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BayFirst Financial Corp (BAFN)
NASDAQ:BAFN
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BayFirst Financial Corp
(NASDAQ:BAFN)
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Rating:55Neutral
Price Target:
$9.00
▼(-3.23% Downside)
BayFirst Financial Corp faces significant challenges, primarily due to its recent financial performance and negative earnings call sentiment. The stock's technical indicators suggest bearish momentum, and the valuation is impacted by recent losses. While there are some positive aspects, such as revenue growth and strategic shifts, the overall outlook remains cautious.
BayFirst Financial Corp (BAFN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$35.76M
Dividend Yield3.7%
Average Volume (3M)11.15K
Price to Earnings (P/E)―
Beta (1Y)0.62
Revenue Growth1.41%
EPS Growth-508.14%
CountryUS
Employees305
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)-4.66
Shares Outstanding4,133,637
10 Day Avg. Volume16,746
30 Day Avg. Volume11,146
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)0.50
Price to Sales (P/S)0.44
P/FCF Ratio0.14
Enterprise Value/Market Cap3.61
Enterprise Value/Revenue1.05
Enterprise Value/Gross Profit2.14
Enterprise Value/Ebitda5.88
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
BayFirst Financial Corp Business Overview & Revenue Model
Company DescriptionBayFirst Financial Corp. operates as the bank holding company for First Home Bank that provides commercial and consumer banking services for businesses and individuals. The company offers checking and savings accounts, and certificates of deposit. It also provides home loans, including residential mortgages, home equity loans, and home equity lines of credit; and business lending services comprising minority lending programs, PPP loan forgiveness services, SBA loans, and commercial lending services. In addition, the company offers treasury management, merchant, online, and investment services; and credit cards. As of January 26, 2022, it operated seven full-service office locations in St. Petersburg, Seminole, Pinellas Park, Clearwater, Sarasota, Tampa, and Belleair Bluffs, Florida; and 23 mortgage loan production offices. The company was formerly known as First Home Bancorp, Inc. and changed its name to BayFirst Financial Corp. in May 2021. BayFirst Financial Corp. was founded in 1999 and is headquartered in Saint Petersburg, Florida.
How the Company Makes MoneyBayFirst Financial Corp generates revenue through several key streams, primarily from interest income on loans and investments. The company earns money by providing various loan products, including commercial loans, residential mortgages, and consumer loans, charging interest on these loans as borrowers repay them over time. Additionally, BayFirst earns fee income from services such as deposit accounts, transaction fees, and other banking services. The bank may also generate revenue from wealth management services, investment advisory, and insurance products. Strategic partnerships with other financial institutions and businesses can enhance its service offerings and increase customer acquisition, contributing positively to its earnings.
BayFirst Financial Corp Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Jan 22, 2026
Earnings Call Sentiment Negative
The earnings call presented a challenging quarter for BayFirst Financial Corp. with significant net losses and restructuring charges as the company transitions away from its SBA 7(a) lending business. While there were positive signs such as an increase in deposit balances and a reduction in net charge-offs, the lowlights, including decreased net interest margin and higher nonperforming assets, were more prominent.Q3-2025 Updates
Positive Updates
Strategic Transition to Community Banking
BayFirst Financial Corp. is exiting the SBA 7(a) lending business, which previously contributed to operating losses, and selling a large portion of this portfolio to Banesco USA. The transition aims to refocus on being a premier community bank in the Tampa Bay area.
Increase in Deposit Balances
Total deposit balances increased by $7.7 million or 0.7% during the third quarter of 2025 and by $59.3 million or 5.3% over the past year to $1.17 billion, with more than 84% of deposits insured by the FDIC.
Net Charge-offs Reduction
Net charge-offs, primarily from unguaranteed SBA 7(a) balances, were $3.3 million, which was a reduction of $3.5 million compared to the second quarter.
Negative Updates
Significant Net Loss
The company reported a net loss of $18.9 million in the third quarter, compared to a net loss of $1.2 million in the second quarter.
Restructuring Charges
A restructuring charge of $7.3 million was recorded, including $2.9 million to write off assets and prepaid expenses related to the SBA 7(a) lending business, and $3.9 million in personnel-specific costs.
Decreased Net Interest Margin
The net interest margin decreased by 45 basis points to 3.61% in the third quarter, impacted by onetime adjustments.
Noninterest Income Decline
Noninterest income was a negative $1 million for the third quarter, a significant decrease from $10.8 million in the second quarter, primarily due to the decrease of gains on the sale of SBA 7(a) loans.
Higher Nonperforming Assets
Nonperforming assets were 1.97% of total assets as of September 30, 2025, up from 1.79% at June 30, 2025.
Company Guidance
During the BayFirst Financial Corp. Q3 2025 Conference Call, CEO Tom Zernick outlined the company's strategic shift to exit the SBA 7(a) lending business and focus on their core community banking model. The company reported a net loss of $18.9 million for the third quarter, a significant increase from the $1.2 million loss in the previous quarter, largely due to a $7.3 million restructuring charge and adjustments related to the sale of a substantial portion of their SBA 7(a) portfolio to Banesco USA. This sale, priced at a 3% discount, is expected to close later in the quarter, though it has been delayed by a federal government shutdown. The company also saw a decrease in loans held for investment by $127.1 million and a slight increase in total deposits by $7.7 million during the quarter. Despite a dip in net interest margin to 3.61%, Zernick expressed confidence in achieving a 4% target by reducing deposit costs and appropriately pricing loans. The company aims for a positive return on assets of 40 to 70 basis points in 2026, supported by a focus on resolving nonperforming loans and improving credit quality.BayFirst Financial Corp Financial Statement Overview
Summary
BayFirst Financial Corp demonstrates solid revenue growth and profitability improvements in the TTM period. However, increased leverage and declining cash flow growth present potential risks. The company needs to manage its debt levels and improve operational efficiency to sustain its financial health.Income Statement
BayFirst Financial Corp has shown a strong revenue growth trajectory, particularly in the TTM period with a 50.9% increase. The gross profit margin remains robust at 49.18%, although it has decreased from previous years. Net profit margin has improved to 7.62% in the TTM, indicating better profitability. However, the EBIT and EBITDA margins have declined compared to the previous year, suggesting potential operational challenges.72
Positive
Balance Sheet
The company's debt-to-equity ratio has increased to 0.57 in the TTM, indicating higher leverage compared to previous years. Return on equity has decreased to 8.66%, reflecting reduced profitability on shareholder investments. The equity ratio remains stable, suggesting a balanced asset structure, but the increased debt level poses a risk.65
Positive
Cash Flow
Operating cash flow remains strong, although it has decreased in the TTM. Free cash flow growth has turned negative, indicating potential cash management issues. The free cash flow to net income ratio is nearly 1, showing efficient cash conversion, but the decline in free cash flow growth is a concern.68
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 122.52M | 125.24M | 110.85M | 66.41M | 63.35M | 134.09M |
| Gross Profit | 60.26M | 65.73M | 68.32M | 58.54M | 59.55M | 106.92M |
| EBITDA | 21.91M | 25.71M | 14.79M | 12.01M | 16.05M | 20.84M |
| Net Income | 9.34M | 12.60M | 5.70M | -349.00K | 24.62M | 12.70M |
Balance Sheet | ||||||
| Total Assets | 1.34B | 1.29B | 1.12B | 938.89M | 917.10M | 1.54B |
| Cash, Cash Equivalents and Short-Term Investments | 101.41M | 88.94M | 102.61M | 113.28M | 143.00M | 57.76M |
| Total Debt | 61.48M | 22.40M | 20.96M | 37.37M | 12.71M | 13.63M |
| Total Liabilities | 1.24B | 1.18B | 1.02B | 847.01M | 820.80M | 1.47B |
| Stockholders Equity | 108.22M | 110.92M | 100.71M | 91.88M | 96.29M | 71.07M |
Cash Flow | ||||||
| Free Cash Flow | 325.14M | 388.84M | 447.21M | 432.19M | 482.27M | -110.87M |
| Operating Cash Flow | 325.70M | 390.53M | 454.80M | 440.25M | 495.39M | -107.82M |
| Investing Cash Flow | -412.01M | -515.93M | -641.28M | -510.61M | 207.62M | -933.38M |
| Financing Cash Flow | 102.83M | 144.80M | 178.82M | 26.67M | -648.66M | 985.98M |
BayFirst Financial Corp Technical Analysis
Negative
9.30
Price Trends
9.25
Positive
11.19
Negative
13.68
Negative
Market Momentum
-0.07
Positive
47.66
Neutral
12.35
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BAFN, the sentiment is Negative. The current price of 9.3 is below the 20-day moving average (MA) of 9.53, above the 50-day MA of 9.25, and below the 200-day MA of 13.68, indicating a neutral trend. The MACD of -0.07 indicates Positive momentum. The RSI at 47.66 is Neutral, neither overbought nor oversold. The STOCH value of 12.35 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BAFN.
BayFirst Financial Corp Risk Analysis
BayFirst Financial Corp disclosed 59 risk factors in its most recent earnings report. BayFirst Financial Corp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
BayFirst Financial Corp Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $47.30M | 3.13 | 14.85% | ― | 25.77% | 12.09% | |
72 Outperform | $48.61M | 10.75 | 8.21% | 3.25% | 0.32% | 37.93% | |
68 Neutral | $51.21M | 10.12 | 4.54% | 3.87% | 6.89% | ― | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
57 Neutral | $47.56M | 20.44 | 4.50% | 0.99% | 13.47% | ― | |
55 Neutral | $35.76M | -2.78 | -11.14% | 3.70% | 1.41% | -508.14% |
* Financial Sector Average
BAFN
BayFirst Financial Corp
8.65
-4.59
-34.67%
ASRV
Ameriserv Financial
3.10
0.51
19.69%
HFBL
Home Federal Bancorp Of Louisiana
16.30
4.24
35.16%
OPHC
Optimumbank Holdings
4.10
-0.70
-14.58%
TCBS
Texas Community
16.03
1.33
9.05%
PBBK
PB Bankshares
19.52
4.50
29.96%
BayFirst Financial Corp Corporate Events
Financial Disclosures
BayFirst Financial to Release Q3 Results October 30
Neutral
Sep 30, 2025
BayFirst Financial Corp. announced it will release its third-quarter results on October 30, 2025, with a conference call scheduled for October 31, 2025, to discuss the outcomes. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market position and investor confidence.
The most recent analyst rating on (BAFN) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on BayFirst Financial Corp stock, see the BAFN Stock Forecast page.
Business Operations and StrategyM&A Transactions
BayFirst Financial Exits SBA 7(a) Lending Business
Neutral
Sep 29, 2025
On September 29, 2025, BayFirst Financial Corp. announced its decision to exit the SBA 7(a) lending business by selling $103 million in SBA 7(a) loan balances to Banesco USA. This strategic move is part of BayFirst’s efforts to derisk its balance sheet and focus on long-term growth, with the majority of its SBA lending staff transitioning to Banesco USA. The transaction is expected to close in the fourth quarter of the year, marking a significant shift in BayFirst’s operations while Banesco USA aims to expand its small business lending capabilities nationally.
The most recent analyst rating on (BAFN) stock is a Hold with a $9.50 price target. To see the full list of analyst forecasts on BayFirst Financial Corp stock, see the BAFN Stock Forecast page.
Business Operations and StrategyDividendsProduct-Related Announcements
BayFirst Financial Discontinues Bolt Loan Program
Negative
Aug 4, 2025
On August 4, 2025, BayFirst Financial Corp. announced the immediate discontinuation of its Bolt loan program, an SBA 7(a) loan product designed for small businesses, as part of a strategic review to position the company for long-term growth. This decision includes a workforce reduction of 17%, saving $6 million annually, and involves charge-offs and fair value write-downs on high-risk loans. The company plans to sell the Bolt loan balances and origination platform, while suspending dividend payments and board fees to offset impacts. These changes aim to focus resources on community banking and adapt to the evolving market landscape.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.