BayFirst Financial Corp. (BAFN) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

In the presentation, we will conduct a question and answer session. And if at any time during this call you require immediate assistance, please press star zero for the operator. Also note that this call is being recorded on Wednesday, July 30th, 2025. I would now like to turn the conference over to Tom Zernick, CEO. Please go ahead, sir. Thank you, Sylvie. Good morning and thank you for participating on our call today. Once again with me is Robin Oliver, our President and Chief Operating Officer, and Scott McKim, our CFO. Today's call will include forward-looking statements and non-GAAP financial measures. Please refer to our cautionary statement on forward-looking statements contained on page two of the investor presentation. We reported a net loss this quarter of $1.2 million, driven by notably higher provision expense and higher write-downs on our portfolio of loans measured at fair value. As we announced last quarter, management and the board initiated a comprehensive strategic review aimed at de-risking unguaranteed SBA 7A balances on the balance sheet and positioning the company for long-term growth and enhanced shareholder value. Much progress is being made and we expect to have additional information on our plans and the expected results in the coming weeks. In conjunction with our review, they first reported charge-offs and fair value write-downs on related SBA 7A loans with elevated levels of risk. The net loss this quarter of $1.2 million is driven by these additional charge-offs and fair value write-downs. This will provide for a stronger balance sheet to take advantage of community banking opportunities. Furthermore, to offset the impact of these charges, the board has voted to suspend common and preferred stock dividend payments and board of director f...