BayFirst Financial Corp. will restate its previously issued audited financial statements for the years ended December 31, 2024 and 2025, and for the first quarter ended March 31, 2026, following a review of its loan portfolio. The company identified $2.8 million of deferred origination costs and $2.1 million of accrued interest related to loans that had defaulted or were placed into non-accrual status in prior periods. These errors resulted in a material understatement of provision expense and an overstatement of net interest income during the affected periods.

The restatements will correct the company's results of operations for 2024, 2025, and the first quarter of 2026. Specifically, the previously reported 2024 net income of $12.6 million will be restated to a net income of $11.4 million. The 2025 net loss of $22.9 million will be restated to a net loss of $24.2 million, and the first quarter 2026 net loss of $5.7 million will be restated to a net loss of $5.9 million. Consequently, the company's previously filed financial statements and other communications relating to those periods should no longer be relied upon.

In addition to the restatements, BayFirst completed an asset resolution plan adopted in accordance with the Stock Purchase Agreement dated April 28, 2026. The plan includes adjustments to the net amount expected to be collected on over 7,000 unguaranteed SBA 7(a) small balance loans, amounting to $37.0 million. These adjustments impact loans measured at amortized cost and loans measured at fair value. The company will also record an impairment of $1.5 million on a non-marketable equity investment in a firm who was a partner with the Company’s former SBA 7(a) lending business and write down $1.6 million in unamortized premiums on its portfolio of purchased fully guaranteed USDA loans at risk of default or early prepayment.

These items will be included in the company's second quarter earnings and financial reports scheduled for release after the close of markets on July 30, 2026. BayFirst anticipates filing amendments to its 2025 Form 10-K and first quarter 2026 Form 10-Q by August 12, 2026.

"We take our obligation to provide accurate and transparent financial reporting seriously," stated Alfred Rogers, Chief Executive Officer. "Once this understatement of provision expense was identified through our internal review process, we moved quickly to investigate, correct the error, and notify our shareholders and regulators. Despite the correction, the Bank remains well capitalized and well positioned to continue serving our customers and communities."

Restated Financial Figures