BayFirst Announces Impact of Asset Resolution Plan and Restatement of Prior Period Financial Statements

BayFirst Financial (NASDAQ: BAFN) completed quantifying the impact of its asset resolution plan tied to the April 28, 2026 Stock Purchase Agreement.

Rhea-AI Summary

BayFirst Financial (NASDAQ: BAFN) completed quantifying the impact of its asset resolution plan tied to the April 28, 2026 Stock Purchase Agreement. The plan identifies specific government‑guaranteed loans and adjusts expected collections on over 7,000 unguaranteed SBA 7(a) small balance loans, resulting in $37.0 million of loan-related adjustments affecting both amortized-cost and fair-value portfolios.

According to BayFirst, it will also record a $1.5 million impairment on a non‑marketable equity investment and a $1.6 million write-down of unamortized premiums on certain USDA loans. These items will be reflected in second-quarter 2026 results to be released July 30, 2026. The company will restate audited financial statements for 2024, 2025 and Q1 2026 after identifying $2.8 million of deferred origination costs and $2.1 million of accrued interest tied to defaulted or non‑accrual loans, which understated provision expense and overstated net interest income.

Restated figures revise 2024 net income from $12.6 million to $11.4 million, 2025 net loss from $22.9 million to $24.2 million, and Q1 2026 net loss from $5.7 million to $5.9 million. BayFirst states that prior financial statements should no longer be relied upon and anticipates filing amended 2025 Form 10-K and Q1 2026 Form 10-Q by August 12, 2026.

Positive

• Amended filings targeted by August 12, 2026, providing updated audited 2024–2025 and Q1 2026 results

Negative

• Asset resolution adjustments and related items total $40.1 million (loans $37.0m, equity impairment $1.5m, USDA premiums $1.6m)
• Restated 2024 net income reduced by $1.2 million to $11.4 million
• Restated 2025 net loss increases by $1.3 million to $24.2 million
• Restated Q1 2026 net loss widens by $0.2 million to $5.9 million
• Previously filed 2024–2025 and Q1 2026 financial statements should no longer be relied upon

Argus Jul 16 session 2 alerts

+0.70% close to close 0.5x rel. volume Open Argus

Details

News Market Reaction – BAFN

$28.98M Market Cap

On Jul 16, the first trading day after this news, BAFN closed 0.70% above the previous close. Our momentum scanner recorded 2 alerts in the available session data.

Data tracked by StockTitan Argus for the Jul 16 session.

Market Context

Platform data show BayFirst trading far below its 52-week high of $15.28 and carrying relatively low...

Analysis

Platform data show BayFirst trading far below its 52-week high of $15.28 and carrying relatively low short interest despite recent large losses and an $80 million preferred-stock capital raise. Against that backdrop, this restatement and asset resolution update mainly helps clarify legacy credit costs; ongoing dilution from convertible preferred shares and their planned common conversion remains a key risk to monitor.

Key Figures

Loan adjustments: $37.0 million Equity impairment: $1.5 million USDA premium write-down: $1.6 million +5 more

Loan adjustments

$37.0 million

Adjustments to loans at amortized cost and fair value under asset plan

Equity impairment

$1.5 million

Impairment on non-marketable equity investment tied to former SBA 7(a) partner

USDA premium write-down

$1.6 million

Write-down of unamortized premiums on purchased fully guaranteed USDA loans

Deferred origination costs

$2.8 million

Previously misclassified deferred origination costs identified in internal review

Accrued interest issue

$2.1 million

Accrued interest on defaulted or non-accrual loans identified as misstatement

2024 net income restated

$11.4 million

Restated from previously reported $12.6 million for year ended Dec. 31, 2024

2025 net loss restated

$24.2 million

Restated from previously reported $22.9 million for year ended Dec. 31, 2025

Q1 2026 net loss restated

$5.9 million

Restated from previously reported $5.7 million for quarter ended Mar. 31, 2026

Historical Context

4 past events · Latest: Jun 30

4 events

1. Jun 30

   Earnings call notice

   24h Move

   +2.7%

   Scheduled announcement of Q2 2026 results and related conference call details.

2. Apr 30

   Earnings and capital raise

   24h Move

   -23.5%

   Reported Q1 2026 net loss alongside an $80M PIPE capital raise.

3. Mar 31

   Earnings call notice

   24h Move

   +3.8%

   Notice of Q1 2026 earnings release timing and webcast logistics.

4. Jan 29

   Earnings update

   24h Move

   +4.5%

   Reported 2025 net loss plus SBA loan sale and balance sheet metrics.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

amortized cost, fair value, non-accrual status, net interest income, +2 more

6 terms

amortized cost financial

"These adjustments impact loans measured at amortized cost and loans measured at fair value"

Amortized cost is an accounting method that shows the value of a loan or bond on a company’s books by starting with what was paid and then gradually adjusting that amount as principal is repaid and any extra fees or discounts are spread out over time. Think of it like tracking the remaining balance on a mortgage after each scheduled payment. For investors, it matters because it determines the reported value and earned interest of debt holdings, affecting income, balance sheet strength, and comparisons between companies.

fair value financial

"These adjustments impact loans measured at amortized cost and loans measured at fair value"

Fair value is an estimate of what an asset or company is really worth today, derived from expected future earnings, comparable market prices and other relevant facts—like agreeing a price for a used car after checking mileage, condition and similar listings. Investors use fair value to decide whether a stock looks overpriced or undervalued, which helps guide buy, hold or sell decisions and sets expectations for potential returns and risk.

View in glossary

non-accrual status financial

"loans which had defaulted or were placed into non-accrual status in prior periods"

A loan or credit account is placed in non-accrual status when the lender stops recording expected interest income because the borrower is not making scheduled payments or repayment is doubtful. Think of it like a landlord who stops counting unpaid rent as future income once a tenant stops paying; it signals rising credit problems and potential losses. For investors, non-accrual levels indicate loan quality and can foreshadow write-downs, lower earnings, and increased risk to a lender’s balance sheet.

net interest income financial

"resulted in a material understatement of provision expense and overstatement of net interest income"

Net interest income is the difference between the interest a financial institution earns on loans and investments and the interest it pays on deposits and borrowings. It matters to investors because it is a primary source of profit for banks and similar firms — like the gross margin on a store’s trade — and changes with loan growth, deposit costs and interest rates, so it signals core earning power and sensitivity to rate moves.

form 10-k regulatory

"file amendments to its 2025 Form 10-K and first quarter 2026 Form 10-Q"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

form 10-q regulatory

"file amendments to its 2025 Form 10-K and first quarter 2026 Form 10-Q"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ST. PETERSBURG, Fla., July 15, 2026 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or “Company”), parent company of BayFirst National Bank (“Bank”) today announced that it has 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. These adjustments impact loans measured at amortized cost and loans measured at fair value, and amount to $37.0 million.

Furthermore, the Company will book an impairment of $1.5 million on a non-marketable equity investment in a firm who was a partner with the Company’s former SBA 7(a) lending business and will also write down by $1.6 million the unamortized premiums on the Company’s portfolio of purchased fully guaranteed USDA loans which are at risk of default or early prepayment. These items will be included in the Company’s second quarter earnings and financial reports that are scheduled to be released after the close of markets on July 30, 2026.

As a result of such review, the Company will restate its previously issued audited financial statements for the years ended December 31, 2024 and 2025, and for the first quarter ended March 31, 2026. The Company’s management, in consultation with its Audit Committee and its Board of Directors, identified $2.8 million of deferred origination costs and $2.1 million of accrued interest related to loans which had defaulted or were placed into non-accrual status in prior periods, which resulted in a material understatement of provision expense and overstatement of net interest income during the effected periods 2024, 2025 and the first quarter of 2026.

These misstatements have resulted in corrections to the Company’s results of operations for the periods of 2024, 2025, and the first quarter of 2026. Specifically, the previously reported: (i) 2024 net income of $12.6 million will be restated to a net income of $11.4 million; (ii) 2025 net loss of $22.9 million will be restated to a net loss of $24.2 million; and (iii) first quarter 2026 net loss of $5.7 million will be restated to a net loss of $5.9 million. As a result, the Company’s previously filed financial statements and other communication relating to those periods should no longer be relied upon. The Company anticipates it will file amendments to its 2025 Form 10-K and first quarter 2026 Form 10-Q by August 12, 2026.

“We take our obligation to provide accurate and transparent financial reporting seriously,” stated Alfred Rogers, Chief Executive Officer. “Once this understatement of provision expense was identified through our internal review process, we moved quickly to investigate, correct the error, and notify our shareholders and regulators. Despite the correction, the Bank remains well capitalized and well positioned to continue serving our customers and communities.”

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 March 31, 2026, BayFirst Financial Corp. had $1.20 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; 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.

Contacts:
Alfred T. Rogers, Jr.	Scott J. McKim
Chief Executive Officer	Chief Financial Officer
727.685.2097	727.521.7085

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is BayFirst (BAFN) announcing about its asset resolution plan on July 15, 2026?

BayFirst announced it has completed and quantified its asset resolution plan, including $37.0 million of loan-related adjustments. According to BayFirst, this involves specific government-guaranteed loans and over 7,000 unguaranteed SBA 7(a) small balance loans, impacting both amortized-cost and fair-value portfolios.

How will BayFirst’s asset resolution plan impact its second quarter 2026 earnings?

BayFirst will include $37.0 million of loan adjustments, a $1.5 million equity impairment, and a $1.6 million USDA premium write-down in Q2 2026 earnings. According to BayFirst, these items will be reflected in financials released after market close on July 30, 2026.

Why is BayFirst (BAFN) restating its 2024, 2025 and Q1 2026 financial statements?

BayFirst is restating results after identifying $2.8 million of deferred origination costs and $2.1 million of accrued interest tied to defaulted or non-accrual loans. According to BayFirst, these items understated provision expense and overstated net interest income in 2024, 2025, and Q1 2026.

How do the restatements change BayFirst’s reported net income and losses for 2024–2026?

BayFirst’s 2024 net income will be revised from $12.6 million to $11.4 million, 2025 net loss from $22.9 million to $24.2 million, and Q1 2026 net loss from $5.7 million to $5.9 million. According to BayFirst, these corrections affect previously reported results.

Can investors still rely on BayFirst’s previously filed 2024, 2025 and Q1 2026 financial statements?

No. BayFirst states its previously filed financial statements and communications for 2024, 2025 and Q1 2026 should no longer be relied upon. According to BayFirst, amended 2025 Form 10-K and Q1 2026 Form 10-Q are anticipated to be filed by August 12, 2026.

What additional impairments is BayFirst (BAFN) recording related to its SBA and USDA activities?

BayFirst will record a $1.5 million impairment on a non-marketable equity investment tied to its former SBA 7(a) lending partner and a $1.6 million write-down of USDA loan premiums. According to BayFirst, these amounts are part of the asset resolution impact.

When will BayFirst (BAFN) release its second quarter 2026 financial results?

BayFirst plans to release second quarter 2026 earnings and financial reports after the close of markets on July 30, 2026. According to BayFirst, these results will incorporate the asset resolution adjustments and related impairments announced on July 15, 2026.