BayFirst Financial Announces Impact Of Asset Resolution Plan In Accordance With Stock Purchase Agreement Transactions Dated April 28; Compan
The 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 and loans measured at fair value, and amount to $37.0 million. Furthermore, 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. These items will be included in the Company’s second quarter earnings and financial reports that are scheduled to be released after the close of markets on...
The 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 and loans measured at fair value, and amount to $37.0 million.
Furthermore, 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.
These items will be included in the Company’s second quarter earnings and financial reports that are scheduled to be released after the close of markets on July 30, 2026.
As a result of such review, the Company will restate its previously issued audited financial statements for the years ended December 31, 2024 and 2025, and for the first quarter ended March 31, 2026.