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GlobeNewswire·

BayFirst Announces Impact of Asset Resolution Plan and Restatement of Prior Period Financial Statements

BAFN
  • BayFirst Financial Corp. completed quantification of its asset resolution plan, resulting in $37.0 million in adjustments to government-guaranteed & unguaranteed SBA 7(a) loan portfolios.
  • The Company will record a $1.5 million impairment on a non-marketable equity investment & a $1.6 million write-down on unamortized premiums for USDA loans at risk of default or early prepayment.
  • These financial adjustments & prior period corrections will be included in second quarter earnings scheduled for release on July 30, 2026.
  • BayFirst will restate audited financial statements for 2024, 2025, & Q1 2026 after identifying $2.8 million in deferred origination costs & $2.1 million in accrued interest that caused material understatement of provision expense.
  • Restated 2024 net income is reduced from $12.6 million to $11.4 million.
  • Restated 2025 net loss increases from $22.9 million to $24.2 million.
  • Restated Q1 2026 net loss increases from $5.7 million to $5.9 million.
  • Previously filed financial statements for 2024, 2025, & Q1 2026 should no longer be relied upon.
  • The Company anticipates filing amended 2025 Form 10-K & Q1 2026 Form 10-Q by August 12, 2026.
  • CEO Alfred Rogers stated the Bank remains well-capitalized despite the correction of the reporting error.