Bay p(BCML) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $5.0 million, a decrease of $1.4 million or 21.3% from Q2 2025 and a decrease of $1.0 million or 16.8% from Q3 2024[1][2] - Net interest income increased by $248,000, or 1.1%, to $23.4 million in Q3 2025 compared to $23.2 million in Q2 2025[6] - Noninterest income increased by $736,000, or 48.6%, to $2.2 million in Q3 2025 compared to $1.5 million in the prior quarter, but decreased by $496,000, or 18.1%, from $2.7 million in Q3 2024[20] - Noninterest expense rose by $192,000, or 1.2%, to $15.9 million in Q3 2025 compared to $15.8 million in Q2 2025, and decreased by $128,000, or 0.8%, from $16.1 million in Q3 2024[20] - Basic net income per common share for the three months ended September 30, 2025, was $0.46, compared to $0.54 for the same period in 2024, a decline of 14.81%[46] - Comprehensive income for the three months ended September 30, 2025, was $7,167,000, slightly up from $7,153,000 for the same period in 2024, an increase of 0.20%[46] Asset and Loan Management - Total assets remained steady at $2.6 billion as of September 30, 2025, consistent with both June 30, 2025, and September 30, 2024[5] - Loans totaled $2.0 billion at September 30, 2025, unchanged from June 30, 2025, and up from $1.9 billion at September 30, 2024[5] - Loans totaled $2.0 billion at September 30, 2025, an increase of $42.1 million from June 30, 2025, and $130.2 million from September 30, 2024[24] - Total loans as of September 30, 2025, were $2,041,683, an increase from $1,999,624 as of June 30, 2025[50] Credit Losses and Provisions - The allowance for credit losses for loans was $20.8 million, or 1.02% of total loans, as of September 30, 2025, compared to $18.7 million or 0.93% at June 30, 2025[10] - The company recorded a provision for credit losses of $2.9 million in Q3 2025, compared to $203,000 in Q2 2025 and $1.2 million in Q3 2024[10] - Provision for credit losses increased significantly to $2,973,000 for the three months ended September 30, 2025, compared to $203,000 for the previous quarter, indicating a rise in credit risk[46] - Nonperforming loans decreased to $13.9 million, or 0.68% of total loans, at September 30, 2025, down from $16.4 million, or 0.82%, at June 30, 2025[25] Deposits and Equity - Deposits totaled $2.2 billion at September 30, 2025, consistent with June 30, 2025, and up from $2.1 billion at September 30, 2024[10] - Deposits increased by $41.4 million, or 1.9%, to $2.2 billion at September 30, 2025, compared to $2.2 billion at June 30, 2025, and increased by $91.6 million, or 4.3%, from $2.1 billion at September 30, 2024[32] - Shareholders' equity rose to $334.3 million at September 30, 2025, compared to $330.6 million at June 30, 2025, driven by net income of $5.0 million[37] Interest and Yield - The annualized net interest margin for Q3 2025 was 3.72%, down from 3.77% in Q2 2025 and 3.73% in Q3 2024[5][18] - The average yield on loans increased to 5.76% in Q3 2025, compared to 5.63% in Q2 2025 and 5.53% in Q3 2024[11][18] - Total interest income for the three months ended September 30, 2025, was $34,950,000, an increase from $33,426,000 for the same period in 2024, representing a growth of 4.56%[46] Tax and Returns - The effective tax rate for Q3 2025 was 25.7%, down from 27.0% in the prior quarter and 27.4% in Q3 2024[23] - Return on average assets decreased to 0.75% for the three months ended September 30, 2025, from 0.98% for the three months ended June 30, 2025[50] Share Repurchase and Stock Performance - The company repurchased 33,300 shares of common stock at an average cost of $27.29 per share during Q3 2025[10] - The weighted average shares used to compute net income per common share for the three months ended September 30, 2025, was 10,929,779, a decrease from 11,148,482 for the same period in 2024[46] Equity and Book Value - Total equity and common shareholders' equity (GAAP) increased to $334,269 million in September 2025 from $321,681 million in September 2024, reflecting a year-over-year growth of 3.5%[54] - Book value per share (GAAP) increased to $30.62 in September 2025, compared to $28.90 in September 2024, representing a growth of 5.9%[54] - Tangible book value per share (Non-GAAP) rose to $26.88 in September 2025, up from $25.14 in September 2024, reflecting a year-over-year increase of 6.9%[54]