BayFirst Financial Corp. (BAFN) Stock Analysis

BayFirst Financial Corp. (BAFN) differentiates itself primarily through its national government-guaranteed lending platform, particularly in Small Business Administration (SBA) 7(a) loans. As of mid-2024, BAFN ranked third nationwide by number of SBA 7(a) loans originated and ninth by dollar volume, and it led the Tampa Bay market by dollar volume¹. This scale in SBA lending provides both fee income and a pipeline of government-backed assets, reducing credit risk relative to peers.

Unlike larger regional banks such as Synovus or SouthState, BAFN combines national lending reach with a community banking footprint concentrated in the Tampa Bay/Sarasota region. Its deposit base is granular and stable, with 74–78% of deposits FDIC-insured, mitigating run risk—a key concern for smaller banks post-2023.²³⁴

BAFN’s proprietary loan origination technology (PowerLOS) streamlines processing and supports high-volume, small-balance lending, enabling cost efficiencies and rapid scaling.⁵ The company’s “Bolt” program, focused on sub-$150,000 SBA loans, exemplifies this operational leverage.⁶

However, BAFN’s competitive edge is partly offset by its modest scale and limited brand recognition outside Florida. Larger banks can undercut on price or offer broader services. Still, BAFN’s focus on underserved small businesses and its ability to adapt products—such as flexible loan modifications—support customer retention and satisfaction.⁷ Its low price-to-book ratio (0.56x) and double-digit return on equity (11%) suggest operational discipline and potential undervaluation relative to peers.⁸