BayFirst Financial Stock Drops Over 37% After Hours Following Capital Raise, Q1 Loss

BayFirst Financial Corp. (NASDAQ:BAFN) fell over 37% in after-hours trading on Wednesday after the company reported a Q1 2026 net loss, announced an $80 million capital raise, and named a new CEO for its bank unit.

Capital Raise

The company said it raised $80 million through a private investment in public equity (PIPE).

It issued convertible preferred stock that will convert into about 22.9 million common shares at $3.50 per share, subject to approvals.

CEO Change

The company named Alfred Rogers as CEO and President of BayFirst National Bank, replacing retiring CEO Tom Zernick.

Q1 2026 Results

BayFirst Financial Corp reported a net loss of $5.7 million for Q1 2026, compared to a loss of $2.5 million in the previous quarter. Net interest income was $9.4 million, down from $11.2 million in the prior quarter.

Net interest margin came in at 3.42%, compared to 3.58% in the previous quarter. Total loans (net) stood at $930.4 million, lower than $963.9 million in the prior quarter. Total deposits were $1.09 billion, down from $1.18 billion. Book value per share was $15.74, compared to $17.22 in the previous quarter.

About The Company

BayFirst Financial Corp is a bank holding company and the parent of BayFirst National Bank. It provides banking services to consumers and small businesses in the Tampa Bay region.

Trading Metrics, Technical Analysis

BayFirst Financial Corp has a market capitalisation of $34.22 million. The stock has traded within a 52-week range of $4.80 to $17.16. It has shown pressure in recent periods, with declines in loans, deposits, and book value compared to prior quarters.

Price Action

BayFirst Financial Corp closed regular trading at $8.33. It fell to $5.18 in after-hours trading, according to Benzinga Pro.

Benzinga's Edge Stock Rankings indicate that BayFirst Financial Corp is showing a positive price trend in the short- and medium-term time frames, while the long-term trend remains negative.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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