Overview

* BayFirst reports Q2 net loss of $1.2 mln, worsening from Q1 loss

* Company suspends dividend payments and board fees amid strategic review

* Net interest margin rises to 4.06% in Q2

Outlook

* Company aims to grow core deposits and manage credit risk

* BayFirst committed to "strong" loan oversight amid economic challenges

Result Drivers

* STRATEGIC REVIEW - BayFirst initiated a comprehensive strategic review to derisk unguaranteed SBA 7(a) balances and position for long-term growth, per CEO Thomas G. Zernick

* CREDIT CHALLENGES - Increased net charge-offs and fair value write-downs on Bolt SBA 7(a) loans due to production delays and economic difficulties

* COMMUNITY BANK GROWTH - Community bank loans rose 3% in Q2, aligning with strategic priority of growing the community bank segment

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 EPS -$0.39

Q2 Net -$1.24

Income mln

Q2 Net $12.30

Interest mln

Income

continui

ng

operatio

ns

Q2 Net 4.1%

Interest

Margin

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)