BayFirst Financial Corp. (BAFN)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
BayFirst Financial Corp. (BAFN) trades at $5.51 with AI Score 40/100 (Grade C). BayFirst Financial Corp. , through its subsidiary First Home Bank, provides commercial and consumer banking services. Market cap: $22.63M, Sector: Financial services.
Price live · AI analysis from May 10, 2026Analyst Coverage for BAFN: BAFN does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates BAFN against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
BAFN: 1/1 perspectives are bearish.
How is this calculated? →BayFirst Financial Corp. (BAFN) Financial Services Profile
BayFirst Financial Corp., operating through First Home Bank, delivers commercial and consumer banking services in Florida. It distinguishes itself with minority lending programs and SBA loan services, amidst a competitive regional banking landscape and evolving fintech environment, while facing challenges related to profitability and market capitalization.
What Is the Investment Thesis for BAFN?
BayFirst Financial Corp. presents a complex investment case. The company's focus on specialized lending programs, such as minority and SBA loans, positions it to capitalize on underserved markets within Florida. However, a concerning profit margin of -32.7% raises questions about operational efficiency and profitability. The dividend yield of 1.16% offers some return to investors, but the low market capitalization of $22.63M suggests limited liquidity and potential volatility. Growth catalysts include expansion of its digital banking platform and strategic partnerships to enhance service offerings. Investors should closely monitor the company's ability to improve its profit margins and manage credit risk in its loan portfolio. The beta of 0.31 indicates lower volatility compared to the market, which may appeal to risk-averse investors. Ultimately, the investment thesis hinges on BayFirst's ability to execute its growth strategy while addressing its profitability challenges.
Based on FMP financials and quantitative analysis
BAFN Key Highlights
- Market capitalization of $22.63M, indicating a small-cap company with potential for growth but also higher risk.
- Negative profit margin of -32.7%, highlighting significant challenges in achieving profitability.
- Gross margin of 32.3%, suggesting potential for improved profitability through cost management and revenue optimization.
- Dividend yield of 1.16%, providing a modest income stream for investors.
- Beta of 0.31, indicating lower volatility compared to the overall market, which may appeal to risk-averse investors.
Who Are BAFN's Competitors?
BAFN is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CMA Comerica Incorporated | $88.67 | -4.51% | $11.35B | 48 |
| FHN First Horizon Corporation | $25.82 | +0.56% | $12.26B | 87 |
| TCBI Texas Capital Bancshares, Inc. | $105.25 | +1.25% | $4.60B | 93 |
| MCHB Mechanics Bank | $16.21 | +0.31% | 4B | 71 |
| STLE Steele Bancorp Inc. | $43.05 | -0.67% | $80.01M | 69 |
| NASB NASB Financial, Inc. | $40.30 | +0.00% | $289.22M | 68 |
| ASBA Associated Banc-Corp | $24.53 | +0.25% | $4.05B | 67 |
| KEY KeyCorp | $23.35 | +1.43% | $25.20B | 63 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are BAFN's Key Strengths?
- Strong local presence in Florida.
- Expertise in SBA and minority lending programs.
- Diverse range of banking products and services.
- Established relationships with local businesses.
What Are BAFN's Weaknesses?
- Low market capitalization.
- Negative profit margin.
- Limited geographic diversification.
- Reliance on the Florida economy.
What Could Drive BAFN Stock Higher?
- Potential for improved profitability through cost management initiatives.
- Expansion of digital banking services to attract and retain customers.
- Strategic partnerships to enhance service offerings and reach new markets.
What Are the Key Risks for BAFN?
- Financial-distress signal — its Altman Z-Score of 0.00 sits in the distress zone (elevated bankruptcy risk).
- Negative return on equity (-30.8%) — the business is not currently generating profit on shareholder capital.
- Increased competition from larger banks and fintech companies.
- Rising interest rates impacting loan demand and profitability.
- Economic downturn in Florida affecting loan quality and growth.
- Negative profit margin impacting financial stability.
What Are the Growth Opportunities for BAFN?
- Expansion of Digital Banking Platform: BayFirst can invest in enhancing its digital banking platform to attract and retain customers. The market for digital banking is growing rapidly, with a projected market size of $9 trillion by 2027. By offering a user-friendly mobile app and online banking services, BayFirst can improve customer experience and reduce operating costs. This initiative can be implemented within the next 12-18 months.
- Strategic Partnerships with Fintech Companies: Collaborating with fintech companies can enable BayFirst to offer innovative financial products and services. The fintech market is expected to reach $305 billion by 2025. By partnering with fintech firms, BayFirst can leverage their technology and expertise to enhance its service offerings and reach new customer segments. These partnerships can be established within the next 6-12 months.
- Geographic Expansion within Florida: BayFirst can expand its branch network and loan production offices in high-growth areas of Florida. The Florida economy is growing faster than the national average, with a projected GDP growth of 3.5% in 2024. By expanding its presence in key markets, BayFirst can increase its market share and revenue. This expansion can be phased in over the next 2-3 years.
- Increased Focus on SBA Lending: BayFirst can capitalize on the growing demand for SBA loans by expanding its SBA lending program. The SBA loan market is expected to reach $50 billion by 2025. By offering competitive rates and streamlined application processes, BayFirst can attract more SBA loan customers and generate higher fee income. This initiative can be implemented within the next 6-12 months.
- Development of New Loan Products: BayFirst can develop new loan products tailored to specific customer segments, such as small businesses and real estate investors. The market for specialized loan products is growing, with a projected market size of $2 trillion by 2026. By offering innovative loan solutions, BayFirst can differentiate itself from competitors and attract new customers. These new products can be launched within the next 12-18 months.
What Opportunities Does BAFN Have?
- Expansion of digital banking platform.
- Strategic partnerships with fintech companies.
- Geographic expansion within Florida.
- Increased focus on SBA lending.
What Threats Does BAFN Face?
- Intense competition from larger banks.
- Rising interest rates.
- Economic downturn in Florida.
- Increased regulatory scrutiny.
What Are BAFN's Competitive Advantages?
- Strong local presence in Florida markets.
- Expertise in SBA lending programs.
- Focus on minority lending, creating a niche market.
- Established relationships with local businesses and communities.
What Does BAFN Do?
BayFirst Financial Corp., established in 1999 and headquartered in Saint Petersburg, Florida, functions as the bank holding company for First Home Bank. The bank offers a comprehensive suite of commercial and consumer banking services tailored to businesses and individuals. Its product offerings include various deposit accounts such as checking, savings, and certificates of deposit. BayFirst also provides a wide array of lending options, encompassing residential mortgages, home equity loans, home equity lines of credit, and business lending services. A key differentiator is its focus on minority lending programs, alongside participation in PPP loan forgiveness and SBA loan programs. BayFirst has expanded its service portfolio to include treasury management, merchant services, online banking, investment services, and credit cards. As of January 2022, the company operated seven full-service offices across Florida, specifically in St. Petersburg, Seminole, Pinellas Park, Clearwater, Sarasota, Tampa, and Belleair Bluffs, complemented by 23 mortgage loan production offices. This network supports its reach across the Florida market. The company rebranded from First Home Bancorp, Inc. to BayFirst Financial Corp. in May 2021, marking a strategic shift in its corporate identity.
What Products and Services Does BAFN Offer?
- Provides checking and savings accounts to individuals and businesses.
- Offers certificates of deposit (CDs) with varying terms.
- Originates residential mortgages, home equity loans, and home equity lines of credit.
- Provides business lending services, including minority lending programs and SBA loans.
- Offers PPP loan forgiveness services to eligible businesses.
- Provides treasury management services to businesses.
- Offers merchant services to businesses.
- Provides online and mobile banking services.
How Does BAFN Make Money?
- Generates revenue from interest income on loans.
- Earns fee income from services such as treasury management and merchant services.
- Profits from the spread between interest earned on assets and interest paid on liabilities.
- Gains revenue from service charges and other fees.
What Industry Does BAFN Operate In?
BayFirst Financial Corp. operates within the regional banking sector, which is characterized by intense competition and evolving customer expectations. The industry is undergoing a digital transformation, with fintech companies challenging traditional banking models. BayFirst competes with larger national banks and smaller community banks in the Florida market. The company's focus on specialized lending programs, such as minority and SBA loans, provides a niche market position. However, it faces challenges related to regulatory compliance, interest rate risk, and credit quality. The regional banking sector is expected to grow moderately, driven by economic expansion and population growth in Florida.
Who Are BAFN's Key Customers?
- Individuals seeking personal banking services.
- Small businesses requiring loans and deposit accounts.
- Real estate investors seeking financing for properties.
- Businesses participating in government-sponsored lending programs (e.g., SBA, PPP).
BayFirst Financial Corp. Financial Trajectory
BayFirst Financial Corp. (BAFN) reported $17.4M in revenue for Q1 2026, a decline of 16.3% compared to the prior quarter. The company recorded a net loss of $5.7M, with diluted EPS of $-1.48. Quarter-over-quarter revenue has been mixed, typical for a micro-cap company operating in Financial Services. Across the four most recent quarters, BAFN averaged $-1.80 in diluted EPS.
Company Profile
BayFirst Financial Corp. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Saint Petersburg, US. The company is led by CEO Thomas G. Zernick. BAFN has traded publicly since 2021.
How BayFirst Financial Corp. Is Valued
BayFirst Financial Corp. carries a market capitalization of $22.63M, placing it in the micro-cap category. Relative to its peer group, BAFN's quantitative score of 40/100 is below the peer average of 74/100.
ROE -31%Key Financial Metrics
Return on equity for BayFirst Financial Corp. stands at -30.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is -2.4%, showing how much profit it generates from its asset base. A current ratio of 7.10 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is -122.1%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 6/9Financial Health
BayFirst Financial Corp.'s Piotroski F-Score is 6/9, a 9-point checklist of profitability, leverage and efficiency — a middling fundamental profile. Its Altman Z-Score of 0.00 places it in the distress zone, a signal of elevated financial risk.
BAFN Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in BayFirst's future prospects, hinting at undervaluation or upcoming positive catalysts.
- The community sentiment seems to be leaning bullish, possibly driven by positive news or perceived strategic advantages.
- BayFirst is being viewed as a stable player in a turbulent market, attracting investors seeking safer havens.
- There's a growing perception that BayFirst is strategically positioned to capitalize on emerging opportunities within its sector.
Bear Case
- Recent market volatility is creating uncertainty around smaller financial institutions like BayFirst.
- Community discussions reveal concerns about increasing regulatory pressures impacting BayFirst's operational costs.
- There is a belief that BayFirst's growth potential might be limited compared to larger competitors in the financial sector.
- Some investors are worried about potential impacts from broader economic headwinds on BayFirst's loan portfolio quality.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $17M | -$6M | -$1.48 |
| Q4 2025 | $21M | -$2M | -$0.69 |
| Q3 2025 | $17M | -$19M | -$4.66 |
| Q2 2025 | $31M | -$1M | -$0.39 |
Based on FMP financials and quantitative analysis
BAFN Latest News
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Earnings Scheduled For April 30, 2026
benzinga · Apr 30, 2026
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Earnings Scheduled For October 30, 2025
benzinga · Oct 30, 2025
BAFN Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for BAFN.
Price Targets
Wall Street price target analysis for BAFN.
BAFN MoonshotScore
What does this score mean?
The MoonshotScore rates BAFN's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Thomas G. Zernick
Unknown
Information about Thomas G. Zernick's specific background and career history is not available within the provided data. Without access to additional sources, a detailed biography cannot be constructed. His prior experiences, education, and specific roles held before his current position remain unknown.
Track Record: Due to the absence of specific data regarding Thomas G. Zernick's achievements and strategic decisions at BayFirst Financial Corp., it is not possible to evaluate his track record or contributions to the company's milestones. His impact on the company's performance and strategic direction cannot be assessed based on the provided information.
What Investors Ask About BayFirst Financial Corp. (BAFN) — Financial Services
What does BayFirst Financial Corp. do?
BayFirst Financial Corp., operating through its First Home Bank subsidiary, provides a range of commercial and consumer banking services. These include deposit accounts like checking and savings, various loan products such as mortgages and SBA loans, and additional services like treasury management and online banking. The company focuses on serving individuals and businesses primarily within Florida, with a particular emphasis on minority lending programs. BayFirst aims to provide comprehensive financial solutions to its customer base while navigating the competitive regional banking landscape.
What do analysts say about BAFN stock?
Analyst coverage of BayFirst Financial Corp. (BAFN) is limited, given its small market capitalization. Key valuation metrics, such as price-to-earnings ratio, are difficult to assess due to the company's negative profit margin. Growth considerations center around the company's ability to expand its digital banking platform, manage credit risk, and improve profitability. Investors should closely monitor the company's financial performance and strategic initiatives to assess its long-term potential. Analyst sentiment is generally neutral, pending further evidence of improved financial performance.
What are the main risks for BAFN?
BayFirst Financial Corp. faces several key risks. Intense competition from larger regional and national banks, as well as emerging fintech companies, poses a threat to its market share. Rising interest rates could negatively impact loan demand and profitability. An economic downturn in Florida, where the company primarily operates, could lead to increased loan defaults and reduced growth. The company's current negative profit margin is a significant risk, highlighting challenges in achieving sustainable profitability. Effective risk management and strategic execution are crucial for mitigating these challenges.
What are the key factors to evaluate for BAFN?
BayFirst Financial Corp. (BAFN) holds an AI score of 40/100 (low). Not financial advice.
How frequently does BAFN data refresh on this page?
BAFN prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven BAFN's recent stock price performance?
BayFirst Financial Corp. (BAFN) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong local presence in Florida. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider BAFN overvalued or undervalued right now?
Valuing BayFirst Financial Corp. (BAFN) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying BAFN?
Before investing in BayFirst Financial Corp. (BAFN), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on the most recent available information.
- CEO background information is limited due to data availability.