The massive loss and accounting restatement signal deep credit problems in the legacy SBA portfolio. Monitor the upcoming rights offering and any further regulatory actions. The stock is likely to trade under significant pressure as the market digests the tangible book value destruction and restatement risk.
Price Chart
Executive Summary
BayFirst Financial Corp. reported a net loss of $32.7 million ($8.05 per share) for Q2 2026, driven by a $41.5 million asset resolution plan charge related to its legacy SBA 7(a) loan portfolio. The company also disclosed a restatement of prior-period financials (2024, 2025, Q1 2026) due to accounting errors, and tangible book value collapsed from $14.22 to $4.82 per share. While the Bank remains well-capitalized post an $80M capital raise, the massive loss and restatement represent a severe credit event for common shareholders.
Key Financial Metrics
Key Facts
- Net loss of $32.7 million in Q2 2026, compared to a restated net loss of $5.9 million in Q1 2026.
- EPS of -$8.05 per diluted share, vs -$1.54 in Q1 2026.
- Asset resolution plan expense of $41.5 million drove the quarterly loss.
- Tangible book value per share fell to $4.82 from $14.22 at March 31, 2026.
- Provision for credit losses surged to $29.0 million from $3.4 million in Q1 2026.
- ACL ratio rose to 5.37% of loans from 2.36% in Q1 2026.
- Deposits decreased $97.0 million (8.9%) during the quarter.
- Loans held for investment declined $41.4 million (4.5%) during the quarter.
- Company restating 2024, 2025, and Q1 2026 financials due to accounting errors.
- Bank remains well-capitalized; Tier 1 leverage ratio improved to 8.30% from 5.89%.
Financial Impact
Net loss of $32.7 million driven by $41.5M asset resolution plan; tangible book value destroyed from $14.22 to $4.82 per share
Risk Factors
- Further credit deterioration in the remaining SBA 7(a) portfolio
- Regulatory enforcement actions or capital requirements
- Dilution from the upcoming rights offering
- Deposit outflow continuing to pressure liquidity
- Potential material weaknesses in internal controls
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 7 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001649739-26-000058 |
| Document: bafn-20260813.htm | 0001649739-26-000058 |
| Document: bayfirstinvestorpresenta.htm | 0001649739-26-000058 |
| Document: 0001649739-26-000058-index-headers.html | 0001649739-26-000058 |
| Document: 0001649739-26-000058-index.html | 0001649739-26-000058 |
| Document: 0001649739-26-000058.txt | 0001649739-26-000058 |
| 8-K Data (Synthetic) | 0001649739-26-000058 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 7d ago | SC 13D/A | $6.44 | awaiting T+60 | — | $6.88 (+6.83%) |
Oct 13, 2026 13d ago | SC 13D/A | $5.25 | awaiting T+60 | — | $6.88 (+31.05%) |
Sep 30, 2026 26d ago | 8-K | $6.81 | awaiting T+60 | — | $6.88 (+1.03%) |
Sep 29, 2026 27d ago | 8-K | $7.21 | awaiting T+60 | — | $6.88 (−4.58%) |
Sep 24, 2026 4w ago | 3 | $7.12 | awaiting T+60 | — | $6.88 (−3.37%) |
Sep 24, 2026 4w ago | Press Release | $7.12 | awaiting T+60 | — | $6.88 (−3.37%) |
Sep 1, 2026 7w ago | 8-K | $7.15 | awaiting T+60 | — | $6.88 (+3.78%) |
Aug 27, 2026 8w ago | 8-K | $6.61 | awaiting T+60 | — | $6.88 (+4.08%) |
Aug 25, 2026 8w ago | EFFECT | $7.37 | awaiting T+60 | — | $6.88 (+6.65%) |
Aug 21, 2026 9w ago | S-1/A | $7.31 | awaiting T+60 | — | $6.88 (+5.88%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers