BayCom Corp (“BayCom” or the “Company”) (NASDAQ: BCML), the
holding company for United Business Bank (the “Bank” or “UBB”),
announced earnings of $5.6 million, or $0.50 per diluted common
share, for the second quarter of 2024, compared to earnings of $5.9
million, or $0.51 per diluted common share, for the first quarter
of 2024 and $7.2 million, or $0.59 per diluted common share, for
the second quarter of 2023.
Net income for the second quarter of 2024 compared to the first
quarter of 2024 decreased $277,000, or 4.7%, primarily as a result
of a $112,000 decrease in net interest income and a $579,000
decrease in noninterest income, partially offset by a $81,000
decrease in provision for credit losses, a $59,000 decrease in
noninterest expense and a $274,000 decrease in provision for income
taxes. Net income for the second quarter of 2024 compared to the
second quarter of 2023 decreased $1.6 million, or 22.3%, primarily
as a result of a $2.0 million decrease in net interest income
partially offset by a $397,000 increase in noninterest income, a
$545,000 decrease in noninterest expenses, and a $869,000 decrease
in provision for income taxes.
Net income for the six months ended June 30, 2024 compared to
the same period in 2023 decreased $2.9 million, or 20.3%, primarily
as a result of a $4.8 million decrease in net interest income,
partially offset by a $898,000 increase in noninterest income, a
$1.0 million decrease in noninterest expense and a $1.4 million
decrease in provision for income taxes.
George Guarini, President and Chief Executive Officer,
commented, “Our financial results have continued on a similar trend
for the past five quarters; however, the decline in net interest
margin has slowed. We continue to see low loan demand, but our
deposit base has stabilized. Overall, our financial condition
remains strong, and we have not observed systemic credit
weakness.”
Looking ahead, Guarini expressed cautious optimism, stating, "We
anticipate continued challenges in loan demand and M&A
prospects; however, we believe the tide may be turning in loan
demand and are positioning our lending platform accordingly. We
remain vigilant in managing operating costs and remain committed to
strategically repurchasing shares and paying cash dividends,
reinforcing our dedication to delivering long-term value for both
our clients and shareholders."
Second Quarter Performance Highlights:
- Annualized net interest margin was 3.69% for the current
quarter, compared to 3.72% for the preceding quarter and 4.02% for
the same quarter a year ago.
- Annualized return on average assets was 0.87% for the current
quarter, compared to 0.92% for the preceding quarter and 1.13% for
the same quarter a year ago.
- Assets totaled $2.6 billion at June 30, 2024, March 31, 2024,
and June 30, 2023.
- Loans, net of deferred fees, totaled $1.9 billion at both June
30, 2024 and March 31, 2024, compared to $2.0 billion at June 30,
2023.
- Nonperforming loans totaled $16.1 million or 0.87% of total
loans, at June 30, 2024, compared to $16.5 million or 0.87% of
total loans, at March 31, 2024, and $12.8 million, or 0.64% of
total loans, at June 30, 2023.
- The allowance for credit losses for loans totaled $19.0
million, or 1.02% of total loans outstanding, at June 30, 2024,
compared to $18.9 million, or 1.00% of total loans outstanding, at
March 31, 2024, and $19.1 million, or 0.95% of total loans
outstanding, at June 30, 2023.
- A $171,000 provision for credit losses was recorded during the
current quarter, compared to a $252,000 provision for credit losses
in the prior quarter and a $1.3 million reversal of credit losses
in the same quarter a year ago.
- Deposits totaled $2.2 billion at June 30, 2024, compared to
$2.1 billion at both March 31, 2024 and June 30, 2023. At June 30,
2024, noninterest-bearing deposits totaled $618.6 million, or 28.4%
of total deposits, compared to $630.0 million, or 29.4% of total
deposits, at March 31, 2024, and $664.1 million, or 30.9% of total
deposits, at June 30, 2023.
- The Company repurchased 204,794 shares of common stock at an
average cost of $20.17 per share during the second quarter of 2024,
compared to 198,120 shares of common stock repurchased at an
average cost of $20.20 per share during the first quarter of 2024,
and 543,955 shares of common stock repurchased at an average cost
of $16.71 per share during the second quarter of 2023.
- On May 24, 2024, the Company announced the declaration of a
cash dividend on the Company’s common stock of $0.10 per share,
which was paid on July 11, 2024 to shareholders of record as of
June 13, 2024.
- The Bank remained a “well-capitalized” institution for
regulatory capital purposes at June 30, 2024.
Earnings
Net interest income decreased $112,000, or 0.5%, to $22.3
million for the second quarter of 2024 from $22.4 million in the
prior quarter, and decreased $2.0 million, or 8.2%, from $24.3
million in the same quarter a year ago. The decrease in net
interest income from the previous quarter reflects a minimal
decrease in interest income on loans and an increase in interest
expense on deposits, partially offset by increases in interest
income on federal funds sold and interest-bearing balances in banks
and interest income on investment securities. The decrease in net
interest income from the same quarter in 2023 reflects an increase
in interest expense on deposits and a decrease in interest income
on loans, partially offset by increases in interest income on
federal funds sold and interest-bearing balances in banks, interest
income on investment securities and dividends on FHLB stock.
Average interest-earning assets increased $9.6 million, or 0.40%,
and increased $9.0 million, or 0.37%, for the second quarter of
2024 compared to the first quarter of 2024 and the second quarter
of 2023, respectively. The average yield earned (annualized) on
interest earning assets for the second quarter of 2024 was 5.37%,
compared to 5.28% for the first quarter of 2024 and 5.18% for the
second quarter of 2023. The average rate paid (annualized) on
interest-bearing liabilities for the second quarter of 2024 was
2.54%, compared to 2.40% for the first quarter of 2024, and 1.82%
for the second quarter of 2023. The increases in average yield
earned on interest-earning assets and the average rate paid on
interest-bearing liabilities for the second quarter of 2024
compared to the same quarter a year ago reflect rising market
interest rates.
Interest income on loans, including fees, decreased $243,000, or
1.0%, from $25.3 million for the prior quarter to $25.0 million for
the three months ended June 30, 2024, primarily due to a $52.0
million decrease in the average balance of loans, partially offset
by a nine basis point increase in the average loan yield. Interest
income on loans, including fees, decreased $1.7 million, or 6.2%,
for the three months ended June 30, 2024 from $26.7 million for
three months ended June 30, 2023, primarily due to a $168.5 million
decrease in the average balance of loans, partially offset by a 19
basis point increase in the average loan yield. The average balance
of loans was $1.9 billion for both the second quarter and first
quarter of 2024, compared to $2.0 billion for the second quarter of
2023. The average yield on loans was 5.41% for the second quarter
of 2024, compared to 5.32% for the first quarter of 2024 and 5.28%
for the second quarter of 2023. The increase in the average yield
on loans from the first quarter of 2024 to the second quarter of
2024 was due in part to reversal of interest on new non-accrual
loans during the first quarter of 2024, with no similar activity
during the second quarter of 2024. The increase in the average
yield on loans from the second quarter of 2023 was due to the
impact of increased rates on variable rate loans as well as new
loans being originated at higher market interest rates.
Interest income on loans included $124,000, $98,000, and $5,000
in accretion of the net discount on acquired loans for the three
months ended June 30, 2024, March 31, 2024, and June 30, 2023,
respectively. The balance of the net discounts on these acquired
loans totaled $540,000, $392,000, and $331,000 at June 30, 2024,
March 31, 2024, and June 30, 2023, respectively. Interest income
included fees related to prepayment penalties of $70,000 for the
three months ended June 30, 2024, compared to $176,000 and $48,000
for the three months ended March 31, 2024 and June 30, 2023,
respectively.
Interest income on investment securities increased $225,000, or
11.5%, to $2.2 million for the three months ended June 30, 2024,
compared to $2.0 million for the three months ended March 31, 2024,
and increased $488,000, or 28.8%, from $1.7 million for the three
months ended June 30, 2023. The average yield on investment
securities increased 26 basis points to 4.50% for the three months
ended June 30, 2024, compared to 4.24% for the three months ended
March 31, 2024, and increased 51 basis points from 3.99% for the
three months ended June 30, 2023. The increases in average yield
were due to higher market interest rates on newly purchased
securities. The average balance of investment securities totaled
$195.1 million for the three months ended June 30, 2024, compared
to $185.7 million and $170.1 million for the three months ended
March 31, 2024 and June 30, 2023, respectively. In addition, during
the second quarter of 2024, we received $395,000 in cash dividends
on our FRB and FHLB stock, down 5.0% from $416,000 received in the
first quarter of 2024 and up 16.2% from $340,000 received in the
second quarter of 2023.
Interest income on federal funds sold and interest-bearing
balances in banks increased $704,000, or 17.1%, to $4.8 million for
the three months ended June 30, 2024, compared to $4.1 million for
the three months ended March 31, 2024, and increased $2.3 million,
or 88.2%, from $2.6 million for the three months ended June 30,
2023, as a result of changes in the average yield and average
balance. The average yield on federal funds sold and
interest-bearing balances in banks decreased one basis point to
5.47% for the three months ended June 30, 2024, compared to 5.48%
for the three months ended March 31, 2024, and increased 33 basis
points from 5.14% for the three months ended June 30, 2023. The
average balance of federal funds sold and interest-bearing balance
in banks totaled $354.3 million for the three months ended June 30,
2024, compared to $302.1 million and $199.9 million for the three
months ended March 31, 2024 and June 30, 2023, respectively. The
increase in average balance during the current quarter compared to
the prior quarter and the same quarter one year ago was due to
higher retained cash balances as a result of lower new loan
production.
Interest expense for the three months ended June 30, 2024
increased $774,000, or 8.3%, to $10.1 million, compared to $9.3
million for the three months ended March 31, 2024, and increased
$3.1 million, or 44.9%, compared to $7.0 million for the three
months ended June 30, 2023, reflecting higher funding costs
primarily related to increased rates of interest on our deposits
due to higher market rates. The average balance of deposits totaled
$2.1 billion for the second quarter of 2024, first quarter of 2024
and second quarter of 2023. The average cost of funds for the
second quarter of 2024 was 2.54%, compared to 2.40% for the first
quarter of 2024 and 1.82% for the second quarter of 2023. The
increase in the average cost of funds during the current quarter
compared to the prior quarter of 2024 and the second quarter of
2023 was due to higher interest rates paid on money market and time
deposits due to increased competition and pricing pressures and a
change in deposit mix due to a shift of deposits from
noninterest-bearing accounts to higher costing money market and
time deposits. The average cost of deposits for the three months
ended June 30, 2024 was 1.69%, compared to 1.55% for the three
months ended March 31, 2024, and 1.10% for the three months ended
June 30, 2023. The average balance of noninterest-bearing deposits
decreased $19.3 million, or 3.01%, to $620.5 million for the three
months ended June 30, 2024, compared to $639.7 million for the
three months ended March 31, 2024 and decreased $57.0 million, or
8.4%, compared to $677.5 million for the three months ended June
30, 2023.
Annualized net interest margin was 3.69% for the second quarter
of 2024, compared to 3.72% for the first quarter of 2024 and 4.02%
for the second quarter of 2023. The average yield on interest
earning assets for the second quarter of 2024 increased nine basis
points and 19 basis points over the average yields for the first
quarter of 2024 and the second quarter of 2023, respectively, while
the average rate paid on interest-bearing liabilities for second
quarter of 2024 increased 14 basis points and 72 basis points over
the average rates paid for the first quarter of 2024 and the second
quarter of 2023, respectively. Net interest margin in the second
quarter of 2024 as compared to the first quarter of 2024 and second
quarter of 2023 was negatively impacted by increasing funding costs
which outpaced, on a percentage basis, increasing yields on loans
and investment securities.
Accretion of the net discount had minimal to no impact on the
average yield on loans during the second quarter of 2024, the first
quarter of 2024 and the second quarter of 2023.
The Company recorded a $171,000 provision for credit losses for
the second quarter of 2024, compared to provision for credit losses
of $252,000 and $1.3 million reversal of credit losses for the
first quarter of 2024 and the second quarter of 2023, respectively.
The provision for credit losses in the second quarter of 2024 was
mainly driven by a replenishment of the allowance, partially offset
by decreases in outstanding loan balances, leading to lower
quantitative reserves. Net charges-offs totaled $76,000 during the
second quarter of 2024, which included a $160,000 charge-off for
one loan, which was fully specifically reserved for at March 31,
2024. No changes were made to the qualitative risk factor
conclusions during the second quarter of 2024. The quantitative
reserve was impacted by improvement in forecasted economic
conditions for national gross domestic product, offset by
increasing forecasted national unemployment, both of which are key
indicators utilized to estimate credit losses.
Noninterest income for the second quarter of 2024 decreased
$579,000, or 28.08%, to $1.5 million compared to $2.1 million in
the prior quarter of 2024, and increased $397,000, or 36.6%,
compared to $1.1 million for the second quarter of 2023. The
decrease in noninterest income for the current quarter compared to
the prior quarter of 2024 was primarily due to a $894,000 decrease
in gain on equity securities as a result of deterioration in fair
value adjustments on these securities due to changes in market
conditions and a $105,000 decrease in service charges and other
fees, partially offset by a $287,000 increase in gain on sale of
loans, a $101,000 increase in income on investment in a Small
Business Investment Company (“SBIC”) fund and a $49,000 increase in
loan servicing fees and other fees. The increase in noninterest
income for the current quarter compared to the same quarter in 2023
was primarily due to a $596,000 increase in gain on equity
securities and a $219,000 increase in gain on sale of loans,
partially offset by a $154,000 decrease in income on an investment
in SBIC fund, a $152,000 decrease in loan servicing fees and other
fees due to lower loan origination volume and a $148,000 decrease
in service charges and other fees primarily due to fewer customer
deposits placed in Certificate of Deposit Account Registry Service
(“CDARS”) and Insured Cash Sweep (“ICS”) money market product
services via the IntraFi Network.
Noninterest expense for the second quarter of 2024 decreased
$59,000, or 0.4%, to $16.1 million compared to $16.1 million for
the prior quarter of 2024, and decreased $545,000, or 3.3%,
compared to $16.6 million for the second quarter of 2023. The
decrease in noninterest expense for current quarter compared to the
prior quarter of 2024 was primarily due to a $394,000 decrease in
salaries and employee benefits as a result of a decrease in the
number of full-time equivalent employees and a $103,000 decrease in
data processing expense primarily due to vendor data processing
invoice credits, partially offset by a $459,000 increase in other
expenses due to increased legal costs and fraudulent check losses.
The decrease in noninterest expense for the second quarter of 2024
compared to the second quarter of 2023 was primarily due to a $1.1
million decrease in salaries and employee benefits as a result of a
$485,000 decrease in bonus accrual and decrease in full-time
equivalent employees, partially offset by a $365,000 increase in
other expense due to increased legal costs, professional fees, FDIC
insurance costs, and fraudulent check losses, and a $159,000
increase in occupancy and equipment expense.
The provision for income taxes decreased $274,000, or 12.1%, to
$2.0 million for the second quarter of 2024 compared to $2.3
million for the first quarter of 2024 and decreased $869,000, or
30.3%, from $2.9 million for the second quarter of 2023. The
effective tax rate for the second quarter of 2024 was 26.3%,
compared to 27.9% for the prior quarter of 2024 and 28.4% for the
second quarter of 2023. The effective tax rate remained relatively
consistent with the prior quarter of 2024 and was lower compared to
the second quarter of 2023 due to higher low-income housing tax
credits.
Loans and Credit Quality
Loans, net of deferred fees, decreased $22.6 million and $149.1
million from March 31, 2024 and June 30, 2023, respectively, and
totaled $1.9 billion at both June 30, 2024 and March 31, 2024,
compared to $2.0 billion at June 30, 2023. The decrease in loans at
June 30, 2024 compared to March 31, 2024 primarily was due to $64.5
million of loan repayments and $3.6 million in loans sold,
partially offset by $18.0 million of new loan originations and
$27.6 million of loan purchases during the current quarter.
Nonperforming loans, consisting solely of non-accrual loans,
totaled $16.1 million, or 0.87% of total loans, at June 30, 2024,
compared to $16.5 million, or 0.64% of total loans, at March 31,
2024, and $12.8 million, or 0.64% of total loans, at June 30, 2023.
The decrease in nonperforming loans from the prior quarter-end was
primarily due to the pay-down on one non-accrual loan totaling
$633,000, charge-off of one non-accrual loan totaling $160,000,
payoff of one nonaccrual loan of $100,000, and to a lesser extent
paydowns on other non-accrual loans, partially offset by one new
loan placed on non-accrual during the current quarter for
$780,000.
The portion of nonaccrual loans guaranteed by government
agencies totaled $2.2 million at both June 30, 2024 and March 31,
2024, compared to $801,000 at June 30, 2023. There were no loans 90
days or more past due and still accruing and in the process of
collection at June 30, 2024, March 31, 2024, and June 30, 2023.
Accruing loans past due between 30 and 89 days at June 30, 2024,
were $1.5 million, compared to $2.6 million at March 31, 2024, and
$1.6 million at June 30, 2023. The decrease in accruing loans past
due between 30-89 days at June 30, 2024 compared to March 31, 2024,
was primarily due to timing of borrower payments. There was minimal
change in the total accruing loans past due between 30-89 days at
June 30, 2024 compared to June 30, 2023.
At June 30, 2024, the Company’s allowance for credit losses for
loans was $19.0 million, or 1.02% of total loans, compared to $18.9
million, or 1.00% of total loans, at March 31, 2024 and $19.1
million, or 0.95% of total loans, at June 30, 2023. We recorded net
charge-offs of $76,000 for the second quarter of 2024, compared to
net charge-offs of $3.4 million in the prior quarter of 2024 and
net charge-offs of $60,000 in the second quarter of 2023. The
decrease in net charge-offs during the second quarter of 2024
compared to the prior quarter of 2024 was primarily due to one
charge-off of $160,000 and one recovery of $97,000 during the
current quarter, compared to partial charge-offs of two non-accrual
loans totaling $2.9 million, as well as complete write-offs of five
non-accrual loans totaling $435,000 during the first quarter of
2024. These actions were taken due to collateral shortfalls deemed
uncollectable. There was minimal change in net charge-offs as
compared to the second quarter of 2023.
As of June 30, 2024, acquired loans net of their discount
totaled $186.3 million with a remaining net discount on these loans
of $540,000, compared to $200.4 million of acquired loans with a
remaining net discount of $392,000 at March 31, 2024, and $234.7
million of acquired loans with a remaining net discount of $331,000
at June 30, 2023. The change in the net discount from March 31,
2024, was due to the payoff during the current quarter of loans
acquired at a premium. The net discount includes a credit discount
based on estimated losses on the acquired loans, partially offset
by a premium, if any, based on market interest rates on the date of
acquisition.
Deposits and Borrowings
Deposits totaled $2.2 billion at June 30, 2024, compared to $2.1
billion at both March 31, 2024 and June 30, 2023. The deposit mix
shifted, in part, due to interest rate sensitive clients moving a
portion of their non-operating deposit balances from lower costing
deposits, including noninterest-bearing deposits, into higher
costing money market and time deposits. At June 30, 2024,
noninterest-bearing deposits totaled $618.6 million, or 28.4% of
total deposits, compared to $630.0 million, or 29.4% of total
deposits, at March 31, 2024, and $664.1 million, or 30.9% of total
deposits, at June 30, 2023.
We consider our deposit base to be seasoned, stable and
well-diversified, and we do not have any significant industry
concentrations among our non-insured deposits. We also offer an
insured cash sweep product (ICS) that allows customers to insure
deposits above FDIC insurance limits. At June 30, 2024 and March
31, 2024, our average deposit account size (excluding public
funds), calculated by dividing period-end deposits by the
population of accounts with balances, was approximately $59,000 and
$58,100, respectively.
The Bank has an approved secured borrowing facility with the
FHLB of San Francisco for up to 25% of total assets for a term not
to exceed five years under a blanket lien of certain types of
loans, with no FHLB advances outstanding at June 30, 2024, March
31, 2024 or June 30, 2023. The Bank has Federal Funds lines with
four corresponding banks with an aggregate available commitment on
these lines of $65.0 million at June 30, 2024. There were no
amounts outstanding under these lines at June 30, 2024, March 31,
2024 or June 30, 2023. During the first quarter of 2024, the Bank
was approved for discount window advances with the FRB of San
Francisco secured by certain loan types. At both June 30, 2024 and
March 31, 2024, the Bank had no FRB of San Francisco advances
outstanding.
At June 30, 2024 and March 31, 2024, the Company had outstanding
junior subordinated debt, net of fair value adjustments, related to
junior subordinated deferrable interest debentures assumed in
connection with its previous acquisitions totaling $8.6 million,
compared to $8.5 million at June 30, 2023. At June 30, 2024, the
Company had outstanding subordinated debt, net of costs to issue,
totaling $63.7 million, compared to $63.6 million and $63.8 million
at March 31, 2024 and June 30, 2023, respectively.
At June 30, 2024, March 31, 2024 and June 30, 2023, the Company
had no other borrowings outstanding.
Shareholders’ Equity
Shareholders’ equity totaled $315.3 million at June 30, 2024,
compared to $314.2 million at March 31, 2024, and $307.0 million at
June 30, 2023. The increase at June 30, 2024 compared to March 31,
2024, reflects $5.6 million of net income during the current
quarter and a $506,000 decrease in accumulated other comprehensive
loss, net of taxes, partially offset by repurchases of $4.1 million
of common stock and $1.1 million of accrued cash dividends payable.
At June 30, 2024, 516,838 shares remained available for future
repurchases under the Company’s current stock repurchase plan.
The increase to shareholders’ equity for activity during the
three months June 30, 2024, as compared to activity during three
months ended June 30, 2023, primarily was due to a $4.1 million
decrease in accumulated other comprehensive loss, net of taxes,
partially offset by a $2.9 million decrease in net income.
About BayCom Corp
The Company, through its wholly owned operating subsidiary,
United Business Bank, offers a full-range of loans, including SBA,
CalCAP, FSA and USDA guaranteed loans, and deposit products and
services to businesses and their affiliates in California,
Washington, New Mexico, Colorado and Nevada. The Bank is an Equal
Housing Lender and a member of FDIC. The Company’s common stock is
listed on the NASDAQ Global Select Market under the symbol “BCML”.
For more information, go to www.unitedbusinessbank.com.
Forward-Looking Statements
This release, as well as other public or shareholder
communications by the Company, may contain forward-looking
statements, including, but not limited to, (i) statements regarding
the financial condition, results of operations and business of the
Company, (ii) statements about the Company’s plans, objectives,
expectations and intentions and other statements that are not
historical facts and (iii) other statements identified by the words
or phrases “will likely result,” “are expected to,” “will
continue,” “is anticipated,” “estimate,” “project,” “intends” or
similar expressions that are intended to identify “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements are not historical
facts but instead are based on current beliefs and expectations of
the Company’s management and are inherently subject to significant
business, economic and competitive uncertainties and contingencies,
many of which are beyond the Company’s control. In addition, these
forward-looking statements are subject to assumptions with respect
to future business strategies and decisions that are subject to
change.
There are a number of factors that could cause future results to
differ materially from historical performance and these
forward-looking statements. Factors which could cause actual
results to differ materially from the results anticipated or
implied by our forward-looking statements include, but are not
limited to: potential adverse impacts to economic conditions in our
local market areas, other markets where the Company has lending
relationships, or other aspects of the Company’s business
operations or financial markets, including, without limitation, as
a result of employment levels, labor shortages and the effects of
inflation, a potential recession or slowed economic growth; changes
in the interest rate environment, including the past increases in
the Federal Reserve benchmark rate and duration at which such
increased interest rate levels are maintained, which could
adversely affect our revenues and expenses, the values of our
assets and obligations, and the availability and cost of capital
and liquidity; the impact of continuing high inflation and the
current and future monetary policies of the Federal Reserve in
response thereto; the effects of any federal government shutdown;
the impact of bank failures or adverse developments at other banks
and related negative press about the banking industry in general on
investor and depositor sentiment; review of the Company’s
accounting, accounting policies and internal control over financial
reporting; risks and uncertainties related to the recent
restatement of certain of our historical consolidated financial
statements; the subsequent discovery of additional adjustments to
the Company’s previously issued financial statements; future
acquisitions by the Company of other depository institutions or
lines of business; fluctuations in interest rates; the risks of
lending and investing activities, including changes in the level
and direction of loan delinquencies and write-offs and changes in
estimates of the adequacy of the allowance for credit losses; the
Company's ability to access cost-effective funding; fluctuations in
real estate values and both residential and commercial real estate
market conditions; demand for loans and deposits in the Company's
market area; increased competitive pressures; changes in
management’s business strategies, including expectations regarding
key growth initiatives and strategic priorities; disruptions,
security breaches, or other adverse events, failures or
interruptions in, or attacks on, our information technology systems
or on the third-party vendors who perform critical processing
functions for us; environmental, social and governance goals; the
effects of climate change, severe weather events, natural
disasters, pandemics, epidemics and other public health crises,
acts of war or terrorism, and other external events on our
business; and other factors described in the Company’s latest
Annual Report on Form 10-K and Quarterly Reports on Form 10-Q and
other reports filed with or furnished to the Securities and
Exchange Commission (“SEC”), which are available on our website at
www.unitedbusinessbank.com and on the SEC's website at
www.sec.gov.
The factors listed above could materially affect the Company’s
financial performance and could cause the Company’s actual results
for future periods to differ materially from any opinions or
statements expressed with respect to future periods in any current
statements.
The Company does not undertake - and specifically declines any
obligation - to publicly release the result of any revisions that
may be made to any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events, whether as a
result of new information, future events or otherwise, except as
may be required by law or NASDAQ rules. When considering
forward-looking statements, you should keep in mind these risks and
uncertainties. You should not place undue reliance on any
forward-looking statement, which speaks only as of the date
made.
BAYCOM CORP
STATEMENTS OF COMPREHENSIVE
INCOME (UNAUDITED)
(Dollars in thousands, except per
share data)
Three months ended
June 30,
March 31,
June 30,
2024
2024
2023
Interest income
Loans, including fees
$
25,014
$
25,257
$
26,667
Investment securities
2,181
1,956
1,693
Fed funds sold and interest-bearing
balances in banks
4,819
4,115
2,560
FHLB dividends
247
272
196
FRB dividends
145
144
144
Total interest and dividend income
32,406
31,744
31,260
Interest expense
Deposits
9,002
8,227
5,881
Subordinated debt
891
893
895
Junior subordinated debt
218
217
203
Total interest expense
10,111
9,337
6,979
Net interest income
22,295
22,407
24,281
Provision for (reversal of) credit
losses
171
252
(1,260
)
Net interest income after provision for
(reversal of) credit losses
22,124
22,155
25,541
Noninterest income
Gain on sale of loans
287
—
68
(Loss) gain on equity securities
(321
)
573
(917
)
Service charges and other fees
734
839
882
Loan servicing fees and other fees
441
392
593
Income (loss) on investment in SBIC
fund
71
(30
)
225
Other income and fees
271
288
235
Total noninterest income
1,483
2,062
1,086
Noninterest expense
Salaries and employee benefits
9,642
10,036
10,745
Occupancy and equipment
2,133
2,154
1,974
Data processing
1,650
1,753
1,616
Other expense
2,587
2,128
2,222
Total noninterest expense
16,012
16,071
16,557
Income before provision for income
taxes
7,595
8,146
10,070
Provision for income taxes
1,995
2,269
2,864
Net income
$
5,600
$
5,877
$
7,206
Net income per common share:
Basic
$
0.50
$
0.51
$
0.59
Diluted
0.50
0.51
0.59
Weighted average shares used to compute
net income per common share:
Basic
11,254,233
11,525,752
12,228,206
Diluted
11,254,233
11,525,752
12,228,206
Comprehensive income
Net income
$
5,600
$
5,877
$
7,206
Other comprehensive income (loss):
Change in unrealized gain (loss) on
available-for-sale securities
710
696
(4,999
)
Deferred tax (expense) benefit
(204
)
(212
)
1,437
Other comprehensive income (loss), net of
tax
506
484
(3,562
)
Comprehensive income
$
6,106
$
6,361
$
3,644
BAYCOM CORP
STATEMENTS OF CONDITION
(UNAUDITED)
(Dollars in thousands)
June 30,
March 31,
June 30,
2024
2024
2023
Assets
Cash and due from banks
$
23,278
$
20,379
$
36,637
Federal funds sold and interest-bearing
balances in banks
367,930
327,953
213,562
Cash and cash equivalents
391,208
348,332
250,199
Time deposits in banks
747
996
1,992
Investment securities available-for-sale
("AFS")
183,633
167,919
146,506
Equity securities
12,837
13,158
11,912
Federal Home Loan Bank ("FHLB") stock, at
par
11,313
11,313
11,313
Federal Reserve Bank ("FRB") stock, at
par
9,635
9,630
9,616
Loans held for sale
—
1,684
—
Loans, net of deferred fees
1,864,172
1,886,730
2,013,307
Allowance for credit losses for loans
(19,000
)
(18,890
)
(19,100
)
Premises and equipment, net
14,052
14,355
13,039
Core deposit intangible
3,304
3,610
4,527
Cash surrender value of bank owned life
insurance policies, net
23,225
23,044
22,528
Right-of-use assets
12,874
13,460
15,270
Goodwill
38,838
38,838
38,838
Interest receivable and other assets
47,095
46,530
47,539
Total Assets
$
2,593,933
$
2,560,709
$
2,567,486
Liabilities and Shareholders’ Equity
Noninterest-bearing deposits
$
618,617
$
629,962
$
664,096
Interest-bearing deposits
Transaction accounts and savings
725,550
725,399
775,117
Premium money market
302,738
273,329
248,730
Time deposits
528,105
514,217
459,123
Total deposits
2,175,010
2,142,907
2,147,066
Junior subordinated deferrable interest
debentures, net
8,605
8,585
8,524
Subordinated debt, net
63,651
63,609
63,796
Salary continuation plans
4,733
4,667
4,955
Lease liabilities
13,779
14,321
15,947
Interest payable and other liabilities
12,890
12,385
20,184
Total Liabilities
2,278,668
2,246,474
2,260,472
Shareholders’ Equity
Common stock, no par value
173,395
177,362
187,866
Accumulated other comprehensive loss, net
of tax
(13,602
)
(14,108
)
(16,420
)
Retained earnings
155,472
150,981
135,568
Total Shareholders’ Equity
315,265
314,235
307,014
Total Liabilities and Shareholders’
Equity
$
2,593,933
$
2,560,709
$
2,567,486
BAYCOM CORP
FINANCIAL HIGHLIGHTS
(UNAUDITED)
(Dollars in thousands, except per
share data)
At and for the three months
ended
At and for the six months
ended
June 30,
March 31,
June 30,
June 30,
June 30,
Selected Financial Ratios and Other
Data:
2024
2024
2023
2024
2023
Performance Ratios:
Return on average assets (1)
0.87
%
0.92
%
1.13
%
0.90
%
1.13
%
Return on average equity (1)
7.11
7.44
9.22
7.28
9.12
Yield earned on average interest-earning
assets (1)
5.37
5.28
5.18
5.31
5.15
Rate paid on average interest-bearing
liabilities (1)
2.54
2.40
1.82
2.47
1.60
Interest rate spread - average during the
period (1)
2.83
2.88
3.36
2.84
3.55
Net interest margin (1)
3.69
3.72
4.02
3.70
4.16
Loan to deposit ratio
85.71
88.05
93.77
85.71
93.77
Efficiency ratio (2)
67.34
65.68
65.27
66.49
63.40
Charge-offs, net
$
76
$
3,372
$
60
$
3,448
$
375
Per Share Data:
Shares outstanding at end of period
11,172,323
11,377,117
11,900,022
11,172,323
11,900,022
Average diluted shares outstanding
11,254,233
11,525,752
12,228,206
11,389,992
12,462,539
Diluted earnings per share
$
0.50
$
0.51
$
0.59
$
1.01
$
1.16
Book value per share
28.22
27.62
25.80
28.22
25.82
Tangible book value per share (3)
24.45
23.89
22.16
24.45
22.16
Asset Quality Data:
Nonperforming assets to total assets
(4)
0.62
%
0.64
%
0.50
%
Nonperforming loans to total loans (5)
0.87
%
0.87
%
0.64
%
Allowance for credit losses on loans to
nonperforming loans (5)
117.81
%
114.55
%
148.86
%
Allowance for credit losses on loans to
total loans
1.02
%
1.00
%
0.95
%
Classified assets (graded substandard and
doubtful)
$
38,796
$
39,352
$
21,546
Total accruing loans 30‑89 days past
due
1,468
2,625
1,623
Total loans 90 days past due and still
accruing
—
—
—
Capital Ratios:
Tier 1 leverage ratio — Bank (6)
13.62
%
13.41
%
13.05
%
Common equity tier 1 capital ratio — Bank
(6)
17.45
%
16.91
%
16.60
%
Tier 1 capital ratio — Bank (6)
17.45
%
16.91
%
16.60
%
Total capital ratio — Bank (6)
18.42
%
17.87
%
17.59
%
Equity to total assets — end of period
12.15
%
12.27
%
11.97
%
Tangible equity to tangible assets — end
of period (3)
10.70
%
10.79
%
10.46
%
Loans:
Real estate
$
1,690,179
$
1,707,064
$
1,816,355
Non-real estate
157,335
162,791
183,780
Nonaccrual loans
16,128
16,491
12,831
Mark to fair value at acquisition
540
392
331
Total Loans
1,864,182
1,886,738
2,013,297
Net deferred fees on loans
(10
)
(8
)
10
Loans, net of deferred fees
$
1,864,172
$
1,886,730
$
2,013,307
Other Data:
Number of full-service offices
35
35
34
Number of full-time equivalent
employees
338
345
383
(1)
Annualized.
(2)
Total noninterest expense as a percentage
of net interest income and total noninterest income.
(3)
Represents a non-GAAP financial measure.
See “Non-GAAP Financial Measures” below.
(4)
Nonperforming assets consist of nonaccrual
loans, accruing loans that are 90 days or more past due, and other
real estate owned.
(5)
Nonperforming loans consist of nonaccrual
loans and accruing loans that are 90 days or more past due.
(6)
Regulatory capital ratios are for United
Business Bank only.
Non-GAAP Financial Measures:
In addition to results presented in accordance with generally
accepted accounting principles utilized in the United States
(“GAAP”), this earnings release contains tangible book value per
share and tangible equity to tangible assets, both of which are
non-GAAP financial measures. Tangible book value per share is
calculated by dividing tangible common shareholders’ equity by the
number of common shares outstanding at the end of the period.
Tangible equity and tangible common shareholders’ equity exclude
intangible assets from shareholders’ equity, and tangible assets
exclude intangible assets from total assets. For these financial
measures, the Company’s intangible assets are goodwill and core
deposit intangibles. The Company believes that these measures are
consistent with the capital treatment by our bank regulatory
agencies, which excludes intangible assets from the calculation of
risk-based capital ratios and presents these measures to facilitate
comparison of the quality and composition of the Company’s capital
over time in comparison to its peers. Non-GAAP financial measures
have inherent limitations, are not required to be uniformly
applied, and are not audited. Further, these non-GAAP financial
measures should not be considered in isolation or as a substitute
for the comparable financial measures determined in accordance with
GAAP and may not be comparable to similarly titled measures
reported by other companies.
Reconciliation of the GAAP and non-GAAP financial measures is
presented below:
Non-GAAP Measures
(Dollars in thousands, except per
share data)
June 30,
March 31,
June 30,
2024
2024
2023
Tangible Book Value:
Total equity and common shareholders’
equity (GAAP)
$
315,265
$
314,235
$
307,014
less: Goodwill and other intangibles
42,142
42,448
43,365
Tangible equity and common shareholders’
equity (Non-GAAP)
$
273,123
$
271,787
$
263,649
Total assets (GAAP)
$
2,593,933
$
2,560,709
$
2,567,486
less: Goodwill and other intangibles
42,142
42,448
43,365
Total tangible assets (Non-GAAP)
$
2,551,791
$
2,518,261
$
2,524,121
Equity to total assets (GAAP)
12.15
%
12.27
%
11.96
%
Tangible equity to tangible assets
(Non-GAAP)
10.70
%
10.79
%
10.45
%
Book value per share (GAAP)
$
28.22
$
27.62
$
25.80
Tangible book value per share
(Non-GAAP)
$
24.45
$
23.89
$
22.16
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240718535022/en/
BayCom Corp Keary Colwell, 925-476-1800 kcolwell@ubb-us.com
Grafico Azioni BayCom (NASDAQ:BCML)
Storico
Da Ott 2024 a Dic 2024
Grafico Azioni BayCom (NASDAQ:BCML)
Storico
Da Dic 2023 a Dic 2024
