Overview

* BayFirst reports Q3 net loss of $18.9 mln, driven by restructuring charges

* Company exits SBA 7(a) lending, sells loan portfolio to Banesco USA

* Net interest margin decreases to 3.61% in Q3 2025

Outlook

* BayFirst expects to return to profitability with a 40-70 basis points ROA in 2026

* Company plans to close SBA 7(a) loan sale in Q4 2025

* BayFirst anticipates further regulatory actions in Q4 focused on credit and capital

Result Drivers

* RESTRUCTURING CHARGES - Co incurred $12.4 mln in one-time charges, including $7.3 mln for restructuring related to exiting SBA 7(a) lending

* SBA 7(a) EXIT - Co exited SBA 7(a) lending business, selling loan portfolio to Banesco USA, resulting in net loss of $5.1 mln

* CREDIT QUALITY ISSUES - Co increased provision for credit losses by $3.7 mln due to credit quality concerns

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 EPS -$4.66

Q3 Net -$18.90

Income mln

Q3 Net $11.30

Interest mln

Income

continui

ng

operatio

ns

Q3 Net 3.61%

Interest

Margin

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)