ST. PETERSBURG, Fla., Aug. 13, 2026 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. $(BAFN)$ ("BayFirst" or "Company"), parent company of BayFirst National Bank ("Bank") reported a net loss of $32.7 million, or $8.05 per common share and diluted common share, for the second quarter of 2026, compared to a restated net loss of $5.9 million, or $1.54 per common share and diluted common share, in the first quarter of 2026. The current quarter's net loss was driven by expenses related to the Company's asset resolution plan of $41.5 million.
"This quarter's results reflect the financial impact of actions taken under our asset resolution plan, a deliberate step we believe strengthens our balance sheet and will position us well for the future," stated Alfred Rogers, Chief Executive Officer. "Even as we absorbed this impact, we continued to invest in our Community Banking initiatives, including the upcoming opening of our newest branch in South Tampa, reflecting our long-term commitment to the markets we serve regardless of near-term conditions. We are taking a disciplined approach as we work through the issues affecting our performance, with a clear focus on the fundamentals of profitability and serving our local markets.
"We take our obligation to provide accurate and transparent financial reporting seriously. When we identified an understatement of provision expense and an overstatement of gain of sale on government guaranteed loans through our internal review process, we moved quickly to investigate, correct it, and inform our shareholders and regulators. The Bank remains well capitalized and well positioned to continue serving our customers and communities as we work toward improved performance.
"BayFirst's commitment to the communities we serve has not changed, and I am confident we will keep strengthening our position as the community bank of choice within our Tampa Bay and Sarasota markets."
Second Quarter 2026 Performance Review
-- The capital raise reported on April 28, 2026 was $80 million before
transaction fees. Of this total investment, $60 million was invested in
the Bank during the second quarter.
-- The Company completed and quantified the impact of the asset resolution
plan adopted in accordance with the transactions contemplated by the
Stock Purchase Agreement dated April 28, 2026. The asset resolution plan
includes the identification of specific loans within the Company's
government guaranteed loan portfolio, as well as adjustments to the net
amount expected to be collected on over 7,000 unguaranteed SBA 7(a) small
balance loans. As a result, the Company recorded $41.5 million of
provision expense, write-downs on loans measured at fair value,
amortization of premiums paid on purchased government guaranteed loans,
and impairment on nonmarketable securities during the quarter.
-- Net interest margin was 3.48% in the second quarter of 2026, an increase
of 4 basis points from 3.44% in the first quarter of 2026 and a decrease
of 53 basis points from 4.01% in the second quarter of 2025.
-- Loans held for investment decreased by $41.4 million, or 4.5%, during the
second quarter of 2026 to $882.8 million and decreased $237.7 million, or
21.2%, over the past year. The decrease from the prior year was partially
the result of no new SBA 7(a) loan originations and the sale of $97.4
million of government guaranteed loans to a third party as part of the
Bank's discontinuance of SBA 7(a) lending.
-- Deposits decreased $97.0 million, or 8.9%, during the second quarter of
2026 and decreased $174.9 million, or 15.0%, over the past year to $988.9
million. The decrease in deposits during the quarter was primarily due to
decreases in high-rate promotional interest-bearing transaction account
balances, savings and money market account balances, brokered deposits,
and time deposit balances, partially offset by an increase in
noninterest-bearing account balances.
-- At June 30, 2026, book value per common share was $4.83 and tangible book
value was $4.82 per common share, a decrease from $14.22 at March 31,
2026. The decrease was primarily the result of the net loss in the second
quarter 2026.
Results of Operations
Net Loss
The Company had a net loss of $32.7 million for the second quarter of 2026, compared to a net loss of $5.9 million in the first quarter of 2026 and a net loss of $1.9 million in the second quarter of 2025. The change in the second quarter of 2026 from the preceding quarter and from the second quarter of 2025 was primarily the result of $41.5 million of expense related to the asset resolution plan.
For the six months ended June 30, 2026, the Company had a net loss of $38.6 million, compared to a net loss of $2.8 million for the six months ended June 30, 2025. The decrease was primarily the result of $41.5 million expense related to the asset resolution plan.
Net Interest Income and Net Interest Margin
Net interest income was $9.4 million in the second quarter of 2026 was relatively unchanged compared to the first quarter of 2026, which is a decrease of $2.7 million from $12.1 million during the second quarter of 2025. The decrease in loan interest income, including fees, was primarily related to the write down of $1.6 million of unamortized premiums on the Company's portfolio of purchased fully guaranteed USDA loans which are at risk of default or early prepayment. The net interest margin was 3.48% in the second quarter of 2026, an increase of 4 basis points from 3.44% in the first quarter of 2026 and a decrease of 53 basis points from 4.01% in the second quarter of 2025. Excluding the write-downs, the net interest margin for the second quarter was 4.07%.
The decrease in net interest income during the second quarter of 2026, as compared to the year ago quarter, was mainly due to a decrease in loan interest income, including fees, of $6.4 million, partially offset by a decrease in interest expense on deposits of $2.4 million.
Net interest income was $18.9 million for the six months ended June 30, 2026, a decrease from $22.7 million for the year ended June 30, 2025. The decrease was mainly due to a decrease in loan interest income, including fees, of $9.9 million, partially offset by a decrease in interest expense of $4.9 million.
Noninterest Income
Noninterest income was a negative $6.8 million for the second quarter of 2026, compared to income of $0.9 million in the first quarter of 2026 and income of $10.5 million in the second quarter of 2025. The change from the second quarter of 2026, as compared to the first quarter of 2026, was primarily the result of a decrease in government guaranteed loan fair value gains of $5.9 million of which $6.2 million was related to the asset resolution plan. The decrease was also due to a loss on nonmarketable equity securities of $1.5 million which was related to the impairment of an investment in a firm who was a partner with the Company's former SBA 7(a) lending business. The decrease in the second quarter of 2026, as compared to the second quarter of 2025, was the result of a decrease in gain on sale of government guaranteed loans of $5.9 million and the loss on nonmarketable equity securities of $1.5 million.
Noninterest income was a negative $5.9 million for the six months ended June 30, 2026, which was a decrease from income of $19.0 million for the six months ended June 30, 2025. The decrease was primarily the result of a decrease in gain on sale of government guaranteed loans of $13.0 million, a decrease in government guaranteed loan fair value gains of $8.7 million, a decrease in government guaranteed loan packaging fees of $1.3 million, and the loss on nonmarketable equity securities of $1.5 million.
Noninterest Expense
Noninterest expense was $17.7 million in the second quarter of 2026 compared to $14.9 million in the first quarter of 2026 and $17.5 million in the second quarter of 2025. The increase in the second quarter of 2026, as compared to the prior quarter, was primarily due to $1.7 million of expenses related to the asset resolution plan and $2.3 million of one-time expenses to record a change in control payment and write-off vendor contracts related to national lending and digital account opening businesses which are not part of our community banking focus. The increase in the second quarter of 2026, as compared to the second quarter of 2025, was primarily due to an increase in loan servicing and origination expense of $0.6 million, an increase in data processing expenses of $0.6 million of which $1.4 million was related to the asset resolution plan, and an increase in other expense of $1.4 million of which $1.7 million was related to the asset resolution plan. These increases were partially offset by a decrease in compensation expense of $2.3 million which included $0.8 million of expense related to the asset resolution plan.
Noninterest expense was $32.6 million for the six months ended June 30, 2026 compared to $33.3 million for the six months ended June 30, 2025. The decrease was primarily the result of a decrease in compensation expense of $5.0 million, partially offset by an increase in loan servicing and origination expense of $3.4 million and an increase in other expense of $1.3 million.
Balance Sheet
Assets
Total assets decreased $54.7 million, or 4.6%, during the second quarter of 2026 to $1.13 billion, primarily the result of a decrease in loans held for investment of $41.4 million, an increase in allowance for credit losses on loans of $24.4 million, and an increase in the deferred tax asset of $11.4 million. Compared to the end of the second quarter last year, total assets decreased $202.5 million, or 15.1%, driven primarily by a decrease in loans held for investment of $237.7 million, and an increase in allowance for credit losses on loans of $28.0 million, partially offset by an increase in cash and cash equivalents of $61.9 million.
Loans
Loans held for investment decreased $41.4 million, or 4.5%, during the second quarter of 2026 and $237.7 million, or 21.2%, over the past year to $882.8 million. The decrease from prior year was primarily due to loan payoffs and government guaranteed loan sales, which included the sale of the SBA 7(a) loans to a third party in the fourth quarter as part of the Bank's discontinuance of SBA 7(a) lending. This was partially offset by originations in both conventional community bank loans and USDA government guaranteed loans.
Deposits
Deposits decreased $97.0 million, or 8.9%, during the second quarter of 2026 and decreased $174.9 million, or 15.0%, from the second quarter of 2025, ending June 30, 2026, at $988.9 million. During the second quarter, there were decreases in interest-bearing transaction account balances of $18.2 million, savings and money market account balances of $9.8 million, and time deposit balances of $74.2 million, partially offset by an increase in noninterest-bearing account balances of $5.3 million. The decrease in deposits during the quarter was primarily due to reductions in high-rate promotional deposits held with non-relationship customers and also a decrease in brokered deposits. During the second quarter, the Bank reduced cost of funds by 20 basis points. At June 30, 2026, March 31, 2026, and June 30, 2025, the Company had $163.8 million, $183.9 million, and $186.7 million, respectively, of brokered deposits.
Asset Quality
The Company recorded a provision for credit losses in the second quarter of $29.0 million, compared to provisions of $3.4 million for the first quarter of 2025 and $7.6 million during the second quarter of 2025. The increase in the provision expense was primarily the result of $30.5 million of expense related to the asset resolution plan.
The ratio of allowance for credit losses (ACL) on loans to total loans held for investment at amortized cost was 5.37% at June 30, 2026, 2.36% as of March 31, 2026, and 1.65% as of June 30, 2025. The ratio of ACL on loans to total loans held for investment at amortized cost, excluding government guaranteed loan balances, was 5.82% at June 30, 2026, 2.55% as of March 31, 2026, and 1.86% as of June 30, 2025. The increase in ACL percentage was the result of provision expense booked during the quarter as determined by the asset resolution plan.
Net charge-offs for the second quarter of 2026 were $4.5 million, which was a decrease from $4.7 million for the first quarter of 2025 and a decrease from $7.1 million for the second quarter of 2025. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 2.08% for the second quarter of 2026, compared to 2.14% in the first quarter of 2025 and 2.74% in the second quarter of 2025. Nonperforming assets were 1.75% of total assets as of June 30, 2026, compared to 2.01% as of March 31, 2026, and 1.79% as of June 30, 2025. Nonperforming assets, excluding government guaranteed loan balances, were 1.32% of total assets as of June 30, 2026, compared to 1.39% as of March 31, 2026, and 1.13% as of June 30, 2025.
Capital
The Bank's Tier 1 leverage ratio was 8.30% as of June 30, 2026, compared to 5.89% as of March 31, 2026, and 7.73% as of June 30, 2025. The CET 1 and Tier 1 capital ratios to risk-weighted assets were 11.47% as of June 30, 2026, compared to 7.74% as of March 31, 2026, and 9.51% as of June 30, 2025. The total capital to risk-weighted assets ratio was 12.77% as of June 30, 2026, compared to 9.00% as of March 31, 2026, and 10.77% as of June 30, 2025. At June 30, 2026, the Bank met all of its regulatory capital requirements to be well-capitalized.
The Bank's overall liquidity position remains strong and stable with liquidity in excess of internal minimums as stated by policy and monitored by management and the Board. The on-balance sheet liquidity ratio at June 30, 2026 was 14.95%, as compared to 18.44% at December 31, 2025. The Bank has liquidity resources which include secured borrowings available from the Federal Home Loan Bank, the Federal Reserve, and lines of credit with other financial institutions. As of June 30, 2026 and March 31, 2026, the Bank had no borrowings from the FHLB, the FRB or other financial institutions.
Recent Events
Restatement of Previously Issued Financial Statements
As previously disclosed in the Current Report on Form 8-K filed with the SEC on July 15, 2026, the Company is restating its previously issued financial statements as and for the years ended December 31, 2024, and December 31, 2025, and the quarter ended March 31, 2026.
Management identified $2.8 million, pretax, of deferred origination costs and $2.1 million, pretax, of accrued interest as of March 31, 2026, related to unguaranteed portions of SBA 7(a) loans which had defaulted or were placed into nonaccrual status in prior periods, which resulted in a material understatement of provision for credit losses expense and overstatement of net interest income during the effected quarterly periods in which the errors accumulated in 2024, 2025, and the first quarter of 2026. Furthermore, management identified $3.4 million, pretax, of deferred origination costs which should have been netted against gain on sale of guaranteed SBA 7a loans which resulted in a material over statement of gain on sale of government guaranteed loans, during the affected quarterly periods in which the error accumulated in 2024 and 2025.
Stock Purchase and Exchange Agreements and Rights Offering
On July 14, 2026, the Company obtained shareholder approval to amend the BayFirst Financial Corp. Articles of Incorporation to increase the number of authorized shares of the common stock from 15,000,000 to 100,000,000 and exchanged all 4,000 outstanding shares of Mandatorily Convertible Cumulative Perpetual Preferred Stock, Series D, and all 4,000 outstanding shares of Mandatorily Convertible Cumulative Perpetual Preferred Stock, Series E for a total of 22,856,000 shares of common stock. Upon conversion, all shares of Series D and Series E Preferred Stock were retired. Management also noted a Mid-August launch date for the rights offering, discussed in the Stock Purchase Agreement included with the Company's Form 8-K and the exhibits dated April 28, 2026, and filed with the Securities and Exchange Commission on April 30, 2026.
Redemption of Series A and Series B Preferred Shares
On July 20, 2026, the Company sent notifications to holders of Series A and Series B Preferred Shares formally redeeming all shares outstanding. On August 10, 2026, the Company made a payment in the amount of $6,463,746.25 for Preferred Series A, including accrued dividends of $302,746.25, and payment in the amount of $3,240,687.60 for Preferred Series B, including accrued dividends of $117,687.60.
Conference Call
BayFirst will host a conference call on Friday, August 14, 2026, at 9:00 a.m. ET to discuss its second quarter results. Interested parties may listen to the call live under the Investor Relations tab at www.bayfirstfinancial.com or are invited to dial (833) 461-5787 to participate in the call using Conference ID 560643219. A replay of the call will be available for one year at www.bayfirstfinancial.com.
About BayFirst Financial Corp.
BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida which commenced operations on September 1, 2000. Its primary source of income is derived from its wholly owned subsidiary, BayFirst National Bank, a national banking association which commenced business operations on February 12, 1999. The Bank currently operates eleven full-service banking offices throughout the Tampa Bay-Sarasota region and offers a broad range of commercial and consumer banking services to businesses and individuals. As of June 30, 2026, BayFirst Financial Corp. had $1.13 billion in total assets.
Forward-Looking Statements
In addition to the historical information contained herein, this presentation includes "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. These statements are subject to many risks and uncertainties, including, but not limited to, the effects of health crises, global military hostilities, weather events, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets and credit quality; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; enforcement actions initiated by our regulators and their impact on our operations; and other risks detailed from time to time in filings made by the Company with the SEC, including, but not limited to those "Risk Factors" described in our most recent Form 10-K and Form 10-Q. Readers should note that the forward-looking statements included herein are not a guarantee of future events, and that actual events may differ
materially from those made in or suggested by the forward-looking statements.
Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this document, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
Contacts: Contact: Alfred T. Rogers, Jr. Scott J. McKim Chief Executive Officer and President Chief Financial Officer 727.685.2097 727.521.7085
BAYFIRST FINANCIAL CORP.
SELECTED FINANCIAL DATA (Unaudited)
At or for the three months ended
------------------------------------------------------------------------------
(Dollars in thousands,
except for share data) 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025
-------------- -------------- -------------- -------------- --------------
As restated As restated As restated As restated
Net loss $ (32,665) $ (5,930) $ (2,696) $ (19,077) $ (1,854)
Balance sheet data:
Average loans held for
investment at
amortized cost 858,931 881,938 933,401 1,054,946 1,042,247
Average total assets 1,185,392 1,213,823 1,328,923 1,339,795 1,316,901
Average common
shareholders' equity 67,624 64,448 67,481 86,976 89,452
Government guaranteed
loans held for sale -- -- -- 94,052 --
Total loans held for
investment 882,840 924,220 958,014 993,109 1,120,499
Total loans held for
investment, excl gov't
gtd loan balances 805,684 849,157 887,885 917,816 967,642
Allowance for credit
losses 45,081 20,632 21,996 24,485 17,041
Total assets 1,134,925 1,189,671 1,294,269 1,340,222 1,337,391
Total deposits 988,874 1,085,869 1,183,938 1,171,457 1,163,796
Common shareholders'
equity 19,850 58,421 64,758 67,921 86,591
Share data:
Basic loss per common
share $ (8.05) $ (1.54) $ (0.75) $ (4.71) $ (0.54)
Diluted loss per common
share (8.05) (1.54) (0.75) (4.71) (0.54)
Dividends per common
share -- -- -- -- 0.08
Book value per common
share 4.83 14.22 15.76 16.50 20.95
Tangible book value per
common share (1) 4.82 14.22 15.76 16.50 20.95
Performance ratios:
Return on average
assets(2) (11.02)% (1.95)% (0.81)% (5.70)% (0.56)%
Return on average
common equity(2) (195.50)% (39.19)% (18.26)% (89.51)% (10.02)%
Net interest margin(2) 3.48% 3.44% 3.60% 3.64% 4.01%
Asset quality ratios:
Net charge-offs $ 4,460 $ 4,719 $ 4,865 $ 3,544 $ 7,142
Net charge-offs/avg
loans held for
investment at
amortized cost(2) 2.08% 2.14% 2.08% 1.34% 2.74%
Nonperforming loans(3) $ 18,457 $ 21,453 $ 24,343 $ 24,687 $ 21,665
Nonperforming loans
(excluding gov't gtd
balance)(3) $ 14,434 $ 15,873 $ 16,271 $ 15,822 $ 14,187
Nonperforming
loans/total loans held
for investment(3) 2.20% 2.46% 2.69% 2.65% 2.10%
Nonperforming loans
(excl gov't gtd
balance)/total loans
held for
investment(3) 1.72% 1.82% 1.80% 1.70% 1.38%
ACL/Total loans held
for investment at
amortized cost 5.37% 2.36% 2.43% 2.63% 1.65%
ACL/Total loans held
for investment at
amortized cost, excl
government guaranteed
loans 5.82% 2.55% 2.60% 2.80% 1.86%
Other Data:
Full-time equivalent
employees 148 143 144 237 300
Banking center offices 11 12 12 12 12
(1) See section entitled "GAAP Reconciliation and
Management Explanation of Non-GAAP Financial Measures"
below for a reconciliation to most comparable GAAP
equivalent.
(2) Annualized
(3) Excludes loans
measured at fair
value
Reconciliation and Management Explanation of Non-GAAP Financial Measures
Some of the financial measures included in this report are not measures of financial condition or performance recognized by GAAP. These non-GAAP financial measures include adjusted income before income taxes, tangible common shareholders' equity, and tangible book value per common share. Our management uses these non-GAAP financial measures in its analysis of our performance, and we believe that providing this information to financial analysts and investors allows them to evaluate capital adequacy.
The following presents the calculation of the non-GAAP financial measures.
Adjusted loss before income Three Months Ended Six Months Ended
taxes June 30, 2026 June 30, 2026
---------------------- --------------------
Loss before income taxes as
reported $ (44,040) $ (52,006)
Less: Asset resolution plan
expense
Interest income on
loans, including fees 1,616 1,616
Provision for credit
losses 30,510 30,510
Noninterest income 7,700 7,700
Noninterest expense 1,720 1,720
-------------- -------------
Total Asset resolution
plan expense 41,546 41,546
-------------- -------------
Adjusted loss before income
taxes $ (2,494) $ (10,460)
============== =============
Tangible Common Shareholders' Equity and Tangible
Book Value Per Common Share (Unaudited)
-------------------------------------------------------------------------------------------
As of
(Dollars in thousands, June 30, March 31, December September
except for share data) 2026 2026 31, 2025 30, 2025 June 30, 2025
----------- ----------- ----------- ----------- -------------
As restated As restated As restated As restated
Total shareholders'
equity $ 115,901 $ 75,628 $ 81,580 $ 83,972 $ 102,642
Less: Preferred stock
liquidation preference (96,051) (17,207) (16,822) (16,051) (16,051)
--------- --------- --------- --------- ---------
Total equity available
to common shareholders 19,850 58,421 64,758 67,921 86,591
Less: Intangible assets (62) -- -- -- --
--------- --------- --------- --------- ---------
Tangible common
shareholders' equity $ 19,788 $ 58,421 $ 64,758 $ 67,921 $ 86,591
========= ========= ========= ========= =========
Common shares
outstanding 4,106,905 4,108,072 4,108,069 4,116,913 4,134,127
Tangible book value per
common share $ 4.82 $ 14.22 $ 15.76 $ 16.50 $ 20.95
BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS (Unaudited)
(Dollars in thousands) 6/30/2026 3/31/2026 6/30/2025
----------- ----------- -------------
Assets As restated As restated
Cash and due from banks $ 5,641 $ 6,848 $ 6,142
Interest-bearing
deposits in banks 133,524 127,617 71,157
--------- --------- ---------
Cash and cash
equivalents 139,165 134,465 77,299
Time deposits in banks -- -- 1,280
Investment securities
available for sale, at
fair value (amortized
cost $30,591, $31,268,
and $33,410 at June 30,
2026, March 31, 2026,
and June 30, 2025,
respectively) 27,778 28,531 30,256
Investment securities
held to maturity, at
amortized cost, net of
allowance for credit
losses of $7, $9, and
$9 (fair value: $2,371,
$2,378, and $2,369 at
June 30, 2026, March
31, 2026, and June 30,
2025, respectively) 2,493 2,491 2,491
Nonmarketable equity
securities 3,164 4,662 6,551
Government guaranteed
loans held for
investment, at fair
value 43,847 51,807 90,687
Loans held for
investment, at
amortized cost 838,993 872,413 1,029,812
Allowance for credit
losses on loans (45,081) (20,632) (17,041)
--------- --------- ---------
Net Loans held for
investment, at
amortized cost 793,912 851,781 1,012,771
Accrued interest
receivable 5,127 5,570 7,360
Premises and equipment,
net 30,245 30,690 32,407
Loan servicing rights 9,942 11,334 16,074
Deferred income tax
assets 21,253 9,862 247
Right-of-use operating
lease assets 13,720 14,171 15,160
Bank owned life
insurance 27,654 27,457 26,881
Other real estate owned 532 400 400
Other assets 16,093 16,450 17,527
--------- --------- ---------
Total assets $1,134,925 $1,189,671 $1,337,391
========= ========= =========
Liabilities:
Noninterest-bearing
deposit accounts $ 116,788 $ 111,476 $ 109,698
Interest-bearing
transaction accounts 135,628 153,860 238,215
Savings and money market
deposit accounts 422,933 432,781 493,005
Time deposits 313,525 387,752 322,878
--------- --------- ---------
Total deposits 988,874 1,085,869 1,163,796
FHLB borrowings -- -- 40,000
Subordinated debentures 5,966 6,099 5,959
Notes payable 1,252 1,479 1,707
Accrued interest payable 597 958 1,148
Operating lease
liabilities 12,694 13,003 13,819
Accrued expenses and
other liabilities 9,641 6,635 8,320
--------- --------- ---------
Total liabilities 1,019,024 1,114,043 1,234,749
--------- --------- ---------
Shareholders' equity: As restated As restated
Preferred stock, Series
A; no par value, 10,000
shares authorized,
6,395 shares issued and
outstanding at June 30,
2026, March 31, 2026,
and June 30, 2025;
aggregate liquidation
preference of $6,395 at
June 30, 2026, March
31, 2026 and June 30,
2025 6,161 6,161 6,161
Preferred stock, Series
B; no par value, 20,000
shares authorized,
3,210 shares issued and
outstanding at June 30,
2026, March 31, 2026,
and June 30, 2025;
aggregate liquidation
preference of $3,210 at
June 30, 2026, March
31, 2026 and June 30,
2025 3,123 3,123 3,123
Preferred stock, Series
C; no par value, 10,000
shares authorized,
6,446 shares issued and
outstanding at June 30,
2026, March 31, 2026,
and June 30, 2025;
aggregate liquidation
preference of $6,446 at
June 30, 2026, March
31, 2026 and June 30,
2025 6,446 6,446 6,446
Preferred stock, Series D;
no par value, 4,000 shares
authorized, issued and
outstanding at June 30,
2026 and no shares
authorized, issued and
outstanding at March 31,
2026 and June 30, 2025;
aggregate liquidation
preference of $40,000 at
June 30, 2026 37,254 -- --
Preferred stock, Series E;
no par value, 4,000 shares
authorized, issued and
outstanding at June 30,
2026 and no shares
authorized, issued and
outstanding at March 31,
2026 and June 30, 2025;
aggregate liquidation
preference of $40,000 at
June 30, 2026 37,254 -- --
Common stock and
additional paid-in
capital; no par value,
15,000,000 shares
authorized, 4,106,905,
4,108,072, and
4,134,127 shares issued
and outstanding at June
30, 2026, March 31,
2026, and June 30,
2025, respectively 54,382 54,390 54,739
Accumulated other
comprehensive loss,
net (2,111) (2,054) (2,368)
Unearned compensation (245) (282) (1,006)
Retained earnings (26,363) 7,844 35,547
--------- --------- ---------
Total shareholders'
equity 115,901 75,628 102,642
--------- --------- ---------
Total liabilities and
shareholders' equity $1,134,925 $1,189,671 $1,337,391
========= ========= =========
BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
For the Quarter Ended Year-to-Date
(Dollars in thousands,
except per share data) 6/30/2026 3/31/2026 6/30/2025 6/30/2026 6/30/2025
--------- ----------- ----------- --------- -------------
Interest income: As restated As restated As restated
Loans, including
fees $ 14,803 $ 15,921 $ 21,238 $ 30,724 $ 40,600
Interest-bearing
deposits in banks
and other 1,562 1,509 1,046 3,071 1,980
------- ------ ------ ------- ------
Total interest income 16,365 17,430 22,284 33,795 42,580
Interest expense:
Deposits 6,850 7,893 9,282 14,743 18,713
Other 93 97 875 190 1,130
------- ------ ------ ------- ------
Total interest
expense 6,943 7,990 10,157 14,933 19,843
------- ------ ------ ------- ------
Net interest income 9,422 9,440 12,127 18,862 22,737
Provision for credit
losses 28,977 3,404 7,607 32,381 12,167
------- ------ ------ ------- ------
Net interest income
after provision for
credit losses (19,555) 6,036 4,520 (13,519) 10,570
------- ------ ------ ------- ------
Noninterest income:
Loan servicing
income, net 588 770 484 1,358 1,220
Gain (loss) on sale
of government
guaranteed loans,
net -- (97) 5,872 (97) 12,936
Service charges and
fees 497 490 473 987 922
Government
guaranteed loans
fair value loss,
net (6,468) (533) 2,442 (7,001) 1,687
Government
guaranteed loan
packaging fees -- -- 577 -- 1,293
Loss on
nonmarketable
securities (1,500) -- -- (1,500) --
Gain on sale of
premises and
equipment (34) 13 -- (21) --
Other noninterest
income 108 241 683 349 961
------- ------ ------ ------- ------
Total noninterest
income (6,809) 884 10,531 (5,925) 19,019
Noninterest Expense:
Salaries and
benefits 5,332 5,069 8,113 10,401 16,111
Bonus, commissions,
and incentives 741 290 262 1,031 333
Occupancy and
equipment 1,352 1,368 1,579 2,720 3,213
Data processing 2,649 1,489 2,078 4,138 4,123
Marketing and
business
development 157 123 403 280 890
Professional
services 1,172 1,164 782 2,336 1,514
Loan servicing and
origination
expense 3,122 3,836 2,558 6,958 3,593
Employee recruiting
and development 248 202 462 450 1,079
Regulatory
assessments 611 578 352 1,189 691
Other noninterest
expense 2,292 767 939 3,059 1,794
------- ------ ------ ------- ------
Total noninterest
expense 17,676 14,886 17,528 32,562 33,341
Loss before taxes (44,040) (7,966) (2,477) (52,006) (3,752)
Income tax expense
(benefit) (11,375) (2,036) (623) (13,411) (960)
------- ------ ------ ------- ------
Net loss (32,665) (5,930) (1,854) (38,595) (2,792)
Preferred dividends 386 385 386 771 771
------- ------ ------ ------- ------
Net loss attributable
to common
shareholders $(33,051) $ (6,315) $ (2,240) $(39,366) $ (3,563)
------- ------ ------ ------- ------
Basic loss per common
share $ (8.05) $ (1.54) $ (0.54) $ (9.58) $ (0.86)
------- ------ ------ ------- ------
Diluted loss per common
share $ (8.05) $ (1.54) $ (0.54) $ (9.58) $ (0.86)
======= ====== ====== ======= ======
Loan Composition
(Dollars in thousands) 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025
------------- ---------------- ------------ ---------------- ----------------
Unaudited/As Unaudited/As Unaudited/As
(Unaudited) restated As Restated restated restated
Real estate:
Residential $ 353,716 $ 359,305 $ 365,427 $ 364,020 $ 356,559
Commercial 211,518 216,643 215,771 231,039 292,923
Construction and
land 38,095 36,732 48,397 43,700 53,187
Commercial and
industrial 158,077 171,666 181,566 194,654 223,239
Commercial and
industrial - PPP -- 6 6 13 191
Consumer and other 73,567 82,269 86,441 90,946 93,333
-------- -------- ------- -------- ---------
Loans held for
investment, at
amortized cost, gross 834,973 866,621 897,608 924,372 1,019,432
Deferred loan costs,
net 8,338 9,353 10,491 11,522 15,818
Discount on government
guaranteed loans (5,107) (6,007) (6,811) (7,506) (8,780)
Premium on loans
purchased, net 789 2,446 2,650 2,941 3,342
-------- -------- ------- -------- ---------
Loans held for
investment, at
amortized cost, net 838,993 872,413 903,938 931,329 1,029,812
Government guaranteed
loans held for
investment, at fair
value 43,847 51,807 54,076 61,780 90,687
-------- -------- ------- -------- ---------
Total loans held for
investment, net $ 882,840 $ 924,220 $ 958,014 $ 993,109 $ 1,120,499
======== ======== ======= ======== =========
Nonperforming Assets (Unaudited)
(Dollars in thousands) 6/30/2026 3/31/2026 12/31/2025 9/30/2025 6/30/2025
----------- ----------- -------------- ----------- -----------
As Restated As Restated As Restated As Restated
Nonperforming loans
(government guaranteed
balances), at
amortized cost, gross $ 4,023 $ 5,580 $ 8,072 $ 8,865 $ 7,478
Nonperforming loans
(unguaranteed
balances), at
amortized cost, gross 14,434 15,873 16,271 15,822 14,187
------ ------ ------ ------ ------
Total nonperforming
loans, at amortized
cost, gross 18,457 21,453 24,343 24,687 21,665
------ ------ ------ ------ ------
Nonperforming loans
(government guaranteed
balances), at fair
value -- 208 83 -- 502
Nonperforming loans
(unguaranteed
balances), at fair
value 443 1,230 1,453 1,385 1,430
------ ------ ------ ------ ------
Total nonperforming
loans, at fair value 443 1,438 1,536 1,385 1,932
------ ------ ------ ------ ------
OREO 532 400 400 400 400
Repossessed assets 466 583 263 32 --
------ ------ ------ ------ ------
Total nonperforming
assets, gross $19,898 $23,874 $ 26,542 $26,504 $23,997
====== ====== ====== ====== ======
Nonperforming loans as
a percentage of total
loans held for
investment(1) 2.20% 2.46% 2.69% 2.65% 2.10%
Nonperforming loans
(excluding government
guaranteed balances)
to total loans held
for investment(1) 1.72% 1.82% 1.80% 1.70% 1.38%
Nonperforming assets as
a percentage of total
assets 1.75% 2.01% 2.05% 1.98% 1.79%
Nonperforming assets
(excluding government
guaranteed balances)
to total assets 1.32% 1.39% 1.29% 1.21% 1.13%
ACL to nonperforming
loans(1) 244.24% 96.17% 90.35% 99.18% 78.66%
ACL to nonperforming
loans (excluding
government guaranteed
balances)(1) 312.32% 129.98% 135.18% 154.75% 120.12%
(1) Excludes loans measured at fair value