During Q4 2025, BayFirst completed its planned exit from the SBA 7(a) lending business, selling $96.6 million in loans to Banesco USA and engaging the buyer as subservicer for remaining balances. The bank reduced headcount by 52% year-over-year, trimming from 299 to 144 employees, and achieved a meaningful reduction in operating expenses. Management emphasized that these actions de-risk the balance sheet, streamline operations and position the firm for more stable, community-focused growth in the Tampa Bay and Sarasota markets.

BayFirst narrowed its net loss to $2.5 million ($0.69 per share) in Q4, compared with a $18.9 million loss in Q3, driven by an $8.9 million reduction in the provision for credit losses, a $0.9 million rise in noninterest income and a $13.3 million drop in noninterest expense. Net interest margin held at 3.58%, while net interest income totaled $11.2 million. Deposit balances grew by $12.5 million in the quarter, representing 1.1% growth, with 85% of deposits FDIC-insured, illustrating success in customer retention and rate management despite a challenging rate environment.

Total loans held for investment declined 3.5% sequentially to $963.9 million and 9.6% year-over-year as legacy portfolios were sold or wound down; net charge-offs rose to $4.6 million, primarily from the legacy SBA portfolio, though management expects these write-offs to decrease through 2026. Deposit growth of $40.7 million year-over-year lifted total deposits to $1.18 billion. The bank closed December well-capitalized, with book value per share of $17.22, and reported $88.4 million of incremental cash and cash equivalents generated during the quarter, bolstering liquidity to support future lending and fee-based revenue initiatives.