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Analysts Estimate Bay Commercial Bank (BCML) to Report a Decline in Earnings: What to Look Out for
ZACKS· 2025-10-09 15:01
Wall Street expects a year-over-year decline in earnings on lower revenues when Bay Commercial Bank (BCML) reports results for the quarter ended September 2025. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, t ...
Is the Options Market Predicting a Spike in BayCom Stock?
ZACKS· 2025-09-04 13:55
Group 1 - BayCom Corp (BCML) is experiencing significant activity in the options market, particularly with the Sep 19, 2025 $22.50 Put showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts currently rate BayCom as a Zacks Rank 3 (Hold) within the Banks - West industry, which is in the top 28% of the Zacks Industry Rank, with no upward revisions in earnings estimates over the last 60 days [3] Group 2 - The high implied volatility for BayCom shares may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay [4] - The Zacks Consensus Estimate for BayCom's current quarter earnings has slightly increased from 52 cents to 53 cents per share, despite one analyst revising estimates downward [3]
4 Bank Stocks With Dividend Hikes This Week to Keep on Your Radar
ZACKS· 2025-08-22 15:36
Core Insights - Equity markets have experienced volatility in August after a strong performance since mid-June, influenced by tariff policies and inflationary pressures [1] - Investors are advised to focus on stocks with a history of steady dividend payouts to protect their portfolios during market fluctuations [2] Investment Opportunities - Four small and mid-cap banks have recently announced dividend increases: Bank7 Corp. (BSVN), Unity Bancorp, Inc. (UNTY), Stock Yards Bancorp, Inc. (SYBT), and BayCom Corp (BCML) [3] - These banks have consistently raised their quarterly dividends, contributing to enhanced shareholder value, with stock prices increasing over 15% in the past year [3] Company Summaries - **Bank7 Corp. (BSVN)**: - Operates in Oklahoma, Texas, and Kansas with $1.83 billion in assets as of June 30, 2025 [7] - Announced a quarterly cash dividend of $0.27 per share, a 12.5% increase, with a forward dividend yield of 2.33% and a payout ratio of 21% [8] - Expected sales decline of 2.4% and earnings decrease of 13.4% in 2025 [9] - **Unity Bancorp, Inc. (UNTY)**: - Based in New Jersey with $2.93 billion in assets as of June 30, 2025 [11] - Increased its quarterly cash dividend to $0.15 per share, a 7.1% rise, with a forward dividend yield of 1.24% and a payout ratio of 12% [12] - Projected sales growth of 16.5% and earnings growth of 20.9% in 2025 [12] - **Stock Yards Bancorp, Inc. (SYBT)**: - Headquartered in Louisville, KY, providing services in Kentucky, Indiana, and Ohio [13] - Announced a dividend of $0.32 per share, a 3.2% increase, with a forward dividend yield of 1.66% and a payout ratio of 29% [14] - Anticipated sales growth of 11.1% and earnings growth of 17.2% in 2025 [14] - **BayCom Corp (BCML)**: - Operates through United Business Bank with $2.62 billion in assets as of June 30, 2025 [15] - Increased its quarterly cash dividend to $0.25 per share, a 25% rise, with a forward dividend yield of 3.53% and a payout ratio of 37% [16] - Expected sales growth of 3.6% and earnings growth of 5.2% in 2025 [17]
Bay p(BCML) - 2025 Q2 - Quarterly Report
2025-08-11 19:33
PART I — FINANCIAL INFORMATION This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis for BayCom Corp [Item 1. Financial Statements](index=2&type=section&id=Item%201.%20Financial%20Statements) This section presents BayCom Corp's unaudited condensed consolidated financial statements and detailed notes for Q2 2025 and FY2024 [Condensed Consolidated Balance Sheets (unaudited)](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20(unaudited)) This table provides a snapshot of BayCom Corp's financial position, detailing assets, liabilities, and equity at specific dates | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Total assets | **$2,622,379** | **$2,664,508** | **$(42,129)** | -1.58% | | Cash and cash equivalents | **$291,624** | **$364,032** | **$(72,408)** | -19.89% | | Investment securities AFS | **$184,682** | **$193,328** | **$(8,646)** | -4.47% | | Loans, net | **$1,981,549** | **$1,934,996** | **$46,553** | 2.40% | | Total liabilities | **$2,291,817** | **$2,340,142** | **$(48,325)** | -2.06% | | Noninterest and interest bearing deposits | **$2,186,634** | **$2,234,009** | **$(47,375)** | -2.12% | | Total shareholders' equity | **$330,562** | **$324,366** | **$6,196** | 1.91% | [Condensed Consolidated Statements of Income (unaudited)](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20(unaudited)) This table presents BayCom Corp's financial performance, detailing revenues, expenses, and net income for the periods | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :-------------------- | :------- | | Total interest and dividend income | **$33,453** | **$32,406** | **$1,047** | 3.23% | | Total interest expense | **$10,293** | **$10,111** | **$182** | 1.80% | | Net interest income | **$23,160** | **$22,295** | **$865** | 3.88% | | Provision for credit losses | **$203** | **$171** | **$32** | 18.71% | | Total noninterest income | **$1,513** | **$1,483** | **$30** | 2.02% | | Total noninterest expense | **$15,754** | **$16,012** | **$(258)** | -1.61% | | Net income | **$6,364** | **$5,600** | **$764** | 13.64% | | Basic earnings per common share | **$0.58** | **$0.50** | **$0.08** | 16.00% | | Diluted earnings per common share | **$0.58** | **$0.50** | **$0.08** | 16.00% | | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :-------------------- | :------- | | Total interest and dividend income | **$66,099** | **$64,150** | **$1,949** | 3.04% | | Total interest expense | **$20,059** | **$19,448** | **$611** | 3.14% | | Net interest income | **$46,040** | **$44,702** | **$1,338** | 2.99% | | Provision for credit losses | **$845** | **$423** | **$422** | 99.76% | | Total noninterest income | **$2,953** | **$3,545** | **$(592)** | -16.70% | | Total noninterest expense | **$31,743** | **$32,083** | **$(340)** | -1.06% | | Net income | **$12,066** | **$11,477** | **$589** | 5.13% | | Basic earnings per common share | **$1.09** | **$1.01** | **$0.08** | 7.92% | | Diluted earnings per common share | **$1.09** | **$1.01** | **$0.08** | 7.92% | [Condensed Consolidated Statements of Comprehensive Income (unaudited)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(unaudited)) This table outlines BayCom Corp's total comprehensive income, including net income and other comprehensive income components | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :-------------------- | :------- | | Net income | **$6,364** | **$5,600** | **$764** | 13.64% | | Other comprehensive income, net of tax | **$789** | **$506** | **$283** | 55.93% | | Total comprehensive income | **$7,153** | **$6,106** | **$1,047** | 17.15% | | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :-------------------- | :------- | | Net income | **$12,066** | **$11,477** | **$589** | 5.13% | | Other comprehensive income, net of tax | **$2,884** | **$990** | **$1,894** | 191.31% | | Total comprehensive income | **$14,950** | **$12,467** | **$2,483** | 19.92% | [Condensed Consolidated Statements of Changes in Shareholders' Equity (unaudited)](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity%20(unaudited)) This table details changes in BayCom Corp's shareholders' equity, including net income, dividends, and share repurchases | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | | Balance, April 1 | **$329,337** | **$314,235** | | Net income | **$6,364** | **$5,600** | | Other comprehensive income, net | **$789** | **$506** | | Cash dividends paid | **$(2,197)** | **$(1,109)** | | Stock based compensation | **$151** | **$164** | | Repurchase of shares | **$(3,881)** | **$(4,131)** | | Balance, June 30 | **$330,562** | **$315,265** | | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | | Balance, January 1 | **$324,366** | **$312,869** | | Net income | **$12,066** | **$11,477** | | Other comprehensive income, net | **$2,884** | **$990** | | Cash dividends paid | **$(3,869)** | **$(2,266)** | | Stock based compensation | **$302** | **$324** | | Repurchase of shares | **$(5,187)** | **$(8,129)** | | Balance, June 30 | **$330,562** | **$315,265** | [Condensed Consolidated Statements of Cash Flows (unaudited)](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows%20(unaudited)) This table summarizes BayCom Corp's cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | | Net cash provided by operating activities | **$15,648** | **$12,751** | | Net cash (used in) provided by investing activities | **$(33,825)** | **$39,415** | | Net cash (used in) provided by financing activities | **$(54,231)** | **$31,503** | | (Decrease) increase in cash and cash equivalents | **$(72,408)** | **$83,669** | | Cash and cash equivalents at end of period | **$291,624** | **$391,208** | [Notes to Condensed Consolidated Financial Statements (unaudited)](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements%20(unaudited)) This section provides detailed explanations and disclosures supporting the condensed consolidated financial statements [NOTE 1 – BASIS OF PRESENTATION](index=13&type=section&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION) BayCom Corp operates through United Business Bank across five states, with unaudited financials prepared per Form 10-Q - BayCom Corp operates through United Business Bank, a California state-chartered bank with **34** full-service branches across California, Nevada, Washington, New Mexico, and Colorado as of June 30, 2025[23](index=23&type=chunk) - The unaudited condensed consolidated financial statements are prepared in accordance with Form 10-Q and include all normal and recurring adjustments necessary for fair presentation[24](index=24&type=chunk)[25](index=25&type=chunk) [NOTE 2 - ACCOUNTING GUIDANCE NOT YET EFFECTIVE AND ADOPTED ACCOUNTING GUIDANCE](index=13&type=section&id=NOTE%202%20-%20ACCOUNTING%20GUIDANCE%20NOT%20YET%20EFFECTIVE%20AND%20ADOPTED%20ACCOUNTING%20GUIDANCE) The Company adopted ASU 2023-07 with no material impact and is evaluating other ASUs not expected to be material - ASU No. 2023-07, Segment Reporting, adopted for annual periods beginning after December 15, 2023, did not have a material effect on the Company's consolidated financial statements[26](index=26&type=chunk) - The Company is evaluating ASU 2023-05 (Business Combinations—Joint Venture Formations) and ASU 2023-09 (Income Taxes—Improvements to Income Tax Disclosures), neither of which are expected to have a material effect on its consolidated financial statements[27](index=27&type=chunk)[30](index=30&type=chunk) [NOTE 3 – INVESTMENT SECURITIES](index=15&type=section&id=NOTE%203%20%E2%80%93%20INVESTMENT%20SECURITIES) AFS securities decreased to **$184.7 million**, with **$14.7 million** gross unrealized losses, while equity securities saw a slight decline | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Investment securities AFS, at fair value | **$184,682** | **$193,328** | | Gross unrealized gains (AFS) | **$501** | **$359** | | Gross unrealized losses (AFS) | **$(14,653)** | **$(18,544)** | | Equity securities, at fair value | **$12,872** | **$13,120** | - At June 30, 2025, the Company held **328** AFS securities, with **186** in an unrealized loss position for more than twelve months and **35** for less than twelve months. Management anticipates full recovery of amortized cost, attributing declines primarily to interest rate changes, not credit quality[36](index=36&type=chunk)[40](index=40&type=chunk) | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | | Net gain (loss) on equity securities | **$7** | **$(321)** | | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | | Net gain (loss) on equity securities | **$(248)** | **$252** | [NOTE 4 – LOANS](index=19&type=section&id=NOTE%204%20%E2%80%93%20LOANS) Net loans grew to **$1.98 billion**, but nonaccrual loans increased to **$13.5 million** due to credit deterioration | Loan Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | % Change | | :------------------------ | :----------------------------- | :------------------------------- | :-------------------- | :------- | | Commercial and industrial | **$182,153** | **$173,948** | **$8,205** | 4.72% | | Construction and land | **$2,589** | **$1,515** | **$1,074** | 70.89% | | Commercial real estate | **$1,708,715** | **$1,667,231** | **$41,484** | 2.49% | | Residential | **$105,555** | **$109,662** | **$(4,107)** | -3.75% | | Consumer | **$611** | **$391** | **$220** | 56.27% | | Total loans | **$1,999,623** | **$1,952,747** | **$46,876** | 2.40% | | Net loans | **$1,981,549** | **$1,934,996** | **$46,553** | 2.40% | - Nonaccrual loans increased to **$13.5 million** at June 30, 2025, from **$9.2 million** at December 31, 2024, reflecting borrower-specific credit deterioration, primarily in commercial and industrial and commercial real estate portfolios[63](index=63&type=chunk) - At June 30, 2025, **$2.9 million** of loans were **90 days** or more past due and still accruing, with **$2.8 million** of these fully guaranteed by government agencies[65](index=65&type=chunk) - The Company had **$1.05 billion** in qualifying loans pledged to FHLB and **$73.2 million** pledged to FRB of San Francisco at June 30, 2025[67](index=67&type=chunk) [NOTE 5 – ALLOWANCE FOR CREDIT LOSSES FOR LOANS](index=29&type=section&id=NOTE%205%20%E2%80%93%20ALLOWANCE%20FOR%20CREDIT%20LOSSES%20FOR%20LOANS) ACL for loans increased to **$18.7 million** due to loan growth and reserve increases, with minimal net charge-offs | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Allowance for credit losses (ACL) | **$18,700** | **$17,900** | | Reserve for unfunded commitments | **$530** | **$600** | - For the three months ended June 30, 2025, net charge-offs were **$13,000**, compared to **$76,000** for the same period in 2024[69](index=69&type=chunk) - For the six months ended June 30, 2025, net charge-offs totaled **$115,000**, significantly lower than **$3.5 million** for the same period in 2024[70](index=70&type=chunk) - The increase in ACL was mainly driven by loan growth, an increase in the reserve for pooled loans, an increase in the reserve for individually evaluated loans, and the replenishment of the allowance, reflecting changes in portfolio mix and updated economic forecasts[70](index=70&type=chunk) [NOTE 6 – PREMISES AND EQUIPMENT](index=35&type=section&id=NOTE%206%20%E2%80%93%20PREMISES%20AND%20EQUIPMENT) Net premises and equipment slightly increased to **$13.7 million**, with consistent depreciation and amortization expenses | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total premises and equipment, net | **$13,686** | **$13,386** | | Depreciation and amortization (3 months) | **$496** | **$518** | | Depreciation and amortization (6 months) | **$1,000** | **$1,000** | [NOTE 7 – LEASES](index=35&type=section&id=NOTE%207%20%E2%80%93%20LEASES) The Company leases **19 branches**, with lease liabilities of **$14.1 million** and a weighted-average term of **4.3 years** - The Company leases **19 branches** under noncancelable operating leases, with maturities through 2030[76](index=76&type=chunk) | Metric | June 30, 2025 | | :-------------------------------- | :------------ | | Present value of lease payments | **$14,120** (in thousands) | | Weighted-average remaining lease term | **4.3 years** | | Weighted-average discount rate | **3.9 %** | | Metric | Three months ended June 30, 2025 (in thousands) | Six months ended June 30, 2025 (in thousands) | | :-------------------------------- | :------------------------------------ | :---------------------------------- | | Total operating lease cost, net | **$1,016** | **$2,037** | [NOTE 8 – GOODWILL AND INTANGIBLE ASSETS](index=36&type=section&id=NOTE%208%20%E2%80%93%20GOODWILL%20AND%20INTANGIBLE%20ASSETS) Goodwill remained stable at **$38.8 million**, while core deposit intangible decreased to **$2.2 million** due to amortization | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Goodwill | **$38,838** | **$38,838** | | Core deposit intangible, net | **$2,187** | **$2,693** | - Core deposit intangible amortization for the six months ended June 30, 2025, was **$506,000**[82](index=82&type=chunk) [NOTE 9 – INTEREST RECEIVABLE AND OTHER ASSETS](index=38&type=section&id=NOTE%209%20%E2%80%93%20INTEREST%20RECEIVABLE%20AND%20OTHER%20ASSETS) Interest receivable and other assets decreased to **$38.7 million**, including tax assets and accrued interest | Asset Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Tax assets, net | **$15,681** | **$16,048** | | Accrued interest receivable | **$8,127** | **$8,507** | | Investment in SBIC fund | **$2,905** | **$3,241** | | Investment in LIHTC partnerships, net | **$3,694** | **$4,035** | | CalCAP reserve receivable | **$1,375** | **$4,023** | | Total interest receivable and other assets | **$38,712** | **$43,718** | [NOTE 10 – DEPOSITS](index=38&type=section&id=NOTE%2010%20%E2%80%93%20DEPOSITS) Total deposits decreased to **$2.19 billion**, with noninterest-bearing demand deposits declining and brokered deposits eliminated | Deposit Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Demand deposits (noninterest bearing) | **$616,096** | **$688,996** | | NOW accounts | **$279,139** | **$261,430** | | Savings | **$76,179** | **$82,300** | | Money market | **$658,384** | **$644,880** | | Time deposits | **$556,835** | **$556,403** | | Total deposits | **$2,186,634** | **$2,234,009** | - Uninsured deposits totaled **$1.0 billion** (**47.0%** of total deposits) at June 30, 2025, compared to **$1.0 billion** (**46.8%**) at December 31, 2024[86](index=86&type=chunk) - Brokered deposits decreased from **$35.5 million** at December 31, 2024, to zero at June 30, 2025[86](index=86&type=chunk) [NOTE 11 – BORROWINGS](index=40&type=section&id=NOTE%2011%20%E2%80%93%20BORROWINGS) The Company maintained substantial unused borrowing capacity from FHLB, FRB, and Federal Funds lines, with no outstanding balances | Borrowing Facility | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :-------------------------------- | :---------------------------- | :------------------------------ | | FHLB borrowing capacity | **$581.6** | **$540.2** | | FRB borrowing capacity | **$40.3** | **$41.9** | | Federal Funds lines | **$65.0** | **$65.0** | | Junior subordinated deferrable interest debentures, net | **$8.7** | **$8.6** | | Subordinated debt, net | **$63.8** | **$63.7** | - No FHLB, FRB, or Federal Funds borrowings were outstanding at June 30, 2025, or December 31, 2024[87](index=87&type=chunk)[88](index=88&type=chunk)[89](index=89&type=chunk) [NOTE 12 – INTEREST PAYABLE AND OTHER LIABILITIES](index=40&type=section&id=NOTE%2012%20%E2%80%93%20INTEREST%20PAYABLE%20AND%20OTHER%20LIABILITIES) Total interest payable and other liabilities decreased to **$13.7 million**, driven by lower accrued expenses and other liabilities | Liability Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Accrued expenses | **$7,594** | **$7,797** | | Reserve for unfunded commitments | **$530** | **$600** | | Accrued interest payable | **$3,129** | **$3,118** | | Other liabilities | **$1,870** | **$2,503** | | Total | **$13,696** | **$14,632** | [NOTE 13 – OTHER EXPENSES](index=41&type=section&id=NOTE%2013%20%E2%80%93%20OTHER%20EXPENSES) Total other expenses decreased due to reductions in professional fees and loan default-related expenses | Expense Type | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | | Professional fees | **$512** | **$673** | | Core deposit premium amortization | **$242** | **$305** | | Marketing and promotions | **$252** | **$246** | | Loan default related expense | **$(141)** | **$148** | | Total other expense | **$1,930** | **$2,587** | | Expense Type | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | | Professional fees | **$1,048** | **$1,260** | | Core deposit premium amortization | **$506** | **$611** | | Marketing and promotions | **$409** | **$369** | | Loan default related expense | **$(151)** | **$158** | | Total other expense | **$3,995** | **$4,715** | [NOTE 14 – EQUITY INCENTIVE PLANS](index=41&type=section&id=NOTE%2014%20%E2%80%93%20EQUITY%20INCENTIVE%20PLANS) The 2024 Omnibus Equity Incentive Plan has **264,855 shares** available for future issuance as of June 30, 2025 - The 2024 Omnibus Equity Incentive Plan, approved in June 2024, allows for the grant of various equity incentive awards to employees and directors[94](index=94&type=chunk) - As of June 30, 2025, **264,855 shares** were available for future issuance under the 2024 Plan[95](index=95&type=chunk) | Restricted Stock Activity | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Non-vested at January 1 | **74,346 shares** | **81,365 shares** | | Granted | **22,221 shares** | **24,471 shares** | | Vested | (**20,568**) shares | (**19,927**) shares | | Forfeited | (**3,221**) shares | (**505**) shares | | Non-Vested, at June 30 | **72,778 shares** | **85,404 shares** | [NOTE 15 – FAIR VALUE MEASUREMENT](index=43&type=section&id=NOTE%2015%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENT) Fair value measurements categorize assets and liabilities into Level 1, 2, or 3, with no transfers between levels - Fair value measurements are categorized into Level 1 (quoted prices in active markets), Level 2 (observable inputs other than Level 1), and Level 3 (unobservable inputs)[99](index=99&type=chunk)[100](index=100&type=chunk)[101](index=101&type=chunk) | Asset Type (June 30, 2025) | Total Estimated Fair Value (in thousands) | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | | :-------------------------------- | :------------------------------------ | :--------------------- | :--------------------- | :--------------------- | | U.S. Government Agencies | **$1,779** | **$—** | **$1,779** | **$—** | | Municipal securities | **$21,401** | **$—** | **$21,401** | **$—** | | Mortgage-backed securities | **$48,270** | **$—** | **$48,270** | **$—** | | Corporate bonds | **$66,492** | **$—** | **$66,492** | **$—** | | Equity securities | **$12,872** | **$12,872** | **$—** | **$—** | | Total | **$197,554** | **$12,872** | **$184,682** | **$—** | | Asset Type (June 30, 2025) | Total Estimated Fair Value (in thousands) | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | | :-------------------------------- | :------------------------------------ | :--------------------- | :--------------------- | :--------------------- | | Individually evaluated loans | **$12,492** | **$—** | **$—** | **$12,492** | [NOTE 16 – FAIR VALUE OF FINANCIAL INSTRUMENTS](index=47&type=section&id=NOTE%2016%20%E2%80%93%20FAIR%20VALUE%20OF%20FINANCIAL%20INSTRUMENTS) This note details the carrying amounts and estimated fair values of financial instruments across the fair value hierarchy | Financial Instrument (June 30, 2025) | Carrying amount (in thousands) | Fair value (in thousands) | Level 1 (in thousands) | Level 2 (in thousands) | Level 3 (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------ | :--------------------- | :--------------------- | :--------------------- | | Cash and cash equivalents | **$291,624** | **$291,624** | **$291,624** | **$—** | **$—** | | Investment securities AFS | **$184,682** | **$184,682** | **$—** | **$184,682** | **$—** | | Equity securities | **$12,872** | **$12,872** | **$12,872** | **$—** | **$—** | | Loans, net | **$1,981,549** | **$1,935,000** | **$—** | **$—** | **$1,935,000** | | Deposits | **$2,186,634** | **$2,194,657** | **$—** | **$2,194,657** | **$—** | | Junior subordinated deferrable interest debentures, net | **$8,686** | **$8,452** | **$—** | **$—** | **$8,452** | | Subordinated debt, net | **$63,821** | **$63,821** | **$—** | **$63,821** | **$—** | | Undisbursed loan commitments, lines of credit, standby letters of credit | **$65,914** | **$65,384** | **$—** | **$—** | **$65,384** | [NOTE 17 – COMMITMENTS AND CONTINGENCIES](index=48&type=section&id=NOTE%2017%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) No material legal proceedings are pending, with total commitments decreasing to **$65.9 million** and a concentration in commercial real estate loans - The Company is not a party to any pending legal proceedings that it believes would have a material adverse effect on its financial condition or results of operations[112](index=112&type=chunk)[264](index=264&type=chunk) | Commitment Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Commitments to extend credit | **$64,557** | **$72,737** | | Standby letters of credit | **$1,357** | **$677** | | Total commitments | **$65,914** | **$73,414** | - At June 30, 2025, a concentration of loans existed in commercial real estate related loans[116](index=116&type=chunk) - At June 30, 2025, the top ten depositors accounted for approximately **$245.2 million**, or **11.2%**, of the Company's total deposits[119](index=119&type=chunk) [NOTE 18 – SEGMENT INFORMATION](index=50&type=section&id=NOTE%2018%20%E2%80%93%20SEGMENT%20INFORMATION) The Company operates as a single banking segment, with performance assessed by the CEO using consolidated financial metrics - The Company operates as one reportable segment: banking operations, generating revenue primarily from loans, securities, deposits, and non-interest income[121](index=121&type=chunk) - The Chief Operating Decision Maker (CODM) is the Chief Executive Officer, who evaluates consolidated balance sheets, income statements, and net interest margin analyses[122](index=122&type=chunk) [NOTE 19 – SUBSEQUENT EVENTS](index=51&type=section&id=NOTE%2019%20%E2%80%93%20SUBSEQUENT%20EVENTS) No subsequent events requiring adjustments or disclosures were identified through the filing date of this Form 10-Q - No subsequent events requiring adjustments or disclosures were identified through the filing of this Quarterly Report on Form 10-Q[125](index=125&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=51&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial condition and results for Q2 2025 and 2024, covering income, expenses, and capital [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=51&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This cautionary note highlights risks and uncertainties that could cause actual results to differ from forward-looking statements - Forward-looking statements are based on current management expectations and involve risks and uncertainties that could cause actual results to differ materially[126](index=126&type=chunk)[127](index=127&type=chunk) - Key risk factors include adverse economic conditions, changes in interest rates, credit risks of lending, unexpected outflows of uninsured deposits, regulatory changes, and challenges related to acquisition strategy and technological advancements[127](index=127&type=chunk)[132](index=132&type=chunk) [Executive Overview](index=55&type=section&id=Executive%20Overview) BayCom Corp, operating through United Business Bank, aims for shareholder value through growth, with **$2.6 billion** in assets - BayCom Corp's principal business objective is to enhance shareholder value and generate consistent earnings growth through strategic acquisitions and organic expansion of its commercial banking franchise[131](index=131&type=chunk) - The Company's geographic footprint provides access to low-cost, stable core deposits to fund commercial loan growth[134](index=134&type=chunk) | Metric | June 30, 2025 (in millions) | | :-------------------------------- | :-------------------------- | | Total assets | **$2,600** | | Total loans | **$2,000** | | Total deposits | **$2,200** | | Shareholders' equity | **$330.6** | - At June 30, 2025, **13.1%** of the total loan portfolio (**$261.5 million**) was acquired through business combinations, while **86.9%** (**$1.7 billion**) consisted of originated or purchased loans[135](index=135&type=chunk) [Net Interest Income](index=57&type=section&id=Net%20Interest%20Income) Net interest income, a key profitability driver, is influenced by interest rates, asset yields, and liability costs - Net interest income is the difference between interest earned on interest-earning assets and interest paid on interest-bearing liabilities, less provision for credit losses[136](index=136&type=chunk)[137](index=137&type=chunk) - The Federal Open Market Committee (FOMC) lowered the target range for the federal funds rate three times in the second half of 2024, reaching **4.25%** to **4.50%** by June 30, 2025[138](index=138&type=chunk) [Noninterest Income](index=57&type=section&id=Noninterest%20Income) Noninterest income includes service charges, gains/losses on loan sales, equity securities, and other miscellaneous income - Noninterest income sources include service charges on loans and deposits, gain on sale of loans (e.g., SBA loans), gain (loss) on equity securities, and other noninterest income[139](index=139&type=chunk) [Provision for Credit Losses](index=57&type=section&id=Provision%20for%20Credit%20Losses) The Company establishes ACL for loans and AFS securities, reflecting estimated credit losses and impairment assessments - The allowance for credit losses is established by charging amounts to provision for credit losses to reflect estimated credit losses in the loan and available-for-sale investment securities portfolios[140](index=140&type=chunk) - For AFS debt securities, impairment is evaluated based on credit loss or changes in required yields, considering factors like security nature, government guarantees, issuer creditworthiness, and management's intent to sell[141](index=141&type=chunk)[143](index=143&type=chunk) [Noninterest Expense](index=59&type=section&id=Noninterest%20Expense) Noninterest expense includes salaries, occupancy, data processing, and professional fees, increasing with business growth - Noninterest expense includes salaries and related benefits, occupancy and equipment expense, data processing, FDIC and state assessments, outside and professional services, and amortization of intangible assets[144](index=144&type=chunk) - Noninterest expenses have increased significantly over the past few years due to growth through acquisitions and organic expansion, and the build-out of operational infrastructure[144](index=144&type=chunk) [Critical Accounting Policies and Estimates](index=59&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) The allowance for credit losses is a critical accounting policy, with no material changes since the 2024 Annual Report - The determination of the allowance for credit losses and related provision is identified as a critical accounting policy and estimate[146](index=146&type=chunk) - There have been no material changes in the Company's critical accounting policies and estimates as previously disclosed in the 2024 Annual Report[147](index=147&type=chunk) [Comparison of Financial Condition at June 30, 2025 and December 31, 2024](index=59&type=section&id=Comparison%20of%20Financial%20Condition%20at%20June%2030,%202025%20and%20December%2031,%202024) This section analyzes changes in balance sheet items, including assets, liabilities, and equity, between 2024 and 2025 [Total Assets](index=59&type=section&id=Total%20Assets) Total assets decreased by **$42.1 million** to **$2.6 billion** at June 30, 2025, primarily due to lower cash - Total assets decreased by **$42.1 million**, or **1.6%**, to **$2.6 billion** at June 30, 2025, from December 31, 2024[148](index=148&type=chunk) - The decrease was primarily due to a **$72.4 million** decline in cash and cash equivalents and a **$2.2 million** decline in loans held for sale, partially offset by a **$47.4 million** increase in net loans receivable[148](index=148&type=chunk) [Cash and Cash Equivalents](index=61&type=section&id=Cash%20and%20Cash%20Equivalents) Cash and cash equivalents decreased by **$72.4 million** to **$291.6 million** due to funding loan growth and withdrawals - Cash and cash equivalents decreased by **$72.4 million**, or **19.9%**, to **$291.6 million** at June 30, 2025, from **$364.0 million** at December 31, 2024[150](index=150&type=chunk) - The decrease was primarily due to a **$71.0 million** decrease in federal funds sold and interest-bearing balances in banks, as excess funds were used to fund loan growth and deposit withdrawals[150](index=150&type=chunk) [Investment Securities Available-for-Sale](index=61&type=section&id=Investment%20Securities%20Available-for-Sale) AFS securities decreased by **$8.6 million** to **$184.7 million** due to maturities and repayments, partially offset by purchases - Investment securities available-for-sale decreased by **$8.6 million**, or **4.5%**, to **$184.7 million** at June 30, 2025, from **$193.3 million** at December 31, 2024[151](index=151&type=chunk) - The decrease was primarily due to routine maturities, principal repayments, and calls of investment securities, partially offset by purchases and an upward fair value adjustment[151](index=151&type=chunk) | Maturity | Amortized Cost (in thousands) | Weighted Average Yield | | :-------------------------------- | :---------------------------- | :--------------------- | | One Year or Less | **$889** | **2.89 %** | | Over One to Five Years | **$20,924** | **3.69 %** | | Over Five to Ten Years | **$90,665** | **4.00 %** | | Over Ten Years | **$86,356** | **4.57 %** | | Total | **$198,834** | **4.21 %** | [Equity Securities](index=61&type=section&id=Equity%20Securities) Equity securities decreased by **$255,000** to **$12.9 million** due to mark-to-market downward adjustments - Equity securities decreased by **$255,000**, or **1.9%**, to **$12.9 million** at June 30, 2025, from **$13.1 million** at December 31, 2024[153](index=153&type=chunk) - The decrease was primarily due to mark-to-market downward adjustments recorded during the six months ended June 30, 2025[153](index=153&type=chunk) [Loans Receivable, Net](index=61&type=section&id=Loans%20Receivable,%20Net) Total loans increased by **$47.4 million** to **$2.0 billion**, driven by new originations and purchases - Total loans increased by **$47.4 million**, or **2.4%**, to **$2.0 billion** at June 30, 2025, from **$1.9 billion** at December 31, 2024[154](index=154&type=chunk) - The increase was due to **$227.2 million** of new loan originations and **$20.6 million** of loan purchases, partially offset by **$199.8 million** of loan repayments and **$3.4 million** of loans sold[154](index=154&type=chunk) | Loan Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | % Change | | :------------------------ | :----------------------------- | :------------------------------- | :------- | | Commercial and industrial | **$182,153** | **$173,948** | **4.7 %** | | Residential | **$105,394** | **$109,409** | (**3.7**) % | | Multifamily residential | **$251,669** | **$222,932** | **12.9 %** | | Owner occupied CRE | **$484,685** | **$490,493** | (**1.2**) % | | Non-owner occupied CRE | **$955,145** | **$931,615** | **2.5 %** | | Construction and land | **$2,589** | **$1,509** | **71.6 %** | | Consumer | **$611** | **$391** | **56.3 %** | | PCD loans | **$17,377** | **$22,450** | (**22.6**) % | | Total Loans | **$1,999,623** | **$1,952,747** | **2.4 %** | - As of June 30, 2025, acquired non-PCD loans totaled **$123.5 million**, and acquired PCD loans totaled **$18.0 million**[161](index=161&type=chunk)[162](index=162&type=chunk) [Nonperforming Assets and Loans](index=64&type=section&id=Nonperforming%20Assets%20and%20Loans) Nonperforming assets and loans increased to **$16.4 million**, primarily due to new nonaccrual commercial real estate loans - Nonperforming assets increased by **$6.9 million** to **$16.4 million** (**0.62%** of total assets) at June 30, 2025, from **$9.5 million** (**0.36%** of total assets) at December 31, 2024[163](index=163&type=chunk)[170](index=170&type=chunk) - Nonperforming loans totaled **$16.4 million** (**0.82%** of total loans) at June 30, 2025, compared to **$9.5 million** (**0.48%** of total loans) at December 31, 2024[164](index=164&type=chunk)[170](index=170&type=chunk) - The increase in nonperforming loans was primarily due to seven new commercial real estate loans (**$5.2 million**) placed on nonaccrual status and a **$2.8 million** increase in loans **90 days** or more past due and still accruing[164](index=164&type=chunk) - Government-guaranteed nonaccrual loans decreased to **$610,000** at June 30, 2025, from **$2.0 million** at December 31, 2024[165](index=165&type=chunk) | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | | :-------------------------------- | :------------------------------------ | :------------------------------------ | | Interest foregone on nonaccrual loans | **$370** | **$226** | | Interest income recognized on nonaccrual loans | **$31** | **$79** | | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :-------------------------------- | :---------------------------------- | :---------------------------------- | | Interest foregone on nonaccrual loans | **$639** | **$709** | | Interest income recognized on nonaccrual loans | **$66** | **$86** | [Allowance for Credit Losses for Loans](index=66&type=section&id=Allowance%20for%20Credit%20Losses%20for%20Loans) ACL for loans increased to **$18.7 million** (**0.94%** of total loans) due to loan growth and reserve increases - The allowance for credit losses for loans increased to **$18.7 million** (**0.94%** of total loans) at June 30, 2025, from **$17.9 million** (**0.92%** of total loans) at December 31, 2024[175](index=175&type=chunk) - The increase was primarily due to loan growth, an increase in the reserve for pooled loans, an increase in the reserve for individually evaluated loans, and replenishment of the allowance[176](index=176&type=chunk) - Net charge-offs were **$13,000** for the three months ended June 30, 2025, compared to **$76,000** for the same period in 2024[177](index=177&type=chunk) - Net charge-offs totaled **$115,000** for the six months ended June 30, 2025, significantly lower than **$3.5 million** for the same period in 2024[177](index=177&type=chunk) | Credit Ratio (at and for six months ended June 30) | 2025 | 2024 | | :------------------------------------------------- | :----- | :----- | | Allowance for credit losses for loans as a percentage of total loans outstanding | **0.93 %** | **1.02 %** | | Nonaccrual loans as a percentage of total loans outstanding | **0.67 %** | **0.87 %** | | Allowance for credit losses for loans as a percentage of nonaccrual loans | **138.82 %** | **117.81 %** | | Total net charge-offs to total average loans outstanding | **0.01 %** | **0.18 %** | [Deposits](index=70&type=section&id=Deposits) Total deposits decreased by **$47.4 million** to **$2.2 billion**, with noninterest-bearing demand deposits declining - Total deposits decreased by **$47.4 million**, or **2.1%**, to **$2.2 billion** at June 30, 2025, from December 31, 2024[181](index=181&type=chunk) - Noninterest-bearing demand deposits decreased by **$72.9 million** to **$616.1 million** (**28.2%** of total deposits) at June 30, 2025, from **$689.0 million** (**30.8%**) at December 31, 2024[181](index=181&type=chunk) - Time deposits increased by **$432,000**, while money market accounts increased by **$13.5 million** and NOW and savings accounts increased by **$11.6 million**[181](index=181&type=chunk) - Brokered deposits in time deposits decreased from **$35.5 million** at December 31, 2024, to zero at June 30, 2025[181](index=181&type=chunk) | Deposit Type | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | % Change | | :-------------------------------- | :----------------------------- | :------------------------------- | :------- | | Demand deposits (noninterest bearing) | **$616,096** | **$688,996** | (**10.6**)% | | NOW accounts | **$279,139** | **$261,430** | **6.8 %** | | Saving | **$76,179** | **$82,300** | (**7.4**)% | | Money market | **$658,384** | **$644,880** | **2.1 %** | | Time deposits | **$556,835** | **$556,403** | **0.1 %** | | Total | **$2,186,634** | **$2,234,009** | (**2.1**)% | [Borrowings](index=72&type=section&id=Borrowings) The Company maintained significant unused borrowing capacity from FHLB, FRB, and Federal Funds lines - Available borrowing capacity from FHLB was **$581.6 million** at June 30, 2025, and **$540.2 million** at December 31, 2024, with no outstanding advances at either date[187](index=187&type=chunk) - Available borrowing capacity from FRB was **$440.3 million** at June 30, 2025, and **$41.9 million** at December 31, 2024, with no outstanding advances at either date[188](index=188&type=chunk) - Federal Funds lines totaled **$65.0 million** at both dates, with no outstanding balances[189](index=189&type=chunk) - Junior subordinated deferrable interest debentures were **$8.7 million** at June 30, 2025, and subordinated debt was **$63.8 million**[190](index=190&type=chunk) [Shareholders' Equity](index=72&type=section&id=Shareholders'%20Equity) Shareholders' equity increased by **$6.2 million** to **$330.6 million**, driven by net income and other comprehensive income - Shareholders' equity increased by **$6.2 million** to **$330.6 million** at June 30, 2025, from **$324.4 million** at December 31, 2024[192](index=192&type=chunk) - The increase was primarily due to **$12.1 million** of net income and **$2.9 million** in other comprehensive income, net of taxes[192](index=192&type=chunk) - These increases were partially offset by the repurchase of **$5.2 million** of common stock and **$3.9 million** of cash dividends paid or accrued[192](index=192&type=chunk) - During the six months ended June 30, 2025, the Company repurchased **199,243 shares** of common stock for **$5.2 million**, with **264,855 shares** remaining available under the current repurchase plan[192](index=192&type=chunk) [Comparison of Results of Operations for the Three and Six Months Ended June 30, 2025 and 2024](index=74&type=section&id=Comparison%20of%20Results%20of%20Operations%20for%20the%20Three%20and%20Six%20Months%20Ended%20June%2030,%202025%20and%202024) This section compares operational results for Q2 2025 and 2024, detailing changes in income, expenses, and key performance metrics [Earnings Summary](index=74&type=section&id=Earnings%20Summary) Net income increased by **13.6%** for Q2 2025 and **5.1%** for the six months, with improved efficiency ratios | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :------------------------------------ | :------------------------------------ | :-------------------- | :------- | | Net income | **$6,364** | **$5,600** | **$764** | **13.6%** | | Basic and diluted EPS | **$0.58** | **$0.50** | **$0.08** | **16.0%** | | Efficiency ratio | **63.85%** | **67.34%** | **-3.49%** | **-5.18%** | | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | Change (in thousands) | % Change | | :-------------------------------- | :---------------------------------- | :---------------------------------- | :-------------------- | :------- | | Net income | **$12,066** | **$11,477** | **$589** | **5.1%** | | Basic and diluted EPS | **$1.09** | **$1.01** | **$0.08** | **7.9%** | | Efficiency ratio | **64.79%** | **66.49%** | **-1.70%** | **-2.56%** | [Interest Income](index=74&type=section&id=Interest%20Income) Total interest income increased for both periods, driven by higher yields and average balances in investment securities and loans - Total interest income increased by **$1.1 million** (**3.2%**) to **$33.5 million** for the three months ended June 30, 2025, driven by increased yields and average balances of investment securities and loans[197](index=197&type=chunk) - Loan interest income increased by **$2.9 million** (**11.8%**) to **$28.0 million** for the three months ended June 30, 2025, due to a **$133.4 million** increase in average loan balance and a **22 basis points** increase in average loan yield (**5.63%**)[198](index=198&type=chunk) - Investment securities interest income increased by **$225,000** (**10.3%**) to **$2.4 million** for the three months ended June 30, 2025, with average yield increasing by **18 basis points** to **4.68%**[200](index=200&type=chunk) - Federal funds sold and interest-bearing balances in banks interest income decreased by **$2.1 million** (**44.1%**) to **$2.7 million** for the three months ended June 30, 2025, due to a **102 basis points** decrease in average yield (**4.45%**) and lower average balance[202](index=202&type=chunk) - Total interest income increased by **$1.9 million** (**3.0%**) to **$66.1 million** for the six months ended June 30, 2025, reflecting increased yields and average balances of loans and investment securities[203](index=203&type=chunk) [Interest Expense](index=76&type=section&id=Interest%20Expense) Total interest expense increased due to higher rates on money market deposits and increased average balances - Total interest expense increased by **$611,000** (**3.1%**) to **$10.3 million** for the three months ended June 30, 2025, primarily due to higher rates paid on money market deposits and increased average balances of money market and time deposit accounts[208](index=208&type=chunk) - Interest expense on deposits increased by **$207,000** (**6.1%**) to **$9.2 million** for the three months ended June 30, 2025, due to higher deposit rates, with the average cost of all interest-bearing deposits remaining unchanged at **2.37%**[209](index=209&type=chunk)[210](index=210&type=chunk) - Average interest-bearing liabilities increased by **$29.7 million** (**1.86%**) to **$1.6 billion** for the three months ended June 30, 2025[212](index=212&type=chunk) - Average noninterest-bearing deposits decreased by **$15.5 million** (**2.5%**) to **$604.9 million** for the three months ended June 30, 2025[213](index=213&type=chunk) - Total interest expense increased by **$611,000** (**3.1%**) to **$20.1 million** for the six months ended June 30, 2025, reflecting higher funding costs, mainly from money market accounts[215](index=215&type=chunk) - Interest expense on deposits increased by **$663,000** (**3.8%**) to **$17.9 million** for the six months ended June 30, 2025, driven by higher rates and average balances in money market and time deposit accounts[216](index=216&type=chunk) [Net Interest Income and Net Interest Margin](index=79&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income and margin improved for both periods, driven by higher asset yields outpacing liability costs - Net interest income increased by **$865,000** (**3.9%**) to **$23.2 million** for the three months ended June 30, 2025[219](index=219&type=chunk) - The annualized net interest margin improved to **3.77%** for the three months ended June 30, 2025, from **3.69%** in the prior-year period, driven by an **eight basis points** increase in the average annualized yield on interest-earning assets (**5.45%**)[221](index=221&type=chunk) - Net interest income increased by **$1.3 million** (**3.0%**) to **$46.0 million** for the six months ended June 30, 2025[222](index=222&type=chunk) - The annualized net interest margin improved to **3.80%** for the six months ended June 30, 2025, from **3.71%** in the prior-year period, as asset yields (**5.45%**) outpaced the cost of interest-bearing liabilities (**2.51%**)[223](index=223&type=chunk) [Average Balances, Interest and Average Yields/Cost](index=81&type=section&id=Average%20Balances,%20Interest%20and%20Average%20Yields/Cost) This table presents average balances, interest, and yields/costs for interest-earning assets and interest-bearing liabilities | Category | Average Balance (3 months ended June 30, 2025, in thousands) | Interest (in thousands) | Annualized Average Yield/Cost | | :-------------------------------- | :------------------------------------------- | :---------------------- | :---------------------------- | | Total interest earning assets | **$2,462,990** | **$33,453** | **5.45 %** | | Total interest bearing liabilities | **$1,628,460** | **$10,293** | **2.54 %** | | Net interest income | | **$23,160** | | | Interest rate spread | | | **2.91 %** | | Net interest margin | | | **3.77 %** | | Category | Average Balance (6 months ended June 30, 2025, in thousands) | Interest (in thousands) | Annualized Average Yield/Cost | | :-------------------------------- | :------------------------------------------- | :---------------------- | :---------------------------- | | Total interest earning assets | **$2,443,725** | **$66,099** | **5.45 %** | | Total interest bearing liabilities | **$1,610,962** | **$20,059** | **2.51 %** | | Net interest income | | **$46,040** | | | Interest rate spread | | | **2.94 %** | | Net interest margin | | | **3.80 %** | [Rate/Volume Analysis](index=83&type=section&id=Rate/Volume%20Analysis) This table analyzes the impact of rate and volume changes on total interest income, expense, and net interest income | Category | Rate Effect (3 months, in thousands) | Volume Effect (3 months, in thousands) | Total Change (3 months, in thousands) | | :-------------------------------- | :----------------------------------- | :------------------------------------- | :------------------------------------ | | Total interest income | **$632** | **$415** | **$1,047** | | Total interest expense | **$(246)** | **$428** | **$182** | | Net interest income | **$878** | **$(13)** | **$865** | | Category | Rate Effect (6 months, in thousands) | Volume Effect (6 months, in thousands) | Total Change (6 months, in thousands) | | :-------------------------------- | :----------------------------------- | :------------------------------------- | :------------------------------------ | | Total interest income | **$1,574** | **$375** | **$1,949** | | Total interest expense | **$(317)** | **$928** | **$611** | | Net interest income | **$1,891** | **$(553)** | **$1,338** | [Provision for Credit Losses](index=83&type=section&id=Provision%20for%20Credit%20Losses) Provision for credit losses increased due to loan growth and reserve increases, despite lower net charge-offs - Provision for credit losses was **$203,000** for the three months ended June 30, 2025, compared to **$171,000** for the same period in 2024[232](index=232&type=chunk) - Provision for credit losses was **$845,000** for the six months ended June 30, 2025, compared to **$423,000** for the same period in 2024[232](index=232&type=chunk) - The provision increase was primarily driven by loan growth, charge-offs, and increased reserve on pooled loans. Net charge-offs for the six months ended June 30, 2025, were **$115,000**, significantly lower than **$3.2 million** in the prior year[232](index=232&type=chunk) [Noninterest Income](index=83&type=section&id=Noninterest%20Income) Noninterest income saw mixed changes, increasing for Q2 but decreasing for the six months due to various factors - Noninterest income increased by **$30,000** (**2.0%**) to **$1.5 million** for the three months ended June 30, 2025[233](index=233&type=chunk) - This increase was primarily due to a **$328,000** decrease in loss on equity securities and a **$179,000** increase in loan servicing and other fees, partially offset by a **$233,000** decrease in gain on sale of loans and a **$298,000** increase in loss on investment in SBIC fund[233](index=233&type=chunk) - Noninterest income decreased by **$592,000** (**16.7%**) to **$3.0 million** for the six months ended June 30, 2025[234](index=234&type=chunk) - This decrease was due to a **$500,000** increase in loss on equity securities and a **$377,000** increase in loss on investment in SBIC fund, partially offset by a **$285,000** increase in service charges and other fees[234](index=234&type=chunk) [Noninterest Expense](index=85&type=section&id=Noninterest%20Expense) Noninterest expense decreased for both periods, primarily due to lower other expenses, partially offset by data processing - Noninterest expense decreased by **$258,000** (**1.6%**) to **$15.8 million** for the three months ended June 30, 2025[236](index=236&type=chunk) - The decrease was primarily due to a **$657,000** decrease in other expense (reduction in legal/professional fees and return of unused CalCap reserve funds), partially offset by a **$263,000** increase in data processing expense and an **$86,000** increase in salaries and wages[236](index=236&type=chunk) - Noninterest expense decreased by **$340,000** (**1.1%**) to **$31.7 million** for the six months ended June 30, 2025[237](index=237&type=chunk) - This decrease was mainly due to a **$720,000** decrease in other expense (legal/professional fees, FDIC insurance, fraudulent check losses, and CalCap reserve funds), partially offset by a **$363,000** increase in data processing expense[237](index=237&type=chunk) [Income Taxes](index=87&type=section&id=Income%20Taxes) Income tax provision increased by **$357,000** for Q2 2025 and **$75,000** for the six months, with an effective tax rate of **27.0%** for Q2 2025 - The provision for income taxes increased by **$357,000** (**17.9%**) to **$2.4 million** for the three months ended June 30, 2025, due to higher taxable income[239](index=239&type=chunk) - The provision for income taxes increased by **$75,000** (**1.8%**) to **$4.3 million** for the six months ended June 30, 2025[239](index=239&type=chunk) - The effective tax rate was **27.0%** for the three months and **26.5%** for the six months ended June 30, 2025. The six-month rate was lower than the prior year due to higher low income housing tax credits[240](index=240&type=chunk) [Liquidity and Capital Resources](index=87&type=section&id=Liquidity%20and%20Capital%20Resources) This section details the Company's liquidity management, cash flow activities, and regulatory capital position, confirming 'Well Capitalized' status [Liquidity Management](index=87&type=section&id=Liquidity%20Management) The Company manages liquidity through primary and secondary funding sources, including significant unused borrowing capacity - The Company's liquidity strategy involves daily and long-term planning to fund loan demand and deposit runoff, utilizing deposits, loan payments, and proceeds from loan sales as primary sources[241](index=241&type=chunk)[242](index=242&type=chunk) - Secondary liquidity sources include available borrowing capacity from the FHLB (**$581.6 million**), FRB (**$40.3 million**), and federal funds lines (**$65.0 million**), with no outstanding borrowings at June 30, 2025[244](index=244&type=chunk) - Net cash provided by operating activities was **$15.6 million** for the six months ended June 30, 2025. Net cash used in investing activities was **$33.8 million**, and net cash used in financing activities was **$54.2 million**[246](index=246&type=chunk) - The Board of Directors declared a quarterly cash dividend of **$0.20** per share, paid on July 10, 2025. The Company also has a stock repurchase program with **264,855 shares** available for repurchase as of June 30, 2025[248](index=248&type=chunk)[249](index=249&type=chunk) [Regulatory Capital](index=91&type=section&id=Regulatory%20Capital) United Business Bank maintained 'Well Capitalized' status, exceeding all regulatory capital requirements at June 30, 2025 - United Business Bank maintained 'Well Capitalized' status under Federal Reserve regulations at both June 30, 2025, and December 31, 2024[251](index=251&type=chunk) | Capital Ratio (June 30, 2025) | BayCom Corp Amount (in thousands) | BayCom Corp Ratio | United Business Bank Amount (in thousands) | United Business Bank Ratio | | :-------------------------------- | :-------------------------------- | :---------------- | :--------------------------------------- | :------------------------- | | Leverage Ratio | **$298,579** | **12.02 %** | **$357,137** | **14.03 %** | | Common Equity Tier 1 Ratio | **$298,579** | **14.41 %** | **$357,137** | **17.35 %** | | Tier 1 Risk-Based Capital Ratio | **$298,579** | **14.41 %** | **$357,137** | **17.35 %** | | Total Risk-Based Capital Ratio | **$391,979** | **18.92 %** | **$376,367** | **18.28 %** | - At June 30, 2025, the Bank's Common Equity Tier 1 capital exceeded the required capital conservation buffer[253](index=253&type=chunk) PART II — OTHER INFORMATION This section provides additional information, including legal proceedings, risk factors, equity sales, and exhibits [Item 1. Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) No pending legal proceedings are expected to have a material adverse effect on the Company's financial condition or operations - The Company is not presently party to any legal proceedings where the resolution would have a material adverse effect on its business, financial condition, or results of operations[112](index=112&type=chunk)[264](index=264&type=chunk) [Item 1A. Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors previously disclosed in the Company's 2024 Annual Report - No material changes in the Risk Factors previously disclosed in Item 1A of the 2024 Annual Report[265](index=265&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=59&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Company repurchased **148,450 shares** for **$26.14** average per share, with **264,855 shares** remaining for repurchase | Period | Total shares purchased | Average price paid per share | Shares purchased as part of publicly announced plans | Maximum shares that may yet be purchased | | :-------------------------------- | :--------------------- | :--------------------------- | :------------------------------------------------- | :--------------------------------------- | | April 1, 2025 - April 30, 2025 | **82,529** | **$25.54** | **82,529** | **330,776** | | May 1, 2025 - May 31, 2025 | **18,713** | **$26.94** | **18,713** | **312,063** | | June 1, 2025 - June 30, 2025 | **47,208** | **$26.88** | **47,208** | **264,855** | | Total (3 months ended June 30, 2025) | **148,450** | **$26.14** | **148,450** | | - The current stock repurchase program, approved in May 2024, authorizes the purchase of up to **560,000 shares** over a one-year period[266](index=266&type=chunk) [Item 3. Defaults Upon Senior Securities](index=97&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the Company for the reporting period - Not applicable[267](index=267&type=chunk) [Item 4. Mine Safety Disclosures](index=97&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the Company for the reporting period - Not applicable[268](index=268&type=chunk)[269](index=269&type=chunk) [Item 5. Other Information](index=98&type=section&id=Item%205.%20Other%20Information) No director or officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements in Q2 2025 - No director or officer adopted or terminated a 'Rule 10b5-1 trading arrangement' or 'non-Rule 10b5-1 trading arrangement' during the three months ended June 30, 2025[270](index=270&type=chunk) [Item 6. Exhibits](index=98&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with Form 10-Q, including corporate documents and CEO/CFO certifications - Exhibits include Articles of Incorporation, Amended and Restated Bylaws, CEO and CFO certifications (Sections 302 and 906 of Sarbanes-Oxley Act), and XBRL formatted financial statements[272](index=272&type=chunk) [SIGNATURES](index=99&type=section&id=SIGNATURES) The report is signed by BayCom Corp's President/CEO and Senior EVP/CFO/Secretary on August 11, 2025 - The report is signed by George J. Guarini, President and Chief Executive Officer, and Keary L. Colwell, Senior Executive Vice President, Chief Financial Officer and Secretary, on August 11, 2025[275](index=275&type=chunk)
Bay Commercial Bank (BCML) Q2 Earnings Surpass Estimates
ZACKS· 2025-07-17 23:06
Group 1: Earnings Performance - Bay Commercial Bank reported quarterly earnings of $0.58 per share, exceeding the Zacks Consensus Estimate of $0.55 per share, and up from $0.50 per share a year ago, representing an earnings surprise of +5.45% [1] - The company posted revenues of $24.67 million for the quarter ended June 2025, which missed the Zacks Consensus Estimate by 1.31%, compared to $23.78 million in the same quarter last year [2] - Over the last four quarters, the company has surpassed consensus EPS estimates three times, but has topped consensus revenue estimates only once [2] Group 2: Stock Performance and Outlook - Bay Commercial Bank shares have increased by approximately 2.2% since the beginning of the year, while the S&P 500 has gained 6.5% [3] - The company's earnings outlook, including current consensus earnings expectations for upcoming quarters, will be crucial for stock performance [4] - The current consensus EPS estimate for the next quarter is $0.52 on revenues of $24.8 million, and for the current fiscal year, it is $2.27 on revenues of $101.4 million [7] Group 3: Industry Context - The Zacks Industry Rank indicates that the Banks - West industry is currently in the top 29% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor decisions [5]
Bay p(BCML) - 2025 Q2 - Quarterly Results
2025-07-17 21:24
BayCom Corp Q2 2025 Earnings Release [Earnings Summary](index=1&type=section&id=Earnings%20Summary) BayCom Corp reported strong Q2 2025 earnings, with net income and diluted EPS increasing, primarily driven by higher net interest income and reduced credit loss provision Quarterly Earnings Performance | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $6.4 million | $5.7 million | $5.6 million | | Diluted EPS | $0.58 | $0.51 | $0.50 | - Quarter-over-quarter net income growth was mainly due to a **$439,000 decrease in provision for credit losses** and a **$280,000 increase in net interest income**[2](index=2&type=chunk) - Year-over-year net income growth was primarily the result of an **$865,000 increase in net interest income** and a **$258,000 decrease in noninterest expense**[2](index=2&type=chunk) - For the six months ended June 30, 2025, net income increased by **5.1%** compared to the same period in 2024, driven by a **$1.4 million rise in net interest income**[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) CEO George Guarini highlighted positive financial trends, emphasizing the company's focus on managing operating expenses, maintaining credit discipline, and enhancing shareholder value through repurchases and dividends - The company's financial condition is described as **resilient**, with no observed signs of systemic credit weakness[4](index=4&type=chunk) - Strategic priorities include managing operating expenses, maintaining credit discipline, and closely monitoring new loan originations in anticipation of potential economic deterioration[4](index=4&type=chunk) - The company remains committed to strategic share repurchases and paying cash dividends to enhance shareholder value[4](index=4&type=chunk) [Key Performance Highlights](index=1&type=section&id=Key%20Performance%20Highlights) The company maintained stable total assets and grew net loans, achieving a 3.77% annualized net interest margin, while actively repurchasing shares and declaring a cash dividend Key Financial Metrics | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Annualized Net Interest Margin | 3.77% | 3.83% | 3.69% | | Annualized Return on Average Assets | 0.98% | 0.89% | 0.87% | | Total Assets | $2.6B | $2.6B | $2.6B | | Loans, net of deferred fees | $2.0B | $2.0B | $1.9B | Asset Quality and Capital Actions | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Nonperforming Loans | $16.4M (0.82% of total) | $10.0M (0.51% of total) | $16.1M (0.87% of total) | | Allowance for Credit Losses | $18.7M (0.93% of total) | $18.5M (0.94% of total) | $19.0M (1.02% of total) | | Shares Repurchased | 148,450 | 50,793 | 204,794 | - A cash dividend of **$0.20 per share** was declared on May 21, 2025[10](index=10&type=chunk) - The Bank remained a **"well-capitalized" institution** for regulatory purposes at June 30, 2025[10](index=10&type=chunk) [Detailed Financial Analysis](index=2&type=section&id=Detailed%20Financial%20Analysis) Q2 2025 financial performance was marked by increased net interest income and decreased noninterest expenses, alongside a significantly lower provision for credit losses compared to the prior quarter [Net Interest Income](index=2&type=section&id=Net%20Interest%20Income) Net interest income rose in Q2 2025, driven by higher interest income from a larger average loan balance, with the annualized net interest margin slightly decreasing QoQ but improving YoY Net Interest Income and Margin | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $23.2M | $22.9M | $22.3M | | Annualized Net Interest Margin | 3.77% | 3.83% | 3.69% | | Avg. Yield on Interest Earning Assets | 5.45% | 5.46% | 5.37% | | Avg. Rate on Interest-Bearing Liabilities | 2.54% | 2.49% | 2.54% | - The QoQ increase in net interest income was primarily due to **higher interest on loans**, partially offset by **increased interest expense on deposits**[6](index=6&type=chunk) - The YoY increase was driven by a **$2.9 million (11.8%) rise in interest income on loans**, reflecting a **$133.4 million increase in the average loan balance** and a **22 basis point increase in the average loan yield**[9](index=9&type=chunk) - Total interest expense increased **5.4% QoQ to $10.3 million**, reflecting higher average balances and funding costs on money market accounts[15](index=15&type=chunk) [Provision for Credit Losses](index=5&type=section&id=Provision%20for%20Credit%20Losses) The company recorded a significantly reduced provision for credit losses in Q2 2025 compared to the prior quarter, primarily due to a reduction in specific reserves, with minimal net charge-offs Provision and Net Charge-offs | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Provision for Credit Losses | $203,000 | $642,000 | $171,000 | | Net Charge-offs | $13,000 | $102,000 | $76,000 | - The decrease in provision compared to the prior quarter was mainly driven by a **decrease in specific reserves**, partially offset by loan growth and an increase in the overall required allowance level[18](index=18&type=chunk) [Noninterest Income](index=5&type=section&id=Noninterest%20Income) Noninterest income for Q2 2025 increased from both prior periods, primarily driven by a significant decrease in losses on equity securities Noninterest Income Breakdown | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total Noninterest Income | $1.51M | $1.44M | $1.48M | | (Loss) on equity securities | $7,000 | ($255,000) | ($321,000) | - The QoQ increase was driven by a **$262,000 decrease in loss on equity securities** and a **$127,000 increase in loan servicing fees**, partially offset by a **$144,000 decrease in gain on sale of loans**[19](index=19&type=chunk) [Noninterest Expense](index=5&type=section&id=Noninterest%20Expense) Noninterest expense decreased in Q2 2025 from both prior periods, primarily due to lower salaries and benefits and a significant reduction in other expenses Noninterest Expense Breakdown | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total Noninterest Expense | $15.8M | $16.0M | $16.0M | | Salaries and employee benefits | $9.7M | $9.9M | $9.6M | | Other expense | $1.9M | $2.1M | $2.6M | - The decrease from the prior quarter was mainly due to a **$207,000 decrease in salaries** and a **$135,000 reduction in other expenses**[21](index=21&type=chunk) - The YoY decrease was primarily due to a **$657,000 reduction in other expenses**, partly from the return of unused funds from a California Capital Access Program (CalCap) loss reserve account[21](index=21&type=chunk) [Provision for Income Taxes](index=5&type=section&id=Provision%20for%20Income%20Taxes) The provision for income taxes for Q2 2025 resulted in an effective tax rate of 27.0%, which was higher than both the prior quarter and prior year Income Tax Provision and Effective Rate | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Provision for Income Taxes | $2.4M | $2.0M | $2.0M | | Effective Tax Rate | 27.0% | 25.8% | 26.3% | [Balance Sheet and Credit Quality](index=5&type=section&id=Balance%20Sheet%20and%20Credit%20Quality) Total assets remained stable, with net loans growing and deposits increasing, while nonperforming loans rose quarter-over-quarter [Loans and Credit Quality](index=5&type=section&id=Loans%20and%20Credit%20Quality) Net loans increased significantly, fueled by new originations, while nonperforming loans rose primarily due to new commercial real estate loans placed on non-accrual status - Loan growth in Q2 2025 was driven by **$155.1 million of new originations** and **$13.1 million of loan purchases**, partially offset by **$134.4 million of repayments**[23](index=23&type=chunk)[24](index=24&type=chunk) Nonperforming Loan (NPL) Status | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Nonperforming Loans | $16.4M | $10.0M | $16.1M | | NPLs as % of Total Loans | 0.82% | 0.51% | 0.87% | - The increase in NPLs from Q1 2025 was mainly due to **seven new commercial real estate loans totaling $5.2 million** being placed on non-accrual status[25](index=25&type=chunk) - The allowance for credit losses for loans was **$18.7 million**, or **0.93% of total loans**, compared to $18.5 million (0.94%) at the end of Q1 2025[27](index=27&type=chunk) [Deposits and Borrowings](index=7&type=section&id=Deposits%20and%20Borrowings) Total deposits increased during the quarter, driven by organic growth and a shift towards higher-costing money market accounts, with noninterest-bearing deposits constituting 28.2% of the total Deposit Balances | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | Total Deposits | $2.20B | $2.13B | $2.18B | | Noninterest-bearing Deposits | $616.1M | $589.5M | $618.6M | | % Noninterest-bearing | 28.2% | 27.7% | 28.4% | - The deposit mix shifted during 2025 due to interest-rate sensitive clients moving balances from lower-costing deposits to higher-costing money market accounts and time deposits[29](index=29&type=chunk) - The company has **no outstanding FHLB advances, Federal Funds line borrowings, or FRB discount window advances** as of June 30, 2025[31](index=31&type=chunk)[33](index=33&type=chunk) [Shareholders' Equity](index=9&type=section&id=Shareholders%20Equity) Shareholders' equity increased at Q2 2025, primarily driven by net income, partially offset by common stock repurchases and cash dividends Shareholders' Equity Movement (Q2 2025) | Description | Amount | | :--- | :--- | | Equity at March 31, 2025 | $329.3M | | Net Income | +$6.4M | | Other Comprehensive Income | +$0.8M | | Common Stock Repurchases | -$3.9M | | Cash Dividends | -$2.2M | | **Equity at June 30, 2025** | **$330.6M** | - A total of **264,855 shares** remained available for repurchase under the Company's current stock repurchase plan at quarter-end[34](index=34&type=chunk) [About BayCom Corp and Forward-Looking Statements](index=9&type=section&id=About%20BayCom%20Corp%20and%20Forward-Looking%20Statements) BayCom Corp, operating through United Business Bank, provides banking services across five western states, with the report containing forward-looking statements subject to various economic and competitive uncertainties - The Company operates through its wholly owned subsidiary, United Business Bank, offering loans and deposit services in **five western states**[36](index=36&type=chunk) - The report contains forward-looking statements subject to **significant business, economic, and competitive uncertainties**, including inflation, interest rate environment, and potential bank failures[37](index=37&type=chunk)[39](index=39&type=chunk) [Consolidated Financial Statements](index=12&type=section&id=Consolidated%20Financial%20Statements) This section presents BayCom Corp's unaudited consolidated financial statements, including comprehensive income, condition, financial highlights, and GAAP to Non-GAAP reconciliations [Consolidated Statements of Comprehensive Income](index=12&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This statement presents the company's revenues, expenses, net income, and other comprehensive income for the three and six months ended June 30, 2025, with comparative periods Consolidated Statements of Comprehensive Income (Unaudited, Dollars in thousands) | | Three months ended | Six months ended | | :--- | :--- | :--- | | | **Q2 2025** | **Q1 2025** | **Q2 2024** | **H1 2025** | **H1 2024** | | **Net interest income** | **$23,160** | **$22,880** | **$22,295** | **$46,040** | **$44,702** | | Provision for credit losses | 203 | 642 | 171 | 845 | 423 | | Total noninterest income | 1,513 | 1,440 | 1,483 | 2,953 | 3,545 | | Total noninterest expense | 15,754 | 15,989 | 16,012 | 31,743 | 32,083 | | **Net income** | **$6,364** | **$5,702** | **$5,600** | **$12,066** | **$11,477** | | Diluted EPS | $0.58 | $0.51 | $0.50 | $1.09 | $1.01 | | **Comprehensive income** | **$7,153** | **$7,797** | **$6,106** | **$14,950** | **$12,467** | [Consolidated Statements of Condition](index=13&type=section&id=Consolidated%20Statements%20of%20Condition) This statement details the company's assets, liabilities, and shareholders' equity as of June 30, 2025, with comparative figures for prior periods Consolidated Statements of Condition (Unaudited, Dollars in thousands) | | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :--- | :--- | :--- | :--- | | **Assets** | | | | | Cash and cash equivalents | $291,624 | $256,549 | $391,208 | | Loans, net of allowance | $1,981,549 | $1,948,168 | $1,845,172 | | **Total Assets** | **$2,622,379** | **$2,563,798** | **$2,593,933** | | **Liabilities & Equity** | | | | | Total deposits | $2,186,634 | $2,128,830 | $2,175,010 | | **Total Liabilities** | **$2,291,817** | **$2,234,461** | **$2,278,668** | | **Total Shareholders' Equity** | **$330,562** | **$329,337** | **$315,265** | | **Total Liabilities and Equity** | **$2,622,379** | **$2,563,798** | **$2,593,933** | [Financial Highlights](index=14&type=section&id=Financial%20Highlights) This section summarizes key performance ratios, per share data, asset quality metrics, and capital ratios for the quarter, providing a quick reference for overall health Selected Financial Ratios (Q2 2025 vs Q2 2024) | Ratio | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Return on average assets (annualized) | 0.98% | 0.87% | | Return on average equity (annualized) | 7.69% | 7.11% | | Net interest margin (annualized) | 3.77% | 3.69% | | Efficiency ratio | 63.85% | 67.34% | | Nonperforming loans to total loans | 0.82% | 0.87% | | Book value per share | $30.21 | $28.22 | | Tangible book value per share (Non-GAAP) | $26.46 | $24.45 | [Non-GAAP Financial Measures Reconciliation](index=15&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles GAAP to non-GAAP measures, including tangible book value per share and tangible equity to tangible assets, to facilitate capital quality comparison Reconciliation of GAAP to Non-GAAP Measures (June 30, 2025, in thousands) | Measure | Amount | | :--- | :--- | | Total shareholders' equity (GAAP) | $330,562 | | less: Goodwill and other intangibles | $41,025 | | **Tangible common shareholders' equity (Non-GAAP)** | **$289,537** | | Total assets (GAAP) | $2,622,379 | | less: Goodwill and other intangibles | $41,025 | | **Total tangible assets (Non-GAAP)** | **$2,581,354** | Book Value Per Share Reconciliation (June 30, 2025) | Measure | Value | | :--- | :--- | | Book value per share (GAAP) | $30.21 | | Tangible book value per share (Non-GAAP) | $26.46 |
Bay p(BCML) - 2025 Q1 - Quarterly Report
2025-05-09 21:08
Financial Position - As of March 31, 2025, the company reported total assets of approximately $2.6 billion, total loans of $1.9 billion, total deposits of $2.1 billion, and shareholders' equity of $329.3 million[132]. - Total assets decreased by $100.7 million, or 3.8%, from December 31, 2024, primarily due to a $107.5 million, or 29.5%, decline in cash and cash equivalents[147]. - Total deposits decreased by $105.2 million, or 4.7%, to $2.1 billion at March 31, 2025, from $2.2 billion at December 31, 2024[181]. - Liquid assets decreased by $108.7 million to $448.9 million at March 31, 2025, from December 31, 2024[222]. - BayCom Corp had liquid assets of $19.9 million as of March 31, 2025, to cover operating expenses and shareholder dividends[226]. Loan Portfolio - The total loan portfolio included $279.4 million, or 14.2%, of loans acquired through business combinations, while $1.7 billion, or 85.8%, consisted of loans originated or purchased not as part of a business combination[133]. - Total loans increased by $13.2 million, or 0.7%, to $1.9 billion as of March 31, 2025, from $1.9 billion at December 31, 2024[154]. - Total real estate loans increased by 0.6% to $1.765 billion as of March 31, 2025, from $1.756 billion at December 31, 2024[156]. - New loan originations amounted to $72.1 million during the period[154]. - Nonperforming loans totaled $10.0 million, or 0.51% of total loans, as of March 31, 2025, up from $9.5 million, or 0.48% at December 31, 2024[164]. Credit Losses - The company has established an allowance for credit losses to reflect estimated credit losses in its loan and investment securities portfolios[139]. - The allowance for credit losses increased by 3.4% to $18.5 million as of March 31, 2025, from $17.9 million at December 31, 2024[156]. - The allowance for credit losses for loans was $18.5 million, or 0.94% of total loans, as of March 31, 2025, compared to $17.9 million, or 0.92% at December 31, 2024[174]. - The allowance for credit losses on loans as a percentage of nonaccrual loans was 188.12% as of March 31, 2025[177]. - The company recorded net charge-offs of $102,000 for the three months ended March 31, 2025, significantly lower than $3.4 million for the same period in 2024[175]. Income and Expenses - Net income for the three months ended March 31, 2025, was $5.7 million, a decrease of 3.0% from $5.9 million for the same period in 2024[193]. - Interest income increased by 2.8% to $32.6 million for the three months ended March 31, 2025, compared to $31.7 million for the same period in 2024[195]. - Net interest income increased by 2.1% to $22.9 million for the three months ended March 31, 2025, compared to $22.4 million for the same period in 2024[205]. - Noninterest income decreased by $622,000, or 30.2%, to $1.4 million in Q1 2025, primarily due to a loss on equity securities[214]. - Noninterest expenses have increased significantly due to growth through acquisitions and the expansion of operational infrastructure[141]. Capital and Dividends - Shareholders' equity increased by $5.0 million to $329.3 million at March 31, 2025, primarily due to $5.7 million of net income earned[191]. - The Company declared a quarterly cash dividend of $0.15 per share, resulting in an average total dividend of approximately $1.7 million per quarter based on outstanding shares as of March 31, 2025[227][228]. - As of March 31, 2025, the Bank was considered "Well Capitalized" under Federal Reserve regulations, maintaining adequate capital ratios[231]. - The Common Equity Tier 1 Ratio for BayCom Corp was 14.59% as of March 31, 2025, exceeding the minimum requirement for "Well Capitalized" status[233]. - The Bank's total risk-based capital ratio was 19.15% as of March 31, 2025, well above the minimum requirement of 10.00% for "Well Capitalized" status[233]. Operational Metrics - The company operates a network of 35 full-service branches across five states, including California, Nevada, Washington, New Mexico, and Colorado[131]. - The efficiency ratio was 65.74% for the three months ended March 31, 2025, slightly deteriorating from 65.68% for the same period in 2024[194]. - The average cost of interest-bearing liabilities increased to 2.49% for the first quarter of 2025, compared to 2.40% for the first quarter of 2024[201]. - The annualized net interest margin improved to 3.83% for the three months ended March 31, 2025, compared to 3.72% for the same period in 2024[207]. - The average interest rate spread improved to 2.97% in Q1 2025 from 2.88% in Q1 2024[212].
Bay Commercial Bank (BCML) Q1 Earnings and Revenues Miss Estimates
ZACKS· 2025-04-17 22:46
Core Insights - Bay Commercial Bank reported quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.52 per share, representing an earnings surprise of -1.92% [1] - The bank's revenues for the quarter were $24.32 million, which also fell short of the Zacks Consensus Estimate by 3.87% [2] - The company has surpassed consensus EPS estimates three times over the last four quarters, but has only topped revenue estimates once in the same period [2] Earnings Performance - The earnings report indicates that Bay Commercial Bank's earnings were unchanged from the previous year, while revenues decreased from $24.47 million a year ago [2] - The stock has lost approximately 3.5% since the beginning of the year, contrasting with the S&P 500's decline of -10.3% [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.56, with expected revenues of $25.9 million, and for the current fiscal year, the EPS estimate is $2.34 on revenues of $105.3 million [7] - The estimate revisions trend for Bay Commercial Bank is currently favorable, leading to a Zacks Rank 2 (Buy) for the stock, suggesting it is expected to outperform the market in the near future [6] Industry Context - The Banks - West industry, to which Bay Commercial Bank belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, indicating potential challenges ahead [8] - The performance of Bay Commercial Bank's stock may be influenced by the overall outlook for the industry [8]
Bay p(BCML) - 2025 Q1 - Quarterly Results
2025-04-17 20:33
Financial Performance - BayCom Corp reported earnings of $5.7 million, or $0.51 per diluted common share, for Q1 2025, a decrease of 6.8% from Q4 2024 and a decrease of 3.0% from Q1 2024[1][2]. - Net income for Q1 2025 was $5,702,000, a decline of 6.8% compared to $6,120,000 in Q4 2024[41]. - Comprehensive income for Q1 2025 was $7,797,000, a notable increase from $4,282,000 in Q4 2024[41]. - Basic net income per common share was $0.51 for Q1 2025, unchanged from Q4 2024[41]. - Diluted earnings per share for the quarter was $0.51, consistent with the same quarter last year[1]. Interest Income and Margin - Net interest income decreased by $694,000, or 2.9%, to $22.9 million for Q1 2025 compared to Q4 2024, but increased by $473,000, or 2.1%, from Q1 2024[5]. - The annualized net interest margin was 3.83% for Q1 2025, up from 3.80% in Q4 2024 and 3.72% in Q1 2024[4][14]. - Total interest and dividend income for Q1 2025 was $32,646,000, a decrease of 4.5% from $34,134,000 in Q4 2024[41]. - Net interest income after provision for credit losses was $22,238,000, down from $23,977,000 in Q4 2024, reflecting a decrease of 7.3%[41]. Loans and Credit Quality - The allowance for credit losses for loans totaled $18.5 million, or 0.94% of total loans outstanding, at March 31, 2025, compared to $17.9 million, or 0.92%, at December 31, 2024[4]. - Nonperforming loans totaled $10.0 million, or 0.51% of total loans, at March 31, 2025, compared to $9.5 million, or 0.48%, at December 31, 2024[4]. - Loans, net of deferred fees, totaled $2.0 billion at March 31, 2025, an increase of $13.8 million from December 31, 2024, and $79.9 million from March 31, 2024[19]. - Total loans increased to $1,966,345, up from $1,952,747 in the previous quarter[1]. - Nonperforming loans to total loans ratio increased to 0.51% from 0.48% in the previous quarter[1]. Deposits and Equity - Deposits decreased by $105.2 million, or 4.7%, to $2.1 billion at March 31, 2025, compared to $2.2 billion at December 31, 2024[25]. - Total deposits fell to $2,128,830,000, down 4.7% from $2,234,009,000 in Q4 2024[43]. - Shareholders' equity increased to $329.3 million at March 31, 2025, from $324.4 million at December 31, 2024, reflecting $5.7 million of net income during the current quarter[30]. - Total equity and common shareholders' equity (GAAP) rose to $329,337 from $324,366 in the previous quarter[1]. Expenses and Tax - Noninterest expense for Q1 2025 was $16.0 million, unchanged from Q4 2024, and decreased by $82,000, or 0.5%, from $16.1 million in Q1 2024[17]. - The provision for income taxes increased by $19,000, or 1.0%, to $2.0 million in Q1 2025, with an effective tax rate of 25.8% compared to 24.3% in Q4 2024[18]. Other Key Metrics - The average yield on interest-earning assets for Q1 2025 was 5.46%, down from 5.50% in Q4 2024 but up from 5.28% in Q1 2024[6]. - The average balance of loans was $2.0 billion for Q1 2025, compared to $1.9 billion for both Q4 2024 and Q1 2024[8]. - The average cost of interest-bearing liabilities for Q1 2025 was 2.49%, compared to 2.58% for Q4 2024 and 2.40% for Q1 2024[13]. - The average deposit account size was approximately $60,000 at March 31, 2025, compared to $62,000 at December 31, 2024[26]. - The number of full-time equivalent employees decreased to 320 from 324 in the previous quarter[1]. - Charge-offs increased to $102 from a recovery of $(3) in the previous quarter[1]. - Efficiency ratio improved to 65.74% from 67.52% in the previous quarter[1]. - Tangible book value per share increased to $25.98 from $25.43 in the previous quarter[1]. - The Tier 1 capital ratio remained stable at 17.23% compared to 16.94% in the previous quarter[1].
Wall Street Analysts Believe Bay Commercial Bank (BCML) Could Rally 29.21%: Here's is How to Trade
ZACKS· 2025-04-11 14:56
Group 1 - Bay Commercial Bank (BCML) closed at $24.51, with a 0.5% gain over the past four weeks, and a mean price target of $31.67 suggests a 29.2% upside potential [1] - The mean estimate includes three short-term price targets with a standard deviation of $1.15, indicating a range from a 26.5% increase to a 34.6% increase, with the most optimistic target at $33 [2] - Analysts show strong agreement in revising earnings estimates higher, which correlates with potential stock price increases [4][10] Group 2 - The Zacks Consensus Estimate for the current year has increased by 0.2% over the past month, with one estimate rising and no negative revisions [11] - BCML holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [12] - While the consensus price target may not be a reliable indicator of the stock's potential gain, it does suggest a positive direction for price movement [12]