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BayFirst Financial Corp. Reports First Quarter 2024 Results; Highlighted by Strong Loan and Deposit Growth with Higher Provision for Credit Losses
BAFNBayFirst Financial (BAFN) Newsfilter·2024-04-25 20:00

Core Viewpoint - BayFirst Financial Corp. reported a net income of 0.8millionforQ12024,adecreasefrom0.8 million for Q1 2024, a decrease from 1.7 million in Q4 2023, primarily due to higher provisions for credit losses and weaker loan production amid a high interest rate environment [1][4]. Financial Performance - Net income for Q1 2024 was 0.8million,or0.8 million, or 0.11 per diluted share, down from 1.7million,or1.7 million, or 0.32 per diluted share in Q4 2023 [1][4]. - The provision for credit losses increased to 4.1millioninQ12024from4.1 million in Q1 2024 from 2.7 million in Q4 2023 [12]. - Noninterest income decreased by 0.4million,or2.90.4 million, or 2.9%, from Q4 2023 but increased by 4.9 million, or 51.0%, from Q1 2023 [7]. Loan Production - The company originated 130.6millioninnewgovernmentguaranteedloansinQ12024,adecreaseof9.9130.6 million in new government guaranteed loans in Q1 2024, a decrease of 9.9% from the previous quarter but a 7.8% increase year-over-year [3]. - The Core SBA 7(a) loan production was below expectations by 50%, attributed to weaker demand due to higher interest rates [2][3]. Deposit Growth - Deposits increased by 22.2 million, or 2.3%, in Q1 2024, totaling 1.01billion,withayear−over−yearincreaseof1.01 billion, with a year-over-year increase of 74.4 million, or 8.0% [11][3]. Asset Quality - Net charge-offs for Q1 2024 were 3.7million,anincreasefrom3.7 million, an increase from 2.6 million in Q4 2023 and 1.9millioninQ12023[13].−Theratioofallowanceforcreditlosses(ACL)tototalloansheldforinvestmentwas1.621.9 million in Q1 2023 [13]. - The ratio of allowance for credit losses (ACL) to total loans held for investment was 1.62% as of March 31, 2024, down from 1.64% at the end of Q4 2023 [12][27]. Capital and Liquidity - The Tier 1 leverage ratio was 9.12% as of March 31, 2024, compared to 9.38% at the end of Q4 2023 [15]. - The bank's liquidity position remains strong, with 60.5 million in cash and time deposits as of March 31, 2024 [3][16]. Recent Developments - The Board of Directors declared a second quarter 2024 cash dividend of $0.08 per common share, payable on June 15, 2024 [17]. - The company opened its twelfth banking office in the Tampa Bay market during Q1 2024 [2].