On April 17, 2025, BayCom Corp (BCML, Financial) released its 8-K filing detailing its financial results for the first quarter of 2025. The company reported earnings of $5.7 million, or $0.51 per diluted common share, slightly below the analyst estimate of $0.52 per share. Revenue for the quarter was not explicitly stated in the filing, but the net interest income was $22.9 million, which is below the estimated revenue of $23.50 million.
BayCom Corp is a bank holding company for United Business Bank, offering a wide range of financial services to businesses, professional firms, real estate professionals, and individual consumers. The company operates through its full-service branches and loan production office, targeting small and medium-sized businesses, nonprofit entities, and individual consumers.
Performance and Challenges
BayCom Corp's net income for the first quarter of 2025 decreased by 6.8% compared to the previous quarter and by 3.0% compared to the same quarter last year. This decline was primarily due to an increase in provision for credit losses and a decrease in net interest income. The company also faced challenges with a decrease in noninterest income compared to the first quarter of 2024.
Financial Achievements
Despite the challenges, BayCom Corp achieved an annualized net interest margin of 3.83% for the current quarter, an improvement from 3.80% in the previous quarter and 3.72% in the same quarter last year. This is a crucial metric for banks as it indicates the profitability of their lending activities. The company's assets totaled $2.6 billion, and loans, net of deferred fees, remained stable at $2.0 billion.
Income Statement and Key Metrics
Net interest income decreased by $694,000 from the previous quarter but increased by $473,000 compared to the same quarter last year. The average yield on interest-earning assets was 5.46%, while the average rate paid on interest-bearing liabilities decreased to 2.49%. These metrics are vital as they reflect the company's ability to manage its interest rate spread effectively.
| Metric | Q1 2025 | Q4 2024 | Q1 2024 |
|---|---|---|---|
| Net Interest Income | $22.9 million | $23.6 million | $22.4 million |
| Net Income | $5.7 million | $6.1 million | $5.9 million |
| Net Interest Margin | 3.83% | 3.80% | 3.72% |
Analysis and Commentary
George Guarini, President and CEO, stated,
Our financial results for the first quarter 2025 reflect a continuing trend of new lending activities and improvement in our net interest margin. However, we continue to monitor economic conditions that could result in deterioration of financial markets. Overall, our financial condition remains strong, and our earnings remain steady."
BayCom Corp's performance in the first quarter of 2025 highlights its resilience in a challenging economic environment. The company's focus on maintaining a strong net interest margin and managing credit quality will be crucial as it navigates potential economic uncertainties. The slight miss on earnings per share compared to analyst estimates underscores the importance of closely monitoring credit provisions and noninterest income streams.
Explore the complete 8-K earnings release (here) from BayCom Corp for further details.
