Q1 Net Interest Income Falls to $9.4M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 30 2026
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Should l Buy BAFN?
Reports Q1 net interest income $9.4M vs. $11M last year. Reports Q1 net interest margin was 3.42% vs. 3.77% last year. At quarter-end, total assets were $1.2B, total deposits were $1.09B, and loans held for investment were $930.4M.
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About BAFN
BayFirst Financial Corp. is a bank holding company that operates through its wholly owned subsidiary, BayFirst National Bank (the Bank). The Bank operates about 12 full-service banking offices throughout the Tampa Bay region and offers a range of commercial and consumer banking services to businesses and individuals. The Bank offers its products and services through its Community Banking Division and its government guaranteed lending division. The Bank also has an advanced technology platform for its small business administration (SBA) 7(a) Small Loan Program that enables the Bank to utilize and support technology-enabled banking products and services as well as various financial technology applications. The Bank offers specialized business and personal checking accounts, internet banking and online bill payment, lock box services, remote capture and deposit, cash management, wire transfers, safety deposit boxes, courier services, retail investment services, among other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
BayFirst Financial Corp. Q1 2026 Earnings Call Insights
- Capital Raising and Shareholder Equity: BayFirst Financial Corp. raised $80 million through a private investment, planning to convert convertible preferred stock into approximately 22.9 million common shares at an effective purchase price of $3.50 per share, which will enhance the company's capital base and support future growth.
- Leadership Changes and Governance: The appointment of new CEO Al Rogers signifies a major governance shift, while the board's decision to resume dividend payments to preferred shareholders and formally redeem Series A shares demonstrates the company's commitment to improving shareholder returns.
- Financial Performance and Risk Management: The company reported a net loss of $5.7 million in Q1, with loans held for investment decreasing by $33.5 million and deposits down by $98 million, reflecting liquidity pressures and credit risks, with management pledging to closely monitor credit risk to reduce future losses.
- Market Strategy and Expansion Plans: The bank plans to expand its presence in the Tampa Metropolitan Area, currently operating only two branches, but the new capital infusion will enable it to better meet local customer needs and deepen relationships, emphasizing the company's strategic focus on specific markets.
See More
BayFirst Financial Stock Plummets 39.4% in Premarket Trading Following $80 Million Capital Raise and New CEO Appointment
Financial Performance: BayFirst Financial shares dropped by 39.4% in pre-market trading following a significant capital raise of $80 million.
Leadership Change: The company has announced the appointment of a new CEO amidst the financial turmoil.
See More
Bayfirst Financial Reports Q1 GAAP EPS of $1.48
- Earnings Performance: Bayfirst Financial reported a GAAP EPS of $1.48 for Q1 2026, indicating stability in profitability despite challenges from declining loan volumes.
- Investment Loan Decline: The company's investment loans decreased by $33.5 million, or 3.5%, to $930.4 million in the first quarter, reflecting changes in market conditions and strategic adjustments.
- Annual Loan Reduction: Compared to the previous year, total loans fell by $154.4 million, or 14.2%, partly due to the sale of $97.4 million in government-guaranteed loans, indicating a strategic shift in the loan portfolio to adapt to market dynamics.
- Strategic Transition: This loan reduction is closely tied to Bayfirst Financial's decision to discontinue its SBA 7(a) lending business, highlighting the company's strategic intent to optimize its business structure and enhance risk management.
See More
BayFirst Financial Corp. Q4 2025 Earnings Call Insights
- Strategic Transition Completed: BayFirst Financial Corp. successfully exited the SBA 7(a) lending business in Q4 2025, executing several strategic initiatives that significantly reduced risk and improved operational efficiency, thereby laying a foundation for sustainable growth.
- Significant Deposit Growth: The company achieved a deposit increase of $12.5 million in Q4, with 85% of deposits insured, demonstrating strong performance in its community banking operations and expected to enhance market competitiveness further.
- Improved Financial Performance: Although reporting a net loss of $2.5 million in Q4, this marked a substantial narrowing from the $18.9 million loss in Q3, indicating positive progress in cost control and risk management efforts.
- Optimistic Future Outlook: Management reiterated that the 2026 strategic plan will focus on strengthening the balance sheet and maintaining a culture of disciplined risk management, with expectations for ongoing improvements in asset quality as the SBA portfolio winds down.
See More
Bayfirst Financial Reports Q4 Earnings Highlights
- Earnings Performance: Bayfirst Financial reported a GAAP EPS of $0.69 for Q4 2025, demonstrating stable profitability despite challenges from asset reductions, indicating resilience in its financial performance.
- Revenue Overview: The company generated $11.05 million in revenue during Q4, maintaining a relatively stable income level despite total asset declines, reflecting the robustness of its business operations.
- Asset Changes: Total assets decreased by $45.7 million, or 3.4%, in Q4 2025, primarily due to the sale of $96.6 million in SBA 7(a) loans to Banesco USA, highlighting strategic adjustments in asset management.
- Cash Flow Status: While loans held for investment decreased by $34.8 million, cash and cash equivalents increased by $88.4 million, indicating effective liquidity management that supports future investment and operational flexibility.
See More
BayFirst Financial Corp Reports Q4 2025 Loss Amid Restructuring Efforts
- Net Loss Overview: BayFirst Financial Corp reported a net loss of $2.5 million for Q4 2025, translating to a loss of $0.69 per share, which is a significant improvement from the $18.9 million loss in Q3 2025, indicating progress in the company's restructuring efforts.
- Loan Portfolio Optimization: The company successfully sold $96.6 million in loans to Banesco USA in Q4 2025, marking a critical milestone in its strategic plan to derisk its loan portfolio, reflecting ongoing efforts in asset quality management.
- Deposit Growth: BayFirst saw a $12.5 million increase in deposits during Q4 2025, a 1.1% rise, primarily driven by increases in interest-bearing transaction accounts and time deposits, indicating enhanced customer trust in the bank's services.
- Capital Adequacy Improvement: As of December 31, 2025, BayFirst's capital ratios improved despite a reduction in headcount from 299 to 144, demonstrating effective cost management and capital allocation strategies.
See More
BayFirst Financial Corp. Q1 2026 Earnings Call Insights
- Capital Raising and Shareholder Equity: BayFirst Financial Corp. raised $80 million through a private investment, planning to convert convertible preferred stock into approximately 22.9 million common shares at an effective purchase price of $3.50 per share, which will enhance the company's capital base and support future growth.
- Leadership Changes and Governance: The appointment of new CEO Al Rogers signifies a major governance shift, while the board's decision to resume dividend payments to preferred shareholders and formally redeem Series A shares demonstrates the company's commitment to improving shareholder returns.
- Financial Performance and Risk Management: The company reported a net loss of $5.7 million in Q1, with loans held for investment decreasing by $33.5 million and deposits down by $98 million, reflecting liquidity pressures and credit risks, with management pledging to closely monitor credit risk to reduce future losses.
- Market Strategy and Expansion Plans: The bank plans to expand its presence in the Tampa Metropolitan Area, currently operating only two branches, but the new capital infusion will enable it to better meet local customer needs and deepen relationships, emphasizing the company's strategic focus on specific markets.
See More
BayFirst Financial Stock Plummets 39.4% in Premarket Trading Following $80 Million Capital Raise and New CEO Appointment
Financial Performance: BayFirst Financial shares dropped by 39.4% in pre-market trading following a significant capital raise of $80 million.
Leadership Change: The company has announced the appointment of a new CEO amidst the financial turmoil.
See More
Bayfirst Financial Reports Q1 GAAP EPS of $1.48
- Earnings Performance: Bayfirst Financial reported a GAAP EPS of $1.48 for Q1 2026, indicating stability in profitability despite challenges from declining loan volumes.
- Investment Loan Decline: The company's investment loans decreased by $33.5 million, or 3.5%, to $930.4 million in the first quarter, reflecting changes in market conditions and strategic adjustments.
- Annual Loan Reduction: Compared to the previous year, total loans fell by $154.4 million, or 14.2%, partly due to the sale of $97.4 million in government-guaranteed loans, indicating a strategic shift in the loan portfolio to adapt to market dynamics.
- Strategic Transition: This loan reduction is closely tied to Bayfirst Financial's decision to discontinue its SBA 7(a) lending business, highlighting the company's strategic intent to optimize its business structure and enhance risk management.
See More
BayFirst Financial Corp. Q4 2025 Earnings Call Insights
- Strategic Transition Completed: BayFirst Financial Corp. successfully exited the SBA 7(a) lending business in Q4 2025, executing several strategic initiatives that significantly reduced risk and improved operational efficiency, thereby laying a foundation for sustainable growth.
- Significant Deposit Growth: The company achieved a deposit increase of $12.5 million in Q4, with 85% of deposits insured, demonstrating strong performance in its community banking operations and expected to enhance market competitiveness further.
- Improved Financial Performance: Although reporting a net loss of $2.5 million in Q4, this marked a substantial narrowing from the $18.9 million loss in Q3, indicating positive progress in cost control and risk management efforts.
- Optimistic Future Outlook: Management reiterated that the 2026 strategic plan will focus on strengthening the balance sheet and maintaining a culture of disciplined risk management, with expectations for ongoing improvements in asset quality as the SBA portfolio winds down.
See More
Bayfirst Financial Reports Q4 Earnings Highlights
- Earnings Performance: Bayfirst Financial reported a GAAP EPS of $0.69 for Q4 2025, demonstrating stable profitability despite challenges from asset reductions, indicating resilience in its financial performance.
- Revenue Overview: The company generated $11.05 million in revenue during Q4, maintaining a relatively stable income level despite total asset declines, reflecting the robustness of its business operations.
- Asset Changes: Total assets decreased by $45.7 million, or 3.4%, in Q4 2025, primarily due to the sale of $96.6 million in SBA 7(a) loans to Banesco USA, highlighting strategic adjustments in asset management.
- Cash Flow Status: While loans held for investment decreased by $34.8 million, cash and cash equivalents increased by $88.4 million, indicating effective liquidity management that supports future investment and operational flexibility.
See More
BayFirst Financial Corp Reports Q4 2025 Loss Amid Restructuring Efforts
- Net Loss Overview: BayFirst Financial Corp reported a net loss of $2.5 million for Q4 2025, translating to a loss of $0.69 per share, which is a significant improvement from the $18.9 million loss in Q3 2025, indicating progress in the company's restructuring efforts.
- Loan Portfolio Optimization: The company successfully sold $96.6 million in loans to Banesco USA in Q4 2025, marking a critical milestone in its strategic plan to derisk its loan portfolio, reflecting ongoing efforts in asset quality management.
- Deposit Growth: BayFirst saw a $12.5 million increase in deposits during Q4 2025, a 1.1% rise, primarily driven by increases in interest-bearing transaction accounts and time deposits, indicating enhanced customer trust in the bank's services.
- Capital Adequacy Improvement: As of December 31, 2025, BayFirst's capital ratios improved despite a reduction in headcount from 299 to 144, demonstrating effective cost management and capital allocation strategies.
See More
