BayFirst Financial reports Q3 EPS 18c vs. 41c last year

Reports Q3 Net interest income from continuing operations was $9.4 million in the third quarter of 2024, an increase from $9.2 million during the second quarter of 2024, and an increase from $8.4 million during the third quarter of 2023. The net interest margin decreased by 9 basis points to 3.34% in the third quarter of 2024, from 3.43% in the second quarter of 2024. The increase in net interest income from continuing operations during the third quarter of 2024, as compared to the second quarter of 2024, was mainly due to an increase in loan interest income, including fees, of $1.0 million and a decrease in the interest cost on borrowings of $0.4 million, partially offset by higher interest cost on deposits of $1.2 million. The increase was partially offset by $0.3 million due to a one-time recognition of unamortized premium related to a purchased USDA government guaranteed loan which prepaid during the third quarter of 2024..”The highlight of the third quarter of 2024 was the 31% increase in net income compared to the preceding quarter, led by increases in net interest income and higher gain on sale of government guaranteed loans,” stated Thomas G. Zernick, Chief Executive Officer. “Our Government Guaranteed Lending team had another good quarter, producing $94.4 million in new government guaranteed loans; however, this volume was below both the second quarter of 2024 and the third quarter of 2023. Our team is focused on meeting loan origination targets, while also adhering to prudently conservative credit quality metrics. The result of these efforts is better profitability reflected in lower net charge-offs, lower expenses compared to the third quarter last year, and faster revenue growth than expense growth compared to the second quarter of this year. While we made progress this quarter, we have much more work to do to improve profitability and consistently demonstrate high performing characteristics.”