BayCom Corp Reports 2023 Fourth Quarter Earnings of $6.4 Million
- None.
- Net income for Q4 2023 decreased compared to Q3 2023 and Q4 2022
- Net interest income decreased by $1.3 million for Q4 2023
- Nonperforming loans increased to $13.0 million at December 31, 2023, compared to previous quarters
Insights
The disclosed earnings report from BayCom Corp exhibits a mixed financial performance, with a year-over-year decline in quarterly net income but an overall annual increase. The decrease in net interest income, coupled with a rise in the provision for credit losses, indicates a challenging economic environment. However, the company's efforts to manage noninterest expenses and the stable asset base are positive signs.
From an investment perspective, the repurchase of shares and payment of dividends reflect confidence in the company's capital allocation strategy. Yet, the admission of underperforming expectations and the anticipation of a subdued market in the near term could temper investor sentiment. It is crucial to monitor the company's cost of funds and net interest margin trends, as these are key indicators of profitability in the banking sector.
The banking industry is sensitive to interest rate fluctuations and BayCom's earnings report reflects this with an increase in interest expense on deposits outpacing the yield on assets. The decline in loan demand and a shift from noninterest-bearing to interest-bearing deposits have resulted in pressure on the net interest margin. This trend is noteworthy for stakeholders as it could impact future profitability.
BayCom's strategic optimism for the second half of 2024 hinges on improved loan demand and merger and acquisition opportunities. Industry trends and competitive landscape analyses will be pivotal in assessing the feasibility of these expectations and the company's potential market positioning.
The increase in the provision for credit losses suggests that BayCom is experiencing some credit quality deterioration, which is a concern for risk management. The adoption of the CECL standard indicates a proactive approach to credit loss accounting, which may affect the bank's capital reserves and risk profile.
The specific mention of a commercial real estate loan and a multifamily loan contributing to the reserve increase highlights potential vulnerabilities within the loan portfolio. Stakeholders should consider the bank's risk mitigation strategies and the potential impact of ongoing legal actions on the bank's financial health and reputation.
Net income for the fourth quarter of 2023 compared to the third quarter of 2023 decreased
Net income for the year ended December 31, 2023 compared to the year ended December 31, 2022 increased
George Guarini, President and Chief Executive Officer, commented, “Our financial results for the fourth quarter and full year 2023 underperformed our expectations. 2023 presented challenges on various fronts, including increased deposit costs, reduced loan demand and some specific credit quality deterioration. Despite these challenges, our earnings improved over 2022. Overall, our financial condition remains strong, with no observed systemic credit weakness, and our earnings remain stable.”
Guarini concluded, “While we do not anticipate market conditions improving in the first half of 2024, we are optimistic that the second half of 2024 will be a turning point in loan demand and merger and acquisition opportunities. We remain committed to repurchasing our shares and paying cash dividends to our shareholders with the goal of consistently enhancing value for both our clients and shareholders.”
Fourth Quarter Performance Highlights:
-
Annualized net interest margin was
3.86% for the current quarter, compared to4.03% in the preceding quarter and4.40% in the same quarter a year ago. -
Annualized return on average assets was
1.00% for the current quarter, compared to1.03% in the preceding quarter and1.21% in the same quarter a year ago. -
Assets totaled
$2.6 billion $2.5 billion -
Loans, net of deferred fees, totaled
$1.9 billion $2.0 billion -
Nonperforming loans totaled
$13.0 million 0.67% of total loans at December 31, 2023, compared to$14.3 million 0.73% of total loans at September 30, 2023, and$15.2 million 0.75% of total loans at December 31, 2022. -
The allowance for credit losses for loans totaled
$22.0 million 1.14% of total loans outstanding, at December 31, 2023, compared to$19.8 million 1.01% of total loans outstanding, at September 30, 2023, and$18.9 million 0.94% of total loans outstanding, at December 31, 2022. The Company adopted the Current Expected Credit Losses (“CECL”) standard as of January 1, 2023, which resulted in a one-time adjustment to the allowance for credit losses for loans of$1.5 million $845,000 $45,000 $491,000 -
A
$2.3 million $674,000 $617,000 -
Deposits totaled
$2.1 billion $2.2 billion $2.1 billion $646.3 million 30.3% of total deposits, compared to$667.3 million 30.9% of total deposits, at September 30, 2023, and$773.3 million 37.1% of total deposits, at December 31, 2022. -
The Company repurchased 122,559 shares of common stock at an average cost of
$19.91 $18.86 $18.60 -
On November 28, 2023, the Company announced the declaration of a cash dividend on the Company’s common stock of
$0.10 - The Bank remained a “well-capitalized” institution for regulatory capital purposes at December 31, 2023.
Earnings
Net interest income decreased
Interest income on loans, including fees, decreased
Interest income on loans included
Interest income on investment securities increased
Interest income on federal funds sold and interest-bearing balances in banks increased
Interest expense increased
Annualized net interest margin was
The average yield on PPP loans, including the recognition of deferred PPP loan fees, was
Accretion of the net discount had a minimal impact on the average yield on loans during the fourth quarter of 2023, compared to eight and 11 basis point increases in the average yield on loans during the prior quarter of 2023 and the fourth quarter of 2022, respectively. At December 31, 2023, there was a total of
The Company recorded a
During the quarter ended September 30, 2023, the Company determined that a certificate of deposit-secured line of credit loan made to a revocable living trust (the “Trust” or the “Borrower”) was impaired as a result of the sole trustee and beneficiary of the Trust filing for personal bankruptcy in July 2023. At June 30, 2023, the loan had an outstanding balance of
Noninterest income for the fourth quarter of 2023 increased
Noninterest expense for the fourth quarter of 2023 decreased
The provision for income taxes decreased
Loans and Credit Quality
Loans, net of deferred fees, decreased
Nonperforming loans, consisting of non-accrual loans and, at December 31, 2022, accruing loans 90 days or more past due, totaled
The portion of nonaccrual loans guaranteed by government agencies totaled
At December 31, 2023, the Company’s allowance for credit losses for loans was
As of December 31, 2023, acquired loans net of their discount totaled
Deposits and Borrowings
Deposits totaled
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 December 31, 2023, our average deposit account size (excluding public funds), calculated by dividing period-end deposits by the population of accounts with balances, was approximately
The Bank has an approved secured borrowing facility with the FHLB of
At December 31, 2023, September 30, 2023 and December 31, 2022, 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
At December 31, 2023, September 30, 2023 and December 31, 2022, the Company had no other borrowings outstanding.
Shareholders’ Equity
Shareholders’ equity totaled
The decrease in shareholders’ equity at December 31, 2023, compared to December 31, 2022, primarily was due to the repurchase of
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
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; 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; 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) |
|||||||||||||||||||
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Three months ended |
|
Year ended |
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December 31, |
|
September 30, |
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December 31, |
|
December 31, |
|
December 31, |
||||||||||
|
2023 |
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||||
|
|
|
|
|
|
(As Restated) |
|
|
|
|
(As Restated) |
||||||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Loans, including fees |
$ |
26,166 |
|
|
$ |
27,229 |
|
|
$ |
25,801 |
|
|
$ |
106,316 |
|
|
$ |
95,722 |
|
Investment securities |
|
1,956 |
|
|
|
1,704 |
|
|
|
1,602 |
|
|
|
6,993 |
|
|
|
6,085 |
|
Fed funds sold and interest-bearing balances in banks |
|
3,680 |
|
|
|
3,521 |
|
|
|
1,722 |
|
|
|
11,589 |
|
|
|
4,025 |
|
FHLB dividends |
|
245 |
|
|
|
232 |
|
|
|
217 |
|
|
|
862 |
|
|
|
684 |
|
FRB dividends |
|
145 |
|
|
|
144 |
|
|
|
162 |
|
|
|
577 |
|
|
|
549 |
|
Total interest and dividend income |
|
32,192 |
|
|
|
32,830 |
|
|
|
29,504 |
|
|
|
126,337 |
|
|
|
107,065 |
|
Interest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Deposits |
|
7,551 |
|
|
|
6,908 |
|
|
|
1,963 |
|
|
|
24,040 |
|
|
|
6,273 |
|
Subordinated debt |
|
896 |
|
|
|
896 |
|
|
|
895 |
|
|
|
3,582 |
|
|
|
3,582 |
|
Junior subordinated debt |
|
218 |
|
|
|
217 |
|
|
|
177 |
|
|
|
841 |
|
|
|
496 |
|
Total interest expense |
|
8,665 |
|
|
|
8,021 |
|
|
|
3,035 |
|
|
|
28,463 |
|
|
|
10,351 |
|
Net interest income |
|
23,527 |
|
|
|
24,809 |
|
|
|
26,469 |
|
|
|
97,874 |
|
|
|
96,714 |
|
Provision for credit losses |
|
2,325 |
|
|
|
674 |
|
|
|
617 |
|
|
|
2,015 |
|
|
|
4,441 |
|
Net interest income after provision for credit losses |
|
21,202 |
|
|
|
24,135 |
|
|
|
25,852 |
|
|
|
95,859 |
|
|
|
92,273 |
|
Noninterest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Gain on sale of loans |
|
— |
|
|
|
28 |
|
|
|
33 |
|
|
|
508 |
|
|
|
2,747 |
|
Gain (loss) on equity securities |
|
946 |
|
|
|
(274 |
) |
|
|
(602 |
) |
|
|
(1,141 |
) |
|
|
(4,573 |
) |
Service charges and other fees |
|
830 |
|
|
|
973 |
|
|
|
942 |
|
|
|
3,570 |
|
|
|
3,107 |
|
Loan servicing fees and other fees |
|
445 |
|
|
|
431 |
|
|
|
506 |
|
|
|
1,879 |
|
|
|
2,176 |
|
Income on investment in SBIC fund |
|
158 |
|
|
|
225 |
|
|
|
(225 |
) |
|
|
1,097 |
|
|
|
(70 |
) |
Bargain purchase gain |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,665 |
|
Other income and fees |
|
298 |
|
|
|
271 |
|
|
|
250 |
|
|
|
1,064 |
|
|
|
1,048 |
|
Total noninterest income |
|
2,677 |
|
|
|
1,654 |
|
|
|
904 |
|
|
|
6,977 |
|
|
|
6,100 |
|
Noninterest expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Salaries and employee benefits |
|
8,936 |
|
|
|
10,284 |
|
|
|
10,729 |
|
|
|
41,001 |
|
|
|
40,480 |
|
Occupancy and equipment |
|
2,024 |
|
|
|
2,133 |
|
|
|
1,996 |
|
|
|
8,158 |
|
|
|
8,384 |
|
Data processing |
|
1,767 |
|
|
|
1,774 |
|
|
|
1,467 |
|
|
|
6,622 |
|
|
|
6,969 |
|
Other expense |
|
2,347 |
|
|
|
2,328 |
|
|
|
2,116 |
|
|
|
8,897 |
|
|
|
10,102 |
|
Total noninterest expense |
|
15,074 |
|
|
|
16,519 |
|
|
|
16,308 |
|
|
|
64,678 |
|
|
|
65,935 |
|
Income before provision for income taxes |
|
8,805 |
|
|
|
9,270 |
|
|
|
10,448 |
|
|
|
38,158 |
|
|
|
32,438 |
|
Provision for income taxes |
|
2,407 |
|
|
|
2,640 |
|
|
|
2,826 |
|
|
|
10,733 |
|
|
|
8,708 |
|
Net income |
$ |
6,398 |
|
|
$ |
6,630 |
|
|
$ |
7,622 |
|
|
$ |
27,425 |
|
|
$ |
23,730 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
$ |
0.55 |
|
|
$ |
0.56 |
|
|
$ |
0.59 |
|
|
$ |
2.27 |
|
|
$ |
1.81 |
|
Diluted |
|
0.55 |
|
|
|
0.56 |
|
|
|
0.59 |
|
|
|
2.27 |
|
|
|
1.81 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Weighted average shares used to compute net income per common share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Basic |
|
11,571,796 |
|
|
|
11,812,583 |
|
|
|
12,960,723 |
|
|
|
12,074,198 |
|
|
|
13,124,179 |
|
Diluted |
|
11,571,796 |
|
|
|
11,812,583 |
|
|
|
12,960,723 |
|
|
|
12,074,198 |
|
|
|
13,124,179 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Comprehensive income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net income |
$ |
6,398 |
|
|
$ |
6,630 |
|
|
$ |
7,622 |
|
|
$ |
27,425 |
|
|
$ |
23,730 |
|
Other comprehensive gain (loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Change in unrealized gain (loss) on available-for-sale securities |
|
3,746 |
|
|
|
(1,178 |
) |
|
|
(75 |
) |
|
|
(4,255 |
) |
|
|
(19,275 |
) |
Deferred tax (expense) benefit |
|
(1,078 |
) |
|
|
338 |
|
|
|
23 |
|
|
|
1,224 |
|
|
|
5,548 |
|
Other comprehensive gain (loss), net of tax |
|
2,668 |
|
|
|
(840 |
) |
|
|
(52 |
) |
|
|
(3,031 |
) |
|
|
(13,727 |
) |
Comprehensive income |
$ |
9,066 |
|
|
$ |
5,790 |
|
|
$ |
7,570 |
|
$ |
24,394 |
|
|
$ |
10,003 |
|
|
BAYCOM CORP STATEMENTS OF CONDITION (UNAUDITED) (Dollars in thousands) |
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|
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|
December 31, |
|
September 30, |
|
December 31, |
||||||
|
|
2023 |
|
2023 |
|
2022 |
||||||
|
|
|
|
|
|
|
|
|
(As Restated) |
|||
Assets |
|
|
|
|
|
|
|
|
|
|||
Cash and due from banks |
|
$ |
17,901 |
|
|
$ |
30,444 |
|
|
$ |
26,980 |
|
Federal funds sold and interest-bearing balances in banks |
|
|
289,638 |
|
|
|
271,490 |
|
|
|
149,835 |
|
Cash and cash equivalents |
|
|
307,539 |
|
|
|
301,934 |
|
|
|
176,815 |
|
Time deposits in banks |
|
|
1,245 |
|
|
|
1,743 |
|
|
|
2,241 |
|
Investment securities available-for-sale ("AFS") |
|
|
163,152 |
|
|
|
145,845 |
|
|
|
154,004 |
|
Equity securities |
|
|
12,585 |
|
|
|
11,639 |
|
|
|
13,757 |
|
Federal Home Loan Bank ("FHLB") stock, at par |
|
|
11,313 |
|
|
|
11,313 |
|
|
|
10,679 |
|
Federal Reserve Bank ("FRB") stock, at par |
|
|
9,626 |
|
|
|
9,621 |
|
|
|
9,602 |
|
Loans held for sale |
|
|
— |
|
|
|
1,274 |
|
|
|
2,380 |
|
Loans, net of deferred fees |
|
|
1,927,829 |
|
|
|
1,968,804 |
|
|
|
2,021,124 |
|
Allowance for credit losses for loans |
|
|
(22,000 |
) |
|
|
(19,800 |
) |
|
|
(18,900 |
) |
Premises and equipment, net |
|
|
13,734 |
|
|
|
13,466 |
|
|
|
13,278 |
|
Other real estate owned ("OREO") |
|
|
— |
|
|
|
— |
|
|
|
21 |
|
Core deposit intangible |
|
|
3,915 |
|
|
|
4,221 |
|
|
|
5,201 |
|
Cash surrender value of bank owned life insurance policies, net |
|
|
22,867 |
|
|
|
22,698 |
|
|
|
22,193 |
|
Right-of-use assets |
|
|
13,939 |
|
|
|
15,220 |
|
|
|
16,569 |
|
Goodwill |
|
|
38,838 |
|
|
|
38,838 |
|
|
|
38,838 |
|
Interest receivable and other assets |
|
|
47,378 |
|
|
|
47,570 |
|
|
|
45,532 |
|
Total Assets |
|
$ |
2,551,960 |
|
|
$ |
2,574,386 |
|
|
$ |
2,513,334 |
|
|
|
|
|
|
|
|
|
|
|
|||
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|||
Noninterest-bearing deposits |
|
$ |
646,278 |
|
|
$ |
667,336 |
|
|
$ |
773,274 |
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|||
Transaction accounts and savings |
|
|
745,712 |
|
|
|
790,089 |
|
|
|
837,289 |
|
Premium money market |
|
|
263,516 |
|
|
|
270,675 |
|
|
|
181,567 |
|
Time deposits |
|
|
477,244 |
|
|
|
431,344 |
|
|
|
293,349 |
|
Total deposits |
|
|
2,132,750 |
|
|
|
2,159,444 |
|
|
|
2,085,479 |
|
Junior subordinated deferrable interest debentures, net |
|
|
8,565 |
|
|
|
8,544 |
|
|
|
8,484 |
|
Subordinated debt, net |
|
|
63,881 |
|
|
|
63,839 |
|
|
|
63,711 |
|
Salary continuation plans |
|
|
4,552 |
|
|
|
4,886 |
|
|
|
4,840 |
|
Lease liabilities |
|
|
14,752 |
|
|
|
16,017 |
|
|
|
17,138 |
|
Interest payable and other liabilities |
|
|
14,591 |
|
|
|
14,396 |
|
|
|
16,533 |
|
Total Liabilities |
|
|
2,239,091 |
|
|
|
2,267,126 |
|
|
|
2,196,185 |
|
|
|
|
|
|
|
|
|
|
|
|||
Shareholders’ Equity |
|
|
|
|
|
|
|
|
|
|||
Common stock, no par value |
|
|
181,200 |
|
|
|
183,499 |
|
|
|
204,588 |
|
Accumulated other comprehensive loss, net of tax |
|
|
(14,592 |
) |
|
|
(17,260 |
) |
|
|
(11,561 |
) |
Retained earnings |
|
|
146,261 |
|
|
|
141,021 |
|
|
|
124,122 |
|
Total shareholders’ equity |
|
|
312,869 |
|
|
|
307,260 |
|
|
|
317,149 |
|
Total Liabilities and Shareholders’ Equity |
|
$ |
2,551,960 |
|
|
$ |
2,574,386 |
|
|
$ |
2,513,334 |
|
BAYCOM CORP FINANCIAL HIGHLIGHTS (UNAUDITED) (Dollars in thousands, except per share data) |
|||||||||||||||||||||
|
|||||||||||||||||||||
|
|
At and for the three months ended |
|
At and for the year ended |
|||||||||||||||||
|
|
December 31, |
September 30, |
December 31, |
|
December 31, |
December 31, |
||||||||||||||
Selected Financial Ratios and Other Data: |
|
2023 |
2023 |
2022 |
|
2023 |
2022 |
||||||||||||||
|
|
|
|
|
(As Restated) |
|
|
|
(As Restated) |
||||||||||||
Performance Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Return on average assets (1) |
|
|
1.00 |
% |
|
1.03 |
% |
|
1.21 |
% |
|
|
1.07 |
% |
|
0.91 |
% |
||||
Return on average equity (1) |
|
|
8.26 |
|
|
8.55 |
|
|
9.60 |
|
|
|
8.76 |
|
|
7.47 |
|
||||
Yield earned on average interest-earning assets (1) |
|
|
5.29 |
|
|
5.34 |
|
|
4.91 |
|
|
|
5.23 |
|
|
4.31 |
|
||||
Rate paid on average interest-bearing liabilities (1) |
|
|
2.21 |
|
|
2.04 |
|
|
0.89 |
|
|
|
1.87 |
|
|
0.70 |
|
||||
Interest rate spread - average during the period (1) |
|
|
3.08 |
|
|
3.30 |
|
|
4.02 |
|
|
|
3.36 |
|
|
3.61 |
|
||||
Net interest margin (1) |
|
|
3.86 |
|
|
4.03 |
|
|
4.40 |
|
|
|
4.05 |
|
|
3.90 |
|
||||
Loan to deposit ratio |
|
|
90.39 |
|
|
91.17 |
|
|
96.91 |
|
|
|
90.39 |
|
|
96.91 |
|
||||
Efficiency ratio (2) |
|
|
57.53 |
|
|
62.42 |
|
|
59.58 |
|
|
|
61.69 |
|
|
64.13 |
|
||||
Charge-offs (recoveries), net |
|
$ |
150 |
|
$ |
25 |
|
$ |
(233 |
) |
|
$ |
550 |
|
$ |
3,241 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Per Share Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Shares outstanding at end of period |
|
|
11,551,271 |
|
|
11,673,830 |
|
|
12,838,462 |
|
|
|
11,551,271 |
|
|
12,838,462 |
|
||||
Average diluted shares outstanding |
|
|
11,571,796 |
|
|
11,812,583 |
|
|
12,960,723 |
|
|
|
12,074,198 |
|
|
13,124,179 |
|
||||
Diluted earnings per share |
|
$ |
0.55 |
|
$ |
0.56 |
|
$ |
0.59 |
|
|
$ |
2.27 |
|
$ |
1.81 |
|
||||
Book value per share |
|
|
27.09 |
|
|
26.32 |
|
|
24.70 |
|
|
|
27.09 |
|
|
24.70 |
|
||||
Tangible book value per share (3) |
|
|
23.38 |
|
|
22.63 |
|
|
21.27 |
|
|
|
23.38 |
|
|
21.27 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Asset Quality Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Nonperforming assets to total assets (4) |
|
|
0.51 |
% |
|
0.56 |
% |
|
0.61 |
% |
|
|
|
|
|
||||||
Nonperforming loans to total loans (5) |
|
|
0.67 |
% |
|
0.73 |
% |
|
0.75 |
% |
|
|
|
|
|
||||||
Allowance for credit losses on loans to nonperforming loans (5) |
|
|
169.53 |
% |
|
138.26 |
% |
|
124.16 |
% |
|
|
|
|
|
||||||
Allowance for credit losses on loans to total loans |
|
|
1.14 |
% |
|
1.01 |
% |
|
0.94 |
% |
|
|
|
|
|
||||||
Classified assets (graded substandard and doubtful) |
|
$ |
30,801 |
|
$ |
29,366 |
|
$ |
20,355 |
|
|
|
|
|
|
||||||
Total accruing loans 30‑89 days past due |
|
|
4,773 |
|
|
2,592 |
|
|
1,497 |
|
|
|
|
|
|
||||||
Total loans 90 days past due and still accruing |
|
|
— |
|
|
— |
|
|
934 |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Capital Ratios (6): |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Tier 1 leverage ratio — Bank |
|
|
13.08 |
% |
|
13.26 |
% |
|
13.64 |
% |
|
|
|
|
|
||||||
Common equity tier 1 — Bank |
|
|
16.94 |
% |
|
17.20 |
% |
|
16.42 |
% |
|
|
|
|
|
||||||
Tier 1 capital ratio — Bank |
|
|
16.94 |
% |
|
17.20 |
% |
|
16.42 |
% |
|
|
|
|
|
||||||
Total capital ratio — Bank |
|
|
18.08 |
% |
|
18.23 |
% |
|
17.36 |
% |
|
|
|
|
|
||||||
Equity to total assets — end of period |
|
|
12.26 |
% |
|
11.94 |
% |
|
12.62 |
% |
|
|
|
|
|
||||||
Tangible equity to tangible assets — end of period (3) |
|
|
10.76 |
% |
|
10.44 |
% |
|
11.06 |
% |
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Real estate |
|
$ |
1,752,626 |
|
$ |
1,785,640 |
|
$ |
1,806,187 |
|
|
|
|
|
|
||||||
Non-real estate |
|
|
161,816 |
|
|
168,350 |
|
|
201,252 |
|
|
|
|
|
|
||||||
Nonaccrual loans |
|
|
12,977 |
|
|
14,321 |
|
|
14,289 |
|
|
|
|
|
|
||||||
Mark to fair value at acquisition |
|
|
354 |
|
|
419 |
|
|
(522 |
) |
|
|
|
|
|
||||||
Total Loans |
|
|
1,927,773 |
|
|
1,968,730 |
|
|
2,021,206 |
|
|
|
|
|
|
||||||
Net deferred fees on loans (7) |
|
|
56 |
|
|
74 |
|
|
(82 |
) |
|
|
|
|
|
||||||
Loans, net of deferred fees |
|
$ |
1,927,829 |
|
$ |
1,968,804 |
|
$ |
2,021,124 |
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Other Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Number of full-service offices |
|
|
35 |
|
|
35 |
|
|
34 |
|
|
|
|
|
|
||||||
Number of full-time equivalent employees |
|
|
358 |
|
|
376 |
|
|
374 |
|
|
|
|
|
|
||||||
(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) |
Capital ratios are for United Business Bank only. |
|
(7) |
Deferred fees include |
Non-GAAP Financial Measures:
In addition to results presented in accordance with generally accepted accounting principles utilized in
Reconciliation of the GAAP and non-GAAP financial measures is presented below:
|
|
|
|
|
|
|
|
|||||
|
|
Non-GAAP Measures |
||||||||||
|
|
(Dollars in thousands, except per share data) |
||||||||||
|
|
|
|
|
|
|
|
|||||
|
|
December 31, |
September 30, |
December 31, |
||||||||
|
|
2023 |
2023 |
2022 |
||||||||
Tangible Book Value: |
|
|
||||||||||
Total equity and common shareholders’ equity (GAAP) |
|
$ |
312,869 |
|
$ |
307,260 |
|
$ |
317,149 |
|
||
less: Goodwill and other intangibles |
|
|
42,753 |
|
|
43,059 |
|
|
44,039 |
|
||
Tangible equity and common shareholders’ equity (Non-GAAP) |
|
$ |
270,116 |
|
$ |
264,201 |
|
$ |
273,110 |
|
||
|
|
|
|
|
|
|
|
|||||
Total assets (GAAP) |
|
$ |
2,551,960 |
|
$ |
2,574,386 |
|
$ |
2,513,334 |
|
||
less: Goodwill and other intangibles |
|
|
42,753 |
|
|
43,059 |
|
|
44,039 |
|
||
Total tangible assets (Non-GAAP) |
|
$ |
2,509,207 |
|
$ |
2,531,327 |
|
$ |
2,469,295 |
|
||
|
|
|
|
|
|
|
|
|||||
Equity to total assets (GAAP) |
|
|
12.26 |
% |
|
11.94 |
% |
|
12.62 |
% |
||
Tangible equity to tangible assets (Non-GAAP) |
|
|
10.76 |
% |
|
10.44 |
% |
|
11.06 |
% |
||
Book value per share (GAAP) |
|
$ |
27.09 |
|
$ |
26.32 |
|
$ |
24.70 |
|
||
Tangible book value per share (Non-GAAP) |
|
$ |
23.38 |
|
$ |
22.63 |
|
$ |
21.27 |
|
||
View source version on businesswire.com: https://www.businesswire.com/news/home/20240125585345/en/
BayCom Corp
Keary Colwell, 925-476-1800
kcolwell@ubb-us.com
Source: BayCom Corp
FAQ
What were the earnings of BayCom Corp (BCML) for Q4 2023?
How did the net income for Q4 2023 compare to Q3 2023 and Q4 2022?
What was the total amount of loans at December 31, 2023?
How many shares of common stock did the Company repurchase during Q4 2023?
What was the status of nonperforming loans at December 31, 2023?
