BayFirst Financial Exits SBA 7(a) Lending Business in Strategic Shift

BayFirst Financial Corp., parent company of BayFirst National Bank, announced plans to exit the SBA 7(a) lending business and sell $103 million of SBA 7(a) loan balances to Banesco USA. This strategic move represents a fundamental shift in BayFirst's business model as the company seeks to derisk its balance sheet and position for long-term growth and enhanced shareholder value. The transaction, expected to close in the fourth quarter of this year, includes the sale of loans at 97% of retained balances with Banesco USA assuming servicing responsibilities for both the purchased loans and those BayFirst will continue to own.

Thomas G. Zernick, Chief Executive Officer of BayFirst, stated that the decision follows a comprehensive strategic review initiated earlier in the year. The exit from SBA 7(a) lending represents a significant milestone in the company's efforts to reposition itself for sustainable growth. While transitioning away from this business line, the majority of BayFirst's current SBA lending staff and support teams will be offered positions with Banesco USA, ensuring that the experienced team continues to support SBA lending operations under new ownership.

BayFirst's strategic pivot emphasizes a renewed commitment to its community bank mission, focusing on 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 aims to strengthen the bank's presence across the Tampa Bay region while creating opportunities to expand its community bank portfolio, deposit growth, and fee income sources such as treasury management services.

For Banesco USA, this transaction represents a strategic expansion into national SBA lending capabilities. Calixto (Cali) Garcia-Velez, President & CEO of Banesco USA, emphasized that the acquisition of BayFirst's SBA lending team and portfolio provides the infrastructure, expertise, and enhanced capabilities needed to deliver SBA lending on a national scale. As an independent, Florida state-chartered bank with over $5 billion in assets and eight locations across South Florida and Puerto Rico, Banesco USA recognizes small businesses as the backbone of the economy and views this transaction as aligning with its growth strategy to expand small business lending capabilities.

The transaction also establishes Banesco USA's presence in the Greater Tampa Bay region while positioning the bank to serve more small and mid-size companies across Florida and nationally. Beyond the SBA lending expansion, Banesco USA continues its growth trajectory fueled by investments in Commercial & Industrial, Business and Professional, International, and Commercial Real Estate lines of business. For more information about Banesco USA's services and operations, visit https://banescousa.com.