BayFirst Financial Corp (BAFN, Financial) released its earnings report for the third quarter of 2023 on October 26, 2023. The company reported a net income of $1.9 million, marking a significant increase from $1.4 million in the second quarter of 2023. This represents the third consecutive quarter of earnings growth for the company.
Financial Performance
BayFirst Financial Corp (BAFN, Financial) reported a net income from continuing operations of $2.0 million for Q3 2023, compared to $1.4 million in Q2 2023 and $3.1 million in Q3 2022. The increase in earnings from continuing operations during Q3 2023 was primarily due to higher noninterest income of $3.7 million, or 34.2%, substantially attributable to an increase in gain on sale of government guaranteed loans of $1.1 million and an increase in the fair value gain on government guaranteed loans of $1.6 million.
Loan and Deposit Growth
The company's government guaranteed loan origination platform, CreditBench, originated $155.9 million in new government guaranteed loans during Q3 2023, an increase of 25.2% over the previous quarter. Loans held for investment, excluding PPP loans, increased by $42.2 million, or 5.1%, during Q3 2023 to $863.2 million. Deposits increased by $73.0 million, or 7.7%, during Q3 2023 to $1.02 billion.
Company's Commentary
BayFirst’s third quarter results reflect the continued progress in our efforts to fine tune our operations with third quarter net income increasing 39% over the prior quarter, highlighted by the strength of our community banking operations and record quarterly production by our CreditBench government guaranteed lending division," stated Anthony N. Leo, Chief Executive Officer.
Future Outlook
BayFirst Financial Corp (BAFN, Financial) continues to focus on becoming the premier community bank in the Tampa Bay market. The company opened its tenth banking center in Sarasota during Q3 2023 and expects to open its marquee office in the Sarasota area later this year.
Explore the complete 8-K earnings release (here) from BayFirst Financial Corp for further details.
