BayFirst Financial reports Q2 EPS 12c vs. 11 last year

Reports net income was $0.9m for the second quarter of 2024, compared to $0.8M in the first quarter of 2024 and $1.4M 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 $0.4M, a decrease in provision for credit losses of $1.1M and a decrease in noninterest expense of $1.2M partially offset by a decrease in noninterest income of $2.6M. The decrease in net income from the second quarter of 2023 was due to decreases in net interest income of $0.9Mn and gain on sale of government guaranteed loans of $0.4 million, partially offset by an increase in other noninterest income of $0.4M and lower compensation expense of $0.6 M. These efforts helped reduce net charge-offs during the quarter.” “Our CreditBench team worked hard to produce almost $100M 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.”