BayFirst Financial Corp. Announces Substantial Capital Raise, Names Alfred Rogers as Bank Chief Executive Officer, and Reports First Quarter 2026 Results
Rhea-AI Summary
BayFirst Financial (NASDAQ: BAFN) completed an $80.0 million PIPE offering issuing convertible preferred stock that may convert into ~22.9 million common shares at an effective $3.50 per share, subject to approvals. The company reported a Q1 2026 net loss of $5.7 million and named Alfred Rogers as CEO of the Bank; the Board resumed preferred dividends and plans a Series A redemption. Proforma capital ratios after a $42.0 million contribution show a Tier 1 leverage ratio of 10.02% and CET1 of 13.13%.
Positive
- $80.0M PIPE capital raise
- Proforma Tier 1 leverage 10.02%
- Proforma CET1 ratio 13.13%
- Convertible preferred converts to ~22.9M common shares at $3.50
- Alfred Rogers named Bank CEO with regulatory approvals
Negative
- Net loss of $5.7M in Q1 2026
- Deposits declined 8.3% in Q1 2026
- Loans held for investment down 14.2% YoY
- Bank did not meet well-capitalized requirements pre-PIPE
News Market Reaction – BAFN
In the May 1 session, BAFN declined 23.53%, reflecting a significant negative market reaction. Argus tracked a trough of -33.0% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility. Trading volume was very high at 4.4x the daily average, suggesting heavy selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jan 29 | Q4 2025 earnings | Negative | +4.5% | Reported Q4 and 2025 net losses with capital ratios improving after loan sale. |
| Oct 30 | Q3 2025 earnings | Negative | -2.3% | Large Q3 net loss and restructuring, including exit from SBA 7(a) lending. |
| Jul 29 | Q2 2025 earnings | Negative | -9.6% | Q2 net loss with elevated charge-offs and higher provision for credit losses. |
| Apr 24 | Q1 2025 earnings | Negative | -9.6% | Small Q1 loss after prior quarter profit, with rising nonperforming assets. |
| Jan 30 | Q4 2024 earnings | Positive | +0.5% | Strong Q4 profit and full-year 2024 income, boosted by branch sale-leaseback gain. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Earnings headlines have often involved net losses and restructuring, with four of the last five tagged earnings events seeing share-price moves that aligned with the generally negative tone.
Over the past five earnings reports, BayFirst moved from strong profitability in Q4 2024 to recurring net losses through 2025, alongside rising credit costs and a strategic exit from SBA 7(a) lending. Subsequent quarters showed continued losses and capital ratio pressure despite de-risking actions and loan sales. Today’s Q1 2026 loss, combined with a large capital raise and leadership change, extends this restructuring and recapitalization trajectory.
Key Terms
private investment in public equity financial
pipe financial
convertible preferred stock financial
net interest margin financial
provision for credit losses financial
noninterest income financial
noninterest expense financial
tier 1 leverage ratio financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
ST. PETERSBURG, Fla., April 30, 2026 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or “Company”), parent company of BayFirst National Bank (“Bank”) today reported the Company has raised
Additionally, the Company reported a net loss of
“Today we announce a substantial recapitalization of BayFirst Financial Corp. and BayFirst National Bank,” stated Anthony Saravanos, Chairman of the Board of Directors. “This successful capital raise reflects the trust our investors place in our institution and our long-term strategic direction. I am also pleased to announce that the Board has elected Alfred Rogers as Chief Executive Officer and President of the Bank, in place of Tom Zernick who is retiring. Al is a veteran banker who is well respected across the Tampa Bay market. He served as CEO of Manufacturers Bank of Florida and most recently as Executive Vice President and Chief Lending Officer of USAmeribank, which was acquired by Valley National Bank.
“The Board of Directors believe that Al’s experience and leadership, combined with this capital raise, will lead BayFirst back to profitability and growth as the premier financial institution of Tampa Bay.”
“I am excited to begin my next chapter with the Board and the Bank’s leadership at BayFirst,” said Rogers. “While progress has been made with our focus on Community Banking, much work lies ahead for us. Our terrific network of branches and dedicated people are the ideal foundation for BayFirst to become the community bank of choice in our market. I’ve been proud to have led several community banks in our area, with each serving and growing local businesses and retail customers. BayFirst has that same dedication to this community, and I’m looking forward to rolling up my sleeves with the team to accomplish great things right here in our backyard.”
Saravanos concluded, “the Board of Directors have made additional decisions, including the resumption of dividend payments to our preferred shareholders and will formally redeem the Series A preferred shares. Furthermore, the Board has appointed Kenneth R. Lehman as a member of the Boards.” Mr. Rogers' appointment to the Board of Directors of the Bank and as Chief Executive Officer have received all necessary regulatory approvals and became effective upon the completion of the capital raise. The appointments of Mr. Rogers as CEO and President of the Company, as well as a director, is contingent upon receipt of regulatory non-objections. Mr. Lehman's appointment to the Boards of Directors of the Company and the Bank are contingent upon receipt of regulatory non-objections.
First Quarter 2026 Performance Review
- Net interest margin was
3.42% in the first quarter of 2026, a decrease of 16 basis points from3.58% in the fourth quarter of 2026 and a decrease of 35 basis points from3.77% in the first quarter of 2025. - Loans held for investment decreased by
$33.5 million , or3.5% , during the first quarter of 2026 to$930.4 million and decreased$154.4 million , or14.2% , over the past year. The decrease from the prior year was partially the result of the sale of$97.4 million of government guaranteed loans to Banesco USA as part of the Bank’s discontinuance of SBA 7(a) lending. - Deposits decreased
$98.1 million , or8.3% , during the first quarter of 2026 and decreased$42.4 million , or3.8% , over the past year to$1.09 billion . The decrease in deposits during the quarter was primarily due to decreases in interest-bearing transaction account balances, savings and money market account balances, and time deposit balances, partially offset by an increase in noninterest-bearing account balances. - Book value and tangible book value at March 31, 2026 were
$15.74 per common share, a decrease from$17.22 at December 31, 2025.
Results of Operations
Net Loss
The Company had a net loss of
Net Interest Income and Net Interest Margin
Net interest income was
The decrease in net interest income during the first quarter of 2026, as compared to the fourth quarter of 2025, was mainly due to a decrease in loan interest income, including fees, of
The decrease in net interest income during the first quarter of 2026, as compared to the year ago quarter, was mainly due to a decrease in loan interest income, including fees, of
Noninterest Income
Noninterest income was
Noninterest Expense
Noninterest expense was
Balance Sheet
Assets
Total assets decreased
Loans
Loans held for investment decreased
Deposits
Deposits decreased
Asset Quality
The Company recorded a provision for credit losses in the first quarter of
The ratio of allowance for credit losses (ACL) on loans to total loans held for investment at amortized cost was
Net charge-offs for the first quarter of 2026 were
Capital
The Bank’s Tier 1 leverage ratio was
Impact of Capital Raise
On a proforma basis, giving effect to a
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 March 31, 2026 was
Recent Events
Following the closing of the PIPE, the Company intends to identify certain criticized assets and develop an Asset Resolution Plan. The Asset Resolution Plan will provide a work-out strategy for identified assets for subsequent disposition, work-out, upgrade, or other resolution.
On April 30, 2026, the Company filed a registration statement on Form S-1 regarding the public offering of up to 4,108,072 shares of Common Stock at an offering price of
Hovde Group, LLC is acting as sole placement agent for the PIPE. Igler and Pearlman, P.A. is serving as legal counsel to the Company, and Alston & Bird LLP, is serving as legal counsel to the placement agent.
Special Meeting of Shareholders
A special meeting of shareholders is scheduled for July 14, 2026 at 8:30 a.m. to approve an amendment to the Company’s articles of incorporation to increase the number of authorized shares to permit the conversion and exchange of the preferred stock issued in the PIPE and the conversion of such preferred stock into shares of common stock.
The Company intends to file a proxy statement with the SEC that will be sent to Company shareholders seeking their approval of the transactions described above. Shareholders are urged to read the proxy statement when it becomes available (and any other relevant documents filed with the SEC in connection with the transactions described herein) because such documents will contain important information regarding the Company, the transactions, certain investors in the transactions, and related matters.
Shareholders may obtain free copies of these documents, once they are filed, and other documents filed with the SEC by the Company through the website maintained by the SEC at http://www.sec.gov. Investors and security holders will also be able to obtain these documents, once they are filed, free of charge, by requesting them in writing from IR@BayFirstFinancial.com, or by telephone at (727) 440-6848. The Company and its directors and executive officers may be deemed to be participants in the solicitation of proxies from Company shareholders. Information about Company directors and executive officers and their ownership of Company common stock is set forth in the Company’ Form 10-K for the year ended December 31, 2025, as previously filed with the SEC on March 27, 2026.
Certain investments discussed above involve the sale of securities in private transactions that will not be registered under the Securities Act of 1933, as amended, and will be subject to the resale restrictions under that Act. Such securities may not be offered or sold absent registration or an applicable exemption from registration. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Conference Call
BayFirst will host a conference call on Friday, May 1, 2026, at 9:00 a.m. ET to discuss its first quarter results. Interested parties may listen to the call live under the Investor Relations tab at www.bayfirstfinancial.com or are invited to dial (800) 549-8228 to participate in the call using Conference ID 37957. 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 March 31, 2026, BayFirst Financial Corp. had
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 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. SELECTED FINANCIAL DATA (Unaudited) | |||||||||||||||||||
| At or for the three months ended | |||||||||||||||||||
| (Dollars in thousands, except for share data) | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | ||||||||||||||
| Net loss | $ | (5,680 | ) | $ | (2,463 | ) | $ | (18,902 | ) | $ | (1,237 | ) | $ | (335 | ) | ||||
| Balance sheet data: | |||||||||||||||||||
| Average loans held for investment at amortized cost | 887,756 | 939,281 | 1,060,520 | 1,047,568 | 1,027,648 | ||||||||||||||
| Average total assets | 1,219,748 | 1,334,912 | 1,345,553 | 1,324,455 | 1,287,618 | ||||||||||||||
| Average common shareholders’ equity | 70,373 | 73,470 | 92,734 | 95,049 | 96,053 | ||||||||||||||
| Government guaranteed loans held for sale | — | — | 94,052 | — | — | ||||||||||||||
| Total loans held for investment | 930,426 | 963,894 | 998,683 | 1,125,799 | 1,084,817 | ||||||||||||||
| Total loans held for investment, excl gov’t gtd loan balances | 855,363 | 893,765 | 923,390 | 972,942 | 943,979 | ||||||||||||||
| Allowance for credit losses | 20,632 | 21,996 | 24,485 | 17,041 | 16,513 | ||||||||||||||
| Total assets | 1,195,910 | 1,300,258 | 1,345,978 | 1,343,867 | 1,291,957 | ||||||||||||||
| Total deposits | 1,085,869 | 1,183,938 | 1,171,457 | 1,163,796 | 1,128,267 | ||||||||||||||
| Common shareholders’ equity | 64,660 | 70,747 | 73,677 | 92,172 | 94,034 | ||||||||||||||
| Share data: | |||||||||||||||||||
| Basic loss per common share | $ | (1.48 | ) | $ | (0.69 | ) | $ | (4.66 | ) | $ | (0.39 | ) | $ | (0.17 | ) | ||||
| Diluted loss per common share | (1.48 | ) | (0.69 | ) | (4.66 | ) | (0.39 | ) | (0.17 | ) | |||||||||
| Dividends per common share | — | — | — | 0.08 | 0.08 | ||||||||||||||
| Book value per common share | 15.74 | 17.22 | 17.90 | 22.30 | 22.77 | ||||||||||||||
| Tangible book value per common share(1) | 15.74 | 17.22 | 17.90 | 22.30 | 22.77 | ||||||||||||||
| Performance ratios: | |||||||||||||||||||
| Return on average assets(2) | (1.86 | )% | (0.74 | )% | (5.62 | )% | (0.37 | )% | (0.10 | )% | |||||||||
| Return on average common equity(2) | (34.47 | )% | (15.51 | )% | (83.19 | )% | (6.83 | )% | (3.00 | )% | |||||||||
| Net interest margin(2) | 3.42 | % | 3.58 | % | 3.61 | % | 4.06 | % | 3.77 | % | |||||||||
| Asset quality ratios: | |||||||||||||||||||
| Net charge-offs | $ | 4,393 | $ | 4,558 | $ | 3,294 | $ | 6,799 | $ | 3,301 | |||||||||
| Net charge-offs/avg loans held for investment at amortized cost(2) | 1.98 | % | 1.94 | % | 1.24 | % | 2.60 | % | 1.28 | % | |||||||||
| Nonperforming loans(3) | $ | 21,453 | $ | 24,343 | $ | 24,687 | $ | 21,665 | $ | 24,806 | |||||||||
| Nonperforming loans (excluding gov't gtd balance)(3) | $ | 15,873 | $ | 16,271 | $ | 15,822 | $ | 14,187 | $ | 15,078 | |||||||||
| Nonperforming loans/total loans held for investment(3) | 2.44 | % | 2.68 | % | 2.63 | % | 2.09 | % | 2.42 | % | |||||||||
| Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) | 1.81 | % | 1.79 | % | 1.69 | % | 1.37 | % | 1.47 | % | |||||||||
| ACL/Total loans held for investment at amortized cost | 2.35 | % | 2.42 | % | 2.61 | % | 1.65 | % | 1.61 | % | |||||||||
| ACL/Total loans held for investment at amortized cost, excl government guaranteed loans | 2.53 | % | 2.58 | % | 2.78 | % | 1.85 | % | 1.84 | % | |||||||||
| Other Data: | |||||||||||||||||||
| Full-time equivalent employees | 143 | 144 | 237 | 300 | 305 | ||||||||||||||
| Banking center offices | 12 | 12 | 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 | |||||||||||||||||||
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) | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | March 31, 2025 | ||||||||||||||
| Total shareholders’ equity | $ | 81,867 | $ | 87,569 | $ | 89,728 | $ | 108,223 | $ | 110,085 | |||||||||
| Less: Preferred stock liquidation preference | (17,207 | ) | (16,822 | ) | (16,051 | ) | (16,051 | ) | (16,051 | ) | |||||||||
| Total equity available to common shareholders | 64,660 | 70,747 | 73,677 | 92,172 | 94,034 | ||||||||||||||
| Less: Goodwill | — | — | — | — | — | ||||||||||||||
| Tangible common shareholders' equity | $ | 64,660 | $ | 70,747 | $ | 73,677 | $ | 92,172 | $ | 94,034 | |||||||||
| Common shares outstanding | 4,108,072 | 4,108,069 | 4,116,913 | 4,134,127 | 4,129,027 | ||||||||||||||
| Tangible book value per common share | $ | 15.74 | $ | 17.22 | $ | 17.90 | $ | 22.30 | $ | 22.77 | |||||||||
| BAYFIRST FINANCIAL CORP. | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (Dollars in thousands) | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||
| Assets | Unaudited | Unaudited | |||||||
| Cash and due from banks | $ | 6,848 | $ | 5,123 | $ | 6,517 | |||
| Interest-bearing deposits in banks | 127,617 | 201,859 | 56,637 | ||||||
| Cash and cash equivalents | 134,465 | 206,982 | 63,154 | ||||||
| Time deposits in banks | — | — | 2,025 | ||||||
| Investment securities available for sale, at fair value (amortized cost | 28,531 | 29,363 | 36,318 | ||||||
| Investment securities held to maturity, at amortized cost, net of allowance for credit losses of | 2,490 | 2,493 | 2,488 | ||||||
| Nonmarketable equity securities | 4,662 | 4,656 | 5,480 | ||||||
| Government guaranteed loans held for investment, at fair value | 51,807 | 54,076 | 57,901 | ||||||
| Loans held for investment, at amortized cost | 878,619 | 909,818 | 1,026,916 | ||||||
| Allowance for credit losses on loans | (20,632 | ) | (21,996 | ) | (16,513 | ) | |||
| Net Loans held for investment, at amortized cost | 857,987 | 887,822 | 1,010,403 | ||||||
| Accrued interest receivable | 7,683 | 8,421 | 9,153 | ||||||
| Premises and equipment, net | 30,690 | 31,188 | 32,769 | ||||||
| Loan servicing rights | 11,334 | 12,580 | 16,460 | ||||||
| Deferred income tax assets | 8,489 | 6,538 | — | ||||||
| Right-of-use operating lease assets | 14,171 | 14,504 | 15,484 | ||||||
| Bank owned life insurance | 27,457 | 27,264 | 26,696 | ||||||
| Other real estate owned | 400 | 400 | 132 | ||||||
| Other assets | 15,744 | 13,971 | 13,494 | ||||||
| Total assets | $ | 1,195,910 | $ | 1,300,258 | $ | 1,291,957 | |||
| Liabilities: | |||||||||
| Noninterest-bearing deposit accounts | $ | 111,476 | $ | 95,731 | $ | 106,236 | |||
| Interest-bearing transaction accounts | 153,860 | 231,227 | 261,074 | ||||||
| Savings and money market deposit accounts | 432,781 | 454,639 | 467,766 | ||||||
| Time deposits | 387,752 | 402,341 | 293,191 | ||||||
| Total deposits | 1,085,869 | 1,183,938 | 1,128,267 | ||||||
| FHLB borrowings | — | — | 20,000 | ||||||
| Subordinated debentures | 6,099 | 5,962 | 5,957 | ||||||
| Notes payable | 1,479 | 1,593 | 1,820 | ||||||
| Accrued interest payable | 958 | 1,133 | 1,053 | ||||||
| Operating lease liabilities | 13,003 | 13,264 | 14,102 | ||||||
| Deferred income tax liabilities | — | — | 648 | ||||||
| Accrued expenses and other liabilities | 6,635 | 6,799 | 10,025 | ||||||
| Total liabilities | 1,114,043 | 1,212,689 | 1,181,872 | ||||||
| Shareholders’ equity: | Unaudited | Unaudited | |||||||
| Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at March 31, 2026, December 31, 2025, and March 31, 2025; aggregate liquidation preference of | 6,161 | 6,161 | 6,161 | ||||||
| Preferred stock, Series B; no par value, 20,000 shares authorized, 3,210 shares issued and outstanding at March 31, 2026, December 31, 2025, and March 31, 2025; aggregate liquidation preference of | 3,123 | 3,123 | 3,123 | ||||||
| Preferred stock, Series C; no par value, 10,000 shares authorized, 6,446 shares issued and outstanding at March 31, 2026, December 31, 2025, and March 31, 2025; aggregate liquidation preference of | 6,446 | 6,446 | 6,446 | ||||||
| Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,108,072, 4,108,609, and 4,129,027 shares issued and outstanding at March 31, 2026, December 31, 2025, and March 31, 2025, respectively | 54,390 | 54,371 | 54,657 | ||||||
| Accumulated other comprehensive loss, net | (2,054 | ) | (1,960 | ) | (2,378 | ) | |||
| Unearned compensation | (282 | ) | (335 | ) | (1,006 | ) | |||
| Retained earnings | 14,083 | 19,763 | 43,082 | ||||||
| Total shareholders’ equity | 81,867 | 87,569 | 110,085 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,195,910 | $ | 1,300,258 | $ | 1,291,957 | |||
| BAYFIRST FINANCIAL CORP. | |||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||
| For the Quarter Ended | |||||||||||
| (Dollars in thousands, except per share data) | 3/31/2026 | 12/31/2025 | 3/31/2025 | ||||||||
| Interest income: | |||||||||||
| Loans, including fees | $ | 15,930 | $ | 19,326 | $ | 19,751 | |||||
| Interest-bearing deposits in banks and other | 1,509 | 1,624 | 934 | ||||||||
| Total interest income | 17,439 | 20,950 | 20,685 | ||||||||
| Interest expense: | |||||||||||
| Deposits | 7,893 | 9,451 | 9,431 | ||||||||
| Other | 97 | 341 | 255 | ||||||||
| Total interest expense | 7,990 | 9,792 | 9,686 | ||||||||
| Net interest income | 9,449 | 11,158 | 10,999 | ||||||||
| Provision for credit losses | 3,078 | 2,007 | 4,400 | ||||||||
| Net interest income after provision for credit losses | 6,371 | 9,151 | 6,599 | ||||||||
| Noninterest income: | |||||||||||
| Loan servicing income, net | 770 | 788 | 736 | ||||||||
| Gain (loss) on sale of government guaranteed loans, net | (97 | ) | 290 | 7,327 | |||||||
| Service charges and fees | 490 | 471 | 449 | ||||||||
| Government guaranteed loans fair value loss, net | (533 | ) | (1,880 | ) | (755 | ) | |||||
| Government guaranteed loan packaging fees | — | 95 | 716 | ||||||||
| Gain on sale of premises and equipment | 13 | — | — | ||||||||
| Other noninterest income | 241 | 132 | 278 | ||||||||
| Total noninterest income | 884 | (104 | ) | 8,751 | |||||||
| Noninterest Expense: | |||||||||||
| Salaries and benefits | 5,069 | 4,681 | 7,998 | ||||||||
| Bonus, commissions, and incentives | 290 | (8 | ) | 71 | |||||||
| Occupancy and equipment | 1,368 | 1,330 | 1,634 | ||||||||
| Data processing | 1,489 | 1,687 | 2,045 | ||||||||
| Marketing and business development | 123 | 281 | 487 | ||||||||
| Professional services | 1,164 | 1,083 | 732 | ||||||||
| Loan servicing and origination expense | 3,836 | 1,135 | 1,035 | ||||||||
| Employee recruiting and development | 202 | 210 | 617 | ||||||||
| Regulatory assessments | 578 | 694 | 339 | ||||||||
| Restructure charges | — | 21 | — | ||||||||
| Other noninterest expense | 767 | 755 | 855 | ||||||||
| Total noninterest expense | 14,886 | 11,869 | 15,813 | ||||||||
| Loss before taxes | (7,631 | ) | (2,822 | ) | (463 | ) | |||||
| Income tax benefit | (1,951 | ) | (359 | ) | (128 | ) | |||||
| Net loss | (5,680 | ) | (2,463 | ) | (335 | ) | |||||
| Preferred dividends | 385 | 385 | 385 | ||||||||
| Net loss attributable to common shareholders | $ | (6,065 | ) | $ | (2,848 | ) | $ | (720 | ) | ||
| Basic loss per common share | $ | (1.48 | ) | $ | (0.69 | ) | $ | (0.17 | ) | ||
| Diluted loss per common share | $ | (1.48 | ) | $ | (0.69 | ) | $ | (0.17 | ) | ||
Loan Composition
| (Dollars in thousands) | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| Real estate: | |||||||||||||||||||
| Residential | $ | 359,305 | $ | 365,427 | $ | 364,020 | $ | 356,559 | $ | 339,886 | |||||||||
| Commercial | 216,643 | 215,771 | 231,039 | 292,923 | 296,351 | ||||||||||||||
| Construction and land | 36,732 | 48,397 | 43,700 | 53,187 | 46,740 | ||||||||||||||
| Commercial and industrial | 171,666 | 181,566 | 194,654 | 223,239 | 234,384 | ||||||||||||||
| Commercial and industrial - PPP | 6 | 6 | 13 | 191 | 457 | ||||||||||||||
| Consumer and other | 82,269 | 86,441 | 90,946 | 93,333 | 93,889 | ||||||||||||||
| Loans held for investment, at amortized cost, gross | 866,621 | 897,608 | 924,372 | 1,019,432 | 1,011,707 | ||||||||||||||
| Deferred loan costs, net | 15,559 | 16,371 | 17,096 | 21,118 | 20,521 | ||||||||||||||
| Discount on government guaranteed loans | (6,007 | ) | (6,811 | ) | (7,506 | ) | (8,780 | ) | (8,727 | ) | |||||||||
| Premium on loans purchased, net | 2,446 | 2,650 | 2,941 | 3,342 | 3,415 | ||||||||||||||
| Loans held for investment, at amortized cost, net | 878,619 | 909,818 | 936,903 | 1,035,112 | 1,026,916 | ||||||||||||||
| Government guaranteed loans held for investment, at fair value | 51,807 | 54,076 | 61,780 | 90,687 | 57,901 | ||||||||||||||
| Total loans held for investment, net | $ | 930,426 | $ | 963,894 | $ | 998,683 | $ | 1,125,799 | $ | 1,084,817 | |||||||||
Nonperforming Assets (Unaudited)
| (Dollars in thousands) | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | 3/31/2025 | ||||||||||||||
| Nonperforming loans (government guaranteed balances), at amortized cost, gross | $ | 5,580 | $ | 8,072 | $ | 8,865 | $ | 7,478 | $ | 9,728 | |||||||||
| Nonperforming loans (unguaranteed balances), at amortized cost, gross | 15,873 | 16,271 | 15,822 | 14,187 | 15,078 | ||||||||||||||
| Total nonperforming loans, at amortized cost, gross | 21,453 | 24,343 | 24,687 | 21,665 | 24,806 | ||||||||||||||
| Nonperforming loans (government guaranteed balances), at fair value | 208 | 83 | — | 502 | 507 | ||||||||||||||
| Nonperforming loans (unguaranteed balances), at fair value | 1,230 | 1,453 | 1,385 | 1,430 | 1,419 | ||||||||||||||
| Total nonperforming loans, at fair value | 1,438 | 1,536 | 1,385 | 1,932 | 1,926 | ||||||||||||||
| OREO | 400 | 400 | 400 | 400 | 132 | ||||||||||||||
| Repossessed assets | 583 | 263 | 32 | — | 36 | ||||||||||||||
| Total nonperforming assets, gross | $ | 23,874 | $ | 26,542 | $ | 26,504 | $ | 23,997 | $ | 26,900 | |||||||||
| Nonperforming loans as a percentage of total loans held for investment(1) | 2.44 | % | 2.68 | % | 2.63 | % | 2.09 | % | 2.42 | % | |||||||||
| Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1) | 1.81 | % | 1.79 | % | 1.69 | % | 1.37 | % | 1.47 | % | |||||||||
| Nonperforming assets as a percentage of total assets | 2.00 | % | 2.04 | % | 1.97 | % | 1.79 | % | 2.08 | % | |||||||||
| Nonperforming assets (excluding government guaranteed balances) to total assets | 1.38 | % | 1.29 | % | 1.21 | % | 1.12 | % | 1.22 | % | |||||||||
| ACL to nonperforming loans(1) | 96.17 | % | 90.35 | % | 99.18 | % | 78.66 | % | 66.57 | % | |||||||||
| ACL to nonperforming loans (excluding government guaranteed balances)(1) | 129.98 | % | 135.18 | % | 154.75 | % | 120.12 | % | 109.52 | % | |||||||||
(1) Excludes loans measured at fair value
| Contact: |
| Scott J. McKim |
| Chief Financial Officer |
| 727.521.7085 |
