WALNUT CREEK, Calif., Oct. 26, 2017 (GLOBE NEWSWIRE) -- BayCom Corp, “Company”, (OTCBB:BCML), and its wholly owned subsidiary, United Business Bank, “Bank”, announced quarterly earnings of $3.2 million in the third quarter of 2017, compared to $1.5 million in the second quarter of 2017 and $1.4 million in the first quarter of 2017. Diluted earnings per share were $0.47 in the third quarter, compared to $0.27 in the prior quarter and $0.22 in the same quarter a year ago. Year-to-date earnings of $6.1 million compared to $2.9 million for the same nine-month period a year ago. Diluted earnings per share were $0.98 in the first nine months of 2017, an increase from $0.74 for the same period in 2016.  The higher earnings per share in the third quarter 2017 compared to the second quarter 2017 is attributed to lower operating expenses partially and non-recurring gains on payoff of purchase credit impaired loans partially offset by lower gains on sale of loans.

President and Chief Executive Officer, George J. Guarini stated, “We are pleased to report our third quarter 2017 financial performance as this is the first full quarter of on-going operating results without any non-recurring charges since our merger in April 2017.  We are pleased with our continuing success in the SBA lending market and expect to see continuing growth in earnings from SBA.”    

Mr. Guarini added, “With the UBB core processing conversion now behind us and our document imaging nearing completion, we are preparing to close our merger with Plaza Bank, Seattle, Washington.  The closing on November 3^rd will add to our Seattle market presence.  We find ourselves in the familiar position of looking for new opportunities and anticipate that the M&A environment will allow us to improve scale, move toward a liquid security and significantly expand our geographical market reach.”

Company also provided the following highlights on its operating and financial performance for the third quarter of 2017:

• Loans totaled $853.9 million at September 30, 2017, compared to $859.3 million at June 30, 2017 and $504.9 million at September 30, 2016. New loan volume was approximately $49.2 million in the third quarter of 2017 compared to $42.2 million in the second quarter.
• Deposits totaled $1,054.5 million at September 30, 2017 compared to $1,031.8 million at June 30, 2017 and $535.7 million at September 30, 2016. Non-interest bearing deposits represent 29.1% of total deposits and the cost of total deposits decreased to 0.53%.
• Non-accrual loans represented 0.02% of total loans as of September 30, 2017 resulting in a Texas ratio of 0.41%. The provision for loan losses recorded in the quarter totaled $57.8 thousand.
• All capital ratios are well above regulatory requirements for a well-capitalized institution. The Bank’s total risk-based capital ratio was 12.70% at September 30, 2017 compared to 12.15% at June 30, 2017, and tangible common equity to tangible assets increased to 8.70% at September 30, 2017 from 8.61% at June 30, 2017.

Loans and Credit Quality

Loan originations in the third quarter of 2017 were spread throughout our markets with the majority focused in Solano, Contra Costa and San Mateo Counties. By loan type, owner-user real estate, investor real estate and residential real estate accounted for the majority of the new loan volume for the quarter.

Year-to-date loan 2017 originations of $91.4 million are slightly lower compared to the same period in 2016 of $92.5 million while year-to-date payoffs in 2017 are slightly lower than the same period in 2016.  Payoffs totaling $14.9 million in the quarter ended September 30, 2017 were primarily the result of property sales or planned events.

Non-accrual loans totaled $186.6 thousand or 0.02% of the loan portfolio at September 30, 2017, compared to $368 thousand, or 0.04%, at June 30, 2017 and $1.5 million, or 0.29% a year ago. The decrease in non-accrual loans from a year ago primarily relates to repayment on delinquent loans. Accruing loans past due 30 to 89 days totaled zero at September 30, 2017, compared to $654 thousand at June 30, 2017 and $751 thousand a year ago.

The provision for loan losses recorded in the third quarter of 2017 totaled $57.8 thousand as the quality of the loan portfolio did not warrant a higher provision.  Net charge-offs for the third quarter totaled $45.3 thousand compared to small recoveries in the prior quarter and in the same quarter a year ago. The ratio of loan loss reserve to loans totaled 0.48% at September 30, 2017 compared to 0.47% at June 30, 2017 and compared to 0.84% at September 30, 2016.  As of September 30, 2017, acquired loans totaling $372.3 million are coved by mark to market valuations totaling $7.3 million.

Investments and Borrowings

The investment portfolio, including Bank Owned Life Insurance totaled $66.3 million at September 30, 2017, an increase of $4.4 million from June 30, 2017 mainly due to an increase in the Bank Owned Life Insurance investment and to a lesser extent the purchase of certain CRA qualifying investments.

Deposits

Deposits totaled $1,054.5 million at September 30, 2017, compared to $1,031.8 million at June 30, 2017 and $568.7 million at September 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 $307.1 million, or 29.1% of total deposits, compared to 30.2% at June 30, 2017 and 24.0% at September 30, 2016.

Earnings

Net interest income totaled $31.3 million in the first nine months of 2017 compared to $21.7 million for the same period of 2016. The increase of $9.6 million was primarily due to a combination of an increase in average earning assets of $307.7 million and an increase in gain on repayment of acquired loans.

Net interest income totaled $13.1 million in the third quarter of 2017, compared to $10.7 million in the prior quarter and $7.1 million in the same quarter a year ago. Net interest income increased $2.4 thousand in the third quarter compared to the prior quarter partially due to higher average earnings assets and higher gains on payoffs of Purchased Credit Impaired ("PCI") loans in the third quarter of 2017 compared to the second quarter of 2017.

The net interest margin was 4.05% in the third quarter of 2017, compared to 3.95% in the prior quarter and 4.14% in the same quarter a year ago. The increase from last quarter includes 19 basis points related to gain on 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 $13.8 million, $14.4 million, and $8.9 million at September 30, 2017, June 30, 2017 and September 30, 2016, respectively.

Accretion and gains on payoffs of purchased loans recorded to interest income were $1.5 million for the third quarter 2017 compared to $663 thousand for the second quarter 2017 and $2.7 million for the nine months ended 2017.

Non-interest income in the third quarter of 2017 totaled $1.1 thousand, compared to $1.6 million in the prior quarter and $339 thousand in the same quarter a year ago. The decrease compared to the prior quarter primarily relates to a decline in gain on sale of loans in the third quarter of 2017 compared to the second quarter of 2017. The increase from the same quarter last year is primarily due to gain on sale of loans and higher servicing income.

Non-interest expense totaled $7.5 million in the third quarter of 2017 down from the prior quarter but higher from the same quarter a year ago. The second quarter of 2017 was higher due to the one-time recognition of merger related expenses. The increase from the same quarter in 2016 was due to higher operating costs due to the merger including an increase in the number of employees, branch offices and data processing charges as a result of higher volume.

About BayCom Corp

The Bank 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.  The Company 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
						September 30, 2017				June 30, 2017				March 31, 2017				September 30, 2016
Quarter-To-Date
Net Income					$	3,181,703			$	1,501,413			$	1,416,266			$	1,206,950
Diluted Earnings Per Common Share					$	0.47			$	0.27			$	0.26			$	0.22
Return On Average Assets (ROA)						1.08	%			0.60	%			0.83	%			0.77	%
Return On Average Equity (ROE)						11.99	%			6.24	%			7.17	%			6.52	%
Efficiency Ratio						63.92	%			73.91	%			63.82	%			63.87	%
Net Interest Margin						4.24	%			3.99	%			3.91	%			4.14	%
Net Charge-Offs/(Recoveries)					$	57,031			$	(5,250	)		$	(6,503	)		$	(4,173	)
Net Charge-Offs/(Recoveries) To Average Loans						0.01	%			0.00	%			0.00	%			0.00	%
Year-To-Date
Net Income					$	6,099,382			$	2,917,679			$	1,416,266			$	4,011,039
Diluted Earnings Per Common Share					$	0.98			$	0.53			$	0.26			$	0.74
Return On Average Assets (ROA)						0.85	%			0.69	%			0.83	%			1.26	%
Return On Average Equity (ROE)						8.63	%			6.66	%			7.17	%			10.91	%
Efficiency Ratio						65.23	%			69.95	%			63.82	%			64.32	%
Net Interest Margin						4.05	%			3.95	%			3.96	%			4.14	%
Net Charge-Offs/(Recoveries)					$	45,278			$	(11,753	)		$	(6,503	)		$	(8,048	)
Net Charge-Offs/(Recoveries) To Average Loans						0.01	%			0.00	%			0.00	%			0.00	%
At Period End
Total Assets					$	1,185,520,515			$	1,155,943,167			$	697,397,629			$	641,773,583
Loans:
Real Estate					$	753,227,054			$	761,120,570			$	461,299,207			$	443,545,296
Non-real estate						106,816,202				107,092,657				73,570,589				66,098,087
Loans Held for Sale						1,490,434				-				4,383,428				-
Non-accrual loans						186,551				367,795				991,755				1,909,952
Mark to market on acquired loans						(7,863,687	)			(9,261,310	)			(4,717,212	)			(6,636,817	)
Total Loans					$	853,856,554			$	859,319,712			$	535,527,767			$	504,916,518
Classified Assets (Graded Substandard and Doubtful)					$	6,639,265			$	7,164,099			$	8,644,709			$	9,150,090
Total Accruing Loans 30-89 Days Past Due					$	-			$	654,483			$	-			$	228,000
Loan Loss Reserve To Loans						0.48	%			0.47	%			0.73	%			0.84	%
Loan Loss Reserve to Non-accrual loans						2184.39	%			1107.95	%			395.76	%			220.95	%
Non-Accrual Loans To Total Loans						0.02	%			0.04	%			0.19	%			0.38	%
Texas Ratio						0.41	%			0.59	%			2.45	%			2.42	%
Total Deposits					$	1,054,482,651			$	1,031,780,780			$	609,952,562			$	535,660,525
Loan-To-Deposit Ratio						80.97	%			83.29	%			87.80	%			95.50	%
Stockholders' Equity					$	107,394,795			$	104,017,747			$	79,579,734			$	74,555,843
Book Value Per Share					$	15.63			$	15.20			$	14.50			$	13.71
Tangible Common Equity To Tangible Assets						8.74	%			8.61	%			11.32	%			11.48	%
Total Risk-Based Capital Ratio-Bank						12.70	%			12.15	%			13.99	%			13.65	%
Full-Time Equivalent Employees						148				152				105				106

 

BAYCOM CORP
STATEMENT OF CONDITION (UNAUDITED)
At September 30, 2017,  June 30, 2017, March 31, 2017, and December 31, 2016
				September 30, 2017		June 30, 2017		March 31, 2017		December 31, 2016
Assets
Cash and due from banks				$	242,518,078	$	201,181,847	$	125,531,611	$	128,684,416
Investments, including Bank Owned Life Insurance policies					66,328,078		61,894,919		24,690,663		26,393,451
Loans, net of allowance for loan losses and deferred fees					841,132,083		854,640,346		531,441,926		504,264,026
Bank premises and equipment, net					8,549,480		8,527,362		1,008,798		1,106,030
Core deposit premium					4,664,166		4,941,677		719,372		802,436
Goodwill					9,125,500		9,125,500
Interest receivable and other assets					13,203,130		15,631,516		14,005,259		14,048,162
Total assets				$	1,185,520,515	$	1,155,943,167	$	697,397,629	$	675,298,520
Liabilities and Stockholders' Equity
Liabilities
Deposits
Non-interest bearing				$	307,107,386	$	311,522,277	$	142,436,582	$	128,696,712
Interest bearing
MMA/NOW/SVG					387,663,055		376,952,820		125,059,037		128,970,967
Premium MM					154,741,721		146,783,810		178,197,667		171,947,166
Time Deposits					204,970,489		196,521,873		164,259,276		161,143,915
Total deposits					1,054,482,651		1,031,780,780		609,952,562		590,758,760
Other borrowings					6,000,000		6,000,000		-		-
Trust Preferred Subordinated Debentures, net					5,371,886		5,356,954		-		-
Interest payable and other liabilities					12,271,183		8,787,686		7,865,333		6,476,580
Total liabilities					1,078,125,720		1,051,925,420		617,817,895		597,235,340
Stockholders' Equity
Common stock, no par value					69,524,425		69,393,816		47,632,398		47,540,808
Retained earnings					37,703,318		34,521,615		31,850,203		30,433,937
Accumulated other comprehensive income					167,052		102,316		97,133		88,434
Total stockholders' equity					107,394,795		104,017,747		79,579,734		78,063,179
Total liabilities and stockholders' equity				$	1,185,520,515	$	1,155,943,167	$	697,397,629	$	675,298,520

 

BAYCOM CORP
STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
							Three months ended										Nine months ended							Year Ended
							September 30,			June 30,			September 30,				September 30,			September 30,				December 31,
								2017			2017			2016				2017			2016				2016
Interest income
Interest - Non RE loans							$	1,400,645		$	1,304,685		$	892,219			$	3,679,128		$	2,704,743			$	3,542,281
Interest - RE loans								9,224,331			8,130,506			5,520,245				22,829,478			16,099,695				21,496,827
Interest on investment securities								242,329			480,813			150,635				407,404			579,127				809,398
Interest on Federal funds sold and other bank deposits								774,897			137,908			119,092				1,624,148			282,603				422,510
Mark to market accretion and FAS 91 Fee amortization								1,489,191			663,306			438,906				2,709,995			2,063,693				3,354,471
Total interest income							$	13,131,393		$	10,717,218		$	7,121,097			$	31,250,153		$	21,729,861			$	29,625,487
Interest expense
Interest on transaction accounts								457,976			466,358			392,029				1,375,481			1,134,176				1,597,440
Interest on time deposits								530,131			504,618			366,532				1,501,873			1,026,771				1,476,134
Premium on core deposits								277,511			212,696			105,000				573,270			315,000				398,064
Interest on borrowings and subordinated debentures								151,432			100,955			-				252,386			-				-
Total interest expense							$	1,417,050		$	1,284,627		$	863,561			$	3,703,010		$	2,475,947			$	3,471,638
Net interest income								11,714,343			9,432,591			6,257,536				27,547,143			19,253,914				26,153,849
Provision for loan losses								57,832			143,949			255,801				345,278			617,754				598,463
Net interest income after provision for loan losses							$	11,656,511		$	9,288,642		$	6,001,735			$	27,201,865		$	18,636,160			$	25,555,386
Non-interest income
Loan fee income								150,044			252,777			109,232				459,743			251,926				331,336
Service charge income								76,944			60,006			52,788				184,918			169,700				227,904
Other fees & service charges								302,806			238,967			88,865				636,322			278,814				379,132
Gain on sale of loans								436,483			875,434			-				1,711,917			-				-
Other income								117,120			201,823			88,412				455,046			286,618				420,166
Total non-interest income							$	1,083,397		$	1,629,007		$	339,297			$	3,447,946		$	987,058			$	1,358,538
Non-interest expense
Salaries and benefits								4,685,663			3,946,848			2,676,450				11,714,767			8,083,638				10,610,511
Occupancy								931,229			790,103			518,447				2,290,723			1,600,340				2,147,472
Professional								157,835			461,219			187,086				749,026			602,041				773,073
Insurance								156,774			121,626			115,490				356,428			313,538				349,072
Data processing								813,767			2,073,766			352,171				3,247,429			1,031,213				1,386,115
Office								334,710			310,137			173,641				811,594			500,008				670,759
Marketing								206,660			156,373			68,035				418,026			182,759				269,576
Net Loan expenses								40,378			127,219			64,782				218,590			100,782				118,630
Other miscellaneous								161,089			188,045			57,380				410,897			174,758				241,279
Total non-interest expense							$	7,488,105		$	8,175,336		$	4,213,482			$	20,217,480		$	12,589,077			$	16,566,487
Income before provision for income taxes								5,251,803			2,742,313			2,127,550				10,432,331			7,034,141				10,347,437
Provision for income taxes								2,070,100			1,240,900			920,600				4,332,950			3,023,100				4,435,500
Net income							$	3,181,703		$	1,501,413		$	1,206,950			$	6,099,382		$	4,011,039			$	5,911,936
Net income per common share:
Basic							$	0.47		$	0.27		$	0.23			$	0.99		$	0.75			$	1.10
Diluted							$	0.47		$	0.27		$	0.22			$	0.98		$	0.73				1.09
Weighted average shares used to compute net income per common share:
Basic								6,790,001			5,572,643			5,359,762				6,187,178			5,359,762				5,392,597
Diluted								6,800,956			5,625,756			5,377,257				6,197,577			5,377,257				5,433,719
Comprehensive income:
Net income							$	3,181,703		$	1,501,413		$	1,206,950			$	6,099,382		$	4,011,039			$	5,911,936
Other comprehensive income
Change in net unrealized gain (loss) on available-for-sale securities								110,002			8,807			(26,982	)			124,605			87,553				(231,687	)
Deferred tax expense (benefit)								(45,266	)		(3,624	)		2,959				(45,987	)		(44,573	)			198,493
Other comprehensive income (loss), net of tax								64,736			5,183			(24,023	)			78,618			42,980				(33,194	)
Comprehensive income							$	3,246,439		$	1,506,596		$	1,182,927			$	6,178,000		$	4,054,019			$	5,878,742

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

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