BayFirst Financial (BAFN) Q2 2026 earnings summary

Executive summary

• Completed an $80 million capital raise in April 2026, converting Series D and E preferred stock to 22.9 million common shares and redeeming Series A and B preferred shares, strengthening the balance sheet and supporting future growth initiatives.

• Restated financial statements for 2024, 2025, and Q1 2026 due to material misstatements, with internal control remediation underway and full implementation expected in Q3 2026.

• Exited SBA 7(a) lending business, resulting in no further gains on sales of government-guaranteed loans and a $238 million decrease in total loans over the last twelve months.

• Ranked third in deposits among banks with assets under $10B in the Tampa Bay-Sarasota region as of March 31, 2026, with asset size reaching $1.13 billion as of June 30, 2026.

• Leadership changes include new Chief Banking Officer and Director of Retail Banking, with a focus on operational efficiency and growth.

Financial highlights

• Q2 2026 net loss attributable to common shareholders was $33.1 million, compared to a restated net loss of $5.9 million in Q1 2026 and $2.2 million in Q2 2025, driven by $41.5 million in asset resolution expenses and $43.8 million in one-time charges.

• Net interest income for Q2 2026 was $9.4 million, with a net interest margin of 3.48% (4.07% normalized), down from $12.1 million in Q2 2025.

• Noninterest income was negative $6.8 million, down from $10.5 million in Q2 2025, due to losses on government guaranteed loans and securities impairment.

• Noninterest expense rose to $17.7 million, mainly due to one-time charges and increased loan servicing and data processing costs.

• Tangible book value per share declined to $4.82 at June 30, 2026, from $14.22 in Q1 and $20.95 a year earlier.

Outlook and guidance

• Management expects improved core earnings and profitability, with a focus on growing traditional commercial and consumer lending and community banking.

• Rights offering to launch in August 2026 at $3.50 per share for up to 4.1 million shares, with communications to shareholders imminent.

• Remediation of internal control weaknesses is underway, with full implementation expected in Q3 2026.

• New South Tampa branch expected to reach break-even in less than two years and open in September 2026.