BayFirst Financial announces exit from SBA 7(a) business, $103M loan sale

BayFirst Financial (BAFN) announced plans to exit the SBA 7a lending business and sell $103 million of SBA 7(a) loan balances to Banesco USA. “As we announced earlier in the year, Management and the Board initiated a comprehensive strategic review aimed at derisking SBA 7(a) balances on the balance sheet and positioning the Company for long-term growth and enhanced shareholder value,” stated Thomas G. Zernick, Chief Executive Officer. “Today marks a significant milestone in our efforts. BayFirst has signed a definitive agreement to sell $103 million in SBA 7(a) loans to Banesco USA. In conjunction with this agreement, BayFirst will exit the SBA 7(a) lending business, and the majority of our current SBA lending staff and support teams will be offered positions with Banesco USA. We expect the transaction to close in the fourth quarter of this year. The loans will be sold at 97% of retained balances and Banesco USA will assume servicing of these loans. Furthermore, Banesco USA will also purchase for book value the servicing rights associated with the purchased loans and will conduct servicing for all SBA loans that BayFirst will continue to own. While we are transitioning away from SBA 7(a) lending, I am pleased that our highly experienced team will continue to support SBA lending at Banesco USA. We remain deeply committed to our community bank mission – serving individuals, families, and small businesses with stable checking and savings products that contribute to a more predictable, low-cost funding base. This relationship driven approach continues to strengthen our presence across the vibrant Tampa Bay region and creates opportunities to expand our community bank portfolio, deposit growth, and fee income sources like treasury management services.”