BayFirst Financial Corp. Reports Fourth Quarter 2023 Results; Highlighted by Net Interest Margin Expansion and Strong SBA Loan Originations

Core Viewpoint - BayFirst Financial Corp. reported a net income of $1.7 million for Q4 2023, a decrease from $1.9 million in Q3 2023, attributed to higher noninterest expenses and a lack of gains from the sale of real estate that occurred in the previous quarter [1][5][12]. Financial Performance - Net income for Q4 2023 was $1.7 million, or $0.32 per diluted share, compared to $1.9 million, or $0.41 per diluted share in Q3 2023 [1][5]. - For the year ended 2023, net income was $5.7 million, an increase from a net loss of $0.3 million in 2022 [6]. - Net interest income for Q4 2023 was $8.9 million, a 5.8% increase from Q3 2023, and a 3.5% increase from Q4 2022 [7][8]. - Noninterest income for Q4 2023 was $14.7 million, unchanged from Q3 2023, but up 74.8% from $8.4 million in Q4 2022 [9][10]. Loan and Deposit Activity - The company originated $144.9 million in new government guaranteed loans in Q4 2023, a decrease of 7.0% from the previous quarter but a 32.8% increase from Q4 2022 [3]. - Loans held for investment, excluding PPP loans, increased by $49.3 million, or 5.7%, during Q4 2023, totaling $912.5 million [16]. - Deposits decreased by $32.7 million, or 3.2%, in Q4 2023, but increased by $190.1 million, or 23.9%, year-over-year [17]. Asset Quality and Credit Losses - The provision for credit losses in Q4 2023 was $2.7 million, down from $3.0 million in Q3 2023 [19]. - Net charge-offs for Q4 2023 were $2.6 million, an increase from $2.2 million in Q3 2023 [20]. - The ratio of allowance for credit losses to total loans held for investment was 1.64% as of December 31, 2023 [19]. Capital and Liquidity - The Bank's Tier 1 leverage ratio was 9.38% as of December 31, 2023, compared to 9.16% in the previous quarter [21]. - The overall liquidity position remains strong, with a liquidity ratio of 9.33% as of December 31, 2023 [22]. Recent Developments - The company issued preferred stock totaling $6.45 million to support growth and operations [23]. - A cash dividend of $0.08 per common share was declared for Q1 2024, marking the 31st consecutive quarterly dividend [24].