Name: BayCom Corp Q4 2024 Earnings Call
Start: 2025-01-23T00:00:00.000Z

Executive Summary

Q4 2024 EPS was $0.55, flat YoY and up $0.01 QoQ, on net income of $6.1M; NIM expanded 7 bps sequentially to 3.80% as asset yields rose and funding costs edged lower .
Noninterest income collapsed to $0.09M, driven by negative fair value adjustments on equity securities and SBIC fund losses; efficiency ratio worsened to 67.5% despite modest QoQ opex reduction .
Credit trends improved: reversal of $0.403M provision, net recoveries, and NPL ratio down to 0.48%; period-end loans grew to $2.0B; ROAA held at 0.94% .
Capital returns: dividend raised 50% to $0.15 per share (paid Jan 10, 2025) and modest buyback activity; bank remains well-capitalized with Tier 1 leverage at 13.4% .
Estimates context: S&P Global consensus was unavailable at time of analysis; we cannot assess beat/miss versus Street for Q4 2024 (see Estimates Context).

What Went Well and What Went Wrong

What Went Well
- Net interest margin improved to 3.80% (from 3.73%), aided by higher earning-asset yields and slightly lower rates on interest-bearing liabilities; management cited “improvement in our net interest margin” alongside new lending momentum .
- Credit improvement: ACL reversal of $0.403M, net recoveries, and NPL ratio of 0.48% (vs. 0.51% in Q3; 0.67% YoY) .
- Loan growth returned: period-end loans up to $1.953B (+$41M QoQ); CEO: “continuing trend of new lending activities” .
What Went Wrong
- Noninterest income plunged to $0.087M on negative equity securities marks and SBIC losses; this was the primary drag on earnings quality QoQ .
- Operating leverage mixed: efficiency ratio deteriorated to 67.5% (62.8% in Q3; 57.5% YoY) as revenues softened ex-NII and expenses ran higher YoY (salaries, data processing, occupancy) .
- Funding costs remain elevated YoY: average cost of deposits rose to 1.73% (from 1.40% YoY) and rate on interest-bearing liabilities to 2.58% (from 2.21% YoY), pressuring spread versus last year .

Metric	Q4 2023	Q3 2024	Q4 2024
Total interest & dividend income ($M)	$32.192	$33.426	$34.134
Net interest income ($M)	$23.527	$22.865	$23.574
Noninterest income ($M)	$2.677	$2.745	$0.087
(Reversal of) provision for credit losses ($M)	$2.325	$1.245	$(0.403)
Noninterest expense ($M)	$15.074	$16.074	$15.976
Net income ($M)	$6.398	$6.017	$6.120
Diluted EPS ($)	$0.55	$0.54	$0.55
Net interest margin (%)	3.86%	3.73%	3.80%
ROAA (%)	1.00%	0.94%	0.94%
Efficiency ratio (%)	57.53%	62.76%	67.52%

Segment breakdown: Not applicable; the company does not report by operating segments in the release .

KPIs (period-end unless noted)

KPI	Q4 2023	Q3 2024	Q4 2024
Loans, net ($B)	$1.928	$1.912	$1.953
Deposits ($B)	$2.133	$2.136	$2.234
NIB deposits ($B) / % of total	$0.646 / 30.3%	$0.618 / 28.9%	$0.689 / 30.8%
Nonperforming loans ($M)	$13.0	$9.7	$9.5
NPLs / Total loans (%)	0.67%	0.51%	0.48%
ACL / Loans (%)	1.14%	0.96%	0.92%
Net charge-offs (recoveries) ($M)	$0.150	$1.545	$(0.003)
Loan-to-deposit ratio (%)	90.39%	89.50%	87.42%
Tier 1 leverage (Bank) (%)	13.08%	13.23%	13.42%
Book value per share ($)	$27.09	$28.90	$29.17
Tangible book value/share ($)	$23.38	$25.14	$25.43

Metric	Period	Previous Guidance/Level	Current Guidance/Level	Change
Formal financial guidance (revenue/margins/tax)	2025 outlook	Not provided	Not provided	Maintained (no formal guidance)
Quarterly dividend per share	Q4 declared for Jan 2025 payment	$0.10 (Q2/Q3 2024 declarations)	$0.15 (declared Nov 20, 2024; paid Jan 10, 2025)	Raised (50%)
Share repurchase authorization (shares remaining)	Period-end	465,598 (Sep 30, 2024)	464,098 (Dec 31, 2024)	Slight reduction (usage of program)
Capital ratios (Bank)	Q4 2024	CET1 16.94% / Tier 1 16.94% / Total 18.08% (Q4 2023)	CET1 16.94% / Tier 1 16.94% / Total 17.86% (Q4 2024)	Stable/robust

Topic	Q2 2024 (Q-2)	Q3 2024 (Q-1)	Q4 2024 (Current)	Trend
Net interest margin trajectory	“Decline in net interest margin has slowed”	“Appears that our net interest margin has stabilized”	“Improvement in our net interest margin” with NIM up to 3.80%	Improving
Loan demand	“Continue to see low loan demand”	“Loan demand has started to recover”	“Continuing trend of new lending activities”	Improving
Credit quality	No systemic weakness; ACL modestly replenished	Proactive resolution of problem assets; NPLs reduced	Reversal of provision; NPL ratio 0.48%	Improving
Noninterest income (equity/SBIC)	Mixed; equity gains YoY vs prior periods	Positive equity marks drove QoQ increase	Negative equity marks and SBIC losses drove decline	Volatile
Deposit mix/costs	NIB % down; cost of deposits rising	NIB % ~29%; cost of deposits 1.75%	NIB rose to 30.8% (timing); cost of deposits 1.73%	Stabilizing mix; elevated costs YoY
Capital returns	$0.10 dividend; active buybacks	$0.10 dividend; continued buybacks	Dividend raised to $0.15; modest buybacks	More shareholder-friendly

“Our financial results for the fourth quarter and full year 2024 reflect a continuing trend of new lending activities and improvement in our net interest margin. Improving credit quality and economic factors are evident in the reversal of our provision for credit losses.” — George Guarini, President & CEO .
“We are optimistic that 2025 will see a continuing demand for lending and improving bank valuations. We remain committed to enhancing shareholder value through share repurchases and cash dividends.” — George Guarini .
Prior quarters for context: “Decline in net interest margin has slowed… deposit base has stabilized… no systemic credit weakness.” — Q2 2024 . “Net interest margin has stabilized… loan demand has started to recover… credit quality remains strong.” — Q3 2024 .

No Q4 2024 earnings call transcript was available in the document set; therefore, no Q&A highlights or additional guidance clarifications could be extracted [ListDocuments: none; Search returned no transcript results].

Wall Street consensus from S&P Global for Q4 2024 EPS/revenue was unavailable at time of analysis due to an S&P Global request limit; as a result, we cannot assess beat/miss versus Street for Q4 2024 using SPGI data. Values would normally be retrieved from S&P Global consensus.

Core spread momentum: NIM expanded to 3.80% on higher asset yields and slightly lower liability costs; watch if Fed cuts continue to pressure asset yields or ease deposit betas further .
Earnings quality mixed: headline EPS steady, but composition skewed by a sharp decline in noninterest income (equity marks and SBIC), underscoring P&L sensitivity to market valuations .
Credit a support: provision reversal, net recoveries, and lower NPL ratio provide a cushion if growth normalizes; credit commentary and metrics improved sequentially .
Balance sheet resilient: loans grew QoQ to $2.0B; deposits grew to $2.23B with an uptick in NIB mix (timing-related); capital ratios robust, enabling continued dividends and opportunistic buybacks .
Operating discipline still needed: efficiency ratio worsened to 67.5% from 62.8% in Q3; sustained revenue growth (NII plus fee diversification) and expense control remain key to improving operating leverage .
Shareholder returns stepping up: dividend increased 50% to $0.15 per share and buybacks continue, signaling confidence in earnings durability and capital strength .
Near-term catalysts: stabilization/improvement in NIM, sustained loan growth, and normalization of equity securities/SBIC marks could improve earnings mix; lack of formal guidance suggests monitoring quarterly disclosures for trajectory .