BayFirst Financial restates 2024, 2025, and Q1 2026 results; takes $40.1M in charges
BayFirst Financial Corp. announced on July 15, 2026, that it is restating audited financial statements for the years ended December 31, 2024 and 2025, and the quarter ended March 31, 2026, due to a $2.8 million understatement of deferred origination costs and $2.1 million overstatement of accrued interest related to defaulted loans. The restatement reduces 2024 net income from $12.6 million to $11.4 million, increases 2025 net loss from $22.9 million to $24.2 million, and increases Q1 2026 net loss from $5.7 million to $5.9 million. Additionally, the company is quantifying a $37.0 million charge related to an asset resolution plan affecting over 7,000 SBA 7(a) loans and government-guaranteed loans, plus a $1.5 million equity investment impairment and a $1.6 million write-down of USDA loan premiums, all to be reflected in second quarter earnings.
Key facts
- $37.0 million in adjustments to loans measured at amortized and fair value related to government-guaranteed and SBA 7(a) loan portfolio
- 2024 net income restated from $12.6 million to $11.4 million
- 2025 net loss restated from $22.9 million to $24.2 million
- Q1 2026 net loss restated from $5.7 million to $5.9 million
- $2.8 million deferred origination costs and $2.1 million accrued interest errors identified as of March 31, 2026
- $1.5 million impairment on non-marketable equity investment in former SBA 7(a) lending partner
- $1.6 million write-down of unamortized premiums on purchased fully guaranteed USDA loans
- Amended 10-K and 10-Q filings expected by August 12, 2026
- Independent auditor: Forvis Mazars, LLP
Why it matters
The restatement reflects a material misstatement of provision expense and net interest income spanning three years; management is also conducting a recovery analysis of executive incentive compensation under SOX 906 and evaluating whether to disclose material weaknesses in internal control over financial reporting.
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Derived from 8-K filed 2026-07-15. Not investment advice. View the source filing on SEC.gov →