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BayFirst Financial (BAFN) - 2025 Q1 - Earnings Call Transcript

Financial Data and Key Metrics Changes - The company reported a net loss of $335,000 from continuing operations in Q1 2025, compared to a net income of $9,800,000 in Q4 2024 [9] - Total assets increased by $3,700,000 to $1,290,000,000, representing a 0.3% growth during the quarter, and a 12.9% increase year-over-year [10] - Net interest margin improved by 17 basis points to 3.77%, with net interest income rising to $11,000,000, up $300,000 from the previous quarter [11] - Noninterest income decreased to $8,800,000 from $22,300,000 in Q4 2024, primarily due to a prior gain from a sale leaseback transaction [11][12] - Provision for credit losses was $4,400,000, slightly down from $4,500,000 in the previous quarter [14] Business Line Data and Key Metrics Changes - Loans held for investment grew by $18,300,000 or 1.7% during the quarter, with total loans held for investment at $1,290,000,000 [10] - The government guaranteed loan origination platform originated $106,300,000 in new loans, with $60,500,000 being BOLT loans, showing stability but falling short of targeted expectations [6] - The conventional loan portfolio grew by $140,000,000 or 26% year-over-year, totaling $686,000,000 at quarter end [19] Market Data and Key Metrics Changes - Total deposits decreased by $15,000,000 or 1.3% during the first quarter, ending at $1,130,000,000 [10] - Nonperforming assets to total assets increased to 1.94%, up from 1.47% year-over-year, driven by larger, well-collateralized loans [15] Company Strategy and Development Direction - The company is initiating a comprehensive strategic review aimed at derisking the balance sheet and positioning for long-term growth and enhanced shareholder value [8] - The focus is on improving credit quality, particularly for SBA loans, and enhancing credit risk management with new leadership additions [19] Management's Comments on Operating Environment and Future Outlook - Management noted challenges such as higher provision expenses, write-downs on loans, and lower loan demand due to economic conditions [4] - There is a commitment to resilience and innovation to align with the dynamic banking landscape [21] Other Important Information - The company has seen a consistent growth in community bank loans and core deposits, positioning itself as a premier community bank in Tampa Bay [6] - The tangible book value decreased slightly to $22.77 per share from $22.95 per share at the end of Q4 2024 [10] Q&A Session Summary Question: No questions were raised during the Q&A session - The operator noted that there were no questions, concluding the conference call [23]