{"url_path":"/sec/bafn/8-k/2026-07-15/item-2-02","section_key":"item-2-02","section_title":"Item 2.02 Results of Operations and Financial Condition.","topic":"sec","document":{"doc_type":"8-K","doc_date":"2026-07-15","source_url":"https://www.sec.gov/Archives/edgar/data/1649739/0001649739-26-000041-index.html","accession_number":"0001649739-26-000041","cik":"0001649739","ticker":"BAFN","issuer_name":"BayFirst Financial Corp.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1649739/0001649739-26-000041-index.html","primary_entity_key":"0001649739","primary_entity_name":"BayFirst Financial Corp."},"word_count":233,"has_tables":true,"body_markdown":"Item 2.02 Results of Operations and Financial Condition.\n\nBayFirst Financial Corp. (the “Company”) has completed and quantified the impact of the asset resolution plan adopted in accordance with the transactions contemplated by the Stock Purchase Agreement dated April 28, 2026. The nature, scope, and potential impact of the asset resolution plan were discussed in the Company’s Form 8-K and the exhibits incorporated therein, filed with the Securities and Exchange Commission on April 30, 2026.\n\nThe asset resolution plan includes the identification of specific loans within the Company’s government guaranteed loan portfolio, as well as adjustments to the net amount expected to be collected on over 7,000 unguaranteed SBA 7(a) small balance loans. These adjustments impact loans measured at amortized cost in accordance with ASC 326 and loans measured at fair value in accordance with ASC 825. These adjustments amount to $37.0 million.\n\nFurthermore, the Company will book an impairment of $1.5 million on a non-marketable equity investment in a firm who was a partner with the Company’s former SBA 7(a) lending business and will also write down by $1.6 million the unamortized premiums on the Company’s portfolio of purchased fully guaranteed USDA loans which are at risk of default or early prepayment.\n\nThese items will be included in the Company’s second quarter earnings and financial reports. The Company will release second quarter earnings after the close of markets on Thursday July 30, 2026."}