BayFirst Financial Corp. reported its financial results for the three and nine months ended September 30, 2024, highlighting significant changes in revenue, profitability, and strategic developments compared to the previous fiscal period.

For the three months ended September 30, 2024, the company recorded net income of $1,137,000, a decrease from $1,923,000 in the same period of 2023. This decline was attributed to a reduction in gains from government guaranteed loans and lower noninterest income, despite an increase in net interest income. Specifically, net interest income rose to $9,449,000 from $8,393,000 year-over-year, driven by higher interest income from loans. However, total noninterest income fell to $12,272,000 from $14,679,000, primarily due to decreased gains on the sale of government guaranteed loans.

For the nine months ended September 30, 2024, net income was $2,827,000, down from $4,047,000 in the prior year. The decrease was similarly linked to lower gains on loan sales and a slight decline in net interest income, which fell to $27,373,000 from $27,554,000. The basic earnings per common share for the nine-month period decreased to $0.42 from $0.89 in 2023.

Total assets increased to $1,245,099,000 as of September 30, 2024, compared to $1,117,766,000 at the end of 2023, driven by a rise in loans held for investment (HFI) which reached $941,818,000, up from $810,721,000. Total deposits also grew significantly to $1,112,196,000 from $985,138,000, reflecting a robust increase in customer deposits.

The company’s allowance for credit losses (ACL) increased to $14,186,000 from $13,365,000 year-over-year, indicating a proactive approach to managing potential loan defaults. Nonperforming loans rose to $15,489,000 from $9,518,000, reflecting challenges in the loan portfolio.

Strategically, BayFirst Financial Corp. continues to focus on its core business following the discontinuation of its nationwide residential mortgage loan segment in Q3 2022. The company remains classified as an emerging growth company, allowing it to defer the adoption of certain accounting standards until 2026.

In terms of capital adequacy, the company reported total capital of $115,123,000, exceeding regulatory requirements, with a total capital ratio of 11.39%. The company declared a cash dividend of $0.08 per common share for the fourth quarter of 2024, payable in December.

Overall, BayFirst Financial Corp. is navigating a challenging environment with a focus on maintaining asset quality and capital strength while adapting to market conditions.