The $889 million-asset
company said in a press release that it cut 65 jobs in the first quarter, including
62 within its residential mortgage division. BayFirst said the impact of the
layoffs will not be realized until the second quarter and beyond.
BayFirst also hired two large mortgage production teams earlier this month, which added
five loan production offices. The effort includes the LoanBud platform, which
is expected to offer mortgages and SBA loans to self-employed borrowers.
The company launched
a national SBA platform during the first quarter after hiring six lenders. The
additions are expected to boost loan production and revenue in coming quarters.
"As our business model adjusted over the past three quarters ... we began taking steps to right-size our residential lending team and overall expense structure," CEO Anthony Leo said in the release.
"We continued to invest in our future by recruiting SBA and residential production teams while continuing to advance our digital transformation," Leo added.
BayFirst said its
first-quarter earnings were impacted by a reduction in mortgage loan volume. It earned $13,000 in the quarter, compared with $7.5 million a year
earlier.
Originations in the residential
mortgage division fell by 53% from a year earlier, to $336 million.
SBA loan
originations were triple that of a year earlier, to $47.3 million (but they
were down 20% from the fourth quarter).
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