BayFirst Financial Corp. Reports Third Quarter 2024 Results; Third Quarter Net Income Increased 31.3% Over Prior Quarter
BayFirst Financial Corp (NASDAQ: BAFN) reported Q3 2024 net income of $1.1 million, or $0.18 per diluted share, marking a 31.3% increase from Q2 2024's $0.9 million. The company's government guaranteed loan team originated $94.4 million in new loans, while loans held for investment increased by $34.1 million to $1.04 billion. Deposits grew by $69.8 million to $1.11 billion. Net interest margin decreased to 3.34%. The company maintained its quarterly dividend at $0.08 per common share, payable December 15, 2024.
BayFirst Financial Corp (NASDAQ: BAFN) ha riportato un utile netto per il terzo trimestre 2024 di $1.1 milioni, o $0.18 per azione diluita, segnando un aumento del 31.3% rispetto ai $0.9 milioni del secondo trimestre 2024. Il team di prestiti garantiti dal governo dell'azienda ha originato $94.4 milioni in nuovi prestiti, mentre i prestiti detenuti per investimento sono aumentati di $34.1 milioni, raggiungendo $1.04 miliardi. I depositi sono cresciuti di $69.8 milioni, arrivando a $1.11 miliardi. Il margine di interesse netto è diminuito al 3.34%. L'azienda ha mantenuto il suo dividendo trimestrale a $0.08 per azione comune, pagabile il 15 dicembre 2024.
BayFirst Financial Corp (NASDAQ: BAFN) reportó un ingreso neto en el tercer trimestre de 2024 de $1.1 millones, o $0.18 por acción diluida, marcando un aumento del 31.3% respecto a los $0.9 millones del segundo trimestre de 2024. El equipo de préstamos garantizados por el gobierno de la compañía originó $94.4 millones en nuevos préstamos, mientras que los préstamos mantenidos para inversión aumentaron en $34.1 millones, alcanzando $1.04 mil millones. Los depósitos crecieron en $69.8 millones, totalizando $1.11 mil millones. El margen de interés neto disminuyó al 3.34%. La empresa mantuvo su dividendo trimestral en $0.08 por acción común, pagadero el 15 de diciembre de 2024.
베이퍼스트 파이낸셜 주식회사 (NASDAQ: BAFN)는 2024년도 3분기 순이익이 $110만, 즉 희석 주당 $0.18이라고 보고하며, 2024년도 2분기 $90만에서 31.3% 증가했음을 나타냈습니다. 회사의 정부 보증 대출 팀은 $9440만의 신규 대출을 성사시켰으며, 투자용 대출은 $3410만 증가하여 총 $10억 4000만에 달했습니다. 예금은 $6980만 증가하여 $11억 1000만에 도달했습니다. 순이자율 마진은 3.34%로 감소했습니다. 회사는 분기 배당금을 보통주당 $0.08로 유지하며, 2024년 12월 15일에 지급될 예정입니다.
BayFirst Financial Corp (NASDAQ: BAFN) a annoncé un bénéfice net pour le troisième trimestre 2024 de 1,1 million de dollars, soit 0,18 dollar par action diluée, enregistrant une augmentation de 31,3% par rapport aux 0,9 million de dollars du deuxième trimestre 2024. L'équipe de prêts garantis par le gouvernement de l'entreprise a originné 94,4 millions de dollars en nouveaux prêts, tandis que les prêts détenus pour investissement ont augmenté de 34,1 millions de dollars pour atteindre 1,04 milliard de dollars. Les dépôts ont augmenté de 69,8 millions de dollars pour atteindre 1,11 milliard de dollars. La marge d'intérêt nette a diminué à 3,34%. L'entreprise a maintenu son dividende trimestriel à 0,08 dollar par action ordinaire, payable le 15 décembre 2024.
BayFirst Financial Corp (NASDAQ: BAFN) berichtete im dritten Quartal 2024 von einem Nettogewinn von 1,1 Millionen US-Dollar, oder 0,18 US-Dollar pro verwässerter Aktie, was einem 31,3% Anstieg gegenüber den 0,9 Millionen US-Dollar im zweiten Quartal 2024 entspricht. Das Team für von der Regierung garantierte Kredite des Unternehmens akquirierte 94,4 Millionen US-Dollar an neuen Krediten, während die für Investitionen gehaltenen Kredite um 34,1 Millionen US-Dollar auf 1,04 Milliarden US-Dollar stiegen. Die Einlagen wuchsen um 69,8 Millionen US-Dollar auf 1,11 Milliarden US-Dollar. Die Nettomarge aus Zinsen fiel auf 3,34%. Das Unternehmen hielt seine vierteljährliche Dividende bei 0,08 US-Dollar pro Stammaktie, zahlbar am 15. Dezember 2024.
- Net income increased 31.3% quarter-over-quarter to $1.1 million
- Loans held for investment grew 18.7% year-over-year to $1.04 billion
- Deposits increased 9.3% year-over-year to $1.11 billion
- Net interest income increased to $9.4 million from $8.4 million year-over-year
- Government guaranteed loan originations decreased from $155.9 million in Q3 2023 to $94.4 million
- Net interest margin declined 9 basis points to 3.34%
- Nonperforming assets to total assets increased to 1.38% from 0.88% year-over-year
- Capital ratios declined with Tier 1 leverage ratio falling to 8.41% from 9.16% year-over-year
Insights
BayFirst Financial Corp's Q3 2024 results show mixed performance with some positive developments and ongoing challenges. Net income increased 31.3% quarter-over-quarter to
- Loan portfolio grew
18.7% year-over-year to$1.04 billion - Deposits increased
6.7% quarterly to$1.11 billion - Net interest margin declined 9 basis points to
3.34% - Asset quality shows some stress with nonperforming assets at
1.38% of total assets
The bank's government-guaranteed lending business shows reduced volume but improved profitability through better credit quality. The implementation of a loan modification program for SBA borrowers demonstrates proactive risk management but also indicates underlying portfolio stress. Capital ratios remain adequate but have declined year-over-year, warranting monitoring.
The credit profile reveals concerning trends requiring attention. While the absolute level of the ACL ratio at
- Nonperforming assets increased to
1.38% from0.88% year-over-year - Annualized net charge-offs at
1.16% remain elevated - 400 SBA borrowers offered loan modifications indicates widespread repayment challenges
The bank's shift toward more conservative lending practices in its Bolt program is prudent but may impact growth. The decrease in loan originations suggests tighter underwriting standards, which should help maintain asset quality but could pressure earnings in the near term.
ST. PETERSBURG, Fla., Oct. 24, 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
“The highlight of the third quarter of 2024 was the
“Our community bank business model, which includes serving individuals, families and small businesses, continues to build franchise value in our great community bank in Tampa Bay,” Zernick continued. “We were honored to be named the best bank in Florida in 2024 by Forbes Magazine which is a testament to our incredible customers and employees.”
Third Quarter 2024 Performance Review
- The Company’s government guaranteed loan origination team originated
$94.4 million in new government guaranteed loans during the third quarter of 2024, a slight decrease from$98.7 million of loans produced in the previous quarter, and a decrease from$155.9 million of loans produced during the third quarter of 2023. Demand was down in the third quarter 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 while the Bank's Core SBA 7(a) loan program had$9 million of higher production in the third quarter compared to the second quarter and$5 million higher production compared to the third quarter of 2023. As we mentioned earlier this year, we have taken proactive steps to strengthen the credit characteristics of this business which has contributed to the decrease in origination of Bolt loans; however, the volume is still significant compared to the SBA 7(a) small loans originated by our peers. Since the launch in 2022, the Company has originated 5,231 Bolt loans totaling$676.6 million , of which 502 Bolt loans totaling$65.2 million were originated during the quarter. - Loans held for investment increased by
$34.1 million , or3.4% , during the third quarter of 2024 to$1.04 billion and increased$164.0 million , or18.7% , over the past year. During the quarter, the Company originated$166.7 million of loans and sold$84.0 million of government guaranteed loan balances. The majority of the loan growth was to individuals and businesses across the Tampa Bay and Sarasota regions. - Deposits increased
$69.8 million , or6.7% , during the third quarter of 2024 and increased$94.4 million , or9.3% , over the past year to$1.11 billion . - Book value and tangible book value at September 30, 2024 were
$20.86 per common share, an increase from$20.54 at June 30, 2024. - Net interest margin decreased by 9 basis points to
3.34% in the third quarter of 2024, from3.43% in the second quarter of 2024. The decrease was attributable to a one-time unamortized premium recognition related to a purchased USDA loan which prepaid during the quarter. Excluding this item, the net interest margin would have been down 1 basis point compared to the second quarter.
Results of Operations
Net Income
Net income was
In the first nine months of 2024, net income was
Net Interest Income and Net Interest Margin
Net interest income from continuing operations was
The increase in net interest income from continuing operations during the third quarter of 2024, as compared to the second quarter of 2024, was mainly due to an increase in loan interest income, including fees, of
The increase in net interest income from continuing operations during the third quarter of 2024, 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
Balance Sheet
Assets
Total assets increased
Loans
Loans held for investment increased
Deposits
Deposits increased
Asset Quality
The Company recorded a provision for credit losses in the third quarter of
The ratio of ACL to total loans held for investment at amortized cost was
Net charge-offs for the third quarter of 2024 were
Capital
The Bank’s Tier 1 leverage ratio was
Liquidity
The Bank's overall liquidity position remains strong and stable with liquidity in excess of internal minimums as stated by policy and monitored by management and the Board. The on-balance sheet liquidity ratio at September 30, 2024 was
Recent Events
Fourth Quarter Common Stock Dividend. On October 22, 2024, BayFirst’s Board of Directors declared a fourth quarter 2024 cash dividend of
Conference Call
BayFirst’s management team will host a conference call on Friday, October 25, 2024, at 9:00 a.m. ET to discuss its third 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 (800) 549-8228 to participate in the call using Conference ID 30458. A replay of the call will be available for one year 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 twelve full-service banking offices throughout the Tampa Bay-Sarasota region and offers a broad range of commercial and consumer banking services to businesses and individuals. It was named the best bank in Florida in 2024, according to Forbes and was the 5th largest SBA 7(a) lender by number of units originated and 11th largest by dollar volume nationwide through the SBA's fiscal year ended September 30, 2024. Additionally, it was the 3rd largest SBA 7(a) lender in dollar volume in the 5 county Tampa Bay market for the SBA's 2024 fiscal year. As of September 30, 2024, 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, weather events, 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) | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | ||||||||||||||
| Balance sheet data: | |||||||||||||||||||
| Average loans held for investment at amortized cost | $ | 948,535 | $ | 902,417 | $ | 855,040 | $ | 825,196 | $ | 789,167 | |||||||||
| Average total assets | 1,228,040 | 1,178,501 | 1,126,315 | 1,108,550 | 1,088,517 | ||||||||||||||
| Average common shareholders’ equity | 86,381 | 84,948 | 85,385 | 82,574 | 81,067 | ||||||||||||||
| Total loans held for investment | 1,042,445 | 1,008,314 | 934,868 | 915,726 | 878,447 | ||||||||||||||
| Total loans held for investment, excl gov’t gtd loan balances | 885,444 | 844,659 | 776,302 | 698,106 | 687,141 | ||||||||||||||
| Allowance for credit losses | 14,186 | 13,843 | 13,906 | 13,497 | 13,365 | ||||||||||||||
| Total assets | 1,245,099 | 1,217,869 | 1,144,194 | 1,117,766 | 1,133,979 | ||||||||||||||
| Common shareholders’ equity | 86,242 | 84,911 | 84,578 | 84,656 | 82,725 | ||||||||||||||
| Share data: | |||||||||||||||||||
| Basic earnings per common share | $ | 0.18 | $ | 0.12 | $ | 0.11 | $ | 0.32 | $ | 0.42 | |||||||||
| Diluted earnings per common share | 0.18 | 0.12 | 0.11 | 0.32 | 0.41 | ||||||||||||||
| Dividends per common share | 0.08 | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||||||
| Book value per common share | 20.86 | 20.54 | 20.45 | 20.60 | 20.12 | ||||||||||||||
| Tangible book value per common share (1) | 20.86 | 20.54 | 20.45 | 20.60 | 20.12 | ||||||||||||||
| Performance and capital ratios: | |||||||||||||||||||
| Return on average assets(2) | 0.37 | % | 0.29 | % | 0.29 | % | 0.60 | % | 0.71 | % | |||||||||
| Return on average common equity(2) | 3.48 | % | 2.26 | % | 2.06 | % | 6.37 | % | 8.46 | % | |||||||||
| Net interest margin(2) | 3.34 | % | 3.43 | % | 3.42 | % | 3.48 | % | 3.36 | % | |||||||||
| Dividend payout ratio | 43.98 | % | 68.91 | % | 75.27 | % | 25.03 | % | 19.15 | % | |||||||||
| Asset quality ratios: | |||||||||||||||||||
| Net charge-offs | $ | 2,757 | $ | 3,261 | $ | 3,652 | $ | 2,612 | $ | 2,234 | |||||||||
| Net charge-offs/avg loans held for investment at amortized cost(2) | 1.16 | % | 1.45 | % | 1.71 | % | 1.27 | % | 1.13 | % | |||||||||
| Nonperforming loans(3) | $ | 15,489 | $ | 12,312 | $ | 9,877 | $ | 9,688 | $ | 9,518 | |||||||||
| Nonperforming loans (excluding gov't gtd balance)(3) | $ | 10,992 | $ | 8,054 | $ | 7,568 | $ | 8,264 | $ | 7,997 | |||||||||
| Nonperforming loans/total loans held for investment(3) | 1.62 | % | 1.34 | % | 1.15 | % | 1.18 | % | 1.20 | % | |||||||||
| Nonperforming loans (excl gov’t gtd balance)/total loans held for investment(3) | 1.15 | % | 0.87 | % | 0.88 | % | 1.00 | % | 1.01 | % | |||||||||
| ACL/Total loans held for investment at amortized cost | 1.48 | % | 1.50 | % | 1.62 | % | 1.64 | % | 1.68 | % | |||||||||
| ACL/Total loans held for investment at amortized cost, excl government guaranteed loans | 1.70 | % | 1.73 | % | 1.88 | % | 2.03 | % | 2.03 | % | |||||||||
| Other Data: | |||||||||||||||||||
| Full-time equivalent employees | 295 | 302 | 313 | 305 | 307 | ||||||||||||||
| Banking center offices | 12 | 12 | 12 | 11 | 10 | ||||||||||||||
| (1) See section entitled "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below for a reconciliation to most comparable GAAP equivalent. | |||||||||||||||||||
| (2) Annualized | |||||||||||||||||||
| (3) Excludes loans measured at fair value | |||||||||||||||||||
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) | September 30, 2024 | June 30, 2024 | March 31, 2024 | December 31, 2023 | September 30, 2023 | ||||||||||||||
| Total shareholders’ equity | $ | 102,293 | $ | 100,962 | $ | 100,629 | $ | 100,707 | $ | 94,165 | |||||||||
| Less: Preferred stock liquidation preference | (16,051 | ) | (16,051 | ) | (16,051 | ) | (16,051 | ) | (11,440 | ) | |||||||||
| Total equity available to common shareholders | 86,242 | 84,911 | 84,578 | 84,656 | 82,725 | ||||||||||||||
| Less: Goodwill | — | — | — | — | — | ||||||||||||||
| Tangible common shareholders' equity | $ | 86,242 | $ | 84,911 | $ | 84,578 | $ | 84,656 | $ | 82,725 | |||||||||
| Common shares outstanding | 4,134,059 | 4,134,219 | 4,134,914 | 4,110,470 | 4,110,650 | ||||||||||||||
| Tangible book value per common share | $ | 20.86 | $ | 20.54 | $ | 20.45 | $ | 20.60 | $ | 20.12 | |||||||||
| BAYFIRST FINANCIAL CORP. | |||||||||
| CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||
| (Dollars in thousands) | 9/30/2024 | 6/30/2024 | 9/30/2023 | ||||||
| Assets | |||||||||
| Cash and due from banks | $ | 4,708 | $ | 4,226 | $ | 4,501 | |||
| Interest-bearing deposits in banks | 59,675 | 56,546 | 108,052 | ||||||
| Cash and cash equivalents | 64,383 | 60,772 | 112,553 | ||||||
| Time deposits in banks | 2,264 | 2,261 | 4,631 | ||||||
| Investment securities available for sale, at fair value (amortized cost | 37,984 | 38,685 | 39,683 | ||||||
| Investment securities held to maturity, at amortized cost, net of allowance for credit losses of | 2,487 | 2,486 | 2,482 | ||||||
| Nonmarketable equity securities | 4,997 | 7,132 | 4,250 | ||||||
| Government guaranteed loans held for sale | 595 | — | 1,855 | ||||||
| Government guaranteed loans held for investment, at fair value | 86,441 | 86,142 | 84,178 | ||||||
| Loans held for investment, at amortized cost | 956,004 | 922,172 | 794,269 | ||||||
| Allowance for credit losses on loans | (14,186 | ) | (13,843 | ) | (13,365 | ) | |||
| Net Loans held for investment, at amortized cost | 941,818 | 908,329 | 780,904 | ||||||
| Accrued interest receivable | 8,537 | 8,000 | 6,907 | ||||||
| Premises and equipment, net | 38,736 | 39,088 | 37,992 | ||||||
| Loan servicing rights | 15,966 | 15,770 | 14,216 | ||||||
| Deferred income tax assets | — | — | 414 | ||||||
| Right-of-use operating lease assets | 2,018 | 2,305 | 2,594 | ||||||
| Bank owned life insurance | 26,330 | 26,150 | 25,630 | ||||||
| Other assets | 12,543 | 19,080 | 15,292 | ||||||
| Assets from discontinued operations | — | 36 | 398 | ||||||
| Total assets | $ | 1,245,099 | $ | 1,217,869 | $ | 1,133,979 | |||
| Liabilities: | |||||||||
| Noninterest-bearing deposits | $ | 95,995 | $ | 94,040 | $ | 98,008 | |||
| Interest-bearing transaction accounts | 247,923 | 236,447 | 267,404 | ||||||
| Savings and money market deposits | 455,297 | 420,271 | 350,110 | ||||||
| Time deposits | 312,981 | 291,630 | 302,274 | ||||||
| Total deposits | 1,112,196 | 1,042,388 | 1,017,796 | ||||||
| FHLB borrowings | 10,000 | 55,000 | — | ||||||
| Subordinated debentures | 5,954 | 5,952 | 5,947 | ||||||
| Notes payable | 2,048 | 2,162 | 2,503 | ||||||
| Accrued interest payable | 1,114 | 1,172 | 632 | ||||||
| Operating lease liabilities | 2,271 | 2,497 | 2,812 | ||||||
| Deferred income tax liabilities | 1,488 | 1,000 | — | ||||||
| Accrued expenses and other liabilities | 7,735 | 6,565 | 9,409 | ||||||
| Liabilities from discontinued operations | — | 171 | 715 | ||||||
| Total liabilities | 1,142,806 | 1,116,907 | 1,039,814 | ||||||
| Shareholders’ equity: | |||||||||
| Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at September 30, 2024, June 30, 2024, and September 30, 2023; 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 September 30, 2024, June 30, 2024, and September 30, 2023; aggregate liquidation preference of | 3,123 | 3,123 | 3,123 | ||||||
| Preferred stock, Series C; no par value, 10,000 shares authorized, 6,446 shares issued and outstanding at September 30, 2024 and June 30, 2024, and no shares issued and outstanding as of September 30, 2023; aggregate liquidation preference of | 6,446 | 6,446 | 1,835 | ||||||
| Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,134,059, 4,134,219, and 4,110,650 shares issued and outstanding at September 30, 2024, June 30, 2024, and September 30, 2023, respectively | 54,780 | 54,773 | 54,500 | ||||||
| Accumulated other comprehensive loss, net | (2,312 | ) | (3,113 | ) | (3,621 | ) | |||
| Unearned compensation | (978 | ) | (1,081 | ) | (1,242 | ) | |||
| Retained earnings | 35,073 | 34,653 | 33,409 | ||||||
| Total shareholders’ equity | 102,293 | 100,962 | 94,165 | ||||||
| Total liabilities and shareholders’ equity | $ | 1,245,099 | $ | 1,217,869 | $ | 1,133,979 | |||
| BAYFIRST FINANCIAL CORP. | |||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||||||
| For the Quarter Ended | Year-to-Date | ||||||||||||||||||
| (Dollars in thousands, except per share data) | 9/30/2024 | 6/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | ||||||||||||||
| Interest income: | |||||||||||||||||||
| Loans, including fees | $ | 20,442 | $ | 19,414 | $ | 16,032 | $ | 58,084 | $ | 45,475 | |||||||||
| Interest-bearing deposits in banks and other | 1,000 | 1,013 | 1,588 | 2,972 | 4,188 | ||||||||||||||
| Total interest income | 21,442 | 20,427 | 17,620 | 61,056 | 49,663 | ||||||||||||||
| Interest expense: | |||||||||||||||||||
| Deposits | 11,609 | 10,448 | 9,055 | 32,272 | 21,076 | ||||||||||||||
| Other | 384 | 797 | 172 | 1,411 | 1,033 | ||||||||||||||
| Total interest expense | 11,993 | 11,245 | 9,227 | 33,683 | 22,109 | ||||||||||||||
| Net interest income | 9,449 | 9,182 | 8,393 | 27,373 | 27,554 | ||||||||||||||
| Provision for credit losses | 3,122 | 3,000 | 3,001 | 10,180 | 7,708 | ||||||||||||||
| Net interest income after provision for credit losses | 6,327 | 6,182 | 5,392 | 17,193 | 19,846 | ||||||||||||||
| Noninterest income: | |||||||||||||||||||
| Loan servicing income, net | 918 | 805 | 760 | 2,518 | 2,149 | ||||||||||||||
| Gain on sale of government guaranteed loans, net | 6,143 | 5,595 | 7,139 | 19,827 | 17,576 | ||||||||||||||
| Service charges and fees | 447 | 452 | 408 | 1,343 | 1,166 | ||||||||||||||
| Government guaranteed loans fair value gain, net | 3,416 | 3,202 | 4,543 | 9,923 | 11,021 | ||||||||||||||
| Government guaranteed loan packaging fees | 903 | 1,022 | 1,158 | 3,332 | 2,076 | ||||||||||||||
| Other noninterest income | 445 | 577 | 671 | 1,250 | 1,076 | ||||||||||||||
| Total noninterest income | 12,272 | 11,653 | 14,679 | 38,193 | 35,064 | ||||||||||||||
| Noninterest Expense: | |||||||||||||||||||
| Salaries and benefits | 7,878 | 7,829 | 7,912 | 23,712 | 23,527 | ||||||||||||||
| Bonus, commissions, and incentives | 1,141 | 659 | 1,406 | 3,371 | 3,515 | ||||||||||||||
| Occupancy and equipment | 1,248 | 1,273 | 1,262 | 3,631 | 3,608 | ||||||||||||||
| Data processing | 1,789 | 1,647 | 1,526 | 4,996 | 4,189 | ||||||||||||||
| Marketing and business development | 532 | 540 | 929 | 1,660 | 2,696 | ||||||||||||||
| Professional services | 853 | 877 | 816 | 3,079 | 2,587 | ||||||||||||||
| Loan origination and collection | 1,956 | 1,958 | 1,981 | 5,633 | 4,697 | ||||||||||||||
| Employee recruiting and development | 595 | 549 | 543 | 1,741 | 1,667 | ||||||||||||||
| Regulatory assessments | 309 | 279 | 284 | 870 | 615 | ||||||||||||||
| Other noninterest expense | 763 | 999 | 768 | 2,754 | 2,140 | ||||||||||||||
| Total noninterest expense | 17,064 | 16,610 | 17,427 | 51,447 | 49,241 | ||||||||||||||
| Income before taxes from continuing operations | 1,535 | 1,225 | 2,644 | 3,939 | 5,669 | ||||||||||||||
| Income tax expense from continuing operations | 398 | 349 | 674 | 1,043 | 1,415 | ||||||||||||||
| Net income from continuing operations | 1,137 | 876 | 1,970 | 2,896 | 4,254 | ||||||||||||||
| Loss from discontinued operations before income taxes | — | (14 | ) | (62 | ) | (92 | ) | (275 | ) | ||||||||||
| Income tax benefit from discontinued operations | — | (4 | ) | (15 | ) | (23 | ) | (68 | ) | ||||||||||
| Net loss from discontinued operations | — | (10 | ) | (47 | ) | (69 | ) | (207 | ) | ||||||||||
| Net income | 1,137 | 866 | 1,923 | 2,827 | 4,047 | ||||||||||||||
| Preferred dividends | 385 | 386 | 208 | 1,156 | 624 | ||||||||||||||
| Net income available to common shareholders | $ | 752 | $ | 480 | $ | 1,715 | $ | 1,671 | $ | 3,423 | |||||||||
| Basic earnings (loss) per common share: | |||||||||||||||||||
| Continuing operations | $ | 0.18 | $ | 0.12 | $ | 0.43 | $ | 0.42 | $ | 0.89 | |||||||||
| Discontinued operations | — | — | (0.01 | ) | (0.02 | ) | (0.05 | ) | |||||||||||
| Basic earnings per common share | $ | 0.18 | $ | 0.12 | $ | 0.42 | $ | 0.40 | $ | 0.84 | |||||||||
| Diluted earnings (loss) per common share: | |||||||||||||||||||
| Continuing operations | $ | 0.18 | $ | 0.12 | $ | 0.42 | $ | 0.42 | $ | 0.88 | |||||||||
| Discontinued operations | — | — | (0.01 | ) | (0.02 | ) | (0.05 | ) | |||||||||||
| Diluted earnings per common share | $ | 0.18 | $ | 0.12 | $ | 0.41 | $ | 0.40 | $ | 0.83 | |||||||||
Loan Composition
| (Dollars in thousands) | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | ||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| Real estate: | |||||||||||||||||||
| Residential | $ | 321,740 | $ | 304,234 | $ | 285,214 | $ | 264,126 | $ | 248,973 | |||||||||
| Commercial | 292,026 | 288,185 | 273,227 | 293,595 | 280,620 | ||||||||||||||
| Construction and land | 33,784 | 35,759 | 36,764 | 26,272 | 25,339 | ||||||||||||||
| Commercial and industrial | 200,212 | 192,140 | 182,264 | 177,566 | 174,238 | ||||||||||||||
| Commercial and industrial - PPP | 1,656 | 2,324 | 2,965 | 3,202 | 15,364 | ||||||||||||||
| Consumer and other | 92,546 | 85,789 | 63,854 | 47,287 | 39,024 | ||||||||||||||
| Loans held for investment, at amortized cost, gross | 941,964 | 908,431 | 844,288 | 812,048 | 783,558 | ||||||||||||||
| Deferred loan costs, net | 18,060 | 17,299 | 16,233 | 14,707 | 12,928 | ||||||||||||||
| Discount on government guaranteed loans sold | (7,880 | ) | (7,731 | ) | (7,674 | ) | (7,040 | ) | (6,623 | ) | |||||||||
| Premium on loans purchased, net | 3,860 | 4,173 | 4,252 | 4,503 | 4,406 | ||||||||||||||
| Loans held for investment, at amortized cost, net | 956,004 | 922,172 | 857,099 | 824,218 | 794,269 | ||||||||||||||
| Government guaranteed loans held for investment, at fair value | 86,441 | 86,142 | 77,769 | 91,508 | 84,178 | ||||||||||||||
| Total loans held for investment, net | $ | 1,042,445 | $ | 1,008,314 | $ | 934,868 | $ | 915,726 | $ | 878,447 | |||||||||
Nonperforming Assets (Unaudited)
| (Dollars in thousands) | 9/30/2024 | 6/30/2024 | 3/31/2024 | 12/31/2023 | 9/30/2023 | ||||||||||||||
| Nonperforming loans (government guaranteed balances), at amortized cost, gross | $ | 4,497 | $ | 4,258 | $ | 2,309 | $ | 1,424 | $ | 1,521 | |||||||||
| Nonperforming loans (unguaranteed balances), at amortized cost, gross | 10,992 | 8,054 | 7,568 | 8,264 | 7,997 | ||||||||||||||
| Total nonperforming loans, at amortized cost, gross | 15,489 | 12,312 | 9,877 | 9,688 | 9,518 | ||||||||||||||
| Nonperforming loans (government guaranteed balances), at fair value | 24 | 341 | 94 | — | 96 | ||||||||||||||
| Nonperforming loans (unguaranteed balances), at fair value | 1,535 | 1,284 | 729 | 648 | 363 | ||||||||||||||
| Total nonperforming loans, at fair value | 1,559 | 1,625 | 823 | 648 | 459 | ||||||||||||||
| OREO | — | 1,633 | 404 | — | — | ||||||||||||||
| Repossessed assets | 94 | — | — | — | — | ||||||||||||||
| Total nonperforming assets, gross | $ | 17,142 | $ | 15,570 | $ | 11,104 | $ | 10,336 | $ | 9,977 | |||||||||
| Nonperforming loans as a percentage of total loans held for investment(1) | 1.62 | % | 1.34 | % | 1.15 | % | 1.18 | % | 1.20 | % | |||||||||
| Nonperforming loans (excluding government guaranteed balances) to total loans held for investment(1) | 1.15 | % | 0.87 | % | 0.88 | % | 1.00 | % | 1.01 | % | |||||||||
| Nonperforming assets as a percentage of total assets | 1.38 | % | 1.28 | % | 0.97 | % | 0.92 | % | 0.88 | % | |||||||||
| Nonperforming assets (excluding government guaranteed balances) to total assets | 0.88 | % | 0.82 | % | 0.70 | % | 0.74 | % | 0.71 | % | |||||||||
| ACL to nonperforming loans(1) | 91.59 | % | 112.44 | % | 140.79 | % | 139.32 | % | 128.60 | % | |||||||||
| ACL to nonperforming loans (excluding government guaranteed balances)(1) | 129.06 | % | 171.88 | % | 183.75 | % | 163.32 | % | 152.29 | % | |||||||||
| (1) Excludes loans measured at fair value | |||||||||||||||||||
| Contacts: | |
| Thomas G. Zernick | Scott J. McKim |
| Chief Executive Officer | Chief Financial Officer |
| 727.399.5680 | 727.521.7085 |
FAQ
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