Loan Portfolio - As of December 31, 2022, the company had net loans of $2.0 billion, representing 80.4% of total assets[40] - The loan portfolio primarily consists of commercial real estate loans totaling $1.7 billion, which constitutes 85.0% of total loans[41] - The company’s commercial and industrial loans amounted to $188.5 million, representing 9.3% of total loans as of December 31, 2022[41] - The aggregate amount of loans to the 10 largest borrowers was approximately $180.0 million, or 8.9% of total loans[43] - The company held $1.8 billion in loans secured by real estate, representing 90.5% of total loans receivable[53] - The commercial real estate loan portfolio included $107.6 million of loans originated under the SBA's 504 loan program as of December 31, 2022[59] - During 2022, the company originated $36.4 million in commercial real estate SBA 7(a) loans and sold $28.4 million of the guaranteed portion, recognizing a gain of $2.2 million[60] - The average loan size in the commercial real estate portfolio was approximately $1.1 million with an estimated weighted average loan-to-value ratio of 45.5%[61] - The company’s authorized legal lending limit for unsecured loans was $53.4 million, and for specific secured loans, it was $89.0 million as of December 31, 2022[52] - The company’s commercial real estate loans included $658.2 million of owner-occupied loans, or 32.6% of the total loan portfolio[54] - As of December 31, 2022, agricultural real estate secured loans totaled $17.3 million, representing 0.9% of total loans[62] - The commercial real estate loan portfolio amounted to $1,704.7 million, with retail loans making up 24.4% and multifamily residential loans at 14.1%[65] - Construction and land loans outstanding were $13.2 million, accounting for 0.7% of total loans, with an average loan size of approximately $235,000[66] - One-to-four family residential loans totaled $110.6 million, or 5.5% of total loans, including a significant loan of $26.8 million secured by a multi-unit residential property[70] - Home equity loans and lines of credit reached $7.7 million, representing 0.4% of total loans, with unfunded commitments totaling $8.7 million[71] - Commercial and industrial loans included $19.7 million in SBA 7(a) loans, with $14.8 million of the guaranteed portion not yet sold as of December 31, 2022[77] - Agricultural operating loans amounted to $17.2 million, or 1.0% of total loans, reflecting the dependency on the agricultural business's cash flow for repayment[79] - Loans enrolled in the California Capital Access Program totaled $26.3 million, representing 1.3% of total loans, providing coverage for losses on qualified loans[80] - The largest commercial real estate loan had a net outstanding balance of $26.8 million, secured by a church in San Diego, California[65] - The average loan-to-value ratio for construction and land loans was estimated at 50.7%[66] - As of December 31, 2022, loans enrolled in the On-Road Heavy-Duty Vehicle Air Quality Loan Program totaled $26.2 million, representing 1.3% of total loans[82] - Consumer loans amounted to $4.2 million, which is 0.2% of total loans as of December 31, 2022[85] Financial Position - The investment portfolio totaled $167.8 million with an average yield of 3.4% and an estimated duration of approximately 6.7 years as of December 31, 2022[101] - At December 31, 2022, the Bank had $70.3 million in reciprocal CDARS deposits and $56.3 million in ICS deposits[93] - The Bank had $473.6 million of available credit capacity with the Federal Home Loan Bank as of December 31, 2022[95] - Outstanding subordinate debt, net of costs to issue, totaled $63.7 million as of December 31, 2022[99] - The Company discontinued its escrow services in 2021, which previously provided a low-cost core deposit base[94] - The Bank's borrowing from the Federal Reserve Bank was closed during 2022, with no outstanding borrowings as of December 31, 2022[95] Regulatory Compliance - The Company is subject to significant regulation by federal and state laws, which may impact its operations and financial condition[104] - The Bank paid $680,000 in FDIC assessments for the year ended December 31, 2022[115] - As of December 31, 2022, the Bank met the requirements to be "well capitalized" and satisfied the fully phased-in capital conservation buffer requirement[124] - The Bank's aggregate recorded loan balances for construction, land development, and land loans were 7.1% of total regulatory capital as of December 31, 2022[134] - The Bank's commercial real estate loans represented 297.8% of total regulatory capital as of December 31, 2022[134] - The FDIC's base assessment rates are between 3 to 30 basis points, subject to adjustments based on supervisory ratings and financial ratios[112] - The FDIC projected that the DIF reserve ratio was at risk of not reaching the statutory minimum of 1.35% by September 30, 2028[113] - The Bank's adoption of the CECL model is estimated to result in a $1 million to $3 million increase to its allowance for credit losses for loans[126] - The revised assessment rate schedules by the FDIC are intended to increase the likelihood that the DIF reserve ratio reaches the statutory minimum level of 1.35% by September 30, 2028[115] - The minimum capital ratios required include a CET1 capital ratio of 4.5%, a Tier 1 capital ratio of 6.0%, and a total risk-based capital ratio of 8.0%[120] - The Bank's total average consolidated assets less average tangible equity capital is used to determine the assessment base for FDIC[112] - The Bank was in compliance with the reserve requirements set by the Federal Reserve as of December 31, 2022[140] Community and Employee Engagement - The Bank received a "satisfactory" rating during its most recent Community Reinvestment Act examination, which assesses performance in meeting community credit needs[142] - Dividends payable by the Bank to the Company depend on the Bank's earnings and capital position, limited by federal and state laws[143] - The Bank must maintain a capital conservation buffer requirement to avoid restrictions on dividend payments[144] - The Bank is subject to the California Consumer Privacy Act, which imposes requirements for data privacy and can lead to significant compliance costs[148] - The Bank's policies comply with the USA Patriot Act and the Bank Secrecy Act, which require programs to prevent money laundering and terrorist financing[149] - The Company is subject to comprehensive regulation by the Federal Reserve and must file quarterly reports[152] - The Bank Holding Company Act requires the Company to serve as a source of financial strength to its subsidiary banks[153] - The Federal Reserve may approve the ownership of shares by a bank holding company in companies closely related to banking activities[157] - Bank holding companies with less than $3 billion in consolidated assets are generally no longer subject to the Federal Reserve's capital regulations[158] - The company will maintain its status as an "emerging growth company" until it reaches total annual gross revenues of $1.07 billion or more, or until December 31, 2023, whichever comes first[159] - As of December 31, 2022, the company had approximately 374 full-time equivalent employees, with 72% identifying as female and 28% as male[175] - The average tenure of employees was 5.0 years, with 68% of management roles held by women[175] - The company is committed to supporting its community during the COVID-19 pandemic, with all branches open as of December 31, 2022[167] - The company faces competition from various financial institutions, including credit unions and FinTech companies, in both commercial and retail banking[168][171] - The Federal Reserve requires prior written notice for stock repurchases if the gross consideration equals 10% or more of the company's consolidated net worth[166] - The company is subject to heightened legal and regulatory compliance risks due to the complex legal landscape governing its operations[174] - The company has a diverse workforce, with 34% White, 31% Asian, 25% Hispanic/Latino, 5% Black, and 3% identifying as Two or More Races[175] - The company emphasizes employee development through ongoing training programs and educational reimbursement[181] Leadership and Management - Ms. Mary Therese Curley joined the Bank as Executive Vice President and Director of Labor Service Division in April 2017, and was appointed Chief Credit Officer in 2022[190] - Mr. Rick Pak has been responsible for overall organic loan growth in Commercial Real Estate and various government guaranteed programs since January 2019[191] - Ms. Izabella Zhu Mitchell oversees risk governance and regulatory relations as Chief Risk Officer since September 2013[192]

Table of Contents BAYCOM CORP | --- | --- | --- | |----------------------------------------------------------------|-----------------------------------------------------------|-------------------------------------------| | California | (Exact Name of Registrant as Specified in its Charter) \n | 37-1849111 | | (State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) | | 500 Ygnacio Valley Road, Suite 200, Walnut Creek, California | | 94596 | | (Address of princi ...

Table of Contents BAYCOM CORP | --- | --- | --- | |----------------------------------------------------------------|-----------------------------------------------------------|-------------------------------------------| | California | (Exact Name of Registrant as Specified in its Charter) \n | 37-1849111 | | (State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) | | 500 Ygnacio Valley Road, Suite 200, Walnut Creek, California | | 94596 | | (Address of princi ...

Table of Contents BAYCOM CORP | --- | --- | --- | |----------------------------------------------------------------|-----------------------------------------------------------|-------------------------------------------| | California | (Exact Name of Registrant as Specified in its Charter) \n | 37-1849111 | | (State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) | | 500 Ygnacio Valley Road, Suite 200, Walnut Creek, California | | 94596 | | (Address of princi ...

Loan Portfolio - As of December 31, 2021, the company had net loans of $1.6 billion, representing 70.1% of total assets[39] - The loan portfolio primarily consists of commercial real estate loans totaling $1.3 billion, which constitutes 78.8% of total loans[40] - Commercial and industrial loans, including PPP loans, amounted to $230.2 million, representing 13.8% of total loans[40] - The company held $1.4 billion in loans secured by real estate, accounting for 85.9% of total loans receivable[53] - The average loan size in the commercial real estate portfolio was approximately $1.0 million with a weighted average loan-to-value ratio of 49.3%[59] - As of December 31, 2021, the aggregate amount of loans to the 10 largest borrowers was approximately $148.4 million, or 8.9% of total loans[43] - The company originated $39.9 million in commercial real estate SBA 7(a) loans during 2021, selling $32.8 million of the guaranteed portion[58] - The commercial real estate loan portfolio included $44.0 million of loans originated under the SBA's 504 loan program[57] - As of December 31, 2021, agricultural real estate secured loans totaled $17.3 million, representing 1.3% of total loans[63] - The commercial real estate loan portfolio amounted to $1.3 billion, with retail loans at $326.3 million (25.1% of total), multifamily residential at $203.9 million (15.7%), and hotel/motel loans at $171.6 million (13.2%)[65] - Construction and land loans outstanding were $13.4 million, accounting for 0.8% of total loans, with an average loan size of approximately $147,000 and a weighted average loan-to-value ratio of 51.4%[66] - The one-to-four family loan portfolio totaled $118.4 million, or 7.1% of total loans, primarily acquired through mergers and purchases[70] - Home equity loans and lines of credit amounted to $10.3 million, representing 0.6% of total loans, with unfunded commitments totaling $15.6 million[71] - Commercial and industrial loans included $14.6 million in SBA 7(a) loans originated in 2021, with $1.4 million as the unguaranteed portion[76] - As of December 31, 2021, the bank received SBA forgiveness for 1,794 PPP loans totaling $164.8 million, leaving 306 loans with an aggregate balance of $69.6 million[77] - Agricultural operating loans totaled $770,000, representing 0.05% of total loans, reflecting the dependency on the agricultural business's cash flow for repayment[78] - Consumer loans amounted to $5.1 million, or 0.3% of total loans, with higher risk due to potential difficulties in assessing collateral value[81] Financial Position - As of December 31, 2021, the investment portfolio totaled $174.4 million with an average yield of 3.0% and an estimated duration of approximately 5.5 years[95] - The company had $12.5 million in reciprocal CDARS and $96.1 million in one-way CDARS and ICS deposits as of December 31, 2021[87] - At December 31, 2021, there were no FHLB borrowings outstanding, with $483.1 million of available credit capacity with the FHLB[89] - The company maintained a short-term borrowing line of credit with the Federal Reserve Bank with available credit capacity of $69.6 million as of December 31, 2021[89] - The company paid $580,000 in FDIC assessments for the year ending December 31, 2021[103] - Deposits related to Business Escrow Services totaled $1.7 million and $4.0 million at December 31, 2021 and December 31, 2020, respectively[88] - The company has implemented deposit gathering strategies that utilize technology to enhance commercial depository services[85] - The company offers a variety of deposit accounts with competitive interest rates to attract a diverse client base[83] - The company has an approved secured borrowing facility with the FHLB for up to 25% of total assets[89] Capital Adequacy - As of December 31, 2021, the Bank met the requirements to be "well capitalized" with a Tier 1 risk-based capital ratio of at least 8% and a total risk-based capital ratio of at least 10%[113] - The minimum capital ratios required include a common equity Tier 1 (CET1) capital ratio of 4.5%, a Tier 1 capital ratio of 6.0%, and a total risk-based capital ratio of 8.0%[111] - The Bank's aggregate recorded loan balances for construction, land development, and land loans were 7.1% of total regulatory capital as of December 31, 2021[123] - The Bank's commercial real estate loans represented 342.5% of total regulatory capital as of December 31, 2021, indicating a relatively high concentration in commercial real estate loans[124] - The capital conservation buffer requirement mandates an additional CET1 capital greater than 2.5% of risk-weighted assets above the required minimum risk-based capital levels[112] - The Bank's compliance with reserve requirements was confirmed as of December 31, 2021, following the Federal Reserve's reduction of reserve requirement ratios to zero percent effective March 26, 2020[129] - The Community Bank Leverage Ratio (CBLR) provides a simple measure of capital adequacy for qualifying institutions, requiring a leverage ratio greater than 9.0%[114] Regulatory Compliance - The Bank received a "satisfactory" rating during its most recent Community Reinvestment Act examination, reflecting its performance in meeting community credit needs[132] - The Bank's dividends are limited by federal and state laws, dependent on its earnings and capital position, and cannot exceed the lesser of retained earnings or net income for the last three fiscal years[134] - The Federal Reserve requires that covered transactions between a bank and its affiliates be on terms as favorable to the bank as transactions with non-affiliates, limiting such transactions to 10% of the bank's capital and surplus[130] - The Bank is required to notify its primary federal regulator within 36 hours of determining a significant cybersecurity incident has occurred[135] - The California Consumer Privacy Act (CCPA) grants California residents rights regarding their personal information, including the right to request deletion and opt-out of sales[136] - The Bank must comply with various consumer protection laws, including the Truth-in-Lending Act and the Fair Credit Reporting Act, to avoid penalties and enforcement actions[142] - The Company is subject to comprehensive regulation by the Federal Reserve and must file quarterly reports[143] - The Dodd-Frank Act requires public companies to provide shareholders with a non-binding vote on executive compensation at least once every three years[149] - The Company is considered "well capitalized" and is not subject to individualized capital level requirements under the Federal Reserve's regulations[148] - The Federal Reserve must approve any acquisition of control of a bank located in a different state[154] - The Federal Reserve has issued guidelines regarding cash dividends, emphasizing the need for adequate capital before payment[156] - A bank holding company must notify the Federal Reserve prior to purchasing or redeeming equity securities if the amount exceeds 10% of its consolidated net worth[157] Workforce and Diversity - As of December 31, 2021, the company had approximately 307 full-time equivalent employees, with 76% identifying as female and 24% as male[165] - The average tenure of employees was 5.2 years, with a workforce composition of 41% White, 27% Asian, 22% Hispanic/Latino, 5% Black, 2% Two or More Races, and 3% Other[167] - The Board of Directors includes three female directors and two directors from underrepresented communities, reflecting a commitment to diversity[169] - The company offers a comprehensive total rewards program, including annual bonuses, a matched 401(k) plan, and various health benefits to attract and retain talent[169] - The company is focused on developing talent from within while also supplementing with external hires to foster loyalty and continuous improvement[172] Market Competition and Risks - The company emphasizes competitive pricing, personalized service, and community involvement to effectively compete in the financial services market[163] - The company faces competition from larger financial institutions and FinTech companies, which may have greater resources and product offerings[161] - The company is committed to maintaining a strong risk management process while pursuing growth strategies[182] - The company noted that loan delinquencies, problem assets, and foreclosures may increase due to economic downturns, particularly in the San Francisco Bay Area[193] - The company faces risks from potential declines in the value of collateral for loans, especially real estate, which could lead to increased loan losses[197] - The Federal Reserve's near-zero federal funds rate may reduce the yield on assets more than the decline in interest-bearing liabilities, impacting net interest margin[188] - The company highlighted that significant inflation and supply chain disruptions continue to affect its operational environment[187] - The uncertain future developments related to COVID-19 could materially and adversely affect the company's business and financial condition[191] Acquisition Strategy - The company intends to continue selectively acquiring other financial institutions, but the market for acquisitions remains highly competitive[235] - The company is incurring time and expense associated with identifying, evaluating, and negotiating potential acquisitions[237] - The company’s strategy of pursuing acquisitions exposes it to financial, execution, compliance, and operational risks that could adversely affect growth prospects[234] Loan Losses and Provisions - The company believes the allowance for loan losses is adequate to cover probable incurred losses in the loan portfolio as of December 31, 2021[41] - The company’s allowance for loan losses may prove insufficient to absorb potential losses, requiring additional provisions[222] - The company is evaluating the impact of the CECL accounting model, which may require an increase in the allowance for loan losses starting from the first fiscal year after December 15, 2022[225] - The company has not incurred any other-than-temporary impairments on its securities portfolio for the year ended December 31, 2021[233]

Table of Contents BAYCOM CORP | --- | --- | --- | |----------------------------------------------------------------|-----------------------------------------------------------|-------------------------------------------| | California | (Exact Name of Registrant as Specified in its Charter) \n | 37-1849111 | | (State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) | | 500 Ygnacio Valley Road, Suite 200, Walnut Creek, California | | 94596 | | (Address of princi ...

Table of Contents BAYCOM CORP | --- | --- | --- | |----------------------------------------------------------------|-----------------------------------------------------------|-------------------------------------------| | California | (Exact Name of Registrant as Specified in its Charter) \n | 37-1849111 | | (State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) | | 500 Ygnacio Valley Road, Suite 200, Walnut Creek, California | | 94596 | | (Address of princi ...

Table of Contents BAYCOM CORP | --- | --- | --- | |----------------------------------------------------------------|-----------------------------------------------------------|-------------------------------------------| | California | (Exact Name of Registrant as Specified in its Charter) \n | 37-1849111 | | (State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) | | 500 Ygnacio Valley Road, Suite 200, Walnut Creek, California | | 94596 | | (Address of princi ...

Table of Contents Common Stock, no par value per shareBCMLThe NASDAQ Stock Market LLC Title of each class Trading Symbol(s) Name of each exchange on which registered Securities Registered Pursuant to Section 12(g) of the Act: None UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 31, 2020 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURI ...

Table of Contents BAYCOM CORP | --- | --- | --- | |----------------------------------------------------------------|-----------------------------------------------------------|-------------------------------------------| | California | (Exact Name of Registrant as Specified in its Charter) \n | 37-1849111 | | (State or other jurisdiction of incorporation or organization) | | (I.R.S. Employer Identification No.) | | 500 Ygnacio Valley Road, Suite 200, Walnut Creek, California | | 94596 | | (Address of princi ...