BayFirst Financial Corp. Reports Second Quarter 2025 Results
BayFirst Financial Corp. (NASDAQ: BAFN) reported a net loss of $1.2 million, or $(0.39) per share, in Q2 2025, compared to a net loss of $0.3 million in Q1 2025. The company's net interest margin improved to 4.06%, up 29 basis points from the previous quarter.
Key highlights include loan growth of $41.0 million (3.8%) to $1.13 billion, deposit growth of $35.5 million (3.1%) to $1.16 billion, and government-guaranteed loan originations of $106.4 million. The company suspended common and preferred stock dividends and board fees amid a strategic review focused on derisking unguaranteed SBA 7(a) balances.
Asset quality metrics showed increased pressure with net charge-offs rising to $6.8 million and provision for credit losses increasing to $7.3 million. The Bank maintained strong capital ratios with a Tier 1 leverage ratio of 8.11%.
BayFirst Financial Corp. (NASDAQ: BAFN) ha riportato una perdita netta di 1,2 milioni di dollari, pari a $(0,39) per azione, nel secondo trimestre del 2025, rispetto a una perdita netta di 0,3 milioni di dollari nel primo trimestre del 2025. Il margine di interesse netto della società è migliorato raggiungendo il 4,06%, in aumento di 29 punti base rispetto al trimestre precedente.
I principali risultati includono una crescita dei prestiti di 41,0 milioni di dollari (3,8%) fino a 1,13 miliardi di dollari, una crescita dei depositi di 35,5 milioni di dollari (3,1%) fino a 1,16 miliardi di dollari e un volume di erogazioni di prestiti garantiti dal governo pari a 106,4 milioni di dollari. La società ha sospeso i dividendi sulle azioni ordinarie e privilegiate e le commissioni del consiglio di amministrazione, nell'ambito di una revisione strategica volta a ridurre il rischio legato ai saldi non garantiti SBA 7(a).
Gli indicatori di qualità degli attivi hanno mostrato maggiore pressione con le cancellazioni nette che sono salite a 6,8 milioni di dollari e l'accantonamento per perdite su crediti aumentato a 7,3 milioni di dollari. La banca ha mantenuto solidi coefficienti patrimoniali con un rapporto di leva Tier 1 dell'8,11%.
BayFirst Financial Corp. (NASDAQ: BAFN) reportó una pérdida neta de 1,2 millones de dólares, o $(0,39) por acción, en el segundo trimestre de 2025, en comparación con una pérdida neta de 0,3 millones en el primer trimestre de 2025. El margen de interés neto de la compañía mejoró hasta un 4,06%, aumentando 29 puntos básicos respecto al trimestre anterior.
Los aspectos destacados incluyen un crecimiento de préstamos de 41,0 millones de dólares (3,8%) hasta 1,13 mil millones, un aumento de depósitos de 35,5 millones de dólares (3,1%) hasta 1,16 mil millones, y originaciones de préstamos garantizados por el gobierno por 106,4 millones de dólares. La empresa suspendió los dividendos de acciones comunes y preferentes, así como las tarifas de la junta directiva, en medio de una revisión estratégica centrada en reducir riesgos de saldos no garantizados SBA 7(a).
Los indicadores de calidad de activos mostraron mayor presión con cargos netos que aumentaron a 6,8 millones de dólares y provisiones para pérdidas crediticias que subieron a 7,3 millones de dólares. El banco mantuvo sólidos ratios de capital con una ratio de apalancamiento Tier 1 del 8,11%.
BayFirst Financial Corp. (NASDAQ: BAFN)는 2025년 2분기에 120만 달러 순손실을 기록했으며, 주당 순손실은 $(0.39)로 2025년 1분기 순손실 30만 달러에 비해 증가했습니다. 회사의 순이자마진은 전분기 대비 29 베이시스 포인트 상승한 4.06%로 개선되었습니다.
주요 내용으로는 대출이 4100만 달러(3.8%) 증가하여 11억 3천만 달러에 도달했고, 예금은 3550만 달러(3.1%) 증가하여 11억 6천만 달러가 되었으며, 정부 보증 대출 신규 실행액은 1억 640만 달러였습니다. 회사는 SBA 7(a) 비보증 잔액의 위험 완화를 위한 전략 검토 중에 보통주 및 우선주 배당금과 이사회 수당을 중단했습니다.
자산 건전성 지표는 순대손충당금이 680만 달러로 증가하고 신용손실충당금이 730만 달러로 늘어나면서 압박이 심화되었습니다. 은행은 Tier 1 레버리지 비율 8.11%로 강한 자본 비율을 유지했습니다.
BayFirst Financial Corp. (NASDAQ : BAFN) a enregistré une perte nette de 1,2 million de dollars, soit $(0,39) par action, au deuxième trimestre 2025, contre une perte nette de 0,3 million au premier trimestre 2025. La marge nette d'intérêt de la société s'est améliorée pour atteindre 4,06%, en hausse de 29 points de base par rapport au trimestre précédent.
Les points clés incluent une croissance des prêts de 41,0 millions de dollars (3,8 %) pour atteindre 1,13 milliard, une croissance des dépôts de 35,5 millions de dollars (3,1 %) pour atteindre 1,16 milliard, ainsi que des originations de prêts garantis par le gouvernement de 106,4 millions de dollars. La société a suspendu les dividendes sur actions ordinaires et préférentielles ainsi que les frais du conseil d'administration dans le cadre d'une revue stratégique axée sur la réduction des risques liés aux soldes non garantis SBA 7(a).
Les indicateurs de qualité des actifs ont montré une pression accrue avec une augmentation des radiations nettes à 6,8 millions de dollars et des provisions pour pertes sur crédits en hausse à 7,3 millions de dollars. La banque a maintenu des ratios de capital solides avec un ratio de levier Tier 1 de 8,11 %.
BayFirst Financial Corp. (NASDAQ: BAFN) meldete im zweiten Quartal 2025 einen Nettoverlust von 1,2 Millionen US-Dollar bzw. $(0,39) pro Aktie, verglichen mit einem Nettoverlust von 0,3 Millionen US-Dollar im ersten Quartal 2025. Die Nettozinsmarge des Unternehmens verbesserte sich auf 4,06%, ein Anstieg um 29 Basispunkte gegenüber dem Vorquartal.
Zu den wichtigsten Highlights zählen ein Kreditwachstum von 41,0 Millionen US-Dollar (3,8%) auf 1,13 Milliarden US-Dollar, ein Einlagenwachstum von 35,5 Millionen US-Dollar (3,1%) auf 1,16 Milliarden US-Dollar sowie staatlich garantierte Kreditvergaben in Höhe von 106,4 Millionen US-Dollar. Das Unternehmen setzte Dividenden für Stamm- und Vorzugsaktien sowie Vorstandsvergütungen im Rahmen einer strategischen Überprüfung aus, die sich auf die Risikominderung von nicht garantierten SBA 7(a)-Beständen konzentriert.
Die Kennzahlen zur Vermögensqualität zeigten zunehmenden Druck, da Nettoabschreibungen auf 6,8 Millionen US-Dollar anstiegen und die Rückstellungen für Kreditverluste auf 7,3 Millionen US-Dollar erhöht wurden. Die Bank hielt solide Kapitalquoten mit einer Tier-1-Leverage-Ratio von 8,11% aufrecht.
- Net interest margin improved to 4.06%, up 29 basis points from previous quarter
- Loans held for investment grew $41.0 million (3.8%) to $1.13 billion
- Deposits increased by $35.5 million (3.1%) to $1.16 billion
- Community bank loans rose 3% during the quarter
- 80% of total deposits were FDIC insured
- Reported net loss of $1.2 million, deteriorating from $0.3 million loss in Q1 2025
- Net charge-offs increased to $6.8 million from $3.3 million in Q1 2025
- Provision for credit losses rose to $7.3 million from $4.4 million in Q1
- Suspended common and preferred stock dividend payments
- Nonperforming assets at 1.79% of total assets
- Tier 1 leverage ratio declined to 8.11% from 8.56% in previous quarter
Insights
BayFirst reported a $1.2M Q2 loss with increasing credit challenges despite improved net interest margin; suspending dividends amid strategic restructuring.
BayFirst Financial Corp reported a net loss of
The quarter reveals a mixed financial picture with some positive developments overshadowed by credit quality concerns. Net interest margin improved to
However, loan portfolio challenges are evident with provision for credit losses surging to
In response to these challenges, the board has suspended both common and preferred stock dividend payments, as well as board of director fees. This conservative cash preservation approach signals the severity of the situation.
The bank's SBA 7(a) loan program, particularly its Bolt product for loans of
On the positive side, the bank's core metrics show some strength: deposits increased
The bank's strategic shift toward community banking and away from reliance on gains from government-guaranteed loan sales appears to be continuing, though implementation challenges persist during this transition period.
ST. PETERSBURG, Fla., July 29, 2025 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (the “Bank”) today reported a net loss of
“As we announced last quarter, Management and the Board initiated a comprehensive strategic review aimed at derisking unguaranteed SBA 7(a) balances on the balance sheet and positioning the company for long-term growth and enhanced shareholder value,” stated Thomas G. Zernick, Chief Executive Officer. “Much progress is being made, and we expect to have additional information on our plans and the expected results in the coming weeks. In conjunction with the review, BayFirst reported charge offs and fair value write downs on related SBA 7(a) loans with elevated levels of risk. This will provide for a stronger balance sheet to take advantage of community banking opportunities. Furthermore, to offset the impact of these changes, the Board has voted to suspend common and preferred stock dividend payments and board of director fees. We will continue to evaluate strategic alternatives to ensure an optimal path in the best long-term interests of our shareholders, customers, and the communities we serve.
“We expanded our net interest margin and kept controllable operating expenses in check during the second quarter as compared to the first quarter, reflecting the continued strength in our community banking operations. Credit challenges extended into the second quarter, with net charge-offs and fair value write-downs on Bolt SBA 7(a) loans increasing compared to the prior quarter. Notably, we recorded some loan production measured at fair value because of production delays experienced with SBA's Standard Operating Procedures update, which increased application processing time and prevented us from executing some loan sales as planned. Although our core SBA and conventional commercial loan portfolio performance remains strong, many of our SBA small business clients continue to struggle in a difficult environment even though many have shown some resilience in the face of inflation and persistent high interest rates. As we monitor the evolving impact of the economy and recent policy changes, we remain committed to strong loan oversight and maintaining close relationships with our borrowers to support their long-term success.
“We continue to support our community bank first and foremost, serving individuals, families, and small businesses with a strong emphasis on stable, low-cost checking and savings accounts—products that are less sensitive to rate changes and contribute to a more predictable funding base,” said Zernick. “This focus not only supports relationship-driven banking but also broadens our reach across the vibrant Tampa Bay region, enhancing our franchise and creating more opportunities to offer residential mortgages, consumer loans, and small business financing. During the second quarter, we continued to focus on growing core deposits. This is a key component of our broader strategy to increase recurring revenue through net interest income and reduce our reliance on gains from the sale of government-guaranteed loans. As we continue to expand our conventional commercial and consumer loan portfolios, we are also taking proactive steps to manage credit risk. These efforts include strengthening underwriting standards for SBA 7(a) loans and exploring options such as portfolio sales to reduce exposure to unguaranteed SBA balances. We remain focused on aligning our loan growth with strong risk oversight to support long-term performance.
“A key achievement in the second quarter was the continued momentum in loan growth across our community bank operations, fueled by consistent demand across the greater Tampa Bay region,” said Zernick. “Community bank loans rose
Second Quarter 2025 Performance Review
- Net interest margin was
4.06% in the second quarter of 2025, an increase of 29 basis points from3.77% in the first quarter of 2025 and an increase of 63 basis points from3.43% in the second quarter of 2024. - The Company’s government guaranteed loan team originated
$106.4 million in new loans during the second quarter of 2025, a slight increase from$106.3 million of loans produced in the previous quarter, and an increase from$98.7 million of loans produced during the second quarter of 2024. Since the launch in 2022 of the Company's Bolt loan program, an SBA 7(a) loan product designed to expeditiously provide working capital loans of$150 thousand or less, the Company has originated 6,745 Bolt loans totaling$869.9 million , of which 538 Bolt loans totaling$67.9 million were originated during the second quarter. - Loans held for investment increased by
$41.0 million , or3.8% , during the second quarter of 2025 to$1.13 billion and increased$117.5 million , or11.7% , over the past year. During the quarter, the Company originated$157.0 million of loans and sold$66.8 million of government guaranteed loan balances. - Deposits increased
$35.5 million , or3.1% , during the second quarter of 2025 and increased$121.4 million , or11.6% , over the past year to$1.16 billion . The increase in deposits during the quarter was primarily due to increases in noninterest-bearing account balances, savings and money market account balances, and time deposit balances, partially offset by a decrease in interest-bearing transaction account balances. - Book value and tangible book value at June 30, 2025 were
$22.30 per common share, a decrease from$22.77 at March 31, 2025.
Results of Operations
Net Income (Loss)
The Company had a net loss of
In the first six months of 2025, the Company had a net loss of
Net Interest Income and Net Interest Margin
Net interest income from continuing operations was
The increase in net interest income from continuing operations during the second quarter of 2025, as compared to the first quarter of 2025, was mainly due to an increase in loan interest income, including fees, of
The increase in net interest income from continuing operations during the second quarter of 2025, as compared to the year ago quarter, was mainly due to an increase in loan interest income, including fees, of
Net interest income from continuing operations was
Noninterest Income
Noninterest income from continuing operations was
Noninterest income from continuing operations was
Noninterest Expense
Noninterest expense from continuing operations was
Noninterest expense from continuing operations was
Balance Sheet
Assets
Total assets increased
Loans
Loans held for investment increased
Deposits
Deposits increased
Asset Quality
The Company recorded a provision for credit losses in the second quarter of
The ratio of ACL to total loans held for investment at amortized cost was
Net charge-offs for the second quarter of 2025 were
Capital
The Bank’s Tier 1 leverage ratio was
Liquidity
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 June 30, 2025 was
Conference Call
BayFirst will host a conference call on Wednesday, July 30, 2025, at 9:00 a.m. ET to discuss its second 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 29222. 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. The Bank was the 8th largest SBA 7(a) lender by number of units originated and 18th largest by dollar volume nationwide through the SBA's quarter ended June 30, 2025. As of June 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; 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) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||||||||||||
| Net income (loss) | $ | (1,237 | ) | $ | (335 | ) | $ | 9,776 | $ | 1,137 | $ | 866 | |||||||
| Balance sheet data: | |||||||||||||||||||
| Average loans held for investment at amortized cost | 1,047,568 | 1,027,648 | 1,003,867 | 948,528 | 902,417 | ||||||||||||||
| Average total assets | 1,324,455 | 1,287,618 | 1,273,296 | 1,228,040 | 1,178,501 | ||||||||||||||
| Average common shareholders’ equity | 95,049 | 96,053 | 87,961 | 86,381 | 84,948 | ||||||||||||||
| Total loans held for investment | 1,125,799 | 1,084,817 | 1,066,559 | 1,042,445 | 1,008,314 | ||||||||||||||
| Total loans held for investment, excl gov’t gtd loan balances | 972,942 | 943,979 | 917,075 | 885,444 | 844,659 | ||||||||||||||
| Allowance for credit losses | 17,041 | 16,513 | 15,512 | 14,186 | 13,843 | ||||||||||||||
| Total assets | 1,343,867 | 1,291,957 | 1,288,297 | 1,245,099 | 1,217,869 | ||||||||||||||
| Total deposits | 1,163,796 | 1,128,267 | 1,143,229 | 1,112,196 | 1,042,388 | ||||||||||||||
| Common shareholders’ equity | 92,172 | 94,034 | 94,869 | 86,242 | 84,911 | ||||||||||||||
| Share data: | |||||||||||||||||||
| Basic earnings (loss) per common share | $ | (0.39 | ) | $ | (0.17 | ) | $ | 2.27 | $ | 0.18 | $ | 0.12 | |||||||
| Diluted earnings (loss) per common share | (0.39 | ) | (0.17 | ) | 2.11 | 0.18 | 0.12 | ||||||||||||
| Dividends per common share | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||||||
| Book value per common share | 22.30 | 22.77 | 22.95 | 20.86 | 20.54 | ||||||||||||||
| Tangible book value per common share (1) | 22.30 | 22.77 | 22.95 | 20.86 | 20.54 | ||||||||||||||
| Performance and capital ratios: | |||||||||||||||||||
| Return on average assets(2) | (0.37 | )% | (0.10 | )% | 3.07 | % | 0.37 | % | 0.29 | % | |||||||||
| Return on average common equity(2) | (6.83 | )% | (3.00 | )% | 42.71 | % | 3.48 | % | 2.26 | % | |||||||||
| Net interest margin(2) | 4.06 | % | 3.77 | % | 3.60 | % | 3.34 | % | 3.43 | % | |||||||||
| Asset quality ratios: | |||||||||||||||||||
| Net charge-offs | $ | 6,799 | $ | 3,301 | $ | 3,369 | $ | 2,757 | $ | 3,261 | |||||||||
| Net charge-offs/avg loans held for investment at amortized cost(2) | 2.60 | % | 1.28 | % | 1.34 | % | 1.16 | % | 1.45 | % | |||||||||
| Nonperforming loans(3) | $ | 21,665 | $ | 24,806 | $ | 17,607 | $ | 15,489 | $ | 12,312 | |||||||||
| Nonperforming loans (excluding gov't gtd balance)(3) | $ | 14,187 | $ | 15,078 | $ | 13,570 | $ | 10,992 | $ | 8,054 | |||||||||
| Nonperforming loans/total loans held for investment(3) | 2.09 | % | 2.42 | % | 1.75 | % | 1.62 | % | 1.34 | % | |||||||||
| Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) | 1.37 | % | 1.47 | % | 1.35 | % | 1.15 | % | 0.87 | % | |||||||||
| ACL/Total loans held for investment at amortized cost | 1.65 | % | 1.61 | % | 1.54 | % | 1.48 | % | 1.50 | % | |||||||||
| ACL/Total loans held for investment at amortized cost, excl government guaranteed loans | 1.85 | % | 1.84 | % | 1.79 | % | 1.70 | % | 1.73 | % | |||||||||
| Other Data: | |||||||||||||||||||
| Full-time equivalent employees | 300 | 305 | 299 | 295 | 302 | ||||||||||||||
| 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, except for share data) | June 30, 2025 | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | ||||||||||||||
| Total shareholders’ equity | $ | 108,223 | $ | 110,085 | $ | 110,920 | $ | 102,293 | $ | 100,962 | |||||||||
| Less: Preferred stock liquidation preference | (16,051 | ) | (16,051 | ) | (16,051 | ) | (16,051 | ) | (16,051 | ) | |||||||||
| Total equity available to common shareholders | 92,172 | 94,034 | 94,869 | 86,242 | 84,911 | ||||||||||||||
| Less: Goodwill | — | — | — | — | — | ||||||||||||||
| Tangible common shareholders' equity | $ | 92,172 | $ | 94,034 | $ | 94,869 | $ | 86,242 | $ | 84,911 | |||||||||
| Common shares outstanding | 4,134,127 | 4,129,027 | 4,132,986 | 4,134,059 | 4,134,219 | ||||||||||||||
| Tangible book value per common share | $ | 22.30 | $ | 22.77 | $ | 22.95 | $ | 20.86 | $ | 20.54 | |||||||||
| BAYFIRST FINANCIAL CORP. | |||||||||||
| CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||||
| (Dollars in thousands) | 6/30/2025 | 3/31/2025 | 6/30/2024 | ||||||||
| Assets | |||||||||||
| Cash and due from banks | $ | 6,142 | $ | 6,517 | $ | 4,226 | |||||
| Interest-bearing deposits in banks | 71,157 | 56,637 | 56,546 | ||||||||
| Cash and cash equivalents | 77,299 | 63,154 | 60,772 | ||||||||
| Time deposits in banks | 1,280 | 2,025 | 2,261 | ||||||||
| Investment securities available for sale, at fair value (amortized cost | 30,256 | 36,318 | 38,685 | ||||||||
| Investment securities held to maturity, at amortized cost, net of allowance for credit losses of | 2,491 | 2,488 | 2,486 | ||||||||
| Nonmarketable equity securities | 6,551 | 5,480 | 7,132 | ||||||||
| Government guaranteed loans held for sale | — | — | — | ||||||||
| Government guaranteed loans held for investment, at fair value | 90,687 | 57,901 | 86,142 | ||||||||
| Loans held for investment, at amortized cost | 1,035,112 | 1,026,916 | 922,172 | ||||||||
| Allowance for credit losses on loans | (17,041 | ) | (16,513 | ) | (13,843 | ) | |||||
| Net Loans held for investment, at amortized cost | 1,018,071 | 1,010,403 | 908,329 | ||||||||
| Accrued interest receivable | 9,495 | 9,153 | 8,000 | ||||||||
| Premises and equipment, net | 32,407 | 32,769 | 39,088 | ||||||||
| Loan servicing rights | 16,074 | 16,460 | 15,770 | ||||||||
| Right-of-use operating lease assets | 15,160 | 15,484 | 2,305 | ||||||||
| Bank owned life insurance | 26,881 | 26,696 | 26,150 | ||||||||
| Other real estate owned | 400 | 132 | 1,633 | ||||||||
| Other assets | 16,815 | 13,494 | 19,080 | ||||||||
| Assets from discontinued operations | — | — | 36 | ||||||||
| Total assets | $ | 1,343,867 | $ | 1,291,957 | $ | 1,217,869 | |||||
| Liabilities: | |||||||||||
| Noninterest-bearing deposit accounts | $ | 109,698 | $ | 106,236 | $ | 94,040 | |||||
| Interest-bearing transaction accounts | 238,215 | 261,074 | 236,447 | ||||||||
| Savings and money market deposit accounts | 493,005 | 467,766 | 420,271 | ||||||||
| Time deposits | 322,878 | 293,191 | 291,630 | ||||||||
| Total deposits | 1,163,796 | 1,128,267 | 1,042,388 | ||||||||
| FHLB borrowings | 40,000 | 20,000 | 55,000 | ||||||||
| Subordinated debentures | 5,959 | 5,957 | 5,952 | ||||||||
| Notes payable | 1,707 | 1,820 | 2,162 | ||||||||
| Accrued interest payable | 1,148 | 1,053 | 1,172 | ||||||||
| Operating lease liabilities | 13,819 | 14,102 | 2,497 | ||||||||
| Deferred income tax liabilities | 895 | 648 | 1,000 | ||||||||
| Accrued expenses and other liabilities | 8,320 | 10,025 | 6,565 | ||||||||
| Liabilities from discontinued operations | — | — | 171 | ||||||||
| Total liabilities | 1,235,644 | 1,181,872 | 1,116,907 | ||||||||
| Shareholders’ equity: | |||||||||||
| Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at June 30, 2025, March 31, 2025, and June 30, 2024; aggregate liquidation preference of | 6,161 | 6,161 | 6,161 | ||||||||
| Preferred stock, Series B; no par value, 20,000 shares authorized, 3,210 shares issued and outstanding at June 30, 2025, March 31, 2025, and June 30, 2024; aggregate liquidation preference of | 3,123 | 3,123 | 3,123 | ||||||||
| Preferred stock, Series C; no par value, 10,000 shares authorized, 6,446 shares issued and outstanding at June 30, 2025, March 31, 2025, and June 30, 2024; aggregate liquidation preference of | 6,446 | 6,446 | 6,446 | ||||||||
| Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,134,127, 4,129,027, and 4,134,219 shares issued and outstanding at June 30, 2025, March 31, 2025, and June 30, 2024, respectively | 54,739 | 54,657 | 54,773 | ||||||||
| Accumulated other comprehensive loss, net | (2,368 | ) | (2,378 | ) | (3,113 | ) | |||||
| Unearned compensation | (1,006 | ) | (1,006 | ) | (1,081 | ) | |||||
| Retained earnings | 41,128 | 43,082 | 34,653 | ||||||||
| Total shareholders’ equity | 108,223 | 110,085 | 100,962 | ||||||||
| Total liabilities and shareholders’ equity | $ | 1,343,867 | $ | 1,291,957 | $ | 1,217,869 | |||||
| BAYFIRST FINANCIAL CORP. | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||||||
| For the Quarter Ended | Year-to-Date | ||||||||||||||||||
| (Dollars in thousands, except per share data) | 6/30/2025 | 3/31/2025 | 6/30/2024 | 6/30/2025 | 6/30/2024 | ||||||||||||||
| Interest income: | |||||||||||||||||||
| Loans, including fees | $ | 21,459 | $ | 19,751 | $ | 19,414 | $ | 41,210 | $ | 37,642 | |||||||||
| Interest-bearing deposits in banks and other | 1,046 | 934 | 1,013 | 1,980 | 1,972 | ||||||||||||||
| Total interest income | 22,505 | 20,685 | 20,427 | 43,190 | 39,614 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Deposits | 9,282 | 9,431 | 10,448 | 18,713 | 20,663 | ||||||||||||||
| Other | 875 | 255 | 797 | 1,130 | 1,027 | ||||||||||||||
| Total interest expense | 10,157 | 9,686 | 11,245 | 19,843 | 21,690 | ||||||||||||||
| Net interest income | 12,348 | 10,999 | 9,182 | 23,347 | 17,924 | ||||||||||||||
| Provision for credit losses | 7,264 | 4,400 | 3,000 | 11,664 | 7,058 | ||||||||||||||
| Net interest income after provision for credit losses | 5,084 | 6,599 | 6,182 | 11,683 | 10,866 | ||||||||||||||
| Noninterest income: | |||||||||||||||||||
| Loan servicing income, net | 484 | 736 | 805 | 1,220 | 1,600 | ||||||||||||||
| Gain on sale of government guaranteed loans, net | 6,136 | 7,327 | 5,595 | 13,463 | 13,684 | ||||||||||||||
| Service charges and fees | 473 | 449 | 452 | 922 | 896 | ||||||||||||||
| Government guaranteed loans fair value gain (loss), net | 2,442 | (755 | ) | 3,202 | 1,687 | 6,507 | |||||||||||||
| Government guaranteed loan packaging fees | 577 | 716 | 1,022 | 1,293 | 2,429 | ||||||||||||||
| Other noninterest income | 683 | 278 | 577 | 961 | 805 | ||||||||||||||
| Total noninterest income | 10,795 | 8,751 | 11,653 | 19,546 | 25,921 | ||||||||||||||
| Noninterest Expense: | |||||||||||||||||||
| Salaries and benefits | 8,113 | 7,998 | 7,829 | 16,111 | 15,834 | ||||||||||||||
| Bonus, commissions, and incentives | 262 | 71 | 659 | 333 | 2,230 | ||||||||||||||
| Occupancy and equipment | 1,579 | 1,634 | 1,273 | 3,213 | 2,383 | ||||||||||||||
| Data processing | 2,078 | 2,045 | 1,647 | 4,123 | 3,207 | ||||||||||||||
| Marketing and business development | 403 | 487 | 540 | 890 | 1,128 | ||||||||||||||
| Professional services | 782 | 732 | 877 | 1,514 | 2,226 | ||||||||||||||
| Loan origination and collection | 2,558 | 1,035 | 1,958 | 3,593 | 3,677 | ||||||||||||||
| Employee recruiting and development | 462 | 617 | 549 | 1,079 | 1,146 | ||||||||||||||
| Regulatory assessments | 352 | 339 | 279 | 691 | 561 | ||||||||||||||
| Other noninterest expense | 939 | 855 | 999 | 1,794 | 1,991 | ||||||||||||||
| Total noninterest expense | 17,528 | 15,813 | 16,610 | 33,341 | 34,383 | ||||||||||||||
| Income (loss) before taxes from continuing operations | (1,649 | ) | (463 | ) | 1,225 | (2,112 | ) | 2,404 | |||||||||||
| Income tax expense (benefit) from continuing operations | (412 | ) | (128 | ) | 349 | (540 | ) | 645 | |||||||||||
| Net income (loss) from continuing operations | (1,237 | ) | (335 | ) | 876 | (1,572 | ) | 1,759 | |||||||||||
| Loss from discontinued operations before income taxes | — | — | (14 | ) | — | (92 | ) | ||||||||||||
| Income tax benefit from discontinued operations | — | — | (4 | ) | — | (23 | ) | ||||||||||||
| Net loss from discontinued operations | — | — | (10 | ) | — | (69 | ) | ||||||||||||
| Net income (loss) | (1,237 | ) | (335 | ) | 866 | (1,572 | ) | 1,690 | |||||||||||
| Preferred dividends | 386 | 385 | 386 | 771 | 771 | ||||||||||||||
| Net income available to (loss attributable to) common shareholders | $ | (1,623 | ) | $ | (720 | ) | $ | 480 | $ | (2,343 | ) | $ | 919 | ||||||
| Basic earnings (loss) per common share: | |||||||||||||||||||
| Continuing operations | $ | (0.39 | ) | $ | (0.17 | ) | $ | 0.12 | $ | (0.57 | ) | $ | 0.24 | ||||||
| Discontinued operations | — | — | — | — | (0.02 | ) | |||||||||||||
| Basic earnings (loss) per common share | $ | (0.39 | ) | $ | (0.17 | ) | $ | 0.12 | $ | (0.57 | ) | $ | 0.22 | ||||||
| Diluted earnings (loss) per common share: | |||||||||||||||||||
| Continuing operations | $ | (0.39 | ) | $ | (0.17 | ) | $ | 0.12 | $ | (0.57 | ) | $ | 0.24 | ||||||
| Discontinued operations | — | — | — | — | (0.02 | ) | |||||||||||||
| Diluted earnings (loss) per common share | $ | (0.39 | ) | $ | (0.17 | ) | $ | 0.12 | $ | (0.57 | ) | $ | 0.22 | ||||||
Loan Composition
| (Dollars in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| Real estate: | |||||||||||||||||||
| Residential | $ | 356,559 | $ | 339,886 | $ | 330,870 | $ | 321,740 | $ | 304,234 | |||||||||
| Commercial | 292,923 | 296,351 | 305,721 | 292,026 | 288,185 | ||||||||||||||
| Construction and land | 53,187 | 46,740 | 32,914 | 33,784 | 35,759 | ||||||||||||||
| Commercial and industrial | 223,239 | 234,384 | 226,522 | 200,212 | 192,140 | ||||||||||||||
| Commercial and industrial - PPP | 191 | 457 | 941 | 1,656 | 2,324 | ||||||||||||||
| Consumer and other | 93,333 | 93,889 | 93,826 | 92,546 | 85,789 | ||||||||||||||
| Loans held for investment, at amortized cost, gross | 1,019,432 | 1,011,707 | 990,794 | 941,964 | 908,431 | ||||||||||||||
| Deferred loan costs, net | 21,118 | 20,521 | 19,499 | 18,060 | 17,299 | ||||||||||||||
| Discount on government guaranteed loans | (8,780 | ) | (8,727 | ) | (8,306 | ) | (7,880 | ) | (7,731 | ) | |||||||||
| Premium on loans purchased, net | 3,342 | 3,415 | 3,739 | 3,860 | 4,173 | ||||||||||||||
| Loans held for investment, at amortized cost, net | 1,035,112 | 1,026,916 | 1,005,726 | 956,004 | 922,172 | ||||||||||||||
| Government guaranteed loans held for investment, at fair value | 90,687 | 57,901 | 60,833 | 86,441 | 86,142 | ||||||||||||||
| Total loans held for investment, net | $ | 1,125,799 | $ | 1,084,817 | $ | 1,066,559 | $ | 1,042,445 | $ | 1,008,314 | |||||||||
Nonperforming Assets (Unaudited)
| (Dollars in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | ||||||||||||||
| Nonperforming loans (government guaranteed balances), at amortized cost, gross | $ | 7,478 | $ | 9,728 | $ | 4,037 | $ | 4,497 | $ | 4,258 | |||||||||
| Nonperforming loans (unguaranteed balances), at amortized cost, gross | 14,187 | 15,078 | 13,570 | 10,992 | 8,054 | ||||||||||||||
| Total nonperforming loans, at amortized cost, gross | 21,665 | 24,806 | 17,607 | 15,489 | 12,312 | ||||||||||||||
| Nonperforming loans (government guaranteed balances), at fair value | 502 | 507 | — | 24 | 341 | ||||||||||||||
| Nonperforming loans (unguaranteed balances), at fair value | 1,430 | 1,419 | 1,490 | 1,535 | 1,284 | ||||||||||||||
| Total nonperforming loans, at fair value | 1,932 | 1,926 | 1,490 | 1,559 | 1,625 | ||||||||||||||
| OREO | 400 | 132 | 132 | — | 1,633 | ||||||||||||||
| Repossessed assets | — | 36 | 36 | 94 | — | ||||||||||||||
| Total nonperforming assets, gross | $ | 23,997 | $ | 26,900 | $ | 19,265 | $ | 17,142 | $ | 15,570 | |||||||||
| Nonperforming loans as a percentage of total loans held for investment(1) | 2.09 | % | 2.42 | % | 1.75 | % | 1.62 | % | 1.34 | % | |||||||||
| Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1) | 1.37 | % | 1.47 | % | 1.35 | % | 1.15 | % | 0.87 | % | |||||||||
| Nonperforming assets as a percentage of total assets | 1.79 | % | 2.08 | % | 1.50 | % | 1.38 | % | 1.28 | % | |||||||||
| Nonperforming assets (excluding government guaranteed balances) to total assets | 1.12 | % | 1.22 | % | 1.06 | % | 0.88 | % | 0.82 | % | |||||||||
| ACL to nonperforming loans(1) | 78.66 | % | 66.57 | % | 88.10 | % | 91.59 | % | 112.44 | % | |||||||||
| ACL to nonperforming loans (excluding government guaranteed balances)(1) | 120.12 | % | 109.52 | % | 114.31 | % | 129.06 | % | 171.88 | % | |||||||||
| (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 |
FAQ
What were BayFirst Financial's (BAFN) Q2 2025 earnings results?
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