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BC

BayCom Corp (BCML)·Q1 2025 Earnings Summary

Executive Summary

  • EPS of $0.51 was flat year over year and down vs Q4 ($0.55); consensus EPS was ~$0.517, a slight miss, and consensus revenue was ~$24.07M vs actual ~$23.68M, a modest miss. Values retrieved from S&P Global.* *
  • Net interest margin improved to 3.83% (from 3.80% in Q4 and 3.72% a year ago), while ROAA was 0.89% (down from 0.94% in Q4; 0.92% a year ago).
  • Deposits fell 4.7% QoQ to $2.13B and noninterest-bearing deposits declined to 27.7% of total, reflecting mix shift to higher-cost accounts; net interest income decreased $0.69M QoQ.
  • Capital return continued: repurchased 50,793 shares at $25.82 and paid a $0.15 dividend (Feb 20 announcement), followed by a subsequent 33% dividend increase to $0.20 announced May 21, 2025.

What Went Well and What Went Wrong

What Went Well

  • Net interest margin expanded to 3.83% with lower funding costs and improving loan/security yields; CEO cited “continuing trend of new lending activities and improvement in our net interest margin.”
  • Noninterest income rebounded to $1.44M from $0.09M in Q4, driven by positive fair value adjustments on equity securities, higher gain on sale of loans, and increased service charges.
  • Credit metrics remain solid: NPLs at $10.0M (0.51% of loans), ACL 0.94% of loans; bank remained “well-capitalized.”

What Went Wrong

  • Deposits declined $105.2M QoQ (to $2.13B) and noninterest-bearing deposits fell to 27.7% of total, indicating a shift to higher-cost money market/time deposits.
  • Provision for credit losses rose to $642K (from a $403K reversal in Q4), reflecting loan growth, charge-offs, and higher specific reserves.
  • Net interest income decreased $694K QoQ due to lower yields and balances in fed funds/interest-bearing bank balances and slightly lower loan yields.

Financial Results

MetricQ1 2024Q4 2024Q1 2025
Diluted EPS ($)$0.51 $0.55 $0.51
Net Income ($USD Millions)$5.877 $6.120 $5.702
Net Interest Income ($USD Millions)$22.407 $23.574 $22.880
Noninterest Income ($USD Millions)$2.062 $0.087 $1.440
Total Interest & Dividend Income ($USD Millions)$31.744 $34.134 $32.646
Net Interest Margin (%)3.72% 3.80% 3.83%
ROAA (%)0.92% 0.94% 0.89%
Efficiency Ratio (%)65.68% 67.52% 65.74%

KPIs and Balance Sheet

MetricQ1 2024Q4 2024Q1 2025
Assets ($USD Billions)$2.561 $2.665 $2.564
Loans, net ($USD Billions)$1.887 $1.953 $1.967
Deposits ($USD Billions)$2.143 $2.234 $2.129
Noninterest-Bearing Deposits ($USD Millions, % of total)$630.0 (29.4%) $689.0 (30.8%) $589.5 (27.7%)
Nonperforming Loans ($USD Millions, % of loans)$16.5 (0.87%) $9.5 (0.48%) $10.0 (0.51%)
ACL for Loans ($USD Millions, % of loans)$18.9 (1.00%) $17.9 (0.92%) $18.5 (0.94%)
Loan-to-Deposit Ratio (%)88.05% 87.42% 92.38%
Net Charge-offs ($USD Thousands)$3,372 $(3) $102

Estimates vs Actuals (S&P Global)

MetricConsensusActualSurprise
EPS ($)$0.517*$0.51 Slight miss*
Revenue ($USD)$24.067M*$23.678M*Miss*

Values retrieved from S&P Global.*

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Dividend per share (quarterly)Q2 2025 payable Jul 10$0.15 (declared Feb 20; paid Apr 10) $0.20 (declared May 21) Raised
Share Repurchase Authorization RemainingAs of Mar 31, 2025N/A413,305 shares remaining Maintained authorization
Regulatory Capital StatusAs of Mar 31, 2025Well-capitalized Well-capitalized Maintained

Note: The company did not provide quantitative revenue/EPS/expense guidance in the documents reviewed.

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q1 2025)Trend
Net Interest MarginStabilization in Q3 2024; NIM 3.73% with improving asset yields despite rising funding costs NIM up to 3.83%; lower funding costs and higher loan/securities yields Improving
Deposit Mix & Funding CostsShift to higher-cost money market/time deposits; NIB down; funding costs rising Deposits down 4.7% QoQ; NIB at 27.7%; average cost of interest-bearing liabilities down to 2.49% Mixed: mix pressure persists, cost easing
Credit QualityProactive resolution of problem assets; NPLs dropped in Q3 NPLs at 0.51%; ACL at 0.94%; small uptick vs Q4; net charge-offs $102K Stable with modest uptick
Loan GrowthQ4: $118.4M originations; Q3: originations/purchases supported balances Q1: $72.1M originations and $7.6M purchases; balances up vs Q4 Sustained, slightly lower vs Q4
Macro/RatesFed lowered rates three times in late 2024; impact on funding costs and yields Lower rates reduced yields on fed funds/bank balances; asset yields down slightly QoQ Rate cuts easing funding costs, pressuring cash yields

Management Commentary

  • “Our financial results for the first quarter 2025 reflect a continuing trend of new lending activities and improvement in our net interest margin… Overall, our financial condition remains strong, and our earnings remain steady.” — George Guarini, President & CEO
  • “We are optimistic that in the near-term, we will see a continuing demand for lending and stable credit quality and earnings. We remain committed to strategically repurchasing shares and paying cash dividends to enhance shareholder value.” — George Guarini

Q&A Highlights

  • No Q1 2025 earnings call transcript was available in the documents reviewed; this recap reflects press releases and the 8-K earnings materials.

Estimates Context

  • EPS of $0.51 versus consensus ~$0.517 represented a slight miss; revenue of ~$23.68M was below consensus ~$24.07M. Values retrieved from S&P Global.*
  • Given the deposit outflows and higher provision, near-term estimates may need modest downward adjustments for funding mix and credit cost assumptions; NIM trajectory provides a partial offset.

Key Takeaways for Investors

  • NIM expansion and efficiency ratio improvement indicate disciplined balance sheet management despite deposit mix headwinds.
  • Funding mix remains a watch item: NIB down to 27.7%; continued client migration to higher-cost products could pressure margins if rates do not fall further.
  • Credit profile steady with ACL coverage at 0.94% and NPLs at 0.51%; provision increased as specific reserves rose—monitor delinquency trends and classified assets.
  • Capital returns are credible and increasing: buybacks plus dividend raised to $0.20 post-quarter—supports TSR and valuation.
  • Asset growth is measured and supported by originations/purchases; liquidity remains ample with zero FHLB/FRB advances outstanding.
  • Near-term narrative likely pivots on NIM durability vs. deposit dynamics; a benign credit environment and improving securities/loan yields are positive offsets.
  • Tactical implication: Watch deposit mix updates and provision trends in Q2; dividend increase is a constructive sentiment catalyst.