BayFirst Financial Corp. (NASDAQ: BAFN) (“BayFirst” or the
“Company”), parent company of BayFirst National Bank (the “Bank”)
today reported net income of $0.9 million, or $0.12 per diluted
common share, for the second quarter of 2024, an increase of 5.1%
compared to $0.8 million, or $0.11 per diluted common share, in the
first quarter of 2024. Net income increased due to higher net
interest income and lower provision for credit losses and
compensation expense, partially offset by lower gain on sale of
government guaranteed loans resulting from a decrease in balance of
loans sold.
“We are pleased with the improvement in credit
administration during the second quarter which resulted in a $1.1
million decrease in our provision for credit losses from the
previous quarter,” stated Thomas G. Zernick, Chief Executive
Officer. "As we stated in the past, the SBA 7(a) working capital
loans we offer often provide resources to small businesses
struggling with economic factors like high inflation. Similar to
other SBA lenders, we expanded our portfolio management efforts in
the second quarter to help borrowers who continue to make timely
payments by offering loan modification options. These efforts
helped reduce net charge-offs during the quarter."
“Our CreditBench team worked hard to produce
almost $100 million in new government guaranteed loans during the
second quarter. However, this volume was below both the first
quarter of 2024 and the second quarter of 2023. With less loan
balances sold in the market, our gains from the sale of government
guaranteed loans were below the prior quarter and our expectations.
Our team is focused on meeting loan origination targets in line
with past performance, while also promoting acceptable credit and
profitability metrics.”
“Furthermore, earlier in the year we opened our
twelfth banking center, completing our near-term branch expansion
plans. At the same time, we have been successful at reducing
operating expenses by leveraging technology investments to reduce
headcount and related incentive compensation, renegotiating key
vendor contracts, and reducing other expenses while successfully
growing the franchise. These reductions helped reduce noninterest
expense in the second quarter by $1.2 million, and we expect those
savings to increase in future quarters. We believe we have both the
infrastructure and banking teams in place to efficiently grow and
gain market share in our attractive Tampa Bay market.”
“Finally, a highlight of the second quarter was
the launch of a strategic focus around Healthcare Banking for
BayFirst, under the leadership of Phil Russo. Phil is an industry
veteran and native to the Tampa Bay region and will lead a team to
develop the Bank’s efforts to meet the lending and deposit needs of
healthcare businesses across our Tampa Bay footprint,” concluded
Zernick.
Second Quarter 2024 Performance
Review
- The
Company’s government guaranteed loan origination platform,
CreditBench, originated $98.7 million in new government guaranteed
loans during the second quarter of 2024, a decrease of 24.4% from
$130.6 million of loans produced in the previous quarter, and a
21.4% decrease from $125.6 million of loans produced during the
second quarter of 2023. Demand was down in the second 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. Since the launch in
2022, the Company has originated 4,729 Bolt loans totaling $611.4
million, of which 561 Bolt loans totaling $71.5 million were
originated during the quarter.
- Loans held for
investment increased by $73.4 million, or 7.9%, during the second
quarter of 2024 to $1.01 billion and increased $171.6 million, or
20.5%, over the past year. During the quarter, the Company
originated $178.5 million of loans and sold $79.0 million of
government guaranteed loan balances. The majority of the loan
growth was to individuals and businesses across the Tampa Bay and
Sarasota region.
-
Deposits increased $35.1 million, or 3.5%, during the second
quarter of 2024 and increased $97.6 million, or 10.3%, over the
past year to $1.04 billion.
- Balance sheet
liquidity remains strong, with $63.0 million in cash balances and
time deposits with other banks as of June 30, 2024.
Additionally, the Company maintains significant borrowing capacity
through the FHLB, Federal Reserve discount window, and lines of
credit with other financial institutions. Approximately 81% of the
Company's deposits were insured at June 30, 2024.
- Book value and
tangible book value at June 30, 2024 were $20.54 per common
share, an increase from $20.45 at March 31, 2024.
- Net
interest margin increased by 1 basis point to 3.43% in the second
quarter of 2024, from 3.42% in the first quarter of 2024.
Results of Operations
Net Income
Net income was $0.9 million for the second
quarter of 2024, compared to $0.8 million in the first quarter of
2024 and $1.4 million in the second quarter of 2023. The increase
in net income for the second quarter of 2024 from the preceding
quarter was primarily the result of an increase in net interest
income of $0.4 million, a decrease in provision for credit losses
of $1.1 million and a decrease in noninterest expense of $1.2
million partially offset by a decrease in noninterest income of
$2.6 million. The decrease in net income from the second quarter of
2023 was due to decreases in net interest income of $0.9 million
and gain on sale of government guaranteed loans of $0.4 million,
partially offset by an increase in other noninterest income of $0.4
million and lower compensation expense of $0.6 million.
In the first six months of 2024, net income was
$1.7 million, a decrease from $2.1 million for the first six months
of 2023. The decrease was primarily due to lower net interest
income of $1.2 million, higher provision for credit losses of $2.4
million and higher noninterest expense of $2.6 million, partially
offset by higher gain on sale of government guaranteed loans of
$3.2 million and higher government guaranteed loan packaging fees
of $1.5 million.
Net Interest Income and Net Interest
Margin
Net interest income from continuing operations
was $9.2 million in the second quarter of 2024, an increase from
$8.7 million during the first quarter of 2024, and a decrease from
$10.1 million during the second quarter of 2023. The net interest
margin increased by 1 basis point to 3.43% in the second quarter of
2024, from 3.42% in the first quarter of 2024.
The increase during the second quarter of 2024,
as compared to the first quarter of 2024, was mainly due to an
increase in loan interest income, including fees, of $1.2 million
partially offset by higher interest costs on deposits of $0.2
million and borrowings of $0.6 million.
The decrease during the second quarter of 2024,
as compared to the year ago quarter, was mainly due to higher
interest expense on deposits of $3.4 million, partially offset by
an increase in interest income of $2.6 million.
Net interest income from continuing operations
was $17.9 million in the first six months of 2024, a decrease from
$19.2 million in the first six months of 2023. The decrease was
mainly due to an increase in interest expense on deposits of $8.6
million, partially offset by an increase in loan interest income,
including fees, of $8.2 million.
Noninterest Income
Noninterest income from continuing operations
was $11.7 million for the second quarter of 2024, which was a
decrease from $14.3 million in the first quarter of 2024 and an
increase from $10.9 million in the second quarter of 2023. The
decrease in the second quarter of 2024, as compared to the first
quarter of 2024, was primarily the result of a decrease in gain on
sale of government guaranteed loans of $2.5 million as a result of
selling $48.8 million less in loan balances during the quarter. The
increase in the second quarter of 2024, as compared to the second
quarter of 2023, was the result of increases in fair value gains on
government guaranteed loans of $0.3 million, government guaranteed
loan packaging fees of $0.2 million, and other noninterest income
of $0.4 million, partially offset by a decrease in gain on sale of
government guaranteed loans of $0.4 million.
Noninterest income from continuing operations
was $25.9 million for the first six months of 2024, which was an
increase from $20.4 million for the first six months of 2023. The
increase was primarily the result of increases in gain on sale of
government guaranteed loans of $3.2 million and government
guaranteed loan packaging fees of $1.5 million.
Noninterest Expense
Noninterest expense from continuing operations
was $16.6 million in the second quarter of 2024 compared to $17.8
million in the first quarter of 2024 and $16.4 million in the
second quarter of 2023. The decrease in the second quarter of 2024,
as compared to the prior quarter, was primarily due to decreases in
compensation expense of $1.1 million and professional services
expense of $0.5 million. The increase in the second quarter of
2024, as compared to the second quarter of 2023, was primarily due
to higher loan production expenses of $0.7 million, data processing
expenses of $0.3 million, and other noninterest expense of $0.2
million, partially offset by lower compensation costs of $0.6
million and marketing and business development expenses of $0.6
million. The overall reduction of noninterest expense compared to
the first quarter is attributed to the lower headcount on the Bolt
lending team where we are leveraging technology in place of staff,
combined with restructured incentive plans, and savings from
renegotiated vendor contracts. These changes will provide ongoing
expense savings.
Noninterest expense from continuing operations
was $34.4 million for the first six months of 2024 compared to
$31.8 million for the first six months of 2023. The increase was
the result of increases in data processing expense of $0.5 million,
loan origination and collection expense of $1.0 million,
professional services expenses of $0.5 million, and other
noninterest expenses of $0.6 million. The increases were partially
offset by a decrease in marketing and business development expenses
of $0.6 million.
Balance Sheet
Assets
Total assets increased $73.7 million, or 6.4%,
during the second quarter of 2024 to $1.22 billion, mainly due to
an increase of $73.4 million in loans held for investment.
Loans
Loans held for investment increased $73.4
million, or 7.9%, during the second quarter of 2024 and $171.6
million, or 20.5%, over the past year to $1.01 billion, due to
originations in both conventional community bank loans and
government guaranteed loans, partially offset by government
guaranteed loan sales.
Deposits
Deposits increased $35.1 million, or 3.5%,
during the second quarter of 2024 and increased $97.6 million, or
10.3%, from the second quarter of 2023, ending the second quarter
of 2024 at $1.04 billion. During the second quarter, there were
increases in savings and money market deposit account balances of
$28.4 million and time deposit balances of $23.7 million, partially
offset by decreases in noninterest-bearing deposit account balances
of $2.9 million and interest-bearing transaction account balances
of $14.0 million. The majority of the deposits are generated
through the community bank. At times, the Bank has brokered time
deposit and non-maturity deposit relationships available to
diversify its funding sources. At June 30, 2024,
March 31, 2024, and June 30, 2023, the Company had $60.1
million , $30.5 million,and $40.1 million, respectively, of
brokered deposits.
Asset Quality
The Company recorded a provision for credit
losses in the second quarter of $3.0 million, compared to a $4.1
million provision for the first quarter of 2024 and $2.8 million
during the second quarter of 2023.
The ratio of ACL to total loans held for
investment at amortized cost was 1.50% at June 30, 2024, 1.62%
as of March 31, 2024, and 1.61% as of June 30, 2023. The
ratio of ACL to total loans held for investment at amortized cost,
excluding government guaranteed loans, was 1.73% at June 30,
2024, 1.88% as of March 31, 2024, and 2.03% as of
June 30, 2023.
Net charge-offs for the second quarter of 2024
were $3.3 million, which was a decrease from $3.7 million for the
first quarter of 2024 and an increase from $2.3 million in the
second quarter of 2023. Annualized net charge-offs as a percentage
of average loans held for investment at amortized cost were 1.45%
for the second quarter of 2024, compared to 1.71% in the first
quarter of 2023 and 1.15% in the second quarter of 2023.
Nonperforming assets to total assets was 1.28% as of June 30,
2024, compared to 0.97% as of March 31, 2024, and 0.79% as of
June 30, 2023. Nonperforming assets, excluding government
guaranteed loans, to total assets was 0.82% as of June 30,
2024, compared to 0.70% as of March 31, 2024, and 0.61% as of
June 30, 2023.
Capital
The Bank’s Tier 1 leverage ratio was 8.73% as of
June 30, 2024, compared to 9.12% as of March 31, 2024,
and 9.36% at June 30, 2023. The CET 1 and Tier 1 capital ratio
to risk-weighted assets were 10.54% as of June 30, 2024,
compared to 11.04% as of March 31, 2024, and 12.34% as of
June 30, 2023. The total capital to risk-weighted assets ratio
was 11.79% as of June 30, 2024, compared to 12.29% as of
March 31, 2024, and 13.60% as of June 30, 2023.
Liquidity
The Bank has liquidity in excess of internal
minimums and the expectations of our bank regulators. The Bank’s
overall liquidity position remains strong and stable. The
on-balance sheet liquidity ratio at June 30, 2024 was 8.55%,
as compared to 9.33% at December 31, 2023. The Bank has robust
liquidity resources which include secured borrowings available from
the Federal Home Loan Bank, the Federal Reserve, and lines of
credit with other financial institutions. As of June 30, 2024,
the Bank had $55.0 million of borrowings from the FHLB and no
borrowings from the FRB or other financial institutions. This
compares to $15.0 million and $10.0 million of borrowings from the
FHLB and no borrowings from the FRB or other financial institutions
at March 31, 2024 and December 31, 2023,
respectively.
Recent Events
Third Quarter Common Stock
Dividend. On July 23, 2024, BayFirst’s Board of Directors
declared a third quarter 2024 cash dividend of $0.08 per common
share. The dividend will be payable September 15, 2024 to common
shareholders of record as of September 1, 2024. The Company has
continuously paid quarterly common stock cash dividends since
2016.
Conference Call
BayFirst’s management team will host a
conference call on Friday, July 26, 2024, at 9:00 a.m. ET to
discuss its second 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
63886. 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. The Bank was the 3rd largest SBA 7(a)
lender by number of units originated and 9th largest by dollar
volume nationwide through the third quarter ended June 30,
2024, 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 June 30, 2024,
BayFirst Financial Corp. had $1.22 billion in total assets.
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) |
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
| Balance sheet
data: |
|
|
|
|
|
|
|
|
|
|
Average loans held for investment at amortized cost |
$ |
902,417 |
|
|
$ |
855,040 |
|
|
$ |
825,196 |
|
|
$ |
789,167 |
|
|
$ |
781,744 |
|
| Average total assets |
|
1,178,501 |
|
|
|
1,126,315 |
|
|
|
1,108,550 |
|
|
|
1,088,517 |
|
|
|
1,064,068 |
|
| Average common shareholders’
equity |
|
84,948 |
|
|
|
85,385 |
|
|
|
82,574 |
|
|
|
81,067 |
|
|
|
80,310 |
|
| Total loans held for
investment |
|
1,008,314 |
|
|
|
934,868 |
|
|
|
915,726 |
|
|
|
878,447 |
|
|
|
836,704 |
|
| Total loans held for
investment, excl gov’t gtd loan balances |
|
844,659 |
|
|
|
776,302 |
|
|
|
698,106 |
|
|
|
687,141 |
|
|
|
638,148 |
|
| Allowance for credit
losses |
|
13,843 |
|
|
|
13,906 |
|
|
|
13,497 |
|
|
|
13,365 |
|
|
|
12,598 |
|
| Total assets |
|
1,217,869 |
|
|
|
1,144,194 |
|
|
|
1,117,766 |
|
|
|
1,133,979 |
|
|
|
1,087,399 |
|
| Common shareholders’
equity |
|
84,911 |
|
|
|
84,578 |
|
|
|
84,656 |
|
|
|
82,725 |
|
|
|
81,460 |
|
| Share
data: |
|
|
|
|
|
|
|
|
|
| Basic earnings per common
share |
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.32 |
|
|
$ |
0.42 |
|
|
$ |
0.29 |
|
| Diluted earnings per common
share |
|
0.12 |
|
|
|
0.11 |
|
|
|
0.32 |
|
|
|
0.41 |
|
|
|
0.29 |
|
| Dividends per common
share |
|
0.08 |
|
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.08 |
|
|
|
0.08 |
|
| Book value per common
share |
|
20.54 |
|
|
|
20.45 |
|
|
|
20.60 |
|
|
|
20.12 |
|
|
|
19.85 |
|
| Tangible book value per common
share (1) |
|
20.54 |
|
|
|
20.45 |
|
|
|
20.60 |
|
|
|
20.12 |
|
|
|
19.85 |
|
| Performance and
capital ratios: |
|
|
|
|
|
|
|
|
|
| Return on average
assets(2) |
|
0.29 |
% |
|
|
0.29 |
% |
|
|
0.60 |
% |
|
|
0.71 |
% |
|
|
0.52 |
% |
| Return on average common
equity(2) |
|
2.26 |
% |
|
|
2.06 |
% |
|
|
6.37 |
% |
|
|
8.46 |
% |
|
|
5.86 |
% |
| Net interest margin(2) |
|
3.43 |
% |
|
|
3.42 |
% |
|
|
3.48 |
% |
|
|
3.36 |
% |
|
|
4.18 |
% |
| Dividend payout ratio |
|
68.91 |
% |
|
|
75.27 |
% |
|
|
25.03 |
% |
|
|
19.15 |
% |
|
|
27.89 |
% |
| Asset quality
ratios: |
|
|
|
|
|
|
|
|
|
| Net charge-offs |
$ |
3,261 |
|
|
$ |
3,652 |
|
|
$ |
2,612 |
|
|
$ |
2,234 |
|
|
$ |
2,253 |
|
| Net charge-offs/avg loans held
for investment at amortized cost(2) |
|
1.45 |
% |
|
|
1.71 |
% |
|
|
1.27 |
% |
|
|
1.13 |
% |
|
|
1.15 |
% |
| Nonperforming loans(3) |
$ |
12,312 |
|
|
$ |
9,877 |
|
|
$ |
9,688 |
|
|
$ |
9,518 |
|
|
$ |
8,478 |
|
| Nonperforming loans (excluding
gov't gtd balance)(3) |
$ |
8,054 |
|
|
$ |
7,568 |
|
|
$ |
8,264 |
|
|
$ |
7,997 |
|
|
$ |
6,590 |
|
| Nonperforming loans/total
loans held for investment(3) |
|
1.34 |
% |
|
|
1.15 |
% |
|
|
1.18 |
% |
|
|
1.20 |
% |
|
|
1.08 |
% |
| Nonperforming loans (excl
gov’t gtd balance)/total loans held for investment(3) |
|
0.87 |
% |
|
|
0.88 |
% |
|
|
1.00 |
% |
|
|
1.01 |
% |
|
|
0.84 |
% |
| ACL/Total loans held for
investment at amortized cost |
|
1.50 |
% |
|
|
1.62 |
% |
|
|
1.64 |
% |
|
|
1.68 |
% |
|
|
1.61 |
% |
| ACL/Total loans held for
investment at amortized cost, excl government guaranteed loans |
|
1.73 |
% |
|
|
1.88 |
% |
|
|
2.03 |
% |
|
|
2.03 |
% |
|
|
2.03 |
% |
| Other
Data: |
|
|
|
|
|
|
|
|
|
| Full-time equivalent
employees |
|
302 |
|
|
|
313 |
|
|
|
305 |
|
|
|
307 |
|
|
|
302 |
|
| Banking center offices |
|
12 |
|
|
|
12 |
|
|
|
11 |
|
|
|
10 |
|
|
|
9 |
|
| (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) |
|
June 30, 2024 |
|
March 31, 2024 |
|
December 31, 2023 |
|
September 30, 2023 |
|
June 30, 2023 |
|
Total shareholders’ equity |
|
$ |
100,962 |
|
|
$ |
100,629 |
|
|
$ |
100,707 |
|
|
$ |
94,165 |
|
|
$ |
91,065 |
|
| Less: Preferred stock
liquidation preference |
|
|
(16,051 |
) |
|
|
(16,051 |
) |
|
|
(16,051 |
) |
|
|
(11,440 |
) |
|
|
(9,605 |
) |
| Total equity available to
common shareholders |
|
|
84,911 |
|
|
|
84,578 |
|
|
|
84,656 |
|
|
|
82,725 |
|
|
|
81,460 |
|
| Less: Goodwill |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Tangible common shareholders'
equity |
|
$ |
84,911 |
|
|
$ |
84,578 |
|
|
$ |
84,656 |
|
|
$ |
82,725 |
|
|
$ |
81,460 |
|
| |
|
|
|
|
|
|
|
|
|
|
| Common shares outstanding |
|
|
4,134,219 |
|
|
|
4,134,914 |
|
|
|
4,110,470 |
|
|
|
4,110,650 |
|
|
|
4,103,834 |
|
| Tangible book value per common
share |
|
$ |
20.54 |
|
|
$ |
20.45 |
|
|
$ |
20.60 |
|
|
$ |
20.12 |
|
|
$ |
19.85 |
|
|
|
|
BAYFIRST FINANCIAL CORP. |
|
CONSOLIDATED BALANCE SHEETS (Unaudited) |
| (Dollars in thousands) |
6/30/2024 |
3/31/2024 |
6/30/2023 |
| Assets |
|
|
|
|
Cash and due from banks |
$ |
4,226 |
|
$ |
4,425 |
|
$ |
4,593 |
|
|
Interest-bearing deposits in banks |
|
56,546 |
|
|
53,080 |
|
|
99,114 |
|
|
Cash and cash equivalents |
|
60,772 |
|
|
57,505 |
|
|
103,707 |
|
|
Time deposits in banks |
|
2,261 |
|
|
3,000 |
|
|
4,881 |
|
|
Investment securities available for sale, at fair value (amortized
cost $42,885, $46,816, and $45,713 at June 30, 2024,
March 31, 2024, and June 30, 2023, respectively) |
|
38,685 |
|
|
42,514 |
|
|
41,343 |
|
|
Investment securities held to maturity, at amortized cost, net of
allowance for credit losses of $14, $14, and $19 (fair value:
$2,273, $2,352, and $2,222 at June 30, 2024, March 31,
2024, and June 30, 2023, respectively) |
|
2,486 |
|
|
2,487 |
|
|
2,483 |
|
|
Nonmarketable equity securities |
|
7,132 |
|
|
5,228 |
|
|
5,332 |
|
|
Government guaranteed loans held for sale |
|
— |
|
|
2,226 |
|
|
1,247 |
|
|
Government guaranteed loans held for investment, at fair value |
|
86,142 |
|
|
77,769 |
|
|
52,165 |
|
|
Loans held for investment, at amortized cost net of allowance for
credit losses of $13,843, $13,906, and $12,598 at June 30,
2024, March 31, 2024, and June 30, 2023,
respectively) |
|
908,329 |
|
|
843,193 |
|
|
771,941 |
|
|
Accrued interest receivable |
|
8,000 |
|
|
7,625 |
|
|
5,929 |
|
|
Premises and equipment, net |
|
39,088 |
|
|
39,327 |
|
|
40,052 |
|
|
Loan servicing rights |
|
15,770 |
|
|
15,742 |
|
|
12,820 |
|
|
Deferred income tax assets |
|
— |
|
|
— |
|
|
925 |
|
|
Right-of-use operating lease assets |
|
2,305 |
|
|
2,499 |
|
|
2,804 |
|
|
Bank owned life insurance |
|
26,150 |
|
|
25,974 |
|
|
25,469 |
|
|
Other assets |
|
20,713 |
|
|
18,805 |
|
|
15,850 |
|
|
Assets from discontinued operations |
|
36 |
|
|
300 |
|
|
451 |
|
|
Total assets |
$ |
1,217,869 |
|
$ |
1,144,194 |
|
$ |
1,087,399 |
|
|
Liabilities: |
|
|
|
|
Noninterest-bearing deposits |
$ |
94,040 |
|
$ |
96,977 |
|
$ |
101,081 |
|
|
Interest-bearing transaction accounts |
|
236,447 |
|
|
250,478 |
|
|
253,112 |
|
|
Savings and money market deposits |
|
420,271 |
|
|
391,915 |
|
|
401,941 |
|
|
Time deposits |
|
291,630 |
|
|
267,945 |
|
|
188,648 |
|
|
Total deposits |
|
1,042,388 |
|
|
1,007,315 |
|
|
944,782 |
|
|
FHLB borrowings |
|
55,000 |
|
|
15,000 |
|
|
30,000 |
|
|
Subordinated debentures |
|
5,952 |
|
|
5,950 |
|
|
5,945 |
|
|
Notes payable |
|
2,162 |
|
|
2,276 |
|
|
2,617 |
|
|
Accrued interest payable |
|
1,172 |
|
|
1,598 |
|
|
572 |
|
|
Operating lease liabilities |
|
2,497 |
|
|
2,673 |
|
|
3,018 |
|
|
Deferred income tax liabilities |
|
1,000 |
|
|
728 |
|
|
— |
|
|
Accrued expenses and other liabilities |
|
6,565 |
|
|
7,496 |
|
|
8,461 |
|
|
Liabilities from discontinued operations |
|
171 |
|
|
529 |
|
|
939 |
|
|
Total liabilities |
|
1,116,907 |
|
|
1,043,565 |
|
|
996,334 |
|
| Shareholders’
equity: |
|
|
|
|
Preferred stock, Series A; no par value, 10,000 shares authorized,
6,395 shares issued and outstanding at June 30, 2024,
March 31, 2024, and June 30, 2023; aggregate liquidation
preference of $6,395 each period |
|
6,161 |
|
|
6,161 |
|
|
6,161 |
|
|
Preferred stock, Series B; no par value, 20,000 shares authorized,
3,210 shares issued and outstanding at June 30, 2024,
March 31, 2024, and June 30, 2023; aggregate liquidation
preference of $3,210 each period |
|
3,123 |
|
|
3,123 |
|
|
3,123 |
|
|
Preferred stock, Series C; no par value, 10,000 shares authorized,
6,446 shares issued and outstanding at June 30, 2024 and
March 31, 2024, and no shares issued and outstanding as of
June 30, 2023; aggregate liquidation preference of $6,446 at
June 30, 2024 and March 31, 2024 |
|
6,446 |
|
|
6,446 |
|
|
— |
|
|
Common stock and additional paid-in capital; no par
value, 15,000,000 shares authorized, 4,134,219, 4,134,914, and
4,103,834 shares issued and outstanding at June 30, 2024,
March 31, 2024, and June 30, 2023, respectively |
|
54,773 |
|
|
54,776 |
|
|
54,384 |
|
|
Accumulated other comprehensive loss, net |
|
(3,113 |
) |
|
(3,188 |
) |
|
(3,239 |
) |
|
Unearned compensation |
|
(1,081 |
) |
|
(1,192 |
) |
|
(1,386 |
) |
|
Retained earnings |
|
34,653 |
|
|
34,503 |
|
|
32,022 |
|
|
Total shareholders’ equity |
|
100,962 |
|
|
100,629 |
|
|
91,065 |
|
| Total liabilities and
shareholders’ equity |
$ |
1,217,869 |
|
$ |
1,144,194 |
|
$ |
1,087,399 |
|
|
|
|
BAYFIRST FINANCIAL CORP. |
|
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
| |
For the Quarter Ended |
|
Year-to-Date |
| (Dollars in thousands, except
per share data) |
6/30/2024 |
|
3/31/2024 |
|
6/30/2023 |
|
6/30/2024 |
|
6/30/2023 |
| Interest
income: |
|
|
|
|
|
|
|
|
|
|
Loans, including fees |
$ |
19,414 |
|
|
$ |
18,228 |
|
|
$ |
16,372 |
|
|
$ |
37,642 |
|
|
$ |
29,443 |
|
|
Interest-bearing deposits in banks and other |
|
1,013 |
|
|
|
959 |
|
|
|
1,420 |
|
|
|
1,972 |
|
|
|
2,600 |
|
|
Total interest income |
|
20,427 |
|
|
|
19,187 |
|
|
|
17,792 |
|
|
|
39,614 |
|
|
|
32,043 |
|
| Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
|
10,448 |
|
|
|
10,215 |
|
|
|
7,098 |
|
|
|
20,663 |
|
|
|
12,021 |
|
|
Other |
|
797 |
|
|
|
230 |
|
|
|
586 |
|
|
|
1,027 |
|
|
|
861 |
|
|
Total interest expense |
|
11,245 |
|
|
|
10,445 |
|
|
|
7,684 |
|
|
|
21,690 |
|
|
|
12,882 |
|
|
Net interest income |
|
9,182 |
|
|
|
8,742 |
|
|
|
10,108 |
|
|
|
17,924 |
|
|
|
19,161 |
|
| Provision for credit
losses |
|
3,000 |
|
|
|
4,058 |
|
|
|
2,765 |
|
|
|
7,058 |
|
|
|
4,707 |
|
|
Net interest income after provision for credit
losses |
|
6,182 |
|
|
|
4,684 |
|
|
|
7,343 |
|
|
|
10,866 |
|
|
|
14,454 |
|
| Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
Loan servicing income, net |
|
805 |
|
|
|
795 |
|
|
|
649 |
|
|
|
1,600 |
|
|
|
1,389 |
|
|
Gain on sale of government guaranteed loans, net |
|
5,595 |
|
|
|
8,089 |
|
|
|
6,028 |
|
|
|
13,684 |
|
|
|
10,437 |
|
|
Service charges and fees |
|
452 |
|
|
|
444 |
|
|
|
379 |
|
|
|
896 |
|
|
|
758 |
|
|
Government guaranteed loans fair value gain, net |
|
3,202 |
|
|
|
3,305 |
|
|
|
2,904 |
|
|
|
6,507 |
|
|
|
6,478 |
|
|
Government guaranteed loan packaging fees |
|
1,022 |
|
|
|
1,407 |
|
|
|
797 |
|
|
|
2,429 |
|
|
|
918 |
|
|
Other noninterest income |
|
577 |
|
|
|
228 |
|
|
|
180 |
|
|
|
805 |
|
|
|
405 |
|
|
Total noninterest income |
|
11,653 |
|
|
|
14,268 |
|
|
|
10,937 |
|
|
|
25,921 |
|
|
|
20,385 |
|
| Noninterest
Expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and benefits |
|
7,829 |
|
|
|
8,005 |
|
|
|
7,780 |
|
|
|
15,834 |
|
|
|
15,615 |
|
|
Bonus, commissions, and incentives |
|
659 |
|
|
|
1,571 |
|
|
|
1,305 |
|
|
|
2,230 |
|
|
|
2,109 |
|
|
Occupancy and equipment |
|
1,273 |
|
|
|
1,110 |
|
|
|
1,183 |
|
|
|
2,383 |
|
|
|
2,346 |
|
|
Data processing |
|
1,647 |
|
|
|
1,560 |
|
|
|
1,316 |
|
|
|
3,207 |
|
|
|
2,663 |
|
|
Marketing and business development |
|
540 |
|
|
|
588 |
|
|
|
1,102 |
|
|
|
1,128 |
|
|
|
1,767 |
|
|
Professional services |
|
877 |
|
|
|
1,349 |
|
|
|
874 |
|
|
|
2,226 |
|
|
|
1,771 |
|
|
Loan origination and collection |
|
1,958 |
|
|
|
1,719 |
|
|
|
1,221 |
|
|
|
3,677 |
|
|
|
2,716 |
|
|
Employee recruiting and development |
|
549 |
|
|
|
597 |
|
|
|
556 |
|
|
|
1,146 |
|
|
|
1,124 |
|
|
Regulatory assessments |
|
279 |
|
|
|
282 |
|
|
|
232 |
|
|
|
561 |
|
|
|
331 |
|
|
Other noninterest expense |
|
999 |
|
|
|
992 |
|
|
|
833 |
|
|
|
1,991 |
|
|
|
1,372 |
|
|
Total noninterest expense |
|
16,610 |
|
|
|
17,773 |
|
|
|
16,402 |
|
|
|
34,383 |
|
|
|
31,814 |
|
| Income before taxes
from continuing operations |
|
1,225 |
|
|
|
1,179 |
|
|
|
1,878 |
|
|
|
2,404 |
|
|
|
3,025 |
|
| Income tax expense
from continuing operations |
|
349 |
|
|
|
296 |
|
|
|
461 |
|
|
|
645 |
|
|
|
741 |
|
| Net income from
continuing operations |
|
876 |
|
|
|
883 |
|
|
|
1,417 |
|
|
|
1,759 |
|
|
|
2,284 |
|
| Loss from discontinued
operations before income taxes |
|
(14 |
) |
|
|
(78 |
) |
|
|
(43 |
) |
|
|
(92 |
) |
|
|
(213 |
) |
| Income tax benefit
from discontinued operations |
|
(4 |
) |
|
|
(19 |
) |
|
|
(11 |
) |
|
|
(23 |
) |
|
|
(53 |
) |
| Net loss from
discontinued operations |
|
(10 |
) |
|
|
(59 |
) |
|
|
(32 |
) |
|
|
(69 |
) |
|
|
(160 |
) |
| |
|
|
|
|
|
|
|
|
|
| Net
income |
|
866 |
|
|
|
824 |
|
|
|
1,385 |
|
|
|
1,690 |
|
|
|
2,124 |
|
| Preferred
dividends |
|
386 |
|
|
|
385 |
|
|
|
208 |
|
|
|
771 |
|
|
|
416 |
|
| Net income available
to common shareholders |
$ |
480 |
|
|
$ |
439 |
|
|
$ |
1,177 |
|
|
$ |
919 |
|
|
$ |
1,708 |
|
| Basic earnings (loss)
per common share: |
|
|
|
|
|
|
|
|
|
| Continuing operations |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.30 |
|
|
$ |
0.24 |
|
|
$ |
0.46 |
|
| Discontinued operations |
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
| Basic earnings per
common share |
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.29 |
|
|
$ |
0.22 |
|
|
$ |
0.42 |
|
| |
|
|
|
|
|
|
|
|
|
| Diluted earnings
(loss) per common share: |
|
|
|
|
|
|
|
|
|
| Continuing operations |
$ |
0.12 |
|
|
$ |
0.12 |
|
|
$ |
0.30 |
|
|
$ |
0.24 |
|
|
$ |
0.46 |
|
| Discontinued operations |
|
— |
|
|
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
| Diluted earnings per
common share |
$ |
0.12 |
|
|
$ |
0.11 |
|
|
$ |
0.29 |
|
|
$ |
0.22 |
|
|
$ |
0.42 |
|
Loan Composition
| (Dollars in thousands) |
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
| |
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
(Unaudited) |
| Real estate: |
|
|
|
|
|
|
|
|
|
|
Residential |
$ |
304,234 |
|
|
$ |
285,214 |
|
|
$ |
264,126 |
|
|
$ |
248,973 |
|
|
$ |
235,339 |
|
|
Commercial |
|
288,185 |
|
|
|
273,227 |
|
|
|
293,595 |
|
|
|
280,620 |
|
|
|
272,200 |
|
|
Construction and land |
|
35,759 |
|
|
|
36,764 |
|
|
|
26,272 |
|
|
|
25,339 |
|
|
|
15,575 |
|
| Commercial and industrial |
|
192,140 |
|
|
|
182,264 |
|
|
|
177,566 |
|
|
|
174,238 |
|
|
|
198,639 |
|
| Commercial and industrial -
PPP |
|
2,324 |
|
|
|
2,965 |
|
|
|
3,202 |
|
|
|
15,364 |
|
|
|
15,808 |
|
| Consumer and other |
|
85,789 |
|
|
|
63,854 |
|
|
|
47,287 |
|
|
|
39,024 |
|
|
|
38,103 |
|
| Loans held for investment, at
amortized cost, gross |
|
908,431 |
|
|
|
844,288 |
|
|
|
812,048 |
|
|
|
783,558 |
|
|
|
775,664 |
|
| Deferred loan costs, net |
|
17,299 |
|
|
|
16,233 |
|
|
|
14,707 |
|
|
|
12,928 |
|
|
|
11,506 |
|
| Discount on government
guaranteed loans sold |
|
(7,731 |
) |
|
|
(7,674 |
) |
|
|
(7,040 |
) |
|
|
(6,623 |
) |
|
|
(5,937 |
) |
| Premium on loans purchased,
net |
|
4,173 |
|
|
|
4,252 |
|
|
|
4,503 |
|
|
|
4,406 |
|
|
|
3,306 |
|
| Loans held for investment, at
amortized cost, net |
|
922,172 |
|
|
|
857,099 |
|
|
|
824,218 |
|
|
|
794,269 |
|
|
|
784,539 |
|
| Government guaranteed loans
held for investment, at fair value |
|
86,142 |
|
|
|
77,769 |
|
|
|
91,508 |
|
|
|
84,178 |
|
|
|
52,165 |
|
| Total loans held for
investment, net |
$ |
1,008,314 |
|
|
$ |
934,868 |
|
|
$ |
915,726 |
|
|
$ |
878,447 |
|
|
$ |
836,704 |
|
Nonperforming Assets (Unaudited)
| (Dollars in thousands) |
6/30/2024 |
|
3/31/2024 |
|
12/31/2023 |
|
9/30/2023 |
|
6/30/2023 |
|
Nonperforming loans (government guaranteed balances), at amortized
cost, gross |
$ |
4,258 |
|
|
$ |
2,309 |
|
|
$ |
1,424 |
|
|
$ |
1,521 |
|
|
$ |
1,888 |
|
| Nonperforming loans
(unguaranteed balances), at amortized cost, gross |
|
8,054 |
|
|
|
7,568 |
|
|
|
8,264 |
|
|
|
7,997 |
|
|
|
6,590 |
|
| Total nonperforming loans, at
amortized cost, gross |
|
12,312 |
|
|
|
9,877 |
|
|
|
9,688 |
|
|
|
9,518 |
|
|
|
8,478 |
|
| Nonperforming loans
(government guaranteed balances), at fair value |
|
341 |
|
|
|
94 |
|
|
|
— |
|
|
|
96 |
|
|
|
128 |
|
| Nonperforming loans
(unguaranteed balances), at fair value |
|
1,284 |
|
|
|
729 |
|
|
|
648 |
|
|
|
363 |
|
|
|
— |
|
| Total nonperforming loans, at
fair value |
|
1,625 |
|
|
|
823 |
|
|
|
648 |
|
|
|
459 |
|
|
|
128 |
|
| OREO |
|
1,633 |
|
|
|
404 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
| Total nonperforming assets,
gross |
$ |
15,570 |
|
|
$ |
11,104 |
|
|
$ |
10,336 |
|
|
$ |
9,977 |
|
|
$ |
8,609 |
|
| Nonperforming loans as a
percentage of total loans held for investment(1) |
|
1.34 |
% |
|
|
1.15 |
% |
|
|
1.18 |
% |
|
|
1.20 |
% |
|
|
1.08 |
% |
| Nonperforming loans (excluding
government guaranteed balances) to total loans held for
investment(1) |
|
0.87 |
% |
|
|
0.88 |
% |
|
|
1.00 |
% |
|
|
1.01 |
% |
|
|
0.84 |
% |
| Nonperforming assets as a
percentage of total assets |
|
1.28 |
% |
|
|
0.97 |
% |
|
|
0.92 |
% |
|
|
0.88 |
% |
|
|
0.79 |
% |
| Nonperforming assets
(excluding government guaranteed balances) to total assets |
|
0.82 |
% |
|
|
0.70 |
% |
|
|
0.74 |
% |
|
|
0.71 |
% |
|
|
0.61 |
% |
| ACL to nonperforming
loans(1) |
|
112.44 |
% |
|
|
140.79 |
% |
|
|
139.32 |
% |
|
|
128.60 |
% |
|
|
146.39 |
% |
| ACL to nonperforming loans
(excluding government guaranteed balances)(1) |
|
171.88 |
% |
|
|
183.75 |
% |
|
|
163.32 |
% |
|
|
152.29 |
% |
|
|
191.17 |
% |
(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 |
BayFirst Financial (NASDAQ:BAFN)
過去 株価チャート
から 6 2024 まで 7 2024
BayFirst Financial (NASDAQ:BAFN)
過去 株価チャート
から 7 2023 まで 7 2024
