BayFirst cuts losses by 86% in Q4 2025 amid aggressive restructuring
BayFirst Financial Corp. has released its financial results for the fourth quarter of 2025. The company reported a narrower net loss of $2.5 million, a significant improvement from the previous quarter's $18.9 million loss. Despite ongoing restructuring, the us bank maintained stable capital levels and saw growth in treasury management revenue.
The bank's strategic restructuring continued in late 2025, with staff numbers dropping from 299 at the end of 2024 to 144 by December 31, 2025. Alongside this, the loan portfolio shrank by $34.8 million (3.5%) during the quarter, leaving $963.9 million in loans held for investment. However, the company sold $96.6 million in loans to Banesco USA, a key step in reducing portfolio risk.
BayFirst also exited the SBA 7(a) lending business in the fourth quarter, transferring servicing responsibilities for these loans to Banesco USA. Despite the loan sales, the net interest margin held steady at 3.58%. Meanwhile, deposits grew by $12.5 million (1.1%), reaching $1.18 billion, with 85% of deposits insured by year-end.
Treasury management revenue surged by 69% compared to the same quarter in 2024. Yet, the bank's book value per common share dipped to $17.22, down from $17.90 in the previous quarter.
BayFirst closed 2025 with a reduced workforce and a leaner loan portfolio. The company's deposit base expanded slightly, and its capital position remained strong. The strategic shifts aim to improve long-term stability after a year of restructuring.
