Bayfirst Financial Stock Earnings Reports

BayFirst reported a first-quarter 2026 net loss of $5.7 million and continued shrinkage in its lending and deposit books as it winds down legacy SBA 7(a) activity. Loans held for investment fell to $930.4 million (down 14% YoY) and deposits declined to $1.09 billion. Net interest margin compressed to 3.42% and noninterest income dropped materially year-over-year due to the exit from SBA 7(a) gain-on-sale revenue. Unguaranteed SBA 7(a) loans remain the primary driver of charge-offs (first-quarter annualized net charge-offs 1.98% of average loans), with $159.3 million of unguaranteed SBA 7(a) balances at quarter end. The company completed an $80 million private placement of convertible preferred shares (proposed conversion to ~22.9 million common shares at an effective $3.50/share), will launch a rights offering for existing shareholders and has scheduled a July 14 special meeting. New CEO and President Al Rogers (pending holding-company regulatory non-objection) joins a management team focused on: (1) resolving the legacy problem loan portfolio, (2) returning to profitability, and (3) growing local relationship banking in the Tampa Bay / Sarasota markets. The board approved resuming preferred dividends and redeeming Series A shares. Capital ratios are weak on a reported basis (Tier 1 leverage 6.54% at quarter-end) but materially improve on a pro forma basis after an expected $42 million capital infusion to the bank (pro forma Tier 1 leverage ~10.02% and total capital/RWA ~14.40% as of April 30). Liquidity remains adequate (bank liquidity ratio ~13.6% at quarter end, ~ $130m) and management states the allowance for credit losses is built up versus the risky components of the portfolio, with certain sub-portfolios (BOLT/FlashCap) reserved near 13%. Management plans to keep lending focused locally and to use the new capital to support resolution of legacy assets and future community-bank growth.