ST. PETERSBURG, Fla., Oct. 30, 2025 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. $(BAFN)$ ("BayFirst" or "Company"), parent company of BayFirst National Bank ("Bank") today reported a net loss of $18.9 million, or $4.66 per common share and diluted common share, for the third quarter of 2025, compared to a net loss of $1.2 million, or $0.39 per common share and diluted common share, in the second quarter of 2025. The current quarter's net loss was driven by higher provision expense and $12.4 million in one-time charges, including a restructuring charge of $7.3 million, as a result of the exit from the SBA 7(a) lending business and the definitive agreement to sell SBA 7(a) loans to Banesco USA.
"Our third quarter results reflect a period of significant strategic transformation for the Company," stated Thomas G. Zernick, Chief Executive Officer. "The quarter included significant one-time items related to our restructuring efforts, all of which represent decisive steps toward a stronger future.
"As we announced earlier this year, Management and the Board initiated a comprehensive strategic review aimed at derisking our balance sheet and positioning the Company for long-term growth and enhanced shareholder value. During the third quarter, we made meaningful progress on this initiative. In September, we announced the signing of a definitive agreement to sell a portion of the Bank's SBA 7(a) loan portfolio to Banesco USA for 97% of the retained loans' balances or a net loss of $5.1 million. In conjunction with this transaction, we will be exiting the SBA 7(a) lending business entirely. We are on track to close this transaction during the fourth quarter, contingent on the federal government reopening to complete the necessary approvals. While this represents a significant shift in our business model, we believe it is the right decision to reduce risk, strengthen our balance sheet, and better focus our resources on our core strategic priorities.
"We anticipate agreeing to additional actions with the OCC during the fourth quarter, focused on credit administration, strategic planning, and capital preservation. We take our regulatory obligations very seriously and are fully committed to meeting the highest operational standards," Zernick continued. "Management has already taken significant steps to address credit quality issues, and we are dedicating substantial resources to strengthen our credit administration. This is our top priority and our team is committed to addressing the concerns outlined as quickly as possible. With the support of our Board of Directors, we have full confidence in our team to ensure these matters are resolved promptly, positioning BayFirst for improved operating results.
"Our focus remains firmly on what matters most: being the premier community bank in Tampa Bay. That means building real relationships with local individuals, families, and small businesses through reliable checking and savings accounts. These connections give us a solid, stable funding foundation while strengthening our footprint throughout Tampa Bay's dynamic market. In fact, more than 84% of our deposits are insured. This relationship-driven strategy positions us to deliver sustainable growth while maintaining the disciplined risk management and operational efficiency central to our long-term value creation.
"Though profitability has not met expectations, we are building a stronger, more resilient organization. Once restructuring is complete, we expect to return to profitability with a goal of positive return on assets of 40-70 basis points in 2026, with continued improvement in later years. Additionally, we will continue resolving problem loans and improving credit quality. With strong market opportunities and operational capabilities, we remain focused on executing our strategy and delivering long-term shareholder value," Zernick concluded.
Third Quarter 2025 Performance Review
-- Net interest margin was 3.61% in the third quarter of 2025, a decrease of
45 basis points from 4.06% in the second quarter of 2025 and an increase
of 27 basis points from 3.34% in the third quarter of 2024. There was an
adjustment of $0.6 million which was the result of a one-time reversal of
accrued interest on loans that moved to nonaccrual status combined with
the recognition of unamortized premiums of $0.4 million on a single USDA
loan which was liquidated during the quarter.
-- The Company's government guaranteed loan team originated $47.0 million in
new loans during the third quarter of 2025, a decrease from $106.4
million of loans produced in the previous quarter, and a decrease from
$94.4 million of loans produced during the third quarter of 2024. In
August 2025, the Company discontinued its Bolt loan program, an SBA 7(a)
loan designed to provide small balance loans to small businesses,
typically used for working capital. The discontinuance of the Bolt
program contributed to the decrease in loan originations. Additionally,
on September 29, 2025, the Company announced its plan to exit the SBA
7(a) lending business altogether and its intent to sell a portion of the
SBA 7(a) loan portfolio.
-- Loans held for investment decreased by $127.1 million, or 11.3%, during
the third quarter of 2025 to $998.7 million and decreased $43.8 million,
or 4.2%, over the past year. The decrease was primarily the result of the
reclassification of $97.0 million of loans to held for sale, which was
subsequently marked to the lower of cost or market. Additionally, during
the quarter, the Company originated $75.0 million of loans and sold $51.9
million of government guaranteed loan balances.
-- Deposits increased $7.7 million, or 0.7%, during the third quarter of
2025 and increased $59.3 million, or 5.3%, over the past year to $1.17
billion. The increase in deposits during the quarter was primarily due to
increases in time deposit balances, partially offset by decreases in
noninterest-bearing account balances, interest-bearing transaction
account balances, and savings and money market account balances.
-- Book value and tangible book value at September 30, 2025 were $17.90 per
common share, a decrease from $22.30 at June 30, 2025.
Results of Operations
Net Income (Loss)
The Company had a net loss of $18.9 million for the third quarter of 2025, compared to a net loss of $1.2 million in the second quarter of 2025 and net income of $1.1 million in the third quarter of 2024. The change in the third quarter of 2025 from the preceding quarter was primarily the result of a decrease in net interest income of $1.1 million, an increase in provision for credit losses of $3.7 million, a decrease in noninterest income of $11.8 million, and an increase in noninterest expense of $7.7 million. This was partially offset by an increase in income tax benefit of $6.6 million. The change from the third quarter of 2024 was due to an increase in provision for credit losses of $7.8 million, a decrease in noninterest income of $13.3 million, and an increase in noninterest expense of $8.2 million, partially offset by an increase in net interest income of $1.8 million and a decrease in income tax expenses of $7.4 million.
In the first nine months of 2025, the Company had a net loss of $20.5 million, a decrease from net income of $2.8 million for the first nine months of 2024. The decrease was primarily due to an increase in provision for credit losses of $12.4 million, a decrease in noninterest income of $19.7 million, and an increase in noninterest expense of $7.1 million. This was partially offset by an increase in net interest income of $7.3 million and a decrease in income tax expense of $8.6 million.
Net Interest Income and Net Interest Margin
Net interest income from continuing operations was $11.3 million in the third quarter of 2025, a decrease from $12.3 million during the second quarter of 2025, and an increase from $9.4 million during the third quarter of 2024. The net interest margin was 3.61% in the third quarter of 2025, a decrease of 45 basis points from 4.06% in the second quarter of 2025 and an increase of 27 basis points from 3.34% in the third quarter of 2024.
The decrease in net interest income from continuing operations during the third quarter of 2025, as compared to the second quarter of 2025, was mainly due to a decrease in loan interest income, including fees, of
$0.6 million which was the result of a one-time reversal of accrued interest on loans that moved to nonaccrual status combined with the recognition of unamortized premium on a single USDA loan which was liquidated during the quarter.
The increase in net interest income from continuing operations during the third quarter of 2025, as compared to the year ago quarter, was mainly due to a decrease in interest expense on deposits of $2.0 million.
Net interest income from continuing operations was $34.6 million in the first nine months of 2025, an increase from $27.4 million in the first nine months of 2024. The increase was mainly due to an increase in loan interest income, including fees, of $3.8 million and a decrease in interest expense of $3.5 million.
Noninterest Income
Noninterest income from continuing operations was a negative $1.0 million for the third quarter of 2025, which was a decrease from $10.8 million in the second quarter of 2025 and a decrease from $12.3 million in the third quarter of 2024. The decrease in the third quarter of 2025, as compared to the second quarter of 2025, was primarily the result of a decrease in gain on sale of government guaranteed loans of $3.1 million, a decrease in government guaranteed loan fair value gains of $3.3 million, and the unfavorable fair value adjustment on held for sale loans of $5.1 million. The unfavorable fair value adjustment on held for sale loans was the result of the expected sale of a portion of the SBA 7(a) loan portfolio. The decrease in the third quarter of 2025, as compared to the third quarter of 2024, was the result of a decrease in gain on sale of government guaranteed loans of $3.1 million, a decrease in fair value gains on government guaranteed loans of $4.3 million, the unfavorable fair value adjustment on held for sale loans of $5.1 million, and a decrease in government guaranteed loan packaging fees of $0.5 million.
Noninterest income from continuing operations was $18.5 million for the first nine months of 2025, which was a decrease from $38.2 million for the first nine months of 2024. The decrease was primarily the result of a decrease in gain on sale of government guaranteed loans of $3.3 million, a decrease in government guaranteed loan fair value gains of $9.1 million, the unfavorable fair value adjustment on held for sale loans of $5.1 million, and a decrease in government guaranteed loan packaging fees of $1.7 million.
Noninterest Expense
Noninterest expense from continuing operations was $25.2 million in the third quarter of 2025 compared to $17.5 million in the second quarter of 2025 and $17.1 million in the third quarter of 2024. The increase in the third quarter of 2025, as compared to the prior quarter, was primarily due to the restructure charges of $7.3 million related to the comprehensive strategic review aimed at reducing expenses and derisking the bank's balance sheet which included the exit of the SBA 7(a) business. The increase in the third quarter of 2025, as compared to the third quarter of 2024, was primarily due to the restructure charges of $7.3 million and higher loan origination and collection expenses of $1.3 million.
Noninterest expense from continuing operations was $58.6 million for the first nine months of 2025 compared to $51.4 million for the first nine months of 2024. The increase was primarily the result of the restructure charges of $7.3 million.
Balance Sheet
Assets
Total assets increased $2.1 million, or 0.2%, during the third quarter of 2025 to $1.35 billion, mainly due to an increase in cash and cash equivalents of $41.3 million, partially offset by decreases in total loans (held for investment and held for sale) of $33.1 million and an increase in allowance for credit losses on loans of $7.4 million. Compared to the end of the third quarter last year, total assets increased $100.9 million, or 8.1%, driven primarily by growth in loans (held for investment and held for sale) of $49.7 million and cash and cash equivalents of $54.2 million.
Loans
Loans held for investment decreased $127.1 million, or 11.3%, during the third quarter of 2025 and $43.8 million, or 4.2%, over the past year to $998.7 million, primarily due to the transfer of $97.0 million of loans to held for sale, which was subsequently marked to the lower of cost or market, as well as government guaranteed loan sales, partially offset by originations in both conventional community bank loans and government guaranteed loans.
Deposits
Deposits increased $7.7 million, or 0.7%, during the third quarter of 2025 and increased $59.3 million, or 5.3%, from the third quarter of 2024, ending September 30, 2025, at $1.17 billion. During the third quarter, there was an increase in time deposit balances of $53.0 million, partially offset by decreases in noninterest-bearing account balances of $3.8 million, interest-bearing transaction account balances of $27.9 million, and savings and money market account balances of $13.7 million. At September 30, 2025, approximately 84% of total deposits were insured by the FDIC. At times, the Bank has brokered time deposit and non-maturity deposit relationships available to diversify its funding sources. At September 30, 2025, June 30, 2025, and September 30, 2024, the Company had $235.9 million, $186.7 million, and $76.9 million, respectively, of brokered deposits.
Asset Quality
The Company recorded a provision for credit losses in the third quarter of $10.9 million, compared to provisions of $7.3 million for the second quarter of 2025 and $3.1 million during the third quarter of 2024.
The ratio of allowance for credit losses on loans (ACL) to total loans held for investment at amortized cost was 2.61% at September 30, 2025, 1.65% as of June 30, 2025, and 1.48% as of September 30, 2024. The ratio of ACL to total loans held for investment at amortized cost, excluding government guaranteed loan balances, was 2.78% at September 30, 2025, 1.85% as of June 30, 2025, and 1.70% as of September 30, 2024. The increase in the ACL was the result of increases in nonperforming loans and continued economic uncertainty.
Net charge-offs for the third quarter of 2025 were $3.3 million, which was a decrease from $6.8 million for the second quarter of 2025 and an increase from $2.8 million for the third quarter of 2024. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 1.24% for the third quarter of 2025, compared to 2.60% in the second quarter of 2025 and 1.16% in the third quarter of 2024. Nonperforming assets were 1.97% of total assets as of September 30, 2025, compared to 1.79% as of June 30, 2025, and 1.38% as of September 30, 2024. Nonperforming assets, excluding government guaranteed loan balances, were 1.21% of total assets as of September 30, 2025, compared to 1.12% as of June 30, 2025, and 0.88% as of September 30, 2024.
Capital
The Bank's Tier 1 leverage ratio was 6.64% as of September 30, 2025, compared to 8.11% as of June 30, 2025, and 8.41% as of September 30, 2024. The CET 1 and Tier 1 capital ratios to risk-weighted assets were 8.44% as of September 30, 2025, compared to 9.98% as of June 30, 2025, and 10.14% as of September 30, 2024. The total capital to risk-weighted assets ratio was 9.71% as of September 30, 2025, compared to 11.23% as of June 30, 2025, and 11.39% as of September 30, 2024.
The Bank's overall liquidity position remains strong and stable with liquidity in excess of internal minimums as stated by policy and monitored by management and the Board. The on-balance sheet liquidity ratio at September 30, 2025 was 11.31%, as compared to 9.17% at December 31, 2024. The Bank has liquidity resources which include secured borrowings available from the Federal Home Loan Bank, the Federal Reserve, and lines of credit with other financial institutions. As of September 30, 2025, the Bank had $50.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions. This compared to $40.0 million of borrowings from the FHLB and no borrowings from the FRB or other financial institutions at June 30, 2025.
Recent Events
Exit from SBA 7(a) Business. BayFirst signed a definitive agreement to sell a portion of the SBA 7(a) loan portfolio to Banesco USA. In conjunction with this agreement, BayFirst will exit the SBA 7(a) lending business, and the majority of the SBA lending staff and support teams will be offered positions with Banesco USA. The transaction is expected to close in the fourth quarter of this year.
Share Repurchase Program. During the first quarter of 2025, the Company announced that its Board of Directors has adopted a share repurchase program. Under the repurchase program, the Company may repurchase up to $2.0 million of the Company's outstanding shares, over a period beginning on January 28, 2025, and continuing until the earlier of the completion of the repurchase, or December 31, 2025, or termination of the program by the Board of Directors. On October 28, 2025, the Company's Board of Directors terminated the stock repurchase program effective immediately.
Conference Call
BayFirst will host a conference call on Friday, October 31, 2025, at 9:00 a.m. ET to discuss its third quarter results. Interested parties may listen to the call live under the Investor Relations tab at www.bayfirstfinancial.com or are invited to dial (800) 549-8228 to participate in the call using Conference ID 85147. A replay of the call will be available for one year at www.bayfirstfinancial.com.
About BayFirst Financial Corp.
BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida which commenced operations on September 1, 2000. Its primary source of income is derived from its wholly owned subsidiary, BayFirst National Bank, a national banking association which commenced business operations on February 12, 1999. The Bank currently operates twelve full-service banking offices throughout the Tampa Bay-Sarasota region and offers a broad range of commercial and consumer banking services to businesses and individuals. As of September 30, 2025, BayFirst Financial Corp. had $1.35 billion in total assets.
Forward-Looking Statements
In addition to the historical information contained herein, this presentation includes "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. These statements are subject to many risks and uncertainties, including, but not limited to, the effects of health crises, global military hostilities, weather events, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; enforcement actions initiated by our regulators and their impact on our operations; and other risks detailed from time to time in filings made by the Company with the SEC, including, but not limited to those "Risk Factors" described in our most recent Form 10-K and Form 10-Q. Readers should note that the forward-looking statements included herein are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements.
Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this document, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
BAYFIRST FINANCIAL CORP.
SELECTED FINANCIAL DATA (Unaudited)
At or for the three months ended
------------------------------------------------------------------------------
(Dollars in thousands,
except for share data) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024
-------------- -------------- -------------- -------------- --------------
Net income (loss) $ (18,902) $ (1,237) $ (335) $ 9,776 $ 1,137
Balance sheet data:
Average loans held for
investment at
amortized cost 1,060,520 1,047,568 1,027,648 1,003,867 948,528
Average total assets 1,345,553 1,324,455 1,287,618 1,273,296 1,228,040
Average common
shareholders' equity 92,734 95,049 96,053 87,961 86,381
Government guaranteed
loans held for sale 94,052 -- -- -- 595
Total loans held for
investment 998,683 1,125,799 1,084,817 1,066,559 1,042,445
Total loans held for
investment, excl gov't
gtd loan balances 923,390 972,942 943,979 917,075 885,444
Allowance for credit
losses 24,485 17,041 16,513 15,512 14,186
Total assets 1,345,978 1,343,867 1,291,957 1,288,297 1,245,099
Total deposits 1,171,457 1,163,796 1,128,267 1,143,229 1,112,196
Common shareholders'
equity 73,677 92,172 94,034 94,869 86,242
Share data:
Basic earnings (loss)
per common share $ (4.66) $ (0.39) $ (0.17) $ 2.27 $ 0.18
Diluted earnings (loss)
per common share (4.66) (0.39) (0.17) 2.11 0.18
Dividends per common
share -- 0.08 0.08 0.08 0.08
Book value per common
share 17.90 22.30 22.77 22.95 20.86
Tangible book value per
common share(1) 17.90 22.30 22.77 22.95 20.86
Performance ratios:
Return on average
assets(2) (5.62)% (0.37)% (0.10)% 3.07% 0.37%
Return on average
common equity(2) (83.19)% (6.83)% (3.00)% 42.71% 3.48%
Net interest margin(2) 3.61% 4.06% 3.77% 3.60% 3.34%
Asset quality ratios:
Net charge-offs $ 3,294 $ 6,799 $ 3,301 $ 3,369 $ 2,757
Net charge-offs/avg
loans held for
investment at
amortized cost(2) 1.24% 2.60% 1.28% 1.34% 1.16%
Nonperforming loans(3) $ 24,687 $ 21,665 $ 24,806 $ 17,607 $ 15,489
Nonperforming loans
(excluding gov't gtd
balance)(3) $ 15,822 $ 14,187 $ 15,078 $ 13,570 $ 10,992
Nonperforming
loans/total loans held
for investment(3) 2.63% 2.09% 2.42% 1.75% 1.62%
Nonperforming loans
(excl gov't gtd
balance)/total loans
held for
investment(3) 1.69% 1.37% 1.47% 1.35% 1.15%
ACL/Total loans held
for investment at
amortized cost 2.61% 1.65% 1.61% 1.54% 1.48%
ACL/Total loans held
for investment at
amortized cost, excl
government guaranteed
loans 2.78% 1.85% 1.84% 1.79% 1.70%
Other Data:
Full-time equivalent
employees 237 300 305 299 295
Banking center offices 12 12 12 12 12
(1) See section entitled "GAAP Reconciliation and
Management Explanation of Non-GAAP Financial Measures"
below for a reconciliation to most comparable GAAP
equivalent.
(2) Annualized
(3) Excludes loans measured at fair value
Reconciliation and Management Explanation of Non-GAAP Financial Measures
Some of the financial measures included in this report are not measures of financial condition or performance recognized by GAAP. These non-GAAP financial measures include tangible common shareholders' equity and tangible book value per common share. Our management uses these non-GAAP financial measures in its analysis of our performance, and we believe that providing this information to financial analysts and investors allows them to evaluate capital adequacy.
The following presents the calculation of the non-GAAP financial measures.
Tangible Common Shareholders' Equity and Tangible
Book Value Per Common Share (Unaudited)
------------------------------------------------------------------------------------------
As of
(Dollars in thousands, September June 30, March 31, December September 30,
except for share data) 30, 2025 2025 2025 31, 2024 2024
----------- ----------- ----------- ----------- -------------
Total shareholders'
equity $ 89,728 $ 108,223 $ 110,085 $ 110,920 $ 102,293
Less: Preferred stock
liquidation
preference (16,051) (16,051) (16,051) (16,051) (16,051)
--------- --------- --------- --------- ---------
Total equity available
to common
shareholders 73,677 92,172 94,034 94,869 86,242
Less: Goodwill -- -- -- -- --
--------- --------- --------- --------- ---------
Tangible common
shareholders' equity $ 73,677 $ 92,172 $ 94,034 $ 94,869 $ 86,242
========= ========= ========= ========= =========
Common shares
outstanding 4,116,913 4,134,127 4,129,027 4,132,986 4,134,059
Tangible book value per
common share $ 17.90 $ 22.30 $ 22.77 $ 22.95 $ 20.86
BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands) 9/30/2025 6/30/2025 9/30/2024
----------- ----------- -------------
Assets
Cash and due from banks $ 5,193 $ 6,142 $ 4,708
Interest-bearing
deposits in banks 113,357 71,157 59,675
--------- --------- ---------
Cash and cash
equivalents 118,550 77,299 64,383
Time deposits in banks 1,284 1,280 2,264
Investment securities
available for sale, at
fair value (amortized
cost $32,614, $33,410,
and $41,104 at
September 30, 2025,
June 30, 2025, and
September 30, 2024,
respectively) 29,857 30,256 37,984
Investment securities
held to maturity, at
amortized cost, net of
allowance for credit
losses of $9, $9, and
$13 (fair value:
$2,375, $2,369, and
$2,321 at September 30,
2025, June 30, 2025,
and September 30, 2024,
respectively) 2,491 2,491 2,487
Nonmarketable equity
securities 7,028 6,551 4,997
Government guaranteed
loans held for sale 94,052 -- 595
Government guaranteed
loans held for
investment, at fair
value 61,780 90,687 86,441
Loans held for
investment, at
amortized cost 936,903 1,035,112 956,004
Allowance for credit
losses on loans (24,485) (17,041) (14,186)
--------- --------- ---------
Net Loans held for
investment, at
amortized cost 912,418 1,018,071 941,818
Accrued interest
receivable 8,898 9,495 8,537
Premises and equipment,
net 31,695 32,407 38,736
Loan servicing rights 15,663 16,074 15,966
Deferred income tax
assets 5,839 -- --
Right-of-use operating
lease assets 14,833 15,160 2,018
Bank owned life
insurance 27,071 26,881 26,330
Other real estate owned 400 400 --
Other assets 14,119 16,815 12,543
Total assets $1,345,978 $1,343,867 $1,245,099
========= ========= =========
Liabilities:
Noninterest-bearing
deposit accounts $ 105,937 $ 109,698 $ 95,995
Interest-bearing
transaction accounts 210,336 238,215 247,923
Savings and money market
deposit accounts 479,262 493,005 455,297
Time deposits 375,922 322,878 312,981
--------- --------- ---------
Total deposits 1,171,457 1,163,796 1,112,196
FHLB borrowings 50,000 40,000 10,000
Subordinated debentures 5,961 5,959 5,954
Notes payable 1,593 1,707 2,048
Accrued interest payable 1,082 1,148 1,114
Operating lease
liabilities 13,554 13,819 2,271
Deferred income tax
liabilities -- 895 1,488
Accrued expenses and
other liabilities 12,603 8,320 7,735
Total liabilities 1,256,250 1,235,644 1,142,806
--------- --------- ---------
Shareholders' equity:
Preferred stock, Series
A; no par value, 10,000
shares authorized,
6,395 shares issued and
outstanding at
September 30, 2025,
June 30, 2025, and
September 30, 2024;
aggregate liquidation
preference of $6,395
each period 6,161 6,161 6,161
Preferred stock, Series
B; no par value, 20,000
shares authorized,
3,210 shares issued and
outstanding at
September 30, 2025,
June 30, 2025, and
September 30, 2024;
aggregate liquidation
preference of $3,210
each period 3,123 3,123 3,123
Preferred stock, Series
C; no par value, 10,000
shares authorized,
6,446 shares issued and
outstanding at
September 30, 2025,
June 30, 2025, and
September 30, 2024;
aggregate liquidation
preference of $6,446 at
September 30, 2025,
June 30, 2025, and
September 30, 2024 6,446 6,446 6,446
Common stock and
additional paid-in
capital; no par value,
15,000,000 shares
authorized, 4,116,913,
4,134,127, and
4,134,059 shares issued
and outstanding at
September 30, 2025,
June 30, 2025, and
September 30, 2024,
respectively 54,764 54,739 54,780
Accumulated other
comprehensive loss,
net (2,069) (2,368) (2,312)
Unearned compensation (538) (1,006) (978)
Retained earnings 21,841 41,128 35,073
--------- --------- ---------
Total shareholders'
equity 89,728 108,223 102,293
--------- --------- ---------
Total liabilities and
shareholders' equity $1,345,978 $1,343,867 $1,245,099
========= ========= =========
BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the Quarter Ended Year-to-Date
(Dollars in thousands,
except per share data) 9/30/2025 6/30/2025 9/30/2024 9/30/2025 9/30/2024
--------- ----------- ----------- --------- -------------
Interest income:
Loans, including
fees $ 20,708 $ 21,459 $ 20,442 $ 61,918 $ 58,084
Interest-bearing
deposits in banks
and other 946 1,046 1,000 2,926 2,972
------- ------ ------- ------- ------
Total interest income 21,654 22,505 21,442 64,844 61,056
Interest expense:
Deposits 9,576 9,282 11,609 28,289 32,272
Other 798 875 384 1,928 1,411
------- ------ ------- ------- ------
Total interest
expense 10,374 10,157 11,993 30,217 33,683
------- ------ ------- ------- ------
Net interest income 11,280 12,348 9,449 34,627 27,373
Provision for credit
losses 10,915 7,264 3,122 22,579 10,180
------- ------ ------- ------- ------
Net interest income
after provision for
credit losses 365 5,084 6,327 12,048 17,193
------- ------ ------- ------- ------
Noninterest income:
Loan servicing
income, net 761 484 918 1,981 2,518
Gain on sale of
government
guaranteed loans,
net 3,063 6,136 6,143 16,526 19,827
Service charges and
fees 474 473 447 1,396 1,343
Government
guaranteed loans
fair value gain
(loss), net (882) 2,442 3,416 805 9,923
Fair value
adjustment on
loans held for
sale (5,096) -- -- (5,096) --
Government
guaranteed loan
packaging fees 380 577 903 1,673 3,332
Other noninterest
income 254 683 445 1,215 1,250
------- ------ ------- ------- ------
Total noninterest
income (1,046) 10,795 12,272 18,500 38,193
Noninterest Expense:
Salaries and
benefits 7,637 8,113 7,878 23,748 23,712
Bonus, commissions,
and incentives 530 262 1,141 863 3,371
Occupancy and
equipment 1,525 1,579 1,248 4,738 3,631
Data processing 2,049 2,078 1,789 6,172 4,996
Marketing and
business
development 262 403 532 1,152 1,660
Professional
services 859 782 853 2,373 3,079
Loan origination
and collection 3,273 2,558 1,956 6,866 5,633
Employee recruiting
and development 364 462 595 1,443 1,741
Regulatory
assessments 484 352 309 1,175 870
Restructure charges 7,262 -- -- 7,262 --
Other noninterest
expense 970 939 763 2,764 2,754
------- ------ ------- ------- ------
Total noninterest
expense 25,215 17,528 17,064 58,556 51,447
Income (loss) before
taxes from continuing
operations (25,896) (1,649) 1,535 (28,008) 3,939
Income tax expense
(benefit) from
continuing operations (6,994) (412) 398 (7,534) 1,043
------- ------ ------- ------- ------
Net income (loss) from
continuing operations (18,902) (1,237) 1,137 (20,474) 2,896
Loss from discontinued
operations before
income taxes -- -- -- -- (92)
Income tax benefit from
discontinued
operations -- -- -- -- (23)
------- ------ ------- ------- ------
Net loss from
discontinued
operations -- -- -- -- (69)
------- ------ ------- ------- ------
Net income (loss) (18,902) (1,237) 1,137 (20,474) 2,827
Preferred dividends 385 386 385 1,156 1,156
------- ------ ------- ------- ------
Net income available to
(loss attributable to)
common shareholders $(19,287) $ (1,623) $ 752 $(21,630) $ 1,671
Basic earnings (loss)
per common share:
Continuing operations $ (4.66) $ (0.39) $ 0.18 $ (5.23) $ 0.42
Discontinued operations -- -- -- -- (0.02)
------- ------ ------- ------- ------
Basic earnings (loss)
per common share $ (4.66) $ (0.39) $ 0.18 $ (5.23) $ 0.40
======= ====== ======= ======= ======
Diluted earnings (loss)
per common share:
Continuing operations $ (4.66) $ (0.39) $ 0.18 $ (5.23) $ 0.42
Discontinued operations -- -- -- -- (0.02)
------- ------ ------- ------- ------
Diluted earnings (loss)
per common share $ (4.66) $ (0.39) $ 0.18 $ (5.23) $ 0.40
======= ====== ======= ======= ======
Loan Composition
(Dollars in thousands) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024
------------- ----------- ----------- ----------- -------------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Real estate:
Residential $ 364,020 $ 356,559 $ 339,886 $ 330,870 $ 321,740
Commercial 231,039 292,923 296,351 305,721 292,026
Construction and
land 43,700 53,187 46,740 32,914 33,784
Commercial and
industrial 194,654 223,239 234,384 226,522 200,212
Commercial and
industrial - PPP 13 191 457 941 1,656
Consumer and other 90,946 93,333 93,889 93,826 92,546
-------- --------- --------- --------- ---------
Loans held for
investment, at
amortized cost, gross 924,372 1,019,432 1,011,707 990,794 941,964
Deferred loan costs,
net 17,096 21,118 20,521 19,499 18,060
Discount on government
guaranteed loans (7,506) (8,780) (8,727) (8,306) (7,880)
Premium on loans
purchased, net 2,941 3,342 3,415 3,739 3,860
-------- --------- --------- --------- ---------
Loans held for
investment, at
amortized cost, net 936,903 1,035,112 1,026,916 1,005,726 956,004
Government guaranteed
loans held for
investment, at fair
value 61,780 90,687 57,901 60,833 86,441
-------- --------- --------- --------- ---------
Total loans held for
investment, net $ 998,683 $1,125,799 $1,084,817 $1,066,559 $1,042,445
======== ========= ========= ========= =========
Nonperforming Assets (Unaudited)
(Dollars in thousands) 9/30/2025 6/30/2025 3/31/2025 12/31/2024 9/30/2024
----------- ----------- ----------- -------------- -----------
Nonperforming loans
(government guaranteed
balances), at
amortized cost, gross $ 8,865 $ 7,478 $ 9,728 $ 4,037 $ 4,497
Nonperforming loans
(unguaranteed
balances), at
amortized cost, gross 15,822 14,187 15,078 13,570 10,992
------ ------ ------ ------ ------
Total nonperforming
loans, at amortized
cost, gross 24,687 21,665 24,806 17,607 15,489
------ ------ ------ ------ ------
Nonperforming loans
(government guaranteed
balances), at fair
value -- 502 507 -- 24
Nonperforming loans
(unguaranteed
balances), at fair
value 1,385 1,430 1,419 1,490 1,535
------ ------ ------ ------ ------
Total nonperforming
loans, at fair value 1,385 1,932 1,926 1,490 1,559
------ ------ ------ ------ ------
OREO 400 400 132 132 --
Repossessed assets 32 -- 36 36 94
------ ------ ------ ------ ------
Total nonperforming
assets, gross $26,504 $23,997 $26,900 $ 19,265 $17,142
====== ====== ====== ====== ======
Nonperforming loans as
a percentage of total
loans held for
investment(1) 2.63% 2.09% 2.42% 1.75% 1.62%
Nonperforming loans
(excluding government
guaranteed balances)
to total loans held
for investment(1) 1.69% 1.37% 1.47% 1.35% 1.15%
Nonperforming assets as
a percentage of total
assets 1.97% 1.79% 2.08% 1.50% 1.38%
Nonperforming assets
(excluding government
guaranteed balances)
to total assets 1.21% 1.12% 1.22% 1.06% 0.88%
ACL to nonperforming
loans(1) 99.18% 78.66% 66.57% 88.10% 91.59%
ACL to nonperforming
loans (excluding
government guaranteed
balances)(1) 154.75% 120.12% 109.52% 114.31% 129.06%
(1) Excludes loans measured at fair value
Contacts: Thomas G. Zernick Scott J. McKim Chief Executive Officer Chief Financial Officer 727.399.5680 727.521.7085
(END) Dow Jones Newswires
October 30, 2025 16:00 ET (20:00 GMT)