BayFirst Financial Corp. 8-K

What Happened BayFirst Financial Corp. announced it has completed an asset resolution plan tied to its April 28, 2026 Stock Purchase Agreement and quantified related impacts that will be recorded in second-quarter 2026 results. The company disclosed $37.0 million of adjustments to its government-guaranteed and unguaranteed SBA 7(a) loan portfolios (affecting ASC 326 and ASC 825 measurements), plus a $1.5 million impairment on a non-marketable equity investment and a $1.6 million write-down of unamortized premiums on purchased USDA loans. These items will be included in the company’s Q2 earnings to be released after market close on July 30, 2026.

Key Details

• $37.0M in loan portfolio adjustments related to specific guaranteed and over 7,000 small-balance unguaranteed SBA 7(a) loans.
• $1.5M impairment on a former SBA lending partner equity stake and $1.6M write-down of USDA loan premiums (totaling ~$40.1M of Q2 charges).
• Management found $2.8M of deferred origination costs and $2.1M of accrued interest misclassified as of March 31, 2026, prompting restatements.
• Prior results to be restated: 2024 net income from $12.6M to $11.4M; 2025 net loss from $22.9M to $24.2M; Q1 2026 net loss from $5.7M to $5.9M. Amendments expected by August 12, 2026. Audit Committee and auditor (Forvis Mazars LLP) have been notified.

Why It Matters These adjustments will materially affect BayFirst’s Q2 2026 earnings and require restating previously issued financial statements for 2024, 2025 and Q1 2026—meaning investors should not rely on the prior filings or related communications for those periods. The company is also reviewing incentive-based executive compensation for possible recovery under SEC rules and evaluating whether internal control weaknesses exist; any such weaknesses would be disclosed in the amended filings. Watch for the amended 10-K/10-Q filings (by Aug 12, 2026) and the Q2 earnings release on July 30, 2026 for the updated financial picture.