Executive Summary

Q2 2025 EPS was $0.58, up 13.7% YoY and 13.7% QoQ; EPS beat Wall Street consensus of $0.55333 by ~$0.03 per share, driven by higher net interest income, lower opex, and a smaller credit provision . Revenue was $24.47M vs consensus $24.07M, a modest beat, supported by loan growth and improved asset yields .
Net interest margin slipped sequentially to 3.77% (from 3.83%) on higher deposit funding costs, but improved YoY vs 3.69% on asset repricing; ROAA rose to 0.98% from 0.89% QoQ .
Credit remained resilient with net charge-offs at $13K, though nonperforming loans increased to 0.82% of loans on several CRE placements to nonaccrual; ACL/loans held at 0.93% .
Capital deployment accelerated: 148,450 shares repurchased ($25.88 avg) and $0.20 dividend declared/paid in July; subsequent dividend increase to $0.25 in August enhances the total return narrative .

Note: A Q2 2025 earnings call transcript was not available in our document set (searched and none found).

What Went Well and What Went Wrong

What Went Well

EPS and revenue beat consensus; sequential earnings growth aided by higher net interest income, lower opex, and reduced credit provisioning (EPS $0.58; revenue $24.47M) *. CEO: “Our financial results…continued a positive trend, supported by new lending activity and deposit growth” .
Efficiency ratio improved to 63.85% in Q2 (from 65.74% in Q1; 67.34% in Q2’24) via lower salaries/benefits and “other expense” reductions, including return of unused CalCap reserve funds .
Deposit growth (+$57.8M QoQ) with noninterest-bearing deposits up to 28.2% of total; liquidity robust with no FHLB/FRB borrowings outstanding .

What Went Wrong

Net interest margin compressed QoQ to 3.77%, reflecting higher rates paid on money market and time deposits that outpaced asset yield changes .
Nonperforming loans rose to 0.82% (from 0.51% QoQ) due to seven CRE loans placed on nonaccrual and a rise in 90+ day past due (mostly government-guaranteed) .
Noninterest income mix included increased losses in SBIC fund and lower gain on sale of loans vs Q1, partially offsetting equity securities valuation improvement .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025 Actual	Q2 2025 Consensus
Total Revenue ($USD Millions)	$23.61	$23.68	$24.47	$24.07*
Net Interest Income ($USD Millions)	$22.30	$22.88	$23.16	—
Noninterest Income ($USD Millions)	$1.48	$1.44	$1.51	—
Diluted EPS ($USD)	$0.50	$0.51	$0.58	$0.55333*
Net Interest Margin (%)	3.69%	3.83%	3.77%	—
ROAA (%)	0.87%	0.89%	0.98%	—
Efficiency Ratio (%)	67.34%	65.74%	63.85%	—

Notes:

Total revenue calculated as net interest income after provision + total noninterest income (S&P “Revenue” aligns with this definition) .
Consensus estimates marked with an asterisk are from S&P Global (Capital IQ).

Segment/Balance Mix (Selected)

Metric	Q2 2024	Q1 2025	Q2 2025
Loans, net of deferred fees ($USD Millions)	$1,864.17	$1,966.67	$2,000.25
Real Estate Loans ($USD Millions)	$1,690.18	$1,774.64	$1,801.11
Non-Real Estate Loans ($USD Millions)	$157.33	$181.65	$184.72
Deposits ($USD Millions)	$2,175.01	$2,128.83	$2,186.63
Noninterest-Bearing Deposits ($USD Millions; % of total)	$618.62 (28.4%)	$589.48 (27.7%)	$616.10 (28.2%)

KPIs and Asset Quality

Metric	Q2 2024	Q1 2025	Q2 2025
NPLs / Total Loans (%)	0.87%	0.51%	0.82%
ACL / Loans (%)	1.02%	0.94%	0.93%
Net Charge-offs ($USD Thousands)	$76	$102	$13
Loan-to-Deposit Ratio (%)	85.71%	92.38%	91.48%
Equity / Assets (%)	12.15%	12.85%	12.61%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY/Quarter	N/A	N/A	No formal guidance provided
Net Interest Margin	FY/Quarter	N/A	N/A	No formal guidance provided
Operating Expenses	FY/Quarter	N/A	N/A	No formal guidance; mgmt focused on expense control
Credit Costs	FY/Quarter	N/A	N/A	No formal guidance; continued discipline
Dividend per Share	Q2 2025	$0.15 (Nov 2024)	$0.20 (paid Jul 10, 2025)	Raised
Dividend per Share	Post-Q2	$0.20	$0.25 (declared Aug 21, 2025)	Raised
Share Repurchases	Q2 2025	Ongoing authorization	148,450 shares at $25.88 average	Activity update

Earnings Call Themes & Trends

Note: Q2 2025 earnings call transcript not available; themes reflect management’s press-release commentary.

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
Deposit mix and funding costs	Shift toward MM/time deposits; avg cost of funds peaked in Q4; noninterest-bearing % up at YE	Deposit growth QoQ; NIBD at 28.2%; higher MM funding costs pressured NIM	Mixed: growth, but higher costs
Net interest margin trajectory	NIM improved to 3.80% in Q4, then 3.83% in Q1	NIM 3.77% on higher deposit rates; YoY improvement vs 3.69%	Near-term pressure; YoY better
Credit quality	ACL/loans declined on favorable economic forecasts in Q4; NPLs down QoQ	NPLs rose on 7 CRE nonaccruals; net charge-offs minimal; ACL/loans ~0.93%	Slight deterioration in NPLs
Noninterest income volatility	Large equity securities loss in Q4; recovery in Q1	Modest improvement in equity securities valuation; SBIC losses offset gains	Stabilizing, mixed components
Capital returns	Small buybacks in Q4; $0.15 dividend	$0.20 dividend, accelerated buybacks; post-Q2 dividend raised to $0.25	Strengthening shareholder returns

Management Commentary

“Our financial results for the second quarter of 2025 continued a positive trend, supported by new lending activity and deposit growth…we have not observed any signs of systemic credit weakness.” — George Guarini, CEO .
“We remain focused on managing operating expenses, maintaining strong credit discipline, and closely monitoring the quality of our new loan originations.” — George Guarini .
“We remain committed to the strategic repurchase of shares and the payment of cash dividends…” — George Guarini .

Q&A Highlights

An earnings call transcript for Q2 2025 was not available in our document set; no Q&A section to reference (searched across earnings-call-transcript sources and found none).
Clarifications from the release: NIM sequential compression was funding-cost driven; NPL increase tied to specific CRE placements with limited net charge-offs; deposit growth characterized as organic .

Estimates Context

Metric	Q2 2025 Actual	Q2 2025 Consensus	Beat/Miss
EPS ($)	$0.58	$0.55333*	Beat
Revenue ($USD Millions)	$24.47	$24.07*	Beat
# of EPS Estimates	—	3*	—
# of Revenue Estimates	—	3*	—

Forward consensus snapshots:

Q4 2025 EPS consensus: $0.65*; Revenue: $25.50M*.
Q1 2026 EPS consensus: $0.59*; Revenue: $25.07M*.

Values marked with an asterisk retrieved from S&P Global (Capital IQ).

Key Takeaways for Investors

Momentum with discipline: The quarter delivered beats on EPS and revenue, aided by volume/loan growth and lower opex; watch deposit rate competition as the near-term NIM governor *.
Credit is manageable: NPL uptick (mainly CRE) did not translate into elevated losses; net charge-offs were de minimis, and ACL/loans ~0.93% remains adequate given macro assumptions .
Capital return accelerating: Ongoing buybacks and sequential dividend increases ($0.20 in Q2; $0.25 post-Q2) support TSR and can be a stock catalyst, particularly for yield-oriented investors .
Near-term trading angle: Expect sensitivity to deposit pricing/mix headlines and CRE credit updates; an additional quarter of stable NCOs and controlled opex could sustain estimate momentum and multiple support *.
Medium-term thesis: Asset repricing continues to underpin YoY margin improvement; operating leverage via expense control and mix-enhanced deposits can offset competitive funding pressures .
Liquidity and capital: No reliance on wholesale borrowings; well-capitalized bank-level ratios and rising tangible book value provide downside protection .
Watch list items: CRE nonaccrual resolutions, SBIC fund mark-to-market, and any macro shifts in unemployment/GDP that feed the ACL model .

Footnote: Consensus/target/forward estimate values are retrieved from S&P Global (Capital IQ).

BayCom Corp (BCML)·Q2 2025 Earnings Summary