WALNUT CREEK, Calif., July 26, 2017 (GLOBE NEWSWIRE) -- BayCom Corp, “Company”, (OTCBB:BCML), announced quarterly earnings of $1.5 million in the second quarter of 2017, compared to $1.4 million in the first quarter of 2017 and $1.5 million in the second quarter of 2016.  Diluted earnings per share were $0.27 in the second quarter 2017 compared to $0.26 in the first quarter and to $0.27 in the second quarter of 2016.  

President and Chief Executive Officer, George J. Guarini stated, “A highlight of our second quarter 2017 financial performance was the closing of our merger for First ULB Corp. In addition, our financial performance continues to demonstrate our presence in the SBA lending market.  Our total assets increased to nearly $1.2 billion.”

Mr. Guarini added, “We have completed the conversion and integration of the two banks in the second quarter and we are now positioned to take on new opportunities.  This is demonstrated by our recent announcement to acquire Plaza Bank in Seattle, Washington.  The merger with Plaza Bank allows us to expand our market presence in Seattle.”

The Bank also provided the following highlights on its operating and financial performance for the second quarter of 2017:

• Loans totaled $859.3 million at June 30, 2017, compared to $535.5 million at March 31, 2017 and $508.3 million at December 31, 2016.  New loan volume was approximately $42.2 million in the second quarter of 2017 compared to $38.4 million in the first quarter 2017.
• Deposits totaled $1,031.8 million at June 30, 2017 compared to $610.0 million at March 31, 2017 and $590.8 million at December 31, 2016.   As of June 30, 2017, non-interest bearing deposits represent 30.2% of total deposits and the cost of total deposits decreased to 0.38% compared to 0.68% at March 31, 2017.
• Non-accrual loans represented 0.04% of total loans as of June 30, 2017 resulting in a Texas ratio of 0.59%. The provision for loan losses recorded in the second quarter 2017 totaled $144 thousand.
• All capital ratios are well above regulatory requirements for a Well-capitalized institution. The Bank’s total risk-based capital ratio was 12.15% at June 31, 2017 compared to 13.86% at December 31, 2016, and the tangible common equity to tangible assets ratio was 8.61% compared to 11.45% at December 31, 2016.

Loans and Credit Quality

Loan originations in the second quarter of 2017 were spread throughout our markets with the majority focused in Santa Clara, Alameda and San Francisco Counties. By loan type, owner-user real estate, investor real estate and multi-family residential real estate accounted for the majority of the new loan volume in the quarter.  

Year-to-date loan originations of $35.5 million are approx. $8.2 million lower than compared to the first quarter 2017.   Payoffs totaled $20.5 million in the quarter ended June 30, 2017 were primarily the result of property sales or planned events.   Payoffs for the first quarter 2017 were $21.7 million.

Non-accrual loans totaled $368 thousand, or 0.04% of the loan portfolio at June 30, 2017, compared to $1.0 million, or 0.21%, at December 31, 2016 and $1.9 million, or 0.38% a year ago.   Accruing loans past due 30 to 89 days totaled $654 thousand at June 30, 2017, compared to $625 thousand at December 31, 2016 and $174 thousand a year ago.

The provision for loan losses recorded in the second quarter of 2017 totaled $144 thousand primarily to provide for loan growth.  Recoveries net of charge-offs for the first quarter totaled $5 thousand compared to net recoveries of $7 thousand in the first quarter 2017 and recoveries of $4 thousand in the same quarter a year ago. The ratio of allowance for loan losses to loans totaled 0.51% at June 30, 2017 compared to 0.73% at March 31, 2017. As of June 30, 2017, acquired loans totaling $386.2 million are covered by mark to market valuations.

Investments and Borrowings

The investment portfolio totaled $61.9 million at June 30, 2017, an increase of $37.2 million from March 31, 2017 mainly due to the acquisition of investment securities in the merger with First ULB.   

As of June 30, 2017, other borrowings totaled $6.0 million and Trust Preferred Securities, net of a market value premium, totaled $5.4 million.  Neither was outstanding as of March 31, 2017.

Deposits

Deposits totaled $1,031.8 million at June 30, 2017, compared to $610.0 million at March 31, 2017 and $535.7 million at June 30, 2016. While day-to-day volatility continues due to the normal business activity of our customers, the trend is upward in both average and ending balances. Non-interest bearing deposits totaled $311.5 million, or 30.2% of total deposits, compared to 23.3% at March 31, 2017 and 21.7% at December 31, 2016.

Earnings

Net interest income totaled $9.4 million for the second quarter 2017 compared to $6.6 million for the same period in 2016.

The tax-equivalent net interest margin was 4.07% in the second quarter of 2017, compared to 4.15% in the prior quarter and 3.91% in the same quarter a year ago. The increase from last quarter includes 29 basis points related to the payoffs of PCI loans.

Loans acquired through the acquisition of other banks are classified as PCI or non-PCI loans and are recorded at fair value at acquisition date. For acquired loans not considered credit impaired, the level of accretion varies due to maturities and early payoffs. Accretion on PCI loans fluctuates based on changes in cash flows expected to be collected. Gains on payoffs of PCI loans are recorded as interest income when the payoff amounts exceed the recorded investment. PCI loans totaled $14.4 million, $7.4 million, and $8.9 million at June 30, 2017, December 31, 2016, and June 30, 2016, respectively.

Accretion and gains on payoffs of purchased loans recorded to interest income were $735 thousand for the second quarter 2017 compared to $557 thousand for first quarter 2017, and $650  thousand for the same period last year.

Non-interest income in the first quarter of 2017 totaled $1.6 million, compared to $735 thousand in the prior quarter and $308 thousand in the same quarter a year ago. The increase compared to the prior quarter primarily relates to gain on sale of loans totaling $875 thousand in the second quarter 2017 compared to $400 thousand in the first quarter of 2017 and to none in the same quarter last year.

Non-interest expense totaled $8.2 million in the second quarter of 2017 up from $4.5 million last quarter and $4.0 million in the same quarter last year.  Merger related expenses recorded in the second quarter total $2.3 million.  The remaining increase is related to higher operating expenses due to the merger including an increase in the number of employees, branch offices and data process charges as a result of higher volume.

About BayCom Corp

Through its wholly owned subsidiary, United Business Bank, the Company offers a full-range of loans, including SBA, FSA and USDA guaranteed loans, and deposit products and services to businesses and its affiliates throughout the Greater Bay Area.  The Bank also offers business escrow services and facilitates tax free exchanges through its Bankers Exchange Division.  The Bank is an Equal Housing Lender and member FDIC.  It is traded Over the Counter Bulletin Board under the symbol “BCML”.  For more information, go to www.unitedbusinessbank.com.

Forward-Looking Statements

This release may contain certain forward-looking statements that are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact Bank's earnings in future periods. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "intend," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, economic uncertainty in the United States and abroad, changes in interest rates, deposit flows, real estate values, costs or effects of future acquisitions, competition, changes in accounting principles, policies or guidelines, legislation or regulation, and other economic, competitive, governmental, regulatory and technological factors (including external fraud and cyber-security threats) affecting Bank's operations, pricing, products and services. These and other important factors are detailed in various securities law filings made periodically by Bank, copies of which are available from Bank without charge. The Bank undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.  

FINANCIAL HIGHLIGHTS
				June 30, 2017				March 31, 2017				June 30, 2016
Quarter-To-Date
	Net Income			$	1,501,414			$	1,416,266			$	1,455,333
	Diluted Earnings Per Common Share			$	0.27			$	0.26			$	0.27
	Return On Average Assets (ROA)				0.60	%			0.83	%			0.92	%
	Return On Average Equity (ROE)				6.24	%			7.17	%			7.86	%
	Efficiency Ratio				73.91	%			63.82	%			58.15	%
	Net Interest Margin				3.90	%			3.91	%			4.40	%
	Net Charge-Offs/(Recoveries)			$	(5,250	)		$	(6,503	)		$	(4,173	)
	Net Charge-Offs/(Recoveries) To Average Loans				0.00	%			0.00	%			0.00	%
Year-To-Date
	Net Income			$	2,917,680			$	1,416,266			$	2,804,087
	Diluted Earnings Per Common Share			$	0.53			$	0.26			$	0.52
	Return On Average Assets (ROA)				0.69	%			0.83	%			0.88	%
	Return On Average Equity (ROE)				6.66	%			7.17	%			7.63	%
	Efficiency Ratio				69.95	%			63.82	%			61.39	%
	Net Interest Margin				3.95	%			3.96	%			4.27	%
	Net Charge-Offs/(Recoveries)			$	(11,753	)		$	(6,503	)		$	(8,048	)
	Net Charge-Offs/(Recoveries) To Average Loans				0.00	%			0.00	%			0.00	%
At Period End
	Total Assets			$	1,155,943,167			$	697,397,629			$	641,773,583
	Loans:
		Real Estate		$	761,120,570			$	461,299,207			$	443,545,296
		Non-real estate			107,092,657				73,570,589				66,098,087
		Loans Held for Sale							4,383,428				-
		Non-accrual loans			367,795				991,755				1,909,952
		Mark to market on acquired loans			(9,261,310	)			(4,717,212	)			(6,636,817	)
		Total Loans		$	859,319,712			$	535,527,767			$	504,916,518
	Classified Assets (Graded Substandard and Doubtful)			$	7,164,099			$	8,644,709			$	9,150,090
	Total Accruing Loans 30-89 Days Past Due			$	654,483			$	338,668			$	228,000
	Loan Loss Reserve To Loans				0.51	%			0.73	%			0.84	%
	Loan Loss Reserve to Non-accrual loans				1184.08	%			395.76	%			220.95	%
	Non-Accrual Loans To Total Loans				0.04	%			0.19	%			0.38	%
	Texas Ratio				0.59	%			2.45	%			2.42	%
	Total Deposits			$	1,031,780,780			$	609,952,562			$	535,660,525
	Loan-To-Deposit Ratio				83.29	%			87.80	%			95.50	%
	Stockholders' Equity			$	104,017,747			$	79,579,734			$	74,555,843
	Book Value Per Share			$	15.20			$	14.54			$	13.71
	Tangible Book Value Per Share			$	13.14			$	14.40			$	13.53
	Tangible Common Equity To Tangible Assets				8.61	%			11.32	%			11.48	%
	Total Risk-Based Capital Ratio-Bank				12.15	%			13.99	%			13.65	%
	Full-Time Equivalent Employees				152				105				106

BAYCOM CORP STATEMENT OF CONDITION (UNAUDITED) At June 30, 2017, March 31, 2017, and December 31, 2016
								Audited
				June 30, 2017		March 31, 2017		December 31, 2016
Assets
	Cash and due from banks			$	201,181,847	$	125,531,611	$	128,684,416
	Investments				61,894,919		24,690,663		26,393,451
	Loans, net of allowance for loan losses and deferred fees				854,640,346		531,441,926		504,264,026
	Bank premises and equipment, net				8,527,362		1,008,798		1,106,030
	Core Deposit Premium				4,941,677		719,372		802,436
	Goodwill				9,125,500		-		-
	Interest receivable and other assets				15,631,516		14,005,259		14,048,162
			Total assets	$	1,155,943,167	$	697,397,629	$	675,298,520
Liabilities and Stockholders' Equity
Liabilities
	Deposits
		Non-interest bearing		$	311,522,277	$	142,436,582	$	128,696,712
		Interest bearing
			MMA/NOW/SVG		376,952,820		125,059,037		128,970,967
			Premium MM		146,783,810		178,197,667		171,947,166
			Time Deposits		196,521,873		164,259,276		161,143,915
	Total deposits			$	1,031,780,780	$	609,952,562	$	590,758,760
	Federal Home Loan Bank (FHLB) and other borrowings				11,356,954		-		-
	Interest Payable and other liabilities				8,787,686		7,865,333		6,476,580
		Total liabilities		$	1,051,925,420	$	617,817,895	$	597,235,340
Stockholders' Equity
	Common Stock, no par value			$	69,393,816	$	47,632,398	$	47,540,808
	Retained earnings				34,521,615		31,850,203		30,433,937
	Accumulated other comprehensive income				102,316		97,133		88,434
		Total stockholders' equity			104,017,747		79,579,734		78,063,179
			Total liabilities and stockholders' equity	$	1,155,943,167	$	697,397,629	$	675,298,520

  

STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
																					Audited
							Three months ended							Six months ended							Years Ended
							June 30,			June 30,				June 30,			June 30,				December 31,
								2017			2016				2017			2016				2016
Interest income
	Interest Income - Non RE						$	1,304,685		$	873,450			$	2,278,483		$	1,812,524			$	3,542,281
	Interest Income - RE							8,130,506			5,487,036				13,605,147			10,579,450				21,496,827
	Interest on investment securities							480,813			187,224				758,926			428,492				809,398
	Interest on Federal funds sold and other bank deposits							137,908			102,847				255,400			163,511				422,510
	Mark to market accretion and FAS 91 Fee amortization							663,306			815,134				1,220,803			1,624,787				3,354,471
			Total interest income				$	10,717,218		$	7,465,691			$	18,118,759		$	14,608,764			$	29,625,487
Interest expense
	Interest on transaction accounts							466,358			367,712				917,505			742,147				1,597,440
	Interest on time deposits							504,618			344,445				971,743			660,239				1,476,134
	Premium on core deposits							212,696			105,000				295,760			210,000				398,064
	Interest on borrowings							100,955			-				100,955			-				-
			Total interest expense				$	1,284,627		$	817,157			$	2,285,963		$	1,612,386			$	3,471,638
				Net interest income				9,432,591			6,648,534				15,832,796			12,996,378				26,153,849
	Provision for loan losses							143,949			365,828				287,446			361,953				598,463
			Net interest income after provision for loan losses				$	9,288,642		$	6,282,706			$	15,545,350		$	12,634,425			$	25,555,386
Non-interest income
	Loan Fee Income							252,777			74,671				309,699			142,694				331,336
	Service Charge Income							60,006			53,310				107,974			116,912				227,904
	Other Fees & Service Charges							238,967			94,133				333,516			189,949				379,132
	Gain on sale of loans							875,434			-				1,275,434			-				-
	Other Income							201,824			86,227				337,926			198,206				420,166
			Total non-interest income				$	1,629,008		$	308,341			$	2,364,549		$	647,761			$	1,358,538
Non-interest expense
	Salaries and Benefits							3,946,848			2,575,184				7,029,101			5,407,188				10,610,511
	Occupancy							790,103			544,666				1,359,492			1,081,893				2,147,472
	Professional							461,219			175,474				591,190			414,955				773,073
	Insurance							121,626			106,875				199,654			198,048				349,072
	Data processing							2,073,766			355,951				2,433,661			679,042				1,386,115
	Office							310,137			162,982				476,883			326,367				670,759
	Marketing							156,373			55,411				211,366			114,724				269,576
	Net Loan							127,219			11,611				178,212			36,000				118,630
	Other Miscellaneous							188,045			57,160				249,811			117,378				241,279
			Total non-interest expense				$	8,175,336		$	4,045,314			$	12,729,370		$	8,375,595			$	16,566,487
			Income before provision for income taxes					2,742,314			2,545,733				5,180,529			4,906,589				10,347,437
	Provision for income taxes							1,240,900			1,090,400				2,262,850			2,102,500				4,435,500
						Net income	$	1,501,414		$	1,455,333			$	2,917,680		$	2,804,087			$	5,911,936
	Net income per common share:
						Basic	$	0.27		$	0.27			$	0.53		$	0.52			$	1.10
						Diluted	$	0.27		$	0.27			$	0.53		$	0.52			$	1.09
	Weighted average shares used to compute net income per common share:
						Basic		5,572,643			5,359,762				5,484,390			5,359,762				5,392,597
						Diluted		5,625,756			5,377,257				5,537,503			5,377,257				5,430,345
Comprehensive income:
	Net income						$	1,501,414		$	1,455,333			$	2,917,680		$	2,804,087			$	5,911,936
	Other comprehensive income
		Change in net unrealized gain (loss) on available-for-sale securities						8,807			82,733				23,589			114,535				(231,687	)
		Deferred tax expense (benefit)						(3,624	)		(34,333	)			(9,707	)		(47,532	)			198,493
			Other comprehensive income (loss), net of tax					5,183			48,400				13,882			67,003				(33,194	)
				Comprehensive income			$	1,506,597		$	1,503,733			$	2,931,562		$	2,871,090			$	5,878,742

BayCom Corp
Keary Colwell, 925-476-1800
kcolwell@ubb-us.com

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