BayFirst Financial (BAFN) investor relations material

Executive summary

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

• Reported significant net losses for Q2 2026 ($32.7M–$33.1M), primarily due to asset resolution expenses and restatement of prior financials.

• Restated financial statements for 2024, 2025, and Q1 2026 due to material misstatements and errors in loan accounting and gain on sale recognition.

• Leadership changes included new Chief Banking Officer and Director of Retail Banking, with continued investment in community banking and a new South Tampa branch planned.

• Ranked third in deposits among banks with assets under $10B in the Tampa Bay-Sarasota region as of March 31, 2026.

Financial highlights

• Q2 2026 net loss attributable to common shareholders was $32.7M–$33.1M, compared to a restated net loss of $5.9M in Q1 2026 and $2.2M in Q2 2025.

• Asset resolution plan and related one-time charges totaled $41.5M–$43.8M pre-tax, dominating quarterly results.

• Net interest income for Q2 2026 was $9.4M, down from $12.1M in Q2 2025; net interest margin was 3.48%.

• Noninterest income was negative $6.8M, down from $10.5M in Q2 2025, impacted by exit from SBA 7(a) lending and securities impairment.

• Tangible/book value per common share declined to $4.82–$4.83 from $14.22 sequentially and $20.95 year-over-year.

Outlook and guidance

• Management expects improved profitability going forward, with core earnings near breakeven and a strong loan pipeline.

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

• Rights offering to launch in August 2026, with communications to shareholders imminent.

• Focus on growing traditional commercial and consumer lending, deepening customer relationships, and expanding in the Tampa Bay market.

• Management expects to meet liquidity and capital needs through available liquid assets and borrowing capacity.