BayFirst Financial Corp. Reports Second Quarter 2022 Results; Highlighted by Strong SBA 7(a) and Conventional Loan Production, Improved Operating Efficiencies, and Net Interest Margin Expansion
BayFirst Financial Corp. (NASDAQ: BAFN) reported Q2 2022 earnings of $328K, up from $13K in Q1 2022 but down from $13M in Q2 2021. Loan production surged 200% year-to-date. Key measures include a $2.5M reduction in salaries, $2.9M increase in SBA loan fair value gains, and a $1M rise in net interest income. However, restructuring charges of $630K, a $3M decline in residential loan fees, and a $2.7M increase in loan loss provisions noted. The company's net interest margin expanded to 3.73%. BayFirst also launched the BOLT product for quick SBA loans, further enhancing loan origination capabilities.
- Q2 2022 earnings increased to $328K from $13K in Q1 2022.
- Robust loan production up 200% year-to-date.
- SBA loan production reached $90M, one of the highest in the company's history.
- Net interest margin expanded by 48 basis points to 3.73%.
- Net income decreased from $13M in Q2 2021.
- Residential loan fee income fell by $3M.
- Loan loss provisions increased by $2.7M.
ST. PETERSBURG, Fla., July 27, 2022 (GLOBE NEWSWIRE) -- BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the “Company”), parent company of BayFirst National Bank (f/k/a First Home Bank) (the “Bank”) reported earnings for the second quarter of 2022 of
The increase in earnings during the second quarter of 2022, compared to the first quarter of 2022, included a
Compared to the year ago quarter, the decrease in net income for the second quarter of 2022 included the
“The second quarter represented a dramatic turnaround quarter for the Company,” stated Anthony N. Leo, Chief Executive Officer. “We produced excellent core loan growth, improved operating expenses, and expanded our net interest margin by 48 basis points compared to the prior quarter. The investments we made to expand our nationwide SBA production team earlier in the year are paying off, with SBA 7(a) loan production of
“Our organization is focused on building our community banking franchise in Tampa Bay, supported by national business lines to provide the revenue engine to build out and support our community bank,” Leo continued. “During the quarter and simultaneous with converting to a national banking charter, we rebranded our community bank to the name BayFirst National Bank, which reinforces our commitment to our Tampa Bay communities. We are also continuing our expansion efforts, with plans to open two additional branches in our current markets later this year. While we will continue to support small business owners and homebuyers across the country through our SBA and residential mortgage divisions, we remain a St. Petersburg-based, independent bank focused on making a difference in our own community and in the lives of those we serve.”
Recent Significant Initiatives
- Late in the second quarter, the Company launched BOLT, an SBA 7(a) loan product designed to expeditiously provide working capital loans of
$150 thousand or less to businesses throughout the country. In its first month since inception, the Company originated 57 BOLT loans totaling$7.5 million , with an additional 296 loans, representing$39 million , closed or in process through July 21, 2022. Over the balance of the third quarter, the Company plans to deploy new automation to the BOLT loan program through its proprietary loan origination system, PowerLOS and open API integration with marketplace lending partners to increase volume and speed of delivery while limiting additional staffing. - During the second quarter, the Company completed a restructuring of its Residential Mortgage Division, and discontinued its primary consumer direct residential mortgage business line. The restructuring was undertaken in response to reduced volume due to a lack of refinance demand in the current rising rate environment which directly impacted the consumer direct business line. As a result of this restructuring the Bank will focus resources on its traditional retail mortgage business supported by loan production offices across the nation.
- A large residential loan production team located in Las Vegas was onboarded after the end of the second quarter during July and, as previously reported, two large residential loan production teams were added in April, one in Branfield, CT and the other in Miami, FL. The addition of these offices is expected to increase residential loan production volume once the teams are fully integrated.
- On May 16th, the Bank converted its charter from a Florida state chartered banking institution to that of a national association and simultaneously changed its name to BayFirst National Bank.
Second Quarter 2022 Performance Review
- The Company’s SBA loan origination platform, CreditBench, had one of the best quarters of SBA 7(a) loan production in the Company's history. CreditBench originated
$90.0 million in new SBA loans during the second quarter of 2022, a90.2% increase compared to$47.3 million originated in the first quarter of 2022, and an89.9% increase over the$47.4 million of loans produced during the second quarter of 2021. Additionally, the pipeline continues to remain strong at$179.4 million at June 30, 2022. - Loans held for investment, excluding PPP loans, increased by
$93.8 million or18.1% to$611.2 million during the second quarter of 2022 and$145.7 million , or31.3% over the past year. Production during the quarter was partially offset by$46.8 million in sales of the guaranteed balances of SBA loans. - The Residential Mortgage Division originated
$305.6 million in loans during the second quarter of 2022, a reduction of8.9% compared to$335.6 million originated during the first quarter of 2022, and a48.2% reduction compared to$522.1 million of loans produced during the second quarter of 2021. - Deposits decreased by
$4.7 million , or0.6% during the second quarter of 2022 and increased by$133.1 million , or21.0% over the past year to$765.4 million at June 30, 2022. During the second quarter of 2022, there were increases in transaction accounts and time deposit balances partially offset by decreases in money market and savings account balances.Although the balances decreased slightly as customers utilized more of their existing cash, the number of transaction, savings, and money market accounts increased by5.5% over the prior quarter - Tangible book value at June 30, 2022 was
$20.95 per common share, down from$21.22 at March 31, 2022, primarily due to a reduction in equity as accumulated other comprehensive loss increased in the rising rate environment. Over the course of the past year, tangible book value decreased$0.18 per common share, or0.9% , from$21.14 at June 30, 2021. - Net interest margin expanded 48 bps quarter-over-quarter to
3.73% in the second quarter of 2022, from3.25% in the first quarter of 2022.
Results of Operations
Net Income
Net income was
In the first six months of 2022, net income was
Net Interest Income and Net Interest Margin
Net interest income was
Net interest income was
Net interest margin improved to
Noninterest Income
Noninterest income was
Noninterest income was
Noninterest Expense
Noninterest expense was
Noninterest expense was
Balance Sheet
Assets
Total assets increased by
Loans
Loans held for investment, excluding PPP loans, increased by
Deposits
Deposits decreased by
Asset Quality
Asset quality remained stable in the second quarter of 2022. As the financial impact of the COVID-19 pandemic became more predictable throughout 2021, the Company began adjusting downward its allowance for loan losses from the historic high levels reached in 2020 at the onset of the pandemic. The Company recorded a provision for loan losses in the second quarter of
The ratio of the allowance for loan losses to total loans held for investment at amortized cost, excluding government guaranteed loans, was
Over the past five years, the Company’s loan losses have been incurred primarily in its SBA unguaranteed loan portfolio, particularly loans originated under the SBA 7(a) Small Loan Program. The Small Loan Program represents loans of
Net charge-offs for the second quarter of 2022 were
Capital
The Bank’s Tier 1 leverage ratio was
Recent Events
Conversion to a National Bank: On May 16, 2022, BayFirst Financial Corp.’s wholly-owned subsidiary completed its conversion to a national bank. As part of this process, the Bank, formerly known as First Home Bank, changed its name to BayFirst National Bank.
About BayFirst Financial Corp.
BayFirst Financial Corp. is a registered bank holding company which commenced operations on September 1, 2000. Its primary source of income is from its wholly owned subsidiary, BayFirst National Bank (f/k/a First Home Bank), which commenced business operations on February 12, 1999. BayFirst National Bank is a national banking association. The Bank currently operates seven full-service office locations, 21 mortgage loan production offices, and was the top 15 by dollar volume and by number of units originated nationwide through the third quarter ended June 30, 2022, of SBA's 2022 fiscal year.
BayFirst Financial Corp., through the Bank, offers a broad range of commercial and consumer banking services including various types of deposit accounts and loans for businesses and individuals. As of June 30, 2022, 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 the COVID-19 pandemic, 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) | 6/30/2022 | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | ||||||||||||||
| Balance sheet data: | |||||||||||||||||||
| Average loans held for investment, excluding PPP loans | $ | 562,120 | $ | 520,559 | $ | 518,697 | $ | 467,283 | $ | 445,893 | |||||||||
| Average total assets | 879,868 | 872,311 | 923,485 | 1,086,377 | 1,541,230 | ||||||||||||||
| Average common shareholders’ equity | 83,235 | 83,990 | 83,056 | 81,989 | 68,525 | ||||||||||||||
| Total loans held for investment | 642,407 | 561,797 | 583,948 | 656,294 | 895,194 | ||||||||||||||
| Total loans held for investment, excluding PPP loans | 611,197 | 517,434 | 504,525 | 500,647 | 465,470 | ||||||||||||||
| Total loans held for investment, excl gov’t gtd loan balances | 459,294 | 374,353 | 332,977 | 316,528 | 314,438 | ||||||||||||||
| Allowance for loan losses | 9,564 | 10,170 | 13,452 | 16,616 | 20,797 | ||||||||||||||
| Total assets | 921,852 | 888,541 | 917,095 | 943,743 | 1,198,229 | ||||||||||||||
| Common shareholders’ equity | 84,300 | 85,274 | 86,685 | 83,593 | 81,838 | ||||||||||||||
| Share data: | |||||||||||||||||||
| Basic earnings per common share | $ | 0.03 | $ | (0.05 | ) | $ | 0.66 | $ | 0.27 | $ | 3.34 | ||||||||
| Diluted earnings per common share | 0.03 | (0.05 | ) | 0.61 | 0.26 | 2.98 | |||||||||||||
| Dividends per common share | 0.080 | 0.080 | 0.070 | 0.070 | 0.070 | ||||||||||||||
| Book value per common share | 20.98 | 21.25 | 21.77 | 21.32 | 21.16 | ||||||||||||||
| Tangible book value per common share(1) | 20.95 | 21.22 | 21.75 | 21.30 | 21.14 | ||||||||||||||
| Performance and capital ratios: | |||||||||||||||||||
| Return on average assets | 0.15 | % | 0.01 | % | 1.22 | % | 0.47 | % | 3.38 | % | |||||||||
| Return on average common equity | 0.58 | % | (0.93) | % | 12.54 | % | 5.12 | % | 74.61 | % | |||||||||
| Net interest margin | 3.73 | % | 3.25 | % | 3.07 | % | 3.04 | % | 3.46 | % | |||||||||
| Dividend payout ratio | 267.63 | % | (164.25) | % | 10.65 | % | 26.09 | % | 2.09 | % | |||||||||
| Asset quality ratios: | |||||||||||||||||||
| Net charge-offs | $ | 856 | $ | 882 | $ | 664 | $ | 1,181 | $ | 1,220 | |||||||||
| Net charge-offs/avg loans held for investment excl PPP | 0.61 | % | 0.68 | % | 0.51 | % | 1.01 | % | 1.09 | % | |||||||||
| Nonperforming loans | $ | 10,437 | $ | 8,834 | $ | 11,909 | $ | 10,495 | $ | 9,884 | |||||||||
| Nonperforming loans (excluding gov't gtd balance) | $ | 4,245 | $ | 2,660 | $ | 3,967 | $ | 3,756 | $ | 3,577 | |||||||||
| Nonperforming loans/total loans held for investment | 1.62 | % | 1.57 | % | 2.04 | % | 1.60 | % | 1.10 | % | |||||||||
| Nonperforming loans (excl gov’t gtd balance)/total loans held for investment | 0.66 | % | 0.47 | % | 0.68 | % | 0.57 | % | 0.40 | % | |||||||||
| ALLL/Total loans held for investment at amortized cost | 1.62 | % | 1.84 | % | 2.34 | % | 2.57 | % | 2.35 | % | |||||||||
| ALLL/Total loans held for investment at amortized cost, excl PPP loans | 1.71 | % | 2.00 | % | 2.72 | % | 3.39 | % | 4.57 | % | |||||||||
| Other Data: | |||||||||||||||||||
| Full-time equivalent employees | 485 | 575 | 637 | 651 | 671 | ||||||||||||||
| Banking center offices | 7 | 7 | 7 | 6 | 6 | ||||||||||||||
| Loan production offices | 19 | 20 | 17 | 22 | 26 | ||||||||||||||
| (1)See section entitled "GAAP Reconciliation and Management Explanation of Non-GAAP Financial Measures" below for a reconciliation to most comparable GAAP equivalent. | |||||||||||||||||||
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 | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| (Dollars in thousands, except per share data) | June 30, 2022 | March 31, 2022 | December 31, 2021 | September 30, 2021 | June 30, 2021 | |||||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
| Total shareholders’ equity | $ | 93,905 | $ | 94,879 | $ | 96,290 | $ | 94,298 | $ | 92,813 | ||||||||||
| Less: Preferred stock liquidation preference | (9,605 | ) | (9,605 | ) | (9,605 | ) | (10,705 | ) | (10,975 | ) | ||||||||||
| Total equity available to common shareholders | 84,300 | 85,274 | 86,685 | 83,593 | 81,838 | |||||||||||||||
| Less: Goodwill | (100 | ) | (100 | ) | (100 | ) | (100 | ) | (100 | ) | ||||||||||
| Tangible common shareholders' equity | $ | 84,200 | $ | 85,174 | $ | 86,585 | $ | 83,493 | $ | 81,738 | ||||||||||
| Common shares outstanding | 4,019,023 | 4,013,173 | 3,981,117 | 3,919,977 | 3,867,414 | |||||||||||||||
| Tangible book value per common share | $ | 20.95 | $ | 21.22 | $ | 21.75 | $ | 21.30 | $ | 21.14 | ||||||||||
BAYFIRST FINANCIAL CORP.
CONSOLIDATED BALANCE SHEETS
| (Dollars in thousands) | 6/30/2022 | 3/31/2022 | 6/30/2021 | ||||||
| Assets | Unaudited | Unaudited | Unaudited | ||||||
| Cash and due from banks | $ | 2,944 | $ | 3,141 | $ | 2,896 | |||
| Interest-bearing deposits in banks | 64,992 | 118,960 | 102,441 | ||||||
| Cash and cash equivalents | 67,936 | 122,101 | 105,337 | ||||||
| Time deposits in banks | 4,881 | 3,881 | 2,381 | ||||||
| Investment securities available for sale | 45,283 | 41,656 | 22,674 | ||||||
| Investment securities held to maturity | 5,016 | 2 | 6 | ||||||
| Restricted equity securities, at cost | 3,274 | 2,520 | 2,820 | ||||||
| Residential loans held for sale | 74,708 | 75,022 | 126,479 | ||||||
| SBA loans held for sale | — | 1,445 | — | ||||||
| SBA loans held for investment, at fair value | 52,209 | 8,769 | 10,070 | ||||||
| Loans held for investment, at amortized cost net of allowance for loan losses of | 580,634 | 542,858 | 864,327 | ||||||
| Accrued interest receivable | 3,190 | 3,150 | 7,039 | ||||||
| Premises and equipment, net | 31,368 | 31,037 | 21,076 | ||||||
| Loan servicing rights | 7,952 | 7,601 | 6,614 | ||||||
| Deferred income tax assets | 1,145 | 490 | 2,594 | ||||||
| Right-of-use operating lease assets | 3,547 | 4,166 | 3,722 | ||||||
| Bank owned life insurance | 24,850 | 24,698 | 12,351 | ||||||
| Other assets | 15,859 | 19,145 | 10,739 | ||||||
| Total assets | $ | 921,852 | $ | 888,541 | $ | 1,198,229 | |||
| Liabilities: | |||||||||
| Noninterest-bearing deposits | $ | 103,613 | $ | 92,680 | $ | 81,150 | |||
| Interest-bearing transaction accounts | 195,386 | 180,815 | 143,046 | ||||||
| Savings and money market deposits | 432,369 | 464,847 | 355,045 | ||||||
| Time deposits | 34,038 | 31,787 | 53,081 | ||||||
| Total deposits | 765,406 | 770,129 | 632,322 | ||||||
| FHLB and FRB borrowings | 40,000 | — | — | ||||||
| Subordinated debentures | 5,989 | 5,987 | 5,982 | ||||||
| Notes payable | 3,072 | 3,186 | 3,527 | ||||||
| PPP Liquidity Facility | — | — | 443,906 | ||||||
| Accrued interest payable | 31 | 86 | 928 | ||||||
| Operating lease liabilities | 4,014 | 4,377 | 3,923 | ||||||
| Accrued expenses and other liabilities | 9,435 | 9,897 | 14,828 | ||||||
| Total liabilities | 827,947 | 793,662 | 1,105,416 | ||||||
| Shareholders’ equity: | |||||||||
| Preferred stock, Series A; no par value, 10,000 shares authorized, 6,395 shares issued and outstanding at June 30, 2022, March 31, 2022, and June 30, 2021, respectively; aggregate liquidation preference of | 6,161 | 6,161 | 6,161 | ||||||
| Preferred stock, Series B; no par value, 20,000 shares authorized, 3,210, 3,210, and 4,580 shares issued and outstanding at June 30, 2022, March 31, 2022, and June 30, 2021; aggregate liquidation preference of | 3,123 | 3,123 | 4,456 | ||||||
| Common stock and additional paid-in capital; no par value, 15,000,000 shares authorized, 4,019,023, 4,013,173, and 3,867,414 shares issued and outstanding at June 30, 2022, March 31, 2022, and June 30, 2021, respectively | 52,432 | 52,252 | 49,501 | ||||||
| Accumulated other comprehensive (loss), net | (2,574 | ) | (1,458 | ) | (122 | ) | |||
| Unearned compensation | (467 | ) | (630 | ) | (29 | ) | |||
| Retained earnings | 35,230 | 35,431 | 32,846 | ||||||
| Total shareholders’ equity | 93,905 | 94,879 | 92,813 | ||||||
| Total liabilities and shareholders’ equity | $ | 921,852 | $ | 888,541 | $ | 1,198,229 | |||
BAYFIRST FINANCIAL CORP.
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
| For the Quarter Ended | Year-to-Date | ||||||||||||||||
| (Dollars in thousands, except per share data) | 6/30/2022 | 3/31/2022 | 6/30/2021 | 6/30/2022 | 6/30/2021 | ||||||||||||
| Interest income: | |||||||||||||||||
| Loans, other than PPP | $ | 7,924 | $ | 7,115 | $ | 5,282 | $ | 15,039 | $ | 11,881 | |||||||
| PPP loan interest income | 87 | 140 | 3,330 | 227 | 5,529 | ||||||||||||
| PPP origination fee income | 200 | 300 | 6,234 | 500 | 12,247 | ||||||||||||
| Interest-bearing deposits in banks and other | 415 | 185 | 151 | 600 | 232 | ||||||||||||
| Total interest income | 8,626 | 7,740 | 14,997 | 16,366 | 29,889 | ||||||||||||
| Interest expense: | |||||||||||||||||
| Deposits | 1,060 | 1,217 | 1,194 | 2,277 | 2,514 | ||||||||||||
| PPPLF borrowings | — | 20 | 655 | 20 | 1,421 | ||||||||||||
| Other | 112 | 97 | 244 | 209 | 420 | ||||||||||||
| Total interest expense | 1,172 | 1,334 | 2,093 | 2,506 | 4,355 | ||||||||||||
| Net interest income | 7,454 | 6,406 | 12,904 | 13,860 | 25,534 | ||||||||||||
| Provision for loan losses | 250 | (2,400 | ) | — | (2,150 | ) | 2,000 | ||||||||||
| Net interest income after provision for loan losses | 7,204 | 8,806 | 12,904 | 16,010 | 23,534 | ||||||||||||
| Noninterest income: | |||||||||||||||||
| Residential loan fee income | 10,212 | 13,191 | 23,352 | 23,403 | 55,381 | ||||||||||||
| Loan servicing income, net | 438 | 461 | 325 | 899 | 1,029 | ||||||||||||
| Gain (loss) on sale of SBA loans, net | 3,848 | 4,621 | 13,798 | 8,469 | 13,798 | ||||||||||||
| Service charges and fees | 322 | 282 | 364 | 604 | 586 | ||||||||||||
| SBA loan fair value (loss) gain | 2,708 | (197 | ) | 7 | 2,511 | 79 | |||||||||||
| Other noninterest income | 371 | 510 | 366 | 881 | 498 | ||||||||||||
| Total noninterest income | 17,899 | 18,868 | 38,212 | 36,767 | 71,371 | ||||||||||||
| Noninterest Expense: | |||||||||||||||||
| Salaries and benefits | 11,215 | 13,697 | 12,948 | 24,912 | 26,115 | ||||||||||||
| Bonus, commissions, and incentives | 4,807 | 4,606 | 9,218 | 9,413 | 21,091 | ||||||||||||
| Mortgage banking | 677 | 1,002 | 1,572 | 1,679 | 3,267 | ||||||||||||
| Occupancy and equipment | 1,382 | 1,421 | 1,297 | 2,803 | 2,629 | ||||||||||||
| Data processing | 1,367 | 1,467 | 2,593 | 2,834 | 3,862 | ||||||||||||
| Marketing and business development | 1,659 | 1,742 | 1,878 | 3,401 | 3,520 | ||||||||||||
| Professional services | 1,075 | 1,307 | 843 | 2,382 | 1,767 | ||||||||||||
| Loan origination and collection | 331 | 670 | 1,105 | 1,001 | 1,601 | ||||||||||||
| Employee recruiting and development | 474 | 871 | 1,008 | 1,345 | 1,622 | ||||||||||||
| Regulatory assessments | 120 | 69 | 100 | 189 | 202 | ||||||||||||
| Residential mortgage division restructuring expense | 630 | — | — | 630 | — | ||||||||||||
| Other noninterest expense | 1,133 | 795 | 1,106 | 1,928 | 1,713 | ||||||||||||
| Total noninterest expense | 24,870 | 27,647 | 33,668 | 52,517 | 67,389 | ||||||||||||
| Income before taxes | 233 | 27 | 17,448 | 260 | 27,516 | ||||||||||||
| Income tax expense | (95 | ) | 14 | 4,432 | (81 | ) | 6,989 | ||||||||||
| Net income | 328 | 13 | 13,016 | 341 | 20,527 | ||||||||||||
| Preferred dividends | 208 | 208 | 235 | 416 | 567 | ||||||||||||
| Net income available to common shareholders | $ | 120 | $ | (195 | ) | $ | 12,781 | $ | (75 | ) | $ | 19,960 | |||||
| Basic earnings per common share | $ | 0.03 | $ | (0.05 | ) | $ | 3.34 | $ | (0.02 | ) | $ | 5.44 | |||||
| Diluted earnings per common share | $ | 0.03 | $ | (0.05 | ) | $ | 2.98 | $ | (0.02 | ) | $ | 4.87 | |||||
Loan Composition
| (Dollars in thousands) | 6/30/2022 | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | ||||||||||||||
| Real estate: | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||||
| Residential | $ | 122,403 | $ | 102,897 | $ | 87,235 | $ | 79,889 | $ | 75,618 | |||||||||
| Commercial | 216,067 | 189,684 | 163,477 | 151,122 | 143,388 | ||||||||||||||
| Construction and land | 9,686 | 18,038 | 18,632 | 17,848 | 14,293 | ||||||||||||||
| Commercial and industrial | 168,990 | 180,163 | 217,155 | 232,416 | 215,359 | ||||||||||||||
| Commercial and industrial - PPP | 31,430 | 44,792 | 80,158 | 156,783 | 432,469 | ||||||||||||||
| Consumer and other | 35,845 | 13,502 | 3,581 | 4,910 | 3,489 | ||||||||||||||
| Loans held for investment, at amortized cost, gross | 584,421 | 549,076 | 570,238 | 642,968 | 884,616 | ||||||||||||||
| Deferred loan costs (fees), net | 8,299 | 7,297 | 7,975 | 7,298 | 4,968 | ||||||||||||||
| Discount on SBA 7(a) loans sold | (2,521 | ) | (3,335 | ) | (3,866 | ) | (3,753 | ) | (4,420 | ) | |||||||||
| Discount on PPP loans purchased | (1 | ) | (10 | ) | (13 | ) | (24 | ) | (40 | ) | |||||||||
| Allowance for loan losses | (9,564 | ) | (10,170 | ) | (13,452 | ) | (16,616 | ) | (20,797 | ) | |||||||||
| Loans held for investment, at amortized cost | $ | 580,634 | $ | 542,858 | $ | 560,882 | $ | 629,873 | $ | 864,327 | |||||||||
Nonperforming Assets (Unaudited)
| (Dollars in thousands) | 6/30/2022 | 3/31/2022 | 12/31/2021 | 9/30/2021 | 6/30/2021 | ||||||||||||||
| Nonperforming loans (government guaranteed balances) | $ | 6,192 | $ | 6,174 | $ | 7,942 | $ | 6,739 | $ | 6,307 | |||||||||
| Nonperforming loans (unguaranteed balances) | 4,245 | 2,660 | 3,967 | 3,756 | 3,577 | ||||||||||||||
| Total nonperforming loans | 10,437 | 8,834 | 11,909 | 10,495 | 9,884 | ||||||||||||||
| OREO | 56 | 3 | 3 | 3 | — | ||||||||||||||
| Total nonperforming assets | $ | 10,493 | $ | 8,837 | $ | 11,912 | $ | 10,498 | $ | 9,884 | |||||||||
| Nonperforming loans as a percentage of total loans held for investment | 1.62 | % | 1.57 | % | 2.04 | % | 1.60 | % | 1.10 | % | |||||||||
| Nonperforming loans (excluding government guaranteed balances) to total loans held for investment | 0.66 | % | 0.47 | % | 0.68 | % | 0.57 | % | 0.40 | % | |||||||||
| Nonperforming assets as a percentage of total assets | 1.14 | % | 0.99 | % | 1.30 | % | 1.11 | % | 0.82 | % | |||||||||
| Nonperforming assets (excluding government guaranteed balances) to total assets | 0.46 | % | 0.30 | % | 0.43 | % | 0.40 | % | 0.30 | % | |||||||||
| ALLL to nonperforming loans | 91.64 | % | 115.12 | % | 112.96 | % | 158.32 | % | 210.41 | % | |||||||||
| ALLL to nonperforming loans (excluding government guaranteed balances) | 225.30 | % | 382.33 | % | 339.10 | % | 442.39 | % | 581.41 | % | |||||||||
| Contacts: | |
| Anthony N. Leo | Robin L. Oliver |
| Chief Executive Officer | Chief Financial Officer |
| 727.399.5678 | 727.685.2082 |
FAQ
What were the earnings for BayFirst Financial Corp. in Q2 2022?
How much did SBA loan production increase in Q2 2022 for BayFirst?
What is the net interest margin for BayFirst Financial Corp. in Q2 2022?
How much did residential loan fee income decline in Q2 2022?
What impact did loan loss provisions have on BayFirst's financials in Q2 2022?
