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 shifting focus to community banking and treasury management.

• 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.

• Treasury management revenues grew 69% year-over-year in Q4 2025, with expanded services and a 6% increase in checking accounts year-to-date.

• Closed the year well-capitalized, with a liquidity ratio over 18% and 85% of deposits insured.

• Achieved organic deposit growth of $12.5 million in Q4 2025 and stable net interest margin at 3.58%.

Financial highlights

• Q4 2025 net loss was $2.5–$2.8 million, a significant improvement from Q3 net loss of $18.9–$19.3 million, with year-to-date net loss of $24.5 million.

• Net interest income was $11.2 million in Q4 2025, slightly down from Q3 but up from Q4 2024.

• Noninterest income was negative $104,000 to $0.1 million in Q4 2025, a sequential improvement but down from $22.3 million in Q4 2024.

• Noninterest expense was $11.9 million in Q4 2025, down from $25.2 million in Q3 2025, reflecting lower compensation and restructuring charges.

• Tangible/book value per share declined to $17.22 at year-end 2025 from $17.90 in Q3 and $22.95 at year-end 2024.

Outlook and guidance

• Focus remains on fortifying the balance sheet, disciplined risk management, and expanding treasury and community banking services as part of the 2026 strategic plan.

• Expect continued wind-down of the SBA 7(a) portfolio, with ongoing sales of unguaranteed balances and gradual reduction in related charge-offs.

• Anticipate further improvements in asset quality and profitability as legacy risks are resolved and cost of funds are reduced.

• No explicit forward guidance provided, but cautionary statements highlight ongoing risks from economic, regulatory, and market conditions.

• Management remains focused on implementing the strategic plan to build a premier community bank in Tampa Bay.