Another bank is feeling the sting of Signature Bank’s failure.
BayFirst Financial in St. Petersburg, Fla., disclosed that a scheduled sale of $60 million of Small Business Administration 7(a) loans to Signature fell through, leaving it to rebid to another investor “during less-favorable market conditions.”
The $1.1 billion-asset company said the development resulted in gains from selling government-backed loans falling by $1.4 million in the first quarter from a quarter earlier.
“We have put the FDIC as receiver on notice of our claim for the differential in the gain,” Anthony Leo, BayFirst’s CEO, said during a conference call to discuss quarterly results. “While we can’t assess the likelihood of our claim being fully honored, we have received no indication to doubt it will be.”
Net income fell by 43% from a quarter earlier, to $739,000. The company earned $13,000 in the first quarter of 2022.
Deposits increased by 17.3% from the fourth quarter and by 21.1% from a year earlier, to $932.9 million.