BAFN News & Events

BayFirst Financial announced plans to exit the SBA 7a lending business and sell $103 million of SBA 7(a) loan balances to Banesco USA. "As we announced earlier in the year, Management and the Board initiated a comprehensive strategic review aimed at derisking 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. "Today marks a significant milestone in our efforts. BayFirst has signed a definitive agreement to sell $103 million in SBA 7(a) loans to Banesco USA. In conjunction with this agreement, BayFirst will exit the SBA 7(a) lending business, and the majority of our current SBA lending staff and support teams will be offered positions with Banesco USA. We expect the transaction to close in the fourth quarter of this year. The loans will be sold at 97% of retained balances and Banesco USA will assume servicing of these loans. Furthermore, Banesco USA will also purchase for book value the servicing rights associated with the purchased loans and will conduct servicing for all SBA loans that BayFirst will continue to own. While we are transitioning away from SBA 7(a) lending, I am pleased that our highly experienced team will continue to support SBA lending at Banesco USA. We remain deeply committed to 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. 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 Financial announced that as part of a strategic review, the bank has discontinued its Bolt loan program, effective immediately. The Bolt loan program was an SBA 7 loan designed to provide small balance loans to small businesses, typically used for working capital. The company continues to explore a range of opportunities. The company is also reviewing how it may strengthen its core SBA 7 offerings, improve its operations, and adapt to evolving local and financial market conditions.

The Board of Directors authorized a share repurchase program on January 28. "We believe our stock offers an attractive investment and repurchasing stock is a means for building long-term shareholder value," said Zernick. "We are confident about the growth of our Company, and we believe that when our shares are undervalued, repurchases represent a value-enhancing deployment of capital."

Reports Q4 revenue net interest income from continuing operations was $10.7M in the fourth quarter of 2024, an increase from $9.4M during the third quarter of 2024, and an increase from $8.9M during the fourth quarter of 2023. The net interest margin increased by 26 basis points to 3.60% in the fourth quarter of 2024, from 3.34% in the third quarter of 2024 and 12 basis points from 3.48%in the fourth quarter of 2023. ."We reported strong fourth quarter 2024 results, highlighted by quarterly net interest margin expansion and improved operating efficiencies," stated Thomas G. Zernick, Chief Executive Officer. "Net income increased substantially compared to the preceding quarter, led by increases in net interest income, higher gain on sale of government guaranteed loans, and a gain on sale of two branch office properties, which was part of a sale-leaseback transaction. It's worth noting that we continue to lease these two branch offices, resulting in no impact to our existing branch network. As a result of this transaction, we recorded an after-tax gain on sale of the properties of $8.7M during the fourth quarter of 2024."..."Additionally, the Board of Directors authorized a share repurchase program on January 28, 2025. We believe our stock offers an attractive investment and repurchasing stock is a means for building long-term shareholder value," said Zernick. "We are confident about the growth of our Company, and we believe that when our shares are undervalued, repurchases represent a value-enhancing deployment of capital."