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BC

BayCom Corp (BCML)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 2025 EPS was $0.46, down from $0.58 in Q2 and $0.54 in Q3 2024, driven by a sharp increase in provision for credit losses and one-time amortization of debt issuance costs tied to early redemption of subordinated debt .
  • Versus S&P Global consensus, EPS modestly beat by ~$0.01 and operating revenue beat by ~$1.26M, supported by higher loan yields and improved noninterest income on equity securities and SBIC mark-to-market; estimates context below for details* .
  • Net interest margin compressed sequentially to 3.72% (from 3.77%) as funding costs rose faster than asset yields due to elevated money market rates and accelerated amortization of deferred debt issuance costs .
  • Credit metrics were mixed: nonperforming loans fell to 0.68% of loans (from 0.82% in Q2), but provision rose to $3.0M and net charge-offs increased to $0.83M; ACL/loans improved to 1.02% .
  • Capital return continued: the quarterly cash dividend was raised to $0.25 and 33,300 shares were repurchased at a $27.29 average; management reiterated commitment to buybacks and dividends as medium-term value drivers .

What Went Well and What Went Wrong

What Went Well

  • Loan yields improved and net interest income rose QoQ and YoY, driven by higher average loan balances and repricing; average loan yield reached 5.76% versus 5.63% in Q2 and 5.53% a year ago .
  • Noninterest income rebounded +48.6% QoQ to $2.2M on gains in equity securities and lower SBIC fund losses, partially offset by softer service and loan servicing fees .
  • Asset quality showed progress: NPLs fell to $13.9M (0.68% of loans) from $16.4M in Q2, aided by payoffs and a loan returning to accrual; management emphasized collateral coverage remains sufficient for new CRE nonaccruals .

Management quote: “We… strengthened our balance sheet by repaying our subordinated debt and increasing our loan loss reserves… one-time costs… reduced EPS for the quarter; however, we believe they position the Company for sustained earnings growth” — George Guarini, CEO .

What Went Wrong

  • Provision for credit losses rose sharply to $3.0M (vs $0.2M in Q2; $1.2M a year ago), driven by CECL model updates, higher quantitative reserves and net charge-offs, pressuring EPS .
  • Net interest margin declined to 3.72% as the average rate paid on interest-bearing liabilities increased 23 bps QoQ (to 2.77%) versus a 10 bps increase in asset yields; accelerated amortization of deferred debt issuance costs added ~20 bps to funding cost .
  • Four new CRE nonaccruals ($7.0M) were added and classified assets rose to $54.1M, signaling persistent credit normalization despite sequential NPL improvement .

Financial Results

Summary vs Prior Year and Prior Quarter

MetricQ3 2024Q2 2025Q3 2025
Operating revenue ($USD Millions)$25.610 $24.673 $25.657
Diluted EPS ($)$0.54 $0.58 $0.46
Net interest margin (%)3.73 3.77 3.72
ROAA (%)0.94 0.98 0.75
Efficiency ratio (%)62.76 63.85 62.15
Net interest income ($USD Millions)$22.865 $23.160 $23.409
Noninterest income ($USD Millions)$2.745 $1.513 $2.248

Estimates vs Actual (Q3 2025)

MetricS&P Global ConsensusActualBeat/Miss
Diluted EPS ($)$0.45333*$0.46 Beat by ~$0.0067 (EPS vs S&P)*
Operating revenue ($USD Millions)$24.400*$25.657 Beat by ~$1.26M (Rev vs S&P)*

*Values retrieved from S&P Global.

Portfolio and Deposits

MetricQ3 2024Q2 2025Q3 2025
Loans, net ($USD Millions)$1,912.1 $2,000.2 $2,042.3
Real estate loans ($USD Millions)$1,725.3 $1,801.1 $1,848.1
Non‑real estate loans ($USD Millions)$176.5 $184.7 $179.9
NPLs ($USD Millions)$9.7 $16.4 $13.9
ACL / Loans (%)0.96% 0.93% 1.02%
Deposits ($USD Millions)$2,136.4 $2,186.6 $2,228.1
Noninterest‑bearing deposits ($USD Millions)$618.3 $616.1 $618.1

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Cash dividend per shareQ3 2025$0.20 (declared 5/21/25) $0.25 (declared 8/21/25) Raised
Subordinated debtQ3 2025$63.8M outstanding (Q2) Redeemed; $0 outstanding (Q3) Deleveraging
Effective tax rate (reported)Q3 202527.0% (Q2) 25.7% (Q3) Lower sequentially
Revenue/EPS formal guidanceFY/QtrNot providedNot providedMaintained (N/A)

Earnings Call Themes & Trends

TopicPrevious Mentions (Q-2 and Q-1)Current Period (Q3 2025)Trend
Funding costs and NIMNIM 3.83% (Q1) and 3.77% (Q2); rising money market rates pressured funding costs NIM 3.72%; 23 bps QoQ increase in liability cost; 20 bps impact from amortization of debt issuance costs Incremental pressure QoQ
Credit reserves (CECL)Q1/Q2 reserves adjusted for macro (unemployment/GDP) and specific reserves Annual CECL update raised quantitative reserves; provision $3.0M; ACL to 1.02% More conservative
Asset qualityNPLs 0.51% (Q1) to 0.82% (Q2) NPLs improved to 0.68%; new CRE nonaccruals $7.0M; payoffs/return to accrual Mixed but stabilizing
Capital returnBuybacks/dividend $0.15→$0.20 (Q1/Q2) Buybacks 33,300 shares; dividend $0.25 Increasing shareholder returns
Balance sheet optimization—Early redemption of subordinated debt; one-time amortization cost Deleveraging; future interest expense tailwind

Note: A Q3 2025 earnings call transcript was not available in our document set; themes reflect reported materials .

Management Commentary

  • “We… strengthened our balance sheet by repaying our subordinated debt and increasing our loan loss reserves… one-time costs… reduced EPS for the quarter; however, we believe they position the Company for sustained earnings growth” — George Guarini, President & CEO .
  • “We expect continued stable credit quality and improving earnings performance… committed to strategic share repurchases and the payment of cash dividends” — George Guarini .

Q&A Highlights

  • No Q3 2025 earnings call transcript was available from our sources; no Q&A disclosures to report .

Estimates Context

  • S&P Global Q3 2025 EPS consensus was $0.45333 vs actual $0.46, a modest beat; revenue consensus $24.40M vs actual operating revenue $25.657M, a beat*. The prior quarter (Q2 2025) had EPS consensus $0.55333 vs actual $0.58 and revenue consensus $24.07M vs actual $24.47M*. For Q3 2024, EPS consensus $0.51 vs actual $0.54 and revenue consensus $22.60M vs actual $24.365M*.
    *Values retrieved from S&P Global.

Key Takeaways for Investors

  • Near-term EPS pressure was largely from elevated provision and one-time debt cost amortization; absent these, core NII trends and asset yields improved QoQ .
  • Deleveraging via subordinated debt redemption should reduce forward interest expense; Q3’s amortization headwind was nonrecurring, supporting medium-term EPS recovery .
  • Credit normalization continues but remains manageable: NPLs declined QoQ; ACL coverage increased to ~150% of NPLs, and CRE collateral coverage is assessed as sufficient .
  • Deposit growth was organic and stable; mix shifts toward higher-cost money market/time deposits continue to pressure funding costs—watch for pricing discipline and ICS/CDARS utilization .
  • Shareholder returns are ramping (dividend $0.25; ongoing buybacks), offering support for the stock while internal capital remains solid (equity/asset 12.84%) .
  • Trading lens: A small beat vs S&P on EPS and revenue*, coupled with nonrecurring cost items and improved noninterest income, may temper negative headline EPS compares; catalysts include lower future funding costs and continued capital return .
    *Values retrieved from S&P Global.