BayFirst Financial Corp. Reports Second Quarter 2026 Results
Rhea-AI Summary
BayFirst Financial Corp. (NASDAQ: BAFN) reported a second quarter 2026 net loss of $32.7 million, or $8.05 per share, mainly driven by $41.5 million of expenses tied to an asset resolution plan focused on government guaranteed and over 7,000 unguaranteed SBA 7(a) loans.
The Company completed an $80 million capital raise announced April 28, 2026, investing $60 million into BayFirst National Bank, and recorded sizable provision, fair value write-downs, and impairments. Net interest margin was 3.48% (4.07% excluding write-downs), loans fell to $882.8 million, and deposits to $988.9 million.
Allowance for credit losses rose to 5.37% of loans, while nonperforming assets declined to 1.75% of total assets. Bank capital ratios improved, with a Tier 1 leverage ratio of 8.30%, and the Bank remained well-capitalized as of June 30, 2026.
Positive
- $80 million capital raise; $60 million downstreamed to the Bank
- Tier 1 leverage ratio improved to 8.30% at June 30, 2026
- CET1 capital ratio rose to 11.47%; total risk-based to 12.77%
- Allowance for credit losses increased to 5.37% of total loans
- Net interest margin excluding write-downs reported at 4.07%
- Nonperforming assets declined to 1.75% of total assets
- Cost of funds reduced by 20 basis points during the quarter
Negative
- Q2 2026 net loss of $32.7 million, or $8.05 per share
- Asset resolution plan drove $41.5 million of related expenses
- Book value per share fell from $14.22 to $4.83 in quarter
- Noninterest income was negative $6.8 million in Q2 2026
- Loans held for investment down 21.2% year-over-year to $882.8 million
- Deposits declined $97.0 million (8.9%) in quarter to $988.9 million
- Provision for credit losses increased to $29.0 million in Q2 2026
- Company is restating 2024–2025 and Q1 2026 financial statements
News Explained
The completed preferred-to-common exchange adds 22,856,000 common shares; a separate rights offering remains at the planned launch stage.
BayFirst Financial Corp. exchanged all
Shareholders approved increasing authorized common shares from
BayFirst formally redeemed all outstanding Series A and Series B preferred shares on
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 30 | Q1 earnings report | Negative | -23.5% | Capital raise and quarterly loss accompanied improved pro forma capital ratios |
| Jan 29 | Q4 earnings report | Neutral | +4.5% | Quarterly loss accompanied improved capital ratios and SBA loan sale |
| Oct 30 | Q3 earnings report | Negative | -2.3% | SBA lending exit and restructuring charges drove the quarterly loss |
| Jul 29 | Q2 earnings report | Negative | -9.6% | Higher provision expense and asset quality pressure drove the quarterly loss |
| Apr 24 | Q1 earnings report | Negative | -9.6% | Quarterly loss reflected weaker results and increased nonperforming assets |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings events averaged a -8.11% 24-hour move, with four of five reactions negative.
Key Terms
net interest margin financial
nonaccrual status financial
net charge-offs financial
tier 1 leverage ratio regulatory
cet 1 regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
ST. PETERSBURG, Fla., Aug. 13, 2026 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or “Company”), parent company of BayFirst National Bank (“Bank”) reported a net loss of
“This quarter’s results reflect the financial impact of actions taken under our asset resolution plan, a deliberate step we believe strengthens our balance sheet and will position us well for the future,” stated Alfred Rogers, Chief Executive Officer. “Even as we absorbed this impact, we continued to invest in our Community Banking initiatives, including the upcoming opening of our newest branch in South Tampa, reflecting our long-term commitment to the markets we serve regardless of near-term conditions. We are taking a disciplined approach as we work through the issues affecting our performance, with a clear focus on the fundamentals of profitability and serving our local markets.
“We take our obligation to provide accurate and transparent financial reporting seriously. When we identified an understatement of provision expense and an overstatement of gain of sale on government guaranteed loans through our internal review process, we moved quickly to investigate, correct it, and inform our shareholders and regulators. The Bank remains well capitalized and well positioned to continue serving our customers and communities as we work toward improved performance.
“BayFirst’s commitment to the communities we serve has not changed, and I am confident we will keep strengthening our position as the community bank of choice within our Tampa Bay and Sarasota markets.”
Second Quarter 2026 Performance Review
- The capital raise reported on April 28, 2026 was
$80 million before transaction fees. Of this total investment,$60 million was invested in the Bank during the second quarter. - The Company 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. As a result, the Company recorded
$41.5 million of provision expense, write-downs on loans measured at fair value, amortization of premiums paid on purchased government guaranteed loans, and impairment on nonmarketable securities during the quarter. - Net interest margin was
3.48% in the second quarter of 2026, an increase of 4 basis points from3.44% in the first quarter of 2026 and a decrease of 53 basis points from4.01% in the second quarter of 2025. - Loans held for investment decreased by
$41.4 million , or4.5% , during the second quarter of 2026 to$882.8 million and decreased$237.7 million , or21.2% , over the past year. The decrease from the prior year was partially the result of no new SBA 7(a) loan originations and the sale of$97.4 million of government guaranteed loans to a third party as part of the Bank’s discontinuance of SBA 7(a) lending. - Deposits decreased
$97.0 million , or8.9% , during the second quarter of 2026 and decreased$174.9 million , or15.0% , over the past year to$988.9 million . The decrease in deposits during the quarter was primarily due to decreases in high-rate promotional interest-bearing transaction account balances, savings and money market account balances, brokered deposits, and time deposit balances, partially offset by an increase in noninterest-bearing account balances. - At June 30, 2026, book value per common share was
$4.83 and tangible book value was$4.82 per common share, a decrease from$14.22 at March 31, 2026. The decrease was primarily the result of the net loss in the second quarter 2026.
Results of Operations
Net Loss
The Company had a net loss of
For the six months ended June 30, 2026, 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 second quarter of 2026, as compared to the year ago quarter, was mainly due to a decrease in loan interest income, including fees, of
Net interest income was
Noninterest Income
Noninterest income was a negative
Noninterest income was a negative
Noninterest Expense
Noninterest expense was
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 second 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 second quarter of 2026 were
Capital
The Bank’s Tier 1 leverage ratio was
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 June 30, 2026 was
Recent Events
Restatement of Previously Issued Financial Statements
As previously disclosed in the Current Report on Form 8-K filed with the SEC on July 15, 2026, the Company is restating its previously issued financial statements as and for the years ended December 31, 2024, and December 31, 2025, and the quarter ended March 31, 2026.
Management identified
Stock Purchase and Exchange Agreements and Rights Offering
On July 14, 2026, the Company obtained shareholder approval to amend the BayFirst Financial Corp. Articles of Incorporation to increase the number of authorized shares of the common stock from 15,000,000 to 100,000,000 and exchanged all 4,000 outstanding shares of Mandatorily Convertible Cumulative Perpetual Preferred Stock, Series D, and all 4,000 outstanding shares of Mandatorily Convertible Cumulative Perpetual Preferred Stock, Series E for a total of 22,856,000 shares of common stock. Upon conversion, all shares of Series D and Series E Preferred Stock were retired. Management also noted a Mid-August launch date for the rights offering, discussed in the Stock Purchase Agreement included with the Company’s Form 8-K and the exhibits dated April 28, 2026, and filed with the Securities and Exchange Commission on April 30, 2026.
Redemption of Series A and Series B Preferred Shares
On July 20, 2026, the Company sent notifications to holders of Series A and Series B Preferred Shares formally redeeming all shares outstanding. On August 10, 2026, the Company made a payment in the amount of
Conference Call
BayFirst will host a conference call on Friday, August 14, 2026, at 9:00 a.m. ET to discuss its second quarter results. Interested parties may listen to the call live under the Investor Relations tab at www.bayfirstfinancial.com or are invited to dial (833) 461-5787 to participate in the call using Conference ID 560643219. 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 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 June 30, 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.
| Contacts: | Contact: |
| Alfred T. Rogers, Jr. | Scott J. McKim |
| Chief Executive Officer and President | Chief Financial Officer |
| 727.685.2097 | 727.521.7085 |
BAYFIRST FINANCIAL CORP.
SELECTED FINANCIAL DATA (Unaudited)
| At or for the three months ended | |||||||||||||||||||
| (Dollars in thousands, except for share data) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | ||||||||||||||
| As restated | As restated | As restated | As restated | ||||||||||||||||
| Net loss | $ | (32,665 | ) | $ | (5,930 | ) | $ | (2,696 | ) | $ | (19,077 | ) | $ | (1,854 | ) | ||||
| Balance sheet data: | |||||||||||||||||||
| Average loans held for investment at amortized cost | 858,931 | 881,938 | 933,401 | 1,054,946 | 1,042,247 | ||||||||||||||
| Average total assets | 1,185,392 | 1,213,823 | 1,328,923 | 1,339,795 | 1,316,901 | ||||||||||||||
| Average common shareholders’ equity | 67,624 | 64,448 | 67,481 | 86,976 | 89,452 | ||||||||||||||
| Government guaranteed loans held for sale | — | — | — | 94,052 | — | ||||||||||||||
| Total loans held for investment | 882,840 | 924,220 | 958,014 | 993,109 | 1,120,499 | ||||||||||||||
| Total loans held for investment, excl gov’t gtd loan balances | 805,684 | 849,157 | 887,885 | 917,816 | 967,642 | ||||||||||||||
| Allowance for credit losses | 45,081 | 20,632 | 21,996 | 24,485 | 17,041 | ||||||||||||||
| Total assets | 1,134,925 | 1,189,671 | 1,294,269 | 1,340,222 | 1,337,391 | ||||||||||||||
| Total deposits | 988,874 | 1,085,869 | 1,183,938 | 1,171,457 | 1,163,796 | ||||||||||||||
| Common shareholders’ equity | 19,850 | 58,421 | 64,758 | 67,921 | 86,591 | ||||||||||||||
| Share data: | |||||||||||||||||||
| Basic loss per common share | $ | (8.05 | ) | $ | (1.54 | ) | $ | (0.75 | ) | $ | (4.71 | ) | $ | (0.54 | ) | ||||
| Diluted loss per common share | (8.05 | ) | (1.54 | ) | (0.75 | ) | (4.71 | ) | (0.54 | ) | |||||||||
| Dividends per common share | — | — | — | — | 0.08 | ||||||||||||||
| Book value per common share | 4.83 | 14.22 | 15.76 | 16.50 | 20.95 | ||||||||||||||
| Tangible book value per common share (1) | 4.82 | 14.22 | 15.76 | 16.50 | 20.95 | ||||||||||||||
| Performance ratios: | |||||||||||||||||||
| Return on average assets(2) | (11.02)% | (1.95)% | (0.81)% | (5.70)% | (0.56)% | ||||||||||||||
| Return on average common equity(2) | (195.50)% | (39.19)% | (18.26)% | (89.51)% | (10.02)% | ||||||||||||||
| Net interest margin(2) | 3.48 | % | 3.44 | % | 3.60 | % | 3.64 | % | 4.01 | % | |||||||||
| Asset quality ratios: | |||||||||||||||||||
| Net charge-offs | $ | 4,460 | $ | 4,719 | $ | 4,865 | $ | 3,544 | $ | 7,142 | |||||||||
| Net charge-offs/avg loans held for investment at amortized cost(2) | 2.08 | % | 2.14 | % | 2.08 | % | 1.34 | % | 2.74 | % | |||||||||
| Nonperforming loans(3) | $ | 18,457 | $ | 21,453 | $ | 24,343 | $ | 24,687 | $ | 21,665 | |||||||||
| Nonperforming loans (excluding gov't gtd balance)(3) | $ | 14,434 | $ | 15,873 | $ | 16,271 | $ | 15,822 | $ | 14,187 | |||||||||
| Nonperforming loans/total loans held for investment(3) | 2.20 | % | 2.46 | % | 2.69 | % | 2.65 | % | 2.10 | % | |||||||||
| Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) | 1.72 | % | 1.82 | % | 1.80 | % | 1.70 | % | 1.38 | % | |||||||||
| ACL/Total loans held for investment at amortized cost | 5.37 | % | 2.36 | % | 2.43 | % | 2.63 | % | 1.65 | % | |||||||||
| ACL/Total loans held for investment at amortized cost, excl government guaranteed loans | 5.82 | % | 2.55 | % | 2.60 | % | 2.80 | % | 1.86 | % | |||||||||
| Other Data: | |||||||||||||||||||
| Full-time equivalent employees | 148 | 143 | 144 | 237 | 300 | ||||||||||||||
| Banking center offices | 11 | 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 adjusted income before income taxes, 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.
| Adjusted loss before income taxes | Three Months Ended June 30, 2026 | Six Months Ended June 30, 2026 | ||||||
| Loss before income taxes as reported | $ | (44,040 | ) | $ | (52,006 | ) | ||
| Less: Asset resolution plan expense | ||||||||
| Interest income on loans, including fees | 1,616 | 1,616 | ||||||
| Provision for credit losses | 30,510 | 30,510 | ||||||
| Noninterest income | 7,700 | 7,700 | ||||||
| Noninterest expense | 1,720 | 1,720 | ||||||
| Total Asset resolution plan expense | 41,546 | 41,546 | ||||||
| Adjusted loss before income taxes | $ | (2,494 | ) | $ | (10,460 | ) | ||
| Tangible Common Shareholders' Equity and Tangible Book Value Per Common Share (Unaudited) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| (Dollars in thousands, except for share data) | June 30, 2026 | March 31, 2026 | December 31, 2025 | September 30, 2025 | June 30, 2025 | |||||||||||||||
| As restated | As restated | As restated | As restated | |||||||||||||||||
| Total shareholders’ equity | $ | 115,901 | $ | 75,628 | $ | 81,580 | $ | 83,972 | $ | 102,642 | ||||||||||
| Less: Preferred stock liquidation preference | (96,051 | ) | (17,207 | ) | (16,822 | ) | (16,051 | ) | (16,051 | ) | ||||||||||
| Total equity available to common shareholders | 19,850 | 58,421 | 64,758 | 67,921 | 86,591 | |||||||||||||||
| Less: Intangible assets | (62 | ) | — | — | — | — | ||||||||||||||
| Tangible common shareholders' equity | $ | 19,788 | $ | 58,421 | $ | 64,758 | $ | 67,921 | $ | 86,591 | ||||||||||
| Common shares outstanding | 4,106,905 | 4,108,072 | 4,108,069 | 4,116,913 | 4,134,127 | |||||||||||||||
| Tangible book value per common share | $ | 4.82 | $ | 14.22 | $ | 15.76 | $ | 16.50 | $ | 20.95 | ||||||||||
| BAYFIRST FINANCIAL CORP. | |||||||||
| CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||
| (Dollars in thousands) | 6/30/2026 | 3/31/2026 | 6/30/2025 | ||||||
| Assets | As restated | As restated | |||||||
| Cash and due from banks | $ | 5,641 | $ | 6,848 | $ | 6,142 | |||
| Interest-bearing deposits in banks | 133,524 | 127,617 | 71,157 | ||||||
| Cash and cash equivalents | 139,165 | 134,465 | 77,299 | ||||||
| Time deposits in banks | — | — | 1,280 | ||||||
| Investment securities available for sale, at fair value (amortized cost | 27,778 | 28,531 | 30,256 | ||||||
| Investment securities held to maturity, at amortized cost, net of allowance for credit losses of | 2,493 | 2,491 | 2,491 | ||||||
| Nonmarketable equity securities | 3,164 | 4,662 | 6,551 | ||||||
| Government guaranteed loans held for investment, at fair value | 43,847 | 51,807 | 90,687 | ||||||
| Loans held for investment, at amortized cost | 838,993 | 872,413 | 1,029,812 | ||||||
| Allowance for credit losses on loans | (45,081 | ) | (20,632 | ) | (17,041 | ) | |||
| Net Loans held for investment, at amortized cost | 793,912 | 851,781 | 1,012,771 | ||||||
| Accrued interest receivable | 5,127 | 5,570 | 7,360 | ||||||
| Premises and equipment, net | 30,245 | 30,690 | 32,407 | ||||||
| Loan servicing rights | 9,942 | 11,334 | 16,074 | ||||||
| Deferred income tax assets | 21,253 | 9,862 | 247 | ||||||
| Right-of-use operating lease assets | 13,720 | 14,171 | 15,160 | ||||||
| Bank owned life insurance | 27,654 | 27,457 | 26,881 | ||||||
| Other real estate owned | 532 | 400 | 400 | ||||||
| Other assets | 16,093 | 16,450 | 17,527 | ||||||
| Total assets | $ | 1,134,925 | $ | 1,189,671 | $ | 1,337,391 | |||
| Liabilities: | |||||||||
| Noninterest-bearing deposit accounts | $ | 116,788 | $ | 111,476 | $ | 109,698 | |||
| Interest-bearing transaction accounts | 135,628 | 153,860 | 238,215 | ||||||
| Savings and money market deposit accounts | 422,933 | 432,781 | 493,005 | ||||||
| Time deposits | 313,525 | 387,752 | 322,878 | ||||||
| Total deposits | 988,874 | 1,085,869 | 1,163,796 | ||||||
| FHLB borrowings | — | — | 40,000 | ||||||
| Subordinated debentures | 5,966 | 6,099 | 5,959 | ||||||
| Notes payable | 1,252 | 1,479 | 1,707 | ||||||
| Accrued interest payable | 597 | 958 | 1,148 | ||||||
| Operating lease liabilities | 12,694 | 13,003 | 13,819 | ||||||
| Accrued expenses and other liabilities | 9,641 | 6,635 | 8,320 | ||||||
| Total liabilities | 1,019,024 | 1,114,043 | 1,234,749 | ||||||
| Shareholders’ equity: | As restated | As restated | |||||||
| Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at June 30, 2026, March 31, 2026, and June 30, 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 June 30, 2026, March 31, 2026, and June 30, 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 June 30, 2026, March 31, 2026, and June 30, 2025; aggregate liquidation preference of | 6,446 | 6,446 | 6,446 | ||||||
| Preferred stock, Series D; no par value, 4,000 shares authorized, issued and outstanding at June 30, 2026 and no shares authorized, issued and outstanding at March 31, 2026 and June 30, 2025; aggregate liquidation preference of | 37,254 | — | — | ||||||
| Preferred stock, Series E; no par value, 4,000 shares authorized, issued and outstanding at June 30, 2026 and no shares authorized, issued and outstanding at March 31, 2026 and June 30, 2025; aggregate liquidation preference of | 37,254 | — | — | ||||||
| Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,106,905, 4,108,072, and 4,134,127 shares issued and outstanding at June 30, 2026, March 31, 2026, and June 30, 2025, respectively | 54,382 | 54,390 | 54,739 | ||||||
| Accumulated other comprehensive loss, net | (2,111 | ) | (2,054 | ) | (2,368 | ) | |||
| Unearned compensation | (245 | ) | (282 | ) | (1,006 | ) | |||
| Retained earnings | (26,363 | ) | 7,844 | 35,547 | |||||
| Total shareholders’ equity | 115,901 | 75,628 | 102,642 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,134,925 | $ | 1,189,671 | $ | 1,337,391 | |||
| BAYFIRST FINANCIAL CORP. | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||||||||||
| For the Quarter Ended | Year-to-Date | ||||||||||||||||||
| (Dollars in thousands, except per share data) | 6/30/2026 | 3/31/2026 | 6/30/2025 | 6/30/2026 | 6/30/2025 | ||||||||||||||
| Interest income: | As restated | As restated | As restated | ||||||||||||||||
| Loans, including fees | $ | 14,803 | $ | 15,921 | $ | 21,238 | $ | 30,724 | $ | 40,600 | |||||||||
| Interest-bearing deposits in banks and other | 1,562 | 1,509 | 1,046 | 3,071 | 1,980 | ||||||||||||||
| Total interest income | 16,365 | 17,430 | 22,284 | 33,795 | 42,580 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Deposits | 6,850 | 7,893 | 9,282 | 14,743 | 18,713 | ||||||||||||||
| Other | 93 | 97 | 875 | 190 | 1,130 | ||||||||||||||
| Total interest expense | 6,943 | 7,990 | 10,157 | 14,933 | 19,843 | ||||||||||||||
| Net interest income | 9,422 | 9,440 | 12,127 | 18,862 | 22,737 | ||||||||||||||
| Provision for credit losses | 28,977 | 3,404 | 7,607 | 32,381 | 12,167 | ||||||||||||||
| Net interest income after provision for credit losses | (19,555 | ) | 6,036 | 4,520 | (13,519 | ) | 10,570 | ||||||||||||
| Noninterest income: | |||||||||||||||||||
| Loan servicing income, net | 588 | 770 | 484 | 1,358 | 1,220 | ||||||||||||||
| Gain (loss) on sale of government guaranteed loans, net | — | (97 | ) | 5,872 | (97 | ) | 12,936 | ||||||||||||
| Service charges and fees | 497 | 490 | 473 | 987 | 922 | ||||||||||||||
| Government guaranteed loans fair value loss, net | (6,468 | ) | (533 | ) | 2,442 | (7,001 | ) | 1,687 | |||||||||||
| Government guaranteed loan packaging fees | — | — | 577 | — | 1,293 | ||||||||||||||
| Loss on nonmarketable securities | (1,500 | ) | — | — | (1,500 | ) | — | ||||||||||||
| Gain on sale of premises and equipment | (34 | ) | 13 | — | (21 | ) | — | ||||||||||||
| Other noninterest income | 108 | 241 | 683 | 349 | 961 | ||||||||||||||
| Total noninterest income | (6,809 | ) | 884 | 10,531 | (5,925 | ) | 19,019 | ||||||||||||
| Noninterest Expense: | |||||||||||||||||||
| Salaries and benefits | 5,332 | 5,069 | 8,113 | 10,401 | 16,111 | ||||||||||||||
| Bonus, commissions, and incentives | 741 | 290 | 262 | 1,031 | 333 | ||||||||||||||
| Occupancy and equipment | 1,352 | 1,368 | 1,579 | 2,720 | 3,213 | ||||||||||||||
| Data processing | 2,649 | 1,489 | 2,078 | 4,138 | 4,123 | ||||||||||||||
| Marketing and business development | 157 | 123 | 403 | 280 | 890 | ||||||||||||||
| Professional services | 1,172 | 1,164 | 782 | 2,336 | 1,514 | ||||||||||||||
| Loan servicing and origination expense | 3,122 | 3,836 | 2,558 | 6,958 | 3,593 | ||||||||||||||
| Employee recruiting and development | 248 | 202 | 462 | 450 | 1,079 | ||||||||||||||
| Regulatory assessments | 611 | 578 | 352 | 1,189 | 691 | ||||||||||||||
| Other noninterest expense | 2,292 | 767 | 939 | 3,059 | 1,794 | ||||||||||||||
| Total noninterest expense | 17,676 | 14,886 | 17,528 | 32,562 | 33,341 | ||||||||||||||
| Loss before taxes | (44,040 | ) | (7,966 | ) | (2,477 | ) | (52,006 | ) | (3,752 | ) | |||||||||
| Income tax expense (benefit) | (11,375 | ) | (2,036 | ) | (623 | ) | (13,411 | ) | (960 | ) | |||||||||
| Net loss | (32,665 | ) | (5,930 | ) | (1,854 | ) | (38,595 | ) | (2,792 | ) | |||||||||
| Preferred dividends | 386 | 385 | 386 | 771 | 771 | ||||||||||||||
| Net loss attributable to common shareholders | $ | (33,051 | ) | $ | (6,315 | ) | $ | (2,240 | ) | $ | (39,366 | ) | $ | (3,563 | ) | ||||
| Basic loss per common share | $ | (8.05 | ) | $ | (1.54 | ) | $ | (0.54 | ) | $ | (9.58 | ) | $ | (0.86 | ) | ||||
| Diluted loss per common share | $ | (8.05 | ) | $ | (1.54 | ) | $ | (0.54 | ) | $ | (9.58 | ) | $ | (0.86 | ) | ||||
Loan Composition
| (Dollars in thousands) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | ||||||||||||||
| (Unaudited) | Unaudited/As restated | As Restated | Unaudited/As restated | Unaudited/As restated | |||||||||||||||
| Real estate: | |||||||||||||||||||
| Residential | $ | 353,716 | $ | 359,305 | $ | 365,427 | $ | 364,020 | $ | 356,559 | |||||||||
| Commercial | 211,518 | 216,643 | 215,771 | 231,039 | 292,923 | ||||||||||||||
| Construction and land | 38,095 | 36,732 | 48,397 | 43,700 | 53,187 | ||||||||||||||
| Commercial and industrial | 158,077 | 171,666 | 181,566 | 194,654 | 223,239 | ||||||||||||||
| Commercial and industrial - PPP | — | 6 | 6 | 13 | 191 | ||||||||||||||
| Consumer and other | 73,567 | 82,269 | 86,441 | 90,946 | 93,333 | ||||||||||||||
| Loans held for investment, at amortized cost, gross | 834,973 | 866,621 | 897,608 | 924,372 | 1,019,432 | ||||||||||||||
| Deferred loan costs, net | 8,338 | 9,353 | 10,491 | 11,522 | 15,818 | ||||||||||||||
| Discount on government guaranteed loans | (5,107 | ) | (6,007 | ) | (6,811 | ) | (7,506 | ) | (8,780 | ) | |||||||||
| Premium on loans purchased, net | 789 | 2,446 | 2,650 | 2,941 | 3,342 | ||||||||||||||
| Loans held for investment, at amortized cost, net | 838,993 | 872,413 | 903,938 | 931,329 | 1,029,812 | ||||||||||||||
| Government guaranteed loans held for investment, at fair value | 43,847 | 51,807 | 54,076 | 61,780 | 90,687 | ||||||||||||||
| Total loans held for investment, net | $ | 882,840 | $ | 924,220 | $ | 958,014 | $ | 993,109 | $ | 1,120,499 | |||||||||
Nonperforming Assets (Unaudited)
| (Dollars in thousands) | 6/30/2026 | 3/31/2026 | 12/31/2025 | 9/30/2025 | 6/30/2025 | ||||||||||||||
| As Restated | As Restated | As Restated | As Restated | ||||||||||||||||
| Nonperforming loans (government guaranteed balances), at amortized cost, gross | $ | 4,023 | $ | 5,580 | $ | 8,072 | $ | 8,865 | $ | 7,478 | |||||||||
| Nonperforming loans (unguaranteed balances), at amortized cost, gross | 14,434 | 15,873 | 16,271 | 15,822 | 14,187 | ||||||||||||||
| Total nonperforming loans, at amortized cost, gross | 18,457 | 21,453 | 24,343 | 24,687 | 21,665 | ||||||||||||||
| Nonperforming loans (government guaranteed balances), at fair value | — | 208 | 83 | — | 502 | ||||||||||||||
| Nonperforming loans (unguaranteed balances), at fair value | 443 | 1,230 | 1,453 | 1,385 | 1,430 | ||||||||||||||
| Total nonperforming loans, at fair value | 443 | 1,438 | 1,536 | 1,385 | 1,932 | ||||||||||||||
| OREO | 532 | 400 | 400 | 400 | 400 | ||||||||||||||
| Repossessed assets | 466 | 583 | 263 | 32 | — | ||||||||||||||
| Total nonperforming assets, gross | $ | 19,898 | $ | 23,874 | $ | 26,542 | $ | 26,504 | $ | 23,997 | |||||||||
| Nonperforming loans as a percentage of total loans held for investment(1) | 2.20 | % | 2.46 | % | 2.69 | % | 2.65 | % | 2.10 | % | |||||||||
| Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1) | 1.72 | % | 1.82 | % | 1.80 | % | 1.70 | % | 1.38 | % | |||||||||
| Nonperforming assets as a percentage of total assets | 1.75 | % | 2.01 | % | 2.05 | % | 1.98 | % | 1.79 | % | |||||||||
| Nonperforming assets (excluding government guaranteed balances) to total assets | 1.32 | % | 1.39 | % | 1.29 | % | 1.21 | % | 1.13 | % | |||||||||
| ACL to nonperforming loans(1) | 244.24 | % | 96.17 | % | 90.35 | % | 99.18 | % | 78.66 | % | |||||||||
| ACL to nonperforming loans (excluding government guaranteed balances)(1) | 312.32 | % | 129.98 | % | 135.18 | % | 154.75 | % | 120.12 | % | |||||||||
(1) Excludes loans measured at fair value
