Key Highlights

  • Net income was USD 1.1 million, or USD 0.10 per diluted share.
  • Net interest Margin rose 16 basis points to 4.11%.
  • Deposits grew USD 122.3 million, or 5.6%, to USD 2.3 billion.
  • A securities repositioning produced a USD 6.8 million loss.

Earnings

BayCom Corp (NASDAQ:BCML) reported third-quarter 2026 results on Thursday. Net Income was USD 1.1 million, or USD 0.10 per diluted share, against a net loss of USD 7.0 million, or USD 0.64 per share, in the second quarter and net income of USD 5.0 million, or USD 0.46, a year earlier. Nine-month net income was USD 2.4 million against USD 17.1 million.

The change from the second quarter came from a USD 9.5 million decrease in noninterest expense, driven by a USD 9.8 million decrease in salaries and benefits, and a USD 4.4 million lower provision. The second quarter had included USD 10.5 million of severance, accelerated Equity vesting and benefit costs tied to the departure of three senior executives, a USD 5.2 million provision and USD 2.8 million of net charge-offs. Net interest income rose USD 1.8 million.

Repositioning Actions

In the third quarter BayCom sold USD 106.8 million of available-for-sale securities at a loss of USD 6.8 million and redeployed the proceeds into higher yielding, shorter duration securities, an improvement of about 122 basis points on redeployed assets. It also sold USD 7.8 million of preferred equity securities at a net loss of USD 589,000 to remove market Volatility from future earnings, and began restructuring its bank-owned Life insurance portfolio.

Executive Vice Chairman William Black said the company projects a payback on the costs of these actions in about three years. The quarter also included USD 192,000 of severance as the company realigned relationship banking teams around its most productive markets.

Margin, Loans and Deposits

The net interest margin was 4.11%, up 16 basis points from 3.95% in the second quarter and 43 basis points from 3.68% a year earlier. The Yield on interest-earning Assets was 5.54% against 5.36% and 5.49%, and the rate on interest-bearing liabilities was 2.15% against 2.14%.

Loans rose USD 77.2 million, or 3.7%, to USD 2.2 billion, led by residential, multifamily and commercial and industrial lending. Deposits rose USD 122.3 million, or 5.6%, to USD 2.3 billion, and the average cost of deposits rose one basis point to 1.57% despite competitive pressure and the Federal Reserve's September rate increase. Available-for-sale securities fell USD 11.0 million, or 6.0%, and equity securities fell USD 9.0 million.

Credit and Capital

Classified assets fell USD 3.9 million, or 11.1%, to USD 31.7 million. Net income for the nine months of USD 2.4 million compares with USD 17.1 million, with noninterest expense up USD 13.6 million, noninterest income down USD 8.0 million and the provision up USD 1.6 million. The total Capital ratio was 14.52%, the common equity tier 1 ratio was 13.39% and the tangible common equity ratio was 11.17%, all above well-capitalized thresholds.

Reference Points

Third-quarter net income of USD 1.1 million compares with USD 5.0 million a year earlier, with the USD 6.8 million securities loss and USD 589,000 preferred equity loss in the period. Deposit growth of 5.6% outpaced Loan growth of 3.7%. Items to follow include the margin at 4.11% after the repositioning, classified assets at USD 31.7 million, and noninterest expense after the second quarter executive costs.