| | | | | |
| 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. Reports Third Quarter 2026 Results
Net Interest Margin Expansion, 25% Growth in Community Bank Lending, and Significant Credit Improvement
ST. PETERSBURG, FL. — October 29, 2026 — BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or “Company”), parent company of BayFirst National Bank (“Bank”) reported a net loss of $0.7 million, or $0.04 per common share and diluted common share, for the third quarter of 2026, compared to a net loss of $32.7 million, or $8.05 per common share and diluted common share, in the second quarter of 2026.
“In the second quarter we took deliberate steps under our asset resolution plan to strengthen our balance sheet, and this quarter’s results show those actions are beginning to pay off,” stated Al Rogers, Chief Executive Officer. “Total community bank loans, excluding the government guaranteed portfolio, grew $41.9 million over the prior quarter, or 25% annualized, a key highlight that reflects strong demand and the trust our customers place in us. Net interest margin improved 59 basis points from the prior quarter, and for the first time in nearly three years, deposit growth outpaced loan growth, a clear sign that our relationship-focused approach is strengthening our funding base. While we did report a loss for the third quarter, it was a significant improvement over prior periods. Our strengthened foundation positions us for continued improvement in the coming quarters as we remain focused on achieving sustained profitability.
“We are also encouraged by the continued improvement in asset quality,” Rogers continued. “Nonperforming assets declined as percentage of total assets, and net charge-offs were lower than in the prior quarter, further evidence that our asset resolution efforts are working. Through it all, our focus on the communities we serve remains unwavering, and I am confident we will continue to build on our standing as the community bank of choice in our Tampa Bay and Sarasota markets.”
Third Quarter 2026 Performance Review
•Net interest margin was 4.07% in the third quarter of 2026, an increase of 59 basis points from 3.48% in the second quarter of 2026 and an increase of 43 basis points from 3.64% in the third quarter of 2025.
•Total loans held for investment increased by $20.1 million, or 2.3%, during the third quarter of 2026 to $903.0 million and decreased $90.1 million, or 9.1%, 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 increased $25.3 million, or 2.6%, during the third quarter of 2026 and decreased $157.3 million, or 13.4%, over the past year to $1.01 billion. The increase in deposits during the quarter was primarily due to increases in noninterest-bearing account balances, interest-bearing transaction account balances, savings and money market account balances, partially offset by a decrease in time deposit balances. The decrease in deposits over the past year was primarily due to decreases in high-rate promotional deposits held with non-relationship customers and brokered deposits.
•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
BayFirst Financial Corp. Reports Third Quarter 2026 Results
October 29, 2026
Page 2
Preferred Stock, Series D, and exchanged 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.
•On August 13, 2026, the Company redeemed all outstanding Series A and Series B Preferred Shares in the amount of $6,464 for Preferred Series A, including accrued dividends of $303, and $3,241 for Preferred Series B, including accrued dividends of $118.
•At September 30, 2026, book value and tangible book value was $3.64 per common share, a decrease from $4.82 at June 30, 2026.
Results of Operations
Net Loss
The Company had a net loss of $0.7 million for the third quarter of 2026, compared to a net loss of $32.7 million in the second quarter of 2026 and a net loss of $19.1 million in the third quarter of 2025. The change in the third quarter of 2026 from the preceding quarter was primarily the result of $41.5 million of expense in the second quarter of 2026 related to the asset resolution plan. The change from the third quarter of 2025 was the due to decreases in provision for credit losses of $11.2 million and noninterest expense of $12.4 million, and an increase in noninterest income of $2.2 million, partially offset with a decrease in income tax benefit of $6.7 million.
For the nine months ended September 30, 2026, the Company had a net loss of $39.3 million, compared to a net loss of $21.9 million for the nine months ended September 30, 2025. The change was primarily due to decreases in net interest income of $4.6 million and noninterest income of $22.8 million and increases in provision for credit losses of $13.5 million and noninterest expense of $13.2 million, partially offset by income tax benefit of $5.7 million.
Net Interest Income and Net Interest Margin
Net interest income was $10.6 million in the third quarter of 2026, which was an increase of $1.2 million from $9.4 million for the second quarter of 2026, and a decrease of $0.7 million from $11.3 million during the third quarter of 2025. The net interest margin was 4.07% in the third quarter of 2026, an increase of 59 basis points from 3.48% in the second quarter of 2026 and an increase of 43 basis points from 3.64% in the third quarter of 2025.
The increase in net interest income during the third quarter of 2026, as compared to the second quarter of 2026, was mainly due to an increase in loan interest income, including fees, of $1.1 million.
The decrease in net interest income during the third quarter of 2026, as compared to the year ago quarter, was mainly due to a decrease in loan interest income, including fees, of $4.8 million, partially offset by a decrease in interest expense on deposits of $3.1 million.
Net interest income was $29.5 million for the nine months ended September 30, 2026, a decrease from $34.1 million for the nine months ended September 30, 2025. The decrease was mainly due to a decrease in loan interest income, including fees, of $14.7 million, partially offset by a decrease in interest expense of $8.7 million.
Noninterest Income
Noninterest income was $1.1 million for the third quarter of 2026, compared to negative income of $6.8 million in the second quarter of 2026 and negative income of $1.1 million in the third quarter of 2025. The change from the third quarter of 2026, as compared to the second quarter of 2026, was primarily the result of a 99.41% decrease in government guaranteed loan fair value losses of $6.4 million and second quarter 2026 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 increase in the third quarter of 2026, as compared to the third quarter of 2025, was the result of a third quarter 2025 fair value adjustment on loans held for sale of $5.1 million, partially offset by a decrease in gain on sale of government guaranteed loans of $3.0 million.
Noninterest income was a negative $4.8 million for the nine months ended September 30, 2026, which was a decrease from income of $17.9 million for the nine months ended September 30, 2025. The decrease was primarily the result of a decrease in gain on sale of government guaranteed loans of $16.1 million, a decrease in government guaranteed loan fair value gains of $7.8 million, a decrease in government guaranteed loan packaging fees of $1.7 million and second
BayFirst Financial Corp. Reports Third Quarter 2026 Results
October 29, 2026
Page 3
quarter 2026 loss on nonmarketable equity securities of $1.5 million, partially offset by a 2025 fair value adjustment on loans held for sale of $5.1 million.
Noninterest Expense
Noninterest expense was $12.8 million in the third quarter of 2026 compared to $17.7 million in the second quarter of 2026 and $25.2 million in the third quarter of 2025. The decrease in the third quarter of 2026, as compared to the prior quarter, was primarily due $1.7 million of expenses in the second quarter of 2026 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 decrease in the third quarter of 2026, as compared to the third quarter of 2025, was primarily due to the third quarter 2025 restructuring expense of $7.3 million, and a decrease in compensation expense of $3.1 million.
Noninterest expense was $45.4 million for the nine months ended September 30, 2026 compared to $58.6 million for the nine months ended September 30, 2025. The decrease was primarily the result of the third quarter 2025 restructuring expense of $7.3 million, a decrease in compensation expense of $8.1 million, partially offset by an increase in loan servicing and origination expense of $3.1 million.
Balance Sheet
Assets
Total assets increased $13.0 million, or 1.1%, during the third quarter of 2026 to $1.15 billion, primarily the result of an increase in loans held for investment of $20.1 million, and a decrease in allowance for credit losses on loans of $3.3 million, partially offset by a decrease in cash and cash equivalents of $10.8 million. Compared to the end of the third quarter last year, total assets decreased $192.3 million, or 14.3%, driven primarily by a decrease in loans held for investment and held for sale of $184.2 million, and an increase in allowance for credit losses on loans of $17.3 million, partially offset by an increase in cash and cash equivalents of $9.8 million and an increase in deferred tax asset of $14.8 million.
Loans
Loans held for investment increased $20.1 million, or 2.3%, during the third quarter of 2026 and decreased $90.1 million, or 9.1%, over the past year to $903.0 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 increased $25.3 million, or 2.6%, during the third quarter of 2026 and decreased $157.3 million, or 13.4%, from the third quarter of 2025, ending September 30, 2026, at $1.01 billion. During the third quarter, there was a decrease in time deposit balances of $8.7 million, partially offset by increases in noninterest-bearing account balances of $4.4 million, interest-bearing transaction account balances of $6.9 million, and savings and money market account balances of $22.6 million. At September 30, 2026, June 30, 2026, and September 30, 2025, the Company had $165.7 million, $163.8 million, and $235.9 million, respectively, of brokered deposits.
Asset Quality
The Company recorded a provision for credit losses in the third quarter of negative $0.1 million, compared to provisions of $29.0 million for the second quarter of 2026 and $11.2 million during the third quarter of 2025. The decrease in the provision expense was primarily the result of $30.5 million of expense related to the asset resolution plan recorded in the second quarter of 2026.
The ratio of allowance for credit losses (ACL) on loans to total loans held for investment at amortized cost was 4.85% at September 30, 2026, 5.37% as of June 30, 2026, and 2.63% as of September 30, 2025. The ratio of ACL on loans to
BayFirst Financial Corp. Reports Third Quarter 2026 Results
October 29, 2026
Page 4
total loans held for investment at amortized cost, excluding government guaranteed loan balances, was 5.20% at September 30, 2026, 5.82% as of June 30, 2026, and 2.80% as of September 30, 2025.
Net charge-offs for the third quarter of 2026 were $3.2 million, which was a decrease from $4.5 million for the second quarter of 2026 and a decrease from $3.5 million for the third quarter of 2025. Annualized net charge-offs as a percentage of average loans held for investment at amortized cost were 1.52% for the third quarter of 2026, compared to 2.08% in the second quarter of 2026 and 1.34% in the third quarter of 2025. Nonperforming assets were 1.29% of total assets as of September 30, 2026, compared to 1.75% as of June 30, 2026, and 1.98% as of September 30, 2025. Nonperforming assets, excluding government guaranteed loan balances, were 1.21% of total assets as of September 30, 2026, compared to 1.32% as of June 30, 2026, and 1.21% as of September 30, 2025.
Capital
The Bank’s Tier 1 leverage ratio was 8.79% as of September 30, 2026, compared to 8.30% as of June 30, 2026, and 6.14% as of September 30, 2025. The CET 1 and Tier 1 capital ratios to risk-weighted assets were 11.15% as of September 30, 2026, compared to 11.47% as of June 30, 2026, and 7.82% as of September 30, 2025. The total capital to risk-weighted assets ratio was 12.44% as of September 30, 2026, compared to 12.77% as of June 30, 2026, and 9.08% as of September 30, 2025. At September 30, 2026, the Bank met all of its regulatory capital requirements to be well-capitalized.
Liquidity
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 September 30, 2026 was 13.49%, 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 September 30, 2026 and June 30, 2026, the Bank had no borrowings from the FHLB, the FRB or other financial institutions.
Recent Events
On October 8, 2026, the Company sold and issued 4,107,908 common shares at $3.50 per common share in or as part of the Company’s rights offering. The offering resulted in gross proceeds of $14.4 million which will be used to improve capital levels of the Company and the Bank, and support the continued growth of the Bank.
Conference Call
BayFirst will host a conference call on Friday, October 30, 2026, at 9:00 a.m. ET to discuss its third 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 438809173. 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 twelve 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 September 30, 2026, BayFirst Financial Corp. had $1.15 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
BayFirst Financial Corp. Reports Third Quarter 2026 Results
October 29, 2026
Page 5
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.
BayFirst Financial Corp. Reports Third Quarter 2026 Results
October 29, 2026
Page 6
BAYFIRST FINANCIAL CORP.
SELECTED FINANCIAL DATA (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| At or for the three months ended |
| (Dollars in thousands, except for share data) | 9/30/2026 | | 6/30/2026 | | 3/31/2026 | | 12/31/2025 | | 9/30/2025 |
| | | | | As restated | | As restated | | As restated |
| Net loss | $ | (677) | | | $ | (32,665) | | | $ | (5,930) | | | $ | (2,696) | | | $ | (19,077) | |
| Balance sheet data: | | | | | | | | | |
| Average loans held for investment at amortized cost | 848,578 | | | 858,931 | | | 881,938 | | | 933,401 | | | 1,054,946 | |
| Average total assets | 1,121,140 | | | 1,185,392 | | | 1,213,823 | | | 1,328,923 | | | 1,339,795 | |
| Average common shareholders’ equity | 59,761 | | | 67,624 | | | 64,448 | | | 67,481 | | | 86,976 | |
| Government guaranteed loans held for sale | — | | | — | | | — | | | — | | | 94,052 | |
| Total loans held for investment | 902,966 | | | 882,840 | | | 924,220 | | | 958,014 | | | 993,109 | |
| | | | | | | | | |
| Total loans held for investment, excl gov’t gtd loan balances | 832,904 | | | 805,684 | | | 849,157 | | | 887,885 | | | 917,816 | |
| Allowance for credit losses | 41,762 | | | 45,081 | | | 20,632 | | | 21,996 | | | 24,485 | |
| Total assets | 1,147,929 | | | 1,134,925 | | | 1,189,671 | | | 1,294,269 | | | 1,340,222 | |
| Total deposits | 1,014,154 | | | 988,874 | | | 1,085,869 | | | 1,183,938 | | | 1,171,457 | |
| Common shareholders’ equity | 98,095 | | | 19,850 | | | 58,421 | | | 64,758 | | | 67,921 | |
| Share data: | | | | | | | | | |
| Basic loss per common share | $ | (0.04) | | | $ | (8.05) | | | $ | (1.54) | | | $ | (0.75) | | | $ | (4.71) | |
| Diluted loss per common share | (0.04) | | | (8.05) | | | (1.54) | | | (0.75) | | | (4.71) | |
| | | | | | | | | |
| Book value per common share | 3.64 | | | 4.83 | | | 14.22 | | | 15.76 | | | 16.50 | |
Tangible book value per common share (1) | 3.64 | | | 4.82 | | | 14.22 | | | 15.76 | | | 16.50 | |
| Performance ratios: | | | | | | | | | |
Return on average assets(2) | (0.24) | % | | (11.02) | % | | (1.95) | % | | (0.81) | % | | (5.70) | % |
Return on average common equity(2) | (6.39) | % | | (195.50) | % | | (39.19) | % | | (18.26) | % | | (89.51) | % |
Net interest margin(2) | 4.07 | % | | 3.48 | % | | 3.44 | % | | 3.60 | % | | 3.64 | % |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Asset quality ratios: | | | | | | | | | |
| Net charge-offs | $ | 3,228 | | | $ | 4,460 | | | $ | 4,719 | | | $ | 4,865 | | | $ | 3,544 | |
Net charge-offs/avg loans held for investment at amortized cost(2) | 1.52 | % | | 2.08 | % | | 2.14 | % | | 2.08 | % | | 1.34 | % |
Nonperforming loans(3) | $ | 14,013 | | | $ | 18,457 | | | $ | 21,453 | | | $ | 24,343 | | | $ | 24,687 | |
Nonperforming loans (excluding gov't gtd balance)(3) | $ | 13,445 | | | $ | 14,434 | | | $ | 15,873 | | | $ | 16,271 | | | $ | 15,822 | |
Nonperforming loans/total loans held for investment(3) | 1.63 | % | | 2.20 | % | | 2.46 | % | | 2.69 | % | | 2.65 | % |
Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) | 1.56 | % | | 1.72 | % | | 1.82 | % | | 1.80 | % | | 1.70 | % |
| ACL/Total loans held for investment at amortized cost | 4.85 | % | | 5.37 | % | | 2.36 | % | | 2.43 | % | | 2.63 | % |
| | | | | | | | | |
| ACL/Total loans held for investment at amortized cost, excl government guaranteed loans | 5.20 | % | | 5.82 | % | | 2.55 | % | | 2.60 | % | | 2.80 | % |
| Other Data: | | | | | | | | | |
| Full-time equivalent employees | 146 | | 148 | | 143 | | 144 | | 237 |
| Banking center offices | 12 | | 11 | | 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 | | | | | | | | | |
|
BayFirst Financial Corp. Reports Third Quarter 2026 Results
October 29, 2026
Page 7
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 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.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Tangible Common Shareholders' Equity and Tangible Book Value Per Common Share (Unaudited) |
| | As of |
| (Dollars in thousands, except for share data) | | September 30, 2026 | | June 30, 2026 | | March 31, 2026 | | December 31, 2025 | | September 30, 2025 |
| | | | | | As restated | | As restated | | As restated |
| Total shareholders’ equity | | $ | 104,541 | | | $ | 115,901 | | | $ | 75,628 | | | $ | 81,580 | | | $ | 83,972 | |
| Less: Preferred stock liquidation preference | | (6,446) | | | (96,051) | | | (17,207) | | | (16,822) | | | (16,051) | |
| Total equity available to common shareholders | | 98,095 | | | 19,850 | | | 58,421 | | | 64,758 | | | 67,921 | |
| Less: Intangible assets | | (62) | | | (62) | | | — | | | — | | | — | |
| Tangible common shareholders' equity | | $ | 98,033 | | | $ | 19,788 | | | $ | 58,421 | | | $ | 64,758 | | | $ | 67,921 | |
| | | | | | | | | | |
| Common shares outstanding | | 26,962,725 | | | 4,106,905 | | | 4,108,072 | | | 4,108,069 | | | 4,116,913 | |
| Tangible book value per common share | | $ | 3.64 | | | $ | 4.82 | | | $ | 14.22 | | | $ | 15.76 | | | $ | 16.50 | |
BayFirst Financial Corp. Reports Third Quarter 2026 Results
October 29, 2026
Page 8
| | | | | | | | | | | |
| BAYFIRST FINANCIAL CORP. |
| CONSOLIDATED BALANCE SHEETS (Unaudited) |
| (Dollars in thousands) | 9/30/2026 | 6/30/2026 | 9/30/2025 |
| Assets | | | As restated |
| Cash and due from banks | $ | 5,230 | | $ | 5,641 | | $ | 5,193 | |
| Interest-bearing deposits in banks | 123,097 | | 133,524 | | 113,357 | |
| Cash and cash equivalents | 128,327 | | 139,165 | | 118,550 | |
| Time deposits in banks | — | | — | | 1,284 | |
Investment securities available for sale, at fair value (amortized cost $27,454, $30,591, and $32,614 at September 30, 2026, June 30, 2026, and September 30, 2025, respectively) | 23,856 | | 27,778 | | 29,857 | |
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $7, $7, and $9 (fair value: $2,347, $2,371, and $2,375 at September 30, 2026, June 30, 2026, and September 30, 2025, respectively) | 2,493 | | 2,493 | | 2,491 | |
Nonmarketable equity securities | 4,509 | | 3,164 | | 7,028 | |
| | | |
| Government guaranteed loans held for sale | — | | — | | 94,052 | |
Government guaranteed loans held for investment, at fair value | 42,204 | | 43,847 | | 61,780 | |
| Loans held for investment, at amortized cost | 860,762 | | 838,993 | | 931,329 | |
| Allowance for credit losses on loans | (41,762) | | (45,081) | | (24,485) | |
| Net Loans held for investment, at amortized cost | 819,000 | | 793,912 | | 906,844 | |
| Accrued interest receivable | 5,429 | | 5,127 | | 6,800 | |
| Premises and equipment, net | 34,681 | | 30,245 | | 31,695 | |
| Loan servicing rights | 8,827 | | 9,942 | | 15,663 | |
| Deferred income tax assets | 21,836 | | 21,253 | | 7,040 | |
| Right-of-use operating lease assets | 13,402 | | 13,720 | | 14,833 | |
| Bank owned life insurance | 27,854 | | 27,654 | | 27,071 | |
| Other real estate owned | 410 | | 532 | | 400 | |
| Other assets | 15,101 | | 16,093 | | 14,834 | |
| | | |
| Total assets | $ | 1,147,929 | | $ | 1,134,925 | | $ | 1,340,222 | |
| Liabilities: | | | |
| Noninterest-bearing deposit accounts | $ | 121,193 | | $ | 116,788 | | $ | 105,937 | |
| Interest-bearing transaction accounts | 142,555 | | 135,628 | | 210,336 | |
| Savings and money market deposit accounts | 445,578 | | 422,933 | | 479,262 | |
| Time deposits | 304,828 | | 313,525 | | 375,922 | |
| Total deposits | 1,014,154 | | 988,874 | | 1,171,457 | |
| | | |
| FHLB borrowings | — | | — | | 50,000 | |
| Subordinated debentures | 5,968 | 5,966 | 5,961 |
| Notes payable | 1,138 | | 1,252 | | 1,593 | |
| | | |
| Accrued interest payable | 735 | | 597 | | 1,082 | |
| Operating lease liabilities | 12,408 | | 12,694 | | 13,554 | |
| | | |
| Accrued expenses and other liabilities | 8,985 | | 9,641 | | 12,603 | |
| | | |
| Total liabilities | 1,043,388 | | 1,019,024 | | 1,256,250 | |
BayFirst Financial Corp. Reports Third Quarter 2026 Results
October 29, 2026
Page 9
| | | | | | | | | | | |
| BAYFIRST FINANCIAL CORP. |
| CONSOLIDATED BALANCE SHEETS (Unaudited) |
| (Dollars in thousands) | 9/30/2026 | 6/30/2026 | 9/30/2025 |
| Shareholders’ equity: | | | As restated |
Preferred stock, Series A; no par value, no shares authorized, issued, and outstanding at September 30, 2026, and 10,000 shares authorized, 6,395 shares issued and outstanding at June 30, 2026 and September 30, 2025; aggregate liquidation preference of $6,395 at June 30, 2026 and September 30, 2025 | — | | 6,161 | | 6,161 | |
Preferred stock, Series B; no par value, no shares authorized, issued, and outstanding at September 30, 2026, 20,000 shares authorized, 3,210 shares issued and outstanding at June 30, 2026 and September 30, 2025; aggregate liquidation preference of $3,210 at June 30, 2026 and September 30, 2025 | — | | 3,123 | | 3,123 | |
Preferred stock, Series C; no par value, 10,000 shares authorized, 6,446 shares issued and outstanding at September 30, 2026, June 30, 2026, and September 30, 2025; aggregate liquidation preference of $6,446 at September 30, 2026, June 30, 2026 and September 30, 2025 | 6,446 | | 6,446 | | 6,446 | |
Preferred stock, Series D; no par value, no shares authorized, issued and outstanding at September 30, 2026 and September 30, 2025 and 4,000 shares authorized, issued and outstanding at June 30, 2026; aggregate liquidation preference of $40,000 at June 30, 2026 | — | | 37,254 | | — | |
Preferred stock, Series E; no par value, no shares authorized, issued and outstanding at September 30, 2026 and September 30, 2025, and 4,000 shares authorized, issued and outstanding at June 30, 2026; aggregate liquidation preference of $40,000 at June 30, 2026 | — | | 37,254 | | — | |
Common stock and additional paid-in capital; no par value, 100,000,000, 15,000,000, and 15,000,000 shares authorized, 26,962,725, 4,106,905, and 4,116,913 shares issued and outstanding at September 30, 2026, June 30, 2026, and September 30, 2025, respectively | 128,646 | | 54,382 | | 54,764 | |
| Accumulated other comprehensive loss, net | (2,701) | | (2,111) | | (2,069) | |
| Unearned compensation | (213) | | (245) | | (538) | |
| Retained earnings | (27,637) | | (26,363) | | 16,085 | |
| Total shareholders’ equity | 104,541 | | 115,901 | | 83,972 | |
| Total liabilities and shareholders’ equity | $ | 1,147,929 | | $ | 1,134,925 | | $ | 1,340,222 | |
BayFirst Financial Corp. Reports Third Quarter 2026 Results
October 29, 2026
Page 10
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| BAYFIRST FINANCIAL CORP. |
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
| For the Quarter Ended | | Year-to-Date |
| (Dollars in thousands, except per share data) | 9/30/2026 | | 6/30/2026 | | 9/30/2025 | | 9/30/2026 | | 9/30/2025 |
| Interest income: | | | | | As restated | | | | As restated |
| Loans, including fees | $ | 15,951 | | | $ | 14,803 | | | $ | 20,746 | | | $ | 46,675 | | | $ | 61,346 | |
| Interest-bearing deposits in banks and other | 1,296 | | | 1,562 | | | 946 | | | 4,367 | | | 2,926 | |
| Total interest income | 17,247 | | | 16,365 | | | 21,692 | | | 51,042 | | | 64,272 | |
| Interest expense: | | | | | | | | | |
| Deposits | 6,483 | | | 6,850 | | | 9,576 | | | 21,226 | | | 28,289 | |
| Other | 137 | | | 93 | | | 798 | | | 327 | | | 1,928 | |
| Total interest expense | 6,620 | | | 6,943 | | | 10,374 | | | 21,553 | | | 30,217 | |
| Net interest income | 10,627 | | | 9,422 | | | 11,318 | | | 29,489 | | | 34,055 | |
| Provision for credit losses | (69) | | | 28,977 | | | 11,165 | | | 32,312 | | | 23,332 | |
| Net interest income after provision for credit losses | 10,696 | | | (19,555) | | | 153 | | | (2,823) | | | 10,723 | |
| Noninterest income: | | | | | | | | | |
| | | | | | | | | |
| Loan servicing income, net | 655 | | | 588 | | | 761 | | | 2,013 | | | 1,981 | |
| Gain (loss) on sale of government guaranteed loans, net | — | | | — | | | 3,039 | | | (97) | | | 15,975 | |
| Service charges and fees | 507 | | | 497 | | | 474 | | | 1,494 | | | 1,396 | |
| Government guaranteed loans fair value gain (loss), net | (38) | | | (6,468) | | | (882) | | | (7,039) | | | 805 | |
Fair value adjustment on loans held for sale | — | | | — | | | (5,096) | | | — | | | (5,096) | |
| Government guaranteed loan packaging fees | — | | | — | | | 380 | | | — | | | 1,673 | |
| Loss on nonmarketable securities | — | | | (1,500) | | | — | | | (1,500) | | | — | |
| Loss on sale of premises and equipment | — | | | (34) | | | — | | | (21) | | | — | |
| Other noninterest income (loss) | (23) | | | 108 | | | 254 | | | 326 | | | 1,215 | |
| Total noninterest income | 1,101 | | | (6,809) | | | (1,070) | | | (4,824) | | | 17,949 | |
| Noninterest Expense: | | | | | | | | | |
| Salaries and benefits | 4,466 | | | 5,332 | | | 7,637 | | | 14,867 | | | 23,748 | |
| Bonus, commissions, and incentives | 576 | | | 741 | | | 530 | | | 1,607 | | | 863 | |
| | | | | | | | | |
| Occupancy and equipment | 1,307 | | | 1,352 | | | 1,525 | | | 4,027 | | | 4,738 | |
| Data processing | 1,406 | | | 2,649 | | | 2,049 | | | 5,544 | | | 6,172 | |
| Marketing and business development | 76 | | | 157 | | | 262 | | | 356 | | | 1,152 | |
| Professional services | 571 | | | 1,172 | | | 859 | | | 2,907 | | | 2,373 | |
Loan servicing and origination expense | 3,004 | | | 3,122 | | | 3,273 | | | 9,962 | | | 6,866 | |
| Employee recruiting and development | 213 | | | 248 | | | 364 | | | 663 | | | 1,443 | |
| Regulatory assessments | 515 | | | 611 | | | 484 | | | 1,704 | | | 1,175 | |
| Restructure charges | — | | | — | | | 7,262 | | | — | | | 7,262 | |
| Other noninterest expense | 682 | | | 2,292 | | | 970 | | | 3,741 | | | 2,764 | |
| Total noninterest expense | 12,816 | | | 17,676 | | | 25,215 | | | 45,378 | | | 58,556 | |
| Loss before taxes | (1,019) | | | (44,040) | | | (26,132) | | | (53,025) | | | (29,884) | |
| Income tax benefit | (342) | | | (11,375) | | | (7,055) | | | (13,753) | | | (8,015) | |
| Net loss | (677) | | | (32,665) | | | (19,077) | | | (39,272) | | | (21,869) | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Preferred dividends | 277 | | | 386 | | | 385 | | | 1,048 | | | 1,156 | |
Net loss attributable to common shareholders | $ | (954) | | | $ | (33,051) | | | $ | (19,462) | | | $ | (40,320) | | | $ | (23,025) | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Basic loss per common share | $ | (0.04) | | | $ | (8.05) | | | $ | (4.71) | | | $ | (3.76) | | | $ | (5.57) | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| | | | | | | | | |
| Diluted loss per common share | $ | (0.04) | | | $ | (8.05) | | | $ | (4.71) | | | $ | (3.76) | | | $ | (5.57) | |
BayFirst Financial Corp. Reports Third Quarter 2026 Results
October 29, 2026
Page 11
Loan Composition
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(Dollars in thousands) | 9/30/2026 | | 6/30/2026 | | 3/31/2026 | | 12/31/2025 | | 9/30/2025 |
| (Unaudited) | | (Unaudited) | | Unaudited/As restated | | As restated | | Unaudited/As restated |
Real estate: | | | | | | | | | |
Residential | $ | 348,865 | | | $ | 353,716 | | | $ | 359,305 | | | $ | 365,427 | | | $ | 364,020 | |
Commercial | 228,589 | | | 211,518 | | | 216,643 | | | 215,771 | | | 231,039 | |
Construction and land | 35,976 | | | 38,095 | | | 36,732 | | | 48,397 | | | 43,700 | |
Commercial and industrial | 177,062 | | | 158,077 | | | 171,666 | | | 181,566 | | | 194,654 | |
Commercial and industrial - PPP | — | | | — | | | 6 | | | 6 | | | 13 | |
Consumer and other | 66,903 | | | 73,567 | | | 82,269 | | | 86,441 | | | 90,946 | |
Loans held for investment, at amortized cost, gross | 857,395 | | | 834,973 | | | 866,621 | | | 897,608 | | | 924,372 | |
Deferred loan costs, net | 7,151 | | | 8,338 | | | 9,353 | | | 10,491 | | | 11,522 | |
Discount on government guaranteed loans | (4,472) | | | (5,107) | | | (6,007) | | | (6,811) | | | (7,506) | |
Premium on loans purchased, net | 688 | | | 789 | | | 2,446 | | | 2,650 | | | 2,941 | |
Loans held for investment, at amortized cost, net | 860,762 | | | 838,993 | | | 872,413 | | | 903,938 | | | 931,329 | |
| Government guaranteed loans held for investment, at fair value | 42,204 | | | 43,847 | | | 51,807 | | | 54,076 | | | 61,780 | |
Total loans held for investment, net | $ | 902,966 | | | $ | 882,840 | | | $ | 924,220 | | | $ | 958,014 | | | $ | 993,109 | |
Nonperforming Assets (Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Dollars in thousands) | 9/30/2026 | | 6/30/2026 | | 3/31/2026 | | 12/31/2025 | | 9/30/2025 |
| | | | | As Restated | | As Restated | | As Restated |
Nonperforming loans (government guaranteed balances), at amortized cost, gross | $ | 568 | | | $ | 4,023 | | | $ | 5,580 | | | $ | 8,072 | | | $ | 8,865 | |
Nonperforming loans (unguaranteed balances), at amortized cost, gross | 13,445 | | | 14,434 | | | 15,873 | | | 16,271 | | | 15,822 | |
Total nonperforming loans, at amortized cost, gross | 14,013 | | | 18,457 | | | 21,453 | | | 24,343 | | | 24,687 | |
Nonperforming loans (government guaranteed balances), at fair value | — | | | — | | | 208 | | | 83 | | | — | |
Nonperforming loans (unguaranteed balances), at fair value | 114 | | | 443 | | | 1,230 | | | 1,453 | | | 1,385 | |
Total nonperforming loans, at fair value | 114 | | | 443 | | | 1,438 | | | 1,536 | | | 1,385 | |
OREO | 410 | | | 532 | | | 400 | | | 400 | | | 400 | |
| Repossessed assets | 253 | | | 466 | | | 583 | | | 263 | | | 32 | |
Total nonperforming assets, gross | $ | 14,790 | | | $ | 19,898 | | | $ | 23,874 | | | $ | 26,542 | | | $ | 26,504 | |
Nonperforming loans as a percentage of total loans held for investment(1) | 1.63 | % | | 2.20 | % | | 2.46 | % | | 2.69 | % | | 2.65 | % |
Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1) | 1.56 | % | | 1.72 | % | | 1.82 | % | | 1.80 | % | | 1.70 | % |
Nonperforming assets as a percentage of total assets | 1.29 | % | | 1.75 | % | | 2.01 | % | | 2.05 | % | | 1.98 | % |
Nonperforming assets (excluding government guaranteed balances) to total assets | 1.21 | % | | 1.32 | % | | 1.39 | % | | 1.29 | % | | 1.21 | % |
ACL to nonperforming loans(1) | 298.02 | % | | 244.24 | % | | 96.17 | % | | 90.35 | % | | 99.18 | % |
ACL to nonperforming loans (excluding government guaranteed balances)(1) | 310.61 | % | | 312.32 | % | | 129.98 | % | | 135.18 | % | | 154.75 | % |
(1) Excludes loans measured at fair value
Note: Transmitted on Globe Newswire on October 30, 2026, at 4:00 p.m. ET.
