BayFirst Financial Corp. Reports Third Quarter 2024 Results; Third Quarter Net Income Increased 31.3% Over Prior Quarter

Core Insights - BayFirst Financial Corp. reported a net income of $1.1 million for Q3 2024, a 31.3% increase from $0.9 million in Q2 2024, driven by higher net interest income and gains from government guaranteed loans [1][4][6] Financial Performance - Net interest income for Q3 2024 was $9.4 million, up from $9.2 million in Q2 2024 and $8.4 million in Q3 2023 [6][7] - The net interest margin decreased by 9 basis points to 3.34% in Q3 2024 from 3.43% in Q2 2024, primarily due to a one-time premium recognition related to a USDA loan [6][12] - Noninterest income increased to $12.3 million in Q3 2024 from $11.7 million in Q2 2024, but decreased from $14.7 million in Q3 2023 [8][9] - Noninterest expense rose to $17.1 million in Q3 2024 from $16.6 million in Q2 2024, mainly due to increased compensation expenses [10][11] Loan and Deposit Growth - The company originated $94.4 million in new government guaranteed loans in Q3 2024, a decrease from $98.7 million in Q2 2024 and $155.9 million in Q3 2023 [2][3] - Loans held for investment increased by $34.1 million, or 3.4%, to $1.04 billion in Q3 2024, with an annual increase of $164.0 million, or 18.7% [12][13] - Total deposits increased by $69.8 million, or 6.7%, in Q3 2024, reaching $1.11 billion, with a year-over-year increase of $94.4 million, or 9.3% [14][26] Asset Quality and Capital - The provision for credit losses was $3.1 million in Q3 2024, slightly up from $3.0 million in Q2 2024 [15] - Net charge-offs decreased to $2.8 million in Q3 2024 from $3.3 million in Q2 2024, but increased from $2.2 million in Q3 2023 [16] - The Tier 1 leverage ratio was 8.41% as of September 30, 2024, down from 8.73% in Q2 2024 [17] Recent Developments - The Board of Directors declared a cash dividend of $0.08 per common share for Q4 2024, payable on December 15, 2024 [19] - BayFirst was recognized as the best bank in Florida in 2024 by Forbes Magazine, highlighting its community banking model [2][21]