WALNUT CREEK, Calif., April 26, 2017 (GLOBE NEWSWIRE) -- BayCom Corp, “Company”, (OTCBB:BCML), announced quarterly earnings of $1.4 million in the first quarter of 2017, compared to $1.9 million in the fourth quarter of 2016 and $1.3 million in the first quarter of 2016. Diluted earnings per share were $0.26 in the first quarter 2017 compared to $0.35 in the fourth quarter and to $0.25 in the first quarter of 2016.
President and Chief Executive Officer, George J. Guarini stated, “A highlight of our first quarter 2017 financial performance has been to demonstrate our presence in the SBA lending market. In addition, we’ve been preparing for our upcoming merger which will augment our SBA program. Our fourth bank acquisition will increase our assets to over $1.1 billion, extended market reach to 18 locations in 3 states, and provide a diverse package of products and services to offer our clients. It also gives us the opportunity to change the Bank’s name to United Business Bank which is a reflection of our broader market.”
The Bank also provided the following highlights on its operating and financial performance for the first quarter of 2017:
- Loans totaled $535.5 million at March 31, 2017, compared to $508.3 million at December 31, 2016 and $493.9 million at March 31, 2016. New loan volume was approximately $38.4 million in the first quarter of 2017 compared to $24.3 million in the fourth quarter 2016.
- Deposits totaled $610.0 million at March 31, 2017 compared to $590.8 million at December 31, 2016 and $552.9 million at March 31, 2016. As of March 31, 2017, non-interest bearing deposits represent 23.35% of total deposits and the cost of total deposits increased slightly to .68%.
- Non-accrual loans represented 0.19% of total loans as of March 31, 2017 resulting in a Texas ratio of 2.44%. The provision for loan losses recorded in the first quarter 2017 totaled $143 thousand.
- All capital ratios are well above regulatory requirements for a Well-capitalized institution. The total risk-based capital ratio was 14.64% at March 31, 2017 compared to 13.86% at December 31, 2016, and the tangible common equity to tangible assets ratio was 11.32% at March 31, 2017 compared to 11.45% at December 31, 2016.
Loans and Credit Quality
Loan originations in the first quarter of 2017 were spread throughout our markets with the majority focused in Solano County, Contra Costa County and San Mateo County. By loan type, owner-user real estate, investor real estate and residential real estate accounted for the majority of the new loan volume in the quarter.
Year-to-date loan originations of $43.5 million are approx. $1.5 million lower than compared to the same period in 2016. Payoffs of $21.7 million in the quarter ended March 31, 2017 were primarily the result of property sales or planned events. Payoffs for the same period in 2016 were $24.2 million.
Non-accrual loans totaled $992 thousand, or 0.19% of the loan portfolio at March 31, 2017, compared to $1.0 million, or 0.21%, at December 31, 2016 and $334 thousand, or 0.07% a year ago. The increase in non-accrual loans from a year ago primarily relates to Agriculture related loans which have experienced some credit deterioration. Accruing loans past due 30 to 89 days were zero at March 31, 2017, compared to $625 thousand at December 31, 2016 and $174 thousand a year ago.
The provision for loan losses recorded in the first quarter of 2017 totaled $143 thousand primarily to provide for loan growth. Recoveries net of charge-offs for the first quarter totaled $7 thousand compared to net charge-offs of $456 thousand in the fourth quarter 2016 and recoveries of $4 thousand in the same quarter a year ago. The ratio of allowance for loan losses to loans totaled 0.73% at March 31, 2017 compared to 0.74% at December 31, 2016. As of March 31, 2017, acquired loans totaling $72.6 million are covered by mark to market valuations.
Investments and Borrowings
The investment portfolio totaled $24.7 million at March 31, 2017, a decline of $1.7 million from December 31, 2016 mainly due to the maturity of investment securities. No borrowings were outstanding as of the end of the year.
Deposits
Deposits totaled $610.0 million at March 31, 2017, compared to $590.8 million at December 31, 2016 and $552.9 million at March 31, 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 $142.4 million, or 23.3% of total deposits, compared to 21.7% at December 31, 2016 and 26.8% at March 31, 2016.
Earnings
Net interest income totaled $6.4 million for the first quarter 2017 compared to $6.3 million for the same period in 2016.
The tax-equivalent net interest margin was 3.96% in the first quarter of 2017, compared to 4.15% in the prior quarter and 4.15% in the same quarter a year ago. The decrease from last quarter includes 25 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 $8.1 million, $7.4 million, and $9.5 million at March 31, 2017, December 31, 2016, and March 31, 2016, respectively.
Accretion and gains on payoffs of purchased loans recorded to interest income were $557 thousand for the first quarter 2017 compared to $1.2 million for fourth quarter 2016, and $809 thousand for the same period last year.
Non-interest income in the first quarter of 2017 totaled $735 thousand, compared to $371 thousand in the prior quarter and $339 thousand in the same quarter a year ago. The increase compared to the prior quarter primarily relates to gain on sale of loans totaling $400 thousand in the first quarter of 2017 compared to none in the fourth quarter 2016 or the same period last year.
Non-interest expense totaled $4.5 million in the first quarter of 2017 up slightly from $3.9 million last quarter and $4.3 million in the same quarter last year. The increase is in salaries and related expenses partially offset by lower professional fees.
About BayCom Corp
Through its wholly owned subsidiary, Bay Commercial 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.baycommercialbank.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.
| BAYCOM CORP | ||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||
| March 31, 2017 | December 31, 2016 | March 31, 2016 | ||||||||||
| Quarter-To-Date | ||||||||||||
| Net Income | $ | 1,418,916 | $ | 1,900,897 | $ | 1,348,754 | ||||||
| Diluted Earnings Per Common Share | $ | 0.26 | $ | 0.35 | $ | 0.25 | ||||||
| Return On Average Assets (ROA) | 0.83 | % | 1.10 | % | 0.84 | % | ||||||
| Return On Average Equity (ROE) | 7.19 | % | 9.82 | % | 7.39 | % | ||||||
| Efficiency Ratio | 63.82 | % | 54.70 | % | 64.75 | % | ||||||
| Net Interest Margin | 3.91 | % | 4.15 | % | 4.15 | % | ||||||
| Net Charge-Offs/(Recoveries) | $ | (6,503 | ) | $ | 455,709 | $ | (4,172 | ) | ||||
| Net Charge-Offs/(Recoveries) To Average Loans | 0.00 | % | 0.09 | % | 0.00 | % | ||||||
| Year-To-Date | ||||||||||||
| Net Income | $ | 1,418,916 | $ | 5,911,936 | $ | 1,348,754 | ||||||
| Diluted Earnings Per Common Share | $ | 0.26 | $ | 1.09 | $ | 0.25 | ||||||
| Return On Average Assets (ROA) | 0.83 | % | 0.91 | % | 0.84 | % | ||||||
| Return On Average Equity (ROE) | 7.19 | % | 7.88 | % | 7.39 | % | ||||||
| Efficiency Ratio | 63.82 | % | 60.21 | % | 64.75 | % | ||||||
| Net Interest Margin | 3.96 | % | 4.12 | % | 4.16 | % | ||||||
| Net Charge-Offs/(Recoveries) | $ | (6,503 | ) | $ | 673,463 | $ | (4,172 | ) | ||||
| Net Charge-Offs/(Recoveries) To Average Loans | 0.00 | % | 0.14 | % | 0.00 | % | ||||||
| At Period End | ||||||||||||
| Total Assets | $ | 697,395,780 | $ | 675,298,520 | $ | 632,975,577 | ||||||
| Loans: | ||||||||||||
| Real Estate | $ | 461,299,207 | $ | 440,261,309 | $ | 429,483,371 | ||||||
| Non-real estate | 73,570,589 | 72,310,938 | 70,955,885 | |||||||||
| Loans Held for Sale | 4,383,428 | - | - | |||||||||
| Non-accrual loans | 991,755 | 1,090,007 | 333,676 | |||||||||
| Mark to market on acquired loans | (4,717,212 | ) | (5,312,008 | ) | (6,810,830 | ) | ||||||
| Total Loans | $ | 535,527,767 | $ | 508,350,246 | $ | 493,962,102 | ||||||
| Classified Assets (Graded Substandard and Doubtful) | $ | 8,644,709 | $ | 8,376,365 | $ | 8,159,128 | ||||||
| Total Accruing Loans 30-89 Days Past Due | $ | - | $ | 624,865 | $ | 174,000 | ||||||
| Loan Loss Reserve To Loans | 0.73 | % | 0.74 | % | 0.78 | % | ||||||
| Loan Loss Reserve to Non-accrual loans | 395.76 | % | 346.33 | % | 1153.81 | % | ||||||
| Non-Accrual Loans To Total Loans | 0.19 | % | 0.21 | % | 0.07 | % | ||||||
| Texas Ratio | 2.45 | % | 2.28 | % | 0.43 | % | ||||||
| Total Deposits | $ | 609,952,562 | $ | 590,758,760 | $ | 552,935,627 | ||||||
| Loan-To-Deposit Ratio | 87.80 | % | 86.05 | % | 89.33 | % | ||||||
| Stockholders' Equity | $ | 79,579,734 | $ | 78,063,179 | $ | 73,214,928 | ||||||
| Book Value Per Share | $ | 14.50 | $ | 14.26 | $ | 13.41 | ||||||
| Tangible Common Equity To Tangible Assets | 11.32 | % | 11.45 | % | 11.41 | % | ||||||
| Total Risk-Based Capital Ratio-Bank | 14.64 | % | 13.86 | % | 13.57 | % | ||||||
| Full-Time Equivalent Employees | 105 | 110 | 103 | |||||||||
| BAYCOM CORP | |||||||||
| STATEMENT OF CONDITION (UNAUDITED) | |||||||||
| At March 31, 2017, December 31, 2016, and March 31, 2016 | |||||||||
| March 31, 2017 | December 31, 2016 | March 31, 2016 | |||||||
| Assets | |||||||||
| Cash and due from banks | $ | 125,531,611 | $ | 128,684,416 | $ | 91,660,648 | |||
| Investments | 24,690,663 | 26,393,451 | 34,352,659 | ||||||
| Loans, net of allowance for loan losses and deferred fees | 531,441,926 | 504,264,026 | 490,235,878 | ||||||
| Bank premises and equipment, net | 1,008,798 | 1,106,030 | 1,209,327 | ||||||
| Core Deposit Premium | 719,372 | 802,436 | 1,095,500 | ||||||
| Interest receivable and other assets | 14,005,259 | 14,048,162 | 14,421,565 | ||||||
| Total assets | $ | 697,397,629 | $ | 675,298,520 | $ | 632,975,577 | |||
| Liabilities and Stockholders' Equity | |||||||||
| Liabilities | |||||||||
| Deposits | |||||||||
| Non-interest bearing | $ | 142,436,582 | $ | 128,696,712 | $ | 148,676,442 | |||
| Interest bearing | |||||||||
| MMA/NOW/SVG | 125,059,037 | 128,970,967 | 149,101,077 | ||||||
| Premium MM | 178,197,667 | 171,947,166 | 127,608,116 | ||||||
| Time Deposits | 164,259,276 | 161,143,915 | 127,549,992 | ||||||
| Total deposits | $ | 609,952,562 | $ | 590,758,760 | $ | 552,935,627 | |||
| Federal Home Loan Bank (FHLB) and other borrowings | - | - | - | ||||||
| Interest payable and other liabilities | 7,865,333 | 6,476,580 | 6,825,022 | ||||||
| Total liabilities | $ | 617,817,895 | $ | 597,235,340 | $ | 559,760,649 | |||
| Stockholders' Equity | |||||||||
| Common Stock, no par value | $ | 47,632,398 | $ | 47,540,808 | $ | 47,344,174 | |||
| Retained earnings | 30,433,937 | 24,522,001 | 24,522,001 | ||||||
| Accumulated other comprehensive income | 1,513,399 | 6,000,370 | 1,348,753 | ||||||
| Total stockholders' equity | 79,579,734 | 78,063,179 | 73,214,928 | ||||||
| Total liabilities and stockholders' equity | $ | 697,397,629 | $ | 675,298,520 | $ | 632,975,577 | |||
| BAYCOM CORP | ||||||||||||||||||
| STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) | ||||||||||||||||||
| Three months ended | Years Ended | |||||||||||||||||
| March 31, | December 31, | March 31, | December 31, | |||||||||||||||
| 2017 | 2016 | 2016 | 2016 | |||||||||||||||
| Interest income | ||||||||||||||||||
| Interest Income - Non RE | $ | 973,798 | $ | 837,538 | $ | 939,074 | $ | 3,542,281 | ||||||||||
| Interest Income - RE | 5,474,641 | 5,397,132 | 5,092,414 | 21,496,827 | ||||||||||||||
| Interest on investment securities | 278,113 | 230,271 | 241,268 | 809,398 | ||||||||||||||
| Interest on Federal funds sold and other bank deposits | 117,492 | 139,907 | 60,664 | 422,510 | ||||||||||||||
| Mark to market accretion and FAS 91 Fee amortization | 557,497 | 1,290,778 | 809,653 | 3,354,471 | ||||||||||||||
| Total interest income | $ | 7,401,541 | $ | 7,895,626 | $ | 7,143,073 | $ | 29,625,487 | ||||||||||
| Interest expense | ||||||||||||||||||
| Interest on transaction accounts | 451,147 | 463,264 | 374,435 | 1,597,440 | ||||||||||||||
| Interest on time deposits | 467,125 | 449,363 | 315,794 | 1,476,134 | ||||||||||||||
| Premium on core deposits | 83,064 | 83,064 | 105,000 | 398,064 | ||||||||||||||
| Total interest expense | $ | 1,001,336 | $ | 995,691 | $ | 795,229 | $ | 3,471,638 | ||||||||||
| Net interest income | 6,400,205 | 6,899,935 | 6,347,844 | 26,153,849 | ||||||||||||||
| Provision for loan losses | 143,497 | (19,291 | ) | (3,875 | ) | 598,463 | ||||||||||||
| Net interest income after provision for loan losses | $ | 6,256,708 | $ | 6,919,226 | $ | 6,351,719 | $ | 25,555,386 | ||||||||||
| Non-interest income | ||||||||||||||||||
| Loan Fee Income | 56,922 | 79,410 | 68,023 | 331,336 | ||||||||||||||
| Service Charge Income | 47,968 | 58,204 | 63,602 | 227,904 | ||||||||||||||
| Other Fees & Service Charges | 94,549 | 100,318 | 95,816 | 379,132 | ||||||||||||||
| Other Income | 536,102 | 133,548 | 111,979 | 420,166 | ||||||||||||||
| Total non-interest income | $ | 735,541 | $ | 371,480 | $ | 339,420 | $ | 1,358,538 | ||||||||||
| Non-interest expense | ||||||||||||||||||
| Salaries and Benefits | 3,082,253 | 2,526,873 | 2,832,004 | 10,610,511 | ||||||||||||||
| Occupancy | 569,389 | 547,132 | 537,227 | 2,147,472 | ||||||||||||||
| Professional | 129,971 | 171,032 | 239,481 | 773,073 | ||||||||||||||
| Insurance | 78,028 | 35,534 | 91,173 | 349,072 | ||||||||||||||
| Data processing | 359,895 | 354,902 | 323,091 | 1,386,115 | ||||||||||||||
| Office | 166,746 | 170,751 | 163,385 | 670,759 | ||||||||||||||
| Marketing | 54,993 | 86,817 | 59,313 | 269,576 | ||||||||||||||
| Net Loan | 50,993 | 17,848 | 24,389 | 118,630 | ||||||||||||||
| Other Miscellaneous | 61,766 | 66,521 | 60,218 | 241,279 | ||||||||||||||
| Total non-interest expense | $ | 4,554,034 | $ | 3,977,410 | $ | 4,330,281 | $ | 16,566,487 | ||||||||||
| Income before provision for income taxes | 2,438,215 | 3,313,296 | 2,360,856 | 10,347,437 | ||||||||||||||
| Provision for income taxes | 1,021,950 | 1,412,400 | 1,012,100 | 4,435,500 | ||||||||||||||
| Net income | $ | 1,416,266 | $ | 1,900,897 | $ | 1,348,754 | $ | 5,911,936 | ||||||||||
| Net income per common share: | ||||||||||||||||||
| Basic | $ | 0.26 | $ | 0.35 | $ | 0.25 | $ | 1.10 | ||||||||||
| Diluted | 0.26 | 0.35 | 0.25 | 1.09 | ||||||||||||||
| Weighted average shares used to compute net income per common share: | ||||||||||||||||||
| Basic | 5,397,930 | 5,403,024 | 5,471,072 | 5,392,597 | ||||||||||||||
| Diluted | 5,411,554 | 5,437,679 | 5,491,366 | 5,430,345 | ||||||||||||||
| Comprehensive income: | ||||||||||||||||||
| Net income | $ | 1,416,266 | $ | 1,900,897 | $ | 1,348,754 | $ | 5,911,936 | ||||||||||
| Other comprehensive income | ||||||||||||||||||
| Change in net unrealized gain (loss) on available-for-sale securities | 5,796 | (136,207 | ) | 31,802 | (231,687 | ) | ||||||||||||
| Deferred tax expense (benefit) | 2,903 | 60,033 | (13,199 | ) | 198,493 | |||||||||||||
| Other comprehensive income (loss), net of tax | 8,699 | (76,174 | ) | 18,603 | (33,194 | ) | ||||||||||||
| Comprehensive income | $ | 1,424,965 | $ | 1,824,723 | $ | 1,367,357 | $ | 5,878,742 | ||||||||||