Bay p(BCML)2025-03-14 20:05Loan Portfolio - As of December 31, 2024, the company had net loans of 1.7 billion, which constitutes 85.5% of total loans[48] - The company’s commercial and industrial loans amounted to 184.4 million, or 9.4% of total loans[50] - At December 31, 2024, the company held 1.2 million, with a weighted average loan-to-value ratio of 55.5%[65] - The company originated 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 11.7 million, representing 0.6% of total loans[66] - The commercial real estate loan portfolio amounted to 1.67 billion in the previous year[68] - The largest commercial real estate loan had a net outstanding balance of 1.5 million, accounting for 0.1% of total loans, with undisbursed commitments of 109.7 million, or 5.6% of total loans, including a significant loan of 5.1 million, representing 0.3% of total loans, with unfunded commitments of 17.7 million, or 0.9% of total loans[81] - Loans in the On-Road Heavy-Duty Vehicle Air Quality Loan Program reached 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 23,614,000, a decrease of 14% from 131,710,000 in 2024, up from 89,876,000 in 2024, compared to 6,377,000 in 2024 from 64,133,000 in 2024, slightly down from 2.10, down from 1,586,000, compared to a loss of 0.45 in 2024 from 9,247,000[494] - Total comprehensive income for 2024 was 24,394,000 in 2023[490] - Net income for the year ended December 31, 2024, was 27.425 million in 2023[497] - Net cash provided by operating activities was 30.802 million in 2023[497] Assets and Liabilities - The total assets of BayCom Corp increased to 2,551,960 thousand in 2023, reflecting a growth of approximately 4.4%[485] - The total liabilities of the company were 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 312,869 thousand in 2023, indicating an increase of about 3.7%[485] - The company's cash and cash equivalents increased to 307,539 thousand in 2023, representing a growth of approximately 18.3%[485] - Noninterest and interest-bearing deposits rose to 2,132,750 thousand in 2023, representing an increase of approximately 4.8%[485] - Retained earnings increased 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 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]