BayFirst Financial Corp.

BayFirst Financial Corp. reported a net loss of $32.7 million, or $8.05 per common share, for the second quarter of 2026, primarily due to $41.5 million in expenses from its asset resolution plan. The company also announced a restatement of prior financial statements for 2024, 2025, and Q1 2026 due to identified errors. Despite the significant loss and restatement, management emphasized that the Bank remains well-capitalized and is focused on strengthening its balance sheet and community banking initiatives.

BayFirst Financial Corp. filed an S-1 to register 22,856,000 shares of common stock for resale by selling shareholders, stemming from an $80 million private placement of preferred stock that converted to common shares. The company will not receive any proceeds from these sales, and the filing highlights risks of market price volatility and potential depression due to large sales. Additionally, the company redeemed $9.7 million in preferred stock, discontinued its SBA 7(a) lending division in Q3 2025, and recorded $38.4 million in loan adjustments and $3.1 million in impairments/write-downs related to an asset resolution plan.

BayFirst Financial Corp. filed an amended 10-Q to restate its financial statements for the fiscal quarters ended March 31, 2026 and March 31, 2025, as well as the full years 2024 and 2025. The restatement corrects errors related to deferred origination costs and accrued interest on unguaranteed portions of SBA 7(a) loans, which led to an understatement of provision for credit losses and overstatement of net interest income. Additionally, deferred origination costs were incorrectly recognized, overstating the gain on sale of guaranteed SBA 7a loans. For Q1 2026, the net loss increased by $250 thousand to $(5,930) thousand, and for Q1 2025, net loss increased by $603 thousand to $(938) thousand.

BayFirst Financial Corp. is filing an amended 10-K to restate its financial statements for 2024, 2025, and Q1 2026 due to material errors. These errors include a $2.8 million pretax understatement of provision for credit losses and overstatement of net interest income, and a $3.4 million pretax overstatement of gain on sale of guaranteed SBA 7a loans. The restatement necessitates a recovery analysis of executive incentive-based compensation, and previous reports for these periods should not be relied upon.

BayFirst Financial Corp. announced a change in the date for reporting its second-quarter 2026 results, rescheduling the earnings release to after market close on August 13, 2026, with a conference call on August 14, 2026. This delay is necessary to complete procedures related to the earnings release, following previously announced financial statement restatements. The company's consolidated financial statements for the years ended December 31, 2024, and 2025, and the quarter ended March 31, 2026, require restatement and should no longer be relied upon. Amendments to the 2025 Form 10-K and Q1 2026 Form 10-Q are expected to be filed by August 12, 2026, in connection with an asset resolution plan.

BayFirst Financial Corp. has postponed its second-quarter earnings release to August 13, 2026, due to the implementation of an asset resolution plan and the need to restate prior financial statements. The company announced that its consolidated financial statements for 2024, 2025, and the first quarter of 2026 should no longer be relied upon. Amendments to its 2025 Form 10-K and Q1 2026 Form 10-Q are expected to be filed by August 12, 2026, with a conference call to discuss results on August 14, 2026.

BayFirst Financial Corp. announced a significant change in its shareholding structure following a Special Meeting of Shareholders on July 14, 2026. Pursuant to an Exchange Agreement, the company exchanged preferred stock for 11,428,000 common shares with Kenneth R. Lehman, granting him a 42.38% stake in the company. Shareholders also approved an amendment to the Articles of Incorporation to increase the number of authorized common shares to 100,000,000, facilitating this transaction and future capital actions. Mr. Lehman is expected to join the company's and the bank's Boards of Directors.

BayFirst Financial Corp. announced the completion of an asset resolution plan, resulting in $37.0 million in adjustments to its loan portfolios, a $1.5 million impairment on an equity investment, and a $1.6 million write-down on USDA loan premiums. Concurrently, management identified misstatements of $2.8 million in deferred origination costs and $2.1 million in accrued interest from prior periods. These errors necessitate the restatement of financial results for 2024, 2025, and Q1 2026, leading to lower reported net income or higher net losses for these periods. The company's previously issued financial statements and related communications should no longer be relied upon, and amended filings are expected by August 12, 2026.

BayFirst Financial Corp. announced it will restate previously issued audited financial statements for 2024, 2025, and Q1 2026 due to an understatement of provision expense and overstatement of net interest income. The restatements will reduce 2024 net income to $11.4M, increase 2025 net loss to $24.2M, and increase Q1 2026 net loss to $5.9M. Additionally, the company completed an asset resolution plan impacting $37.0M, booked a $1.5M impairment on an equity investment, and a $1.6M write-down on USDA loan premiums, all to be included in Q2 2026 earnings. The company anticipates filing amendments to its 2025 Form 10-K and Q1 2026 Form 10-Q by August 12, 2026.

BayFirst Financial Corp. announced it will report its second quarter 2026 results after the market closes on Thursday, July 30, 2026. Following the release, management will host a conference call on Friday, July 31, 2026, at 9:00 a.m. ET to discuss the results. Interested investors can access the live webcast or a replay on the company's investor relations website. As of March 31, 2026, BayFirst Financial Corp. had $1.20 billion in total assets.