BayFirst Financial (BAFN) Q4 2025 earnings summary

Executive summary

• Completed exit from SBA 7(a) lending, selling $96.6–$97 million in loan balances, reducing headcount from 299 to 144, and refocusing on community banking in Tampa Bay and Sarasota.

• Ranked third in deposits among banks with assets under $10B in the Tampa Bay-Sarasota region, with $1.3 billion in assets and $1.18 billion in deposits at year-end 2025.

• Treasury management revenue grew 69% year-over-year in Q4 2025, with checking accounts up 6% year-to-date.

• Achieved organic deposit growth of $12.5 million in Q4, with 85% of deposits insured.

• Loan portfolio is well-diversified, with a significant reduction in total loans due to SBA 7(a) exit.

Financial highlights

• Reported a Q4 2025 net loss of $2.5 million, a significant improvement from Q3's $18.9–$19.3 million loss, and down from Q4 2024 net income.

• Net interest margin was 3.58% in Q4 2025, down 3 bps sequentially, with net interest income at $11.2 million.

• Noninterest income was negative $104,000 to $0.1 million, a sequential improvement but down from $22.3 million in Q4 2024 due to lower loan sale gains.

• Noninterest expense was $11.9 million, down from $25.2 million in Q3 2025, mainly due to lower compensation and restructuring charges.

• Tangible book value per share declined to $17.22 at year-end 2025 from $22.95 at year-end 2024.

Outlook and guidance

• Ongoing wind-down of the SBA 7(a) portfolio and potential further sales of unguaranteed balances expected to improve asset quality and reduce risk.

• Focus on expanding treasury management, reducing high-cost deposits, and aligning cost of funds with peers to enhance profitability.

• Strategic plan for 2026 centers on fortifying the balance sheet, disciplined risk management, and organic growth.

• Cautionary statements highlight ongoing risks from economic, regulatory, and market conditions.