BayCom Corp, headquartered in Walnut Creek, California, reported its financial results for the third quarter and nine months ended September 30, 2024. The company, which operates through its wholly-owned subsidiary United Business Bank, experienced a slight increase in total assets, which rose by $10.4 million, or 0.4%, to approximately $2.6 billion compared to December 31, 2023. Total deposits also increased by $3.7 million, or 0.2%, to $2.1 billion.

The company’s net income for the third quarter was $6.0 million, a decrease of 9.2% from $6.6 million in the same period last year. For the nine months ended September 30, 2024, net income totaled $17.5 million, down 16.8% from $21.0 million in 2023. Basic earnings per share for the third quarter were $0.54, compared to $0.56 in the prior year, while for the nine months, earnings per share decreased from $1.72 to $1.55.

Interest income for the third quarter increased by $596,000, or 1.8%, to $33.4 million, driven by a rise in interest income from investment securities, which grew by 40.4%. However, net interest income for the quarter fell by $1.9 million, or 7.8%, to $22.9 million, primarily due to higher interest expenses, which surged by 31.7% to $10.6 million. The average yield on interest-earning assets increased to 5.45%, while the average cost of interest-bearing liabilities rose to 2.62%.

Noninterest income saw a significant increase of 66.0% in the third quarter, reaching $2.7 million, largely due to a gain on equity securities of $1.4 million, compared to a loss in the previous year. Total noninterest expenses decreased by 2.7% to $16.1 million, attributed to a reduction in salaries and employee benefits.

The company’s total loans decreased by $12.0 million, or 0.6%, to $1.9 billion, with a notable decline in commercial real estate loans. The allowance for credit losses on loans was $18.3 million, down from $22.0 million at the end of 2023. Nonaccrual loans decreased to $9.7 million, or 0.51% of total loans, from $13.0 million, reflecting improved asset quality.

BayCom Corp's shareholders' equity increased by $8.8 million to $321.7 million, driven by net income and a decrease in accumulated other comprehensive loss, despite common stock repurchases totaling $9.2 million. The company remains well-capitalized, exceeding all regulatory capital requirements.