BayFirst suffers $3.7M hit from halting mortgage banking
October 29, 2022 - St. Petersburg-based BayFirst Financial took a $3.7 million one-time charge in the third quarter due to the company ending its nationwide mortgage banking operations. The decision resulted in a net loss of $1.4 million, or $0.35 per diluted share, for the third quarter compared to a net loss of $282 thousand, or $0.10 per diluted share, in the second quarter, according to the company's quarterly report. The second quarter loss included a $630 million charge for the closing of its consumer direct mortgage business. “The third quarter represented a significant transition for BayFirst as we exited our national mortgage lending business to focus our efforts on building the premier bank of Tampa Bay,” CEO Anthony Leo said in the report. “Supported by our top 10 SBA lending division CreditBench, and the investments we’ve made in an advanced technology platform, BayFirst is now poised to enter a new era of growth and profitability. Notwithstanding the significant charges associated with discontinuation of the mortgage lending division, we are extremely pleased with third quarter results, as net income from continuing operations was $3.1 million.” Leo highlighted several points of growth such as BayFirst's strong loan production from community banking and SBA lending. Loans held for investment, excluding PPP loans, were up by 7.9% during the quarter, and 31.6% compared to a year ago. SBA lending through its CreditBench division grew substantially, surpassing last quarter’s record levels, with SBA loan production of $139.2 million.