BayFirst Financial Corp. (NASDAQ: BAFN) reported its financial results for the third quarter of 2026 on October 29, 2026. The company, which operates BayFirst National Bank, recorded a net loss of $0.7 million, or $0.04 per share, for the quarter. This compares to a net loss of $32.7 million, or $8.05 per share, in the second quarter of 2026.
The company reported a net interest margin of 4.07% for the third quarter, an increase of 59 basis points from the second quarter. Net interest income was $10.6 million, an increase of $1.2 million from the previous quarter. Total loans held for investment increased by $20.1 million, or 2.3%, during the quarter to $903.0 million. Total assets increased by $13.0 million to $1.15 billion.
Deposits increased by $25.3 million, or 2.6%, during the quarter to $1.01 billion. This marks the first time in nearly three years that deposit growth outpaced loan growth. The company noted that the increase was driven by noninterest-bearing accounts, interest-bearing transaction accounts, and savings balances.
Asset quality metrics showed improvement. Nonperforming assets decreased to 1.29% of total assets as of September 30, 2026. Net charge-offs for the quarter were $3.2 million. The provision for credit losses was a negative $0.1 million.
On the capital side, the Bank’s Tier 1 leverage ratio was 8.79% as of September 30, 2026. The Common Equity Tier 1 (CET 1) and Tier 1 capital ratios were 11.15% and 11.15%, respectively. The company also exchanged preferred stock for common stock in July 2026 and redeemed Series A and Series B preferred shares in August 2026.
