BayFirst Financial Corp. Q1 FY2026 earnings call

• Raised $80M capital via private investment in public equity offering, issued convertible preferred stock. - Announced rights offering and special shareholder meeting on July 14th. - Appointed Al Rogers as new CEO and president of Bay First National Bank. - Resumed dividend payments to preferred shareholders and will formally redeem Series A shares. - Scott discussed earnings report, impact of capital raise. - Robin commented on credit risk management, non-performing loans, and focus on community banking. - Al talked about focusing on community banking in Tampa Bay, expanding branch network, working with local investors

Net loss of $5.7 million in Q1. Loan sell for investment decreased by $33.5 million (3%) to $930.4 million in Q1, down $154.4 million (14%) YOY. Deposits decreased $98 million (8%) in Q1 to $1.09 billion, down $42.4 million (4%) YOY. Net interest margin 3.42%, down 16 bps from Q4. Net interest income $9.4 million in Q1, down $1.7M QoQ and $1.5M YoY. Non-interest income $884,000 in Q1, $1M improvement QoQ but down $7.9M YoY. Non-interest expense $14.9M, up $3M QoQ. Provision for credit losses $3.1M in Q1. Net charge-offs $4.4M, down $0.2M QoQ. Unguaranteed SBA 7A loans accounted for $3.4M of net charge-offs in Q1. Tier 1 leverage ratio 6.54% at end of Q1. Total capital to risk-weighted assets ratio 9.84% at end of Q1

• Additional $80M capital will support growth and expansion of community bank, focus on relationship growth in Tampa Bay and Sarasota markets. - Pro forma Tier 1 leverage ratio improves to 10.02% and total capital to risk-weighted assets ratio to 14.40% with $42M capital contribution. - Prioritize understanding the unguaranteed loan portfolio, returning to profitability, and growing local customer relationships

• Elevated problem loans and charge-offs, especially in unguaranteed SBA 7A portfolio. - Uncertainty regarding future defaults in unguaranteed loan portfolio as economic conditions impact borrowers. - Regulatory approvals pending for certain board appointments and Al's appointment as CEO of holding company

Q: Prioritize initiatives and thoughts on $160M unguaranteed portion.

A: Prioritize understanding portfolio, returning to profitability, growing local relationships. Scott explained reserved amounts for unguaranteed portfolio.

Q: Cash position.

A: Liquidity ratio 13.6% at end of Q1, ~$130M, exclusive of recent capital raise.

Q: Reserve adequacy on FLASH loans.

A: Adequate from CECL compliance standpoint