BayFirst Financial restates 2024-2025 results after finding prior-period misstatements
BAFN•Amended filings and control remediation
Amended 10-K and 10-Q filings were submitted this week; management cited ongoing remediation to strengthen internal controls.
The company said exiting the SBA 7(a) lending business should prevent a recurrence of the errors.
Restatement triggered by legacy SBA 7(a) loan issues
BayFirst disclosed material misstatements tied to legacy SBA 7(a) loans, triggering restatements for 2024, 2025, and the quarter ended March 31, 2026.
Errors included $2.8 million of deferred origination costs and $2.1 million of accrued interest tied to loans previously in default or nonaccrual.
Additional deferred origination costs found on later review
Later review found another $3.4 million of deferred origination costs that should have reduced net gain on sale of government-guaranteed loans in 2024-2025.
