BayFirst Financial used its third-quarter update to describe a shift toward community banking, with growth in community-bank lending and deposits alongside improved credit metrics. The quarter also brought a substantial capital restructuring: preferred shares were converted or redeemed, the company expanded its authorized common shares and completed a rights offering that raised more than $14 million.
The figures and developments below relate to the quarter ended September 30, 2026, unless otherwise noted.
Operating performance and strategy
- Community Bank loans grew 25%, an increase of $41 million during the quarter.
- Total loans held for investment rose $20 million, or 2.3%.
- Deposits increased $25.3 million, or 2.6%. Management said deposit growth exceeded net loan growth during the quarter.
- Net interest margin improved to 4.07%.
- BayFirst said its asset-resolution work improved credit quality. Management cited lower charge-offs, fewer nonperforming loans and an immaterial provision expense, but did not provide figures for those measures in the remarks excerpted here.
- The company opened a temporary South Tampa branch on Dale Mabry Highway and purchased a nearby site for a permanent branch. The temporary branch opened September 9, and management said its first-month deposit growth exceeded expectations for the full year.
Capital and share changes
- Shareholders approved increasing the number of authorized common shares from 15 million to 100 million.
- BayFirst exchanged all 4,000 outstanding Series D preferred shares and all 4,000 Series E preferred shares for a total of 22.856 million common shares. The D and E preferred shares were retired upon conversion.
- The company also fully redeemed its Series A and Series B preferred shares during the quarter.
- A rights offering completed September 30 raised more than $14 million in additional capital.
What changes for investors
BayFirst’s capital structure shifted toward common equity: Series D and E were converted into common shares, Series A and B were redeemed, and the rights offering added capital. The increase in authorized common shares gives the company capacity to issue more shares, while the 22.856 million shares issued in the preferred conversion represent a significant new block of common stock. The remarks do not specify the rights offering’s share terms or the resulting total common shares outstanding.