BayFirst Financial (BAFN) investor relations material

Executive summary

• Q3 net loss narrowed to $677,000 from $32.7 million in Q2; net loss attributable to common shareholders was $954,000.

• NIM rose to 4.07%, community bank lending expanded, and deposits grew faster than loans as the balance sheet shifted toward relationship-focused banking.

• Credit indicators improved, though unguaranteed SBA 7(a) exposure and sustained profitability remained key priorities.

Financial highlights

• Net interest income was $10.627 million, up $1.205 million QoQ and down $691,000 YoY; Q3 net loss was $677,000 versus $19.1 million in Q3 2025 (restated).

• Q3 provision for credit losses was a $69,000 benefit, versus $29.0 million of provision in Q2 2026; Q2 also included $41.5 million of Asset Resolution Plan expense.

• Noninterest income was $1.1 million, versus negative $6.8 million QoQ; noninterest expense was $12.8 million, down from $17.7 million QoQ.

• 9M net loss was $39.3 million versus $21.9 million in 9M 2025; 9M net interest income declined to $29.5 million from $34.1 million.

• Total assets were $1.15 billion at quarter-end, up 1.1% QoQ and down 14.3% YoY; loans held for investment were $903.0 million.

Outlook and guidance

• Management said the strengthened balance sheet and foundation position performance for continued improvement, with sustained profitability a focus.

• Loan demand was strong, particularly in commercial lending; priorities included growing core relationships and deposits, expanding across Tampa Bay, Sarasota and Bradenton, and improving efficiency.

• Management expected stabilized runoff in unguaranteed SBA 7(a) loans to continue and hoped credit losses would moderate as the portfolio rolls down.