The massive loss and restatement confirm severe credit deterioration in the legacy SBA 7(a) portfolio. Monitor the upcoming rights offering and any further regulatory actions. The stock is likely to remain under pressure until the company demonstrates a return to profitability and stabilizes its balance sheet.
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 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 for Q2 2026, compared to a restated net loss of $5.9 million in Q1 2026 and a net loss of $1.9 million in Q2 2025.
- EPS of -$8.05 per diluted share, down from -$1.54 in Q1 2026 and -$0.54 in Q2 2025.
- Tangible book value per share collapsed from $14.22 at March 31, 2026 to $4.82 at June 30, 2026.
- Restatement of previously issued financial statements for 2024, 2025, and Q1 2026 due to accounting errors in SBA 7(a) loan accounting.
- The Bank remains well-capitalized with a Tier 1 leverage ratio of 8.30% after an $80M capital raise, but total assets declined 15.1% YoY to $1.13 billion.
- Loans held for investment decreased 21.2% YoY to $882.8 million, and deposits decreased 15.0% YoY to $988.9 million.
- Net interest margin was 3.48%, down 53 bps from 4.01% a year ago.
- Provision for credit losses was $29.0 million, up from $3.4 million in Q1 2026 and $7.6 million in Q2 2025.
- Noninterest income was negative $6.8 million, driven by $6.5 million in government guaranteed loan fair value losses.
- The company redeemed all Series A and Series B preferred shares in August 2026 for a total of $9.7 million.
Financial Impact
Net loss of $32.7 million, driven by $41.5 million in asset resolution plan expenses; tangible book value destroyed from $14.22 to $4.82 per share
Risk Factors
- Further credit losses from the legacy SBA 7(a) portfolio beyond the $41.5M already reserved
- Regulatory enforcement actions or capital requirements from the restatement and accounting errors
- Continued deposit outflows and loan portfolio shrinkage impacting net interest income
- Dilution from the upcoming rights offering and potential further capital raises
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3344874 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 19, 2026 8d ago | SC 13D/A | $6.44 | awaiting T+60 | — | $6.02 (−6.52%) |
Oct 13, 2026 14d ago | SC 13D/A | $5.25 | awaiting T+60 | — | $6.02 (+14.67%) |
Sep 30, 2026 27d ago | 8-K | $6.81 | awaiting T+60 | — | $6.02 (−11.60%) |
Sep 29, 2026 28d ago | 8-K | $7.21 | awaiting T+60 | — | $6.02 (−16.50%) |
Sep 24, 2026 4w ago | 3 | $7.12 | awaiting T+60 | — | $6.02 (−15.45%) |
Sep 24, 2026 4w ago | Press Release | $7.12 | awaiting T+60 | — | $6.02 (−15.45%) |
Sep 1, 2026 8w ago | 8-K | $7.15 | awaiting T+60 | — | $6.02 (+15.80%) |
Aug 27, 2026 8w ago | 8-K | $6.61 | awaiting T+60 | — | $6.02 (−8.93%) |
Aug 25, 2026 9w ago | EFFECT | $7.37 | awaiting T+60 | — | $6.02 (+18.32%) |
Aug 21, 2026 9w ago | S-1/A | $7.31 | awaiting T+60 | — | $6.02 (+17.65%) |
US Market Status
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