Additionally, the Company reported a net loss of
“Today we announce a substantial recapitalization of
“The Board of Directors believe that Al’s experience and leadership, combined with this capital raise, will lead BayFirst back to profitability and growth as the premier financial institution of
“I am excited to begin my next chapter with the Board and the Bank’s leadership at BayFirst,” said Rogers. “While progress has been made with our focus on Community Banking, much work lies ahead for us. Our terrific network of branches and dedicated people are the ideal foundation for BayFirst to become the community bank of choice in our market. I’ve been proud to have led several community banks in our area, with each serving and growing local businesses and retail customers. BayFirst has that same dedication to this community, and I’m looking forward to rolling up my sleeves with the team to accomplish great things right here in our backyard.”
Saravanos concluded, “the Board of Directors have made additional decisions, including the resumption of dividend payments to our preferred shareholders and will formally redeem the Series A preferred shares. Furthermore, the Board has appointed
First Quarter 2026 Performance Review
- Net interest margin was 3.42% in the first quarter of 2026, a decrease of 16 basis points from 3.58% in the fourth quarter of 2026 and a decrease of 35 basis points from 3.77% in the first quarter of 2025.
- Loans held for investment decreased by
$33.5 million , or 3.5%, during the first quarter of 2026 to$930.4 million and decreased$154.4 million , or 14.2%, over the past year. The decrease from the prior year was partially the result of the sale of$97.4 million of government guaranteed loans toBanesco USA as part of the Bank’s discontinuance of SBA 7(a) lending. - Deposits decreased
$98.1 million , or 8.3%, during the first quarter of 2026 and decreased$42.4 million , or 3.8%, over the past year to$1.09 billion . The decrease in deposits during the quarter was primarily due to decreases in interest-bearing transaction account balances, savings and money market account balances, and time deposit balances, partially offset by an increase in noninterest-bearing account balances. - Book value and tangible book value at
March 31, 2026 were$15.74 per common share, a decrease from$17.22 atDecember 31, 2025 .
Results of Operations
Net Loss
The Company had a net loss of
Net Interest Income and Net Interest Margin
Net interest income was
The decrease in net interest income during the first quarter of 2026, as compared to the fourth quarter of 2025, was mainly due to a decrease in loan interest income, including fees, of
The decrease in net interest income during the first quarter of 2026, as compared to the year ago quarter, was mainly due to a decrease in loan interest income, including fees, of
Noninterest Income
Noninterest income was
Noninterest Expense
Noninterest expense was
Balance Sheet
Assets
Total assets decreased
Loans
Loans held for investment decreased
Deposits
Deposits decreased
Asset Quality
The Company recorded a provision for credit losses in the first quarter of
The ratio of allowance for credit losses (ACL) on loans to total loans held for investment at amortized cost was 2.35% at
Net charge-offs for the first quarter of 2026 were
Capital
The Bank’s Tier 1 leverage ratio was 6.54% as of
Impact of Capital Raise
On a proforma basis, giving effect to a
Liquidity
The Bank's overall liquidity position remains strong and stable with liquidity in excess of internal minimums as stated by policy and monitored by management and the Board. The on-balance sheet liquidity ratio at
Recent Events
Following the closing of the PIPE, the Company intends to identify certain criticized assets and develop an Asset Resolution Plan. The Asset Resolution Plan will provide a work-out strategy for identified assets for subsequent disposition, work-out, upgrade, or other resolution.
On
Special Meeting of Shareholders
A special meeting of shareholders is scheduled for
The Company intends to file a proxy statement with the
Shareholders may obtain free copies of these documents, once they are filed, and other documents filed with the
Certain investments discussed above involve the sale of securities in private transactions that will not be registered under the Securities Act of 1933, as amended, and will be subject to the resale restrictions under that Act. Such securities may not be offered or sold absent registration or an applicable exemption from registration. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor shall there be any sale of securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
Conference Call
BayFirst will host a conference call on
About
Forward-Looking Statements
In addition to the historical information contained herein, this presentation includes "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. These statements are subject to many risks and uncertainties, including, but not limited to, the effects of health crises, global military hostilities, weather events, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets and credit quality; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; enforcement actions initiated by our regulators and their impact on our operations; and other risks detailed from time to time in filings made by the Company with the
Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this document, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
SELECTED FINANCIAL DATA (Unaudited) | |||||||||||||||||||
| At or for the three months ended | |||||||||||||||||||
| (Dollars in thousands, except for share data) | |||||||||||||||||||
| Net loss | $ | (5,680 | ) | $ | (2,463 | ) | $ | (18,902 | ) | $ | (1,237 | ) | $ | (335 | ) | ||||
| Balance sheet data: | |||||||||||||||||||
| Average loans held for investment at amortized cost | 887,756 | 939,281 | 1,060,520 | 1,047,568 | 1,027,648 | ||||||||||||||
| Average total assets | 1,219,748 | 1,334,912 | 1,345,553 | 1,324,455 | 1,287,618 | ||||||||||||||
| Average common shareholders’ equity | 70,373 | 73,470 | 92,734 | 95,049 | 96,053 | ||||||||||||||
| Government guaranteed loans held for sale | — | — | 94,052 | — | — | ||||||||||||||
| Total loans held for investment | 930,426 | 963,894 | 998,683 | 1,125,799 | 1,084,817 | ||||||||||||||
| Total loans held for investment, excl gov’t gtd loan balances | 855,363 | 893,765 | 923,390 | 972,942 | 943,979 | ||||||||||||||
| Allowance for credit losses | 20,632 | 21,996 | 24,485 | 17,041 | 16,513 | ||||||||||||||
| Total assets | 1,195,910 | 1,300,258 | 1,345,978 | 1,343,867 | 1,291,957 | ||||||||||||||
| Total deposits | 1,085,869 | 1,183,938 | 1,171,457 | 1,163,796 | 1,128,267 | ||||||||||||||
| Common shareholders’ equity | 64,660 | 70,747 | 73,677 | 92,172 | 94,034 | ||||||||||||||
| Share data: | |||||||||||||||||||
| Basic loss per common share | $ | (1.48 | ) | $ | (0.69 | ) | $ | (4.66 | ) | $ | (0.39 | ) | $ | (0.17 | ) | ||||
| Diluted loss per common share | (1.48 | ) | (0.69 | ) | (4.66 | ) | (0.39 | ) | (0.17 | ) | |||||||||
| Dividends per common share | — | — | — | 0.08 | 0.08 | ||||||||||||||
| Book value per common share | 15.74 | 17.22 | 17.90 | 22.30 | 22.77 | ||||||||||||||
| Tangible book value per common share(1) | 15.74 | 17.22 | 17.90 | 22.30 | 22.77 | ||||||||||||||
| Performance ratios: | |||||||||||||||||||
| Return on average assets(2) | (1.86 | )% | (0.74 | )% | (5.62 | )% | (0.37 | )% | (0.10 | )% | |||||||||
| Return on average common equity(2) | (34.47 | )% | (15.51 | )% | (83.19 | )% | (6.83 | )% | (3.00 | )% | |||||||||
| Net interest margin(2) | 3.42 | % | 3.58 | % | 3.61 | % | 4.06 | % | 3.77 | % | |||||||||
| Asset quality ratios: | |||||||||||||||||||
| Net charge-offs | $ | 4,393 | $ | 4,558 | $ | 3,294 | $ | 6,799 | $ | 3,301 | |||||||||
| Net charge-offs/avg loans held for investment at amortized cost(2) | 1.98 | % | 1.94 | % | 1.24 | % | 2.60 | % | 1.28 | % | |||||||||
| Nonperforming loans(3) | $ | 21,453 | $ | 24,343 | $ | 24,687 | $ | 21,665 | $ | 24,806 | |||||||||
| Nonperforming loans (excluding gov't gtd balance)(3) | $ | 15,873 | $ | 16,271 | $ | 15,822 | $ | 14,187 | $ | 15,078 | |||||||||
| Nonperforming loans/total loans held for investment(3) | 2.44 | % | 2.68 | % | 2.63 | % | 2.09 | % | 2.42 | % | |||||||||
| Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) | 1.81 | % | 1.79 | % | 1.69 | % | 1.37 | % | 1.47 | % | |||||||||
| ACL/Total loans held for investment at amortized cost | 2.35 | % | 2.42 | % | 2.61 | % | 1.65 | % | 1.61 | % | |||||||||
| ACL/Total loans held for investment at amortized cost, excl government guaranteed loans | 2.53 | % | 2.58 | % | 2.78 | % | 1.85 | % | 1.84 | % | |||||||||
| Other Data: | |||||||||||||||||||
| Full-time equivalent employees | 143 | 144 | 237 | 300 | 305 | ||||||||||||||
| Banking center offices | 12 | 12 | 12 | 12 | 12 | ||||||||||||||
| (1) See section entitled "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below for a reconciliation to most comparable GAAP equivalent. | |||||||||||||||||||
| (2) Annualized | |||||||||||||||||||
| (3) Excludes loans measured at fair value | |||||||||||||||||||
Reconciliation and Management Explanation of Non-GAAP Financial Measures
Some of the financial measures included in this report are not measures of financial condition or performance recognized by GAAP. These non-GAAP financial measures include tangible common shareholders' equity and tangible book value per common share. Our management uses these non-GAAP financial measures in its analysis of our performance, and we believe that providing this information to financial analysts and investors allows them to evaluate capital adequacy.
The following presents the calculation of the non-GAAP financial measures.
| Tangible Common Shareholders' Equity and Tangible Book Value Per Common Share (Unaudited) | |||||||||||||||||||
| As of | |||||||||||||||||||
| (Dollars in thousands, except for share data) | |||||||||||||||||||
| Total shareholders’ equity | $ | 81,867 | $ | 87,569 | $ | 89,728 | $ | 108,223 | $ | 110,085 | |||||||||
| Less: Preferred stock liquidation preference | (17,207 | ) | (16,822 | ) | (16,051 | ) | (16,051 | ) | (16,051 | ) | |||||||||
| Total equity available to common shareholders | 64,660 | 70,747 | 73,677 | 92,172 | 94,034 | ||||||||||||||
| Less: | — | — | — | — | — | ||||||||||||||
| Tangible common shareholders' equity | $ | 64,660 | $ | 70,747 | $ | 73,677 | $ | 92,172 | $ | 94,034 | |||||||||
| Common shares outstanding | 4,108,072 | 4,108,069 | 4,116,913 | 4,134,127 | 4,129,027 | ||||||||||||||
| Tangible book value per common share | $ | 15.74 | $ | 17.22 | $ | 17.90 | $ | 22.30 | $ | 22.77 | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (Dollars in thousands) | |||||||||
| Assets | Unaudited | Unaudited | |||||||
| Cash and due from banks | $ | 6,848 | $ | 5,123 | $ | 6,517 | |||
| Interest-bearing deposits in banks | 127,617 | 201,859 | 56,637 | ||||||
| Cash and cash equivalents | 134,465 | 206,982 | 63,154 | ||||||
| Time deposits in banks | — | — | 2,025 | ||||||
| Investment securities available for sale, at fair value (amortized cost | 28,531 | 29,363 | 36,318 | ||||||
| Investment securities held to maturity, at amortized cost, net of allowance for credit losses of | 2,490 | 2,493 | 2,488 | ||||||
| Nonmarketable equity securities | 4,662 | 4,656 | 5,480 | ||||||
| Government guaranteed loans held for investment, at fair value | 51,807 | 54,076 | 57,901 | ||||||
| Loans held for investment, at amortized cost | 878,619 | 909,818 | 1,026,916 | ||||||
| Allowance for credit losses on loans | (20,632 | ) | (21,996 | ) | (16,513 | ) | |||
| Net Loans held for investment, at amortized cost | 857,987 | 887,822 | 1,010,403 | ||||||
| Accrued interest receivable | 7,683 | 8,421 | 9,153 | ||||||
| Premises and equipment, net | 30,690 | 31,188 | 32,769 | ||||||
| Loan servicing rights | 11,334 | 12,580 | 16,460 | ||||||
| Deferred income tax assets | 8,489 | 6,538 | — | ||||||
| Right-of-use operating lease assets | 14,171 | 14,504 | 15,484 | ||||||
| Bank owned life insurance | 27,457 | 27,264 | 26,696 | ||||||
| Other real estate owned | 400 | 400 | 132 | ||||||
| Other assets | 15,744 | 13,971 | 13,494 | ||||||
| Total assets | $ | 1,195,910 | $ | 1,300,258 | $ | 1,291,957 | |||
| Liabilities: | |||||||||
| Noninterest-bearing deposit accounts | $ | 111,476 | $ | 95,731 | $ | 106,236 | |||
| Interest-bearing transaction accounts | 153,860 | 231,227 | 261,074 | ||||||
| Savings and money market deposit accounts | 432,781 | 454,639 | 467,766 | ||||||
| Time deposits | 387,752 | 402,341 | 293,191 | ||||||
| Total deposits | 1,085,869 | 1,183,938 | 1,128,267 | ||||||
| FHLB borrowings | — | — | 20,000 | ||||||
| Subordinated debentures | 6,099 | 5,962 | 5,957 | ||||||
| Notes payable | 1,479 | 1,593 | 1,820 | ||||||
| Accrued interest payable | 958 | 1,133 | 1,053 | ||||||
| Operating lease liabilities | 13,003 | 13,264 | 14,102 | ||||||
| Deferred income tax liabilities | — | — | 648 | ||||||
| Accrued expenses and other liabilities | 6,635 | 6,799 | 10,025 | ||||||
| Total liabilities | 1,114,043 | 1,212,689 | 1,181,872 | ||||||
| Shareholders’ equity: | Unaudited | Unaudited | |||||||
| Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at | 6,161 | 6,161 | 6,161 | ||||||
| Preferred stock, Series B; no par value, 20,000 shares authorized, 3,210 shares issued and outstanding at | 3,123 | 3,123 | 3,123 | ||||||
| Preferred stock, Series C; no par value, 10,000 shares authorized, 6,446 shares issued and outstanding at | 6,446 | 6,446 | 6,446 | ||||||
| Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,108,072, 4,108,609, and 4,129,027 shares issued and outstanding at | 54,390 | 54,371 | 54,657 | ||||||
| Accumulated other comprehensive loss, net | (2,054 | ) | (1,960 | ) | (2,378 | ) | |||
| Unearned compensation | (282 | ) | (335 | ) | (1,006 | ) | |||
| Retained earnings | 14,083 | 19,763 | 43,082 | ||||||
| Total shareholders’ equity | 81,867 | 87,569 | 110,085 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,195,910 | $ | 1,300,258 | $ | 1,291,957 | |||
| CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | |||||||||||
| For the Quarter Ended | |||||||||||
| (Dollars in thousands, except per share data) | |||||||||||
| Interest income: | |||||||||||
| Loans, including fees | $ | 15,930 | $ | 19,326 | $ | 19,751 | |||||
| Interest-bearing deposits in banks and other | 1,509 | 1,624 | 934 | ||||||||
| Total interest income | 17,439 | 20,950 | 20,685 | ||||||||
| Interest expense: | |||||||||||
| Deposits | 7,893 | 9,451 | 9,431 | ||||||||
| Other | 97 | 341 | 255 | ||||||||
| Total interest expense | 7,990 | 9,792 | 9,686 | ||||||||
| Net interest income | 9,449 | 11,158 | 10,999 | ||||||||
| Provision for credit losses | 3,078 | 2,007 | 4,400 | ||||||||
| Net interest income after provision for credit losses | 6,371 | 9,151 | 6,599 | ||||||||
| Noninterest income: | |||||||||||
| Loan servicing income, net | 770 | 788 | 736 | ||||||||
| Gain (loss) on sale of government guaranteed loans, net | (97 | ) | 290 | 7,327 | |||||||
| Service charges and fees | 490 | 471 | 449 | ||||||||
| Government guaranteed loans fair value loss, net | (533 | ) | (1,880 | ) | (755 | ) | |||||
| Government guaranteed loan packaging fees | — | 95 | 716 | ||||||||
| Gain on sale of premises and equipment | 13 | — | — | ||||||||
| Other noninterest income | 241 | 132 | 278 | ||||||||
| Total noninterest income | 884 | (104 | ) | 8,751 | |||||||
| Noninterest Expense: | |||||||||||
| Salaries and benefits | 5,069 | 4,681 | 7,998 | ||||||||
| Bonus, commissions, and incentives | 290 | (8 | ) | 71 | |||||||
| Occupancy and equipment | 1,368 | 1,330 | 1,634 | ||||||||
| Data processing | 1,489 | 1,687 | 2,045 | ||||||||
| Marketing and business development | 123 | 281 | 487 | ||||||||
| Professional services | 1,164 | 1,083 | 732 | ||||||||
| Loan servicing and origination expense | 3,836 | 1,135 | 1,035 | ||||||||
| Employee recruiting and development | 202 | 210 | 617 | ||||||||
| Regulatory assessments | 578 | 694 | 339 | ||||||||
| Restructure charges | — | 21 | — | ||||||||
| Other noninterest expense | 767 | 755 | 855 | ||||||||
| Total noninterest expense | 14,886 | 11,869 | 15,813 | ||||||||
| Loss before taxes | (7,631 | ) | (2,822 | ) | (463 | ) | |||||
| Income tax benefit | (1,951 | ) | (359 | ) | (128 | ) | |||||
| Net loss | (5,680 | ) | (2,463 | ) | (335 | ) | |||||
| Preferred dividends | 385 | 385 | 385 | ||||||||
| Net loss attributable to common shareholders | $ | (6,065 | ) | $ | (2,848 | ) | $ | (720 | ) | ||
| Basic loss per common share | $ | (1.48 | ) | $ | (0.69 | ) | $ | (0.17 | ) | ||
| Diluted loss per common share | $ | (1.48 | ) | $ | (0.69 | ) | $ | (0.17 | ) | ||
Loan Composition
| (Dollars in thousands) | |||||||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| Real estate: | |||||||||||||||||||
| Residential | $ | 359,305 | $ | 365,427 | $ | 364,020 | $ | 356,559 | $ | 339,886 | |||||||||
| Commercial | 216,643 | 215,771 | 231,039 | 292,923 | 296,351 | ||||||||||||||
| Construction and land | 36,732 | 48,397 | 43,700 | 53,187 | 46,740 | ||||||||||||||
| Commercial and industrial | 171,666 | 181,566 | 194,654 | 223,239 | 234,384 | ||||||||||||||
| Commercial and industrial - PPP | 6 | 6 | 13 | 191 | 457 | ||||||||||||||
| Consumer and other | 82,269 | 86,441 | 90,946 | 93,333 | 93,889 | ||||||||||||||
| Loans held for investment, at amortized cost, gross | 866,621 | 897,608 | 924,372 | 1,019,432 | 1,011,707 | ||||||||||||||
| Deferred loan costs, net | 15,559 | 16,371 | 17,096 | 21,118 | 20,521 | ||||||||||||||
| Discount on government guaranteed loans | (6,007 | ) | (6,811 | ) | (7,506 | ) | (8,780 | ) | (8,727 | ) | |||||||||
| Premium on loans purchased, net | 2,446 | 2,650 | 2,941 | 3,342 | 3,415 | ||||||||||||||
| Loans held for investment, at amortized cost, net | 878,619 | 909,818 | 936,903 | 1,035,112 | 1,026,916 | ||||||||||||||
| Government guaranteed loans held for investment, at fair value | 51,807 | 54,076 | 61,780 | 90,687 | 57,901 | ||||||||||||||
| Total loans held for investment, net | $ | 930,426 | $ | 963,894 | $ | 998,683 | $ | 1,125,799 | $ | 1,084,817 | |||||||||
Nonperforming Assets (Unaudited)
| (Dollars in thousands) | |||||||||||||||||||
| Nonperforming loans (government guaranteed balances), at amortized cost, gross | $ | 5,580 | $ | 8,072 | $ | 8,865 | $ | 7,478 | $ | 9,728 | |||||||||
| Nonperforming loans (unguaranteed balances), at amortized cost, gross | 15,873 | 16,271 | 15,822 | 14,187 | 15,078 | ||||||||||||||
| Total nonperforming loans, at amortized cost, gross | 21,453 | 24,343 | 24,687 | 21,665 | 24,806 | ||||||||||||||
| Nonperforming loans (government guaranteed balances), at fair value | 208 | 83 | — | 502 | 507 | ||||||||||||||
| Nonperforming loans (unguaranteed balances), at fair value | 1,230 | 1,453 | 1,385 | 1,430 | 1,419 | ||||||||||||||
| Total nonperforming loans, at fair value | 1,438 | 1,536 | 1,385 | 1,932 | 1,926 | ||||||||||||||
| OREO | 400 | 400 | 400 | 400 | 132 | ||||||||||||||
| Repossessed assets | 583 | 263 | 32 | — | 36 | ||||||||||||||
| Total nonperforming assets, gross | $ | 23,874 | $ | 26,542 | $ | 26,504 | $ | 23,997 | $ | 26,900 | |||||||||
| Nonperforming loans as a percentage of total loans held for investment(1) | 2.44 | % | 2.68 | % | 2.63 | % | 2.09 | % | 2.42 | % | |||||||||
| Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1) | 1.81 | % | 1.79 | % | 1.69 | % | 1.37 | % | 1.47 | % | |||||||||
| Nonperforming assets as a percentage of total assets | 2.00 | % | 2.04 | % | 1.97 | % | 1.79 | % | 2.08 | % | |||||||||
| Nonperforming assets (excluding government guaranteed balances) to total assets | 1.38 | % | 1.29 | % | 1.21 | % | 1.12 | % | 1.22 | % | |||||||||
| ACL to nonperforming loans(1) | 96.17 | % | 90.35 | % | 99.18 | % | 78.66 | % | 66.57 | % | |||||||||
| ACL to nonperforming loans (excluding government guaranteed balances)(1) | 129.98 | % | 135.18 | % | 154.75 | % | 120.12 | % | 109.52 | % | |||||||||
(1) Excludes loans measured at fair value
| Contact: |
| Chief Financial Officer |
| 727.521.7085 |
