BayFirst Financial Corp. Closes $94.6 Million Loan Sale to Banesco USA
Rhea-AI Summary
BayFirst Financial Corp (NASDAQ: BAFN) closed the sale of $94.6 million of loans to Banesco USA on December 15, 2025, following an announcement on September 29, 2025.
On a pro forma basis the Bank's total capital ratio improves to 10.1% and the tier 1 leverage ratio improves to 6.8%. BayFirst exited the SBA 7(a) lending business early in the fourth quarter and Banesco USA will assume servicing of the sold loans. The company expects an additional $4.5 million of loan balances to be sold to Banesco USA before year end. BayFirst was advised by Piper Sandler & Company and Igler & Pearlman, PA.
Positive
- Sale of $94.6M reduces SBA 7(a) balance-sheet exposure
- Pro forma total capital ratio 10.1%
- Pro forma tier 1 leverage ratio 6.8%
- Additional $4.5M loan sale expected before year-end
Negative
- Loan portfolio reduced by $94.6M due to the sale
- Company exited SBA 7(a) lending early in Q4 2025
Key Figures
Market Reality Check
Peers on Argus 2 Down
BAFN was up 0.12% pre-news, while momentum peers KFFB and SHFS were down 5.66% and 5.00%, respectively, indicating this loan-sale announcement is more stock-specific than part of a broad regional bank move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Oct 30 | Q3 earnings & restructuring | Negative | -2.3% | Q3 net loss and restructuring charges from SBA 7(a) exit. |
| Sep 30 | Earnings call notice | Neutral | +0.9% | Scheduling of Q3 2025 earnings conference call and webcast. |
| Sep 29 | Strategic SBA exit | Positive | +16.5% | Announced SBA 7(a) exit and <b>$103M</b> loan sale to Banesco USA. |
| Aug 04 | Program discontinuation | Negative | -5.8% | Discontinued Bolt SBA program with layoffs and dividend suspension. |
| Jul 29 | Q2 earnings | Negative | -9.6% | Q2 net loss with rising charge-offs and higher provisions. |
BAFN has generally moved in the direction implied by news tone, with four aligned reactions and one mild divergence on a neutral conference-call notice.
Over the past six months, BayFirst has executed a major strategic shift away from SBA 7(a) lending, including a $103 million portfolio sale to Banesco USA and workforce reductions. Earnings in Q2 and Q3 2025 showed net losses and restructuring charges tied to derisking. Prior announcements already outlined the planned loan sale to Banesco; today’s closing formalizes that step and fits the ongoing balance-sheet repositioning and community banking focus.
Market Pulse Summary
This announcement confirms closing of a planned $94.6 million loan sale to Banesco USA and signals pro forma improvements to the bank’s total capital ratio at 10.1% and Tier 1 leverage at 6.8%. It advances BayFirst’s previously announced strategy to exit SBA 7(a) lending and derisk the balance sheet. Investors may watch execution of the additional expected $4.5 million loan sale and subsequent capital and earnings trends.
Key Terms
sba 7(a) regulatory
total capital ratio financial
treasury management services financial
AI-generated analysis. Not financial advice.
ST. PETERSBURG, Fla., Dec. 15, 2025 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (the “Bank”) today announced it has closed its planned loan sale to Banesco USA.
“I am pleased to announce BayFirst has closed on the sale of
“We continue to focus on our community bank mission - serving individuals, families, and small businesses with stable checking and savings products that contribute to a more predictable, low-cost funding base,” said Zernick. “This relationship-driven approach continues to strengthen our presence across the vibrant Tampa Bay region and creates opportunities to expand our community bank portfolio, deposit growth and fee income sources like treasury management services.”
BayFirst was advised by Piper Sandler & Company and Igler & Pearlman, PA on this transaction.
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
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.
| Contacts: | |
| Thomas G. Zernick | Scott J. McKim |
| Chief Executive Officer | Chief Financial Officer |
| 727.399.5680 | 727.521.7085 |
FAQ
What loan sale did BayFirst (BAFN) close on December 15, 2025?
How did the Banesco USA loan sale affect BayFirst's capital ratios (BAFN)?
Will Banesco USA service the loans BayFirst (BAFN) sold?
Is BayFirst (BAFN) planning additional loan sales to Banesco USA in 2025?
When did BayFirst first announce the loan sale to Banesco USA (BAFN)?
Who advised BayFirst (BAFN) on the loan sale transaction?
