BayFirst Financial in St. Petersburg, Fla., plans to get out of Small Business Administration lending.
The $1.3 billion-asset company said in a press release that it will sell about $103 million of SBA 7(a) loan balances to the $5.2 billion-asset Banesco USA. The loans will be sold at 97% of their retained balances; Banesco USA will assume servicing.
Banesco USA will also buy, at book value, the servicing rights tied to the loans. The sales are expected to close in the fourth quarter.
“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,” Thomas Zernick, BayFirst’s CEO, said in the release.