BayFirst Financial shares surge 46.00% after-hours as capital ratios improve and strategic restructuring advances.

BayFirst Financial Corp. surged 46.00% in after-hours trading following the release of its fourth-quarter 2025 results, which highlighted notable progress in restructuring efforts. The company reported a narrower net loss of $2.5 million, reduced headcount by 55%, and completed a $96.6 million loan sale to Banesco USA, aligning with its strategy to derisk the loan portfolio. CEO Thomas G. Zernick emphasized stable net interest margins (3.58%), $12.5 million in organic deposit growth, and 69% year-over-year improvement in treasury management revenue. Additionally, the exit from the SBA 7(a) lending business and improved capital ratios underscored the bank’s shift toward a stronger community banking model. These developments, coupled with management’s focus on credit quality and cost control, were interpreted by the market as positive catalysts for long-term value creation, driving the sharp post-earnings rally.