BayFirst Secures $80M Lifeline, Taps Veteran Banker for Turnaround

ST. PETERSBURG, Fla. – April 30, 2026 – BayFirst Financial Corp. today announced a sweeping overhaul aimed at reversing its fortunes, securing an $80 million capital infusion and appointing a new chief executive to navigate the bank out of a period of mounting financial losses. The moves come as the company reported a net loss of $5.7 million for the first quarter of 2026, deepening concerns that prompted the dramatic strategic shift.

The parent company of BayFirst National Bank has raised the capital through a private investment in public equity (PIPE) offering of convertible preferred stock. This crucial lifeline is designed to shore up the bank's balance sheet after it fell below the regulatory thresholds to be considered “well-capitalized.”

Concurrent with the recapitalization, the board has appointed Alfred “Al” Rogers, a highly respected veteran of the Tampa Bay banking scene, as the new Chief Executive Officer and President of BayFirst National Bank. Rogers replaces the retiring Tom Zernick and is tasked with steering the institution back to profitability.

“Today we announce a substantial recapitalization of BayFirst Financial Corp. and BayFirst National Bank,” stated Anthony Saravanos, Chairman of the Board of Directors. “This successful capital raise reflects the trust our investors place in our institution and our long-term strategic direction.”

A New Captain and a Renewed Focus

The appointment of Al Rogers is central to the bank's turnaround strategy. Rogers brings a wealth of local experience, having previously served as CEO of Manufacturers Bank of Florida and as Executive Vice President and Chief Lending Officer of USAmeriBank. During his tenure at USAmeriBank, he was instrumental in its growth from a startup to the largest independent community bank in the Tampa Bay area before its acquisition by Valley National Bank.

This background aligns perfectly with BayFirst’s stated pivot away from a national lending footprint and toward its core as a community-focused institution. The board is betting that Rogers’ local expertise and leadership can restore the bank's position as a premier financial partner for Tampa Bay's businesses and residents.

“The Board of Directors believe that Al’s experience and leadership, combined with this capital raise, will lead BayFirst back to profitability and growth as the premier financial institution of Tampa Bay,” Saravanos added.

Rogers acknowledged the difficulties ahead while expressing optimism about the bank's foundation. “While progress has been made with our focus on Community Banking, much work lies ahead for us,” Rogers said in a statement. “Our terrific network of branches and dedicated people are the ideal foundation for BayFirst to become the community bank of choice in our market... I’m looking forward to rolling up my sleeves with the team to accomplish great things right here in our backyard.”

Confronting Financial Headwinds

The urgency of the leadership change and capital raise is underscored by the bank's recent performance. The $5.7 million net loss for the first quarter of 2026 is a significant increase from the $2.5 million loss in the fourth quarter of 2025 and a $0.3 million loss in the same period last year.

The widening losses were driven by a combination of factors. Net interest income, the difference between what the bank earns on loans and pays on deposits, fell to $9.4 million from $11.2 million in the prior quarter. This squeezed the bank’s net interest margin down to 3.42%, a 16-basis-point drop from the previous quarter.

At the same time, the bank's balance sheet has been contracting. Total assets decreased by $104.3 million, or 8.0%, during the first quarter to $1.20 billion. Loans held for investment fell by $33.5 million, and total deposits shrank by a substantial $98.1 million. The bank attributed the deposit decline primarily to a deliberate runoff of high-rate promotional deposits and a reduction in brokered deposits as it sought to lower its funding costs.

Credit quality also remains a key area of focus. The bank recorded a provision for credit losses of $3.1 million for the quarter, and annualized net charge-offs stood at 1.98% of average loans.

A Strategic Retreat to Core Strengths

Much of the recent financial turbulence can be traced to a strategic retreat from the national SBA 7(a) lending business. BayFirst announced its exit from the program in September 2025 after a review identified increasing risk and losses, particularly from a program for smaller-dollar loans. The move led to the sale of over $100 million in SBA loans to Banesco USA.

While the exit was designed to de-risk the balance sheet, it has had a pronounced impact on noninterest income. Compared to the first quarter of 2025, the bank saw income from the gain on sale of government-guaranteed loans plummet by $7.4 million. The strategic shift has effectively unwound a major business line, contributing to the decline in total loans and forcing the bank to re-center its entire strategy.

Now, the focus is squarely on leveraging its twelve full-service banking offices in the Tampa Bay-Sarasota region. Following the capital raise, the company intends to develop an Asset Resolution Plan to manage and dispose of certain criticized assets, further cleaning up the balance sheet to support its renewed community banking mission.

Restoring Capital and Confidence

The $80 million capital injection provides immediate and necessary relief. As of March 31, the bank's capital ratios, including a Tier 1 leverage ratio of 6.54%, did not meet all regulatory requirements to be deemed “well-capitalized.” On a proforma basis, giving effect to a portion of the new capital, the Tier 1 leverage ratio would jump to an estimated 10.02%, and its other key capital ratios would also be comfortably above the well-capitalized thresholds.

The investment is being led by a group of private investors, including Kenneth R. Lehman, who has been appointed to the bank's board, contingent on regulatory approval. To complete the transaction, the company will seek shareholder approval at a special meeting scheduled for July 14, 2026, to authorize enough new shares for the eventual conversion of the preferred stock. BayFirst also announced its intent to launch a separate public offering of common stock at $3.50 per share, marketed exclusively to its existing shareholders.