Following Restructuring
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Nov 05 2025
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Should l Buy BAFN?
Source: NASDAQ.COM
Earnings Decline: BayFirst Financial Corp. reported a significant net loss of $4.66 per share for Q3 2025, a stark contrast to a net income of 18 cents per share in the same quarter last year, primarily due to higher credit loss provisions and one-time charges related to exiting its SBA 7(a) lending operations.
Strategic Shift: The company is undergoing a strategic transformation, focusing on community banking and consumer mortgage lending in the Tampa Bay region, while exiting the SBA lending business, which has led to a restructuring charge of $7.3 million.
Financial Metrics: Despite a 19.4% year-over-year increase in total revenues to $11.3 million, noninterest income turned negative, and asset quality metrics worsened, with nonperforming assets rising to 1.97% of total assets.
Future Outlook: Management aims to return to profitability by 2026, targeting a return on assets of 40-70 basis points, while also addressing regulatory issues and reducing workforce numbers as part of their restructuring efforts.
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About BAFN
BayFirst Financial Corp. is a bank holding company that operates through its wholly owned subsidiary, BayFirst National Bank (the Bank). The Bank operates about 12 full-service banking offices throughout the Tampa Bay region and offers a range of commercial and consumer banking services to businesses and individuals. The Bank offers its products and services through its Community Banking Division and its government guaranteed lending division. The Bank also has an advanced technology platform for its small business administration (SBA) 7(a) Small Loan Program that enables the Bank to utilize and support technology-enabled banking products and services as well as various financial technology applications. The Bank offers specialized business and personal checking accounts, internet banking and online bill payment, lock box services, remote capture and deposit, cash management, wire transfers, safety deposit boxes, courier services, retail investment services, among other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BayFirst Financial Corp. Q4 2025 Earnings Call Insights
- Strategic Transition Completed: BayFirst Financial Corp. successfully exited the SBA 7(a) lending business in Q4 2025, executing several strategic initiatives that significantly reduced risk and improved operational efficiency, thereby laying a foundation for sustainable growth.
- Significant Deposit Growth: The company achieved a deposit increase of $12.5 million in Q4, with 85% of deposits insured, demonstrating strong performance in its community banking operations and expected to enhance market competitiveness further.
- Improved Financial Performance: Although reporting a net loss of $2.5 million in Q4, this marked a substantial narrowing from the $18.9 million loss in Q3, indicating positive progress in cost control and risk management efforts.
- Optimistic Future Outlook: Management reiterated that the 2026 strategic plan will focus on strengthening the balance sheet and maintaining a culture of disciplined risk management, with expectations for ongoing improvements in asset quality as the SBA portfolio winds down.
See More
Bayfirst Financial Reports Q4 Earnings Highlights
- Earnings Performance: Bayfirst Financial reported a GAAP EPS of $0.69 for Q4 2025, demonstrating stable profitability despite challenges from asset reductions, indicating resilience in its financial performance.
- Revenue Overview: The company generated $11.05 million in revenue during Q4, maintaining a relatively stable income level despite total asset declines, reflecting the robustness of its business operations.
- Asset Changes: Total assets decreased by $45.7 million, or 3.4%, in Q4 2025, primarily due to the sale of $96.6 million in SBA 7(a) loans to Banesco USA, highlighting strategic adjustments in asset management.
- Cash Flow Status: While loans held for investment decreased by $34.8 million, cash and cash equivalents increased by $88.4 million, indicating effective liquidity management that supports future investment and operational flexibility.
See More
BayFirst Financial Corp Reports Q4 2025 Loss Amid Restructuring Efforts
- Net Loss Overview: BayFirst Financial Corp reported a net loss of $2.5 million for Q4 2025, translating to a loss of $0.69 per share, which is a significant improvement from the $18.9 million loss in Q3 2025, indicating progress in the company's restructuring efforts.
- Loan Portfolio Optimization: The company successfully sold $96.6 million in loans to Banesco USA in Q4 2025, marking a critical milestone in its strategic plan to derisk its loan portfolio, reflecting ongoing efforts in asset quality management.
- Deposit Growth: BayFirst saw a $12.5 million increase in deposits during Q4 2025, a 1.1% rise, primarily driven by increases in interest-bearing transaction accounts and time deposits, indicating enhanced customer trust in the bank's services.
- Capital Adequacy Improvement: As of December 31, 2025, BayFirst's capital ratios improved despite a reduction in headcount from 299 to 144, demonstrating effective cost management and capital allocation strategies.
See More
BayFirst Financial Corp. Schedules Q4 Earnings Release and Conference Call
- Earnings Release Schedule: BayFirst Financial Corp. will report its fourth-quarter results after market close on January 29, 2026, providing critical financial data for investor analysis.
- Conference Call Timing: Management will host a conference call on January 30, 2026, at 9:00 a.m. ET to discuss the earnings results in detail, enhancing transparency and attracting investor interest.
- Investor Participation Method: Investment professionals can dial (800) 549-8228 to participate in the call using Conference ID 15602, ensuring broad investor engagement and feedback.
- Replay Availability: A replay of the call will be available on the company’s website for one year, facilitating information access for investors who could not attend live, thereby improving communication efficiency between the company and its investors.
See More
BayFirst Closes $94.6 Million Loan Sale to Banesco USA, Enhancing Capital Ratios
- Successful Loan Sale: BayFirst Financial Corp. has closed the sale of $94.6 million in loans to Banesco USA, aimed at derisking its SBA 7(a) loan portfolio, thereby enhancing the company's long-term growth potential and shareholder value.
- Improved Capital Ratios: Following the loan sale, the Bank's total capital ratio rises to 10.1% and the tier 1 leverage ratio to 6.8%, which will bolster its financial stability and support future expansion efforts.
- Strategic Exit: BayFirst exited the SBA 7(a) lending business early in Q4, with Banesco USA assuming servicing of these loans, allowing BayFirst to focus on its community banking mission and strengthen its competitive position.
- Future Growth Opportunities: An additional $4.5 million in loan balances is expected to be sold before year-end, continuing to drive deposit growth and fee income sources, thereby reinforcing its market presence in the Tampa Bay region.
See More
BayFirst Closes $94.6 Million Loan Sale to Banesco USA, Enhancing Capital Ratios
- Successful Loan Sale: BayFirst Financial Corp. has successfully closed the sale of $94.6 million in loans to Banesco USA, aimed at derisking its SBA 7(a) loan portfolio and positioning the company for long-term growth.
- Improved Capital Ratios: Following the loan sale, the Bank's total capital ratio improves to 10.1% and the tier 1 leverage ratio rises to 6.8%, enhancing the company's financial stability.
- Strategic Focus: BayFirst exited the SBA 7(a) lending business early in Q4, with Banesco USA assuming servicing of these loans, further optimizing the company's business structure.
- Community Bank Mission: The company continues to focus on providing stable deposit products for individuals and small businesses, strengthening its market presence in the Tampa Bay region and creating opportunities to expand its community bank portfolio.
See More
BayFirst Financial Corp. Q4 2025 Earnings Call Insights
- Strategic Transition Completed: BayFirst Financial Corp. successfully exited the SBA 7(a) lending business in Q4 2025, executing several strategic initiatives that significantly reduced risk and improved operational efficiency, thereby laying a foundation for sustainable growth.
- Significant Deposit Growth: The company achieved a deposit increase of $12.5 million in Q4, with 85% of deposits insured, demonstrating strong performance in its community banking operations and expected to enhance market competitiveness further.
- Improved Financial Performance: Although reporting a net loss of $2.5 million in Q4, this marked a substantial narrowing from the $18.9 million loss in Q3, indicating positive progress in cost control and risk management efforts.
- Optimistic Future Outlook: Management reiterated that the 2026 strategic plan will focus on strengthening the balance sheet and maintaining a culture of disciplined risk management, with expectations for ongoing improvements in asset quality as the SBA portfolio winds down.
See More
Bayfirst Financial Reports Q4 Earnings Highlights
- Earnings Performance: Bayfirst Financial reported a GAAP EPS of $0.69 for Q4 2025, demonstrating stable profitability despite challenges from asset reductions, indicating resilience in its financial performance.
- Revenue Overview: The company generated $11.05 million in revenue during Q4, maintaining a relatively stable income level despite total asset declines, reflecting the robustness of its business operations.
- Asset Changes: Total assets decreased by $45.7 million, or 3.4%, in Q4 2025, primarily due to the sale of $96.6 million in SBA 7(a) loans to Banesco USA, highlighting strategic adjustments in asset management.
- Cash Flow Status: While loans held for investment decreased by $34.8 million, cash and cash equivalents increased by $88.4 million, indicating effective liquidity management that supports future investment and operational flexibility.
See More
BayFirst Financial Corp Reports Q4 2025 Loss Amid Restructuring Efforts
- Net Loss Overview: BayFirst Financial Corp reported a net loss of $2.5 million for Q4 2025, translating to a loss of $0.69 per share, which is a significant improvement from the $18.9 million loss in Q3 2025, indicating progress in the company's restructuring efforts.
- Loan Portfolio Optimization: The company successfully sold $96.6 million in loans to Banesco USA in Q4 2025, marking a critical milestone in its strategic plan to derisk its loan portfolio, reflecting ongoing efforts in asset quality management.
- Deposit Growth: BayFirst saw a $12.5 million increase in deposits during Q4 2025, a 1.1% rise, primarily driven by increases in interest-bearing transaction accounts and time deposits, indicating enhanced customer trust in the bank's services.
- Capital Adequacy Improvement: As of December 31, 2025, BayFirst's capital ratios improved despite a reduction in headcount from 299 to 144, demonstrating effective cost management and capital allocation strategies.
See More
BayFirst Financial Corp. Schedules Q4 Earnings Release and Conference Call
- Earnings Release Schedule: BayFirst Financial Corp. will report its fourth-quarter results after market close on January 29, 2026, providing critical financial data for investor analysis.
- Conference Call Timing: Management will host a conference call on January 30, 2026, at 9:00 a.m. ET to discuss the earnings results in detail, enhancing transparency and attracting investor interest.
- Investor Participation Method: Investment professionals can dial (800) 549-8228 to participate in the call using Conference ID 15602, ensuring broad investor engagement and feedback.
- Replay Availability: A replay of the call will be available on the company’s website for one year, facilitating information access for investors who could not attend live, thereby improving communication efficiency between the company and its investors.
See More
BayFirst Closes $94.6 Million Loan Sale to Banesco USA, Enhancing Capital Ratios
- Successful Loan Sale: BayFirst Financial Corp. has closed the sale of $94.6 million in loans to Banesco USA, aimed at derisking its SBA 7(a) loan portfolio, thereby enhancing the company's long-term growth potential and shareholder value.
- Improved Capital Ratios: Following the loan sale, the Bank's total capital ratio rises to 10.1% and the tier 1 leverage ratio to 6.8%, which will bolster its financial stability and support future expansion efforts.
- Strategic Exit: BayFirst exited the SBA 7(a) lending business early in Q4, with Banesco USA assuming servicing of these loans, allowing BayFirst to focus on its community banking mission and strengthen its competitive position.
- Future Growth Opportunities: An additional $4.5 million in loan balances is expected to be sold before year-end, continuing to drive deposit growth and fee income sources, thereby reinforcing its market presence in the Tampa Bay region.
See More
BayFirst Closes $94.6 Million Loan Sale to Banesco USA, Enhancing Capital Ratios
- Successful Loan Sale: BayFirst Financial Corp. has successfully closed the sale of $94.6 million in loans to Banesco USA, aimed at derisking its SBA 7(a) loan portfolio and positioning the company for long-term growth.
- Improved Capital Ratios: Following the loan sale, the Bank's total capital ratio improves to 10.1% and the tier 1 leverage ratio rises to 6.8%, enhancing the company's financial stability.
- Strategic Focus: BayFirst exited the SBA 7(a) lending business early in Q4, with Banesco USA assuming servicing of these loans, further optimizing the company's business structure.
- Community Bank Mission: The company continues to focus on providing stable deposit products for individuals and small businesses, strengthening its market presence in the Tampa Bay region and creating opportunities to expand its community bank portfolio.
See More
