Bay p(US:BCML)2024-08-09 20:37Financial Position - As of June 30, 2024, the company had approximately $2.6 billion in total assets, $1.9 billion in total loans, $2.2 billion in total deposits, and $315.3 million in shareholders' equity[162]. - Total assets increased by $42.0 million, or 1.6%, to $2.6 billion as of June 30, 2024, primarily driven by a $83.7 million increase in cash and cash equivalents[174]. - Cash and cash equivalents rose by $83.7 million, or 27.2%, to $391.2 million, attributed to a $78.3 million increase in federal funds sold and interest-bearing balances[174]. - Total deposits increased by $42.3 million, or 2.0%, to $2.2 billion at June 30, 2024, from $2.1 billion at December 31, 2023[205]. - Shareholders' equity increased by $2.4 million to $315.3 million at June 30, 2024, from $312.9 million at December 31, 2023[212]. Loan Portfolio - The total loan portfolio included $343.5 million, or 18.4%, of acquired loans, while $1.5 billion, or 81.6%, consisted of originated loans[163]. - Total loans decreased by $63.6 million, or 3.3%, to $1.8 billion, resulting from $136.8 million in loan repayments and $4.7 million in loans sold[177]. - The real estate loan portfolio saw a total decrease of $55.5 million, or 3.2%, with notable declines in owner-occupied CRE loans by 6.5% and non-owner occupied CRE loans by 3.7%[180]. - The company experienced a decline in consumer loans by 18.4%, totaling $602,000 as of June 30, 2024[180]. - Nonperforming loans increased to $16.1 million, or 0.87% of total loans, as of June 30, 2024, up from $13.0 million, or 0.67% at December 31, 2023[185]. Interest Income and Expenses - Interest income for the three months ended June 30, 2024, was $32.4 million, an increase of $1.1 million or 3.7% from $31.3 million for the same period in 2023[217]. - Interest income on loans decreased by $1.7 million, or 6.2%, to $25.0 million for the three months ended June 30, 2024, from $26.7 million for the same period in 2023[218]. - Interest expense increased by $3.1 million, or 44.9%, to $10.1 million for the three months ended June 30, 2024, compared to $7.0 million for the same period in 2023[229]. - Interest income on investment securities increased by $488,000, or 28.8%, to $2.2 million for the three months ended June 30, 2024[220]. - Net interest income decreased by $2.0 million, or 8.1%, to $22.3 million for the three months ended June 30, 2024, compared to $24.3 million for the same period in 2023[239]. Credit Losses and Allowance - The company established an allowance for credit losses based on various factors, including historical experience and borrower repayment ability[168]. - The allowance for credit losses decreased by $3,000, or 13.6%, to $19.0 million[180]. - The allowance for credit losses for loans was $19.0 million, or 1.02% of total loans, as of June 30, 2024, down from $22.0 million, or 1.14% at December 31, 2023[196]. - Net charge-offs for the six months ended June 30, 2024, were $3.5 million, compared to $375,000 for the same period in 2023[198]. - Provision for credit losses for loans was $171,000 and $423,000 for the three and six months ended June 30, 2024, compared to reversals of $1.3 million and $985,000 for the same periods in 2023[252]. Noninterest Income and Expenses - Total noninterest income increased by $397,000, or 36.6%, to $1.5 million for the three months ended June 30, 2024, compared to $1.1 million for the same period in 2023[254]. - Noninterest income for the six months ended June 30, 2024, rose by $898,000, or 33.9%, to $3.5 million compared to $2.6 million for the same period in 2023[256]. - Total noninterest expense decreased by $545,000, or 3.3%, to $16.0 million for the three months ended June 30, 2024, compared to $16.6 million for the same period in 2023[258]. Capital and Dividends - The company declared a quarterly cash dividend of $0.10 per share, with an expected total dividend payment of approximately $1.1 million per quarter based on outstanding shares[272]. - A new stock repurchase program was announced for the repurchase of up to 560,000 shares, approximately 5.0% of the Company's outstanding common stock[273]. - The Bank maintained "Well Capitalized" status with a Total Risk-Based Capital Ratio of 18.97% as of June 30, 2024[279]. - The Common Equity Tier 1 Ratio for BayCom Corp was 14.29% as of June 30, 2024, exceeding the minimum requirement for "Well Capitalized" status[279]. Market and Interest Rate Risk - Interest rate risk is considered a significant market risk, with assessments conducted quarterly[283]. - The company is exposed to interest rate risk through its lending and deposit gathering activities[283]. - Interest rate risk is considered a significant market risk that could materially affect the company's financial condition and results of operations[283]. - The company measures and assesses interest rate risk on a quarterly basis[283]. - There has not been a material change in the company's interest rate risk exposure since the 2023 Annual Report[283].