BayFirst Financial Ends Bolt Loan Program Amid Strategic Review.

BayFirst Financial has ended its Bolt loan program as part of a strategic review process, exploring options to enhance its offerings. The company is evaluating ways to strengthen its core SBA 7 loan offerings and align itself with evolving market conditions. BayFirst Financial Corp generates revenue primarily from interest on loans and gain-on-sale income. The company serves a diverse clientele and operates in various segments, including real estate, commercial and industrial, and consumer lending.

BayFirst Financial Corp. (NASDAQ: BAFN), the parent company of BayFirst National Bank, has announced the cessation of its Bolt loan program as part of a comprehensive strategic review aimed at enhancing its offerings and aligning with evolving market conditions. The company reported a net loss of $1.2 million for the second quarter of 2025, compared to a net loss of $0.3 million in the first quarter of 2025 [1].

The Bolt loan program, an SBA 7(a) loan product designed to provide working capital loans of $150,000 or less, has been discontinued. The company has originated 6,745 Bolt loans totaling $869.9 million since its launch in 2022, with 538 Bolt loans totaling $67.9 million originated during the second quarter of 2025 [1]. The decision to end the program is part of a broader strategy to strengthen its core SBA 7 loan offerings and manage credit risk more effectively.

BayFirst Financial Corp. generates revenue primarily from interest on loans and gain-on-sale income. The company serves a diverse clientele and operates in various segments, including real estate, commercial and industrial, and consumer lending. The company reported a net interest margin of 4.06% in the second quarter of 2025, an increase of 29 basis points from the first quarter of 2025 and 63 basis points from the second quarter of 2024 [1].

The company has also expanded its net interest margin and kept controllable operating expenses in check during the second quarter of 2025. Credit challenges extended into the second quarter, with net charge-offs and fair value write-downs on Bolt SBA 7(a) loans increasing compared to the prior quarter. Despite these challenges, the company's core SBA and conventional commercial loan portfolio performance remains strong, and it continues to support its community bank operations [1].

BayFirst Financial Corp. has suspended common and preferred stock dividend payments and board of director fees in conjunction with its strategic review. The company is committed to strong loan oversight and maintaining close relationships with its borrowers to support their long-term success. It remains focused on growing core deposits and reducing its reliance on gains from the sale of government-guaranteed loans [1].

The company's strategic review is expected to provide additional information on its plans and the expected results in the coming weeks. BayFirst Financial Corp. is exploring options such as portfolio sales to reduce exposure to unguaranteed SBA balances and strengthen its balance sheet to take advantage of community banking opportunities [1].

References:
[1] https://www.morningstar.com/news/globe-newswire/9502370/bayfirst-financial-corp-reports-second-quarter-2025-results