BAFN · BayFirst Financial Corp.

BayFirst Financial Corp. reported a challenging first quarter of 2026, marked by a widening net loss of $5.7 million compared to a $2.8 million loss in the prior quarter. The results were heavily impacted by the Bank's strategic exit from SBA 7(a) lending, which contributed to a significant year-over-year decline in noninterest income and elevated credit costs. Net charge-offs totaled $4.4 million for the quarter, with the unguaranteed SBA 7(a) portfolio accounting for $3.4 million of these losses. The allowance for credit losses ratio stood at 2.35% of total loans. To fortify its capital base and support future growth, the Company successfully raised $80 million through a PIPE offering. Management stated this capital injection would improve the Tier 1 leverage ratio to an estimated 10.02% on a proforma basis. The Company plans to deploy capital toward relationship banking in the Tampa Bay and Sarasota markets. Concurrently, the Board appointed Alfred Rogers as the new CEO of the Bank and Kenneth R. Lehman as a director, signaling a leadership transition aimed at navigating the Bank back to profitability.