$BAFN

BayFirst Financial Corp.

CIK:0001649739|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Interest income:
Loans, including fees	$ 14,803	$ 21,238	$ 30,724	$ 40,600
Interest-bearing deposits in banks and other	1,562	1,046	3,071	1,980
Total interest income	16,365	22,284	33,795	42,580
Interest expense:
Deposits	6,850	9,282	14,743	18,713
Borrowings	93	875	190	1,130
Total interest expense	6,943	10,157	14,933	19,843
Net interest income	9,422	12,127	18,862	22,737
Provision for credit losses	28,977	7,607	32,381	12,167
Net interest income after provision for credit losses	(19,555)	4,520	(13,519)	10,570
Noninterest income:
Loan servicing income, net	588	484	1,358	1,220
Gain (loss) on sale of government guaranteed loans, net	0	5,872	(97)	12,936
Service charges and fees	497	473	987	922
Government guaranteed loans fair value gain (loss), net	(6,468)	2,442	(7,001)	1,687
Government guaranteed loan packaging fees	0	577	0	1,293
Loss on nonmarketable equity securities	(1,500)	0	(1,500)	0
Loss on premises and equipment	(34)	0	(21)	0
Other noninterest income	108	683	349	961
Total noninterest income	(6,809)	10,531	(5,925)	19,019
Noninterest expense:
Salaries and benefits	5,332	8,113	10,401	16,111
Bonus, commissions, and incentives	741	262	1,031	333
Occupancy and equipment	1,352	1,579	2,720	3,213
Data processing	2,649	2,078	4,138	4,123
Marketing and business development	157	403	280	890
Professional services	1,172	782	2,336	1,514
Loan servicing and origination expense	3,122	2,558	6,958	3,593
Employee recruiting and development	248	462	450	1,079
Regulatory assessments	611	352	1,189	691
Other noninterest expense	2,292	939	3,059	1,794
Total noninterest expense	17,676	17,528	32,562	33,341
Loss before income taxes	(44,040)	(2,477)	(52,006)	(3,752)
Income tax expense (benefit)	(11,375)	(623)	(13,411)	(960)
Net loss	(32,665)	(1,854)	(38,595)	(2,792)
Preferred stock dividends	386	386	771	771
Net loss attributable to common shareholders	$ (33,051)	$ (2,240)	$ (39,366)	$ (3,563)
Basic loss per common share (in dollars per share)	$ (8.05)	$ (0.54)	$ (9.58)	$ (0.86)
Diluted loss per common share (in dollars per share)	$ (8.05)	$ (0.54)	$ (9.58)	$ (0.86)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (38,595)	$ (2,792)
Adjustments to reconcile net loss to net cash from operating activities:
Depreciation of fixed assets	1,029	1,108
Net securities premium amortization	3	32
Amortization of debt issuance costs	4	3
Amortization of premium on loans purchased, net	1,839	383
Provision for credit losses	32,381	12,167
Accretion of discount on unguaranteed loans	(1,703)	(1,883)
Deferred tax benefit	(13,377)	(585)
Proceeds from sales of government guaranteed loans held for sale	665	146,321
Net (gains) losses on sales of government guaranteed loans	97	(12,936)
Net amortization of deferred loan costs	1,466	1,810
Change in fair value of government guaranteed loans HFI, at fair value	7,001	(1,687)
Amortization of loan servicing rights	2,638	3,675
Loss on nonmarketable equity securities	1,500	0
Loss on sale of premises and equipment	21	0
Gain on other real estate owned	0	(423)
Loss on sale and writedowns of repossessed assets	113	9
Non-qualified stock purchase plan expense	0	9
Stock based compensation expense	83	56
Income from bank owned life insurance	(390)	(368)
Impairment of equipment and software	1,249	0
Changes in:
Accrued interest receivable	1,190	270
Other assets	(1,676)	(3,883)
Accrued interest payable	(536)	112
Other liabilities	2,155	(2,132)
Net cash provided by (used in) operating activities	(2,843)	139,266
Cash flows from investing activities:
Purchase of investment securities available for sale	0	(5,718)
Principal payments on investment securities available for sale	1,380	1,446
Call of investment securities held to maturity	0	11,109
Net purchase of nonmarketable equity securities	(8)	(2,025)
Purchase of time deposits in banks	0	(10)
Maturity of time deposits in banks	0	1,000
Loan originations/(payments), net	56,032	(204,035)
Purchase of premises and equipment	(107)	(266)
Proceeds on sales of other real estate owned	0	155
Proceeds on sales of repossessed assets	150	27
Net cash provided by (used in) investing activities	57,447	(198,317)
Cash flows from financing activities:
Net change in deposits	(195,064)	20,567
Net decrease in short-term borrowings	0	40,000
Payments on notes payable	(341)	(227)
Proceeds from issuance of preferred stock, net	74,508	0
Proceeds from issuance of common stock for benefit plans, net	18	(9)
Common share buyback - redeemed stock	0	(335)
Dividends paid on common stock	0	(663)
Dividends paid on preferred stock	(1,542)	(771)
Net cash provided by (used in) financing activities	(122,421)	58,562
Net change in cash and cash equivalents	(67,817)	(489)
Cash and cash equivalents, beginning of period	206,982	77,788
Cash and cash equivalents, end of period	139,165	77,299
Supplemental cash flow information
Interest paid	15,469	19,731
Income taxes paid	26	5,296
Supplemental noncash disclosures
Net change in unrealized holding gains (losses) on investment securities available for sale, net of tax effect	(151)	588
Transfer of government guaranteed loans HFI to loans HFS	762	136,600
Transfer of loans HFI to repossessed assets	$ 466	$ 0

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and due from banks	$ 5,641	$ 5,123
Interest-bearing deposits in banks	133,524	201,859
Cash and cash equivalents	139,165	206,982
Investment securities available for sale, at fair value (amortized cost: $30,591 and $31,974 at June 30, 2026 and December 31, 2025, respectively)	27,778	29,363
Investment securities held to maturity, at amortized cost, net of allowance for credit losses of $7 and $7 (fair value: $2,371 and $2,384 at June 30, 2026 and December 31, 2025, respectively)	2,493	2,493
Nonmarketable equity securities	3,164	4,656
Government guaranteed loans HFI, at fair value	43,847	54,076
Loans HFI, at amortized cost	838,993	903,938
Allowance for credit losses on loans	(45,081)	(21,996)
Net loans HFI, at amortized cost	793,912	881,942
Accrued interest receivable	5,127	6,317
Premises and equipment, net	30,245	31,188
Loan servicing rights	9,942	12,580
Deferred income tax asset	21,253	7,826
Right-of-use operating lease assets	13,720	14,504
Bank owned life insurance	27,654	27,264
Other real estate owned	532	400
Other assets	16,093	14,678
Total assets	1,134,925	1,294,269
Liabilities:
Noninterest-bearing deposit accounts	116,788	95,731
Interest-bearing transaction accounts	135,628	231,227
Savings and money market deposit accounts	422,933	454,639
Time deposits	313,525	402,341
Total deposits	988,874	1,183,938
Subordinated notes	5,966	5,962
Notes payable	1,252	1,593
Accrued interest payable	597	1,133
Operating lease liabilities	12,694	13,264
Accrued expenses and other liabilities	9,641	6,799
Total liabilities	1,019,024	1,212,689
Shareholders’ equity:
Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,106,905 and 4,108,609 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively	54,382	54,371
Accumulated other comprehensive loss, net	(2,111)	(1,960)
Unearned compensation	(245)	(335)
Retained earnings	(26,363)	13,774
Total shareholders’ equity	115,901	81,580
Total liabilities and shareholders’ equity	1,134,925	1,294,269
Preferred Stock, Series A
Shareholders’ equity:
Preferred stock	6,161	6,161
Preferred Stock, Series B
Shareholders’ equity:
Preferred stock	3,123	3,123
Preferred Stock, Series C
Shareholders’ equity:
Preferred stock	6,446	6,446
Preferred Stock, Series D
Shareholders’ equity:
Preferred stock	37,254	0
Preferred Stock, Series E
Shareholders’ equity:
Preferred stock	$ 37,254	$ 0