BayFirst Financial Corp ( (BAFN) ) has released its Q2 earnings. Here is a breakdown of the information BayFirst Financial Corp presented to its investors.
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BayFirst Financial Corp., a registered bank holding company based in St. Petersburg, Florida, operates through its subsidiary, BayFirst National Bank, offering a range of commercial and consumer banking services across the Tampa Bay-Sarasota region. The company is known for its significant involvement in SBA 7(a) lending, ranking as a top lender by units and volume nationwide.
In its second quarter of 2025, BayFirst Financial Corp. reported a net loss of $1.2 million, a deterioration from the previous quarter’s loss of $0.3 million. The company is undergoing a strategic review to address risks associated with unguaranteed SBA 7(a) loans and to position itself for long-term growth. As part of this strategy, BayFirst has suspended dividend payments and board fees to strengthen its balance sheet.
Key financial highlights include an increase in net interest margin to 4.06% and a rise in net interest income to $12.3 million. Despite these gains, the company faced challenges with increased credit losses and noninterest expenses. Loan production remained strong, with $106.4 million in new government-guaranteed loans, and deposits grew by $35.5 million during the quarter.
BayFirst continues to focus on expanding its community banking operations, emphasizing stable, low-cost deposit accounts and growing its core deposit base. The company is also enhancing its loan oversight and risk management practices to support sustainable growth.
Looking ahead, BayFirst Financial Corp. remains committed to its strategic initiatives aimed at improving earnings and reducing reliance on less predictable income sources. The company is optimistic about its community banking focus and tailored financial solutions, which are expected to drive future performance improvements.