BayFirst Financial Reports Q2 2026 Earnings with Significant Net Loss
BayFirst Financial (BAFN) reported a net loss of $32.7 million for the second quarter of 2026, or $8.05 per diluted share, primarily due to expenses from its asset resolution plan. The company incurred an Asset Resolution Plan Expense of $41.5 million and increased Provision for Credit Losses by nearly tenfold compared to last quarter. The bank's Loans Held for Investment dropped 21.2% year-over-year to $882.8 million, reflecting the exit from its SBA 7(a) lending business. Total Deposits also fell by 8.9%, driven by reductions in high-rate promotional deposits and brokered balances. Despite a slight increase in Net Interest Margin to 3.48% (excluding one-time impacts), Noninterest Income turned negative due largely to fair value losses tied to the asset resolution plan. BayFirst raised $80 million through a capital raise, improving its Tier 1 Leverage Ratio from 5.89% at the end of Q1 to 8.3%. The company also announced plans for a rights offering and increased authorized shares in preparation for converting preferred stock.
Tickers: $BAFN
Topics: credit losses deposits financials losses