BayFirst Financial Corp. (BAFN): Marketing Mix Analysis [Dec-2025 Updated]

You're trying to figure out if BayFirst Financial Corp.'s massive strategic pivot is a smart de-risking move or just a growth hiccup, and frankly, the numbers tell a compelling story about their new direction. Honestly, BayFirst Financial Corp. is exiting the national SBA 7(a) lending business entirely in Q4 2025 to double down on local, relationship-driven growth across the Tampa Bay-Sarasota region. This means their Product is now strictly local C&I and construction lending, while their Price strategy is clearly set on achieving a Net Interest Margin closer to 4% in 2026, despite the Q3 2025 NIM sitting at 3.61%. Let's break down exactly how this new local Place focus and relationship-driven Promotion will support that margin target; you'll want to see the full 4P analysis below.

BayFirst Financial Corp. (BAFN) - Marketing Mix: Product

The product offering of BayFirst Financial Corp. centers on its core community banking model, which you are focusing on after the strategic shift away from national government-guaranteed lending. This means the primary products are centered on serving individuals, families, and small businesses within the Tampa Bay region. The bank remains deeply committed to its community bank mission, offering a stable suite of financial products designed to create a more predictable, low-cost funding base.

The lending portfolio, as of the third quarter of 2025, stood at $998.7 million in loans held for investment, a decrease of 11.3% from the previous quarter, largely due to the reclassification of loans to held for sale as part of the restructuring. The remaining portfolio is diversified across key local segments. You should note that the largest segment within this portfolio is construction and development loans, which accounted for 24.9% of the total loan portfolio as of Q3 2025.

The core product suite for depositors is built around standard, stable accounts. As of September 30, 2025, total deposit balances reached $1.17 billion, an increase of $7.7 million or 0.7% for the quarter. You can see the composition of that deposit growth below:

• Time deposits increased by $53 million during the quarter.
• Noninterest-bearing accounts decreased by $3.8 million.
• Interest-bearing transaction account balances decreased by $27.9 million.
• Savings and money market account balances decreased by $13.7 million.
• More than 84% of the bank's deposits were insured by the FDIC on September 30, 2025.

For business clients, BayFirst Financial Corp. is emphasizing its local relationship-driven approach, which includes expanding fee income sources. The bank has enhanced its treasury management services significantly, aiming to service small, medium-sized, and large businesses through two online platforms. Treasury management fee income year-to-date in 2025 reached $69,000.

The product strategy involves a complete pivot away from the national SBA 7(a) lending business. BayFirst Financial Corp. signed a definitive agreement to sell $103 million of its SBA 7(a) loan balances to Banesco USA at 97% of retained balances, with the transaction expected to close in the fourth quarter of 2025. This sale resulted in a reported net loss of $5.1 million on the portion of the portfolio sold. Post-close, the product focus will be exclusively on:

• Tampa Bay-based commercial C&I loans.
• Consumer lending.
• Residential mortgage lending, all within the Tampa Bay area.
• A great deposit suite.

The loan portfolio composition as of Q3 2025, reflecting the shift and current focus, is detailed below:

The bank originated $27.9 million in new loans from its community banking operations during the third quarter of 2025.

BayFirst Financial Corp. (BAFN) - Marketing Mix: Place

You're looking at how BayFirst Financial Corp. gets its services into the hands of its customers. For a community bank, Place is all about physical proximity and digital reach within a defined area. BayFirst Financial Corp. has cemented its distribution strategy around a focused geographic footprint.

BayFirst Financial Corp. operates twelve full-service banking offices. This physical network is deliberately concentrated, with the primary geographic market being the local Tampa Bay-Sarasota area. This focus on the local region helps BayFirst Financial Corp. build the deep, relationship-driven connections that define community banking, which is central to its strategy.

The distribution strategy for BayFirst Financial Corp. relies on a dual approach: the established physical branch network combined with modern digital banking capabilities. This ensures accessibility whether a client prefers in-person service or remote transactions. The total deposit base, which is largely generated through this community bank in the Tampa Bay/Sarasota area, stood at $1.17 billion as of September 30, 2025.

Here is a quick look at the physical distribution points and the scale of the deposit base supporting that footprint as of late 2025:

The availability of services is managed through these key channels:

• Physical branch network across Tampa Bay and Sarasota.
• Full-service banking centers with on-site ATMs.
• Mobile and online banking platforms for remote access.
• Focus on core checking and savings accounts for relationship building.

While the prompt mentions a ranking, the latest public data confirms BayFirst Financial Corp. is a significant player in its core area, with its deposit growth strategy aimed at building a stable funding base from local individuals and small businesses. The physical locations serve as hubs for these essential relationship services. Honestly, for a bank this size, having 12 offices in a concentrated market is a substantial physical commitment.

BayFirst Financial Corp. (BAFN) - Marketing Mix: Promotion

BayFirst Financial Corp. (BAFN)'s promotional activities are currently centered on communicating a significant strategic pivot, reinforcing investor confidence through transparent reporting, and driving core customer acquisition through targeted incentives.

Strategic shift promotes a de-risked, local community bank mission.

The promotional narrative highlights the company's transition away from the SBA 7(a) lending business to focus on its core community bank model in the Tampa Bay-Sarasota region. This shift is positioned as a de-risking measure following a comprehensive strategic review initiated earlier in the year. BayFirst National Bank operates twelve full-service banking offices across this region. A key statistic used to promote stability is that as of September 30, 2025, more than 84% of the Bank's deposits were insured by the FDIC. The marketing message emphasizes building real relationships with local individuals, families, and small businesses through reliable checking and savings products.

Investor relations via conference calls, like the Q3 2025 call on October 31.

Investor communication is managed through scheduled conference calls to discuss financial performance and strategic updates. The Q3 2025 results were discussed on Friday, October 31, 2025, at 9:00 a.m. ET. The discussion centered on the restructuring efforts, which included exiting the SBA 7(a) business. The reported Q3 2025 net loss was $18.9 million, or $4.66 per common share, a substantial increase from the $1.2 million net loss, or $0.39 per share, reported in Q2 2025. As of September 30, 2025, BayFirst Financial Corp. reported total assets of $1.35 billion and total deposits of $1.17 billion, which represented a 5.3% increase over the past year.

Key financial and operational metrics discussed in the context of the strategic shift include:

Customer acquisition uses a Refer a Friend program up to $600 reward.

BayFirst Financial Corp. (BAFN) employs a direct incentive program to grow its customer base. The Refer a Friend program offers a reward of up to $600 per calendar year. For each qualifying referral that opens a personal or business account, both the referrer and the new customer receive a $150 Visa Virtual Reward upon meeting specified balance requirements within 60 days of account opening. There was a specific, time-bound promotion to enhance this offer.

The current referral reward structure includes:

• $150 reward for both parties on qualifying personal checking, savings, or money market accounts.
• $150 reward for both parties on qualifying business checking or money market accounts.
• A limited-time offer doubled the standard reward from $75 to $150 for select accounts between November 17, 2025, and December 31, 2025.

Marketing emphasizes a relationship-driven approach for stability.

The promotion of core banking services focuses on providing technology comparable to larger institutions while maintaining a personal touch. This relationship-driven approach is promoted through specific product features designed for customer convenience and stability of funding. The bank highlights its digital offerings to support banking on your terms.

Features promoted to solidify customer relationships include:

• Access to 55,000 free ATMs.
• The BayFirst Banking app for direct account management.
• Forward Pay feature, allowing customers to get paid 2 days early.
• The RoundUp feature for automatic savings transfers.
• Contactless debit cards.
• Free credit score monitoring.

BayFirst Financial Corp. (BAFN) - Marketing Mix: Price

You're looking at the pricing mechanics for BayFirst Financial Corp. (BAFN) as they navigate a major strategic pivot away from the national SBA 7(a) lending business. Pricing here is less about setting a shelf price and more about managing the cost of funds and the yield on the remaining assets, especially after the restructuring charges.

The reported Net Interest Margin (NIM) for the third quarter of 2025 was 3.61%. That represents a compression of 45 basis points quarter-over-quarter (QoQ) from the 4.06% seen in the second quarter of 2025. To counter this, the Cost of Funds showed some relief, decreasing to 3.71% in the third quarter of 2025. Honestly, managing that cost side is critical right now.

The core pricing strategy, post-exit announcement, targets securing lower-cost core deposits to help expand that margin back out. Management has signaled a forward-looking goal, targeting a NIM closer to 4% after the one-time items normalize and deposit costs decline in 2026. That's the target to keep your eye on.

On the asset side, the company made a decisive move to reprice risk by selling a portion of its legacy portfolio. BayFirst Financial Corp. sold SBA 7(a) loans at a 3% discount to retained balances. This transaction resulted in a stated net loss on that specific portion of $5.1 million in the third quarter of 2025, alongside a $7.3 million restructuring charge tied to the overall exit from that lending business.

Here's a quick look at how key balance sheet metrics shifted during this period of repricing and restructuring:

The strategic pricing actions are focused on these core areas for the transition:

• Targeting expansion of NIM toward 4% in 2026.
• Focusing on lower-cost core deposits for funding stability.
• Recognizing a 3% discount on the sale of SBA 7(a) loan balances.
• Reporting a net loss of $18.9 million for Q3 2025, including one-time charges.