Bay p(BCML) - 2024 Q3 - Quarterly Report

Financial Position - As of September 30, 2024, the company had approximately $2.6 billion in total assets,$1.9 billion in total loans, $2.1 billion in total deposits, and$321.7 million in shareholders' equity[130]. - Total assets increased by $10.4 million, or 0.4$2.6 billion as of September 30, 2024, primarily due to an increase in investment securities available-for-sale by $30.6 million, or 18.8$6.3 million, or 2.0%, to $301.3 million, mainly due to a$14.0 million decrease in federal funds sold and interest-bearing balances in banks[143]. - Total deposits increased by $3.7 million, or 0.2$2.1 billion at September 30, 2024, compared to December 31, 2023[175]. - The Bank had an available borrowing capacity of $512.7 million with the FHLB of San Francisco, with no borrowings outstanding as of September 30, 2024[232]. - BayCom Corp had liquid assets of$25.3 million as of September 30, 2024, to cover operating expenses and shareholder dividends[235]. Loan Portfolio - The total loan portfolio included $319.4 million, or 16.7$1.6 billion, or 83.3%, consisted of loans originated or purchased not as part of a business combination[131]. - Total loans decreased by $12.0 million, or 0.6$1.9 billion, attributed to $200.4 million in loan repayments and$14.0 million in loans sold, partially offset by $135.4 million in new loan originations[147]. - The commercial and industrial loan category increased by$11.6 million, or 7.1%, to $174.3 million, while residential loans rose by$17.2 million, or 20.1%, to $102.8 million[150]. - Acquired non-PCD loans totaled$151.6 million with a remaining net premium of $2.0 million, down from$187.7 million and a net premium of $2.1 million as of December 31, 2023[154]. - Acquired PCD loans amounted to$25.2 million with a remaining net non-credit discount of $1.6 million, compared to$27.5 million and a $1.8 million discount as of December 31, 2023[155]. - Modified loans to borrowers experiencing financial difficulty totaled$2.7 million as of September 30, 2024, down from $4.3 million at December 31, 2023[163]. Nonperforming Assets - Nonperforming assets, including nonperforming loans and other real estate owned, remained at zero as of September 30, 2024, consistent with December 31, 2023[156]. - As of September 30, 2024, nonperforming loans totaled$9.7 million, or 0.51% of total loans, down from $13.0 million, or 0.67$8.1 million and the pay-off of two non-accrual loans totaling $460,000 during Q3 2024[157]. - The total nonaccrual loans were$9.7 million as of September 30, 2024, down from $12.977 million at December 31, 2023[164]. - Nonperforming assets to total assets ratio was 0.38$6.0 million, a decrease of $613,000 or 9.2$0.54, down from $0.56 in the same period in 2023[185]. - Interest income for the three months ended September 30, 2024, was$33.4 million, an increase of $596,000 or 1.8$997,000, or 3.7%, to $26.2 million for the three months ended September 30, 2024[189]. - Noninterest income increased by$1.1 million, or 66.0%, to $2.7 million for the three months ended September 30, 2024, compared to$1.7 million for the same period in 2023[222]. - Noninterest expense decreased by $445,000, or 2.7$16.1 million for the three months ended September 30, 2024, compared to $16.5 million for the same period in 2023[225]. - The provision for income taxes decreased by$366,000, or 13.9%, to $2.3 million for the three months ended September 30, 2024, due to lower taxable income[227]. Interest Income and Expense - Interest income on investment securities increased by$689,000, or 40.4%, to $2.4 million for the three months ended September 30, 2024[191]. - Interest expense increased by$10.2 million, or 51.6%, to $30.0 million for the nine months ended September 30, 2024, compared to$19.8 million for the same period in 2023[206]. - Net interest income decreased by $6.8 million, or 9.1$67.6 million for the nine months ended September 30, 2024, compared to $74.3 million for the same period in 2023[211]. - The average rate paid on interest-bearing liabilities increased to 2.52$8.8 million to $321.7 million at September 30, 2024, primarily due to$17.5 million of net income earned[184]. - The Company declared a quarterly cash dividend of $0.10 per share, resulting in an average total dividend of approximately$1.1 million per quarter based on outstanding shares as of September 30, 2024[236]. - The Board of Directors authorized a new stock repurchase program for up to 560,000 shares, approximately 5.0% of the Company's outstanding common stock[239]. - As of September 30, 2024, the Bank was considered "Well Capitalized" under Federal Reserve regulations, with a Total Risk-Based Capital Ratio of 19.04%[240]. - The Bank's Common Equity Tier 1 capital exceeded the required capital conservation buffer as of September 30, 2024[243]. Strategic Growth and Acquisitions - The company has expanded its geographic footprint through ten strategic acquisitions since 2010, aiming for continued growth through both acquisitions and organic means[130]. - The company aims to continue pursuing strategic acquisitions in targeted market areas, which present varied acquisition opportunities[130]. Interest Rate Risk - The company is exposed to interest rate risk through its lending and deposit gathering activities[247]. - The results of operations are highly dependent on the company's ability to manage interest rate risk[247]. - Interest rate risk is considered a significant market risk that could materially affect the company's financial condition and results of operations[247]. - Interest rate risk is measured and assessed on a quarterly basis[247]. - There has not been a material change in the company's interest rate risk exposure since the 2023 Annual Report[247].