Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-38483 BAYCOM CORP (Exact name of registrant as specified in its charter) California 37-1849111 (State or other jurisdicti ...

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]

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 |

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) came out with quarterly earnings of $0.51 per share, missing the Zacks Consensus Estimate of $0.52 per share. This compares to earnings of $0.51 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -1.92%. A quarter ago, it was expected that this company would post earnings of $0.51 per share when it actually produced earnings of $0.55, delivering a surprise of 7.84%.Over the last four quarters, the compa ...

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].

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]

Loan Portfolio - As of December 31, 2024, the company had net loans of $1.9 billion, representing 72.6% of total assets[47] - The loan portfolio primarily consists of commercial real estate loans totaling $1.7 billion, which constitutes 85.5% of total loans[48] - The company’s commercial and industrial loans amounted to $173.9 million, representing 8.9% of total loans as of December 31, 2024[48] - The aggregate amount of loans to the 10 largest borrowers was approximately $184.4 million, or 9.4% of total loans[50] - At December 31, 2024, the company held $1.8 billion in loans secured by real estate, representing 91.1% of total loans receivable[58] - The average loan size in the commercial real estate portfolio was approximately $1.2 million, with a weighted average loan-to-value ratio of 55.5%[65] - The company originated $21.1 million in commercial real estate SBA 7(a) loans during 2024[64] - The company’s commercial real estate loan portfolio included $96.3 million of loans originated under the SBA's 504 loan program[63] - The company’s commercial real estate loans may be owner-occupied or non-owner occupied, with $500.1 million of owner-occupied loans, or 25.6% of the total loan portfolio[59] - As of December 31, 2024, the company's agricultural real estate secured loans totaled $11.7 million, representing 0.6% of total loans[66] - The commercial real estate loan portfolio amounted to $1.67 billion, with a slight decrease from $1.67 billion in the previous year[68] - The largest commercial real estate loan had a net outstanding balance of $26.6 million, secured by a church in San Diego, California[69] - Construction and land loans outstanding were $1.5 million, accounting for 0.1% of total loans, with undisbursed commitments of $9.6 million[70] - The one-to-four family loan portfolio totaled $109.7 million, or 5.6% of total loans, including a significant loan of $26.9 million secured by a multi-unit residential property[75] - Home equity loans and lines of credit amounted to $5.1 million, representing 0.3% of total loans, with unfunded commitments of $6.0 million[76] - Loans enrolled in the California Capital Access Program totaled $17.7 million, or 0.9% of total loans[81] - Loans in the On-Road Heavy-Duty Vehicle Air Quality Loan Program reached $17.3 million, also representing 0.9% of total loans[82] - Agricultural operating loans amounted to $260,000, or 0.01% of total loans, reflecting the company's focus on supporting agricultural businesses[80] - As of December 31, 2024, consumer loans totaled $391,000, representing 0.02% of total loans[88] Financial Performance - Net income for 2024 was $23,614,000, a decrease of 14% from $27,425,000 in 2023[490] - Total interest and dividend income increased to $131,710,000 in 2024, up from $126,337,000 in 2023, representing a growth of 3%[487] - Net interest income after provision for credit losses was $89,876,000 in 2024, compared to $95,859,000 in 2023, reflecting a decline of 6%[487] - Total noninterest income decreased to $6,377,000 in 2024 from $6,977,000 in 2023, a drop of 9%[487] - Total noninterest expense remained relatively stable at $64,133,000 in 2024, slightly down from $64,678,000 in 2023[487] - Basic earnings per common share for 2024 was $2.10, down from $2.27 in 2023, a decrease of 7%[487] - Other comprehensive income for 2024 was $1,586,000, compared to a loss of $3,031,000 in 2023[490] - Cash dividends per share increased to $0.45 in 2024 from $0.40 in 2023, marking a 12.5% increase[494] - The company repurchased 455,654 shares in 2024, costing $9,247,000[494] - Total comprehensive income for 2024 was $25,200,000, an increase from $24,394,000 in 2023[490] - Net income for the year ended December 31, 2024, was $23.614 million, a decrease of 13.2% compared to $27.425 million in 2023[497] - Net cash provided by operating activities was $30.357 million, slightly down from $30.802 million in 2023[497] Assets and Liabilities - The total assets of BayCom Corp increased to $2,664,508 thousand as of December 31, 2024, compared to $2,551,960 thousand in 2023, reflecting a growth of approximately 4.4%[485] - The total liabilities of the company were $2,340,142 thousand as of December 31, 2024, compared to $2,239,091 thousand in 2023, which is an increase of approximately 4.5%[485] - The company's common stock outstanding decreased from 11,551,271 shares in 2023 to 11,121,475 shares in 2024, a reduction of about 3.7%[485] - The total shareholders' equity rose to $324,366 thousand in 2024, compared to $312,869 thousand in 2023, indicating an increase of about 3.7%[485] - The company's cash and cash equivalents increased to $364,032 thousand in 2024 from $307,539 thousand in 2023, representing a growth of approximately 18.3%[485] - Noninterest and interest-bearing deposits rose to $2,234,009 thousand in 2024, up from $2,132,750 thousand in 2023, representing an increase of approximately 4.8%[485] - Retained earnings increased to $164,831 thousand in 2024, compared to $146,261 thousand in 2023, marking a growth of about 12.7%[485] - The investment securities available-for-sale (AFS) at fair value increased to $193,328 thousand in 2024 from $163,152 thousand in 2023, reflecting a growth of approximately 18.5%[485] Regulatory Compliance - The Company is subject to comprehensive regulation by the Federal Reserve under the Bank Holding Company Act (BHCA) and must file quarterly reports[155] - The federal banking agencies adopted a final rule to increase initial base deposit insurance assessment rates by two basis points starting from the first quarterly assessment period of 2023[117] - The Community Reinvestment Act performance rating of the Bank was "satisfactory" during its most recently completed examination[140] - The Bank's management decided not to adopt the Community Bank Leverage Ratio, as it would reduce the Bank's excess capital[128] - The FDIC may prohibit any insured institution from engaging in activities that pose a serious risk to the Deposit Insurance Fund (DIF)[119] - The Bank's total commercial real estate loans increased by 50% or more during the prior 36 months, which may subject it to further supervisory analysis[138] - The Federal Reserve may limit dividends if the Bank does not meet capital conservation buffer requirements[142] - The California Consumer Privacy Act (CCPA) grants California residents rights regarding personal information, which may require the Bank to implement significant changes in technology infrastructure[146] - The Bank must notify its primary federal regulator of significant cybersecurity incidents within 36 hours, as per new rules adopted by federal banking agencies[145] - Non-compliance with privacy and cybersecurity laws could lead to substantial fines, penalties, and reputational harm[147] - The Dodd-Frank Act requires public companies to provide shareholders with a non-binding vote on executive compensation at least once every three years[161] - The Company is continuously reviewing its investment portfolio to ensure compliance with the Volcker Rule regulations[163] - The Bank is obligated to file suspicious activity reports if money laundering or terrorist activities are detected, as mandated by the USA Patriot Act[149] Employee and Community Engagement - As of December 31, 2024, the company had approximately 324 full-time equivalent employees, with 71% identifying as female and women holding 68% of management roles[175] - The average tenure of employees was 6.1 years, indicating a stable and experienced workforce[175] - The company has a commitment to employee growth and development through training initiatives and educational reimbursement programs[179] - The company maintains a market-competitive total rewards program, including comprehensive healthcare benefits and flexible work schedules[178] Interest Rate Risk Management - The company reported a dollar change in net interest income sensitivity for December 31, 2024, showing a potential increase of $8,289,000 (4%) with a +300 basis point shift in interest rates[463] - The company’s interest rate risk management is actively monitored by the Asset Liability Committee (ALCO), which meets quarterly to ensure compliance with risk limits[456] - The company’s primary approach to model interest rate risk is Net Interest Income at Risk (NII at Risk), which assesses changes in income related to interest earning assets and interest bearing liabilities[460] Investment and Impairment Assessment - The company assesses investments for impairment at each financial statement date, considering both credit-related and noncredit-related factors[513] - Impairment may arise from a decline in the financial condition of the issuing entity or from rising interest rates for fixed interest rate investments[513] - For debt securities deemed other than temporarily impaired, the impairment is split into credit loss components recognized in earnings and other factors recognized in other comprehensive income[514] - The assessment of impairment includes the duration and extent of fair value being less than amortized cost, the nature of the security, and the issuer's financial condition[515] - The company evaluates whether it intends to sell the security or if it is likely required to sell it before recovering its amortized cost basis[515] - Prior to ASU 2016-13, declines in fair value below cost were recorded as realized losses, but now the focus is on credit-related versus noncredit-related factors[515]

Core Viewpoint - Bay Commercial Bank reported quarterly earnings of $0.55 per share, exceeding the Zacks Consensus Estimate of $0.51 per share, with a year-over-year comparison showing no change in earnings per share [1][2] Group 1: Earnings Performance - The quarterly earnings surprise was 7.84%, and the company had previously exceeded earnings expectations by 14.89% in the prior quarter [1][2] - Over the last four quarters, Bay Commercial Bank has surpassed consensus EPS estimates three times [2][6] - The company posted revenues of $23.66 million for the quarter, missing the Zacks Consensus Estimate by 3.03%, and down from $26.2 million a year ago [2][6] Group 2: Stock Performance and Outlook - Bay Commercial Bank shares have declined approximately 0.5% since the beginning of the year, while the S&P 500 has gained 3.5% [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.53 on revenues of $24.6 million, and for the current fiscal year, it is $2.24 on revenues of $100.6 million [7][8] - The estimate revisions trend for Bay Commercial Bank is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [6][8] Group 3: Industry Context - The Banks - West industry, to which Bay Commercial Bank belongs, is currently in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5][6]

Financial Performance - BayCom Corp reported fourth quarter 2024 earnings of $6.1 million, or $0.55 per diluted share, a slight increase of 1.7% from the previous quarter and a decrease of 4.3% from the same quarter last year[1][2]. - Net income for the three months ended December 31, 2024, was $6,120,000, compared to $6,017,000 for the previous quarter, representing a 1.7% increase[43]. - Basic net income per common share for the three months ended December 31, 2024, was $0.55, consistent with the previous quarter[43]. - Comprehensive income for the three months ended December 31, 2024, was $4,282,000, compared to $8,451,000 for the previous quarter, showing a significant decrease[43]. Income and Expenses - Net interest income for the fourth quarter of 2024 increased by $709,000, or 3.1%, to $23.6 million compared to the prior quarter, driven by higher interest income on loans[6]. - Noninterest income decreased by $2.7 million, or 96.8%, to $87,000 in Q4 2024 compared to $2.7 million in the prior quarter[18]. - Noninterest expense decreased by $98,000, or 0.6%, to $16.0 million in Q4 2024 compared to $16.1 million in Q3 2024, but increased by $902,000, or 6.0%, compared to $15.1 million in Q4 2023[20]. - Total noninterest expense for the three months ended December 31, 2024, was $15,976,000, a decrease from $16,074,000 for the previous quarter[43]. Assets and Loans - Total assets reached $2.7 billion at December 31, 2024, up from $2.6 billion at both September 30, 2024, and December 31, 2023[5]. - Loans, net of deferred fees, totaled $2.0 billion at December 31, 2024, an increase from $1.9 billion at both September 30, 2024, and December 31, 2023[5]. - Nonperforming loans decreased to $9.5 million, or 0.48% of total loans, at December 31, 2024, down from $13.0 million, or 0.67% of total loans, a year earlier[5]. - Nonperforming loans totaled $9.5 million, or 0.48% of total loans, at December 31, 2024, down from $9.7 million, or 0.51%, at September 30, 2024[24]. Deposits and Equity - Deposits totaled $2.2 billion at December 31, 2024, an increase from $2.1 billion at both September 30, 2024, and December 31, 2023[9]. - Shareholders' equity increased to $324.4 million at December 31, 2024, from $321.7 million at September 30, 2024, reflecting $6.1 million of net income[34]. Credit Losses and Provisions - The allowance for credit losses for loans was $17.9 million, or 0.92% of total loans, at December 31, 2024, down from $22.0 million, or 1.14% of total loans, a year earlier[9]. - The Company recorded a reversal of provision for credit losses of $403,000 in Q4 2024, compared to provisions of $1.2 million in Q3 2024 and $2.3 million in Q4 2023[17]. - The company reported a reversal of provision for credit losses of $(403,000) for the three months ended December 31, 2024, compared to a provision of $1,245,000 for the previous quarter[43]. Margins and Ratios - The annualized net interest margin was 3.80% for the fourth quarter of 2024, compared to 3.73% for the preceding quarter and 3.86% for the same quarter a year ago[5]. - The effective tax rate for Q4 2024 was 24.3%, down from 27.4% in Q3 2024 and 27.3% in Q4 2023[22]. - Return on average assets was 0.94% for the quarter, consistent with the previous quarter, but down from 1.00% a year ago[47]. - The efficiency ratio for the quarter was 67.52%, up from 62.76% in the previous quarter, indicating a decline in operational efficiency[47]. Stock and Dividends - The company repurchased 1,500 shares of common stock at an average cost of $24.28 per share during the fourth quarter of 2024[9]. - A cash dividend of $0.15 per share was declared on November 20, 2024, and paid on January 10, 2025[9].