BayFirst Financial Corp. Reports Fourth Quarter 2023 Results; Highlighted by Net Interest Margin Expansion and Strong SBA Loan Originations
- None.
- Deposits decreased by $32.7 million in Q4 2023.
- Net charge-offs increased to $2.6 million in Q4 2023, up from $2.2 million in Q3 2023.
Insights
The reported net income of BayFirst Financial Corp. for the fourth quarter of 2023 indicates a sequential decline from the previous quarter and a year-over-year decrease from the fourth quarter of 2022. This decline could suggest potential concerns for investors regarding the bank's profitability trajectory. However, the expansion in net interest margin, a key indicator of bank profitability, from 3.36% to 3.48% is a positive sign. It reflects an increase in loan yields, which may offset concerns about the net income decline to some extent.
Furthermore, the growth in loans held for investment, excluding PPP loans, by 5.7% for the quarter and 28.6% over the past year, shows a robust lending activity that could be a driver for future revenue. The decrease in deposits, particularly the $43.3 million drop in time deposits, could be attributed to the maturity and non-renewal of high-cost deposits, which could benefit the bank's cost of funds in the long run.
Lastly, the Bank's liquidity position and capital ratios, although slightly decreased from the previous year, remain above regulatory minimums, indicating financial stability. The overall analysis suggests that while there are areas of concern, there are also positive aspects that could influence investor sentiment.
BayFirst's strategic expansion, including the opening of a new banking center and the growth in the net number of checking accounts, aligns with the bank's focus on becoming the premier community bank in the Tampa Bay market. This expansion is critical for building franchise value and establishing a deeper market penetration.
The bank's performance in originating SBA 7(a) loans, ranking 5th in dollar volume nationwide, highlights its competitive position in the small business lending space. The success of the SBA Bolt loan program suggests a strong product-market fit for small loan offerings with government guarantees, which could be an attractive proposition for small businesses seeking working capital.
However, the decrease in government guaranteed loan origination in the fourth quarter compared to the previous one needs monitoring, as it could indicate a cooling in what has been a strong growth area for the bank.
The bank's performance must be contextualized within the broader economic environment, characterized by rising interest rates and potential economic headwinds. The increase in net interest margin in such an environment is indicative of effective asset-liability management, particularly in terms of loan pricing.
The reduction in the provision for credit losses suggests that the bank is not currently experiencing significant asset quality issues, which is a positive signal in the context of economic uncertainty. However, the increase in noninterest expenses, including compensation and loan origination costs, may reflect inflationary pressures and increased costs of doing business.
Investors should consider the bank's resilience in the face of economic challenges, including its ability to manage credit risk and maintain asset quality, as well as its strategic initiatives to grow its retail presence and lending portfolio.
ST. PETERSBURG, Fla., Jan. 25, 2024 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (the “Bank”) today reported net income of
Earnings benefited from higher net interest income and lower provision for credit losses during the fourth quarter, as compared to the third quarter of 2023. This was offset by higher noninterest expense and a gain recorded in the third quarter for the sale of other real estate owned that did not recur in the fourth quarter.
“BayFirst reported solid fourth quarter results, highlighted by net interest margin expansion and supported by the strength of our community bank and our CreditBench government guaranteed lending division,” stated Thomas G. Zernick, Chief Executive Officer. “Our fourth quarter progress is the result of our continued focus on expanding our footprint and becoming the premier community bank in the Tampa Bay market. During the fourth quarter, we opened a new banking center in North Sarasota, representing our eleventh banking center and our fourth banking center in the Sarasota Bradenton area of the Tampa Bay region. Our retail banking centers continue to build franchise value, and we were successful in growing net new number of checking accounts by
“Another highlight of the quarter was originating the 5th highest in dollar volume of SBA 7(a) loans nationwide, as compared to the 7th highest during the SBA's 2023 fiscal year ended September 30, 2023,” Zernick continued. “CreditBench produced
Fourth Quarter 2023 Performance Review
- The Company’s government guaranteed loan origination platform, CreditBench, originated
$144.9 million in new government guaranteed loans during the fourth quarter of 2023, a decrease of7.0% from$155.9 million of loans produced in the previous quarter, and a32.8% increase over$109.2 million of loans produced during the fourth quarter of 2022. Demand remains strong for the Company's Bolt loan program, an SBA 7(a) loan product designed to expeditiously provide working capital loans of$150 thousand or less to businesses throughout the country. Since the launch in late second quarter of 2022, the Company has originated 3,408 Bolt loans totaling$441.8 million , of which 779 Bolt loans totaling$102.3 million were originated during the quarter. - Loans held for investment, excluding PPP loans of
$3.2 million , increased by$49.3 million , or5.7% , during the fourth quarter of 2023 to$912.5 million and increased$203.0 million , or28.6% , over the past year. During the quarter, the Company originated$202.1 million of loans, purchased$5.4 million of government guaranteed loans, and sold$124.3 million of government guaranteed loan balances. - Deposits decreased
$32.7 million , or3.2% , during the fourth quarter of 2023 and increased$190.1 million , or23.9% , over the past year to$985.1 million . A$43.3 million decrease in time deposits was partially due to the maturity of$70.7 million of time deposits in the fourth quarter of 2023, of which the majority were not expected to renew. - Balance sheet liquidity remains strong, with
$63.0 million in cash balances and time deposits with other banks as of December 31, 2023. Additionally, the Company maintains significant borrowing capacity through the FHLB and Federal Reserve discount window. Approximately84% of the Company's deposits were insured at the end of 2023. - Book value and tangible book value at December 31, 2023 were
$20.60 per common share, an increase from$20.12 at September 30, 2023. - Net interest margin including discontinued operations increased by 12 bps to
3.48% in the fourth quarter of 2023, from3.36% in the third quarter of 2023, primarily due to increases in loan yields.
Results of Operations
Net Income (Loss)
Net income was
For the year ended 2023, net income was
Net Interest Income and Net Interest Margin
Net interest income from continuing operations was
The increase during the fourth quarter of 2023 as compared to the third quarter of 2023 was mainly due to an increase in loan interest income, including fees, of
The increase during the fourth quarter of 2023 as compared to the year ago quarter was mainly due to an increase in interest income of
Net interest income from continuing operations was
Noninterest Income
Noninterest income from continuing operations was
Noninterest income from continuing operations was
Noninterest Expense
Noninterest expense from continuing operations was
Noninterest expense from continuing operations was
Discontinued Operations
Net loss on discontinued operations was
Net loss from discontinued operations was
Balance Sheet
Assets
Total assets decreased
Loans
Loans held for investment, excluding PPP loans, increased
Deposits
Deposits decreased
Asset Quality
In accordance with changes in generally accepted accounting principles, the Company adopted the new credit loss accounting standard known as CECL on January 1, 2023. At the time of adoption, the allowance for credit losses ("ACL") for loans increased by
The Company recorded a provision for credit losses in the fourth quarter of
The ratio of ACL to total loans held for investment at amortized cost was
Net charge-offs for the fourth quarter of 2023 were
Capital
The Bank’s Tier 1 leverage ratio was
Liquidity
The Bank has liquidity well in excess of Bank’s internal minimums and those required to be categorized as well-capitalized by our bank regulators. The Bank’s overall liquidity position remains strong and stable. The on-balance sheet liquidity ratio at December 31, 2023 was
Recent Events
Preferred Stock Offering. On September 30, 2023, the Company issued 1,835 shares of
First Quarter Common Stock Dividend. On January 23, 2024, BayFirst’s Board of Directors declared a first quarter 2024 cash dividend of
Conference Call
BayFirst’s management team will host a conference call on Friday, January 26, 2024 at 9:00 a.m. ET to discuss its fourth quarter results. Interested investors may listen to the call live under the Investor Relations tab at www.bayfirstfinancial.com. Investment professionals are invited to dial (888) 259-6580 to participate in the call using Conference ID 44206141. A replay will be available for one week at (877) 674-7070 using playback access code 206141# or at www.bayfirstfinancial.com.
About BayFirst Financial Corp.
BayFirst Financial Corp. is a registered bank holding company based in St. Petersburg, Florida which commenced operations on September 1, 2000. Its primary source of income is derived from its wholly owned subsidiary, BayFirst National Bank, a national banking association which commenced business operations on February 12, 1999. The Bank currently operates eleven full-service banking offices throughout the Tampa Bay region and offers a broad range of commercial and consumer banking services to businesses and individuals. The Bank was the 5th largest SBA 7(a) lender by dollar volume and 2nd by number of units originated nationwide through the first quarter ended December 31, 2023, of SBA's 2024 fiscal year. Additionally, it was the number one SBA 7(a) lender in dollar volume in the 5 county Tampa Bay market for the SBA's 2023 fiscal year. As of December 31, 2023, BayFirst Financial Corp. had
Forward-Looking Statements
In addition to the historical information contained herein, this presentation includes "forward-looking statements" within the meaning of such term in the Private Securities Litigation Reform Act of 1995. These statements are subject to many risks and uncertainties, including, but not limited to, the effects of health crises, global military hostilities, or climate change, including their effects on the economic environment, our customers and our operations, as well as any changes to federal, state or local government laws, regulations or orders in connection with them; the ability of the Company to implement its strategy and expand its banking operations; changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks related to mergers and acquisitions; changes in benchmark interest rates used to price loans and deposits, changes in tax laws, regulations and guidance; and other risks detailed from time to time in filings made by the Company with the SEC, including, but not limited to those “Risk Factors” described in our most recent Form 10-K and Form 10-Q. Readers should note that the forward-looking statements included herein are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements.
| BAYFIRST FINANCIAL CORP. SELECTED FINANCIAL DATA (Unaudited) | |||||||||||||||||||
| At or for the three months ended | |||||||||||||||||||
| (Dollars in thousands, except for share data) | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||
| Balance sheet data: | |||||||||||||||||||
| Average loans held for investment at amortized cost, excluding PPP loans | $ | 812,446 | $ | 773,749 | $ | 763,854 | $ | 699,355 | $ | 677,172 | |||||||||
| Average total assets | 1,108,550 | 1,088,517 | 1,064,068 | 969,489 | 925,194 | ||||||||||||||
| Average common shareholders’ equity | 82,574 | 81,067 | 80,310 | 78,835 | 80,158 | ||||||||||||||
| Total loans held for investment | 915,726 | 878,447 | 836,704 | 792,777 | 728,652 | ||||||||||||||
| Total loans held for investment, excluding PPP loans | 912,524 | 863,203 | 821,016 | 774,467 | 709,479 | ||||||||||||||
| Total loans held for investment, excl gov’t gtd loan balances | 698,106 | 687,141 | 638,148 | 596,505 | 569,892 | ||||||||||||||
| Allowance for credit losses (1) | 13,497 | 13,365 | 12,598 | 12,208 | 9,046 | ||||||||||||||
| Total assets | 1,117,766 | 1,133,979 | 1,087,399 | 1,069,839 | 938,895 | ||||||||||||||
| Common shareholders’ equity | 84,656 | 82,725 | 81,460 | 80,734 | 82,279 | ||||||||||||||
| Share data: | |||||||||||||||||||
| Basic earnings per common share | $ | 0.32 | $ | 0.42 | $ | 0.29 | $ | 0.13 | $ | 0.28 | |||||||||
| Diluted earnings per common share | 0.32 | 0.41 | 0.29 | 0.13 | 0.28 | ||||||||||||||
| Dividends per common share | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||||||
| Book value per common share | 20.60 | 20.12 | 19.85 | 19.70 | 20.35 | ||||||||||||||
| Tangible book value per common share (2) | 20.60 | 20.12 | 19.85 | 19.70 | 20.35 | ||||||||||||||
| Performance and capital ratios: | |||||||||||||||||||
| Return on average assets(3) | 0.60 | % | 0.71 | % | 0.52 | % | 0.30 | % | 0.57 | % | |||||||||
| Return on average common equity(3) | 6.37 | % | 8.46 | % | 5.86 | % | 2.69 | % | 5.56 | % | |||||||||
| Net interest margin | 3.48 | % | 3.36 | % | 4.18 | % | 4.17 | % | 4.19 | % | |||||||||
| Dividend payout ratio | 25.03 | % | 19.15 | % | 27.89 | % | 61.48 | % | 28.99 | % | |||||||||
| Asset quality ratios: | |||||||||||||||||||
| Net charge-offs(3) | $ | 2,612 | $ | 2,234 | $ | 2,253 | $ | 1,887 | $ | 1,393 | |||||||||
| Net charge-offs/avg loans held for investment at amortized cost, excl PPP(3) | 1.29 | % | 1.15 | % | 1.18 | % | 1.08 | % | 0.82 | % | |||||||||
| Nonperforming loans | $ | 10,456 | $ | 10,393 | $ | 8,606 | $ | 5,890 | $ | 10,468 | |||||||||
| Nonperforming loans (excluding gov't gtd balance) | $ | 9,032 | $ | 8,776 | $ | 6,590 | $ | 2,095 | $ | 3,671 | |||||||||
| Nonperforming loans/total loans held for investment | 1.14 | % | 1.18 | % | 1.03 | % | 0.74 | % | 1.44 | % | |||||||||
| Nonperforming loans (excl gov’t gtd balance)/total loans held for investment | 0.99 | % | 1.00 | % | 0.79 | % | 0.26 | % | 0.50 | % | |||||||||
| ACL/Total loans held for investment at amortized cost (1) | 1.64 | % | 1.68 | % | 1.61 | % | 1.69 | % | 1.29 | % | |||||||||
| ACL/Total loans held for investment at amortized cost, excl PPP loans (1) | 1.64 | % | 1.72 | % | 1.64 | % | 1.73 | % | 1.33 | % | |||||||||
| ACL/Total loans held for investment at amortized cost, excl government guaranteed loans (1) | 2.03 | % | 2.03 | % | 2.03 | % | 2.10 | % | 1.62 | % | |||||||||
| Other Data: | |||||||||||||||||||
| Full-time equivalent employees | 305 | 307 | 302 | 300 | 291 | ||||||||||||||
| Banking center offices | 11 | 10 | 9 | 9 | 8 | ||||||||||||||
| (1) Prior to January 1, 2023, the incurred loss methodology was used to estimate credit losses. Beginning with that date, credit losses are estimated using the CECL methodology. | |||||||||||||||||||
| (2) See section entitled "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below for a reconciliation to most comparable GAAP equivalent. | |||||||||||||||||||
| (3) Annualized | |||||||||||||||||||
GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures
Some of the financial measures included in this report are not measures of financial condition or performance recognized by GAAP. These non-GAAP financial measures include tangible common shareholders' equity and tangible book value per common share. Our management uses these non-GAAP financial measures in its analysis of our performance, and we believe that providing this information to financial analysts and investors allows them to evaluate capital adequacy.
The following presents these non-GAAP financial measures along with their most directly comparable financial measures calculated in accordance with GAAP:
| Tangible Common Shareholders' Equity and Tangible Book Value Per Common Share (Unaudited) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| (Dollars in thousands, except for share data) | December 31, 2023 | September 30, 2023 | June 30, 2023 | March 31, 2023 | December 31, 2022 | |||||||||||||||
| Total shareholders’ equity | $ | 100,707 | $ | 94,165 | $ | 91,065 | $ | 90,339 | $ | 91,884 | ||||||||||
| Less: Preferred stock liquidation preference | (16,051 | ) | (11,440 | ) | (9,605 | ) | (9,605 | ) | (9,605 | ) | ||||||||||
| Total equity available to common shareholders | 84,656 | 82,725 | 81,460 | 80,734 | 82,279 | |||||||||||||||
| Less: Goodwill | — | — | — | — | — | |||||||||||||||
| Tangible common shareholders' equity | $ | 84,656 | $ | 82,725 | $ | 81,460 | $ | 80,734 | $ | 82,279 | ||||||||||
| Common shares outstanding | 4,110,470 | 4,110,650 | 4,103,834 | 4,098,805 | 4,042,474 | |||||||||||||||
| Tangible book value per common share | $ | 20.60 | $ | 20.12 | $ | 19.85 | $ | 19.70 | $ | 20.35 | ||||||||||
| BAYFIRST FINANCIAL CORP. | |||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||
| (Dollars in thousands) | 12/31/2023 | 9/30/2023 | 12/31/2022 | ||||||
| Assets | Unaudited | Unaudited | |||||||
| Cash and due from banks | $ | 4,099 | $ | 4,501 | $ | 3,649 | |||
| Interest-bearing deposits in banks | 54,286 | 108,052 | 62,397 | ||||||
| Cash and cash equivalents | 58,385 | 112,553 | 66,046 | ||||||
| Time deposits in banks | 4,646 | 4,631 | 4,881 | ||||||
| Investment securities available for sale, at fair value (amortized cost | 39,575 | 39,683 | 42,349 | ||||||
| Investment securities held to maturity, at amortized cost, net of allowance for credit losses of | 2,484 | 2,482 | 5,002 | ||||||
| Nonmarketable equity securities | 4,770 | 4,250 | 4,037 | ||||||
| Government guaranteed loans held for sale | — | 1,855 | — | ||||||
| Government guaranteed loans held for investment, at fair value | 91,508 | 84,178 | 27,078 | ||||||
| Loans held for investment, at amortized cost net of allowance for credit losses of | 810,721 | 780,904 | 692,528 | ||||||
| Accrued interest receivable | 7,130 | 6,907 | 4,452 | ||||||
| Premises and equipment, net | 38,874 | 37,992 | 35,440 | ||||||
| Loan servicing rights | 14,959 | 14,216 | 10,906 | ||||||
| Deferred income tax assets | — | 414 | 980 | ||||||
| Right-of-use operating lease assets | 2,416 | 2,594 | 3,177 | ||||||
| Bank owned life insurance | 25,800 | 25,630 | 25,159 | ||||||
| Other assets | 16,150 | 15,292 | 15,649 | ||||||
| Assets from discontinued operations | 348 | 398 | 1,211 | ||||||
| Total assets | $ | 1,117,766 | $ | 1,133,979 | $ | 938,895 | |||
| Liabilities: | |||||||||
| Noninterest-bearing deposits | $ | 93,708 | $ | 98,008 | $ | 93,235 | |||
| Interest-bearing transaction accounts | 259,422 | 267,404 | 202,656 | ||||||
| Savings and money market deposits | 373,000 | 350,110 | 363,053 | ||||||
| Time deposits | 259,008 | 302,274 | 136,126 | ||||||
| Total deposits | 985,138 | 1,017,796 | 795,070 | ||||||
| FHLB and FRB borrowings | 10,000 | — | 25,000 | ||||||
| Subordinated debentures | 5,949 | 5,947 | 5,992 | ||||||
| Notes payable | 2,389 | 2,503 | 2,844 | ||||||
| Accrued interest payable | 882 | 632 | 704 | ||||||
| Operating lease liabilities | 2,619 | 2,812 | 3,538 | ||||||
| Deferred income tax liabilities | 482 | — | — | ||||||
| Accrued expenses and other liabilities | 8,980 | 9,409 | 12,205 | ||||||
| Liabilities from discontinued operations | 620 | 715 | 1,658 | ||||||
| Total liabilities | 1,017,059 | 1,039,814 | 847,011 | ||||||
| Shareholders’ equity: | Unaudited | Unaudited | |||||||
| Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at December 31, 2023, September 30, 2023, and December 31, 2022; aggregate liquidation preference of | 6,161 | 6,161 | 6,161 | ||||||
| Preferred stock, Series B; no par value, 20,000 shares authorized, 3,210 shares issued and outstanding at December 31, 2023, September 30, 2023, and December 31, 2022; aggregate liquidation preference of | 3,123 | 3,123 | 3,123 | ||||||
| Preferred stock, Series C; no par value, 10,000 shares authorized, 6,446 and 1,835 shares issued and outstanding at December 31, 2023 and September 30, 2023, respectively, and no shares issued and outstanding as of December 31, 2022; aggregate liquidation preference of | 6,446 | 1,835 | — | ||||||
| Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,110,470, 4,110,650, and 4,042,474 shares issued and outstanding at December 31, 2023, September 30, 2023, and December 31, 2022, respectively | 54,521 | 54,500 | 53,023 | ||||||
| Accumulated other comprehensive loss, net | (2,981 | ) | (3,621 | ) | (3,724 | ) | |||
| Unearned compensation | (958 | ) | (1,242 | ) | (178 | ) | |||
| Retained earnings | 34,395 | 33,409 | 33,479 | ||||||
| Total shareholders’ equity | 100,707 | 94,165 | 91,884 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,117,766 | $ | 1,133,979 | $ | 938,895 | |||
| BAYFIRST FINANCIAL CORP. | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||||
| For the Quarter Ended | Year-to-Date | ||||||||||||||||||
| (Dollars in thousands, except per share data) | 12/31/2023 | 9/30/2023 | 12/31/2022 | 12/31/2023 | 12/31/2022 | ||||||||||||||
| Interest income: | Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||||
| Loans, including fees | $ | 17,714 | $ | 16,032 | $ | 11,680 | $ | 63,189 | $ | 36,492 | |||||||||
| Interest-bearing deposits in banks and other | 1,140 | 1,588 | 840 | 5,328 | 2,074 | ||||||||||||||
| Total interest income | 18,854 | 17,620 | 12,520 | 68,517 | 38,566 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Deposits | 9,719 | 9,055 | 3,711 | 30,795 | 7,844 | ||||||||||||||
| Other | 258 | 172 | 235 | 1,291 | 722 | ||||||||||||||
| Total interest expense | 9,977 | 9,227 | 3,946 | 32,086 | 8,566 | ||||||||||||||
| Net interest income | 8,877 | 8,393 | 8,574 | 36,431 | 30,000 | ||||||||||||||
| Provision for credit losses | 2,737 | 3,001 | 700 | 10,445 | (700 | ) | |||||||||||||
| Net interest income after provision for credit losses | 6,140 | 5,392 | 7,874 | 25,986 | 30,700 | ||||||||||||||
| Noninterest income: | |||||||||||||||||||
| Loan servicing income, net | 677 | 760 | 532 | 2,826 | 2,040 | ||||||||||||||
| Gain on sale of government guaranteed loans, net | 6,977 | 7,139 | 5,805 | 24,553 | 21,720 | ||||||||||||||
| Service charges and fees | 555 | 408 | 355 | 1,721 | 1,306 | ||||||||||||||
| Government guaranteed loans fair value gain, net | 4,697 | 4,543 | 1,246 | 15,718 | 4,756 | ||||||||||||||
| Other noninterest income | 1,785 | 1,829 | 466 | 4,937 | 1,728 | ||||||||||||||
| Total noninterest income | 14,691 | 14,679 | 8,404 | 49,755 | 31,550 | ||||||||||||||
| Noninterest Expense: | |||||||||||||||||||
| Salaries and benefits | 7,446 | 7,912 | 6,245 | 30,973 | 27,422 | ||||||||||||||
| Bonus, commissions, and incentives | 2,211 | 1,406 | 561 | 5,726 | 2,394 | ||||||||||||||
| Occupancy and equipment | 1,150 | 1,262 | 985 | 4,758 | 3,995 | ||||||||||||||
| Data processing | 1,422 | 1,526 | 1,342 | 5,611 | 4,828 | ||||||||||||||
| Marketing and business development | 640 | 929 | 560 | 3,336 | 2,660 | ||||||||||||||
| Professional services | 1,070 | 816 | 994 | 3,657 | 4,083 | ||||||||||||||
| Loan origination and collection | 2,728 | 1,981 | 1,225 | 7,425 | 3,711 | ||||||||||||||
| Employee recruiting and development | 510 | 543 | 577 | 2,177 | 2,230 | ||||||||||||||
| Regulatory assessments | 266 | 284 | 158 | 881 | 457 | ||||||||||||||
| Other noninterest expense | 1,023 | 768 | 846 | 3,163 | 3,432 | ||||||||||||||
| Total noninterest expense | 18,466 | 17,427 | 13,493 | 67,707 | 55,212 | ||||||||||||||
| Income before taxes from continuing operations | 2,365 | 2,644 | 2,785 | 8,034 | 7,038 | ||||||||||||||
| Income tax expense from continuing operations | 704 | 674 | 672 | 2,119 | 1,560 | ||||||||||||||
| Net income from continuing operations | 1,661 | 1,970 | 2,113 | 5,915 | 5,478 | ||||||||||||||
| Loss from discontinued operations before income taxes | (8 | ) | (62 | ) | (1,053 | ) | (283 | ) | (7,759 | ) | |||||||||
| Income tax benefit from discontinued operations | (2 | ) | (15 | ) | (262 | ) | (70 | ) | (1,932 | ) | |||||||||
| Net loss from discontinued operations | (6 | ) | (47 | ) | (791 | ) | (213 | ) | (5,827 | ) | |||||||||
| Net income (loss) | 1,655 | 1,923 | 1,322 | 5,702 | (349 | ) | |||||||||||||
| Preferred dividends | 341 | 208 | 208 | 965 | 832 | ||||||||||||||
| Net income available to (loss attributable to) common shareholders | $ | 1,314 | $ | 1,715 | $ | 1,114 | $ | 4,737 | $ | (1,181 | ) | ||||||||
| Basic earnings (loss) per common share: | Unaudited | Unaudited | Unaudited | Unaudited | |||||||||||||||
| Continuing operations | $ | 0.32 | $ | 0.43 | $ | 0.47 | $ | 1.21 | $ | 1.16 | |||||||||
| Discontinued operations | — | (0.01 | ) | (0.19 | ) | (0.05 | ) | (1.45 | ) | ||||||||||
| Basic earnings (loss) per common share | $ | 0.32 | $ | 0.42 | $ | 0.28 | $ | 1.16 | $ | (0.29 | ) | ||||||||
| Diluted earnings (loss) per common share: | |||||||||||||||||||
| Continuing operations | $ | 0.32 | $ | 0.42 | $ | 0.47 | $ | 1.17 | $ | 1.16 | |||||||||
| Discontinued operations | — | (0.01 | ) | (0.19 | ) | (0.05 | ) | (1.38 | ) | ||||||||||
| Diluted earnings (loss) per common share | $ | 0.32 | $ | 0.41 | $ | 0.28 | $ | 1.12 | $ | (0.22 | ) | ||||||||
| Loan Composition | |||||||||||||||||||
| (Dollars in thousands) | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| Government guaranteed loans held for investment, at fair value | $ | 91,508 | $ | 84,178 | $ | 52,165 | $ | 69,047 | $ | 27,078 | |||||||||
| Real estate: | |||||||||||||||||||
| Residential | 264,126 | 248,973 | 235,339 | 214,638 | 202,329 | ||||||||||||||
| Commercial | 293,595 | 280,620 | 272,200 | 239,720 | 231,281 | ||||||||||||||
| Construction and land | 26,272 | 25,339 | 15,575 | 11,069 | 9,320 | ||||||||||||||
| Commercial and industrial | 177,566 | 174,238 | 198,639 | 199,721 | 194,643 | ||||||||||||||
| Commercial and industrial - PPP | 3,202 | 15,364 | 15,808 | 18,430 | 19,293 | ||||||||||||||
| Consumer and other | 47,287 | 39,024 | 38,103 | 32,697 | 37,288 | ||||||||||||||
| Loans held for investment, at amortized cost, gross | 812,048 | 783,558 | 775,664 | 716,275 | 694,154 | ||||||||||||||
| Deferred loan costs, net | 14,707 | 12,928 | 11,506 | 10,678 | 10,740 | ||||||||||||||
| Discount on government guaranteed loans sold | (7,040 | ) | (6,623 | ) | (5,937 | ) | (6,046 | ) | (5,621 | ) | |||||||||
| Premium on loans purchased, net | 4,503 | 4,406 | 3,306 | 2,823 | 2,301 | ||||||||||||||
| Allowance for credit losses (1) | (13,497 | ) | (13,365 | ) | (12,598 | ) | (12,208 | ) | (9,046 | ) | |||||||||
| Loans held for investment, at amortized cost, net | 810,721 | 780,904 | 771,941 | 711,522 | 692,528 | ||||||||||||||
| Total loans held for investment, net | $ | 902,229 | $ | 865,082 | $ | 824,106 | $ | 780,569 | $ | 719,606 | |||||||||
| Nonperforming Assets (Unaudited) | |||||||||||||||||||
| (Dollars in thousands) | 12/31/2023 | 9/30/2023 | 6/30/2023 | 3/31/2023 | 12/31/2022 | ||||||||||||||
| Nonperforming loans (government guaranteed balances) | $ | 1,424 | $ | 1,617 | $ | 2,016 | $ | 3,795 | $ | 6,797 | |||||||||
| Nonperforming loans (unguaranteed balances) | 9,032 | 8,776 | 6,590 | 2,095 | 3,671 | ||||||||||||||
| Total nonperforming loans | 10,456 | 10,393 | 8,606 | 5,890 | 10,468 | ||||||||||||||
| OREO | — | — | 3 | 3 | 56 | ||||||||||||||
| Total nonperforming assets | $ | 10,456 | $ | 10,393 | $ | 8,609 | $ | 5,893 | $ | 10,524 | |||||||||
| Nonperforming loans as a percentage of total loans held for investment | 1.14 | % | 1.18 | % | 1.03 | % | 0.74 | % | 1.44 | % | |||||||||
| Nonperforming loans (excluding government guaranteed balances) to total loans held for investment | 0.99 | % | 1.00 | % | 0.79 | % | 0.26 | % | 0.50 | % | |||||||||
| Nonperforming assets as a percentage of total assets | 0.94 | % | 0.92 | % | 0.79 | % | 0.55 | % | 1.12 | % | |||||||||
| Nonperforming assets (excluding government guaranteed balances) to total assets | 0.81 | % | 0.77 | % | 0.61 | % | 0.20 | % | 0.40 | % | |||||||||
| ACL to nonperforming loans (1) | 129.08 | % | 128.60 | % | 146.39 | % | 207.27 | % | 86.42 | % | |||||||||
| ACL to nonperforming loans (excluding government guaranteed balances) (1) | 149.44 | % | 152.29 | % | 191.17 | % | 582.72 | % | 246.42 | % | |||||||||
(1) Prior to January 1, 2023, the incurred loss methodology was used to estimate credit losses. Beginning with that date, credit losses are estimated using the CECL methodology.
| Contacts: | |
| Thomas G. Zernick | Scott J. McKim |
| Chief Executive Officer | Chief Financial Officer |
| 727.399.5680 | 727.521.7085 |
FAQ
What was BayFirst Financial Corp.'s net income for Q4 2023?
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